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non -Microsoft sohwere hosted in an online Service by Microsoft on Enrolled Affiliate's behalf <br />misappropriates a trade secrot or directly Infringes a patent, copyright, Irademadc, or other <br />proprietary right of a third party; or (2) Enrolled Affiliate's use of any Product or Fix, alone or in <br />combination with anything else, blolales the law or damages a third party. <br />1 <br />12. Limitation of liability. <br />For each Product, each pa ty s maximum, aggregate liability to the other under (his Agreement is limited <br />to direct damages linally awarded in an anoint not to exceed the amounts Enrolled Affiliate was required <br />to pay for the applicable Products during Ihetlenn of this Agreement, subject to the following: <br />n. Online Services. Por Online Services, Microsoft's maximum liability to Enrolled Affiliate for <br />any incident giving rise to a clair 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 Code. For Products provided free of charge and code <br />that Enrolled Affiliate Is authorized to redistribute to third parties without separate payment to <br />Microsoft, Microsoft's liability is limited to direct damages finally awarded up to US55,000. <br />c. Exclusions. In no event will either party be liable for indirect, incidental, special, punitive, or <br />consequential damages, or for loss of use, loss or business Information, loss of revenue, or <br />interruption of business, however caused or on any theory of Ifabiily. <br />d. Exceptions. No limitation or exclusionswill apply to liability arising out of either parry's (1) <br />confidentiality obligations (except for all liability related to Customer Data, which will remain <br />subject to the limitations and exclusions above); (2) defense obligations; or (3) violation of the <br />other party's Intellectual property rights. <br />13. Verifying compliance. <br />a. Right to verify compliance. Enrolled Affiliate must keep records relating to all use and <br />distribution of Products by Enrdlled Affiliate and its Affiliates. Microsoft has the right, at Its <br />expense, to the extent permitted by applicable law, to vedfy compliance with the Product's <br />license terms. Enrolled Affiliate must promptly provide the Independent auditor with any <br />infomnalfon the auditor reasonably requests in furtherance of the verification, Including access <br />to systems running the Products and evidence of Licenses for Products Enrolled Affiliate hosts, <br />suhlicenses, or dishlbules to third parties. Enrolled Affiliate agrees to camptete Microsoft';. <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 of <br />distribution, then wllhin 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 />must reimburse Microsoft for the cost Microsoft has Incurred In verification and acquire the <br />necessary additional licenses al •125% 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 />Ilcenses purchased compared to actual Install base. If there is no unlicensed use, Microsoft vrlll <br />no( subject Enrolled Affiliate to lanother 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 properly 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 leans for the Products Enrolled <br />Affiliate and Its Affiliates use or distribute. Microsoft will engage an independent auditor, which <br />will be subject to a confidentiality obligation. Any information collected in the self -audit will be <br />used solely for purposes of delermining compliance. This verification will lake place during <br />normal business hours and in a manner Thal does not Interfere unreasonably with Entailed <br />Affiliate's operations, <br />EAUU)Agi tUS)SLGJliNG)(N6v2ene) Page g nu 11 <br />Dcruinxnl X20-10209 <br />