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• <br />(b) Employees and Volunteers. Each party shall maintain workers compensation coverage, <br />including coverage for employers liability for all employees and volunteers assigned to perform work <br />in the Study and shall be solely responsible for the handling and payment of all claims by its <br />employees and volunteers for injury, loss and damages arising out of the Study. The fact that one <br />party may have the right to supervise or direct the activities of the employees or volunteers of another <br />party shall not make the supervising party the employer of such employees and volunteers. <br />SECTION 5. Financial Obligations. <br />(a) Separate Liability. Each party agrees to be separately and solely liable for all payment and <br />work -in -kind obligations agreed to by that party during the annual budget planning or upon approval <br />of any change order, and to hold the others harmless from and against any liability for the payment or <br />performance obligations assumed by the party by written agreement during the parties annual budget <br />planning. i <br />(b) Appropriations. Each party agrees to continually seek sufficient budget appropriations to <br />satisfy its agreed obligations hereunder. In addition, Springfield and Eugene shall each seek and <br />retain such reserves against unanticipated Study costs as each party deems pru dent. <br />(c) Unanticipated Study Costs. If, at any time, the amount of any payment required to be made <br />by the Sponsors under the FCSA exceeds the aggregate amount agreed to and approved by the <br />parties, the parties shall first attempt to effect a change order that will eliminate the anticipated <br />payment. If a change order cannot be accomplished in a sufficient time to avoid a default under the <br />FCSA, Springfield and Eugene shall, to the extent such funds are legally available, each contribute <br />50% of the unanticipated amount and the parties shall thereafter continue to work to either reduce the <br />overall costs of the Study and/or to determine the manner in which the amount "of the unanticipated <br />payment, and any related interest earnings, should be re- allocated among the parties. <br />(d) Commingling of Funds. The parties may agree to commingle funds in an escrow or other <br />interest earning account pending expenditure for Study costs under any arrangement that the parties <br />deem reasonable for the allocation of expenditures and earnings. <br />SECTION 7. Indemnification. <br />Subject to applicable limitations under the Oregon Constitution and statutes, including but not <br />limited to the Oregon Tort Claims Act, each party hereto agrees to hold harmless, defend and <br />indemnify the other parties to this agreement, and their elected officials, officers and employees from <br />and against any and all claims, actions, liabilities, costs, including attorney fees and other costs of <br />defense arising from or as a result of the wrongful acts of its own officials, officers and employees <br />hereunder. In addition to the foregoing, each party shall hold each other party; harmless from and <br />against all claims, actions, liabilities, costs, including attorney fees and other costs of defense arising <br />out of or resulting from injury to or claims by such party's employees and volunteer, including claims <br />alleging wrongful supervision by another party, subject to applicable legal limitations. <br />Intergovernmental Agreement — Eugene - Springfield Metropolitan Waterways Study I Page 4 <br />