EXHIBIT 12-G

DRAFT

Proposed Conditions of Approval

Variance to Group II for 484 Washington, Monterey, CA

March 17, 2014

1. Property Owner and Tenant(s) agree that compliance with these Conditions of Approval shall be required to continue operation of 2,277 square-feet (sf) of the 7,990 sf building (Site) as a Group II water use. Failure to adhere to these conditions or failure to maintain water use at the Site at or below 0.856 acre-foot per year shall be just cause to require a Water Permit from MPWMD for a Change in Use from Group II (Deli) to Group III (Restaurant).

2. In the event the requirement to obtain a Water Permit for failure to adhere to the Conditions of Approval is enforced, the District shall issue a Water Permit for a Change in Use with a maximum of 23 seats, unless additional water is authorized from the City of Monterey.

3. Property Owner agrees to authorize the following deed restrictions to be recorded on the title of the property:

a. Recordation of Notice and Deed Restriction Regarding Limitation on Use of Water on a Property (including these Conditions of Approval), and

b. Notice and Deed Restriction Provide Public Access to Water Use Data.

4. China and glassware may be used to serve beverages.

5. Take-out orders must be in disposable packaging.

6. Hot food, liquid food (e.g. pasta and soups), and food with high moisture content (e.g. salads with dressings) may be served on china.

7. All other food shall be served on disposable plates or in baskets.

8. Silverware may be utilized.

9. Service is not restricted to counter ordering.

10. Pizza shall be served on paper-wrapped paddles.

11. These Conditions of Approval shall be binding on future tenants.

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