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<br />BAAQMD FY2007/2008 BFP Funding Agreement <br /> <br />Life, the Air District will allow Project Sponsor the amount of Total BFP Funds that represents <br />six years of operation. Project Sponsor may retain or receive payment for that portion of the <br />Total BFP Funds that is determined by first dividing the amount of the encumbered Total BFP <br />Funds A warded by the number of years of the Project Useful Life and then multiplying that <br />amount by the number of full years of operation completed prior to the breach. Project Sponsor <br />shall reimburse such funds owed the Air District within thirty (30) days of the effective date of <br />termination. The parties may agree to an alternative formula for reimbursement or payment, <br />which shall be in the Special Conditions of the Project Specific Information, Attachment A. <br /> <br />3) Indemnification: Project Sponsor shall indemnify and hold harmless the Air District, its <br />officers, employees, agents, representatives, and successors-in-interest against any and all <br />liability, demands, claims, costs, losses, damages, recoveries, settlements, and expenses <br />(including reasonable attorney fees) that the Air District, its officers, employees, agents, <br />representatives, and successors-in-interest may incur or be required to pay arising from the <br />death or injury of any person or persons, including employees of Project Sponsor; from <br />destruction of or damage to any property or properties, caused by or connected with the <br />performance of this Agreement and the operation of equipment or other property that is the <br />subject of this Agreement by Project Sponsor, its employees, subcontractors, or agents; or <br />arising out of an act or omission of Project Sponsor or its employees, subcontractors or agents <br />in the performance of this Agreement, except to the extent such claim, suit or action arises out <br />of the sole negligence or willful misconduct of the Air District. Project Sponsor's <br />indemnification and obligation to have applicable third parties indemnify the Air District will <br />survive expiration or termination of this Agreement. <br /> <br />4) Notices: Any notice which may be required under this Agreement shall be in writing, shall be <br />effective when received, and shall be given by personal delivery service or first class mail, to <br />the addressees set forth in Attachment A, or to such addressees which may be specified in <br />writing by the parties. Each party shall promptly inform the other of any change of address or <br />addressee for notice. <br /> <br />5) Contacts: The persons listed as Contacts in Attachment A shall be the liaisons between the Air <br />District and Project Sponsor for the day-to-day activities of the Project and for receipt of all <br />notices. All reports and correspondence are to be addressed to the specified Contacts. Each <br />party shall promptly inform the other of any change of address or addressee for Contact.. <br /> <br />6) Project Number: All correspondence shall reference the "Project Number" specified in <br />Attachment A. <br /> <br />7) Integration: This Agreement represents the final, complete, and exclusive statement of the <br />agreement between the parties related to Project Sponsor implementing the Project and <br />supersedes all prior and contemporaneous understandings and agreements of the parties. No <br />party has been induced to enter into this Agreement by, nor is any party relying upon, any <br />representation or warranty outside those expressly set forth herein. <br /> <br />8) Amendment: This Agreement may not be modified except in writing, signed by both parties <br />hereto. Any attempt at oral modification of this Agreement shall be void and of no effect. <br />Amendments to this Agreement shall be executed in writing by the signators to this Agreement. <br />Any change in project scope is an amendment. <br /> <br />BFP Project 07BFPl2 <br /> <br />Page 5 <br />