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D. The grant of funds under this Agreement may be terminated for convenience by either the CITY <br /> or SUBRECIPIENT,in whole or in part,by setting forth the reasons for such termination, the effective date, <br /> and, in the case of portion termination, their portion to b terminated, however, if in the case of a partial <br /> termination,the CITY determines that the remaining portion of the award will not accomplish the purpose for <br /> with the award was made,the CITY may terminate the award in its entirety. <br /> 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. In the event this Agreement is terminated as set forth in subparagraphs XII.A. through XII.E., <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 /> XIII. 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 <br /> funding. In the event of funding reduction, CITY may, in its sole and absolute discretion, reduce the budget <br /> of this Agreement as a whole or as to costs category, may limit the rate of SUBRECIPIENT's authority to <br /> commit and spend funds, or may restrict SUBRECIPIENT's use of both its uncommitted and its unspent <br /> funds. Where HUD has directed or requested CITY to implement a reduction in funding,in whole or as to a <br /> cost category, with respect to funding for this Agreement, CITY's City Manager or delegate is authorized to <br /> act for CITY in implementing and effecting such a reduction and in revising, modifying, or amending the <br /> Agreement for such purposes. If such a reduction in funding occurs, SUBRECIPIENT shall be permitted to <br /> de-scope accordingly. Where CITY has reasonable grounds to question SUBRECIPIENT's fiscal <br /> accountability, fmancial soundness, or compliance with this Agreement, CITY may suspend the operation of <br /> this Agreement for up to sixty(60) days upon five(5)days written notice to SUBRECIPIENT of its intention <br /> to so act, pending an audit or other resolution of such questions. In no event, however, shall any revisions <br /> made by CITY affect expenditures and legally binding commitments made by SUBRECIPIENT before it <br /> received notice of such revision, provided that such amounts have been committed in good faith and are <br /> otherwise allowable and that such commitments 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 <br /> parties hereto with respect to the use of CITY's CDBG funds by SUBRECIPIENT and contains all the <br /> covenants and agreements between the parties with respect to such employment in any manner whatsoever. <br /> Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, <br /> orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not <br /> embodied herein, and that no other agreement or amendment hereto shall be effective unless executed in <br /> writing and signed by both CITY 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 /> Page 13 of 15 <br />