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<br />beginning any work on the addition. Kyle agrees to fund the actual cost for <br />the design and construction of the addition up to $445,831.44. <br />3. Pay an additional $20.00 for each animal received by the Shelter during FY 2006- <br />2007 in excess of the 1450 annual limit as stipulated in Section A(2) of this <br />Agreement. This additional amount per animal will increase $2.50 per animal <br />each fiscal year beginning FY 2007-2008 until it reaches a maximum of $50.00 <br />per animal. <br />4. Pay $48,045.00 toward the first year of personnel and operation expenses of the <br />Shelter upon execution of this Agreement. In addition, Kyle agrees to pay, <br />subject to appropriation by its City Council, the personnel and operation <br />expenses of the Shelter in accordance with Attachment A on October 15th of <br />each year, beginning October 15,2007, that this Agreement remains in effect. <br />5. Fully comply with the policies and guidelines of the Shelter as they now exist and <br />as they may be amended from time to time. <br /> <br />Section 2. Indemnitv <br /> <br />To the extent allowed under applicable law, the County and Kyle agree to hold harmless, <br />indemnify and defend San Marcos and its employees, agents, officers and servants from any and <br />all lawsuits, claims, demands and causes of action of any kind arising from the negligent or <br />intentional acts, errors or omissions of the County or Kyle, its officers, employees or agents with <br />respect to picking up and delivering animals to the Shelter. <br /> <br />Respectively, to the extent allowed under applicable law, San Marcos agrees to hold <br />harmless, indemnify and defend the County and Kyle and their employees, agents, officers and <br />servants from any and all lawsuits, claims, demands and causes of action of any kind arising <br />from the negligent or intentional acts, errors or omissions of San Marcos, its officers, employees, <br />or agents with respect to the care and disposition of any animal delivered by the County or Kyle <br />to San Marcos for care in the Shelter. <br /> <br />Section 3. Term <br /> <br />The term of this Agreement will commence on October 1, 2006, and will end on <br />September 30, 2016, unless terminated by one or more of the Parties in accordance with section <br />4.H. Thirty days prior to the termination of this Agreement, San Marcos, Kyle, and the County <br />will review the performance by the other Parties, and determine whether to continue the <br />partnership for an additional term. If the Parties decide to renew the agreement, for an additional <br />term, they will negotiate any new terms and conditions of an interlocal agreement binding them <br />to such an arrangement. <br /> <br />Section 4. Miscellaneous Provisions <br /> <br />A. Interlocal Cooperation: San Marcos, Kyle, and 1he County agree to cooperate with each <br />other in good faith at all times during the term of this Agreement in order to achieve the purposes <br /> <br />3 <br />