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1. The Contractor agrees to indemnify, defend and save harmless the State, its officers, ugents and employees from any anti all claims and losses accruing or resulting to amand all contractors, subcon- tractors, materialmen, laborers and any other person, fira91:gR fration furnishing or suppking work, services, materials or supplies in connection with th pe urn ance of this contract, and from any and all claims anti losses accruing or resulin to m person, firm or corporation who mac be injured net i enL or damaged by the Contractor in theker, rn rice of this contract. 3. The Contractor, and the agents and employees of Contractor, in the performance of this agree- ment, shall act in an independent capacity and not as officers or employees or agents of State of California. 3. The State may terminate this agreement and he relieved of the paN'ment of any consideration to Contractor should Contractor fail to perform the aiyenants herein contained at the time and in the manner herein provided. In the event of smeh termination the State may proceed with the work in any manner deemed proper by the State. The cost to the State shall he deducted from arc sum thle the Contractor under this agreement, and the balance. if am, shall he paid the Contractor upon demand. a. Withomt the written consent of the State, this agreement is not assignable In Contractor either in whole or in part. 5. Time is of the essence in this agreement. 6. No alteration or variation of the terms of this contract shall he cull(] unless nwde in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein. shall be binding on any of the parties hereto. S. The consideration to he paid Contractor, as provided herein. shall he in compensation for all of Contractors expenses incurred in the perfornwrice hereof, inchidint; trace) and per diem. unless other- oiw evpressh so provided. _ 85 354M