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indemnify the City, its officers, and employees for all costs, damages, or expenses which the City any pay or incur in consequence of such claims, including attorneys' fees. The aforesaid defense, indemnity, and hold harmless provisions shall not be in effect from and after the date that the occurrence giving rise to the claim in questions is determined by a court with jurisdiction over the matter to have been caused solely by the willful conduct or negligence of the City, Its officers or employees. Until the date of such judicial determination, the defense hold harmless and indemnification provisions shall be in full force and effect and in the event of such judicial determination, the City shall reimburse the Permittee all of its costs and expenses incurred on behalf of the City in connection with the foregoing. Nothing herein shall be construed to prohibit the City from selecting its own counsel to act as co- counsel in the defense of such matters. The Permittee agrees to indemnify, defend, and hold harmless the City of Elk River, its Council members, officers, and employees from any claims or damages arising out of any acts or omissions on the part of the Permittee and any of the participating counties or their commissioners, agents, or employees in the performance of the counties' contractual obligations under the agreements with the Permittee, from any strict liability imposed upon the City pursuant to Minn. Stat. 115B.01, et seq. for the release of hazardous waste at the Facility and from any remedial actions, clean-ups, removal, closure, post-closure activities, or monitoring requirements or costs associated therewith. This indemnity, hold harmless, and defense obligation on the part of the Permittee shall include, but not be limited to, any and all actions, claims, requirements, or claims for damages arising out of the granting of this Permit for the Facility or any variance associated with the height of the proposed Processing Facility and the inability of the City to properly respond to fire calls at the Processing Facility due to the limitations of its equipment or personnel, but shall not include willful and unjustified failure to respond to fire calls at the Processing Facility. The indemnities provided in the paragraph B are subject to the limits of liability set forth in Minnesota Statutes Sections 466.04 and 466.06, as amended from time to time, if effective as to the particular indemnified action or claim. Nothing in this Permit is intended to waive the immunities to which the City is entitled by law. C. The Permittee waives and releases the City from all claims, direct or indirect, arising or claimed to have arisen out of all 410 s:\b&z\stever\exhibita.doc 7