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� � <br /> Page 10 of <br /> PART V <br /> MODIFICATION, SUSPENSION, TERMINATION OR WAIVER OF GRANT <br /> 1. Modification by Operation of Law. 7his Agreement is subject to such <br /> modifications as may be required by changes in state law or regulations. <br /> Any such required modification shall be incorporated into and be part of <br /> this Agreement as fully as if set forth herein. The Department shall <br /> notify the Grantee of any pending implementation of or proposed <br /> amendment to such regulations. <br /> 2. Modifications in Budget. If the Grantee has reason to believe that its <br /> operation for the Grant Period will result in a variance in the grant <br /> amount, the Grantee shall request approval for such budget variations in <br /> writing by registered letter and shall give justifications for the <br /> requested variations. <br /> The Department may approve modification requests, if, in the Department' s <br /> discretion, such is necessary to achieve program objectives. If the <br /> Department approves the modification request, the Grantee will be <br /> notified in writing of the change and effective date. Any modifications <br /> shall nct alter the authorized objectives, activities or deliverables for <br /> the project nor shall it alter the total grant compensation to the <br /> Grantee. Failure of the Grantee to request approval for anticipated <br /> budget variations shall be deemed sufficient reason for the Department to <br /> disallow costs in excess of specific cost category amounts. <br /> 3. Modifications by Department or Grantee. If either the Oepartment or the <br /> Grantee desires to modify the terms of this Agreement, written notice of <br /> the proposed modification shall be given to the other party. No <br /> modification shall take effect unless agreed to in writing by both the <br /> Department and the Grantee, except that if the Department gives the <br /> Grantee notice of a proposed modification without the prior approval of <br /> the Grantee, the failure to object by the Grantee within thirty (30) <br /> calendar days of receipt shall be deemed acceptance by the Grantee and <br /> the proposed modification shall be effective upon the Grantee' s receipt <br /> of the modification. <br /> 4. Suspension by Department. If the Grantee fails to comply with the <br /> special conditions and/or the general terms and conditions of this <br /> Agreement, the Department may, after notice to the Grantee, suspend <br /> the grant and withhold further payments or prohibit the Grantee from <br /> incurring additional obligations of Program Proceeds, pending corrective <br /> action by the Grantee or a decision to terminate in accordance with <br /> provision 7, hereof. . <br /> The Department wi11 determine that a Grantee has failed to faithfully <br /> perform the terms and conditions of the Scope of Work of the project <br /> when: the Department has notified the Grantee in writing of the <br /> existence of circumstances such as repeated failure to submit required <br /> reports, misapplication of Department funds, evidence of fraud and abuse, <br /> - 10 - <br />