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MASTER AGREEMENT # TSM/FCR 5041 Page 5 of 6 2. Neither STATE, nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done, or omitted to be done, by LOCAL ENTITY under, or in connection with, any work, authority, or jurisdiction delegated to LOCAL ENTITY under this agreement. It is also understood and agreed that, pursuant to Government Code Section 895.4, LOCAL ENTITY shall fully indemnify and hold STATE harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of anything done, or omitted to be done, by LOCAL ENTITY under, or in connection with, any work, authority, or jurisdiction delegated to LOCAL ENTITY under this agreement. 3. Neither LOCAL ENTITY, nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reasons of anything done, or omitted to be done, by STATE under, or in connection with, any work, authority, or jurisdiction delegated to STATE under this agreement. It is also understood and agreed that, pursuant to Government Code, Section 895.4, STATE shall fully indemnify and hold LOCAL ENTITY harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of anything done, or omitted to be done, by STATE under or in connection with any work, authority, or jurisdiction delegated to STATE under agreement. 4. STATE auditors shall be given access to LOCAL ENTITY's books and records for the purpose of verifying costs and pro rata share to be paid. All project documents will be available for inspection by authorized STATE personnel at any time during project development and for a three-year period from the date of final payment under the contract or one year after the audit is completed or waived by STATE, whichever is longer. If a STATE audit is conducted, the source of local match funds will be checked to determine if the source complies with the program requirements. ARTICLE VI - Accommodation of Utilities 1. Utility facilities may be accommodated on the right of way, provided such use and occupancy of the right of way does not interfere with the free and safe flow of traffic or otherwise impair the roadway or its scenic appearance; and provided a Use and Occupancy Agreement, setting forth the terms under which the utility facility is to cross or otherwise occupy the right of way, is executed by the LOCAL ENTITY and OWNER. The Use and Occupancy Agreement setting forth the terms under which the utility facility is to cross or otherwise occupy the right of way must include the provisions set forth in Volume I, Section 12, of the Local Programs Manual published by STATE, unless otherwise approved by STATE. 2. If any protection, relocation or removal of utilities is required within STATE's right of way, such work shall be performed in accordance with STATE policy and procedure. LOCAL ENTITY shall require any utility company performing relocation work in STATE's right of way to obtain a State Encroachment Permit prior to the performance of said relocation work. Any relocated utilities shall be correctly located and identified on the as -built plans.