RDA Agmt 2001 Lavery California Dealership Properties No. 1 LLC

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Upon revesting in the Agency of title to the Property and improvements, the Agency shall promptly use its best efforts to resell the Property and improvements consistent with its obligations under state law. Upon sale the proceeds shall be applied as follows: (a) First, to reimburse the Agency or the City for any costs it incurs in managing or selling the Property and improvements including but not limited to amounts to discharge or prevent liens or encumbrances arising from any acts or omissions of Developer; (b) Second, to the Developer up to the sum of the amount paid to the Agency for the Property and the actual cost of designing, financing and constructing the improvements Developer has placed on the portion of the Property reverting to the Agency; and (c) Third, any balance to be divided 50% to the Agency and 50% to the Developer. The rights of the Agency pursuant to this Section 7.01 shall be set forth in the Grant Deed transferring the Property from the Agency to the Developer. 7.02 Construction Plans. If the Agreement is terminated pursuant to Section 6.04 of this Part, Developer shall deliver to the Agency copies of any development or Construction Plans Developer has had prepared for the Improvements on the Property or, if necessary, shall request permission from the professional that has prepared the Plans to provide such Plans to the Agency. Developer does not warrant or guarantee the correctness or usability of any plans delivered to the Agency. 7.03 Rights of Mortgagees. Notwithstanding anything to the contrary contained herein, any rights of the Agency under this Agreement, including, without limitation, all of the rights under Section 4.06, 6.04 and 7.01 of this Agreement, shall be junior and subordinate to and not defeat, limit or render invalid any lease, mortgage, deed of trust or any other security interest permitted by this Agreement or any rights provided for in this Agreement for the protection of holder of mortgage, beneficial interests in deeds of trust or security interests in the Property or the Improvements. PART THREE: GENERAL PROVISIONS Article One: GENERAL REQUIREMENTS AFTER CONSTRUCTION 1.01 Applicability. The Developer, for itself, its successors and assigns agrees that upon the Developer's satisfaction of the conditions for issuance of the Certificate of Completion, the covenants against discrimination in Section Disposition and Development Page 22 of 32 Agreement (Lavery California Dealership Properties No. 1 LLC)