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SECTION II TERMINATION A. Roseville shall have the right to terminate this contract in the event Arden Hills fails to pay charges to which Roseville is entitled under this contract; Roseville gives written notice to Arden Hills setting forth the default; and Arden Hills, within sixty (60) days, fails to redeem or demand arbitration pursuant to Section XI if the amount is disputed. B. At least one (1) year before the expiration of the term of this Agreement, the Parties will review the City's performance and costs and discuss in good faith whether to renew the Agreement for an additional five (5) year term, or terminate the contract by mutual consent. This shall be the term expiration procedure until the parties otherwise decide. SECTION III WATER SERVICE A. Roseville agrees to furnish and deliver to Arden Hills its water requirement on a demand basis. Demand basis is defined as a continuous supply of water for 24 hours a day at the Roseville line pressure. Arden Hills shall provide supplemental pumpage to meet pressure requirements for the Arden Hills system. B. Roseville agrees to supply Arden Hills with the water which shall be the same treated water supplied by St. Paul, and Roseville undertakes no responsibility for the quality of said water other than transmitting it to Arden Hills with reasonable care to prevent contamination and pollution. C. Roseville's obligation to supply water on a demand basis is qualified by the requirement that Arden Hills maintain peak hour storage with the necessary regulatory apparatus to permit each city to temporarily operate off the other's water tower during periods when one tower is out of service for painting, repairing, or similar reasons. Arden Hills shall maintain the construction requirement herein by submitting to Roseville any plans for modifications of the pump control system within Arden Hills which can be used to operate Roseville's booster pump control system. Such plans and specifications shall be deemed approved by Roseville unless written objection hereto is made by Roseville within 20 days after receipt of the same. D. During such periods that the meters measuring water flow to and from Arden Hills are inoperable or out of service for repair, the volume of water for which Arden Hills must pay Roseville shall be determined from an equal period just preceding and just following the temporary period. E. Arden Hills acknowledges and agrees that water service can be interrupted due to, among other things, main breaks, equipment failures, weather conditions, maintenance, repairs or improvements. Therefore, Roseville cannot guarantee that there will be no interruptions in service, or that any specific pressures or fluctuations in pressure will or will not occur. Arden Hills agrees that Roseville shall not be liable or responsible for any losses or damages, consequential or otherwise, resulting from any such interruptions in service or fluctuations in pressure. Page 2 of 12