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<br />City of San Marcos/Guadalupe-Blanco River Authority <br />Water Treatment Facilities <br /> <br />Service Contract <br />Article I - Definitions and Interpretation <br /> <br />ARTICLE I <br /> <br />DEFINITIONS AND INTERPRETATION <br /> <br />SECTION 1.1. DEFINITIONS. As used in this Service Contract, the following <br />terms shall have the meanings set forth below: <br />"Mfiliate" means any person directly or indirectly controlling or controlled by <br />another person, corporation or other entity or under direct or indirect common control with <br />such person, corporation or other entity. <br />"Appendix" means any of the Appendices attached to this Service Contract, as <br />the same may be amended or modified from time to time in accordance with the terms hereof. <br />"Applicable Law" means: (1) any federal, state or local law, code, or regulation; <br />(2) any formally adopted and generally applicable rule, requirement, determination, standard, <br />policy, implementation schedule, or other order of any Govemmental Body having appropriate <br />jurisdiction; (3) any established interpretation of law or regulation utilized by an appropriate <br />Govemmental Body if such interpretation is documented in writing by such Govemmental <br />Body and generally applicable; (4) any Govemmental Approval applicable to the Facilities or the <br />Contract Services; and (5) any consent order or decree, settlement agreement or other similar <br />agreement between the City and any Govemmental Body, in each case having the force of law <br />and applicable from time to time: (a) to the siting, permitting, design, acquisition, <br />construction, equipping, fmancing, ownership, possession, start-up, testing, operation, <br />maintenance, repair, replacement or management of water facilities or systems, including the <br />Facilities; (b) to the conveyance, delivery, treatment, storage, supply of water to and from the <br />Facilities; (c) to the air emissions from the Facilities; (d) to the transfer, handling, processing, <br />transportation or disposal of Residuals produced from the Facilities; and (e) to any other <br />transaction or matter contemplated by the Service Contract (including any of the foregoing <br />which pertain to water treatment, Residuals and waste disposal, health, safety, fire, <br />environmental protection, labor relations, building codes, the payment of prevailing or <br />minimum wages and non-discrimination). <br />"Authority" means Guadalupe-Blanco River Authority, a conservation and <br />reclamation district and political subdivision created and existing under the laws of the State <br />of Texas, and its permitted successors and assigns. <br />"Authority Breach" means any breach (including the untruth or breach of any <br />Authority representation or warranty herein set forth), failure, nonperformance or <br />non-compliance by the Authority with respect to its obligations under this Service Contract to <br />the extent not directly attributable to any Uncontrollable Circumstance or City Breach, and <br /> <br />4 <br />