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<br />Agreement No.55080 <br /> <br />SECTION 3 - LEGAL AUTHORITY <br /> <br />3.1 The Subrecipient represents and guarantees that it possesses the legal authority <br />to enter into this Agreement, receive funds authorized by this Agreement, and <br />conduct the Statement of Work. <br /> <br />3.2 The person signing this Agreement on behalf of Subrecipient hereby warrants <br />that he/she has been fully authorized by Subrecipient to execute this Agreement <br />on behalf of Subrecipient and to legally bind Subrecipient to all the terms, <br />performances and provisions herein set forth. <br /> <br />SECTION 4 - RELATIONSHIP OF THE PARTIES <br /> <br />The relationship of the parties is that of independent contractors, and not as agents of <br />each other or as joint venturers or partners. <br /> <br />SECTION 5 - AGREEMENT PERFORMANCE <br /> <br />The Subrecipient shall provide the services specified in its attached Statement of Work, <br />and the terms and conditions imposed and required by this Agreement. <br /> <br />SECTION 6 - AGREEMENT OBLIGATIONS <br /> <br />6.1 Measure of Liability <br /> <br />In consideration of Subrecipient's full and satisfactory performance of the services <br />specified in the attached Statement of Work, TEEX shall be liable to the Subrecipient in <br />an amount equal to the actual allowable costs incurred by the Subrecipient in rendering <br />such performance, subject to the following limitations: <br /> <br />6.1.1 TEEX shall not be liable for expenditures made in violation of the legal <br />authorities cited in Section 8, Compliance with the Law, of this Agreement, <br />or any other law or regulation applicable to the specific project or service <br />performed under this Agreement. <br /> <br />6.1.2 Except as otherwise provided by this Agreement, TEEX shall be liable to <br />Subrecipient in an amount equal to the actual allowable costs incurred by <br />Subrecipient in rendering required performance as represented in Section <br />5, Agreement Performance. <br /> <br />6.1.3 Except as otherwise specifically authorized by TEEX in writing, TEEX shall <br />only be liable for expenditures made in compliance with the cost principles <br /> <br />2 <br />