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JDK:bc: 10/10/88 <br />and RETAILER mutually understand and agree that additional <br />landscape irrigation and/or industrial water users within the <br />boundaries of RETAILER may at some future time be served with <br />Project Water and become Project Customers without the <br />necessity of amending this Agreement. All future water users <br />within the service boundaries of RETAILER who become Project <br />Customers shall execute an agreement for the purchase of <br />Project Water in the form attached hereto as Exhibit "C", and <br />further shall be subject to the Project Rules to be adopted <br />by RETAILER pursuant to paragraph 5.3 hereinbelow. <br />SECTION TWO: PURCHASE AND SALE OF PROJECT WATER <br />2.1 OCWD shall complete the construction and commence <br />operation of the Project Facilities by June 1, 1991, barring <br />delays due to unforeseeable causes beyond the control and <br />without the fault or negligence of OCWD or its contractors. <br />If OCWD is permitted by all regulatory agencies having <br />jurisdiction over OCWD to distribute Project Water, then, <br />during the term of this Agreement, RETAILER shall have the <br />exclusive right to purchase Project Water from OCWD, at the <br />point of connection to each Project Customer, and to resell <br />Project Water to the Project Customers shown on Exhibit "B," <br />and such other landscape irrigation and industrial water <br />users within the boundaries of RETAILER that may be added as <br />Project Customers in accordance with paragraph 1.6 above. <br />2.2 Concurrently with and as a condition precedent to <br />any obligations of OCWD or RETAILER pursuant to this <br />Agreement, RETAILER shall commit to purchase Project Water <br />25B-11 <br />-9- <br />EXHIBIT 1 <br />