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the Grantee agrees as follows: <br />1 Written Subagreement. The Grantee agrees to enter into a written agreement <br />with each subrecipient (subagreement) stating the terms and conditions of <br />assistance by which the Project will be undertaken and completed. <br />2 Compliance with Federal Requirements. The Grantee agrees to implement the <br />Project in a manner that will not compromise the Grantee's compliance with <br />Federal and State laws, regulations, and directives applicable to the Project and <br />the Grantee's obligations under this Agreement for the Project and the FTA <br />Master Agreement. Therefore, the Grantee agrees to include in each <br />subagreement appropriate clauses directing the subrecipient to comply with <br />those requirements applicable to the Grantee imposed by this Agreement for <br />the Project or the FTA Master Agreement and extend those requirements as <br />necessary to any lower level subagreement or any third party contractor at each <br />tier, except as the Department determines otherwise in writing. <br />(3) Iran Divestment Act compliance <br />(a) N.C.G.S. 147 -86.59 requires that all bids or contracts or renewals with the State of <br />North Carolina, North Carolina local governments, or any other political subdivision of <br />the State of North Carolina have a certification that the Grantee is not on the Final <br />Divestment List as created by the NC State Treasurer pursuant to N.C.G.S. § 147- <br />86.58. In compliance with the requirements of the Iran Divestment Act 2015 and <br />N.C.G.S. § 147 -86.55 and 147 - 86.59, the Grantee shall not utilize the performance of <br />the contract of any subcontractor that is identified on the Final Divestment List. <br />The State Treasurer's Final Divestment List can be found on the State Treasurer's <br />website: ww.ricotr a e.irer.com /iraann and will be updated every 180 days, effective <br />February 26, 2016. <br />1 By execution of this Agreement each Party certifies that neither it nor its Agents <br />or Contactors /Subcontractors (1) are on the Final Divestment List of entities that <br />the State Treasurer has determined engages in investment activities in Iran; (2) <br />shall not utilize on any contract with the State agency any subcontractor that is <br />identified on the Final Divestment List; and (3) that the undersigned are <br />authorized by the Parties to make this Certification. <br />2 During the term of this Agreement, should the Parties receive information that a <br />person is in violation of the Act as stated above, the Department will offer the <br />person an opportunity to respond and the Department will take action as <br />appropriate and provided for by law, rule, or contract. Should this Act be voided <br />by NC General Statute, this Agreement will remain valid; however this <br />certification will no longer be required. <br />No Federal /State Government Obligations to Third Parties. In connection with performance of the <br />Project, the Grantee agrees that, absent the Federal /State Government's express written consent, <br />the Federal /State Government shall not be subject to any obligations or liabilities to any <br />subrecipient, third party contractor, lessee or other person or entity that is not a party to this <br />Agreement for the Project. Notwithstanding that the Federal /State Government may have <br />concurred in or approved any solicitation, subagreement, or third party contract, the Federal /State <br />Government has no obligations or liabilities to such entity, including any subrecipient, third party <br />contractor, or lessee. <br />Changes in Project Performance (i.e., Disputes, Breaches, Defaults, or Litigation). The Grantee <br />agrees to notify the Department immediately, in writing, of any change in local law, conditions <br />(including its legal, financial, or technical capacity), or any other event that may adversely affect <br />the Grantee's ability to perform the Project as provided in this Agreement for the Project. The <br />Grantee also agrees to notify the Department immediately, in writing, of any current or prospective <br />major dispute, breach, default, or litigation that may adversely affect the Federal /State <br />Government's interests in the Project or the Federal /State Government's administration or <br />enforcement of Federal /State laws or regulations; and agrees to inform the Department, also in <br />05/27/2015 Page 5 of 36 <br />