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FACDEMO.MTR • E Page 3 of 4 5/14/87 Contractor agrees to advise all its employees and the employees of its subcontractors and agents that: (1) it is the policy of UNOCAL that the use, possession, sale, transfer or purchase of illegal drugs on UNOCAL property is prohibited; (2) entry onto UNOCAL property constitutes consent to an inspection of the employee and his or her personal effects when entering, on, or leaving UNOCAL property; (3) any employee who is found in violation of the policy or refuses to permit inspection may be removed and barred from UNOCAL property, at the discretion of UNOCAL. (*) Contractor agrees to protect, indemnify and hold Company and its employees, agents, and officers free and harmless from and and against any and all claims, demands, and causes of action of all kinds including without limitation, claims of property damage, injury or death, arising out of or being in any way connected with Contractor's performance under this agreement, except for matters shown by final judgment to have been caused by the sole negligence of Company. The insurance requirements of the following paragraph shall not be construed to limit the indemnification provided hereunder; the indemnification provided herein shall be effective to the maximum extent permitted by applicable law. Contractor shall be soley responsible for the defense of any and all claims, demands or suits against Company, its employees, agents and officers, including without limitation, claims by any employee of any Contractor or any employee of any subcontractor, even though the claimant may allege willful misconduct or sole negligence on the part of Company. With respect to operations performed under or incident to this agreement, Contractor further agrees to obtain and maintain insurance acceptable to Company which is primary as to any other existing, valid and collectible insurance and except for Workers' Compensation, Employers' Liability, and Contractual Liability Insurance names Company as an additional insured with a Cross Liability Clause (Severability of Interest). Such insurance shall include: (a) Comprehensive General Liability Insurance covering subcontractor's contingent liability, Completed Operations and Products Liability„ Contractual Liability, and if requested by Company, liability arising from explosion, collapse or underground property damage, all with a minimum combined single limit of $1,000,000 each occurrence .(or the equivalent) for Bodily Injury and Property Damage and, (b) Comprehensive Automobile Liability Insurance covering all owned, hired, or otherwise operated non -owned vehicles with a minimum combined single limit of $500,000 each occurrence (or the equivalent) for Bodily Injury and Property Damage. (c) (i) Workers' Compensation Insurance as required by law, covering all states of operation, and, (ii) Employers' Liability Insurance with a minimum limit of $100,000 each occurrence.