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7. INDEMNIFICATION <br />7.1. Indemnification by Accela. Accela will defend (or at Accela's option, settle) any third -party claim, suit or <br />action brought against Customer, its Councilmembers, officers, directors, employees, and volunteers tothe <br />extent that it is based upon a claim that the Subscription Service, as furnished by Accela hereunder, infringes <br />or misappropriates the Intellectual Property Rights of any third -party, and will pay any costs, damages and <br />reasonable attorneys' fees attributable to such claim that are awarded against Customer. Accela will have no <br />liability under this Section 7.1 to the extent that any third -party claims described herein are based on (i) any <br />combination of the Subscription Service with products, services, methods, or other elements not furnished by <br />Accela; (ii) any use of the Subscription Service in a manner that violates this Agreement or the instructions <br />given to Customer by Accela; (iii) Customer's failure to incorporate updates or upgrades that would have <br />avoided the alleged infringement; (iv) Customer's breach of this Agreement; and/or Customer's revisions of <br />Subscription Services made without Accela's written consent. THIS SECTION 7.1 STATES THE ENTIRE <br />OBLIGATION OF ACCELA AND ITS LICENSORS WITH RESPECT TO ANY ALLEGED OR ACTUAL INFRINGEMENT OR <br />MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS BY THE SERVICE. <br />7.2. Indemnification Rea uirements. In connection with any claim for indemnification under this Section 7, the <br />indemnified party must: (a) provide the indemnifying party prompt written notice of such claim; (b) reasonably <br />cooperate with the indemnifying party, at indemnified party's expense, in defense and settlement of such <br />claim; and (c) give sole authority to the indemnifying party to defend or settle such claim. <br />7.3. Mitigation Measures. In the event that (i) any claim or potential claim covered by Section 7.2 arises or (ii) <br />Accela's right to provide the Subscription Service is enjoined or in Accela's reasonable opinion is likely to be <br />enjoined, Accela may, in its discretion, seek to mitigate the impact of such claim or injunction by obtaining the <br />right to continue providing the Subscription Service, by replacing or modifying the Subscription Service to make <br />it non -infringing, and/or by suspending or terminating Customer's use of the Subscription Service with <br />reasonable notice to Customer. In the case of a suspension or termination pursuant to this Section 7.3, Accela <br />will refund to Customer a portion of fees prepaid by Customer for the then -current Subscription period, <br />prorated to the portion of that Subscription period that is affected by the suspension or termination). <br />8. LIMITATIONS OF LIABILITY. EXCEPT FOR LIABILITY ARISING OUT OF (i) CUSTOMER'S BREACH OF SECTION <br />2.2 (RESTRICTIONS) OR (ii) ACCELA'S LIABILITY FOR DEATH OR PERSONAL INJURY, NEITHER PARTY'S <br />AGGREGATE LIABILITY FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR FROM <br />THE USE OF OR INABILITY TO USE THE SERVICE, WHETHER IN CONTRACT, TORT OR UNDER ANY OTHER THEORY <br />OF LIABILITY, SHALL EXCEED THE GREATER OF (A) THE TOTAL AMOUNT PAID BY CUSTOMER TO ACCELA IN THE <br />TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE INCIDENT OR (B) $200,000. <br />Exclusion of Damages. EXCEPT FOR LIABILITY ARISING OUT OF (i) CUSTOMER'S BREACH OF SECTION 2.2 <br />(RESTRICTIONS) OR (ii) EITHER PARTY'S LIABILITY FOR DEATH OR PERSONAL INJURY, IN NO EVENT SHALL EITHER <br />PARTY OR ANY OTHER PERSON OR ENTITY INVOLVED IN CREATING, PRODUCING, OR DELIVERING THE SERVICE <br />BE LIABLE FOR ANY INCIDENTAL, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING LOST <br />PROFITS, LOSS OF DATA OR LOSS OF GOODWILL, SERVICE INTERRUPTION, COMPUTER DAMAGE OR SYSTEM <br />FAILURE OR THE COST OF SUBSTITUTE PRODUCTS OR SERVICES, ARISING OUT OF OR IN CONNECTION WITH <br />THIS AGREEMENT OR FROM THE USE OF OR INABILITY TO USE THE SUBSCRIPTION SERVICE, WHETHER BASED <br />ON WARRANTY, CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCT LIABILITY OR ANY OTHER LEGAL <br />THEORY. THE FOREGOING EXCLUSIONS APPLY WHETHER OR NOT A PARTY HAS BEEN INFORMED OF THE <br />POSSIBILITY OF SUCH DAMAGE, AND EVEN IF A LIMITED REMEDY SET FORTH HEREIN IS FOUND TO HAVE FAILED <br />OF ITS ESSENTIAL PURPOSE. NOTHING IN THIS AGREEMENT EXCLUDES OR RESTRICTS THE LIABILITY OF EITHER <br />PARTY FOR DEATH OR PERSONAL INJURY RESULTING FROM ITS NEGLIGENCE. <br />REV: 02-10-20 PR <br />ATN/AGR.2020.022/Accela, inc. (Page 7 of 1 S) <br />