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CAPITAL IMPROVEMENTS <br />1. Replace perimeter fencing [street segment by March 31, 2008, 1/3 by July 31, 2008, and <br />1/3 by December 31, 2008]. <br />2. Sidewalk and Owner installed driveways: Maintenance Committee shall identify by <br />October 31, 2007 those sidewalks that are to be repaired/replaced using a differential of <br />more than %2" as the standard to warrant repair/replacement, and 1 /3 shall be replaced by <br />December 31, 2007, 1/3 by June 30, 2008 and 1/3 by December 31, 2008. The <br />Maintenance Committee shall identify by December 31, 2007 those Owner installed <br />driveways that are to be repaired/replaced using the same standard as above. Owner shall <br />repair/replace 1/3 by June 30, 2008, 1/3 by December 31, 2008 and the remaining 1/3 by <br />June 30, 2009. In July 2009 and January 2011 the Maintenance Committee shall identify <br />other sidewalks and Owner installed driveways (if any) that are to be repaired/replaced. <br />3. Street lights: all street lights are to be operational by December 31, 2007. All lighting <br />around the Clubhouse and within the common areas/walkways/greenbelts is to be <br />operational by March 31, 2008. <br />4. Clubhouse: The roof of the clubhouse shall be inspected by a licensed roofing contractor <br />by November 15, 2007 and the necessary repairs to the clubhouse roof to repair all water <br />leaks completed by December 31, 2007, weather permitting. If the entire roof to the <br />clubhouse needs to be replaced, it shall be replaced by March 15, 2008. To the extent that <br />Owner can match the color and design of the existing tiles with new tiles and that the <br />existing tiles are reusable, Owner shall endeavor to reuse as much of the existing roof the <br />as possible. New windows shall be installed by June 30, 2008: The heating system shall <br />be inspected by a licensed mechanical contractor by November 30, 2007 and any <br />repairs/replacement shall be completed within 90 days. The bathroom shall be upgraded <br />by May 31, 2008. <br />5. The spa shall be repaired/replaced by January 31, 2008. <br />6. The electrical unit for the sauna shall be replaced by January 31, 2008. <br />7. Specifications for a new irrigation system and landscaping shall be reviewed by the City <br />by February 28, 2008 and installed by May 31, 2008. Owner shall attempt to retain as <br />much as possible the existing irrigation system and landscaping that are in place. The <br />landscaping plan shall include a schedule of work similar to that shown in Exhibit G. City <br />shall review the. scope of the irrigation system and landscaping previously installed to <br />determine if there is any duplication with the new irrigation system and landscaping. <br />8. Laundry room: anew hot water heater shall be installed by November 15, 2007. <br />aj:my docs\mobilhomes\cap imp~xh d 104) <br />EXHIBIT E <br />