2005-114-RES AUTHORIZING DSHS DOCUMENT NO 750022067-2006 (ATTACHMENT NO. 1-PURCHASE ORDER NO. 0000309899), FOR REGIONAL AND LOCAL SERVICES.

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A. Tennination is the permanent withdrawal of PERFORMING AGENCY'S authority to obligate previously awarded funds before that authority would otherwise expire or the voluntary relinquishment by PERFORMING AGENCY of the authority to obligate previously awarded funds. PERFORMING AGENCY costs resulting from obligations incurred by PERFORMING AGENCY after tennination of an award are not allowable unless expressly authorized by the notice of tennination. Tennination does not include: (1) withdrawal of funds awarded on the basis of the PERFORMING AGENCY'S underestimate of the unobligated balance in a prior period; (2) withdrawal of the unobligated balance as ofthe expiration of an Attachment; (3) refusal to extend an Attachment or award additional funds, to make a competing or noncompeting continuation, renewal, extension, or supplemental award; or (4) voiding of a contract upon detcnnination that the award was obtained fraudulently, or was otherwise illegal or invalid from inception. B. Tennination without cause. (I) Either party may terminate this contract with at least ninety (90) days prior written notice to the other party. (2) The parties may terminate this contract by mutual agreement. (3) Either party may terminate this contract with at least thirty (30) days prior written notice to the other party in the event state and/or federal funding for this contract is terminated, limited, suspended, withdrawn, or discontinued. (4) RECEIVING AGENCY may terminate this contract when, in the sole detennination of RECEIVING AGENCY, termination is in the best interest of the State of Texas. C. Termination for cause. (1) Either party may terminate for material breach of this contract with at least thirty (30) days written notice to the other party. (2) RECEIVING AGENCY may terminate this contract, in whole or in part, for breach of contract or for any other conduct that jeopardizes the contract objectives, by giving at least thirty (30) days written notice to PERFORMING AGENCY. Such conduct may include one or more of the following: (a) A court of competent jurisdiction finds that PERFORMING AGENCY bas failed to adhere to any laws, ordinances, rules, regulations or orders of any public authority having jurisdiction; (b) PERFORMING AGENCY fails to communicate with RECEIVING AGENCY or fails to allow its employees or those of its subrecipients to communicate with RECEIVING AGENCY as necessary to the performance of this contract; (c) PERFORMING AGENCY breaches a standard of confidentiality with respect to the services provided under this contract; (d) RECEIVING AGENCY determines that PERFORMING AGENCY is without the personnel or resources to perform under this contract; (e) RECEIVING AGENCY determines that PERFORMING AGENCY, its agent or another representative offered or gave a gratuity (e.g., an entertainment or gift) to an official or employee of RECEIVING AGENCY for the purpose of obtaining a contract or favorable treatment; (I) PERFORMING AGENCY'S management system does not meet the UGMS management standards; or (g) PERFORMING AGENCY appears to be financially unstable. Indicators of financial instability may include one or more of the following: (i) PERFORMING AGENCY fails to make payments; (ii) PERFORMING AGENCY makes an assignment for the benefit of its creditors; (LGS) GENERAL PROVISIONS 6/2004 Page 20