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funds received by OCWD will be used to fund OCWD's costs ofplanning, design and construction <br />of Treatment systems, unless otherwise required by the terms of that grant. <br />B. Producer Support to OCWD-Sought Grants. Each Producer shall <br />support and assist OCWD in preparing any annual reports or documents necessary for OCWD to <br />comply with grants received for the HAS program. Subject to the requirements of this <br />Section 6.3, no provisions in this Agreement will prevent a Producer from applying for grants or <br />loans, from any source, for PFAS treatment projects in its service territory. <br />C. Producer -Sought Funding. A Producer may also seek third -party <br />funding for Treatment System -related expenses. Any outside development and design type grants <br />or funding initiated and received by a Producer will be utilized to offset OCWD's PFAS design or <br />construction costs for the Producer. If a Producer receives any grants or other third -party funding <br />for operational expenses of the Treatment System, that Producer shall share those proceeds with <br />OCWD in proportion to the percentage of O&M funded by OCWD if allowed by the grant or other <br />third -party funding instrument. <br />6.4 Records Retention, Audit. The Parties shall keep and maintain all records, <br />accounts and reports relating to this Agreement for a period of at least ten years after the date of a <br />final judgment or final settlement resolving any and all litigation related to PFAS cost recovery <br />initiated per Section 7.4 of this Agreement. The Parties will have access to these records at any <br />time during normal business hours upon 10 calendar days' notice. At its cost, any Party may audit <br />the books, records and accounts of the Party relating to its performance of this Agreement, and the <br />audited Party shall provide reasonable cooperation to the auditing Party in this regard. <br />7. RISK ALLOCATION. <br />7.1 Insurance. <br />A. Construction Activities. In the hiring of consultants and contractors <br />to design and build the Treatment System, the hiring or contracting Parry will have the other Party <br />OCWD, if Producer -Built, or the designing/building Producer, if OCWD-Built) included as an <br />additional indemnitee and additional insured on the same basis and with the same limits in all <br />contracts. The hiring Party will use the higher of the two Parties' standard limits for the purpose <br />of coverage requirements. For example, in connection with an OCWD-Built Treatment System, <br />OCWD shall have Producer named as an additional indemnitee and an additional insured in all <br />consulting and construction contracts related to the Producer's Treatment System(s). In <br />connection with a Producer -Built Treatment System, Producer shall have OCWD named as an <br />additional indemnitee and an additional insured in all consulting and construction contracts. The <br />hiring or contracting Party shall provide the other Party with proof of insurance, including <br />additional insured endorsements. <br />B. Parties' Coverage. Each Producer shall take out and maintain in <br />effect at all times during the term of this Agreement comprehensive general liability insurance in <br />an amount not less than $2 million per occurrence, for bodily injury, death and property damage <br />associated with the operation and maintenance of the Treatment Facilities and Impacted Wells, <br />naming OCWD as an additional insured under such policy. An endorsement evidencing this <br />2629/022499-0087 <br />14979764.1 a04/ VRO -12-