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Page 9 of 17 <br />INDEMNIFICATION <br />To the fullest extent permitted by law, the GRANTEE shall indemnify, defend, and hold harmless State, <br />agencies of State and all officials, agents and employees of State, from and against all claims for injuries or <br />death arising out of or resulting from the performance of the contract. “Claim,” as used in this contract, means <br />any financial loss, claim, suit, action, damage, or expense, including but not limited to attorney’s fees, <br />attributable for bodily injury, sickness, disease, or death, or injury to or destruction of tangible property <br />including loss of use resulting therefrom. <br />The GRANTEE’S obligations to indemnify, defend, and hold harmless includes any claim by the GRANTEES’ <br />agents, employees, representatives, or any Subcontractor or its employees. <br />The GRANTEE expressly agrees to indemnify, defend, and hold harmless the State for any claim arising out of <br />or incident to the GRANTEE’S or any Subcontractor’s performance or failure to perform the contract. The <br />GRANTEE’S obligation to indemnify, defend, and hold harmless the State shall not be eliminated or reduced <br />by any actual or alleged concurrent negligence of State or its agents, agencies, employees and officials. <br />The GRANTEE waives its immunity under Title 51 RCW to the extent it is required to indemnify, defend and <br />hold harmless State and its agencies, officials, agents or employees. <br />INDEPENDENT CAPACITY OF THE GRANTEE <br />The parties intend that an independent contractor relationship will be created by this contract. The GRANTEE <br />and his or her employees or agents performing under this contract are not employees or agents of the <br />AGENCY. The GRANTEE will not hold himself/herself out as or claim to be an officer or employee of the <br />AGENCY or of the State of Washington by reason hereof, nor will the GRANTEE make any claim of right, <br />privilege or benefit that would accrue to such employee under law. Conduct and control of the work will be <br />solely with the GRANTEE. <br />INDIRECT COSTS <br />The GRANTEE is entitled to reimbursement of indirect costs, subject to any statutory or regulatory <br />administrative cost limitations, if the GRANTEE has a current federally-approved indirect cost rate agreement; <br />or has submitted an indirect cost rate proposal to their cognizant federal agency for review and approval and a <br />final rate has been determined by the cognizant agency. The GRANTEE is responsible for maintaining an <br />approved indirect cost rate for the life of this contract. If the GRANTEE has a difference between their <br />provisional rate and final rate the GRANTEE is not entitled to more than the contract value without prior <br />approval from the AGENCY. The GRANTEE may elect a deminimus indirect rate of 15% of Modified Total <br />Direct Cost if the GRANTEE has not had an approved indirect cost rate agreement negotiated with the federal <br />government. <br />INDUSTRIAL INSURANCE COVERAGE <br />The GRANTEE shall comply with the provisions of Title 51 RCW, Industrial Insurance. If the GRANTEE fails to <br />provide industrial insurance coverage or fails to pay premiums or penalties on behalf of its employees, as may <br />be required by law, the AGENCY may collect from the GRANTEE the full amount payable to the Industrial <br />Insurance accident fund. The AGENCY may deduct the amount owed by the GRANTEE to the accident fund <br />from the amount payable to the GRANTEE by the AGENCY under this contract, and transmit the deducted <br />amount to the Department of Labor and Industries, (L&I) Division of Insurance Services. This provision does <br />not waive any of L&I’s rights to collect from the GRANTEE. <br />INSURANCE <br />The GRANTEE shall provide insurance coverage as set out in this section. The intent of the required <br />insurance is to protect the state should there be any claims, suits, actions, costs, damages or expenses arising <br />from any negligent or intentional act or omission of the GRANTEE or Subcontractor, or agents of either, while <br />performing under the terms of this contract. <br />The GRANTEE shall provide insurance coverage, which shall be maintained in full force and effect during the <br />term of this contract, as follows: