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indemnify SAWPA and hold SAWPA free and harmless from and against <br />any and all claims, demands, or other liabilities that may result <br />from, or be occasioned by, any default, and such PARTIES further <br />agree to promptly reimburse SAWPA for all costs and expenses <br />incurred, including reasonable attorneys' fees, in connection with <br />any such default. <br />4. Permits. SAWPA is hereby authorized to obtain all <br />permits necessary to operate the Demonstration System, including, <br />without limitation, the Wastewater Discharge Permit issued by the <br />Santa Ana Regional Water Quality Control Board. All costs and <br />expenses associated with any and all permits for the Demonstration <br />System shall be borne by COLTON and SAN BERNARDINO in the same <br />proportion as all other costs and expenses are borne by them in <br />connection with the Demonstration System. <br />5. Operation and Maintenance Services Agreement. COLTON and <br />SAN BERNARDINO hereby authorize SAWPA to negotiate and execute, <br />under the supervision of the Board of Control, an agreement with SAN <br />BERNARDINO to provide and/or contract for all tools, equipment, <br />vehicles, materials and qualified personnel necessary to manage, <br />operate, maintain and repair the Demonstration System pursuant to, <br />and in accordance with, all of the terms and conditions set forth <br />below. <br />6. Reports And Budgets. <br />a. Reports. In addition to the services described <br />above, SAWPA shall also prepare and submit to the other <br />5 <br />