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C. Any alterations, additions, or deletions to the terms of this contract which are required by changes <br />in Federal or state law or regulations are automatically incorporated into this contract without written <br />amendment hereto, and shall become effective on the date designated by such law or regulation. <br /> <br />D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds between <br />or among budget categories of Exhibit B, Budget, without requiring an amendment to this contract, or <br />otherwise requiring Department's prior written approval provided that: <br /> <br />1. The cumulative dollar amount of all transfers among direct budget categories is equal to or <br />less than five percent (5%) of the total 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 funded under this contract; <br />and, <br /> <br />3. Contractor submits a budget rewsion report to Department, on a form specified by <br />Department, simultaneously with the submission of Contractor's first request for payment following <br />any such transfers made in accordance with this Subsection D. <br /> <br />SECTION 17. <br /> <br />SUSPENSION <br /> <br />Notwithstanding the provisions of Tex. Gov't Code Ann. Chapter 2251, in the event Contractor fails to <br />comply with any term of this contract, City may, upon written notification to Contractor, suspend this <br />contract in whole or in part and withhold further payments to Contractor, and prohibit Contractor from <br />incurring additional obligations of funds under this contract. <br /> <br />SECTION 18. <br /> <br />TERMINATION <br /> <br />A. City will have the right to terminate this contract, in whole or in part, at any time before the date of <br />completion specified in Section 2 of this contract whenever City determines that Contractor has failed to <br />comply with any term of this contract. City will notify Contractor in writing upon a termination <br />determination, the reasons for such termination, the effective date of such termination, and in the case <br />of partial termination, the portion of the contract to be terminated. <br /> <br />B. Either of the parties to this contract shall have the right to terminate this contract, in whole or in part, <br />when both parties agree that the continuation of the activities funded under this contract would not <br />produce beneficial results commensurate with the further expenditure of funds; provided that both <br />parties agree, in writing, upon the termination conditions, including the effective date of such termination; <br />and in the case of partial termination, the portion of the contract to be terminated. <br /> <br />C. Upon termination or receipt of notice to terminate, whichever occurs first, Contractor shall cancel, <br />withdraw, or otherwise terminate any outstanding orders or subcontracts related to the performance of <br />this contract or the part of this contract to be terminated, and shall cease to incur costs thereunder., City <br />will not be liable to Contractor or to Contractor's creditors for costs incurred after termination of this <br />contract. <br /> <br />D. Notwithstanding any exercise by City of its right of suspension under Section 17 of this contract, or <br />of early termination pursuant to this Section 18, Contractor shall not be relieved of any liability to City for <br />damages due to City by virtue of any breach of this contract by Contractor. City may withhold payments <br />to Contractor until such time as the exact amount of damages due to City from Contractor is agreed <br />upon or is otherwise determined. <br /> <br /> Page 8 of * <br />TCF-PY02 Revised 1 ~15102 Contract ~ <br /> <br /> <br />