CONTRACT MAY BE TERMINATED IN CASE OF DEFAULT IN PAYMENT

16. If Defense Plant shall be in arrears for more than twelve (12) months in the payment of any charge, including interest, due to the United States hereunder, and shall not have obtained an extension of time from the Secretary for the payment thereof, or, if such extension be obtained, has not made such payment within the time as extended, then the Secretary shall have the right forthwith upon written notice to Defense Plant to terminate this contract. Nothing contained in this contract shall relieve Defense Plant from the obligation to make the United States whole, for the period of this contract, for all loss and/or damage occasioned by the failure of Defense Plant to pay for energy, including that energy incident to supplying generating capacity, furnished under this

contract.

REMEDIES UNDER CONTRACT NOT EXCLUSIVE

17. Nothing contained in this contract shall be construed as in any manner abridging, limiting or depriving the United States of any means of enforcing any remedy either at law or in equity for the breach of any of the provisions hereof which it would otherwise have. The waiver of a breach of any of the provisions of this contract shall not be deemed to be a waiver of any provision hereof, or of any other subsequent breach of any provision hereof.

PRIORITY OF CLAIMS OF THE UNITED STATES

18. Claims of the United States arising out of this contract shall have priority over all others, secured or unsecured.

DISPUTES AND DISAGREEMENTS

19. Disputes or disagreements between the United States and Defense Plant as to the interpretation or performance of the provisions of this contract shall be determined either by arbitration or court proceedings. If in any such arbitration or court proceedings or otherwise any sum or amount paid by Defense Plant on the demand or bill of the United States under this contract shall be held not to have been due or owing, payment shall not be deemed to have been voluntary, and such sum or amount shall be refunded. Whenever a controversy arises out of this contract, and the disputants agree to submit the matter to arbitration the Secretary shall name one arbitrator and Defense Plant shall name one arbitrator, and the two arbitrators thus chosen shall select a third arbitrator, but in the event of their failure to name such third arbitrator within five days after their first meeting, such third arbitrator shall be named by the Chief Justice of the Supreme Court of the United States. The decision of any two of

such arbitrators shall be a valid award of the arbitrators, and shall be final and binding as to the parties hereto.

TRANSFER OF INTEREST IN CONTRACT

20. No voluntary transfer of this contract, or of the rights of Defense Plant hereunder, except to the United States or any department or independent establishment thereof, shall be made without the written approval of the Secretary; and any successor or assign of the rights of the Defense Plant, whether by voluntary transfer, judicial sale, trustee's sale, or otherwise, shall be subject to all the provisions and conditions of this contract to the same extent as though such successor or assign were the original contractor hereunder; provided, that the execution of a mortgage or trust deed, or judicial or trustee's sale made thereunder, shall not be deemed a voluntary transfer within the meaning of this Article.

NOTICES

21. (a) Any notice, demand or request required or authorized by this contract to be given or made to or upon the United States shall be delivered, or mailed postage prepaid, to the Director of Power, United States Bureau of Reclamation, Boulder City, Nevada, except where, by the terms hereof, the same is to be given or made to or upon the Secretary, in which event it shall be delivered, or mailed postage prepaid, to the Secretary, at Washington, D. C.

(b) Any notice, demand or request required or authorized by this contract to be given or made to or upon Defense Plant shall be delivered, or mailed postage prepaid, to the local representative of Defense Plant Corporation, Las Vegas, Nevada.

(c) The designation of any person specified in this article or in any such request for notice, or the address of any such person, may be changed at any time by notice given in the same manner as provided in this article for other notices.

REPRESENTATIVE MAY ACT FOR SECRETARY

22. The Secretary, in any instance in which this contract provides for action to be taken by him or a determination to be made by him, may act through a representative or representatives authorized by him in writing.

CONTRACT CONTINGENT UPON APPROPRIATIONS

23. This contract is subject to appropriations being made by Congress from time to time of money sufficient to make all payments and to provide for the doing and performance of all things on the part of the United States to be done and performed under the terms hereof. No liability shall accrue against the

United States, its officers, agents or employees, by reason of sufficient money not being so appropriated.

OFFICIALS NOT TO BENEFIT

24. No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this contract or to any benefit that may arise herefrom, but this restriction shall not be construed to extend to this contract if made with a corporation or company for its general benefit.

IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed the day and year first above written.

Attest:

THE UNITED STATES OF AMERICA,

By ABE FORTAS, Acting Secretary of the Interior.

DEFENSE PLANT CORPORATION,

By SAM H. HUSBANDS, President.

LEO NIELSON, Assistant Secretary.

[ITEM 86]

BOULDER CANYON PROJECT

CONTRACT FOR THE RESALE OF ELECTRICAL ENERGY TO BE DEVELOPED AT BOULDER DAM POWER PLANT

1. THIS CONTRACT, made this 9th day of May, 1942, between THE UNITED States of AMERICA (hereinafter referred to as the "United States"), acting for this purpose by Abe Fortas, Acting Secretary of the Interior (hereinafter referred to as the "Secretary"), and DEFENSE PLANT CORPORATION (hereinafter referred to as "Defense Plant"), a corporation created by Reconstruction Finance