STATE OF CALIFORNIA EMPLOYMENT DEVELOPMENT DEPT.

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audit. Refer to OMB Guidance, Subpart D, Part 200.333-200.337. c. The Pass -through Entity and/or the DOL, or their designee (refer to OMB Guidance, section 200.336) will have access to and right to examine, monitor and audit all records, documents, conditions and activities related to programs funded by this subgrant agreement. For purposes of this section, "access to" means that the Subrecipient shall at all times maintain within the State of California a complete set of records and documents related to programs funded by this agreement. The Subrecipient shall comply with this requirement regardless of whether it ceases to operate or maintain a presence within the State of California before the expiration of the subgrant. Subrecipient's performance under the terms and conditions herein specified will be subject to an evaluation by the Pass -through Entity of the adequacy of the services performed, timeliness of response and a general impression of the competency of the firm and its staff. 18. Subcontracting a. Any of the work or services specified in this subgrant agreement which will be performed by other than by the Subrecipient will be evidenced by a written agreement specifying the terms and conditions of such performance. b. The Subrecipient will maintain and adhere to an appropriate system, consistent with federal, state and local law, for the award and monitoring of contracts which contain acceptable standards for ensuring accountability. c. The system for awarding contracts will contain safeguards to ensure that the Subrecipient does not contract with any entity whose officers have been convicted of fraud or misappropriation of funds within the last two years. 19. Consultants Fees paid to a consultant, who provides services under a program, shall be limited to $750 per day (representing an 8 hour work day). Any fees paid in excess of this amount cannot be paid without prior approval from the Grant Officer. 20. Conflicts a. Subrecipient will cooperate in the resolution of any conflict with the DOL that may occur from the activities funded under this agreement. b. In the event of a dispute between the Pass -through Entity and the Subrecipient over any part of this subgrant agreement, the dispute may be submitted to non -binding arbitration upon the consent of both the Pass -through Entity and the Subrecipient. An election for arbitration pursuant to this provision will not preclude either party from pursuing any remedy for relief otherwise available. 21. Indemnification a. The following provision applies only if the Subrecipient is a governmental entity: Pursuant to California Government Code § 895.4, each party agrees to indemnify and hold the other party harmless from all liability for damage to persons or property arising out of or resulting from acts or omissions of the indemnifying party. b. The following provision applies only if the Subrecipient is a non -governmental entity: The Subrecipient agrees to the extent permitted by law, to indemnify, defend and hold harmless the Pass -through Entity, its officers, agents and employees from any and all claims and losses accruing or resulting to any and all contractors, subcontractors, materials persons, laborers and any other persons, firms or corporations, furnishing or supplying work, services, materials, or supplies In connection with the performance of this agreement, and from any and all claims and losses accruing or resulting to any persons, firms or corporations which may be injured or damaged by the Subrecipient in the performance of this subgrant agreement. 22. Signatures Page 9 of 16