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Section 18.02 Effect of Termination. <br />Termination is the permanent withdrawal of Contractor's authority to obligate previously awarded <br />funds before that authority would otherwise expire or the voluntary relinquishment by Contractor of <br />the authority to obligate previously awarded funds. Contractor's costs resulting from obligations <br />incurred by Contractor after termination of an award are not allowable unless expressly authorized by <br />the notice of termination. Upon termination of this Contract or Program Attachment, as applicable, <br />Contractor shall cooperate with DSHS to the fullest extent possible to ensure the orderly and safe <br />transfer of responsibilities under this Contract or Program Attachment, as applicable, to DSHS or <br />another entity designated by DSHS. Upon termination of all or part of this Contract, Department and <br />Contractor will be discharged from any further obligation created under the applicable terms of this <br />Contract or the Program Attachment, as applicable, except for the equitable settlement of the <br />respective accrued interests or obligations incurred prior to termination and for Contractor's duty to <br />cooperate with DSHS, and except as provided in the Survivability of Terms section of the General <br />Terms Article. Termination does not however, constitute a waiver of any remedies for breach of this <br />Contract. In addition Contractor's obligations to retain records and maintain confidentiality of <br />information will survive this Contract. <br />Section 18.03 Acts Not Constituting Termination. <br />Termination does not include the Department's (1) withdrawal of funds awarded on the basis of <br />Contractor's underestimate of the unobligated balance in a prior period; (2) withdrawal of the <br />unobligated balance at the expiration of the term of a Program Attachment; (3) refusal to extend a <br />Program Attachment or award additional funds to make a competing or noncompeting continuation, <br />renewal, extension, or supplemental award; (4) non - renewal of a contract or Program Attachment at <br />Department's sole discretion; or (5) voiding of a contract upon determination that the award was <br />obtained fraudulently, or was otherwise illegal or invalid from inception. <br />Section 18.04 Termination or Temporary Suspension Without Cause. <br />a) Either Party may terminate this Contract or a Program Attachment, as applicable, with at least <br />thirty (30) calendar days prior written notice to the other Party, except that if Contractor seeks <br />to terminate a Contract or Program Attachment that involves residential client services, <br />Contractor shall give the Department at least ninety (90) calendar days prior written notice <br />and shall submit a transition plan to ensure client services are not disrupted. <br />b) The Parties may terminate this Contract or a Program Attachment by mutual agreement. <br />c) DSHS may temporarily suspend or terminate this Contract or a Program Attachment if funds <br />become unavailable through lack of appropriations, budget cuts, transfer of funds between <br />programs or health and human services agencies, amendments to the Appropriations Act, <br />health and human services consolidations, or any disruption of current appropriated funding <br />for this Contract or Program Attachment. Contractor will be notified in writing of any <br />termination or temporary suspension or of any cessation of temporary suspension. Upon <br />notification of temporary suspension, Contractor shall discontinue performance under the <br />Contract as of the effective date of the suspension, for the duration of the suspension. <br />d) Department may terminate this Contract or a Program Attachment immediately when, in the <br />sole determination of Department, termination is in the best interest of the State of Texas. <br />General Provisions (Core Subrecipient) 2015 (July 1, 2014) 45 <br />