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<br />NOW THEREFORE. in consideration of the mutual and <br />dependent covenants herein contained, it is agreed by the <br />parties hereto as follows: <br /> <br />A. The State and the Contractor have previously entered into a <br />termination contract, attached as Exhibit A, and a feasibility <br />report contract, attached as Exhibit B. EXhibits A and Bare <br />incorporated by reference herein. The Contractor's Articles of <br />Incorporation and Corporate By-Laws are also incorporated by <br />reference herein. <br /> <br />B. The Contractor agrees that it shall: <br /> <br />1. Employ an engineering firm (hereinafter referred to as <br />the Consultant) to prepare project plans and specifications for <br />the project. The project plans and specifications must be <br />approved in writing by the State before construction on the <br />project can commence. For purliJo ~ this paragraph. <br />Icon~t7u~tion" includes ann" 1 ~te and water rights <br />acqulsl tlons. ,K", <br /> <br />2. Contract for the!E' t~~~J[oJ[Soid project to a <br />responsible and capable 'orW~inafter referred to <br />as Construction Firm or ~,. ms). which Construction Firms shall <br />be selected by the Contractor through competitive pUblic <br />bidding. The State must approve, in writing. all contracts <br />before they can become effective. <br /> <br />3. Cause construction of the project to be completed <br />within three (3) years of the date of this contract. in <br />accordance with the project plans and specifications and any <br />necessary modification(s) thereof approved by the State. This <br />time may be extended by the State, in writing, if such time is <br />insufficient because of acts of God or other acts or <br />circumstances beyond the control of the Contractor. The <br />Contractor must produce documented justification of any such <br />acts or circumstances. <br /> <br />4. Require all Construction Firms and their subcontractors <br />to indemnify the State and the Contractor against all liability <br />and loss, and against all claims and actions based upon or <br />arising out of damage or injury, including death, to persons or <br />property. caused by any acts or omissions of those parties or <br />sustained in connection with the performance of any contract <br />related to the project or by conditions created thereby, or <br />based upon any violation of any statute. ordinance, or <br />regulation. and the defense of any such claims or actions. <br /> <br />5. Require all Construction Firms and their subcontrac- <br />tors to maintain during the term of their contracts for project <br />construction the following: <br /> <br />a. Workmen's compensation and employers' liability <br />insurance in the required statutory amounts. <br /> <br />b. Automobile liability insurance for all vehicles, <br />and comprehensive general liability insurance. both <br />in at least the following amounts: <br /> <br />(1) For any injury to one person in any single <br />occurrence, the sum of Five Hundred Thousand <br />Dollars ($500,000). <br /> <br />(2) For any injury to two or more persons in any <br />single occurrence, the sum of One Million Dollars <br />($1.000,000). <br /> <br />~"-It.-- <br />(3) For any damage to property, the sum of ~ j) <br />Hundred Thousand Dollars ($~OOO) for each RJ~\ <br />occurrence. ~O p~ <br /> <br />Page ~ of 10 Pages <br />