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purchase price of the Property was true and correct at the time such information was provided, and remains true and correct as of the Date of this Agreement. 2.2 Homebuyer agrees to occupy the Property as Homebuyer's primary residence. 3. RESTRICTIONS ON SALE OF PROPERTY. 3.1 Homebuyer covenants and agrees that during the Affordability Term, any resale of the Property shall be to a Moderate Income Household for an amount that does not exceed an Affordable Sales Price. 3.2 Prior to any Transfer of the Affordable Unit, Homebuyer shall provide the City with a Notice of Intent to Transfer, in a form approved by the City, and the City shall have the right to approve or disapprove of any Transfer,which approval shall not be unreasonably withheld. 3.3 Permitted Transfers. Prior to any Transfer of the Property, Homebuyer shall obtain City's written consent pursuant to the requirements of Section 4 and 5, below, and subject to the following: (a) During the Affordability Term, the Homebuyer may Transfer the Property to a Moderate Income Household for an Affordable Sales Price. (b) Upon expiration of the Affordability Term,Homebuyer may sell the Property without the affordability restrictions of this Agreement, subject to the satisfaction of the City Promissory Note and City Deed of Trust. 3.4 Prohibited Transfers, Any Transfer of the Property without the City's written consent or in violation of this Agreement is a Prohibited Transfer. 4. HOMEBUYER PROCEEDS FROM SALE OF PROPERTY, 4.1 This Agreement implements the provisions of the Density Bonus Agreement for disbursement of funds from a sale of the Property, as further set forth below. 4.2 Permitted Transfers During the Affordability Terin. During the Affordability Term, a Homebuyer retains the proceeds from a Permitted Transfer after payment of the First Lien, and reasonable closing costs and broker fees. The City Deed of Trust shall remain a lien on the Property, or the Transferee shall executed a new Affordable Housing Resale Restrictions, City Promissory Note, and City Deed of Trust, 4.3 Permitted Transfers Upon Expiration of the Affordability Term. Upon expiration of the Affordability Tenn, the City Equity Share shall become due and payable upon a Permitted Transfer, and the proceeds from a sale shall be used for payment of the City Equity Share in satisfaction of the City Promissory Note. 4.4 Prohibited Transfers. Homebuyer agrees and acknowledges that a Prohibited Transfer is a default of this Agreement and, in the event of such a default,the City shall be entitled Page 33 Exhibit B 55394.001 01\43721567.1