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SECTION 3. WATER STANDARDS AND CONSTRUCTION 1. Lino Lakes and Centerville agree that they shall exercise reasonable care to prevent toxic or harmful substances from contaminating the water supply of either party. Each city's water supply shall provide clean, safe, potable water. On a yearly basis, each city shall supply the other city with copies of yearly analytical test data from the Minnesota Department of Health, Division of Environmental health. In addition, on a yearly basis, each city shall supply test results from a recognized testing lab, whose analyses were performed by EPA or other recognized standard procedures. There shall be results provided for hardness, manganese, iron, and volatile organics. If either city allows volatile organics to be discharged into the water system, such items shall be eliminated by the responsible city. Failure to comply with this section shall be grounds for immediate termination of the water exchange system. 2. The location of connection of the water system of Centerville with the water system of Lino Lakes is designated as the intersection of 20th Avenue and Cedar Street. In the event either party feels the expansion of the water system within the city's boundaries will adversely impact its ability to supply water to its residents, it may elect to terminate this Agreement upon three (3) years written notice. Lino Lakes shall waive any permit application or fee for work in existing utility easements or on the proposed connection. 3. All watermain construction within Centerville or Lino Lakes shall meet the most recent City Engineers Association of Minnesota "Standard Utilities Specifications for Watermain and Service Line Installation and Sanitary Sewer and Storm Installation." Neither party shall substantially change the specifications for any parts of the water system which would be interconnected between the cities without the notification of the other. SECTION 4 INDEMNIFICATION Each party agrees to indemnify the other and save the other harmless from any and all claims or demands for damages arising out of or which may result from the water supply pursuant to this Agreement, and from the use, installation, maintenance, and repair of its facilities as set forth in this Agreement. SECTION 5. TERMINATION In addition to the termination provisions in Section 3, either city shall have the right to cancel this Agreement on account of any violation of the terms and conditions of this Agreement by the other city by first giving thirty (30) days written notice to the other party of such violation and a failure to correct the violation within said thirty (30) day period of time. Either city shall have the right to cancel and annul this Agreement, 3