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35. COST REIMBURSEMENT 3:r. 1 SHAG, pursu,inl, to its authority wider 10 U. S.C. 7101(d), agrees to request funding from Congress and to reimburse DOHS and RWQCB for the costs related to the implementation of the Agreement as provided in this Section. 35.1.1 The amount of reimbursable costs payable under this Agreement shall not exceed eighty thousand dollars ($ 80,000.00) per year for the first two (2) years of the Agreement. Any invoiced amounts exceeding the first year' s cap shall roll over to the second year. Any invoiced amounts exceeding the yearly cap at the end of the second year shall not be payable under this Agreement unless the Parties agree otherwise. 35.1.2 Prior to the end of the second year, the amount of reimbursable costs for the subsequent years shall be renegotiated in accordance with any then existing agreement on the subject between DOD and the State of California. 35.1.3 If no such agreement has been reached between DOD and the State, SHAD and DOHS and RWQCB agree to negotiate in good faith a cap for future reimbursable costs. If SHAD and DOHS and RWQCB are unable to reach agreement after such negotiations, they shall refer any unresolved issues to dispute resolution in accordance with Subsection 35.7. 35. 1.4 If SHAD and DOHS and RWQCB are unable to resolve the issues in dispute through the dispute resolution process of Subsection 35.7, DOHS or RWQCB, as the case may be, may withdraw as a party to this Agreement by providing written notice of its withdrawal to each of the remaining Parties. Such withdrawal by DOHS or RWQCB, as the case may be, shall terminate all of the rights and obligations the withdrawing Party may have under this -51-