RDA Agmt 2001 Lavery California Dealership Properties No. 1 LLC

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The cessation of operation of new automobile sales and related facilities for remodeling or renovation for a period not to exceed ninety (90) days or for a reasonable period caused by Enforced Delay as set forth in Section 3.04 of Part Three, shall not be deemed a cessation of operation for purposes of this Section 4.06. This right of the Agency to elect to purchase the Property and Improvements upon the cessation of new automobile sales and related facilities shall continue for a period of five (5) years from the date Developer satisfies the requirement for issuance of a Certificate of Completion for the Improvements. If the Agency gives written notice of its election to purchase the Property and the Improvements within the required time frame, the cost of the Property and the Improvements purchased pursuant to this Section 4.06 shall be fair market value, exclusive of inventory, store fixtures and business goodwill, which shall not be purchased by Agency, at the time of the breach as determined by the following valuation method. Each party shall obtain a fair market value appraisal of the Property and Improvements as described above within 60 days of such notice. The parties shall exchange appraisals and negotiate a price based on the appraisals. If the parties fail to reach agreement on the fair market value within 30 days after such 60 day period, the parties shall jointly retain a single appraiser to value the Property. The appraisal shall be based on the highest and best use of the property as determined by the then -existing zoning. The purchase shall close within 30 days of determining the purchase price. The purchase price shall be paid in cash at closing. 4.07 Progress Reports. Until construction of the Improvements has been completed, Developer authorizes the Agency to have full access to all building inspection reports and other information at the City to assist the Agency in reviewing the actual progress of construction. Developer shall allow the Agency to review construction documents and records maintained by Developer in the ordinary course of the construction as may be reasonably requested by the Agency. 4.08 Agency to Receive Copy of Construction Contract. In the event that the Developer enters into contracts for the construction of the Improvements, such contracts shall be with contractors licensed by the State of California. Copies of all contracts shall be tendered to the Agency for the sole and limited purposes of determining that the covenants as to Equal Opportunity in Construction (Section 4.09 of this Part) have been met. Unless the Agency notifies the Developer in writing within fifteen (15) days of submission of the contract that the contract has been disapproved it shall be deemed approved. 4.09 EqualOpportunitX. During the construction of the Improvements, Developer shall not discriminate on the basis of race, color, religion, sex, or national origin in the employment, upgrading, demotion or transfer, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship of any person engaged in the construction work and shall direct its contractors and subcontractors to refrain from discrimination on such basis. Disposition and Development Page 14 of 32 Agreement (Lavery California Dealership Properties No. 1 LLC)