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Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right <br />to continue its use; (b) modify it to make it non -infringing; or (c) replace it with a functional equivalent, <br />in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, <br />we may decide to litigate the claim to Judgment, in which case you may continue to use the Tyler <br />Software consistent with the terms of this Agreement. <br />1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is <br />enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or <br />settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; <br />(b) modify it to make it non -infringing; (c) replace it with a functional equivalent; or (d) terminate your <br />license and refund the license fees paid for the infringing Tyler Software, as depreciated on a straight- <br />line basis measured over seven (7) years from the Effective Bate. We will pursue those options in the <br />order listed herein. This section provides your exclusive remedy for third party copyright, patent, or <br />trademark infringement and trade secret misappropriation claims. <br />2. General Indemnification. <br />2,1 We will indemnify and hold harmless you and your agents, officials, and employees from and against any <br />and all third -party claims, losses, liabilities, damages, costs, and expenses (including reasonable <br />attorney's fees and costs) for (a) personalinjury or property damage to the extent caused by our <br />negligence or willful misconduct; or (b) our violation of a law applicable to our performance under this <br />Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense <br />or settlement. You agree to provide us with reasonable assistance, cooperation, and information in <br />defending the claim at our expense. <br />2.2 To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, <br />officials, and employees from and against any and all third -party claims, losses, liabilities, damages, <br />costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property <br />damage to the extent caused by your negligence or willful misconduct; or (b) your violation of a law <br />applicable to your performance under this Agreement. We will notify you promptly in writing of the <br />claim and will give you sole control over its defense or settlement. We agree to provide you with <br />reasonable assistance, cooperation, and information in defending the claim at your expense. <br />3. DISCLAIMER. EXCEPT FOR THE (EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE <br />MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW,WE HEREBY DISCLAIM ALL OTHER WARRANTIES <br />AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY <br />IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR <br />PURPOSE. <br />4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR <br />LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF <br />CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL <br />DIRECT DAMAGES, NOT TO EXCEED (A) PRIOR TO FORMAL TRANSITION TO MAINTENANCE AND SUPPORT, <br />THE TOTAL ONE-TIME FEES SET FORTH IN THE INVESTMENT SUMMARY; OR (B) AFTER FORMAL <br />TRANSITION TO MAINTENANCE AND SUPPORT, THE THEN -CURRENT ANNUAL MAINTENANCE AND <br />SUPPORT FEE. THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION <br />OF LIABILITY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT <br />TO SECTIONS H(1) AND H(2). <br />