Provision Language
3. Grant Payments
3.1 Grant for the Project. Subject to the terms and conditions of this Agreement, and SAMRC’s compliance therewith, MPP will fund SAMRC for performing the Project in accordance with the approved budget attached as Attachment 2 provided however that MPP shall not be funding the totality of the said Budget and its funding shall be limited to the maximum amount defined herein (“Budget”). The maximum amount hereunder shall not exceed the amount of 26.6 million South African Rands (ZAR). Subject to Section 11.2 “Grant Reduction”, 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 Project.
3.2 Budget. The funds provided under this Agreement are to be spent by SAMRC exclusively in accordance with the Budget. The Parties shall have the right to perform Budget revisions on a bi–annual basis. SAMRC shall:
(i) have the right to make adjustment of +/- 15% between the Budget’s categories; and
(ii) request MPP’s prior written approval if there is a variance of +/- 5% versus annual amounts set out in the Budget funded by MPP. Any request for Budget modification must include sufficient documentation to justify such request.
3.3 Disbursement Request. MPP shall make payments of the grant hereunder on a bi–annual basis upon receipt of collectively the following:
a. the disbursement request from SAMRC 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 5 herebelow.
Save therefore that in relation to the 1st payment the SAMRC shall not be required to deliver the documents referred to at (b) and (c) above.
3.4 Payments. MPP shall pay the amounts in accordance with each Disbursement Request within 30 days from its receipt via a bank transfer to the SAMRC account set forth in Attachment 2.
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4. Use of Funds
4.1. SAMRC acknowledges and agrees that the grant hereunder is provided for non–commercial purposes only. During the term of this Agreement, SAMRC shall use the Funds for the execution of the Project and the activities set out on the Scope of Work attached hereto. As such, the SAMRC shall enter into the necessary sub–agreements and perform the necessary administrative activities to ensure that the activities listed in the Scope of Work are funded and executed.
4.2. During the Project term, SAMRC and / or the sub–grantees funded hereunder with MPP funds through SAMRC shall use the equipment, materials or goods, purchased or generated with the grant provided hereunder, for the purpose of the Project. Any other use of the equipment, materials or goods, purchased or generated shall be restricted to not–for–profit, academic use and shall not interfere with, compete with or delay the activities funded hereunder (with documentary evidence upon MPP’s request).
4.3. Title to any equipment, materials or goods purchased or generated with the MPP grant provided hereunder shall vest in SAMRC and / or sub–grantee(s), as applicable, during the Project provided SAMRC and / or sub–grantee(s) uses such in accordance with Section 4.2. Upon completion of the Project or termination of this Agreement, if SAMRC and / or sub–grantee(s) wishes to:
a. use any equipment, goods or materials purchased through this grant for commercial purposes; or
b. either sell, donate or otherwise transfer the said equipment, goods or materials,
SAMRC and / or sub–grantee(s) shall request a prior written consent from MPP. Should MPP provide such consent, SAMRC agrees and/or shall procure that the sub–grantee(s) agrees to reimburse MPP for fair market value of such commercial use. SAMRC and / or sub–grantee(s) may upon completion of the Project or termination of this Agreement (except in case of termination pursuant to Section 11.3 hereof) use any equipment, goods or materials purchased through this grant for not–for–profit, academic purposes.