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SCHEDULE 3 - DISTRIBUTED ENERGY RESOURCES INTERCONNECTION PROCESS <br />12.2.Non-Warranty <br />The Area EPS Operator does not give any warranty, expressed or implied, as to the <br />adequacy, safety, or other characteristics of any structures, equipment, wires, <br />appliances or devices owned, operated, installed or maintained by the Interconnection <br />Customer, including without limitation the DER and any structures, equipment, wires, <br />appliances or devices not owned, operated or maintained by the Area EPS Operator. <br />The Area EPS Operator does not guarantee uninterrupted power supply to the DER and <br />will operate the Distribution System with the same reliability standards for the entire <br />customer base. <br /> <br />12.3.Indemnification <br />Each Party is protected from liability incurred to third parties as a result of carrying out <br />the provisions of this interconnection process and subsequent interconnection <br />agreements. The Parties shall at all times indemnify, defend, and save the other Party <br />harmless from, any and all damages, losses, claims, including claims and actions <br />relating to injury to or death of any person or damage to property, demand, suits, <br />recoveries, costs and expenses, court costs, attorney fees, and all other obligations by <br />or to third parties, arising out of or resulting <br />of its obligations under this agreement on behalf of the indemnifying Party, except in <br />cases of gross negligence or intentional wrongdoing by the indemnified Party. <br /> <br />This indemnification obligation shall apply notwithstanding any negligent or intentional <br />to indemnify the indemnified Party shall be reduced in proportion to the percentage by <br />ent or intentional acts, errors or omissions caused <br />the damages. <br /> <br />Neither Party shall be indemnified for its damages resulting from its sole negligence, <br />intentional acts or willful misconduct. These indemnity provisions shall not be <br />construed to relieve any insurer of its obligation to pay claims consistent with the <br />provisions of a valid insurance policy. <br /> <br />If an indemnified person is entitled to indemnification under this article as a result of a <br />claim by a third party, and the indemnifying Party fails, after notice and reasonable <br />opportunity to proceed under this article, to assume the defense of such claim, such <br />indemnified person may at the expense of the indemnifying Party contest, settle or <br />consent to the entry of any judgment with respect to, or pay in full, such claim. <br /> <br />If an indemnifying party is obligated to indemnify and hold any indemnified person <br />harmless under this article, the amount owing to the indemnified person shall be the <br />17 <br /> <br />161 <br />