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REIMBURSEMENT CONDITIONS: <br />Subject to the funding limitations of this Agreement, the Division shall reimburse the Recipient on a <br />quarterly basis for the documented costs incurred during the successful completion of the task(s) required <br />by this Agreement. However, the following limitations shall apply: <br />m In any quarter, the Division shall not reimburse the Recipient for an amount that exceeds 40% of <br />the overall amount authorized by this Agreement; and, <br />o The cumulative amount of reimbursement for quarters 1, 2, and 3 shall not exceed 85% of the <br />overall amount authorized by this Agreement. <br />If extraordinary circumstances exist, then the Recipient can request permission from the Division to <br />exceed the 40% cap for a particular quarter. However, under no circumstances shall the cumulative <br />reimbursement amount for quarters 1, 2, and 3 exceed 85% of the overall amount authorized by this <br />Agreement. <br />FINANCIAL CONSEQUENCES: <br />Failure to successfully complete each of the required tasks, as demonstrated by the failure to satisfy the <br />applicable deliverables, shall result in the following penalty: <br />o A 10% reduction of the overall amount authorized by this Agreement. <br />The Division shall apply the penalty each quarter during which the Recipient fails to successfully complete <br />each of the required tasks. During this Agreement, up to four penalties may be imposed; and, each <br />penalty shall be applied cumulatively. <br />If, because of circumstances beyond the Recipient's control, the Recipient is unable to successfully <br />perform a task required by this Agreement, then the Recipient shall notify the Division immediately. If the <br />_Division agrees that the inability to perform was directly due to circumstances beyond the control of the <br />Recipient, then the Division will consider waiving the imposition of a financial consequence. <br />43 <br />P150 <br />