Patrol Vessel Replacement Grant MLE 123-343

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to participate in the investigation, defense, and settlement of the Third-Party Claim with counsel of its own choosing are conditions precedent to the Other Party's contribution obligation under this Secfion 12 - Ownership of Work Producf with respect to the Third-Party Claim. 14.2 With respect to a Third Party Claim for which MLE is jointly liable with Subrecipient (or would be ifjoined in the Third Party Claim ), MLE shall contribute to the amount of expenses (including attorneys'fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Subrecipient in such proporlion as is appropriate to reflect the relative fault of MLE on the one hand and of Subrecipient on the other hand in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of MLE on the one hand and of Subrecipient on the other hand shall be determined by reference to, among other things, the Parties' reiative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines, or settlement amounts. MLE's contribution amount in any instance is capped to the same extent it would have been capped under Washington law if the State had sole liability in the proceeding. 14.3 With respect to a Third Party Claim for which Subrecipient is jointly liable with MLE (or would be if joined in the Third Party Claim), Subrecipient shall contribute to the amount of expenses (including attorneys'fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by MLE in such proportion as is appropriate to reflect the relative fault of Subrecipient on the one hand and of MLE on the other hand in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of Subrecipient on the one hand and of MLE on the other hand shall be determined by reference to, among other things, the Parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines, or settlement amounts. Subrecipient's contribution amount in any instance is capped to the same extent it would have been capped under Washington law if it had sole liability in the proceeding. SEGTION 15: SUBREcIPIENT DEFAULT Subrecipient will be in default under this Agreement upon the occurrence of any of the following events: 15.1 Subrecipient fails to perform, observe, or discharge any of its covenants, agreements, or obligations under this Agreement. 15.2 Any representation, warranty or statement made by Subrecipient in this Agreement or in any documents or reports relied upon by MLE to measure the delivery of services, the expenditure of funds or the performance by Subrecipient is untrue in any material respect when made. 15.3 Subrecipient (a) applies for or consents to the appointment of, or taking of possession by, a receiver, custodian, trustee, or liquidator of itself or all of its property, (b) admits in writing its inability, or is generally unable, to pay its debts as they become due, (c) makes a general asiignment for the benefit of its creditors, (d) is adjudicated a bankrupt or insolvent, (e) commences i voluntary case under the Federal Bankruptcy Code (as now or hereafter in effect), (f) files a petition seeking MLE 123 -3 43 Subrecipient Agreement - Boating Program (Patrol Vessel Replacement Grant)page 14 of 33