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GENERAL TERMS AND CONDITIONS INTERAGENCY GRANT AGREEMENT FEDERAL FUNDS 11.RECAPTURE In 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 remedles 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.In the alternative,COMMERCE may recapture such funds from payments due under this Grantee. 12.RECORDS MAINTENANCE The Grantee shall maintaln 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 indirect costs of any nature 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 cost,these records,including materials generated under the Grant,shall be subject at all reasonable times to Inspection,review or audit by COMMERCE,personnel duly authorized byCOMMERCE,the Office of the State Auditor,and federal and state officials so authorized by law, regulation or agreement. If any litigation,claim or audit is started before the expiration of the six (6)year period,the records shall be retained until all litigation,claims,or audit findlngs involving the records have been resolved. 13.SAVINGS In the event funding from state,federal,or other sources is withdrawn,reduced,or limited in any way after the effective date of this Grant and prior to normal completion,COMMERCE may suspend or terminate the Grant under the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 notice requirement.In lieu of termination,the Grant may be amended to reflect the new funding limitations and conditions. 14.SEVERABILITY The provisions of this Grant are intended to be severable.If any term or provislon is illegal or Invalid for any reason whatsoever,such illegality or invalidity shall not affect the validity of the remainder of the Grant. 16.SUBGRANTINGISUBCONTRACTING The Grantee may only subcontract work contemplated under this Grant if it obtains the prior written approval of COMMERCE. If 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)requlre 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 amend 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 Grantee shall appropriately monitor the activities of the Subgrantee to assure fiscal conditions of this grant in 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 clalms or damages arising from a Subgrantee's performance of the subcontract State of Washington Interagency Grant Agreement Department of Commerce Page 9 Contract Page 028