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1.5. Within 30 days of the first deliveries of recycled water by DERWA to Pleasanton through the 1,500 feet of Pipeline AB utilized by Pleasanton, Pleasanton shall pay DERWA a lump sum of one hundred sixty-six thousand dollars ($166,000) as capital buy- in to the 1,500 feet of Pipeline AB utilized by Pleasanton. 1.6. Within 30 days of the first deliveries of recycled water by DERWA to Pleasanton through the 1,500 feet of Pipeline AB utilized by Pleasanton, Pleasanton shall pay DERWA a lump sum of two thousand, seven hundred dollars ($2,700) for the cost of increased electrical use associated with pumping Pleasanton recycled water, in addition to the DSRSD and EBMUD recycled water, through the 1,500 feet of Pipeline AB utilized by Pleasanton. 1.7. DERWA shall be responsible for controlling and delivering recycled water to Pleasanton through the Pleasanton Turn Out. Deliveries shall be made as follows: 1.7.1. During initial deliveries, defined as the period of recycled water delivery by DERWA to Pleasanton through the Pleasanton Turn Out until the Pleasanton Tassajara Reservoir is brought on line as part of the Pleasanton recycled water system,the Pleasanton recycled water system shall utilize DERWA storage and DERWA shall deliver recycled water to meet actual instantaneous demands of Pleasanton customers (ride on the DERWA system). During this period, DERWA shall invoice Pleasanton for, and Pleasanton shall within 30 days of receipt of the invoice, pay DERWA two hundred and fifty-five dollars ($255) per million gallons of recycled water delivered for use of DERWA Reservoir R100 by Pleasanton. 1.7.2. Unless modified by mutual agreement of the DERWA and Pleasanton operating staffs, once Pleasanton's Tassajara Reservoir is on line, Pleasanton shall notify DERWA electronically daily of the that day's recycled water demand required to be delivered by DERWA to Pleasanton. DERWA shall deliver the daily demand request by Pleasanton at a uniform rate over a 24-hour period. 1.7.3. During seasonal low demand (less than 2 mgd), DERWA operating staff, upon notification to Pleasanton operating staff, may bypass the Pleasanton Turn Out control system and serve Pleasanton during seasonal low demand by allowing the Pleasanton system to ride on the DERWA system, with no cost incurred to Pleasanton for use of DERWA storage. 1.8. DERWA shall use best efforts to deliver the quantities of recycled water requested by Pleasanton, however, in accordance with Paragraph 7.3 of the Agreement, Page 3 of 7