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\ $779*254*00 and that the accrued depreciation thereon as of said date is $110,080.00* Such costs and values less depreciation accrued to January 1, 1950 total $745,034.00 and are hereafter 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 include: (a) The actual cost to Seeond 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 direetly and indirectly assigned labor. (a) A reasonable charge representing the actual cost to Second Party of vacation allowances with respect to all labor directly or’indirectly assigned and used in such work. (e) All social security, unemployment insurance, payroll taxes or other taxes which may be levied or assessed against or on account of such labor. (f) A reasonable charge representing the cost to Second Party of liability for injury to or death of persons (including employees) or damage to or destruction of property arising -5-