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1.4. Nothing in this Agreement shall require SMEU to have Services performed by LCRA, <br />nor shall LCRA be required to accept any work order submitted by SMEU. <br />II_ COMPENSATION <br />2.1. LCRA shall compensate SMEU for performance of the Services at SMEU's actual cost of <br />labor (including fringe benefits and overhead) and material, plus authorized expenses set forth <br />below. Compensation for Services will be estimated in the work orders referred to in Section 1.2. <br />2.2. The total cost to LCRA and LCRA TSC for performance of Services by SMEU hereunder <br />shall not exceed $1,000,000, per contract year. <br />2.3. Other expenses are authorized as follows: <br />a. SMEU's actual cost to transport necessary equipment and personnel to the joint LCRA <br />TSC and SMEU' Facilities; <br />b. Other expenses specified in the applicable work order or otherwise authorized in <br />advance by both Parties, including the costs of contracts entered into with third parties <br />to perform Services authorized by this Agreement. <br />2.4. On or before the fifteenth day of the month following a month in which the SMEU <br />performs Services under the Agreement, SMEU shall send LCRA an itemized invoice, in <br />duplicate, which describes the Services performed, the date(s) of performance, the amount of time, <br />materials and supplies expended, and all authorized expenses. Copies of all relevant timesheets, <br />invoices, bills, and receipts for expenses shall be attached to the invoice. <br />2.5. LCRA shall pay SMEU at the address shown, the amount due, within thirty-five (35) days <br />after receipt of an invoice. In the event that payment in full is not timely made, interest shall accrue <br />on the unpaid balance at the rate prescribed by Chapter 2251, TEX. Gov'T CODE ANN. Section <br />2251.025, Interest on Overdue Payment, as it may otherwise be amended or in accordance with its <br />successor statute, until paid in full. <br />2.6. LCRA reserves the right to review SMEU's invoices, and to audit and examine at any <br />reasonable time the books and records of SMEU to the extent necessary to verify the accuracy of <br />any statement, charge, computation or invoice made under the Agreement, and to recover any <br />overcharges paid by it. <br />III_ LCRA TSC's RESPONSIBILITIES <br />3.1. LCRA TSC shall identify the Facilities and equipment upon which SMEU will be <br />Interlocal Cooperation Agreement, San Marcos — LCRA and LCRA TSC Page 3 of 7 <br />