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PURCHASE ORDER FOR SYSTEM WATER TO BE PROVIDED BY <br />THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA <br />PURCHASER: <br />TERM <br />City of Santa Ana <br />10 years: January 1, 2015 – December 31 <br />2024 <br />INITIAL BASE PERIOD DEMAND: <br />EFFECTIVE DATE: <br />acre -feet <br />January 1, 2015 <br />13,476 <br />INITIAL TIER 1 MAXIMUM — Annual <br />INITIAL TIER 1 MAXIMUM— Cumulative: <br />Average: <br />acre -feet <br />acre -feet 19,617 <br />196,170 <br />PURCHASE ORDER COMMITMENT— <br />PURCHASE ORDER COMMITMENT — <br />Annual Average: <br />Cumulative: <br />acre -feet 8,086 <br />acre -feet 80,860 <br />Definitions of capitalized terms used in this Purchase Order are provided in Attachment <br />1. Terms used in this Purchase Order and not defined in Attachment 1 are defined in <br />Metropolitan's Administrative Code. <br />COMMITMENT TO PURCHASE: <br />In consideration of Purchaser's commitment to purchase System Water pursuant to this <br />Purchase Order, Metropolitan agrees to sell such System Water to Purchaser at the Tier 1 <br />Supply Rate in an amount up to the Tier 1 Maximum — Cumulative. All System Water sold to <br />Purchaser in an amount greater than the Tier 1 Maximum — Cumulative shall be sold to the <br />Purchaser at the Tier 2 Supply Rate. In connection with the purchase of System Water, the <br />Purchaser also agrees to pay all other applicable rates and charges, as established by <br />Metropolitan from time to time. The rates and charges applicable to System Water as of the <br />Effective Date are shown in Attachment 2. <br />If Purchaser's applicable System Water purchases during the Term exceed Purchaser's <br />Tier 1 Maximum, Purchaser may elect to: <br />a.) Subject to the provisions of paragraph c) below, pay any Tier 2 Supply <br />obligations at the end of the Term, in an amount equal to the difference <br />between the Purchaser's applicable System Water purchases and the <br />Tier 1 Maximum — Cumulative during the Term times the average of the <br />Tier 2 Supply Rate in effect during the Term; or, <br />b.) pay any Tier 2 Supply obligations, annually as purchases are incurred, in <br />an amount equal to the difference between the Purchaser's applicable <br />annual System Water purchases and the Tier 1 Maximum — Annual times <br />the Tier 2 Supply Rate in effect during the calendar year. A true -up at <br />the end of the Term will be performed to ensure that the Purchaser has <br />received all Tier 1 Maximum — Cumulative purchases allowed by the <br />Purchase Order. <br />c.) if, after the end of the first five years, Purchaser has accrued a cumulative <br />Tier 2 Supply Rate obligation, Purchaser may elect to pay the initial five year cumulative Tier 2 <br />-t- <br />25C -5 <br />