Common use of Termination or Suspension for Cause Clause in Contracts

Termination or Suspension for Cause. In the event that ESD determines the Grantee has failed to comply with the conditions of Agreement in a timely manner, ESD has the right to suspend or terminate this Agreement. Before suspending or terminating this Agreement, ESD may, at its sole discretion, notify the Grantee in writing of the need to take corrective action. If corrective action is not taken the Agreement may be terminated or suspended. In the event of termination or suspension, the Grantee shall not obligate any additional funds under this Agreement and may be liable for additional remedies to ESD, including but not limited to, the repayment of disallowed costs. ESD reserves the right to suspend all or part of this Agreement, withhold further payments, or prohibit the Grantee from incurring additional obligations of funds during investigation of the alleged compliance breach and pending corrective action by the Grantee or a decision by ESD to terminate this Agreement. A termination shall be deemed to be a “Termination for Convenience” if it is determined that the Grantee: (1) was not in default; or (2) failure to perform was outside of his or her control, fault or negligence. The rights and remedies of the Agency provided in this Agreement are not exclusive and are in addition to any other rights and remedies provided by law. ESD reserves the right to immediately suspend all, or part of, this Agreement, and to withhold further payments, or to prohibit the Grantee from incurring additional obligations of funds when it has reason to believe that fraud, abuse, malfeasance, misfeasance or nonfeasance has occurred on the part of the Grantee under this Agreement.