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<br />3. INDEMNIFICATION. <br /> <br />The BORROWER shall indemnify, save, and hold harmless the State, its employees and <br />agents, against any and all claims, damages, liability and court awards including costs, <br />expenses, and attorney fees incurred as a result of any act or omission by the <br />BORROWER, or its employees, agents, subcontractors, or assignees pursuant to the terms <br />of this contract, or as a result of the CWCB's interest in the PROJECT facilities and any <br />other property identified in Section 6 (Collateral) of the Project Summary. <br /> <br />4. NON-DISCRIMINATION. <br /> <br />The BORROWER agrees to comply with the letter and the spirit of all applicable state and <br />federal laws respecting discrimination and unfair employment practices. <br /> <br />5. CHOICE OF LAW. <br /> <br />The laws of the State of Colorado and rules and regulations issued pursuantthereto shall <br />be applied in the interpretation, execution, and enforcement of this contract. Any <br />provision of this contract, whether or not incorporated herein by reference, which <br />provides for arbitration by any extra-judicial body or person or which is otherwise in <br />conflict with said laws, rules, and regulatiqns shall be considered null and void. Nothing <br />contained in any provision incorporated herein by reference which purports to negate this <br />or any other special provision in whole or in part shall be valid or enforceable or available <br />in any action at law whether by way of complaint, defense, or otherwise. Any provision <br />rendered null and void by the operation of this"provision will not invalidate the remainder <br />of this contract to the extent that the contract is capable of execution. <br /> <br />At all times during the performance of this contract, the Borrower shall strictly adhere to <br />all applicable federal and State laws, rules, and regulations that have been or may <br />hereafter be established. <br /> <br />6. VENDOR OFFSET. CRS 24-30-202 (1) & CRS 24-30-202.4 <br /> <br />Pursuant to CRS 24-30-202.4 (as amended), the. State Controller may withhold debts <br />owed to State agencies under the vendor offset intercept system for: (a) unpaid child <br />support debt or child support arrearages; (b) unpaid balance of tax, accrued interest, or <br />other charges specified in Article 21, Title 39, CRS; (c) unpaid loans due to the Student <br />Loan Division of the Department of Higher Education; (d) owed amounts required to be <br />paid to the Unemployment Compensation Fund; and (e) other unpaid debts owing to the <br />State or any agency thereof, the amount of which is found to be owing as a result of final <br />agency determination or reduced to judgment as certified by the controller. <br /> <br />7. SOFTWARE PIRACY PROHIBITION Governor's Executive Order D 002 00 <br /> <br />No State or other public funds payable under this Contract shall b~ used for the <br />acquisition, operation, or maintenance of computer software in violation of United States <br />copyright laws or applicable licensing restrictions. The Borrower hereby certifies that, for <br />the term of this Contract and any extensions, the Borrower has in place appropriate <br />systems and controls to prevent such improper use of public funds. If the State <br />determines that the Borrower is in violation of this paragraph, the State may exercise any <br />remedy available at law or equity or under this Contract, including, without limitation, <br />immediate termination of the Contract and any remedy consistent with United States <br /> <br />Page 9 of 10 <br />