R98-172 AUTHORIZING GRANT AGREEMENT

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� 2. For Cause. If the Department determines tliat the Grantee has failed to comply :� , ,with any of the terms, conditions or provisions of this Agreement, including any applicable rules or regulations, the Department may terminate this Agreement in whole or in part at any � time before the expiration date of this Agreement. The Department shall notify the Grantee in writing of the reasons for the termination and the effective date of the termination. Grantee shall not incur any costs after the effective date of the termination. Payments made to the � . Grantee or recovery by the Department shall be in accord with the legal rights and liabilities of '� the parties.- - - - -- - - - -- - -- In the event of termination for cause, Grantee shaH also be subject to any other applicable I provisions specified elsewhere in this Agreement. i Termination for cause may render the Grantee ineligible for consideration for future grants from the Depa�tment. , 3. For Convenience. The Department or the Grantee may terminate this Agreement in . whole or in part when the Department and the Grantee agree that continuation of the program objectives would not produce beneficial results commensurate with the further expenditure of funds. The Department and the Grantee shall agree upon termination conditions including the effective date and in the case of partial termination, the portion to be terminated. The Grantee shall not incur new obligations for the terminated portion after the effective date, and shall cancel as many outstanding obligations as possible. The Department shall allow full credit to the Grantee for the Department's share of the non•cancelled obligations, if properly incurred by the Grantee prior to termination. B. Suspension. If the Grantee fails to comply with the specific conditions and/or general te�ms and conditions of this Agreement, the Department may, after written notice to the Grantee, suspend this Agreement, withhold further payments and prohibit the Grantee from incurring additional obligations of grant funds, pending corrective action by the Grantee or a decision to terminate this Agreement. Department may determine to allow such necessary � and proper costs which the Grantee could not reasonably avoid during the period of suspension provided that the Department agrees that such costs were necessary and reasonable and incurred in accordance with the provisions of this Agreement. Section 5.6 INDEMNIFICATION A. Non-governmental entities. The Grantee agrees to indemnify and hold the Department ' and/or the State of Illinois, and its officers, agents, or employees harmless from and against any and all claims, and actions, including but not limited to, attorneys' fees, costs and interest, based upon and arising out of any services performed under this Agreement by the Grantee and its officers, employees, agents, independent contractors, subcontractors, subrecipients, volunteers, or other associates. The Grantee shall further indemnify and hold the Department and/or the State of Illinois and/or its officers, agents and employees harmless from and against any and all liabilities, demands, claims, damages, suits costs, fees ' and expenses incident thereto, for injuries or death to persons and for loss or damage to or destruction of property because of negligence� intentional acts or omissions on the part of ' Grantee, its officers, employees, agents, independent contractors, subcontractors, subrecipients, volunteers or other associates, arising out of any services performed under this Agreement. � -13.