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PART IV <br />TERMS AND CONDITIONS <br />1. Termination for Cause. If the Contractor fails to fulfill in a timely and proper manner its <br />obligations under this Agreement, or if the Contractor violates any of the covenants, <br />conditions, agreements, or stipulations of this Agreement, the City shall have the right to <br />terminate this Agreement by giving written notice to the Contractor of such termination <br />and specifying the effective date thereof, which shall be at least five days before the <br />effective date of such termination. In the event of termination for cause, all finished or <br />unfinished documents, data, studies, surveys, drawings, maps, models, photographs <br />and reports prepared by the Contractor pursuant to this Agreement shall, at the option of <br />the City, be turned over to the City and become the property of the City. In the event of <br />termination for cause, the Contractor shall be entitled to receive reasonable <br />compensation for any necessary services actually and satisfactorily performed prior to <br />the date of termination. <br />Notwithstanding the above, the Contractor shall not be relieved of liability to the City for <br />damages sustained by the City by virtue of any breach of contract by the Contractor, and <br />the City may set-off the damages it incurred as a result of the Contractor's breach of <br />contract from any amounts it might otherwise owe the Contractor. <br />2. Termination for Convenience of the City. <br />City may at any time and for any reason terminate Contractor's services and work at <br />City's convenience upon providing written notice to the Contractor specifying the extent <br />of termination and the effective date. Upon receipt of such notice, Contractor shall, <br />unless the notice directs otherwise, immediately discontinue the work and placing of <br />orders for materials, facilities and supplies in connection with the performance of this <br />Agreement. <br />3. Changes. The City may, from time to time, request changes in the services the <br />Contractor will perform under this Agreement. Such changes, including any increase or <br />decrease in the amount of the Contractor's compensation, must be agreed to by all <br />parties and finalized through a signed, written amendment to this Agreement. <br />4. Resolution of Program Non -Compliance and Disallowed Costs. In the event of any <br />dispute, claim, question, or disagreement arising from or relating to this Agreement, or <br />the breach thereof, including determination of responsibility for any costs disallowed as a <br />result of non-compliance with federal, state or TxCDBG program requirements, the <br />parties hereto shall use their best efforts to settle the dispute, claim, question or <br />disagreement. To this effect, the parties shall consult and negotiate with each other in <br />good faith within 30 days of receipt of a written notice of the dispute or invitation to <br />negotiate, and attempt to reach a just and equitable solution satisfactory to both parties. <br />If the matter is not resolved by negotiation within 30 days of receipt of written notice or <br />invitation to negotiate, the parties agree first to try in good faith to settle the matter by <br />mediation administered by the American Arbitration Association under its Commercial <br />Mediation Procedures before resorting to arbitration, litigation, or some other dispute <br />resolution procedure. The parties may enter into a written amendment to this <br />Agreement and choose a mediator that is not affiliated with the American Arbitration <br />Association. The parties shall bear the costs of such mediation equally. If the matter is <br />