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<br />wind, lightning, transportation subsequent to delivery, or <br />force majeure. <br />(d) Inspection of altered Equipment, repair of damage or <br />increase in service time caused by alterations not authorized <br />by ltron, which alterations include, but are not limited to, any <br />deviation from Itron's physical, mechanical or electrical <br />Equipment design. <br />(e) Repair of damage or increase in service time caused by the <br />conversion from one Itron model to another or the <br />installation or removal of an Itron feature whenever any of <br />the foregoing was performed by other than Itron or its <br />authorized agents. <br />(f) Service time and materials associated with the <br />rearrangement or relocation of Equipment. <br />(g) Service time and materials associated with Licensed <br />Software and/or Equipment nonperformance when used with <br />an operating system or configuration not recommended by <br />Itron. <br /> <br />SECTION 5. RIGHTS AND OBLIGATIONS <br />5.1 InfrinQement Indemnitv. ltron will defend End User against a <br />claim that Equipment or Licensed Software supplied hereunder <br />infringes a U.S. patent, copyright, trade secret or other proprietary <br />property right or that the Equipment's operation pursuant to a <br />current ltron release and modification level of any Licensed <br />Software supplied by ltron infringes a U.S. patent, copyright, trade <br />secret or other proprietary property right, and Itron will pay <br />resulting costs, damages and attorney fees finally awarded, <br />provided that: <br />(a) End User promptly notifies ltron in writing of the claim; and <br />(b) Itron has sole control of the defense and all related <br />settlement negotiations. <br />ltron's obligation under this Section is conditioned on End User's <br />agreement that if the Equipment, or the operation thereof, or the <br />Licensed Software, becomes, or in Itron's opinion is likely to <br />become the subject of such a claim, End User will permit ltron, at <br />ltron's option and expense, either to procure the right for End User <br />to continue using the Equipment or Licensed Software or to <br />replace or modify the same so that they become noninfringing; <br />such replacements or modifications shall be functionally <br />equivalent to the Equipment and Licensed Software; and if the <br />foregoing alternatives are not available on terms which are <br />reasonable in Itron's judgement, End User will return the <br />Equipment or Licensed Software on written request to ltron. ltron <br />shall refund to End User the End User's then book value of such <br />returned Equipment and Licensed Software as depreciated. <br />Itron has no liability for any claim based upon the combination, <br />operation or use of any Equipment or Licensed Software supplied <br />hereunder with equipment or software not approved by ltron, or <br />based upon End User's alteration of the Equipment or modification <br />of any Licensed Software supplied hereunder. <br />The foregoing states the entire obligation of Itron and End User's <br />sole and exclusive remedy with respect to infringement of patents, <br />copyrights, trade secrets or other proprietary property. <br />5.2 Limitation of Liabilitv. ITRON'S AGGREGATE LIABILITY FOR <br />DAMAGES TO END USER SHALL NOT EXCEED THE <br />AMOUNTS PAID BY END USER FOR THE EQUIPMENT AND <br />LICENSED SOFTWARE INVOLVED IN SUCH CLAIM FOR <br />DAMAGES. IN NO EVENT SHALL ITRON BE LIABLE, <br />WHETHER IN CONTRACT, NEGLIGENCE, TORT, OR ON ANY <br />OTHER BASIS, FOR COVER OR FOR INCIDENTAL, SPECIAL, <br />CONSEQUENTIAL (INCLUDING LOSS OF DATA, REVENUE, <br /> <br />4/27/99 <br /> <br />SAVINGS OR PROFITS) OR EXEMPLARY DAMAGES ARISING <br />OUT OF OR IN CONNECTION WITH THE SALE, <br />MAINTENANCE, USE, PERFORMANCE, FAILURE OR <br />INTERRUPTION IN THE OPERATION OF THE EQUIPMENT, <br />LICENSED SOFTWARE OR ANY ITRON SERVICES. <br />5.3 Service After Warranty. The Equipment and Licensed Software <br />are eligible for service under Itron's standard service agreement. <br />The fee for service shall be at ltron's then prevailing rates. At End <br />User's option, the service agreement may commence on the date <br />of expiration of the initial warranty period for the Equipment and/or <br />Licensed Software. <br />5.4 Confidentialitv. Except as required by law or judicial or <br />governmental order, Itron and End User agree to hold in strictest <br />confidence all information and material which is related to the <br />other party's business, which is designated as proprietary and <br />confidential, or which is related to the performance by the other <br />party of its obligations under this Agreement. Proprietary and <br />confidential information includes, but is not limited to the terms of <br />this Agreement, information related to research, development, <br />pricing, trade secrets, customer lists, salaries or business affairs <br />of the parties to this Agreement. Proprietary and confidential <br />information shall not include any information that is: (i) known to <br />the other prior to the effective date of this Agreement, and can be <br />shown to have been so known by documentary evidence; or (ii) <br />obtained by the other without restriction as to the further <br />disclosure thereof from a source other than the party hereto <br />having transferred such information hereunder through no breach <br />of confidence by such source, and can be shown to be so <br />obtained by documentary evidence; or (iii) in the public domain <br />when received, or thereafter enters the public domain through no <br />fault of the other; or (iv) independently developed by the other <br />without reference to such proprietary or confidential information, <br />and can be shown to be so developed by documentary evidence; <br />or (v) required to be disclosed by third party subpoena, applicable <br />law or any governmental authority having jurisdiction, provided <br />that the recipient party gives the disclosing party advance written <br />notice of such required disclosure and cooperates with the <br />disclosing party to limit the scope and use of the information to be <br />disclosed. The parties' obligations of confidentiality under this <br />Agreement shall survive termination of this Agreement. <br />5.5 EQuioment or Licensed Software Modification. Itron's obligations <br />hereunder shall be void to the extent any Equipment or Licensed <br />Software is adversely affected or causes damage in the event End <br />User modifies the Equipment or Licensed Software or uses any <br />attachment, feature, or device on the Equipment, without first <br />obtaining Itron's written approval. <br />5.6 Law Comoliance. In performing their duties and obligations under <br />this Agreement, the parties will comply with all applicable laws, <br />rules and regulations of governmental authorities having <br />jurisdiction. End User shall take all steps reasonably necessary to <br />prevent any use, disclosure or export of the Equipment, Licensed <br />Software and Related Documentation not authorized or permitted <br />by law or by this Agreement. <br />5.7 U.S. Government Restricted Riqhts. If used or acquired by the <br />U.S. Government, the U.S. Government acknowledges and <br />agrees that (a) the Equipment, Licensed Software and Related <br />Documentation constitute "commercial computer software" and/or <br />"commercial computer software documentation" for purposes of <br />48 C.F.R. 12.212 and 48C.F.R 227.7202-3, as applicable, and <br />(b) the U.S. Government's rights are limited to those specifically <br />granted pursuant to this Agreement. <br />5.8 Term and Termination. <br /> <br />2 <br />