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3. FINANCIAL ADJUSTMENTS. The financial terms of this agreement will be reviewed annually and appropriate cost adjustments made to reflect increases in labor, licensing or equipment necessary to carry out the service terms of the agreement. 4. INDEMNIFICATION. Roseville agrees to assume sole liability for any negligent or intentional acts of the assigned Employee(s) while performing the assigned duties within the jurisdiction of either entity. Each entity agrees to indemnify, defend, and hold harmless the other from any claims, causes of action, damages, loss, cost or expenses including reasonable attorney's fees resulting from or related to the actions of each entity, its officers, agents or employees in the execution of the duties outlined in this Agreement, except as qualified by the previous sentence. This Agreement to indemnify and hold harmless does not constitute a waiver of limitations on liability provided under Minn. Stat. § 466.04. To the full extent permitted by law, action by parties pursuant to this Agreement are intended to be and shall be construed as a "cooperative activity" and it is the intent of the parties that they shall be deemed a "single governmental unit" for purposes of liability, as set forth in Minn. Stat. § 471.59, subd. 1 a(a), provided further that for purposes of that statute, each party to the Agreement expressly declines responsibility for the acts and omissions of the other parties. The parties to this Agreement are not liable for the acts or omissions of the other parties to this Agreement except to the extent they have agreed in writing to be responsible for the acts or omissions of the other parties. 5. INTERUPTION OF SERVICE. RWSCC hereby waives and releases Roseville from any liability for personal injury or property damage as a result of any failure of Roseville's Telephony equipment, for whatever reason, including, but not limited to, software, hardware, telephone, frame relay services, or other related equipment. In this regard, RWSCC agrees to indemnify, defend, and hold harmless Roseville from any claims, causes of action, damages, Telephony Services Agreement - RWSCC 04/2011 3