BRADDOCK & LOGAN - REIMBURSEMENT AGMT FOR IMPROVEMENTS 8/7/00

Section 4. Benefit Area. The Benefited Properties include those properties listed on Exhibit C, and the areas to be benefited by the Improvements is depicted on the map attached hereto as Exhibit D attached hereto and incorporated herein by this reference ("Benefit Area"). Within the Benefit Area for the Improvements, it is anticipated that: (a) 29 units will be constructed in conjunction with the Project; (b) 71 existing units currently served by the Carriage Gardens station will be served by the Improvements; (c) 48 units will be in the Happy Valley Specific Plan area; and (d) development of the industrial area west of Highway 680 will create the equivalent of 23 residential units, as detailed in Exhibit B. The Developer's share will include both the 29 units for the Project as well as the 71 existing units at Carriage Gardens. Subject to the limitations in Section 5, such total number of units has been used to determine the amount of pro rata Reimbursable Costs (plus interest per Section 8) due from each owner of Benefited Property ("Benefited Property Owners") per Section 7 within the Benefit Area. The number of units to be benefited by the Improvements may change from time to time, but any such changes will not affect the amount of pro rata Reimbursable Costs due from each Benefited Property Owner the Benefit Area. City will use its best efforts to obtain the pro rata Reimbursable Costs from the Benefited Property owners such that the Developer will be made whole with regard to the Reimbursable Costs. Section 5. Reimbursement. If a Property Owner, other than the Developer, records a final parcel map or subdivision map or receives a building permit for development of one of the Benefited Properties, the Property Owner shall pay its pro-rata share of Reimbursable Cost as set forth in Exhibit B. Section 6. Developer's Share. Developer's share of the costs of the Improvements shall be deemed contributed upon the completion of construction of the Improvements and the acceptance thereof by the City Council, subject to the receipt of the Reimbursable Costs as provided herein. Section 7. Establishment of Fee. The City shall collect from the Property Owners reimbursement fees in the amounts specified in Exhibit B, plus adjustments made each January 1st of each calendar year to reflect the addition of interest per Section 8. ("Reimbursement Fee(s)"). Section 8. Interest. Simple interest at a rate of six percent (6%) shall be added to the Reimbursement Fee described in Section 7 herein each calendar year on January 1st, beginning the year following the City Council's acceptance of the Improvements. 3