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<br />________________________________________________________________________________________________________ <br /> Page 9 of 14 <br /> <br />Category 2: Sensitive information <br />Category 2: For official use only / disclosure permissible by law. <br />15. SUBCONTRACTING <br />The Contractor may only subcontract work contemplated under this Contract if it obtains the prior <br />written approval of COMMERCE. <br />If COMMERCE approves subcontracting, the Contractor shall maintain written procedures related to <br />subcontracting, as well as copies of all subcontracts and rec ords related to subcontracts. For cause, <br />COMMERCE in writing may: (a) require the Contractor to amend its subcontracting procedures as <br />they relate to this Contract; (b) prohibit the Contractor from subcontracting with a particular person or <br />entity; or (c) require the Contractor to rescind or amend a subcontract. <br />Every subcontract shall bind the Subcontractor to follow all applicable terms of this Contract. The <br />Contractor is responsible to COMMERCE if the Subcontractor fails to comply with any applicable term <br />or condition of this Contract. The Contractor shall appropriately monitor the activities of the <br />Subcontractor to assure fiscal conditions of this Contract. In no event shall the existence of a <br />subcontract operate to release or reduce the liability of the Contractor to COMMERCE for any breach <br />in the performance of the Contractor’s duties. <br />Every subcontract shall include a term that COMMERCE and the State of Washington are not liable <br />for claims or damages arising from a Subcontractor’s performance of the subcontract. <br />16. SURVIVAL <br />The terms, conditions, and warranties contained in this Contract that by their sense and context are <br />intended to survive the completion of the performance, cancellation or ter mination of this Contract <br />shall so survive. <br />17. TERMINATION FOR CAUSE <br />In the event COMMERCE determines the Contractor has failed to comply with the conditions of this <br />contract in a timely manner, COMMERCE has the right to suspend or terminate this contract. Before <br />suspending or terminating the contract, COMMERCE shall notify the Contractor in writing of the need <br />to take corrective action. If corrective action is not taken within 30 calendar days, the contract may be <br />terminated or suspended. <br />In the event of termination or suspension, the Contractor shall be liable for damages as authorized <br />by law including, but not limited to, any cost difference between the original contract and the <br />replacement or cover contract and all administrative costs directly related to the replacement contract, <br />e.g., cost of the competitive bidding, mailing, advertising and staff time. <br />COMMERCE reserves the right to suspend all or part of the contract, withhold further payments, or <br />prohibit the Contractor from incurring additional obligations of funds during investigation of the alleged <br />compliance breach and pending corrective action by the Contractor or a decision by COMMERCE to <br />terminate the contract. A termination shall be deemed a “Termination for Convenience” if it is <br />determined that the Contractor: (1) was not in default; or (2) failure to perform was outside of his or <br />her control, fault or negligence. <br />The rights and remedies of COMMERCE provided in this contract are not exclusive and are, in <br />addition to any other rights and remedies, provided by law. <br />18. TERMINATION FOR CONVENIENCE <br />Except as otherwise provided in this Contract, COMMERCE may, by ten (10) business days ’ written <br />notice, beginning on the second day after the mailing, terminate this Contract, in whole or in part. If <br />this Contract is so terminated, COMMERCE shall be liable only for payment required under the terms <br />of this Contract for services rendered or goods delivered prior to the effective date of termination. <br />19. TERMINATION PROCEDURES <br />Upon termination of this contract, COMMERCE, in addition to any other rights provided in this <br />contract, may require the Contractor to deliver to COMMERCE any property specifically produced or <br />acquired for the performance of such part of this contract as has been terminated. The provision s of <br />the "Treatment of Assets" clause shall apply in such property transfer. <br />Docusign Envelope ID: AD80B14D-B024-4394-8B0A-378C05EAF169