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

• 8. Interest. An annual interest charge of 6% shall be added to the reimbursement fee described in Paragraph 7 of this Agreement each calendar year on January 1 beginning on the January of the year following the City Council's acceptance of the interim street improvements along Stanley Boulevard and related improvements, as stated in Exhibit D attached hereto and incorporated herein by this reference. 9. Time of Collection. The City will require payment of the reimbursement fees as a condition of tentative map approval or final map approval or issuance of a building permit. The City will collect the reimbursement fees in conjunction with approval of any final or parcel map for buildable lots or upon the issuance of a building permit for any property within the Benefit Area. 10. Distribution of Fees. The amount of the reimbursement fees collected pursuant to this Agreement shall be paid out at the time of collection in the ratio ninety percent (90•°s) to Developer and ten percent (10~) to City. The percentage allocated to the City is the cost of administration of this Reimbursement Agreement. 11. Time and Manner of .Disbursement. Disbursement of reimbursement fees collected by City shall be made within sixty days of the collection to the Developer. The right to reimbursement shall be personal to Developer and shall continue notwithstanding subsequent sale or transfer of the Property. Developer shall have the right to assign its interest to such reimbursement fee to another person or entity at any time by providing City written notice of such assignment. Developer hereby directs that reimbursement due to Developer shall be payable to Kaufman and Broad--South Bay, Inc. and mailed to: Kaufman and Broad--South Bay, Inc. 2201 Walnut Avenue, Suite 150 Fremont, California 94538 Developer may change the payee and/or address of payments by notice in writing to City, such notice to be effective upon receipt by the City. 13. Term. City will cease collecting fees and the Developer will not be entitled to further reimbursements under this Agreement ten years after the date of execution of this Agreement as first stated above. - 3 -