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<br />5/05 <br /> <br />l. SUBRECIPIENT'S OBLIGATIONS <br /> <br />A. Non-Profit Status - Representations and Warranties. <br /> <br />(a) Authority. SUBRECIPJENT is a duly organized and existing non-profit corporation <br />in good standing and authorized to do business under the laws of the State of California. <br />SUBRECIPIENT has full right, power and lawful authority to accept the funding hereunder and <br />to undertake all obligations as provided herein and the execution, performance and delivery of <br />this Agreement by SUBRECIPIENT has been fully authorized by all requisite actions on the part <br />of SUBRECIPIENT. <br /> <br />(b) Experience. SUBRECJPIENT is a qualified provider of the services to be provided <br />hereunder. <br /> <br />(c) Familiarity With Services Required. By executing this Agreement, <br />SUBRECIPIENT warrants that (i) it has thoroughly investigated and considered the services to <br />be performed and provided hereunder, (ii) it has carefully considered how the services should be <br />performed, and (iii) it fully understands the facilities, difficulties and restrictions attending <br />performance of the services under this Agreement. <br /> <br />(d) No Conflict. To the best of SUBRECJPIENT'S knowledge, SUBRECJPIENT'S <br />execution, delivery and performance of its obligations under this Agreement will not constitute a <br />default or a breach under any contract, agreement or order to which SUBRECIPIENT is a party <br />or by which it is bound. <br /> <br />(e) No Bankruptcy. SUBRECIPJENT is not the subject of any current or threatened <br />bankruptcy proceeding. <br /> <br />(f) No Pending Legal Proceedings. SUBRECIPIENT is not the subject of a current or <br />threatened litigation that would or may materially affect SUBRECIPJENT'S performance under <br />this Agreement. <br /> <br />(g) Application Veracity. All provisions of and information provided in <br />SUBRECJPIENT'S application for funding submitted to CITY including any exhibits are true <br />and correct in all material respects. <br /> <br />(h) No Pending Investigation. SUBRECIPIENT is not aware that it is the <br />subject of any current or threatened criminal or civil action investigation by any public agency, <br />including without limitation a police agency or prosecuting authority, that would relate to affect <br />performance of the Agreement or provision of services hereunder. <br /> <br />B. Amount of Grant and Quarterly Disbursement. The amount grantcd to <br />SUBRECIPIENT is $ 16,000("CDBG FUNDS"), and such funds shall be expended by <br />SUBRECIPIENT on or before June 30, 2008. The CDBG FUNDS shall be disbursed by CITY <br />to SUBRECIPIENT on a quartcrly basis (October, January, April and July) subject to and upon <br />reccipt and approval of a complcte quarterly activity report from SUBRECIPIENT, with the final <br /> <br />2 <br />