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As set forth in Section 3.2, the Buyer shall deposit Fifty Thousand Dollars ($50,000.00) in
<br />Escrow (the "Deposit"). Buyer shall increase the Deposit in the event Buyer exercises the
<br />Second Extension, Third Extension, Fourth Extension, Fifth Extension, Sixth Extension, Seventh
<br />Extension, Eighth Extension, Ninth Extension, Tenth Extension, and Eleventh Extension to the
<br />Closing Date, as set forth and defined in Section 5.1 below.
<br />4. Section 5.2(b). The second and third paragraphs of Section 5.2(b) of the Agreement, as
<br />previously amended by the First Amendment and the Second Amendment, is hereby deleted and
<br />replaced with the following (addition italicized and underlined for reference):
<br />In the event that Buyer has not received the Approvals by the Entitlements Contingency Date,
<br />Buyer shall have the right to extend the Entitlements Contingency Date for one six (6) month
<br />extension (the "First Extension"), six subsequent, consecutive three (3) month extensions (the
<br />"Second Extension", "Third Extension", "Fourth Extension", "Fifth Extension", "Sixth
<br />Extension", and "Seventh Extension" respectively), one subsequent two (2) month extension
<br />(the "Eighth Extension"), one subsequent four ( 4) month extension (the "Ninth Extension"),
<br />one subsequent six (6) month extension (the "Tenth Extension"), and one subsequent six (6)
<br />month extension (the "Eleventh Extension") to secure the Approvals. Buyer must provide City
<br />with written notice at least ten ( 10) days prior to the Entitlements Contingency Date to exercise
<br />the First Extension. In order to exercise each subsequent extension after the First Extension,
<br />with the exception of the Ninth Extension, Tenth Extension and Eleventh Extension, Buyer must
<br />increase the Deposit by an additional Ten Thousand Dollars ($10,000.00) for each such
<br />extension (collectively, the "Extension Deposits"), at least ten (10) days prior to the expiration
<br />of each extension, as applicable, in addition to providing ten (10) days prior written notice to the
<br />City of Buyer's intent to further extend the Entitlements Contingency Date. In order to exercise
<br />the Ninth Extension, Tenth Extension and Eleventh Extension, Buyer must increase the Deposit
<br />by an additional Ten Thousand Dollars ($10,000.00) for each extension at the time that the
<br />Buyer exercises the extension, which shall be applicable to the purchase price, and provide
<br />written notice to the City of Buyer's intent to further extend the Entitlements Contingency Date
<br />prior to the expiration of the prior extension. If Buyer fails to provide the notice and deposit
<br />increases required by this Section 5.2(b), this Agreement will terminate as of the Entitlements
<br />Contingency Date, or the expiration date of any exercised extension thereof, and neither Seller
<br />nor Buyer will have any further obligation or responsibility to the other to perform under this
<br />Agreement.
<br />If Buyer fails to deliver written notice removing the Entitlements Contingency by the
<br />Entitlements Contingency Date, as may be extended, or if Buyer delivers notice to Seller that
<br />Buyer has been unable to obtain the Approvals, or if Buyer fails to timely deliver any notice
<br />and/or deposit increase required by this Section 5.2(b) pursuant to exercise of the Second
<br />Extension, Third Extension, Fourth Extension, Fifth Extension, Sixth Extension, Seventh
<br />Extension, Eighth Extension, Ninth Extension, Tenth Extension, or Eleventh Extension, then this
<br />Agreement shall be deemed terminated. Such termination will be immediate, neither Seller nor
<br />Buyer will have any further obligation or responsibility to the other to perform under this
<br />Agreement, and Escrow Holder will return promptly to Buyer the Deposit, as increased by the
<br />Extension Deposits.
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