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<br />2. The State shall, for all purposes in connection with the project identified above, be the <br />Agent of the Sponsor. The Sponsor herewith grants the State a power of attorney to act <br />as its agent to perform the following services: <br /> <br />a. accept, receive, and deposit with the State any and all project funds granted, <br />allowed, and paid or made available by the Sponsor, the State of Texas, or any <br />other entity; <br /> <br />b. exercise such supervision and direction of the project work as the State reasonably <br />finds appropriate. Where there is an irreconcilable conflict or difference of <br />opinion, judgment, order or direction between the State and the Sponsor, and any <br />service provider the State shall issue a written order which shall prevail and be <br />controlling; <br /> <br />c. enter into contracts as necessary for execution of scope of services; <br /> <br />d. receive, review, approve and pay invoices and payment requests for services and <br />materials supplied in accordance with the State approved contracts; <br /> <br />e. obtain an audit as may be required by state regulations; <br /> <br />f reimburse sponsor for approved contract maintenance costs no more than once a <br />month. <br /> <br />PART V - Recitals <br /> <br />1. This Grant is executed for the sole benefit of the contracting parties and is not intended or <br />executed for the direct or incidental benefit -of any third party. <br /> <br />2. It is the intent of this grant to not supplant local funds normally utilized for airport <br />maintenance, and that any state financial assistance offered under this grant be in addition <br />to those local funds normally dedicated for airport maintenance. <br /> <br />3. This Grant is subject to the applicable provisions of the Transportation Code, Chapters 21 <br />and 22, and the Airport Zoning Act, Tex. Loc. Govt. Code Ann. ~~ 241.001 et seq. <br />(Vernon and Vernon Supp.). Failure to comply with the terms of this Grant or with the <br />aforementioned rules and statutes shall be considered a breach of this contract and will <br />allow the State to pursue the remedies for breach as stated below. <br /> <br />a. Of primary importance to the State is compliance with the terms and conditions of <br />this Grant. If, however, after all reasonable attempts to require compliance have <br />failed, the State finds that the Sponsor is unwilling and/or unable to comply with <br />any of the terms of this Grant, the State, may pursue any of the following <br /> <br />Page 6 of 12 <br /> <br />AVN4301.DOC (9/98) <br />