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17. The Grantee acknowledges and agrees that the Grantee is an entity independent from the Foundation, and is not <br />an agent of the Foundation, and is not authorized to bind the Foundation to any agreement of payment for goods <br />or services. The Grantee is responsible for payment of all its expenses, including rent, office expenses and all <br />forms of compensation to employees. It shall provide workers compensation insurance to the extent required for <br />its operations and shall accept full responsibility for payments of unemployment compensation, social security, <br />income taxes and any other charges, taxes or payroll deductions required by law in connection with its <br />operations, for itself and its employees. All expenses incurred by the Grantee are the sole responsibility of the <br />Grantee, and the Foundation shall not be liable for the payment of any obligations incurred in the performance <br />of the project funded. <br />18. The Grantee acknowledges receipt of the following statement of the Foundation's policy regarding termination <br />and rescission of grants. The Grantee acknowledges that the Foundation may, from time to time, amend its <br />policy regarding termination and rescission of grants, and the Grantee acknowledges -that the Grantee will be <br />subject to the policy as so amended. <br />Rescission and Termination of Grants. Rescission of a grant revokes the grant award. When funds have been <br />disbursed to a Grantee by the Foundation and a grant is rescinded, the Grantee may be liable for repayment to <br />the Foundation of any and all grant funds received by the Grantee under the grant. Termination of a grant ends <br />the grant on agoing-forward basis, and the Grantee is liable for repayment to the Foundation only of that portion <br />of the grant funds that has been disbursed to but not expended by the Grantee in accordance with the terms of <br />the grant. <br />A grant may be rescinded or terminated at any time, at the discretion of the Foundation, for reasons <br />including the following: <br />a. The Grantee has not signed and delivered to the Foundation the Grantee Acknowledgment and <br />Agreement within four (4) months of the date it was sent to the Grantee. <br />b. The Grantee has failed to complete the project within the time established by the Grantee <br />Acknowledgment and Agreement or any extensions thereof. <br />c. The Grantee's tax-exempt status has been modified or revoked. <br />d. The Grantee is unable, or has failed or refused, to comply with a material term or condition of the grant. <br />e. The Grantee has experienced a change in circumstances that would have a material adverse effect upon <br />the Grantee's ability to accomplish fully the purposes of the grant (e.g., loss of collateral funding, loss <br />of key personnel, etc.). <br />f. The Grantee has failed or refused to submit a report, statement, accounting or return required under the <br />Grantee Acknowledgment and Agreement or by applicable law. <br />g. The Grantee has materially modified its budget for the project, and such material modification has not <br />been approved by the Foundation. <br />h. The Grantee commits a material violation of the Internal Revenue Code, or uses funds for some purpose <br />not permitted by the Internal Revenue Code or for some purpose not contemplated by the grant. <br />i. The Grantee breaches any of the covenants or agreements contained in the Grantee Acknowledgment <br />and Agreement, or any of the representations and warranties made by the Grantee in the Grantee <br />Acknowledgment and Agreement is untrue as to a material fact. <br />j. The Grantee requests that the grant be rescinded or terminated. <br />It is anticipated that a grant will be rescinded if one of the reasons set forth above exists and no grant funds <br />have been disbursed. Where grant funds have been disbursed, it is anticipated that a grant will be rescinded <br />in the case of the more serious violations (including, without limitation, use of Foundation funds for some <br />purpose not contemplated by the grant or in violation of the Internal Revenue Code, or upon. other <br />affirmative misconduct of the Grantee), and that termination of a grant will take place in the case of the less <br />serious instances of noncompliance. <br />4 <br />