Common use of Development Stage Business Clause in Contracts

Development Stage Business. A. Upon satisfaction of the “Development Stage Conditions” (defined below) within the “Entitlement Period” (defined below), without further action of the Members, the business of the Company shall be further expanded to include, but not be limited to: (i) the acquisition by the Company of the Existing Property from Tejon, and financing, developing and improving the respective Planning Areas of the Incorporated Land, (ii) marketing and disposing of, and/or joint venturing the improvement of, residential lots, (iii) disposing of, leasing, joint venturing, or improving, operating and holding for investment, the Income Producing Sites; provided that the Executive Committee may Approve and cause the contribution of portions of the Incorporated Land, such as the Income Producing Sites, to single-member limited liability companies that would be wholly-owned by the Company or “sister” limited liability companies owned by the Members, and (iv) to carry on all other activities incidental to, or necessary or convenient in furtherance of, the foregoing as Approved by the Executive Committee (collectively, the “Development Stage Business”). The Development Stage Business shall be conducted in accordance with the Development Business Plan. Notwithstanding anything to the contrary herein, to the extent that the Members desire to construct any buildings on any portion of the Incorporated Land, including, without limitation, the residential lots or the Income Producing Sites, the Members shall determine the terms of the investment in such development and, as applicable, may require that the relevant portion of the Incorporated Land be transferred to a separate company whose operating agreement shall reflect investment terms determined by the Members. B. As used herein, the “Development Stage Conditions” shall mean the following:

Development Stage Business. A. Upon satisfaction of the “Development Stage Conditions” (as defined below) within the “Entitlement Period” (as defined below), without further action of the Members, the business of the Company shall be further expanded to include, but not be limited to: include (i) the acquisition by the Company of the Existing Property from Tejon, and financing, developing and improving the respective Planning Areas of the Incorporated LandAreas, (ii) marketing and disposing of, of completed residential lots to merchant builders (such merchant builders may include individual Developers and/or joint venturing the improvement of, residential lotstheir Affiliates), (iii) disposing of, leasing, joint venturing, of or improving, operating and holding for investment, the Income Producing Sites; provided that the Executive Committee Committee, subject to the terms of Section 10.4 hereof, (a) may Approve and cause the contribution of portions of the Incorporated LandMaster Project, such as the Income Producing Sites, to single-member limited liability companies (“Affiliate LLCs”) that would be wholly-owned by the Company or “sister” limited liability companies owned by the MembersMembers under substantially the same terms and conditions set forth herein, and (b) will Approve the disposition of the Private Sale Commercial Parcels to the Commercial Developers and/or their Affiliates pursuant to this Agreement, and (iv) to carry on all other activities incidental to, or necessary or convenient in furtherance of, the foregoing Development Stage Business as Approved by the Executive Committee (collectively, the “Development Stage Business”). The Development Stage Business shall be conducted in accordance with the Development Business Plan. Notwithstanding anything to the contrary herein, to the extent that the Members desire to construct any buildings on any portion of the Incorporated Land, including, without limitation, the residential lots or the Income Producing Sites, the Members shall determine the terms of the investment in such development and, as applicable, may require that the relevant portion of the Incorporated Land be transferred to a separate company whose operating agreement shall reflect investment terms determined by the Members. B. As used herein, the “Development Stage Conditions” shall mean the following: