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documents incorporated by reference under the terms of this contract, and any future modifying <br />agreements, exhibits, attachments or references that are incorporated pursuant to State Fiscai Rules <br />and Policies. <br />1.3. "Exhibit" means a statement of work document, schedule, budget, or other identified exhibit which <br />has been incorporated into and attached to this contract. <br />1.4. "Goods" means anything that is produced or manufactured and that is obtained by the State, either <br />in and of itself, or in conjunction with services. <br />1.5. "Services" means services performed or tangible material produced or delivered in the performance <br />of services. <br />BASIC CONTRACT TERMS <br />2. Statement of Work <br />2.1 Grantee shall perForm the Services and provide the Goods (if applicable) described in Exhibit A, <br />Statement of Work. <br />3. Performance Standard <br />Grantee shall perform the Services and deliver the goods, if applicable, described in Exhibit A, Statement <br />of Work, in accordance with the highest standard of care, skill and diligence provided by a professional <br />person or company in performance of work similar to the Services, and al( services, and all consumables, <br />products, and materials used in performance of the Services shall be of good quality and free from faults <br />and defects. Grantee warrants that (a) services or goods provided under this contract shall meet the <br />description in Exhibit A, Statement of Work, (b) there are no pending or threatened suits, claims, or actions <br />of any type with respect to the services or goods provided and (c) the services and goods shall be free and <br />clear of any liens, encumbrances, or claims arising byor through Grantee or any partyYelated to Grantee: <br />4. Performance Term <br />4.1. This contract shall be effective upon approval by the Colorado State C o er, or ig ee, or on <br />July 2, 2007, whichever is later (the "Effect'sve Date") and extend throu h July 2, 2009. Pe�ormance <br />of this contract shall commence as soon as practicable after the ate 'and shall be <br />undertaken and performed in the sequence and manner set forth in Exhibit A, Statement of Work. <br />4.2. In the event the State desires to continue the Services and a replacement contract has not been fully <br />approved by the termination date of this contract, the State, upon written notice to Grantee, may <br />uni(aterally extend this contract for a period of up to three (3) months. The contract shall be extended <br />under the same terms and conditions as the original contract, inctuding, but not limited to prices, rates <br />and service delivery requirements. This extension shall terminate at the end of the three (3) month <br />period or when the replacement contract is signed by the Colorado State Controller or an authorized <br />delegate. <br />5. Grant Award (Compensation) <br />5.1. Payment of grant award pursuant to this contract will be made as earned, in whole or in part, from <br />available State funds encumbered in a maximum amount not to exceed $120,000. for the <br />perFormance of the Services and acquisition of Goods required by this contract and Exhibit A, <br />Statement of Work. Satisfactory performance under the terms of this contract shall be a condition <br />precedent to the State's obligation to compensate Grantee. <br />5.2. The maximum compensation payable under this contract, and under any renewal hereof, shall <br />include all Grantee fees, costs and expenses. <br />Page 2 of 15 <br />04-11-07 <br />