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0 :4>L- : ~ 7"^ m ^;> ^ substantial Injury to or depletion of the source of supply. Section 2.» Second Party shall have the right to make such changes,additions and betterments to or retirements of its existing facilities as Second Party shall consider desirable for the production, transportation and delivery of H ' p7 gr water into the respective distribution systems of Second Party and Water Company. /U Section 3. Attached hereto marked "Exhibit B" and made a part hereof is a statement containing (a) A description of the water bearing lands, (b) A list of the water production facilities upon the water bearing lands, and (c) A list of the pipe lines utilized by Second Party to deliver water from the water bearing lands into the respective distribution systems of Second Party and Water Company, together with a description of the rights of way. for said pipe lines outside the boundaries of the water bearing lands. / Exhibit B also contains a statement of the values of all of said properties as of January 1, 1950. The values of said water bearing lands and said pipe line rights of way shown on Exhibit B are the market values thereof on said date and the values of all of the other property listed on the books of First Party (or some value other than ledger value which the management decides to use). Such values are hereafter referred to as the "agreed value". -4-