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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 systems to serve the Property, including any pro rata share cost of the water main line system, and said system shall be designed in accordance with City standards and subject to City approval. c) Owners shall pay an amount computed in accordance with the applicable City formula for connection to sewer and water facility improvements subject to a mutual benefit district, reimbursement agreement, or any other agreement. (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 Property. 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 a vote in favor of annexation if at the time of the election a road that is intended to take golf course traffic off Alisal Street, Sycamore Road, and Happy Valley Road is under construction or has been constructed. 3. No Further Subdivision/Service to only One Home. Owners shall not subdivide the Property without the prior approval of the City. As the Owners have already received approval from the County of Alameda to subdivide the Property into two parcels, Owners acknowledge that City is only providing water and sewer service to one (1) parcel, and the City is not providing water or sewer service to the second parcel. 4. Design Review Approval. In the event that Owners shall redevelop the Property, Owners shall submit plans for the redevelopment of the Property to the City for the City's review and approval. Assuming that the Property is still in the unincorporated area of Alameda County at the time the Owners intend to apply for a building permit for the Property, Owners shall neither apply for nor obtain a building permit from the County of Alameda unless and until City has approved the design of the plans for any proposed redevelopment on the Property. 1