Hemet City Council
January 24, 2023

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“Tract No 33824-1.” shall mean the final map prepared and approved by the City for tentative tract map no. 33824-1.
“Warranty” shall mean the one year period following completion of the Public Improvements by Builder and the acceptance of the Public Improvements by the City in which Builder warrants and guarantees all Public Improvements.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

1.SUPERSESSION. This Agreement supersedes and replaces the Original Subdivision Improvement Agreement in its entirety. Upon execution of this Agreement by the Builder, the Original Subdivision Improvement Agreement shall be of no further force and effect unless reinstated.

2.EFFECTIVENESS. This Agreement shall not be effective unless and until all four (4) of the following conditions are satisfied in the order provided:

2.1Security. Builder provides City with the Security of the type and in the amounts required by this Agreement;

2.2Final Map and Agreement Approval. The City Council of the City of Hemet (“City Council”) previously approved the final map for Tract Map No. 33824-1 and now approves this Agreement;

2.3Record Agreement. Builder and City execute the Agreement and City records this Agreement in the Recorder’s Office of the County of Riverside; and If the above described conditions are not satisfied in the order, manner and within the time provided under this Agreement, this Agreement shall automatically terminate without need of further action by either City or Builder.

3.PUBLIC IMPROVEMENTS. Builder shall construct or have constructed at its own cost, expense, and liability the Public Improvements, as defined herein, within the time and in the manner required under this Agreement. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The Builder shall be responsible for the replacement, relocation, or removal of any component of any irrigation water or sewer system in conflict with the construction or installation of the Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water or sewer system. Builder further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements.

3.1Prior Partial Construction of Public Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement,

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Builder agrees to complete such Public Improvements or assure their completion in accordance with this Agreement.

3.2Permits; Notices; Utility Statements. Prior to commencing any work, Builder shall, at its sole cost, expense, and liability, obtain all necessary permits and approvals and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance of Builder’s obligations under this Agreement. Builder shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or approval issued to Builder. Prior to commencing any work, Builder shall file a written statement with the City Clerk and the City Engineer, signed by Builder and each utility which will provide utility service to the Property, attesting that Builder has made all deposits legally required by the utility for the extension and provision of utility service to the Property.

3.3Pre-approval of Plans and Specifications. Builder is prohibited from commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee.

Approval by the City Engineer shall not relieve Builder from ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement.

3.4Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced.

3.5Standard of Performance. Builder and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Builder represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Builder warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement.

3.6Alterations to Improvements. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Builder shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Builder’s surety for this Agreement.

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4.MAINTENANCE OF PUBLIC IMPROVEMENTS AND LANDSCAPING.

City shall not be responsible or liable for the maintenance or care of the Public Improvements until City formally approves and accepts them in accordance with its policies and procedures.

City shall exercise no control over the Public Improvements until approved and accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Builder at all times prior to City’s acceptance of the Public Improvements.

Builder shall maintain all the Public Improvements in a state of good repair until they are completed by Builder and approved and accepted by City, and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Builder’s responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Builder fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Builder and its surety under this Agreement.

City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance.

5.CONSTRUCTION SCHEDULE. Unless extended pursuant to this Section 4.1 of this Agreement, Builder shall fully and adequately complete or have completed the Public Improvements within three (3) years (36 months) following approval of the final map for Tract No. 33824-1.

5.1Extensions. City may, in its sole and absolute discretion, provide Builder with additional time within which to complete the Public Improvements. It is understood that by providing the Security required under Section 12.0 et seq. of this Agreement, Builder and its surety consent in advance to any extension of time as may be given by City to Builder, and waives any and all right to notice of such extension(s). Builder’s acceptance of an extension of time granted by City shall constitute a waiver by Builder and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder. In addition, as consideration for granting such extension to Builder, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Builder, and to require adjustments thereto when warranted according to City’s reasonable discretion.

5.2Accrual of Limitations Period. Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Builder has provided the City Engineer with written notice of Builder’s intent to abandon or otherwise not complete required or agreed upon Public Improvements.

5.3 Builder Obligations Do Not Terminate. Notwithstanding the construction schedule and option for extensions provided in Sections 4.1 and 4.2, Builder’s failure to complete the Public Improvements or to otherwise satisfy all conditions of approval, or City’s non-extension of the time referenced in those sections shall not terminate or otherwise

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relieve the Builder of the obligation to complete the Public Improvements and conditions of approval and such obligations shall survive the term of this Agreement and shall survive until satisfied in full unless waived or modified by formal action of the City Council.

6.GRADING. Builder agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of Tract Map No. 33824-1 shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City’s grading regulations. All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. The City Engineer shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding properties. Plans shall include without limitation temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, trash, and refuse, securing the job site to prevent injury, and similar matters.

In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion of the Public Improvements established by this Agreement, and prior to City’s approval and acceptance of the Public Improvements and release of the Security as set forth in Section 12.0 et seq. of this Agreement.

7.UTILITIES. Builder shall provide utility services, including water, sewer, power, gas, and telephone service to serve each parcel, lot, or unit of land within Tract Map No. 33824-1 in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Builder shall also provide cable television facilities to serve each parcel, lot, or unit of land in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the requirements of the cable company possessing a valid franchise with City to provide such service within City’s jurisdictional limits. All utilities shall be installed underground.

8.FEES AND CHARGES. Builder shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of construction of the Public Improvements, including, but not limited to, all plan check, design review, engineering, inspection, and other service fees, and any impact or connection fees established by City ordinance, resolution, regulation, or policy, or as established by City relative to Tract Map No. 33824-1, or as required by other governmental agencies having jurisdiction over Tract Map No. 33824-1.

9.CITY INSPECTION OF PUBLIC IMPROVEMENTS. Builder shall, at its sole cost, expense, and liability, and at all times during construction of the Public Improvements, maintain reasonable and safe facilities and provide safe access for inspection by City of the Public Improvements and areas where construction of the Public Improvements is occurring or will occur. If the City inspector requests it, the Builder at any time before acceptance of the Public Improvements shall remove or uncover such portions of the finished work as may be directed which have not previously been inspected. After examination, the Builder shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City shall not be considered as direct control of the individual workmen on the job site. City’s inspector shall have the authority to stop any and all work not in accordance with the

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requirements contained or referenced in this Agreement. The inspection of the work by City shall not relieve Builder or the contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted.

10.ADMINISTRATIVE COSTS. If Builder fails to construct and install all or any part of the Public Improvements within the time required by this Agreement, or if Builder fails to comply with any other obligation contained herein, Builder and its surety shall be jointly and severally liable to City for all administrative expenses, fees, and costs, including reasonable attorney’s fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law.

11.ACCEPTANCE OF IMPROVEMENTS; AS-BUILT OR RECORD
DRAWINGS. The City Council may, in its sole and absolute discretion, accept fully completed portions of the Public Improvements prior to such time as all of the Public Improvements are complete, which shall not release or modify Builder’s obligation to complete the remainder of the Public Improvements within the time required by this Agreement.

11.1Builder’s Notice of Completion. Upon the total or partial acceptance of the Public Improvements by City, Builder shall file with the Recorder’s Office of the County of Riverside a notice of completion for the accepted Public Improvements in accordance with California Civil Code section 3093, at which time the accepted Public Improvements shall become the sole and exclusive property of City without payment therefor.

11.2City Acceptance of Public Improvements. If Tract Map No. 33824-1 was approved and recorded as a single phase map, City shall not accept any one or more of the improvements until all of the Public Improvements are completed by Builder and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City’s acceptance or approval of any Public Improvements.

11.3Builder’s Obligation to Provide As-Built or Record Drawings.

Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Builder provides one (1) set of “as-built” or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be certified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein.

12.WARRANTY AND GUARANTEE. Builder hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (1) year following completion of the work and acceptance by City. During the Warranty, Builder shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Builder and its surety. As to any Public Improvements which have been repaired, replaced, or reconstructed during the Warranty, Builder and its surety hereby agree to extend the

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Warranty for an additional one (1) year period following City’s acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein shall relieve Builder from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Public Improvement following expiration of the Warranty or any extension thereof. Builder’s warranty obligation under this section shall survive the expiration or termination of this Agreement.

13.SECURITY; SURETY BONDS. Prior to City’s approval and execution of this Agreement, Builder shall provide City with surety bonds in the amounts and under the terms set forth below. The amount of the Security shall be based on the City Engineer’s Estimated Costs.

If City determines at any time prior to Builder’s completion of the Public Improvements under Section 4 [Construction Schedule], in its sole and absolute discretion, that the Estimated Costs have changed, Builder shall adjust the Security in the amount requested by City. Builder’s compliance with this provision (Section 12.0 et seq.) shall in no way limit or modify Builder’s indemnification obligation provided in Section 16.0 of this Agreement.

13.1Performance Bond. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Builder is in default as set forth in Section 18.0 et seq. of this Agreement, and to secure Builder’s one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Builder shall provide City a faithful performance bond in the amount of Three Hundred Thirteen Thousand and Three Hundred Seventy Five Dollars, ($313,375), which sum shall be not less than one hundred percent (100%) of the Estimated Costs.

13.2Partial Release. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the Security provided under this section as the Public Improvements are accepted by City, provided that Builder is not in default on any provision of this Agreement or condition of approval for Tract Map No. 33824-1, and the total remaining Security is not less than twenty-five percent (25%) of the Estimated Costs. All Security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 11.0 of this Agreement, provided that Builder is not in default on any provision of this Agreement or condition of approval for Tract Map No. 33824-1.

13.3Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Builder shall provide City a labor and materials bond in the amount of, which sum shall not be less than one hundred percent (100%) of the Estimated Costs. The Security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such Security shall be reduced by the total of all stop notice or mechanic’s lien claims of which City is aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of City’s anticipated administrative and legal expenses arising out of such claims.

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13.4Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best’s rating of no less than A:VIII, be a bank or insurance company licensed to transact surety business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Builder or its surety shall secure the costs and reasonable expenses and fees, including reasonable attorney’s fees and costs, incurred by City in enforcing the obligations of this Agreement. The Builder and its surety stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security.

13.5Form of Security. The evidence of the Security shall be provided on the forms set forth in Attachment “C”, unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Attachment “C” and incorporated herein by this reference.

13.6Builder’s Liability. While no action of Builder shall be required in order for City to realize on its security under any Security instrument, Builder agrees to cooperate with City to facilitate City’s realization under any Security instrument, and to take no action to prevent City from such realization under any Security instrument. Notwithstanding the giving of any Security instrument or the subsequent expiration of any Security instrument or any failure by any surety or financial institution to perform its obligations with respect thereto, Builder shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute Security as City shall require satisfying the requirements in this Section 12.

14.MONUMENT SECURITY. Prior to City’s execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corners, and street centerline monuments for Tract No. 33824-1 in compliance with the applicable provisions of City’s Municipal and/or Development Code (“Subdivision Monuments”), Builder shall deposit cash with City in the amount of Nineteen Thousand Two- Hundred Fifty Dollars ($19,250), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Builder is not in default of any provision of this Agreement or condition of approval for Tract Map No. 33824-1.

15.LIEN. To secure the timely performance of Builder’s obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections 12.0 et seq. and 13.0 of this Agreement, Builder hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for a public purpose. As to Builder’s default on those obligations for which security has been provided pursuant to Sections 12.0 et seq. and 13.0 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section.

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16.SIGNS AND ADVERTISING. Builder understands and agrees to City’s ordinances, regulations, and requirements governing signs and advertising structures. Builder hereby agrees with and consents to the summary removal by City, without notice to Builder, of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Builder and its surety. Builder and its surety shall indemnify and hold City free and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal.

17.INDEMNIFICATION. Builder shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Builder, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the gross negligence or willful misconduct of City as determined by a court or administrative body of competent jurisdiction. Builder’s obligation to indemnify City shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, or agents.

18.INSURANCE.

18.1Types; Amounts. Builder shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant to this Agreement, insurance of the types and in the amounts described below. If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit.

18.1.1General Liability. Builder and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $3,000,000 per occurrence for bodily injury, personal injury, and property damage.

18.1.2Business Automobile Liability. Builder and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible.

18.1.3Workers’ Compensation. Builder and its contractors shall procure and maintain workers’ compensation insurance with limits as required by the Labor

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Code of the State of California and employers’ liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees.

18.1.4Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability.

18.2Deductibles. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Builder and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.

18.3Additional Insured; Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Builder or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall contain standard separation of insured provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers.

18.4Primary Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy.

18.5Certificates; Verification. Builder and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

18.6Term; Cancellation Notice. Builder and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days’ prior written notice to City.

18.7Insurer Rating. Unless approved in writing by City, all Required Insurance shall placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A:VIII.

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19.DEFAULT; NOTICE; REMEDIES.

19.1Notice. If Builder neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Builder to be in default or violation of this Agreement and make written demand upon Builder or its surety, or both, to immediately remedy the default or violation. Builder shall commence the work required to remedy the default or violation within ten (10) days of the written demand from the City. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the demand verbally, and Builder shall commence the required work within twenty-four (24) hours thereof.

Immediately upon City’s issuance of the demand to remedy the default, Builder and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 9.0 of this Agreement.

19.2Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a substantial completion acceptable to City within a reasonable time designated by the City, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Builder and its surety, without the necessity of giving any further notice to Builder or surety. City’s right to take such actions shall in no way be limited by the fact that Builder or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City’s demand for performance. In the event City elects to complete or arrange for completion of the remaining work and improvements, City may require all work by Builder or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Builder or its surety the full cost and expense incurred.

19.3Other Remedies. No action by City pursuant to Section 18.0 et seq. of this Agreement shall prohibit City from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may exercise it rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance.

20.GENERAL PROVISIONS.

20.1Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party.

20.2Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

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20.3Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party.

Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to Builder include all personnel, employees, agents, and subcontractors of Builder, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

20.4Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:

CITY:

City of Hemet
Attn: City Manager
445 E. Florida Avenue
Hemet, CA 92543
BUILDER:

Richmond American Homes, a California Corporation
Attn: Larry Liebel
391 N. Main Street, Suite 205
Corona, CA 92880
Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent provided the original is contemporaneously deposited with United States Postal Service and delivered by regular mail; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S.

Mail.

20.5Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

20.6Waiver. City’s failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City’s waiver of any breach of this Agreement, shall not relieve Builder of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City’s actions are intentional or unintentional. Builder agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement.

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20.7Assignment or Transfer of Agreement. Builder shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City’s written consent, any assignment, hypothecation, or transfer shall not release or discharge Builder from any duty or responsibility under this Agreement.

20.8Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation.

20.9No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

20.10Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

20.11Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Riverside, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Builder expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.

20.12Attorneys’ Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover from the other party all Litigation Expenses. Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Litigation Expenses.

20.13Relationship Between The Parties. The Parties hereby mutually agree that neither this Agreement, any map related to Tract Map No. 33824-1, nor any other related entitlement, permit, or approval issued by City for the Property shall operate to create the relationship of partnership, joint venture, or agency between City and Builder. Builder’s contractors and subcontractors are exclusively and solely under the control and dominion of Builder. Nothing herein shall be deemed to make Builder or its contractors an agent or contractor of City.

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RIV #4830-8901-9593 v1 - 15 -

20.14Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument.

20.15Effective Date of Agreement. This Agreement shall not become effective until the date it has been formally approved by the City and executed by the appropriate authorities of City and Builder.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY OF HEMET
By:___________________________
City Manager
ATTEST:
___________________________
City Clerk

APPROVED AS TO FORM
By:_______________________________
City Attorney

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RIV #4830-8901-9593 v1 - 16 -

RICHMOND AMERICAN HOMES, A CALIFORNIA CORPORATION
By: By:
_________________________________
Its: ______________________________ Its: ___________________________ NOTE: BUILDER’S SIGNATURES SHALL BE DULY NOTARIZED, AND

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE

REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO BUILDER’S
BUSINESS ENTITY.

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RIV #4830-8901-9593 v1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On __________, ____ before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ______________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

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RIV #4830-8901-9593 v1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On __________, ____ before me, ________________, personally appeared ________________, personally known to me - OR - proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.
__________________________________________
(SIGNATURE OF NOTARY)

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT EXHIBIT “A”

LEGAL DESCRIPTION OF PROPERTY
TRACT NO. 33824-1

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT EXHIBIT “B”

LIST OF PUBLIC IMPROVEMENTS
TRACT NO. 33824-1
Street Improvement Plans (EA0512-010)
Street Improvement (Revised), Storm Drain Improvement, Street Lights (EA1412-005) Sewer & Water Improvements (EA1703-001)

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT EXHIBIT “C”

SURETY BONDS AND OTHER SECURITY
TRACT NO. 33824-1
As evidence of understanding the provisions contained in this Agreement, and of the Builder’s intent to comply with same, the Builder has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto:

PERFORMANCE BOND PRINCIPAL AMOUNT: $ 313,375
Surety:

Attorney-in-fact:

Address:

MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $ 313,375
Surety:

Attorney-in-fact:

Address:

CASH MONUMENT SECURITY: $ 19,250
Amount deposited per Cash Receipt No. Date:

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
TRACT MAP NO. 33824-1 IMPROVEMENTS

FORM OF PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet, California (“City”) and Richmond American Homes, a California Corporation, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, water system, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Tract Map No. 33824-1 (“Public Improvements”); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated January 24, 2023 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder.

NOW, THEREFORE, Principal and _________________________________ (“Surety”), a corporation organized and existing under the laws of the State of __________, and duly authorized to transact surety business under the laws of the State of California, are held and firmly bound unto City in the sum of Three Hundred Thirteen Thousand and Three Hundred Seventy Five Dollars, ($313,375), said sum being not less than one hundred percent (100%) of the total cost of the Public Improvements as set forth in the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Improvement Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless City, its officers, employees, and agents, as stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

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RIV #4830-8901-9593 v1 2 SUBDIVISION IMPROVEMENT AGREEMENT As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

This bond is executed and filed to comply with Section 66499 et seq. of the Government Code of California as security for performance of the Improvement Agreement and security for the one-year guarantee and warranty of the Public Improvements.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _______________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
TRACT MAP 33824-1 IMPROVEMENTS

FORM OF LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet California (“City”) and Richmond American Homes, a California Corporation, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Tract Map No. 33824-1 (“Public Improvements”); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated January 24, 2023 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required to furnish a bond in connection with the Improvement Agreement providing that if Principal or any of its subcontractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for, or about the performance of the Public Improvements, or for any work or labor done thereon of any kind, or for amounts due under the provisions of Title 15 (commencing with section 3082) of Part 4 of Division 3 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney’s fee in case suit is brought on the bond.

NOW, THEREFORE, Principal and _________________________ (“Surety”), a corporation organized and existing under the laws of the State of _________________, and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the Public Improvements, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to the Public Improvements to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid excepting the Principal, the sum of Three Hundred Thirteen Thousand and Three Hundred Seventy Five Dollars, ($313,375), said sum being not less than 100% of the total cost of the Public Improvements under the terms of the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents.

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RIV #4830-8901-9593 v1 2 SUBDIVISION IMPROVEMENT AGREEMENT THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal, his or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Public Improvements, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein.

As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

This bond is executed and filed to comply with Section 66499 et seq. of the California Government Code as security for payment to contractors, subcontractors, and persons furnishing labor, materials, or equipment for construction of the Public Improvements or performance of the Improvement Agreement. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _____________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)

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RIV #4830-8901-9593 v1 3 SUBDIVISION IMPROVEMENT AGREEMENT NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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2016-0436390
IfW1.”.IR1R4i1'fl!|.'v’W.'JF.H.\".rTl'P.'fI
I
L— —""
F?(971/
10/05/2015@1205PMFee:$0.00ANDWHENRECORDEDRETURNTO: Page1°‘*9RecordedinOfficialRecords(Documentexemptfromrecordingfees goténtygiazRiversidepursuanttoGOV-Code§ RgsggsorwgggntyClet-k—Recorcler*CITYOFHEMET |Attn:CityManager445EastFloridaAvenue RAExam511Hemet,California92543 PageDAPCORMiscLongRFD1stPgAdtlPgCertCCV \SIZENCORSMF4NCHGI’:

SUBDIVISIONIMPROVEMENTAGREEMENTFINALTRACTMAP33824-1
ByandBetween
THECITYOFHEMET,amunicipalcorporation
and
McSweenyRecoveryAcquisition,LLC,aDelawarelimitedliabilitycompany Dated:

RIV#4836—39l7-8284V2

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3_\_
Anggsk2 municipalcorporaticSwanyRec (1liabilitycompany
SUBDIVISIONIMPROVEMENTAGREEMENTFINALTRACTMAP33824-1
ThisSubdivisionImprovementAgreement(“Agreement”)isenteredintoasofthisdayof 016byandbetweentheCityofHemet,a on(“City”)andM overyAcquisition,LLC,aDelawarelimite .CityandDeveloperaresometimeshereinafterindividuallyreferredtoas“Party”andhereinaftercollectivelyreferredtoasthe“Parties.”RECITALSA.DeveloperhassubmittedtoCityanapplicationforapprovalofa?naltractmapforrealpropertylocatedwithinCity,alegaldescriptionofwhichisattachedheretoasExhibit“A”.Thetractmapisidenti?edinCityrecordsasTractMapNo.33824-l.On 20__,theCityconditionallyapprovedTractNo.33824-1.B.DeveloperhasnotcompletedalloftheworkormadeallofthePublicImprovementsrequiredbytheSubdivisionMapAct(GovernmentCodesections66410_e_tgq),(“MapAct”)theCityOrdinances,theconditionsofapprovalforTractNo.33824-l,orotherordinances,resolutions,orpoliciesofCityrequiringconstructionofimprovementsinconjunctionwiththesubdivisionofland.C.PursuanttoCityOrdinancesandtheapplicableprovisionsoftheMapAct,DeveloperandCityenterintothisAgreementforthetimelyconstructionandcompletionofthePublicImprovementsandthefurnishingofthesecuritytherefor,acceptabletotheCityEngineerandCityAttorney,forTractNo.33824-l.D.CityhasauthoritytoenterintothisSubdivisionImprovementAgreementpursuanttoGovernmentCodeSections66499— 66499.10.E.PursuanttoGovernmentCodeSection66499,Developer’sexecutionofthisAgreementandtheprovisionofthesecurityaremadeinconsiderationofCity’sapprovalofthefinalmapforTractNo.33824-l.DEFINEDTERMS“Developer”shallmeanMcSweenyRecoveryAcquisition,LLC.Theterm“Developer”shallalsoincludeallassignees,totheextentpermittedunderthisAgreement,oftherightsandobligationsofDeveloperunderthisAgreement,andanysuccessor-in-interesttoDeveloperhavingalegaland/orequitableinterestintheProperty.“EstimatedCosts”shallmeantheCityEngineer’sapproximationoftheactualcosttoconstructthePublicImprovements,includingthereplacementcostforalllandscaping.

RIV#4836-3917-8284V2

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“LitigationExpenses”shallmeanallcostsandexpenses,totheextentreasonableinamount,actuallyandnecessarilyincurredbyapartyingoodfaithintheprosecutionofanactionorproceeding,including,butnotlimitedto,courtcosts,?ling,recording,andservicefees,copyingcosts,exhibitproductioncosts,specialmediarentalcosts,attorneys’fees,feesforinvestigators,witnessfees(bothlayandexpert),travelexpenses,depositionandtranscriptcostsandanyothercostorexpense,theawardofwhichacourtofcompetentjurisdictionmaydeterminetobejustandreasonable.“MapAct”shallmeantheSubdivisionMapAct,GovernmentCodeSections66410etseq.“Property”shallmeanthealloftherealpropertycontainedwithintheboundariesofTractMapNo.33824-1locatedintheCityofHemet,California,asismoreparticularlydescribedinthelegaldescriptionandtractdiagramattachedheretoandincorporatedherebybyreferenceatAttachment“A”.“PublicImprovements”shallinclude,butnotbelimitedto,allgrading,roads,streets,paving,curbsandgutters,sidewalks,paseos,pathways,trails,sanitarysewers,utilities,stormdrains,detentionandretentionbasinsandotherdrainagefacilities,traf?ccontrols,landscaping,streetlightsandallotherfacilitiesrequiredtobeconstructedanddedicatedtotheCityorotherpublicentityasconditionsofapprovalofTentativeTractMapNo.33824-1andasshownindetailontheplans,andspeci?cationswhichhavebeenapprovedbytheCityandincorporatedintoTractMapNo.33824-1.ThePartiesagreethatthePublicImprovementstobecompletedbyDeveloperaremorespeci?callydescribedinthediagramorplanattachedheretoandincorporatedhereinbyreferenceasAttachment“B.Notwithstanding,Attachment“B”,DevelopershallremainobligatedtoconstructandcompleteallofthePublicImprovementsrequiredasconditionsofapprovalforTentativeTractMap33824-1.“RequiredInsurance”shallmeantheinsurancerequiredtobemaintainedbyDeveloperunderSection17.“Security”shallmeansuretybondsintheamountsandunderthetermsofSection12orothersecurityapprovedbyCityEngineerorCityAttorney.“TractNo33824-1”shallmeanthe?nalmappreparedandapprovedbytheCityforTentativeTractMapNo.33824-1.“Warranty”shallmeantheoneyearperiodfollowingcompletionofthePublicImprovementsbyDeveloperandtheacceptanceofthePublicImprovementsbytheCityinwhichDeveloperwarrantsandguaranteesallPublicImprovements.OPERATIVEPROVISIONSNOW,THEREFORE,inconsiderationofthemutualpromisesandcovenantsmadebythepartiesandcontainedhereandotherconsideration,thevalueandadequacyofwhichareherebyacknowledged,thepartiesagreeasfollows:1.EFFECTIVENESS.ThisAgreementshallnotbeeffectiveunlessanduntilallfour(4)ofthefollowingconditionsaresatis?edintheorderprovided:

RIV#4836-3917-8284V2 _ _

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inalMa];andAgreementAggroval
RecordAgreement
RecordFinalMag
Pre-amgrovalofPlansandSgeci?cations

1.1Security.DeveloperprovidesCitywiththeSecurityofthetypeandintheamountsrequiredbythisAgreement;1.2F .TheCityCounciloftheCity(“CityCouncil”)approvesthe?nalmapforTractNo.33824-1andthisAgreement;1.3 .DeveloperandCityexecutetheAgreementandCityrecordsthisAgreementintheRecorder’sOf?ceoftheCountyofRiverside;and1.4 .Developerrecordsthe?nalmapforTractNo.33824-1intheRecorder’sOf?ceoftheCountyofRiverside.Iftheabovedescribedconditionsarenotsatis?edintheorder,mannerandwithinthetimeprovidedunderthisAgreement,thisAgreementshallautomaticallyterminatewithoutneedoffurtheractionbyeitherCityorDeveloper.2.PUBLICIMPROVEMENTS.Developershallconstructorhaveconstructedatitsowncost,expense,andliabilitythePublicImprovements,asde?nedherein,withinthetimeandinthemannerrequiredunderthisAgreement.ConstructionofthePublicImprovementsshallincludeanytransitionsand/orotherincidentalworkdeemednecessaryfordrainageorpublicsafety.TheDevelopershallberesponsibleforthereplacement,relocation,orremovalofanycomponentofanyirrigationwaterorsewersystemincon?ictwiththeconstructionorinstallationofthePublicImprovements.Suchreplacement,relocation,orremovalshallbeperformedtothecompletesatisfactionoftheCityEngineerandtheownerofsuchwaterorsewersystem.Developerfurtherpromisesandagreestoprovideallequipment,tools,materials,labor,tests,designwork,andengineeringservicesnecessaryorrequiredbyCitytofullyandadequatelycompletethePublicImprovements.2.1PriorPartialConstructionofPublicImnrovements.WhereconstructionofanyPublicImprovementshasbeenpartiallycompletedpriortothisAgreement,DeveloperagreestocompletesuchPublicImprovementsorassuretheircompletioninaccordancewiththisAgreement.2.2Permits:Notices:UtilitvStatements.Priortocommencinganywork,Developershall,atitssolecost,expense,andliability,obtainallnecessarypermitsandapprovalsandgiveallnecessaryandincidentalnoticesrequiredforthelawfulconstructionofthePublicImprovementsandperformanceofDeveloper’sobligationsunderthisAgreement.Developershallconducttheworkinfullcompliancewiththeregulations,rules,andotherrequirementscontainedinanypermitorapprovalissuedtoDeveloper.Priortocommencinganywork,Developershall?leawrittenstatementwiththeCityClerkandtheCityEngineer,signedbyDeveloperandeachutilitywhichwillprovideutilityservicetotheProperty,attestingthatDeveloperhasmadealldepositslegallyrequiredbytheutilityfortheextensionandprovisionofutilityservicetotheProperty.2.3 .DeveloperisprohibitedfromcommencingworkonanyPublicImprovementuntilallplansandspeci?cationsforsuchPublicImprovementhavebeensubmittedtoandapprovedbytheCityEngineer,orhisorherdesignee.ApprovalbytheCityEngineershallnotrelieveDeveloperfromensuringthatallPublicImprovementsconformwithallotherrequirementsandstandardssetforthinthisAgreement.

RIV#4836-3917-8284v2 _ -Page 45 of 60

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QualityofWork;Comgli
AlterationstaImprovements

2.4 anceWithLawsandCodes.Theconstructionplansandspeci?cationsforthePublicImprovementsshallbepreparedinaccordancewithallapplicablefederal,stateandlocallaws,ordinances,regulations,codes,standards,andotherrequirements.ThePublicImprovementsshallbecompletedinaccordancewithallapprovedmaps,plans,speci?cations,standarddrawings,andspecialamendmentstheretoon?lewithCity,aswellasallapplicablefederal,state,andlocallaws,ordinances,regulations,codes,standards,andotherrequirementsapplicableatthetimeworkisactuallycommenced.2.5StandardofPerformance.Developeranditscontractors,ifany,shallperformallworkrequiredtoconstructthePublicImprovementsunderthisAgreementinaskillfulandworkmanlikemanner,andconsistentwiththestandardsgenerallyrecognizedasbeingemployedbyprofessionalsinthesamedisciplineintheStateofCalifornia.Developerrepresentsandmaintainsthatitoritscontractorsshallbeskilledintheprofessionalcallingnecessarytoperformthework.Developerwarrantsthatallofitsemployeesandcontractorsshallhavesuf?cientskillandexperiencetoperformtheworkassignedtothem,andthattheyshallhavealllicenses,permits,quali?cationsandapprovalsofwhatevernaturethatarelegallyrequiredtoperfonnthework,andthatsuchlicenses,permits,quali?cationsandapprovalsshallbemaintainedthroughoutthetennofthisAgreement.2.6 .Allworkshallbedoneandimprovementsmadeandcompletedasshownonapprovedplansandspeci?cations,andanysubsequentalterationsthereto.IfduringthecourseofconstructionandinstallationofthePublicImprovementsitisdetenninedthatthepublicinterestrequiresalterationsinthePublicImprovements,DevelopershallundertakesuchdesignandconstructionchangesasmaybereasonablyrequiredbyCity.Anyandallalterationsintheplansandspeci?cationsandthePublicImprovementstobecompletedmaybeaccomplishedwithoutgivingpriornoticethereoftoDeveloper’ssuretyforthisAgreement.2.7OtherObligationsReferencedConditionsofTentativeManApproval.Inadditiontotheforegoing,DevelopershallsatisfyalloftheconditionsofapprovalonthetentativemapfortheProperty.Theconditionsofapprovalwhichhavenotbeensatis?edpriortothedateofthisAgreementareidenti?edonExhibit“D”hereto.3.MAINTENANCEOFPUBLICIMPROVEMENTSANDLANDSCAPING.CityshallnotberesponsibleorliableforthemaintenanceorcareofthePublicImprovementsuntilCityformallyapprovesandacceptstheminaccordancewithitspoliciesandprocedures.CityshallexercisenocontroloverthePublicImprovementsuntilapprovedandaccepted.AnyusebyanypersonofthePublicImprovements,oranyportionthereof,shallbeatthesoleandexclusiveriskoftheDeveloperatalltimespriortoCity’sacceptanceofthePublicImprovements.DevelopershallmaintainallthePublicImprovementsinastateofgoodrepairuntiltheyarecompletedbyDeveloperandapprovedandacceptedbyCity,anduntilthesecurityfortheperformanceofthisAgreementisreleased.Maintenanceshallinclude,butshallnotbelimitedto,repairofpavement,curbs,gutters,sidewalks,signals,parkways,watermains,andsewers;maintainingalllandscapinginavigorousandthrivingconditionreasonablyacceptabletoCity;removalofdebrisfromsewersandstonndrains;andsweeping,repairing,andmaintainingingoodandsafeconditionallstreetsandstreetimprovements.ItshallbeDeveloper’sresponsibilitytoinitiateallmaintenancework,butifitshallfailtodoso,itshallpromptlyperfonnsuchmaintenanceworkwhennoti?edtodosobyCity.IfDeveloperfailstoproperly RIV#4836-3917-8284V2

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prosecuteitsmaintenanceobligationunderthissection,CitymaydoallworknecessaryforsuchmaintenanceandthecostthereofshallbetheresponsibilityofDeveloperanditssuretyunderthisAgreement.CityshallnotberesponsibleorliableforanydamagesorinjuryofanynatureinanywayrelatedtoorcausedbythePublicImprovementsortheirconditionpriortoacceptance.4.CONSTRUCTIONSCHEDULE.UnlessextendedpursuanttothisSection4.1ofthisAgreement,DevelopershallfullyandadequatelycompleteorhavecompletedthePublicImprovementswithinoneyear(12months)followingapprovalofthe?nalmapforTractNo.33824-1.4.lExtensions.Citymay,initssoleandabsolutediscretion,provideDeveloperwithadditionaltimewithinwhichtocompletethePublicImprovements.ItisunderstoodthatbyprovidingtheSecurityrequiredunderSection12.0e_tE1.ofthisAgreement,DeveloperanditssuretyconsentinadvancetoanyextensionoftimeasmaybegivenbyCitytoDeveloper,andwaivesanyandallrighttonoticeofsuchextension(s).Developer’sacceptanceofanextensionoftimegrantedbyCityshallconstituteawaiverbyDeveloperanditssuretyofalldefenseoflaches,estoppel,statutesoflimitations,andotherlimitationsofactioninanyactionorproceeding?ledbyCityfollowingthedateonwhichthePublicImprovementsweretohavebeencompletedhereunder.Inaddition,asconsiderationforgrantingsuchextensiontoDeveloper,CityreservestherighttoreviewtheprovisionsofthisAgreement,including,butnotlimitedto,theconstructionstandards,thecostestimatesestablishedbyCity,andthesuf?ciencyoftheimprovementsecurityprovidedbyDeveloper,andtorequireadjustmentstheretowhenwarrantedaccordingtoCity’sreasonablediscretion.4.2AccrualofLimitationsPeriod.AnylimitationsperiodprovidedbylawrelatedtobreachofthisAgreementorthetermsthereofshallnotaccrueuntilDeveloperhasprovidedtheCityEngineerwithwrittennoticeofDeveloper’sintenttoabandonorotherwisenotcompleterequiredoragreeduponPublicImprovements.5.GRADING.DeveloperagreesthatanyandallgradingdoneortobedoneinconjunctionwithconstructionofthePublicImprovementsordevelopmentofTractNo.33824-lshallconformtoallfederal,state,andlocallaws,ordinances,regulations,andotherrequirements,includingCity’sgradingregulations.Allgrading,landscaping,andconstructionactivitiesshallbeperformedinamannertocontrolerosionandprevent?oodingproblems.TheCityEngineershallhavetheauthoritytorequireerosionplanstoprescribereasonablecontrolsonthemethod,manner,andtimeofgrading,landscaping,andconstructionactivitiestopreventnuisancestosurroundingproperties.Plansshallincludewithoutlimitationtemporarydrainageanderosioncontrolrequirements,dustcontrolprocedures,restrictionsontruckandotherconstructiontrafficroutes,noiseabatementprocedures,storageofmaterialsandequipment,removalofgarbage,trash,andrefuse,securingthejobsitetopreventinjury,andsimilarmatters.InordertopreventdamagetothePublicImprovementsbyimproperdrainageorotherhazards,thegradingshallbecompletedinaccordancewiththetimescheduleforcompletionofthePublicImprovementsestablishedbythisAgreement,andpriortoCity’sapprovalandacceptanceofthePublicImprovementsandreleaseoftheSecurityassetforthinSection12.0e_t$1.ofthisAgreement.6.UTILITIES.Developershallprovideutilityservices,includingwater,sewer,power,gas,andtelephoneservicetoserveeachparcel,lot,orunitoflandwithinTractNo.

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Dcveloper’sNoticeofComgletion
33824-1inaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,theregulations,schedulesandfeesoftheutilitiesoragenciesprovidingsuchservices.Exceptforcommercialorindustrialproperties,Developershallalsoprovidecabletelevisionfacilitiestoserveeachparcel,lot,orunitoflandinaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,therequirementsofthecablecompanypossessingavalidfranchisewithCitytoprovidesuchservicewithinCity’sjurisdictionallimits.Allutilitiesshallbeinstalledunderground.7.FEESANDCHARGES.Developershall,atitssolecost,expense,andliability,payallfees,charges,andtaxesarisingoutofconstructionofthePublicImprovements,including,butnotlimitedto,allplancheck,designreview,engineering,inspection,andotherservicefees,andanyimpactorconnectionfeesestablishedbyCityordinance,resolution,regulation,orpolicy,orasestablishedbyCityrelativetoTractNo.33824-1,orasrequiredbyothergovernmentalagencieshavingjurisdictionoverTractNo.33824-1.8.CITYINSPECTIONOFPUBLICIMPROVEMENTS.Developershall,atitssolecost,expense,andliability,andatalltimesduringconstructionofthePublicImprovements,maintainreasonableandsafefacilitiesandprovidesafeaccessforinspectionbyCityofthePublicImprovementsandareaswhereconstructionofthePublicImprovementsisoccurringorwilloccur.IftheCityinspectorrequestsit,theDeveloperatanytimebeforeacceptanceofthePublicImprovementsshallremoveoruncoversuchportionsofthe?nishedworkasmaybedirectedwhichhavenotpreviouslybeeninspected.Afterexamination,theDevelopershallrestoresaidportionsoftheworktothestandardsrequiredhereunder.InspectionorsupervisionbytheCityshallnotbeconsideredasdirectcontroloftheindividualworkmenonthejobsite.City’sinspectorshallhavetheauthoritytostopanyandallworknotinaccordancewiththerequirementscontainedorreferencedinthisAgreement.TheinspectionoftheworkbyCityshallnotrelieveDeveloperorthecontractorofanyobligationstoful?llthisAgreementashereinprovided,andunsuitablematerialsorworkmayberejectednotwithstandingthatsuchmaterialsorworkmayhavebeenpreviouslyoverlookedoraccepted.9.ADMINISTRATIVECOSTS.IfDeveloperfailstoconstructandinstallalloranypartofthePublicImprovementswithinthetimerequiredbythisAgreement,orifDeveloperfailstocomplywithanyotherobligationcontainedherein,DeveloperanditssuretyshallbejointlyandseverallyliabletoCityforalladministrativeexpenses,fees,andcosts,includingreasonableattorney’sfeesandcosts,incurredinobtainingcompliancewiththisAgreementorinprocessinganylegalactionorforanyotherremediespermittedbylaw.10.ACCEPTANCEOFIMPROVEMENTS;AS-BUILTORRECORDDRAWINGS.TheCityCouncilmay,initssoleandabsolutediscretion,acceptfullycompletedportionsofthePublicImprovementspriortosuchtimeasallofthePublicImprovementsarecomplete,whichshallnotreleaseormodifyDeveloper’sobligationtocompletetheremainderofthePublicImprovementswithinthetimerequiredbythisAgreement.10.1 .UponthetotalorpartialacceptanceofthePublicImprovementsbyCity,Developershall?lewiththeRecorder’sOf?ceoftheCountyofRiversideanoticeofcompletionfortheacceptedPublicImprovementsinaccordancewithCaliforniaCivilCodesection3093,atwhichtimetheacceptedPublicImprovementsshallbecomethesoleandexclusivepropertyofCitywithoutpaymenttherefor.

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CigAccegtanceofPublicImgrovements
Develgper’sObligationtoProvideAs~BuiltorRecordDrawings

10.2 .IfTractNo.33824-1wasapprovedandrecordedasasinglephasemap,CityshallnotacceptanyoneormoreoftheimprovementsuntilallofthePublicImprovementsarecompletedbyDeveloperandapprovedbyCity.IssuancebyCityofoccupancypermitsforanybuildingsorstructureslocatedonthePropertyshallnotbeconstruedinanymannertoconstituteCity’sacceptanceorapprovalofanyPublicImprovements.10.3Notwithstandingtheforegoing,CitymaynotacceptanyPublicImprovementsunlessanduntilDeveloperprovidesone(1)setof“as-built”orrecorddrawingsorplanstotheCityEngineerforallsuchPublicImprovements.Thedrawingsshallbecerti?edandshallre?ecttheconditionofthePublicImprovementsasconstructed,withallchangesincorporatedtherein.11.W ARRANTYANDGUARANTEE.DeveloperherebywarrantsandguaranteesallPublicImprovementsagainstanydefectiveworkorlabordone,ordefectivematerialsfurnishedintheperformanceofthisAgreement,includingthemaintenanceofalllandscapingwithinthePropertyinavigorousandthrivingconditionreasonablyacceptabletoCity,foraperiodofone(1)yearfollowingcompletionoftheworkandacceptancebyCity.DuringtheWarranty,Developershallrepair,replace,orreconstructanydefectiveorotherwiseunsatisfactoryportionofthePublicImprovements,inaccordancewiththecurrentordinances,resolutions,regulations,codes,standards,orotherrequirementsofCity,andtotheapprovaloftheCityEngineer.Allrepairs,replacements,orreconstructionduringtheWarrantyshallbeatthesolecost,expense,andliabilityofDeveloperanditssurety.AstoanyPublicImprovementswhichhavebeenrepaired,replaced,orreconstructedduringtheWarranty,DeveloperanditssuretyherebyagreetoextendtheWarrantyforanadditionalone(1)yearperiodfollowingCity’sacceptanceoftherepaired,replaced,orreconstructedPublicImprovements.NothinghereinshallrelieveDeveloperfromanyotherliabilityitmayhaveunderfederal,state,orlocallawtorepair,replace,orreconstructanyPublicImprovementfollowingexpirationoftheWarrantyoranyextensionthereof.Developer’swarrantyobligationunderthissectionshallsurvivetheexpirationorterminationofthisAgreement.12.SECURITY;SURETYBONDS.PriortoCity’sapprovalandexecutionofthisAgreement,DevelopershallprovideCitywithsuretybondsintheamountsandunderthetermssetforthbelow.TheamountoftheSecurityshallbebasedontheCityEngineer’sEstimatedCosts.IfCitydeterminesatanytimepriortoDeveloper’scompletionofthePublicImprovementsunderSection4[ConstructionSchedule],initssoleandabsolutediscretion,thattheEstimatedCostshavechanged,DevelopershalladjusttheSecurityintheamountrequestedbyCity.Developer’scompliancewiththisprovision(Section12.0e_t?q.)shallinnowaylimitormodifyDeve1oper’sindemni?cationobligationprovidedinSection16.0ofthisAgreement.12.1PerformanceBond.ToguaranteethefaithfulperformanceofthePublicImprovementsandalltheprovisionsofthisAgreement,toprotectCityifDeveloperisindefaultassetforthinSection18.0e_tseq.ofthisAgreement,andtosecureDeveloper’sone—yearguaranteeandwarrantyofthePublicImprovements,includingthemaintenanceofalllandscapinginavigorousandthrivingcondition,DevelopershallprovideCityafaithfulperfonnancebondintheamountofOneMillionTwoHundredandFifty-ThreeThousandandFiveHundredDollars($1,253,500.00),whichsumshallbenotlessthanonehundredpercent(100%)oftheEstimatedCosts.

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AdditionalReguirements
Develoner’sLiabili?

12.2PartialRelease.TheCityCouncilmay,initssoleandabsolutediscretionanduponrecommendationoftheCityEngineer,partiallyreleaseaportionorportionsoftheSecurityprovidedunderthissectionasthePublicImprovementsareacceptedbyCity,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-1,andthetotalremainingSecurityisnotlessthantwenty-?vepercent(25%)oftheEstimatedCosts.AllSecurityprovidedunderthissectionshallbereleasedattheendoftheWarrantyperiod,oranyextensionthereofasprovidedinSection11.0ofthisAgreement,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-1.12.3Labor&MaterialBong.Tosecurepaymenttothecontractors,subcontractors,laborers,materialmen,andotherpersonsfurnishinglabor,materials,orequipmentforperformanceofthePublicImprovementsandthisAgreement,DevelopershallprovideCityalaborandmaterialsbondintheamountofOneMillionTwoHundredandFifty-ThreeThousandandFiveHundredDollars($1,253,500.00),whichsumshallnotbelessthanonehundredpercent(100%)oftheEstimatedCosts.TheSecurityprovidedunderthissectionmaybereleasedbywrittenauthorizationoftheCityEngineeraftersix(6)monthsfromthedateCityacceptsthe?nalPublicImprovements.TheamountofsuchSecurityshallbereducedbythetotalofallstopnoticeormechanic’slienclaimsofwhichCityisaware,plusanamountequaltotwentypercent(20%)ofsuchclaimsforreimbursementofCity’santicipatedadministrativeandlegalexpensesarisingoutofsuchclaims.12.4 .ThesuretyforanysuretybondsprovidedasSecurityshallhaveacurrentA.M.Best’sratingofnolessthanA:VIII,beabankorinsurancecompanylicensedtotransactsuretybusinessinCalifornia,andshallbesatisfactorytoCity.AspartoftheobligationsecuredbytheSecurityandinadditiontothefaceamountoftheSecurity,theDeveloperoritssuretyshallsecurethecostsandreasonableexpensesandfees,includingreasonableattorney’sfeesandcosts,incurredbyCityinenforcingtheobligationsofthisAgreement.TheDeveloperanditssuretystipulateandagreethatnochange,extensionoftime,alteration,oradditiontothetermsofthisAgreement,thePublicImprovements,ortheplansandspeci?cationsforthePublicImprovementsshallinanywayaffectitsobligationontheSecurity.12.5FormofSecurity.TheevidenceoftheSecurityshallbeprovidedontheformssetforthinAttachment“C”,unlessotherformsaredeemedacceptablebytheCityEngineerandtheCityAttorney,andwhensuchformsarecompletedtothesatisfactionofCity,theformsandevidenceoftheSecurityshallbeattachedheretoasAttachment“C”andincorporatedhereinbythisreference.12.6 .WhilenoactionofDevelopershallberequiredinorderforCitytorealizeonitssecurityunderanySecurityinstrument,DeveloperagreestocooperatewithCitytofacilitateCity’srealizationunderanySecurityinstrument,andtotakenoactiontopreventCityfromsuchrealizationunderanySecurityinstrument.NotwithstandingthegivingofanySecurityinstrumentorthesubsequentexpirationofanySecurityinstrumentoranyfailurebyanysuretyor?nancialinstitutiontoperformitsobligationswithrespectthereto,DevelopershallbepersonallyliableforperformanceunderthisAgreementandforpaymentofthecostofthelaborandmaterialsfortheimprovementsrequiredtobeconstructedorinstalledherebyandshall,withinten(10)daysafterwrittendemandtherefor,delivertoCitysuchsubstituteSecurityasCityshallrequiresatisfyingtherequirementsinthisSection12.

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13.MONUMENTSECURITY .PriortoCity’sexecutionofthisAgreement,toguaranteepaymenttotheengineerorsurveyorforthesettingofallsubdivisionboundaries,lotcorners,andstreetcenterlinemonumentsforTractNo.33824-1incompliancewiththeapplicableprovisionsofCity’sMunicipaland/orDevelopmentCode(“SubdivisionMonuments”),DevelopershalldepositcashwithCityintheamountof{NineteenThousandTwo-HundredFiftyDollars}($19,250),whichsumshallnotbelessthanonehundredpercent(100%)ofthecostsofsettingtheSubdivisionMonumentsasdeterminedbytheCityEngineer.SaidcashdepositmaybereleasedbywrittenauthorizationoftheCityEngineerafterallrequiredSubdivisionMonumentsareacceptedbytheCityEngineer,CityhasreceivedwrittenacknowledgmentofpaymentinfullfromtheengineerorsurveyorwhosettheSubdivisionMonuments,andprovidedDeveloperisnotindefaultofanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-1.14.LIEN.TosecurethetimelyperformanceofDeveloper’sobligationsunderthisAgreement,includingthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_t?n,and13.0ofthisAgreement,DeveloperherebycreatesinfavorofCityalienagainstallportionsofthePropertynotdedicatedtoCityorsomeothergovernmentalagencyforapublicpurpose.AstoDeveloper’sdefaultonthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_t?g.and13.0ofthisAgreement,Cityshall?rstattempttocollectagainstsuchsecuritypriortoexercisingitsrightsasacontractlienholderunderthissection.15.SIGNSANDADVERTISING.DeveloperunderstandsandagreestoCity’sordinances,regulations,andrequirementsgoverningsignsandadvertisingstructures.DeveloperherebyagreeswithandconsentstothesummaryremovalbyCity,withoutnoticetoDeveloper,ofallsignsorotheradvertisingstructureserected,placed,orsituatedinviolationofanyCityordinance,regulation,orotherrequirement.RemovalshallbeattheexpenseofDeveloperanditssurety.DeveloperanditssuretyshallindemnifyandholdCityfreeandharmlessfromanyclaimordemandarisingoutoforincidenttosigns,advertisingstructures,ortheirremoval.16.INDEMNIFICATION.Developershalldefend,indemnify,andholdharmlessCity,itselectedof?cials,of?cers,employees,andagentsfromanyandallactualorallegedclaims,demands,causesofaction,liability,loss,damage,orinjury,topropertyorpersons,includingwrongfuldeath,whetherimposedbyacourtoflaworbyadministrativeactionofanyfederal,state,orlocalgovernmentalbodyoragency,arisingoutoforincidenttoanyacts,omissions,negligence,orwillfulmisconductofDeveloper,itspersonnel,employees,agents,orcontractorsinconnectionwithorarisingoutofconstructionormaintenanceofthePublicImprovements,orperformanceofthisAgreement.Thisindemni?cationincludes,withoutlimitation,thepaymentofallpenalties,?nes,judgments,awards,decrees,attorneys’fees,andrelatedcostsorexpenses,andthereimbursementofCity,itselectedof?cials,of?cers,employees,and/oragentsforalllegalexpensesandcostsincurredbyeachofthem.Thisindemni?cationexcludesonlysuchportionofanyclaim,demand,causeofaction,liability,loss,damage,penalty,?ne,orinjury,topropertyorpersons,includingwrongfuldeath,whichiscausedsolelyandexclusivelybythegrossnegligenceorwillfulmisconductofCityasdeterminedbyacourtoradministrativebodyofcompetentjurisdiction.Developer’sobligationtoindemnifyCityshallsurvivetheexpirationorterminationofthisAgreement,andshallnotberestrictedtoinsuranceproceeds,ifany,receivedbyCity,itselectedof?cials,of?cers,employees,oragents.

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AdditionalInsured;Separationofinsureds
rima?Insurance,‘WaiverofSubrogation

17.INSURANCE17.1Types,‘Amounts.Developershallprocureandmaintain,andshallrequireitscontractorstoprocureandmaintain,duringconstructionofanyPublicImprovementpursuanttothisAgreement,insuranceofthetypesandintheamountsdescribedbelow.IfanyoftheRequiredInsurancecontainsageneralaggregatelimit,suchinsuranceshallapplyseparatelytothisAgreementorbenolessthantwotimesthespeci?edoccurrencelimit.17.1.1GeneralLiability.DeveloperanditscontractorsshallprocureandmaintainoccurrenceVersiongeneralliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$3,000,000peroccurrenceforbodilyinjury,personalinjury,andpropertydamage.17.1.2BusinessAutomobileLiability.Developeranditscontractorsshallprocureandmaintainbusinessautomobileliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$1,000,000peroccurrence.Suchinsuranceshallincludecoveragefortheownership,operation,maintenance,use,loading,orunloadingofanyvehicleowned,leased,hired,orborrowedbytheinsuredorforwhichtheinsuredisresponsible.17.1.3Workers’Compensation.Developeranditscontractorsshallprocureandmaintainworkers’compensationinsurancewithlimitsasrequiredbytheLaborCodeoftheStateofCaliforniaandemployers’liabilityinsurancewithlimitsofnotlessthan$1,000,000peroccurrence,atalltimesduringwhichinsuredretainsemployees.17.1.4ProfessionalLiability.ForanyconsultantorotherprofessionalwhowillengineerordesignthePublicImprovements,liabilityinsuranceforerrorsandomissionswithlimitsnotlessthan$1,000,000peroccurrence,shallbeprocuredandmaintainedforaperiodof?ve(5)yearsfollowingcompletionofthePublicImprovements.Suchinsuranceshallbeendorsedtoincludecontractualliability.17.2Deductibles.Anydeductiblesorself-insuredretentionsmustbedeclaredtoandapprovedbyCity.AttheoptionofCity,either:(a)theinsurershallreduceoreliminatesuchdeductiblesorself-insuredretentionsasrespectsCity,itselectedof?cials,of?cers,employees,agents,andvolunteers;or(b)Developeranditscontractorsshallprovidea?nancialguaranteesatisfactorytoCityguaranteeingpaymentoflossesandrelatedinvestigationcosts,claims,andadministrativeanddefenseexpenses.17.3 .TheRequiredInsuranceshallnameCity,itselectedof?cials,of?cers,employees,agents,andV olunteersasadditionalinsuredswithrespecttoworkperformedbyoronbehalfofDeveloperoritscontractors,includingmaterials,parts,orequipmentfurnishedinconnectiontherewith.TheRequiredInsuranceshallcontainstandardseparationofinsuredprovisions,andshallcontainnospeciallimitationsonthescopeofitsprotectiontoCity,itselectedof?cials,of?cers,employees,agents,andV olunteers.17.4P .TheRequiredInsuranceshallbeprimarywithrespecttoanyinsuranceorself-insuranceprogramscoveringCity,itselectedof?cials,of?cers,employees,agents,andvolunteers.AllpoliciesfortheRequired RIV#4836-3917-8284V2 _ _

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Certi?cates;Veri?cation
Term;CancellationNotice
FailuretoRemedy;CigAction
InsuranceshallprovidethattheinsurancecompanywaivesallrightofrecoverybywayofsubrogationagainstCityinconnectionwithanydamageorharmcoveredbysuchpolicy.17.5 .DeveloperanditscontractorsshallfurnishCitywithoriginalcerti?catesofinsuranceandendorsementseffectingcoveragefortheRequiredInsurance.Thecerti?catesandendorsementsforeachinsurancepolicyshallbesignedbyapersonauthorizedbythatinsurertobindcoverageonitsbehalf.Allcerti?catesandendorsementsmustbereceivedandapprovedbyCitybeforeworkpursuanttothisAgreementcanbegin.Cityreservestherighttorequirecomplete,certi?edcopiesofallrequiredinsurancepolicies,atanytime.17.6 .DeveloperanditscontractorsshallmaintaintheRequiredInsuranceforthetermofthis/Agreementandshallreplaceanycerti?cate,policy,orendorsementwhichwillexpirepriortothatdate.AllpoliciesshallbeendorsedtoprovidethattheRequiredInsuranceshallnotbesuspended,voided,reduced,canceled,orallowedtoexpireexcepton30days’priorwrittennoticetoCity.17.7InsurerRating.UnlessapprovedinwritingbyCity,allRequiredInsuranceshallplacedwithinsurerslicensedtodobusinessintheStateofCaliforniaandwithacurrentA.M.BestratingofatleastA:VIII.18.DEFAULT;NOTICE;REMEDIES.18.1Notice.IfDeveloperneglects,refuses,orfailstoful?llortimelycompleteanyobligation,term,orconditionofthisAgreement,orifCitydeterminesthereisaviolationofanyfederal,state,orlocallaw,ordinance,regulation,code,standard,orotherrequirement,CitymayatanytimethereafterdeclareDevelopertobeindefaultorviolationofthisAgreementandmakewrittendemanduponDeveloperoritssurety,orboth,toimmediatelyremedythedefaultorviolation.Developershallcommencetheworkrequiredtoremedythedefaultorviolationwithinten(10)daysofthewrittendemandfromtheCity.Ifthedefaultorviolationconstitutesanimmediatethreattothepublichealth,safety,orwelfare,Citymayprovidethedemandverbally,andDevelopershallcommencetherequiredworkwithintwenty-four(24)hoursthereof.ImmediatelyuponCity’sissuanceofthedemandtoremedythedefault,DeveloperanditssuretyshallbeliabletoCityforallcostsofconstructionandinstallationofthePublicImprovementsandallotheradministrativecostsexpensesasprovidedforinSection9.0ofthisAgreement.18.2 .IftheworkrequiredtoremedythenoticeddefaultorviolationisnotdiligentlyprosecutedtoasubstantialcompletionacceptabletoCitywithinareasonabletimedesignatedbytheCity,Citymaycompleteallremainingwork,arrangeforthecompletionofallremainingwork,and/orconductsuchremedialactivityasinitssoleandabsolutediscretionitbelievesisrequiredtoremedythedefaultorviolation.Allsuchworkorremedialactivityshallbeatthesoleandabsolutecost,expense,andliabilityofDeveloperanditssurety,withoutthenecessityofgivinganyfurthernoticetoDeveloperorsurety.City’srighttotakesuchactionsshallinnowaybelimitedbythefactthatDeveloperoritssuretymayhaveconstructedany,ornoneoftherequiredoragreeduponPublicImprovementsatthetimeofCity’sdemandforperformance.IntheeventCityelectstocompleteorarrangeforcompletionoftheremainingworkandimprovements,Citymayrequire RIV#4836-3917-8284v2 _ -

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AuthorigytoEnterAgreement
Coogeration;FurtherA
Construction;References;Cagtions
allworkbyDeveloperoritssuretytoceaseinordertoallowadequatecoordinationbyCity.Notwithstandingtheforegoing,ifconditionsprecedentforreversiontoacreagecanbemetandiftheinterestsofCitywillnotbeprejudicedthereby,CitymayalsoprocessareversiontoacreageandthereafterrecoverfromDeveloperoritssuretythefullcostandexpenseincurred.18.3OtherRemedies.NoactionbyCitypursuanttoSection18.0g$1.ofthisAgreementshallprohibitCityfromexercisinganyotherrightorpursuinganyotherlegalorequitableremedyavailableunderthisAgreementoranyfederal,state,orlocallaw.Citymayexerciseitrightsandremediesindependentlyorcumulatively,andCitymaypursueinconsistentremedies.Citymayinstituteanactionfordamages,injunctiverelief,orspeci?cperformance.19.GENERALPROVISIONS.19.1 .EachPartywarrantsthattheindividualswhohavesignedthisAgreementhavethelegalpower,right,andauthoritymakethisAgreementandbindeachrespectiveParty.19.2_ c_ts.ThePartiesshallfullycooperatewithoneanother,andshalltakeanyadditionalactsorsignanyadditionaldocumentsasmaybenecessary,appropriate,orconvenienttoattainthepurposesofthisAgreement.19.3 .ItbeingagreedthePartiesortheiragentshaveparticipatedinthepreparationofthisAgreement,thelanguageofthisAgreementshallbeconstruedsimply,accordingtoitsfairmeaning,andnotstrictlyfororagainstanyParty.Anytermreferencingtime,days,orperiodforperformanceshallbedeemedcalendardaysandnotworkdays.AllreferencestoDeveloperincludeallpersonnel,employees,agents,andsubcontractorsofDeveloper,exceptasotherwisespeci?edinthisAgreement.AllreferencestoCityincludeitselectedof?cials,of?cers,employees,agents,andvolunteersexceptasotherwisespeci?edinthisAgreement.Thecaptionsofthevariousarticlesandparagraphsareforconvenienceandeaseofreferenceonly,anddonotde?ne,limit,augment,ordescribethescope,content,orintentofthisAgreement.19.4Notices.Allnotices,demands,invoices,andwrittencommunicationsshallbeinwritinganddeliveredtothefollowingaddressesorsuchotheraddressesasthePartiesmaydesignatebywrittennotice:CITY:CityofHemetAttn:AlexanderP.Meyerhoff,CityManager445E.FloridaAvenueHemet,CA92543 RIV#4836-3917-8284v2 _ -Page 54 of 60

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Amendment,"Modi?cation
AssignmentorTransferofAgreement
BindingEffect
NoThirdPargBene?
nvalidiggSeverabilig
DEVELOPER:McSweenyFarmsRecoveryAcquisition,LLCc/oRaintreeInvestmentCorporationAttn:MatthewVillalobos5796ArmadaDrive,Suite375Carlsbad,CA92008Dependinguponthemethodoftransmittal,noticeshallbedeemedreceivedasfollows:byfacsimile,asofthedateandtimesentprovidedtheoriginaliscontemporaneouslydepositedwithUnitedStatesPostalServiceanddeliveredbyregularmail;bymessenger,asofthedatedelivered;andbyU.S.Mail?rstclasspostageprepaid,asof72hoursafterdepositintheU.S.Mail.19.5 . Nosupplement,modi?cation,oramendmentofthisAgreementshallbebindingunlessexecutedinwritingandsignedbybothParties.19.6Waiver.City’sfailuretoinsistuponstrictcompliancewithanyprovisionofthisAgreementortoexerciseanyrightorprivilegeprovidedherein,orCity’swaiverofanybreachofthisAgreement,shallnotrelieveDeveloperofanyofitsobligationsunderthisAgreement,whetherofthesameorsimilartype.TheforegoingshallbetruewhetherCity’sactionsareintentionalorunintentional.Developeragreestowaive,asadefense,counterclaimorsetoff,anyandalldefects,irregularitiesorde?cienciesintheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement,aswellasthelaws,rules,regulations,ordinancesorresolutionsofCitywithregardstotheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement.19.7 .Developershallnotassign,hypothecate,ortransfer,eitherdirectlyorbyoperationoflaw,thisAgreementoranyinteresthereinwithoutpriorwrittenconsentofCity.Anyattempttodososhallbenullandvoid,andanyassignee,hypothecatee,ortransfereeshallacquirenorightorinterestbyreasonofsuchattemptedassignment,hypothecation,ortransfer.Unlessspeci?callystatedtothecontraryinCity’swrittenconsent,anyassignment,hypothecation,ortransfershallnotreleaseordischargeDeveloperfromanydutyorresponsibilityunderthisAgreement.19.8 .Eachandallofthecovenantsandconditionsshallbebindingonandshallinuretothebene?toftheParties,andtheirsuccessors,heirs,personalrepresentatives,orassigns.ThissectionshallnotbeconstruedasanauthorizationforanyPartytoassignanyrightorobligation.19.9_ cilaries.Therearenointendedthirdpartybene?ciariesofanyrightorobligationassumedbytheParties.19.10I .IfanyportionofthisAgreementisdeclaredinvalid,illegal,orotherwiseunenforceablebyacourtofcompetentjurisdiction,theremainingprovisionsshallcontinueinfullforceandeffect.

RIV#4836-3917-8284v2 _ _Page 55 of 60

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Attorneys’FeesandCosts
RelationshigBetweenTheParties
EffectiveDateofAgreement.cithasbeenformallyapprovedby
Alexandr .Meyoff

19.11ConsenttoJurisdictionandVenue.ThisAgreementshallbeconstruedinaccordancewithandgovernedbythelawsoftheStateofCalifornia.AnylegalactionorproceedingbroughttointerpretorenforcethisAgreement,orwhichinanywayarisesoutoftheParties’activitiesundertakenpursuanttothisAgreement,shallbe?ledandprosecutedintheappropriateCaliforniaStateCourtintheCountyofRiverside,California.EachPartywaivesthebene?tofanyprovisionofstateorfederallawprovidingforachangeofvenuetoanyothercourtorjurisdictionincluding,withoutlimitation,achangeofvenuebasedonthefactthatagovernmentalentityisapartytotheactionorproceeding,orthatafederalrightorquestionisinvolvedorallegedtobeinvolvedintheactionorproceeding.Withoutlimitingthegeneralityoftheforegoingwaiver,DeveloperexpresslywaivesanyrighttohavevenuetransferredpursuanttoCaliforniaCodeofCivilProcedureSection394.19.12 .Ifanyarbitration,lawsuit,orotherlegalactionorproceedingisbroughtbyonePartyagainsttheotherPartyinconnectionwiththisAgreementortheProperty,theprevailingparty,whetherby?naljudgmentorarbitrationaward,shallbeentitledtoandrecoverfromtheotherpartyallLitigationExpenses.Anyjudgment,order,orawardenteredinsuchlegalactionorproceedingshallcontainaspeci?cprovisionprovidingfortherecoveryofLitigationExpenses.19.13 .ThePartiesherebymutuallyagreethatneitherthisAgreement,anymaprelatedtoTractNo.33824-1,noranyotherrelatedentitlement,permit,orapprovalissuedbyCityforthePropertyshalloperatetocreatetherelationshipofpartnership,jointVenture,oragencybetweenCityandDeveloper.Developer’scontractorsandsubcontractorsareexclusivelyandsolelyunderthecontrolanddominionofDeveloper.NothinghereinshallbedeemedtomakeDeveloperoritscontractorsanagentorcontractorofCity.19.14Counterparts.ThisAgreementmaybeexecutedincounterpartoriginals,whichtakentogether,shallconstituteoneandthesameinstrument.19.15 ThisAgreementshallnotbecomeeffectiveuntilthedat theCityandexecutedbytheappropriateauthoritiesofCityandDeveloper.INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedateandyear?rst-abovewritten. CITYOFHEMET By:PCityManager
RIV#4836-3917-8284V2 _ _

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EricVa1
ENTITY .

MARSHAROJAS.StateofNewYorkNctaryPublicNo.MROEOSABB1Quali?edInSu?folkCounty CummissinnExpiresOctoher1.2017
I uthcnz
ATTEST:

SarahMcComasCityClerk

APPROVEDASTOFORM
By:S.CityAttorney
McSweenyFarmsRecoveryAcquisition,LLC
By: By:J Shumaker arrIts:AuthorizedSignatoryts:A Signatory NOTE:DEVELOPER’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETODEVELOPER’SBUSINESS RIV#4836-3917-8284v2 _ _Page 57 of 60

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EXHIBIT“A”LEGALDESCRIPTIONOFPROPERTYTRACTNO.33824-1
RIV#4836-3917-8284V2 SUBDIVISIONIMPROVEMENTAGREEMENT

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EXHIBIT“B”LISTOFPUBLICIMPROVEMENTSTRACTNO.33824-1
RIV#4836-3917-8284v2 SUBDIVISIONIMPROVEMENTAGREEMENT

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EXHIBIT“C”SURETYBONDSANDOTHERSECURITYTRACTNO.33824-1AsevidenceofunderstandingtheprovisionscontainedinthisAgreement,andoftheDeveloper’sintenttocomplywithsame,theDeveloperhassubmittedthebelowdescribedsecurityintheamountsrequiredbythisAgreement,andhasaf?xedtheappropriatesignaturesthereto:PERFORMANCEBONDPRINCIPALAMOUNT:$1,253,500Surety:Lexon/IronshoreAttomey—in-fact:Address:IronshoreSpecialtyInsuranceCo.P.O.Box3407NewYork,NY .1008 LABOR&MATERIALBONDPRINCIPALAMOUNT:$1,253,500Surety:Lexon/IronshoreAttorney-in-fact:Address:IronshoreSpecialtyInsuranceCo.P.O.Box3407NewYork,NY ,1008 CASHMONUMENTSECURITY:$19,250AmountdepositedperCashReceiptNo. Date:
1 SUBDIVISIONIMPROVEMENTAGREEMENTRIV#4836-3917-8284V2Page 60 of 60

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Jan 24 2023
Department: Public Works
Submitted by: Eddie Pust, Interim City Manager
Noah Rau, Public Works Director/City Engineer;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Approving Replacement Subdivision Improvement Agreement and Improvement Security for Tract Map No. 33824-2, Located in McSweeny Farms, South of McSweeny Parkway and East of South Village Lo op ( KB Home Coastal Inc., a California Corporation) and Release of Existing Subdivision Improvement Agreement and Improvement Security Provided by McSweeny Recovery Acquisition, LLC

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, Approving Replacement Subdivision Improvement Agreement and Improvement Security for Tract Map No. 33824 -2, Located in McSweeny Farms, South of McSweeny Parkway and East of South Village Loop (KB Home Coastal Inc., a California Corporation ) and Release of Existing Subdivision Improvement Agreement and Improvement Security Provided by McSweeny Recovery Acquisition, LLC.

BACKGROUND:

At a regularly scheduled City Council meeting held on September 27, 2016, the City Council approved Tract Map No. 33824 -2, along with the Subdivision Improvement Agreement ("Agreement"), and accepted the Performance Bonds and Labor and Material Bonds ("Bonds"). The Agreement was executed by McSween y R ecovery Acquisition, LLC, ("Developer"), who also secured the Bonds necessary to ensure the public improvements associated with this Tract Map would be completed.

The Developer has since sold Tract Map No. 33824-2 to KB Home Coastal Inc., a California Corporation ("Builder"). The remainder of the public improvements is to be completed by Builder and will require a replacement Subdivision Improvement Agreement and associated bonds.

ANALYSIS:

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Tract Map No. 33824-2 provides for the development of single-family residential units and all associated road and utility improvements located in McSweeny Farms Specific Plan Area, south of McSweeny Parkway and east of South Village Loop. Now that the Dev eloper has sold the property associated with Tract Map No. 33824 -2 to the Builder, the next step in the process is the consideration of the replacement agreement for the subdivision work and accepting the new bonds to guarantee the completion of the work. At the same time, the Developer is requesting the release of the Subdivision Improvement Agreement and associated bonds.

DISCUSSION:

The City Attorney has reviewed and approved the Subdivision Improvement Agreements and the Improvement Bond forms. Staff recommends that the City Council accept the replacement subdivision improvement agreement and public improvement bonds from the Builder and release the agreement and bonds provided by the Developer.

PREVIOUS COUNCIL ACTION:

1. City Council meeting of Sep tember 27, 2016 - City Council approved Tract Map No. 33824 -2; subdivision improvement agreement; and accepted offers of dedication and improvement bonds from the developer.

STRATEGIC PLAN INTEGRATION:

GOAL ONE: QUALITY OF LIFE:

To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.

Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.

FISCAL IMPACT:

There are no impacts to the General Fund with this City Council action.

ALTERNATIVE(S):

1. Do not approve the Resolution to replace the Subdivision Improvement Agreement and Improvement Security

2. Provide alternate direction to staff

REVIEWED BY LEGAL:

☒ Staff report ☒ Resolution
☐ Ordinance ☒ Agreement

ATTACHMENT(S):

Attachment 1 - Reso Approving replacement SIA for Final Tract Map 33824-2-REVISED Attachment 2 - Exhibit A-Subdivision Improvement Agreement - Final Tract Map No. 33824-2-

REVISED

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Attachment 3 - Exhibit B - McSweeny TR 33824-2 Final Map Attachment 4 - Existing 33824-2 Subdivision Improvement Agreement-Raintree

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RIV #4833-2180-7817 v1 - 1 -
CITY COUNCIL RESOLUTION NO. 2023-XXX
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CITY OF HEMET
Hemet, California
RESOLUTION NO. 2023-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HEMET, CALIFORNIA, APPROVING REPLACEMENT

SUBDIVISION IMPROVMENET AGREEMENT AND
IMPROVEMENT SECURITY FOR TRACT MAP NO. 33824-
2, LOCATED IN MCSWEENY FARMS, SOUTH OF

MCSWEENY PARKWAY AND EAST OF SOUTH VILLAGE
LOOP (KB HOME COASTAL INC., A CALIFORNIA

CORPORATION) AND RELEASE OF EXISTING

SUBDIVISION IMPROVEMENT AGREEMENT AND

IMPROVEMENTE SECURITY PROVIVDED BY
MCSWEENY RECOVERY ACQUISITION, LLC.

WHEREAS, Tract Map 33824-2, submitted for approval by McSweeny Recovery Acquisition, LLC., a Delaware Limited Liability Company (“Developer”), and approved by the City of Hemet on September 28, 2016; and
WHEREAS, KB Home Coastal Inc., a California Corporation (“Builder”) has acquired the land known as Tract Map 33824-2 from Developer (a copy of which is attached as Exhibit “B”); and
WHEREAS, to meet and continue the requirements established as a prerequisite to final approval of Final Tract Map No. 33824-2, Builder agreed to enter into a Subdivision Improvement Agreement superseding and replacing Subdivision Improvement Agreement known as Riverside County Recorder’s Document No. 2016- 0436391 (“Existing Agreement”), together with good and sufficient security, in conformance with the City Attorney’s approved format, for approval and execution by the City; and
WHEREAS, upon recordation of the replacement Subdivision Improvement Agreement and Improvement Security by Builder, the previously recorded Existing Agreement shall be released by the Interim City Manager or designee; and

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RIV #4833-2180-7817 v1 - 2 -
CITY COUNCIL RESOLUTION NO. 2023-XXX
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WHEREAS, the Subdivision Improvement Agreement and good and sufficient security have been accepted by the City; and

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HEMET AS FOLLOWS:

SECTION 1. RECITALS
The foregoing recitals are true and correct.

SECTION 2. APPROVAL OF REPLACEMENT SUBDIVISION IMPROVEMENT

AGREEMENT
A. The Subdivision Improvement Agreement attached hereto as Exhibit “A” is approved and the Interim City Manager is authorized to execute it and the City Clerk is authorized to attest thereto.

B. Said improvement security is accepted as good and sufficient, subject to approval as to form and content thereof by the City Attorney,
C. Upon recordation of the Replacement Subdivision Improvement Agreement, the Interim City Manager, or his designee, is authorized to release the existing Subdivision Improvement Agreement and Improvement Security.

D. Pursuant to Government Code Section 66458, Tract Map No. 33824-2 was previously approved, and City accepted the real property described therein.

SECTION 3. CERTIFICATION
This Resolution shall take effect immediately upon its adoption by the City Council. The City Clerk shall attest to and certify the vote adopting this Resolution.

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RIV #4833-2180-7817 v1 - 3 -
CITY COUNCIL RESOLUTION NO. 2023-XXX
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PASSED, APPROVED AND ADOPTED this 24th day of January 2023.

Joe Males, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________
John Paul Maier, City Clerk Steven Graham, City Attorney

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RIV #4833-2180-7817 v1 - 4 -
CITY COUNCIL RESOLUTION NO. 2023-XXX
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State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 24th day of January 2023 and was passed by the following vote:

AYES: Council Members:

NOES: Council Member:

ABSTAIN: Council Member:

ABSENT: Council Member:
_________________________________
John Paul Maier, City Clerk

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RIV #4830-8901-9593 v1

RECORDED AT THE REQUEST OF
AND WHEN RECORDED RETURN TO:
(Document exempt from recording fees
pursuant to Cal. Gov. Code § 27383)

CITY OF HEMET
Attn: City Manager
445 East Florida Avenue
Hemet, California 92543
THIS SPACE FOR RECORDER’S USE ONLY

SUBDIVISION IMPROVEMENT AGREEMENT
FINAL TRACT MAP 33824-2
By and Between

THE CITY OF HEMET,
a municipal corporation
and
KB HOME COASTAL INC.,
a California corporation
DATED January 24, 2023

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RIV #4830-8901-9593 v1 - 1 -

SUBDIVISION IMPROVEMENT AGREEMENT
FINAL TRACT MAP 33824-2
This Subdivision Improvement Agreement (“Agreement”) is entered into as of this 24th day of January, 2023 (“Effective Date”) by and between the City of Hemet, a municipal corporation (“City”) and KB HOME Coastal Inc., a California corporation (“Builder”). City and Builder are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City of Hemet has previously approved Tract Map No. 33824-2 on September 28, 2016, along with proper and sufficient security.

B. McSweeny Recovery Acquisition, LLC, a Delaware Limited Liability Company, (“Developer”) has not completed all of the work or made all of the Public Improvements required by the Subdivision Map Act (Government Code sections 66410 et seq.), (“Map Act”) the City Ordinances, the conditions of approval for Tract No. 33824-2, or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision of land.

C. Builder has acquired the land known as Tract Map 33824-2 from Developer.

D. The City desires to enter into this Agreement amending and superseding the Subdivision Improvement Agreement by and between the City of Hemet, a municipal corporation and Developer, also known as Riverside County Recorder Office Document No. 2016-0436391 (“Original Subdivision Improvement Agreement”).

E. Builder has not completed all of the work or made all of the Public Improvements required by the Subdivision Map Act (Government Code sections 66410 et seq.), (“Map Act”) the City Ordinances, the conditions of approval for Tract No. 33824-2, or other ordinances, resolutions, or policies of City requiring construction of improvements in conjunction with the subdivision of land.

F. Pursuant to City Ordinances and the applicable provisions of the Map Act, Builder and City enter into this Agreement for the timely construction and completion of the Public Improvements and the furnishing of the security therefor, acceptable to the City Engineer and City Attorney, for Tract Map No. 33824-2.

G. City has authority to enter into this Subdivision Improvement Agreement pursuant to Government Code Sections 66499 – 66499.10.

H. Pursuant to Government Code Section 66499, Builder’s execution of this Agreement and the provision of the security are made in consideration of City’s approval of the final map for Tract Map No. 33824-2.

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RIV #4830-8901-9593 v1 - 2 -

DEFINED TERMS
“Builder” shall mean KB HOME Coastal Inc., a California corporation. The term “Builder” shall also include all assignees, to the extent permitted under this Agreement, of the rights and obligations of Builder under this Agreement, and any successor-in-interest to Builder having a legal and/or equitable interest in the Property.
“Developer” shall mean McSweeny Recovery Acquisition, LLC, a Delaware Limited Liability Company. The term “Developer” shall also include all assignees, to the extent permitted under this Agreement, of the rights and obligations of Developer under this Agreement, and any successor-in-interest to Developer having a legal and/or equitable interest in the Property. “Estimated Costs” shall mean the City Engineer’s approximation of the actual cost to construct the Public Improvements, including the replacement cost for all landscaping. “Litigation Expenses” shall mean all costs and expenses, to the extent reasonable in amount, actually and necessarily incurred by a party in good faith in the prosecution of an action or proceeding, including, but not limited to, court costs, filing, recording, and service fees, copying costs, exhibit production costs, special media rental costs, attorneys’ fees, fees for investigators, witness fees (both lay and expert), travel expenses, deposition and transcript costs and any other cost or expense, the award of which a court of competent jurisdiction may determine to be just and reasonable.
“Map Act” shall mean the Subdivision Map Act, Government Code Sections 66410 et seq. “Property” shall mean all of the real property contained within the boundaries of Tract Map No. 33824-2 located in the City of Hemet, California, as is more particularly described in the legal description and parcel diagram attached hereto and incorporated hereby by reference at Attachment “A”.
“Public Improvements” shall include, but not be limited to, recertification of rough graded pads, finish grade, repair existing streets, curbs and gutters, sidewalks, water systems, sanitary sewers, utilities, and drainage facilities (if any), landscaping, street lights and all other facilities required to be constructed and dedicated to the City or other public entity as conditions of approval of Tentative Tract Map No. 33824-2 and as shown in detail on the plans, and specifications which have been approved by the City and incorporated into Tract Map No. 33824-2. The Parties agree that the Public Improvements to be completed by Builder are more specifically described in the diagram or plan attached hereto and incorporated herein by reference as Attachment “B.

Notwithstanding, Attachment “B”, Builder shall remain obligated to construct and complete all of the Public Improvements required as conditions of approval for Tract Map No. 33824-2, a full copy of which is on file with and may be obtained from the Engineering Department of the City of Hemet.
“Required Insurance” shall mean the insurance required to be maintained by Builder under Section 18.
“Security” shall mean surety bonds in the amounts and under the terms of Section 13 or other security approved by City Engineer or City Attorney.

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RIV #4830-8901-9593 v1 - 3 -
“Tract No 33824-2.” shall mean the final map prepared and approved by the City for tentative tract map no. 33824-2.
“Warranty” shall mean the one year period following completion of the Public Improvements by Builder and the acceptance of the Public Improvements by the City in which Builder warrants and guarantees all Public Improvements.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the parties and contained here and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

1.SUPERSESSION. This Agreement supersedes and replaces the Original Subdivision Improvement Agreement in its entirety. Upon execution of this Agreement by the Builder, the Original Subdivision Improvement Agreement shall be of no further force and effect unless reinstated.

2.EFFECTIVENESS. This Agreement shall not be effective unless and until all four (4) of the following conditions are satisfied in the order provided:

2.1Security. Builder provides City with the Security of the type and in the amounts required by this Agreement;

2.2Final Map and Agreement Approval. The City Council of the City of Hemet (“City Council”) previously approved the final map for Tract Map No. 33824-2 and now approves this Agreement;

2.3Record Agreement. Builder and City execute the Agreement and City records this Agreement in the Recorder’s Office of the County of Riverside; and If the above described conditions are not satisfied in the order, manner and within the time provided under this Agreement, this Agreement shall automatically terminate without need of further action by either City or Builder.

3.PUBLIC IMPROVEMENTS. Builder shall construct or have constructed at its own cost, expense, and liability the Public Improvements, as defined herein, within the time and in the manner required under this Agreement. Construction of the Public Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety. The Builder shall be responsible for the replacement, relocation, or removal of any component of any irrigation water or sewer system in conflict with the construction or installation of the Public Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the City Engineer and the owner of such water or sewer system. Builder further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary or required by City to fully and adequately complete the Public Improvements.

3.1Prior Partial Construction of Public Improvements. Where construction of any Public Improvements has been partially completed prior to this Agreement,

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RIV #4830-8901-9593 v1 - 4 -
Builder agrees to complete such Public Improvements or assure their completion in accordance with this Agreement.

3.2Permits; Notices; Utility Statements. Prior to commencing any work, Builder shall, at its sole cost, expense, and liability, obtain all necessary permits and approvals and give all necessary and incidental notices required for the lawful construction of the Public Improvements and performance of Builder’s obligations under this Agreement. Builder shall conduct the work in full compliance with the regulations, rules, and other requirements contained in any permit or approval issued to Builder. Prior to commencing any work, Builder shall file a written statement with the City Clerk and the City Engineer, signed by Builder and each utility which will provide utility service to the Property, attesting that Builder has made all deposits legally required by the utility for the extension and provision of utility service to the Property.

3.3Pre-approval of Plans and Specifications. Builder is prohibited from commencing work on any Public Improvement until all plans and specifications for such Public Improvement have been submitted to and approved by the City Engineer, or his or her designee.

Approval by the City Engineer shall not relieve Builder from ensuring that all Public Improvements conform with all other requirements and standards set forth in this Agreement.

3.4Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the Public Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements. The Public Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with City, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced.

3.5Standard of Performance. Builder and its contractors, if any, shall perform all work required to construct the Public Improvements under this Agreement in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Builder represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work. Builder warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement.

3.6Alterations to Improvements. All work shall be done and improvements made and completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation of the Public Improvements it is determined that the public interest requires alterations in the Public Improvements, Builder shall undertake such design and construction changes as may be reasonably required by City. Any and all alterations in the plans and specifications and the Public Improvements to be completed may be accomplished without giving prior notice thereof to Builder’s surety for this Agreement.

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4.MAINTENANCE OF PUBLIC IMPROVEMENTS AND LANDSCAPING.

City shall not be responsible or liable for the maintenance or care of the Public Improvements until City formally approves and accepts them in accordance with its policies and procedures.

City shall exercise no control over the Public Improvements until approved and accepted. Any use by any person of the Public Improvements, or any portion thereof, shall be at the sole and exclusive risk of the Builder at all times prior to City’s acceptance of the Public Improvements.

Builder shall maintain all the Public Improvements in a state of good repair until they are completed by Builder and approved and accepted by City, and until the security for the performance of this Agreement is released. Maintenance shall include, but shall not be limited to, repair of pavement, curbs, gutters, sidewalks, signals, parkways, water mains, and sewers; maintaining all landscaping in a vigorous and thriving condition reasonably acceptable to City; removal of debris from sewers and storm drains; and sweeping, repairing, and maintaining in good and safe condition all streets and street improvements. It shall be Builder’s responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by City. If Builder fails to properly prosecute its maintenance obligation under this section, City may do all work necessary for such maintenance and the cost thereof shall be the responsibility of Builder and its surety under this Agreement.

City shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the Public Improvements or their condition prior to acceptance. Notwithstanding the above, Builder’s obligations to maintain pursuant to this Section 4 may be assigned to a homeowner’s association created by Builder until such time as the Public Improvements are approved and accepted by City.

5.CONSTRUCTION SCHEDULE. Unless extended pursuant to this Section 5.1 of this Agreement, Builder shall fully and adequately complete or have completed the Public Improvements within one (1) year (12 months) following the Effective Date of this Agreement.

5.1Extensions. City may, in its sole and absolute discretion, provide Builder with additional time within which to complete the Public Improvements. It is understood that by providing the Security required under Section 13 et seq. of this Agreement, Builder and its surety consent in advance to any extension of time as may be given by City to Builder, and waives any and all right to notice of such extension(s). Builder’s acceptance of an extension of time granted by City shall constitute a waiver by Builder and its surety of all defense of laches, estoppel, statutes of limitations, and other limitations of action in any action or proceeding filed by City following the date on which the Public Improvements were to have been completed hereunder.

In addition, as consideration for granting such extension to Builder, City reserves the right to review the provisions of this Agreement, including, but not limited to, the construction standards, the cost estimates established by City, and the sufficiency of the improvement security provided by Builder, and to require adjustments thereto when warranted according to City’s reasonable discretion.

5.2Accrual of Limitations Period. Any limitations period provided by law related to breach of this Agreement or the terms thereof shall not accrue until Builder has provided the City Engineer with written notice of Builder’s intent to abandon or otherwise not complete required or agreed upon Public Improvements.

5.3 Builder Obligations Do Not Terminate. Notwithstanding the construction schedule and option for extensions provided in Sections 5.1 and 5.2, Builder’s

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failure to complete the Public Improvements or to otherwise satisfy all conditions of approval, or City’s non-extension of the time referenced in those sections shall not terminate or otherwise relieve the Builder of the obligation to complete the Public Improvements and conditions of approval and such obligations shall survive the term of this Agreement and shall survive until satisfied in full unless waived or modified by formal action of the City Council.

6.GRADING. Builder agrees that any and all grading done or to be done in conjunction with construction of the Public Improvements or development of Tract Map No. 33824-2 shall conform to all federal, state, and local laws, ordinances, regulations, and other requirements, including City’s grading regulations. All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. The City Engineer shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding properties. Plans shall include without limitation temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, trash, and refuse, securing the job site to prevent injury, and similar matters.

In order to prevent damage to the Public Improvements by improper drainage or other hazards, the grading shall be completed in accordance with the time schedule for completion of the Public Improvements established by this Agreement, and prior to City’s approval and acceptance of the Public Improvements and release of the Security as set forth in Section 13 et seq. of this Agreement.

7.UTILITIES. Builder shall provide utility services, including water, sewer, power, gas, and telephone service to serve each parcel, lot, or unit of land within Tract Map No. 33824-2 in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the regulations, schedules and fees of the utilities or agencies providing such services. Except for commercial or industrial properties, Builder shall also provide installation of cable television connections to serve each parcel, lot, or unit of land in accordance with all applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the requirements of the cable company possessing a valid franchise with City to provide such service within City’s jurisdictional limits; provided however, Builder shall not be responsible for any end-user payments for cable television services. All utilities shall be installed underground.

8.FEES AND CHARGES. Builder shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of construction of the Public Improvements, including, but not limited to, all plan check, design review, engineering, inspection, and other service fees, and any impact or connection fees established by City ordinance, resolution, regulation, or policy, or as established by City relative to Tract Map No. 33824-2, or as required by other governmental agencies having jurisdiction over Tract Map No. 33824-2.

9.CITY INSPECTION OF PUBLIC IMPROVEMENTS. Builder shall, at its sole cost, expense, and liability, and at all times during construction of the Public Improvements, maintain reasonable and safe facilities and provide safe access for inspection by City of the Public Improvements and areas where construction of the Public Improvements is occurring or will occur. If the City inspector requests it, the Builder at any time before acceptance of the Public Improvements shall remove or uncover such portions of the finished work as may be

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directed which have not previously been inspected. After examination, the Builder shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City shall not be considered as direct control of the individual workmen on the job site. City’s inspector shall have the authority to stop any and all work not in accordance with the requirements contained or referenced in this Agreement. The inspection of the work by City shall not relieve Builder or the contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted.

10.ADMINISTRATIVE COSTS. If Builder fails to construct and install all or any part of the Public Improvements within the time required by this Agreement, or if Builder fails to comply with any other obligation contained herein, Builder and its surety shall be jointly and severally liable to City for all administrative expenses, fees, and costs, including reasonable attorney’s fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law.

11.ACCEPTANCE OF IMPROVEMENTS; AS-BUILT OR RECORD
DRAWINGS. The City Council may, in its sole and absolute discretion, accept fully completed portions of the Public Improvements prior to such time as all of the Public Improvements are complete, which shall not release or modify Builder’s obligation to complete the remainder of the Public Improvements within the time required by this Agreement.

11.1Builder’s Notice of Completion. Upon the total or partial acceptance of the Public Improvements by City, Builder shall file with the Recorder’s Office of the County of Riverside a notice of completion for the accepted Public Improvements in accordance with California Civil Code section 3093, at which time the accepted Public Improvements shall become the sole and exclusive property of City without payment therefor.

11.2City Acceptance of Public Improvements. If Tract Map No. 33824-2 was approved and recorded as a single phase map, City shall not accept any one or more of the improvements until all of the Public Improvements are completed by Builder and approved by City. Issuance by City of occupancy permits for any buildings or structures located on the Property shall not be construed in any manner to constitute City’s acceptance or approval of any Public Improvements.

11.3Builder’s Obligation to Provide As-Built or Record Drawings.

Notwithstanding the foregoing, City may not accept any Public Improvements unless and until Builder provides one (1) set of “as-built” or record drawings or plans to the City Engineer for all such Public Improvements. The drawings shall be certified and shall reflect the condition of the Public Improvements as constructed, with all changes incorporated therein.

12.WARRANTY AND GUARANTEE. Builder hereby warrants and guarantees all Public Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of all landscaping within the Property in a vigorous and thriving condition reasonably acceptable to City, for a period of one (1) year following completion of the work and acceptance by City. During the Warranty, Builder shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the Public Improvements, in accordance with the current ordinances, resolutions, regulations,

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codes, standards, or other requirements of City, and to the approval of the City Engineer. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of Builder and its surety. As to any Public Improvements which have been repaired, replaced, or reconstructed during the Warranty, Builder and its surety hereby agree to extend the Warranty for an additional one (1) year period following City’s acceptance of the repaired, replaced, or reconstructed Public Improvements. Nothing herein shall relieve Builder from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any Public Improvement following expiration of the Warranty or any extension thereof. Builder’s warranty obligation under this section shall survive the expiration or termination of this Agreement.

13.SECURITY; SURETY BONDS. Prior to City’s approval and execution of this Agreement, Builder shall provide City with surety bonds in the amounts and under the terms set forth below. The amount of the Security shall be based on the City Engineer’s Estimated Costs.

If City determines at any time prior to Builder’s completion of the Public Improvements under Section 5 [Construction Schedule], in its sole and absolute discretion, that the Estimated Costs have changed, Builder shall adjust the Security in the amount requested by City. Builder’s compliance with this provision (Section 13 et seq.) shall in no way limit or modify Builder’s indemnification obligation provided in Section 17 of this Agreement.

13.1Performance Bond. To guarantee the faithful performance of the Public Improvements and all the provisions of this Agreement, to protect City if Builder is in default as set forth in Section 19 et seq. of this Agreement, and to secure Builder’s one-year guarantee and warranty of the Public Improvements, including the maintenance of all landscaping in a vigorous and thriving condition, Builder shall provide City a faithful performance bond in the amount of One Million Eight Hundred and Forty-Seven Thousand and Five Hundred Dollars, ($1,847,500), which sum shall be not less than one hundred percent (100%) of the Estimated Costs.

13.2Partial Release. The City Council may, in its sole and absolute discretion and upon recommendation of the City Engineer, partially release a portion or portions of the Security provided under this section as the Public Improvements are accepted by City, provided that Builder is not in default on any provision of this Agreement or condition of approval for Tract Map No. 33824-2, and the total remaining Security is not less than twenty-five percent (25%) of the Estimated Costs. All Security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 12 of this Agreement, provided that Builder is not in default on any provision of this Agreement or condition of approval for Tract Map No. 33824-2.

13.3Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, material men, and other persons furnishing labor, materials, or equipment for performance of the Public Improvements and this Agreement, Builder shall provide City a labor and materials bond in the amount One Million Eight Hundred and Forty- Seven Thousand and Five Hundred Dollars, ($1,847,500) which sum shall not be less than one hundred percent 100%) of the Estimated Costs. The Security provided under this section may be released by written authorization of the City Engineer after six (6) months from the date City accepts the final Public Improvements. The amount of such Security shall be reduced by the total of all stop notice or mechanic’s lien claims of which City is aware, plus an amount

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equal to twenty percent (20%) of such claims for reimbursement of City’s anticipated administrative and legal expenses arising out of such claims.

13.4Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best’s rating of no less than A:VIII, be a bank or insurance company licensed to transact surety business in California, and shall be satisfactory to City. As part of the obligation secured by the Security and in addition to the face amount of the Security, the Builder or its surety shall secure the costs and reasonable expenses and fees, including reasonable attorney’s fees and costs, incurred by City in enforcing the obligations of this Agreement. The Builder and its surety stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the Public Improvements, or the plans and specifications for the Public Improvements shall in any way affect its obligation on the Security.

13.5Form of Security. The evidence of the Security shall be provided on the forms set forth in Attachment “C”, unless other forms are deemed acceptable by the City Engineer and the City Attorney, and when such forms are completed to the satisfaction of City, the forms and evidence of the Security shall be attached hereto as Attachment “C” and incorporated herein by this reference.

13.6Builder’s Liability. While no action of Builder shall be required in order for City to realize on its security under any Security instrument, Builder agrees to cooperate with City to facilitate City’s realization under any Security instrument, and to take no action to prevent City from such realization under any Security instrument. Notwithstanding the giving of any Security instrument or the subsequent expiration of any Security instrument or any failure by any surety or financial institution to perform its obligations with respect thereto, Builder shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute Security as City shall require satisfying the requirements in this Section 13.

14.MONUMENT SECURITY. Prior to City’s execution of this Agreement, to guarantee payment to the engineer or surveyor for the setting of all subdivision boundaries, lot corners, and street centerline monuments for Tract No. 33824-2 in compliance with the applicable provisions of City’s Municipal and/or Development Code (“Subdivision Monuments”), Builder shall deposit cash with City in the amount of Twenty Five Thousand Five Hundred Dollars ($25,500), which sum shall not be less than one hundred percent (100%) of the costs of setting the Subdivision Monuments as determined by the City Engineer. Said cash deposit may be released by written authorization of the City Engineer after all required Subdivision Monuments are accepted by the City Engineer, City has received written acknowledgment of payment in full from the engineer or surveyor who set the Subdivision Monuments, and provided Builder is not in default of any provision of this Agreement or condition of approval for Tract Map No. 33824-2.

15.LIEN. To secure the timely performance of Builder’s obligations under this Agreement, including those obligations for which security has been provided pursuant to Sections 13 et seq. and 14 of this Agreement, Builder hereby creates in favor of City a lien against all portions of the Property not dedicated to City or some other governmental agency for

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a public purpose. As to Builder’s default on those obligations for which security has been provided pursuant to Sections 13 et seq. and 14 of this Agreement, City shall first attempt to collect against such security prior to exercising its rights as a contract lienholder under this section.

16.SIGNS AND ADVERTISING. Builder understands and agrees to City’s ordinances, regulations, and requirements governing signs and advertising structures. Builder hereby agrees with and consents to the summary removal by City, without notice to Builder, of all signs or other advertising structures erected, placed, or situated in violation of any City ordinance, regulation, or other requirement. Removal shall be at the expense of Builder and its surety. Builder and its surety shall indemnify and hold City free and harmless from any claim or demand arising out of or incident to signs, advertising structures, or their removal.

17.INDEMNIFICATION. During the term of this Agreement and the one (1) year warranty period established in Section 12 of this Agreement, Builder shall defend, indemnify, and hold harmless City, its elected officials, officers, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury, to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental body or agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of Builder, its personnel, employees, agents, or contractors in connection with or arising out of construction or maintenance of the Public Improvements, or performance of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, officers, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any claim, demand, cause of action, liability, loss, damage, penalty, fine, or injury, to property or persons, including wrongful death, which is caused solely and exclusively by the gross negligence or willful misconduct of City as determined by a court or administrative body of competent jurisdiction. Builder’s obligation to indemnify City shall survive the expiration or termination of this Agreement for the one (1) year warranty period established in Section 12 of this Agreement, and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, officers, employees, or agents.

18.INSURANCE.

18.1Types; Amounts. Builder shall procure and maintain, and shall require its contractors to procure and maintain, during construction of any Public Improvement pursuant to this Agreement, insurance of the types and in the amounts described below. If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit.

18.1.1General Liability. Builder and its contractors shall procure and maintain occurrence version general liability insurance, or equivalent form, with a combined single limit of not less than $3,000,000 per occurrence for bodily injury, personal injury, and property damage, which can be comprised of primary, excess and/or self-insurance.

18.1.2Business Automobile Liability. Builder and its contractors shall procure and maintain business automobile liability insurance, or equivalent form, with a

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combined single limit of not less than $1,000,000 per occurrence. Such insurance shall include coverage for the ownership (if owned), operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible.

18.1.3Workers’ Compensation. Builder and its contractors shall procure and maintain workers’ compensation insurance with limits as required by the Labor Code of the State of California and employers’ liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees.

18.1.4Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per claim, shall be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance shall be endorsed to include contractual liability.

18.2Deductibles. Any deductibles or self-insured retentions must be declared (as evidenced by the Builder’s 10k filed with the Securities and Exchange Commission) to and approved by City. At the option of City, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) Builder and its contractors shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.

18.3Additional Insured; Separation of Insureds. The Required Insurance shall name City, its elected officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of Builder or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance shall contain standard separation of insured provisions, and shall contain no special limitations on the scope of its protection to City, its elected officials, officers, employees, agents, and volunteers.

18.4Primary Insurance; Waiver of Subrogation. The Required Insurance shall be primary with respect to any insurance or self-insurance programs covering City, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance shall provide that the insurance company waives all right of recovery by way of subrogation against City in connection with any damage or harm covered by such policy.

18.5Certificates; Verification. Builder and its contractors shall furnish City with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by City before work pursuant to this Agreement can begin. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

18.6Term; Cancellation Notice. Builder and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or endorsement which will expire prior to that date. All policies shall be endorsed to provide that

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the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on 30 days’ prior written notice to Builder.

18.7Insurer Rating. Unless approved in writing by City, all Required Insurance shall placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A:VIII.

19.DEFAULT; NOTICE; REMEDIES.

19.1Notice. If Builder neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if City determines there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, City may at any time thereafter declare Builder to be in default or violation of this Agreement and make written demand upon Builder or its surety, or both, to immediately remedy the default or violation. Builder shall commence the work required to remedy the default or violation within thirty (30) days of the written demand from the City. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, City may provide the demand verbally, and Builder shall commence the required work within twenty-four (24) hours thereof.

Immediately upon City’s issuance of the demand to remedy the default, Builder and its surety shall be liable to City for all costs of construction and installation of the Public Improvements and all other administrative costs expenses as provided for in Section 10 of this Agreement.

19.2Failure to Remedy; City Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a substantial completion acceptable to City within a reasonable time designated by the City, City may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of Builder and its surety, without the necessity of giving any further notice to Builder or surety. City’s right to take such actions shall in no way be limited by the fact that Builder or its surety may have constructed any, or none of the required or agreed upon Public Improvements at the time of City’s demand for performance. In the event City elects to complete or arrange for completion of the remaining work and improvements, City may require all work by Builder or its surety to cease in order to allow adequate coordination by City. Notwithstanding the foregoing, if conditions precedent for reversion to acreage can be met and if the interests of City will not be prejudiced thereby, City may also process a reversion to acreage and thereafter recover from Builder or its surety the full cost and expense incurred.

19.3Other Remedies. No action by City pursuant to Section 19 et seq. of this Agreement shall prohibit City from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. City may exercise it rights and remedies independently or cumulatively, and City may pursue inconsistent remedies. City may institute an action for damages, injunctive relief, or specific performance.

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20.GENERAL PROVISIONS.

20.1Authority to Enter Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party.

20.2Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

20.3Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party.

Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to Builder include all personnel, employees, agents, and subcontractors of Builder, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

20.4Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:

CITY:

City of Hemet
Attn: City Manager
445 E. Florida Avenue
Hemet, CA 92543
BUILDER:

KB HOME Coastal Inc., a California Corporation
Attn: Scott Hansen
36310 Inland Valley Drive, Suite 300
Wildomar, CA 92595
Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent provided the original is contemporaneously deposited with United States Postal Service and delivered by regular mail; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S.

Mail.

20.5Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

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20.6Waiver. City’s failure to insist upon strict compliance with any provision of this Agreement or to exercise any right or privilege provided herein, or City’s waiver of any breach of this Agreement, shall not relieve Builder of any of its obligations under this Agreement, whether of the same or similar type. The foregoing shall be true whether City’s actions are intentional or unintentional. Builder agrees to waive, as a defense, counterclaim or set off, any and all defects, irregularities or deficiencies in the authorization, execution or performance of the Public Improvements or this Agreement, as well as the laws, rules, regulations, ordinances or resolutions of City with regards to the authorization, execution or performance of the Public Improvements or this Agreement.

20.7Assignment or Transfer of Agreement. Builder shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without prior written consent of City. Any attempt to do so shall be null and void, and any assignee, hypothecatee, or transferee shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer. Unless specifically stated to the contrary in City’s written consent, any assignment, hypothecation, or transfer shall not release or discharge Builder from any duty or responsibility under this Agreement.

20.8Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation.

20.9No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.

20.10Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

20.11Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Riverside, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Builder expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.

20.12Attorneys’ Fees and Costs. If any arbitration, lawsuit, or other legal action or proceeding is brought by one Party against the other Party in connection with this Agreement or the Property, the prevailing party, whether by final judgment or arbitration award, shall be entitled to and recover from the other party all Litigation Expenses. Any judgment, order, or award entered in such legal action or proceeding shall contain a specific provision providing for the recovery of Litigation Expenses.

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20.13Relationship Between The Parties. The Parties hereby mutually agree that neither this Agreement, any map related to Tract Map No. 33824-2, nor any other related entitlement, permit, or approval issued by City for the Property shall operate to create the relationship of partnership, joint venture, or agency between City and Builder. Builder’s contractors and subcontractors are exclusively and solely under the control and dominion of Builder. Nothing herein shall be deemed to make Builder or its contractors an agent or contractor of City.

20.14Counterparts. This Agreement may be executed in counterpart originals, which taken together, shall constitute one and the same instrument.

20.15Effective Date of Agreement. This Agreement shall not become effective until the date it has been formally approved by the City and executed by the appropriate authorities of City and Builder.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY OF HEMET
By:___________________________
City Manager
ATTEST:
___________________________
City Clerk

APPROVED AS TO FORM
By:_______________________________
City Attorney

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KB HOME COASTAL INC.,
a California corporation
By: By:
_________________________________
Its: ______________________________ Its: ___________________________ NOTE: BUILDER’S SIGNATURES SHALL BE DULY NOTARIZED, AND

APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE

REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR
OTHER RULES OR REGULATIONS APPLICABLE TO BUILDER’S
BUSINESS ENTITY.

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RIV #4830-8901-9593 v1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On __________, ____ before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: ______________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

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RIV #4830-8901-9593 v1

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA

COUNTY OF
On __________, ____ before me, ________________, personally appeared ________________, personally known to me - OR - proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.
__________________________________________
(SIGNATURE OF NOTARY)

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT EXHIBIT “A”

LEGAL DESCRIPTION OF PROPERTY
TRACT NO. 33824-2

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RIV #4830-8901-9593 v1
1 SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT “B”

LIST OF PUBLIC IMPROVEMENTS
TRACT NO. 33824-2
Street Improvements (EA0601-001)
Street Improvements (Revised), Storm Drain Improvements, Street Lights Improvements (EA1412-008)
Sewer and Water Improvements (EA1703-001)

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RIV #4830-8901-9593 v1
1 SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT “C”

SURETY BONDS AND OTHER SECURITY
TRACT NO. 33824-2
As evidence of understanding the provisions contained in this Agreement, and of the Builder’s intent to comply with same, the Builder has submitted the below described security in the amounts required by this Agreement, and has affixed the appropriate signatures thereto:

PERFORMANCE BOND PRINCIPAL AMOUNT: $ 1,847,500
Surety:

Attorney-in-fact:

Address:

MATERIAL AND LABOR BOND PRINCIPAL AMOUNT: $ 1,847,500
Surety:

Attorney-in-fact:

Address:

CASH MONUMENT SECURITY: $ 25,500
Amount deposited per Cash Receipt No. Date:

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RIV #4830-8901-9593 v1 1 SUBDIVISION IMPROVEMENT AGREEMENT BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
TRACT MAP NO. 33824-2 IMPROVEMENTS

FORM OF PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet, California (“City”) and KB HOME Coastal Inc., a California Corporation, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, water system, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Tract Map No. 33824-2 (“Public Improvements”); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated January 24, 2023 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required by the Improvement Agreement to provide a good and sufficient bond for performance of the Improvement Agreement, and to guarantee and warranty the Public Improvements constructed thereunder.

NOW, THEREFORE, Principal and _________________________________ (“Surety”), a corporation organized and existing under the laws of the State of __________, and duly authorized to transact surety business under the laws of the State of California, are held and firmly bound unto City in the sum of One Million Eight Hundred and Forty-Seven Thousand and Five Hundred Dollars, ($1,847,500) said sum being not less than one hundred percent (100%) of the total cost of the Public Improvements as set forth in the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION is such, that if Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, agreements, guarantees, and warranties in the Improvement Agreement and any alteration thereof made as therein provided, to be kept and performed at the time and in the manner therein specified and in all respects according to their intent and meaning, and to indemnify and save harmless City, its officers, employees, and agents, as stipulated in the Improvement Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

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RIV #4830-8901-9593 v1 2 SUBDIVISION IMPROVEMENT AGREEMENT As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

This bond is executed and filed to comply with Section 66499 et seq. of the Government Code of California as security for performance of the Improvement Agreement and security for the one-year guarantee and warranty of the Public Improvements.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _______________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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RIV #4830-8901-9593 v1
1 SUBDIVISION IMPROVEMENT AGREEMENT
BOND NO. ___________________
INITIAL PREMIUM: ___________________

SUBJECT TO RENEWAL

CITY OF HEMET
TRACT MAP 33824-2 IMPROVEMENTS

FORM OF LABOR AND MATERIAL BOND
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS the City of Hemet California (“City”) and KB HOME Coastal Inc., a California Corporation, a California corporation (“Principal”), have executed an agreement for work consisting of, but not limited to, the furnishing all labor, materials, tools, equipment, services, and incidentals for all grading, roads, paving, curbs and gutters, pathways, storm drains, sanitary sewers, utilities, drainage facilities, traffic controls, landscaping, street lights, and all other required facilities for Tract Map No. 33824-2 (“Public Improvements”); WHEREAS, the Public Improvements to be performed by Principal are more particularly set forth in that certain Subdivision Improvement Agreement dated January 24, 2023 (“Improvement Agreement”);
WHEREAS, the Improvement Agreement is hereby referred to and incorporated herein by reference; and
WHEREAS, Principal is required to furnish a bond in connection with the Improvement Agreement providing that if Principal or any of its subcontractors shall fail to pay for any materials, provisions, or other supplies, or terms used in, upon, for, or about the performance of the Public Improvements, or for any work or labor done thereon of any kind, or for amounts due under the provisions of Title 15 (commencing with section 3082) of Part 4 of Division 3 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney’s fee in case suit is brought on the bond.

NOW, THEREFORE, Principal and _________________________ (“Surety”), a corporation organized and existing under the laws of the State of _________________, and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the Public Improvements, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to the Public Improvements to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid excepting the Principal, the sum of One Million Eight Hundred and Forty-Seven Thousand and Five Hundred Dollars, ($1,847,500) said sum being not less than 100% of the total cost of the Public Improvements under the terms of the Improvement Agreement, we bind ourselves, our heirs, executors and administrators, successors and assigns jointly and severally, firmly by these presents.

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RIV #4830-8901-9593 v1
2 SUBDIVISION IMPROVEMENT AGREEMENT
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal, his or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Public Improvements, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 3181, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein.

As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

This bond is executed and filed to comply with Section 66499 et seq. of the California Government Code as security for payment to contractors, subcontractors, and persons furnishing labor, materials, or equipment for construction of the Public Improvements or performance of the Improvement Agreement. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Improvement Agreement, or to any plans, profiles, and specifications related thereto, or to the Public Improvements to be constructed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

IN WITNESS WHEREOF, the seal and signature of the Principal is hereto affixed, and the corporate seal and the name of the Surety is hereto affixed and attested by its duly authorized Attorney-in-Fact at _____________________, this _____ day of _______________, ______.

Principal Surety
By: By:

Its: Managing Member Attorney-In-Fact
(print name) (print name)

7.I

RIV #4830-8901-9593 v1
3 SUBDIVISION IMPROVEMENT AGREEMENT
NOTE: APPROPRIATE NOTARIAL ACKNOWLEDGMENTS OF EXECUTION

BY PRINCIPAL AND SURETY, AND A COPY OF THE POWER OF

ATTORNEY TO LOCAL REPRESENTATIVES OF THE BONDING
COMPANY MUST BE ATTACHED TO THIS BOND.

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20160436391
XInew.1'1i1!Wt!-W5r!I’(.YImil
1?}
10/05/201601:05PMFee:$0.00Page1of19RecordedinOfficialRecordsCountyofRiversidePeterRldanaFlssessor-—CountyC1erk—RecoI-derJ llll RECORDEDATTHEREQUESTOFANDWHENRECORDEDRETURNTO:(DocumentexemptfromrecordingfeespursuanttoCal.Gov.Code§27383)CITYOFHEMETAttn:CityManager445EastFloridaAvenue RAExamHemet, PageDAPCORMiscLongRFD1stPgAdtlPgCertH -/\SIZENCORSMFNIZHG‘T:

SUBDIVISIONIMPROVEMENTAGREEMENTFINALTRACTMAP33824-2
ByandBetween
THECITYOFHEMET,amunicipalcorporation
and
McSweenyRecoveryAcquisition,LLC,aDelawarelimitedliabilitycompany Dated:9522
CC

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Au\;\4z'V2016byandbetw ofHemet,unicipalcorporaticSwenyRecoveryAcquisitionawarelim liabilitycompany SUBDIVISIONIMPROVEMENTAGREEMENTFINALTRACTMAP33824-2
ThisSubdivisionImprovementAgreement(“Agreement”)isenteredintoasofthisLdayof eentheCityam on(“City”)andM ,LLC,aDelited .CityandDeveloperaresometimeshereinafterindividuallyreferredtoas“Party”andhereinaftercollectivelyreferredtoasthe“Parties.”RECITALSA.DeveloperhassubmittedtoCityanapplicationforapprovalofa?naltractmapforrealpropertylocatedwithinCity,alegaldescriptionofwhichisattachedheretoasExhibit“A”.Thetractmapisidenti?edinCityrecordsasTractMapNo.33824-2.On 20_,theCityconditionallyapprovedTractNo.33824-2.B.DeveloperhasnotcompletedalloftheworkormadeallofthePublicImprovementsrequiredbytheSubdivisionMapAct(GovernmentCodesections66410e_tgm),(“MapAct”)theCityOrdinances,theconditionsofapprovalforTractNo.33824-2,orotherordinances,resolutions,orpoliciesofCityrequiringconstructionofimprovementsinconjunctionwiththesubdivisionofland.C.PursuanttoCityOrdinancesandtheapplicableprovisionsoftheMapAct,DeveloperandCityenterintothisAgreementforthetimelyconstructionandcompletionofthePublicImprovementsandthefurnishingofthesecuritytherefor,acceptabletotheCityEngineerandCityAttorney,forTractNo.33824-2.D.CityhasauthoritytoenterintothisSubdivisionlrnprovementAgreementpursuanttoGovernmentCodeSections66499— 66499.10.E.PursuanttoGovernmentCodeSection66499,Developer’sexecutionofthisAgreementandtheprovisionofthesecurityaremadeinconsiderationofCity’sapprovalofthe?nalmapforTractNo.33824-2.DEFINEDTERMS“Developer”shallmeanMcSweenyRecoveryAcquisition,LLC.Theterm“Developer”shallalsoincludeallassignees,totheextentpermittedunderthisAgreement,oftherightsandobligationsofDeveloperunderthisAgreement,andanysuccessor-in-interesttoDeveloperhavingalegaland/orequitableinterestintheProperty.“EstimatedCosts”shallmeantheCityEngineer’sapproximationoftheactualcosttoconstructthePublicImprovements,includingthereplacementcostforalllandscaping.

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itigu“LtionExpenses”shallmeanallcostsandexpenses,totheextentreasonableinamount,actuallyandnecessarilyincurredbyapartyingoodfaithintheprosecutionofanactionorproceeding,including,butnotlimitedto,courtcosts,?ling,recording,andservicefees,copyingcosts,exhibitproductioncosts,specialmediarentalcosts,attorneys’fees,feesforinvestigators,witnessfees(bothlayandexpert),travelexpenses,depositionandtranscriptcostsandanyothercostorexpense,theawardofwhichacourtofcompetentjurisdictionmaydeterminetobejustandreasonable.“MapAct”shallmeantheSubdivisionMapAct,GovernmentCodeSections66410etseq.“Property”shallmeanthealloftherealpropertycontainedwithintheboundariesofTractMapNo.33824-2locatedintheCityofHemet,California,asismoreparticularlydescribedinthelegaldescriptionandtractdiagramattachedheretoandincorporatedherebybyreferenceatAttachment“A”.“PublicImprovements”shallinclude,butnotbelimitedto,allgrading,roads,streets,paving,curbsandgutters,sidewalks,paseos,pathways,trails,sanitarysewers,utilities,stormdrains,detentionandretentionbasinsandotherdrainagefacilities,traf?ccontrols,landscaping,streetlightsandallotherfacilitiesrequiredtobeconstructedanddedicatedtotheCityorotherpublicentityasconditionsofapprovalofTentativeTractMapNo.33824-2andasshownindetailontheplans,andspeci?cationswhichhavebeenapprovedbytheCityandincorporatedintoTractMapNo.33824-2.ThePartiesagreethatthePublicImprovementstobecompletedbyDeveloperaremorespeci?callydescribedinthediagramorplanattachedheretoandincorporatedhereinbyreferenceasAttachment“B.Notwithstanding,Attachment“B”,DevelopershallremainobligatedtoconstructandcompleteallofthePublicImprovementsrequiredasconditionsofapprovalforTentativeTractMap33824-2.“RequiredInsurance”shallmeantheinsurancerequiredtobemaintainedbyDeveloperunderSection17.“Security”shallmeansuretybondsintheamountsandunderthetermsofSection12orothersecurityapprovedbyCityEngineerorCityAttorney.“TractNa33824-2”shallmeanthe?nalmappreparedandapprovedbytheCityforTentativeTractMapNo.33824-2.“Warranty”shallmeantheoneyearperiodfollowingcompletionofthePublicImprovementsbyDeveloperandtheacceptanceofthePublicImprovementsbytheCityinwhichDeveloperwarrantsandguaranteesallPublicImprovements.OPERATIVEPROVISIONSNOW,THEREFORE,inconsiderationofthemutualpromisesandcovenantsmadebythepartiesandcontainedhereandotherconsideration,thevalueandadequacyofwhichareherebyacknowledged,thepartiesagreeasfollows:1.EFFECTIVENESS.ThisAgreementshallnotbeeffectiveunlessanduntilallfour(4)ofthefollowingconditionsaresatis?edintheorderprovided:

RIV#4836—3917-8284V

7.I

FinalMagandAgreementAgproval
RecordAgreement
RecordFinalMag
uctionofPublicImprovements
Permits‘,Notices;UrQStatements
Pre-apgrovalofPlansandSpeci?cations

1.1Security.DeveloperprovidesCitywiththeSecurityofthetypeandintheamountsrequiredbythisAgreement;1.2 .TheCityCounciloftheCity(“CityCouncil”)approvesthe?nalmapforTractNo.33824-2andthisAgreement;1.3 .DeveloperandCityexecutetheAgreementandCityrecordsthisAgreementintheRecorder’sOf?ceoftheCountyofRiverside;and1.4 .Developerrecordsthe?nalmapforTractNo.33824-2intheRecorder’sOf?ceoftheCountyofRiverside.Iftheabovedescribedconditionsarenotsatis?edintheorder,mannerandwithinthetimeprovidedunderthisAgreement,thisAgreementshallautomaticallyterminatewithoutneedoffurtheractionbyeitherCityorDeveloper.2.PUBLICIMPROVEMENTS.Developershallconstructorhaveconstructedatitsowncost,expense,andliabilitythePublicImprovements,asde?nedherein,withinthetimeandinthemannerrequiredunderthisAgreement.ConstructionofthePublicImprovementsshallincludeanytransitionsand/orotherincidentalworkdeemednecessaryfordrainageorpublicsafety.TheDevelopershallberesponsibleforthereplacement,relocation,orremovalofanycomponentofanyirrigationwaterorsewersystemincon?ictwiththeconstructionorinstallationofthePublicImprovements.Suchreplacement,relocation,orremovalshallbeperformedtothecompletesatisfactionoftheCityEngineerandtheownerofsuchwaterorsewersystem.Developerfurtherpromisesandagreestoprovideallequipment,tools,materials,labor,tests,designwork,andengineeringservicesnecessaryorrequiredbyCitytofullyandadequatelycompletethePublicImprovements.2.1PriorPartialConstr .WhereconstructionofanyPublicImprovementshasbeenpartiallycompletedpriortothisAgreement,DeveloperagreestocompletesuchPublicImprovementsorassuretheircompletioninaccordancewiththisAgreement.2.2 .Priortocommencinganywork,Developershall,atitssolecost,expense,andliability,obtainallnecessarypermitsandapprovalsandgiveallnecessaryandincidentalnoticesrequiredforthelawfulconstructionofthePublicImprovementsandperformanceofDeveloper’sobligationsunderthisAgreement.Developershallconducttheworkinfullcompliancewiththeregulations,rules,andotherrequirementscontainedinanypermitorapprovalissuedtoDeveloper.Priortocommencinganywork,Developershall?leawrittenstatementwiththeCityClerkandtheCityEngineer,signedbyDeveloperandeachutilitywhichwillprovideutilityservicetotheProperty,attestingthatDeveloperhasmadealldepositslegallyrequiredbytheutilityfortheextensionandprovisionofutilityservicetotheProperty.2.3 .DeveloperisprohibitedfromcommencingworkonanyPublicImprovementuntilallplansandspeci?cationsforsuchPublicImprovementhavebeensubmittedtoandapprovedbytheCityEngineer,orhisorherdesignee.ApprovalbytheCityEngineershallnotrelieveDeveloperfromensuringthatallPublicImprovementsconformwithallotherrequirementsandstandardssetforthinthisAgreement.

RIV#4836-3917-8284V2 _ -

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QualitvofWork;Comp
Alterationstolmgruvemcnts
OtherObligationsReferencedinConditionsofTentativeMapAggroval

2.4 lianceWithLawsandCodes.Theconstructionplansandspeci?cationsforthePublicImprovementsshallbepreparedinaccordancewithallapplicablefederal,stateandlocallaws,ordinances,regulations,codes,standards,andotherrequirements.ThePublicImprovementsshallbecompletedinaccordancewithallapprovedmaps,plans,speci?cations,standarddrawings,andspecialamendmentstheretoon?lewithCity,aswellasallapplicablefederal,state,andlocallaws,ordinances,regulations,codes,standards,andotherrequirementsapplicableatthetimeworkisactuallycommenced.2.5StandardofPerformang.Developeranditscontractors,ifany,shallperformallworkrequiredtoconstructthePublicImprovementsunderthisAgreementinaskill?ilandworkmanlikemanner,andconsistentwiththestandardsgenerallyrecognizedasbeingemployedbyprofessionalsinthesamedisciplineintheStateofCalifornia.Developerrepresentsandmaintainsthatitoritscontractorsshallbeskilledintheprofessionalcallingnecessarytoperformthework.Developerwarrantsthatallofitsemployeesandcontractorsshallhavesuf?cientskillandexperiencetoperformtheworkassignedtothem,andthattheyshallhavealllicenses,permits,quali?cationsandapprovalsofwhatevernaturethatarelegallyrequiredtoperformthework,andthatsuchlicenses,permits,quali?cationsandapprovalsshallbemaintainedthroughoutthetermofthisAgreement.2.6 .Allworkshallbedoneandimprovementsmadeandcompletedasshownonapprovedplansandspeci?cations,andanysubsequentalterationsthereto.IfduringthecourseofconstructionandinstallationofthePublicImprovementsitisdeterminedthatthepublicinterestrequiresalterationsinthePublicImprovements,DevelopershallundertakesuchdesignandconstructionchangesasmaybereasonablyrequiredbyCity.Anyandallalterationsintheplansandspeci?cationsandthePublicImprovementstobecompletedmaybeaccomplishedwithoutgivingpriornoticethereoftoDeveloper’ssuretyforthisAgreement.2.7.Inadditiontotheforegoing,DevelopershallsatisfyalloftheconditionsofapprovalonthetentativemapfortheProperty.Theconditionsofapprovalwhichhavenotbeensatis?edpriortothedateofthisAgreementareidenti?edonExhibit“D”hereto.3.MAINTENANCEOFPUBLICIMPROVEMENTSANDLANDSCAPING.CityshallnotberesponsibleorliableforthemaintenanceorcareofthePublicImprovementsuntilCityformallyapprovesandacceptstheminaccordancewithitspoliciesandprocedures.CityshallexercisenocontroloverthePublicImprovementsuntilapprovedandaccepted.AnyusebyanypersonofthePublicImprovements,oranyportionthereof,shallbeatthesoleandexclusiveriskoftheDeveloperatalltimespriortoCity’sacceptanceofthePublicImprovements.DevelopershallmaintainallthePublicImprovementsinastateofgoodrepairuntiltheyarecompletedbyDeveloperandapprovedandacceptedbyCity,anduntilthesecurityfortheperformanceofthisAgreementisreleased.Maintenanceshallinclude,butshallnotbelimitedto,repairofpavement,curbs,gutters,sidewalks,signals,parkways,watermains,andsewers;maintainingalllandscapinginavigorousandthrivingconditionreasonablyacceptabletoCity;removalofdebrisfromsewersandstormdrains;andsweeping,repairing,andmaintainingingoodandsafeconditionallstreetsandstreetimprovements.ItshallbeDeveloper’sresponsibilitytoinitiateallmaintenancework,butifitshallfailtodoso,itshallpromptlyperformsuchmaintenanceworkwhennoti?edtodosobyCity.IfDeveloperfailstoproperly RIV#48363917-8284V

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Extensions
Period
prosecuteitsmaintenanceobligationunderthissection,CitymaydoallworknecessaryforsuchmaintenanceandthecostthereofshallbetheresponsibilityofDeveloperanditssuretyunderthisAgreement.CityshallnotberesponsibleorliableforanydamagesorinjuryofanynatureinanywayrelatedtoorcausedbythePublicImprovementsortheirconditionpriortoacceptance.4.CONSTRUCTIONSCHEDULE.UnlessextendedpursuanttothisSection4.1ofthisAgreement,DevelopershallfullyandadequatelycompleteorhavecompletedthePublicImprovementswithinoneyear(12months)followingapprovalofthe?nalmapforTractNo.33824-2.4.1 .City,may,initssoleandabsolutediscretion,provideDeveloperwithadditionaltimewithinwhichtocompletethePublicImprovements.ItisunderstoodthatbyprovidingtheSecurityrequiredunderSection12.0e_ts_eq.ofthisAgreement,DeveloperanditssuretyconsentinadvancetoanyextensionoftimeasmaybegivenbyCitytoDeveloper,andwaivesanyandallrighttonoticeofsuchextension(s).Developer’sacceptanceofanextensionoftimegrantedbyCityshallconstituteawaiverbyDeveloperanditssuretyofalldefenseoflaches,estoppel,statutesoflimitations,andotherlimitationsofactioninanyactionorproceedingfiledbyCityfollowingthedateonwhichthePublicImprovementsweretohavebeencompletedhereunder.Inaddition,asconsiderationforgrantingsuchextensiontoDeveloper,CityreservestherighttoreviewtheprovisionsofthisAgreement,including,butnotlimitedto,theconstructionstandards,thecostestimatesestablishedbyCity,andthesuf?ciencyoftheimprovementsecurityprovidedbyDeveloper,andtorequireadjustmentstheretowhenwarrantedaccordingtoCity’sreasonablediscretion.4.2AccrualofLimitations.AnylimitationsperiodprovidedbylawrelatedtobreachofthisAgreementorthetermsthereofshallnotaccrueuntilDeveloperhasprovidedtheCityEngineerwithwrittennoticeofDeveloper’sintenttoabandonorotherwisenotcompleterequiredoragreeduponPublicImprovements.5.GRADING.DeveloperagreesthatanyandallgradingdoneortobedoneinconjunctionwithconstructionofthePublicImprovementsordevelopmentofTractNo.33824-2shallconformtoallfederal,state,andlocallaws,ordinances,regulations,andotherrequirements,includingCity’sgradingregulations.Allgrading,landscaping,andconstructionactivitiesshallbeperformedinamannertocontrolerosionandprevent?oodingproblems.TheCityEngineershallhavetheauthoritytorequireerosionplanstoprescribereasonablecontrolsonthemethod,manner,andtimeofgrading,landscaping,andconstructionactivitiestopreventnuisancestosurroundingproperties.Plansshallincludewithoutlimitationtemporarydrainageanderosioncontrolrequirements,dustcontrolprocedures,restrictionsontruckandotherconstructiontraf?croutes,noiseabatementprocedures,storageofmaterialsandequipment,removalofgarbage,trash,andrefuse,securingthejobsitetopreventinjury,andsimilarmatters.InordertopreventdamagetothePublicImprovementsbyimproperdrainageorotherhazards,thegradingshallbecompletedinaccordancewiththetimescheduleforcompletionofthePublicImprovementsestablishedbythisAgreement,andpriortoCity’sapprovalandacceptanceofthePublicImprovementsandreleaseoftheSecurityassetforthinSection12.0e_t?g.ofthisAgreement.6.UTILITIES.Developershallprovideutilityservices,includingwater,sewer,power,gas,andtelephoneservicetoserveeachparcel,lot,orunitoflandwithinTractNo.

RIV#4836-3917-8284v2

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DeveloncwsNoticeofCompletion
33824-2inaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,theregulations,schedulesandfeesoftheutilitiesoragenciesprovidingsuchservices.Exceptforcommercialorindustrialproperties,Developershallalsoprovidecabletelevisionfacilitiestoserveeachparcel,lot,orunitoflandinaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,therequirementsofthecablecompanypossessingavalidfranchisewithCitytoprovidesuchservicewithinCity’sjurisdictionallimits.Allutilitiesshallbeinstalledunderground.7.FEESANDCHARGES.Developershall,atitssolecost,expense,andliability,payallfees,charges,andtaxesarisingoutofconstructionofthePublicImprovements,including,butnotlimitedto,allplancheck,designreview,engineering,inspection,andotherservicefees,andanyimpactorconnectionfeesestablishedbyCityordinance,resolution,regulation,orpolicy,orasestablishedbyCityrelativetoTractNo.33824-2,orasrequiredbyothergovernmentalagencieshavingjurisdictionoverTractNo.33824-2.8.CITYINSPECTIONOFPUBLICIMPROVEMENTS.Developershall,atitssolecost,expense,andliability,andatalltimesduringconstructionofthePublicImprovements,maintainreasonableandsafefacilitiesandprovidesafeaccessforinspectionbyCityofthePublicImprovementsandareaswhereconstructionofthePublicImprovementsisoccurringorwilloccur.IftheCityinspectorrequestsit,theDeveloperatanytimebeforeacceptanceofthePublicImprovementsshallremoveoruncoversuchportionsofthe?nishedworkasmaybedirectedwhichhavenotpreviouslybeeninspected.Afterexamination,theDevelopershallrestoresaidportionsoftheworktothestandardsrequiredhereunder.InspectionorsupervisionbytheCityshallnotbeconsideredasdirectcontroloftheindividualworkmenonthejobsite.City’sinspectorshallhavetheauthoritytostopanyandallworknotinaccordancewiththerequirementscontainedorreferencedinthisAgreement.TheinspectionoftheworkbyCityshallnotrelieveDeveloperorthecontractorofanyobligationstoful?llthisAgreementashereinprovided,andunsuitablematerialsorworkmayberejectednotwithstandingthatsuchmaterialsorworkmayhavebeenpreviouslyoverlookedoraccepted.9.ADMINISTRATIVECOSTS.IfDeveloperfailstoconstructandinstallalloranypartofthePublicImprovementswithinthetimerequiredbythisAgreement,orifDeveloperfailstocomplywithanyotherobligationcontainedherein,DeveloperanditssuretyshallbejointlyandseverallyliabletoCityforalladministrativeexpenses,fees,andcosts,includingreasonableattorney’sfeesandcosts,incurredinobtainingcompliancewiththisAgreementorinprocessinganylegalactionorforanyotherremediespermittedbylaw.10.ACCEPTANCEOFIMPROVEMENTS;AS-BUILTORRECORDDRAWINGS.TheCityCouncilmay,initssoleandabsolutediscretion,acceptfullycompletedportionsofthePublicImprovementspriortosuchtimeasallofthePublicImprovementsarecomplete,whichshallnotreleaseormodifyDeveloper’sobligationtocompletetheremainderofthePublicImprovementswithinthetimerequiredbythisAgreement.l0.l .UponthetotalorpartialacceptanceofthePublicImprovementsbyCity,Developershall?lewiththeRecorder’sOf?ceoftheCountyofRiversideanoticeofcompletionfortheacceptedPublicImprovementsinaccordancewithCaliforniaCivilCodesection3093,atwhichtimetheacceptedPublicImprovementsshallbecomethesoleandexclusivepropertyofCitywithoutpaymenttherefor.

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CigAcccgtanceofPubliclmgrovements
Develo1'ger’sObligationtoProvideAs-BuiltorRecordDrawings

10.2 .IfTractNo.33824-2wasapprovedandrecordedasasinglephasemap,CityshallnotacceptanyoneormoreoftheimprovementsuntilallofthePublicImprovementsarecompletedbyDeveloperandapprovedbyCity.IssuancebyCityofoccupancypermitsforanybuildingsorstructureslocatedonthePropertyshallnotbeconstruedinanymannertoconstituteCity’sacceptanceorapprovalofanyPublicImprovements.10.3Notwithstandingtheforegoing,CitymaynotacceptanyPublicImprovementsunlessanduntilDeveloperprovidesone(1)setof“as-built”orrecorddrawingsorplanstotheCityEngineerforallsuchPublicImprovements.Thedrawingsshallbecerti?edandshallre?ecttheconditionofthePublicImprovementsasconstructed,withallchangesincorporatedtherein.11.W ARRANTYANDGUARANTEE.DeveloperherebywarrantsandguaranteesallPublicImprovementsagainstanydefectiveworkorlabordone,ordefectivematerialsfurnishedintheperformanceofthisAgreement,includingthemaintenanceofalllandscapingwithinthePropertyinavigorousandthrivingconditionreasonablyacceptabletoCity,foraperiodofone(1)yearfollowingcompletionoftheworkandacceptancebyCity.DuringtheWarranty,Developershallrepair,replace,orreconstructanydefectiveorotherwiseunsatisfactoryportionofthePublicImprovements,inaccordancewiththecurrentordinances,resolutions,regulations,codes,standards,orotherrequirementsofCity,andtotheapprovaloftheCityEngineer.Allrepairs,replacements,orreconstructionduringtheWarrantyshallbeatthesolecost,expense,andliabilityofDeveloperanditssurety.AstoanyPublicImprovementswhichhavebeenrepaired,replaced,orreconstructedduringtheWarranty,DeveloperanditssuretyherebyagreetoextendtheWarrantyforanadditionalone(1)yearperiodfollowingCity’sacceptanceoftherepaired,replaced,orreconstructedPublicImprovements.NothinghereinshallrelieveDeveloperfromanyotherliabilityitmayhaveunderfederal,state,orlocallawtorepair,replace,orreconstructanyPublicImprovementfollowingexpirationoftheWarrantyoranyextensionthereof.Developer’swarrantyobligationunderthissectionshallsurvivetheexpirationorterminationofthisAgreement.12.SECURITY;SURETYBONDS.PriortoCity’sapprovalandexecutionofthisAgreement,DevelopershallprovideCitywithsuretybondsintheamountsandunderthetermssetforthbelow.TheamountoftheSecurityshallbebasedontheCityEngineer’sEstimatedCosts.IfCitydeterminesatanytimepriortoDeveloper’scompletionofthePublicImprovementsunderSection4[ConstructionSchedule],initssoleandabsolutediscretion,thattheEstimatedCostshavechanged,DevelopershalladjusttheSecurityintheamountrequestedbyCity.Developer’scompliancewiththisprovision(Section12.0gLq.)shallinnowaylimitormodifyDeveloper’sindemni?cationobligationprovidedinSection16.0ofthisAgreement.12.1PerformanceBond.ToguaranteethefaithfulperformanceofthePublicImprovementsandalltheprovisionsofthisAgreement,toprotectCityifDeveloperisindefaultassetforthinSection18.0gts_eg.ofthisAgreement,andtosecureDeveloper’sone-yearguaranteeandwarrantyofthePublicImprovements,includingthemaintenanceofalllandscapinginavigorousandthrivingcondition,DevelopershallprovideCityafaithfulperformancebondintheamountofOneMillionEightHundredandForty-SevenThousandandFiveHundredDollars($1,847,500.00),whichsumshallbenotlessthanonehundredpercent(100%)oftheEstimatedCosts.

RIV#4836-3917-8284v2 - -

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AdditionalReguiremems
FormofSecurig
Develoger’sLiahilig

12.2PartialRelease.TheCityCouncilmay,initssoleandabsolutediscretionanduponrecommendationoftheCityEngineer,partiallyreleaseaportionorportionsoftheSecurityprovidedunderthissectionasthePublicImprovementsareacceptedbyCity,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-2,andthetotalremainingSecurityisnotlessthantwenty-?vepercent(25%)oftheEstimatedCosts.AllSecurityprovidedunderthissectionshallbereleasedattheendoftheWarrantyperiod,oranyextensionthereofasprovidedinSection11.0ofthisAgreement,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-2.12.3Labor&MaterialBy.Tosecurepaymenttothecontractors,subcontractors,laborers,materialmen,andotherpersonsfurnishinglabor,materials,orequipmentforperformanceofthePublicImprovementsandthisAgreement,DevelopershallprovideCityalaborandmaterialsbondintheamountofOneMillionEightHundredandForty-SevenThousandandFiveHundredDollars($1,847,500.00),whichsumshallnotbelessthanonehundredpercent(100%)oftheEstimatedCosts.TheSecurityprovidedunderthissectionmaybereleasedbywrittenauthorizationoftheCityEngineeraftersix(6)monthsfromthedateCityacceptsthe?nalPublicImprovements.TheamountofsuchSecurityshallbereducedbythetotalofallstopnoticeormechanic’slienclaimsofwhichCityisaware,plusanamountequaltotwentypercent(20%)ofsuchclaimsforreimbursementofCity’santicipatedadministrativeandlegalexpensesarisingoutofsuchclaims.12.4 .ThesuretyforanysuretybondsprovidedasSecurityshallhaveacurrentA.M.Best’sratingofnolessthanA:VlIl,beabankorinsurancecompanylicensedtotransactsuretybusinessinCalifornia,andshallbesatisfactorytoCity.AspartoftheobligationsecuredbytheSecurityandinadditiontothefaceamountoftheSecurity,theDeveloperoritssuretyshallsecurethecostsandreasonableexpensesandfees,includingreasonableattomey’sfeesandcosts,incurredbyCityinenforcingtheobligationsofthisAgreement.TheDeveloperanditssuretystipulateandagreethatnochange,extensionoftime,alteration,oradditiontothetermsofthisAgreement,thePublicImprovements,ortheplansandspeci?cationsforthePublicImprovementsshallinanywayaffectitsobligationontheSecurity.12.5 .TheevidenceoftheSecurityshallbeprovidedontheformssetforthinAttachment“C”,unlessotherformsaredeemedacceptablebytheCityEngineerandtheCityAttorney,andwhensuchformsarecompletedtothesatisfactionofCity,theformsandevidenceoftheSecurityshallbeattachedheretoasAttachment“C”andincorporatedhereinbythisreference.12.6 .WhilenoactionofDevelopershallberequiredinorderforCitytorealizeonitssecurityunderanySecurityinstrument,DeveloperagreestocooperatewithCitytofacilitateCity’srealizationunderanySecurityinstrument,andtotakenoactiontopreventCityfromsuchrealizationunderanySecurityinstrument.NotwithstandingthegivingofanySecurityinstrumentorthesubsequentexpirationofanySecurityinstrumentoranyfailurebyanysuretyor?nancialinstitutiontoperformitsobligationswithrespectthereto,DevelopershallbepersonallyliableforperformanceunderthisAgreementandforpaymentofthecostofthelaborandmaterialsfortheimprovementsrequiredtobeconstructedorinstalledherebyandshall,withinten(10)daysafterwrittendemandtherefor,delivertoCitysuchsubstituteSecurityasCityshallrequiresatisfyingtherequirementsinthisSection12.

7.I

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13.MONUMENTSECURITY .PriortoCity’sexecutionofthisAgreement,toguaranteepaymenttotheengineerorsurveyorforthesettingofallsubdivisionboundaries,lotcomers,andstreetcenterlinemonumentsforTractNo.33824-2incompliancewiththeapplicableprovisionsofCity’sMunicipaland/orDevelopmentCode(“SubdivisionMonuments”),DevelopershalldepositcashwithCityintheamountof{TwentyFiveThousandFive-HundredDollars}($25,500),whichsumshallnotbelessthanonehundredpercent(100%)ofthecostsofsettingtheSubdivisionMonumentsasdeterminedbytheCityEngineer.SaidcashdepositmaybereleasedbywrittenauthorizationoftheCityEngineerafterallrequiredSubdivisionMonumentsareacceptedbytheCityEngineer,CityhasreceivedwrittenacknowledgmentofpaymentinfullfromtheengineerorsurveyorwhosettheSubdivisionMonuments,andprovidedDeveloperisnotindefaultofanyprovisionofthisAgreementorconditionofapprovalforTractNo.33824-2.14.LIEN.TosecurethetimelyperformanceofDeveloper’sobligationsunderthisAgreement,includingthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_ts_eq.and13.0ofthisAgreement,DeveloperherebycreatesinfavorofCityalienagainstallportionsofthePropertynotdedicatedtoCityorsomeothergovernmentalagencyforapublicpurpose.AstoDeveloper’sdefaultonthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_t$3.and13.0ofthisAgreement,Cityshall?rstattempttocollectagainstsuchsecuritypriortoexercisingitsrightsasacontractlienholderunderthissection.15.SIGNSANDADVERTISING.DeveloperunderstandsandagreestoCity’sordinances,regulations,andrequirementsgoverningsignsandadvertisingstructures.DeveloperherebyagreeswithandconsentstothesummaryremovalbyCity,withoutnoticetoDeveloper,ofallsignsorotheradvertisingstructureserected,placed,orsituatedinviolationofanyCityordinance,regulation,orotherrequirement.RemovalshallbeattheexpenseofDeveloperanditssurety.DeveloperanditssuretyshallindemnifyandholdCityfreeandharmlessfromanyclaimordemandarisingoutoforincidenttosigns,advertisingstructures,ortheirremoval.16.INDEMNIFICATION.Developershalldefend,indemnify,andholdharmlessCity,itselectedof?cials,of?cers,employees,andagentsfromanyandallactualorallegedclaims,demands,causesofaction,liability,loss,damage,orinjury,topropertyorpersons,includingwrongfuldeath,whetherimposedbyacourtoflaworbyadministrativeactionofanyfederal,state,orlocalgovernmentalbodyoragency,arisingoutoforincidenttoanyacts,omissions,negligence,orwillfulmisconductofDeveloper,itspersonnel,employees,agents,orcontractorsinconnectionwithorarisingoutofconstructionormaintenanceofthePublicImprovements,orperformanceofthisAgreement.Thisindemni?cationincludes,withoutlimitation,thepaymentofallpenalties,?nes,judgments,awards,decrees,attorneys’fees,andrelatedcostsorexpenses,andthereimbursementofCity,itselectedof?cials,of?cers,employees,and/oragentsforalllegalexpensesandcostsincurredbyeachofthem.Thisindemni?cationexcludesonlysuchportionofanyclaim,demand,causeofaction,liability,loss,damage,penalty,?ne,orinjury,topropertyorpersons,includingwrongfuldeath,whichiscausedsolelyandexclusivelybythegrossnegligenceorwillfulmisconductofCityasdeterminedbyacourtoradministrativebodyofcompetentjurisdiction.Developer’sobligationtoindemnifyCityshallsurvivetheexpirationorterminationofthisAgreement,andshallnotberestrictedtoinsuranceproceeds,ifany,receivedbyCity,itselectedof?cials,of?cers,employees,oragents.

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Tmes;Amounts
Deductible:

AdditionalInsured;Separationoflnsureds
PrimaryInsurance;WaiverofSubrogation

17.INSURANCE.17.1 .Developershallprocureandmaintain,andshallrequireitscontractorstoprocureandmaintain,duringconstructionofanyPublicImprovementpursuanttothisAgreement,insuranceofthetypesandintheamountsdescribedbelow.IfanyoftheRequiredInsurancecontainsageneralaggregatelimit,suchinsuranceshallapplyseparatelytothisAgreementorbenolessthantwotimesthespeci?edoccurrencelimit.17.1.1GeneralLiability.Developeranditscontractorsshallprocureandmaintainoccurrenceversiongeneralliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$3,000,000peroccurrenceforbodilyinjury,personalinjury,andpropertydamage.17.1.2BusinessAutomobileLiability.Developeranditscontractorsshallprocureandmaintainbusinessautomobileliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$1,000,000peroccurrence.Suchinsuranceshallincludecoveragefortheownership,operation,maintenance,use,loading,orunloadingofanyvehicleowned,leased,hired,orborrowedbytheinsuredorforwhichtheinsuredisresponsible.17.1.3Workers’Compensation.Developeranditscontractorsshallprocureandmaintainworkers’compensationinsurancewithlimitsasrequiredbytheLaborCodeoftheStateofCaliforniaandemployers’liabilityinsurancewithlimitsofnotlessthan$1,000,000peroccurrence,atalltimesduringwhichinsuredretainsemployees.17.1.4ProfessionalLiability.ForanyconsultantorotherprofessionalwhowillengineerordesignthePublicImprovements,liabilityinsuranceforerrorsandomissionswithlimitsnotlessthan$1,000,000peroccurrence,shallbeprocuredandmaintainedforaperiodof?ve(5)yearsfollowingcompletionofthePublicImprovements.Suchinsuranceshallbeendorsedtoincludecontractualliability.17.2 .Anydeductiblesorself—insuredretentionsmustbedeclaredtoandapprovedbyCity.AttheoptionofCity,either:(a)theinsurershallreduceoreliminatesuchdeductiblesorself—insuredretentionsasrespectsCity,itselectedof?cials,officers,employees,agents,andvolunteers;or(b)Developeranditscontractorsshallprovidea?nancialguaranteesatisfactorytoCityguaranteeingpaymentoflossesandrelatedinvestigationcosts,claims,andadministrativeanddefenseexpenses.17.3 .TheRequiredInsuranceshallnameCity,itselectedof?cials,officers,employees,agents,andvolunteersasadditionalinsuredswithrespecttoworkperformedbyoronbehalfofDeveloperoritscontractors,includingmaterials,parts,orequipmentfumishedinconnectiontherewith.TheRequiredInsuranceshallcontainstandardseparationofinsuredprovisions,andshallcontainnospeciallimitationsonthescopeofitsprotectiontoCity,itselectedof?cials,of?cers,employees,agents,andvolunteers.17.4 .TheRequiredInsuranceshallbeprimarywithrespecttoanyinsuranceorself-insuranceprogramscoveringCity,itselectedof?cials,of?cers,employees,agents,andvolunteers.AllpoliciesfortheRequired RIV#4836-3917-8284V2 - -

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Certificates;Veri?cation
Term;CancellationNotice
L2
FailuretoRemedy;CigAction
InsuranceshallprovidethattheinsurancecompanywaivesallrightofrecoverybywayofsubrogationagainstCityinconnectionwithanydamageorharmcoveredbysuchpolicy.17.5 .Developerandits"contractorsshallfurnishCitywithoriginalcerti?catesofinsuranceandendorsementseffectingcoveragefortheRequiredInsurance.Thecerti?catesandendorsementsforeachinsurancepolicyshallbesignedbyapersonauthorizedbythatinsurertobindcoverageonitsbehalf.Allcerti?catesandendorsementsmustbereceivedandapprovedbyCitybeforeworkpursuanttothisAgreementcanbegin.Cityreservestherighttorequirecomplete,certi?edcopiesofallrequiredinsurancepolicies,atanytime.17.6 .DeveloperanditscontractorsshallmaintaintheRequiredInsuranceforthetermofthisAgreementandshallreplaceanycerti?cate,policy,orendorsementwhichwillexpirepriortothatdate.AllpoliciesshallbeendorsedtoprovidethattheRequiredInsuranceshallnotbesuspended,voided,reduced,canceled,orallowedtoexpireexcepton30days’priorwrittennoticetoCity.17.7Insurer.UnlessapprovedinwritingbyCity,allRequiredInsuranceshallplacedwithinsurerslicensedtodobusinessintheStateofCaliforniaandwithacurrentA.M.BestratingofatleastA:VIII.18.DEFAULT;NOTICE;REMEDIES.18.1Notice.IfDeveloperneglects,I'6?lSCS,orfailsto?il?llortimelycompleteanyobligation,term,orconditionofthisAgreement,orifCitydeterminesthereisaviolationofanyfederal,state,orlocallaw,ordinance,regulation,code,standard,orotherrequirement,CitymayatanytimethereafterdeclareDevelopertobeindefaultorviolationofthisAgreementandmakewrittendemanduponDeveloperoritssurety,orboth,toimmediatelyremedythedefaultorviolation.Developershallcommencetheworkrequiredtoremedythedefaultorviolationwithinten(10)daysofthewrittendemandfromtheCity.Ifthedefaultorviolationconstitutesanimmediatethreattothepublichealth,safety,orwelfare,Citymayprovidethedemandverbally,andDevelopershallcommencetherequiredworkwithintwenty-four(24)hoursthereof.ImmediatelyuponCity’sissuanceofthedemandtoremedythedefault,DeveloperanditssuretyshallbeliabletoCityforallcostsofconstructionandinstallationofthePublicImprovementsandallotheradministrativecostsexpensesasprovidedfo'rinSection9.0ofthisAgreement.18.2 .IftheworkrequiredtoremedythenoticeddefaultorviolationisnotdiligentlyprosecutedtoasubstantialcompletionacceptabletoCitywithinareasonabletimedesignatedbytheCity,Citymaycompleteallremainingwork,arrangeforthecompletionofallremainingwork,and/orconductsuchremedialactivityasinitssoleandabsolutediscretionitbelievesisrequiredtoremedythedefaultorviolation.Allsuchworkorremedialactivityshallbeatthesoleandabsolutecost,expense,andliabilityofDeveloperanditssurety,withoutthenecessityofgivinganyfurthernoticetoDeveloperorsurety.City’srighttotakesuchactionsshallinnowaybelimitedbythefactthatDeveloperoritssuretymayhaveconstructedany,ornoneoftherequiredoragreeduponPublicImprovementsatthetimeofCity’sdemandforperformance.IntheeventCityelectstocompleteorarrangeforcompletionoftheremainingworkandimprovements,Citymayrequire RIV#4836-3917-8284V2 _ _

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AuthoriggtoEnterAgreement
ooperation;FurtherActs
Construction;References:Cagtions
allworkbyDeveloperoritssuretytoceaseinordertoallowadequatecoordinationbyCity.Notwithstandingtheforegoing,ifconditionsprecedentforreversiontoacreagecanbemetandiftheinterestsofCitywillnotbeprejudicedthereby,CitymayalsoprocessareversiontoacreageandthereafterrecoverfromDeveloperoritssuretythefullcostandexpenseincurred.18.3OtherRemedies.NoactionbyCitypursuanttoSection18.0e_t§e_q.ofthisAgreementshallprohibitCityfromexercisinganyotherrightorpursuinganyotherlegalorequitableremedyavailableunderthisAgreementoranyfederal,state,orlocallaw.Citymayexerciseitrightsandremediesindependentlyorcumulatively,andCitymaypursueinconsistentremedies.Citymayinstituteanactionfordamages,injunctiverelief,orspecificperformance.19.GENERALPROVISIONS.19.1 .EachPartywarrantsthattheindividualswhohavesignedthisAgreementhavethelegalpower,right,andauthoritymakethisAgreementandbindeachrespectiveParty.19.2Q .ThePartiesshallfullycooperatewithoneanother,andshalltakeanyadditionalactsorsignanyadditionaldocumentsasmaybenecessary,appropriate,orconvenienttoattainthepurposesofthisAgreement.19.3 .ItbeingagreedthePartiesortheiragentshaveparticipatedinthepreparationofthisAgreement,thelanguageofthisAgreementshallbeconstruedsimply,accordingtoitsfairmeaning,andnotstrictlyfororagainstanyParty.Anytermreferencingtime,days,orperiodforperformanceshallbedeemedcalendardaysandnotworkdays.AllreferencestoDeveloperincludeallpersonnel,employees,agents,andsubcontractorsofDeveloper,exceptasotherwisespeci?edinthisAgreement.AllreferencestoCityincludeitselectedof?cials,of?cers,employees,agents,andvolunteersexceptasotherwisespeci?edinthisAgreement.Thecaptionsofthevariousarticlesandparagraphsareforconvenienceandeaseofreferenceonly,anddonotde?ne,limit,augment,ordescribethescope,content,orintentofthisAgreement.19.4Notices.Allnotices,demands,invoices,andwrittencommunicationsshallbeinwritinganddeliveredtothefollowingaddressesorsuchotheraddressesasthePartiesmaydesignatebywrittennotice:CITY:CityofHemetAttn:AlexanderP.Meyerhoff,CityManager445E.FloridaAvenueHemet,CA92543 RIV

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ment;Modi?cation
n
AssignmentorTransferofAgreement
BindingEffect
:1PargBene?ciaries
DEVELOPER:McSweenyFarmsRecoveryAcquisition,LLCc/oRaintreeInvestmentCorporationAttn:MatthewVillalobos5796ArmadaDrive,Suite375Carlsbad,CA92008Dependinguponthemethodoftransmittal,noticeshallbedeemedreceivedasfollows:byfacsimile,asofthedateandtimesentprovidedtheoriginaliscontemporaneouslydepositedwithUnitedStatesPostalServiceanddeliveredbyregularmail;bymessenger,asofthedatedelivered;andbyU.S.Mail?rstclasspostageprepaid,asof72hoursa?erdepositintheU.S.Mail.19.5Amend. Nosupplement,modi?cation,oramendmentofthisAgreementshallbebindingunlessexecutedinwritingandsignedbybothParties.19.6.City’sfailuretoinsistuponstrictcompliancewithanyprovisionofthisAgreementortoexerciseanyrightorprivilegeprovidedherein,orCity’swaiverofanybreachofthisAgreement,shallnotrelieveDeveloperofanyofitsobligationsunderthisAgreement,whetherofthesameorsimilartype.TheforegoingshallbetruewhetherCity’sactionsareintentionalorunintentional.Developeragreestowaive,asadefense,counterclaimorsetoff,anyandalldefects,irregularitiesorde?cienciesintheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement,aswellasthelaws,rules,regulations,ordinancesorresolutionsofCitywithregardstotheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement.19.7 .Developershallnotassign,hypothecate,ortransfer,eitherdirectlyorbyoperationoflaw,thisAgreementoranyinteresthereinwithoutpriorwrittenconsentofCity.Anyattempttodososhallbenullandvoid,andanyassignee,hypothecatee,ortransfereeshallacquirenorightorinterestbyreasonofsuchattemptedassignment,hypothecation,ortransfer.Unlessspeci?callystatedtothecontraryinCity’swrittenconsent,anyassignment,hypothecation,ortransfershallnotreleaseordischargeDeveloperfromanydutyorresponsibilityunderthisAgreement. ’

19.8 .Eachandallofthecovenantsandconditionsshallbebindingonandshallinuretothebene?toftheParties,andtheirsuccessors,heirs,personalrepresentatives,orassigns.ThissectionshallnotbeconstruedasanauthorizationforanyPartytoassignanyrightorobligation.19.9Q0Thir .Therearenointendedthirdpartybene?ciariesofanyrightorobligationassumedbytheParties.19.10Invalidi.IfanyportionofthisAgreementisdeclaredinvalid,illegal,orotherwiseunenforceablebyacourtofcompetentjurisdiction,theremainingprovisionsshallcontinueinfullforceandeffect.

RIV#4836-3917-8284V2 - _

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andVenue
Attorneys’FeesandCasts
RelationshipBetweenTheParties
Countergarts
DateofAgreement
Alexaner.

19.11ConsenttoJurisdiction.ThisAgreementshallbeconstruedinaccordancewithandgovernedbythelawsoftheStateofCalifornia.AnylegalactionorproceedingbroughttointerpretorenforcethisAgreement,orwhichinanywayarisesoutoftheParties’activitiesundertakenpursuanttothisAgreement,shallbe?ledandprosecutedintheappropriateCaliforniaStateCourtintheCountyofRiverside,California.EachPartywaivesthebene?tofanyprovisionofstateorfederallawprovidingforachangeofvenuetoanyothercourtorjurisdictionincluding,withoutlimitation,achangeofvenuebasedonthefactthatagovernmentalentityisapartytotheactionorproceeding,orthatafederalrightorquestionisinvolvedorallegedtobeinvolvedintheactionorproceeding.Withoutlimitingthegeneralityoftheforegoingwaiver,DeveloperexpresslywaivesanyrighttohavevenuetransferredpursuanttoCaliforniaCodeofCivilProcedureSection394.19.12 .Ifanyarbitration,lawsuit,orotherlegalactionorproceedingisbroughtbyonePartyagainsttheotherPartyinconnectionwiththisAgreementortheProperty,theprevailingparty,whetherby?naljudgmentorarbitrationaward,shallbeentitledtoandrecover?'omtheotherpartyallLitigationExpenses.Anyjudgment,order,orawardenteredinsuchlegalactionorproceedingshallcontainaspeci?cprovisionprovidingfortherecoveryofLitigationExpenses.19.13 .ThePartiesherebymutuallyagreethatneitherthisAgreement,anymaprelatedtoTractNo.33824-2,noranyotherrelatedentitlement,permit,orapprovalissuedbyCityforthePropertyshalloperatetocreatetherelationshipofpartnership,jointventure,oragencybetweenCityandDeveloper.Developer’scontractorsandsubcontractorsareexclusivelyandsolelyunderthecontrolanddominionofDeveloper.NothinghereinshallbedeemedtomakeDeveloperoritscontractorsanagentorcontractorofCity.19.14.ThisAgreementmaybeexecutedincounterpartoriginals,whichtakentogether,shallconstituteoneandthesameinstrument.19.15Effective.ThisAgreementshallnotbecomeeffectiveuntilthedateithasbeenformallyapprovedbytheCityandexecutedbytheappropriateauthoritiesofCityandDeveloper:INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedateandyear?rst-abovewritten. CITYOFHEMET By:PCityManager
RIV#4836-3917-8284V2 - -

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‘(:13AQ3")3/mx/’g,_)Sarah
ai
/I/L/1.é~
’
y‘ v /1 By:Joathan "c arrulhonSignatory
ETITY .

StaleoROGOSACountychar1,
ATTEST:

McComasCityClerk

APPROVEDASTOFORM
BEricS.VCityAttorney
McsweenyFarmsRecoveryAcquisition,LLC
ShumakerIts:AuthorizedSignatoryIts:A
NOTE:DEVELOPER’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATEATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETODEVELOPER’SBUSINESS MARSHAROJASNotaryPublic,fNewYorkNo.01861QualifiedinSuffolkCommissionExpiresOct2017 RIV#4836-3917-8284v2 _ _

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EXHIBIT“A”LEGALDESCRIPTIONOFPROPERTYTRACTNO.33824-2

SUBDIVISIONIMPROVEMENTAGREEMENT

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ZZ
EXHIBIT“B”LISTOFPUBLICIMPROVEMENTSTRACTNO.33824-2
RIV#4836-3917-8284v2 SUBDIVISIONIMPROVEMENTAGREEMENT

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EXHIBIT“C”SURETYBONDSANDOTHERSECURITYTRACTNO.33824-2AsevidenceofunderstandingtheprovisionscontainedinthisAgreement,andoftheDeveloper’sintenttocomplywithsame,theDeveloperhassubmittedthebelowdescribedsecurityintheamountsrequiredbythisAgreement,andhasaf?xedtheappropriatesignaturesthereto:PERFORMANCEBONDPRINCIPALAMOUNT:$1,847,500Surety:Lexon/IronshoreAttorney-in-fact:Address:IronshoreSpecialtyInsuranceCoP.O.Box3407NewYork,NY ,1008 LABOR&MATERIALBONDPRINCIPALAMOUNT:$1,847,500Surety:Lexon/IronshoreAttomey-in-fact:Address:IronshoreSpecialtyInsuranceCo.P.O.Box3407NewYork,NY .1008 CASHMONUMENTSECURITY:$25,500AmountdepositedperCashReceiptNo. Date:
1 SUBDIVISIONIMPROVEMENTAGREEMENT

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City of Hemet
City Council Meeting

STAFF REPORT

Meeting: City Council Meeting - Jan 24 2023
Department: Public Works
Submitted by: Eddie Pust, Interim City Manager
Noah Rau, Public Works Director/City Engineer;

☐ Receive and File ☒ Consent Calendar ☐ Business Item ☐ Public Hearing

TITLE:

A Resolution of the City Council of the City of Hemet, California, Accepting Public Improvements Associated with Parcel Map 35201 (Boardwalk) and Authorizing the City Engineer to Release the Performance and Material and Labor Bonds for these Public Improve ments, Located North of Florida Ave., South of Latham, East of Gilmore Street, and West of Lyon Ave.

RECOMMENDED ACTION:

It is respectfully recommended that the City Council:

Adopt a Resolution of the City Council of the City of Hemet, California, accepting public improvements associated with Parcel Map 35201 (Boardwalk) and authorizing the City Engineer to release the Performance and Material and Labor Bonds for these public improvements, located north of Florida Ave., south of Latham, East of Gilmore Street, and West of Lyon Ave.

BACKGROUND:

Final Parcel Map 35201 was previously approved by the City Council and recorded in June 2007. The Parcel Map provides for the development of commercial retail and associated road and utility improvements located between Florida Ave. and Latham Ave. A subdivision improvement agreement was executed between the City of Hemet and 1950 West Florida, LLC (“Developer”), along with bonds to secure the completion of the required public improvements.

ANALYSIS:

The developer has completed construction of the required improvements for Parcel Map 35201. The public improvements included street improvements within the right -of-way on Latham Ave and Florida Ave. along with sewer and water improvements.

DISCUSSION:

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Public Works Inspection staff inspected the improvements for compliance with the approved plans, adopted conditions of approval, City Standards, and the Municipal Code. All improvements have been completed to the satisfaction of the City Engineer.

PREVIOUS COUNCIL ACTION:

• On June 12, 2007, the City Council approved the Final Parcel Map No. 35201 and associated Subdivision Improvement Agreement and accepted improvement security for associated public improvements

STRATEGIC PLAN INTEGRATION:

GOAL ONE: QUALITY OF LIFE:

To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.

Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.

GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.

Objective 1: Operate in a financially sustainable manner.

Objective 2: Evaluate existing practices to ensure continuity with industry best practices.

FISCAL IMPACT:

The Public Works/Engineering Department will continue maintaining the public improvements associated with Final Parcel Map No. 35201.

ALTERNATIVE(S):

1. Do not authorize the City Engineer to release the improvement bonds

2. Provide additional direction to City Staff.

REVIEWED BY LEGAL:

☒ Staff report ☒ Resolution
☐ Ordinance ☐ Agreement

ATTACHMENT(S):

Attachment 1 - Resolution bond release PM 35201
Attachment 2 - PM 35201
Attachment 3 - PM35201 SIA
Attachment 4 - PM35201 Bonds

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City Council Resolution No. 2023-xxx

1 2
3 4CITY OF HEMET
5Hemet, California
6RESOLUTION NO. 2023-XX
7 8A RESOLUTION OF THE CITY COUNCIL OF THE CITY
9OF HEMET, CALIFORNIA, ACCEPTING PUBLIC
10IMPROVEMENTS ASSOCIATED WITH PARCEL MAP
1135201 (BOARDWALK) AND AUTHORIZING THE CITY
12ENGINEER TO RELEASE THE PERFORMANCE AND
13MATERIAL AND LABOR BONDS FOR THESE PUBLIC
14IMPROVEMENTS, LOCATED NORTH OF FLORIDA AVE.,
15SOUTH OF LATHAM AVE., EAST OF GILMORE STREET,
16AND WEST OF LYON AVE.
17 18WHEREAS, Parcel Map No. 35201 was approved by the City Council on June 1912, 2007; and
20WHEREAS, to meet the requirements established as a prerequisite to final 21approval of Parcel Map No. 35201, 1950 West Florida, LLC, a California Limited Liability 22Company, agreed to enter into a Subdivision Improvement Agreement (SIA), along with 23good and sufficient security, in conformance with the City Attorney’s approved format, 24for approval by the City Council; and
25WHEREAS, the public improvements associated with the approval of Parcel Map 26No. 35201 have been completed to the satisfaction of the City Engineer; and 27WHEREAS, staff recommends that the City Council formally accept the public 28improvements associated with Parcel Map No. 35201 and authorize the City Engineer 29to release the Performance and Labor and Material bonds associated with Parcel Map 30No. 35201
31 32NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 33OF HEMET AS FOLLOWS:
34 351. The foregoing recitals are true and correct.

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City Council Resolution No. 2023-xxx

12. The City Council hereby approves this Resolution accepting the public 2improvements and authorizing the City Engineer to release the Performance 3and Labor and Material bonds associated with Parcel Map No. 35201 4 5PASSED, APPROVED AND ADOPTED this 24 th day of January, 2023. 6 7
8 9
10 11
12 13 Joe Males, Mayor
14 15
16 17
18ATTEST:
19 20
21 22John Paul Maier, City Clerk
23 24
25

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City Council Resolution No. 2023-xxx

1State of California )
2County of Riverside )
3City of Hemet )
4 5
6I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the 7foregoing resolution was adopted by the Hemet City Council on the 24 th of January 2023 8and was passed by the following vote:
9 10AYES: Council Members:
11NOES: Council Member:
12ABSTAIN: Council Member:
13ABSENT: Council Member:
14 15
16 17
18John Paul Maier, City Clerk
19

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RECOMMENDATION:

R0
AGENDA# StaReort
‘TO:HonorableMayorandMembersoftheCityCouncilFROMMikeGow,PublicWorksDirector/CityEngineer;JohnDavidson,CityManagerDATE:June12,2007REParcelMapNo.35201“TheBoardwalk”CommercialSubdivision—1950WFlorida,LLCNorthsideofFloridaAvenue,betweenGilmoreStreetandLyonAvenue StaffrespectfullyrecommendsthattheCityCouncilapproveParcelMapNo.35201,authorizetheCityManagertosignthestandardSubdivisionAgreement,andauthorizetheCityClerktoprocesstheagreementandmapforrecordationwiththeRiversideCountyRecorder’sOffice.BACKGUND:TheabovesubjectmaphasbeenapprovedbytheCity’sPrincipalEngineerandmyself.Thismapcontainseight(8)lotsonapproximately8.26acresANALYSIS:lhavereviewedandthePrincipalEngineerhassignedthefinalmap,theconditionsofapprovaltothetentativemaphavebeenfulfilled,andsecuritieshavebeenpostedwiththeEngineeringDivision.FISCALIMPACT:None.

Respectfullysubmitted,
JorgegronPrincipalEngineer
Encl.ParcelMapNo.35201

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M952I/
FORMEETING5’CITYCOUN
AGl;—?DACATEGORY:

ATTACHMENTS:
2 Contract/Agreement*Doc ignedbyallparties?Ordinance*DocumentE-m CityClerk’soffice? e*DateofPublic[7 uncilCopies:*M
1)
SPECIALINSTRUCTIONSFORCITYCLERK’SOFFICE:

Z
AGENDATEM-PROCESSNGFORMDATE:06-12-07CILRDA HOUSINGCityMgr.

SubmittedBy:JORGEBIAGIONIExt:2362FollowupwithStaffMember: Ext:(CheckOne), PublicHearingConsentCalendarWorkStudyDepartmentsPresentation Resolution*DocumentE-mailedtoCityClerk’sof?ce?YESorNOuments YESorNOailedto YESorNO(SummaryE-mailedtoCityClerk’sof?cefor*Publication?)YESorNOPublicHearingNotication__OriginalMapandCo apNo.35201(ListTitleCo.andphone#)Other—besuretoindicateifyoudonothavethedocumentsyet,soitemis?agged(ListSTEW ARTTITLEOFCALIFORNIA-RebeccaTanner-(951)276-2700 RecordDocumentwithCounty(Allsignature’snotarized?)YESorNOObtainSignaturesof:CITYMANAGER-CITYCLERK-CITYATTORNEYJInter-of?ceExecutedCopiesto:JORGEBIAGIONIMailExecutedCopiestoCerti?edCopytoOther withSTAFFREPORT

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IIVIP
RECORDEDATTHEREQUESTOFANDWHENRECORDEDRETURNTO:(DocumentexemptfromrecordingfeespursuanttoCal.Gov.Code§27383)CITYOFHEMETAttn:CityManager445EastFloridaAvenueHemet,California92543 THISSPACEFORRECORDER’SUSEONLY SUBDIVISIONROVEMENTAGREEMENTPARCELMAPNo.35201
ByandBetween
THECITYOFHEMET,amunicipalcorporation
and
1950WESTFLOA,LLC,aCaliforniaLimitedLiabilityCompany
Dated:May8,2007
#4837-5047-1680V

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SUBDIVISIONIMPROVEMENTAGREEMENTPARCELMAPNo.35201
ThisSubdivisionImprovementAgreement(“Agreement”)isenteredintoasofthis8thdayofMay,2007byandbetweentheCityofHemet_,amunicipalcorporation(“City”)and1950WestFloridaLLC,aCaliforniaLimitedLiabilityCompany.CityandDeveloperaresometimeshereinafterindividuallyreferredtoas“Party”andhereinaftercollectivelyreferredtoasthe“Parties.” RECITALSA.DeveloperhassubmittedtoCityanapplicationforapprovalofaParcelMapforrealpropertylocatedwithinCity,alegaldescriptionofwhichisattachedheretoasExhibit“A”.TheparcelmapisidentifiedinCityrecordsasParcelMapNo.35201.OnFebruary20,2007,theCityconditionallyapprovedTentativeParcelMapNo.35201.B.DeveloperhasnotcompletedalloftheworkormadeallofthePublicImprovementsrequiredbytheSubdivisionMapAct(GovernmentCodesections66410gse_q.),(“MapAct”)theCityOrdinances,theconditionsofapprovalforParcelMapNo.35201,orotherordinances,resolutions,orpoliciesofCityrequiringconstructionofimprovementsinconjunctionwiththesubdivisionofland.C.PursuanttoCityOrdinancesandtheapplicableprovisionsoftheMapAct,DeveloperandCityenterintothisAgreementforthetimelyconstructionandcompletionofthePublicImprovementsandthefurnishingofthesecuritytherefor,acceptabletotheCityEngineerandCityAttorney,forParcelMapNo.v3520l.D.CityhasauthoritytoenterintothisSubdivisionImprovementAgreementpursuanttoGovernmentCodeSections66499— 66499.10.E.PursuanttoGovernmentCodeSection66499,Developer’sexecutionofthisAgreementandtheprovisionofthesecurityaremadeinconsiderationofCity’sapprovalofthe?nalmapforParcelMapNo.35201.DEFINEDTERMS“Developer”shallmean1950WestFloridaLLC,aCaliforniaLimitedLiabilityCompany.Theterm“Developer”shallalsoincludeallassignees,totheextentpermittedunderthisAgreement,oftherightsandobligationsofDeveloperunderthisAgreement,andanysuccessor-in-interesttoDeveloperhavingalegaland/orequitableinterestintheProperty.“EstimatedCosts”shallmeantheCityEngineer’sapproximationoftheactualcosttoconstructthePublicImprovements,includingthereplacementcostforalllandscaping.

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“LitigationExpenses”shallmeanallcostsandexpenses,totheextentreasonableinamount,actuallyandnecessarilyincurredbyapartyingoodfaithintheprosecutionofanactionorproceeding,including,butnotlimitedto,courtcosts,?ling,recording,andservicefees,copyingcosts,exhibitproductioncosts,specialmediarentalcosts,attorneys’fees,feesforinvestigators,witnessfees(bothlayandexpert),travelexpenses,depositionandtranscriptcostsandanyothercostorexpense,theawardofwhichacourtofcompetentjurisdictionmaydeterminetobejustandreasonable.“MapAct”shallmeantheSubdivisionMapAct,GovernmentCodeSections66410etseq.“Property”shallmeanthealloftherealpropertycontainedwithintheboundariesofParcelMapNo.35201locatedintheCityofHemet,California,asismoreparticularlydescribedinthelegaldescriptionandparcelmapdiagramattachedheretoandincorporatedherebybyreferenceatAttachment“A”.“PublicImprovements”shallinclude,butnotbelimitedto,allgrading,roads,streets,paving,curbsandgutters,sidewalks,paseos,pathways,trails,sanitarysewers,utilities,stormdrains,detentionandretentionbasinsandotherdrainagefacilities,traf?ccontrols,landscaping,streetlightsandallotherfacilitiesrequiredtobeconstructedanddedicatedtotheCityorotherpublicentityasconditionsofapprovalofTentativeParcelMapNo.35201andasshownindetailontheplans,andspeci?cationswhichhavebeenapprovedbytheCityandincorporatedintoParcelMapNo.35201.ThePartiesagreethatthePublicImprovementstobecompletedbyDeveloperaremorespecificallydescribedinthediagramorplanattachedheretoandincorporatedhereinbyreferenceasAttachment“B.Notwithstanding,Attachment“B”,DevelopershallremainobligatedtoconstructandcompleteallofthePublicImprovementsrequiredasconditionsofapprovalforTentativeParcelMap35201.“RequiredInsurance”shallmeantheinsurancerequiredtobemaintainedbyDeveloperunderSection17.“Security”shallmeansuretybondsintheamountsandunderthetermsofSection12orothersecurityapprovedbyCityEngineerorCityAttorney.“ParcelMapNo35201.”shallmeanthemappreparedandapprovedbytheCityfortentativeParcelMapNo.35201.“Warranty”shallmeantheoneyearperiodfollowingcompletionofthePublicImprovementsbyDeveloperandtheacceptanceofthePublicImprovementsbytheCityinwhichDeveloper‘warrantsandguaranteesallPublicImprovements.OPERATIVEPROVISIONSNOW,THEREFORE,inconsiderationofthemutualpromisesandcovenantsmadebythepartiesandcontainedhereandotherconsideration,thevalueandadequacyofwhichareherebyacknowledged,thepartiesagreeasfollows:1.EFFECTIVENESS.ThisAgreementshallnotbeeffectiveunlessanduntilallfour(4)ofthefollowingconditionsaresatisfiedintheorderprovided:

RIV#4837-5047-1680V2 _ _

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ParcelMapandAgreementAggroval
RecordAgreement
RecordParcelMag
PriorPartialConstructionofPublicImprovements
Permits;Notices;UtilityStatements
Pre-anprovalofPlansandSpecifications

1.1Security.DeveloperprovidesCitywiththeSecurityofthetypeandintheamountsrequiredbythisAgreement;1.2 .TheCityCounciloftheCity(“CityCouncil”)approvesthemapforParcelMapNo.35201andthisAgreement;1.3 .DeveloperandCityexecutetheAgreementandCityrecordsthisAgreementintheRecorder’sOf?ceoftheCountyofRiverside;and1.4 .DeveloperrecordsthemapforParcelMapNo.35201intheRecorder’sOf?ceoftheCountyofRiverside.Iftheabovedescribedconditionsarenotsatis?edintheorder,mannerandwithinthetimeprovidedunderthisAgreement,thisAgreementshallautomaticallyterminatewithoutneedoffurtheractionbyeitherCityorDeveloper.2.PUBLICIMPROVEMENTS.Developershallconstructorhaveconstructedatitsowncost,expense,andliabilitythePublicImprovements,asde?nedherein,withinthetimeandinthemannerrequiredunderthisAgreement.ConstructionofthePublicImprovementsshallincludeanytransitionsand/orotherincidentalworkdeemednecessaryfordrainageorpublicsafety.TheDevelopershallberesponsibleforthereplacement,relocation,orremovalofanycomponentofanyirrigationwaterorsewersystemincon?ictwiththeconstructionorinstallationofthePublicImprovements.Suchreplacement,relocation,orremovalshallbeperformedtothecompletesatisfactionoftheCityEngineerandtheownerofsuchwaterorsewersystem.Developerfurtherpromisesandagreestoprovideallequipment,tools,materials,labor,tests,designwork,andengineeringservicesnecessaryorrequiredby‘Cityto?lllyandadequatelycompletethePublicImprovements.2.1 .WhereconstructionofanyPublicImprovementshasbeenpartiallycompletedpriortothisAgreement,DeveloperagreestocompletesuchPublicImprovementsorassuretheircompletioninaccordancewiththisAgreement.2.2 .Priortocommencinganywork,Developershall,atitssolecost,expense,andliability,obtainallnecessarypermitsandapprovalsandgiveallnecessaryandincidentalnoticesrequiredforthelawfulconstructionofthePublicImprovementsandperformanceofDeveloper’sobligationsunderthisAgreement.Developershallconducttheworkin?illcompliancewiththeregulations,rules,andotherrequirementscontainedinanypermitorapprovalissuedtoDeveloper.Priortocommencinganywork,Developershall?leawrittenstatementwiththeCityClerkandtheCityEngineer,signedbyDeveloperandeachutilitywhichwillprovideutilityservicetotheProperty,attestingthatDeveloperhasmadealldepositslegallyrequiredbytheutilityfortheextensionandprovisionofutilityservicetotheProperty.2.3 .DeveloperisprohibitedfromcommencingworkonanyPublicImprovementuntilallplansandspeci?cationsforsuchPublicImprovementhavebeensubmittedtoandapprovedbytheCityEngineer,orhisorherdesignee.ApprovalbytheCityEngineershallnotrelieveDeveloperfromensuringthatallPublicImprovementsconformwithallotherrequirementsandstandardssetforthinthisAgreement.#4837-5047-1680V2 _ _

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QualigofWork;ComplianceWithLawsandCodes
StandardofPerformance
AlterationstoImgrovements
OtherObligationsReferencedinConditionsofTentativeMagAgproval

2.4 .Theconstructionplansandspeci?cationsforthePublicImprovementsshallbepreparedinaccordancewithallapplicablefederal,stateandlocallaws,ordinances,regulations,codes,standards,andotherrequirements.ThePublicImprovementsshallbecompletedinaccordancewithallapprovedmaps,plans,speci?cations,standarddrawings,andspecialamendmentstheretoon?lewithCity,aswellasallapplicablefederal,state,andlocallaws,ordinances,regulations,codes,standards,andotherrequirementsapplicableatthetimeworkisactuallycommenced.2.5 .Developeranditscontractors,ifany,shallperformallworkrequiredtoconstructthePublicImprovementsunderthisAgreementinaskillfulandworkmanlikemanner,andconsistentwiththestandardsgenerallyrecognizedasbeingemployedbyprofessionalsinthesamedisciplineintheStateofCalifornia.Developerrepresentsandmaintainsthatitoritscontractorsshallbeskilledintheprofessionalcallingnecessarytoperformthework.Developerwarrantsthatallofitsemployeesandcontractorsshallhavesuf?cientskillandexperiencetoperformtheworkassignedtothem,andthattheyshallhavealllicenses,permits,quali?cationsandapprovalsofwhatevernaturethatarelegallyrequiredtoperformthework,andthatsuchlicenses,permits,quali?cationsandapprovalsshallbemaintainedthroughoutthetermofthisAgreement.2.6 .Allworkshallbedoneandimprovementsmadeandcompletedasshownonapprovedplansandspeci?cations,andanysubsequentalterationsthereto.IfduringthecourseofconstructionandinstallationofthePublicImprovementsitisdeterminedthatthepublicinterestrequiresalterationsinthePublicImprovements,DevelopershallundertakesuchdesignandconstructionchangesasmaybereasonablyrequiredbyCity.Anyandallalterationsintheplansandspeci?cationsandthePublicImprovementstobecompletedmaybeaccomplishedwithoutgivingpriornoticethereoftoDeveloper’ssuretyforthisAgreement.2.7.Inadditiontotheforegoing,DevelopershallsatisfyalloftheconditionsofapprovalonthetentativemapfortheProperty.Theconditionsofapprovalwhichhavenotbeensatis?edpriortothedateofthisAgreementareidenti?edonExhibit“D”hereto.3.MAINTENANCEOFPUBLICIMPROVEMENTSANDLANDSCAPING.CityshallnotberesponsibleorliableforthemaintenanceorcareofthePublicImprovementsuntilCityformallyapprovesandacceptstheminaccordancewithitspoliciesandprocedures.CityshallexercisenocontroloverthePublicImprovementsuntilapprovedandaccepted.AnyusebyanypersonofthePublicImprovements,oranyportionthereof,shallbeatthesoleandexclusiveriskoftheDeveloperatalltimespriortoCity’sacceptanceofthePublicImprovements.DevelopershallmaintainallthePublicImprovementsinastateofgoodrepairuntiltheyarecompletedbyDeveloperandapprovedandacceptedbyCity,anduntilthesecurityfortheperformanceofthisAgreementisreleased.Maintenanceshallinclude,butshallnotbelimitedto,repairofpavement,curbs,gutters,sidewalks,signals,parkways,watermains,andsewers;maintainingalllandscapinginavigorousandthrivingconditionreasonablyacceptabletoCity;removalofdebrisfromsewersandstormdrains;andsweeping,repairing,andmaintainingingoodandsafeconditionallstreetsandstreetimprovements.ItshallbeDeveloper’sresponsibilitytoinitiateallmaintenancework,butifitshallfailtodoso,itshallpromptlyperformsuchmaintenanceworkwhennoti?edtodosobyCity.IfDeveloperfailstoproperly v2

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Extensions
Period
prosecuteitsmaintenanceobligationunderthissection,CitymaydoallworknecessaryforsuchmaintenanceandthecostthereofshallbetheresponsibilityofDeveloperanditssuretyunderthisAgreement.CityshallnotberesponsibleorliableforanydamagesorinjuryofanynatureinanywayrelatedtoorcausedbythePublicImprovementsortheirconditionpriortoacceptance.4.CONSTRUCTIONSCHEDULE.UnlessextendedpursuanttothisSection4.1ofthisAgreement,DevelopershallfullyandadequatelycompleteorhavecompletedthePublicImprovementswithinoneyear(12months)followingapprovalofthemapforParcelMapNo.35201.4.1 .Citymay,initssoleandabsolutediscretion,provideDeveloperwithadditionaltimewithinwhichtocompletethePublicImprovements.ItisunderstoodthatbyprovidingtheSecurityrequiredunderSection12.0e_ts_eg.ofthisAgreement,DeveloperanditssuretyconsentinadvancetoanyextensionoftimeasmaybegivenbyCitytoDeveloper,andwaivesanyandallright,tonoticeofsuche'xtension(s).Developer’sacceptanceofanextensionoftimegrantedbyCityshallconstituteawaiverbyDeveloperanditssuretyofalldefenseoflaches,estoppel,statutesoflimitations,andotherlimitationsofactioninanyactionorproceeding?ledbyCityfollowingthedateonwhichthePublicImprovementsweretohavebeencompletedhereunder.Inaddition,asconsiderationforgrantingsuchextensiontoDeveloper,CityreservestherighttoreviewtheprovisionsofthisAgreement,including,butnotlimitedto,theconstructionstandards,thecostestimatesestablishedbyCity,andthesuf?ciencyoftheimprovementsecurityprovidedbyDeveloper,andtorequireadjustmentstheretowhenwarrantedaccordingtoCity’sreasonablediscretion.4.2AccrualofLimitations.AnylimitationsperiodprovidedbylawrelatedtobreachofthisAgreementorthetermsthereofshallnotaccrueuntilDeveloperhasprovidedtheCityEngineerwithwrittennoticeofDeveloper’sintenttoabandonorotherwisenotcompleterequiredoragreeduponPublicImprovements.5.GRADING.DeveloperagreesthatanyandallgradingdoneortobedoneinconjunctionwithconstructionofthePublicImprovementsordevelopmentofParcelMapNo.35201shallconformtoallfederal,state,andlocallaws,ordinances,regulations,andotherrequirements,includingCity’sgradingregulations.Allgrading,landscaping,andconstructionactivitiesshallbeperformedinamannertocontrolerosionandprevent?oodingproblems.TheCityEngineershallhavetheauthoritytorequireerosionplanstoprescribereasonablecontrolsonthemethod,manner,andtimeofgrading,landscaping,andconstructionactivitiestopreventnuisancestosurroundingproperties.Plansshallincludewithoutlimitationtemporarydrainageanderosioncontrolrequirements,dustcontrolprocedures,restrictionsontruckandotherconstructiontraf?croutes,noiseabatementprocedures,storageofmaterialsandequipment,removalofgarbage,trash,andrefuse,securingthejobsitetopreventinjury,andsimilarmatters.InordertopreventdamagetothePublicImprovementsbyimproperdrainageorotherhazards,thegradingshallbecompletedinaccordancewiththetimescheduleforcompletionofthePublicImprovementsestablishedbythisAgreement,andpriortoCity’sapprovalandacceptanceofthePublicImprovementsandreleaseoftheSecurityassetforthinSection12.0gtseq.ofthisAgreement.6.UTILITIES.Developershallprovideutilityservices,includingwater,sewer,power,gas,andtelephoneservicetoserveeachparcel,lot,orunitoflandwithinParcelMapNo.

RIV#4837-5047-1680V2

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requirementoftheablecmpan singavalidfranchwithCitytopwithinCity’jurisditionalimits. itiesshallbeinstalunderground. ovided,and tab]matgrialsorw ecteworkmayh eenreviouslyover] ted.

Developer’sNoticeofComgletion
35201inaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,theregulations,schedulesandfeesoftheutilitiesoragenciesprovidingsuchservices.Exceptforcommercialorindustrialproperties,Developershallalsoprovidecabletelevisionfacilitiestoserveeachparcel,lot,orunitoflandinaccordancewithallapplicablefederal,state,andlocallaws,rules,andregulations,including,butnotlimitedto,thes c o ypossesise rovidesuchservices c 1 Allutil led7.FEESANDCHARGES.Developershall,atitssolecost,expense,andliability,payallfees,charges,andtaxesarisingoutofconstructionofthePublicImprovements,including,butnotlimitedto,allplancheck,designreview,engineering,inspection,andotherservicefees,andanyimpactorconnectionfeesestablishedbyCityordinance,resolution,regulation,orpolicy,orasestablishedbyCityrelativetoParcelMapNo.35201,orasrequiredbyothergovernmentalagencieshavingjurisdictionoverParcelMapNo.35201.8.CITYINSPECTIONOFPUBLICIMPROVEMENTS.Developershall,atitssolecost,expense,andliability,andatalltimesduringconstructionofthePublicImprovements,maintainreasonableandsafefacilitiesandprovidesafeaccessforinspectionbyCityofthePublicImprovementsandareaswhereconstructionofthePublicImprovementsisoccurringorwilloccur.IftheCityinspectorrequestsit,theDeveloperatanytimebeforeacceptanceofthePublicImprovementsshallremoveoruncoversuchportionsofthe?nishedworkasmaybedirectedwhichhavenotpreviouslybeeninspected.Afterexamination,theDevelopershallrestoresaidportionsoftheworktothestandardsrequiredhereunder.InspectionorsupervisionbytheCityshallnotbeconsideredasdirectcontroloftheindividualworkmenonthejobsite.City’sinspectorshallhavetheauthoritytostopanyandallworknotinaccordancewiththerequirementscontainedorreferencedinthisAgreement.TheinspectionoftheworkbyCityshallnotrelieveDeveloperorthecontractorofanyobligationstoful?llthisAgreementashereinpr unsuie orkmayberejdnotwithstandingthatsuchmaterialsor avebp ookedoraccep S

9.ADMINISTRATIVECOSTS.IfDeveloperfailstoconstructandinstallalloranypartofthePublicImprovementswithinthetimerequiredbythisAgreement,orifDeveloperfailstocomplywithanyotherobligationcontainedherein,DeveloperanditssuretyshallbejointlyandseverallyliabletoCityforalladministrativeexpenses,fees,andcosts,includingreasonableattomey’sfeesandcosts,incurredinobtainingcompliancewiththisAgreementorinprocessinganylegalactionorforanyotherremediespermittedbylaw.10.ACCEPTANCEOFIMPROVEMENTS;AS-BUILTORRECORDDRAWINGS.TheCityCouncilmay,initssoleandabsolutediscretion,accept?illycompletedportionsofthePublicImprovementspriortosuchtimeasallofthePublicImprovementsarecomplete,whichshallnotreleaseormodifyDeveloper’sobligationtocompletetheremainderofthePublicImprovementswithinthetimerequiredbythisAgreement.10.1 .UponthetotalorpartialacceptanceofthePublicImprovementsbyCity,Developershall?lewiththeRecorder’sOf?ceoftheCountyofRiversideanoticeofcompletionfortheacceptedPublicImprovementsinaccordancewithCaliforniaCivilCodesection3093,atwhichtimetheacceptedPublicImprovementsshallbecomethesoleandexclusivepropertyofCitywithoutpaymenttherefor.

V2

7.J

Cig;AccegtanceofPublicImprovements
Developer’sObligationtoProvideAs—BuiltorRecordDrawing;
PerformanceBond

10.2 .IfParcelMapNo.35201wasapprovedandrecordedasasinglephasemap,CityshallnotacceptanyoneormoreoftheimprovementsuntilallofthePublicImprovementsarecompletedbyDeveloperandapprovedbyCity.IssuancebyCityofoccupancypermitsforanybuildingsorstructureslocatedonthePropertyshallnotbeconstruedinanymannertoconstituteCity’sacceptanceorapprovalofanyPublicImprovements.10.3 .Notwithstandingtheforegoing,CitymaynotacceptanyPublicImprovementsunlessanduntilDeveloperprovidesone(1)setof“as—built”orrecorddrawingsorplanstotheCityEngineerforallsuchPublicImprovements.Thedrawingsshallbecerti?edandshallre?ecttheconditionofthePublicImprovementsasconstructed,withallchangesincorporatedtherein.11.W ARRANTYANDGUARANTEE.DeveloperherebywarrantsandguaranteesallPublicImprovementsagainstanyd_efectiveworkorlabordone,ordefectivematerialsfumishedintheperformanceofthisAgreement,includingthemaintenanceofalllandscapingwithinthePropertyinavigorousandthrivingconditionreasonablyacceptabletoCity,foraperiodofone(1)yearfollowingcompletionoftheworkandacceptancebyCity.DuringtheWarranty,Developershallrepair,replace,orreconstructanydefectiveorotherwiseunsatisfactoryportionofthePublicImprovements,inaccordancewiththecurrentordinances,resolutions,regulations,codes,standards,orotherrequirementsofCity,andtotheapprovaloftheCityEngineer.Allrepairs,replacements,orreconstructionduringtheWarrantyshallbeatthesolecost,expense,andliabilityofDeveloperanditssurety.AstoanyPublicImprovementswhichhavebeenrepaired,replaced,orreconstructedduringtheWarranty,DeveloperanditssuretyherebyagreetoextendtheWarrantyforanadditionalone(1)yearperiodfollowingCity’sacceptanceoftherepaired,replaced,orreconstructedPublicImprovements.NothinghereinshallrelieveDeveloperfromanyotherliabilityitmayhaveunderfederal,state,orlocallawtorepair,replace,orreconstructanyPublicImprovementfollowingexpirationoftheWarrantyoranyextensionthereof.Developer’swarrantyobligationunderthissectionshallsurvivetheexpirationorterminationofthisAgreement.12.SECURITY;SURETYBONDS.PriortoCity’sapprovalandexecutionofthisAgreement,DevelopershallprovideCitywithsuretybondsintheamountsandunderthetermssetforthbelow.TheamountoftheSecurityshallbebasedontheCityEngineer’sEstimatedCosts.IfCitydeterminesatanytimepriortoDeveloper’scompletionofthePublicImprovementsunderSection4[ConstructionSchedule],initssoleandabsolutediscretion,thattheEstimatedCostshavechanged,DevelopershalladjusttheSecurityintheamountrequestedbyCity.Developer’scompliancewiththisprovision(Section12.0e_tE1.)shallinnowaylimitormodifyDeveloper’sindemni?cationobligationprovidedinSection16.0ofthisAgreement.12.1 .Toguaranteethefaith?ilperformanceofthePublicImprovementsandalltheprovisionsofthisAgreement,toprotectCityifDeveloperisindefaultassetforthinSection18.0gts_ec1.ofthisAgreement,andtosecureDeveloper’sone-yearguaranteeandwarrantyofthePublicImprovements,includingthemaintenanceofalllandscapinginavigorousandthrivingcondition,DevelopershallprovideCityafaithfulperformancebondintheamountofOneHundredFiftyTwoThousandand00/100Dollars($152,000.00),whichsumshallbenotlessthanonehundredpercent(100%)oftheEstimatedCosts.

RIV#4837—5047-1680V2

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PartialRelease
Material
AdditionalReguirements
FormofSecurig
DeveIoper’sLiabilig

12.2 .TheCityCouncilmay,initssoleandabsolutediscretionanduponrecommendationoftheCityEngineer,partiallyreleaseaportionorportionsoftheSecurityprovidedunderthissectionasthePublicImprovementsareacceptedbyCity,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforParcelMapNo.35201,andthetotalremainingSecurityisnotlessthantwenty-?vepercent(25%)oftheEstimatedCosts.AllSecurityprovidedunderthissectionshallbereleasedattheendoftheWarrantyperiod,oranyextensionthereofasprovidedinSection11.0ofthisAgreement,providedthatDeveloperisnotindefaultonanyprovisionofthisAgreementorconditionofapprovalforParcelMapNo.35201.12.3Labor& Bond.Tosecurepaymenttothecontractors,subcontractors,laborers,materialmen,andotherpersonsfurnishinglabor,materials,orequipmentforperformanceofthePublicImprovementsandthisAgreement,DevelopershallprovideCityalaborandmaterialsbondintheamountofOneHundredFiftyTwoThousandand00/100Dollars($152,000.00),whichsumshallnotbelessthanonehundredpercent(100%)oftheEstimatedCostsTheSecurityprovidedunderthissectionmaybereleasedbywrittenauthorizationoftheCityEngineeraftersix(6)monthsfromthedateCityacceptsthe?nalPublicImprovements.TheamountofsuchSecurityshallbereducedbythetotalofallstopnoticeormechanic’slienclaimsofwhichCityisaware,plusanamountequaltotwentypercent(20%)ofsuchclaimsforreimbursementofCity’santicipatedadministrativeandlegalexpensesarisingoutofsuchclaims.12.4 .ThesuretyforanysuretybondsprovidedasSecurityshallhaveacurrentA.M.Best’sratingofnolessthanA:VIII,beabankorinsurancecompanylicensedtotransactsuretybusinessinCalifornia,andshallbesatisfactorytoCity.AspartoftheobligationsecuredbytheSecurityandinadditiontothefaceamountoftheSecurity,theDeveloperoritssuretyshallsecurethecostsandreasonableexpensesandfees,includingreasonableattorney’sfeesandcosts,incurredbyCityinenforcingtheobligationsofthisAgreement.TheDeveloperanditssuretystipulateandagreethatnochange,extensionoftime,alteration,oradditiontothetermsofthisAgreement,thePublicImprovements,ortheplansandspeci?cationsforthePublichnprovementsshallinanyWayaffectitsobligationontheSecurity.12.5 .TheevidenceoftheSecurityshallbeprovidedontheformssetforthinAttachment“C”,unlessotherformsaredeemedacceptablebytheCityEngineerandtheCityAttorney,andwhensuchformsarecompletedtothesatisfactionofCity,theformsandevidenceoftheSecurityshallbeattachedheretoasAttachment“C”andincorporatedhereinbythisreference.12.6 .WhilenoactionofDevelopershallberequiredinorderforCitytorealizeonitssecurityunderanySecurityinstrument,DeveloperagreestocooperatewithCitytofacilitateCity’srealizationunderanySecurityinstrument,andtotakenoactiontopreventCityfromsuchrealizationunderanySecurityinstrument.NotwithstandingthegivingofanySecurityinstrumentorthesubsequentexpirationofanySecurityinstrumentoranyfailurebyanysuretyor?nancialinstitutiontoperformitsobligationswithrespectthereto,DevelopershallbepersonallyliableforperfonnanceunderthisAgreementandforpaymentofthecostofthelaborandmaterialsfortheimprovementsrequiredtobeconstructedorinstalledherebyandshall,withinten(10)daysafterwrittendemandtherefor,delivertoCitysuchsubstituteSecurityasCityshallrequiresatisfyingtherequirementsinthisSection12.

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13.MONUMENTSECURITY .PriortoCity’sexecutionofthisAgreement,toguaranteepaymenttotheengineerorsurveyorforthesettingofallsubdivisionboundaries,lotcomers,andstreetcenterlinemonumentsforParcelMapNo.35201in’compliancewiththeapplicableprovisionsofCity’sMunicipaland/orDevelopmentCode(“SubdivisionMonuments”),DevelopershalldepositcashwithCityintheamountofElevenThousandFiveHundredand00/100Dollars($11,500.00),whichsumshallnotbelessthanonehundredpercent(100%)ofthecostsofsettingtheSubdivisionMonumentsasdeterminedbytheCityEngineer.SaidcashdepositmaybereleasedbywrittenauthorizationoftheCityEngineerafterallrequiredSubdivisionMonumentsareacceptedbytheCityEngineer,Cityhasreceivedwrittenacknowledgmentofpaymentin?illfromtheengineerorsurveyorwhosettheSubdivisionMonuments,andprovidedDeveloperisnotindefaultofanyprovisionofthisAgreementorconditionofapprovalforParcelMapNo.35201.14.LIEN.TosecurethetimelyperformanceofDeveloper’sobligationsunderthisAgreement,includingthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_ts_e:c1.and13.0ofthisAgreement,DeveloperherebycreatesinfavorofCityalienagainstallportionsofthePropertynotdedicatedtoCityorsomeothergovernmentalagencyforapublicpurpose.AstoDeveloper’sdefaultonthoseobligationsforwhichsecurityhasbeenprovidedpursuanttoSections12.0e_tE1.and13.0ofthisAgreement,Cityshall?rstattempttocollectagainstsuchsecuritypriortoexercisingitsrightsasacontractlienholderunderthissection.15.SIGNSANDADVERTISING.DeveloperunderstandsandagreestoCity’sordinances,regulations,andrequirementsgoverningsignsandadvertisingstructures.DeveloperherebyagreeswithandconsentstothesummaryremovalbyCity,withoutnoticetoDeveloper,ofallsignsorotheradvertisingstructureserected,placed,orsituatedinviolationofanyCityordinance,regulation,orotherrequirement.RemovalshallbeattheexpenseofDeveloperanditssurety.DeveloperanditssuretyshallindemnifyandholdCityfreeandharmlessfromanyclaimordemandarisingoutoforincidenttosigns,advertisingstructures,ortheirremoval.16.INDEMNIFICATION.Developershalldefend,indemnify,andholdharmlessCity,itselectedof?cials,of?cers,employees,andagentsfromanyandallactualorallegedclaims,demands,causesofaction,liability,loss,damage,orinjury,topropertyorpersons,includingwrong?lldeath,whetherimposedbyacourtoflaworbyadministrativeactionofanyfederal,state,orlocalgovernmentalbodyoragency,arisingoutoforincidenttoanyacts,omissions,negligence,orwillfulmisconductofDeveloper,itspersonnel,employees,agents,orcontractorsinconnectionwithorarisingoutofconstructionormaintenanceofthePublicImprovements,orperformanceofthisAgreement.Thisindemni?cationincludes,withoutlimitation,thepaymentofallpenalties,?nes,judgments,awards,decrees,attorneys’fees,andrelatedcostsorexpenses,andthereimbursementofCity,itselectedof?cials,of?cers,employees,and/oragentsforalllegalexpensesandcostsincurredbyeachofthem.Thisindemni?cationexcludesonlysuchportionofanyclaim,demand,causeofaction,liability,loss,damage,penalty,?ne,orinjury,topropertyorpersons,includingwrongfuldeath,whichiscausedsolelyandexclusivelybythegrossnegligenceorwillfulmisconductofCityasdeterminedbyacourtoradministrativebodyofcompetentjurisdiction.Developer’sobligationtoindemnifyCityshallsurvivetheexpirationorterminationofthisAgreement,andshallnotberestrictedtoinsuranceproceeds,ifany,receivedbyCity,itselectedof?cials,of?cers,employees,oragents.

RIV#4837-5047-1680V2 _..

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Tyges;Amounts
Deductibles
Segaration
rimaryInsurance;WaiverofSubrogation

17.INSURANCE.17.1 .Developershallprocureandmaintain,andshallrequireitscontractorstoprocureandmaintain,duringconstructionofanyPublicImprovementpursuanttothisAgreement,insuranceofthetypesandintheamountsdescribedbelow.IfanyoftheRequiredInsurancecontainsageneralaggregatelimit,suchinsuranceshallapplyseparatelytothisAgreementorbenolessthantwotimesthespeci?edoccurrencelimit.17.1.1GeneralLiability.Developeranditscontractorsshallprocureandmaintainoccurrenceversiongeneralliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$3,000,000peroccurrenceforbodilyinjury,personalinjury,andpropertydamage.17.1.2BusinessAutomobileLiability.Developeranditscontractorsshallprocureandmaintainbusinessautomobileliabilityinsurance,orequivalentform,withacombinedsinglelimitofnotlessthan$1,000,000peroccurrence.Suchinsuranceshallincludecoveragefortheownership,operation,maintenance,use,loading,orunloadingofanyvehicleowned,leased,hired,orborrowedbytheinsuredorforwhichtheinsuredisresponsible.17.1.3Workers’Compensation.Developeranditscontractorsshallprocureandmaintainworkers’compensationinsurancewithlimitsasrequiredbytheLaborCodeoftheStateofCaliforniaandemployers’liabilityinsurancewithlimitsofnotlessthan$1,000,000peroccurrence,atalltimesduringwhichinsuredretainsemployees.17.1.4ProfessionalLiability.ForanyconsultantorotherprofessionalwhowillengineerordesignthePublicImprovements,liabilityinsuranceforerrorsandomissionswithlimitsnotlessthan$1,000,000peroccurrence,shallbeprocuredandmaintainedforaperiodof?ve(5)yearsfollowingcompletionofthePublicImprovements.Suchinsuranceshallbeendorsedtoincludecontractualliability.17.2 .Anydeductiblesorself-insuredretentionsmustbedeclaredtoandapprovedbyCity.AttheoptionofCity,either:(a)theinsurershallreduceoreliminatesuchdeductiblesorself-insuredretentionsasrespectsCity,itselectedof?cials,of?cers,employees,agents,andvolunteers;or(b)Developeranditscontractorsshallprovidea?nancialguaranteesatisfactorytoCityguaranteeingpaymentoflossesandrelatedinvestigationcosts,claims,andadministrativeanddefenseexpenses.17.3AdditionalInsured:ofInsureds.TheRequiredInsuranceshallnameCity,itselectedof?cials,of?cers,employees,agents,andvolunteersasadditionalinsuredswithrespecttoworkperformedbyoronbehalfofDeveloperoritscontractors,includingmaterials,parts,orequipmentfurnishedinconnectiontherewith.TheRequiredInsuranceshallcontainstandardseparationofinsuredprovisions,andshallcontainnospeciallimitationsonthescopeofitsprotectiontoCity,itselectedof?cials,of?cers,employees,agents,andvolunteers.17.4P .TheRequiredInsuranceshallbeprimarywithrespecttoanyinsuranceorself-insuranceprogramscoveringCity,itselectedof?cials,of?cers,employees,agents,andvolunteers.AllpoliciesfortheRequired

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Certi?cates;Veri?cation
Term;CancellationNotice
InsurerRating
Remedy;, ,,
InsuranceshallprovidethattheinsurancecompanywaivesallrightofrecoverybywayofsubrogationagainstCityinconnectionwithanydamageorharmcoveredbysuchpolicy.17.5 .DeveloperanditscontractorsshallfurnishCitywithoriginalcerti?catesofinsuranceandendorsementseffectingcoveragefortheRequiredInsurance.Thecerti?catesandendorsementsforeachinsurancepolicyshallbesignedbyapersonauthorizedbythatinsurertobindcoverageonitsbehalf.Allcerti?catesandendorsementsmustbereceivedandapprovedbyCitybeforeworkpursuanttothisAgreementcanbegin.Cityreservestherighttorequirecomplete,certi?edcopiesofallrequiredinsurancepolicies,atanytime.17.6 .DeveloperanditscontractorsshallmaintaintheRequiredInsuranceforthetermofthisAgreementandshallreplaceanycerti?cate,policy,orendorsementwhichwillexpirepriortothatdate.AllpoliciesshallbeendorsedtoprovidethattheRequiredInsuranceshallnotbesuspended,voided,reduced,canceled,orallowedtoexpireexcepton30days’priorwrittennoticetoCity.17.7 .UnlessapprovedinwritingbyCity,allRequiredInsuranceshallplacedwithinsurerslicensedtodobusinessintheStateofCaliforniaandwithacurrentA.M.BestratingofatleastA:VIII.18.DEFAULT;NOTICE;REMEDIES.18.1Notice.IfDeveloperneglects,refuses,orfailstoful?llortimelycompleteanyobligation,term,orconditionofthisAgreement,orifCitydeterminesthereisaviolationofanyfederal,state,orlocallaw,ordinance,regulation,code,standard,orotherrequirement,CitymayatanytimethereafterdeclareDevelopertobeindefaultorviolationofthisAgreementandmakewrittendemanduponDeveloperoritssurety,orboth,toimmediatelyremedythedefaultorviolation.Developershallcommencetheworkrequiredtoremedythedefaultorviolationwithinten(10)daysofthewrittendemandfromtheCity.Ifthedefaultorviolationconstitutesanimmediatethreattothepublichealth,safety,orwelfare,Citymayprovidethedemandverbally,andDevelopershallcommencetherequiredworkwithintwenty-four(24)hoursthereof.ImmediatelyuponCity’sissuanceofthedemandtoremedythedefault,DeveloperanditssuretyshallbeliabletoCityforallcostsofconstructionandinstallationofthePublicImprovementsandallotheradministrativecostsexpensesasprovidedforinSection9.0ofthisAgreement.18.2Failureto CitvAction.IftheworkrequiredtoremedythenoticeddefaultorviolationisnotdiligentlyprosecutedtoasubstantialcompletionacceptabletoCitywithinareasonabletimedesignatedbytheCity,Citymaycompleteallremainingwork,arrangeforthecompletionofallremainingwork,and/orconductsuchremedialactivityasinitssoleandabsolutediscretionitbelievesisrequiredtoremedythedefaultorViolation.Allsuchworkorremedialactivityshallbeatthesoleandabsolutecost,expense,andliabilityofDeveloperanditssurety,withoutthenecessityofgivinganyfurthernoticetoDeveloperorsurety.City’srighttotakesuchactionsshallinnowaybelimitedbythefactthatDeveloperoritssuretymayhaveconstructedany,ornoneoftherequiredoragreeduponPublicImprovementsatthetimeofCity’sdemandforperformance.IntheeventCityelectstocompleteorarrangeforcompletionoftheremainingworkandimprovements,Citymayrequire RIV#4837-5047-1680V2 _ _

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AuthorigtoEnterAgreement
Coogeration;FurtherA
References;- ,1 WW.

Notices
allworkbyDeveloperoritssuretytoceaseinordertoallowadequatecoordinationbyCity.Notwithstandingtheforegoing,ifconditionsprecedentforreversiontoacreagecanbemetandiftheinterestsofCitywillnotbeprejudicedthereby,CitymayalsoprocessareversiontoacreageandthereafterrecoverfromDeveloperoritssuretythefullcostandexpenseincurred.18.3OtherRemedies.NoactionbyCitypursuanttoSection18.0e_t$1.ofthisAgreementshallprohibitCityfromexercisinganyotherrightorpursuinganyotherlegalorequitableremedyavailableunderthisAgreementoranyfederal,state,orlocallaw.Citymayexerciseitrightsandremediesindependentlyorcumulatively,andCitymaypursueinconsistentremedies.Citymayinstituteanactionfordamages,injunctiverelief,orspeci?cperformance.19.GENERALPROVISIONS19.1 .EachPartywarrantsthattheindividualswhohavesignedthisAgreementhavethelegalpower,right,andauthoritymakethisAgreementandbindeachrespectiveParty.19.2 cts.ThePartiesshallfullycooperatewithoneanother,andshalltakeanyadditionalactsorsignanyadditionaldocumentsasmaybenecessary,appropriate,orconvenienttoattainthepurposesofthisAgreement.19.3Construction:Cautions.ItbeingagreedthePartiesortheiragentshaveparticipatedinthepreparationofthisAgreement,thelanguageofthisAgreementshallbeconstruedsimply,accordingtoitsfairmeaning,andnotstrictlyfororagainstanyParty.Anytermreferencingtime,days,orperiodforperformanceshallbedeemedcalendardaysandnotworkdays.AllreferencestoDeveloperincludeallpersonnel,employees,agents,andsubcontractorsofDeveloper,exceptasotherwisespecifiedinthisAgreement.AllreferencestoCityincludeitselectedof?cials,of?cers,employees,agents,andV olunteersexceptasotherwisespeci?edinthisAgreement.Thecaptionsofthevariousarticlesandparagraphsareforconvenienceandeaseofreferenceonly,anddonotde?ne,limit,augment,ordescribethescope,content,orintentofthisAgreement.19.4.Allnotices,demands,invoices,andwrittencommunicationsshallbeinwritinganddeliveredtothefollowingaddressesorsuchotheraddressesasthePartiesmaydesignatebywrittennotice:CITY:CityofHemetAttn:CityManager445E.FloridaAvenueHemet,CA92543DEVELOPER:1950WestFlorida,LLC18345VenturaBlvd.,Suite500Tarzana,CA91356

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Amendment;Modi?cation
AssignmentorTransferofAgreement
BindingEffect
Par ,,,,,
Invalidig;Severabilig
ConsenttoJurisdictionandVenue
Dependinguponthemethodoftransmittal,noticeshallbedeemedreceivedasfollows:byfacsimile,asofthedateandtimesentprovidedtheoriginaliscontemporaneouslydepositedwithUnitedStatesPostalServiceanddeliveredbyregularmail;bymessenger,asofthedatedelivered;andbyU.S.Mailfirstclasspostageprepaid,asof72hoursafterdepositintheU.S.Mail.19.5 . Nosupplement,modi?cation,oramendmentofthisAgreementshallbebindingunlessexecutedinWritingandsignedbybothParties.19.6Waiver.City’sfailuretoinsistuponstrictcompliancewithanyprovisionofthisAgreementortoexerciseanyrightorprivilegeprovidedherein,orCity’swaiverofanybreachofthisAgreement,shallnotrelieveDeveloperofanyofitsobligationsunderthisAgreement,whetherofthesameorsimilartype.TheforegoingshallbetruewhetherCity’sactionsareintentionalorunintentional.Developeragreestowaive,asadefense,counterclaimorsetoff,anyandalldefects,irregularitiesorde?cienciesintheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement,aswellasthelaws,rules,regulations,ordinancesorresolutionsofCitywithregardstotheauthorization,executionorperformanceofthePublicImprovementsorthisAgreement.19.7 .Developershallnotassign,hypothecate,ortransfer,eitherdirectlyorbyoperationoflaw,thisAgreementoranyinteresthereinwithoutpriorwrittenconsentofCity.Anyattempttodososhallbenullandvoid,andanyassignee,hypothecatee,ortransfereeshallacquirenorightorinterestbyreasonofsuchattemptedassignment,hypothecation,ortransfer.Unlessspeci?callystatedtothecontraryinCity’swrittenconsent,anyassignment,hypothecation,ortransfershallnotreleaseordischargeDeveloperfromanydutyorresponsibilityunderthisAgreement.19.8 .Eachandallofthecovenantsandconditionsshallbebindingonandshallinuretothebene?toftheParties,andtheirsuccessors,heirs,personalrepresentatives,orassigns.ThissectionshallnotbeconstruedasanauthorizationforanyPartytoassignanyrightorobligation.19.9NoThirdBene?ciariesTherearenointendedthirdpartybene?ciariesofanyrightorobligationassumedbytheParties.19.10 .IfanyportionofthisAgreementisdeclaredinvalid,illegal,orotherwiseunenforceablebyacourtofcompetentjurisdiction,theremainingprovisionsshallcontinueinfullforceandeffect.19.11 .ThisAgreementshallbeconstruedinaccordancewithandgovernedbythelawsoftheStateofCalifornia.AnylegalactionorproceedingbroughttointerpretorenforcethisAgreement,orwhichinanywayarisesoutoftheParties’activitiesundertakenpursuanttothisAgreement,shallbe?ledandprosecutedintheappropriateCaliforniaStateCourtintheCountyofRiverside,California.EachPartywaivesthebene?tofanyprovisionofstateorfederallawprovidingforachangeofvenuetoanyothercourtorjurisdictionincluding,withoutlimitation,achangeofvenuebasedonthefactthatagovernmentalentityisapartytotheactionorproceeding,orthatafederalrightorquestionis RIV#4837-5047-1680v2 _ _

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Attorneys’FeesandCosts
RelatinnshigBetweenTheParties
Countergarts
involvedorallegedtobeinvolvedintheactionorproceeding.Withoutlimitingthegeneralityoftheforegoingwaiver,DeveloperexpresslywaivesanyrighttohavevenuetransferredpursuanttoCaliforniaCodeofCivilProcedureSection394.19.12 .Ifanyarbitration,lawsuit,orotherlegalactionorproceedingisbroughtbyonePartyagainsttheotherPartyinconnectionwiththisAgreementortheProperty,theprevailingparty,whetherby?naljudgmentorarbitrationaward,shallbeentitledtoandrecoverfromtheotherpartyallLitigationExpenses.Anyjudgment,order,orawardenteredinsuchlegalactionorproceedingshallcontainaspeci?cprovisionprovidingfortherecoveryofLitigationExpenses.19.13 .ThePartiesherebymutuallyagreethatneitherthisAgreement,anymaprelatedtoParcelMapNo.35201,noranyotherrelatedentitlement,permit,orapprovalissuedbyCityforthePropertyshalloperatetocreatetherelationshipofpartnership,jointVenture,oragencybetweenCityandDeveloper.Developer’scontractorsandsubcontractorsareexclusivelyandsolelyunderthecontrolanddominionofDeveloper.NothinghereinshallbedeemedtomakeDeveloperoritscontractorsanagentorcontractorofCity.19.14.ThisAgreementmaybeexecutedincounterpartoriginals,whichtakentogether,shallconstituteoneandthesameinstrument.19.15EffectiveDateofAgreement.ThisAgreementshallnotbecomeeffectiveuntilthedateithasbeenformallyapprovedbytheCityandexecutedbytheappropriateauthoritiesofCityandDeveloper.INWITNESSWHEREOF,thepartiesheretohaveexecutedthisAgreementonthedateandyearfirst-abovewritten. CITYOFHEMET By:JohnDavidson,CityManager
ATTEST:

StephenClaytonCityClerk

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Its:

APPROVEDASTOFORM
By:EricS.VailCityAttorney
1950WestFlorida,LLC ,u.5‘By: By:Its:MNV\‘~'a_g_‘
NOTE:DEVELOPER’SSIGNATURESSHALLBEDULYNOTARIZED,ANDAPPROPRIATE’ATTESTATIONSSHALLBEINCLUDEDASMAYBEREQUIREDBYTHEBYLAWS,ARTICLESOFINCORPORATION,OROTHERRULESORREGULATIONSAPPLICABLETODEVELOPER’SBUSINESSENTITY .

V2

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SIDM_
Cumn?an
MosheCO?I'|'|- lh27.2010
§;M \\\Qmo3\g53%,\
thebasisofsatisfactoryevidencetobethepersonwhosen2unes(is/ subscribedto thewithinins emand 0 ledgetomethat@she/theyexecutedthsameiner/theirauthoxizedcapacity(i, andumbyer/theirsignatureontheinstrumenttheparse,ortheentityupon 0 whichtheperson()Xacted,executedtheinstrument.
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CALIFORNIAALL-PURPOSEACKNOWLEDGMENT
STATEOFCALIFORNIACOUNTYOFOn’B—3.3',§C?}beforeme personallyappearedmgl(\Elpersonallyknowntome-OR—E]provedtomeon behalfII 13NotaryRblc- WITNESSmyhandandof?cialseal.to: Cauuy(SIGNATUREOF OPTIONALThoughthedatabelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldpreventfraudulentreattachmentofthisformCAPACITYCLAIMEDBYSIGNERDESCRIPTIONOFATTACHEDDOCUMENTINDIVIDUALCORPORATEOFFICER TITLEORTYPEOFDOCUMENTTITLE(S)PARTNER(S)ElLIMITEDElGENERALNUMBEROFPAGES|:]ATTORNEY-IN-FACTI] TRUSTEE(S)E]GUARDIAN/CONSERV ATORE]OTHER DATEOFDOCUMENT SIGNERISREPRESENTING:(NAMEOFPERSON(S)ORENTITY(IES))SIGNER(S)OTHERTHANNAMEDABOVE

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Commission#I522!14NotaryPubliccallloniu

CALIFORNIAALL-PURPOSEACKNOWLEDGMENT
STATEOFCALIFORNIACOUNTYOF/Qt!/c:/5/"Q/‘"9Ong.//J27,.ZM7befoIeme,Qpersonallyknowntome- personallyappearedin,tobetheperson?sfwhosenamesLsj'is/aresubscribedtothewithininstrumentandacknowledgedtomethathe/shealt-heyexecutedthesamei.nhis/her-Lt-heirauthorizedcapacity(ies),andthatbyhis/laer7‘t-heirsignature(sj'ontheinstrumenttheperson(s§,ortheentityuponbehalfofwhichtheperson(s)acted,executedtheinstrument.myhandandOf?cialseal.

TUREOFNOTARY)
OPTIONALThoughthedatabelowisnotrequiredbylaw,itmayprovevaluabletopersonsrelyingonthedocumentandcouldprevent?audulentreattachmentofthisformCAPACITYCLAIMEDBYSIGNERDESCRIPTIONOFATTACHEDDOCUMENTj INDIVIDUAL3 CORPORATEOFFICER TITLEORTYPEOFDOCUMENTTITLE(S)PA.-TNE-R(-)E‘LIMITEDI3GENERALNUMBEROFPAGES3 ATTORNEY-IN-FACT.__TRUSTEE(S)I:GUARDIAN/CONSERV ATORI OTHER DATEOFDOCUMENT SIGNERISREPRESENTING:(NAMEOFPERSON(S)ORENTITY(IES))SIGNER(S)OTHERTHANNAMEDABOVE

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EXHIBIT“A”LEGALDESCRIPTIONOFPROPERTYPARCELMAPNO.35201PARCEL1:THEWEST97.50FEETOFTHEEAST622.50SOUTHERLY300FEET,MEASUREDFROMTHECENTERLINEOFFLORIDAA VENUE,OFTHESOUTHHALFOFTHENORTHI-LALFOFFARMLOT184OFTHELANDSOFSANJACINTOLANDASSOCIATION,ASSHOWNBYTHEMAPONFILEINBOOK8PAGE(S)357,OFMAPS,RECORDSOFSANDIEGOCOUNTY ,CALIFORNIA;EXCEPTINGTHEREFROMTHENORTHERLY11.09FEETOFTHESOUTHERLY41.09FEETTHEREOF,ASGILANTEDTOTHECITYOFHEMETBYDEEDRECORDEDDECEMBER11,1962ASINSTRUMENTNO.114436OFOFFICIALRECORDSOFSANDIEGOCOUNTY ,CALIFORNIA;ALSOEXCEPTINGTHEREFROMTHESOUTH30FEETINFLORIDAA VENUE.PARCEL2:THESOUTHERLY300FEETMEASUREDFROMTHECENTERLINEOFFLORIDAA VENUEOFTHESOUTHHALFOFTHENORTHHALFOFFARMLOT184OFTHELANDSOFTHESANJACINTOLANDASSOCLATION,ASSHOWNBYMAPONFILEINBOOK8PAGE(S)357,OFMAPS,RECORDSOFSANDIEGOCOUNTY ,CALIFORNIA;EXCEPTINGTHEREFROMTHEEASTERLY622.50FEETTHEREOF;ALSOEXCEPTINGTHEREFROMTHESOUTH30FEETINFLORIDAA VENUE;ALSOEXCEPTINGTHEREFROMTHENORTHERLY11.09FEETOFTHESOUTHERLY41.09FEETTHEREOF,ASGRANTEDTOTHECITYOFHEMETBYDEEDRECORDEDDECEMBER11,1962ASINSTRUMENTNO.114436OFOFFICIALRECORDSOFRIVERSIDECOUNTY ,CALIFORNIA.PARCEL3:THEEASTERLY60FEETOFTHESOUTHERLY300FEETMEASUREDFROMTHECENTERLINEOFFLORIDAA VENUEOFLOT14OFWEBERANDGRIFFINSUBDIVISIONOFTRACTXV111OFTHERANCHOSANJACINTOVIEJOAsSHOWNBYRECORD(S)OFSURVEYONFILEINBOOK1PAGE4OFRECORDS(S)OFSURVEY ,RECORDSOFSANDDEGO,COUNTY ,CALIFORNIA;35FEETINFLORIDAA VENUE.

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LEGALDESCRIPTION(Continued)PARCEL4:THESOUTHERLY300FEET,MEASUREDFROMTHECENTERLINEOFFLORIDAA VENUE,OFLOT14OFWEBERANDGRIFFINSUBDIVISIONOFTRACTXV111OFTHESANJACINTOVIEJO,ASSHOWNBYRECORD(S)OFSURVEYONFILEINBOOK1PAGE4OFRECORDS(S)OFSURVEY ,RECORDSOFSANDDEGOCOUNTY ,CALIFORNIA;EXCEPTINGTHEREFROMTHEWESTERLY400FEETTHEREOF;ALSOEXCEPTINGTHEREFROMTHEEASTERLY60FEETTHEREOF;ALSOEXCEPTINGTHEREFROMTHATPORTIONINFLORDDAA VENUE.PARCEL5:THATPORTIONOFLOT14OFWEBERANDGRIFFINSUBDIVISIONOFTRACTXV111OFTHERANCHOSANJACINTOVIEJO,ASSHOWNBYRECORD(S)OFSURVEYONFILEINBOOK1PAGE4OFRECORD(S)OFSURVEY ,RECORDSOFSANDIEGOCOUNTY ,CALIFORNIA,DESCRIBEDASFOLLOWS:COMMENCINGATTHECENTERLINEINTERSECTIONOFLATHAMA VENUE,60FEETWIDEANDGILMORESTREET,60FEETWIDE,ASSAIDINTERSECTIONASSHOWNONPARCELMAPNO.14382ONFILEINBOOK77PAGES83AND84,OFPARCELMAPS,RECORDSOFRIVERSIDECOUNTY ,CALIFORNIA;THENCENORTH89°51'12"EASTALONGSAIDCENTERLINEOFLATHAMA VENUEADISTANCEOF268.75FEETTOTHEPOINTOFBEGINNING‘;THENCESOUTH0°06'O5"EAST,PARALLELWITHSAIDCENTERLINEOFGILMORESTREET,ADISTANCEOF253.44FEET;THENCENORTH89°53'55"EASTADISTANCEOF125.44FEET;THENCESOUTH0°O6'O5"EASTADISTANCEOF106.62FEETTOALINETHATISPARALLELWITHAND300FEETNORTHOFTHECENTERLINEOFFLORIDAA VENUE;THENCENORTH89°52'20“EASTALONGSAIDPARALLELLINEADISTANCEOF266.32FEETTOTHEEASTLINEOFAFORESAIDLOT14OFWEBERANDGRIFFINSUBDIVISIONOFTRACTXVIIIOFTHEILANCHOSANJACINTOVIEJO;THENCENORTH0°05'08"WESTALONGSAIDEASTLINEOFLOT14ADISTANCEOF360.24TOTHEEASTERLYPROLONGATIONOFTHETANGENTPORTIONOFTHEAFORESAIDCENTERLINEL?\1EOFLATHAMA VENUE;THENCESOUTH89°51‘12"WESTALONGSAIDPROLONGATIONANDCENTERLINEOFLATHAMA VENUEADISTANCEOF391.86FEETTOTHEPOINTOFBEGINNING;EXCEPTINGTHEREFROMTHATPORTIONLYINGWITHINEXISTINGLATHAM

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LEGALDESCRIPTION(Continued)NOTE:SAIDLANDISDESCRIBEDANDDELINEATEDASPARCEL3INTHATCERTAINCERTIFICATEOFCOMPLIANCELOTLINEADJUSTMENTNO.95-005RECORDEDMAY31,1996ASINSTRUMENTNO.202213OFOFFICIALRECORDS.PARCEL6:THATPORTIONOFLOT14OFWEBERANDGRIFFINSUBDIVISIONOFTRACTXV111OFTHERANCHOSANJACINTOVIE]O,ASSHOWNBYRECORD(S)OFSURVEYONFILEINBOOK1PAGE4OFRECORD(S)OFSURVEY ,RECORDSOFSANDIEGOCOUNTY ,CALIFORNIA,DESCRIBEDASFOLLOWS:COMMENCINGATTHECENTERLINEINTERSECTIONOFLATHAMA VENUE,60FEETWIDEANDGILMORESTREET,60FEETWIDE,ASSAIDINTERSECTIONASSHOWNONPARCELMAPNO.14382ONFILEINBOOK77PAGES83AND84,OFMAPS,RECORDSOFRIVERSIDECOUNTY ,CALIFORNIA;THENCENORTH89°51'12"EASTALONGSAIDCENTERLINEOFLATHAMA VENUEADISTANCEOF268.75FEET;THENCESOUTH0°06'05"EAST,PARALLELWITHSAIDCENTERLINEOFGILMORESTREET,ADISTANCEOF253.44FEETTOTHEPOINTOFBEGINNING;THENCENORTH89°53'55"EASTADISTANCEOF125.44FEET;THENCESOUTH0°06'O5"EASTADISTANCEOF106.62FEETTOALINETHATISPARALLELWITHAND300FEETNORTHOFTHECENTERLINEOFFLORIDAA VENUE;THENCENORTH89°52'20"EASTALONGSAIDPARALLELLINEADISTANCEOF5.81FEETTOALINETHATISPARALLELWITHAND400FEETEASTOFTHEAFORESAIDCENTERLINEOFGILMORESTREET;THENCESOUTH0°60'05"EASTALONGSAIDPARALLELLINEADISTANCEOF300FEETTOSAIDCENTERLINEOFFLORIDAA VENUE;THENCESOUTH89°52'20"WESTALONGSAIDCENTERLINEOFFLORIDAA VENUEADISTANCEOF135FEETTOALINETHATISPAILALLELWITHAND265FEETEASTOFSAIDCENTERLINEOFGILMORESTREET;THENCENORTH0°06'05"WESTALONGSAIDPARALLELLINEADISTANCEOF382.01FEET;THENCENORTH89°53'55"EASTADISTANCEOF3.75FEETTOALINETHATISPARALLELWITHAND268.75FEETEASTOFSAIDCENTERLINEOFGILMORESTREET;THENCENORTH0°06'05"WESTALONGSAIDPARALLELLINEADISTANCEOF24.67FEETTOTHEPOINTOFBEGH\INING;EXCEPTINGTHEREFROMTHATPORTIONLYINGVVITHINEXISTINGFLORIDAA VENUE.NOTE:SAIDLANDISDESCRIBEDANDDELINEATEDASPARCEL4INTHATCERTAINCERTIFICATEOFCOMPLIANCELOTLINEADIUSTMENTNO.95-005RECORDEDMAY31,1996ASINSTRUMENTNO.202213OFOFFICLALRECORDS

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LEGALDESCRIPTION(Continued)PARCEL7:PARCEL1OFPARCELMAPNO.6226ASSHOWNBYMAPONFILEINBOOK15PAGE(S)3,OFPARCELMAPS,RECORDSOFRIVERSIDECOUNTY ,CALIFORNIA.PARCEL8:PARCEL2OFPARCELMAPNO.6226ASSHOWNBYMAPONFILEINNBOOK15PAGE(S)3,OFPARCELMAPS,RECORDSOFRIVERSIDECOUNTY ,CALIFORNIA

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BONDNo.733318SINITIALPREMIUM:$4,404.00/TwoyeartermSUBJECTTORENEW ALCITYOFHEMETPARCELMAPNO.35201IMPROVEMENTSFORMOFPERFORMANCEBONDKNOWALLMENBYTHESEPRESENTSWHEREAStheCityofHemet,California(“City”)and1950WestFlorida,LLC(“Principal”),haveexecutedanagreementforworkconsistingof,butnotlimitedto,thefurnishingalllabor,materials,tools,equipment,services,andincidentalsforallgrading,roads,paving,curbsandgutters,pathways,stormdrains,sanitarysewers,utilities,drainagefacilities,traf?ccontrols,landscaping,streetlights,andallotherrequiredfacilitiesforParcelMapNo.35201‘(“PublicImprovements”);WHEREAS,thePublicImprovementstobeperformedbyPrincipalaremoreparticularlysetforthinthatcertainSubdivisionImprovementAgreementdatedMay8,2007(“ImprovementAgreemen”);WHEREAS,theImprovementAgreementisherebyreferredtoandincorporatedhereinbyreference;andWHEREAS,PrincipalisrequiredbytheImprovementAgreementtoprovideagoodandsuf?cientbondforperformanceoftheImprovementAgreement,andtoguaranteeandwarrantythePublicImprovementsconstructedthereunder.NOW,THEREFORE,PrincipalandDevelopersSuretyandIndenmityCompany(“Surety”),acorporationorganizedandexistingunderthelawsoftheStateofIowa,anddulyauthorizedtotransactsuretybusinessunderthelawsoftheStateofCalifornia,areheldandfirmlybounduntoCityinthesumofOneHundredFiftyTwoThousandand00/100Dollars($152,000.00),saidsumbeingnotlessthanonehundredpercent(100%)ofthetotalcostofthePublicImprovementsassetforthintheImprovementAgreement,webindourselves,ourheirs,executorsandadministrators,successorsandassigns,jointlyandseverally,?rmlybythesepresents.THECONDITIONOFTHISOBLIGATIONissuch,thatifPrincipal,hisoritsheirs,executors,administrators,successorsorassigns,shallinallthingsstandtoandabideby,andwellandtrulykeepandperformthecovenants,conditions,agreements,guarantees,andwarrantiesintheImprovementAgreementandanyalterationthereofmadeasthereinprovided,tobekeptandperformedatthetimeandinthemannerthereinspeci?edandinallrespectsaccordingtotheirintentandmeaning,andtoindemnifyandsaveharmlessCity,itsof?cers,employees,andagents,asstipulatedintheImprovementAgreement,thenthisobligationshallbecomenullandvoid;otherwiseitshallbeandremaininfullforceandeffect.

RIV#4837-5047-1680V2 I_MPROVEMENTAGREEMENT