METROPOLITAN WATER DISTRICT OF SO. CALIF ET AL

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EXHIBIT F PERFORMANCE PROVISIONS Until a project reaches its Ultimate Yield in any one Fiscal Year, the following performance provisions apply: It. Metropolitan will terminate this Agreement if construction has not commenced by June 30, 2001. As opposed to Provision lb below, there is no established appeal process for this outcome. b. Metropolitan will terminate this Agreement if Allowable Yield is npt.delivered by June 30, 2005. The Project sponsor(s) may, appeal this decision to MetropolitWs Boaird' of Directors. C. If the Allowable Yield during the 2003-04 through 2006-07 Fiscal Years after agreement execution does not reach the target yield of 37% of the Ultimate Yield, then Metropolitan will reduce the Ultimate Yield by one-half the 37% target shortfall using the highest Allowable Yield produced in that period. For example, the Ultimate Yield of a project with the following performance will be revised from 2,000 to 1,950 AFY for Scenario 1 while there would be no adjustment under Scenario 2: Project Ultimate Yield = 2,000 AFY Scenario I Scenario 2 Fiscal Year after agreement execution Allowable Yield (AFY) Allowable Yield (AFY) 2003-04 400 400 2004-05 640 650 2005-06 450 750 2006-07 500 500 37% of the Ultimate Yield = 0.37 x 2,000 = 740AFY Scenario 1: Shortfall = 740 - 640 = 100 AFY Revised Ultimate Yield = 2,000 - (0.5 x 100) = 1,950 AFY Scenario 2: Since, the Allowable Yield in the 2006-07 is greater than 740, no adjustment is required. d. If the Allowable Yield during Fiscal Years 2007-08 through 2010-11 does not reach the target yield of 63% of the Ultimate Yield, then Metropolitan will reduce the Ultimate Yield (or the Revised Ultimate Yield) by one-half the target shortfall using the highest Allowable Yield produced in that period. For Example, the Ultimate Yield of the project in above example with the following performance Agreement 22156 -23-