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shall take place in the City of Paris. The parties shall mutually agree on a mediator, and irving shall pay for all expenses of the mediation, including the mediator's fee. c. Conducting required engineering studies related to pipeline and water availability and feasibility. Irving agrees to timely share with Paris, and or Paris' engineers, attorneys and/or consultants, ail information, studies and reports received by Irving related to this proposal or the sale, storage, transfer or transportation of water into or from Lake Pate Mayse provided, however, Inring shail not be required to share any information, reports or studies related to Irving's determination of the value or pricing of water from Lake Pat Mayse or sold through Lake Pat Mayse. d. Providing analysis of required perrnitting and licensing. e. Maintaining communications and negotiations as confidential, as mutualiy agreed upon by the Parties and to the extent authorized by law, until the water supply agreement is executed or at such time that Paris and Irving rnutually agree to terminate this Memorandum of Understanding. Nothing herein shall be interpreted to violate or override the requirements of the Texas Open Meetings Act or Texas Public Information Act. 2. Paris will be responsible for the following: a. Participating in this exclusive negotiation. b. Agreeing not to negotiate with any other party, other than current water customers of Paris or new industrial customers desiring to locate a plant or factory in the city limits of Paris, Texas, regarding sale of a water supply from Pat Mayse Reservoir until after December 31, 2008, or prior to such date if mutually agreed upon by the Parties. c. Cooperating fully in the analysis and evaluation of the feasibility of the Project and timely sharing with Irving, and or Irving's' engineers, attorneys and/or consultants, all information, studies and reports received by Paris related to this proposal or the sale, storage, transfer or transportation of water into or from Lake Pat Mayse; provided, however, Paris shall not be required to share any information, reports or studies related to Paris' - determination of the value or pricing of water from Lake Pat Mayse or sold through Lake Pat Mayse. d. Maintain communications and negotiations as confidential, as mutually agreed upon by the Parties and to the extent authorized by law, until the water supply agreement is executed or at such time that Paris and Irving mutually agree to terminate this Memorandum of Understanding. Nothing herein shall be interpreted to violate or override the requirements of the Texas Open Meetings Act or Texas Public Inforrnation Act. 3. The Parties will work diligently toward studying the feasibility of the Project and negotiating a proposed contract outlining specific terms of the Agreement and bringing forward said contract for review to the Irving and Paris City Councils no later than December 31, 2008, unless such date is extended by mutual agreement of the parties. These terms will include: a. Quantity of water available over the terrn of the agreement and agreement extensions. b. Payment terrns, incfuding minimum and maximurn payments, for water from Lake Pat Mayse. c. Payment terms for water conveyed through Lake Pat Mayse. MOU Between Irving and Paris 2 (t0 (:2~'.` 'J~