Common use of Research Funds Clause in Contracts

Research Funds. During the Term GRDC must provide to the Research Organisation the Research Funds by way of payments in accordance with this clause 2. The Research Organisation must use the Research Funds for the sole purpose of carrying out the Project in accordance with this Contract. The Research Organisation must not use Research Funds to acquire a Capital Item unless a description of, the details of the need for, and costs of, the Capital Item are included in Item 14 of Schedule 1, or unless it has obtained GRDC’s prior written approval and Item 14 of Schedule 1 has been updated accordingly. Subject to clause 2.3, during the Term GRDC will make a payment associated with a Milestone specified in Item 21 of Schedule 1 to the Research Organisation on acceptance of the Milestone Report in accordance with clause 8.3 of this Contract. GRDC has no obligation to pay the Research Organisation each part of the Research Funds under this Contract unless: the Research Organisation has complied with: all material obligations arising prior to the date of payment under any agreement between the Research Organisation and GRDC; and all of its obligations arising under this Contract, including acceptance of all previous Milestone Reports by GRDC, acting reasonably, and has not been relieved under 21.4 from failure or delay in performance of such obligations; provided that GRDC: will not withhold payment without giving reasonable consideration to any reasons put forward by the Research Organisation for any failure to comply with its obligations; and will identify any payment being withheld under this clause 2.3(a) and provide reasons; GRDC has received sufficient funding in relation to the Financial Year in which the payment is to be made to enable it both to make the payment and to make payments during that Financial Year under all other research agreements entered into by GRDC, provided that if it has not received sufficient funding, GRDC has provided the Research Organisation with at least 3 months’ written notice of reduction in funds or termination in accordance with clause 18.2; and the payment is consistent with, and designed to give effect to, GRDC's Annual Operational Plan and R&D Plan prepared under Part 2 of the PIRD Act, provided that if GRDC relies on clause 2.3(c) to stop payments of the Research Funds: it must promptly notify the Research Organisation that clause 2.3(c) applies; and unless otherwise agreed in writing by the Parties, the Research Organisation must stop performing the Project until GRDC notifies the Research Organisation that GRDC will resume payment of the Research Funds.