2010-125 RES RENEWAL LEASE WITH LOYD AND SYBIL BARROW FOR LAND APPLICATION OF SEWAGE SLUDGE

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2. LEASE Sec. 2.1. In consideration of the monthly rental payment hereinafter provided in Section 3. l, Lessor does hereby agree to lease demise and let unto the City of Paris, Texas, the 170-acre tract more particularly described in Exhibit C as the Application Site for the purpose of disposing of the Sludge and Effluent generated by the City's Waste Water Treatment Plant. The Lease shall include right of ingress and egress to the Application Site and all necessary easements and rights-of-way for the City to dispose of Sludge and Effluent on the Application Site. 3. LEASE TERM Sec. 3.1 Term. The term of this Lease shall be for a period beginning on January 1, 2011 and ending on December 31, 2013. Within thirty (30) days of the expiration of the initial term of this Lease, City may provide written notice to Lessor of its intent to renew and extend the Lease for three (3) successive one-year terms, ending on December 31, 2016. 4. RENT Sec. 4.1 City agrees to pay Lessor as rent for the land described in this Lease the amount of One Thousand Five Hundred No/Dollars ($1,500.00) per month, with such rent being due and payable by the fifth day of every month, the first rental payment being due on or before January 5, 2011. 5. OTHER TERMS Sec. 5.1. Acceptance of Sludge. Lessor agrees to accept Sludge and Effluent from the Waste Water Treatment Plant delivered to the Application Site by City in such quantities and on such schedule as best suits the needs of the City of Paris. City shall be responsible for transport and delivery of the Sludge and Effluent to the Application Site. City will apply Sludge and Effluent in accordance with the City's Sludge Application Plan and in accordance with the rules and regulations of the Texas Commission on Environmental Quality ("TCEQ"). City will maintain records of the dates that Sludge is applied to the Application Site, and City shall be responsible for 3