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17 <br />restricted to, acts of God, acts of war, or criminal acts of others, acts of Contractor or <br />M&I Contractors, water shortages, drought, regulatory constraints, fires, floods, <br />earthquakes, epidemics, quarantine restrictions, strikes, or failure or breakdown of <br />transmission or other facilities including but not limited to State Water Project facilities <br />outside the Zone 7 service area. <br />43. Liabilities & Indemnification <br />In performance of this Agreement, each Party, its agents, employees, and contractors, <br />shall act in an independent capacity and not as officers, employees, or agents of any <br />other Party. No Party assumes any liability for the activities of any other Party in <br />performance of this Agreement. Each Party shall be responsible for any adverse impacts <br />to, or complaints from, its own customers that may result from the operation or <br />performance of this Agreement, except as arising out of or resulting from the negligent <br />acts, errors or omissions, or willful misconduct of the other Party, their associates, <br />employees, sub-consultants, or other agents. <br />Contractor assumes liability for treated water delivered under this Agreement when <br />delivery system. Accordingly: <br />(a) Contractor shall indemnify, save and hold harmless Zone 7 and its officers, <br />agents, and employees from damages or claims of damages <br />associated with the control, carriage, handling, use, disposal, or distribution of <br />treated water after such water has passed through the turnout facility, including <br />but not limited to property damage, personal injury or death, except such claims <br />arising from the negligence or willful misconduct of Zone 7. Contractor shall further <br />indemnify, save and hold harmless Zone 7 from any and all obligations, liability, <br />acquisition, delivery, or use of Alternate Supply pursuant to this Agreement. <br />(b) Zone 7 shall indemnify, save and hold harmless the Contractor and its officers, <br />agents, and employees from damages or claims of damages associated with the <br />control, carriage, handling, use, disposal, or distribution of treated water before <br />such water has passed through the turnout facility, including but not limited to <br />property damage, personal injury or death, except such claims by Zone 7 for costs <br />of repair of Zone 7's facilities or other damages resulting from the operations of <br />Contractor, or claims arising from the negligence or willful misconduct of <br />Contractor. <br />44. Renewability <br />This contract may be renewed upon the mutual consent of the parties hereto. If no <br />such renewal shall take place and in the absence of any new contract, Zone 7 shall <br />nevertheless continue delivery to Contractor in accordance with this contract, that <br />Page 72 of 214