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i. Data that is either provided to or acquired by SmartWorks from Customer is owned exclusively by <br />Customer and that the Customer has full right and title to provide the Data to SmartWorks and its third <br />party service provider; <br />ii. Data that is either provided to or acquired by SmartWorks is subject to a privacy policy in effect as of <br />the Effective Date and Customer's customers have provided to Customer their written consent for its <br />collection, use and storage by SmartWorks and its third -party service providers in accordance with <br />this Agreement and in any jurisdiction in North America; <br />iii. Customer complies with all applicable privacy legislation as of the Effective Date in the performance <br />of its obligations hereunder in respect of any Data collected, used, transferred, created or disclosed <br />pursuant to this Agreement; and <br />iv. Customer will not provide SmartWorks with data of any kind for which SmartWorks or its third party <br />service provider either has no need or does not have the right to collect, use and store under the terms <br />of this Agreement. <br />(d) Audit Rights <br />In order to assist SmartWorks with the protection of its proprietary information and Confidential Information <br />and to enable SmartWorks to verify Customer's compliance with the terms and conditions of this Agreement, <br />Customer shall permit SmartWorks and its independent auditor to visit during normal business hours any <br />premises at which the Hosting Services are used or being accessed and shall provide SmartWorks with access <br />to its records including usage data. SmartWorks shall provide Customer with reasonable notice of any such <br />audit, but in no event less than 15 business days. <br />13. Confidential Information <br />The parties agree to keep confidential any and all Confidential Information with respect to the other party which it <br />has received or may in the future receive in connection with this Agreement and shall only disclose such <br />Confidential Information of the other party (i) to its agents, employees or representatives who have a need to know <br />such information, for the purpose of performance under this Agreement and exercising the rights granted under <br />this Agreement, and who have entered into a non -disclosure agreement at least as protective of the other party's <br />Confidential Information as this Agreement, or (ii) to the extent required by applicable law or during the course of <br />or In connection with any litigation, arbitration or other proceeding based upon or in connection with the subject <br />matter of this Agreement, provided that the receiving party shall give the disclosing party reasonable notice prior <br />to such disclosure and shall comply with any applicable protective order or equivalent. The parties each agree to <br />hold the other party's Confidential Information in confidence and to take all reasonable steps, which shall be no <br />less than those steps it takes to protect its own confidential and proprietary information, to protect the Confidential <br />Information of the other party. <br />In addition to any other restrictions on SmartWorks' use of the Data, the confidentiality obligations above apply <br />except to the extent that both parties agree that the Data may be subject to privacy laws providing for the owners <br />of the Data to review such Data or to challenge the collection and storage of the Data. Customer shall indemnify <br />and reimburse SmartWorks in relation to all reasonable fees and other disbursements paid by SmartWorks to <br />comply with such requests, whether by an individual or a government body, or to challenge such requests at either <br />SmartWorks' or Customer's request. Customer represents and warrants to SmartWorks that as of the Effective <br />Date no individual, government body or third party has requested a review of the Data or challenged the collection <br />and storage of the Data to be stored in the Software. <br />14. Indemnity <br />Customer is solely responsible for its Data, its use, and its Users' use, of the Hosting Services in any way, and all <br />legal liability arising out of or relating thereto. Customer shall defend, indemnify and hold SmartWorks and its third <br />N. Harris Computer Corporation — Confidential Page 10 of 18 <br />