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SUBAWARD NO.001 <br /> 16.1 THE PARTIES ARE AWARE THAT THERE ARE CONSTITUTIONAL AND <br /> STATUTORY LIMITATIONS ON THE AUTHORITY OF EITHER OF 'I'IlE PARTIES TO ENTER <br /> INTO CERTAIN TERMS AND CONDITIONS OF THE AGREEMENT, INCLUDING BUT NOT <br /> LIMITED TO, THOSE TERMS AND CONDITIONS RELATING TO LIENS ON STATE PROPERTY; <br /> DISCLAIMERS AND LIMITATIONS OF WARRANTIES; DISCLAIMERS AND LIMITATIONS OF <br /> LIABILITY FOR DAMAGES; WAIVERS, DISCLAIMERS AND LIMITATIONS OF LEGAL RIGHTS, <br /> REMEDIES,REQUIREMENTS,AND PROCESSES;LIMITATIONS OF PERIODS TO BRING LEGAL <br /> ACTION; GRANTING CONTROL OF LITIGATION OR SETTLEMENT TO ANOTHER PARTY; <br /> [-,]ABILITY FOR ACTS OR OMISSIONS OF"THIRD PARTIES; PAYMENTOF ATTORNEYS' FEES; <br /> DISPUTE RESOLUTION; INDEMNITIES; AND CONFIDENTIALITY (COLLECTIVELY, THE <br /> "LIMITATIONS"). ANY TERMS AND CONDITIONS IN THIS AGREEMENT RELATED TO THE <br /> LIMITATIONS WILL NOT BE BINDING ON EITHER PARTY EXCEPT TO THE EXTENT <br /> AUTHORIZED BY TIRE LAWS AND CONSTITUTION OF THE STATE OF TEXAS. <br /> 16.2 To the extent permitted by the laws and Constitution of the State of Texas, SUB- <br /> RECIPIENT covenants and agrees to FULLY INDEMNIFY, HOLD HARMLESS AND <br /> DEFEND City,employees,officers,director and representatives, individually or collectively, fi•om <br /> and against any and all costs, claims, liens, damages, losses, expenses, fees, fines, penalties, <br /> proceedings,actions,demands, causes of action, liability and suits of any kind and nature, personal <br /> or bodily iniury,death and property damage, made upon City, caused by Sub-Recipient's willfully <br /> negligent activities under this Agreement, including any acts or omissions of SUB-RECIPIENT, <br /> any agent, officer, director, representative, employee, consultant or subcontractor and their <br /> respective officers, agents, employees, directors and representatives while exercising or <br /> performance the rights or duties under this Agreement. The indemnity provided for in this <br /> paragraph shall not apply to any liability resulting fi•om the negligence of City, its officers or <br /> employees. TO THE EXTENT PERMTITED BY THE LAWS AND CONSTITUTION OF THE <br /> STATE OF TEXAS, 1N THE EVENT SUB- RECIPIENT AND CITY ARE FOUND JOINTLY <br /> LIABLE BY A COURT OF COMPETENT JURISDICTION, LIABILITY SHALL BE <br /> APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE <br /> OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY <br /> AVAILABLE TO EITHER PARTY UNDER TEXAS LAW AND WITHOUT WAIVING ANY <br /> DEFENSES OF THE PARTIES UNDER TEXAS LAW. The provisions of this INDEMNIFICATION <br /> are solely for the benefit of the Parties hereto and not intended to create or grant any rights,contractual or <br /> otherwise, to any other person or entity. Each Party shall promptly advise the other in writing of any claim <br /> or demand made known to said Party related to or arising out of activities under this Agreement. <br /> 16.3 Sub-Recipient acknowledges that it is not an agent, servant or employee of City <br /> and that it is responsible for its own acts and deeds and for those of its agents, employees or <br /> volunteers during the performance of this Agreement. <br /> 16.4 With regard to insurance, City understands and acknowledges that Sub-Recipient <br /> is an agency of the State of Texas and has only such authority to obtain insurance ftom third <br /> parties as is granted to Sub-Recipient by state law or as may be reasonably implied by such <br /> law. Sub-Recipient shall have no obligation under this Agreement to obtain policies of insurance <br /> and shall have the right, in Sub-Recipient's sole discretion, to determine whether Sub-Recipient <br /> will maintain policies of insurance, operate programs of self-insurance, or utilize any other <br /> program of risk-protection in connection with Sub-Recipient's operations. <br /> Page 20 of 30 <br />