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GENERAL TERMS AND CONDITIONS <br />CAPITAL <br />STATE FUNDS <br /> <br />that a conflict of interest exists, the CONTRACTOR may be disqualified from further consideration for <br />the award of a Grant. <br />In the event this contract is terminated as provided above, COMMERCE shall be entitled to pursue the <br />same remedies against the CONTRACTOR as it could pursue in the event of a breach of the contract <br />by the CONTRACTOR. The rights and remedies of COMMERCE provided for in this clause shall not <br />be exclusive and are in addition to any other rights and remedies provided by law. The existence of <br />facts upon which COMMERCE makes any determination under this clause shall be an issue and may <br />be reviewed as provided in the “Disputes” clause of this contract. <br />13. COPYRIGHT <br />Unless otherwise provided, all Materials produced under this Contract shall be considered "works for <br />hire" as defined by the U.S. Copyright Act and shall be owned by COMMERCE. COMMERCE shall be <br />considered the author of such Materials. In the event the Materials are not considered “works for hire” <br />under the U.S. Copyright laws, the Contractor hereby irrevocably assigns all right, title, and interest in <br />all Materials, including all intellectual property rights, moral rights, and rights of publicity to COMMERC E <br />effective from the moment of creation of such Materials. <br />“Materials” means all items in any format and includes, but is not limited to, data, reports, documents, <br />pamphlets, advertisements, books, magazines, surveys, studies, computer programs, films, tap es, <br />and/or sound reproductions. “Ownership” includes the right to copyright, patent, register and the ability <br />to transfer these rights. <br />For Materials that are delivered under the Contract, but that incorporate pre -existing materials not <br />produced under the Contract, the Contractor hereby grants to COMMERCE a nonexclusive, royalty- <br />free, irrevocable license (with rights to sublicense to others) in such Materials to translate, reproduce, <br />distribute, prepare derivative works, publicly perform, and publicly display. The Contractor warrants and <br />represents that the Contractor has all rights and permissions, including intellectual property rights, <br />moral rights and rights of publicity, necessary to grant such a license to COMMERCE. <br />The Contractor shall exert all reasonable effort to advise COMMERCE, at the time of delivery of <br />Materials furnished under this Contract, of all known or potential invasions of privacy contained therein <br />and of any portion of such document which was not produced in the performance of this Contract. The <br />Contractor shall provide COMMERCE with prompt written notice of each notice or claim of infringement <br />received by the Contractor with respect to any Materials delivered under this Contract. COMMERCE <br />shall have the right to modify or remove any res trictive markings placed upon the Materials by the <br />Contractor. <br />14. DISALLOWED COSTS <br />The Contractor is responsible for any audit exceptions or disallowed costs incurred by its own <br />organization or that of its Subcontractors. <br />15. DISPUTES <br />Except as otherwise provided in this Contract, when a dispute arises between the parties and it cannot <br />be resolved by direct negotiation, either party may request a dispute hearing with the Director of <br />COMMERCE, who may designate a neutral person to decide the dispute. <br />The request for a dispute hearing must: <br /> be in writing; <br /> state the disputed issues; <br /> state the relative positions of the parties; <br /> state the Contractor's name, address, and Contract number; and <br /> be mailed to the Director and the other party’s (respondent’s) Contract Representative within <br />three (3) working days after the parties agree that they cannot resolve the dispute. <br /> <br />The respondent shall send a written answer to the requestor’s statement to both the Director or the <br />Director’s designee and the requestor within five (5) working days. <br />DocuSign Envelope ID: 35C90669-7F5D-417A-9438-E028C1CB021ADocuSign Envelope ID: 05945C3E-1013-42B6-9B87-1328C8722592