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t. it shall take all steps, including litigation if necessary, to recover funds spent <br />fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in <br />any other manner in any project upon which Federal and State funds have been <br />expended. For the purposes of this grant agreement, the term "funds" means <br />funds, however used or disbursed by the Sponsor or Agent that were originally <br />paid pursuant to this or any other grant agreement. It shall obtain the approval of <br />the State as to any determination of the amount of such funds. It shall return the <br />recovered share, including funds recovered by settlement, order or judgment, to <br />the State. It shall furnish to the State, upon request, all documents and records <br />pertaining to the determination of the amount of the funds or to any settlement, <br />litigation, negotiation, or other efforts taken to recover such funds. All <br />settlements or other final positions of the Sponsor, in court or otherwise, <br />involving the recovery of such funds shall be approved in advance by the State. <br />2. The Sponsor certifies to the State that it will have acquired clear title in fee simple to all <br />property upon which construction work is to be performed, or have acquired a leasehold <br />on such property for a term of not less than 20 years, prior to the advertisement for bids <br />for such construction or procurement of facilities that are part of the above project, and <br />within the time frame of the project, a sufficient interest (easement or otherwise) in any <br />other property which may be affected by the project. <br />3. The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the <br />State's agents, employees or contractors from all claims and liability due to activities of <br />the Sponsor, the Sponsor's agents or employees performed under this agreement. The <br />Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the <br />State's agents, employees or contractors from any and all expenses, including attorney <br />fees which might be incurred by the State in litigation or otherwise resisting the claim or <br />liabilities which might be imposed on the State as the result of such activities by the <br />Sponsor, the Sponsor's agents or employees. <br />4. The Sponsor's acceptance of this Offer and ratification and adoption of the Agreement <br />incorporated shall be evidenced by execution of this instrument by the Sponsor, and the <br />Agreement shall comprise a contract, constituting the obligations and rights of the State <br />of Texas and the Sponsor with respect to the accomplishment of the project and the <br />operation and maintenance of the airport. Such Agreement shall become effective upon <br />execution of this instrument and shall remain in full force and effect for a period of at <br />least 20 years. <br />5. Sponsor agrees to provide a suitable location for pre-bid and for pre-construction <br />conferences, and for the submission and opening of construction bids. <br />6. The Sponsor and not the State shall, for all purposes, be the "Sponsor" of the project <br />identified above as defined in Title 49 U.S.C. Sponsor agrees to assume responsibility <br />for operation of the facility in compliance with all applicable state and federal <br />requirements including any statutes, rules, regulations, assurances, procedures or any <br />other directives before, during and after the completion of this project. <br />Page7of35 <br />- 156 <br />