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e It the terms and conditions herein set forth and the Authority is willing to sell such additional Water to the City upon the same terms and conditions; and WHEREAS, the Authority and the City are authorized to enter into this Contract pursuant to the Act, Chapter 791, ~ 791.002 et seq. of the Texas Government Code, and other applicable laws; NOW, THEREFORE, in consideration of the mutual premises and covenants and agreements therein contained, the Authority and the City hereby agree as follows: SECTION 1. Article 1, Section 1.01 of the Contract is hereby amended to read as follows, to-wit: "ARTICLE I Definition of Terms Section 1.01 Unless the context requires otherwise, the following terms and phrases shall have meanings as follows: (1) Act - Chapter 729, page 2678 et seq., Acts of the 67th legislature of the State of Texas, Regular Session, 1981. (2) Authority - The La Porte Area Water Authority, (3) Authority Director - the General Manager of the La Porte Area Water Authority, or his designated representative. (4) Board - The Board of Directors of the Authority. (5) Bond Resolution - any resolution or order of the Authority, duly approved by the City, which authorizes the issuance of any Bonds. (6) Bonds - any revenue bonds issued by the Authority, as authorized by this Contract and any Bond Resolution, whether one or more issues, and the interest appertaining thereto, to finance the Authority's participation in the Southeast Plant, the Transmission System, and the Distribution System, including all improvements, enlargements, and expansions thereof, and any Bonds issued to refund such bonds. (7) City - the City of La Porte, Harris County, Texas. (8) City System - the City's existing waterworks and sanitary sewer system, together with all present and future extensions, additions, replacements and improvements thereto. 3