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<br />B. Kyle will pay to San Marcos a water system impact fee of $ 9000 for the connection at the <br />initial Point of Delivery. Kyle will pay an impact fee in an amount mutually agreed upon by the <br />parties for the connection at each subsequent Point of Delivery. <br /> <br />Section 5. Billin2. <br /> <br />A. At the end of each calendar month, San Marcos shall read the meter at each of the Points of <br />Delivery, and immediately provide the results of the readings to San Marcos and to GBRA. On <br />or before the 15th day of the following month, Kyle shall pay to San Marcos the amount due <br />based on the reading for the previous month. After that due date, interest shall accrue on all bills <br />at the maximum rate allowed by law. San Marcos shall have the right to verify any monthly bill. <br /> <br />B. In the event Kyle fails to pay any charges when due and payable, San Marcos may give <br />written notice of such delinquency to Kyle. If all bills due and unpaid, including interest <br />thereon, are not paid within forty-five (45) days after delivery of such notice, then Kyle agrees <br />that San Marcos shall be authorized at its option to institute suit to collect any amount due and <br />unpaid, together with interest thereon and reasonable attorneys' fees; and Kyle further agrees that <br />San Marcos may, at its option, discontinue delivering water to Kyle until all amounts due and <br />unpaid are paid in full with interest thereon as herein specified. <br /> <br />Section 6. Term of A2reement; Termination by San Marcos. <br /> <br />This Agreement shall be and remain in effect for a period of not less than fourteen (14) years <br />from the date construction of the WTL is complete and accepted by Kyle. San Marcos may <br />terminate this Agreement, such termination to take effect at any time after such fourteen (14) <br />year period, by giving Kyle written notice at least 48 full calendar months prior to the effective <br />date of the termination. Such written notice having been given to Kyle, San Marcos may <br />discontinue transporting water through its water distribution system to Kyle forty-eight (48) full <br />calendar months' after the date of the written notice to Kyle. Upon receipt of such notice, Kyle <br />shall make such arrangements as it deems necessary to continue to obtain delivery of its treated <br />water from the San Marcos Water Treatment Plant. San Marcos hereby grants Kyle permission <br />and a license, in such event, to construct, own and operate a water transmission line from the <br />point of connection in Section 1 to the San Marcos Water Treatment Plant. <br /> <br />Section 7. Force Majeure. If San Marcos should be prevented, wholly or in part, from <br />transporting and delivering water to Kyle under this Agreement by reason of an act of God, <br />unavoidable accident, acts of the public enemy, strikes, floods, fires, governmental restraint, <br />breaks in San Marcos' pipelines or storage facilities, or for any other cause beyond San Marcos' <br />control, then the obligation of San Marcos to deliver water to Kyle shall be temporarily <br />discontinued during the continuance of such force majeure. No damages shall be recoverable <br />from San Marcos by reason of the temporary suspension of the transportation and delivery of <br />treated water due to any of the causes above mentioned. San Marcos shall notify Kyle promptly <br />if such delivery of water is temporarily suspended and shall use due diligence to restore service <br />at the earliest practicable date. <br /> <br />C:\My DocumentslAGRsmwa.doc <br /> <br />Page 4 <br />