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The Sponsor further agrees that it will refrain from entering into any contract of <br />contract modification subject to Executive Order 11246 of September 24, 1965, <br />with a contractor debarred from, or who has not demonstrated eligibility for, <br />Government contracts and federally assisted construction contracts pursuant to <br />the Executive Order and will carry out such sanctions and penalties for violation <br />of the equal opportunity clause as may be imposed upon contractors and subcon- <br />tractors by the administering agency or the Secretary of Labor pursuant to Part II, <br />Subpart D of the Executive Order. In addition, the Sponsor agrees that if it fails <br />or refuses to comply with these undertakings, the administering agency may take <br />any or all of the following actions; Cancel, terminate, or suspend in whole or in <br />part this grant (contract, loan, insurance, guarantee); refrain from extending any <br />further assistance to the Sponsor under the program with respect to which the <br />failure or refund occurred until satisfactory assurance of future compliance has <br />been received from such Sponsor; and refer the case to the Department of Justice <br />for appropriate legal proceedings. <br />Appendix 1 Page. 3 <br />