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Section 18. Hold Harmless Except as prohibited or otherwise limited by State law or except to the extent that FTA or the Department determines otherwise in writing, upon request by the Federal or State Government, the Contractor agrees to indemnify, save, and hold harmless the Federal and State Government and its officers, agents, and employees acting within the scope of their official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the Contractor of proprietary rights, copyrights, or right of privacy, arising out of the publication, translation, reproduction, delivery, use, or disposition of any data furnished under the Project. The Contractor shall not be required to indemnify the Federal or State Government for any such liability caused by the wrongful acts of Federal or State employees or agents. Section 19. Use of Real Property, Eauipment, and Supplie The Contractor understands and agrees that the Federal /State Government retains a Federal /State interest in any real property, equipment, and supplies financed with Federal /State assistance (Project property) until, and to the extent, that the Federal /State Government relinquishes its Federal /State interest in that Project property. With respect to any Project property financed with Federal /State assistance under this Agreement, the Contractor agrees to comply with the following provisions of this Agreement, except to the extent FTA or the Department determines otherwise in writing: a. Use of Project Propert v . The Contractor agrees to maintain continuing control of the use of Project property to the extent satisfactory to the Department. The Contractor agrees to use Project property for appropriate Project purposes (which may include joint development purposes that generate program Income, both during and after the award period and used to support public transportation activities) for the duration of the useful life of that property, as required by FTA or the Department. Should the Contractor unreasonably delay or fail to use Project property during the useful life of that property, the Contractor agrees that it may be required to return the entire amount of the Federal and State assistance expended on that property. The Contractor further agrees to notify the Department immediately when any Project property is withdrawn from Project use or when any Project property is used in a manner substantially different from the representations the Contractor has made in its Application or in the Project Description for this Agreement for the Project. In turn, the Department shall be responsible for notifying FTA. b. General The Contractor agrees to comply with the property management standards of 49 C.F.R. §§ 19.30 through 19.37, including any amendments thereto, and with other applicable Federal and State regulations and directives. Any exception to the requirements of 49 C.F.R. §§ 19.30 through 19.37 requires the express approval of the Federal Government in writing. The Contractor also consents to the Department's reimbursement requirements for premature dispositions of certain Project equipment, as set forth in Subsection 19 of this Agreement. C. M aintenance & Inspection of Vehicles,... Facilities and Other Project E The Contractor shall maintain all project equipment at a high level of cleanliness, safety, and mechanical soundness . in accordance with the minimum maintenance requirements recommended by the manufacturer. The Contractor shall register all vehicle maintenance activities in a Comprehensive Maintenance Record or an electronic version of same. The Department shall conduct frequent inspections to confirm proper maintenance pursuant to this Section of this Agreement and the State Management Plan. The Contractor shall collect and submit to the Department at such time and in such manner as it may require information for the purpose of the Department's Public Transportation Management System (PTMS). Updated 3/01/11 Page 23 of 41 Attachment number 2 F_8 Page 157