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<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 law <br />or regulation. <br />D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds bet- <br />ween or among budget categories of Exhibit 8, Budget, without requiring an amendment to this <br />contract, or otherwise requiring Department's prior written approval provided that: <br /> 1. The cumulative dollar amount of alf 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 De- <br /> partment, simultaneously with the submission of Contractor's first Request for Advance Form 270 <br /> following any such transfers made in accordance with this Subsection D. <br />SECTION 17. SUSPENSION <br />Notwithstanding the provisions of Texas Civil Statutes Article 601f, in the event Contractor fails to <br />comply with any term of this contract, Department may, upon written notification to Contractor, sus- <br />pend this contract in whole or in part and withhold further payments to Contractor, and prohibit <br />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 before <br />the date of completion specified in Section 2 of this contract whenever Department determines that <br />Contractor has failed to comply with any term of this contract. Department shall notify Contractor in <br />writing prior to the thirtieth (30th) day preceding the date of termination of such determination; the <br />reasons for such termination; the effective date of such termination; and in the case of partial term- <br />ination, 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 in <br />part, when both parties agree that the continuation of the activities funded under this contract would <br />not produce beneficial results commensurate with the further expenditure of funds; provided that <br />both parties agree, in writing, upon the termination conditions, including the effective date of such <br />termination; and in the case of partial termination, the portion of the contract to be terminated. <br />C. Upon termination or receipt of notice to terminate, whichever occurs first, Contractor shall can- <br />cel, withdraw, or otherwise terminate any outstanding orders or subcontracts related to the perfor- <br />mance of this contract or the part of this contract to be terminated, and shall cease to incur costs <br />thereunder. Department shall not be liable to Contractor or to Contractor's creditors for costs <br />incurred after termination of this contract. <br />D. Notwithstanding any exercise by Department of its right of suspension under Section 17 of this <br />contract, or of early termination pursuant to this Section 18, Contractor shall not' be relieved of any <br />liability to Department for damages due to Department by virtue of any breach of this contract by <br />Contractor. Department may withhold payments to Contractor until such time as the exact amount <br /> Page 7 of 12 <br />