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JDK:bc: 10/10/88 <br />Agreement. Either party shall have the right to terminate <br />any extension to the initial term of this Agreement by <br />written notice to the other at least four (4) years prior to <br />the expiration of the initial term or any extension of this <br />Agreement. Except as provided in paragraph 1.6 and Section <br />Six hereinabove, this Agreement may only be amended or <br />modified by mutual agreement in writing of OCWD and RETAILER. <br />9.3 Limitation on Sales by OCWD: OCWD acknowledges and <br />agrees that, except as provided herein or with the prior <br />written consent of RETAILER, OCWD is not now and will not in <br />the future become a wholesale or retail seller of Project <br />Water within the service boundaries of RETAILER, and OCWD <br />further agrees that it will not use or contract with any <br />entity other than RETAILER for the purpose of selling and <br />distributing Project Water within the service boundaries of <br />RETAILER. <br />9.4 Basin Limitations: OCWD and RETAILER mutually <br />understand and agree that any and all Project Water delivered <br />and sold by OCWD hereunder shall not constitute either <br />"supplemental sources" or "groundwater supplies" for the <br />purpose of the annual establishment of basin groundwater <br />production requirements and limitations by OCWD pursuant to <br />Section 31.5 of the OCWD Act. Project Water is hereby <br />established as a separate class of water for the purposes of <br />Section 31.5 of the OCWD Act. <br />9.5 Conditions Precedent: The performance of this <br />Agreement is conditioned upon OCWD's being able to acquire <br />25B-30 <br />-28- <br />EXHIBIT 1 <br />