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E. The grant of funds under this Agreement may be terminated due to the non-performance of <br />SUBRECIPIENT and/or failure of SUBRECIPENT to perform the work described in Exhibits A and B or <br />failure to meet the performance standards and program goals set forth therein. <br />F. The grant of fiords under this Agreement maybe terminated due to the failure ofthe CITY to receive <br />sufficient or anticipated funding from HUD for the CDBG program for any year term subject to this Agreement. <br />G. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.F., <br />inclusive, SUBRECIPIENT agrees to immediately return to CITY upon CITY's demand and prior to any <br />adjudication of SUBRECIPIENT's rights, any and all funds not used, and to comply with paragraph "XI. <br />REVERSION OF ASSETS" of this Agreement. <br />XIIL LIMITATION OF FUNDS . <br />The United States of America, through HUD, may in the future place programmatic or fiscal <br />limitations on the use of CDBG funds which limitations are not presently anticipated. Accordingly, CITY <br />reserves the right to revise this Agreement in order to take account of actions affecting HUD program funding. <br />In the event of funding reduction, CITY may, in its sole and absolute discretion, reduce the budget of this <br />Agreement as a whole or as to costs category, may limit the rate of SUBRECIPIENT's authority to commit and <br />spend funds, or may restrict SUBRECIPIENT's use of both its uncommitted and its unspent funds. Where <br />HUD has directed or requested CITY to implement a reduction in funding, in whole or as to a cost category, <br />with respect to funding for this Agreement, CITY's City Manager or delegate is authorized to act for CITY in <br />implementing and effecting such a reduction and in revising, modifying, or amending the Agreement for such <br />purposes. If such a reduction in funding occurs, SUBRECIPIENT shall be permitted to de -scope accordingly. <br />Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal accountability, financial soundness, <br />or compliance with this Agreement, CITY may suspend the operation of this Agreement for up to sixty (60) <br />days upon five (5) days written notice to SUBRECIPIENT of its intention to so act, pending an audit or other <br />resolution of such questions. In no event, however, shall any revisions made by CITY affect expenditures and <br />legally binding commitments made by SUBRECIPIENT before it received notice of such revision, provided <br />that such amounts have been committed in good faith and are otherwise allowable and that such commitments <br />are consistent with HUD cash withdrawal guidelines. <br />XIV. EXCLUSIVITY AND AMENDMENT OF AGREEMENT <br />This Agreement supersedes any and all other agreements, either oral or in writing, between the parties <br />hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the covenants and <br />agreements between the parties with respect to such employment in any manner whatsoever. Each party to this <br />Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, <br />have been made by any party, or anyone acting on behalf of any party, which are not embodied herein, and that <br />no other agreement or amendment hereto shall be effective unless executed in writing and signed by both CITY <br />and SUBRECIPIENT. <br />XV. LAWS GOVERNING THIS AGREEMENT <br />This Agreement shall be governed by and construed in accordance with the laws of the State of <br />California, and all applicable federal laws and regulations. <br />XVI. CLOSE-OUT <br />The SUBRECIPIENT agrees to comply with the closeout procedures detailed in 2 CFR §200.343, <br />including the following: <br />14 <br />