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38. SEVERABILITY <br />The provisions of this Grant are intended to be severable. If any term or provision is i"egal or invalid <br />for any reason whatsoever, such i"egality or invalidity shall not affect the validity of the remainder of <br />the Grant. <br />39. SUBGRANTING/SUBCONTRACTING <br />The Grantee may only subcontract work contemplated under this Grant if it obtains the prior written <br />approval of COMMERCE . <br />If COMMERCE approves subcontracting, the Grantee shall maintain written procedures related to <br />subcontracting, as we" as copies of a" subcontracts and records related to subcontracts. For cause , <br />COMMERCE in writing may: (a) require the Grantee to amend its subcontracting procedures as they <br />relate to this Grant; (b) prohibit the Grantee from subcontracting with a particular person or entity; or <br />(c) require the Grantee to rescind or amend a subcontract. <br />Every subcontract shall bind the Subgrantee to follow a" applicable terms of this Grant. If any <br />Subgrantee fails to comply with any applicable term or condition of this Grant, including the Scope of <br />Work and Budget in Attachment A, the Grantee shall be responsible for completing the work itself, or <br />contracting with another Subgrantee as approved by COMMERCE. The Grantee shall appropriately <br />monitor the activities of the Subgrantee to assure fiscal conditions of this Grant. In no event shall the <br />existence of a subcontract operate to release or reduce the liability of the Grantee to COMMERCE for <br />any breach in the performance of the Grantee's duties . <br />Every subcontract shall include a term that COMMERCE and the State of Washington are not liable <br />for claims or damages arising from a Subgrantee 's performance of the subcontract. <br />40. SURVIVAL <br />The terms, conditions , and warranties contained in this Grant that by their sense and context are <br />intended to survive the completion of the performance, cancellation or termination of this Grant shall <br />so survive. <br />41. TAXES <br />All payments accrued on account of payroll taxes , unemployment contributions, the Grantee's income <br />or gross receipts, any other taxes, insurance or expenses for the Grantee or its staff shall be the sole <br />responsibility of the Grantee. <br />42. TERMINATION FOR CAUSE <br />In the event COMMERCE determines the Grantee has failed to comply with the conditions of this <br />Grant in a timely manner, COMMERCE has the right to suspend or terminate this Grant. Before <br />suspending or terminating the Grant, COMMERCE shall notify the Grantee in writing of the need to <br />take corrective action . If corrective action is not taken within 30 calendar days, the Grant may be <br />terminated or suspended. <br />In the event of termination or suspension, the Grantee shall be liable for damages as authorized by <br />law including , but not limited to, any cost difference between the original Grant and the replacement <br />or cover Grant and a" administrative costs directly related to the replacement Grant, e.g., cost of the <br />competitive bidding, mailing, advertising and staff time . <br />COMMERCE reserves the right to suspend a" or part of the Grant, withhold further payments, or <br />prohibit the Grantee from incurring additional obligations of funds during investigation of the alleged <br />compliance breach and pending corrective action by the GRANTEE or a decision by COMMERCE to <br />terminate the Grant. A termination shall be deemed a "Termination for Convenience" if it is <br />determined that the Grantee: (1) was not in default; or (2) failure to perform was outside of his or her <br />control, fault or negligence. <br />The rights and remedies of COMMERCE provided in this Grant are not exclusive and are, in addition <br />to any other rights and remedies, provided by law. <br />43. TERMINATION FOR CONVENIENCE <br />Except as otherwise provided in this Grant, COMMERCE may, by ten (10) business days written <br />notice, beginning on the second day after the mailing, terminate this Grant, in whole or in part. If this <br />Grant is so terminated, COMMERCE shall be liable only for payment required under the terms of this <br />Grant for services rendered or goods delivered prior to the effective date of termination. <br />17