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AGREEMENT <br />NOW, THEREFORE, in consideration of the foregoing recitals and the representations, <br />warranties, covenants, and agreements contained in this Agreement and for other good and <br />valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, the <br />Parties hereby agree to the following terms and conditions. <br />1. Declaration of a Metropolitan Allocation <br />Should Metropolitan's Board of Directors take action to declare an allocation and set an <br />allocation amount to be in effect ("Allocation Period") under its Water Supply Allocation Plan, <br />OCWD and MWDOC will confer with MWDOC's member retail water agencies that pump <br />water from the Orange County Groundwater Basin, and Anaheim, Fullerton, and Santa Ana <br />(hereinafter the "Groundwater Producers"). The purpose of this consultation will be, among <br />other things, for OCWD to discuss the amount of SARCCUP Water it has in storage and to <br />obtain information regarding the Groundwater Producers' need for Extraordinary Supply from <br />the SARCCUP program to comply with Metropolitan's imported water allocation. <br />2. Pumping of Stored SARCCUP Water <br />A. Based upon the consultation with the Groundwater Producers and MWDOC, and <br />prior to the commencement of Metropolitan's Allocation Period, OCWD may act to <br />incrementally increase its groundwater Basin Production Percentage (hereinafter `BPP") to <br />incentivize the pumping of SARCCUP Water in storage by the Groundwater Producers. OCWD <br />may also incentivize additional pumping of SARCCUP Water by the Groundwater Producers <br />through other basin management tools authorized under the OCWD Act, including, but not <br />limited to, the use of the Basin Equity Assessment, production limitations, and surcharges. <br />AO-5296 6 <br />