Obligation of the Town. The Town shall have regard to Schedule “C” in performing the Maintenance Services and shall use its best efforts to adhere to the Approved Budget. Nothing in this paragraph shall relieve the Town of the obligation to perform any prescribed works in the Maintenance Services in accordance with this Agreement unless the written authorization of the Commissioner is first obtained. The Director agrees to notify the Commissioner in writing, as soon as practically possible, of any significant anticipated budget overrun so that the Commissioner can ensure that sufficient monies are available to undertake this service. The Commissioner may advise the Director of the need to prepare a mitigation plan to respond to an anticipated budget overrun and both parties agree to develop this mitigation plan when the Commissioner determines that it is necessary. Notwithstanding the Approved Budget and the development of this mitigation plan, the Region shall remain obligated to pay the Town for the actual cost of all Maintenance Services provided by the Town, in accordance with section 6.1.
Obligation of the Town. The Town hereby agrees to indemnify and save harmless the Region, its employees, agents, councillors, from any and all claims, demands, losses, costs, damages, actions, lawsuits or other proceedings by whomsoever made, sustained, or prosecuted, which may arise either directly or indirectly from the provision of, or neglect or refusal to provide, Maintenance Services in accordance with this Agreement or any other works the Town covenants to perform on Regional Roads, by the Town its servants, employees, agents, invitees or contractors, save and except any and all claims, demands, losses, costs, damages, actions, lawsuits or other proceedings by whomsoever made, sustained, or prosecuted resulting from the negligence or wilful misconduct of the Region. The Town shall manage, defend and bear the cost of all claims, actions, lawsuits or other proceedings made against it and the Region resulting from its obligation to provide Maintenance Services pursuant to this Agreement. The Town further agrees that the indemnity contained in section 10.1 herein, survives the term of this Agreement, provided that any claims, demands, losses, costs, damages, actions, lawsuits or other proceedings result from an incident occurring within the term of the Agreement.
Obligation of the Town to Repair and Replace the Leased Property. The Town and, to the extent such Net Proceeds are within its control, the Lender, shall cause the Net Proceeds of any insurance policies, performance bonds or condemnation awards to be deposited in a separate trust fund held by the Lender. Unless the Town shall elect to apply the Net Proceeds to the Purchase Option Price in the manner contemplated by Section 9.03(b) hereof, all Net Proceeds so deposited shall be applied to the prompt repair, restoration, modification, improvement or replacement of the Leased Property by the Town upon receipt of requisitions acceptable to the Lender signed by an Authorized Officer of the Town stating with respect to each payment to be made; (a) the requisition number; (b) the name and address of the person, firm or corporation to whom payment is due; (c) the amount to be paid; and (d) that each obligation mentioned therein has been properly incurred, is a proper charge against the separate trust fund and has not been the basis of any previous withdrawal and specifying in reasonable detail the nature of the obligation, accompanied by a bill or a statement of account for such obligation.
