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2. TERMINATION Santa Ana's Ca acity for Service, If, at anytime during the course of this Agreement, Santa Ana determines that it has the infrastructure and capacity to economically and conveniently provide Potable Water Service to the Island Parcels in a, manner and at a level consistent with Santa Ana's service to the remainder of its service area, then Santa Ana will send written notice to Tustin and OC LAFCO of such determination. The notice shall provide reasonable terms, conditions, and times for accomplishing the changeover from Tustin to Santa Ana as the provider of Potable Water Service; provided, however, that cooperation with the notice shall be at no cost to Tustin, Tustin will work in good faith with Santa Ana to reasonably comply with the notice. This Agreement shall terminate when the changeover is accomplished. When this Agreement is tenninated for any reason, any costs reasonably required to disconnect, transfer, cap, abandon, and/or otherwise cease Potable Water Service by Tustin will be reimbursed by Santa Ana within ninety (90) days of delivery of written request for such reimbursement, The manner of cessation of Tustin Potable Water Service shall be in compliance with all then -current Tustin standards and requirements. 3. EFFECTIVE DATE OF AGREEMENT The effective date of this Agreement is the date this Agreement is executed by both Parties as it appears on the Signatures page of this Agreement referred to as Effective Date. 4. SCOPE OF AGREEMENT Nothing contained in this Agreement shall be construed as representing the establishment of any precedent or the formation of any policy by Santa Ana to generally allow Tustin to provide Potable Water Service within Santa Ana's jurisdiction or by Tustin to provide Potable Water Service within Santa Ana's jurisdiction on the terms and conditions contained herein or on any terns and conditions whatsoever. 5. INDEMNIFICATION The Parties shall indemnify and hold harmless each other and their officers, employees, and agents, against any and all claims, liabilities, expenses, attorney's fees or damages, for injury or death of any person, or damage to property, or interference with use of property ("Claims"), to the extent the Claims arise from the negligence or willful misconduct of the indemnifying Party or to the extent any Claim arises in connection with the indemnifying Party's negligent performance of this Agreement. 6. MISCELLANEOUS PROVISIONS 6.1. Changes to A> reement All of the terms, conditions and provisions hereof shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns, provided, however, that no assignment of this Agreement shall be made without the prior written consent of the Parties to the Agreement, which consent may not be unreasonably withheld, conditioned or delayed. 3 of 7