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Motorola understands that if funding is not appropriated, the Customer will have to terminate the <br /> contract. The Customer will only need to notify Motorola promptly and pay for all equipment, including <br /> third party equipment ordered for this project, and services up to the date of termination. Motorola will <br /> agree to cease work, shipments, and use reasonable efforts to mitigate any damages caused by an <br /> abrupt termination. <br /> Section 13 INDEMNIFICATION <br /> 13.1. GENERAL INDEMNITY BY MOTOROLA. Motorola will indemnify and hold Customer harmless <br /> from any and all liability, expense, judgment, suit, cause of action, or demand for personal injury, death, <br /> or direct damage to tangible property which may accrue against Customer to the extent it is caused by <br /> the negligence of Motorola, its subcontractors, or their employees or agents, while performing their duties <br /> under this Agreement, if Customer gives Motorola prompt, written notice of any claim or suit. Customer <br /> will cooperate with Motorola in its defense or settlement of the claim or suit. This section sets forth the full <br /> extent of Motorola's general indemnification of Customer from liabilities that are in any way related to <br /> Motorola's performance under this Agreement. <br /> 13.2. GENERAL INDEMNITY BY CUSTOMER. Customer will indemnify and hold Motorola harmless <br /> to the extent provided by North Carolina law from any and all liability, expense, judgment, suit, cause of <br /> action, or demand for personal injury, death, or direct damage to tangible property which may accrue <br /> against Motorola to the extent it is caused by the negligence of Customer, its other contractors, or their <br /> employees or agents, while performing their duties under this Agreement, if Motorola gives Customer <br /> prompt, written notice of any the claim or suit. Motorola will cooperate with Customer in its defense or <br /> settlement of the claim or suit. This section sets forth the full extent of Customer's general indemnification <br /> of Motorola from liabilities that are in any way related to Customer's performance under this Agreement. <br /> 13.3. PATENT AND COPYRIGHT INFRINGEMENT. <br /> 13.3.1. Motorola will defend at its expense any suit brought against Customer to the extent it is based on <br /> a third-party claim alleging that the Equipment manufactured by Motorola or the Motorola Software <br /> ("Motorola Product") directly infringes a United States patent or copyright ("Infringement Claim"). <br /> Motorola's duties to defend and indemnify are conditioned upon: Customer promptly notifying Motorola in <br /> writing of the Infringement Claim; Motorola having sole control of the defense of the suit and all <br /> negotiations for its settlement or compromise; and Customer providing to Motorola cooperation and, if <br /> requested by Motorola, reasonable assistance in the defense of the Infringement Claim. In addition to <br /> Motorola's obligation to defend, and subject to the same conditions, Motorola will pay all damages finally <br /> awarded against Customer by a court of competent jurisdiction for an Infringement Claim or agreed to, in <br /> writing, by Motorola in settlement of an Infringement Claim. <br /> 13.3.2. If an Infringement Claim occurs, or in Motorola's opinion is likely to occur, Motorola may at its <br /> option and expense: (a) procure for Customer the right to continue using the Motorola Product; (b) <br /> replace or modify the Motorola Product so that it becomes non-infringing while providing functionally <br /> equivalent performance; or (c) accept the return of the Motorola Product and grant Customer a credit for <br /> the Motorola Product, less a reasonable charge for depreciation. The depreciation amount will be <br /> calculated based upon generally accepted accounting standards. <br /> 13.3.3. Motorola will have no duty to defend or indemnify for any Infringement Claim that is based upon: <br /> (a) the combination of the Motorola Product with any software, apparatus or device not furnished by <br /> Motorola; (b) the use of ancillary equipment or software not furnished by Motorola and that is attached to <br /> or used in connection with the Motorola Product; (c) Motorola Product designed or manufactured in <br /> accordance with Customers designs, specifications, guidelines or instructions, if the alleged infringement <br /> would not have occurred without such designs, specifications, guidelines or instructions; (d) a <br /> modification of the Motorola Product by a party other than Motorola; (e) use of the Motorola Product in a <br /> manner for which the Motorola Product was not designed or that is inconsistent with the terms of this <br /> Agreement; or(f) the failure by Customer to install an enhancement release to the Motorola Software that <br /> is intended to correct the claimed infringement. In no event will Motorola's liability resulting from its <br /> OrangeCountyNC.CSA.5.21.13 9 <br /> Motorola Contract No.79894/CB <br />