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b. City may declare a default under the City Note, accelerate the <br /> indebtedness evidenced by the City Note, and proceed with <br /> foreclosure under the Deed of Trust. <br /> c. City may bring an action at law or in equity to compel Kainos' <br /> performance of its obligations under this Agreement and the <br /> Declaration of Affordability Covenants, and /or to recover damages. <br /> d. City may pursue any and all other remedies available at law or in <br /> equity. <br /> 17. CITY OPTION TO PURCHASE PROPERTY <br /> a. City Purchase Option. If an Event of Default occurs, Kainos <br /> irrevocably grants to City an option to purchase the Property ( "City <br /> Purchase Option ") at the City Option Price as defined herein. City <br /> Option Price means an amount equal to the current fair market value of <br /> the Property as determined by an appraiser approved by City and <br /> Kainos (and which takes into account the use and affordability <br /> restrictions set forth in this Agreement and the Declaration of <br /> Affordability Covenants), less the amount of the City Funds paid to <br /> Kainos for purchase of the Property and less the amount of any and all <br /> liens against the Property, including liens for outstanding indebtedness <br /> and delinquent taxes. The appraisal must be completed in accordance <br /> with federally accepted appraisal practices. Kainos shall be solely <br /> responsible for payment of any and all appraisal costs under this <br /> subparagraph a. <br /> b. Exercise of Option . Within thirty (30) days of an Event of Default, City <br /> must provide written notice to Kainos of its intent to exercise its option <br /> to purchase the Property. <br /> c. Option Close of Escrow. City shall close escrow for purchase of the <br /> Property within ninety (90) days of providing Kainos with the written <br /> notice of its intent to exercise its option. Real property taxes, <br /> insurance and other escrow and closing costs shall be prorated and <br /> paid according to customary practice in San Mateo County. Title to the <br /> Property shall be fee simple title vested in the City or its designee <br /> subject only to the City's or its designee's approved exceptions to title. <br /> d. Failure to Close. In the event that after City exercises the City <br /> Purchase Option, City fails to close escrow within the time set forth in <br /> subparagraph c. above, then the City shall be deemed to retain all <br /> other remedies available under Paragraph 16 above. <br /> ATTY /AGR/2010.083 11 <br /> 091610 <br />