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ð'5k ARTICLE ~9. Equipment and Supplies Equipment is defined as tangible nonexpendable property with an acquisition cost of over $1,000 and a useful life of more than one year with the following exceptions: Fax Machines, Stereo Systems, Cameras, Video Recorder/Players, Microcomputers, and Printers. These exception items will still be considered equipment if their unit cost is over $500. In accordance with Health & Safety Code, Section 12.053, title to all equipment and supplies purchased from funds provided herein will be in the name of PERFORMING AGENCY throughout the Attachment(s) term(s). Unless initially listed and approved in the Attachment (s), prior written approval from RECEIVING AGENCY is required for any additions to or deletions of approved equipment purchases meeting the above equipment definition. To receive approval for data processing hardware and software, PERFORMING AGENCY must submit a detailed justification which includes description of features, make and model, and cost, etc. PERFORMING AGENCY will maintain a property inventory listing and submit an annual cumulative report (TDH Form GC-1l) to RECEIVING AGENCY no later than October 15th of each year. PERFORMING AGENCY will administer a program of maintenance, repair, and protection of assets under this Attachment(s) so as to assure their full availabilìty and usefulness. In the event PERFORMING AGENCY is indemnified, reimbursed, or otherwise compensated for any loss of, destruction of, or damage to the assets provided under this Attachment (s), it will use the proceeds to repair or replace said assets. PERFORMING AGENCY agrees that upon termination of Attachment(s) , title to any remaining equipment and supplies purchased from funds as hereinabove provided will be transferred to the RECEIVING AGENCY or any other party designated by the RECEIVING AGENCY; provided, however, that RECEIVING AGENCY ma1{, at its option and to the extent allowed by law, transfer title to such property to the PERFORMING AGENCY. ARTICLE 20. Subcontractinq PERFORMING AGENCY may enter into agreements with subcontractors unless restricted or otherwise prohibited in specific Attachment (s). Subcontracts, if any, entered into by PERFORMING AGENCY will be in writing and subject to the requirements of this contract. Such contractual agreements must be executed on an annual basis and include, at minimum, the following information: 1) name and address of all - parties, 2) well defined scope of work, 3) measurable method and rate of payment, and 4) clearly defined and executable termination clause. It is recommended that subcontracts have beginning and ending dates coinciding with the dates of the applicable contract Attachment(s). PERFORMING AGENCY will pass down audit requirements referenced in Article 10 to subcontractors where appropriate and will maintain records sufficient to ensure that required audits have been completed in accordance with applicable OMB circulars. PERFORMING AGENCY agrees that it will be responsible to RECEIVING AGENCY for the performance of any subcontractor. In addition, if PERFORMING AGENCY elects to enter into an agreement which subcontracts out a substantial portion of PERFORMING AGENCY's Scope of Work, prior written approval must be obtained from RECEIVING AGENCY. ARTICLE 2~. Copvriqhts, Publications, and Patents PERFORMING AGENCY understands and agrees that where activities supported by the contract Attachment(s) produce original books, manuals, films, or other original (lndependmt) 1996 GENERAL PROVISIONS - Page 9 (5/95)