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ARTICLE 20. Hold Harmless PERFORMING AGENCY, as an independent contractor, agrees to hold RECEIVING AGENCY and/or the federal government harmless and to indemnify them from any and all liability, suits, claims, losses, damages and judgments, and to pay all costs, fees, and damages to the extent that such costs, fees, and damages arise from perfonnance or nonperfonnance of PERFORMING AGENCY under this contract: ARTICLE 21. Bonding PERFORMING AGENCY is required to carry a fidelity bond or insurance coverage equal to the amount of funding provided under the contract Attachment(s) up to $100,000 that covers each employee of the PERFORMING AGENCY handling funds under this contract, including person( s) authorizing payment of such funds. The fidelity bond or insurance will provide for indemnification of losses occasioned by: 1) any fraudulent or dishonest act or acts committed by any of PERFORMING AGENCY's employees, either individually or in concert with others, and/or 2) failure of PERFORMING AGENCY or any of its employees to perfonn faithfully his/her duties or to account properly for all monies and property received by virtue of his /her position or employment. ARTICLE 22. Historically Underutilized Businesses RECEIVING AGENCY shall comply with Texas Government Code, Chapter 2161, VTCA, and 1 TAC §§ 111.11- 111.24 whereby state agencies are required to make a good faith effort to assist historically underutilized businesses (HUBs) in receiving contract awards issued by the state to purchase "goods," which are defined as "supplies, materials, or equipment," services, or public works. If PERFORMING AGENCY subcontracts a portion of this contract, PERFORMING AGENCY agrees to make a good faith effort to subcontract with HUBs during the perfonnance of its contract Attachment(s) with RECEIVING AGENCY and 'Yill report HUB subcontract activity on a quarterly basis to RECEIVING AGENCY. PERFORMING AGENCY and its subrecipient(s), if any, are encouraged to use minority banks (a bank which is owned at least 50 percent by minority group members) ARTICLE 23. Sanctions RECEIVING AGENCY may impose sanctions for any breach of contract. PERFORMING AGENCY will be monitored both for programmatic and fmancial compliance. RECEIVING AGENCY may, at its own discretion, impose one or more sanctions for each item of noncomp liance and will detennine sanctions on a case-by-case basis. A state or federal statute, rule, regulation, or federal guideline will prevail overthe provisions of this Article unless the statute, rule, regulation, or guideline can be read together with the provision( s) of this Article to give effect to both. RECEIVING AGENCY may: A. tenninate all or a part of the contract. Tennination is the pennanent withdrawal of the PERFORMING AGENCY's authority to obligate previously awarded funds before that authority would otherwise expire or the voluntary relinquishment by the PERFORMING AGENCY to obligate previously awarded funds. PERFORMING AGENCY costs resulting from obligations incurred by the PERFORMING AGENCY after tennination of an award are not allowable unless expressly authorized by the notice of tennination. Tennination does not include: (1) withdrawal of funds awarded on the basis of the grantee's (Fee-for-Service) 1999 GENERAL PROVISIONS Page 13 4/98