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COST SHARING AGREEMENT ,— <br />SOUTHEAST WATER PURIFICATION PLANT <br />(RESTATED AND AMENDED) <br />THIS COST SHARING AGREEMENT for the Southeast Water Purification Plant is made <br />on the date of the City of Houston countersignature by and between the CITY OF HOUSTON <br />("Managing Participant") and GULF COAST WATER AUTHORITY (CITY OF GALVESTON, <br />CITY OF LEAGUE CITY), CLEAR LAKE CITY WATER AUTHORITY (THE CITY OF <br />NASSAU BAY), CLEAR BROOK CITY MUNICIPAL UTILITY DISTRICT, THE <br />LAPORTE AREA WATER AUTHORITY, HARRIS COUNTY MUNICIPAL UTILITY <br />DISTRICT NO.55, THE CITY OF PASADENA, THE CITY OF SOUTH HOUSTON, THE <br />CITY OF WEBSTER, THE CITY OF FRIENDSWOOD, and BAYBROOK MUNICIPAL <br />UTILITY DISTRICT NO. 1 ("Participants"). <br />RECITALS <br />WHEREAS, the Participants entered into various Contracts with the Managing Participant <br />for cost sharing in the construction and operation of the Southeast Water Purification Plant ("Plant"), <br />which had a production capacity of 80 million gallons of water per day (MGD); and <br />WHEREAS, the Participants are agreeable to cost sharing in certain modifications to the <br />Plant such that the production capacity will be increased to 120 MGD; <br />WHEREAS, the Participants are agreeable to standardize their relationships to one another <br />as well as the Managing Participant in one Agreement, which will supersede their existing <br />agreements; and <br />AAEWB10975.RV1 February 9. 2000 <br />L.D. File No. 90-99146-01 <br />