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ENERGYSALESCONTRACT <br />BETWEEN <br />CITIES AGGREGATION POWER PROJECT <br />AND <br />CITY OF PARIS, TEXAS <br />This Energy Sales Contract ("ContracP') is executed on the date set opposite each <br />signature below, effective, however, on December 15, 2008 ("Effective Date"), by and <br />between the Cities Aggregation Power Project, Inc. ("CAPP"), a political subdivision <br />corporation incorporated in the State of T'exas, and the City of Paris ("Member"). CAPP <br />and Member are collectively referred to herein as the "Parties", and individually as a <br />"Parry" <br />RECITALS: <br />Capitalized terms used herein not otherwise defined shall have the meanings set <br />forth in Article 1 hereof. <br />Member is a political subdivision of the State of Texas. <br />Member is a member of CAPP. <br />As the result of adoption of Senate Bill 7, enacted as Chapter 405, Acts of the 76t' <br />Legislature, Regular Session, 1999, municipalities now have the opportunity to <br />competitively acquire electricity on more advantageous terms. This opportunity was the <br />impetus for the creation of CAPP. CAPP was created to assist Member and the <br />Participating Members in obtaining electricity used in such Members' own buildings and <br />facilities by aggregating each Participating Member's electric load, and negotiating the <br />best electric price based on the aggregated load. <br />Recognizing that all retail sales in the Texas deregulated electric market have <br />been based on the price of natural gas on the Nymex Futures Market, Member desires to <br />diversify the sources of its electric supplies in order to mitigate potential price volatility <br />associated with a single fuel source supply of electric energy. <br />Member has a need for reliable electric energy at favorable and stable rates to <br />fulfill its proprietary needs and governmental responsibilities in said buildings and <br />facilities. <br />Member desires to increase its bargaining power in the deregulated market for <br />Energy by relying upon and combining with other participating CAPP member cities <br />("Participating Members") to negotiate for future sources of electricity. The <br />Participating Members are listed on Exhibit "A" attached hereto and incorparated by this <br />reference herein for all purposes. <br />1 <br />