2004-126-RES AUTHORIZING EXECUTION OF CONTRACT FOR PUBLIC HEALTH SERVICES TDH DOCUMENT NO. 7560022067 A-2005 (ATTACHMENT NO 01) CONTRACT CHANGE NOTICE NO. 01 (ATTACHMENT NO 01A)

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N. Demand repayment from PERFORMING AGENCY; O. Reduce the funding 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 in. the Attachment( s); and P. Impose other remedies provided by law. RECENING AGENCY will formally notify PERFORMING AGENCY in writing when a sanction is imposed (with the exception of accelerated monitoring, which may be unannounced), stating the nature of the sanction(s), the reasons for imposing them, the corrective actions which shall be taken before they will be removed and the time allowed for completing the corrective actions, and the method, if any, of requesting reconsideration of the sanctions imposed. PERFORMING AGENCY is required to file, within fifteen (15) days of receipt of notice, a written response to RECEIVING AGENCY'S program/division that sent the notice, acknowledging receipt of such notice and stating how PERFORMING AGENCY shall correct the noncompliance or demonstrating in writing that the findings on which the sanctions are based are either invalid or do not warrant the sanction(s). If RECENING AGENCY determines that a sanction is warranted, and unless the sanction is subject to review (see Sanction Review Article), RECEIVING AGENCY'S decision is final and PERFORMING AGENCY shall take corrective action. In an emergency, RECENING AGENCY may immediately terminate or suspend all or part of this contract, temporarily or permanently withhold cash payments, deny contract renewal or future contract awards, or delay contract execution by delivering written notice to PERFORMING AGENCY, by any verifiable method, stating the reason for the emergency action. An "emergency" is defined as the following: · PERFORMING AGENCY is noncompliant and the noncompliance has a direct adverse impact on the public or client health or safety. The direct adverse impact may be programmatic or financial, impacting health or safety by failing to provide services, providing inadequate services, providing unnecessary services, or utilizing resources so that the public or clients do not receive the benefits contemplated by the scope of work or performance measures; · PERFORMING AGENCY fails to achieve a performance measure; · PERFORMING AGENCY is paid or requesting payment for expenditures which are not in accordance with applicable federal or state laws and regulations or the provisions of this contract; or · PERFORMING AGENCY is expending ftmds inappropriately. Whether PERFORMING AGENCY'S conduct or inaction is an emergency will be determined by RECEIVING AGENCY on a case-by-case basis and will be based upon the egregious nature of the noncompliance or conduct. ARTICLE 25. Sanction Review PERFORMING AGENCY may request a review of the imposition of the following sanctions: termination of all or part of this contract, suspension of all or part of this contract, permanent withholding of cash payments, reduction of funding or other amendment resulting from noncompliance, and denial of contract renewal or future contract awards. PERFORMING AGENCY shall make the request for review in writing to RECENING AGENCY within fifteen (15) days from the date of notification by providing written notice of the dispute to the person who signed the notification. (Fee-for-Service) GENERAL PROVISIONS 612004 Page 16