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Article 44. TERMINATION FOR CONVENIENCE OF STATE <br />(a) The performance of work under this Contract may be terminated, in whole or from time to time in <br />part, bythe State whenever for any reason the Principal Representative shall determine that such <br />termination is in the best interest of the State. Termination of work hereunder shall be effected by <br />delivery to the Contractor of a Notice of Termination specifying the extent to which performance of <br />work under the Contract is terminated and the date upon which such termination becomes effective. <br />(b) After receipt of the Notice of Termination the Contractor shall cancel his outstanding commitments <br />hereunder covering the procurement of materials, supplies, equipment and miscellaneous items. <br />In addition, the Contractor shall exercise all reasonable diligence to accomplish the cancellation or <br />diversion of his outstanding commitments covering personal services and extending beyond the <br />date of such termination to the extent that they relate to the performance of any work terminated <br />by the Notice. With respect to such canceled commitments the Contractor agrees to: <br />(1) settle all outstanding liabilities and all claims arising out of such cancellation of <br />commihnents, with approval or rafrfication of the Principal Representative, to the extent he <br />may require, which approval or rat'rfication shall be final for all purposes of this clause, and <br />(2) assign to the State, in the manner, at the time, and to the extent directed by the Principal <br />Representative, all of the right, title, and interest of the Contractor under the order; and <br />subcontracts so terminated, in which case the State shall have the right, in its discretion, to <br />settled or pay any or all claims arising out of the termination of such orders and <br />subcontracts. <br />(c) The Contractor shall submit his termination claim to the Principal Representative promptly after <br />receipt of a Notice of Termination, but in no event later than ninety (90) days from the effective date <br />of termination, unless one or more extensions in wrfing are granted by the Principal Representative <br />upon written request of the Contractor within such one year period or authorized extension thereof. <br />Upon failure of the Contractor to submit his termination claim within the time allowed, the Principal <br />Representative may determine, on the basis of information available to him, the amount, if any, due <br />to the Contractor by reason of the termination and shall thereupon pay to the Contractor the amount <br />so determined. <br />(d) Costs claimed, agreed to, or determined pursuant to (c) above and (e) below shall be in accordance <br />with the provisions of ARTICLE 107 (COST PRINCIPLES) of the Colorado Procurement Code and <br />Rules as in effect on the date of this Contract. <br />(e) Subject to the provisions of paragraph (c) above, the Contractor and the Principal Representative <br />may agree upon the whole or any part of the amount or amounts to be paid to the Contractor by <br />reason of the termination under this clause, which amount or amounts may include any reasonable <br />carxellation charges thereby incurred by the Contractor and any reasonable loss upon outstanding <br />commitments for personal services which he is unable to cancel; provided, however, that in <br />connection with any outstanding comm'dments for personal services which the Contractor is unable <br />to cancel, the Contractor shall have exercised reasonable diligence to divert such commttments to <br />his other activtties and operations. Any such agreement shall be embodied inan amendment to this <br />Contract and the Contractor shall be paid the agreed amount. <br />(f) The State may from time to time, under such terms and conditions as it may prescribe, make partial <br />payments against costs incurted by the Contractor in connection with the termination portion of this <br />Contract, whenever, in the opinion of the Principal Representative, the aggregate of such payments <br />is within the amount to which the Contractor will be entitled hereunder. <br />Colorado Division of Minerals & Geology GENERAL BID SPECIFICATIONS <br />1996 Page 16 <br />