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The Contractor is respon"ible for providing workmen's compensation coverage and unemployment compensation coverage for all of its employees to the extent required by law, 8. Termination of Contractor for Cause A. The State may terminate the contract, in whole or in part for cause, by giving notice to the Contractor of such termination at least five (!5) working days before the effective date of such termination and "pecifying the effectivEl date thereof. Any or all of the following reasons shall constitute cause for the State to terminate the contract. (1) Failure for any reason of the Contractor to fulfill in a timely and proper manner its obligations under the contract and attachments; (2) Sub-mission by the Contractor to the State of reports that are incorrect or incomplete in any material respect; (3) In-effective or improper use of funds provided under Ihis agreement; and, (4) Suspension, reduction, or termination of the grant to the State Linder which this contract is made, or the portion the,reof delegated by this agreement. B. The Contractor may terminate this ract for cause if the Contractor is unwilling or unable to comply with such additional conditions as may be lawfully imposed. The Contractor must give notice to the State of such termination at least five (5) working days before the effective date of such termination and specify the effective date thereof. C. In the event of any termination of the contract, the followin9 will apply: (1) The State will require the Contractor to ensure that adequate arrangements have been made for the transfer of the agency's activities and inventory to anothef Contractor 01" to the State. Inventory shall include client records, supplies, materials, Elquipment, vehicles and other items purchased with ~;tate or federal funds per state and federal procedures, laws and regulations; (2) The Contractor shall be entitled to compensation for any unreimbursed expenses reasonably and necessarily incurred in the satisfactory performance of the contract. Notwithstanding the above, the Contractor shall not be relieved of liability to the State for damages sustained by the State, by virtue of any breach of the agreement by the Contractor, and thll State may withhold any reimbursement to the Contractor for the purpose of set-{)ff until such time as the exact amount of damages due to the State from the Contractor is agrelld upon or otherwise determined. 9. Termination for Convenience of State.. The State may terminate the contract at any time it determines that the purpose of the distribution of funds under the contract would no longer be served by completion of the project. The State shall effect such termination by giving written notice of the termination to the Contractor and specifying the e,ffective date thereof, at least twenty (20) days before the effective date of such termination, Iln that event all materials and documents as described in paragraph 8 above shall, af the option of the State, become its property and the Contractor ~;hall be entitled to receive just and equitable compensation for any satisfactory work completed on such materials and documents. If this contract is terminated due to the fault of the Contractor, paragraph 8 hereof relative to temlination shall apply. 10. Chanqes in SCODe of Services.. The State may, from time to time, request changes in the scope of services of the Contractor to be performed hereunder as set forth in the grant award letter. Such changes in thll scope of services of the Contractor shall be in writing via the issuance of an amended award letter. and shall be incorporated without written amendment to this contract. Any revisions to the scope of services initiated by the Contractor must be approved by the State. Page ...:tof _\L Pag"s