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<br />5 <br /> <br />Subcontractor’s right to be paid for its time and materials expended prior to notification of <br />termination. Subcontractor waives the right to receive compensation and agrees to indemnify the <br />Contractor for any work performed prior to approval of insurance by the Contractor. <br />8. INDEMNIFICATION <br />Subcontractor agrees to defend, and shall indemnify and hold harmless the Contractor, its <br />officers, agents, employees, contractors, special counsel, and representatives from liability: (1) <br />for personal injury, damages, just compensation, restitution, judicial or equitable relief arising <br />out of claims for personal injury, including death, and claims for property damage, which may <br />arise from the negligent operations of the Subcontractor, its subcontractors, agents, employees, <br />or other persons acting on its behalf which relates to the services described in section 1 of this <br />HEAP Agreement; and (2) from any claim that personal injury, damages, just compensation, <br />restitution, judicial or equitable relief is due by reason of the terms of or effects arising from this <br />HEAP Agreement. This indemnity and hold harmless agreement applies to all claims for <br />damages, just compensation, restitution, judicial or equitable relief suffered, or alleged to have <br />been suffered, by reason of the events referred to in this Section or by reason of the terms of, or <br />effects, arising from this HEAP Agreement. The Subcontractor further agrees to indemnify, hold <br />harmless, and pay all costs for the defense of the Contractor, including fees and costs for special <br />counsel to be selected by the Contractor, regarding any action by a third party challenging the <br />validity of this HEAP Agreement, or asserting that personal injury, damages, just compensation, <br />restitution, judicial or equitable relief due to personal or property rights arises by reason of the <br />terms of, or effects arising from this HEAP Agreement. Contractor may make all reasonable <br />decisions with respect to its representation in any legal proceeding. Notwithstanding the <br />foregoing, to the extent Subcontractor’s services are subject to Civil Code Section 2782.8, the <br />above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims <br />that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the <br />Subcontractor. <br />9. RECORDS <br />Subcontractor shall keep records and invoices in connection with the work to be <br />performed under this HEAP Agreement. Subcontractor shall maintain complete and accurate <br />records with respect to the costs incurred under this HEAP Agreement and any services, <br />expenditures, and disbursements charged to the Contractor for a minimum period of three (3) <br />years, or for any longer period required by law, from the date of final payment to Subcontractor <br />under this HEAP Agreement. All such records and invoices shall be clearly identifiable. <br />Subcontractor shall allow a representative of the Contractor to examine, audit, and make <br />transcripts or copies of such records and any other documents created pursuant to this HEAP <br />Agreement during regular business hours. Subcontractor shall allow inspection of all work, data, <br />documents, proceedings, and activities related to this HEAP Agreement for a period of three (3) <br />years from the date of final payment to Subcontractor under this HEAP Agreement. <br />10. CONFIDENTIALITY <br />EXHIBIT 1