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The re-aligned S. Manthey°shall be designed such that the eastern edge of the new road shall not encroach materially onto the KSC property. Once Manthey Road is re-aligned, the City will transfer.ownership to KSC through a dedication the old section of Manthey Road north of the "T" intersection to KSC for its use for site access.!At such time as Manthey Road is relocated to intersect Roth Road at or near the west end of the Project, KSC or successor(s) in interest, must terminate access from old Manthey onto Roth Road in accordance with Caltrans Standards. Parties agree that City'is not responsible for any County fees.- The City is in support of KSC receiving credit from the County toward the traffic mitigation fees it requires of KSC. Kelley wilt have to pay any Regional Traffic Impact Fees and Local Traffic Impact Fees(paid at building permit issuance). 3. Ci Dismissal of Appeal.The City agrees to file a written dismissal of its Appeal within S business days of the Effective Date of this Agreement._ Parties agree, however, that the City has the right to an injunctive order and other appropriate court order(s) necessary to stop all development of KSC and other activities under the Use Permit if Kelley or-a successor in interest fails to file and diligently pursue all necessary applications to annex the Subject Property into the City limits. If the City is held by a Court of competent jurisdiction to have breached this settlement Agreement or in the event that the annexation, rezoning and /or use permit is proposed by Kelley as contemplated herein but not approved by LAFCO or the City,the Owner or successor in interest has the option to withdraw its annexation application and, in such event, the Use Permit approved by the County shall remain in effect with the right of Kelley or their successors to implement the project in accordance with its provisions and conditions. 4. Kelley Aerees to Annex the 5ubiect Property to the City. Kelley agrees to file and pursue an application for annexation.with the City of Lathrop and San Joaquin County Local Area Formation Commission ("LAFCO") to seek annexation of the.Subject Property into the City of Lathrop. Kelley agrees to pursue said applications diligently and in good faith. S. City Agrees to Cooperate with Kelley's Efforts. The City agrees to cooperate with Kelley's efforts to.annex the Subject Property to the City and agrees to process any such completed applications diligently and without delay. Furthermore, City agrees to process any completed applications submitted by Kelley for City pre-zoning, conditional use permit(s), and building permit(s) simultaneously with the processing of the above-referenced annexation application but such approvals shall be subject to and conditioned on the approval of the annexation. City agrees to use its best efforts to process such applications to completion within seven months of the date they are deemed complete. If requested by Kelley, City agrees to support its application to ABC for the issuance of appropriate liquor licenses for the Project's convenience store and restaurant. 3