DUBLIN SAN RAMON SERVICES DISTRICT FINANCING ADMINISTRATION

minimum of fifty (50) percent of such amounts shall be used to call and redeem LAVWMA Bonds at the first available call date. (iii) Third, the remaining Surplus, if any, shall be managed in accordance with the requirements of the Regional Agreement. (g) Retirement of Remaining Bonds. At such time as the balance of the Rate Stabilization Fund and that portion of the Debt Service Reserve Fund and Reserve Fund (as those funds are established in the Bond Documents for the LAVWMA Expansion Project) equal or exceed the amount necessary to redeem any outstanding LAVWMA Bonds, said bonds shall be redeemed unless otherwise agreed to by the parties. (h) Accounting -Rate Stabilization Fund. On or before August 31 of each year during the term hereof, District shall provide to City an accounting of funds in the Rate Stabilization Fund, which shall include, but not be limited to: (i) accrual and disbursements, (ii) investments, (iii) calculations for analysis of potential increases in the Regional Connection Fee pursuant to paragraphs 5, 6 and 7, (iv) disposition of any surpluses pursuant to paragraph 7 (f), and (v) any advances from or repayment to funds derived from Regional Service Charges. 8. Provisions Relating to Regional Agreement. In order to secure the WW'1"P Stage 4 Expansion Project Bonds and the LAVWMA Bonds, District and City hereby agree, for the benefit of the Trustee and the holders of the VWVfP Stage 4 Expansion Project Bonds and the LAVWMA Bonds as follows: [a] Termination. District and City hereby surrender their right to terminate the Regional Agreement pursuant to paragraph 18 thereof, unless and until the VWVfP Stage 4 Expansion Project Bonds and LAVWMA Bonds are discharged; provided, however, that if both City and District decide to have another public agency (the "Regional Agency") assume responsibility for operation of the Agmt-a1 15 f/sh/sh/DSRSD DES:r 12/S~OOr