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<br /> contract are amended by the provisions of the TCDP Proiect Implementation Manual and any <br /> amendments thereto and may further be amended in the following manner: Department may from <br /> time to time during the period of performance of this contract issue policy directives which serve <br /> to establish, interpret. or clarify performance requirements under this contract. Such policy <br /> directives shall be promulgated by the Director of the TCDP in the form of TCDP issuances, shall <br /> have the effect of qualifying the terms of this contract and shall be binding upon Contractor, as if <br /> written herein, provided however that said policy directives and any amendments to said Manual <br /> shall not alter the terms of this contract so as to release Department of any obligation specified in <br /> Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective date of <br /> said amendments or policy directives. <br /> C. Any alterations, additions, or deletions to the terms of this contract which are required by <br /> changes in Federal or state law or regulations are automatically incorporated into this contract <br /> without written amendment hereto, and shall be come effective on the date designated by such <br /> law or regulation. <br /> D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds <br /> between or among budget categories of Exhibit B, Budget, without requiring an amendment to <br /> this contract, or otherwise requiring Department's prior written approval provided that: <br /> 1. The cumulative dollar amount of all transfers among direct budget categories is equal to <br /> or less than five percent (5%) of the total amount of this contract as specified in Section 4 (C) <br /> herein; <br /> 2. The transfer will not change the scope or objective of the projects funded under this <br /> contract; and <br /> 3. Contractor submits a budget revision report to Department, on a form specified by <br /> Department, simultaneously with the submission of Contractor's first Request for Advance Form <br /> 270 following any such transfers made in accordance with this Subsection D. <br /> SECTION 17. SUSPENSION <br /> Notwithstanding the provisions of Texas Civil Statutes -Article 601 f, in the event Contractor fails to <br /> comply with any term of this contract, Department may, upon written- notification to Contractor, <br /> suspend this contract in whole or in part and withhold further payments to Contractor, and <br /> prohibit Contractor from incurring additional obligations of funds under this contract. <br /> SECTION 18. TERMINATION <br /> A. Department shall have the right to terminate this contract, in whole or in part, at any time <br /> before the date of completion specified in Section 2 of this contract whenever Department <br /> determines that Contractor has failed to comply with any term of this contract. Department shall <br /> notify Contractor in writing prior to the thirtieth (30th) day preceding the date of termination of <br /> such determination; the reasons for such termination; the effective date of such termination; and <br /> in the case of partial termination, the portion of the contract to be terminated. <br /> B. Either of the parties to this contract shall have the right to terminate this contract, in whole or <br /> in part, when both parties agree that the continuation of the activities funded under this contract <br /> would not produce beneficial results commensurate with the further expenditure of funds; provided <br /> that both parties agree, in writing, upon the termination conditions, including the effective date of <br /> Page 7 of 12 <br />