AZ vs. CA:10 California Exhibits, Vol. X; Nos. 458-528

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-2- Whereas, by virtue of compliance with the terms and conditions of Supplemental Agreement No. 1 to Contract NOy-13300, entered into as of the 23rd day of September, 1946, the Authority is the assignee of the City's rights and obligations under Contract NOy-13300; and Whereas, the Aqueduct is presently in a state of use-able but not final completion; and Whereas, due to the existing water emergency, the parties hereto desire to provide for the interim possession and operation of the Aqueduct by the Authority pending its final completion: Now, Therefore, in consideration of the premises, it is agreed as follows: 1. The Authority, as the permittee of the Government for purposes of operation and maintenance, hereby is granted and assumes possession of the Aqueduct, including field office buildings, equipment and facilities at Escon-dido, Vista and Rainbow. 2. The Authority will pay for costs and expenses of operation, maintenance and repair, regardless of the cause of loss or damage, of the Aqueduct, provided that the Authority shall not be obligated to and shall not assume or make repairs or replacements covered by pending Governmental construction contracts. 3. The Authority will hold the Government, its officers, agents or employees harmless from any and all damages or liabilities directly or indirectly resulting from the possession and operation of the Aqueduct by the Authority. 4. The permission granted the Authority pursuant to this Supplemental Agreement will include permission to the Authority to arrange with the Metropolitan Water District of Southern California for the operation and