MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) 3 - 2007

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" .' 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 Timer. 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. To the extent 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 its negligence or liability without fault in the performance of such activities, except to the extent such liability, claims, obligations, damages or suits arise from the other's negligence or liability without fault. Term: The Program commenced on or about September l, 2004, and until July l, 2007 was covered under a separate, previous agreement. Effective July l, 2007, this agreement supersedes the previous agreement and will continue until June 30, 2009 or until the targeted number ofrebates has been exhausted, whichever occurs first ("Program Expiration"). If the maximum number ofrebates for Participating Agency's service area has 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. The per-valve, per-acre and maximum funding amounts in Table 1 shall apply to Fiscal Year 2007-08 and, unless changed as provided in the following sentence, shall also apply for any subsequent fiscal years during the term of this Agreement. If MWDOC and Participating Agency agree to change any of the Table 1 funding amounts for fiscal years after 2007-08, they shall amend this agreement to replace Table 1 with a revised Table 1 showing the changed amounts and specifying the effective date thereof. Early Termination: Participating Agency may terminate this Agreement prior to the Program Expiration date, or prior to distribution of the maximum number ofrebates 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 of the 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. Otherwise, MWDOC may terminate this Agreement for any reason upon thirty (30) days' written notice to Participating Agency. Participating Agency will be responsible for payment of its funding contribution for all rebates made before and after the effective date of the termination for all applications initiated by Program participants within Participating Agency's service area prior to the effective date of the termination. For purposes of this paragraph, an application is deemed initiated when the Program participant obtains an application and his participation is logged-in by the Rebate Contractor. Whether the Agreement is terminated by Participating Agency or MWDOC, MWDOC will nevertheless provide Participating Agency with reports of rebate activities in Participating Agency's service area. II II II II II II II II II 6