2011-072 RES AGREEMENT BETWEEN CITY OF PARIS AND DAISY FARMS

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showing the Volume Charge for all Treated Water delivered to Daisy Farms. Payment shall be made by the lOth day after receipt of the statement. (b) Peaking Ratio Surcharge. Commencing with the Secondary Rate Term (Year 6), Daisy Farms shall be subject to a peaking ratio limitation, with such peaking limitation being a 1.10 to 1 ratio of Daisy Farms' Maximum Day Usage during each Fiscal Year divided by Daisy Farms' average daily Treated Water usage determined through Meter readings during the corresponding Fiscal Year. The Volume Rate for each Cost of Service Study shall be determined using the lesser of Daisy Farms' actual peaking ratio, consisting of Daisy Farms' Maximum Day Usage divided by Daisy Farms' average daily Treated Water usage determined through Meter readings during the corresponding Test Year, or an assumed peaking ratio of 1.10 to 1. However, after the commencement of the peaking ratio limitation, should Daisy Farms' peaking ratio for the ensuing Fiscal Year exceed the 1.10 to 1 peaking ratio limitation, Daisy Farms shall be charged a Peaking Ratio Surcharge. Using the Cost of Service Study that determined the Volume Rate in effect, the Peaking Ratio Surcharge shall be calculated by subtracting Daisy Farms' calculated cost of service rate per 1,000 gallons assuming a peaking ratio of 1.10 to 1 from the Daisy Farms' calculated cost of service rate per 1,000 gallons using Daisy Farms' actual peaking ratio for the applicable Fiscal Year and multiplying the difference in the rates times Daisy Farms' Treated Water usage for the corresponding Test Year. Should the commencement of this peaking ratio limitation occur after the beginning of a Fiscal Year, Daisy Farms' peaking ratio shall be determined on Daisy Farms' Maximum Day Usage for the remainder of the Fiscal Year divided by Daisy Farms' average daily Treated Water usage for the remainder of said Fiscal Year. The Peaking Ratio Surcharge shall be on a per occurrence basis and not applied as an ongoing charge and shall not be applicable in the event of negligence or operator error on the part of Paris or in the event of equipment failure on equipment controlled by Paris. Daisy Farms shall pay the invoice for the Peaking Ratio Surcharge in full within thirty (30) days of receipt of invoice from Paris. (c) Late Fees. If Daisy Farms is late in the payment of any charge or fee due and payable to Paris under this Agreement that is not subject to any good faith dispute between the Parties, late payments shall bear per annum interest at a rate equal to the lesser of (i) two percentage points (2%) above the Prime Interest Rate as published in the Wall Street Journal on the day such payment becomes delinquent, or (ii) the maximum allowed by law to be charged to Daisy Farms. If any undisputed charges remain unpaid at the expiration of thirty (30) days after Daisy Farms' receipt of the applicable invoice, Daisy Farms shall be in Default, and subject to Section 9.2, Paris may invoke the remedies specified herein or otherwise available by law. (d) Cost of Service Study. The Cost of Service Study shall be performed by an independent rate consultant selected by Paris. Beginning with the last year of the Initial Rate Period (Year 5) and every year thereafter during the term of this Agreement, or any extensions thereof, a cost of service study shall be conducted by a rate consultant selected by Paris to determine the Volume Rate charge for the Treated Water delivered to Daisy Farms in the following rate year. Daisy Farms shall pay its proportionate share of the cost of the Cost of Service Study not paid by Campbell Soup Company every year throughout the term of this Agreement and any extensions thereof, provided that such proportionate share shall be based on the annual volume of Treated Water delivered to all of Paris' contract customers Page 11 of 23