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% and shall be deemed to exclude any of the above mentioned properties which are retired subsequent to January 1, 1950. Section 4; It is agreed that the market value of the lands and rights of way mentioned in subparagraph (a) of Section 3 as of January 1, 1950, is $'75,900.00. It is agreed that the original cost of all of the structures and facilities referred to in subparagraph (b) of Section 3 hereof as of January 1,1950,is $779,254.00 and that the accrued depreciation thereon as of said date is $108,511.00. It is further agreed that the amount of working cash and the cost of material and supplies as of January 1, 1950, are $2,000.00 and $3,000.00, respectively. All of the above amounts less depreciation accrued to January 1, 1950, total $751,643, and for the purpose of this agreement such total is hereinafter referred to as the "agreed value" of the water production facilities as of January 1, 1950. Section 5; The cost to Second Party of producing, trans­porting and delivering water from the water-bearing lands into the distribution systems of Second Party and Water Company shall be deemed to includes (a) The actual cost to Second Party of labor and materials used in and directly assigned to such work. (b) A reasonable charge representing the actual cost to Second Party of all labor used in such work not directly as­signed thereto in payroll distribution. (c) A reasonable charge representing the actual cost to Second Party for supervision of such directly and indirectly assigned labor. (d) A reasonable charge representing the actual cost to Second Party of vacation allowances with respect to all labor 5-