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<br />I <br /> <br />IS. The Signatories agree that the terms of the Settlement Agreement are <br />interdependent and indivisible, and that if the Commission or any local regulatory <br />authority enters an order that is inconsistent with this Settlement Agreement, then any <br />Signatory may withdraw without being deemed to have waived any procedwat right or <br />taken any substantive position on any fact or issue by virtue of that Signatory's entry into <br />the Settlement Agreement or its subsequent withdrawal. <br /> <br />16. The Signatories agree that all negotiations, discussions and conferences related to <br />this settlement are privileged, inadmissible, and not relevant to prove any issues in GUD <br />No. 9630, GUD No. 9631, GUO No. 9632, GUO No. 9634, GUD No. 9640, and GUD <br />No. 9641 pursuant to Texas law. <br /> <br />17. The Signatories agree that neither this Settlement Agreement nor any oral or <br />written statements made during the course of settlement negotiations may be used for any <br />pwpose other than as necessary to support the entry by the Commission of an order <br />dismissing GUD No. 9630, GOO No. 9631, GDD No. 9632, GUD No. 9634, GUD No. <br />9640, and GUD No. 9641 and to support the administrative approval of this Settlement <br />Agreement by the local regulatory authorities in the affected ACM Cities. <br /> <br />I <br /> <br />18. The Signatories agree that this Settlement Agreement is binding on each <br />Signatory only for the purpose of settling the issues set forth herein and for no other <br />pwposes, and, except to the extent the Settlement Agreement governs a Signatory's rights <br />and, obligations for future periods, this Settlement Agreement shall not be binding or <br />precedential upon a Signatory outside this case. <br /> <br />19. The Signatories agree that this Settlement Agreement may be executed in multiple <br />counterparts and may be filed with facsimile signatures. <br /> <br />20. The Signatories agree that the terms of this Settlement Agreement are contingent <br />on approval by each ACM City. <br /> <br />Agreed to this ,~ day of ~ ' 2006. <br /> <br /> <br />::N~7Ymrr:u. - <br /> <br />~e Hepburn <br />Vice President and General Counsel <br />CenterPoint Energy Entex <br /> <br />I 4 <br />