Loren F. Paullus and Donna Paullus - Page 15

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          drainage systems, and sanitary sewers.  Ridgemark and San Benito            
          County agreed that Ridgemark would be contractually liable to               
          complete the enumerated improvements after the issuance of the              
          final map.  On September 23, 1988, Ridgemark notified DRE that as           
          subdivider of unit 10, it would grant nonexclusive easements to             
          certain streets to the owners of the lots in unit 10.                       
               On September 26, 1988, Ridgemark entered into a Subdivision            
          Services Agreement with Bill Vierra & Associates, Inc. (Vierra).            
          In this agreement, Ridgemark agreed to be represented by Vierra             
          in filing the Preliminary and Final Public Report applications              
          with DRE in connection with “Ridgemark Estates No. 10".                     
               On the same date, Vierra filed an application for a Final              
          Public Report for Ridgemark Estates, unit 10.  Ridgemark is                 
          reflected as the subdivider, with Paullus as its representative.            
          The Notice of Intention for unit 10 reflects that it would be               
          used solely for single family residential homes.  However, the              
          lots in unit 10 would be sold as vacant lots.  The ultimate                 
          purchaser would be responsible for special fees charged to the              
          lot, such as school impact fees, fire and police department                 
          impact fees, and traffic mitigation impact fees, either when the            
          purchaser obtained a building permit or prior to occupancy.                 
          Finally, it was indicated that membership in Ridgemark Golf and             
          Country Club would be utilized as an inducement for the unit 10             
          lots.  On November 14, 1988, Ridgemark’s board of directors                 

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