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<br />discretion in the judgment of the manner and means of carrying out the Local <br />Entity's activities and responsibilities under this agreement. <br /> <br />VIII. NONPERFORMANCE <br /> <br />Failure by the Local Entity to perform the terms of this agreement shall constitute a <br />breach of contract, and shall result in the immediate termination of the agreement, <br />In the event of a termination for breach by the Local Entity, the department may <br />retain, as liquidated damages, any payment to be made under this agreement <br />which remains unpaid at the time of the breach, and may also recover from the <br />Local Entity, those amounts already paid for individual items of work which are <br />incomplete at the time of the breach. <br /> <br />However, should a breach by the Local Entity be caused by circumstances, <br />beyond the control of the Local Entity, and no fault of its own, so as to render the <br />agreement impossible of performance by the Local Entity, then the agreement <br />shall be terminated. In the event of a breach, by the Local Entity, in such <br />circumstances, the Department may set off, against any liability or obligations <br />owed to the Local Entity, 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 <br />not be entitled to liquidated damages. <br /> <br />The Department shall give written notice, to the Local Entity, of the termination, <br />which notice shall specify the effective date thereof. <br /> <br />IX. TERMINATION OF AGREEMENT FOR INADEQUACY OF FUNDS <br /> <br />It is agreed that in the event appropriations to the North Dakota Highway Patrol are <br />not obtained and continued at a level sufficient to allow for payments to the Local <br />Entity, for the services identified in Paragraph II, the obligations of each party <br />hereunder may be terminated at the option of the Department, provided that any <br />such termination shall be without prejudice to any obligations or liabilities of either <br />party already accrued prior to such termination. <br /> <br />X. INDEMNITY <br /> <br />The Department and Local Entity each agrees to assume its own liability for any <br />and all claims of any nature, including all costs, expenses, and attorneys' fees, <br />which may in any manner result from or arise out of this agreement. <br /> <br />XI. ACCESS TO BOOKS AND RECORDS <br /> <br />The state, federal government, and their duly authorized representatives shall <br />have access to the books, documents, papers, and records of the Local Entity, <br />which are pertinent to the services provided under this agreement for the purpose <br /> <br />-3- <br />