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LEASE AGREEMENT STATE OF TEXAS § COUNTY OF LAMAR § This Lease Agreement entered into I this 14th day of July, 1986, by and between the CITY OF PARIS, Paris, Texas, r-- a municipal corporation, acting by and through its Mayor, Billy Joe Burnett, duly authorized, by Resolution in the form set forth on the certificate attached as Exhibit A. hereinafter referred to as the CITY and Loyd Barrow and wife, Sybil Barrow of Paris, Lamar County, Texas, herein- after referred to as BARROW, WITNESSETH: WHEREAS, The CITY produces, as a result of operation of its Wastewater Treatment Plant, located approximately 7 miles North 8 degrees East from the City of Paris, sludge which must be handled in accordance with the laws of the State of Texas and CITY's Texas Water Commission Wastewater Treatment Plant permit; and, WHEREAS, the CITY has chosen land application as the method for disposing of said sludge, which application can best be made upon property described in Exhibit B 'attached hereto belonging to BARROW; and, WHEREAS, the CITY and BARROW desire to enter. into a Lease Agreement defining their respective rights and obliga- tions with regard to the lease of 170 acres by BARROW to CITY for land application of sewage sludge. NOW, THEREFORE, in consideration of the premises, the mutual promises contained herein and other valuable consid- eration, the CITY and BARROW agree as follows: 1:. DEFINITIONS. Sec. 1.1 - CITY. The municipality corporation and body politic incor- porated under the laws of the State of Texas under the name of "City of Paris" or its official agents or legal represen- tatives. -1- 2.7 /