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IX. TERMINATION OF AGREEMENT FOR INADEQUACY OF FUNDS It is agreed that in the event appropriations to the North Dakota Highway Patrol are not obtained and continued at a level sufficient to allow for payments to the Local Entity, for the services identified in Paragraph II, the obligations of each party hereunder may be terminated at the option of the Department, provided that any such termination shall be without prejudice to any obligations or liabilities of either party already accrued prior to such termination. X. INDEMNITY The Department and Local Entity each agrees to assume its own liability for any and all claims of any nature, including all costs, expenses, and attorneys' fees, which may in any manner result from or arise out of this agreement. XI. ACCESS TO BOOKS AND RECORDS The state, federal government, and their duly authorized representatives shall have access to the books, documents, papers, and records of the Local Entity, which are pertinent to the services provided under this agreement for the purpose of making an audit, examination, or making excerpts and transcripts. This documentation shall be available fora period of three (3)years from the date of submission of the final expenditures report. XII. NOTICE Any notice required or permitted to be given pursuant to this agreement may be personally served on either party by the party giving such notice, or may be served by certified mail, return receipt requested, addressed to the executive office of the party upon whom service is made. XIII. INTEGRATION AND MODIFICATION This contract constitutes the entire agreement between the Local Entity and the Department. No alteration, amendment, or modification in the provisions of this agreement shall be effective unless it is reduced to writing, signed by the parties and attached hereto. XIV. COLLATERAL CONTRACTS Where there exists any inconsistency between this agreement and other provisions of collateral contractual agreements which are made a part of this agreement by reference or otherwise, the provisions of this agreement shall control. XV. APPLICABLE LAW This agreement shall be governed by and construed in accordance with the laws of the State of North Dakota. XVI. CONFIDENTIAL INFORMATION The Local Entity agrees not to use or disclose any information it receives from the Department . under this agreement that is confidential or exempt from mandatory public disclosure except as necessary to carry out the purposes of this agreement or as authorized in advance by the Department. The Department agrees not to disclose any information it receives from the Local Entity which the Local Entity has previously identified as confidential and which the Department determines in its sole discretion is protected from mandatory public disclosure under a specific exception to the North Dakota open records law, North Dakota Century Code 44-04-18. The duty -3-