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G. City is willing to extend its sewer and water services to the Property only if there are assurances that the Property will not be further subdivided without approval of the City, and any expansion of the Improvements on the Property will be subject to City review. NOW, THEREFORE, in exchange for mutual consideration, the receipt of which is hereby acknowledged, City and Owners hereby agree as follows: 1. Sewer and Water Service. Owners may connect to City's sewer and water systems prior to the City's annexation of the Property upon the satisfaction of the following conditions: (a) Owners shall pay the then-existing sewer and water connection fees charged by the Dublin San Ramon Services District (DSRSD) and Alameda County Flood Control and Water Conservation District — Zone 7 (Zone 7), as well as City connection fees, for connecting to the City sewer and water systems in accordance with applicable DSRSD, Zone 7, City ordinances and master fee schedules. (b) Owners shall pay all costs associated with extending the sewer and water system to serve the Property. (c) Owners shall pay the amount adopted by the City Council as determined by the City Engineer for Owners' pro rata share of the public sewer and water facility improvements which were constructed to serve the Happy Valley area, including the Property. (d) Owners shall pay a monthly sewer and water service charge as is now or may hereafter be imposed once connection to the sewer or water system is effected. (e) Because the City is required to apply to LAFCO for this extension, Owners shall pay the processing fees to LAFCO. 2. Agreement to Annex. Owners consent to annex to the City of Pleasanton the Property at such time as City may require. This Agreement, State and County laws, and City ordinances and resolutions shall control the responsibilities of both parties at the time of annexation. Owners shall cooperate with City in the annexation of the Property, whether as part of a larger area or as part of a smaller area; Owners expressly waive the right to protest said annexation and shall agree to do no act calculated or tending to prevent, impede, or defeat the successful annexation of the properties. More specifically, by signing this Agreement, Owners acknowledge and agree that if any annexation is subject to an election, the Owners deem that their votes are counted as votes in favor of annexation if at the time of the election a road that is intended to take golf Page 2 of 4