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and shall be deemed to exclude any of the above mentioned properties which are retired subsequent to January 1, 1950. Section 4 ; It is agreed that the market value of the lands and rights of way mentioned in subparagraph (a) of Section 3 as of January 1, 1950, is $75,900.00. It is agreed that the original cost of all of the structures and facilities referred to in subparagraph (b) of Section 3 hereof as of January 1,1950,is $779,254.00 and that the accrued depreciation thereon as of said date is $108,511.00. It is further agreed that the amount of working cash and the cost of material and supplies as of January 1, 1950, are $2,000.00 and $3,000.00, respectively. All of the above amounts less depreciation accrued to January 1, 1950, total $751,643, and for the purpose of this agreement such total is hereinafter 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 Second 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 directly and indirectly assigned labor. (d) A reasonable charge representing the actual cost to Second Party of vacation allowances with respect to all labor \ 5-