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"System Water" means water supplies developed by Metropolitan and delivered to the <br />Purchaser through the System or other means (e.g. conjunctive use storage). <br />"Term" means the term of this Purchase Order as specified above. <br />"Tier 1 Annual Maximum" means an amount equal to 90% of the Base Firm Demand. <br />"Tier 1 Supply Rate" means Metropolitan's per-acre-foot Tier 1 Supply Rate, as <br />determined from time to time by Metropolitan's Board of Directors. The initial Tier 1 Rate is <br />$73/AF. <br />"Tier 2 Supply Rate" means Metropolitan's per-acre-foot Tier 2 Supply Rate, as <br />determined from time to time by Metropolitan's Board of Directors. The initial Tier 2 Rate is <br />$154/AF. <br />"Water Surplus and Drought Management Plan (WSDM)" means Metropolitan's <br />policy and procedures for managing supplies and drought conditions as adopted by the Board <br />from time to time. <br />-5-