METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (2) -2008

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i) 1!'.l.C.,.Uf:> '):I'..t'1" ,I.IJ ) ..,~ ilO.318 P. ill Agreement No. 46000030S8 Failtnlt or refusal by the Grantee to comply with this provision shall be considered a substantial failure to comply with this Agreement. and ths Slats may eled to puraue any remedies provided In Article A-5 or rake any other action it deems necessary to protect its interesllf. A-12. CLAIMS DISPUTE CLAUSE: Any claim Ihat the Grantee may have regarding the perlormance of this agreement Including, but not limited to, claims for addltlonal compensation or extension of time, shaD be submitted to the Director, Department of Water Resources, within thirty (30) days of Ihe Grantee's knowledge of the claim. Slate and Grantes shall then altllmpt to negotfate a resolullon of such claim and process an amendment to lhis Agreement to implement the terms of any such resolution. A-13.REMEDles NOT EXCLUSIVE: The use by either party of any remedy specifled herein for the el)forcemsnt of this agreement Is not exclusive and Shall not deprlvethe party using such remedy of; or limit the appllcatfon at any other remedy proVided by law. A-14,STATE TO BE HELD HARMLESS: The Grantse agrees to IndemnItY the State and Its afllcem, agenl:ll. and employees against and to hold tile same free and harmless from any and all claims, demands, damages, rOSSEllI, costs, expenses, or lIabiflty due or Inddent to:either in whole or in part. and whether directly or indirectly, arising out of the Project. A-15.1NSPECTION OF BOOKS, RECORDS, AND REPORTS: During regularofflce houra, each of the parties hereto and thslr duly authcrtzed representatlvss shall have ths right to Inspsct and to make copies of any books, records, or reports of either party pertaining to this Agreement or matters rehlled hereto. Each of the partfe\l hereto shall malnlain and shail make available at aU dmes for such inspection acclIrate recOltls of all Its costs, dlsburaements, and receipts with respect to its aotfVil/84 underthla Agreement FaMure or refusal by the Grantee to complywl1h this provision shall be conll/dllr9d a substantl8/ faUUI1!l to comply wI1h this Agreement and the Slate may withhold disbursements to the Grantee or lake any other action It deeme necessary to protect Its Interests. A-18.1NSPECTlONS OF PROJECT BY STATE: The State shall have the right to Inspect the work being perfonned at any and aU reasonable lime. during the term of the Agreement ThIs right shall extend to any subcontracts, and the Grantee shaH Include provisions ensuring euch access in all Its contracts or sllbcontracts entel1!ld Into pursuant to Its Agreement with the Stete. A-17. PROHIBITION AGAINS'fOISPOSAL OF PROPERTY WITHOUT STATE PERMIsSION: The Grantee shall not sell, abandon,lease, transfer, exchange, mortgage, hypothecate, or encumber In any manner whatsoever all or any portion of any real or other property necessarily connected or used In conjunction wI1h the Project, orwl1h the Grantee's service atwater, without prior permission of the State. The Grantee shall not take any actfon. Including but not Umlted to actfons relating to user fees, charges, and assessments lhat could adversely affect the ablllly of the Grantee to meet Its obligations under this Agreement, without prior written permission of the State, The State may require that ths proceeds from tile dlsposftlon of any rea' or personal property be remitted to the Slats to be applied to the Grantee's Indebtedness under thIs Agreement A-IS.NO THIRD PARTY RIGHTS: The parties to this Agreement do not Intend to create rights in. or grant remedIes to, any third party as a benel/clary of this Agreement, or of any duly, covenant, obllgatlon or undertaking established hel1!lln. 10 Reviud 10127103