1996-112-RES WHEREAS, STATE OF TEXAS IS A FUNDING PARTNER WITH THE COUNTY OF LAMAR AND COP

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PERFORMING AGENCY will have full authority to employ, promote, suspend, demote, discharge, and transfer widtin its organization any and all stalC budgelCd personnel funded by Attacluncnt(s) to dlis COOlract provided, however, that any demotion, suspension, or discharge of such state budgelCd employecs will be in accordance with the Due Process Hearing Procedures as set out above. TIle only distinction between state budgetcd and local paid employees is that employees on state budgeted positions receive state benefits and arc subject to certain duties, obligations. and restrictions as stlte employees as contained in state law. One such restriction, as contained in the State Appropriations Act, is that no employee paid on a stalC budgelCd position may receive a salary supplement from any sourCe unless specifically authorized in the Appropriations Act or other Slate law. TIus prohibition includes, but is not limited to, the payment to such employee of a so-called "flat rate. car allowance or travel allowance. Any such travel or per diem to these employees must be on a reimbursement basis. supported by appropriate records, and may not exceed dIe reimbursement for mileage and/or per diem allowed under the Appropriations Act and current state travel regulations. This restriction will apply whether travel funds arc provided in Attaclunent(s) under dtis contract or from any other source. PERFORMING AGENCY will utilize RECEIVING AGENCY's polieies and procedures for hiring and promoting individuals into state budgeted positions funded by dtis contract. Qualifications of any individuals filling these positions will be subject to approval of RECEIVING AGENCY's Bureau of Personnel Management. The purpose of the approval is to ensure that individuals occupying dlese positions meet minimum educational and experience requirements. PERFORMING AGENCY will maintain required records and submit documents necessary to process personnel, payroll, leave and time records, and travel claims on state budgeted positions. PERFORMING AGENCY will be furnished by RECEIVING AGENCY state warrants for salary compensation or travel reimbursement for issuance to employees on state budgeted positions. An independent audit is not required as a condition of this contract if dIe Attaclunent provides assistance through assigrunent of state budgeted positions and no funds arc budgeted for local costs. PERFORMING AGENCY may be reimbursed for local personnel costs or other categories of expense used to fulfill the scope of work of applicable Anachmcnt(s) in lieu of being furnishcd state payroll warrants after a state budgeted position becomes vacant. Reimbursement will not exceed the balance of funds on the state budgeted position after all benefits, obligations, and/or other entitlements are met. PERFORMING AGENCY's Director, or other person(s) authorized elsewhere in this contract, may submit a request for conversion. RECEIVING AGENCY will transmit formal approval and a revised budget to PERFORMING AGENCY to complete dIe conversion if dIe request is granted. PERFORMING AGENCY agrees to defend and indemnify RECEIVING AGENCY for any and all claims and/or judgments taken against any employees, state or local, or against dIe RECEIVING AGENCY, arising out of any claims or cause of action against any such employees, except to the extent that employees on state budgeted positions may be indemnified and the state may be liable for certain acts pursuant to Chapter 104 of the Civil Practice and Remedies Code of Texas and any other applicable law. The PERFORMING AGENCY agrees to indemnify and hold hann1ess.the RECEIVING AGENCY for any and all claims and/or judgments taken against RECEIVING AGENCY by employees of the PERFORMING AGENCY dlat arc funded by the AttacluneOl(s) to dlis contract. ARTICLE 28. Funding P~rticip~tinn Rl'qWt:C.ll1CI1t PERFORMING AGENCY agrees funds provided through this contract will not be used for matching purposes in securing other funding unless otherwise directed or approved by RECEIVING AGENCY. ARTICLE 29. !\nrviv:tl nf Trrmllll Tennination or expiration of dtis eomract for any reason shall not release eiuler party from any liabilities or obligations set forth in this contract tllat (i) Ule parties have expressly agreed shall survive any such termination or expiration, or (ii) remain to be performed or by dleir nature would be intended to be applicable following any such termination or expiration. (UlS) 1997 GENERAL PROVISIONS - Page 14 (5/96)