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Child Care Provider Registration Agreement Page 23 d. You become insolvent or file proceedings in bankruptcy or reorganization under the United States Code; e. You assign or delegate this Agreement and/or any rights thereunder; f. You fail to acquire and maintain all required licenses, insurance policies, bonds, and permits; g. The Department determines that the health, welfare, or safety of children in care is endangered; or, h. The Department finds that you did not report any of the above occurrences. 2. In addition to the rights reserved in this Section, the State reserves the right to terminate this Agreement in whole or in part due to your failure to comply with any terms or conditions of this Agreement, or to make satisfactory progress in performing the Agreement. The Department shall follow all verbal notices of termination with a written formal notice of termination within seven days. The written notice of termination shall contain the grounds upon which the termination is based. 3. Notwithstanding any other provision of this Agreement, this Agreement shall immediately terminate without prior notice upon any default hereunder that affects the health and safety of any child in care. 7.6 EFFECT OF TERMINATION FOR DEFAULT 1. The termination of this Agreement for default applies to you and the officers, directors, members, or partners of the Provider Principals. In addition, these Provider Principals, as well as employees of the Provider who engaged in the behavior that led to the default or who failed to comply with any provisions of this Agreement, may be disqualified from future participation as a contracted child care provider. 2. The Department may also choose not to contract with any Provider that has any employment relationship with the Provider Principals, their family members, or employees, or if any of them or any entities in which any of the Provider Principals have any interest, has an interest in, ownership, or control of the new provider. 3. The Department will consider the degree of the relationship with the Provider and the Provider Principals of a family member, employee, business associate, or business entity in determining whether to refuse to contract with a Provider. 4. If the Department terminates this Agreement under this Subsection, the Department will not reimburse you for any services delivered subsequent to the date of termination. If the Department has already reimbursed you for services after the date of termination, you agree to promptly reimburse the Department. You shall be entitled to receive reimbursement for authorized services that are delivered before the effective date of the termination. 5. Any termination of this Agreement by the State shall be without penalty or further obligation of the State. 7.7 SUSPENSION OR DEBARMENT The State may, by written notice to you, immediately terminate this Agreement if the Department determines that you have been debarred, suspended or otherwise lawfully prohibited from participating in any public procurement activity, including, but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body. 7.8 GRATUITIES The State may, by written notice to you, immediately terminate this Agreement if the Department determines that employment or a gratuity was offered or made by you or your representative to any officer or employee of the State for the purpose of influencing or securing the Agreement, an amendment to the Agreement, or favorable treatment concerning the Agreement, including the making of any determination or decision about contract performance under the Agreement. CCA-1210B (4-16) – Arizona Department of Economic Security