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4 <br /> EXHIBIT 1 <br /> ADDENDUM <br /> to <br /> 1960 AND 1981 AGREEMENTS <br /> THIS ADDENDUM to the July 21, 1960 Agreement for Multipurpose Development of <br /> the Sultan River(the"1960 Agreement")and to the November 17, 1981 Amended Agreement <br /> for Multipurpose Development of the Sultan River(the"1981 Agreement") is entered into this <br /> day of , 2007, by and between PUBLIC UTILITY DISTRICT NO. 1 OF <br /> SNOHOMISH COUNTY(the"District")and the CITY OF EVERETT, a Washington municipal <br /> corporation(the"City"), for good and valuable consideration. <br /> 1. Article VIII, Section 4, of the 1960 Agreement is stricken in its entirety. <br /> 2. Article VIII, Section 4 of the 1981 Agreement is stricken in its entirety. <br /> 3. Article II, Section 2 of the 1981 Agreement is amended to read as follows: <br /> The parties hereby expressly agree that the requirements of the <br /> City within the water supply service area shall have precedence <br /> over any Sultan Project requirement for power generation purposes <br /> for the term of this Agreement up to a maximum water <br /> requirement equal to the City's existing certificated state water <br /> rights as of February 27, 2007, provided the City stays within the <br /> service area described in Exhibit A. The parties agree that they <br /> will cooperate in the storage and release of waters from Spada <br /> Lake and from Lake Chaplain so that the water supply <br /> requirements of the City may be met. <br /> PUBLIC UTILITY DISTRICT NO. 1 OF <br /> SNOHOMISH COUNTY <br /> By <br /> STEVE KLEIN, Manager <br /> ATTEST: <br /> , Clerk <br />