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<br />The City of San Marcos Facilities Service Contract <br /> <br />the reasons therefor. The Company acknowledges that failure to give timely notice of an <br />Uncontrollable Circumstance as required under this Section may adversely affect the City. The <br />City may assert that an adverse effect has occurred and that the relief to the Company or the <br />additional cost to the City should be reduced to account for the adverse effect. If the City does <br />so, the Company shall submit a written explanation to the City. The City shall consider the <br />explanation and make a determination whether the reduction in relief to the Company or <br />additional cost to the City shall take effect. <br />(D) Capital Modifications. Before proposing an adjustment to the Service Fee <br />under this Section, the Company shall determine whether any increased costs of operation and <br />maintenance of the Facilities resulting from an Uncontrollable Circumstance can be reduced by <br />a Capital Modification. In the event the Company so determines, the Company shall advise the <br />City in accordance with Section 10.3. <br />SECTION 13.3. INDEMNIFICATION HY THE COMPANY. The Company shall <br />indemnify, defend and hold harmless the City, and its elected officials, appointed officers, and <br />employees, representatives, agents and contractors (each, a "City Indemnitee"), from and <br />against (and pay the full amount of) any and all liability to third parties arising from or in <br />connection with (or alleged to arise from or in connection with) the Willful or Negligent Act, <br />Error or Omission of the Company or any of its officers, directors, employees, representatives, <br />agents or Subcontractors in connection with this Service Contract. The Company's indemnity <br />obligations hereunder shall not be limited by any coverage exclusions or other provisions in <br />any insurance policy maintained by the Company which is intended to respond to such events. <br />The Company shall not, however, be required to reimburse or, to the full extent of its liability <br />under Applicable Law, indemnify any City Indemnitee for any liability to the extent caused by <br />the gross negligence or willful misconduct of any City Indemnitee, or to the extent attributable <br />to any Uncontrollable Circumstance. A City Indemnitee shall promptly notify the Company of <br />the assertion of any claim against it for which it is entitled to be indemnified hereunder, and <br />the Company shall have the right to assume the defense of the claim in any Legal Proceeding <br />and to approve any settlement of the claim. These indemnification provisions are for the <br />protection of the City Indemnitees only and shall not establish, of themselves, any liability to <br />third parties. The provisions of this Section shall survive termination of this Service Contract. <br /> <br />96 <br />