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<br />Wholesale Customers utilizing the composite rate used for allocating other Water Enterprise <br />administrative and general expenses. <br /> <br />2. If, in any litigation described in subsection B.1 above, attorneys' fees and <br />costs are awarded to one or more of the Wholesale Customers as prevailing parties, the <br />SFPUC's payment of the Wholesale Customers' attorneys' fees and costs shall not be an <br />allowable expense pursuant to subsection A. <br /> <br />3. If, in any litigation described in subsection B.1, the SFPUC obtains an <br />award of attorneys' fees and costs as a prevailing party against one or more of the Wholesale <br />Customers, any such award shall be reduced to offset the amount of the SFPUC's fees and <br />costs, if any, that have already been paid by the Wholesale Customers in the current or any <br />prior fiscal years pursuant to subsection B.1 and the provisions of Articles 5 and 6 of the <br />Agreement. <br /> <br />4. Nothing contained in this Agreement, including this subsection, shall <br />authorize a court to award attorneys' fees and costs to a prevailing party as a matter of contract <br />and/or the provisions of Civil Code Section 1717, in litigation between San Francisco and one or <br />more of the Wholesale Customers arising from matters outside of the Agreement, including, <br />without limitation, litigation and/or arbitration concerning the issues specifically reserved in the <br />Agreement. <br /> <br />C. Attorneys Fees and Costs Incurred by the SFPUC in Connection with the <br />Operation and Maintenance of the SFPUC Water Supply System. All attorneys' fees and' <br />costs incurred by the SFPUC in connection with the operation and maintenance of the SFPUC's <br />water supply system shall be allocated between Retail Customers and the Wholesale <br />Customers utilizing the composite rate used for allocating other Water Enterprise administrative <br />and general expenses. <br /> <br />8.03 Annual MeetinQ and Report <br />A. The parties wish to ensure that the Wholesale Customers may, in an orderly way, <br />be informed of matters affecting the Regional Water System, including matters affecting the <br />continuity and adequacy of their water supply from San Francisco. <br /> <br />For this purpose, the General Manager of the SFPUC shall meet annually with the <br />Wholesale Customers and BAWSCA during the month of February, commencing <br /> <br />-74- <br /> <br />1840795.8 <br />