BERNAL INVESTMENT OFFSITE IMPROVEMENT

Avenue Cost Share Quantity Estimate dated June 8, 2005 and Plan dated March 22, 2005 prepared by Ruggeri Jensen Azar and Associates (approved by the City Engineer on June 8, 2005) and attached as an exhibit to this Amendment. 3. Ins ep ction. Section 3 of the Agreement is amended to include the following: City shall inspect all of said work through an inspector employed by City at the cost and expense of Developer, and Developer shall pay City the cost of such inspection as fixed by Ordinance. The City Engineer has tentatively fixed the inspection costs due upon execution of this agreement as follows: $ 21,467 4. Security. Section 7 of the Agreement is amended to include the following: On signing this Amendment, the Developer shall present to the City improvement security as defined in Section 66499 of the Government Code of the State of California. Said improvement security as approved by the City Attorney, shall consist of the following as determined by the City: a. cash deposit made with the City, or b. bonds by duly authorized corporate sureties, or c. instruments of credit from financial institutions subject to regulation by state or federal government, or d. bonds of a duly authorized surety company covering all or a portion of said improvements required herein where a contract for improvements has been let through an assessment district proceeding, and where said bonds have been filed with the City Clerk rior to the execution of this Agreement, as a part of the existing improvement district proceedings, and FIRST AMENDMENT TO OFFSITE IMPROVEMENT AGREEMENT Page 3 of 5