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SECTION 9. Periodic Payments: Funds to be paid by the City as provided in Section <br /> 3 above shall be released to the Nonprofit in two payments. The first payment of 85%, shall <br /> be released following the execution of this contract. The second payment of 15% shall be <br /> released following the City's analysis of the event evaluation report received as set out in <br /> Section 8 above, except that following a notice to Nonprofit by City of an insufficiency in the <br /> report or a default under this Contract, funds shall not be released unless and until such time <br /> as the insufficiency or default is remedied, as determined by the City in its discretion. First <br /> payment shall be in the amount of $85,000.00. The second payment shall be in the amount of <br /> $15,000 which will be reduced such that they do not exceed 50% of the Nonprofit's reported <br /> qualifying expenditures and/or did not spend 15% of the grant for paid advertising as set out <br /> in Section 4. <br /> SECTION 10. Monitoring of Performance: The Nonprofit agrees to allow the City or <br /> their designee, to inspect, at City's request, and with advance notice to the Nonprofit, all <br /> pertinent records, files, information or other written material maintained by the Nonprofit or its <br /> subcontractors and related to the subject matter of this Contract. Any failure by the Nonprofit <br /> to provide such records as requested by the City in a timely manner may be deemed by the <br /> City to be in breach of this Contract by the City. Notwithstanding the foregoing requirements <br /> of this Section, the City acknowledges that the Nonprofit may redact or withhold such <br /> information that is deemed confidential by law unless any such confidentiality laws permit <br /> disclosure to the City and such records are pertinent to the City's evaluation of the <br /> performance of the Nonprofit under this Contract. <br /> SECTION 11. Sub-Contracts: No part of this Contract may be subcontracted to any <br /> other person, corporation, entity, organization or association without the prior written consent <br /> of the City to such sub-contractor and to the terms and conditions of any such sub-contract. <br /> SECTION 12, Political Activity: The Nonprofit agrees not to use any of the funds <br /> under this contract for any political activity, including any activity to further the election or <br /> defeat of any candidate for public office or any activity undertaken to influence the passage, <br /> defeat or final content of legislation. <br /> SECTION 13. Compliance With Laws: The Nonprofit agrees to comply with all <br /> applicable laws, ordinances, codes and regulations of the local, state and federal governments <br /> including but not limited to those laws, ordinances, codes and regulations pertaining to equal <br /> employment opportunity and those pertaining to discrimination against participants. <br /> SECTION 14. Breach of Contract: <br /> A. If the City Manager of the City determines that the activities as described in this <br /> agreement are not being carried out as approved by the City or that the Nonprofit is in breach <br /> of any of the terms of this Contract, the City Manager shall notify the Nonprofit in writing of <br /> the deficiency. The Nonprofit shall have ten (10) working days from the date of the notice to <br /> correct or satisfy the deficiency. <br /> B. If the deficiency is not appropriately corrected or satisfied in the opinion of the <br /> City Manager within the prescribed time, notice may be given to Nonprofit that its funding will <br /> 3 <br />