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<br />. <br /> <br />. <br /> <br />herein, the parties agree as follows: <br /> <br />1. Preparation of Plan. The CONTRACTOR shall require the CONSULTANT to perform the PLAN <br />tasks in accordance with the PLAN Scope of Services attached as Appendix A and <br />incorporated herein, <br /> <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 require <br />the CONSULTANT to complete the tasks listed in the PLAN Scope of Services on or before five <br />(5) years from the effective date of this contract. <br /> <br />3, Disbursement of funds. The STATE shall disburse funds to the CONTRACTOR to pay for <br />the costs associated with preparing the PLAN up to a maximum amount of $200,000 in the <br />following marmer: <br /> <br />a, Statement of costs. During the preparation of the STUDY, the CONTRACTOR and the <br />CONSULTANT shall prepare statements of the costs of the PLAN, Each statement shall <br />indicate the tasks that have been performed and the percentage completion of each <br />task by task number as specified in the PLAN Scope of Services, shall be approved by <br />the CONTRACTOR, 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 50% of the amount of the statement or such portion thereof as <br />has been approved by the STATE, <br /> <br />4. Provision of PLAN results to STATE. The CONTRACTOR shall provide the STATE with full <br />access to PLAN development, data, drafts and conclusions and with copies of the interim <br />and final Study reports, If necessary, the CONTRACTOR shall obtain copies of such PLAN <br />materials from the CONSULTANT on behalf of the STATE, In addition, upon completion of the <br />PLAN, the CONTRACTOR shall make a presentation to the CWCB at a regularly scheduled <br />CWCS meeting on the completed PLAN, <br /> <br />5, Termination of contract for cause. If, through any cause, the CONTRACTOR fails to fulfill 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 PLAN development, data, drafts and <br />conclusions prepared by the CONSULTANT pursuant to any contracts between the <br />CONTRACTOR and the CONSULTANT relating to the PLAN, The CONTRACTOR shall provide <br />such copies to the STATE within thirty (30) days of the effective date of such termination, <br />Upon submittal to the STATE of a statement of PLAN costs for the period preceding the <br />effective date of the termination of this contract, the CONTRACTOR shall be entitled to receive <br />the STATE'S share of the cost of any such PLAN materials that have been prepared before <br />the effective date of termination of this contract, have been provided to the STATE, and have <br />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 />Page 2 ot 7 <br />