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person and two million dollars ($2,000,000) per occurrence for bodily injury, and one million
<br />dollars ($1,000,000) for property damage; (3) builder's risk: full replacement value of
<br />improvements; (4) performance and payment bond: full value of contract; (5) cost overrun
<br />insurance; and (6) timely completion insurance. The Agency shall secure from the contractor or
<br />contractors a certified copy of such effective policy of insurance, and original bonds, prior to
<br />commencement of construction, and the Agency shall furnish a copy of the policy and bonds to a
<br />Sponsoring Public Entity upon request. Such insurance policies shall name the Agency and the
<br />Sponsoring Public Entities as additional insureds, and the Agency shall require the contractor to
<br />provide a certificate of insurance to the Agency showing the required coverages, and providing
<br />that the policies may not be canceled, changed, or not renewed until the Agency has been given
<br />thirty (30) days prior written notice of such event.
<br />(c) The insurance required by this section may be modified by written agreement of
<br />the Sponsoring Public Entities and the Agency, in accordance with good business practice. Any
<br />questions about the scope of coverage required hereunder shall be resolved by written agreement
<br />between the Sponsoring Public Entities and the Agency. The parties can agree to substitute an
<br />owner controlled insurance program for any of the above specified insurance requirements.
<br />Section 8,3 Force Maieure. If by reason of Force Majeure any party hereto shall
<br />be rendered unable wholly or in part to cant' out its obligations under this Contract, other than
<br />the obligation of each of the Sponsoring Public Entities to make the payments required under
<br />Sections 3.5, and 5.2 of this Contract, then if such party shall give notice and full particulars of
<br />such Force Majeure in writing to the other parties within a reasonable time after the occurrence
<br />of the event or cause relied on, the obligation of the party giving such notice, so far as it is
<br />affected by such Force Majeure, shall be suspended during the continuance of the inability then
<br />claimed, but for no longer period, and any such party shall endeavor to remove or overcome such
<br />inability with all reasonable dispatch. The term "Force Majeure" as employed herein shall mean
<br />acts of God, strikes, lockouts or other industrial disturbances, acts of public enemy, orders of any
<br />kind of the Government of the United States or the State of Texas, or any civil or military
<br />authority, insurrection, riots, epidemics, landslides, lightning, earthquake, fires, hurricanes, blue
<br />northers, storms, floods, washouts, droughts, arrests, restraint of government and people, civil
<br />disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or
<br />entire failure of water supply, inability on the part of the Agency to deliver water for any reason,
<br />or any other causes not reasonably within the control of the party claiming such inability.
<br />Smfion 8.4 Uncondi 'o, aW Oblisati m to Make Payment. Recognizing the fact
<br />that the Sponsoring Public Entities urgently require the facilities and services of the Project, and
<br />that such facilities and services are essential and necessary for actual use and for standby utility
<br />system purposes, and recognizing the fact that the payments to be received from each of the
<br />Sponsoring Public Entities will be the primary source of funds available to the Agency and the
<br />Trustee to pay the Bonds and other Project Costs, and recognizing the fact that purchasers of the
<br />Bonds will rely on the obligation of the Sponsoring Public Entities to pay the Annual Payment
<br />Amounts with respect to their series of Bonds in accordance with the provisions of this Contract,
<br />each of the Sponsoring Public Entities hereby waives all rights of set-off, recoupment,
<br />counterclaim, suspension, deferment, reduction, and amendment against the Agency, the Trustee,
<br />and any other direct or indirect recipients of payments with respect to making the Annual
<br />Payment Amounts. Each of the Sponsoring Public Entities agrees that it shall make its
<br />appropriate Annual Payment Amounts even if no Bonds are issued for its benefit by the Agency
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