Common use of ASSURANCES AND CAVEATS Clause in Contracts

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water Forum

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement Agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort.the 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section section of this Water Forum Agreement. Two particularly important assurances are the updated Lower lower American River Flow Standard flow standard and Upstream upstream American River Diversion Agreementsdiversion agreements. All signatories agree they will recommend to the State Water Resources Control Board (SWRCB) an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower lower American River. The recommendation will include requirements for Reclamation the U.S. Bureau of Reclamation releases to the Lower lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific AgreementPSA. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower lower American River standard will be consistent with: and Implementation of the Improved Pattern improved pattern of Fishery Flow Releases fishery flow releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with Reclamation the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that Will will Receive Water Forum Support Upon Signing the The Water Forum Agreement,” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern improved pattern of Fishery Flow Releasesfishery flow releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management ElementHME (5) Support for the Updated Lower updated lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific AgreementPSA. and b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, “Agreement “ Major Water Supply Projects that will Receive W ater Forum Support Upon Signing the The Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality ActAct (CEQA), and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs Environmental Impact Reports (EIRs) and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with Reclamation the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement PSA into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and Reclamation the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement PSA for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower lower American River standard. The schedule for obtaining the updated standard is in Chapter 4, Section I Section Four, I.I, of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Devicetemperature control device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water Forum

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore Therefore, all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower lower American River Flow Standard flow standard and Upstream upstream American River Diversion Agreementsdiversion agreements. All signatories agree they will recommend to the State Water Resources Control Board (SWRCB) an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower lower American River. The recommendation will include requirements for Reclamation the U.S. Bureau of Reclamation releases to the Lower lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific AgreementPSA. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower lower American River standard will be consistent with: and Implementation of the Improved Pattern improved pattern of Fishery Flow Releases fishery flow releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with Reclamation the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that Will will Receive Water Forum Support Upon Signing the The Water Forum Agreement,” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern improved pattern of Fishery Flow Releasesfishery flow releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower updated lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. andPSA. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that will Receive Support Water Forum S upport Upon Signing the The Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their its interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality ActCEQA, and where applicable, the National Environmental Policy Act, federal Federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their its project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement PSA into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement PSA for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower lower American River standard. The schedule for obtaining the updated standard is in Chapter 4, Section I Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Devicetemperature control device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section section of this Water Forum Agreement. Two particularly important assurances are the updated Lower lower American River Flow Standard flow standard and Upstream upstream American River Diversion Agreementsdiversion agreements. All signatories agree they will recommend to the State Water Resources Control Board (SWRCB) an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower lower American River. The recommendation will include requirements for Reclamation the U.S. Bureau of Reclamation releases to the Lower lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific AgreementPSA. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower lower American River standard will be consistent with: and Implementation of the Improved Pattern improved pattern of Fishery Flow Releases fishery flow releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with Reclamation the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that Will will Receive Water Forum Support Upon Signing the The Water Forum Agreement,” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern improved pattern of Fishery Flow Releasesfishery flow releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management ElementHME (5) Support for the Updated Lower updated lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. andPSA. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, “Agreement “ Major Water Supply Projects that will Receive W ater Forum Support Upon Signing the The Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality ActAct (CEQA), and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs Environmental Impact Reports (EIRs) and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with Reclamation the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement PSA into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and Reclamation the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement PSA for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower lower American River standard. The schedule for obtaining the updated standard is in Chapter 4, Section I Section Four, I.I, of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Devicetemperature control device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower lower American River Flow Standard flow standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board (SWRCB) an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower lower American River. The recommendation will include requirements for the U.S. Bureau of Reclamation (Reclamation) releases to the Lower lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the CityC ity’s Purveyor Specific AgreementPSA. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower lower American River standard will be consistent with: and Implementation of the Improved Pattern improved pattern of Fishery Flow Releases fishery flow releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau Reclamation that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I.I, of the Water Forum Agreement, “Major Water Supply Projects water supply projects that Will Receive Support Upon Signing will receive support upon signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern improved pattern of Fishery Flow Releasesfishery flow releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management ElementHME (5) Support for the Updated Lower updated lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. andPSA. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I.I, of the Water Forum Agreement, “Major Water Supply Projects water supply projects that will Receive Support Upon Signing receive support upon signing the Water W ater Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality ActAct (CEQA), and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs Environmental Impact Reports (EIRs) and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement PSA into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement PSA for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower lower American River standard. The schedule for obtaining the updated standard is in Section Four, I.I, of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Devicetemperature control device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section section of this Water Forum Agreement. Two particularly important assurances are the updated Lower lower American River Flow Standard flow standard and Upstream upstream American River Diversion Agreementsdiversion agreements. All signatories agree they will recommend to the State Water Resources Control Board (SWRCB) an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower lower American River. The recommendation will include requirements for Reclamation the U.S. Bureau of Reclamation releases to the Lower lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific AgreementPSA. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower lower American River standard will be consistent with: and Implementation of the Improved Pattern improved pattern of Fishery Flow Releases fishery flow releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with Reclamation the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that Will will Receive Water Forum Support Upon Signing the The Water Forum Agreement,” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern improved pattern of Fishery Flow Releasesfishery flow releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management ElementHME (5) Support for the Updated Lower updated lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. andPSA. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on Table 3.1 the chart in Section Three, I., of the Water Forum Agreement, Agreement “Major Water Supply Projects that will Receive Water Forum Support Upon Signing the The Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality ActAct (CEQA), and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs Environmental Impact Reports (EIRs) and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with Reclamation the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement PSA into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and Reclamation the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement PSA for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower lower American River standard. The schedule for obtaining the updated standard is in Chapter 4, Section I Section Four, I.I, of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Devicetemperature control device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water Forum

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement Agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water Forum

ASSURANCES AND CAVEATS. Because the Water Forum Agreement is a comprehensive set of linked elements, it is absolutely essential that adequate assurances be secured for every element. In an agreement that will extend over three decades, the timing of these assurances is critical. Full implementation of all seven elements cannot occur simultaneously. Therefore all signatories agree with the provisions in the Assurances and Caveats Section of this Water Forum Agreement. Two particularly important assurances are the updated Lower American River Flow Standard and Upstream American River Diversion Agreements. All signatories agree they will recommend to the State Water Resources Control Board an updated American River flow standard and updated Declaration of Full Appropriation to protect the fishery, wildlife, recreational and aesthetic values of the Lower American River. The recommendation will include requirements for U.S. Bureau of Reclamation releases to the Lower American River. In addition, the City of Sacramento’s Xxxxxxxxx diversion will be required to comply with the diversion limitations of the City’s Purveyor Specific Agreement. The Water Forum Agreement also includes agreed upon dry year reductions by purveyors upstream of Nimbus Dam. The recommendation for an updated Lower American River standard will be consistent with: and Implementation of the Improved Pattern of Fishery Flow Releases which optimizes the release of water for the fisheries. The recommendation will also address related issues such as principles to guide water management in the driest years, flexibility in the standard to allow adaptive management, and amending the existing “Declaration of Full Appropriation for the American River.” Purveyors signatory to the Water Forum Agreement who divert from upstream of Nimbus Dam agree they will enter into contract with the Bureau that will provide assurances that the upstream diverters will divert only the agreed upon amounts, which include provisions for reductions in dry year and/or other equivalent measures. In order to have a durable agreement it is necessary to include the following caveats. These are statements describing actions or conditions that must exist for the Agreement agreement to be operative. 1. As specified below, each purveyor’s commitment to implementing all provisions of the Water Forum Agreement is contingent on it successfully obtaining its water supply entitlements and facilities. a. If a purveyor receives support from the other signatories to the Agreement for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that Will Receive Support Upon Signing the Water Forum Agreement” and if it receives all necessary approvals for some or all of those facilities and entitlements, then the purveyor will fully support and participate in the following provisions of the Water Forum Agreement: (1) Support for the Improved Pattern of Fishery Flow Releases (2) Water Forum Successor Effort (3) Water Conservation Element (4) Lower American River Habitat Management Element (5) Support for the Updated Lower American River flow standard (6) Restriction of diversions or implementation of other actions to reduce diversion impacts in drier years as specified in its Purveyor Specific Agreement. and. b. If a purveyor is not successful in obtaining all necessary approvals for all of its facilities and entitlements as shown on the chart in Section Three, I., of the Water Forum Agreement, “Major Water Supply Projects that will Receive Support Upon Signing the Water Forum Agreement,” that would constitute a changed condition that would be considered by the Water Forum Successor Effort. 2. All signatories agree that business, citizens, and environmental signatories’ obligation to support, and where specified, implement all provisions of the Water Forum Agreement is contingent on implementation of those provisions of the Agreement agreement that meet their interests. 3. A stakeholder’s support for water supply entitlements and facilities is contingent on: a. Project-specific compliance with the California Environmental Quality Act, and where applicable, the National Environmental Policy Act, federal Endangered Species Act and California Endangered Species Act. b. Purveyors’ commitment in their project-specific EIRs and CEQA findings to: all seven elements of the Water Forum Agreement; support for updating the Lower American River flow standard; commitment by those purveyors that divert from upstream of Nimbus Dam to entering into signed diversion agreements with the U.S. Bureau of Reclamation; commitment by the City of Sacramento to inclusion of the terms of the diversion provisions of its Purveyor Specific Agreement into its water rights. c. Signed diversion agreements between purveyors that divert upstream of Nimbus Dam and the U.S. Bureau of Reclamation. Other signatories to the Water Forum Agreement shall be third party beneficiaries to the diversion agreements solely for the purpose of seeking specific performance of the diversion agreements relating to reductions in surface water deliveries and/or diversions if Reclamation fails to enforce any of those provisions. The status of a signatory to the Water Forum Agreement as a third party beneficiary to the diversion agreements is dependent on that signatory complying with all the terms of the Water Forum Agreement, including support for the purveyor specific agreement for the purveyor’s project. This is not to intend to create any other third party beneficiaries to the diversion agreements, and expressly denies the creation of any third party beneficiary rights hereunder for any other person or entity. d. Adequate progress on the updated Lower American River standard. The schedule for obtaining the updated standard is in Section Four, I., of the Water Forum Agreement. e. Adequate progress in construction of the Temperature Control Device. f. Adequate progress in addressing the Sacramento River and Bay-Delta conditions associated with implementation of the Water Forum Agreement. 4. Environmental stakeholders’ support for facilities and entitlements is dependent upon the future environmental conditions in the Lower American River being substantially equivalent to or better than the conditions projected in the Water Forum EIR. If the future environmental conditions in Lower American River environment are significantly worse than the conditions projected in the EIR, this would constitute a changed condition that would be considered by the Water Forum Successor Effort. Significant new information on the needs of the Lower American River fisheries, which was not known at the time of execution of the Water ForumForum Agreement, would also constitute a changed condition that would be considered by the Water Forum Successor Effort.