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IX. <br /> <br />XI. <br /> <br />in the judgment of the manner and means of carrying out the Vendor's activities and <br />responsibilities under this agreement. <br /> <br />NONPERFORMANCE <br /> <br />Failure by the Vendor to perform the terms of this agreement shall constitute a breach of <br />contract, and shall result in the immediate termination of the agreement. In the event of a <br />termination for breach by the Vendor, the State may retain, as liquidated damages, any <br />payment to be made under this agreement which remains unpaid at the time of the breach, <br />and may also recover from the Vendor, those amounts already paid for individual items of <br />work which are incomplete at the time of the breach. <br /> <br />However, should a breach by the Vendor be caused by circumstances, beyond the control <br />of the Vendor, and no fault of its own, so as to render the agreement impossible of <br />performance by the Vendor, then the agreement shall be terminated. In the event of a <br />breach, by the Vendor, in such circumstances, the State may set off, against any liability or <br />obligations owed to the Vendor, under this agreement or otherwise, any amounts paid for <br />individual items of work which are incomplete at the time of the breach, but shall not be <br />entitled to liquidated damages. <br /> <br />The State shall give written notice, to the Vendor, of the termination, which notice shall <br />specify the effective date thereof. <br /> <br />TERMINATION OF AGREEMENT FOR INADEQUACY OF FUNDS <br /> <br />It is agreed that in the event appropriations to the Department of Human Services are not <br />obtained and continued at a level sufficient to allow for payments to the Vendor, for the <br />services identified in Paragraph II, the obligations of each party hereunder may be <br />terminated at the option of the State, provided that any such termination shall be without <br />prejudice to any obligations or liabilities of either party already accrued prior to such <br />termination. <br /> <br />INDEMNITY <br /> <br />State and Vendor each agrees to assume its own liability for any and all claims of any <br />nature, including all costs, expenses and attorneys' fees, which may in any manner result <br />from or arise out of this agreement. <br /> <br />INSURANCE <br /> <br />Vendor shall secure and keep in force during the term of this agreement, from insurance <br />companies, government self-insurance pools or government self-retention funds, <br />authorized to do business in North Dakota: 1) commercial general liability; 2) automobile <br />liability; and 3) workers' compensation insurance covering any and all claims of any nature <br />which may in any manner arise out of or result from this agreement. The minimum limits cf <br />liability required are $250,000 per person and $1,000,000 per occurrence for commercial <br />general liability and automobile liability coverages, and statutory limits for workers' <br />compensation. Vendor shall furnish to State a certificate of insurance evidencing the <br />required coverages are in effect and providing that the coverages may not be canceled or <br />modified without thirty (30) days' prior written notice to State. <br /> <br />-3- <br /> <br /> <br />