METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA (2) -2008

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c \ '.j ..........'l;. (,j Agreement 4600004214 Water Use Efficiency Grant Residential High Efficiency Clothes Washer Rebate Program SECTION 6. I NCORPORA TION OF STANDARD CONDITIONS AND GRANTEE COMMITMENTS In addilfon to Exhibits Band C. this Agreement incorporates Exhibit A, "Standard Terms'. The Grantee accepts and agrees to comply with all terms, provisions, conditions, and commitments of this Agreement. including all incorporated documents. and to fulfill all assurances, declarations, representations and statements made by the Grantee in the Application, documents, amendments and communications filed in support of its request for financing. SECTION 7. CONDITIONS FOR DISBURSEMENT The Grantee shall meet aU conditions for disbursement of money under this Agreement, including the provisions of Exhibit A-6. Failure by Grantee to comply may, at the option of the State, result in termination of the Agreement. SECTION 8. PROGRESS REPORTS AND STATEMENT OF COSTS The Grantee shall submit Quarterlv progress reports, January 15, April 15, July 15, and October 15, on the status of the Project and a Statement of Costs to the Department of Water Resources. The submittal and approval by the State of these reports is a requirement for continued disbursement of State Grant funds. Progress reports shall summarize the work completed during the reporting period, include a statement of progress toward completion compared to the Project schedule, and provide a comparison of costs to date compared to the approved scope of work and Project budget. SECTION 9. FINAL REPORTS The Grantee shall submit a Draft Final Report on Project completion or termination and expenditures for the State's review and comment. The Draft Final Report shall be modified to incorporate the State's comments, if any, and resubmitted, as Final Report within sixty (60) days of the Grantee's receipt of the State's comments. The Grantee shall also submit post-completlon Annual Reports and Updates. Reports will follow the format requirements set forth in Exhibit B, Attachment 1. SECTION 10. OPERATIONS AND MAINTENANCE OF "CONSTRUCTION" PROJECT In consideration of the State Grant, the Grantee agrees, for the useful life of the Project, to expeditiously commence and to continue operation 'of the Project and shall cause the Project to be operated in an efficient and economical manner; shall provide for all repairs, renewals, and replacements necessary to the efficient operation of the Project; and shall cause the Project to be maintained in as good and efficient condition as upon its construction, ordinary and reasonable wear and depreciation excepted. Refusal of the Grantee to operate and maintain the Project in accordance with this provision may, at the option ofthe State, be considered a material breach of Agreement and may be treated as default under default provisions Exhibit A-25. 3