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VI. TERM OF AGREEMENT: This Agreement shall be effective as of January 1, <br /> 2015 and shall continue to December 31, 2019. This Agreement shall be in effect <br /> as determined above unless terminated by either party. Termination of the <br /> Agreement by either party shall be effective by serving the other party with a <br /> written notice of termination not less than ninety(90) days prior to the date of <br /> termination of the Agreement. Either party, at its option,may terminate the <br /> Agreement as set forth above if the other party fails to comply with the terms and <br /> conditions of this Agreement. The parties also agree that this Agreement may be <br /> renewed on an annual basis upon agreement of both parties. Renewal of the <br /> Agreement may be by written resolution of both parties prior to expiration of the <br /> Agreement term. <br /> VII. ASSUMPTION OF LIABILITY: <br /> 1. Pequot Lakes agrees to assume all liability for Pequot Lakes' personnel <br /> arising out of public works services performed pursuant to this Agreement <br /> and Loon Lake agrees to assume all liability for Loon Lake personnel <br /> arising out of services performed pursuant to this Agreement. <br /> 2. Each party agrees that the acts of its employees and agents for any activity <br /> other than public works services identified herein shall be its responsibility <br /> and each party indemnifies the other from any claims arising out of non- <br /> public works activities caused by each party. <br /> 3. Pequot Lakes shall not be deemed to assume any liability for intentional <br /> misconduct of Loon Lake Township personnel or any agent or employee <br /> thereof. Loon Lake shall defend Pequot Lakes, its officers, employees, <br /> and agents against, indemnify and hold Pequot Lakes harmless from any <br /> claim for damages resulting from the performance of the services by Loon <br /> Lake under this Agreement. <br /> 4. Loon Lake shall not be deemed to assume any liability for intentional <br /> misconduct of Pequot Lakes' personnel or any agent or employee thereof. <br /> Pequot Lakes shall defend Loon Lake, its officers, employees,and agents <br /> against, indemnify and hold Loon Lake harmless from any claim for <br /> damages resulting from the performance of the services by Pequot Lakes <br /> under this Agreement. <br /> 5. Pequot Lakes and Loon Lake shall maintain comprehensive municipal <br /> liability coverage and automobile liability coverage in an amount equal to <br /> or greater than the maximum liability applicable to municipalities under <br /> Minnesota Statutes, Section 466.04, subd. 1., as amended. Pequot Lakes <br /> and Loon Lake shall add the other party as an additional insured to its <br /> liability coverage for claims that may arise under this agreement Pequot <br /> 2 <br />