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<br />25 <br /> <br />G. Hold Harmless <br /> <br />1. The GRANTEE shall waive all claims and recourse against the STATE including the right to <br />contribution for loss or damage to persons or property arising from, growing out of or in any way <br />connected with or incident to this CONTRACT except claims arising from the concurrent or sole <br />negligence of the STATE, its officers, agents, and employees. <br /> <br />2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and <br />employees against any and all claims, demands, damages, costs, expenses or liability costs <br />arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of <br />the property described as the project which claims, demands or causes of action arise under <br />California Government Code Section 895.2 or otherwise except for liability arising out of the <br />concurrent or sole negligence of the STATE, its officers, agents, or employees. <br /> <br />3. The GRANTEE agrees that in the event the STATE is named as codefendant under the <br />provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the <br />STATE of such fact and shall represent the STATE in the legal action unless the STATE <br />undertakes to represent itself as codefendant in such legal action in which event the GRANTEE <br />agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees. <br /> <br />4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE <br />and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, <br />their officers, agents, or employees, an apportionment of liability to pay such judgment shall be <br />made by a court of competent jurisdiction. Neither party shall request a jury apportionment. <br /> <br />5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and <br />employees against any and all claims, demands, costs, expenses or liability costs arising out of <br />legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE <br />acknowledges that it is solely responsible for compliance with items to which it has certified. <br /> <br />H. Financial Records <br /> <br />1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan <br />documents, and all other records for the project and shall make them available to the STATE for <br />auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, <br />documents and records for five years following project termination or final payment. <br /> <br />2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which <br />fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost <br />of the project in connection with such assistance that is given or used, (c) the amount, source <br />and nature of that portion of the project cost supplied by other sources, and (d) any other such <br />records that will facilitate an effective audit. <br /> <br />3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any <br />books, records or reports pertaining to this contract or matters related thereto during regular <br />office hours. The GRANTEE shall maintain and make available for inspection by the STATE <br />accurate records of all of its costs, disbursements and receipts with respect to its activities under <br />this contract, and shall provide copies of all such records to STATE in its certified status reports <br />189