CALLAHAN - REIMBURSEMENT AGMT PIPELINE IMPROVEMENTS/OWNERSHIP TRANSFER Feb 2003

v REIMBURSEMENT AGREEMENT FOR PIPELINE IMPROVEMENTS AND OWNERSHIP TRASFER Ruby Hill Winery Complex THIS AGREEMENT ("Agreement") is entered into at Pleasanton, California, this 19 day of February 2003, by and between the City of Pleasanton, a municipal corporation ("City") and Callahan Properties ("Developer"). RECITALS A. Developer owner's property commonly known as Ruby Hill Winery Complex (the "Property"). B. The Developer has obtained approval for a development on 3.58 acres, consisting of a winery building, parking lot and driveways located at 1188 Vineyard Avenue, Pleasanton ("Project"). C. In connection with the development of the Property, the Developer has constructed, water system enhancement improvements as described in Exhibit A, attached hereto and incorporated herein by this reference ("Improvements"). The Improvements contain supplemental pipe size, which will benefit the City's water system. D. Pursuant to the Subdivision Map Act (Government code section 66410, et seq.), the Developer is entitled to reimbursement for that portion of the costs of the Improvements, including amounts attributable to interest and administration costs, in excess of the construction costs required for the Project ("Reimbursable Costs"). City agrees to reimburse costs to Developer as set forth herein. NOW, THEREFORE, in exchange for mutual consideration, the receipt of which is hereby acknowledged, the parties agreed as follows: Section 1. Improvements. The constructed improvements, financed by Developer benefit the City. Pursuant to sections 66486, et seq. of the Subdivision Map Act, Developer is entitled to recover the Reimbursable Costs of the Improvements from the City. The construction of the Improvements and the related work installed by Developer is generally the upsizing of a 10" waterline to a 12" waterline for approximately 550 linear feet within Property and is described more particularly in Exhibit A. Section 2. Reimbursable Costs The total cost for the construction of the Improvements is $7,000, inclusive of interest and administrative costs, as set forth more particularly in the attached Exhibit B.