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<br />11. PATENT. COPYRIGHT AND TRADE SECRET INFRINGEMENT. <br /> <br />11.1 Intellectual Property Indemnity. Subject to the terms and conditions of this <br />Agreementt Granicus will defend any suit brought by a third party against Client to the extent <br />based on a claim that the Granicus Software infringes any United States patent, copyrightt trade <br />secret or trademark, and Granicus will pay any final judgment rendered on, or settlement agreed to <br />in writing by Granicus with respect to, such claim. These obligations are contingent upon Client <br />promptly notifying Granicus in writing of any claims or threatened claims, Granicus having sole <br />control over the defense and all negotiations for settlement of any such claim, and Client giving all <br />reasonable assistance to Granicus in the defense and settlement of the claim. These obligations are <br />fmther subject to Client being in compliance with its payment obligations under this Agreement. <br />Granicus will not be responsible for any settlement it does not approve in writing. THE <br />FOREGOING IS IN LIEU OF ANY WARRANTIES OF NON INFRINGEMENT, WHICH ARE <br />DISCLAIMED. <br /> <br />11.2 Granicus' Options. If the Granicus Software becomes, or in Granicus' opinion is <br />likely to become, the subject of an infringement claim, Granicus may, at its option and sole <br />discretiont (i) obtain for Client the right to continue to use the Granicus Software as provided in <br />this Agreement; (ii) replace the Granicus Software with another software product that provides <br />similar functionality; or (iii) if Granicus determines that neither of the foregoing options are <br />reasonably available, Granicus may cease providing the applicable services or require that Client <br />cease use of and destroy the Granicus Software. In that event, and provided that Client returns or <br />destroys (and celtify to such destluction of) all copies of the Granicus Software in Client's <br />possession 01' control, if any, Granicus will refund to Client aU license fees paid by Client under the <br />current Agreement. <br /> <br />11.3 Limitations of Indemnity. Granicust obligations under Section II do not apply to <br />any claims, damages or liabilities arising out of or relating to any of the following ('~Excluded <br />Claims"): (i) the combination of the Granicus Software with any other software, products, <br />hardware, component, process or material not obtained from Granicus; (ii) any modification to the <br />Granicus Software (unless made by Granicus) if the alleged infringement arises from such <br />modification; (iii) use of the Granicus Software in a manner not permitted by or in breach of this <br />Agreement; (iv) Client's failure to use replacement or modified Granicus Software that provides <br />substantially similar functionality as the original Granicus Software and the replacement or <br />modified Granicus Software would have rendered the Granicus Software noninfringing; or (v) <br />Granicus' compliance with Client's instructions, specifications or requirements. Client will <br />indemnify and hold harmless Granicus with respect to any and all Excluded Claims. <br /> <br />12. MISCELLANEOUS. <br /> <br />12.1 Insurance Requirements. Granicus understands and agrees to comply with the <br />standards and requirements that Client has set forth in the Insurance Requirements listed in Exhibit <br />E. <br /> <br />12.2 Export Restrictions. The parties will comply with all applicable laws, tules and <br />regulations, including export lawst in its performance under this Agreement. In particular, Client <br />acknowledges and agrees that the Graniclls Software and other materials provided by Granicus are <br />subject to regulation by U.S. Government agencies and other governmental authol'itiest and Client <br />agrees not to directly or indirectly export, re-export or import any such materials without first <br />obtaining all required licenses and permissions. <br /> <br />GRANICUS. INC. SERVICE AOREEMENT <br /> <br />8 <br /> <br />V crsiOI1 4.1.2 <br />