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that such contractor's and subcontractors' indemnity, defense, hold harmless, and insurance obligations under their respective contract expressly benefit each other Party and JWA in the same manner and to the same extent as if they were the original signatories of said contract. COSTA MESA shall further ensure workers including third party contractors follow the O &M Manual and other maintenance manuals or guides for the Facilities. 5.7.2 Within twenty (20) days of written notice from a Project Representative of a necessary repair and /or replacement or other remedial action for compliance with the O &M Manual or this Agreement within those portions of the Facilities owned and maintained by COSTA MESA, COSTA MESA shall promptly take the remedial action to perform or have its contract perform the necessary work. Should it not commence or diligently work toward completion of the repairs, replacement, and/or remedy required, OCFCD may perform or cause the repairs, replacement, and/or remedy to be completed, and the costs thereof may be reimbursed by invoicing the other Parties according to their proportionate share as shown in Exhibit C2 and the terms herein. 5.8 Additional Annual O &M Costs 5.8.1 A Party's proportionate share obligation to fund Additional Annual O &M Costs are to be paid as indicated on Exhibit C2 on, or before January 15t of each year, or as otherwise established in writing by the Parties. OCWD and IRWD shall not have any obligation to find Additional O &M Costs. COSTA MESA shall pay costs out of its O &M Funds by collaborating with OCFCD to acquire said funds for Facility O &M Costs in accordance with the terms of this Agreement. 5.9 O &M or Reserve Fund Utilization 5.9.1 In addition to reimbursement for payment of expenses, COSTA MESA may recover as O &M costs allocated to the Parties in accordance with the terms herein its labor, services and equipment costs determined on a time and material basis, using the actual number of man -hours and equipment -hours required (including travel time to and from their respective facilities), multiplied by the applicable rates for the crew members and equipment deployed. After -hours services (defined as between 5:00 p.m. on a working day and 7:00 a.m. on the next, following work -day; a "work day" shall exclude Saturday, Sundays and designated holidays for COSTA MESA unless otherwise approved by the respective Project Representative for COSTA MESA) will be charged at time and a half. Equipment and material rates shall be approved by the Project Representative for COSTA MESA, as the case may be, and in accordance with its respective standards and practices. 5.9.2 The labor rates are comprised of direct and indirect components. The direct labor rate component is adjusted periodically by the authorized representatives of COSTA MESA as salary adjustments, which may include cost of living, competitive wage, benefit and annual hourly -rate schedule increases. The indirect component of the labor rate reflects the general and administrative cost, which shall include COSTA MESA Burden Rate. As of the Effective Date, the Burden Rate for COSTA MESA is 89 %. The Parties acknowledge said Burden Rate is subject to change, and agree to pay the Burden Rates in effect when labor, services or equipment are provided. Santa Ana -Delhi Channel Diversion Project Agreement D15 -013 25G -30 Page 26 of 74