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and Cooperative Agreements (including sub - awards) with Institutions of Higher Learning, Hospitals and other Non - Profit Organizations; and Part 83, Government- Wide Requirements for a Drug Free Workplace (grants). 2. Noncompliance SUBRECIPIENT understands that failure to comply with any of the above assurances may result in suspension, termination or reduction of grant funds, and repayment by SUBRECIPIENT to GRANT ADMINISTRATOR of any unlawful expenditures. C. Compliance with Grant Assurances To obtain the Grant Funds, the Grantor required GRANT ADMINISTRATOR to sign certain promises regarding the way the Grant Funds would be spent ( "Grant Assurances "), attached hereto as Exhibit B. By signing these Grant Assurances, GRANT ADMINISTRATOR became liable to the Grantor for any funds that are used in violation of the grant requirements. SUBRECIPIENT shall be liable to the Grantor for any funds the Grantor determines SUBRECIPIENT used in violation of these Grant Assurances. SUBRECIPIENT shall indemnify and hold harmless GRANT ADMINISTRATOR for any sums the Grantor determines SUBRECIPIENT used in violation of the Grant Assurances. §414. Federal, State and Local Taxes Federal, State and local taxes shall be the responsibility of SUBRECIPIENT as an independent party and not as a SANTA ANA employee. §415. Inventions, Patents and Copyrights A. Reporting Procedure for Inventions If any project produces any invention or discovery (Invention) patentable or otherwise under title 35 of the U.S. Code, including, without limitation, processes and business methods made in the course of work under this Agreement, the SUBRECIPIENT shall report the fact and disclose the Invention promptly and fully to GRANT ADMINISTRATOR. GRANT ADMINISTRATOR shall report the fact and disclose the Invention to the Grantor. Unless there is a prior agreement between GRANT ADMINISTRATOR and the Grantor, the Grantor shall determine whether to seek protection on the Invention. The Grantor shall determine how the rights in the Invention, including rights under any patent issued thereon, will be allocated and administered in order to protect the public interest consistent with the policy ( "Policy ") embodied in the Federal Acquisition Regulations System, which is based on Ch. 18 of title 35 U.S.C. Sections 200 et seq. (Pub. L. 95 -517, Pub. L. 98 -620, 37 CFR part 401); Presidential Memorandum on Government Patent Policy to the Heads of the Executive Departments and Agencies, dated 2/18/1983); and Executive Order 12591, 13