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(10) LIABILITY <br />(a) Except as otherwise provided in subparagraph (b) below, the RECIPIENT/ <br />SUBGRANTEE shall be solely responsible to parties with whom it shall <br />deal in carrying out the terms of this agreement, and shall save the <br />AGENCY/GRANTEE harmless against all claims of whatever nature by <br />third parties arising out of the performance of work under this agreement. <br />For purposes of this agreement, RECIPIENT/SUBGRANTEE agrees that <br />it is not an employee or agent of the AGENCY/GRANTEE, but is an <br />independent contractor. <br />(a) Any RECIPIENT/SUBGRANTEE who is a state agency or subdivision, <br />agrees to be fully responsible for its own negligent acts or omissions or <br />tortious acts. Nothing herein is intended to serve as a waiver of sovereign <br />immunity by any RECIPIENT/SUBGRANTEE to which sovereign <br />immunity applies. Nothing herein shall be construed as consent by a state <br />agency or subdivision of the State of North Carolina to be sued by third <br />parties in any matter arising out of any contract. <br />(11) DEFAULT: REMEDIES: TERMINATION <br />(a) If any of the following events occur ("Events of Default"), all obligations <br />on the part of the AGENCY/GRANTEE to make any further payment of <br />funds hereunder shall, if the AGENCY/ GRANTEE so elects, terminate, <br />and the AGENCY/GRANTEE may at its option exercise any of its <br />remedies set forth herein, but the AGENCY/GRANTEE may make any <br />payments or parts of payments after the happening of any Events of <br />Default without thereby waiving the right to exercise such remedies, and <br />without becoming liable to make any further payment: <br />If any warranty or representation made by the RECIPIENT/ <br />SUBGRANTEE in this Agreement or any previous Agreement <br />with the AGENCY/GRANTEE shall at any time be false or <br />misleading in any respect, or if the RECIPIENT/SUBGRANTEE <br />shall fail to keep, observe or perform any of the terms or covenants <br />contained in this Agreement or any previous agreement with the <br />AGENCY/GRANTEE and has not cured such in timely fashion, or <br />is unable or unwilling to meet its obligations thereunder; <br />Hurricane Floyd Property Acquisition & Relocation Agreement Page 7 HFPAR-4292-0067 Orange County <br />