To the extent permitted by law, the District shall protect, defend, indemnify, and hold harmless each member municipality and its respective officials, officers, members, employees, and agents from and against all liabilities, damages, claims, demands, judgments, losses, costs, expenses, suits, actions, or proceedings, and attorneys' fees, with respect to any act or omission arising out of the activities and operations of the District. The District shall indemnify its officers, supervisors, and employees from and against all liabilities, damages, claims, demands, judgments, losses, costs, expenses, suits, actions, or proceedings and attorney's fees, except in the case of willful misconduct and gross negligence.