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<br />IX. RETENTION OF RECORDS <br /> <br />The Grantee agrees to retain financial records for a period of three years from the date of <br />submission of the final expenditure report or if subject to audit, until such audit is completed <br />and closed, whichever occurs later. The Grantor, the federal government, and their duly <br />authorized representatives shall have access to the books, documents, papers, and <br />records of the Grantee which are pertinent to the services provided under this agreement. <br />Program records shall be maintained for a period of six years or until an audit is completed <br />and closed, whichever occurs later. <br /> <br />X. TERMINATION OF AGREEMENT FOR CAUSE <br /> <br />If through any cause Grantee shall fail to fulfill in a timely and proper manner its obligations <br />under this agreement, or shall violate any of the terms of this agreement, the Grantor shall <br />thereupon have the right to terminate this agreement forthwith by giving written notice to <br />Grantee of such termination and specifying the effective date thereof. Notwithstanding a <br />termination pursuant to this paragraph, Grantee shall not be relieved of liability to the <br />Grantor for damages sustained by the Grantor by virtue of any breach of the agreement by <br />Grantee, and the Grantor may withhold any payment, otherwise due to Grantee, for the <br />purposes of set off until such time as the exact amount of damages due is determined. <br /> <br />XI. 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 Grantee, for the <br />services identified in Paragraph II, the obligations of each party hereunder may be <br />terminated, at the option of the Grantor, 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 />XII. CONTINGENT LIABILITY <br /> <br />During the term of this agreement, and for three years thereafter, the Grantee agrees to <br />reimburse the Grantor for any claims, submitted by the Grantor for federal financial <br />participation in the cost of this agreement, which are disallowed by any federal agency for a <br />failure, on the part of the Grantee, to comply with the terms and conditions of this <br />agreement, the applicable provisions of any federal or state statutory or regulatory <br />provision which govern the source of funding. The Grantor agrees to give the Grantee <br />prompt written notice of any disallowance of claims subject to reimbursement by the <br />Grantee. Any amount disallowed in the manner and for the reasons described shall be <br />considered a debt owing to the Grantor and action may be brought by the Grantor thereon <br />in any manner prescribed by law. <br /> <br />XIII. INDEMNITY <br /> <br />The state of North Dakota, its agencies, officers and employees (State) and Grantee each <br />agrees to assume its own liability for any claims of any nature including all costs, expenses <br />and attorneys' fees which may in any manner result from or arise out of this agreement. <br /> <br />XIV. INSURANCE <br /> <br />Grantee shall secure and keep in force during the term of this agreement and Grantee shall <br />require all subcontractors, prior to commencement of an agreement between Grantee and <br />the subcontractor, to secure and keep in force during the term of this agreement, from <br /> <br />-3- <br />