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NOW, THEREFORE, the Parties agree to amend the Agreement as follows: 1. Recital Letter "H" shall be removed in its entirety. 2. Paragraph 2 under the heading "COSTA MESA Rights and Duties" shall be removed in its entirety. 3. Except as expressly amended or modified by the terms of this Amendment No. 1, all terms of the Agreement shall remain in full force and effect. In the event of a conflict between the terms of this Amendment No. 1 and the Agreement, the terms of this Amendment No. 1 shall prevail and control. 4. The provisions of the Agreement, as amended, including the recitals, comprise all of the terms, conditions, agreements, and representations of the parties with respect to the subject matter hereof. This Amendment No. 1 may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument. 6. The responsibilities pursuant to Section 2 (Responsibilities of Santa Ana) of the Santa Ana Delhi Channel Diversion Project Agreement D15-013 shall apply to Costa Mesa for the segment of the Santa Ana Delhi forced main it is constructing under a separate contract. Once complete Costa Mesa shall provide a complete accounting of the construction costs and shall return to the City of Santa Ana all funds not expended. 7. Each party represents and warrants that the representative signing this Amendment No. 1 on its behalf has all right and authority to bind and commit that party to the terms and conditions of this Amendment No. 1. IN WITNESS WHEREOF, COSTA MESA has caused this Amendment No. 1 to be executed by its City Manager and attested by its Clerk, and SANTA ANA has caused this Agreement to be executed by its City Manager and attested by its Clerk, all thereunto duly authorized by the COSTA MESA City Council and the SANTA ANA City Council, respectively. Page 2 of 7