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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS <br />HEREIN CONTAINED, THE PARTIES HERETO AGREE AS FOLLOWS: <br />ARTICLE I <br />TERM <br />1.1 This Agreement shall become effective on the date first hereinabove shown. The services <br />provided herein shall commence thereafter on a date to be established by agreement <br />between AUN and its Scheduling Coordinator, but in no case later than July 7, 1999. <br />This agreement shall terminate at midnight on the earlier of (i) June 30, 2000, or (ii) the <br />date of termination as provided for in Section 1.2, or (iii) the effective date of termination <br />of either Party's agreement with Sempra Energy Trading for Scheduling Coordinator <br />services, or (iv) upon default as provided for in Article XIII. <br />1.2 Colton or AUN may terminate this agreement by giving the other party at least six (6) <br />calendar months written notice, unless otherwise mutually agreed by the Parties in writing. <br />1.3 Termination of this Agreement shall not relieve any Party of its obligations hereunder <br />prior to the effective date of termination, including the obligation to make payment for <br />services rendered in accordance herewith prior to the effective date of termination. All <br />indemnity and audit rights shall survive the termination of this agreement. <br />ARTICLE II <br />The following terms, when used herein with initial capitalization, whether in the singular or the <br />plural, shall have the following meanings: <br />2.1 Agreement: This Power Sales Agreement between AUN and Colton. <br />Page 2 of 16 <br />Power Sales Agreement <br />Colton and American Utility Network <br />