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1 Section 10. There shall be deducted from the basic pur- 2 chase price to be paid by the District upon the sale date the fol- 3 lowing amounts: 4 (a) The unrefunded amounts subject to refund as 5 of the sale date under all contracts made by the Water 6 Company, or its successors in ownership, for additions 7 and betterments to and extensions of its said distri- 8 butlon system, pursuant to Hule 9 of the said Rules 9 and Regulations of the Water Company or its successor 10 or similar rules contained in the Rules and Regulations 11 of the Water Company previously on file with the Public 12 Service Commission of the State of Nevada, 13 (b) Except as hereinafter stated, the cost, deter- 14 mined as hereinafter provided, less the depreciation 15 accrued thereon as of September 1, 1952, of any property 16 mentioned in subparagraphs (b), (d), (e), (f) and (g) 17 of Section 1 hereof which was retired subsequent to 18 September 1, 1952, and prior to the sale date. In the 19 case of such property owned either by the Water Company 20 or the Railroad Companies on September 1, 1952, said 21 cost is to be determined by using the book cost of such 22 property and depreciation thereon as recorded in said 23 above mentioned books of account. Notwithstanding the 24 provisions of this subparagraph (b) no deduction shall 25 be made from the basic purchase price by reason of the 26 retirement of any property removed or retired pursuant 27 to the provisions of Section 5 of this agreement, 28 38