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<br />17. Tax Exempt Status <br />Contractor acknowledges that the State of Colorado is not liable for any sales, use, excise, property or <br />other taxes imposed by any Federal, State or local government tax authority. The State also is not liable <br />for any Contractor franchise or income related tax. No taxes of any kind shall be charged to the State. <br />18. Legal Authority <br />Contractor warrants that it possesses the legal authority to enter into this contract and that it has taken all <br />actions required by its procedures, by-laws, and/or applicable laws to exercise that authority, and to lawfufly <br />authorize its undersigned signatory to execute this contract and to bind Contractor to its terms. Contractor <br />agrees it shall submit voluntarily to the personal jurisdiction of the Federal and State courts in the State of <br />Colorado and venue in the City and County of Denver, Colorado. The person(s) executing this contract on <br />behalf of Contractor warrant(s) that such person(s) have full authorization to execute this contract. <br />19. Compliance with Applicable Law <br />Contractor shall at all times during the execution of this contract strictly adhere to, and comply with, all <br />applicable Federal and Colorado State laws, and their implementing regulations, as they currently exist and <br />may hereafter be amended, which laws and regulations are incorporated herein by this reference as terms <br />and conditions of this contract. Contractor also shall require compliance with such laws and regulations by <br />subcontractors under subcontracts permitted under this contract. <br />REMEDIES <br />20. Remedies <br />20.1 In addition to any other remedies provided for in this contract, and without limiting the remedies <br />otherwise available at law or in equity, the State may exercise the following remedial actions if <br />Contractor substantially fails to satisfy or perform the duties and obligations in this contract. <br />"Substantial failure" to satisfy duties and obligations shall be defined to mean material, insufficient, <br />incorrect or improper performance, activities, or inaction by Contractor. These remedial actions are <br />as follows: <br />(a) Suspend Contractor's pertormance pending necessary corrective action as specified by the <br />State, without Contractor's entitlement to adjustment in price/cost or schedule. Furthermore, at <br />the State's option, a directive to suspend may include suspension of this entire contract or any <br />particular part of this contract that the State determines in good faith would not be beneficial or <br />in the State's best interests due to Contractor's substantial non-performance. Accordingly, the <br />State shall not be liable to Contractor for costs incurred after the State has duly notified <br />Contractor of the suspension of performance under this provision, and Contractor shall <br />promptly cease performance and incurring costs in accordance with the State's directive; <br />(b) Withhoid payment to Contractor until the necessary Services or corrections in performance, <br />deve{opment or manufacture are satisfactoriiy completed; <br />(c) Request the removal from work on this contract of employees or agents of Contractor identified <br />by the State, in its reasonable judgment, as being incompetent, careless, insubordinate, <br />unsuitable, or otherwise unacceptable, or whose continued employment on this contract the <br />State deems to be contrary to the public interest or not in the best interests of the State; <br />(d) Deny payment for those Services or obligations which have not been performed which have <br />not been provided and which, due to circumstances caused by Contractor, cannot be <br />performed, or if performed would be of no value to the State. Denial of the amount of payment <br />must be reasonably related to the value of work or performance lost to the State; and/or <br />(e) Terminate this contract for default. <br />The above remedies are cumulative and the State, in its sole discretion, may exercise any or all of <br />them individually or simultaneously. <br />Page 7 of 14