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Agreement No. GF1806-0 <br />Grantee which affects performance of this or any other grant agreement or contract <br />entered into with the State. <br />If the State terminates without cause the agreement prior to the end of the Project <br />Performance Period, the Grantee shall take all reasonable measures to prevent further <br />costs to the State under this agreement. The State shall be responsible for any <br />reasonable and non -cancelable obligations incurred by the Grantee in the performance of <br />the agreement prior to the date of the notice to terminate, but only up to the undisbursed <br />balance of funding authorized in this agreement. <br />4. If the Grantee fails to complete the project in accordance with this agreement, or falls to fulfill <br />any other obligations of this agreement prior to the termination date, the Grantee shall be <br />liable for immediate repayment to the State of all amounts disbursed by the State under this <br />agreement, plus accrued interest and any further costs related to the project. The State <br />may, at its sole discretion, consider extenuating circumstances and not require repayment <br />for work partially completed provided that the State determines it is in the State's best <br />interest to do so. This paragraph shall not be deemed to limit any other remedies available <br />to the State for breach of this agreement. <br />5. Failure by the Grantee to comply with the terms of this agreement or any other agreement <br />under the Act may be cause for suspension of all obligations of the State hereunder. <br />S. Failure of the Grantee to comply with the terms of this agreement shall not be cause for <br />suspending all obligations of the State hereunder if, in the judgment of the State, such <br />failure was due to no fault of the Grantee. At the discretion of the State, any amount <br />required to settle at minimum cost any irrevocable obligations properly incurred shall be <br />eligible for reimbursement under this agreement. <br />Because the benefit to be derived by the State, from the full compliance by the Grantee <br />with the terms of this agreement, is the for the purposes as stated in the application for <br />the people of the State of California, and because such benefit exceeds to an immeasurable <br />and unascertainable extent time amount of money fumished by the State by way of grant <br />funds under the provisions of this agreement, the Grantee agrees that payment by the <br />Grantee to the State of an amount equal to the amount of the grant funds disbursed under <br />this agreement by the State would be inadequate compensation to the State for any breach <br />by the Grantee of this agreement. The Grantee further agrees therefore, that the <br />appropriate remedy in the event of a breach by the Grantee of this agreement shall be the <br />specific performance of this agreement, unless otherwise agreed to by the State. <br />F. Hold Harmless <br />1. Grantee shall waive all claims and recourses against the State, including the right to <br />contribution for loss or damage to persons or property arising from, growing out of or in any <br />way connected with or incident to this agreement, except claims arising from the gross <br />negligence of State, its officers, agents and employees. <br />2. Grantee shall indemnify, hold harmless and defend State, its officers, agents and employees <br />in perpetuity against any and all claims, demands, damages, costs, expenses or liability <br />costs arising out of the project, including development, construction, operation or <br />maintenance of the property described in the project description which claims, demands or <br />causes of action arise under Government Code Section 895.2 or otherwise, including but not <br />limited to items to which the Grantee has certified, except for liability arising out of the gross <br />negligence of State, its officers, agents or employees. Grantee acknowledges that it is <br />solely responsible for compliance with items to which it has certified. <br />25D-361 <br />