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Water determination, the EAA will promptly prepare a one -year lease for the appropriate year that <br />is in accordance with the Lease of Permitted Edwards Groundwater Rights ( "Lease ") as set out in <br />in Exhibit D, attached hereto and incorporated herein for all purposes, that is based on the <br />Conserved Water determinations. No later than April 30th of each year during the term of this <br />Contract, the City and Texas State agree to execute the Lease and to promptly deliver such <br />executed Leases to the EAA. <br />5. Lease Term. The term of the Leases shall be annual and begin on the January 1" and <br />terminate on December 31 St of the year in which the Parties execute the Leases. The leased portion <br />of the Permits shall be governed in all respects by the terms and conditions of the Lease. Any <br />unleased portion of the Permits is not affected in any manner by the terms or conditions of this <br />Contract or the Leases. <br />6. Representations of the City and Texas State. The City and Texas State represent and <br />warrant that they have the legal authority to lease the Conserved Water portion of their respective <br />Permits to the EAA. The City and Texas State also represent and warrant that they have good and <br />clear legal title to the Conserved Water portion of the Permits, free and clear of liens or other <br />encumbrances, and no challenges have been made or threatened by third parties to the City's and <br />Texas State's claimed ownership of or rights in the Conserved Water portion of the Permits. <br />IV. PROJECT RESPONSIBILITIES: <br />1. The City agrees to construct the Project to extend the City's reclaimed water system to <br />serve Texas State's thermal plants and other end users as provided for in this Exhibit. <br />2. Texas State agrees to connect to the City's reclaimed water system at the appropriate <br />time for such connection as determined mutually by the City and Texas State. <br />V. PROJECT COMPLETION SCHEDULE: <br />All activities that are the subject of this Contract will be completed prior to December 31, 2018. <br />Request for Proposals /Contract Approval: <br />January 2015 — April 2015 <br />Preliminary Design/Permitting: <br />May 2015 — June 2016 <br />Project Design/Construction Documents: <br />March 2016 — February 2017 <br />Bidding/Award: <br />March 2017 — May 2017 <br />Construction: <br />June 2017 — February 2018 <br />A -3 <br />