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g. Commencement of a proceeding or action in bankruptcy,whether voluntary or involuntary,pursuant to
<br /> Title 11 of the United States Code or other bankruptcy statute,or any other insolvency,reorganization,arrangement,assignment for
<br /> the benefit of creditors,receivership or trusteeship,concerning the Owner;or
<br /> h. Any violation by Owner of any provision of this Agreement including,without limitation,the conditions
<br /> . set forth in Section 2 above.
<br /> 6. Method of Exercising the Option.
<br /> a. Notice of Intent to Transfer. If Owner desires to sell,convey,transfer,lease,encumber or otherwise
<br /> dispose of the Property or of any estate or interest therein,Owner shall notify City in writing to that effect(the'Notice of Intent to
<br /> Transfer'). The Notice of Intent to Transfer shall state the street address of the Property,Owner's full name or names,the address
<br /> and telephone number at which Owner shall be contacted if not at the Property;and shall be delivered personally or deposited in the
<br /> United States mail,postage prepaid,certified-return receipt requested,addressed to the City of San Leandro at 835 E.14th Street,
<br /> San Leandro,CA,94577 Attn:Tom Liao, Deputy Community Development Director. The Notice of Intent to Transfer shall be in
<br /> substantially the form attached hereto as Exhibit B. In the case of a proposed sale of the Property to a prospective purchaser,the
<br /> Owner shall submit to the City, together with the Notice of Intent to Transfer, a copy of the prospective purchaser's income
<br /> certification,a list of all assets owned by the prospective purchaser,and other financial information reasonably requested by City,in a
<br /> form approved by the City, along with the income certification to be provided to any lender making a loan to the prospective
<br /> purchaser. The City may require documentation evidencing and supporting the income and other financial information contained in
<br /> the certifications.
<br /> b. Notice of Exercise. Upon the occurrence of any Option Event,the City may exercise its Option by
<br /> delivering notice('Notice of Exercise')to Owner of its intent to exercise such Option pursuant to the terms of this Agreement. The
<br /> Notice of Exercise may be in the form attached hereto and incorporated herein as Exhibit C or in such other form as the City may from
<br /> time to time adopt The Notice of Exercise shell be delivered by deposit in the United States mail,postage prepaid,fust.dass,
<br /> addressed to Owner at the Property,or at such other address as may be indicated on the Notice of Intent to Transfer,and delivery
<br /> shall be deemed effective five(5)calendar days following the date of deposit.If the Option Event relates to the potential foreclosure of
<br /> a mortgage under Sections 5(d),(e)or(f),then the City shall also deliver the Notice of Exercise to the mortgagee or beneficiary under
<br /> such mortgage,at such mortgagee's or beneficiary's address of record in the Office of the Recorder of Alameda County.
<br /> c. Notice of Consent to Transfer. If the City does not exercise the Option,it may give its consent to the
<br /> occurrence of the Option Event ('Consent to Transfer'). If the Option Event involves a proposed sale of the Property to a
<br /> prospective purchaser, the City's consent shall be conditioned upon (i) the proposed purchaser's qualification as an Eligible
<br /> Household;(ii)the sale of the Property at a price not to exceed the Adjusted Resale Price;(iii)the proposed purchaser's execution of
<br /> a Disclosure Statement in the form attached hereto as Exhibit D or such other form or forms as may be promulgated by the City;and
<br /> (iv)the proposed purchaser's assumption of Owner's duties and obligations under this Agreement pursuant to a written assumption
<br /> agreement in a form acceptable to City,or execution of an agreement substantially similar to this Agreement,within thirty(30)days
<br /> after the Consent to Transfer has been delivered to Owner. If the prospective purchaser(1)fails to qualify as an Eligible Household,
<br /> (2)fails to execute and deliver the Disclosure Statement to the City,or(3)fails to execute and deliver to the City an assumption
<br /> agreement or an agreement substantially similar to this Agreement within such thirty(30)day period,then the Consent to Transfer
<br /> shall expire and the City may, at its option, either notify Owner of the disqualification,thereby entitling Owner to locate another
<br /> purchaser who qualifies as Eligible Household,or exercise the Option,as if no Consent to Transfer had been delivered.
<br /> d. Time Period for Notice. The City shall deliver a Consent to Transfer,if applicable,not later than thirty
<br /> (30)days after the date that it receives notification of an Option Event. The City shall deliver a Notice of Exercise,if applicable,on or
<br /> before the date which is the later to occur of the following:(i)thirty(30)days after the date that the City receives notification of an
<br /> Option Event or(If)fifteen(15)days after a Consent to Transfer has expired. For purposes of computing commencement of the
<br /> deliver periods,the City shall be deemed to have notification of an Option Event on the date that it actually receives written Notice of
<br /> Intent to Transfer,notice of default,summons and complaint or other pleading,or other writing specially stating that an Option Event
<br /> has occurred. The City shall have no obligation to deliver a Notice of Exercise or Consent to Transfer,and the applicable time period
<br /> for exercise of the Option shall not commence to run,unless and until the City has received notification of an Option Event in the
<br /> manner specified in this subsection. If there is a stay or injunction imposed by court order precluding the City from delivering its
<br /> Consent to Transferor Notice of Exercise within the applicable time period,then the running of such period shall cease until such time
<br /> as the stay is lifted or the injunction is dissolved and the City has been given written notice thereof, at which time the period for
<br /> delivery of a Consent to Transfer or Notice of Exercise shall again begin to run.
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