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

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amounts. Any future changes to the billing rates will also be passed-through based on cost incurred in Participating Agency's service area. Participating Agency can elect to conduct its own inspections for the residential installations and submit reporting of the inspection results to MWDOC. If Participating Agency elects to conduct its own inspections, the minimum reporting requirements are as follows: ^ Inspection results verifying that the Smart Timer was installed and the number of active irrigation valves hooked up to the Smart Timer ^ Site measurements of the irrigated area, which can be derived from the Participating Agency's billing system; ^ Verification of the proper programming of the installed Smart Timer; ^ The number of valves connected to the installed Smart Timer; ^ The distribution uniformity of one turf valve; ^ Contact information for the participant; and ^ Complete and return to Rebate Contractor the inspection work order supplied to Participating Agency in a timely manner. • By participating in this Program, both the Participating Agency and the participant acknowledge and agree that MWDOC is permitted to use historical water consumption data for purposes of satisfying any grant requirements of the Program. 5. 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 pertorms 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 pertormance of such activities, except to the extent such liability, claims, obligations, damages or suits arise from the other's negligence or liability without fault. 6. Term: The Program commenced on or about September 1, 2004, and until June 30, 2009 was covered under separate, previous agreements. Effective July 1, 2009, this agreement supersedes the previous agreement and wilt continue until June 30, 2011 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 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 2009-2010 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 2009-10, they shall amend this agreement to replace Table 1 with a revised Table 1 showing the changed amounts and specifying the effective date thereof. 7. 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.