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