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EXTENT PERMITTED BY APPLICABLE LAW. Accela will <br />not be responsible to the extent failure of the Service <br />to operate as warranted is caused by or results from: <br />(i) any modification to the Service other than a <br />Supported Modification; (ii) combination, operation <br />or use of the Service with Customer's or a third party's <br />applications, software or systems; (iii) abuse, willful <br />misconduct or negligence by anyone other than <br />Accela or Accela's designee; (iv) use of the Service <br />other than in accordance with the terms of this <br />Agreement and/or the applicable Specifications and <br />Accela documentation or (v) any of the SLC Exclusions <br />(as defined in the Service Level Commitment). <br />7. MUTUAL INDEMNIFICATION <br />7.1. Indemnification by Customer. Customer will <br />defend (or settle), indemnify and hold harmless <br />Accela, its officers, directors, employees and <br />subcontractors, from and against any liabilities, <br />losses, damages and expenses, including court costs <br />and reasonable attorneys' fees, arising out of or in <br />connection with any third -party claim that: (i) a third <br />party has suffered injury, damage or loss resulting <br />from Customer's or any End User's use of the Service <br />(other than any claim for which Accela is responsible <br />under Section 7.2); or (ii) Customer or any End User <br />has used the Service in a manner that violates these <br />Terms or applicable law. Customer's obligations <br />under this Section 7.1 are contingent upon: (a) Accela <br />providing Customer with prompt written notice of <br />such claim; (b) Accela providing reasonable <br />cooperation to Customer, at Customer's expense, in <br />defense and settlement of such claim; and (c) <br />Customer having sole authority to defend or settle <br />such claim. <br />7.2. Indemnification by Accela. Accela will defend (or <br />settle) any suit or action brought against Customer to <br />the extent that it is based upon a claim that the <br />Service, as furnished by Accela hereunder, infringes <br />or misappropriates the Intellectual Property Rights of <br />any third party, and will pay any costs, damages and <br />reasonable attorneys' fees attributable to such claim <br />that are awarded against Customer. Accela's <br />obligations under this Section 7.2 are contingent <br />upon: (a) Customer providing Accela with prompt <br />written notice of such claim; (b) Customer providing <br />reasonable cooperation to Accela, at Accela's <br />expense, in the defense and settlement of such claim; <br />and (c) Accela having sole authority to defend or <br />settle such claim. THIS SECTION 7.2 STATES THE <br />ENTIRE OBLIGATION OF ACCELA AND ITS LICENSORS <br />Accela SaaS Master Services Agreement <br />Form Approved by Legal (v.1 09/15/2017) <br />WITH RESPECT TO ANY ALLEGED OR ACTUAL <br />INFRINGEMENT OR MISAPPROPRIATION OF <br />INTELLECTUAL PROPERTY RIGHTS BY THE SERVICE. <br />Accela will have no liability under this Section 7.2 to <br />the extent that any third -party claims described <br />herein are based on any combination of the Service <br />with products, services, methods, or other elements <br />not furnished by Accela, or any use of the Service in a <br />manner that violates this Agreement or the <br />instructions given to Customer by Accela. <br />7.3. Mitigation Measures. In the event that (i) any <br />claim or potential claim covered by Section 7.2 arises <br />or (ii) Accela's right to provide the Service is enjoined <br />or in Accela's reasonable opinion is likely to be <br />enjoined, Accela may, in its discretion, seek to <br />mitigate the impact of such claim or injunction by <br />obtaining the right to continue providing the Service, <br />by replacing or modifying the Service to make it non - <br />infringing, and/or by suspending or terminating <br />Customer's use of the Service with reasonable notice <br />to Customer. In the case of a suspension or <br />termination pursuant to this Section 7.3, Accela will <br />refund to Customer a portion of fees prepaid by <br />Customer for the then -current Subscription period, <br />prorated to the portion of that Subscription period <br />that is affected by the suspension or termination). <br />8. LIMITATIONS OF LIABILITY. IN NO EVENT WILL <br />ACCELA'S AGGREGATE LIABILITY TO CUSTOMER OR <br />ANY THIRD PARTY ARISING OUT OF OR IN <br />CONNECTION WITH THIS AGREEMENT OR FROM THE <br />USE OF OR INABILITY TO USE THE SERVICE, WHETHER <br />IN CONTRACT, TORT OR UNDER ANY OTHER THEORY <br />OF LIABILITY, EXCEED THE TOTAL AMOUNT PAID BY <br />CUSTOMER HEREUNDER OR, WITH RESPECT TO ANY <br />SINGLE INCIDENT, THE AMOUNT PAID BY CUSTOMER <br />HEREUNDER IN THE TWELVE (12) MONTH PERIOD <br />PRECEDING THE INCIDENT. <br />8.1. Exclusion of Damages. NEITHER ACCELA NOR <br />ANY OTHER PERSON OR ENTITY INVOLVED IN <br />CREATING, PRODUCING, OR DELIVERING THE SERVICE <br />WILL BE LIABLE FOR ANY INCIDENTAL, SPECIAL, <br />EXEMPLARY OR CONSEQUENTIAL DAMAGES, <br />INCLUDING LOST PROFITS, LOSS OF DATA OR LOSS OF <br />GOODWILL, SERVICE INTERRUPTION, COMPUTER <br />DAMAGE OR SYSTEM FAILURE OR THE COST OF <br />SUBSTITUTE PRODUCTS OR SERVICES, ARISING OUT <br />OF OR IN CONNECTION WITH THIS AGREEMENT OR <br />FROM THE USE OF OR INABILITY TO USE THE SERVICE, <br />WHETHER BASED ON WARRANTY, CONTRACT, TORT <br />Page 12 of 19 <br />City of Hugo, MN <br />