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<br />3. The Sponsor's acceptance of this Offer and ratification and adoption of this Grant shall be <br />evidenced by execution of this Grant by the Sponsor. The Grant shall comprise a <br />contract, constituting the obligations and rights of the State of Texas and the Sponsor <br />with respect to the accomplishment of the project and the operation and maintenance of <br />the airport. <br /> <br />If it becomes unreasonable or impractical to complete the project, the State may void this <br />agreement and release the Sponsor from any further obligation of project costs. <br /> <br />4. Upon entering into this Grant, Sponsor agrees to name an individual, as the Sponsor's <br />Authorized Representative, who shall be the State's contact with regard to this project. <br />The Representative shall receive all correspondence and documents associated with this <br />grant and shall make or shall acquire approvals and disapprovals for this grant as required <br />on behalf ofthe Sponsor, and coordinate schedule for work items as required. <br /> <br />5. By the acceptance of grant funds for the maintenance of eligible airport buildings, the <br />Sponsor certifies that the buildings are owned by the City and/or County. The buildings <br />may be leased but if the lease agreement specifies that the lessee is responsible for the <br />upkeep and repairs of the building no state funds shall be used for that purpose. <br /> <br />6. Sponsor shall request reimbursement of eligible project costs on forms provided by the <br />State. All reimbursement requests are required to include a copy of the invoices for the <br />materials or services. The reimbursement request will be submitted no more than once a <br />month. <br /> <br />7. The Sponsor's acceptance of this Agreement shall comprise a Grant Agreement, as <br />provided by the Transportation Code, Chapter 21, constituting the contractual obligations <br />and rights of the State of Texas and the Sponsor with respect to the accomplishment of <br />the airport maintenance and compliance with the assurances and conditions as provided. <br />Such Grant Agreement shall become effective upon the State's written Notice to Proceed <br />issued following execution of this agreement. <br /> <br />Page 5 ofl2 <br /> <br />A VN4301.DOC (912005) <br />