BOZORGZAD - REIMBURSEMENT AGMT FOR IMPROVEMENT 10/25/00

Section 2. Reimbursable Costs An estimate of costs for the construction of the Improvements and other related items is set forth in Exhibit A. Within thirty (30) days after completion of the Improvements, Developer shall submit to the City Engineer the actual costs of the construction work and related items incurred for the Improvements, certified by Developer ("Statement of Costs"). Thereafter, the City Engineer shall review the Statement of Costs for appropriateness to determine whether any item in the Statement of Costs is inappropriate or excessive, and that item may be adjusted accordingly. Developer shall be notified. in advance of any such adjustment. If the item cannot be resolved to the satisfaction of both the City Engineer and the Developer, the City Manager shall make the final determination as to permissible costs. Reimbursement from the City shall be based upon the Statement of Costs as approved by the City Engineer or as finally approved by the City Manager. Section 3. Ownership of Improvements. Pursuant to that certain Subdivision Agreement between City and Developer dated , as thereafter amended, Developer shall dedicate the Improvements to the City upon completion, and City shall own the Improvements after acceptance by the City Council. Thereafter, Developer shall have the right to connect to and use the Improvements in accordance with City regulations and the right to reimbursement for the Reimbursable Costs for the Improvements, as provided herein. Section 4. Reimbursement. Upon completion and acceptance of the Improvements by the City, the City shall pay the Reimbursable Costs to Developer within thirty (30) days. Section 5. Time of Collection. The City is required to make payment to Developer of the Reimbursement Fees upon completion and acceptance of the Improvements pursuant to Section 2 of this Agreement. Section 6. Distribution of Costs. The Reimbursable Costs collected by City pursuant to this Agreement shall be distributed one hundred percent (100%) to Developer. Section 7. Manner of Disbursement. The right to the Reimbursable Costs shall be personal to Developer and shall continue notwithstanding the subsequent sale or transfer of the Property. Developer shall have the right, in its sole discretion, to assign its interest to the Reimbursable Costs to another person or entity at any time by providing City written notice of such assignment. 2