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<br />, <br />,. <br /> <br />t project. The project shall he deemed commenced when the Participant makes any expenditure or <br /> <br /> <br />2 incurs any obligation with respect to the project. <br /> <br />3 <br />4 After the project commences, the Participant and the State may terminate the agreement h <br />5 mutual consent, in which case they shall negotiate termination conditions. <br />6 <br />7 If the Participant materially fails to comply with the terms of the agreement, the State shall <br />8 provide written notice of non-compliance, which states the nature of the deficiency. If the <br />9 Participant is still not in compliance thirty (30) days after receipt of the notice, the State may in <br />10 addition to other remedies: (1) withhold cash payments until the deficiency is removed; (2) <br />11 administer the project itself as it deems necessary to fulfill the requirement of the Interior, in which <br />12 case the Participant agrees to reimbnrse the State for any costs or expenses incurred therehy; (3) <br />13 terminate the agreement and make no fnrther payments hereunder; (4) disallow costs; and (5) <br />14 disqualify the Participant from further subgrants. <br />15 <br />16 The Participant hereby waives all claims and recourse against the State including the right <br />17 to contribution for loss or damage to persons or property arising from, growing ont of, or in any <br />18 way connected with or incident to this agreement, except claims arising from the concurrent or sole <br />19 negligence of the State, its officers, agents, and employees. The Participant shall indemnify the <br />20 State and its officers, agents, and employees against and hold the same free and harmless from any <br />21 and all claims, demands, damages, losses, costs, and/or expenses of liability due to, or arising out of, <br />22 either in whole or in part, whether directly or indirectly, the organization, development, <br />23 construction, operation, or maintenance of the project. Participant shall waive and indemnify State <br />24 only in proportion to and to the extent that such claims, demands, damages, losses, costs, and/or <br />25 expenses of indemnification are caused by or result from the negligent or intentional acts or <br />26 omission of Participant, its officers, agents, or employees. <br />27 <br />28 The State and the Participant shall ensure that the following conflict of interest provisions <br />29 are enforced: <br /> <br />30 <br /> <br />31 <br /> <br />a) No official or employee of the State or the Participant who is authorized in his or <br /> <br /> <br />her capacity to negotiate, make, or approve, or to take part in such decisions regarding a <br /> <br />32 <br /> <br />-3- <br />