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<br /> <br />NOW THRRRFORE, it is agreed between the parties as follows: <br />1. In the event that Rotary Club fails to perform its obligations pursuant to the <br />Option to Purchase Agreement dated June 3, 1993, and/or pursuant to the Subdivision <br />Agreement dated June 3, 1993, and/or pursuant to the Deed of Trust and Construction Loan <br />Agreement, copies of which are attached hereto and incorporated herein by reference, City <br />shall exercise its option to repurchase the Property. City and Bank shall cooperate in <br />obtaining and reviewing the estimated cost to complete the Project. <br />2, city .may: <br />a. Contribute additional funding to complete the Project; <br />b. Cure any existing default in the loan; <br />c. Sell the Property, or a portion thereof, to a third party; <br />d. Convey title to the Property to Bank, if title is acceptable to Bank; or <br />e. Relinquish title to Bank through foreclosure. <br />3. If title to the Property is conveyed to Bank, Bank may: <br />a. Sell the Property, or a portion thereof, to a third party; or <br />b. Complete the Project in compliance with Planned Un}t Development <br />92-8, Ordinance No. 1583, approved by City on November 17, 1992, and is <br />compliance with the approved building plans for the Project, provided that Bank <br />receives permission to do so from the appropriate bank regulatory agency. <br />4. If Bank receives permission and completes the Project as set forth in paragraph <br />3, or if Bank sells the Property to a third party, City shall take action to remove the <br />restrictions as to the sale of the units, subject to the following: <br />From the proceeds of the sale of the Property or from individual units of the Project: <br />a. Bank shall first receive the unpaid principal amount of the construction <br />costs and the principal amount of its costs to complete the Project, as well as interest <br />accrued on the outstanding principal amounts, which interest shall be at the prime rate <br />as that rate is established by the Wall Street Journal. City shall review. the amount of <br />the interest prior to its distribution to Bank. <br />-2- <br />