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understands and agrees that all fights, demands and claims to compens n arising under this Contract are <br /> contingent upon receipt of such funds by the State. In the event that such funds or any part thereof are not received <br /> by the State, the State may immediately terminate or amend this Contract. <br /> b) Termination for Cause. If, through any cause, the Contractor shall fail to fulfill in a timely and proper <br /> manner his obligations under this Contract, or if the Contractor shall violate any of the covenants, agreements, or <br /> stipulations of this Contract, the State shall thereupon have the right to terminate this Contract for cause by giving <br /> written notice to the Contractor of such termination and specifying the effective date thereof, at least five (5) days <br /> before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, <br /> surveys,drawings, maps, models, photographs,and reports or other material prepared by the Contractor under this <br /> Contract shall, at the option of the State, become its property, and the Contractor shall be entitled to receive just <br /> and equitable compensation for any satisfactory work completed on such documents and other materials. <br /> Notwithstanding the above, the Contractor shall not be relieved of liability to the State for any damages <br /> sustained by the State by virtue of any breach of the Contract by the Contractor, and the State may withhold any <br /> payments to the Contractor for the purpose of setoff until such time as the exact amount of damages due the State <br /> from the Contractor is determined. <br /> c) Termination for Convenience. The State may terminate this Contract at any time the State determines <br /> that the purposes of the distribution of State CDBG monies under the Contract would no longer be served by <br /> completion of the Project. The State shall effect such termination by giving written notice of termination to the <br /> Contractor and specifying the effective date thereof, at least twenty (20) days before the effective date of such <br /> termination. In that event, all finished or unfinished documents and other materials as described in subparagraph <br /> b above shall,at the option of the State, become its property. If the Contract is terminated by the State as provided <br /> herein,the Contractor will be paid an amount which bears the same ratio to the total compensation as the services <br /> actually performed bear to the total services of the Contractor covered by this Contract, less payments of <br /> compensation previously made: Provided, however,that if less than sixty percent(60%) of the services covered by <br /> this Contract have been performed upon the effective date of such termination, the Contractor shall be reimbursed <br /> (in addition to the above payment) for that portion of the actual out-of-pocket expenses (not otherwise reimbursed <br /> under this Contract) incurred by the Contractor during the Contract period which are directly attributable to the <br /> uncompleted portion of the services covered by this Contract. If this Contract is terminated due to the fault of the <br /> Contractor, Paragraph 18b hereof relative to termination shall apply. <br /> 19. Modification and Amendment. <br /> a) Modification by Operation of law. This Contract is subject to such modifications as may be required by <br /> changes in federal or state law or regulations. Any such required modification shall be incorporated into and be part <br /> of this Contract as if fully set forth herein. - <br /> b) Programmatic or Budaetary Modifications. Contractor shall follow the revision procedures set forth in the <br /> Financial Management Requirements if programmatic or budgetary modifications are desired: <br /> i) The contractor must submit a written request to the Department and obtain prior written approval <br /> from the Department under the following circumstances: <br /> A. unless otherwise specified in the Scope of Services,when cumulative budgetary changes <br /> exceed five (5) percent of the total contract amount or Five Thousand Dollars ($5,000), <br /> whichever is less; <br /> h. when any budget transfers to or between administration budgetary categories are <br /> proposed; <br /> g. when the scope, objective or completion date of the Project changes; <br /> d. when additional or less State funding is needed; <br /> g. when revisions involve the transfer of amounts budgeted for indirect costs to absorb <br /> increases in direct costs; and <br /> Page 5 of 12 Pages <br />