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<br />2. Time of performance. The CONTRACTOR recognizes that time is of the essence in the <br />performance of its obligations under this contract. Therefore, the CONTRACTOR shall <br />complete the tasks listed in the Scope of Work on or before two (2) years from the effective <br />date of this contract. <br /> <br />J. Disbursement of funds. The STATE shall disburse funds to the CONTRACTOR to pay for <br />the costs associated with completing the PROJECT up to $50,000 in the following manner: <br /> <br />a. Statement of costs. During the completion of the PROJECT. the CONTRACTOR shall <br />prepare statements of the costs of the PROJECT. Each statement shall indicate the <br />tasks that have been performed and the percentage completion of each task by task <br />number as specified in the Scope of Work. and submitted to the STATE for payment. <br /> <br />b. Payment of statements. Upon receipt and approval by the STATE of each such <br />statement of costs, the STATE will, within 30 days from the approval of such statement, <br />pay to the CONTRACTOR the amount of the statement or such portion thereof as has <br />been approved by the STATE. <br /> <br />4. Provision of PROJECT results to STATE. The CONTRACTOR shall provide the STATE with lull <br />access to Project development, data, drafts and conclusions and with copies of the interim <br />and final Study reports. In addition, upon completion of fhe PROJECT, the CONTRACTOR <br />shall, at the requesf of the CWCB, make a presentation at a regularly scheduled CWCB <br />meeting on fhe completed PROJECT. <br /> <br />5. Termination of contract for cause. If, through any cause, the CONTRACTOR fails to fulfiil in <br />a timely and proper manner its obligations under this contract, or if the CONTRACTOR violates <br />any of the covenants, agreements, or stipulations of this contract, the STATE shall thereupon <br />have the right to terminate this contract for cause by giving written notice to the <br />CONTRACTOR of such termination and specifying the effective date thereof, at least five (5) <br />days before the effective date of such termination. In that event, the CONTRACTOR shall <br />provide the STATE with copies of all finished PROJECT development, data, dratts and <br />conclusions. The CONTRACTOR shall provide such copies to the STATE within thirty (30) days <br />of the effective date of such termination. Upon submittal to the STATE of a statement of <br />costs for the period preceding the effective date of the termination of this contract, the <br />CONTRACTOR shall be entitled to receive the STATE'S share of the cost of any such materials <br />that have been prepared before the effective date of termination of this contract, have been <br />provided to the STATE, and have not yet been paid for as of the effective termination date. <br /> <br />Notwithstanding the above, the CONTRACTOR shall not be relieved of liability to the STATE for <br />any damages sustained by the STATE by virtue of any breach of this contract by the <br />CONTRACTOR, and the STATE may withhold any payments to the CONTRACTOR for the <br />purpose of setoff until such time as the exact amount of damages due the STATE from the <br />CONTRACTOR is determined. <br /> <br />6. Contract relationship. The parties to this contract intend that the relationship between <br />them contemplated by this contract is that of cost-sharing co-participants, not <br />employer-employee nor principal-agent. No employee, agent, or servant of the <br />CONTRACTOR shall be, or shall be deemed to be, an employee, agent, or servant of the <br />STATE. <br /> <br />7. Severability. To the extent that this contract may be executed and performance of the <br /> <br />Page 2 of 6 <br />