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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unenforceable by final unappealable order or judgment by a court or tribunal of competent jurisdiction for any reason,then the City may terminate this Agreement and shall have no further obligations under this Agreement for provision of service to that portion of any Developer's Tract or District for which the LUE fees have not been paid, or for which the City is required to refund any portion of the fees paid. In such an event, the City shall not be considered at default; however, the Developers shall be entitled to the remedies under this Agreement that are available to the Developers in the event of a Major Default. Neither the Developers, jointly or singularly, or the Districts, jointly or singularly, may take any action to directly or indirectly challenge or seek to invalidate the LUE Fees in any court or tribunal of competent jurisdiction. 2. Annual Wastewater Projections. Unless the City says otherwise, each Developer shall provide the City with a projected Wastewater Services LUE demand for such Developer's Tract for such calendar year on or before each February 1St until the Wastewater Treatment Plant has been constructed and is operational. 3. City's CCN Application. The Developers 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 CCN expansion application to provide Wastewater Services to the Customers pursuant to this Agreement and additional lands to which the City elects to provide Wastewater Services. Notwithstanding the foregoing, in the event a Tract is included in the City's CCN and the City defaults as set forth in this Agreement, the applicable remedy for which is the termination or partial termination of this Agreement as to such Tract, or a portion thereof, the City will decertify such Tract, or applicable portion thereof,from its CCN to enable the Districts to provide Wastewater utility service to their respective Tracts. In such event,the City shall submit an application to the Public Utilities Commission ("PUC") for decertification no later than thirty (30) days following such default and diligently pursue approval thereof. 4. Retail Wastewater Rates. Because the Tracts and Districts are not within the City's corporate limits, the Developers and Districts agree to pay or cause to be paid to the City the wastewater rates paid by residents or businesses receiving City utilities in similarly situated out-of-city developments ("Out-of-City Rates"), which does not include any special Out-of-City Rates that are agreed to by the City for another development due to some special benefit given by that development to the City. Notwithstanding anything to the contrary, the Developers and Districts agree they will not protest the Out-of-City Rates if such rates do not exceed one-hundred and twenty-five (125%) percent of the City's in-city utility rates. Regional Wastewater Services & Facilities Cost Sharing Agreement Res. 2024-78R Page 23 of 47