4. Project Funding and Work Packages
[This Clause 4 explains how the Project will be funded and describes Awardee’s responsibilities for financial record keeping. It also explains CEPI’s rights to terminate or modify funding under certain circumstances, in part related to decisions CEPI may have to make about the priorities for funding among its various activities. Any co-funding by Awardee is described in the Project Budget.]
4.1 Work Packages. The IPDP will be organized into discrete phases, corresponding with the Project Budget. The associated activities, budgets, deliverables and timelines for each phase are set out in work packages (each a “Work Package”).
4.2 Work Package Payments. Payments for each Work Package will be made in US dollars ($) to Awardee’s bank account identified on the Agreement Summary. CEPI will make payments in advance covering the planned activities for the subsequent six (6) month period, and beginning on the Effective Date of the Award.
4.3 Subsequent Tranches. CEPI will pay the initial tranche of funding after receipt of a payment request by Awardee following signature of this Agreement. All subsequent tranches for each Work Package will be paid by CEPI within twenty (20) Business Days after receipt of all of the following: (i) a payment request by Awardee; and (ii) the required IPDP Report (Annex D) and Financial Reports (Annex F), adjusted appropriately for any underspend from any previous payments.
4.4 Payment when there is a Breach. CEPI is not obliged to pay any tranches of funding for any Work Package for so long as Awardee is in breach of a material obligation under this Agreement.
4.5 Delayed Payments. CEPI may delay or condition a payment if:
a. Awardee has not achieved a milestone by the agreed time, unless such delay has been approved by the JMAG;
b. CEPI has been notified that Awardee or any of its Sub-awardees are no longer in compliance with the Warranties under Clause 18 at the time the tranche is requested; or
c. Awardee has not completed the payment request form or submitted satisfactory IPDP Reports and/or Financial Reports.
4.6 No Obligation to Fund Additional Work Packages. CEPI may decide not to proceed with any additional or sequential Work Package if it is not in the best interest of CEPI’s mission. If CEPI decides not to fund additional Work Packages, it will notify Awardee as soon as such a decision is made and will cooperate with Awardee in an appropriate Project wind down.
4.7 Retained Payment. CEPI will retain ten per cent (10%) of the final payment tranche until Awardee submits the final IPDP Report and Financial Report.
4.8 The Awardee will:
a. use award payments only in accordance with the IPDP, agreed Work Package and Project Budget;
b. provide a Financial Report to CEPI regarding its expenditures pursuant to the Project Budget, using the template provided in Annex F; and
c. reimburse CEPI for any funding underspend.