1997-137-RES WHEREAS, CITY COUNCIL DID HERETOFORE ON THE 14TH DAY OF APRIL 1997

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any subcontract hereunder, and 2) any claim against Contractor, the cost and expense of which Contractor may be entitled to be reimbursed by Department. Except as otherwise directed by Department, Contractor shall furnish immediately to Department copies of all pertinent papers received by Contractor with respect to such action or claim. SECTION 16. CHANGES AND AMENDMENTS A. Except as specifically provided otherwise in this contract, any alterations, additions, or deletions to the terms of this contract shall be by amendment hereto in writing and executed by both parties to this contract. B. It is understood and agreed by the parties hereto that performances under this contract must be rendered in accordance with the Act, the Regulations, the assurances and certifications made to Department by Contractor, and the assurances and certifications made to the United States Department of Housing and Urban Development by the State of Texas with regard to the operation of the Texas Community Development Program. Based on these considerations, and in order to ensure the legal and effective performance of this contract by both parties, it is agreed by the parties hereto that the performances under this contract are amended by the provisions of the TCDP Project Implementation Manual and any amendments thereto and may further be amended in the following manner. Department may from time to time during the period of performance of this contract issue policy directives which serve to establish, interpret, or clarify performance requirements under this contract. Such policy directives shall be promulgated by the Director of the TCDP in the form of TCDP issuances, shall have the effect of qualifying the terms of this contract and shall be binding upon Contractor, as if written herein, provided however that said policy directives and any amendments to said Manual shall not alter the terms of this contract so as to release Department of any obligation specified in Section 4 of this contract to reimburse costs incurred by Contractor prior to the effective date of said amendments or policy directives. C. Any alterations, additions, or deletions to the terms of this contract which are required by changes in Federal or state law or regulations are automatically incorporated into this contract without written amendment hereto, and shall become effective on the date designated by such law or regulation. D. Notwithstanding Subsection A of this Section 16, Contractor may make transfers of funds between or among budget categories of Exhibit B, Budget, without requiring an amendment to this contract, or otherwise requiring Department's prior written approval provided that: 1. The cumulative dollar amount of all transfers among direct budget categories is equal to or less than five percent (5 %) of the total amount of this contract as specified in Section 4 (C) herein; 2. The transfer will not change the scope or objective of the projects funded under this contract; and 3. Contractor submits a budget revision report to Department, on a form specified by Department, simultaneously with the submission of Contractors first request for payment following any such transfers made in accordance with this Subsection D. SECTION 17. SUSPENSION Notwithstanding the provisions of TEX. GOVT. CODE ANN. Chapter 2251, in the event Contractor fails to comply with any term of this contract, Department may, upon written notification to Contractor, suspend this contract in whole or in part and withhold further payments to Contractor, and prohibit Contractor from incurring additional obligations of funds under this contract. Page 7 of 12