KAUFMAN AND BROAD - REIMBURSEMENT AGMT INTERIM STREET IMPROVEMENTS TO STANLEY BLVD.

C~ of reasonableness. If the City Engineer determines any reimbursable cost is not appropriate, the actual construction costs shall be adjusted downward. Reimbursement from other property owners shall be based on actual construction costs as approved by the City Engineer. 3. Ownership of Improvements. Pursuant to the Subdivision Agreement between the City and Developer, City shall own the street improvements and related public improvements after said improvements are accepted by the City Council. The Developer shall have the right to connect and use said street improvements in accordance with City regulations, and the right to reimbursement of a portion of the improvement costs as provided herein. 4. Benefit Area. The property that will benefit from the interim street improvements to be retained with the ultimate Stanley Boulevard improvements and related public improvements ("Benefit Area") shall include those properties listed on Exhibit B attached hereto and incorporated herein by this reference, and shown on the map attached hereto as Exhibit C. Within the Benefit Area, it is anticipated that reimbursement from benefitted properties shall be based on lineal frontage on Stanley Boulevard. The lineal frontage on Stanley Boulevard shall be used to determine the amount of reimbursement for each property in the Benefit Area as stated in Exhibit D, attached hereto and incorporated herein by this reference. 5. Reimbursement. If another property owner subject to this reimbursement agreement, other than the Developer, records a final parcel map or final subdivision map or requests a building permit for a major addition or for a new building over 2000 square feet in area after the acceptance by the City Council of the interim street improvements and related public improvements, the permittee or subdivider shall pay its pro-rata share of this Agreement. 6. Developer's Share. .Developer's share of the cost of the street improvements and related public improvements shall be deemed contributed upon the completion of construction and their acceptance by the City Council, subject to reimbursement as herein provided. 7. Establishment of Fee. If the construction of interim street improvements along Stanley Boulevard and related public improvements are constructed prior to recording of a final subdivision or .parcel map or the issuance of a building permit in the benefit area, the City would collect from the permittee its pro-rata share, calculated and adjusted on January 1 of each calendar year as provided in Exhibit C attached hereto and incorporated herein by this reference. - 2 -