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PRODUCTS, MATERIALS OR SERVICES SUPPLIED BY SMARTWORKS IN CONNECTION WITH THIS <br />AGREEMENT FOR DAMAGES FOR ANY CAUSE AND REGARDLESS OF THE FORM OF ACTION, <br />WHETHER IN CONTRACT OR IN TORT, INCLUDING FUNDAMENTAL BREACH OR NEGLIGENCE, SHALL <br />BE LIMITED TO ACTUAL DIRECT DAMAGES AND SHALL NOT EXCEED IN THE AGGREGATE (2x) ANNUAL <br />HOSTING FEES PAID BY CUSTOMER TO SMARTWORKS UNDER THIS AGREEMENT DURING THE THEN - <br />CURRENT TERM OF THE AGREEMENT UP TO AND INCLUDING THE DATE OF TERMINATION (AND IN NO <br />EVENT BEING GREATER THAN 12 MONTHS). <br />CUSTOMER FURTHER AGREES THAT IN NO EVENT SHALL SMARTWORKS OR ITS THIRD PARTY <br />SERVICE PROVIDER BE LIABLE, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT <br />OR IN TORT, INCLUDING FUNDAMENTAL BREACH OR NEGLIGENCE, FOR ANY INDIRECT, PUNITIVE, <br />CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR EXEMPLARY DAMAGES WHATSOEVER, INCLUDING <br />WITHOUT LIMITATION FOR LOST PROFITS, LOSS OF REVENUE, FAILURE TO REALIZE ANTICIPATED <br />SAVINGS, LOST OR DAMAGED DATA, LOSS OF GOODWILL, BUSINESS OPPORTUNITIES OR <br />REPUTATION, OR ECONOMIC LOSS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, <br />EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGES, OR <br />SUCH LOSSES OR DAMAGES ARE FORESEEABLE. <br />10. Suspension and Termination <br />(a) Suspension of Hosting Services. In addition to any other rights that SmartWorks may have under this <br />Agreement, at law or in equity, SmartWorks may suspend, limit or terminate Customers' use of the Hosting Services <br />if SmartWorks determines there is a material breach of this Agreement, a security breach, or violation of law by <br />Customer or any User. If SmartWorks'service provider determines that the cause of the suspension can reasonably <br />be remedied, SmartWorks will provide notice of the actions Customer and its Users must take to reinstate the <br />Hosting Services. If such action is not taken within a reasonable time, SmartWorks may terminate this Agreement <br />effectively immediately upon written notice to Customer to that effect. <br />(b) This Agreement may be terminated as follows: <br />If SmartWorks is in material breach of any of its obligations or any provision under this Agreement, <br />Customer must notify the breaching party in writing of such default (a "Default Notice"). Upon receipt of a <br />Default Notice, SmartWorks must correct the default at no additional cost to Customer within ninety (90) <br />days, or issue a written notice of its own disputing the alleged default within thirty (30) days, of the date of <br />receipt of a Default Notice. If SmartWorks fails to correct the default within such ninety (90) day period, <br />and did not issue a notice disputing the alleged default within such thirty (30) day period, Customer may <br />terminate this Agreement upon written notice to SmartWorks to that effect <br />If Customer has failed to pay any amounts when due under this Agreement, SmartWorks shall have the <br />right to (i) suspend performance of the Hosting Services (including Customer access to the Hosting <br />Services) until all amounts are paid in full; and/or (ii) terminate this Agreement effective immediately upon <br />written notice to Customer to that effect. <br />SmartWorks may terminate this Agreement effective immediately upon written notice to Customer if <br />Customer has breached its obligations of confidentiality or any intellectual property right or proprietary right <br />of SmartWorks or its service provider or in accordance with Section 10(a) in the event of a material breach <br />by Customer. <br />iv. Either party may terminate this Agreement effective immediately upon written notice to the other party if the <br />other party: (i) becomes insolvent; (ii) becomes the subject of any proceeding under any bankruptcy, <br />insolvency or liquidation law, whether domestic or foreign, and whether voluntary or involuntary, which is <br />not resolved favorably to the subject party within ninety (90) days of commencement thereof; or (iii) <br />becomes subject to property seizure under court order, court injunction or other court order which has a <br />material adverse effect on its ability to perform hereunder. <br />N. Hams Computer Corporation —Confidential Page 7 of 18 <br />