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<br />1. Project Termination <br /> 1. The Director may temporarily suspend State assistance under the project pending <br /> corrective action by the Participant or pending a decision to terminate the grant <br /> by the Department. <br /> 2. The Participant may unilatera1ly terminate the project at any time prior to the <br /> first payment on the project. After the initial payment. the project may be <br /> terminated. modified. or amended by the Participant only by mutual agreement with <br /> the Department. <br /> 3. The Director may terminate the project in whole. or in part. at any time before the <br /> date of completion. whenever it is determined that the Participant has failed to <br /> comply with the conditions of the grant. The Director will promptly notify the <br /> Participant in writing of the determination and the reasons for termination. <br /> together with the effective date. Payments made to the Participant or recoveries <br /> by the Department under projects terminated for cause shall be in accord with the <br /> legal rights and liabilities of the parties. <br /> 4. The Director or Participant may terminate grants in whole, or in part at any time before <br /> the date of completion. when both parties agree that the continuation of the project <br /> would not produce beneficial results commensurate with the further expenditure of funds. <br /> The two parties shall agree upon the termination conditions. including the effective <br /> date and. in the case of partial termination. the portions to be terminated. The <br /> Participant shall not incur new obligations for the terminated portion after the <br /> effective date and shall cancel as many outstanding obligations as possible. The <br /> Department may allow full credit to the Participant for the State share of the <br /> noncancellable obligations, properly incurred by the Participant prior to termination. <br /> 5. Termination either for cause or for convenience requires that the project in question <br /> be brought to a state of recreational usefulness agreed upon by the Participant and <br /> the Director or that all funds provided by the Department be returned. <br /> - 5 - <br />