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<br /> (as defined in Section 1.12) of CITY, attached to this Agreement <br /> as Exhibit 16. <br /> 1.09 "Parties" shall mean LCRA and CITY, their successors and <br /> assigns. <br /> 1.10 "Property" or "Properties" shall mean real or personal <br /> property of Parties subject to the terms of this Agreement. <br /> 1.11 "San Marcos District Electric Distribution System" shall <br /> mean the Property of LCRA to be granted, conveyed, sold, assigned <br /> or transferred to CITY as more fully described in this Agreement. <br /> 1.12 "System" as defined in the Operating Agreement shall <br /> mean all of the distribution and transmission facilities being <br /> purchased from LCRA by CITY or which may subsequently be <br /> constructed or acquired by or on behalf of CITY and operated, <br /> maintained, replaced and extended by LCRA as Operating Agent for <br /> CITY in accordance with the terms of the Operating Agreement. <br /> 1.13 "Wholesale Power Agreement" shall mean the agreement <br /> providing the terms under which LCRA shall sell electric power and <br /> energy to CITY, attached to this Agreement as Exhibit 15. <br /> ARTICLE II <br /> PROPERTY TO BE PURCHASED <br /> 2.01 LCRA is the owner of the San Marcos District Electric <br /> Distribution System situated within the corporate boundaries of <br /> CITY and immediately adjacent thereto, which is located within the <br /> area set forth on a plat marked as Exhibit 1 attached to this <br /> Agreement and incorporated at this point by reference. <br /> 3. <br />