SANTA ANA WATERSHED PROJECT AUTHORITY

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Grant Agreement No. 4600011889 Page 4 of32 a) Substantial breaches of this Grant Agreement, or any supplement or amendment to it, or any other agreement between Grantee and State evidencing or securing Grantee's obligations. b) Making any false warranty, representation, or statement with respect to this Grant Agreement or the application filed to obtain this Grant Agreement. c) Failure to operate or maintain project(s) in accordance with this Grant Agreement (Paragraph 16). d) Failure to make any remittance required by this Grant Agreement. e) Failure to comply with Labor Compliance Program requirements (Paragraph 14). f) Failure to submit timely progress reports. g) Failure to routinely invoice State. h) Failure to meet any of the requirements set forth in Paragraph 11, "Continuing Eligibility." Should an event of default occur, State shall provide a notice of default to the Grantee and shall give Grantee at least ten (10) calendar days to cure the default from the date the notice is sent via first-class mail to the Grantee. If the Grantee fails to cure the default within the time prescribed by the State, State may do any of the following: 1) Declare the funding be immediately repaid, with interest, at the California general obligation bond interest rate at the time the State notifies the Grantee of the default. 2) Terminate any obligation to make future payments to Grantee. 3) Terminate the Grant Agreement. 4) Take any other action that it deems necessary to protect its interests. In the event State finds it necessary to enforce this provision of this Grant Agreement in the manner provided by law, Grantee agrees to pay all costs incurred by State Including, but not limited to, reasonable attorneys' fees, legal expenses, and costs. 11. CONTINUING ELIGIBILITY Grantee must meet the following ongoing requirement(s) to remain eligible, to receive State funds: a) An urban water supplier that receives grant funds governed by this Grant Agreement shall maintain compliance with the Urban Water Management Planning (UWMP) Act (Water Code § 10610 et seq.) and Sustainable Water Use and Demand Reduction, Part 2.55 of Division 6 (Water Code § 10608 et seq.) by doing the following: 1) Have submitted their 2015 UWMP and had it deemed consistent by DWR. For more information, visit the following website: htta//www.water ca o—v- rbagWatermanaaament. 2) By July 1, 2016, all urban water suppliers must have submitted documentation that demonstrates they are meeting the 2015 interim GPCD target. If not meeting the interim target, also include a schedule, financing plan, and budget for achieving the gallons per capita per day (GPCD) target, as required pursuant to Water Code § 10608.24. Starting June 30, 2017, those urban water suppliers that did not meet their 2015 GPCD target must also submit, by June 30, annual reports that include a schedule, financing plan, and budget for achieving the GPCD target (Water Code § 10608.24). b) An agricultural water supplier receiving grant funding must: