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SECTION III <br />IT IS MUMMY UNDERSTOOD IND AGREED: <br />1. That should any portion of the project be financed with <br />Federal Funds or State Gas Tax Funds all applicable procedures <br />and policies relating to the use of such funds shall apply, notwith- <br />standing other provisions of this Agreement. <br />2. That obligation of STATE under termo of this Agreement <br />are subject to the allocation of funds by the California Yighuzy <br />Commission. <br />3. That, this Agreement may be modified at any t:ion by the <br />mutual consent of the parties hereto, as may b5come necessary for <br />r the best a.ccomplishmant; through CITY and S'I'!A3'!? cooperation of the <br />project. <br />4. That neither W TL nor any officer or employee thereof <br />shall_ be responsible for any damage or liability occurring by <br />reason of anything dome or omitted to be done by CITY under or in <br />connection with any work, authority or jurisdiction delegated to <br />CITY under this Agreement. It is also understood and agreed that, <br />pursuant to Government Code Section 895.4 CITY shall fully <br />indemnify and hold STATE harmless for any liability imposed for. <br />injury (as defined by Government Corte Section 810.8) occurring <br />by re= n of anything done or omitted to be done by CITY under or <br />in connection with any work, authority or jurisdiction delegated <br />to CITY 1in.d�er this Agreement . <br />5. That neither CITY nor any officer or employer thereof <br />is responsible for any damage or liability occurring by reason of <br />anything done or omitted to W done by STATE undo r or in <br />connection with any work, authority or jurisdiction not delegated <br />4— <br />