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supplemental agreement approved by the City of San Marcos and by the EAA in accordance <br />with its procedures for approving such a contract. <br />ARTICLE III <br />COMPENSATION <br />Section 3.1. Fees and Expenses. The EAA agrees to pay the City of San Marcos for its <br />services rendered, costs, and expenses incurred under this Agreement which are reasonably <br />consistent with the Scope of Work and Budget Estimate, but in no event shall compensation to <br />the City of San Marcos for work under this Agreement exceed $25,000. The City of San Marcos <br />will be responsible for the payment of all of its other and additional costs and expenses. The <br />City of San Marcos may not exceed the contractual amount. The City of San Marcos is not <br />authorized to spend any additional funds without prior written approval from the EAA. The <br />EAA will not be held accountable for any unauthorized work performed or funds spent by the <br />City of San Marcos. <br />Section 3.2. Payment. All invoices from the City of San Marcos to the EAA, for the <br />Services related hereto, shall be sent monthly and shall provide an itemization of the Services <br />rendered, costs and expenses incurred. The terms of each invoice shall be net thirty (30) days <br />upon EAA receipt and approval of that invoice. <br />ARTICLE IV <br />CONSULTANT PERSONNEL AND SUBCONTRACTORS <br />Section 4.1. Personnel. The City of San Marcos will provide any and all personnel <br />necessary for its performance of the Services hereunder. It is understood that to the extent the <br />City of San Marcos personnel are used, the City of San Marcos will be entirely responsible for <br />the cost of those services provided consistent with the Funding and Management Agreement <br />related to the HCP. The City of San Marcos will be responsible for its employees in all respects, <br />including, without limitation, their compliance with applicable laws and their safety, including <br />without limitation, all Occupational Safety and Health Administration ( "OSHA ") standards, <br />requirements, and regulations. The City of San Marcos hereby indemnifies and holds harmless <br />the EAA, its officers, employees and directors, from and against any claims bought by any <br />employee, subcontractor or other agent of the City of San Marcos relating in any way to the work <br />performed under this Contract. <br />Section 4.2. Subcontractors. In performing the Services under this Agreement, the City <br />of San Marcos shall retain and utilize subcontractors. Expenses associated with City of San <br />Marcos employees' facilitating or overseeing the Services shall not be billed to this Agreement <br />as per Exhibit A. The EAA, in consultation with the City of San Marcos, shall have the right to <br />terminate, limit, or alter, at any time, the participation of any subcontractor utilized by the City of <br />San Marcos. The City of San Marcos will be responsible for its subcontractors in all respects <br />3 of 7 <br />