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ACTIA 2002 -26 <br /> shown in EXHIBIT "D ", Appendix B, "Policy Regarding the Definition and Use of Excess <br /> Revenues and Unused Funds ". <br /> (12) Should any portion of the PROJECTS be financed with federal or state funds, all <br /> applicable laws, rules and policies relating to the use of such funds shall apply notwithstanding <br /> other provisions of this AGREEMENT. <br /> (13) The laws of the State of California will govern the validity of this AGREEMENT, its <br /> interpretation and performance, and any other claims related to it. <br /> (14) If SPONSOR materially breaches this AGREEMENT, including but not limited to failing <br /> to meet schedule without compelling reason, failing to file required Progress Reports in the time <br /> specified by this AGREEMENT, or failing to comply with applicable regulations, ACTIA may <br /> either terminate this AGREEMENT or suspend payments to SPONSOR until such time as <br /> SPONSOR makes reasonable efforts to comply with this AGREEMENT. <br /> (15) Neither ACTIA nor any officer, consultant, or employee thereof shall be responsible for <br /> any clamage or liability occurring by reason of anything done or omitted to be done by <br /> SPONSOR in connection with the PROJECTS. It is also understood and agreed, pursuant to <br /> Government Code Section 895.4, SPONSOR shall fully defend, indemnify and hold harmless <br /> ACTIA, and all its officers and employees from any liability imposed on ACTIA for injury (as <br /> defined in Government Code Section 810.8) occurring by reason of anything done or omitted to <br /> be done by SPONSOR in connection with PROJECTS. <br /> (16) Neither SPONSOR nor any officer, consultant, or employee thereof shall be responsible <br /> for any damage or liability occurring by reason of anything done or omitted to be done by <br /> ACTIA under or in connection with any work, authority or jurisdiction delegated to ACTIA <br /> under this AGREEMENT. It is also understood and agreed, pursuant to Government Code <br /> Section 895.4, ACTIA shall fully defend, indemnify and hold harmless SPONSOR, and all its <br /> officers and employees from any liability imposed on SPONSOR for injury (as defined in <br /> Government Code Section 810.8) occurring by reason of anything done or omitted to be done by <br /> Final 5/16/02 Page 13 <br />