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application of the Rent Stabilization Agreement to a Resident are transferable to a one -time immediate successor or assignee of such Resident provided the successor or assignee executes appropriate documents as reasonably required by Park Owner. As an example of the possible benefits of the transferability of terms regarding application of the Rent Stabilization Agreement, if the Resident Household of a Resident who entered into a Conversion Committee Agreement does not qualify as a lower income Resident Household but the Resident Household of such Resident's immediate successor or assignee does qualify as a lower- income Resident Household, then so long as the other applicable requirements of the Conversion Committee Agreement have been satisfied, the rent stabilization terms under the Rent Stabilization Agreement would apply to the Resident Household of such successor or assignee of the Resident who entered into a Conversion Committee Agreement. 5. Benefits of Conversion. The purpose of the conversion of a park from a rental park to a Resident -owned park is to provide the Resident Households with a choice. The Resident Households may either choose to purchase an ownership interest in the Park, which would take the form of a PUD /Condominium Interest, or continue to rent their space in the Park. The conversion provides Residents with the opportunity to operate and control the Park. Since the new owners of the Park will not be motivated to make a profit, but rather are motivated to ensure the best possible living conditions at the most affordable rates, payable through the Homeowners' Association dues, directly or through rent, both buyers and renters benefit from the conversion. 6. PUD /Condominium Interest: Ninety (90) Day Purchase Option Period. 6.1 PUD /Condominium Interest. The conversion provides the Resident Households with the opportunity to acquire an ownership interest in the Park, which certainly would not otherwise occur. As stated above, the form of ownership will be a PUD /Condominium Interest. "PUD /Condominium Interest" means a real property ownership interest that (i) will be transferred by a grant deed, (ii) will be insured by a policy of title insurance, (iii) contains front and back lot line boundaries properly marked by a licensed land surveyor and specific legal description set forth on a "Condominium Plan", (iv) will be a matter of public record when recorded, and (v) comprises the airspace directly over the current rental space, a one -in -two hundred eighth (1/208 interest in the Park's conunon areas, and 1/208' interest in the common area lot, as tenants in common. All PUD /Condominium Interests are held pursuant to the description of general rights and associated factors as set forth in the articles and bylaws of the Homeowners' Association, certain conditions, covenants and restrictions, and California law pertaining to such ownership. 6.2 Right of First Refusal. As required by California Government Code 66459, each Resident Household shall be informed that they have a ninety (90) -day right of first refusal period. The right of first refusal period commences upon the issuance by the DRE and delivery of the Final Public Report. During the ninety (90) day period each Resident Household shall have the exclusive right to decide whether or not to purchase a PUD /Condominium Interest or continue to rent his or her space. [DMM:az/159181 4.DOC/051308/4640.001] 6