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- • <br /> ' <br /> • Page 3 • <br /> SERVICE AGREEMENT <br /> IV. AUDITS AND PROCEDURES: As required the Contractor will allow on- <br /> site reviews, audits, and inspections by County/City, State, or Federal staff <br /> and comply with their procedural requirements. Any deviations from Federal <br /> or State guidelines and procedures by either Contractor or County/City must <br /> have bath the State office and FNS PRIOR approval. <br /> • <br /> V. DEFAULT AND TERMINATION: <br /> • (a) Upon default by County/City, Contractor shall determine and <br /> :t receive from County/City the sum due for services rendered. <br /> In the event Contractor shall be required to institute a suit <br /> • <br /> to collect any unpaid service payments due under this service <br /> agreement, Contractor shall be entitled to reasonable attorney's <br /> • • fees set by the Court which shall not be more than-15 per cent <br /> of the service payments so recovered by the Contractor from <br /> County/City. <br /> (b) Upon default by Contractor, County/City shall be entitled to <br /> • <br /> • <br /> • immediate termination of this agreement and, further, to <br /> liquidated damages in an amount equal to the sum of service • <br /> payments made by County/City to Contractor for the first month <br /> of service rendered under this agreement. County/city, however, <br /> is not limited to the amount of liquidated damages if the County/ <br /> City suffers damages in excess of the amount of liquidated <br /> damages determined as herein set forth. In the event County/ <br /> City shall be required to institute a suit to collect any <br /> damages for any amounts due under this agreement, County/ <br /> City shall be entitled to reasonable attorney's fees set <br /> by the Court which shall not be more than 15 per cent of <br /> any amount recovered by County/City from Contractor. <br /> (c) Either party may terminate this agreement by giving to the <br /> other party hereto a written notice of its intention to terminate <br /> this agreement. This agreement shall be considered terminated <br /> upon the date set forth for termination of the agreement which <br /> shall be not less than 60 days from the service and delivery <br /> • of the notice. The parties hereto may agree to an earlier date <br /> of termination of the agreement. Contract may be terminated _ <br /> because of circumstances beyond control of Contractor - such . • <br /> as war, strikes, riot and/or natural disaster. <br /> ;• <br /> VI. SPECIAL PROVISIONS: <br /> ,• (a) It is understood and agreed between the Contractor and the <br /> County/City that the payment of compensation specified in <br /> this agreement, its continuation or any renewal or extension <br /> thereof, is dependent upon and subject to the allocation or <br /> appropriation of necessary funds to the County/City by the <br /> Federal Government and the State of N.C. for the <br /> 1 purposes set forth in this agreement. <br /> ie. • <br />