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B. Kyle will pay to San Marcos a water system impact fee of $4,500 for the connection at the initial Point of Delivery. Kyle will pay an impact fee in an amount mutually agreed upon by the parties for the connection at each subsequent Point of Delivery. Section 4. Billin2. A. At the end of each calendar month, San Marcos shall read the meter at each of the Points of Delivery, and immediately provide the results of the readings to San Marcos and to GBRA. On or before the 15th day of the following month, Kyle shall pay to San Marcos the amount due based on the reading for the previous month. After that due date, interest shall accrue on all bills at the maximum rate allowed by law. San Marcos shall have the right to verify any monthly bill. B. In the event Kyle fails to pay any charges when due and payable, San Marcos may give written notice of such delinquency to Kyle. If all bills due and unpaid, including interest thereon, are not paid within forty-five (45) days after delivery of such notice, then Kyle agrees that San Marcos shall be authorized at its option to institute suit to collect any amount due and unpaid, together with interest thereon and reasonable attorneys' fees; and Kyle further agrees that San Marcos may, at its option, discontinue delivering water to Kyle until all amounts due and unpaid are paid in full with interest thereon as herein specified. Section 6. Termination bv San Marcos. San Marcos may discontinue transporting water through its water distribution system to Kyle upon forty-eight (48) full calendar months' written notice to Kyle. Upon receipt of such notice, Kyle shall make such arrangements as it deems necessary to continue to obtain delivery of its treated water from the San Marcos Water Treatment Plant. San Marcos hereby grants Kyle permission and a license, in such event, to construct, own and operate a water transmission line from the point of connection in Section 1 to the San Marcos Water Treatment Plant. Section 7. Force Majeure. If San Marcos should be prevented, wholly or in part, from transporting and delivering water to Kyle under this Agreement by reason of an act of God, unavoidable accident, acts of the public enemy, strikes, floods, fires, governmental restraint, breaks in San Marcos' pipelines or storage facilities, or for any other cause beyond San Marcos' control, then the obligation of San Marcos to deliver water to Kyle shall be temporarily discontinued during the continuance of such force majeure. No damages shall be recoverable from San Marcos by reason of the temporary suspension of the transportation and delivery of treated water due to any of the causes above mentioned. San Marcos shall notify Kyle promptly if such delivery of water is temporarily suspended and shall use due diligence to restore service at the earliest practicable date. Section 8. San Marcos' Records; Kvle's Collection of Fees. San Marcos agrees that it will maintain books, records and accounts relating to the operation, maintenance and repair of its water distribution system as a separate utility system in keeping with standard accounting practices. Kyle agrees to establish, charge and collect from its water customers rates, fees and charges sufficient to pay all payments under this Agreement. 3