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3. DISBURSEMENT AND FUNDS <br />A. Contractor agrees to pay to Subcontractor when, if and to the extent State HHAP <br />grant finds are received a sum not to exceed $1,628,200,10 for Subcontractor's performance of <br />the Program through the term of this HHAP Agreement, which shall count toward the amount of <br />funds due from the Contractor to Subcontractor under Agreement No, A-2022-240. Said sum <br />shall be paid after Contractor receives invoices submitted by Subcontractor as provided herein. <br />B. Subcontractor shall submit monthly invoices (on or before the 15`h day of each <br />month) in a form prescribed by the Contractor, detailing such expenses. Such schedule may be <br />modified with the approval of the Contractor, <br />C. Payment is subject to the receipt and approval of such invoices and quarterly <br />activity reports. Contractor shall pay such invoices within forty-five (45) days after receipt <br />thereof, provided Contractor is satisfied that such expenses have been incurred within the scope <br />of this HHAP Agreement and that the Subcontractor is in compliance with the terms and <br />conditions of this HHAP Agreement. The forty-five (45) day period will discontinue if the <br />reimbursement request is determined to be incomplete and will restart the thirty -day timeline <br />once the remaining required elements have been submitted, Failure to provide any of the <br />required documentation will cause the Contractor to withhold all or a portion of a request for <br />reimbursement until such documentation has been received and approved by the Contractor. <br />D. Subcontractor agrees to use said funds pursuant to this HHAP Agreement to pay <br />for necessary and reasonable costs allowable under state law and regulations to operate said <br />HHAP Program only. Subcontractor's failure to perform as required may, in addition to other <br />remedies set forth in this HHAP Agreement, result in readjustment of the amount of funds the <br />Contractor is otherwise obligated to pay to the Subcontractor pursuant to the terms hereof, or <br />termination of this HHAP Agreement. <br />4. STATE HHAP AGREEMENT <br />A. Contractor entered into State HHAP Agreements identified in Exbibit A and <br />Exhibit B to this HIIAP Agreement ("collectively, the "State HHAP Agreements") with the <br />State of California receiving and recognizing $14,271,677.69 in HHAP grant funds to be used by <br />Contractor to address immediate homeless challenges. Subcontractor agrees to comply with all <br />the terms and conditions outlined in the State HFIAP Agreements and the applicable State <br />requirements governing the use of HHAP grant funds, <br />B, Pursuant to the State I-IHAP Agreements, Subcontractor is required to: <br />Perform the work in accordance with Federal, State and Local housing and <br />building codes, as applicable. <br />ii. Maintain at least the minimum State -required worker's compensation for <br />those employees who will perform the work or any part of it, <br />