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9.6CostOverruns.CostoverrunsaretheresponsibilityofSubrecipientandmustbebornebySubrecipient.9.7Overpayment.IntheeventthattheaggregateamountofMLE'sinterimprogresspaymentstotheSubrecipientexceedstheallowablereimbursablecostsoftheSubrecipientfortheProject,theSubrecipientagreestorefundtoMLEtheamountpaidinexcessofsuchallowableexpenseswithinthirty(30)daysofSeptember30,2022.9.8OffsetorReduction.TheSubrecipientagreesthatpayment(s)madebyMLEunderthisAgreementshallbesubjecttooffsetorreductionforanyamountspreviouslypaidhereunderthatarefoundbyMLEnottoconstituteallowablecostsunderthisAgreementbasedontheresultsofanauditexamination.Ifsuchdisallowedamountexceedsthepayment(s),theSubrecipientshallpayMLEtheamountofsuchexcesswithin30daysafterwrittennoticeofdisallowedcostsisprovidedbyMLE.9.8.1EntertainmentCosts.Inaccordancewith2CFR200,thecostofamusement,diversion,socialactivities,ceremonials,andcostsrelatingthereto,suchasmeals,lodging,rentals,transpodation,gratuitiesandalcoholicbeveragesarenotallowableexpenses.9.8.2PriorCosts.MLEwillnotreimburseSubrecipientforanycostsincurredpriortotheeffectivedateofthisagreementOctober1,2021.SECTION10:REPRESENTATIONSANDWARRANTIESSubrecipientrepresentsandwarrantstoMLEthat:10.1Subrecipientisalawenforcementagency,dulyorganizedandvalidlyexisting.SubrecipienthasthepowerandauthoritytoenterintoandperformthisAgreement.10.2ThemakingandperformancebySubrecipientofthisAgreement(a)havebeendulyauthorizedbySubrecipient,(b)donotandwillnotviolateanyprovisionofanyapplicablelaw,rule,regulation,ororderofanycourt,regulatorycommission,board,orotheradministrativeagencyoranyprovisionofSubrecipient'scharterorotherorganizationaldocumentand(c)donotandwillnotresultinthebreachof,orconstituteadefaultorrequireanyconsentunderanyotheragreementorinstrumenttowhichSubrecipientispanyorbywhichSubrecipientmaybeboundoraffected.Noauthorization,consent,license,approvalof,orfilingorregistrationwithornotificationtoanygovernmentalbodyorregulatoryorsupervisoryauthorityisrequiredfortheexecution,deliveryorperformancebySubrecipientofthisAgreement,otherthanthosethathavealreadybeenobtained.10.3ThisAgreementhasbeendulyexecutedanddeliveredbySubrecipientandconstitutesalegal,validandbindingobligationofSubrecipientenforceableinaccordancewithitsterms.10.4Subrecipienthastheskillandknowledgepossessedbywell-informedmembersoftheindustry,tradeorprofessionmostcloselyinvolvedinprovidingtheservicesunderthisAgreement,andSubrecipientwillapplythatskillandknowledgewithcareanddiligenœtoperformitsobligationsunderthisAgreementinaprofessionalmannerandinaccordanœwiththehigheststandardsprevalentintherelatedindustry,tradeorprofession;andMLE123-122SubrecipientAgreement-BoatingProgram(FFAGrantAward)Page11of64