RIDGE VIEW COMMONS - CONSTRUCTION LOAN

(a) Borrower shall provide Lender with written notice of Borrower's request to exercise the Option to Extend not more than 90 days but not less than 30 days prior to the Original Maturity Date; (b) Borrower shall represent and warrant to Lender that no Default or Event of Default, breach or failure of condition has occurred or exists under the Loan Documents, or would exist after notice or passage of time or both, at the time of the Original Maturity Date; (c) Borrower shall execute or cause the execution of all documents reasonably required by Lender to exercise the Option to Extend and shall deliver to Lender, at Borrower's sole cost and expense, such title insurance indorsements reasonably required by Lender; and (d) There has occurred no material adverse change, as determined by Lender in its sole discretion, in the financial condition of Borrower from that which existed as of the Effective Date. 8.10 Non - recourse. Nothwithstanding anything to the contrary contained in this Agreement, the construction loan shall be a non - recourse loan. 8.11 HDG Provisions. All capitalized terms not defined herein shall have the meanings set forth in the Housing Development Grant Agreement between the Secretary of Housing and Urban Development and the City of Pleasanton. (a) Labor Standards. All laborers and mechanics (except laborers and mechanics employed by a State and local government acting as the principal contractor on the Project) employed in the development of a Project assisted under the HDG program shall be paid wages at rates not less than those prevailing on similar construction in the locality, as determined by the Secretary of Labor in accordance with the Davis -Bacon Act, as amended, 40 U.S.C. 276a- 276a -5, and contracts involving their employment shall be subject to the provisions, as applicable, of the Contract Work Hourts and Safety Standards Act, as amended, 40 U.S.C. 327 -333. Grantees, Participating Parties, contractors and subcontractors shall comply with regulations issued under the Act and with other Federal laws and regulations pertaining to labor standards. (b) Assurance of Governmental Approvals. The Grantee and each Participating Party has obtained, or has reasonable assurance that it will obtain, all Federal, State and local governmental approvals and reviews required by law to be obtained by the Grantee and the Participating Party for the Project. Each Participating Party has not and shall not take any action which might have an adverse environmental effect, would limit the choices among competing environmental alternatives or might alter environmental premises on which the Grantee's environmental findings were based. (c) Completion of the Project. Each Participating Party acknowledges that HUD, in selecting the Grantee for the award of the HDG, relied in material part upon the assured completion of the Project and that each Participating Party assures the Grantee that the activities to be completed by the Participating Party shall be completed, in accordance with Exhibits A, C, D and E of the Grant Agreement. (d) Maintaining Records, Right to Inspect and Copy. The Owner, or any other Participating Party with an identity of interest with the Owner or receiving funds directly from the Grantee agrees that: 3