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5/11/10 1. T he unl awful m anufacture, di stribution, dispensing, pos session or use of a controlled substance is prohibited in the workplace for any employee involved in a federally funded program. 2. As an employee working in conjunction with a federally funded program, the employees of SUBRECIPIENT will be required to: a) Abide by the terms above in statement 1. b) Notify appropriate officials of SUBRECIPIENT and CITY officials of any c riminal dr ug s tatute c onviction f or a vi olation oc curring i n t he w orkplace n of later than five days after such conviction. 3. T he C ITY and t he U nited S tate D epartment of Housing and U rban Development will be notified within ten days after receiving notice of any such violation. 4. Within 30 days of receiving such notice, appropriate personnel action will be taken against such employee, up to and including termination. Each s uch e mployee s hall be r equired t o pa rticipate s atisfactorily i n a dr ug a Buse assistance or rehabilitation program approved for such purposes by a federal, state or local health, law enforcement, or other appropriate agency. W. Uniform A dministrative R equirements for N on-Governmental S ubrecipients/Non- Profits. The following requirements and standards must be complied with: OMB Circular A-122 "Cost P rinciples f or N on-Profit O rganizations" or O MB C ircular A -21 "Cost Principles f or Educational Institutions", as applicable; 24 CFR Part 84, "Grants and Agreements with Institutions of H igher E ducaiton, H ospitals, a nd O ther N on-Profit O rganizations," a s modified by 24 C FR 570.502(b); a nd, O MB C ircular A -133, "Audits of S tates, L ocal G overnments a nd N on-Profit Organizations". X. Subpart K of 24 CFR 570. SUBRECIPIENT will carry out its activities in compliance with the requirements of Subpart K of 24 CFR 570, however SUBRECIPIENT does not assume the CITY's environmental responsibilities or the responsibility for initiating the environmental review process under 24 CFR Part 52. II. CITY'S OBLIGATIONS A. Payment of Funds. Upon execution of this Agreement by SUBRECIPIENT, CITY shall pay to SUBRECIPIENT from CDBG funds, when, if and to the extent received from HUD, for CITY's 2010-2011 CDBG program year amounts expended by SUBRECII'IENT in carrying out said program for fiscal year 2010-2011 pursuant to this Agreement up to a maximum aggregate payment of fifty-eight thousand five hundred Dollars ($58,500) in installments determined by CITY. Payments shall be made to SUBRECIPIENT through the submission of invoices on a quarterly basis on or before the 15`h of the following months (October, January, April and July) in a form prescribed by CITY, detailing such expenses. 8 25L-10