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JDK:bc: 10/10/88 <br />expenses or damages however caused by reason of any injury <br />(whether to body, property, or personal or business character <br />or reputation) sustained by or to any person or property by <br />reason of any act, neglect, default, or omission of OCWD or <br />any of its agents, employees, or representatives, or caused <br />by reason of the design, construction, operation or <br />maintenance of the Project Facilities, or the distribution <br />and sale to RETAILER for resale purposes herein of Project <br />Water that does not meet the quality standards set forth in <br />Title 22 of the California Administrative Code; provided, <br />however, that OCWD shall not be responsible for the negligent <br />operation, maintenance or repair of the Project Facilities <br />within RETAILER'S service boundaries by RETAILER, the <br />negligent operation, maintenance or repair by RETAILER or any <br />Project Customer or Groundwater Customer of Project Water <br />distribution and storage facilities located on the lands of <br />any Project Customer or Groundwater Customer, and/or the <br />misuse or misapplication of the Project Water on the Project <br />Customer's or Groundwater Customer's side of the Project <br />Water meter by any person, including RETAILER or any Project <br />Customer or Groundwater Customer. If RETAILER is sued in any <br />court for damages by reason of any of the acts for which OCWD <br />is required to indemnify RETAILER in this paragraph 7.1, <br />including but not by way of limitation, damages arising out <br />of a products liability claim, OCWD shall defend said action <br />(or cause same to be defended) at its own expense and shall <br />pay and discharge any and all amounts of judgment that may be <br />25B-25 <br />-23- <br />EXHIBIT 1 <br />