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staff shall meet and confirm that acceptance of the specific grant or loan for this project will be recommended to DERWA and its members. 3. Cost Share (Planning Phase): DSRSD, EBMUD, and Pleasanton agree to share the costs incurred or to be incurred in pursuing this state funding and federal funding for the Project in accordance with the Benefit Allocation. 4. Grant Allocation (Capital Costs): DSRSD, EBMUD, and Pleasanton agree to allocate state funding and federal funding secured for the Project to the Project's capital costs incurred or to be incurred in accordance with the Benefit Allocation. The Parties understand that, although each will receive a defined share of the benefits of state funding or federal funding according to the Benefit Allocation, each Party will be responsible to fund a share of the Project's actual capital costs in the manner set forth in the DERWA's approved FY18 Budget, which share may differ from the defined Benefit Allocation. 5. Grant Execution and Administration (Federal Funding Sources): DSRSD will enter into and administer the federal grant agreement on behalf of the Parties. Grant administration costs will be allocated in accordance with the Benefit Allocation. The parties further agree that should additional Title XVI and/or WI1N Act funding be secured for the Project, the additional funding will be allocated in accordance with the Benefit Allocation. 6. Grant Execution and Administration (State Funding Sources): DERWA will enter into the state grant or loan agreements on behalf of the Parties, and will delegate to DSRSD responsibility for administering the grant or loans. DSRSD hereby agrees to administer the state grant or loan agreement on behalf of the Parties. Grant administration costs will be shared in accordance with the Benefit Allocation. 7. Benefit Allocation Adjustments: Following final completion of the Project, the Parties shall review the final Project cost and system capacity and, if necessary, may make adjustments to the Benefit Allocation to reflect actual costs and capacity, resulting in a revised allocation (Revised Benefit Allocation). The Parties agree to meet and confer in good faith to determine whether adjustments to the estimated Benefit Allocation are necessary and, if so, whether and how to apportion the project costs, system capacity, and grant allocation to reflect actual costs and capacity in a manner consistent with the intent of this Allocation Agreement. 8. Future Federal and State Funding Opportunities: Pursuant to their existing agreements, management staff of DSRSD, EBMUD, and Pleasanton hereby agree to meet to discuss the pursuit of additional future state funding and federal funding opportunities for the DERWA Project. Page 3 of 5