AQUILA  INC
EXHIBIT 10.1
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<FILENAME>aexhibit101_122004.htm
<DESCRIPTION>EXHIBIT 10.1
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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>POWER PURCHASE AND
SALES CONTRACT </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ASSIGNMENT AND
TERMINATION AGREEMENT </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
POWER PURCHASE AND SALES CONTRACT ASSIGNMENT AND TERMINATION AGREEMENT<b> </b>is dated as
of December 20, 2004 by and among Aquila, Inc., a Delaware corporation formerly known as
UtiliCorp United Inc. (&#147;<u>AI</u>&#148;), Aquila Merchant Services, Inc., a Delaware
corporation which is the successor by merger to Aquila Energy Marketing Corporation, which
in turn was formerly known as Aquila Power Corporation (&#147;<u>AMS</u>&#148;), Aquila
Long Term, Inc., a Delaware corporation (&#147;<u>ALT</u>&#148; and, together with AI and
AMS, &#147;Aquila&#148;), and South Mississippi Electric Power Association, a Mississippi
corporation (&#147;<u>SMEPA</u>&#148;). Each of AI, AMS, ALT and SMEPA is individually
referred to herein as a &#147;<u>Party</u>&#148;, and collectively AI, AMS, ALT and SMEPA
are referred to herein as the &#147;<u>Parties</u>&#148;. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>RECITALS </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          AI,
ALT (as successor to AMS) and SMEPA are parties to the SMEPA Power Sales
          Agreement (as defined below).  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          AI,
ALT (as successor to AMS) and LSP Energy Limited Partnership, a Delaware
          limited partnership (&#147;<u>LSP</u>&#148;), are parties to the LSP Agreements
          (as defined below).  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;          The
Parties desire (a) to terminate the SMEPA Power Sales Agreement, and (b)           that
Aquila assign to SMEPA and that SMEPA assume all of Aquila&#146;s rights           and
obligations under the LSP Agreements, in each case in accordance with the           terms
and conditions set forth herein.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accordingly, &nbsp;the
Parties agree as follows:  </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE I </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>DEFINITIONS </font></h1>

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<p><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U>.
In addition to the terms defined elsewhere herein, the terms below are defined as
follows: </FONT> </p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Agreement</u>&#148;means
this Power Purchase and Sales Contract Assignment and Termination Agreement, as the same
may be amended from time to time in accordance with the terms hereof.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Assignment
and Termination Price</u>&#148; has the meaning set forth in Section 2.3.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Assumed
Liabilities</u>&#148; means all liabilities and obligations of Aquila under the LSP
Agreements arising after the Closing Date.  </font></p>


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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Baseline
Date</u>&#148; means February 28, 2005.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Closing</u>&#148;has
the meaning set forth in Section 2.4.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Closing
Date</u>&#148; has the meaning set forth in Section 2.4.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Credit
Support</u>&#148; means the Credit Support (as defined in the LSP PPA) provided by LSP
and held by Aquila pursuant to Section 13.6 of the LSP PPA.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>FERC</u>&#148;means
the Federal Energy Regulatory Commission.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Gas
Transportation and Fuel Management Agreement</u>&#148; has the meaning ascribed thereto
in Section 6.1(h).  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Governmental
Authority</u>&#148; means any domestic or foreign governmental or regulatory agency,
authority, bureau, commission, department, official or similar body or instrumentality
thereof, or any governmental court, arbitral tribunal or other body administering
alternative dispute resolution.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>KCC</u>&#148;means
the Kansas Corporation Commission.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Lender
Consent Agreement</u>&#148; means the Consent and Agreement dated as of August 28, 1998
by ALT (as successor to AMS) and Aquila, as accepted and agreed to by IBJ Schroder Bank
and Trust Company and LSP.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>LSP</u>&#148;means
LSP Energy Limited Partnership, a Delaware limited partnership.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>LSP
Agreements</u>&#148; means (a) the Power Purchase Agreement dated May 21, 1998 (as
amended, the &#147;<u>LSP PPA</u>&#148;) by and between LSP, as seller, and ALT (as
successor to AMS) and AI, as purchaser, as amended by (i) the Letter Agreement dated July
14, 1998, (ii) the Letter Agreement dated July 16, 1998, (iii) the First Amendment to
Power Purchase Agreement dated as of August 4, 2000 by and between LSP, ALT (as successor
to AMS) and AI, (iv) the agency letter agreements for notices dated April 20, 2001 and
May 30, 2001, (v) the letter from LSP to Jeremy Morgan dated July 31, 2003 re: derate on
Batesville unit, and (vi) the letter from Jeremy Morgan to LSP dated September 21, 2001
relating to generator imbalance service, (b) the Lender Consent Agreement, and (c) the
TGC Connection Consent and Agreement.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>LSP
PPA</u>&#148; has the meaning ascribed thereto in the definition of &#147;LSP Agreements&#148;.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Margin
Amount</u>&#148; means the amount of margin between the LSP PPA and the SMEPA Power Sales
Agreement calculated on a daily basis, which amount the Parties have agreed is Four
Thousand One Hundred Dollars ($4,100.00).  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Non-Surviving
Representations and Warranties</u>&#148; has the meaning set forth in Section 8.1.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Outside
Date</u>&#148; means May 1, 2005 (or any other date to which the Parties subsequently
agree in writing).  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Party</u>&#148;has
the meaning set forth in the preface of this Agreement.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>Person</u>&#148;means
an individual, corporation, partnership, limited liability company, joint venture,
association, trust or other entity or organization or Governmental Authority.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>SMEPA
Power Sales Agreement</u>&#148; means the Power Sales Agreement dated August 18, 1999
among ALT (as successor to AMS), AI and SMEPA.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&#147;<u>TGC
Connection Consent and Agreement</u>&#148; means the Consent and Agreement dated as of
January 28, 2000 by and among AMS, AI and LSP.  </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certain
Interpretive Matters.  </font></p>

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     <p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          When a reference is made in this Agreement to an Article or Section, such
          reference will be to an Article or Section of this Agreement unless otherwise
          indicated. Whenever the words &#147;<u>include</u>&#148;,
          &#147;<u>includes</u>&#148; or &#147;<u>including</u>&#148; are used in this
          Agreement, they will be deemed to be followed by the words &#147;<u>without
          limitation</u>&#148;. The words &#147;<u>hereof</u>&#148;,
          &#147;<u>herein</u>&#148; and &#147;<u>hereunder</u>&#148; and words of similar
          import when used in this Agreement refer to this Agreement as a whole and not to
          any particular provision of this Agreement. All terms defined in this Agreement
          have the defined meanings when used in any certificate or other document made or
          delivered pursuant hereto unless otherwise defined therein. The definitions
          contained in this Agreement are applicable to the singular as well as the plural
          forms of such terms and to the masculine as well as to the feminine and neuter
          genders of such term. All references to $ or dollar amounts are to the lawful
          currency of the United States of America. Any agreement, instrument or statute
          defined or referred to herein or in any agreement or instrument that is referred
          to herein means such agreement, instrument or statute as from time to time
          amended, modified or supplemented, including (in the case of agreements or
          instruments) by waiver or consent and (in the case of statutes) by succession of
          comparable successor statutes. References to a Person are also to its successors
          and permitted assigns. </font></p>

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     <p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No provision of this Agreement will be interpreted in favor of, or against, any
          of the Parties by reason of the extent to which any such Party or its counsel
          participated in the drafting thereof or by reason of the extent to which any
          such provision is inconsistent with any prior draft hereof or thereof. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE II </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>BASIC TRANSACTION </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Termination of the SMEPA Power Sales Agreement; Assignment of the LSP Agreements</u>.
On and subject to the terms and conditions of this Agreement, (a) the Parties agree to
terminate the SMEPA Power Sales Agreement, and (b) Aquila agrees to assign, and SMEPA
agrees to accept the assignment of, the LSP Agreements, in each case at the Closing (and
effective at 11:59 p.m. on the Closing Date) for the consideration specified in Section
2.3. The Parties agree that all payments to be paid or received by Aquila (or, after the
Closing Date, by SMEPA) under the LSP Agreements shall be prorated as of the Closing Date,
with Aquila being responsible for and entitled to the benefit of payments attributable to
the period up to and through the Closing Date, and SMEPA being responsible for and
entitled to the benefit of payments attributable to the period commencing on the day after
the Closing Date. After Closing, Aquila will promptly remit and send to SMEPA any and all
payments, funds, assets, notices, reports and other documents and information received by
Aquila or its agents or representatives that relate to periods after the Closing Date.
After Closing, SMEPA will promptly remit and send to Aquila any and all payments, funds,
assets, notices, reports and other documents and information received by SMEPA or its
agents or representatives that relate to periods on or prior to the Closing Date. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Assumption of Liabilities</u>. On and subject to the terms and conditions of this
Agreement, SMEPA agrees to assume and become responsible for the Assumed Liabilities at
the Closing. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Assignment and Termination
Price</u>. SMEPA agrees to pay Aquila (by payment to AI) Sixteen Million Two Hundred Fifty
Thousand Dollars ($16,250,000.00) subject to adjustment in the event that the Closing Date
is not the Baseline Date as provided in this Section 2.3 (as so adjusted, the
&#147;<u>Assignment and Termination Price</u>&#148;). In the event that the Closing Date
occurs after the Baseline Date, the Parties agree that the Assignment and Termination
Price shall be reduced by the product of (i) the Margin Amount, and (ii) the number of
days between the Baseline Date and the Closing Date (including the Closing Date). In the
event that the Closing Date occurs prior to the Baseline Date, the Parties agree that the
Assignment and Termination Price shall be increased by the product of (i) the Margin
Amount, and (ii) the number of days between and including the Closing Date and the
Baseline Date (including the Baseline Date). </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>The Closing</u>. The closing of the transactions contemplated by this Agreement (the
&#147;<u>Closing</u>&#148;) shall take place at the Kansas City office of Blackwell
Sanders Peper Martin LLP commencing at 9:00 a.m. local time on the first business day
following the satisfaction or waiver of all conditions to the obligations of the Parties
to consummate the transactions contemplated hereby (other than conditions with respect to
actions the respective Parties will take at the Closing itself) or such other date as the
Parties may mutually determine (the &#147;<u>Closing Date</u>&#148;). </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Deliveries at the Closing</u>. At the Closing, (a) Aquila will deliver to SMEPA the
various certificates, instruments and documents referred to in Section 6.1 below executed
by the appropriate parties, (b) SMEPA will deliver to Aquila the various certificates,
instruments and documents referred to in Section 6.2 below executed by the appropriate
parties, (c) SMEPA will deliver to Aquila the consideration specified in Section 2.3
above, and (d) Aquila will deliver to SMEPA the Credit Support. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Ongoing AMS Services</u>. Following the Closing, AMS shall continue to provide gas
transportation services and fuel procurement and scheduling services in accordance with
the letter agreement regarding transportation capacity dated July 15, 2002 between AMS and
SMEPA and the Gas Transportation and Fuel Management Agreement until December 31, 2005. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE III </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>REPRESENTATIONS AND
WARRANTIES OF AQUILA </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aquila
represents and warrants to SMEPA that the statements contained in this Article III are
correct as of the date of this Agreement and will be correct as of the Closing Date. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Organization</u>. Each of AI, AMS and ALT is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Authorization of Transaction; Enforceability</u>. AI, AMS and ALT have full power and
authority to execute and deliver this Agreement and to perform their obligations
hereunder. This Agreement has been duly authorized by each of AI, AMS and ALT and
constitutes the valid and legally binding obligation of AI, AMS and ALT, enforceable in
accordance with its terms and conditions. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Non-Contravention</u>. Except as set forth in <u>Schedule 3.3</u>, neither the
execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will (a) violate any constitution, statute, regulation, rule,
injunction, judgment, order, decree, ruling, charge or other restriction of any
Governmental Authority to which AI, AMS or ALT is subject or any provision of the charter
or bylaws of AI, AMS or ALT, or (b) conflict with, result in the breach of, constitute a
default under, result in the acceleration or termination of, create in any party the right
to accelerate, terminate, modify or cancel, or require any notice under the LSP Agreements
or any other agreement, contract, lease, license, instrument or other arrangement to which
AI, AMS or ALT is a party or by which it is bound, except where the violation, conflict,
breach, default, acceleration, termination, modification, cancellation or failure to give
notice would not have a material adverse effect on the ability of AI, AMS and ALT to
consummate the transactions contemplated by this Agreement. Except as set forth in
<u>Schedule 3.3</u>, none of AI, AMS or ALT needs to give any notice to, make any filing
with, or obtain any authorization, consent or approval of any Governmental Authority in
order for the Parties to consummate the transactions contemplated by this Agreement. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Broker&#146;s Fees</u>. AI, AMS and ALT have no liability or obligation to pay any fees
or commissions to any broker, finder or agent with respect to the transactions
contemplated by this Agreement for which SMEPA could become liable or obligated. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>LSP Agreements</u>. The LSP Agreements are valid and binding obligations of AI, AMS
and/or ALT, as applicable, and are in full force and effect. None of AI, AMS or ALT (a) is
in default (with or without notice or lapse of time) or breach in any material respect
under the terms of the LSP Agreements, or (b) other than pursuant to this Agreement, has
transferred any interest in the LSP Agreements to a Person not included in the definition
of &#147;Aquila&#148;. LSP has provided Credit Support under Section 13.6 of the LSP PPA
due to LSP&#146;s failure to maintain a Debt Service Coverage Ratio (as defined in the LSP
PPA) of at least 1.25 to 1.00 for four (4) consecutive quarters. Otherwise, to the
knowledge of Aquila, no counterparty to an LSP Agreement is in default (with or without
notice or lapse of time) or breach in any material respect under the terms thereof. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>No Other Arrangements</u>. Aquila is not a party to any contract or agreement relating
to the Facility (as defined in the LSP PPA) other than: (a) the agreements referenced in
Section 2.6; and (b) prior to consummation of the transactions contemplated by this
Agreement, the LSP Agreements and the SMEPA Power Sales Agreement. Additionally, SMEPA and
LSP have agreed to an interpretation of the definition of &#147;EUDH&#148; as set forth in
Section 10.3 of the LSP PPA, which will be memorialized by LSP and SMEPA in the Assignment
and Assumption Agreement attached hereto as <u>Exhibit 6.1(f)</u>. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Disclaimer of Other Representations and Warranties</u>. EXCEPT AS EXPRESSLY SET FORTH
IN THIS ARTICLE III, AQUILA MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT
LAW OR IN EQUITY, IN RESPECT OF ANY OF ITS ASSETS AND LIABILITIES (INCLUDING, WITHOUT
LIMITATION, THE LSP AGREEMENTS) OR OPERATIONS, AND ANY SUCH OTHER REPRESENTATIONS AND
WARRANTIES INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE ARE HEREBY EXPRESSLY DISCLAIMED. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE IV </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>REPRESENTATIONS AND
WARRANTIES OF SMEPA </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SMEPA
represents and warrants to Aquila that the statements contained in this Article IV are
correct as of the date of this Agreement and will be correct as of the Closing Date. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Organization of SMEPA</u>. SMEPA is a corporation duly organized, validly existing and
in good standing under the laws of the State of Mississippi. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Authorization of Transaction; Enforceability</u>. SMEPA has full power and authority to
execute and deliver this Agreement and to perform its obligations hereunder. This
Agreement has been duly authorized by SMEPA and constitutes the valid and legally binding
obligation of SMEPA, enforceable in accordance with its terms and conditions. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Non-Contravention</u>. Except as set forth in <u>Schedule 4.3</u>, neither the
execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby and thereby by SMEPA, will (a) violate any constitution, statute,
regulation, rule, injunction, judgment, order, decree, ruling, charge or other restriction
of any Governmental Authority to which SMEPA is subject or any provision of the charter or
bylaws of SMEPA, or (b) conflict with, result in the breach of, constitute a default
under, result in the acceleration of, create in any party the right to accelerate,
terminate, modify or cancel, or require any notice under any agreement, contract, lease,
license, instrument or other arrangement to which SMEPA is a party or by which it is
bound, except where the violation, conflict, breach, default, acceleration, termination,
modification, cancellation or failure to give notice would not have a material adverse
effect on the ability of SMEPA to consummate the transactions contemplated by this
Agreement. Except as set forth in <u>Schedule 4.3</u>, SMEPA does not need to give any
notice to, make any filing with, or obtain any authorization, consent or approval of any
Governmental Authority in order for the Parties to consummate the transactions
contemplated by this Agreement. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Broker&#146;s Fees</u>. SMEPA has no liability or obligation to pay any fees or
commissions to which any broker, finder or agent with respect to the transactions
contemplated by this Agreement for which Aquila could become liable or obligated. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Source of Assignment and Termination Price</u>. The payment of the Assignment and
Termination Price by SMEPA shall be initially funded through normal credit lines. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE V </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>PRE-CLOSING COVENANTS </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Parties agree as follows with respect to the period between execution of this Agreement
and the Closing. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>General</u>. Each of the Parties will use commercially reasonable efforts to take all
action and to do all things necessary, proper and advisable in order to consummate and
make effective the transactions contemplated by this Agreement (including satisfaction,
but not waiver, of the closing conditions set forth in Article VI below). </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Notices and Consents</u>. Each of the Parties will give any notices to, make any
filings with, and use its commercially reasonable efforts to obtain any authorizations,
consents and approvals of Governmental Authorities in connection with the matters referred
to in Sections 3.3 and 4.3 above. Without limiting the generality of the foregoing, within
ten (10) days following the date of this Agreement, Aquila shall request orders (a) under
Section 203 of the Federal Power Act from FERC, and (b) from the KCC, in each case
approving the transactions contemplated by this Agreement. SMEPA will provide all
assistance reasonably requested by Aquila in order to obtain and expedite FERC and KCC
approval. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE VI </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>CONDITIONS TO
OBLIGATION TO CLOSE </font></h1>

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<p><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; 6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
to Obligations of SMEPA</U>. The obligation of SMEPA to consummate the transactions to be
performed by it in connection with the Closing is subject to the following conditions: </FONT> </p>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               the representations and warranties set forth in Article III above shall be true
               and correct in all material respects at and as of the Closing Date (except for
               representations and warranties which are qualified by &#147;materiality&#148; or
               &#147;material&#148;, which representations and warranties shall be true and
               correct in all respects at and as of the Closing Date); </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila shall have performed and complied with all of its covenants hereunder in
               all material respects through the Closing; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               there shall not be any injunction, judgment, order, decree, ruling or charge
               pending, threatened or in effect preventing consummation of any of the
               transactions contemplated by this Agreement; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila shall have delivered to SMEPA a certificate to the effect that each of
               the conditions specified above in Section 6.1(a)-(c) is satisfied in all
               respects; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               the Parties shall have received all authorizations, consents and approvals of
               Governmental Authorities (which shall be final and non-appealable) and other
               third parties referred to in Sections 3.3, 4.3 and 5.2 above; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila and LSP shall have entered into an Assignment and Assumption Agreement in
               substance substantially similar to that set forth in <u>Exhibit 6.1(f)</u>
               hereto (subject to any reasonable changes requested by LSP that do not adversely
               affect SMEPA); </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila shall have entered into and delivered to SMEPA a Termination Agreement in
               form and substance substantially similar to that set forth in <u>Exhibit
               6.1(g)</u> hereto; and </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               AMS shall have entered into and delivered to SMEPA a Gas Transportation and Fuel
               Management Agreement (the &#147;<u>Gas Transportation and Fuel Management
               Agreement</u>&#148;) between SMEPA and AMS in form and substance substantially
               similar to that set forth in <u>Exhibit 6.1(h)</u> hereto. </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               AMS shall have delivered to SMEPA an irrevocable standby letter of credit
               written with SMEPA as the beneficiary, in form and substance substantially
               similar to that set forth in <u>Exhibit 6.1(i)</u> hereto (subject to any
               reasonable changes requested by Bank One, N.A.) (the &#147;<b>Letter of
               Credit</b>&#148;), for an amount totaling the product of Fifty Thousand Dollars
               ($50,000.00) times the number of partial and full calendar months between the
               Closing Date and December 31, 2005, which total amount will be decreased by
               Fifty Thousand Dollars ($50,000.00) on the last day of each calendar month
               during the term of the Letter of Credit. </font></p></td>
               </tr>
               </table>
               <br>

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<table width=600 cellpadding=0 cellspacing=0 border=0>
<tr valign=TOP>
<td width=5%>&nbsp;</td>
<td width=95%><font face="Times New Roman, Times, Serif" size=2>
A
waiver of a condition specified in Section 6.1 shall be evidenced either by (i) a writing
expressly waiving the condition executed by SMEPA, or (ii) SMEPA&#146;s consummation of
the transactions to be performed by it in connection with the Closing notwithstanding the
failure of the condition to be met. </font></td>
</tr>
</table>
<br>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Conditions to Obligations of Aquila</u>. The obligation of Aquila to consummate the
transactions to be performed by it in connection with the Closing is subject to the
following conditions: </font></p>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               the representations and warranties set forth in Article IV above shall be true
               and correct in all material respects at and as of the Closing Date (except for
               representations and warranties which are qualified by &#147;materiality&#148; or
               &#147;material&#148;, which representations and warranties shall be true and
               correct in all respects at and as of the Closing Date); </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA shall have performed and complied with all of its covenants hereunder
               (including, without limitation, the payment of the Assignment and Termination
               Price pursuant to Section 2.3 hereof) in all respects through the Closing; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               there shall not be any injunction, judgment, order, decree, ruling or charge
               pending, threatened or in effect preventing consummation of any of the
               transactions contemplated by this Agreement; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA shall have delivered to Aquila a certificate to the effect that each of
               the conditions specified in Section 6.2(a)-(c) is satisfied in all respects; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               the Parties shall have received all authorizations, consents and approvals of
               Governmental Authorities (which shall be final and non-appealable) and other
               third parties referred to in Sections 3.3, 4.3 and 5.2 above; </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA and LSP shall have entered into an Assignment and Assumption Agreement in
               substance substantially similar to that set forth in <u>Exhibit 6.1(f)</u>
               hereto (subject to any reasonable changes requested by LSP that do not adversely
               affect Aquila); </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA shall have entered into and delivered to Aquila a Termination Agreement in
               form and substance substantially similar to that set forth in <u>Exhibit
               6.1(g)</u> hereto; </font></p></td>
               </tr>
               </table>
               <br>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA shall have entered into and delivered to AMS the Gas Transportation and
               Fuel Management Agreement between SMEPA and AMS in form and substance
               substantially similar to that set forth in <u>Exhibit 6.1(h)</u> hereto; and </font></p></td>
               </tr>
               </table>
               <br>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila shall have been released from all liability under the LSP Agreements and
               all other contractual obligations relating in any way to the Facility (as
               defined in the LSP PPA) or to LSP or SMEPA with respect to the Facility (except
               under the agreements referenced in Section 2.6). </font></p></td>
               </tr>
               </table>
               <br>

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<p><font face="Times New Roman, Times, Serif" size=2>A waiver of a condition specified in
Section 6.2 shall be evidenced either by (i) a writing expressly waiving the condition
executed by AI, AMS and ALT, or (ii) with the exception of the Section 6.2(b) condition
that SMEPA pay the Assignment and Termination Price, Aquila&#146;s consummation of the
transactions to be performed by it in connection with the Closing notwithstanding the
failure of the condition to be met. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE VII </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>TERMINATION </font></h1>

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<p><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp; 7.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of this Agreement</U>. The Parties may terminate this Agreement prior to the Closing as
follows: </FONT> </p>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila and SMEPA may terminate this Agreement by mutual written consent. </font></p></td>
               </tr>
               </table>
               <br>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 1- TNR" FSL="Project" -->
          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               SMEPA may terminate this Agreement by giving written notice to Aquila in the
               event: (i) Aquila has breached any representation, warranty or covenant
               contained in this Agreement in any material respect, SMEPA has notified Aquila
               of the breach, and the breach has continued without cure for a period of thirty
               (30) days after the notice of the breach; or (ii) the Closing shall not have
               occurred on or before the Outside Date by reason of the failure of any condition
               precedent under Section 6.1 hereof (unless the failure results primarily from
               SMEPA itself breaching any representation, warranty or covenant contained in
               this Agreement). </font></p></td>
               </tr>
               </table>
               <br>

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          <table width=600 cellpadding=0 cellspacing=0>
               <tr valign=TOP>
               <td align=RIGHT width=5%></td>
               <td width=95%><p align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               Aquila may terminate this Agreement by giving written notice to SMEPA in the
               event: (i) SMEPA has breached any representation, warranty or covenant contained
               in this Agreement in any material respect, Aquila has notified SMEPA of the
               breach, and the breach has continued without cure for a period of thirty (30)
               days after the notice of the breach; or (ii) the Closing shall not have occurred
               on or before the Outside Date by reason of the failure of any condition
               precedent under Section 6.2 hereof (unless the failure results primarily from
               Aquila itself breaching any representation, warranty or covenant contained in
               this Agreement). </font></p></td>
               </tr>
               </table>
               <br>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Effect of Termination</u>. If any Party terminates this Agreement pursuant to Section
7.1 above, all rights and obligations of the Parties hereunder shall terminate without any
liability of any Party to any other Party (except for any liability of any Party then in
breach). </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE VIII </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>NO SURVIVAL OF
REPRESENTATIONS AND WARRANTIES </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Representations and Warranties</u>. The representations and warranties of the Parties
in Sections 3.3, 3.5, 3.6, 4.3 and 4.5 of this Agreement (such non-surviving
representations and warranties referred to herein as the &#147;<u>Non-Surviving
Representations and Warranties</u>&#148;) shall not survive the Closing, and any and all
breaches of such representations and warranties shall be deemed waived at Closing. The
remaining representations and warranties of the Parties in this Agreement shall survive
the Closing indefinitely. In no event shall Aquila&#146;s aggregate liability to SMEPA
under this Agreement exceed the Assignment and Termination Price. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Covenants</u>. The covenants contained in this Agreement shall survive for the period
stated herein or, if no time is specified, indefinitely. </font></p>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>ARTICLE IX </font></h1>

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<h1 align=CENTER><font face="Times New Roman, Times, Serif" size=2>MISCELLANEOUS </font></h1>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Press Releases and Public Announcements</u>. No Party shall issue any press release or
make any public announcement relating to the subject matter of this Agreement without
prior consultation with the other Parties; <i>provided, however</i>, that any Party may
make any public disclosure it believes in good faith is required by applicable law or any
listing or trading agreement concerning its publicly traded securities. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>No Third-Party Beneficiaries</u>. This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors and
permitted assigns. </font></p>

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     <p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <u>Entire Agreement</u>. This Agreement (including the documents referred to
          herein), together with (a) the Confidentiality Agreement dated August 19, 2004
          among AI, AMS and SMEPA, and (b) the Confidentiality Agreement dated November 1,
          2004 among AI, AMS and SMEPA, in each case as amended, modified and extended,
          constitute the entire agreement among the Parties and supersede any prior
          understandings, agreements or representations by or among the Parties, written
          or oral, to the extent that they relate to the subject matter hereof. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Succession and Assignment</u>. This Agreement shall be binding upon and inure to the
benefit of the Parties named herein and their respective successors and permitted assigns.
No Party may assign either this Agreement or any of its rights, interests or obligations
hereunder without the prior written approval of the other Parties, except that SMEPA after
the Closing may assign its rights in (but not its obligations under) this Agreement to its
lenders. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Counterparts; Facsimile Signatures</u>. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which together will
constitute one and the same instrument. This Agreement may be executed by facsimile
signatures. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Headings</u>. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this
Agreement. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Notices</u>. All notices, requests, demands, claims and other communications hereunder
will be in writing. Any notice, request, demand, claim or other communication hereunder
shall be deemed duly given if (and then two business days after) it is sent by registered
or certified mail, return receipt requested, postage prepaid, and addressed to the
intended recipient as set forth below: </font></p>



<table width="100%" border="0" cellpadding="0" cellspacing="0">
<tr valign="bottom">
     <th></th>
     <th></th>
     <th></th>
     <th></th></tr>
<tr valign="top">
     <td width="25%"><font face="Times New Roman, Times, Serif" size="2"></font></td>
     <td width="25%"><font face="Times New Roman, Times, Serif" size="2">If to AI, AMS or ALT:  <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
<br>
If to SMEPA:           <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
<br>
SMEPA Delivery Address:
</font></td>
     <td width="25%"><font face="Times New Roman, Times, Serif" size="2">Aquila, Inc.<br>
20 West Ninth Street<br>
Kansas City, Missouri 64105<br>
Facsimile No.: 816-783-5175<br>
Attention: General Counsel<br>
<br>
South Mississippi Electric Power Association<br>
P.O. Box 15849<br>
Hattiesburg, Mississippi 39404-5489<br>
Facsimile No.: 601-261-2351<br>
Attention: James Compton<br>
<br>
South Mississippi Electric Power Association<br>
7037 U.S. Highway 49<br>
Hattiesburg, Mississippi  39402
</font></td>
     <td width="25%"><font face="Times New Roman, Times, Serif" size="2"></font></td></tr>
</table>


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<p><font face="Times New Roman, Times, Serif" size=2>Any Party may send any notice,
request, demand, claim or other communication hereunder to the intended recipient at the
address set forth above using any other means (including personal delivery, expedited
courier, messenger service, facsimile transmission, ordinary mail or electronic mail), but
no such notice, request, demand, claim or other communication shall be deemed to have been
duly given unless and until it is actually received by the intended recipient. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with
the laws of the State of Mississippi without giving effect to any choice or conflict of
law provision or rule (whether of the State of Mississippi or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of
Mississippi. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Severability</u>. Any term or provision of this Agreement that is invalid or
unenforceable in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or
enforceability of the offending term or provision in any other situation or in any other
jurisdiction. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Expenses</u>. Each Party will bear its own costs and expenses (including legal fees and
expenses) incurred in connection with this Agreement and the transactions contemplated
hereby. If any legal action or other proceeding is brought for the enforcement of any of
the rights or provisions of this Agreement, or because of a dispute or alleged breach,
default or misrepresentation arising under, out of, or in connection with this Agreement
or the other documents contemplated hereby, the successful or prevailing Party shall be
entitled to recover reasonable attorneys fees and all other reasonable costs and expenses
in connection therewith, in addition to any other relief to which it may be entitled. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Incorporation of Exhibits and Schedules</u>. The Exhibits and Schedules identified in
this Agreement are incorporated herein by reference and made a part hereof. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Further Assurances</u>. At SMEPA&#146;s expense and without cost or expense to Aquila,
Aquila agrees that it shall execute and deliver or cause to be executed and delivered from
time to time such documents and take such other action as SMEPA reasonably may request to
transfer to and vest in SMEPA the assets assigned hereunder. </font></p>

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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Remainder
of page intentionally left blank; </font></p>

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<p align=CENTER><font face="Times New Roman, Times, Serif" size=2>signature page follows] </font></p>


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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<p><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this Agreement has been duly executed by the Parties as of the date first
written above. </font></p>

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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2>AQUILA, INC. </font></p>


<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="80%"><FONT face="Times New Roman, Times, Serif" size=2><U>/s/ Leslie J. Parrette</U> </FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Name:   Leslie J. Parrette</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Title:  Senior Vice President</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>

<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><BR></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>

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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2>AQUILA MERCHANT SERVICES,
INC. </font></p>


<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="80%"><FONT face="Times New Roman, Times, Serif" size=2><U>/s/ Brogan Sullivan</U> </FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Name:   Brogan Sullivan</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Title:  Vice President</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>

<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><BR></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2>AQUILA LONG TERM, INC.  </font></p>


<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="80%"><FONT face="Times New Roman, Times, Serif" size=2><U>/s/ Brogan Sullivan</U> </FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Name:   Brogan Sullivan</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Title:  Vice President</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>

<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><BR></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2>SOUTH MISSISSIPPI
ELECTRIC<br>POWER ASSOCIATION </font></p>

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<p align=LEFT><font face="Times New Roman, Times, Serif" size=2><i></i> </font></p>


<TABLE cellSpacing=0 cellPadding=0 width=600 border=0>
<TR vAlign=bottom>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH>
<TH colSpan=2><FONT face="Times New Roman, Times, Serif" size=2></FONT></TH></TR>
<TR vAlign=bottom>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>By:</FONT></TD>
<TD align=left width="9%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left width="80%"><FONT face="Times New Roman, Times, Serif" size=2><U>/s/ James Compton</U> </FONT></TD>
<TD align=left width="2%"><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Name:   James Compton</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>Title:  General Manager</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>

<TD align=left><FONT face="Times New Roman, Times, Serif" size=2></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2><BR></FONT></TD>
<TD align=left><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
</TABLE>


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