COUNCIL OF O.C. SOCIETY OF ST. VINCENT DE PAUL 1

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5/05 SUBRECIPIENT on a quarterly basis, subject to and upon receipt and approval of a complete quarterly activity report, with the final payment subject to the satisfaction of the condition prece- dent of submittal of complete reporting information due on or before July 15 of the applicable funding year, as hereinafter more fully set forth. SUBRECIPIENT shall be obligated to perform such duties as would normally extend beyond the term, including but not limited to obligations with respect to indemnification, audits, reporting, data retention/reporting, and accounting. In accordance with 42 USC 11375(a), SUBRECIPIENT agrees to match all federal funds provided by CITY to SUBRECIPIENT with an equal amount of funds from sources other than these or other ESG funds. SUBRECIPIENT cannot use ESG funds from other jurisdictions in order to meet this match requirement. Match documentation showing new, previously unused match dollars, must be provided with each quarterly report. C. Use of Funds. SUBRECIPIENT agrees to use said funds pursuant to this Agreement to pay for necessary and reasonable costs allowable under the federal law and regula- tions to operate said program only. Said amounts shall include and will be limited to, essential services, homeless prevention, and/or operations costs. Allowable program costs are detailed in the Budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. SUBRECIPIENT'S failure to perform as required may, in addition to other remedies set forth in this Agreement, result in readjustment of the amount of funds CITY is otherwise obligated to pay to SUBRECIPIENT pursuant to the terms hereof. SUBRECIPIENT agrees that the homeless shelter and services under said program shall be made available for the entire period during which said funds are provided. D. Allowable Costs. SUBRECIPIENT agrees to complete said program on or before June 30, 2006 and to use said funds to pay for necessary and reasonable costs allowable under the federal law and regulations to operate said program. Said amounts shall include essential services, homeless prevention, and/or operations costs. Other allowable program costs are detailed in the Budget, as set forth in "Exhibit B," attached hereto and by this reference incorporated herein. SUBRECIPIENT shall use all income received from said funds only for the same purposes for which said funds may be expended pursuant to the terms and conditions of this Agreement. E. Licensing. SUBRECIPIENT agrees to obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing its operations. SUBRECIPIENT shall ensure that its staff shall also obtain and maintain all required licenses, registrations, accreditation and inspections from all agencies governing SUBRECIPIENT's operations hereunder. Such licensing requirements include obtaining a City business license, as applicable. F. Zoning. SUBRECIPIENT agrees that any facility/property used in furtherance of said program shall be specifically zoned and permitted for such use(s) and activity(ies). Should SUBRECIPIENT fail to have the required land entitlement and/or permits, thus violating any local, state or federal rules and regulations relating thereto, SUBRECIPIENT shall immediately make good -faith efforts to gain compliance with local, state or federal rules and regulations following 8