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10.—(1) The Company shall be responsible for and make good to the Authority all financial losses which may be reasonably incurred or suffered by the Authority by reason of the construction, maintenance or operation of the works or the failure thereof or by reason of any act or omission of the Company, their employees, contractors or agents or others whilst engaged upon the construction or maintenance of the works or dealing with any failure of such works.
(2) The Company shall indemnify the Authority from and against all claims and demands arising out of or in connection with the works or any such failure, act or omission; and the fact that any act or thing may have been done by the Authority on behalf of the Company or by the Company, their employees, contractors or agents with plans or particulars submitted to or modifications or conditions specified by the Authority, or in a manner approved by the Authority, or under its supervision or the supervision of its duly authorised representative shall not (if it was done or required without negligence on the part of the Authority or its duly authorised representative, employee, contractor or agent) excuse the Company from liability under the provisions of this sub-paragraph.
(3) The Authority shall give the Company reasonable notice of any such loss, claim or demand as is referred to in sub-paragraphs (1) and (2), and no settlement or compromise thereof shall be made without the prior consent of the Company.
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