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Jonathan Lowell, Esq. December 24, 2013 Page 2 of 4 1. Design Review Process. The Reddys shall submit and diligently pursue an application with the city for a design review of their residence to determine if: (a) The plans submitted to the City for the building permit described in Section I, above, are consistent with the plans approved by the Ruby Hill Owners' Association's Architectural Design Committee; and (b) The as-built condition of the residence complies with the plans submitted to the City for the building permit as described in Section I, above; and (c) The as-built condition of the residence deviates from the plans approved by the Ruby Hill Owners' Association's Architectural Design Committee ("RHADC"), or if it deviates from the plans submitted for the building permit, or if it conforms to the Ruby Hill development's Design Review Guidelines dated October 1992, updated June 1994 & September 1995 & January 2000; and (d) The as-built condition resulted in any impermissible encroachment onto or modification of drainage patterns impacting adjacent property; and (e) The as-built condition of the residence meets all of the other requirements of the Ruby Hill Development Regulations and the Pleasanton Municipal Code. 2. Covenant to Adhere to Final Design Review Decision. Upon a final decision from the design review process and expiration of any appeal period, the Reddys covenant that they shall diligently pursue and make any and all modifications to the as-built condition of their residence in order to comply with the final decision from the design review process. This may include, but not be limited to, modifying the as-built condition to meet the Architectural Design Committee's original approval, as described in Exhibit B, and changes in grading or landscaping to address encroachment or drainage issues. The City's Director of Community Development, or his or her designee, shall reasonably determine when any required modification is completed. The Agreement allows the City, and not the Ruby Hill Owners' Association, to make any necessary modifications to comply with the City's final design review decision. Finally, the Agreement allows the Reddys to obtain a permanent certificate of occupancy, upon completion of the required modifications: 6. Completion of Modifications. As the Reddys complete the modifications to the as-built condition of their residence—in order to comply with the final design review decision, and grading and drainage determinations—, the City's Director of Community Development, or his or her designee, may provide for the release DHILLON&SMITH LLP 177 POST STREET,SUITE 700 I SAN FRANCISCO,CA 94108 1 415.433.1700 1 415.520.6593(F)