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NOW, THEREFORE, the parties, in consideration of the mutual covenants and conditions set forth herein and the substantial public benefits to be derived therefrom, do hereby agree as follows: 1. Grant of Conservation Easement. Owner, as grantor, hereby grants a conservation easement to the Town of Los Altos Hills, a municipal corporation, County of Santa Clara, State of California, over the real property described and shown as Exhibits B-1 and BB=2, attached hereto (the "Property"), to have and to hold said conservation easement for the term and for the purposes and subject to the conditions, covenants and exceptions described herein. 2. Statutory Authorization. This Agreement and grant of conservation easement are made and entered into pursuant to Civil Code Sections 815 through 816 and Chapter 6.6 commencing with section (51070) of Part 1, Division 1, Title 5 of the Government Code. This Agreement is subject to all of the provisions of said sections and chapter including any amendments thereto which may hereafter be enacted. 3. Restriction on Use of Property. During the term of this Agreement and the conservation easement granted herein, the Property shall not be used for any purpose other than a conservation easement and those uses related to or compatible therewith. Owners.,, for the direct benefit of the Property described,herein, hereby declares that the Property shall be subject to restrictive covenants running with the land which shall be binding upon all subsequent grantees.. Said restrictive covenants shall be: a. against the right of Owner to construct any improvements on or within the Property except for public and private utilities easements, paths dedicated to the Town, and an approved septic system, provided these reserved exceptions shall be consistent with the purposes of law and shall not permit any action which will be incompatible with maintaining the preserving the natural or scenic character of the land; and b. against the extraction of natural resources or other activities which may destroy the unique physical and scenic characteristic of the land; and C. against the grading of land otherthan attendant to permitted uses; and d. against the cutting of vegetation, except as may be required for fire prevention, thinning, elimination of diseased growth, and similar measures; and e. against any plantings other than native vegetation; and f. against the erection of structures, other than lawful fences. The City Council of the Town may authorize exceptions to the foregoing restrictive covenants, provided such exceptions are consistent with the purposes of law and not incompatible with maintaining and preserving the natural character of the land. N:\DATA\Clients\L\LAH\Projects\Garretticonserv.eas