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Porterhouse | City of Pleasanton, California | Professional Services Agreement | Page 7 <br />from a court to prevent irreparable harm. All communications during the Escalation Process <br />are treated as compromise and settlement negotiations, without prejudice. <br />Section 5: Creation of Deliverables <br />5.1 Generally. Porterhouse creates Deliverables independently, using its own personnel and, <br />where approved under Section 3.5, Subcontractors. <br />5.2 Third-Party Materials. Porterhouse shall not include Third-Party Materials in a Deliverable <br />unless (a) they are specifically identified in the SOW, and (b) Porterhouse has obtained, at its <br />own expense, rights sufficient to license them to the City under Section 6.2. <br />5.3 Open Source. For each Deliverable, Porterhouse shall list every Open Source component <br />(including nested components) with its complete license and copyright attribution. Unless <br />the SOW states otherwise, no Deliverable may include Open Source subject to a Copyleft <br />License. To the extent required, the applicable Open Source license governs the City's use of <br />that component. <br />Section 6: Rights in Deliverables <br />6.1 Designation. Each Deliverable is either Licensed or Assigned, as designated on the Cover <br />Page. The SOW controls if it designates a specific Deliverable differently. <br />6.2 Licensed Deliverables. For Deliverables designated as Licensed, and for Third-Party <br />Materials and Reserved Materials contained in Assigned Deliverables, Porterhouse grants the <br />City a non-exclusive, royalty-free, irrevocable, worldwide, transferable, perpetual license (with <br />the right to sublicense through multiple tiers) to use, execute, reproduce, distribute, display, <br />perform, modify, adapt, and prepare derivative works of the materials for City purposes. <br />6.3 Assigned Deliverables. For Deliverables designated as Assigned: (a) upon payment, <br />Porterhouse irrevocably assigns to the City all right, title, and interest in the Deliverable, <br />including intellectual property rights; (b) copyrightable aspects are deemed works made for <br />hire under 17 U.S.C. Section 101 to the extent permitted by Law; (c) Third-Party Materials within <br />an Assigned Deliverable are licensed under Section 6.2, not assigned; (d) Reserved Materials <br />may be included in a Deliverable only if identified in the SOW, and are licensed under Section <br />6.2, not assigned; (e) Porterhouse waives moral rights to the extent permitted by Law; and (f) <br />Porterhouse shall execute further documents reasonably requested to perfect the City's <br />ownership, at the City's expense. <br />6.4 Porterhouse IP. Porterhouse retains all right, title, and interest in Porterhouse IP. The City <br />receives a non-exclusive, royalty-free right to use Porterhouse IP solely for its internal <br />Docusign Envelope ID: 0FE3D53F-485C-88F0-83B1-0E900318BA33