RIDGE VIEW COMMONS - CONSTRUCTION LOAN

PACIFIC GAS AND H LIJCTRIC COMPANY L. R. (LOU) HOLVECK mAnnoc? - LvEe xOnE Mr. Tim Truesdale Eden Housing, Inc. 1035 B Street, Ste. 201 Hayward, CA 94541 Dear Mr. Truesdale: 993 MURRIErA BOULEVARD • February 26, 1988 , LPLE R I O R E, CALIFORNIA 94550 4 tie This refers to your request that we proceed with the preparation of the engineering detail to serve your Willow Glen Housing Development, Pleasanton. We are willing to proceed with this preliminary work, after you compensate us for the estimated cost of such work, $1,500. This payment is based on current costs and will be firm for a period of 90 days after the date of this letter. If this letter agreement is not executed and payment received prior to the expiration of the 90 -day period, it may be necessary for us to reestimate the amount of the payment and prepare another letter agreement. You may, at any time, request that we stop the preliminary work on this project with the understanding that the actual costs that have been incurred by us at that time will be deducted from your payment, and the excess, if any, will be refunded without interest. Our total actual costs for this preliminary work will be determined and will include charges for labor, materials and supplies, transportation, tools, payroll taxes, insurance, and supervision, in accordance with our standard accounting practices. Any such payment shall be refunded to you or otherwise credited against amounts due and owing by you under the terms and conditions of the final agreements, provided that the final agreements are accepted within 90 days from the date presented to you. However, if the final agreements are not accepted by you within this 90 -day period, the amount expended for our preliminary work will then be retained by us. In addition, if, for reasons beyond our control, we are prevented from completing the installation of the gas and electric distribution systems for more than six months following the acceptance and payment of the final agreements by you, or if the final agreement requires specific authorization of the California Public Utilities Commission (CPUC) in order for us to carry out its terms and conditions, and CPUC does not grant such approval, the previously advanced payment for our preliminary work will be retained by us to the extent actual costs have been incurred. The balance, if any, will, at that time be refunded to you, without interest.