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Section 27. Disputes, Breaches. Defaults, or Other Litigation. The Contractor agrees that <br />the Department have a vested interest in the settlement of any dispute, breach, default, or <br />litigation involving the Project. Accordingly: <br />a. Notification to the Department. The Contractor agrees to notify the <br />Department in writing of any current or prospective major dispute, breach, default, or litigation <br />that may affect the State Government's interests in the Project or the State Government's <br />administration or enforcement of Federal/State laws or regulations. If the Contractor seeks to <br />name the State Government as a party to litigation for any reason, in any forum, the Contractor <br />agrees to inform the Department in writing before doing so. <br />b. State interest in Recovery. The State Government retains the right to a <br />proportionate share, based on the percentage of the State share awarded for the Project, of <br />proceeds derived from any third party recovery, except that the Contractor may return any <br />liquidated damages recovered to its Project Account in lieu of returning the State share to the <br />Department. <br />c. Enforcement. The Contractor agrees to pursue all legal rights provided within <br />any third party contract. <br />d. Department Concurrence. The Department reserves the right to concur in <br />any compromise or settlement of any claim involving the Project and the Contractor. <br />e. Alternative Dispute Resolution. The Department encourages the Contractor <br />to use alternative dispute resolution procedures, as may be appropriate. <br />Section 28. Amendments to the Proiect. The Contractor agrees that a change in Project <br />circumstances causing an inconsistency with the terms of this Agreement for the Project will <br />require an amendment to this Agreement for the Project signed by the origins! signatories or <br />their authorized designees or successors. The Contractor agrees that a change in the <br />fundamental information submitted in its Application will also require an Amendment to ifs <br />Application or this Agreement for the Project. <br />07-SC-056 Page 54 of 59 <br />Orange County <br />