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10. Noncompliance <br />SUB -RECIPIENT understands that failure to comply with any of the <br />above assurances may result in suspension, termination or reduction <br />of grant funds, and repayment by SUB -RECIPIENT to CITY of any <br />unlawful expenditures. <br />C. Compliance With Standard Assurances <br />To obtain the Grant Funds, the Grantor required an authorized representative <br />of the CITY to sign certain promises regarding the way the Grant Funds would <br />be spent ("Standard Assurances"), attached hereto as Exhibit C. By signing <br />these Standard Assurances, the CITY became liable to the Grantor for any <br />funds that are used in violation of the grant requirements. SUB -RECIPIENT <br />shall be liable to the Grantor for any funds the Grantor determines SUB - <br />RECIPIENT used in violation of these Grant Assurances. SUB -RECIPIENT <br />shall indemnify and hold harmless the CITY for any sums the Grantor <br />determines SUB -RECIPIENT used in violation of the Standard Assurances. <br />§414. Federal, State and Local Taxes <br />Federal, State and local taxes shall be the responsibility of SUB -RECIPIENT as <br />an independent party and not as a CITY employee. <br />§415. Inventions, Patents and Copyrights <br />A. Reporting Procedure for Inventions <br />If any project produces any invention or discovery (Invention) patentable or <br />otherwise under title 35 of the U.S. Code, including, without limitation, <br />processes and business methods made in the course of work under this <br />Agreement, the SUB -RECIPIENT shall report the fact and disclose the <br />Invention promptly and fully to the CITY. The CITY shall report the fact and <br />disclose the Invention to the Grantor. Unless there is a prior agreement <br />between the CITY and the Grantor, the Grantor shall determine whether to <br />seek protection on the Invention. The Grantor shall determine how the rights in <br />the Invention, including rights under any patent issued thereon, will be <br />allocated and administered in order to protect the public interest consistent <br />with the policy (`Policy") embodied in the Federal Acquisition Regulations <br />System, which is based on Ch. 18 of title 35 U.S.C. Sections 200, et seq. <br />(Pub. L. 95-517, Pub. L. 98-620, 37 CFR part 401); Presidential Memorandum <br />on Government Patent Policy to the Heads of the Executive Departments and <br />Agencies, dated 2/18/1983); and Executive Order 12591, 4/10/87, 52 FIR <br />13414, 3 CFR, 1987 Comp., p. 220 (as amended by Executive Order 12618, <br />12/22/87, 52 FIR 48661, 3 CFR, 1987 Comp., p. 262). SUB -RECIPIENT <br />hereby agrees to be bound by the Policy, and will contractually require its <br />personnel to be bound by the Policy. <br />B. Rights to Use Inventions <br />24 <br />