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(a) Enforcement of Payments Without Termination. In the event the Authority does <br />not elect to terminate this Operating Agreement with respect to a User in the manner hereinafter <br />provided for in subparagraph (b) hereof, the User agrees to and shall remain liable for the <br />payment of its User Payment and the performance of all conditions herein contained and shall <br />reimburse the Authority for the full amount of its User Payments to the end of this Operating <br />Agreement; provided that its User Payments shall be payable only at the same time and in the <br />same manner as hereinabove provided for such User Payment, notwithstanding any suit brought <br />by the Authority for the purpose of obtaining possession of the Project or any component thereof <br />or the exercise of any other remedy by the Authority. Notwithstanding the provisions of the JPA <br />Agreement, User agrees that this Operating Agreement constitutes full and sufficient notice of <br />the right of the Authority to re- allocate service provided by the Project in the event of default by <br />a User without effecting a surrender of this Operating Agreement, and further agrees that no acts <br />of the Authority in effecting such re- allocation shall constitute a surrender or termination of this <br />Operating Agreement irrespective of the term for which such re- allocation is made or the terms <br />and conditions of such re- allocation, or otherwise, but that, on the contrary, in the event of such <br />default by a User the right to terminate this Operating Agreement with respect to such User shall <br />vest in the Authority to be effected in the sole and exclusive manner hereinafter provided for in <br />subparagraph (b) hereof. Any User which is in default hereunder agrees to surrender and quit <br />possession of the Project or any component thereof upon demand of the Authority. <br />(b) Termination of the Operating Agreement. Notwithstanding any provision of the <br />JPA Agreement to the contrary, the Authority, at its option, may, and shall at the written <br />direction of either Bond Holder, terminate this Operating Agreement and reallocate all or any <br />portion of the service capacity of the Project relating to a defaulting User; provided, that the <br />Authority shall not terminate this Operating Agreement with respect to a User unless such <br />termination will not materially adversely affect either Bond Holder. In the event of such <br />termination of this Operating Agreement by the Authority at its option and in the manner <br />hereinafter provided on account of default by a User (and notwithstanding any re- allocation of <br />the service capacity of the Project by the Authority in any manner whatsoever), the defaulting <br />User nevertheless agrees to pay to the Authority the difference between all costs, loss or damages <br />howsoever arising or occurring payable at the same time and in the same manner as is herein <br />provided in the case of the User Payment and any amounts realized from the reallocation of such <br />service capacity. Neither notice to pay the User Payment or notice to deliver up possession of <br />any component of the Project given pursuant to law shall of itself operate to terminate this <br />Operating Agreement, and no termination of this Operating Agreement on account of default by <br />a User shall be or become effective by operation of law, or otherwise, unless and until the <br />Authority shall have given written notice to such User of the election on the part of the Authority <br />to terminate this Operating Agreement with regards to such User. User covenants and agrees <br />that no surrender of the Project, or any component thereof, or any termination of this Operating <br />Agreement shall be valid in any manner or for any purpose whatsoever unless stated and <br />accepted by the Authority by such written notice. User hereby irrevocably appoints the <br />Authority as the agent and attorney -in -fact of User to terminate a defaulting User's service from <br />the Project upon the occurrence and continuation of an Event of Default relating to such User, <br />and User hereby exempts and agrees to save harmless the Authority from any costs, loss or <br />damage whatsoever arising or occasioned in accordance with the provisions herein contained. <br />Project Operating Agreement 090910 <br />- 18 - <br />