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8 <br /> Interest will accrue at the rate of 12 percent per annum from the time the DEPARTMENT demands <br /> repayment of funds. If payments have been discontinued by the DEPARTMENT due to insufficient <br /> funds,as in Section K.2 above, the RECIPIENT shall not be obligated to repay monies which had been <br /> paid to the RECIPIENT prior to such termination. Any property acquired under this AGREEMENT,at <br /> the option of the DEPARTMENT, may become the DEPARTMENT's property and the RECIPIENT'S <br /> liability to repay monies will be reduced by an amount reflecting the fair value of such property. <br /> P. PROJECT APPROVAL <br /> The extent and character of all work and services to be performed under this AGREEMENT by the <br /> RECIPIENT will be subject to the review and approval of the DEPARTMENT through the Project <br /> Manager or other designated official to whom the RECIPIENT shall report and be responsible. In the <br /> event there is a dispute with regard to the extent and character of the work to be done,the determination <br /> of the Project Manager or other designated official as to the extent and character of the work to be done <br /> will govern. The RECIPIENT shall have the right to appeal decisions as provided for below. <br /> Q. DISPUTES <br /> Except as otherwise provided in this AGREEMENT, any dispute concerning a question of fact arising <br /> under this AGREEMENT which is not disposed of in writing will be decided by the Project Manager or <br /> other designated official who shall provide a written statement of decision to the RECIPIENT. The <br /> decision of the Project Manager or other designated official will be final and conclusive unless,within 30 <br /> days from the date of receipt of such statement,the RECIPIENT mails or otherwise furnishes to the <br /> Director of the DEPARTMENT a written appeal. <br /> In connection with appeal of any proceeding under this clause,the RECIPIENT shall have the <br /> opportunity to be heard and to offer evidence in support of this appeal. The decision of the Director or <br /> duly authorized representative for the determination of such appeals will be fmal and conclusive. <br /> Appeals from the Director's determination will be brought in the Superior Court of Thurston County. <br /> Review of the decision of the Director will not be sought before either the Pollution Control Hearings <br /> Board or the Shoreline Hearings Board. Pending final decision of dispute,the RECIPIENT shall proceed <br /> diligently with the performance of this AGREEMENT and in accordance with the decision rendered. <br /> R. CONFLICT OF INTEREST <br /> No officer,member,agent,or employee of either party to this AGREEMENT who exercises any <br /> function or responsibility in the review,approval,or carrying out of this AGREEMENT,shall participate <br /> in any decision which affects his/her personal interest or the interest of any corporation, partnership or <br /> association in which he/she is directly or indirectly interested;nor shall he/she have any personal or <br /> pecuniary interest,direct or indirect, in this AGREEMENT or the proceeds thereof. <br /> S. INDEMNIFICATION <br /> 1. The DEPARTMENT shall in no way be held responsible for payment of salaries, <br /> Page 7 of ATTACHMENT 6 <br /> 65 <br />