upr000062 109

V (l) All taxes paid by Second Party which are levied and assessed upon or fairly allocable to the water production facilities* (m) Any loss incurred by Second Party in the retirement of facilities made pursuant to Section 2 hereof* (n) Any other expense, direct or indirect, which is incur­red by Second Party in producing, transporting and deliver­ing such water. (o) Federal income taxes at the rates in effect from time to time upon that portion of the business of the Second Party consisting of the production, transmission and delivery of water produced from the water bearing lands computed on an amount of income which will provide Second Party with the fair return mentioned in subparagraph (p) hereof* (p) An amount over and above the total of all of the costs referred to in subparagraphs (a) to (o) inclusive, equal to per annum upon the agreed value of the water production facilities adjusted to reflect any changes in market value since January 1, 1950 of the water bearing lands and rights of way mentioned in subparagraph (a) of Section 3 hereof, any depreciation upon the water production facilities mentioned in subparagraph (b) of Section 3 hereof accrued subsequent to January 1, 1950, and any changes, additions, betterments or retirements of or to the water production facilities made subsequent to said date. In computing such return for any calendar year, the adjusted value of the water production -7-