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NOW, THEREFORE, pursuant to the laws of the State of Texas, including Texas Local <br />Government Code Sections 42.022(b), 42.022(d) and 42.023, for and in consideration of the <br />covenants, conditions and undertakings hereinafter described, and the benefits to accrue to the <br />cities, and subject to each and every term and condition of this Agreement, the parties contract, <br />covenant and agree as follows: <br />Article One <br />Findings and Declarations <br />Section 1.1 Fact Findings. The recitals above are adopted as findings by the governing bodies <br />of San Marcos and Kyle, and are incorporated herein for all purposes. The governing bodies of <br />San Marcos and Kyle have authorized and approved this Agreement. <br />Article Two <br />Effective Date and Nature of Agreement <br />Section 2.1 Effective Date of Agreement. This Agreement shall become effective ninety days <br />from the date of signature by authorized representatives of both cities. ( "Effective Date "). <br />Section 2.2 Intent and Purpose. The intent and purpose of this Agreement is to provide for <br />effective and efficient municipal planning and development, and the release of ETJ as set out in <br />this Agreement. <br />Section 2.3 Map. References in this Agreement to any geographic areas referred to the area <br />named and shown on the Map attached hereto as Exhibit "B" are incorporated herein for all <br />purposes. <br />Article Three <br />Release of ETJ <br />Section 3.1 ETJ Mutual Release. San Marcos will release, by ordinance approving this <br />Agreement, the portion of San Marcos ETJ identified as Tracts A and B as shown on Exhibit "B" <br />to this Agreement. Kyle will release Tracts C, D and E as shown on Exhibit "B" to this <br />Agreement. The mutual release of ETJ will occur upon approval of the ordinance approving this <br />Agreement and the execution of this Agreement by both parties. <br />Article Four <br />General and Miscellaneous <br />Section 4.1 Jurisdiction. This Agreement shall not be deemed to extend or increase the <br />jurisdiction or authority of either of the Cities except as necessary to implement and give effect <br />to this Agreement. Nothing in this Agreement shall be deemed to be applicable to, or an attempt <br />to limit or restrict, the legal rights, authority or jurisdiction of any other governmental entity. <br />Section 4.2 Governmental Immunity. Nothing in this Agreement shall be deemed to waive, <br />modify or amend any legal defense available at law or in equity to either of the cities nor to <br /># 224223 2 <br />