1996-112-RES WHEREAS, STATE OF TEXAS IS A FUNDING PARTNER WITH THE COUNTY OF LAMAR AND COP

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14) reduce the eonlIaet fwxling amount for failure to achieve or maintain the proposed level of service, to expend funds appropriately and at a rate which will make full uSe of the award, or to provide services as set out i'1 the contract. IS) take any othcr action which is dcemed appropriate. RECEMNG AGENCY will formally notify the PERFORMING AGENCY in writing when a sanction is imposed with the exception of accelerated monitoring, which may be W1aI1I1ounccd. PERFORMING AGENCY is required to file, within 15 days of receipt of notice, a written response to dIe RECEiVING AGENCY's program/division that sent the notice, acknowledging receipt of such notice and how dIe PERFORMING AGENCY will correct the nO!lcompliance. RECEiVING AGENCY may immediately tenninate or suspend all or part of dIe contract, temporarily or pennanendy withhold cash paymelllS, deny contract renewal or future conlIaet awards. delay contract execution, or amend all or a part of the contract in an emergency by delivering a written notice to a PERFORMING AGENCY by any method stating the reason for the emergency action. The emergency may be a result of dIe PERFORMING AGENCY's noncompliance having a direct adverse impact on dIe public or client healdl or safety, failure to achieve a perfonnance measure, being reimbursed for expenditures which arc not in accordance widl applicable federal or state laws and regulations or the provisions of the contract, or expending funds inappropriately. PERFORMING AGENCY may request a review of the imposition of the following sanctions: termination of all or part of the contract, suspension of all or part of dIe contract, pennancnt withholding of cash payments, denial of contract renewal or future contract awards, and contract amcndment as a result of thc noncompliance. PERFORMING AGENCY must make the request for review in writing to RECEIVING AGENCY widlin fifteen (15) days from the date of notification. ARTICLE 26. Tprmin~tinn In addition to other provisions herein allowing tennination, dus contract shall terminate upon full perfonnance of all requirements contained herein, unless extended in writing, or prior to completion of the contract term, all or a part of this contract may be terminated for any of dIe following reasons: I) Termination in the Best Interest of the State. TIus contract may be terminated by RECEIVING AGENCY at any time when, in dIe sole determination of RECEIVING AGENCY, tennination is in the best interests of the State of Texas. 2) Termination by Agreement. TIus contract may be tenninated, in whole or in part, when both parties mutually agree d,at continuation of the contract would not achieve the objectives and goals of the contract and d,at continuation would not be mutually beneficial. 3) Termination for Cause. RECEIVING AGENCY reservcs dIe right to tenninate this contract, in whole or in part, upon the following conditions: (a) TIle PERFORMING AGENCY makes an assigruncnt for the benefit of its creditors, or admits in writing its inability to pay its debts generally as they become due, or consents to the appoinnnent of a receiver, trustee, or liquidator of dIe PERFORMING AGENCY or of all or any part of its property; if judgment for dIe payment of money in excess of $50,000.00 (which is not covered by insurance) is rendered by any court or governmental body against the PERFORMING AGENCY, and dIe PERFORMING AGENCY does not discharge the judgment or provide for its discharge in accordance widl its terms, or procure a stay of execution thercof within 30 days from the date of entry thereof, and within the 30-day period or a longer period during which execution of the judgment shall have been stayed, appeal therefrom and causc dIe execution dlcrcof to be stayed during such appeal while providing such reserves dlerefore as may be required under generally accepted accounting principles; or a writ or warrant of attac1uncnt or any similar process shall be issued by any court against all or any material portion of dIe property of dIe PERFORMING AGENCY, and such writ (UlS) 1997 GENERAL PROVISIONS - Page 12 (5/96)