GROUND LEASE - RIDGE VIEW COMMONS II

Owner agrees to maintain the Project and the Property (including without limitation, the residential units, common areas, meeting rooms, landscaping, driveways, parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all reasonable steps to prevent the same from occurring on the Property or at the Project. Owner shall prevent and/or rectify any physical deterioration of the Property and the Project and shall make all repairs, renewals and replacements necessary to keep the Property and the improvements located thereon in good condition and repair. Owner shall provide adequate security measures for the Project, including without limitation, the installation of adequate lighting and deadbolt locks. 6.3.1 Additional Requirements. All construction work and professional services for the Project shall be performed by persons or entities licensed or otherwise authorized to perform the applicable work or service in the State of California and shall have a current City of Pleasanton business license if required under local law. To the extent allowed by state and federal laws, Owner shall limit the installation of satellite dish, antenna and other such equipment to screened locations on the Property as approved by the City. Owner shall diligently work to resolve complaints related to noise, parking, litter or other neighborhood concerns related to the Project. 6.4 City's Right to Perform Maintenance. In the event that Owner breaches any of the covenants contained in Section 6.3. and such default continues for a period of ten (10) days after written notice from City (with respect to graffiti, debris, and waste material) or thirty (30) days after written notice from City (with respect to landscaping, building improvements and general maintenance), then City, in addition to any other remedy it may have under this Agreement or at law or in equity, shall have the right, but not the obligation, to enter upon the Property and perform all acts and work necessary to protect, maintain, and preserve the improvements and the landscaped areas on the Property. All costs expended by City in connection with the foregoing, shall constitute an indebtedness secured by the Deed of Trust, and shall be paid by Owner to City upon demand. All such sums remaining unpaid thirty (30) days following delivery of City's invoice therefor shall bear interest at the lesser of 10% per annum or the highest rate permitted by applicable law. City shall have a lien against the Project for the amount of such unpaid sums and shall have the right to record a Notice of Claim of Lien against the Project. 6.5 Property Management and Marketing, For n of Residential Lease. Prior to the Closing Date, Owner shall submit to City for City review and approval proposed forms of the following documents for the Project: (i) the property management plan ("Property Management Plan"), (ii) the property management agreement, (iii) a plan for marketing the Property ("Marketing Plan"), and (iv) the form of rental agreement that Owner proposes to enter into with Project tenants. The Marketing Plan shall address in detail how Owner plans to market the Restricted Units to prospective Eligible Households in accordance with fair housing laws and this Agreement. The Property Management Plan shall include descriptions of (i) the procedures to be used to certify the eligibility of prospective tenants; (ii) the management team; and (iii) procedures Owner and the management entity will follow to manage and maintain the Property and the Project. Owner shall abide by the terms of the Marketing Plan and the Property Management Plan as approved by City, and throughout the Term, shall submit proposed modifications to City for review and approval. 22 4879-3324-5885v3