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ACTIA 2002-26.01 <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 damage 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 />Page 13 <br />