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which may be classified as confidential, for any purpose not directly connected with the administration of <br /> this Agreement, except with prior written consent of the WTSC, or as may be required by law. <br /> 14. COST PRINCIPLES <br /> Costs incurred under this Agreement shall adhere to provisions of 2 CFR Part 200 Subpart E. <br /> 15. COVENANT AGAINST CONTINGENT FEES <br /> The SUB-RECIPIENT warrants that it has not paid, and agrees not to pay, any bonus, commission, <br /> brokerage, or contingent fee to solicit or secure this Agreement or to obtain approval of any application for <br /> federal financial assistance for this Agreement. The WTSC shall have the right, in the event of breach of this <br /> section by the SUB-RECIPIENT, to annul this Agreement without liability. <br /> 16. DISPUTES <br /> 16.1. Disputes arising in the performance of this Agreement, which are not resolved by agreement of the <br /> Parties, shall be decided in writing by the WTSC Deputy Director or designee. This decision shall be final <br /> and conclusive, unless within 10 days from the date of the SUB-RECIPIENT's receipt of WTSC's written <br /> decision, the SUB-RECIPIENT furnishes a written appeal to the WTSC Director. The SUB-RECIPIENT's <br /> appeal shall be decided in writing by the Director or designee within 30 days of receipt of the appeal by the <br /> Director. The decision shall be binding upon the SUB-RECIPIENT and the SUB-RECIPIENT shall abide by <br /> the decision. <br /> 16.2. Performance During Dispute. Unless otherwise directed by WTSC,the SUB-RECIPIENT shall <br /> continue performance under this Agreement while matters in dispute are being resolved. <br /> 17. GOVERNANCE <br /> 17.1. This Agreement is entered into pursuant to and under the authority granted by the laws of the state of <br /> Washington and any applicable federal laws. The provisions of this Agreement shall be construed to conform <br /> to those laws. <br /> 17.2. In the event of an inconsistency in the terms of this Agreement, or between its terms and any applicable <br /> statute or rule, the inconsistency shall be resolved by giving precedence in the following order: <br /> 17.2.1. Applicable federal and state statutes and rules <br /> 17.2.2. Terms and Conditions of this Agreement <br /> 17.2.3.Any Amendment executed under this Agreement <br /> 17.2.4. Any SOW executed under this Agreement <br /> 17.2.5. Any other provisions of the Agreement, including materials incorporated by reference <br /> 18. INCOME <br /> Any income earned by the SUB-RECIPIENT from the conduct of the SOW(e.g., sale of publications, <br /> registration fees, or service charges)must be accounted for, and that income must be applied to project <br /> purposes or used to reduce project costs. <br /> 19. INDEMNIFICATION <br /> 19.1. To the fullest extent permitted by law, the SUB-RECIPIENT shall indemnify and hold harmless the <br /> WTSC, its officers, employees, and agents, and process and defend at its own expense any and all claims, <br /> demands, suits at law or equity, actions, penalties, losses, damages, or costs of whatsoever kind("claims") <br /> brought against WTSC arising out of or in connection with this Agreement and/or the SUB-RECIPIENT's <br /> performance or failure to perform any aspect of the Agreement. This indemnity provision applies to all <br /> claims against WTSC, its officers, employees, and agents arising out of, in connection with, or incident to <br /> the acts or omissions of the SUB-RECIPIENT, its officers, employees, agents, contractors, and <br />