this indemnity shall not extend to conduct of contractor which is discretionary to contractor. contractor shall defend and indemnify company and company's affiliates against all other claims or lawsuits based on the actual or alleged infringement or misappropriation of any third-party right. the indemnities set forth in this sub-article shall include,with out limitation , all penalties, awards , and judgments; all court and arbitration costs; legal costs ; and other reasonable out-of-pocket costs incurred in connection with such claims or lawsuits. the indemnifying party shall have the right to control the defense of any litigation, and to settle or compromise all claims and lawsuits. the indemnifying party if any settlement or compromise (a) requires the indemnified party to part with any property right or interest, assume any obligation or make any payment not indemnified, or (b) subjects the indemnified party to any injunction. subject to the foregoing, the indemnified party shall have the right, at its option and expense, but not the obligation , to retain advisory counsel to represent its interests in defending any such claim or law suit