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ARTICLE 5 Mortgagee Protection Section 5.1 Mortgagee Protection. This Agreement shall not prevent or limit Developer in any manner, at Developer's sole discretion, from encumbering the Project Site or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Project Site ("Mortgage"). This Agreement shall be superior and senior to any lien placed upon the Project Site or any portion thereof after the date of recording this Agreement, including the lien of any Mortgage. Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against and inure to the benefit of any person or entity, including any deed of trust beneficiary or mortgagee ("Mortgagee") who acquires title to the Project Site, or any portion thereof, by foreclosure, trustee's sale, deed in lieu of foreclosure, or otherwise. Section 5.2 Mortgagee Not Obligated. Notwithstanding the provisions of Section 5.1 above, no Mortgagee shall have any obligation or duty under this Agreement to perform Developer's obligations or other affirmative covenants of Developer hereunder; except that the Mortgagee and its successor shall have no vested right to develop the Project without fully complying with the terms of this Agreement and executing and delivering to City, in a form and with terms reasonably acceptable to City, an assumption agreement of Developer's obligations hereunder. Upon subsequent transfer from a Mortgagee to a third party, the third party shall be subject to all the terms of this Agreement, including, but not limited to, the assignment and assumption provisions of this Agreement. Section 5.3 Notice of Default to Mortgagee; Right of Mortgaqee to Cure. If City receives a notice from a Mortgagee requesting a copy of any Default Notice given to Developer hereunder and specifying the address for service thereof, then City shall deliver to such Mortgagee, concurrently with service thereon to Developer, any notice given to Developer with respect to any claim by City that Developer has committed a default, and if City makes a determination of noncompliance hereunder, City shall likewise serve notice of such noncompliance on such Mortgagee concurrently with service thereof on Developer. Each Mortgagee shall have the right(but not the obligation) during the same period available to Developer to cure or remedy, or to commence to cure or remedy, the event of default claimed or the areas of noncompliance set forth in City's notice, for a period of sixty (60) days after the Mortgagee receives the written notice of noncompliance, or any longer period as is reasonably necessary, not to exceed one hundred twenty (120) days, to remedy such items of non- compliance, by mutual consent of City and the Mortgagee provided that said Mortgagee shall continuously and diligently pursue the remedy at all times until the item of non-compliance is cured. Section 5.4 No Supersedure. Nothing in this Article 5 shall be deemed to supersede or release a Mortgagee or modify a Mortgagee's obligations under any subdivision improvement agreement or other obligation incurred with respect to the Project outside this Agreement, nor shall any provision of this Article 5 constitute an obligation of City to such Mortgagee, except as to the notice requirements of Section 5.3 above. Section 5.5 Technical Amendments to this Article 5. City agrees to reasonably consider interpretations and/or amendments or modifications to the provisions of this Agreement that are required by lenders for the acquisition and construction of the improvements on the Project Site or any refinancing thereof and to otherwise cooperate in good faith to 16