Res 2024-078 approving an agreement with Clint Jones, owner of Fleming Farms, Highlander S M Two, Rattler Ridge, LP., and JLBC 710 Investments, LLC, owner of Sedona South, to provide for the sharing of costs for the construction

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Discharge Permit is obtained and the Plant is constructed and in operation, in accordance with this Agreement. Once the City obtains the Discharge Permit, constructs the Plant, and places the Plant in operation, the City will ensure the Fleming Farms Discharge Permit, and all rights pertaining thereto, is terminated with the Commission. (c) The Parties further agree not to protest, cause any protests, or otherwise act or cause any actions that may be construed to prevent, frustrate, delay, or obstruct, the City's pursuit of an amendment to the Fleming Farms Discharge Permit to increase the wastewater treatment capacity under the Fleming Farms Discharge Permit to 0.82 MGD and changing the permitted discharge location to the anticipated Plant Site discharge point. 2. Highlander Discharge Permit and Rattler Discharge Permit. (a) Highlander Discharge Permit. Highlander shall retain the Highlander Discharge Permit until the permanent Plant is constructed and operational and providing continuous and adequate Wastewater Services to the Customers within the Highlander Tract and Hays-Guadalupe County Municipal Utility District No. 1. Highlander, however, agrees not to use the Highlander Discharge Permit unless (i) there is a Major Default (as herein defined) by the City and the City fails to cure in accordance with Article VI of this Agreement, or (ii) JLBC defaults in its obligation to Highlander to grant an easement or convey the Plant Site. Within thirty (30) days of the completion of construction of the permanent Plant and commencement of operation, Highlander agrees to submit necessary documentation to the TCEQ to terminate the Highlander Discharge Permit. Notwithstanding anything herein to the contrary, in the event JLBC and Highlander do not execute an easement agreement for the facilities and easements referenced herein within six months of the signing of this Agreement, Highlander shall have the right, in its sole discretion, to terminate its participation in this Agreement. Upon such termination, Highlander shall have no further obligations or liability under this Agreement or to any of the other parties of this Agreement. In the event Highlander elects to terminate this Agreement, (i) such termination shall not affect the rights, duties, or obligations of the remaining parties under the Agreement and the Agreement shall remain in full force and effect as to all other parties of the Agreement, (ii) all references, or provisions of the Agreement, pertaining to Highlander or Hays Guadalupe County Municipal Utility District No. 1 shall be deemed deleted from the Agreement, without the need for further amendment or consent from the remaining parties, and (iii) any provision of the Agreement purporting to survive termination of the Agreement shall not apply to Highlander or Hays Guadalupe County Municipal Utility District No. 1. Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 16 of 47