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Section 9. San Marcos' System Operation and Maintenance. San Marcos will incur no responsibility to enlarge or improve its water distribution system to accommodate the transportation of water for Kyle. However, San Marcos specifically agrees to operate, maintain and improve its water distribution system in accordance with sound business and engineering principles and in a manner that will at least meet federal and state requirements. Section 10. Remedies; No Waivers. It is not intended hereby to specify, and this Agreement shall not be considered as specifying, an exclusive remedy for any default, but all such other remedies existing at law or in equity may be availed of by either party and shall be cumulative. No waiver or waivers of any breach or default, or any breaches or defaults, made by a party hereto of any term, covenant, condition or liability hereunder or the performance by the other party of any duty or obligation hereunder shall be deemed or construed to be a waiver of subsequent breaches or defaults of any kind. Section 11. Amendments. This Agreement shall be subject to change or modification only with the mutual written consent of the governing bodies of each of the parties. Section 12. Assi2nment. This Agreement shall not be assignable by Kyle without the prior written consent of San Marcos and shall not be assignable by San Marcos without the prior written approval of Kyle. Section 13. Third Parties. This Agreement shall be for the sole and exclusive benefit of San Marcos and Kyle and shall not be construed to confer any benefit or right upon any third party. Section 14. Entire A2reement. This Agreement constitutes the entire agreement between the parties relative to the subject matter thereof. Section 15. Severability. The provisions of this Agreement are severable and if any word, phrase, clause, sentence, paragraph, section or other part of this Agreement or the application thereof to any person or circumstance shall ever be held by any court of competent jurisdiction to be invalid or unconstitutional for any reason, the remainder of this Agreement and the application of such word, phrase, clause, sentence, paragraph, section or other part hereof to other persons or circumstances shall not be affected hereby. Section 16. Term; Renewal. The term of this agreement is from January 1, 2001 to December 31, 2005, unless it is terminated earlier pursuant to the provisions hereof. If not earlier terminated, this agreement may be renewed for one additional five year term with the mutual written consent of the parties. IN WITNESS WHEREOF, the parties hereto, acting under the authority of their respective governing bodies, have caused this Agreement to be duly executed in multiple counterparts, each of which shall constitute an original. 4