Schedule Part 1

Part 1: The Project

The Project shall consist of the Services (as defined in the Grant Agreement).

Part 2: Payment of Grant

The Grant shall be payable by the Scottish Ministers to the Grantee monthly in line with the anticipated amounts set out in the Annual Budget and on receipt of the associated monitoring information set out in Condition 4.1 of the Offer of Grant.

The total Grant shall be payable over the Grant Period.

The Grantee shall provide a monthly profile of operating costs, revenue and expenditure before the start of each Financial Year via the Annual Budget. Any change to the profiled amounts or to the overall costs of the Project shall be notified to the Scottish Ministers at the earliest opportunity via the various reports required pursuant to Schedule Part 11 (Performance Review and Reporting) of the Grant Agreement and in line with guidance and instruction set out in the annual Budget Allocation and Monitoring Letter.

Each payment shall be for an amount equal to the estimated amount of the Grant required to meet the reasonable and proper costs and expenses of the Grantee in connection with the Project until the next payment is made.

The Scottish Ministers may require explanatory or supplementary material from time to time before or after any payment.

On receipt of the Annual Budget (and any required documentation and information), the Scottish Ministers shall determine the amount of expenditure which they consider the Grantee shall reasonably and properly incur in connection with the Project for the relevant Financial Year. The determination shall be based on the information provided by the Grantee in accordance with inter alia this Schedule and the Grant Agreement. The Scottish Ministers shall use their best endeavours (but shall be under no obligation or duty) to pay the amount determined to the Grantee on the first day of each calendar month, commencing on the Commencement Date.

In order to facilitate the accrual of expenditure of the Grant for the Financial Year the Grantee shall, where appropriate, advise the Scottish Ministers in writing by no later than the tenth working day of April the amount of the Grant actually expended up to and including 31 March.