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termination under paragraph 3.1 above, this Lease shall terminate 100 years after the effective <br />date. <br />4.0 Lease Payment <br />4.1 The initial renta.l price for Firm Storage Space during the initial term of this <br />Lease sha11 be $77.50 per acre-foot multiplied times the maximum number of acre-feet stored by <br />the District in the Reservoirs during any water year. This initial per acre-foot price shall be <br />adjusted every five years pursuant to paragraph 4.5, below. <br />4.2 The minimum annual rental payment under this Lease shall be for 50 acre- <br />feet of Firm Storage, regardless of whether that amount of water is stored in the Reservoirs by <br />the District. <br />4.3 The maximum annual payment shall be 1,000 times the per acre-foot price <br />for Firm Storage then in effect under this lease. <br />4.4 The minimum rental payments described in 4.2 shall be made on or before <br />March 31 of each year. The remaining amounts due shall be determined after the end of the <br />water year and shall be paid by December 31 of each year. <br />4.5 Every five (5) years Santa Maxia and the District sha11 review the annual <br />rental payment and negotiate a new cost per acre-foot of storage that shall apply to the rental <br />payments in 4.2 and 4.3 above. In no event sha11 the renewal price be less than an amount <br />equivalent to $77.50 in 2008 dollars. <br />4.5.1 Not less than two hundred and forty (240) days before the <br />expiration of the first 5-years of this Lease, and every 5 years thereafter while the Lease remains <br />in effect, the District will provide the Santa Maria with its estimate of the fair market value <br />amount per acre-foot for Firm Storage of water for augmenta.tion use under this Lease. If Santa <br />Maria accepts the District's estimated market price as the price to be paid for the next five years <br />under this Lease, then it will promptly notify the District of that fact. If Santa Maxia does not <br />accept the District's estimated price, then within forty-five (45) days after its receipt of the <br />District's estimate, Santa Maria will prepare and furnish to the District its estimate of the fair <br />market value of the storage space under this Lease. If the District accepts Santa Maria's estimate <br />of fair market value as the price to be paid for water storage space under this Lease, then it will <br />promptly notify Santa Maria of that fact. <br />4.5.2 If, within thiriy (30) days after Santa Maxia provides its cost <br />estimate to the District, the Pa.rties are unable to agree on the price to be paid for Firm Storage of <br />water for augmentation purposes under the lease, then the price for the Firm Storage under this <br />Lease will be submitted to binding arbitration before a mutually-acceptable arbitrator, using the <br />commercial arbitration rules of the American Arbitration Association ("AAA") or any successor <br />thereto. If the Parties are unable to agree on an arbitrator, then they will apply to the AAA for <br />the selection of a single arbitrator. <br />Page 3 of 9 <br />