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

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ARTICLE 7 Restrictions and Conditions 7.1 Resale of Treated Water. Daisy Farms and Paris agree that the Treated Water supplied to Daisy Farms by Paris shall be used solely by Daisy Farms to meet the reasonable water supply needs of its dairy farm operations in Lamar County, Texas and shall not be used for resale. 7.2 Water Conservation and Demand Management. (a) Water Conservation. Daisy Farms agrees to comply with Paris' Water Conservation Plan. (b) Demand Management. Daisy Farms agrees to comply with Paris' Drought Contingency Plan. Daisy Farms shall receive substantially similar treatment with respect to such conservation or rationing measures as those imposed on other large volume retail Treated Water customers of Paris. 7.3 Temporary Rationing. Where an Emergency may dictate temporary conservation or rationing requirements for Paris, Paris may implement any measures considered appropriate by it to alleviate the Emergency. 7.4 Federal and State Laws. This Agreement is subject to all applicable federal and state laws and any applicable permits, amendments, orders, or regulations of any state or federal governmental authority having or asserting jurisdiction, but nothing contained herein shall be construed as a waiver of any right to question or contest any such law, order, rule or regulation in any forum having jurisdiction. Daisy Farms agrees to abide by any changes in this Agreement made necessary by any new, amended, or revised state or federal regulation. 7.5 Support of Paris on Permits and Governmental Agency Approvals. Daisy Farms shall use commercially reasonable efforts to support and assist Paris in obtaining permits and approvals from governmental agencies in order to protect, repair, maintain, replace, add to, supplement and/or enlarge the Paris Raw Water System and/or the Paris Treated Water System. Such support and assistance shall include, but is not limited to: providing information to Paris when requested by Paris in order to facilitate any permit or approval; providing written and oral statements of support and assistance or testimony, information, and evidence if appropriate and if requested by Paris in order to obtain any permit or approval; and taking all such other action as may be appropriate to support and assist Paris in obtaining any permit or approval. ARTICLE 8 Term of Agreement and Extension 8.1 Term of Agreement. Unless terminated as provided in this Agreement, this Agreement shall commence upon the Effective Date and shall remain in effect for a term of twenty (20) years. 8.2 Renewal of Agreement. (a) Daisy Farms shall have the option to renew this Agreement for a quantity of Water and at a rate as may be mutually agreed in writing by the Parties. In the absence of renewal, and except as specifically provided to the contrary, this Agreement and the obligations of this Agreement shall end on the Expiration Date. Daisy Farms expressly acknowledges that it has no right or entitlement to Raw Water or Treated Water from Paris after the expiration of this Agreement except to the extent that this Agreement is renewed as provided herein. Page 13 of 23