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<br />Page 27 of 44 <br /> <br />that the Subrecipient has all rights and permissions, including intellectual property rights, moral rights and <br />rights of publicity, necessary to grant such a license to COMMERCE. <br />The Subrecipient shall exert all reasonable effort to advise COMMERCE, at the time of delivery of Materials <br />furnished under this Contract, of all known or potential invasions of privacy contained therein and of any <br />portion of such document which was not produced in the performance of this Contract. The Subrecipient <br />shall provide COMMERCE with prompt written notice of each notice or claim of infringement received by <br />the Subrecipient with respect to any Materials delivered under this Contract. COMMERCE shall have the <br />right to modify or remove any restrictive markings placed upon the Materials by the Subrecipient. <br /> <br />17. Disallowed Costs <br />The Subrecipient is responsible for any audit exceptions or disallowed costs incurred by its own <br />organization or that of its Subcontractors. <br /> <br />18. Disputes <br />Except as otherwise provided in this Contract, when a dispute arises between the parties and it cannot be <br />resolved by direct negotiation, either party may request a dispute hearing with the Director of COMMERCE, <br />who may designate a neutral person to decide the dispute. <br />a. The request for a dispute hearing must: <br />b. be in writing; <br />c. state the disputed issues; <br />d. state the relative positions of the parties; <br />e. state the Subrecipient's name, address, and Contract number; and <br />f. be mailed to the Director and the other party’s (respondent’s) Contract Representative within three <br />(3) working days after the parties agree that they cannot resolve the dispute. <br />i. The respondent shall send a written answer to the requestor’s statement to both the <br />Director or the Director’s designee and the requestor within five (5) working days. <br />ii. The Director or designee shall review the written statements and reply in writing to both <br />parties within ten (10) working days. The Director or designee may extend this period if <br />necessary by notifying the parties. <br />iii. The decision shall not be admissible in any succeeding judicial or quasi-judicial proceeding. <br />iv. The parties agree that this dispute process shall precede any action in a judicial or quasi- <br />judicial tribunal. <br />v. Nothing in this Contract shall be construed to limit the parties’ choice of a mutually <br />acceptable alternate dispute resolution (ADR) method in addition to the dispute hearing <br />procedure outlined above. <br /> <br />19. Duplicate Payment <br />The Subrecipient certifies that work to be performed under this contract does not duplicate any work to be <br />charged against any other contract, subcontract, or other source. <br /> <br />20. Governing Law and Venue <br />This Contract shall be construed and interpreted in accordance with the laws of the state of Washington, <br />and the venue of any action brought hereunder shall be in the Superior Court for Thurston County. <br />