MUNICIPAL WATER DISTRICT 2 - 2004

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. . . MWDOC will direct the rebate contractor to discontinue reserving rebates for participants in the Participating Agency's service area. MWDOC will direct the rebate contractor to take names for purposes of creating a waiting list. Indemnification: MWDOC has designed the Program as a rebate program in which the property owner is solely responsible for selecting, purchasing, and installing the Smart Controller. Property owner will be required to sign a release and waiver of any claims against MWDOC, the Participating Agency, and any other funding agency, as a condition of participating in the Program. MWDOC will require its Rebate Contractor to indemnify MWDOC, the Participating Agency, and any other funding agency against claims arising out of or related to the performance ofthat contract. MWDOC will require the Rebate Contractor to provide general liability insurance covering MWDOC, each Participating Agency, and any other funding agency as additional insureds. Nevertheless, to the extent that MWDOC or the Participating Agency or their staff performs any activities in connection with the Program, each agrees to indemnify and hold the other harmless from any and all liability, claims, obligations, damages, and suits arising out of such activities. Term: The Program will commence on or about August 1,2004 and will continue until December 31, 2006 or until the targeted number of rebates has been exhausted, whichever occurs first ("Program Expiration"). If the maximum number of rebates for Participating Agency's service area have been issued prior to Program Expiration, MWDOC will direct its Rebate Contractor to discontinue offering the Program in Participating Agency's service area; however, final reporting of Program results will not be completed until after the Program Expiration date. Early Termination: Participating Agency may terminate this Agreement prior to the Program Expiration date, or prior to distribution of the maximum number of rebates for Participating Agency's service area, upon thirty (30) days' written notice to MWDOC. MWDOC may terminate this Agreement prior to the Expiration Date, or prior to distribution ofthe maximum number of rebates for Participating Agency's service area without prior notice in the event funding for this Program is exhausted, reduced, or eliminated from any funding source. If it becomes necessary to terminate this Program for any other reason, MWDOC will give Participating Agency thirty (30) days' written notice. Participating Agency will be responsible for payment of its funding contribution for all rebates made before and after the effective date ofthe termination for all applications initiated by Program participants within Participating Agency's service area prior to the effective date of the termination. For purposes ofthis paragraph, an application is deemed initiated when the Program participant obtains an application and III III III III III III III III III III III 4