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3. The Sponsor agrees to pursue and enforce contract items, which are required by federal <br />and/or state regulations, laws and orders to insure satisfactory performance of contract <br />vendors. Such items include, but are not limited to, bid bonds, payment bonds, and <br />performance bonds. Pursuit and enforcement of contract items may require litigation and <br />other remedies of law. <br />4. The United States and the State of Texas shall not be responsible or liable for damage to <br />property or injury to persons, which may arise from, or be incidental to, compliance with <br />this grant agreement. <br />5. This Agreement is executed for the sole benefit of the contracting parties and is not <br />intended or executed for the direct or incidental benefit of any third party. Furthermore, <br />the State shall not be a party to any other contract or commitment, which the Sponsor may <br />enter into or assume, or have entered into or have assumed, in regard to the above project. <br />6. If the Sponsor fails to comply with the conditions of the grant, the State may, by written <br />notice to the Sponsor, suspend the grant in whole or in part. The notice of suspension shall <br />contain the following: <br />a. The reasons for the suspension and the corrective action necessary to lift the <br />suspension; <br />b. A date by which the corrective action must be taken; <br />c. Notification that consideration will be given to terminating the grant after the <br />corrective action date. <br />In the case of suspension or termination, the Sponsor may request the State to reconsider <br />the suspension or termination. Such request for reconsideration shall be made within 45 <br />days after receipt of the notice of suspension or termination. <br />7. This Agreement is subject to the applicable provisions of Title 49 U.S.C., the V.T.C.A. <br />Transportation Code, Title 3, Chapters 21- 22, et seq., (Vernon and Vernon Supp.), and the <br />Airport Zoning Act, Tex. Loc. Govt. Code Ann. §§241.001 et seq. (Vernon and Vernon <br />Supp.). Failure to comply with the terms of this Agreement or with the rules and statutes <br />shall be considered a breach of this contract and will allow the State to pursue the remedies <br />for breach as stated below. <br />a. Of primary importance to the State is compliance with the terms and conditions of <br />this Agreement. If, however, after all reasonable attempts to require compliance <br />have failed, the State finds that Sponsor is unwilling and/or unable to comply with <br />any of the terms and conditions of this Agreement, the State may pursue any of the <br />following remedies: (1) require a refund of any money expended pursuant to the <br />Agreement, (2) deny Sponsor's future requests for aid, (3) request the Attorney <br />10 of 35 <br />