7/30/01
summer 2001
n8.INDEMNITY AND LIABILITY
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n8.1Each Party shall defend, hold
harmless, and indemnify the other Party and the directors, officers, employees, and agents of the other Party against and from any
and all loss, liability, damage, claim, cost, charge, demand, or expense (including any direct, indirect or
consequential loss, liability, damage, claim, cost, charge, demand, or expense, including attorneys’ fees) for injury or death to persons, including employees of either Party, and damage to property, including
property of either Party, arising out of or in connection with (a) the engineering, design, construction,
maintenance, repair, operation, supervision, inspection, testing, protection or ownership of the Party’s facilities, or (b) the making of replacements, additions, betterments to, or reconstruction of the Party’s facilities, provided, however, Customer’s duty to indemnify MPC hereunder shall not extend to loss, liability,
damage, claim, cost, charge, demand, or expense resulting from interruptions in electrical service to
MPC’s customers other than Customer. This indemnity shall apply notwithstanding the active or passive
negligence of the indemnitee.
However, neither Party shall be indemnified hereunder for its loss, liability,
damage, claim, cost, charge, demand, or expense resulting from its sole negligence or willful misconduct.
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n8.2Notwithstanding the indemnity of
Section 8.1, and except for a Party’s willful misconduct or sole negligence, each Party shall be
responsible for damage to its own facilities resulting from electrical disturbances or faults.
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n8.3The provisions of this Section 8
shall not be construed to relieve any insurer of its obligations to pay any insurance claims in
accordance with the provisions of any valid insurance policy.
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n8.4Except as otherwise provided in
Section 8.1 neither Party shall be liable to the other Party for consequential damages incurred by
that Party.
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9.INSURANCE (OPTIONAL)
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nCustomer understand that the
installation, operation and/or ownership of the Customer Facility may result in potential liabilities
arising from property damage or personal injury as described in Section 8. Customer shall not be required to
purchase or maintain property insurance and comprehensive personal liability insurance
to protect Customer against such potential liabilities. However, Customer understands that property
insurance and comprehensive personal liability insurance may provide protection against such
potential liabilities.
Accordingly, Customer is encouraged to explore with insurers the extent
to which existing or additional insurance policies may protect against the potential liabilities
associated with the installation, operation and/or ownership of the Customer Facility.