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2. USE OF FUNDS. Contractor will use the funds provided under this <br />Agreement solely for the Program purposes described in Exhibits A (Budget), B <br />(Contract Objectives), and C (Environmental Review) attached hereto and by this <br />reference incorporated herein. <br /> <br /> 3. CHANGES TO PROGRAM. No changes in the Program described in this <br />Agreement which are funded by the financial assistance provided under Paragraph 1 <br />will be made without the prior written consent of City. <br /> <br /> 4. PAYMENTS. Contractor will keep detailed and accurate records of all <br />expenditures made and expenses incurred which are funded under this Agreement. <br />Payments of funds allocated pursuant to Paragraph 1 will be made to Contractor on a <br />reimbursement basis as follows: (i) Contractor will submit requests for payment to City <br />quarterly on forms provided by City's Housing Coordinator; (ii) all requests for payment <br />will be accompanied by receipts or other proof of expenditures, and will disclose <br />amounts of Program income, if any, generated by user fees; (iii) Contractor will submit <br />billings over a ten month period. Request for final payment must be submitted and <br />received by the City no later than May 20, 2003 pursuant to Exhibit A; (iv) such income <br />amounts will be subtracted from corresponding requests for payment; and (v) Program <br />income will be expended by Contractor prior to requesting additional reimbursements <br />from City. <br /> <br /> 5. STANDARD OF SERVICE. Contractor warrants to City that it will perform <br />all Program activities funded hereunder in accordance with the highest standards. <br />Further Contractor warrants to City that it will use and account for all funds provided <br />hereunder strictly in accordance with standards governing the use of, and accountability <br />for, funds held and disbursed in trust. Contractor's Program funded hereunder will <br />conform to the highest standards providing for programs of similar or like nature in the <br />San Francisco Bay Area. Contractor will be responsible for, and hold City harmless <br /> <br />1 O/8/02 2 <br /> <br /> <br />