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40 <br />termination of the subcontract. The subcontract shall also specify that the <br />subcontractor shall obtain prior written approval from the contractor and the <br />CDSS for any unit of equipment that costs in excess of five thousand dollars <br />($5,000). <br />10. The subcontractor shall be reimbursed for travel and per diem expenses only <br />at rates that do not exceed the rates paid to the CDSS's non-represented <br />employees computed in accordance with California Department of Human <br />Resources regulations, California Code of Regulations, Title 2, Division 1, <br />Chapter 3, Subchapter 1. <br />11. The subcontractor agrees to indemnify and hold harmless the State of <br />California, its officers, agents and employees from any and all claims and <br />losses occurring or resulting to any and all contractors, subcontractors, <br />materialmen, laborers and any other person, firm or corporation furnishing or <br />supplying work, services, materials or supplies in connection with the <br />performance of the subcontract, and from any and all claims and losses <br />occurring or resulting to any person, firm or corporation that may be injured or <br />damaged by the subcontractor in the performance of the subcontract. <br />12. For those subcontracts requiring prior approval, the subcontractor shall <br />maintain records for program review, evaluation, audit and/or other purposes <br />and make the records available to agents of the state for a period of five (5) <br />years. <br />13. The provisions of the Nondiscrimination Clause included in the prime <br />contract as specified in the 2 CCR 11105. <br />14. Funding of the subcontract should be made subject to the appropriation and <br />availability of funds from the state. <br />15. All subcontracts should contain a provision that the subcontractor is liable for <br />any audit exception caused by, or as a result of, th e subcontractor's lack of <br />performance as required by the subcontract. <br />16. The subcontract should provide that the subcontractor, its agents, and <br />employees, in the performance of the subcontract, are acting in an <br />independent capacity and not as agents or employees of the contractor. <br />17. Subcontracts for ten thousand dollars ($10,000) or more cannot become <br />effective and binding on either the prime contractor or the subcontractor until <br />approved in writing by the CDSS, and any work performed by the <br />subcontractor prior to the date of such approval shall not be used as a claim <br />against the state. Modifications to any contracts for $10,000 or more shall <br />also not be effective until approved in writing by the CDSS and any work in <br />performance of such modification prior to the date of approval of the <br />modification shall not be used as a claim against the state . Specific approval