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NOW, THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Owners agree as follows: 1. Sanitary Sewer Service. Owners may connect the existing residence on the Property to the City's sanitary sewer system prior to the City' s annexation of the Property upon the satisfaction of all of the following conditions in this Section 1 and in this Agreement: (a) Owners shall pay applicable Dublin San Ramon Services District (DSRSD) and City sanitary sewer connection fees. (b) Owners shall connect to City sanitary sewer service in a manner consistent with City standards in the determination of the City Engineer or designee. (c) Owners shall abandon the septic system on the Property in accordance with the requirements of the Alameda County Department of Environmental Health, and any other regulatory agencies, and shall provide the City a copy of such County and/or other regulatory agency approval upon City request. (d) Owners shall pay a pro-rata share of future frontage improvements along the Property if the County of Alameda or City in the future undertake public street frontage improvements (including, but not limited to, curb, gutter/storm drain system, sidewalk, street lights, fire hydrants, etc.). (e) Owners acknowledge that Owners, via City as applicant, must receive approval from the Alameda County Local Agency Formation Commission (LAFCo), as well as pay all fees related to LAFCo for an application for the extension of sanitary sewer service to the Property. 2. Existing Water Service. The parties acknowledge that the Property has been connected to the City's water system since approximately 1983. 3. Agreement to Annex. Owners shall consent to annexation of the Property to the City of Pleasanton at such time as the 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: (a) any annexation is subject to an election, the Owners deem Owners' votes are counted as a vote in favor of annexation; or (b) Owners shall sign as consenting to any annexation application if annexation is for a smaller area. 4. No Further Subdivision. Owners shall not subdivide the Property without the prior approval of the City. Page 2 of 4