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<br />expressly acknowledged by the Parties, the Canyon Regional Water Authority ("CRW A"), the <br />City of Kyle (Kyle"), the City of Lockhart ("Lockhart"), and the City of San Marcos ("San <br />Marcos") (collectively, the "Parties") agree to amend the Agreement as follows: <br /> <br />A. The Parties agree to amend Sections 1.2, 1.3 and 1.4 of the Agreement as follows <br />(added text is underlined; deleted text is shown by overstrike): <br /> <br />1.2 Study Scope and Phases. <br /> <br />A. The Parties approve and agree to the scope of work in Phase 1 of the Study as <br /> <br />more fully described in the attached memo from the Consultant to Laurie <br /> <br />Anderson dated September 6, 2005, titled "Summary of Interim Activities" by-the <br /> <br />scope of work attached to this Amendment as l\.ttachment "A". The Parties also <br /> <br />agree as to the general scope of Phase 2 and Phase 3 of the Study as described in <br /> <br />Attachment "A". <br /> <br />B. The Parties understand and agree that upon completion of the Interim <br />Activities Phase I of the Study, the Consultant will be required to provide a report <br />to the Parties, and a proposed detailed scope of work and cost estimate for Phase 2 <br /> <br />of the Study. CRW A will transmit this Phase 2 scope of work and cost estimate to <br />all Parties for comment. Upon finalization of the Phase 2 scope of work CRW A <br />will provide notice to the Parties, with a deadline for opting out of participation in <br />Phase 2. If a Party wishes to opt out of participating in Phase 2, it must indicate <br />this in writing to CR W A by the deadline. A Party will be bound to participate in <br />and contribute to Phase 2 of the Study if the Party does not elect to opt out by the <br />deadline. <br /> <br />C. The Parties understand and agree that upon completion of Phase 2 of the <br />Study, the Consultant will be required to provide a report to the Parties, and a <br />proposed detailed scope of work and cost estimate for Phase 3 of the Study for <br />approval by the Parties. CRWA will call a meeting of the Parties' representatives <br />to discuss the methodology for completing Phase 3 of the Study. The scope of <br />work and cost participation by the Parties in Phase 3 will be agreed to as an <br /> <br />2 <br />