MUNICIPAL WATER DISTRICT OF ORANGE COUNTY (MWDOC) 8 - 2011

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Participating Agency elects to provide marketing shall not offset or otherwise reduce the Participating Agency's funding obligation; • Participating Agency agrees to provide funding for the Program in the amount specified in Table 1 below per residential Smart Timer. Funding will be provided on a per Smart Timer basis up to the "Not to Exceed" funding limit: Table 1 Category No. Smart Funding Not to Exceed Funding Limit; Timers Amount For Fiscal Years 2011-13 Residential #200 $75 per Smart $15000.00 Timer • If Participating Agency elects to provide additional funding for commercial Smart Timers, Table 2 below shall list the Participating Agency's funding amount per commercial Smart Timer station. Commercial Smart Timer rebates are calculated on the commercial Smart Timer's station capacity, and Participating Agency's funding amounts shall be in addition to the per station amount provided by the Program. Table 2 Category No. of Stations Funding Not to Exceed Funding Limit; Amount For Fiscal Years 2011-13 Commercial #500 $10 per 5,000.00 Smart Timer Station • MWDOC will invoice Participating Agency on a monthly basis for rebates issued in the previous month period, and payment will be due within thirty (30) days of the date of the invoice. • Participating Agency may increase its "Not to Exceed" Funding Limits under this Letter Agreement by written notice to MWDOC's General Manager made by the undersigned representative of the Participating Agency or his or her successor. Any increase must follow the form in Tables 1 - 2, and written notice of an increase must be received prior to the exhaustion of available funding. • By participating in this Program, the Participating Agency acknowledges and agrees that MWDOC is permitted to use historical water consumption data for purposes of satisfying any grant water use and water quality evaluation requirements of the Program. A similar agreement will be required of every applicant. 5. Indemnification: MWDOC has designed the Program as a rebate program in which the applicant is solely responsible for selecting, purchasing, and installing the Smart Timer. The applicant 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, and Metropolitan, 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, or Metropolitan's, negligence or liability without fault.