CALIFORNIA, STATE OF - DEPARTMENT OF PARKS AND RECREATION (2)

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E. Project Termination 1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that have not been expended by the GRANTEE shall revert to the STATE. 2. The GRANTEE may unilaterally rescind this Grant Contract at any time prior to the commencement of the project. After project commencement, this Grant Contract may be rescinded, modified or amended only by mutual agreement in writing between the GRANTEE and the STATE, unless the provisions of this Grant Contract provide that mutual agreement is not required. 3. Failure by the GRANTEE to comply with the terms of the (a) GUIDE, (b)this Grant Contractor any other Grant Contract, specified or general, that GRANTEE has entered into with the STATE or any other department, agency, commission or other subdivision of California State government, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, the STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this Grant Contract despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the best of its ability. 4. Any breach of any term, provision, obligation or requirement of this Grant Contract by the GRANTEE shall be a default of this agreement. In the case of any default by GRANTEE, the STATE shall be entitled to all remedies available under law and equity, including but not limited to: a) Specific Performance; b) Return of all grant funds; c) Payment to the STATE of the fair market value of the project property or the actual sales price, whichever is higher; and d) Payment to the STATE of the costs of enforcement of this Grant Contract, including but not limited to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees. 5. The GRANTEE and the STATE agree that final payment may not be made until the work described in the GRANT SCOPE is complete. F. Budget Contingency Clause If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program, the STATE shall have the option to either cancel this Grant Contract with no liability occurring to the STATE or offer a Grant Contract amendment to GRANTEE to reflect the reduced grant amount. This Paragraph shall not require the mutual agreement as addressed in Paragraph E, subsection 2, of this agreement. G. Hold Harmless 1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this Grant Contract except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees. 2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses or liability costs arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of the property described as the project which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees. 3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the 4 General Fund Specified Program Grant Contract