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9. Audit~ Monitoring. City may audit the records and accounts of Contractor for the purpose of verifying expenditures by Contractor of funds provided hereunder or verifying statements or analyses made or provided by Contractor hereunder. Contractor shall respond to, and comply with, any audit exception made or taken by City or appropriate federal agencies relating to Contractor's performance or failure to perform hereunder. Contractor shall pay City the full amount owing to City or to the United States Government determined to be owing as a result of any such audit exception. City shall monitor Contractor's Program and expenditures made pu~uant to this Agreement quarterly to verify Contractor's compliance with this Agreement and local and federal contract requirements. 10. Contractor's Status. In the performance of the obligations set forth in this Agreement, Contractor shall have the status of an independent contractor and shall not be deemed to be an employee, agent, or officer of City. 11. Hold Harmless. Contractor hereby agrees to defend, indemnify, and save harmless City, its Council, officers, boards, commissions, agents, and employees (collectively, Indemnitees) against and from any and all claims, suits, or actions of every name, kind, and description, which may be brought against Indemnitees, or any of them, by reason of any injury to, or death of, any person (including corporations, partnerships, and associations) or property damage (including loss of use thereof), arising from, or alleged to have arisen from, any act or omission to act, negligent or otherwise, of Contractor, its officers, agents or employees under this Agreement. The duty of Contractor to defend, indemnify, and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein shall be construed to require 08/15/00 5