THIS AGREEMENT entered into this ______ day of ___________ 20____, by and between the COMMUNITY WATER SYSTEM, hereinafter referred to as “CWS” and hereinafter referred to as “CUSTOMER”, WITNESSETH: WHEREAS, CUSTOMER hereby makes application to CWS for membership in the company and for water service at the following location:

Lot, Block, Addition or other property described as within the incorporated area of County, Arkansas, which is/or may be served by the CWS water distribution system, consisting of high and low pressure lines connected to the customer’s shelter or commercial unit through a “service line tap” located within designated easements and/or rights-of-way adjacent to the above described property; and WHEREAS, the said “service line tap” will be made by CWS; and WHEREAS, it is in the mutual interest of the respective parties that CWS be given access to said “service line tap” and “service line” for purposes of inspection, testing, meter repair and any other cause requiring attention by CWS;

IT IS THEREFORE, mutually agreed by and between CWS and the CUSTOMER as follows:

1. That the CUSTOMER will install and maintain at CUSTOMER’S expense the
necessary service line appurtenances located on the service side of the meter
box to include all piping, check valves, ball valves, access box enclosures and
any other devices required by CWS, the State plumbing code or the Arkansas
Department of Health for the protection of the CUSTOMER and/or CWS lines.

2. That all plumbing inside and outside of the serviced unit shall be in compliance with the Arkansas State Plumbing Code, and that it shall be inspected by the CWS plumbing inspector or any other duly authorized representative of CWS appropriately licensed to do such inspection at the expense of the CUSTOMER at the time the new connection is made.

3. That any consumption of water in excess of the minimum quantity will be
charged in accordance with the applicable rate schedule as has been established and as may be changed from time to time by CWS according to meter size and that the CUSTOMER shall pay a non-refundable connection charge (tap fee) of $__________ for a ____________ size meter service and a meter deposit fee of $__________, with said meter deposit being refundable in accordance with the CWS Rules and Regulations upon authorized disconnection by the CUSTOMER. The meter deposit is held as security against unpaid debt to CWS. It shall be applied toward such debt upon disconnection.

4. That CWS will provide material, labor, and equipment, at cost, for a road
crossing to accommodate a “service line tap” either by boring or open cut
crossings of gravel or paved road surfaces up to a maximum length of sixty (60) feet measured from main to meter. A minimum charge of $150.00 will apply to all road crossings. All charges above the minimum will be applied to the CUSTOMER’S first month account billing unless other arrangements are
approved by CWS management. If for any reason a road bore can not be
completed, all fees collected by CWS will be refunded to the CUSTOMER.

5. That if the CUSTOMER authorizes a temporary disconnect from the water
system, the CUSTOMER may do so at no charge; however, if at a future date,
service is again desired, a reconnect charge equal to the minimum monthly bill,
times the number of months the meter has been disconnected up to a maximum of 10 months of monthly minimum billing, plus a $25.00 service charge will be required. Temporary disconnection shall not be allowed until CUSTOMER account balance is paid in full.

6. That the CUSTOMER will pay to CWS, a meter transfer charge of $30.00 for
transfer of existing meters from an existing customer account to a new
customer account. This charge covers the accounting set-up and initial field
meter reading costs. Such charge for transfers will be applied to the
CUSTOMER’S first month account billing.

7. That billing will begin from the date of water meter installation for new services and from the date of the “Water Service and Easement Agreement” for existing services.

8. That all CWS rules, regulations and fees at any time are subject to revision by the Board of Directors.

9. That if for any reason CWS is unable to provide the CUSTOMER with long-term water service stipulated by this agreement, the full meter deposit amount shall be refunded.

10. That the function of CWS is to provide potable water to its CUSTOMERS of the quality and quantity necessary for potable water usage. That CWS is not
obligated under this agreement to provide water quantities necessary to support
non-potable use such as commercial application, laundries, fire protection, car
washes, etc., however, service will be provided for these uses on a non-guaranteed basis when line sizes, storage and pumping capacity exist.

11. That the CUSTOMER requiring new service connection to a shelter or
commercial facility agrees to notify CWS ten (10) working days prior to date
service is required. When special permits are applicable, service connection will
not commence until permit is obtained from proper authorities. The owner shall
provide adequate site layout and elevation information to allow proper placement and alignment of the “service line tap” and meter box location.

12. That the CUSTOMER does hereby grant CWS and its authorized representative a non-exclusive perpetual easement of egress and ingress to enter upon the above described property at any time it may see fit to inspect the “service line tap” and “service line”, together with the right to excavate and refill ditches and/or trenches required for the location of said “service line” and “service line tap”. It is agreed and understood that the non-exclusive perpetual easement shall not be limited in scope or duration and shall have as its purpose the construction and periodic repair of water service lines to Customer’s shelter or commercial unit.

13. That the CUSTOMER shall have the sole and exclusive authority over the service side of the line. The cost of service line maintenance will be the responsibility of the shelter or commercial unit CUSTOMER.

14. That CWS shall warrant for a period of one year, parts and labor associated with defective valves and backflow devices, installed by CWS on the service side of the meter. The warranty period shall begin from the date of this agreement.
The appurtenances on the service side of the line are the property of the CUSTOMER.

15. The CUSTOMER shall be required by CWS to provide pressure regulators on all the service side of the service. CWS recommends the pressure regulator be
located inside the CUSTOMER access box located near the meter. The cost of
a pressure regulating device is the responsibility of the CUSTOMER and may be
installed by CWS at the CUSTOMER’S request.

16. The CUSTOMER account billings will be performed monthly or any other interval determined by the Board of Directors. A rate schedule shall be established by the Board of Directors and is subject to change. The CUSTOMER’S bill will be based on the appropriate rate schedule for the size meter installed and shall be determined based on a monthly minimum fee and gallons of water used. Any account adjustments for leakage on the service side of the meter shall be in accordance with the CWS leak adjustment policy.

17. The CUSTOMER agrees to pay to CWS other miscellaneous charges associated with water service such as service calls, reconnect fees, inspection fees, new account set-ups, etc., as applicable to the CUSTOMER’S account.

18. The CUSTOMER shall take proper precautions to prevent backflow of water or waste of any kind from the user’s property into the CWS distribution system.
The CUSTOMER shall be responsible for all proper operations and maintenance
of anti-siphon and backflow prevention devices on the service side of the meter.
CWS reserves the right to make periodic inspection of all such devices within
the household or to investigate any suspicions of possible cross-connections on
the CUSTOMER’S property. Failure to install or maintain such cross-connection
prevention devices or failure to allow proper inspection upon CUSTOMER’S
property shall be grounds for CWS to discontinue water service to the property
by disconnecting the meter from the service line. The CUSTOMER shall pay all
associated service charges, disconnect fees, reconnect fees, etc., associated
with the disconnection.

19. That the CUSTOMER shall submit to CWS upon application for membership in the company and for water service, an Arkansas Department of Health, Division of Sanitarian Services, approved “Sewage Disposal Permit” or a “Certification Letter” from the local wastewater utility stating that an appropriate central sewage disposal system is available to serve the CUSTOMER’S property. The CUSTOMER shall also submit to CWS, applicable plumbing plans for residential or commercial units when required.

20. That the CUSTOMER recognizes the established permanent and perpetual
easements and hereby releases CWS from damage or replacement of
improvements made by the CUSTOMER over such permanent and perpetual
easements when CWS must make necessary repairs or gain access to water
lines, pump stations, tanks and other water system appurtenances. The
CUSTOMER acknowledges that CWS is not responsible for the expense or the
performance of work necessary to replace such improvements over dedicated
easements.

21. The CUSTOMER acknowledges that this agreement and all its provisions shall remain in effect during any periods of property rental activity. Should the
above described property be rented, the renter will be required to execute an
addendum to the property owner’s “Water Service and Easement Agreement”
whereby the renter shall become primarily responsible for all water service
charges, fees and costs as referenced herein during the rental period. Renter
shall become a record CUSTOMER of CWS by executing an addendum to the
property owner’s “Water Service and Easement Agreement” and through such
addendum assume responsibility for the water service and all applicable fees for the rental period. CWS shall retain the property owner’s meter deposit until
such time as the property owner requests a disconnection under the terms of
the CWS Disconnect Policy. The “Water Service and Easement Agreement” will
revert back to the property owner upon authorized disconnection of water
service by the renter. The applicable meter transfer charge shall be paid by the
property owner.

22. Special Provisions: _________________________________________________
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22. Definitions: _______________________________________________________

Service Line – The line connecting from the outlet side of the meter to the
shelter or commercial unit served.

Service Line Tap – The physical connection of the water service to the main
which extends from the main to the meter box outlet.

Service Side – The side of the water service installation from the outlet side of
the meter to the shelter or commercial unit served, as well as the complete
plumbing system.

Water Meter – A device installed in a pipe under pressure for measuring and
registering the quantity of water passing through it.

Cross Connection – Any arrangement of pipes, fittings, fixtures or devices that
connects a non-potable system to a potable water system.

Potable Water – The characteristic that describes water that does not contain
objectionable solution, contamination, minerals or infective agents and is
considered satisfactory for domestic consumption.

Backflow – A hydraulic condition, caused by a difference in pressure, in which
non-potable water or other fluids flow into a potable water system.

Anti-Siphon Devices – Devices installed on a plumbing system or service line to
prevent backflow into the potable water system.

Customer – The person (s) or legal entity whose name appears on the “Water
Service and Easement Agreement”.

Pressure Regulator – A valve with a horizontal disc for reducing water pressures
in a main or a service line automatically to a preset value.

Easement – An interest in land owned by another that entitles its holder to a
specific limited use.

Property Owner – The legal record owner of real estate property.

Temporary Disconnect – The disconnect period in which the customer requests
no water service (meter shut-off) but still remains as an inactive record customer of the Community Water System. During this period the customer receives no additional monthly billing.

WATER SERVICE AND EASEMENT AGREEMENT
NEW SHELTER AND/OR COMMERCIAL UNIT
NEW CONNECTION
ROAD CROSSING ADDENDUM

By signing this addendum, the customer acknowledges that he/she has been
advised that additional road crossing charges may apply. If said charges
are deemed necessary, the customer will be notified and a quote of any
additional charges will be given, at which time, the customer will have the
option to pay said additional charges or request a refund of prior payments
made to CWS in relation to the new connection. Community Water System
guarantees that the work will not exceed the dollar amount quoted.