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1. Time of Essence. Time is of the essence in the performance of this Agreement. The work and improvements required by this Agreement to be completed by Subdivider shall be completed within two (2) years from the above-mentioned date of this Agreement. The City may extend the time for completion of improvements hereunder, upon good cause being shown by the Subdivider. Any such extension may be granted without notice to the Subdivider's surety, any extension so granted shall not relieve the surety's liability on the bond to secure the faithful performance of this Agreement. 2. Work. Subdivider will do or cause to be done and performed the following described work: Improvements pursuant to plans and project bond estimates entitled "a)Improvement Plans, Tract 7162, HEARTWOOD COMMUNITIES ,Pleasanton, California dated April, 2006 and Bond Estimate for Tract 7162-HEARTWOOD COMMUNITIES ,dated April, 2006 and subsequent revisions to plans' prepared by Cunha Engineering Inc and approved by the City Engineer and b)Landscaping, Irrigation, Joint Trench and Street Lighting Plans, Tract 7162, HEARTWOOD COMMUNITIES ,Pleasanton, California 3. Inspection. City shall inspect all of said work through an inspector employed by City at the cost and expense of Subdivider, and Subdivider shall pay City the cost of such inspection as fixed by Ordinance. The City Engineer has tentatively fixed the inspection costs due upon execution of this agreement as follows: $40,940.00 4. Soils ReQort. Subdivider shall provide a preliminary soils report as required by Section 66490 of the Government Code. Said data shall be compiled by a qualified soils testing engineer without expense to the City. 5. Plans. All of said work shall be done and materials furnished in strict accordance with the approved plans for said tract filed with the City Engineer, and in accordance with the standard specifications and details of the City of Pleasanton. It is further understood that the work and materials shall be under the supervision of the City Engineer, and performed and installed to his satisfaction. 6. Related Contracts and Proceedings. Any prior contracts between City and Subdivider and any prior approvals by Boards, Commissions or Council of City shall not be affected by the provisions of this Agreement unless specific modification is set forth herein. SUBDIVISION AGREEMENT TRACT NO. 7162, "HEARTWOOD COMMUNITIES " Page 2 of 8