BERNAL INVESTMENT VALLEY AVENUE EXTENSION

b. Work. BIC will do, or cause to be done, the work shown on the "Plans" as further described below: i. No change ii. The BIC Channel Relocation Improvements, prepared by LTD Engineering, Inc. and approved by the City Engineer in July 2005. The line items and their estimated costs for the BIC Channel Relocation Improvements are set forth in the attached Exhibit 1. Other than for item 10 (Culverts Under Valley Avenue), if the actual cost for the BIC Channel Relocation Improvements is more than $493,463, City shall fund such cost, provided, however, that before BIC enters into a contract for the BIC Channel Relocation Improvements, City shall review such contract. If City reasonably determines that the proposed contract amount is not reasonable, BIC shall not enter into such contract and this Second Amendment shall be of no further force and effect. Other than for item 10, if the actual cost for the BIC Channel Relocation Improvements is less than $493,463, BIC shall pay City half of the difference between the actual cost and $493,463. If the Channel Plans at any time prior to acceptance of the Improvements prove to be inadequate in any material respect, City shall make such changes as are necessary to accomplish the work. iii. The Related Improvements (Valley Avenue Extension Underpass Landscaping Plans, prepared by Thomas Baak & Associates and approved by the City Engineer in July 2005, the Joint Trench Composite Valley Avenue Underpass, prepared by Giacalone Design Services, Inc., and approved by the City Engineer in July 2005, and those portions of the public improvements for Tract 7374, located at the intersection of Case Avenue and Junipero Street, prepared by RJA & Associates and approved by the City Engineer on August 14, 2002). If the Related Improvements plans at any time prior to acceptance of the improvements prove to be inadequate in any material respect, City shall make such changes as are necessary to accomplish the work. c. No change. d. Inspection. City shall inspect all Improvements and BIC shall pay City the cost of such inspection as fixed by City Ordinance. No periodic or progress inspection or approval shall bind the City to accept the Improvements or to waive any breach of this Agreement. For the inspection of the Railroad Improvements only, which involves a specialty bridge inspection firm as well as a City inspector, BIC shall pay the costs of the specialty bridge inspection firm and two percent (2%) of the value of the work (rather than four percent) for City inspection services. The City Engineer has fixed the cost of the City inspection for the Railroad Improvements (2% of the value of the Railroad Improvements) at $38,599, in addition to the costs of the specialty bridge inspection firm. 2