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regarding the possible future supply of electric service to customers in the County or the Town. Background As the City and the recipients of this letter know, the City is a party to certain agreements between the City and FPL, including the Asset Purchase and Sale Agreement by which the City has contracted to sell its electric utility system to FPL and a number of other agreements related to the proposed City -FPL utility system sale transactions. On July 18, 2014, the Town filed its Complaint against the City, initiating Case No. 312014 CA 000748. Because the complaint is by one Florida governmental entity against another, the mandatory processes of the Florida Governmental Conflict Resolution Act, Chapter 164, Florida Statutes, were invoked, and the parties have accordingly been engaged in those processes since then. On July 21, 2014, Indian River County filed a petition for declaratory statement with the Florida Public Service Commission ("PSC"), in which the County raised several issues similar to those raised by the Town in its suit. The County's petition was assigned Docket No. 140142 -EM by the PSC; action on the County's petition is pending. Most recently, the parties, including the County pursuant to its notice of participation in the Chapter 164 dispute resolution processes, participated in a mediation session on December 17, 2014, facilitated by mediator Carlos Alvarez, Esquire. Among other things, at that mediation session, the parties agreed that the Town would continue its lawsuit in abeyance until March 2, 2015, and the City agreed (without waiving any of its positions in the litigation) that it would waive any claims of tortious interference, breach of contract, or similar claims that might arise from either the Town or the County (a) conducting evaluations of future electric power supply alternatives or (b) engaging in discussions with FPL or other potential electricity suppliers regarding the possible future supply of electricity to customers located in unincorporated Indian River County or in the Town but who are currently provided retail electric service by the City. Consent and Waiver Without waiving its position that neither the Town nor the County may take any action, either before or after the expiration of their respective franchise agreements with the City, that would terminate or in any way impair the City's right, obligation, or ability to operate its electric utility system and/or provide retail electric service within its service territory approved by orders of the Florida Public Service Commission, the City agrees that it will not object to either the Town or the County conducting, as contingency planning by the Town and County for the possibility that they might prevail in the litigation, evaluations of alternatives for the Town or the County to provide for, or to arrange for the provision of, electric service to their respective citizens upon expiration of 2 150