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505.1 The Agency has the right, at its election, to reenter and take possession of
<br />the Sites, with all improvements thereon, and terminate and revest in the Agency the estate
<br />conveyed to the Developer as provided in the Grant Deed.
<br />505.2 The Grant Deed shall contain appropriate reference and provisions to give
<br />effect to the Agency's right under specified circumstances, to re-enter and take possession of the
<br />Sites, with all improvements thereon, and to terminate and revest in the Agency the estate
<br />conveyed to the Developer. In no event, however, shall the Agency have the right to re-enter and
<br />take possession of any portion of the Sites on which a completed House is located. Upon the
<br />revesting in the Agency of title to the Sites as provided in this Section 505, the Agency shall,
<br />pursuant to its responsibilities under state law, use its reasonable efforts to resell the Sites as
<br />soon and in such manner as the Agency shall find feasible and consistent with the objectives of
<br />such law and of the Redevelopment Plan, as it exists or may be amended, to a qualified and
<br />responsible party or parties (as determined by the Agency) who will assume the obligation of
<br />making or completing the Improvements, or such Improvements in their stead as shall be
<br />satisfactory to the Agency and in accordance with the uses specified for such Sites or part thereof
<br />in the Redevelopment Plan. Upon such resale of the Sites, the net proceeds thereof after
<br />repayment of any mortgage or deed of trust encumbering the Sites which is permitted by this
<br />Agreement shall be applied:
<br />A. First, to reimburse the Agency, on its own behalf or on behalf of
<br />the City, all costs and expenses incurred by the Agency, excluding City and Agency staff costs,
<br />but specifically, including, but not limited to, any expenditures by the Agency or the City in
<br />connection with the recapture, management and resale of the Sites in the applicable Phase or part
<br />thereof (but less any income derived by the Agency from such Sites or part thereof in connection
<br />with such management); all taxes, assessments and water or sewer charges with respect to the
<br />Sites or part thereof which the Developer has not paid (or, in the event that such Sites are exempt
<br />from taxation or assessment of such charges during the period of ownership thereof by the
<br />Agency, an amount, if paid, equal to such taxes, assessments, or charges as would have been
<br />payable if such Sites were not so exempt); any payments made or necessary to be made to
<br />discharge any encumbrance or liens existing on such Sites or part thereof at the time or revesting
<br />of title thereto in the Agency, or to discharge or prevent from attaching or being made any
<br />subsequent encumbrances or liens due to obligation, default or acts of the City, its successors or
<br />transferees; any expenditure made or obligation incurred with respect to the making or
<br />completion of the Improvements or any part thereof on such Sites, or part thereof, and any
<br />amounts otherwise owing the Agency, and in the event additional proceeds are thereafter
<br />available, then
<br />B. Second, to reimburse the Developer, its successor or transferee, up
<br />to the amount equal to the sum of (a) the costs incurred for the development of the Sites in the
<br />applicable Phase and for the Improvements existing on such Sites at the time of reentry and
<br />possession, less (b) any gains or income withdrawn or made by the Developer from such Sites or
<br />the Improvements thereon prior to the re-entry by Agency.
<br />C. Any balance remaining after such reimbursements shall be retained
<br />by the Agency as its property. The rights established in this Section 605 are not intended to be
<br />exclusive of any other right, power or remedy, but each and every such right, power, and remedy
<br />34 EXHIBIT 4
<br />8OA-49
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