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<br />the Project. The Contractor shall not be required to indemnify the State Government or any <br />such liability caused by the wrongful acts of State employees or agents. <br />Section 14. Use of Real Property. Equipment. and Supplies. The Contractor understands <br />and agrees that the State Government retains a State interest in any real property, equipment, <br />and supplies financed with State assistance (Project property) until, and to the extent, that the <br />State Government relinquishes its State interest in that Project property. With respect to any <br />Project property financed with State assistance under this Agreement, the Contractor agrees to <br />comply with the following provisions of this Agreement, except to the extent the Department <br />determines otherwise in writing: <br />a. Use of Proiect Property. The Contractor agrees to use Project property for <br />appropriate Project purposes (which may include joint development purposes that generate <br />program income, both during and after the award period and used to support public <br />transportation activities) for the duration of the useful life of that property, as required by the <br />Department. Should the Contractor unreasonably delay or fail to use Project property during the <br />useful life of that property, the Contractor agrees that it may be required to return tFre entire <br />amount of the State assistance expended on that property. The Contractor further agrees to <br />notify the Department immediately when any Project property is withdrawn from Project use or <br />when any Project property is used in a manner substantially different from the representations <br />the Contractor has made in ifs Application or in the Project Description for this Agreement for <br />the Project. <br />b. General. The Contractor agrees to comply with the property management <br />standards of 49 C.F.R. §§ 18.31 through 18.33, including any amendments thereto, and with <br />other applicable Federal and State regulations and directives. Any exception to the <br />requirements of 49 C.F.R. §§ 18.31 through 18.33 requires the express approval of the <br />Department in writing. The Contractor also consents to the Department's reimbursement <br />07-SC-056 <br />Orange County <br />Page 40 of 59 <br />