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(vii) Customer's failure to upgrade hardware to meet the demands of any upgraded Software or improvements in <br />Software functionality; which SmartWorks has stated to Customer is required; <br />(vii!) Customer's computer(s), network or other hardware malfunctioned and the malfunction caused the defect, <br />or any other event of force majeure as set out in Section 15(h); <br />(ix) Any failures, losses or errors resulting from or related to hosting services used in connection with the Software, <br />including without limitation, any harmful actions of Users or third parties, or resulting from corrupt data (for <br />greater certainty, Customer is not permitted to use a third party to host the Software, such hosting services <br />may only be provided by SmartWorks' service providers or where applicable its authorized reseller's service <br />providers that have been approved by SmartWorks in advance in writing); or <br />(x) Any failure of the Software due to external causes such as, but not limited to, power failures or electrical surges. <br />(c) Custom erWarranty. <br />Customer represents and warrants to SmartWorks that it shall comply with all applicable laws in connection with <br />its use of the Software and in its performance under this Agreement including but not limited to those laws <br />regarding restrictions on exports and economic sanctions including end -user, end use and destination restrictions <br />by Canadian, U.S. and other governments related to SmartWorks and its service providers products, services and <br />technologies, and the U.S. Export Administration Regulations, and the International Traffic in Arms Regulations). <br />(d) Disclaimer. <br />TO THE GREATEST EXTENT PERMITTED BY LAW, EXCEPT FOR THE EXPRESS LIMITED WARRANTY SET <br />OUT IN SECTION 10(A) THE SOFTWARE IS LICENSED, THE MAINTENANCE AND SUPPORT SERVICES, <br />ALL DOCUMENTATION AND OTHER MATERIALS AND SERVICES ARE PROVIDED TO CUSTOMER, "AS IS" <br />AND THERE ARE NO WARRANTIES, REPRESENTATIONS OR CONDITIONS, EXPRESSED OR IMPLIED, <br />WRITTEN OR ORAL, ARISING BY STATUTE, OPERATION OF LAW, COURSE OF DEALING, USAGE OF <br />TRADE OR OTHERWISE, REGARDING THEM OR ANY OTHER PRODUCT, SERVICE OR MATERIAL <br />PROVIDED HEREUNDER OR IN CONNECTION HEREWITH. <br />SMARTWORKS, ITS LICENSORS AND SUPPLIERS DISCLAIM ANY IMPLIED WARRANTIES OR <br />CONDITIONS REGARDING THE SOFTWARE, THE DOCUMENTATION, THE PROFESSIONAL SERVICES, <br />THE MAINTENANCE AND SUPPORT SERVICES, AND ANY OTHER PRODUCTS, SERVICES AND <br />MATERIALS PROVIDED HEREUNDER OR IN CONNECTION HEREWITH, INCLUDING, BUT NOT LIMITED <br />TO, WARRANTIES OF MERCHANTABLE QUALITY, MERCHANTABILITY, DURABILITY, FITNESS FOR A <br />PARTICULAR PURPOSE, TITLE OR NON -INFRINGEMENT. <br />it. Intellectual Property Indemnity <br />(a) In the event that there is a third party claim against Customer alleging that Customer's use of the Software <br />in accordance with this Agreement constitutes an infringement of a valid United States or Canadian patent, <br />copyright, trade -mark or trade secret, SmartWorks shall, at its expense, defend Customer and pay any amounts <br />finally awarded against Customer by a court of competent jurisdiction or agreed to in a settlement approved by <br />SmartWorks in advance, provided that: (i) Customer gives SmartWorks prompt written notice of any such claim <br />and full opportunity to defend the same; (ii) Customer has not made any admissions or entered into settlement <br />negotiations either prior to or after providing notice to SmartWorks of the applicable claim except with SmartWorks' <br />prior written consent, (ii) SmartWorks has sole control of the defense of any claim or proceeding and all <br />negotiations for its compromise or settlement; and (iv) Customer assists and provides information to SmartWorks <br />throughout the action or proceeding. <br />(b) SmartWorks' liabilityfor any claims under this Section 11 shall be reduced to the extent such claim arises <br />from: (i) alterations or modifications to the Software by Customer or a third party in any manner whatsoever except <br />with the prior written consent of SmartWorks; (ii) combination, integration or use of the Software with software, <br />hardware or other materials other than the Required Hardware and Required Software where such claim would <br />not have arisen but for such combination, integration or use; (iii) use of the Software other than in compliance with <br />