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A. The existing Kent Property shall be divided into two (2) separate parcels of approximately equal acreage. Parcel 1 is the parcel with the existing single-family residence and is reflected on the attached Exhibit "B" incorporated herein by this reference. Parcel 2 is the parcel which will be allowed to construct a new and separate single-family residence and is reflected on the attached Exhibit"B". B. Kent shall be required to apply for a building permit for Parcel 2 within thirty-six (36) months of August 24, 2004. If no building permit has been issued on or before the expiration of the thirty-six (36) months for Parcel 2, then the Grant of Variance shall expire and Parcel 1 and Parcel 2 as shown on Exhibit B shall merge unless the time set forth herein for applying for a building permit has been extended by the County prior to the expiration date. C. Neither Parcel 1 or 2 shall be sold, transferred or conveyed within a seven (7) year period from the issuance of the Variance except to a member of the Kent immediate family. D. Neither Parcel 1 or 2 shall be entitled to apply for or receive an entitlement for a second dwelling unit. 3. Runs with the Land. Kent and County intend that this Agreement and the covenants created herein shall constitute covenants running with the land, as defined in California Civil Code § 1462, so as to bind and benefit successors, heirs and assigns of the Parties. 4. Attorney's Fees. In the event of any controversy, claim or dispute relating to this instrument or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable expenses, attorney's fees and costs. 5. Arbitration of Dispute. Any dispute, controversy, or claim arising out of or relating to this Agreement, including any dispute relating to interpretation or performance of this Agreement, shall be resolved through arbitration under the auspices of the American Arbitration Association, which shall be in lieu of any form of litigation in any court, and the Parties specifically waive any right to a jury trial of any dispute between them. 6. Authority to Execute Agreement Each of the signatories to this Agreement represents and warrants that he/she possesses the requisite legal authority to enter into this Agreement on behalf of his/her respective entity. IN WITNESS WHEREOF,the parties hereto have executed this License Agreement as of the day and year first written above. Siai QU1N COUNTY. KENT: Orn las, Robert Kent , Board of Supervisors Ju K of 4