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Washington State 26 Street Medicine Team Pilot Program <br />Health Care Authority HCA Contract #K7759 <br />4.38 TERMINATION <br />4.38.1 Termination for Default <br />In the event HCA determines that Contractor has failed to comply with the terms <br />and conditions of this Contract, HCA has the right to suspend or terminate this <br />Contract. HCA will notify Contractor in writing of the need to take corrective <br />action. If corrective action is not taken within five (5) Business Days, or other time <br />period agreed to in writing by both parties, the Contract may be terminated. HCA <br />reserves the right to suspend all or part of the Contract, withhold further <br />payments, or prohibit Contractor from incurring additional obligations of funds <br />during investigation of the alleged compliance breach and pending corrective <br />action by Contractor or a decision by HCA to terminate the Contract. <br />In the event of termination for default, Contractor will be liable for damages as <br />authorized by law including, but not limited to, any cost difference between the <br />original Contract and the replacement or cover Contract and all administrative <br />costs directly related to the replacement Contract, e.g., cost of the competitive <br />bidding, mailing, advertising, and staff time. <br />If it is determined that Contractor: (i) was not in default, or (ii) its failure to perform <br />was outside of its control, fault or negligence, the termination will be deemed a <br />“Termination for Convenience.” <br />4.38.2 Termination for Convenience <br />When, at HCA’s sole discretion, it is in the best interest of the State, HCA may <br />terminate this Contract in whole or in part by providing ten (10) calendar days’ <br />written notice. If this Contract is so terminated, HCA will be liable only for <br />payment in accordance with the terms of this Contract for services rendered prior <br />to the effective date of termination. No penalty will accrue to HCA in the event the <br />termination option in this section is exercised. <br />4.38.3 Termination for Nonallocation of Funds <br />If funds are not allocated to continue this Contract in any future period, HCA may <br />immediately terminate this Contract by providing written notice to the Contractor. <br />The termination will be effective on the date specified in the termination notice. <br />HCA will be liable only for payment in accordance with the terms of this Contract <br />for services rendered prior to the effective date of termination. HCA agrees to <br />notify Contractor of such nonallocation at the earliest possible time. No penalty <br />will accrue to HCA in the event the termination option in this section is exercised. <br />4.38.4 Termination for Withdrawal of Authority <br />In the event that the authority of HCA to perform any of its duties is withdrawn, <br />reduced, or limited in any way after the commencement of this Contract and prior <br />to normal completion, HCA may immediately terminate this Contract by providing <br />Docusign Envelope ID: 7EC81747-3EF3-474B-9285-ED8CE267229C