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AGREEMENT FOR CONTRIBUTION IN AID OF <br />CONSTRUCTION OF ELECTRIC UTILITY FACILITIES <br />This Agreement for Contribution In Aid of Construction of Electric Utility Facilities (the <br />"Agreement") is entered into between the City of San Marcos, Texas (the "City"), a Texas <br />municipal corporation, Urban Mining Company, a Delaware corporation ("UMC") and Urban <br />Mining Development, LLC, a Delaware limited liability company ("UMC Development"). UMC <br />and UMC Development may also be collectively referred to as the "Developers." The City and the <br />Developers may also be referred to collectively as the "Parties" or individually as a "Party." <br />ARTICLE I <br />RECITALS <br />Section 1.01. The City and Developers previously entered into a Chapter 380 Economic <br />Development Incentive Agreement under which UMC agreed to build certain high technology <br />manufacturing facilities and to create jobs and UMC Development agreed to develop land adjacent <br />to UMC's facilities in accordance with certain conditions, all as set forth in said agreement. <br />Section 1.02. UMC's facilities are currently under construction and will require, before <br />completion, the extension of electric service by the City. Future development of UMC <br />Development's adjacent land is also dependent upon the extension of electric service to such land. <br />Section 1.03. The San Marcos Electric Utility Rules and Regulations allow the City to <br />participate in the cost of electric service extensions when it can be determined that annual revenues <br />to be paid by a large commercial or industrial electric customer (excluding pass through Fuel and <br />Power Cost Recovery) will generate margins above the cost of constructing the extensions. <br />Section 1.04. Based on projections for future electric consumption by UMC the City has <br />determined that UMC's electric consumption would generate annual revenues exceeding the cost <br />of constructing the extensions. <br />