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PAYMENT PROVISION <br />Page 2 of 2 <br />Exhibit B <br />7. Prior authorization by the State in writing is required before Contractor will be reimbursed for <br />any purchase order or subcontract exceeding $2,500 for any articles, supplies, equipment, or <br />services to be purchased by Contractor and claimed for reimbursement. Contractor must justify <br />the necessity for the purchase and the reasonableness of the price or cost by submitting three <br />competitive quotations or justifying the absence of bidding. <br />8. Prior approval by the State in writing is required for the location, costs, dates, agenda, <br />instructors, instructional materials, and attendees at any reimbursable training seminar, <br />workshop or conference, and over any reimbursable publicity or educational materials to be <br />made available for distribution. Contractor is required to acknowledge the support of the State <br />whenever publicizing the work under the contract in any media. <br />9. It is understood between the parties that this contract may have been written before ascertaining <br />the availability of appropriation of funds, for the mutual benefit of both parties, in order to <br />avoid program and fiscal delays that would occur if the contracts were executed after that <br />determination was made. <br />10. BUDGET CONTINGENCY CLAUSE - It is mutually agreed that if the Budget Act of the <br />current year and/or any subsequent years covered under this Agreement does not appropriate <br />sufficient funds for the program, this Agreement shall be of no further force and effect. In this <br />event, the State shall have no liability to pay any funds whatsoever to Contractor or to furnish <br />any other considerations under this Agreement and Contractor shall not be obligated to perform <br />any provisions of this Agreement. <br />If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this <br />program, the State shall have the option to either cancel this Agreement with no liability <br />occurring to the State, or offer an agreement amendment to Contractor to reflect the reduced <br />amount. <br />Updated 1/28/15 <br />