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DocuSign Envelope ID: FC086FC9-5E8F4ECC-8254-E864FB867443 <br />collected by the State of North Carolina. State <br />funds include federal financial assistance <br />received by the State and transferred or <br />disbursed to non -State entities. Both Federal <br />and State funds maintain their identity as they <br />are subgranted to other organizations. <br />Pursuant to NCGS 143C -6-23(a)(1), the terms <br />"State grant funds" and "State grants" do not <br />include any payment trade by the Medicaid <br />program, the Teachers' and State Employees' <br />Comprehensive Major Medical Plan, or other <br />similar medical programs. <br />(17) "Subgranteet" has the meaning in NCGS <br />143C -6-23(a)(3): a non -State entity that <br />receives a grant of State funds from a <br />Subrecipient or from another subgrantee but <br />does not include any non -State entity subject <br />to the audit and other reporting requirements <br />of the Local Government Commission. <br />(18) "Unit of Local Government" has the meaning <br />in NCGS 143C -1-1(d)(29): A municipal <br />corporation that has the power to levy taxes, <br />including a consolidated city -county as <br />defined by NCGS 160B-2(1), and all boards, <br />agencies, commissions, authorities, and <br />institutions thereof that are not municipal <br />corporations. <br />Relationships of the Parties <br />Independent Contractor: The Subrecipient is and <br />shall be deemed to be an independent contractor in the <br />performance of this Contract and as such shall be wholly <br />responsible for the work to be performed and for the <br />supervision of its employees. The Subrecipient <br />represents that it has, or shall secure at its own expense, <br />all personnel required in performing the services under <br />this agreement. Such employees shall not be employees <br />of, or have any individual contractual relationship with, <br />the Recipient. <br />Subcontracting: The Subrecipient shall not subcontract <br />any of the work contemplated under this Contract <br />without prior written approval from the Recipient. Any <br />approved subcontract shall be subject to all conditions of <br />this Contract. Only the subcontractors or subgrantees <br />specified in the contract documents are to be considered <br />approved upon award of the contract. The Recipient <br />shall not be obligated to pay for any work performed by <br />any unapproved subcontractor or subgrantee. The <br />Subrecipient shall be responsible for the performance of <br />all of its subgrantees and shall not be relieved of any of <br />the duties and responsibilities of this Contract. <br />CI 5 7 <br />Subgrantees: The Subrecipient has the responsibility to <br />ensure that all subgrantees, if any, provide all <br />information necessary to permit the Subrecipient to <br />comply with the standards set forth in this Contract. <br />Assignment: No assignment of the Subrecipient's <br />obligations or the Subrecipient's right to receive payment <br />hereunder shall be permitted. However, upon written <br />request approved by the issuing purchasing authority, the <br />State may: <br />(a) Forward the Subrecipient's payment check(s) <br />directly to any person or entity designated by the <br />Subrecipient, or <br />(b) Include any person or entity designated by <br />Subrecipient as a joint payee on the <br />Subrecipient's payment check(s). <br />In no event shall such approval and action obligate the <br />State to anyone other than the Subrecipient and the <br />Subrecipient shall remain responsible for fulfillment of <br />all contract obligations. <br />Beneficiaries: Except as herein specifically provided <br />otherwise, this Contract shall inure to the benefit of and <br />be binding upon the parties hereto and their respective <br />successors. It is expressly understood and agreed that the <br />enforcement of the terms and conditions of this Contract, <br />and all rights of action relating to such enforcement, <br />shall be strictly reserved to the Recipient and the named <br />Subrecipient. Nothing contained in this document shall <br />give or allow any claim or right of action whatsoever by <br />any other third person. It is the express intention of the <br />Recipient and Subrecipient that any such person or <br />entity, other than the Recipient or the Subrecipient, <br />receiving services or benefits under this Contract shall <br />be deemed an incidental beneficiary only. <br />Indemnity <br />Indemnification: The Subrecipient agrees to indemnify <br />and hold harmless the Recipient, the State of North <br />Carolina, and any of their officers, agents and <br />employees, from any claims of third parties arising out <br />of any act or omission of the Subrecipient in connection <br />with the performance of this Contract. <br />Default and Termination <br />Termination by Mutual Consent: The Parties may <br />terminate this Contract by mutual consent with 60 days <br />notice to the other party, or as otherwise provided by <br />law. <br />Termination Without Cause: The Recipient may <br />terminate this contract without cause by giving 60 days <br />Page 6 of 16 <br />