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non -Microsoft software hosted in an Online Service by Microsoft on Enrolled Affiliate's behalf <br />misappropriates a trade secret or directly infringes a patent, copyright, tradernark, or other <br />proprietary right of a third party; or (2) Enrolled Affiliate's use of any PfadUcl or Fix., alone or in <br />combination with anything else, violates the lmto or damages a third party. <br />12, Limitation of liability. <br />For each Product, each party's maximum, aggregate liability to the other under this Agreement is limited <br />to direct damages finally awarded in an amount not to exceed the amounts Enrolled Affiliate was required <br />to pay for the applicable Products during the Iterm of this Agreement, subject to the following: <br />a. Online Services. Par Online Services, Microsoft's maximum liability to Enrolled Affiliate for <br />any incident giving rise to a claim will not exceed the amount Enrolled Affiliate paid for the <br />Online Service during the '12 months before the incident. <br />b. Free Products and Distributable Corte. For Products provided free of charge and code <br />that Enrolled Affili2te is authorized to redistribute tothird parties without separate payment to <br />Microsoft, Microsoft's liability is Limited to direct damages finally awnl'ded up to USS5,000. <br />c, Exciusloros. In no event will either party he liable for indirect, incidental, special, punitive, or <br />consetluential damages, or for loss of use, loss of business information, loss of revenue, or <br />interruption of business, howevdr caused or on any theory of liability. <br />d. Exceptions. No limitation or exclusions .will apply to liability arising out of either part, s (1) <br />confidentiality obligations (except for all liability related to Customer Data, which will remaln <br />subject to the limitations and exclusions above); (2) defense obligations; or (3) violnlion of the <br />other party's intellectual property rights. <br />i <br />13. Verifying compliance. <br />a. bight to verify compliance. Enrolled Affiliate must keep records relating to all use and <br />distribution of Products by Enrolled Affiliate and its Affiliates. Microsoft has the right, at its <br />expense, to the extent permitted by applicable law, to verify compliance with the ProdUCt'S <br />license terms. Enrolled Affiliate rnusl promptly provide the independent auditor with any <br />Information the auditor reasonably rectuests in furtherance of the verification, including access <br />to systens running the Products.and evidence of Licenses for Products Enrolled Affiliate hosts, <br />suhlicenses, or dishibutes to third parties. Enrolled Affiliate agrees to complete Microsoft's <br />self -audit process, which Microsoft may require as an alternative to a third party audit. <br />b. Remedies for non-compliance. If verification or self -audit reveals any unlicensed use or <br />distribution, them within 30 days, (1) Enrolled Affiliate must order sufficient Licenses to cover <br />that use or distribution, and (2) if unlicensed Use or distribution is 5% or more, Enrolled Affiliate <br />inusl reimburse Microsoft for the cost Microsoft has incurred in verification and acquire the <br />necessary additional licenses at '1251/1n of the price based on the then -current price list and <br />Enrolled Affiliate price level, The unlicensed use percentage is based on the total number of <br />licenses purchased compared td actual Install base. If there is no unlicensed use, Microsoft wiil <br />not subject Enrolled Affiliate tolanother verification for at least one year, By exercising the <br />rights and procedures described above, Microsoft does not waive its rights to enforce this <br />Agreement or to protect its intellectual property by any other means permitted by law. <br />c. Verification process. Microsoft will notify Enrolled Affiliate at least 30 days in advance of its <br />Intent to verify Enrolled Affiliate''s compliance with the license terms for the Products Enrolled <br />Affiliate and its Affiliates use or distribute. Microsoft will engage an independent auditor, which <br />will be subject to n confidentiality obligation. Any information collected in the self -audit will be <br />used solely far purposes of determining compliance. This verification will take place during <br />normal business hours and in a manner that does not Interfere unreasonably with Enrolled <br />Affiliate's operations. <br />E-A2a1f1:syr(l15} it CitErJCij(PIUV21116} I':icIH'.I ol I I <br />accunreni X7.0• I n2n9 <br />