NEW CITIES DEVELOPMENT - FUNDING AGREEMENT

which was appealed to the City Council. On April 15, 2003, the City Council has denied this appeal, extended the time to file a final subdivision map under Condition 96 to September 15, 2003 and extended the time to file a final subdivision map under VTM 7193 to September 15, 2003. G. The HVSP contemplates the City's development of a golf course on property within the HVSPA and because development of the golf course property may impact wetlands and wildlife habitat, City has applied to various state and federal regulatory agencies for permits that would allow the golf course's development. City previously requested Developer to participate financially for the consultants' further efforts. Developer is willing, pursuant to this Agreement, to pay a specified dollar sum for this purpose. H. In addition, City previously requested Developer to participate financially as a funding developer in certain infrastructure improvements for the benefit of existing residents in the HVSPA. Developer is willing, pursuant to the terms of this Agreement, to pay a specified dollar sum for this purpose. NOW, THEREFORE, in consideration of the mutual promises and agreements of the parties herein, City and Developer has agreed as follows: 1. Contribution to HVSP Infrastructure: Developer shall contribute to the City the sum of Five Hundred Thousand No 100ths/Dollars ($500,000.00) toward the bypass road contemplated by the HVSP, which sum shall be allocated and expended in the City's discretion. Developer's payment of this sum shall occur at the time of approval of the final map for PUD 97-12-1M and VTM 7193. 2. Contribution for Regulatory Permits: Developer further agrees to fund $81,165.00, as its agreed share of the costs for the City's team of consultants with respect to the City's proposed golf course within the HVSPA. Developer shall pay this contribution at the time of approval of the final map for PUD 97-12-1M and VTM 7193. 3. Consideration: Developer's obligations to make the foregoing contributions and in consideration for and conditioned upon the following conditions: (a) Developer receiving from City an extension of the date for filing a final subdivision map under Condition 96 of the PUD 97-12-1M conditions to September 15, 2003; (b) Developer receiving from City an extension of the term of the vesting tentative map for the Project to September 15, 2003; (c) Developer receiving from City growth management approval for the Project, specifically providing that (i) it is designated a major project with 24 allocations for 2004 and 24 allocations for 2005, and (ii) any unutilized allocations for either of these years shall NCDG\35628\514233.2