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L-1 Expend all grant funds received under this Agreement solely for the purposes of the project. These funds will not be used for lobbying the legislature, the judicial branch, or any state agency, Repay to the DIVISION any and all funds not thus expended. Have an audit of financial operations performed in accordance with the Single Audit Act of 1984 (31 U.S.C. 7501-7) and 45 CFR 1183.26. 1. In the event the SUBGRANTEE expends $300,000 or more in Federal awards in its fiscal year, the recipient must have a single or program -specific audit conducted in accordance with the provisions of OMB Circular A-133, as revised. The Notification of Grant Award indicates the Federal funds awarded through (lie Deparment of State by this agreement. In determining the Federal awards expended in its fiscal year, the recipient shall consider all sources of Federal awards, including Federal funds received from lite Department of$tate. The determination of amounts of Federal awards expended should be in accordance with the guidelines established by OMB Circular A-133, as revised. An audit of the recipient conducted by die Auditor General in accordance with the provisions OMB Circular A-133, as revised will meet the requirements of this part, 2, in connection with the audit requirements addressed in paragraph j. I., the recipient shall fulfill the requirements relative to auditce responsibilities as provided in Subpart C of OMB Circular A-133; as revised. 3. If the recipient expends less than $300.000 in Federal awards in its fiscal year, an audit conducted in accordance with the provisions of OMD Circular A-133, as revised, is not required. In the event that the recipient expends less than $300,000 in Federal awards in its fiscal year and elects to have an audit conducted in accordance with the provisions of OMB Circular A-133, as revised, the cost of the audit must be paid from non -Federal funds (i.e., the cost of such an audit must be paid from recipient funds obtained from other than Federal entities). fhe DIVISION agrees to: a. Provide a grant in accordance with Ute terms of this agreement in the amount and frequency as slated above in consideration of the SUBGRANTE£'s performance hereinunder, and contingent upon funding by the institute of Museum and Library Services. The State ol'Florida's performance and obligation to pay under this agreement is contingent upon an annual appropriation by the Legislature. In the event that tie state or federal funds on which this agreement is dependent are withdrawn, this agreement is terminated and the state has no further liability to the SUBGRANTEE beyond that already incurred by the termination date, In the event of a state revenue shortfall, the total grant ntay be reduced accordingly. b. Provide professional advice and assistance to the SUBGRANTEE as needed, in implementing and evaluating the project. C. Review the project during the grant period to assure that adequate progress is being made toward achieving the project objectives. III. Tice SUBGRANTEE and the DIVISION mutually agree that: a. This instrument embodies tie whole agreement of tie parties. there are no provisions, terms, conditions, or obligations other than those contained herein: and this agreement shall supersede all previous communications, representations, or agreements, either verbal or written, between the parties. No amendment shall be effective unless reduced in writing and signed by the parties. b, The agreetnent is executed and entered into in Ute State of Florida, and shall be construed, performed, and enforced in all respects in accordance with the laws and rules of the State of Florida. Each party shall perform its obligations hereunder in accordance with the terms and conditions of this agreement. C. If any lent or provision of the agreement is found to be illegal and unenforceable, the remainder of the agreement shall retrain in full force and effect and such term or provision shall be deemed stricken. d. No delay or omission to exercise any right, power or remedy accruing to either party upon breach or default by either party under tris Agreement shall impair any such richt, power or remedy of either party, nor shall such delay or omission be construed as a waiver of any such breach or default, or any similar breach or default. e. This agreement shall be terminated by the DIVISION because offailure of the SUBGRANTEE to fulfill its obligations under the agreement in a timely and satisfactory manner unless the SUBGRANTEE demonstrates good cause as to why it cannot fulfill its obligations. Satisfaction of obligations by the SUBGRANTEE shall be determined by the DIVISION based on tie terns and conditions imposed on the SUBGRANTEE in this agreement and compliance with the program guidelines. The DIVISION shall Page 2 of 4