Tesla 2011 Annual Report Download - page 171

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CONFIDENTIAL TREATMENT REQUESTED BY TESLA MOTORS, INC.
TESLA AND TMC CONFIDENTIAL INFORMATION
EXECUTION VERSION
Technology (when Tesla is the Indemnifying Party) or the TMC Technology (when TMC is the Indemnifying Party) by anyone other than the
Indemnifying Party, (iv) the Indemnified Party continuing the allegedly infringing or misappropriating activity after being informed by the
Indemnifying Party of modifications that would have avoided the alleged infringement or misappropriation, or (v) use of the Tesla Technology
or Prototype Powertrain Systems (when Tesla is the Indemnifying Party), or the TMC Technology (when TMC is the Indemnifying Party) in a
manner that is in breach of the terms and conditions of this Agreement.
(d) Conditions . The Parties’ indemnification obligations under this Section 8 are contingent upon: (i) the Indemnified Party giving prompt
written notice to the Indemnifying Party of any claim under Section 8(a) and 8(b) (provided, however, that failure to give such notification shall
not affect the indemnification provided thereunder except to the extent, and only to the extent, that the Indemnifying Party shall have been
actually prejudiced as a result of such failure), and (ii) at the Indemnifying Party’s request and expense, the Indemnified Party cooperating in the
investigation and defense of such claim(s). The Indemnified Party shall be entitled to participate in (but not control) such investigation and/or
defense and to retain its own counsel, at its own expense. The Indemnifying Party shall not settle or consent to an adverse judgment in any such
claim that adversely affects the rights or interests of the Indemnified Party or imposes additional obligations on the Indemnified Party, without
the prior express written consent of the Indemnified Party which consent shall not be unreasonably withheld.
9. LIMITATION OF LIABILITY
EXCEPT FOR BREACHES OF SECTION 6 (CONFIDENTIALITY), UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE
LIABLE TO THE OTHER PARTY, UNDER ANY CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER LEGAL OR
EQUITABLE THEORY, FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOST PROFITS OR COST
OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES IN CONNECTION WITH THE SUBJECT MATTER OF THIS
AGREEMENT HOWEVER CAUSED AND UNDER ANY THEORY OF LIABILITY, INCLUDING BUT NOT LIMITED TO CONTRACT
OR TORT AND WHETHER OR NOT SUCH PARTY WAS OR SHOULD HAVE BEEN AWARE OR ADVISED OF THE POSSIBILITY
OF SUCH DAMAGE AND NOTWITHSTANDING THE FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY STATED
HEREIN. EXCEPT FOR BREACHES OF SECTION 6 (CONFIDENTIALITY), IN NO EVENT SHALL EACH PARTY’S LIABILITY
ARISING OUT OF THIS AGREEMENT EXCEED [ *** ]. THE PARTIES AGREE THAT THIS SECTION 9 REPRESENTS A
REASONABLE ALLOCATION OF RISK.
10. TERM AND TERMINATION
(a) Term of Agreement . Unless otherwise terminated as provided herein, this Agreement shall be effective upon the Effective Date and
shall remain in force until March 31, 2012 (“ Term ”) unless earlier terminated pursuant to the provisions of Section 10(b) or (c).
-19-
***Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been filed separately with the
Commission.