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make any cash disbursements of the City Loan funds to or on behalf of Developer. City’s obligation to make the City Loan is conditioned upon Developer’s deposit of the remaining Five Million Dollar ($5,000,000) amount of the purchase price into the escrow for the conveyance of the Single Family Property. The City Loan shall be evidenced by a Promissory Note (“City Loan Promissory Note”) executed by Developer, substantially in the form attached hereto as Exhibit “A.” The City Loan Promissory Note shall be secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the “City Loan Deed of Trust”) executed by Developer as Trustor for the benefit of City and recorded against the Single Family Property. The initial term of the City Loan shall be six (6) months, and Developer shall have two options to extend the City Loan by three (3) months each. The City Loan shall bear interest at the prime rate charged by United States banks, as reported in the Wall Street Journal Money Rates Table. The initial term interest rate shall be the prime rate which is in effect as of the effective date of the Promissory Note, and the interest rate for term extensions shall be the prime rate which is in effect as of the first date of each extension of the City Loan. The entire outstanding balance of the City Loan, together with all interest accrued thereon, shall be due and payable not later than the last day of the term of the City Loan, as it may be extended. City shall obtain, at Developer’s expense, a lender’s policy of title insurance with a policy amount equal to the City Loan amount, which shall insure the City’s first priority lien rights in the Single Family Property. 2. Deferral of Conditions Precedent to PSA Closing. (a) The following Seller’s Conditions Precedent to Closing shall be “Post- Closing PSA Requirements” that may be satisfied after the date of the Closing by Developer within the times set forth in paragraph (c) below, in lieu of being satisfied before the Closing: (i) §5.3(a) [Approval of financing plan for the Single Family Element] (ii) §5.3(b) [Buyer entry into Project Labor Agreement]; provided that Buyer shall submit evidence of entry into a Labor Relations Development Agreement prior to closing, under which each applicable prime contractor is required to enter into a Project Labor Agreement for the performance of covered work for the Single Family Element Project prior to the issuance of permits for each phase of construction (Site Preparation, Horizontal Improvements, and Vertical Improvements). (iii) §5.3(c) [Buyer submission of evidence of insurance]; provided that Buyer shall, prior to the closing, submit to City evidence of the type and amount of insurance which the City reasonably determines to be necessary for the period prior to commencement of construction. (iv) Each of the Additional Seller’s Conditions Precedent to Closing as set forth in Section 1(a) of the Second Amendment to Purchase and Sale Agreement and Disposition and Development Agreement. (b) The following Buyer’s Condition Precedent to Closing shall be a “Post- Closing PSA Requirement” that may be satisfied after the date of the Closing by City within the times set forth in in paragraph (c) below, in lieu of being satisfied before the Closing: