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<br />6-28-99 <br /> <br />this Contract, unless Hays Energy has notified the City, in writing prior to the deadline in the <br />City's billing notice, of a bona fide dispute concerning the invoice or bill. <br />2. Hays Energy fails to comply with any of the Laws and Regulations for which Hays <br />Energy is responsible for compliance. <br /> <br />C. The failure or refusal of a party to comply with any term, provision, or covenant of this <br />Contract will constitute a default by that party. In addition, if Hays Energy becomes insolvent, or <br />commences, or has commenced against it, proceedings in bankruptcy, this will constitute a default <br />by Hays Energy. This Contract may be terminated by either party upon a default by the other party. <br />In the event of a default by a party, the other party shall give the defaulting party written notice of <br />default, and, if the defaulting party fails to cure or remedy the default within 30 days following <br />receipt of notice, this Contract shall terminate immediately without further notice to the defaulting <br />party. The City's acceptance of Hays Energy's monthly payments subsequent to the occurrence of <br />any event of default will be as compensation for the provision of wastewater treatment services, and <br />will in no way constitute a waiver by the City of its right to exercise any remedy provided for any <br />event of default. <br /> <br />Section 3.04. Uncontrollable Circumstances. In this Agreement, "Uncontrollable Circumstance" <br />means any act, event, or condition beyond the control of a party that prevents the party from <br />performing any obligation under this Contract. Neither party will be liable to the other for any <br />failure or delay in performance of an obligation under this Contract that results directly from an <br />Uncontrollable Circumstance. An act, event or condition is not beyond the reasonable control of <br />a party if it is a result of any willful or negligent act, error or omission or failure to exercise <br />reasonable diligence on the part of the party. The party experiencing an Uncontrollable Circumstance <br />will notify the other party within five days of the occurrence of the Uncontrollable Circumstance and <br />give a specific description of the Uncontrollable Circumstance, including the impact on the party's <br />obligations under the Contract. <br /> <br />Section 3.05. Independent Contractors. Nothing in this agreement will be construed as creating <br />any form of partnership or joint venture relationship between the parties. The parties are <br />independent contractors with respect to each other. <br /> <br />Section 3.06. Indemnity. Hays Energy will hold harmless, indemnify and defend the City and its <br />employees, agents, officers and servants from any and all lawsuits, claims, demands and causes of <br />action of any kind arising from the negligent or intentional acts, errors or omissions of Hays Energy, <br />its officers, employees or agents in connection with this Contract. This will include, but not be <br />limited to, the amounts of judgments, penalties, interest, court costs, reasonable legal fees, and all <br />other expenses incurred by the City arising in favor of any party, including the amounts of any <br />damages or awards resulting from claims, demands and causes of action for personal injuries, death <br />or damages to property. <br /> <br />6 <br />