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Item 4E Attachmentfj TXU Energy AGREEMENT FOR THE SUPPLY OF ELECTRICITY Price Reg. #: 3- 1AHZG1 -25 Product: Fixed-Shaped/Extendable BUYER: City of Southlake SELLER: TXU Energy Retail Company LLC 667 N Carroll Ave 1601 Bryan Street EP 10 -050 Southlake, TX 76092 Dallas, Texas 75201 Attn: Retail Contract Management Phone: 817 481 -5581 Fax: 817 481 -1463 Phone: (214)875-8900 1 Fax: (214)875-8908 I. TERM Primary Term: The Primary Term for each Premise will begin and end on the first regularly scheduled meter read for each Premise occurring on or after the dates listed below in compliance with the Terms and Conditions: Primary Term Start Date: 11/21/2007 Primary Term End Date: 11/20/2012 II. CHARGES CHARGE AMOUNT (Monthly Charges will be the total of the items listed in this Article II. (i) All kWh Charge $ per kWh which includes charges for the commodity, Energy(shaped), Ancillary (the per kWh Services, Qualified Scheduling Entity Charges, Renewable Energy Credit Charges, Zonal "Contract Price ") Congestion (intrazonal and interzonal), Line Losses (TDSP), and Unaccounted for Energy as defined and specified in the ERCOT Protocols and the applicable TDSP's Tariff in effect as of the date of this Agreement. See Addendum ( ii) Standing Charge The sum of the Monthly Standing Charges for all ESI IDs as listed in Exhibit A. (iii) Other Charges Varies by ESI ID throughout the Term. All charges, other than those listed above, imposed upon Seller or Buyer by the TDSP or another Party that are allowed or required by the PUCT, ERCOT, or any other governmental or regulatory authority, on or with respect to the acquisition, sale, delivery, and purchase of the electricity. (iv) Taxes Varies by ESI ID throughout the Term. All taxes imposed by any governmental or regulatory authority on the sale, delivery, and purchase of the electricity. Includes Seller's Texas Gross Receipts Tax and Public Utility Commission Assessment on the acquisition, sales, delivery, or purchase of the electricity. (v)Aggregator /Third $ -0- per kWh. Buyer represents that it has not entered into any contract, arrangement or Party Fee understanding with any person that may result in the obligation of Buyer or Seller to pay any finders fees, broker or agent commissions or other like payments in connection with the negotiations leading to this Agreement or the consummation of the transactions contemplated hereby. If any such fees, commissions or payments are alleged to exist or be owing, Buyer shall be responsible for all such fees, commissions and payments, and shall indemnify and hold harmless Seller from and against all costs, expenses, damages, liabilities and other charges incurred by Seller in connection with disputing and resolving any such claims. III. BILLING Multi- site -1 invoice Via Hard Copy. Net 45 Days Via Check. IV. SPECIAL Not Applicable. PROVISIONS V. USAGE Buyer may be billed in compliance with Sections 4.2 and 4.3 of the Terms and Conditions for usage greater than or TOLERANCES lesser than the following tolerances: Excess Usage Tolerance: 20% per month Under Usage Tolerance: 20% per month VI. TERMS The attached Terms and Conditions, Exhibit A, and Exhibit A -1 are incorporated herein by reference. AND CONDITIONS Buyer Legal Name Seller Legal Name: City of Southlake TXU Energy Retail Company LLC, a a Texas limited liability compan By (Name of General Partner or Agent if applicable): Buyer Signature: Seller Signature: Officer's Printed Name: Officer's Printed Name: John Detzel Title: Title: Vice President Date: Date: city_of_southlake ASE -fixed tg 100207 tms102307 r (2).doc CONFIDENTIAL TXU LF- Fixed - Shaped /Extendable 070107 TERMS AND CONDITIONS I. DEFINITIONS "Agreement" means the Agreement for the Supply of Electricity that is subject to these Terms and Conditions. " ERCOT" means the Electric Reliability Council of Texas, Inc. "ESI ID" means an Electric Service Identifier designation for a particular TDSP Point of Delivery. "POLR" means the provider of last resort as designated by the PUCT. "Power" means all of Buyer's non - residential electricity requirements for each of the Premise(s). "PUCT" means the Public Utility Commission of Texas. "Premise" means individually, and "Premises" means collectively, each parcel of real property and improvements identified on Exhibit A. "REP" means a retail electric provider that is certified by the PUCT. "Seller Point of Delivery" means the point where Seller's suppliers' conductors are connected to the applicable TDSP's conductors. "TDSP Point of Delivery" means the point where the applicable TDSP's conductors are connected to Buyer's conductors at or near Buyer's Premise(s). "TDSP" means a transmission and /or distribution provider under the jurisdiction of the PUCT that owns and maintains a transmission or distribution system for the delivery of energy. "Term" means the time period during which the Agreement is effective as specified in Article I of the Agreement. "Terms and Conditions" means these Terms and Conditions for Supply of Electricity. Capitalized terms not defined in these Terms and Conditions shall have the meaning identified in the Agreement. II. SUBJECT MATTER AND QUANTITY. During the Term Seller shall sell to Buyer and Buyer shall purchase from Seller all of Buyer's Power for the listed Premises. Seller shall cause delivery of the Power to the applicable Seller Point(s) of Delivery and Buyer shall receive the Power at the ESI ID(s) at the TDSP Point(s) of Delivery. Seller shall use the Power only at the Premise(s). A Premise may have one or more TDSP Points of Delivery. III. SECURITY AND CREDIT REQUIREMENTS. Buyer shall provide the amount of security, if any, stated in Article IV of the Agreement before the Primary Term Start Date. Additionally, if Seller later determines in good faith that there has been a material adverse change in Buyer's credit status or financial condition and /or in electricity market conditions and /or Buyer fails to pay all Charges when due, Seller may demand additional security from Buyer in an amount and form reasonably acceptable to Seller. Buyer shall provide security to Seller within five business days of such request. Seller shall return security (and accrued interest, if applicable, at the One Year Treasury Constant Maturity index published by the Federal Reserve Board as of the first auction date after January 1 of the applicable year) less any amounts owed by Buyer under the Agreement, when Seller reasonably determines that such security is no longer necessary. IV. CALCULATION AND PAYMENT OF CHARGES. 4.1 Seller will invoice Buyer for the Charges listed in Article II of the Agreement for Power delivered to the Premise(s) during each monthly billing cycle of the Term. Buyer shall pay Seller the Charges identified on each invoice by the due date listed in Article III of the Agreement. All past due amounts shall accrue interest at a rate equal to three percent (3 %) above the "Prime Rate" published in The Wall Street Journal under "Money Rates" or an appropriate substitute should such rate cease to be published, unless a lesser amount is required by law, from the date the payment was originally due until paid (including accrued interest). 4.2 If Buyer's total consumption of Power for all Premises in a calendar month exceeds the total amount listed in Exhibit A -1 for such month by more than the excess usage percentage specified in Article V of the Agreement, then Seller may charge Buyer 105.0% of the then current Market Price (as defined below) as the "Contract Price" for such excess quantities. The "Market Price" for purposes of Sections 4.2 and 4.3 only shall be the weighted average of the ERCOT market clearing price for energy for the applicable congestion zone(s) in the applicable month; plus all charges associated with Ancillary Services, Qualified Scheduling Entity Charges, ISO Fees, Renewable Energy Credit Charge, Market Clearing Price for Capacity, Zonal (intrazonal and interzonal) Congestion, Line Losses (transmission and distribution provider), and UFE. 4.3 Unless caused by a Force Majeure event or Seller's breach, if Buyer's total consumption of Power for all Premises in a calendar month is less than the total amount listed in Exhibit A -1 for such month by more than the under -usage percentage specified in Article V of the Agreement, then, in addition to paying for the Power actually consumed, Buyer agrees to pay Seller for the cost of liquidating the Shortfall Quantity. The "Shortfall Quantity" shall mean [((100% minus the under -usage percentage specified in Article V of the Agreement) multiplied by (the aggregated monthly contract usage quantities listed on Exhibit A -1 for the applicable month)) minus (the aggregated quantities consumed by Buyer during the month)]. The cost of liquidating the Shortfall Quantity shall be TXU 111 ` 3 Energy the positive amount, if any, calculated as follows: [(the Shortfall Quantity) multiplied by (the Contract Price minus 95.0% of the then current Market Price for the Shortfall Quantity)]. 4.4 (a) Seller reserves the right to allocate measured consumption to the applicable calendar month for any ESI IDs not installed with an interval data recorder ( "IDR "), or for IDRs in which the information was not received by Seller in a useful format. (b) If, for whatever reason, the proper meter readings are not communicated to Seller by the TDSP in time for Seller to prepare the invoice for the Charges, Seller shall have the right to reasonably estimate the quantity of the electricity consumed and Buyer shall pay the Charges for the estimated amounts subject to any adjustments which may be necessary following the reading. 4.5 Except as may be prohibited by law, if upon termination of the Agreement for any reason Buyer fails to either switch to another supplier or execute a replacement agreement with Seller, Seller may switch Buyer to the POLR. In any event, if Seller is ever determined to have been Buyer's electricity supplier for a period after the expiration of the Agreement, then, until Buyer either executes a replacement agreement with Seller or switches to another supplier, Seller may charge Buyer, as the Contract Price, a price per kWh equivalent to Seller's then current "standard list price offer." 4.6 If (a) Buyer changes any TDSP Point(s) of Delivery to a delivery service voltage level that is different than the voltage level in place at the time the Agreement became effective; (b) Buyer changes the existing electric meter at any TDSP Point(s) of Delivery to a different size /capacity; or (c) Buyer causes the ERCOT Deemed Load Profile Type for any of its Premises to change; then Seller may adjust the Contract Price in order to reflect any such change; and Buyer, in such event, agrees to pay such new Contract Price for all Power delivered to each such changed ESI ID during each such billing cycle. During the Term, Buyer shall not consume electricity at the Premises from any source (including self - generation) except for Power sold by Seller; however, Buyer may consume electricity from emergency generation during power outages at the Premises and for purposes of testing such emergency generation. V. ADDITION AND REMOVAL OF PREMISES. 5.1 Buyer shall be entitled to add one or more Premises (and associated electricity quantities as reasonably determined by Seller) to the Agreement by submitting its written request to add the Premise(s) on Seller's then current standard form for such a request. Buyer shall have the option to (a) enter into an separate Agreement with Seller covering the additional Premise(s) at then current market based prices on Seller's standard form of Agreement for the applicable product, or (b) pay Seller the positive amount, if any, calculated as follows: [(the kWh amount of the quantities of electricity attributable to the additional Premise(s) (the "Premise Addition Quantities ")) multiplied by (the then current market based pricing per kWh as reasonably determined by Seller minus the Contract Price under this Agreement) plus Seller's reasonable costs incurred to perform the addition) (the "Premise Addition Payment ") and for the remainder of the Agreement Term shall be subject thereafter to the Contract Price contained herein for such electricity, the monthly usage tolerances, and other terms of the Agreement for the balance of the Agreement Term. Buyer shall pay Seller each Premise Addition Payment within 20 days of Seller's invoice for same. 5.2 Buyer shall be entitled to remove one or more, but not all, Premises (and associated electricity quantities as reasonably determined by Seller) from the Agreement only if Buyer either (a) sells or leases the Premises or (b) closes the Premises for the remainder of the Term. Buyer shall provide Seller with thirty days prior written notice if it intends to remove a Premise from the Agreement. Unless Buyer sells or leases a Premises to a purchaser or lessee who (a) first executes a new contract with Seller upon the same terms as Buyer's contract and (b) is creditworthy in Seller's reasonable discretion, Seller shall have the right to charge Buyer if Buyer removes a Premise from the Agreement. Such charge shall be the positive amount, if any, calculated as follows: [((the kWh amount of the quantities of electricity attributable to the Premise removed (the "Premise Liquidated Quantities ")) multiplied by (the Contract Price minus ninety - five percent (95.0 %) of the then current market value as reasonably determined by Seller)] (the "Premise Liquidation Payment "). Buyer shall pay Seller each Premise Liquidation Payment within 20 days of Seller's invoice for same. In either event, Exhibits A and A -1 shall be deemed modified to reflect the deletion of such ESI IDs and associated electricity quantities VI. REMEDIES UPON TERMINATION. 6.1 A material breach of the Agreement includes: (a) the failure of either Party to make any payment due to the other Party pursuant to the terms of the Agreement and such failure is not cured within 10 calendar days following written notice of such failure; (b) the failure of a Party to comply with any other material term of the Agreement and such failure is not cured within 30 calendar days following written notice of such failure; (c) a Party becomes or declares that it is insolvent or bankrupt, or becomes or declares that it is the subject of any city_of_southlake ASE -fixed tg 100207 tms102307 r (2).doc CONFIDENTIAL TXU LF- Fixed - Shaped /Extendable 070107 proceedings, or takes any action whatsoever, relating to its bankruptcy, liquidation or insolvency, or is not generally paying its debts as they become due; (d) if Buyer enters into another electricity supply agreement for any Premise(s) with another REP that covers any period during the Agreement Term; (e) if Buyer sells, leases, closes or otherwise conveys or assigns any of the Premises, except as allowed under Article IV of the Agreement, Article V or Section 12.2 hereof; or (f) the failure of Buyer to timely pay security to Seller. If either Party commits a material breach of the Agreement or these Terms and Conditions, the non - breaching Party may send written notice to the breaching party requesting a cure as set forth above and shall describe the breach in reasonable detail. If a breach is not cured during the time period set forth above or if no cure period is available for the applicable type of material breach, then the non - breaching Party may, in its sole discretion, and without prejudice to any other rights under the Agreement, at law or in equity, immediately terminate the Agreement. 6.2 (a) If Seller terminates the Agreement due to a material breach by Buyer, (1) Seller may, except as may be prohibited by law: (A) disconnect or order the TDSP to disconnect electric service to the Premise(s) or (B) transfer Buyer to the POLR, and (2) Buyer shall pay Seller, in addition to all reasonable direct costs and expenses incurred by Seller as a result of such breach and termination and all amounts Buyer may owe Seller with respect to time periods prior to the termination, the positive amount, if any, calculated as follows: [((the remaining quantities of electricity reflected on Exhibit A -1 after such termination ( "the Remaining Quantities ")) multiplied by (the Contract Price minus the then current market value as reasonably determined by Seller)) plus (the value of any term extension option rights, if any, that Seller may have under the Agreement)] and such amount shall be due and payable within 30 calendar days following such termination. (b) If Buyer terminates the Agreement due to a material breach by Seller, (1) Buyer shall have the right to select any other REP as its electricity provider, and (2) Seller shall pay Buyer, in addition to all reasonable direct costs and expenses incurred by Buyer as a result of such breach and termination, the positive amount, if any, calculated as follows: [the Remaining Quantities multiplied by (the sum of (Y) the lesser of (i) the then current market value as reasonably determined by Seller, (ii) the price offered by the POLR, or (iii) a REP's standard list price offer; minus (Z) the Contract Price)] and such amount shall be due and payable within thirty (30) calendar days following such termination. VII. FORCE MAJEURE. If either Party is unable to perform its obligations, in whole or in part, due to an event of force majeure as defined herein, then the obligations of the affected Party (other than the obligations to pay any amounts arising prior to the force majeure event) shall be suspended to the extent made necessary by such event. The term "Force Majeure" shall mean any act or event that is beyond the claiming Party's control (and which could not be reasonably anticipated and prevented through the use of reasonable measures), including, without limitation, the failure of the TDSP to receive, transport or deliver, or otherwise perform, unless due to the failure of the Party claiming Force Majeure to perform such Party's obligations hereunder, and an event of force majeure of Seller's suppliers. The Party suffering the event of Force Majeure shall give written notice of such event of Force Majeure in reasonably full particulars to the other Party, as soon as reasonably possible. Any such event of Force Majeure shall, so far as possible, be remedied with all reasonable dispatch. Force Majeure shall not include (i) the opportunity for Seller to sell the electricity to be sold under the Agreement to another party at a higher price than that set forth in the Agreement, (ii) the opportunity for Buyer to purchase electricity for its Premise(s) from another party at a lower price than that set forth in the Agreement, or (iii) the inability of either Party to pay its bills under the Agreement or any other of its bills. VIII. WARRANTIES AND LIMITATIONS OF LIABILITIES. 8.1 SELLER HEREBY WARRANTS TO BUYER THAT AT THE TIME OF DELIVERY OF ELECTRICITY HEREUNDER IT WILL HAVE GOOD TITLE AND /OR THE RIGHT TO SELL SUCH ELECTRICITY, AND THAT SUCH ELECTRICITY WILL BE FREE AND CLEAR OF ALL LIENS AND ADVERSE CLAIMS. TITLE WILL PASS TO BUYER AT THE TDSP POINT OF DELIVERY. EXCEPT AS PROVIDED FOR IN THE FIRST SENTENCE OF THIS SECTION 8.1, SELLER EXPRESSLY DISCLAIMS AND MAKES NO WARRANTIES, WHETHER WRITTEN OR VERBAL, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY EXPRESS, IMPLIED, OR STATUTORY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND BUYER WAIVES ALL SUCH WARRANTIES. 8.2 ANY LIABILITY UNDER THE AGREEMENT WILL BE LIMITED TO DIRECT ACTUAL DAMAGES AS THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. NEITHER PARTY WILL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, WHETHER IN TORT OR CONTRACT OR OTHERWISE IN CONNECTION WITH THE AGREEMENT. THE LIMITATIONS IMPOSED ON REMEDIES AND DAMAGE MEASUREMENT WILL BE WITHOUT REGARD TO CAUSE, INCLUDING NEGLIGENCE OF ANY PARTY, WHETHER SOLE, JOINT, CONCURRENT, ACTIVE OR PASSIVE. IX. NOTICES. All notices required or permitted under the Agreement shall be in writing and shall be deemed to be delivered (i) when deposited in the United States mail (first class as to all notices other than disconnection, termination and /or material breach notices, and registered or certified as to all disconnection, termination and /or material breach notices), postage prepaid, (ii) when deposited with an overnight delivery service, prepaid, to Buyer's address or Seller's address as shown at the beginning of the Agreement, or to such address as either Party may from time to time designate as the address, or (iii) in the case of hand delivery, when delivered to a representative of either Party by a representative of the other Party. X. APPLICABLE LAW AND REGULATIONS. 10.1 The applicable Tariff(s) for Retail Delivery Service (the "Tariff') of the appropriate TDSP(s) serving Buyer's Premise(s) is incorporated herein to the same extent as if fully set forth herein. 10.2 The Agreement is subject to, and both Parties agree to obey and comply with, all applicable laws, regulations, rules and orders. However, notwithstanding the foregoing, both Parties agree that, to the fullest extent allowed by law, (i) it is their intention to agree to terms and conditions different from those set forth in the "Customer Protection Rules for Retail Electric Service" as amended, or as may be amended in the future (the "Customer Rules ") currently beginning with Section 25.471 of the PUCT's Substantive Rules Applicable to Electric Service Providers; (ii) in the event that there is any conflict between the terms contained in the Agreement and the Customer Rules, the Agreement shall control; and (iii) the Parties expressly acknowledge that certain terms and conditions addressed in the Customer Rules may not be provided for or referred to in the Agreement, and, in such event, it is the intent of the Parties that such terms and conditions are not applicable to the Parties. 10.3 hi the event a judicial decision" order, new laNi or regulation" or a change in laR or regulation, requires a material change in the method by -,vhich the price is calculated under the Agreement" or materially and directly erects a Party's ability to Perform its obligations thereunder, then the Party that is negatively affected shall have the right to notify the other Party" within thirty (30) calendar days after becoming aware of such detrimental change. The Parties shall use their best efforts to negotiate a modification of the Agreement so as to mitigate the impact of the event. If" after twenty (20) calendar da beyond the date of notice, the Parties have been unable to negotiate a mutually satisfactory modification to the terns of the Agreement" either Party shall have the right to terminate the Agreement upon ten (10) calendar days prior written notice to the other Pity, within forty -five (45) calendar days after the date of the original notice hereunder. In the event of such a termination, the Parties agree to settle as follows: (a) in the event the then current market value, as reasonabl determined by Seller, of all remaining quantities of electricity reflected on Exhibit A -1 aver such termination date ("the Liquidated Quantities ") is greater than the Contract Price, then Seller shall Pay to Buyer the amount equal to: the Liquidated Quantities multiplied by (such market value minis the Contract Price); (b) in the event the Contract Price is more than the then current market value, as reasonably determined by Seller, of the Liquidated Quantities, then Buyer shall Pay to Seller the amount equal to: the Liquidated Quantities multiplied by (the Contract Price minus such market value). XI. INDEMNIFICATION. 11.1 As between the Parties, Buyer assumes full responsibility for electric energy on Buyer's side (downstream) of the TDSP Point of Delivery, and agrees to and shall indemnify, defend, and hold harmless Seller, its parent company and all of its affiliates (except any which may be the TDSP serving Buyer's Premise(s)), and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Seller Group "), from and against all claims, losses, expenses, damages, demands, judgments, causes of action, and suits of any kind (hereinafter collectively referred to "Claims "), including Claims for personal injury, death, or damages to property, occurring on Buyer's side of the TDSP Point of Delivery, arising out of or related to the electric power and energy and /or Buyer's performance under the Agreement. 11.2 As between the Parties, Seller assumes full responsibility for electric energy on Seller's side (upstream) of the Seller Point of Delivery, and agrees to and shall indemnify, defend, and hold harmless Buyer, its parent company and all of its affiliates, and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (hereinafter collectively referred to as "Buyer Group "), from and against all Claims, including Claims for personal injury, death, or damages to property occurring on Seller's side of the Seller Point of Delivery, arising out of or related to the electric power and energy and /or Seller's performance under the Agreement. XII. MISCELLANEOUS. 12.1 UCC. THE PARTIES AGREE THAT THE PROVISIONS OF ARTICLE 2 OF THE UNIFORM COMMERCIAL CODE (AS CONTAINED IN THE TEXAS BUSINESS AND COMMERCE CODE) SHALL APPLY TO THE AGREEMENT AND ALL TRANSACTIONS THEREUNDER, IRRESPECTIVE OF WHETHER SUCH TRANSACTIONS ARE DEEMED TO BE A SALE OF GOODS OR THE city_of_southlake ASE -fixed tg 100207 trust 02307 r (2).doc CONFIDENTIAL TXU LF- Fixed - Shaped /Extendable 070107 PROVIDING OF A SERVICE; HOWEVER, IN THE EVENT OF A CONFLICT, THE TERMS AND PROVISIONS OF THE AGREEMENT SHALL CONTROL OVER THOSE CONTAINED IN THE UCC. NOTWITHSTANDING THE FOREGOING, THE PARTIES ACKNOWLEDGE AND AGREE THAT ALL IMPLIED RIGHTS RELATING TO FINANCIAL ASSURANCES ARISING FROM SECTION 2 -609 OF THE UNIFORM COMMERCIAL CODE (AS CONTAINED IN THE TEXAS BUSINESS AND COMMERCE CODE) OR APPLICABLE CASE LAW APPLYING SIMILAR DOCTRINES, ARE HEREBY WAIVED. 12.2 Assignment. Neither Party may assign the Agreement in whole or in part without first obtaining the other Party's prior written consent, which consent shall not be unreasonably withheld; provided that (i) Seller may assign the Agreement to any REP without obtaining Buyer's prior consent and (ii) Seller will not withhold its consent if Buyer makes assignment to a party who in Seller's reasonable opinion is creditworthy. Any assignment of the Agreement by Buyer must be in conjunction with a conveyance of legal title to all of the Premises to a single entity. The Agreement shall inure to and be binding upon the Parties hereto, and their respective successors and assigns; provided that, if a Party makes a valid assignment of the Agreement, the other Party hereby agrees that the assigning party is released from its future obligations under the Agreement. 12.3 Entirety of Agreement. It is the intention of the Parties that the Agreement shall contain all terms, conditions, and protections in any way related to, or arising out of, the sale and purchase of the electricity, and supersedes, for the Term, all prior such agreements between the Parties hereto, whether written or oral, as to the subject Premises. Both Parties have agreed to the wording of the Agreement and any ambiguities therein shall not be interpreted to the detriment of either Party merely by the fact that such Party is the author of the Agreement. The Agreement may not be modified or amended except in writing, duly executed by the Parties hereto. 12.4 Waiver of Rights. A waiver by either Party of any breach of the Agreement, or the failure of either Party to enforce any of the terms and provisions of the Agreement, will not in any way affect, limit or waive that Party's right to subsequently enforce and compel strict compliance with the same or other terms or provisions of the Agreement. 12.5 Third Party Beneficiary /Rights. Nothing in the Agreement shall create, or be construed as creating, any express or implied benefits or rights in any person or entity other than the Parties. 12.6 Survival. No termination or cancellation of the Agreement will relieve either Party of any obligations under the Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties and obligations of indemnity. 12.7 Confidentiality. Seller and Buyer agree to keep all terms and provisions of the Agreement confidential and not to disclose the terms of the same to any third parties without the prior written consent of the other Party; provided, however, each Party shall have the right to make such disclosures, if any, to governmental agencies and to its own agents, attorneys, auditors, accountants and shareholders as may be reasonably necessary. If disclosure is sought through process of a court, or a state or federal regulatory agency, the Party from whom the disclosure is sought shall resist disclosure through all reasonable means and shall immediately notify the other Party to allow it the opportunity to participate in such proceedings. 12.8 Forward Contract. The Agreement constitutes a "forward contract" as defined in Section 101(25) of the U.S. Bankruptcy Code ( "Bankruptcy Code "). The Parties agree that (i) Seller is a "forward contract merchant" as defined in Section 101 (26) of the Bankruptcy Code, (ii) the termination rights of the Parties will constitute contractual rights to liquidate transactions, (iii) any payment related hereto will constitute a "settlement payment" as defined in Section 101 (51A) of the Bankruptcy Code, and (iv) Sections 362, 546, 553, 556, 560, 561 and 562 of the Bankruptcy Code shall apply to the Parties. 12.9 Representations and Warranties Buyer hereby represents and warrants to Seller as follows: (a) Buyer is legally authorized to change the REP for all of the Premises, (b) Buyer's execution and delivery of this Agreement does not, and the performance by Buyer of its obligations hereunder will not, violate any contract or agreement to which Buyer is a party or pursuant to which its assets are bound, and (c) this Agreement is a valid and binding obligation of Buyer, enforceable against it in accordance with its terms. Upon execution of the Agreement, Buyer authorizes Seller to become Buyer's REP for the Term and to act as Buyer's agent for the sole purpose of effecting any such change, if necessary. If any of Buyer's representations or warranties hereinabove are untrue when made or fail to be true at all times during the Term, Buyer shall hold Seller harmless from and against any third party claims (and related costs and expenses) arising out of or relating thereto. 12.10 Further Assurances. Buyer and Seller agree to provide such information, execute and deliver any instruments and documents and to take such other actions as may be necessary or reasonably requested by the other Party, which are not inconsistent with the provisions of the Agreement and which do not involve the assumptions of obligations other than those provided for in the Agreement, in order to give full effect to the Agreement and to carry out the intent of the Agreement. 12.11 Headings. The headings included throughout the Agreement are inserted solely for convenience and reference purposes only shall not be construed or considered in interpreting any terms or provisions of the Agreement. 12.12 Severability. If any provision in the Agreement is determined to be invalid, void, or unenforceable by any governmental authority having jurisdiction, then such determination will not invalidate, void, or make unenforceable any other provision or covenant in the Agreement. 12.13 Dispute Resolution. PURSUANT TO THE FEDERAL ARBITRATION ACT, THE PARTIES HEREBY AGREE THAT ANY CONTROVERSY, CLAIM OR ALLEGED BREACH, INCLUDING BUT NOT LIMITED TO TORTS AND STATUTORY CLAIMS, ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE NEGOTIATION OF THIS AGREEMENT SHALL BE RESOLVED BY BINDING ARBITRATION CONDUCTED UNDER THE AMERICAN ARBITRATION ASSOCIATION ( "AAA ") COMMERCIAL ARBITRATION RULES. DEMAND FOR ARBITRATION MUST BE MADE NO LATER THAN THE TIME THAT SUCH ACTION WOULD BE PERMITTED UNDER THE APPLICABLE TEXAS STATUTE OF LIMITATION. ANY DISPUTES REGARDING THE TIMELINESS OF THE DEMAND FOR ARBITRATION SHALL BE DECIDED BY THE ARBITRATOR(S). JUDGMENT UPON THE AWARD RENDERED BY THE ARBITRATOR(S) MAY BE ENTERED IN ANY COURT HAVING JURISDICTION THEREOF IN ORDER TO OBTAIN COMPLIANCE THEREWITH. ANY CASE IN WHICH ANY CLAIM, OR COMBINATION OF CLAIMS, EXCEEDS $500,000 WILL BE DECIDED BY THE MAJORITY OF A PANEL OF THREE (3) NEUTRAL ARBITRATORS. IN RENDERING THE AWARD, THE ARBITRATOR(S) WILL DETERMINE THE RIGHTS AND OBLIGATIONS OF THE PARTIES ACCORDING TO THE LAWS OF THE STATE OF TEXAS (EXCLUDING ANY CONFLICT OF LAW PRINCIPLES). ANY DISCOVERY IN ADVANCE OF THE ARBITRATION HEARINGS SHALL BE CONDUCTED CONSISTENT WITH THE DISCOVERY PERMITTED UNDER THE FEDERAL RULES OF CIVIL PROCEDURE; PROVIDED, HOWEVER, EACH PARTY SHALL BE ENTITLED TO: NO MORE THAN 5 DEPOSITIONS OF NO MORE THAN 5 HOURS PER SIDE PER DEPOSITION, NO MORE THAN 1 WRITTEN SET OF INTERROGATORIES, AND NO MORE THAN 2 REQUESTS FOR PRODUCTION, UNLESS THE MAJORITY OF THE ARBITRATORS GRANT THE PARTIES THE RIGHT TO ADDITIONAL DISCOVERY. THE ARBITRATION PROCEEDINGS AND HEARINGS WILL BE CONDUCTED IN DALLAS, TEXAS OR AT SUCH OTHER PLACE AS MAY BE SELECTED BY MUTUAL AGREEMENT. EACH PARTY SHALL BEAR ITS OWN COSTS AND EXPENSES (INCLUDING ATTORNEY FEES), AS WELL AS AN EQUAL SHARE OF THE ARBITRATORS' AND ADMINISTRATIVE FEES OF ARBITRATION. NO PARTY OR ARBITRATOR(S) MAY DISCLOSE THE EXISTENCE, CONTENT OR RESULTS OF ANY ARBITRATION HEREUNDER WITHOUT THE PRIOR WRITTEN CONSENT OF ALL PARTIES. 12.14 Contract Execution; Original Documents. Each Party agrees that the Agreement, as well as any amendments thereto, may be executed by facsimile transfer of an originally signed document, each of which will be as binding on the Party or Parties as an original document. Each Party understands and agrees that such facsimiles shall be deemed to constitute the original of such documents, and that any objections that such facsimiles do not constitute the "best evidence" of the documents, or that such facsimiles do not comply with the "Statute of Frauds," as well as any other similar objections to the validity or admissibility of the document, are hereby expressly waived by the Parties. city_of_southlake ASE -fixed tg 100207 tms102307 r (2).doc CONFIDENTIAL TXU LF- Fixed - Shaped /Extendable 070107 Addendum f) TXU Energy Price guarantees can be locked by acceptance of the Agreement for Service of Electricity contract package and provisions of any associated Exhibits or Amendments. TXU Energy offers commodity pricing in various forms. Currently all pricing options are commodity only with regulated delivery charges from the Transmission and Distribution Service Provider as "pass through" charges. For these pricing options, the following is a list of charges included in our commodity price and in the regulated TDSP charges that are passed through. Price Component Fixed, Heat Rate or MCPE Commodity: Wholesale price of energy Fixed Capacity / demand charge Fixed Fuel costs Fixed TDSP line losses Fixed Unaccounted for energy (UFE) Fixed Standing charge Fixed Net 15 billing terms Fixed Summary billing Fixed Independent System Operator (ISO) Ancillary Services: Regulation Service (Regulation Up and Regulation Down) Fixed Responsive reserve service Fixed Balancing energy service Fixed Reliability Must Run (RMR) ERCOT fees Fixed Replacement reserve service Fixed Non - spinning reserve service Fixed Black start service Fixed ERCOT ISO fee Fixed Renewable energy surcharge Fixed Congestion Management: All congestion charges Fixed Uplifts Fixed Qualified Scheduling Entity (QSE) Fees: Schedule coordination service Fixed System control service Fixed Cost for nominating required quantities of energy Fixed Dispatching service Fixed Swing (Selected in increments of +/- 5 %, 10 %, 15% or 20%): Commodity imbalance charges (inside /outside the bandwidth) As provided in the Agreement for Supply of Electricit Regulated Delivery Charges Transmission charges Pass Through Distribution charges Pass Through System benefit fund Pass Through Nuclear decommissioning charge Pass Through Customer charge Pass Through Discretionary service fees Pass Through Stranded Costs: Competitive Transition Charge (CTC) Pass Through Transition Charge (TC) Pass Through Taxes and Miscellaneous Fees: Sales tax (If applicable) Pass Through Gross receipts tax (If applicable) Pass Through Public Utility Commission Assessment PUCA) fee Pass Through Addendum to the Agreement for Supply of Electricity 05 -11 -07 AMENDMENT TO THE TERMS AND CONDITIONS FOR SUPPLY OF ELECTRICITY The following new definitions are hereby added to Section I of the Terms and Conditions, to be inserted in alphabetical order: "Code" means Texas Local Government Code, Title 8, Chapter 271, Subchapter I, Sections 271.151 through 271.160. "Covered Contract" means a "Contract subject to this subchapter," as such phrase is defined in Section 271.151(2) of the Code. II. The last sentence of Section 4.1 of the Terms and Conditions shall be deleted in its entirety and replaced with the following: Buyer shall notify Seller in writing on or before the due date if Buyer is withholding payment of any disputed portion of the Charges and shall include a list of specific reasons for the dispute; provided, however, that the undisputed portions of the Charges shall remain due and payable on the due date. If Buyer gives such notice of dispute, the Parties shall pursue diligent, good faith efforts to resolve the dispute during the thirty (30) calendar days following Seller's receipt of the notice. Any amount found payable (including interest) shall be paid within fifteen calendar days of the dispute being resolved. If the Parties are unable to resolve the dispute during the thirty (30) day period and it is subsequently determined that Buyer should pay Seller all or part of the disputed amount, Seller may require that Buyer pay interest on such past due amount from the date such payment was originally due until the same is paid. All past due amounts shall accrue interest at a rate equal to the lesser of (i) one percent (1 %) above the "Prime Rate" as published on the first business day of July of Buyer's preceding fiscal year that does not fall on a Saturday or Sunday in the Wall Street Journal under "Money Rates" or an appropriate substitute should such rate cease to be published, or (ii) the highest rate allowed by law, from the date the payment was originally due until paid (including accrued interest). III. The following Section 4.7 shall be added to the Terms and Conditions: 4.7 If Buyer notifies Seller in writing of a justifiable concern regarding the accuracy of an invoice, Seller will make the records in its possession that are reasonably necessary to verify the accuracy of the bill available to Buyer during normal business hours. It is understood and agreed that such information and records provided under this Section 4.8 constitute Seller's proprietary and confidential information, the release of which could hinder or harm Seller's competitive position; therefore, such information and records are not intended to be public information under the Texas Public Information Act and shall not be released by Buyer, unless otherwise determined by the Texas Attorney General or a court of competent jurisdiction. Nothing in this section will require Buyer to pursue a legal challenge in any court to seek to overturn a ruling by the Texas Attorney General's Office or a court requiring disclosure pursuant to the provisions of the Public Information Statutes, but Buyer shall (i) cooperate and assist Seller if Seller pursues such a challenge and (ii) make no disclosure until, if, and when Seller's challenge is finally denied. All information and records provided hereunder constitute Seller's property and such information, records, and copies thereof, as well as all notes taken therefrom, shall be returned to Seller promptly after the resolution of the concerns regarding the accuracy of the invoice. IV. The following Section 4.8 shall be added to the Terms and Conditions: 4.8 Buyer represents and warrants that as a political subdivision or agency of the State of Texas it is exempt from state sales taxes pursuant to Section 151.309 of the Texas Tax Code. Seller may request a certificate of exemption from Buyer and Buyer shall provide such certificate within a reasonable period of time. Thereafter, Seller, to the extent that it is not required to collect or pay such taxes, will not flow through the costs of such taxes hereunder to Buyer. V. Section V shall be deleted in its entirety and replaced with the following: 5.1 (a) SITE SUBSTITUTION. In the event Buyer sells, closes, or leases a particular Premise, without selling, closing, or leasing all of the Premises, Buyer shall have the right to delete that particular Premise from Exhibit A through the end of the Term, without terminating the Agreement, provided that Buyer simultaneously adds a new Premise that (i) is in the same ERCOT congestion zone, (ii) is in the same ERCOT weather zone, and (iii) has OTXU Energy the same ERCOT deemed load profile as the deleted Premise. The projected consumption of the new Premise must be within 95- 105% of the consumption projected for the deleted Premise. No adjustment will be made to the quantities on Exhibit A -1. If Buyer desires to exercise the terms of this Section 5.1 with regard to a particular Premise, Buyer shall notify Seller in writing at least sixty calendar days prior to the effective date of the deletion of the Premise and the addition of the new Premise. During the Term, Buyer shall have the right to exercise the terms of this Section 5.1(a) for no more than a total of ten Premises listed on Exhibit A. Additions and deletions of Premises not made in accordance with this subparagraph may be made only in accordance with Section 5.1(b) hereof. 5.1 (b) ADD /DELETE Buyer shall have the limited right to add ESI IDs to, or delete some but not all ESI IDs from, the Agreement. The addition and deletion of ESI IDs will be done without modifying the aggregated quantities of electricity set forth on the applicable Exhibit A -1, until the cumulative total quantities of electricity attributable to all such additional and /or deleted ESI ID(s) equal five percent (5 %) of the aggregated quantities originally listed on such Exhibit A -1 for the Primary Term of the Agreement (the "Add /Delete Tolerance Range "). Buyer may make a request to add ESI IDs once per business day as a single combined addition request, and Buyer may make a request to delete ESI IDs once per business day as a single combined deletion request. In either such event, in order to initiate either the addition or the deletion of ESI IDs from the Agreement, Buyer shall submit its request to Seller with as much prior notice as is practicable, using Seller's then current form for such request, Seller shall reasonably determine the quantities of electricity that are applicable to each added or deleted ESI ID, and Seller will examine all requests in order to determine whether the request(s) is within the Add /Delete Tolerance Range. There shall not be any "netting" of additions and deletions; each request to either add or delete shall be a separate request. The applicable Exhibit A shall be deemed modified to reflect the addition and deletions of such ESI IDs. Buyer's sending of a request to Seller to add or delete ESI IDs shall be considered Buyer's authorization to charge the cost of the request, as provided below, once Buyer has reached the Add /Delete Tolerance Range as the result of ESI ID additions and /or deletions. (c) Once Buyer has reached the Add /Delete Tolerance Range as the result of ESI ID additions and /or deletions, with regard to (i) any future ESI ID addition(s) and (ii) if applicable, any portion of the addition request that caused Seller to exceed the Add /Delete Tolerance Range, Seller shall have the right to charge Buyer up to the total cost of such request, i.e., the positive amount, if any, calculated as follows: [(the kWh amount of the quantities of electricity attributable to the ESI ID addition request, the "ESI ID Additional Quantities ") multiplied by (the then current market based pricing per kWh as reasonably determined by Seller, minus the contract price per kWh according to the Agreement)] (the "ESI ID Addition Payment "). Upon being invoiced by Seller, Buyer shall pay such amount to Seller within twenty (20) calendar days. The applicable Exhibits A and A -1 shall be deemed modified to reflect the addition of such ESI IDs and associated electricity quantities. Any ESI IDs and associated ESI ID Additional Quantities added hereunder to the Agreement shall be subject thereafter to the contract pricing, monthly contract usage tolerances and other provisions of the Agreement. (d) Once Buyer has reached the Add /Delete Tolerance Range as the result of ESI ID additions and /or deletions, then with regard to (i) any future ESI ID deletion(s) and (ii) if applicable, any portion of the deletion request that caused Seller to exceed the Add /Delete Tolerance Range: (1) In the event a new owner or lessee of a Premise (i) is willing to sign a new Agreement with Seller for such Premise upon the same terms as Buyer's Agreement, (ii) is deemed creditworthy in Seller's reasonable opinion, and (iii) the new owner or lessee and Seller can legally enter into such Agreement in accordance with the rules and regulations of the PUCT, then, provided that such a contract is fully executed between the new owner or lessee and Seller, the Premise (and the associated ESI IDs and electricity quantities) will be deleted from the Agreement and Buyer will not owe any compensation to Seller with respect to such deletion (a "Premise Buyout "); otherwise, Version: AM -Local Government - 041307 Page 6 of 9 CONFIDENTIAL (2) Seller shall have the right to charge Buyer up to the total cost of such request, i.e., the positive amount, if any, calculated as follows: [(the kWh amount of the quantities of electricity attributable to the ESI ID deletion request, the "ESI ID Liquidated Quantities ") multiplied by (the contract price per kWh that Buyer would have paid for the ESI ID Liquidated Quantities through the end of the Term according to the Agreement, minus ninety -five percent (95.0 %) of the then current market value as reasonably determined by Seller)] (the "ESI ID Liquidation Payment "). Upon being invoiced by Seller, Buyer shall pay the amount of the ESI ID Liquidation Payment to Seller within twenty (20) calendar days. VI. Section 6.2(a) of the Terms and Conditions shall be deleted in its entirety and replaced with the following: 6.2(a) If Seller terminates the Agreement due to a material breach by Buyer, (1) Seller shall transfer Buyer to the POLR provided; however, pursuant to PUCT rules that forbid a REP from switching a delinquent paying customer to the POLR and notwithstanding anything contained in the Agreement to the contrary, Seller shall have the right to order the TDSP to disconnect electric service to Buyer's Premise(s) after the requisite notice and opportunity to cure if the Agreement is terminated under Section 6.1(a) due to Buyer's material breach in failing to make payment due to Seller; however, Seller shall not have the right to order the TDSP to disconnect electric service (i) for the non - payment of amounts that are subject to a bona fide dispute, (ii) prior to termination of the Agreement, or (iii) for a termination of the Agreement due to a material breach other than non- payment, and (2) Buyer shall pay Seller, in addition to all reasonable direct costs and expenses incurred by Seller as a result of such breach and termination and all amounts Buyer may owe Seller with respect to time periods prior to the termination, the positive amount, if any, calculated as follows: [((the remaining quantities of electricity reflected on Exhibit A -1 after such termination ( "the Remaining Quantities ")) multiplied by (the Contract Price minus the then current market value as reasonably determined by Seller)) plus (the value of any term extension option rights that Seller may have under the Agreement)] and such amount shall be due and payable on or before thirty (30) calendar days following such termination. VII. The following Sections 6.3 and 6.4 shall be added to the Terms and Conditions: 6.3 The Parties agree that if (i) Buyer is unable to allot or appropriate sufficient funds for Buyer's fiscal year(s) that follow the initial fiscal year of the Term to continue the purchase of the total quantity of electricity covered by the Agreement, and (ii) otherwise has no legally available funds for the purchase of electricity, Buyer may terminate the Agreement at the end of Buyer's then current fiscal year by (a) giving Seller ninety (90) calendar days written notice to Seller and (b) enclosing therewith a sworn statement that the foregoing conditions exist. In this sole event, Buyer shall not be obligated to make contract payments beyond the end of the then current fiscal year. Notwithstanding the foregoing, Buyer covenants and represents to Seller that (a) Buyer has budgeted and has available sufficient funds to comply with its obligations under the Agreement for the current fiscal year, (b) there are no circumstances presently affecting Buyer that could reasonably be expected to adversely affect its ability to budget funds for the payment of all sums due under the Agreement, (c) Buyer believes that funds can be obtained in amounts sufficient to make all contract payments during the full Term and intends to make all required contract payments for the full Term, (d) Buyer covenants that it will do all things within its power to obtain, maintain and properly request and pursue funds from which contract payments may be made, specifically, including in its annual budget requests amounts sufficient to make contract payments for the full Term, (e) Buyer will not give priority in the appropriation of funds for the acquisition or use of additional energy services, (f) if any funds are appropriated for electricity costs, such funds shall be applied first to the cost of electricity to be provided pursuant to the Agreement and that any such funds shall not be used to pay for electric power from any other electric power provider for the accounts covered in the Agreement, and (g) Buyer agrees to notify Seller in writing of such non - appropriation at the earliest practicable time subsequent to the failure to appropriate. As of the termination date under this Section 6.3, Seller shall have no further duty to supply electricity to Buyer and shall move service for Buyer's Premises to the POLR on the date of termination for non - appropriation. 6.4 If Buyer uses its inherent powers as a governmental entity under the provisions of Articles VII (except for a bond fide event of force Majeure), X, or in any other manner to circumvent the intent or terms and provisions of the Agreement, Buyer shall be responsible for contract damages caused by such action. VIII. Article 8.2 shall be deleted in its entirety and replace with the following: ANY LIABILITY UNDER THE AGREEMENT WILL BE LIMITED TO DIRECT ACTUAL DAMAGES AS THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE WAIVED. NEITHER PARTY WILL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, INCLUDING LOST PROFITS OR OTHER BUSINESS INTERRUPTION DAMAGES, WHETHER IN TORT OR CONTRACT OR OTHERWISE IN CONNECTION WITH THE AGREEMENT. THE LIMITATIONS IMPOSED ON REMEDIES AND DAMAGE MEASUREMENT WILL BE WITHOUT REGARD TO CAUSE, INCLUDING NEGLIGENCE OF ANY PARTY, WHETHER SOLE, JOINT, CONCURRENT, ACTIVE OR PASSIVE IX. Article X is hereby amended to add a new Section 10.4 to read in its entirety as follows: 10.4 The Parties hereby acknowledge and agree that this Agreement is a Covered Contract and shall be subject to all provisions of the Code. X. Article XI shall be retitled "Responsibility" and Sections 11.1 and 11.2 of the Terms and Conditions shall be deleted in their entirety and replaced with the following: 11.1 As between the Parties, Buyer assumes full responsibility for electric energy on Buyer's side (downstream) of the TDSP Point of Delivery, and agrees to the full extent allowed by law, to and shall hold harmless Seller, its parent company and all of its affiliates (except any which may be the TDSP serving Buyer's Premise(s)), and all of their respective officers, directors, shareholders, associates, employees, servants, and agents (collectively referred to as "Seller Group "), from and against all claims, losses, expenses, damages, demands, judgments, causes of action, and suits of any kind (collectively referred to "Claims "), including Claims for personal injury, death, or damages to property, occurring on Buyer's side of the TDSP Point of Delivery, arising out of or related to the electric power and energy and /or Buyer's performance under the Agreement. 11.2 As between the Parties, Seller assumes full responsibility for electric energy on Seller's side (upstream) of the Seller Point of Delivery, and agrees to and shall hold harmless Buyer, its officials, associates, employees, servants, and agents (collectively referred to as "Buyer Group "), from and against all Claims, including Claims for personal injury, death, or damages to property occurring on Seller's side of the Seller Point of Delivery, arising out of or related to the electric power and energy and /or Seller's performance under the Agreement. XI. Sections 12.6 and 12.7 of the Terms and Conditions shall be deleted in their entirety and replaced with the following: 12.6 No termination or cancellation of the Agreement will relieve either Party of any obligations under the Agreement that by their nature survive such termination or cancellation, including, but not limited to, all warranties, obligations to hold harmless, obligations to pay for electricity taken, and obligations for any breaches of contract. 12.7 Seller acknowledges that Buyer is a governmental body that is subject to public information laws, including Chapter 552 of the Texas Government Code, which requires Buyer to release any information that is defined as or deemed to be public (the "Public Information Statutes "). Subject to any Public Information Statute or related order, rule or regulation requiring disclosure, Buyer agrees to keep all terms and provisions of the Agreement, and any information and records in Seller's possession that are provided under the Agreement, confidential and not to disclose the terms of the same to any third parties without the prior written consent of Seller. It is understood and agreed that the foregoing constitutes proprietary and confidential information of Seller, the release of which could hinder or harm Seller's competitive position, and therefore is not intended to constitute public information under the Texas Public Information Act and shall not be released by Buyer, unless determined otherwise by the Texas Attorney General or a court of competent jurisdiction. Nothing in this section will require Buyer to pursue a legal challenge in any court to seek to overturn a ruling by the Texas Attorney General's Office or a court requiring disclosure Version: AM -Local Government - 041307 Page 7 of 9 CONFIDENTIAL pursuant to the provisions of the Public Information Statutes, but Buyer shall (i) cooperate and assist Seller if Seller pursues such a challenge and (ii) make no disclosure until, if, and when Seller's challenge has been finally denied. XII. Section 12.13 of the Terms and Conditions shall be deleted in its entirety and replaced with the following: 12.13 Choice of Law / Venue. THE AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAWS PRINCIPLES WHICH OTHERWISE MIGHT BE APPLICABLE. THE PARTIES RECOGNIZE THAT THE AGREEMENT IS PERFORMABLE IN PART IN DALLAS COUNTY AND IN PART IN TARRANT COUNTY. XIII A new Section 12.15 of the Terms and Conditions is hereby added to read in its entirety as follows: 12.15 Attorneys' Fees. Pursuant to Section 271.159 of the Code, in any litigation to enforce the terms of the Agreement, the prevailing party is entitled to recover its reasonable and necessary attorneys' fees from the non - prevailing party. XIV. A new Section 12.16 of the Terms and Conditions is hereby added to read in its entirety as follows: 12.16 Representation and Warranty. Buyer hereby represents and warrants to Seller that it is authorized by statute or the constitution to enter into this Agreement. Version: AM -Local Government - 041307 Page 8 of 9 CONFIDENTIAL Version: AM -Local Government - 041307 Page 9 of 9 CONFIDENTIAL x N O O O O} Q 0} 0 0 O ao 0} O O O 0} O co O 0} � O . O O co O O O N O O O O O Q O 0 O 0 0 O O O O a� d . L . L . L L 0� 06-" 0� 06-" 0� a a a a O 0 O O 0 c �X-- CL �X-- c. Y c. Z N c. U c. Z N CL Z N c. 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Q�y c. Q�y c. Q�y c. Q�y c. 613� c. 613� CL V V CL V CL V CL V CL V c. V c. V a a> O O O E O E O E O E O E O E O E E E E E E E E E E E 0) d d d d d d d d d d d d d d d d d co x x x x x x x x x x x x x x x x x i W W W W W W W W W W W W W W W W W x x x x x x x x x x x x x x x x x H H H H H H H H H H H H H H H H H (T (T (T (T (T (T (T (T (T (T OV ° v ° v ° v ° v ° v t t t t t t t t t t O N 00 O O O O O O O O O O O O O O O O O O O O LL (o LL (h LL N LL V LL N LL O J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. J .. .. Y Y Y Y Y Y Y Y Y Y y y y y y y y N N N N N N N N N N J J J J J J N N N N N N N N N N E � V � V c f f f f f f f f f f C f C f C f C f C f C f L Q f L E E E E E C � E o O o O o O o O o O o O o O o O o O o O w O w O w O w O w O w O o O Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U Q U Q U Q U Q U Q U Q U Z U 0) (2 O O 0) O 0) 0) (2 O 00 0) N N N N N .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d .. d V V V V V V V V V V V V V V V V V a a a a a a a a a a a a a a a a a U U U U U U U U U U U U U U U U U L d L d L d L d L d L d L d L d L d L d L d L d L d L d L d L d L d d d d d d d d d d d d d d d Cd C C C C C C C C C C C C C C C C C C dd C Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O H H H H H H H H H H H H H H H H H 0 U 0 U 0 U 0 U 0 U 0 U 0 U 0 U 0 U o U o U o U o U o U o U o U o U O O O O O O O O O O O O O O O O O Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N Z N 7 7 O J U Q (� C7 w Y W m N LO m (o J O J �' d J Q = Q Q J Q J N J N J N J N N m N af N N af N J N N N W N m N N N N 0 0 0 0 0 J 0 0 0 0 0 0 0 J o > o 0 J 0 m 0 0 0 U) (0 U) (0 U) (0 U) (0 (0 W (0 (fl (D W (D ( n (D W (D Q (o W (D W (0 (0 (0 W (0 > IL = X = X = X = X X = X Q X J X J X = X = X O X J X = X Q X X J X J W J W J W J W J W W W O W = W U W J W W W d' W U W W W W J W U W Y Y Y Y J Y Y Y U Y Y Y Y Q Y Y Y Y } Y w Y W Q W Q W Q W Q = Q 2 Q Q W Q Q Q L j Q 2 Q U Q Q Q >> Q O Q Q Q Q Q W 2 W 2 W 2 W 2 2 > 2 Q 2 2 U 2 W 2 > 2 Z 2 U 2 > 2 U 2 = 2 U 2 O O O O O O O O O O (0 O O O O (0 O (0 O O O LO O � O LO O Ua (n @) (n @) (n @) (n (n v (n m (n U3 (n m (n @ (n N (n m (n (o (n v (n v (n 00 (n N (n V LO (o 0) (o N r- V) 00 (0 (o V d) O 0 m N m (0 V V N V d) V (0 V 0) 1- 00 0) 0) O O n I- N 0) N N V LO O N O 00 O n m V V 00 00 (o r- m N N (0 0) O 00 N O O V V O V O V N m m m r- m r- m V O O LO N 0) m m O N (D m (D m O (D 00 V V V V LO LO LO LO LO (O (O (O r- (0 r- r- r- 0 O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V V O O O O O O O O O O O O O O O O O r— C) 0 N_ M_ 0 C O O Iz N . Cu c CD c O U C (o (o N Q O d O O O O O O O O O O O O o 0 0 0 0 0 0 0 0 0 0 0 613� Q 613� a 613� a 613� a 613� Q. Q�y Q. Q�y Q. Q�y Q. Q�y Q. 61Y a 61Y a 61Y a E E E E E E E E E E E E d d d d d d d d d d d d x x x x x x x x x x x x i W W W W W W W W W W W W yp x x x x x x x x x x x x H H H H H H H H H H H P- 0 O O 7 O O 7 O O O O : 06 LL V V LL V V V V LL O J LO O (o O J O O O O 00 J 00 O V LL N LL (h O O LL (h LL Lf) LL N LL r E r J Cl) 7 J J 7 J J LL J 7 O Y Y J Y J Y O Y 2 Y J Y J Y J Y J Y 2 Y = Y c E c E c E c c E c E c E c E c E c E c E c o o 0 o 0 o 0 o o o 0 o 0 o 0 o 0 o 0 o 0 o 0 o z U Q U Q U Q U z U Q U Q U Q U Q U Q U Q U Q U rn rn o rn o 0 o ao rn o 0 0 .. .. .. .. .. .. .. .. .. .. .. .. d d d d d d d d d d d d a a a a a a a a a a a a U U U U U U U U U U U U L L L L L L L L L L L L d d d d d d d d d d d d Cd C d d d d d d d d d C dd C C C C C C C C C C C C 0) O O N Q Q Q Q Q Q Q Q Q Q Q 0 Q (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 (0 O O O O O O O O O O O O O O O O O O O O O O O O H H H H H H H H H H H H 0 U 0 U 0 U 0 U 0 U 0 U o U o U o U o U o U o U O O O O O O O O O O O O z CO z CO z CO z CO z CO z CO z CO z CO z CO z CO z CO z CO Q ° Q J N N > N N N J N N O N Q N m N N N 0) 0) J 0) 0) 0) CO 0) 0) 0) 0) J 0) 0) 0) m � O O 0 O O O O LLI O O O O O m m m m ° m w m m > m m w m (o (o r r Y r r= r a r U r Q r r Q r Q r r X X Q X Q X ~ X J Q X J X X = X X X w~ H J H 2 H H 2 0 > - < H O H J H U H H H Q ui U) LLi ui ui ui ui O LLi af LLi Q ui w ui ° ui ui Y z Y Y Q Y F Y O Y Y Of Y D Y L: Y z Y Y U Q Q O Q a Q W- Q Q Q Q Q C1 Q = > Q O Q o Q U 2 a 2 2 Q 2 Q 2 2 2 U 2 N 2 > 2 2 m 2 J ° a z z Ln O O N O N O Ov O , O 00 O � O ° O o 0 ° O o 0 00 O ° O O O m 0) Y (6 t 7 O (o O I� d) d) O N 00 d) (h (h 0 I- (D 00 00 LO (h d) (fl LO O O I- V I- N r- 00 1- �, I- (D LO 00 I- (D (D r- N LO (o +� O LO (h I- 00 00 1- N V O V (� 00 00 O O N (h (O I- d) (h LO I- r- 00 00 00 00 00 00 00 d) d) p O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O d) N N N N N N N N N N N O I� O (h (h (h (h (h (h (h (h (h (h (h N V V V V V V V V V V V = V V V V V V V V V V V O O O O O O O O O O O IL 0 M N 0) co d r— C) O N M 0 c O . t- - O Q N Co y-+ C N C O U C co co N Q O d � � � \ \ 0- o ° = 2 �_ \$° R / \$ %k 2 \ / = g ° S o 2W±o Q § E _ _ L m k U a o Z - 0 gym/ 2 332= =aU) R \ $ C O o m �/�G2 ® ±o$\\ o £ E m = \ u a) U /0 \�0 CU _ = \ cu 2 / 2 U a cu — a) 0 \ %\w cu 0 a) 0 CD 2 eo3 %/= ~ ° E f 0 o - ._ E \ k / f ( % / $ G a / @ \ c -o k \\k�/ /U) cu CU/ o$go ® = c =¥� S e / f / ¥ > / ±G� §c /\ % CU 2fRG=o k / \ / >\ � �����/ % ° \g \ %= u /L / §g\ L co 3 3 / ° %@3 = 7 � M- / 2 2 m = - 2 2 =ms $ ®\ otR=ae o @� o = o \ 0§7/ soomca 2 R � \ \ 0- I� N_ O O N N O N N � r r r + N 0 � � O C/) W v v L L O O : jw&E LO N TL N Fu 2 a 0 L O C6 z a� CL a F a a� � N a� � a ' L N a � m d cu L O U) O CU 6 E m z ci N J 3 O V V El M W I-- O M O M lqt qqt O m r m m O M N M N M Ln O Ln r M 0) 0) LO qqt (N M r— 0) 0) (O LO M (O O LO (O O 0) r— O qqt O r r r 00 ql* I r M 00 O M G N N r Lr I� N Ln r ql* m M M LO O M M O O N I-- - I-- - LO M LO Lo M - I— Lo m N 0 O r r LO LO I-- M O r I-- M LO I-- q9t CO LO (O r LO I-- O N co co co co co co M � � co co co co co co co qqt Lo Lo Lo (O Lo q qt M W I-- O M O M lqt qqt O m r m m O M N M N M Ln O Ln r M 0) 0) LO qqt (N M r— 0) 0) (O LO M (O O LO (O O 0') r— O qqt O r r r 00 � (p r M 00 O M G N N r W I� N Ln r � G M M .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. LO O M M O O N I-- r I-- r LO M LO Lo M r I— Lo m N 0 O r r LO LO I-- M O r I-- M LO I-- qqt M LO 0 r LO I-- O N � M M M M M M M qqt M co co co co co co qqt Lo Lo Lo (O Lo O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N r r r r r r r r r r r r r r r r r r r r r r r r O O O O O O O O O O O O O O O O O O O O O O O O N N M M M 1-- M M O N N M M M 1-- M M O r r O O O O O O O O O r r r O O O O O O O O O r W, 4- O N O) co d r— C) O N M O r C O O Q N c a� c O U c co co a� Q 0 d M qqt O O O O M LO I-- M O N - N I-- LO qqt O M O M qqt I-- LO N 00 - O M O O N O O O O M 00 O O O O - O N O - O - M - � N LO .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. O � O O 00 - I� L � L �f9 I� V V M � O O O O V 00 In I- V V M M 00 LO 00 O M O - LO I-- O N LO O 00 O M LO N LO [�- O N LO O 00 O L O O O O O O O O O O O O O O - - - - r - - - - - - - N N N O O - r - - - - - - - - - - - - - - - - - r - - - r O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O - - - O O O O O O O O O - - - O O O r- C) O N M O r C O O Q N CO C C O U c co c0 N Q O d M \/ M O qqt O O O O 00 O - O LO qqt M - 00 M - LO 00 I-- - M M O LO N M - I-- N N I-- N LO 1-- qqt O O M O 1-- M LO N '- O 00 O 00 O O N O O O O M 00 O O O O O N O - O - M N Lr N O 1-- O O M - I-- LO I-- LO LO I-- qqt qqt M I-- O O O O 00 LO I-- qqt qqt M M 00 N LO 00 O M O - LO [-- O N LO O 00 O M LO N L O N LO O 00 (D L t) 19 M qqt O O O O M LO I-- M O N - N I-- LO qqt O M O M qqt I-- LO N 00 - O M O O N O O O O M 00 O O O O - O N O - O - M - � N LO .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. O � O O 00 - I� L � L �f9 I� V V M � O O O O V 00 In I- V V M M 00 LO 00 O M O - LO I-- O N LO O 00 O M LO N LO [�- O N LO O 00 O L O O O O O O O O O O O O O O - - - - r - - - - - - - N N N O O - r - - - - - - - - - - - - - - - - - r - - - r O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N N N N N O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O - - - O O O O O O O O O - - - O O O r- C) O N M O r C O O Q N CO C C O U c co c0 N Q O d M \/ 0 � � N O O L T 00 O N I- '- O X Lr O N O Lr O M I-- CO CO I-- I-- T CO O O O N LO N LO r- O (N (D LO 0) t) LO LO LO O LO O co 00 N '- ^' O 00 O 00 M 00 N O N O O L T O I- I� T O N O LC) O I-- M M I-- I-- T M O O O LO N LO r- O N (O LO 0) r- LO LO LO O LO O O 00 O -_ N N a l j 5a T M O O O Q CB C N O (o U c co O O O O O O O O O 'i cu d .� N T ' O T O T O T O T O T O T O T O T O w M Q LO (D 1-- 0 CF) O N O O O O O O O O O T T T Y L x H /L d