the Indemnitee the amount of any Indemnified Expenses incurred by the Indemnitor resulting from the
Indemnitee’s failure to give such notice on a timely basis.
12.4.4 With respect to Third Party Claims, the Indemnitor shall have the right, at its
expense and at its election, to assume control of the negotiation, settlement and defense of the Claim
through counsel of its choice. The election of the Indemnitor to assume such control shall be made
within thirty (30) days after the Indemnitor’s receipt of notice of the Third Party Claim. If the Indemnitor
elects to assume control, the Indemnitor shall do so at the Indemnitor’s sole expense. The Indemnitee
shall have the right to be informed and consulted with respect to the negotiation, settlement or
defenses of the Third Party Claim and to retain counsel to act on the Indemnitee’s behalf, at the
Indemnitee’s sole expense.
12.4.5 If the Indemnitor elects to assume control, but thereafter fails to defend the
Third Party Claim within a reasonable time, the Indemnitee shall be entitled to assume control and the
Indemnitor shall be bound by the results obtained by the Indemnitee with respect to the Third Party
Claim.
12.4.6 If the Indemnitor fails to assume control of the defense of any Third Party Claim,
the Indemnitee shall have the exclusive right to consent, settle or pay the amount claimed. Whether or
not the Indemnitor assumes control of the negotiation, settlement or defenses of any Third Party Claim,
the Indemnitor shall not settle any Third Party Claim without the written consent of the Indemnitee,
which consent shall not be unreasonably withheld or delayed. The Indemnitee and the Indemnitor shall
cooperate fully with each other with respect to Third Party Claims, and shall keep each other fully
advised with respect the Third Party Claim (including supplying copies of all relevant documentation
promptly as it becomes available).
12.4.7 The Indemnitee shall exert commercially reasonable efforts to mitigate the
Indemnified Expenses upon and after becoming aware of any Claim which could reasonably be expected
to give rise to the payment of Indemnified Expenses.
13. DISPUTE RESOLUTION
13.1 Duty. The Parties agree that they are entering into the business relationship envisaged
under this Agreement for the purposes of expanding the business in the Development Area. The Parties
each undertake that their respective actions hereunder will reflect the highest ethical standards and
business professionalism, and always acting within the confines of all Applicable Law. It is the duty of
both Parties to establish internal policies and procedures to ensure that their directors, employees,
agents or representatives operate in the same manner.
13.2 Intent of Meetings. Any periodic meetings between the Parties are intended to keep
open channels of communication and so that both Parties may work towards the same objective growth
and well-being of franchising the Business.
13.3 Framework to Resolve Disputes. The Parties recognize that from time to time
differences or disputes (collectively “Disputes”) may arise and the following is intended to provide a
framework for resolving any such differences: