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GENERAL TERMS AND GONDITIONS INTERAGENCY GRANT AGREEMENT FEDERAL FUNDS 11. RECAPTURE ln the event that the Grantee fails to perform this Grant in accordance with state laws, federal laws, and/or the provisions of this Grant, COMMERCE reserves the right to recapture funds in an amount to compensate COMMERCE for the noncompliance in addition to any other remedies available at law or in equity. Repayment by the Grantee of funds under this recapture provision shall occur within the time period specified by COMMERCE. ln the alternative, COMMERCE may recapture such funds from payments due under this Grantee. 1 2. RE8SB89-![A!NIENAXcE The Grantee shall maintain books, records, documents, data and other evidence relating to this Grant and performance of the services described herein, including but not limited to accounting procedures and practices that sufficiently and properly reflect all direct and indirec{ costs of any nalure expended in the performance of this Grantee. The Grantee shall retain such records for a period of six (6) years following the date of final payment. At no additional cosl, these records, including materials generated under the Grant, shall be subject at all reasonable times to inspeclion, review or audit by COMMERCE, personnel duly authorized by COMMERCE, the Office of the State Auditor, and federal and state officiats so authorized by law, regulation or agreement. lf any litigation, claim or audit is started before ihe expiration of the six (6) year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 13. SAVTNGS ln the event funding from state, federal, or other sources is withdrawn, reduced, or limited in any way after the effective date of this Grant and prior to normal completion, COMMERCE may suspend or terminate the Grant under the "Termination for Convenience" clause, without the ten calendar day nolice requirement, ln lieu of termination, the Grant may be amended to reflect the new funding limitations and conditions. 14.SEVEBAB|L|TY The provisions of this Grant are intended to be severable. lf any term or provision is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the Grant, I 5. SUBG RANT| NG,SU BCONTRA9JTIIG The Grantee may only subcontract work contemplated under this Grant if it obtains the prior written approval of COMMERCE. lf COMMERCE approves subcontracting, the Grantee shall maintain written procedures related to subcontracting, as well as copies of all subcontracts and records related to subcontracts. For cause, COMMERCE in writing may: (a) require the Grantee to amend its subcontracting procedures as they relate to this Grant; (b) prohibit the Grantee from subcontracting with a particular person or entity; or (c) require the Grantee to rescind or arnend a subcontract. Every subcontract shall bind the Subgrantee to follow all applicable terms of this Grant. The Grantee is responsible to COMMERCE if the Subgrantee fails to comply with any applicable term or condition of this Grant, The Granlee shall appropriately monitor lhe activities of the Subgrantee to assure liscal conditions of this grant. ln no event shall the existence of a subcontract operate to release or reduce the liability of the Grantee to COMMERCE for any breach in the performance of the Grantee's duties. Every subcontract shall include a term that COMMERCE and the State of Washington are not liable for claims or damages arising from a Subgrantee's performance of the subcontract. Stale of Washington Department of Commerce lnteragency Grant Agreement Page I Contract Page 028