MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) 6 - 2009

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3. MWDOC's Obligations: MWDOC will be responsible for designing the Regional Program, setting the rebate level paid to a qualified participant, providing all necessary staffing, materials, and administration to manage and implement the Regional Program, and preparing reports on the Regional Program's results through contractors and its own staff. These services will include: • Providing marketing and informational material for the Program, except as noted in the Participating Agency Obligations section of this Agreement; • Working with Metropolitan and its Rebate Contractor to establish eligibility requirements for prospective Program participants; • Mailing marketing materials to prospective participants using lists of property owners provided by the Participating Agencies; • Providing a website, atoll-free telephone number, and printed informational materials for prospective participants to learn about the Program and the steps to participate; • Informing participants about the eligible Smart Timer technologies and where they may purchase an appropriate Smart Timer. (Purchase, installation and functioning of Smart Timers will be the responsibility of the property owner, and participants will be required to waive and release any claims against MWDOC, Metropolitan, and the Participating Agency in order to receive a rebate); • Facilitating quality control, verification of installation, and collection of data; • Setting the rebate levels paid to participants. If the Participating Agency wishes to add additional funds above the required $9 per active valve in order to increase the rebate level, MWDOC will facilitate this additional funding with the Rebate Contractor; • Paying, through Metropolitan's Rebate Contractor facilitating the rebate payment, participants who have completed the participation requirements to the satisfaction of MWDOC on a per attached and operating valve basis for residential customers and on a per acre basis for commercial customers, including HOA's; • Developing a database of information regarding Program participation, including the types of Smart Timers for which rebates are given; • Providing monthly electronic and written reports of Program activity to Participating Agency, and invoicing Participating Agency for its funding obligation; • Invoicing Participating Agency for the specified amount per active valve and for the specified amount per acre for those valves and acres installed within Participating Agency's service area up to the "Not to Exceed" amount set forth in this Agreement; • Invoicing Participating Agency for any necessary pass-through inspection costs for commercial Smart Timers provided within Participating Agency's service area by