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5 . The LOCAL SPONSOR shall implement the PROJECT and complete said PROJECT upon the terms and conditions set forth in this Agreement and future requisite authorizations and environmental permits. The PROJECT consists of the restoration and maintenance of approximately 7. 1 miles of Atlantic shoreline between FDEP Reference Monuments R17 and R55 . The LOCAL SPONSOR shall develop a detailed Scope of Work for the PROJECT. It is understood and agreed that the detailed Scope of Work shall include a narrative description of each task, a corresponding detailed budget and a project schedule. Written approval of the Scope of Work must be obtained from the Department's Project Manager prior to initiating work. Failure to obtain prior written authorization may result in the forfeiture of all retained funds associated with the scope of work. 6. The DEPARTMENT and the LOCAL SPONSOR agree that the estimated costs of the PROJECT are identified in Table I below: TABLE 1 Task # Eligible Project Tasks Estimated Project Costs Federal DEP Local Total 2 .0 Design and Permitting 2 . 1 Design and Permitting $0 $ 500X01 $ 50 , 0001 $ 550 ,000 TOTAL PROJECT COSTS $0 $ 5009000 $509000 $550 ,000 7. A. The DEPARTMENT's financial obligation shall not exceed the sum of $ 500,000 for this PROJECT or up to 90 .91 percent of the non-federal PROJECT cost, if applicable, whichever is less. The LOCAL SPONSOR agrees that any costs which exceed the estimated PROJECT costs shall be the responsibility of the LOCAL SPONSOR. Any modifications to the estimated TOTAL PROJECT COSTS shall be provided through formal amendment to this Agreement. B . LOCAL SPONSOR shall provide the local match required by Section 3 of Chapter 2004-475 , Laws of Florida, unless such matching requirement is waived or reduced by the Executive Office of the Governor pursuant to the provisions of Chapter 2004-475 , Laws of Florida. LOCAL SPONSOR shall document to the DEPARTMENT any matching funds waiver or reduction upon receipt from the Executive Office of the Governor, unless such waiver has been obtained through the DEPARTMENT. C . The DEPARTMENT shall authorize payments in the amount of 90.91 % of total eligible project costs, subject to the funding limits established herein, on a per invoice basis. IT the LOCAL SPONSOR' s required match percentage (amount) is reduced or waived in its entirety, the payment percentage amount for all eligible costs shall be adjusted accordingly. 8 . The LOCAL SPONSOR shall perform as an independent contractor and not as an agent, representative, or employee of the DEPARTMENT. 9. Paragraph intentionally left blank. 10. As consideration for the eligible work performed by the LOCAL SPONSOR under the terms of this Agreement, the DEPARTMENT shall pay the LOCAL SPONSOR as specified herein. For satisfactory performance, the DEPARTMENT agrees to compensate the LOCAL SPONSOR on a cost reimbursement basis for services rendered. All requests for reimbursement shall be made in accordance with Attachment B (Contract Payment Requirements), attached hereto and made a part hereof, and State guidelines for allowable costs found in the Department of Financial Services' Reference Guide for State Expenditures at http://www.fldfs.com/aadir/reference%5Fguide. The LOCAL SPONSOR shall submit a request for reimbursement of funds on the forms provided as Attachment C (Request For Payment, DEP Agreement No. 071RI , Page 2 of 8