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3. Failure of the Applicant to comply with the terms of this agreement shall not be cause for the suspension of all <br />obligations of the State hereunder if in the judgment of the State such failure was due to no fault of the Applicant. In <br />such case, any amount required to settle at minimum cost any irrevocable obligations properly incurred shall be eligible <br />for reimbursement under this agreement. <br />4. Because the benefit to be derived by the State, from the full compliance by the Applicant with the terms of this agree. <br />ment, is the preservation, protection and net increase in the quantity and quality of parks, public recreation facilities <br />and/or historical resources available to the people of the State of California and because such benefit exceeds to an <br />immeasurable and unascertainable extent the amount of money furnished by the State by way of grant moneys under <br />the provisions of this agreement, the Applicant agrees that payment by the Applicant to the State of an amount equal <br />to the amount of the grant moneys disbursed under this agreement by the State would be inadequate compensation to <br />the State for any breach by the Applicant of this agreement. The applicant further agrees therefore, that the appro- <br />priate remedy in the event of a breach by the Applicant of this agreement shall be the specific performance of this <br />agreement, unless otherwise agreed to by the State. <br />5. Applicant and State agree that if the Project includes development final payment may not be made until the Project <br />conforms substantially with this agreement and is a useable facility. <br />F. Hold Harmless <br />1. Applicant agrees to waive all claims and recourse against the State including the right to contribution for loss or damage <br />to persons or property arising from, growing out of or in any way connected with or incident to this agreement except <br />claims arising from the concurrent or sole negligence of State, its officers, agents, and employees, <br />2. Applicant agrees to indemnify, hold harmless and defend State, its officers, agents and employees against any and all <br />claims demands, damages, costs, expenses or liability costs arising out of the acquisition, development, construction, <br />operation or maintenance of the property described as the Project which claims, demands or causes of action arise under <br />Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of <br />State, its officers, agents, or employees. <br />3. Applicant agrees that in the event State is named as codefendant under the provisions of Government Code Section 895 <br />at seq., the Applicant shall notify State of such fact and shall represent State in the legal action unless State undertakes <br />to represent itself as codefendant in such legal action in which event State shall bear its own litigation costs, expenses, <br />and attorney's fees. <br />4. Applicant and State agrees that in the event of judgment entered against the State and Applicant because of the con- <br />current negligence of the State and Applicant, their officers, agents, or employees, an apportionment of liability to pay <br />such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. <br />5. Applicant agrees to indemnify, hold harmless and defend the State, its officers, agents and employees against any and <br />all claims, demands, costs, expenses or liability costs arising out of legal actions pursuant to items to which the Ap- <br />plicant has certified. Applicant acknowledges that it is solely responsible for compliance with items to which it has <br />- <br />certified. <br />G. Financial Records <br />1. Applicant agrees to maintain satisfactory financial accounts, documents and records for the Project and to make them <br />available to the State for auditing at reasonable times. Applicant also agrees to retain such financial accounts, documents <br />and recordsfor three years following project termination or completion. <br />Applicant and State agree that during regular office hours each of the Parties hereto and their duly authorized repre. <br />sentatives shall have the right to inspect and make copies of any books, records or reports of the other party pertaining <br />to this agreement or matters related thereto. Applicant agrees to maintain and make available for inspection by the <br />State accurate records of all of its costs, disbursements and receipts with respect to its activitiesunderthis agreement. <br />2. Applicant agrees to use any generally accepted accounting system. <br />H. Use of Facilities <br />Applicant agrees that the property acquired or developed with grant moneys under this agreement shall be used by the <br />Applicant only for the purpose for which the State grant moneys were requested and no other use of the area shall be <br />permitted except by specific act of the Legislature. <br />2. The Applicant agrees to maintain and operate the property acquired or developed for a period commensurate with the <br />type of project and the proportion of State Grant funds and local funds allocated to the capital costs of the project. <br />Nondiscrimination <br />1. The Applicant shall not discriminate against any person on the basis of sex, race, color, national origin, age, religion, <br />ancestry, or physical handicap in the use of any property or facility acquired or developed pursuant to this agreement. <br />2. The Applicant shall not discriminate against any person on the basis of residence except to the extent that reasonable <br />differences in admission or other fees may be maintained on the basis of residence and pursuant to law. <br />DPR 835 (10/89) <br />