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<br />B. It is understood and agreed by the parties hereto that performances <br />under this contract must be rendered in accordance with the Act, the <br />regulations promulgated under the Act, the assurances and certifications <br />made to Department by Contractor, and the assurances and certifications made <br />to the United States Department of Housing and Urban Development by the <br />State of Texas with regard to the operation of the Texas Emergency Shelter <br />Grants Program. Based on these considerations, and in order to ensure the <br />legal and effective performance of this contract by both parties, it is <br />agreed by the parties hereto that the performances under this contract may <br />be amended in the following manner: Department may from time to time during <br />the period of performance of this contract issue po1icy directives which <br />serve to establish, interpret, or clarify performance requirements under <br />this contract. Such policy directives shall be promulgated by the Executive <br />Director of Department in the form of ESGP issuances, shall have the effect <br />of qualifying the terms of this contract and shall be binding upon <br />Contractor, as if written herein, provided however that said policy <br />directives shall not alter the terms of this contract so as to release <br />Department of any obligation specified in Section 4 of this contract to <br />reimburse costs incurred by Contractor prior to the effective date of said <br />policy directives. <br /> <br />C. Any alterations, additions, or deletions to the terms of this contract <br />which are required by changes in federal or state law or regulations are <br />automatically incorporated into this contract without written amendment <br />hereto, and shall become effective on the date designated by such law or <br />regulation. <br /> <br />D. Notwithstanding subsection A of this Section 17, Contractor may make <br />transfers of funds between or among budget categories of Exhibit B, Budget, <br />without requiring an amendment to this contract, or otherwise requiring <br />Department's prior written approval provided that: <br /> <br />1. The cumulative dollar amount. of all transfers among direct budget <br />categories is equal to or less than five percent (5%) of the total <br />amount of this contract as specified in Section 4(C) herein; <br /> <br />2. The transfer will not change the scope or objective of the projects <br />funded under this contract; and <br /> <br />3. Contractor submits a budget revision report to Department, on a <br />form specified by Department, following any such transfers made in <br />accordance with this subsection D. <br /> <br />Page 8 of 12 <br />