12.1  The Council accepts no liability for any consequences, whether direct or indirect, that may come about from the use of the Grant for the Project or from withdrawal of the Grant. The Recipient shall indemnify and hold harmless the Council, its employees, agents, officers or sub-contractors with respect to all claims, demands, actions, costs, expenses, losses, damages and all other liabilities arising from or incurred by reason of the actions and/or omissions of the Recipient in relation to the Project, the non-fulfilment of obligations of the Recipient under this Agreement or its obligations to third parties.

12.2  Subject to clause 12.1, the Council's liability under this Agreement is limited to the payment of the Grant.