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Item 10 Attachment # 2 Page 4 of I I 1.4 "Exempt Wells" means a well meeting the requirements of Section 711.20 of the EAA's rules. 1.5 "Groundwater Withdrawal Permit" means a permit issued by the EAA under Section 1.15(b) of the EAA Act authorizing the withdrawal of groundwater from the Aquifer. 1.6 "Initial Regular Permit" means a Groundwater Withdrawal Permit issued by the EAA under Section 1.16(d) of the EAA Act. 1.7 "Non- Contributing Participant" means the holder of an Initial Regular Permit or a Regular Permit, or the owner of an exempt well, who has not entered into an initial commitment contract with the EAA, but subsequently participates in the Conservation Program by implementing one or more of the conservation services, techniques or measures identified in Section 5.1.3.2 of the HCP, and has been determined by the Board, after consultation with the Regional Conservation Monitoring Committee, to have conserved Edwards groundwater in the previous calendar year. 1.8 "Permitted Edwards Groundwater Rights" means Initial Regular Permits or Regular Permits issued by the EAA for municipal use, industrial use, or Unrestricted Irrigation Groundwater pursuant to the EAA Act. 1.9 "Regional Conservation Monitoring Committee" or "Committee" means the committee established by the EAA pursuant to Section 5.1.3.1 of the HCP. 1.10 "Regular Permit" means a new permit, issued after August 12, 2008, resulting from a sale or amendment of an Initial Regular Permit, or the consolidation of two or more Initial Regular Permits. 1.11 "Trust Portion of the Permit" means the portion of the Permit transferred into the Groundwater Trust pursuant to Section 4.0(a), except as may have been subsequently released pursuant to Section 9.0. 2.0 Term 2.1 In General This Contract is effective and commences on January 1, 2013, (the Effective Date) and terminates on December 31, 2022 subject only to the provisions of Section 2.2. 2.2 Early Termination (a) This Contract may be terminated prior to the term stated in Section 2.1 due to decisions made pursuant to the Adaptive Management Process of the FMA2 only as follows: 2 For purposes of this Contract, "FMA" means the Funding and Management Agreement by and among the Edwards Aquifer Authority, the City of New Braunfels, the City of San Marcos, the City of San Antonio, acting by and through its San Antonio Water System Board of Trustees, and Texas State University — San Marcos to fund and 4of11 11212.03001/ MHED/ MISC -2/ 1 154963v. 9 Item 10