PONDEROSA HOMES II PUBLIC IMPROVEMENT

WHEREAS, as a condition precedent to accepting this offer of dedication by Subdivider, City requires the improvements of the public ways, installation or extension of certain City services at Subdivider's expense and certain protection for the City on behalf of the public; NOW, THEREFORE, in consideration of the faithful performance of the promises, terms, conditions and covenants set forth herein by Subdivider and the approval of the project, the parties hereto agree as follows: 1. Time of Essence. Time is of the essence in the performance of this Agreement. The work and improvements required by this Agreement to be completed by Subdivider shall be completed within two (2) year from the above-mentioned date of this Agreement. The City may extend the time for completion of improvements hereunder, upon good cause being shown by the Subdivider. Any such extension may be granted without notice to the Subdivider's surety, any extension so granted shall not relieve the surety's liability on the bond to secure the faithful performance of this Agreement. 2. Work. Subdivider will do or cause to be done and performed the following described work: a) traffic signals at Busch Road/Ironwood Drive, Busch Road/Valley Avenue, Valley AvenueBoulder Street designed by TJKM dated September, 2003, Pleasanton, California and Bond Estimate for Tract 7381-Busch Property, dated October 1, 2003 and subsequent revisions to the plans prepared by TJKM, approved by the City Engineer; and b) "Improvement Plans, Tract 7381 - Busch/Ponderosa Property for Busch and Valley Avenue improvements" designed by Ruggeri-Jensen-Azar & Associates dated September 4, 2003, Pleasanton, California and Bond Estimate for Tract 7381-Busch Property, dated October 10, 2003 and subsequent revisions to the plans prepared by Ruggeri-Jensen-Azar & Associates, approved by the City Engineer; and c) re-striping and public improvement work as required by the City Traffic Engineer at Ray StreetlFirst Street, Hopyard/Stoneridge Drive intersection, Hacienda Drive/Stoneridge Drive intersection improvement; Speed Devices and traffic calming improvements at Mohr Avenue/Kamp Drive. 3. Inspection. City shall inspect all of said work through an inspector employed by City at the cost and expense of Subdivider, and Subdivider shall pay City the cost of such inspection as fixed by Ordinance. Offsite Public Improvement Agreement for items to be constructed with Tract 7381 Project: Tract 7381, Busch Road/Mohr Avenue Page 2 of 8