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decision, the S UB-RECIPIENT furnishes a written appeal to the WTSC Director. The SUB-RECIPIENT's <br />appeal shall be dec ided in writing by the Director or des ignee within 30 da ys of re ceipt o f th e appeal by the <br />Dire ctor. The decision shall be bind ing upo n the S UB-RECIPIENT and the SUB-RECIPIENT shal l abide by <br />the decision . <br />16 .2. Performance During Dis pute . Unl ess otherwise d irected by WTSC , the SUB-RECIPIENT shall <br />co ntinue performance under this Agreement while matters in dispute are being resolved . <br />17. GOVERNA.NCE <br />17.1. This Agreement is en te red into pursuant to and under the authority granted by the laws of the state of <br />Washington and any applicable federal la ws. The provi s ion s o f this Agreement shall be construed to confonn <br />to those laws . <br />17.2. In the eve nt of an inconsistency in the terms of this Agreement , or between its terms and any applicable <br />statute or rule, the inconsistency shall be resolved by giving precedence in the follow ing order: <br />17.2.1. Appl icable federal and state statutes and rules <br />17.2.2. Terms and Conditions of th is Agreement <br />17.2.3. Any Amendment exe cuted under this Agreement <br />17.2.4. Any SOW executed under this Agreement <br />17.2.5. Any other provis io ns of the Agreement, including mater ial s incorporated by reference <br />18. INCOME <br />Any income earned by the SUB -RECIPIENT from the conduct of the SOW (e.g., sale of publications, <br />registration fees , or service charges) must be accounted for, and that income must be appl ied to project <br />purposes or used to reduce project cost s. <br />19. INDEMNIFICATION <br />19.1. To the fullest extent permitted by law , the S UB-RECIPIENT shall in demnify and hold harm less the <br />WTSC , its officers , empl oyee s, and agents, and process and defend at its own expense any and all claims , <br />demands , su its at la w or equity , actions, penalties , losses, damages, or costs of whatsoever kind ("claims") <br />brought against WTSC arising out of or in connection with this Agreement and /or the SUB-RECIPIENT's <br />performance or failure to perform any aspect of the Agreement. This indemnity provision applies to all <br />claims against WTSC, its officers , empl oyees , and agents arising out of, in connection with , or incident to the <br />acts or omissions of the SUB-RECIPIENT, its officers, emplo yees , agents , contractors, and subcontractors. <br />Prov ided , however , that nothing herein shall require the SUB-RECIPIENT to indemnify and hold harmless <br />or defend the WTSC , its agents , employees , or officers to the extent that cla im s are caused by the negligent <br />acts or omissions of the WTSC, its officers, employees or agents; and provided further that if such claims <br />result from the concurrent negligence of (a) the SUB-RECIPIENT , its officers, employees , agents, <br />contractors, or subcontractors, and (b) the WTSC, its officers, employees , or agents, or involves those act io ns <br />covered by RCW 4 .24 .115 , the indemnity provisions prov ided herein shall be valid and enforceable only to <br />the extent of the negligence of the SUB-RECIPIENT, its officers, employees , agents , contractors , or <br />subcontractors.