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Name of Recipient Agreement No.: XX-XXX-550 Project No.: C-06-XXXX-XXX The Recipient will procure and maintain or cause to be maintained insurance on the System with responsible insurers, or as part of a reasonable system of self-insurance, in such amounts and against such risks(including damage to or destruction of the System) as are usually covered in connection with systems similar to the System. Such insurance may be maintained by the maintenance of a self- insurance plan so long as any such plan provides for(i) the establishment by the Recipient of a separate segregated self-insurance fund funded in an amount determined (initially and on at least an annual basis) by an independent insurance consultant experienced in the field of risk management employing accepted actuarial techniques and (ii)the establishment and maintenance of a claims processing and risk management program. In the event of any damage to or destruction of the System caused,by the perils covered by such insurance, the net proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the System. The Recipient shall begin such reconstruction, repair or replacement as expeditiously as possible, and shall pay out of such net proceeds all costs and expenses in connection with such reconstruction, repair or replacementso that'the same shall be completed and the System shall be free and clear of all claims and liens. If such net proceeds are insufficient to enable the Recipient to pay all remaining unpaid principal portions of the Installrrient Payments, the Recipient shall provide additional funds to restore or replace the damaged portions of the System. Recipient agrees that for any policy of general liabilityinsurance concerning the construction of the Project, it will cause, and will require its contractors and subcontractors to cause, a certificate of insurance to be issued showing the State Water Board,.,its officers, agents, employees, and servants as additional insured; and shall provide the Division with a copy of all such'certificates prior to the commencement of construction of the Project. 5.19 Permits, Subcontracting, and Remedies. \, ., The Recipient shall comply,in-all material respects applicable federal, state and local laws, rules and regulations. Recipient'shall procure,all permits,licenses and other authorizations necessary to accomplish the work contemplated in this Agreement, pay all charges and fees, and give all notices necessary and incidental fo the.due and lawful prosecution of the work. Signed copies of any such permits or licenses shall be submitted to the Division before construction begins. 5.20 Public Fundire. � `�" This Project is publicly funded. Any service'provider or contractor with which the Recipient contracts must not have ady.,role or relationship.with the Recipient that, in effect, substantially limits the Recipient's ability to exercise its rights, including cancellation rights, under the contract, based on all the facts and circumstances. `N 5.21 Recipient's Resporisibility for Work. The Recipient shall be responsible for all work and for persons or entities engaged in work performed pursuant to this Agreement, including, but not limited to, contractors, subcontractors, suppliers, and providers of services. The Recipient shall be responsible for any and all disputes arising out of its contracts for work on the Project. The State Water Board will not mediate disputes between the Recipient and any other entity concerning responsibility for performance of work. 5.22 Related Litigation. Under no circumstances may a Recipient use funds from any disbursement under this Agreement to pay costs associated with any litigation the Recipient pursues against the State Water Board or any Regional Water Quality Control Board. Regardless of the outcome of any such litigation, and notwithstanding any 26