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Docusign Envelope ID: 1OBC9C18-B2D4-4ECE-8COA-D7C9B69F3F42 <br />Agreement performed by subgrantees/subcontractors and the portion of grant funds expended for <br />work performed by subgrantees/subcontractors, including, but not necessarily limited to, minority - <br />owned, woman -owned, and veteran -owned business subgrantees/ subcontractors. <br />F. The GRANTEE shall maintain written procedures related to subgrantees/subcontractors as well <br />as copies of all subgrants and subcontracts and associated records. For cause, COMMERCE in <br />writing may: (a) require the GRANTEE to amend its procedures for subgrantees/subcontractors <br />as they relate to this Grant Agreement; (b) prohibit the GRANTEE from hiring <br />subgrantees/subcontractors with a particular person or entity; or (c) require the GRANTEE to <br />rescind or amend a subgrant or subcontract. <br />G. The GRANTEE is responsible to COMMERCE if the subgrantee/subcontractor fails to comply <br />with any applicable term or condition of this Grant Agreement. The GRANTEE shall appropriately <br />monitor the activities of the subgrantee/subcontractor to assure fiscal conditions of this Grant <br />Agreement. In no event shall the existence of a subgrant or subcontract operate to release or <br />reduce the liability of the GRANTEE to COMMERCE for any breach in the performance of the <br />GRANTEE's duties. <br />H. Every subgrantee/subcontractor shall include a term that COMMERCE and the State are not <br />liable for claims or damages arising from a subgrantee's/subcontractor's performance of the <br />subgrant or subcontract. <br />42. SURVIVAL <br />The terms, conditions, and warranties contained in this Grant Agreement that by their sense and <br />context are intended to survive the completion of the performance, cancellation, or termination of this <br />Grant Agreement shall so survive including, without limitation, any Recapture provision in this Grant <br />Agreement. <br />43. TAXES <br />All payments accrued on account of payroll taxes, unemployment contributions, the GRANTEE's <br />income or gross receipts, and/or any other taxes, insurance, or expenses for the GRANTEE or its <br />staff shall be the sole responsibility of the GRANTEE. <br />44. TERMINATION FOR CAUSE <br />In the event COMMERCE determines the GRANTEE has failed to comply with the conditions of this <br />Grant Agreement in a timely manner, COMMERCE has the right to suspend or terminate this Grant <br />Agreement. Before suspending or terminating the Grant Agreement, COMMERCE shall notify the <br />GRANTEE in writing of the need to take corrective action. If corrective action is not taken within 30 <br />calendar days, the Grant Agreement may be 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 Agreement and the <br />replacement or cover Grant Agreement and all administrative costs directly related to the replacement <br />Grant Agreement (e.g., cost of the competitive bidding, mailing, advertising and staff time). <br />COMMERCE reserves the right to suspend all or part of the Grant Agreement, withhold further <br />payments, or prohibit the GRANTEE from incurring additional obligations of funds during investigation <br />of the alleged compliance breach and pending corrective action by the GRANTEE or a decision by <br />COMMERCE to terminate the Grant Agreement. A termination shall be deemed a "Termination for <br />Convenience" under General Terms and Conditions Section 45 (Termination for Convenience) if it is <br />26 <br />