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withdrawn, or discontinued.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