Provision Language
6. GRANT PAYMENT AND USE OF FUNDS
6.1 Subject to the terms and conditions of this Agreement, and Biovac’s compliance therewith, MPP will fund Biovac for performing the Funded Project in accordance with the approved budget attached as Annex 6 (“Budget”). The maximum amount hereunder shall not exceed the amount of 286 M ZAR. Subject to Section 10.2, MPP shall have the right to increase or decrease the total amount of the grant in accordance with the needs and the performance of the Funded Project.
6.2 The funds provided under this Agreement are to be spent by Biovac exclusively in accordance with the Budget. Biovac shall have the right to perform Budget revisions on a quarterly basis. Biovac shall request MPP’s prior written approval if there is a variance of +/- 10% between the main budget categories. Any request for Budget modification must include sufficient documentation to justify such request. For the avoidance of doubt, no Budget revision or variance of the Budget categories that is permitted under this Section 6.2 shall result in Biovac spending in excess of the total Grant. Any overspending on Budget will be at the cost of Biovac, unless otherwise agreed between the Parties.
6.3 MPP shall make payments of the grant hereunder on a quarterly basis upon receipt of collectively the following:
(a) the disbursement request from Biovac based on the Project requirements (“Disbursement Request”), plus an estimated rolling advance of one month.
(b) financial report in accordance with this Agreement regarding the previous payment, showing the extent of the previous payment spent in accordance with the Budget.
(c) satisfactory technical report in accordance with Section 4.2.
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6.8 Biovac acknowledges and agrees that the Grant is provided to Biovac solely for the purposes of Biovac performing the activities set out in the Scope of Work. Biovac shall enter into the necessary sub-agreements and perform the necessary administrative activities to ensure the performance of the activities set out in the Scope of Work. Biovac shall not use the Grant to perform activities outside the Scope of Work unless as otherwise agreed to in writing by the Parties.