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2 <br />disbursed, the Secretary may withhold funds until the litigation is <br />concluded. <br /> <br /> 4. PROJECT DESCRIPTION AND LOCATION. Project is pre-construction costs for <br />a flood protection study of the area surrounding Mapleton. Project is located east of <br />Mapleton in Cass County, North Dakota. <br /> <br /> 5. ELIGIBLE COSTS. Commission has sole discretion to determine eligible costs <br />and availability of Commission funds. Additional information is outlined in Commission’s <br />cost-share policy. Commission will not cost-share in litigation costs unless there has been <br />a separate authorization. <br /> <br /> 6. PAYMENT. Commission will make partial payments upon receipt and <br />approval of Sponsor’s written request. Sponsor must provide Commission verification of <br />actual costs and a Project status report with each payment request. A Commission <br />representative may inspect Project to determine whether the work satisfies Commission’s <br />cost share requirements before Commission makes payment(s) to Sponsor. Request for <br />final payment must include a copy of Project. <br /> <br /> 7. INDEMNIFICATION. Sponsor must require all subcontractors, other than state <br />employed subcontractors, before commencement of an agreement between Sponsor and <br />the subcontractor, to defend, indemnify, and hold harmless State, from and against claims <br />based on the vicarious liability of State or its agents, but not against claims based on <br />State’s negligence or intentional misconduct. This obligation to defend, indemnify, and <br />hold harmless does not extend to professional liability claims arising from professional <br />errors and omissions. The legal defense provided by subcontractor to State under this <br />provision must be free of any conflicts of interest, even if retention of separate legal <br />counsel for State is necessary. Subcontractor also agrees to reimburse State for all costs, <br />expenses, and attorneys' fees incurred if State prevails in an action against subcontractor <br />in establishing and litigating the indemnification coverage required herein. This obligation <br />continues after the termination of this agreement. <br /> <br />8. INSURANCE. Sponsor must secure and keep in force during the term of this <br />agreement, from an insurance company, government self-insurance pool, or government <br />self-retention fund authorized to do business in North Dakota, commercial general liability <br />with minimum limits of liability of $500,000 per person and $2,000,000 per occurrence. <br /> <br /> In addition, Sponsor must require all subcontractors, other than state <br />employed subcontractors, before commencement of an agreement between Sponsor and <br />the subcontractor, to secure and keep in force during the term of this agreement, from <br />insurance companies authorized to do business in North Dakota, the following insurance <br />coverages: <br /> <br />a. Commercial general liability, including premises or operations, <br />contractual, and products or completed operations coverages (if <br />applicable), with minimum liability limits of $2,000,000 per <br />occurrence.