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<br />and after payment. Payment under the contract will not foreclose the right of <br />RECEIVING AGENCY to recover excessive or illegal payments. <br /> <br />Any deficiencies identified by RECEIVING AGENCY upon examination of PERFORMING <br />AGENCY's records will be conveyed in writing to PERFORMING AGENCY. PERFORMING <br />AGENCY's resolution of findings will also be conveyed in writing to RECEIVING <br />AGENCY within 30 days of receipt of RECEIVING AGENCY's findings. A determination <br />by RECEIVING AGENCY of either an inadequate or inappropriate resolution of the <br />findings may result in the withholding of funds or suspension of the contract. <br />Any such withholding of funds or suspension will remain in effect until the- <br />findings are properly remedied as determined by RECEIVING AGENCY. <br /> <br />PERFORMING AGENCY will retain all such records for a period of three years from <br />the date of the final expenditure report submitted under this contract or until <br />resolution of all audit questions, whichever time period is longer. <br /> <br />ARTICLE 11. Eauioment and SUDDlies <br /> <br />Equipment is defined as tangible nonexpendable property with an acquisition cost <br />of over $500 and a useful life of more than one year. In accordance with Article <br />601b, V.T.C.S., Section 8.02(c), title to all equipment purchased from funds <br />provided herein will be in the name of PERFORMING AGENCY throughout the contract <br />term. <br /> <br />Onless initially listed and approved in the contract, prior written approval from <br />RECEIVING AGENCY is required for any additions to or deletions of approved <br />equipment purchases having an acquisition cost exceeding $500. <br /> <br />PERFORMING AGENCY will maintain an annual property and inventory listing and <br />submit a report (TOH Form GC-ll) to RECEIVING AGENCY not later than 45 days <br />following the completion of installation. PERFORMING AGENCY will administer a <br />program of maintenance, repair, and protection of assets under this contract so <br />as to assure their full availability and usefulness. In the event PERFORMING <br />AGENCY is indemnified, reimbursed, or otherwise compensated for any loss of, <br />destruction of, or damage to the assets provided under this contract, it will use <br />the proceeds to repair or replace said assets. <br /> <br />PERFORMING AGENCY agrees that upon termination of the contract, title to any <br />remaining equipment purchased from funds as hereinabove provided will be <br />transferred to RECEIVING AGENCY or any other party designated by RECEIVING <br />AGENCY; provided, however, that RECEIVING AGENCY may, at its option and to the <br />extent allowed by law, transfer title to such property to PERFORMING AGENCY. <br /> <br />ARTICLE 12. Subcontractinq <br /> <br />PERFORMING AGENCY may enter into agreements with subcontractors. Subcontracts, <br />if any, entered into by PERFORMING AGENCY will be in writing and subject to the <br />requirements of this contract. PERFORMING AGENCY agrees that it will be <br />responsible to RECEIVING AGENCY for the performance of any subcontractor. In <br />addition, if PERFORMING AGENCY elects to enter into an agreement which <br />subcontracts out a substantial portion of PERFORMING AGENCY's Scope of Work, <br />prior written approval must be obtained from RECEIVING AGENCY. <br /> <br />ARTICLE 13. Hold Harmless <br /> <br />PERFORMING AGENCY, which is not a state agency, assures that it is an independent <br />contractor and not an agent, servant, or employee of the state. Except to the <br />extent that Chapter 104 of the Texas Civil Practice and Remedies Code is <br />applicable to this contract, PERFORMING AGENCY agrees to hold RECEIVING AGENCY <br />and/or federal government harmless and to indemnify them from and against any and <br />all claims, demands, and causes of action of every kind and character which may <br />be asserted by any third party occurring or in any way incident to, arising out <br /> <br />8 <br />