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ARTICLE 21. Equipment and SUDPHes In accordance with Health and Safety Code, S 12.053, title to all equipment and supplies pllrchased from funds from this contract shall be in the name of PERFORMING AGENCY throughout the Attachment(s) term(s) or until the Attachment is terminated. Equipment is defined as tangible nonexpendable personal property with an acquisition cost of more than $5,000 and a useful life of more than one year, with the following exceptions: fax machines, stereo systems, cameras, video recorder/players, microcomputers, software, printers, microscopes, oscilloscopes, centrifuges, balances, and incubators. If the unit cost of these exception items is more than $500, they will be considered equipment, shall be approved for purchase by RECEIVING AGENCY, and are considered capital assets for inventory purposes. The acquisition cost is the net invoice unit price of an item of equipment, including the cost of any necessary modifications, attachments, accessories or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Supplies are defined as consumable items necessary to carry out the Attachment including medical supplies, drugs. janitorial supplies, office supplies, patient educational supplies, software, and any items of tangible personal property other than those defined as equipment above. All items of equipment purchased with Attachment funds shall be itemized in the budget. Any changes to the equipment list contained in the budget shall be approved in writing by RECEIVING AGENCY. PERFORMING AGENCY shall submit a written description including complete product specifications and need justification prior to purchasing any item of unapproved equipment. If approved, RECENING AGENCY will notify PERFORMING AGENCY by means of a written amendment or Attachment Change Notice. PERFORMING AGENCY shall maintain a nonexpendable personal property (equipment) inventory and submit an annual cumulative report (TDH Fonn GC-ll) to RECEIVING AGENCY no later than October 15th of each year. PERFORMING AGENCY shall administer a program of maintenance, repair, and protection of assets WIder this contract so as to assure their full availability and usefulness. In the event PERFORMING AGENCY is inderrmified, reimbursed, or otherwise compensated for any loss of, destruction of, or damage to the assets provided under this contract, it shall use the proceeds to repair or replace said assets. If any item of equipment is no longer needed to perform services under the Attachment( s) or becomes inoperable, PERFORMING AGENCY shall request disposition instructions in writing from RECEIVING AGENCY. Upon termination or expiration of applicable Attachment(s) that are not renewed, title to any remaining equipment and supplies purchased from funds under this contract reverts to RECEIVING AGENCY. Title may be transferred to any other party designated by RECEIVING AGENCY. RECEIVlNG AGENCY may, at its option and to the extent allowed by law, transfer the reversionary interest to such property to PERFORMING AGENCY. ARTICLE 22. Contracts with SubreciDients PERFORMING AGENCY may enter into contracts with subrecipients unless restricted or otherwise prohibited in specific Attachment(s). Prior to entering into an agreement equaling $25,000 or twenty-five percent (25%) of an Attachment, whichever is greater, PERFORMING AGENCY shall obtain written approval from RECENING AGENCY. Contracts with subrecipients shall be in writing and include the following: . Name and address of all parties; . A detailed description of the services to be provided; . Measurable method and rate of payment and total amount of the contract; . Clearly defined and executable termination clause; (LGS) GENERAL PROVISIONS 6/2004 Page 13