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SECTION 2. AGREEMENT <br />2 1 The District agrees to award Recipient a grant in the total amount of two hundred <br />twenty -five thousand Dollars ($225,000) from 2006 assessment collections. Grant funds shall be <br />used by Recipient solely for the performance of the work described in Exhibit A which is <br />attached hereto and incorporated herein by this reference The District shall pay the grant funds <br />to Recipient in accordance with the District's standard procedures, provided that such funds have <br />been collected and received by the District. <br />2 2 Recipient represents and warrants that it will only use the grant funds for the work <br />described in Exhibit A, which may be amended by the parties pursuant to Paragraph 3 3 of the <br />Agreement. Recipient shall be required to refund to the District that portion of any grant funds <br />which are used for unauthorized work. Further, Recipient agrees to return to the District any <br />grant funds that are not expended or remain after completion of the work covered by this <br />Agreement. <br />2 3 Recipient acknowledges and agrees that the grant funds may only be expended on <br />work which shall be entirely within the District's Jurisdictional boundanes The following <br />municipal entities are not within the District's jurisdictional boundaries Enumclaw, Federal <br />Way Milton, Pacific, and Skykomish Recipient shall be required to refund to the District that <br />portion of any grant funds which are used for work performed outside the District's jurisdictional <br />boundaries <br />2 4 In the event the scope of work authorized by this Agreement includes the use of <br />grant funds to purchase houses located on real property within a flood hazard area, Recipient <br />acknowledges and agrees that grant funds may only be used for such purposes if the houses to be <br />purchased were constructed before floodplain mapping or sensitive areas regulations were in <br />place for that area. Recipient shall be required to refund to the District that portion of any grant <br />funds which are used for unauthorized purposes <br />2 5 Recipient shall be required to provide the District with biannual financial and <br />project progress reports, along with an annual summary report. Financial and project reports <br />shall be due June 30 and November 30 each year The Recipient shall also be required to submit <br />to the District a final report which documents the Recipient's completion of the work in <br />conformance with this Agreement within thirty (30) days after the completion of the work. The <br />final report shall, among other things, summarize the project's successes and shall address the <br />regional benefits accomplished by the work. The final report shall also identify any obstacles or <br />challenges which were encountered during the work, along with general recommendations <br />regarding ways to avoid such obstacles or challenges in the future If requested, Recipient agrees <br />to provide the District with additional financial or progress reports from time to time, at <br />reasonable intervals <br />2 6 Recipient's expenditures of grant funds shall be separately identified in the <br />Recipient's accounting records If requested, Recipient shall comply with other reasonable <br />requests made by the District with respect to the manner in which project expenditures are <br />2 <br />