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<br />TEXAS TRAFFIC SAFETY PROGRAM GRANT AGREEMENT !Z:¡c.. <br />propose to assume the largest percentage of subsequent project costs. Cost Assumption Planning is not <br />applicable to state or Federal Highway Administration funded projects, <br />Certain categories of funds may be exempted by the federal government from the time limit requirement. <br />Unless exempted, all federally-funded agreements are considered to be subject to the time limit provision, <br />Funding support for all state-funded projects will be limited to the term of the agreement. Any extension <br />beyond that time will be negotiated on a case-by-case basis. <br />ARTICLE 3. LIMITATION OF LIABILITY <br />Because funds are authorized on a fiscal year basis only, payment of costs incurred hereunder is contingent <br />upon the availability of funds. 'i . <br />If at any time during the agreement period the Department determines that there is insufficient funding to <br />continue the project, the Department shall so notify the Sub grantee, giving notice of intent to terminate the <br />agreement. Such termination will be conducted in such a manner that will minimize disruption to the <br />Sub grantee and the Department, and as further specified in General Provision G9, Termination, <br />The Sub grantee, if ofuer than a.State agency, shall be responsible for settlement of any and all claims and <br />lawsuits by third parties arising from or incident to the Department's non-payment of the Subgrantee's claim <br />under this agreement. The Sub grantee expressly acknowledges that its responsibility includes the payment of all <br />damages, expenses, penalties, fines, costs, charges, and attorney fees, if the claims or lawsuits are based upon <br />the Department's non-payment of claims submitted under this agreement. The Sub grantee shall defend any suits. <br />brought upon all such claims and lawsuits and pay all costs and expenses incidental thereto, but the Department <br />shall have the right at its option to participate in the defense of any suit, without relieving the Sub grantee of any <br />obligation hereunder. . <br />ARTICLE 4. AGREEMENT AMENDMEl'IITS <br />If at any time during the agreement period the Department determines that additional funds are needed to <br />continue the project and the maximum amount payable is insufficient, a written amendment is to be executed to <br />authorize additional funds, if the Department and the Subgrantee determine to continue project funding. <br />Additionally, any changes in the agreement period, agreement terms or responsibilities or the parties hereto shall <br />be enacted by written amendment executed by both parties. <br />The amendment shall be agreed upon by the parties to this agreement and shall state the change to the mutual <br />satisfaction of the parties. In no event will the agreement period be extended unless a written amendment is <br />execúted before the completion date specified in Article 1. <br />ARTICLE 5. ADDITIONAL WORK <br />If the Subgrantee is of the opinion that any work it has been directed to perform is beyond the scope of this <br />agreement and constitutes additional work, the Subgrantee shall promptly notify the Department in writing. In <br />the event that the Department finds that such work does constitute additional work, the Department shall so <br />advise the Subgrantee and provide compensation for doing this work on the same basis as the origiDal work. If <br />the compensation for the additional work will cause the maximum amount payable to be exceeded, a written <br />amendment will be executed. Any amendment so executed must be approved within the agreement period <br />spe~ified on the cover page to this Grant. <br />Page 4 of 10 7/95 <br />