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GOVERNMENTAL FUNCTION, IMMUNITY <br />The City's execution of and performance under this Agreement will not act <br />as a waiver of any immunity of the City to suit or liability under applicable <br />law. The parties acknowledge that the City, in executing and performing this <br />Agreement, is a governmental entity acting in a governmental capacity. <br />EXECUTED to be effective as of the Effective Date first stated above. <br />CITY OF SAN MARCOS, TEXAS <br />By; - V = <br />B Lumb'ras, City Manager <br />Harris Hill Residential Land Holdings, Ltd., <br />a Texas limited partnership <br />By: Harris Hill GP, LLC a Texas limited liability company <br />By: S::L�I.A — <br />R.W. McDonald IV, its Manager <br />13 <br />