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GRANTOR: PACIFIC BELL TELEPHONE COMPANY APN: 941.1300-17 AND 941.1300-18 PROJECT: JOHNSON DRIVE ECONOMIC DEVELOPMENT ZONE PROJECT A. CITY agrees to promptly restore any damage to the TCE Area and/or the parcels upon which the TCE Area is situated (and the improvements located thereon) caused by CITY's entry upon the TCE Area or work performed in connection with the Project. B. CITY agrees upon completion of any of its works hereunder to restore, as near as possible, the surface of the TCE to the condition in which it was prior to the commencement of the work related to the proposed public improvement. C. In the event GRANTOR sells, conveys or assigns any property interest encumbered by the TCE Agreement prior to CITY exercising the rights granted herein, GRANTOR shall notify the successor or assigns of the rights and obligations of both parties as included herein. D. In case of unpredictable delays in construction, upon written notification by CITY, the term of the TCE Agreement may be extended by an amendment to the TCE Agreement. GRANTOR shall be compensated based on the fair market value at the time of the extension. Payment shall be made to GRANTOR for the extension prior to the expiration of the original TCE period. E. CITY shall indemnify, defend and hold harmless GRANTOR from and against all claims, causes of action,damages, liabilities, injuries, actions, costs and expenses (including reasonable attorneys' fees and costs), arising from or related to CITY's use of the TCE area, exercise of CITY's rights under the TCE Agreement, or work performed in connection with the Project. The provisions of the immediately preceding sentence shall not be applicable to the extent of GRANTOR's sole negligence or willful misconduct. F. Rights of ingress to and egress from the GRANTOR's remaining property shall be maintained at all times during all phases of the construction period in accordance with the Street Improvement Plan approved by GRANTOR attached hereto as Attachment 5. Specifically, in Phase 1a, prior to commencing any construction work on the GRANTOR'S Property, CITY shall construct (i) a temporary driveway at the south end of the existing parking lot and (ii) a temporary parking lot on the parcel adjacent to GRANTOR'S Property to ensure vehicle access and egress. Thereafter, during Phase 1b, CITY shall remove the temporary driveway and construct the final landscaping and parking. In Phase 2, CITY shall create an opening in the northerly fence to allow access for fleet vehicles to the secured portion of GRANTOR'S Property and will construct the northern portion of the final parking improvements. CITY shall, or cause its contractors to, implement, construct and perform all obligations under the Street Improvement Plan at CITY's sole expense. CITY shall use its best efforts not to interfere with GRANTOR's operations on GRANTOR's remaining property during the term of the TCE Agreement and the duration of the Project. G. During all phases of construction of the Project,CITY shall post temporary 25 miles per hour speed limit signs on northbound and southbound Johnson Drive in a conspicuous location and shall implement a Traffic Control Plan for the Project, which CITY shall ensure is followed by its employees and contractors during the term of the TCE Agreement and the duration of the Project. 5. CITY Performed Work. All work done under this Agreement and the TCE Agreement shall be performed by CITY at CITY's sole cost and shall conform to all applicable building, fire and Page 3 of 7