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CM-12-11-245ROUND ROCK, TEXAS PURPOSE PASSION. PROSPERITY Item Caption: CIA-12--1(—LcIS RECEIVED NOV 0 8 2012 City Manager Approval Form Microsoft Enterprise Online Services Agreement Approval Date: 11-09-12 Department Name: Information Technology Department Project Manager: Brooks Bennett Assigned Attorney: Ric Bowden Item Summary: This item is a software license agreement with Microsoft through Dell Computer Corp. to add cloud based, online services to our existing Enterprise Agreement with Microsoft. Currently, the City of Round Rock pays for on-site servers and storage to run our email system. Through this agreement, we will begin testing the waters of hosting our email off-site with the goal of moving the entire City to this cloud solution. Through this cloud agreement, we will be able to offer larger mailboxes per user and not need to maintain extra infrastructure for our e-mail and spam filtering systems. No. of Originals Submitted: 4 Project Name: Microsoft Online Services Cost: $3895.00 Source of Funds: General Self -Financed Construction Source of Funds (if applicable): Select Source Fund Account Number: Finance Director Approval: L. Olsen for C. Delaney Date: 11-6-12 Department Director Approval: Brooks Bennett Date: 11/05/12 **Electronic signature by the Director is acceptable. Please only submit ONE approval form per item. ** CIP 17 N/A OK Budget ❑� N/A OK Purchasing I I 17 I Accounting n N/A OK N/A OK ITEMS WILL NOT BE PLACED ON THE COUNCIL OR CM AGENDA W/OUT PRIOR FINANCE AND/OR LEGAL APPROVAL REV. 6/20/11 Program Signature Form MBA/MBSA number Agreement number U1063194 01E61288 Microsoft• I Volume Licensing SGN- SGN-000-sdaily-S- 008 Note: Enter the applicable active numbers associated with the documents below. Microsoft requires the associated active number be indicated here, or listed below as new. For the purposes of this form, "Customer" can mean the signing entity, Enrolled Affiliate, Government Partner, Institution, or other party entering into a volume licensing program agreement. This signature form and all contract documents identified in the table below are entered into between the Customer and the Microsoft Affiliate signing, as of the effective date identified below. Contract Document <Choose Agreement> Number or Code Document Number or Code <Choose Agreement> Document Number or Code <Choose Agreement> Document Number or Code <Choose Agreement> Document Number or Code <Choose Agreement> Document Number or Code <Choose Enrollment/Registration> Document Number or Code <Choose Enrollment/Registration> Document Number or Code <Choose Enrollment/Registration> Document Number or Code <Choose Enrollment/Registration> Document Number or Code <Choose Enrollment/Registration> Document Number or Code Amendment W22 (4634549) Amendment GOVM13 (4634549) By signing below, Customer and the Microsoft Affiliate agree that both parties (1) have received, read and understand the above contract documents, including any websites or documents incorporated by reference and any amendments and (2) agree to be bound by the terms of all such documents. 0.* 121 (.245 ProgramSignForm(MSSign)(NA,LatAm)ExBRA,MLI(ENG)(Oct2011) Page 1 of 2 COPY Customer Microsoft Affiliate Name of Entity (must be legal entity name)* City of Round Rom Signature Printed First and Last Name* StelleiVovwocd Printed Title* a 1 J Matina eiY Signature Date* //01.7" /Z - Microsoft Licensing, GP Signature Printed First and Last Name Printed Title Signature Date (date Microsoft Affiliate countersigns) Tax ID Effective Date (may be different than Microsoft's signature date) * indicates required field Optional 2nd Customer signature or Outsourcer signature (if applicable) Customer Outsourcer Name of Entity (must be legal entity name)* Signature* Printed First and Last Name* Printed Title* Signature Date* Name of Entity (must be legal entity name)* Signature* Printed First and Last Name* Printed Title* Signature Date* If Customer requires physical media, additional contacts, or is reporting multiple previous Enrollments, include the appropriate form(s) with this signature form. If no media form is included, no physical media will be sent. After this signature form is signed by the Customer, send it and the Contract Documents to Customer's channel partner or Microsoft account manager, who must submit them to the following address. When the signature form is fully executed by Microsoft, Customer will receive a confirmation copy. Microsoft Licensing, GP Dept. 551, Volume Licensing 6100 Neil Road, Suite 210 Reno, Nevada 89511-1137 USA Prepared By: Name of Preparer Email of Preparer ProgramSignForm(MSSign)(NA, LatAm)ExBRA,MLI(ENG)(Oct2011) Page 2 of 2 COPY OPY Quotation to M (0 I. w w N a -I O N N N t-1 N N u N al aa) .a .0 E E • d Z C 4�., Z O • H 0' L. a) a W CU ▪ a) 'p 0 CO • a State Contract#: DIR-SDD-1014 'LAS SI 1MI-'ORI AFI 1 1tRMS AND I ONUIIII0'F•IS AI Hit 1:501 1 OM 01- 11115 0.U0IA1ION (o a EA PAYMENT Product Description O 0 tri 0) coM CO E9 EA O LnN tn O O O 10 H Off365PE3 ShrdSvr ALNG SubsVL MVL Promo PerUsr FromECALw/Office 17 month 0 O ui com !!9 *Subtotal - Grand Total (USD) : a 0 Microsoft Enterprise Agreement (EA) Enrollment#: 4634549 Quote prepared by: Celeste T. Williams 2 z COPY Microsoft ( Volume Licensing Enterprise Enrollment — Product Selection Form — Adding Enterprise Online Services (Midterm) — State and Local Amendment ID W22 4634549 SGN-000-sdaily-S- 008 This amendment ("Amendment") is entered into between the parties as of the effective date identified on the signature form. It amends the Enterprise Enrollment. Except for changes made by this Amendment, the Enrollment remains unchanged and in full force and effect. This Amendment shall automatically terminate upon any termination or expiration of the Enrollment. Terms and Conditions 1. Definitions. Capitalized terms .used but not defined in this Amendment will have the meanings provided in the Agreement and Enterprise Enrollment. The following definitions are used in this Amendment: "Customer Data" means all data, including all text, sound, or image files that are provided to Microsoft by, or on behalf of, Enrolled Affiliate through Enrolled Affiliate's use of the Online Services. "Enterprise Online Service" means any Online Service designated as an Enterprise Online Service in the Product List and chosen by Enrolled Affiliate under this Enrollment. Enterprise Online Services are treated as Online Services, except as noted. "License" means Enrolled Affiliate's right to use the quantity of a Product ordered. For certain Products, a License may be available on a subscription basis ("Subscription License"). Licenses for Online Services will be considered Subscription Licenses under this agreement; "Online Services" means the Microsoft -hosted services identified in the Online Services section of the Product. List. "Product" means all software, Online Services and other web -based services, including pre-release or beta versions, identified on the Product List. "Qualified Device" means any personal desktop computer, portable computer, workstation, or similar device that is used by or for the benefit of Enrolled Affiliate's Enterprise. It does not include: (1) any computer that is designated as a server and not used as a personal computer, (2) any Industry Device, (3) any device running an embedded operating system (e.g., Windows Phone 7) that does not access a virtual desktop infrastructure, or (4) any device that is not managed and/or controlled either directly or indirectly by Enrolled Affiliate's Enterprise. Enrolled Affiliate may include as a Qualified Device any device which would be excluded above (e.g., Industry Device). "Qualified User" means a person (e.g., employee, consultant, contingent staff) who: (1) is a user of a Qualified Device, or (2) accesses any server software requiring an Enterprise Product Client Access License or any Enterprise Online Service. It does not include a person who accesses server software or an Online Service solely under a License identified in the Qualified User exemptions in the Product List. "Reserved License" means for an Online Service identified as eligible for true -ups in the Product List, the License reserved by Enrolled Affiliate prior to use and for which Microsoft will make the Online Service available for activation. EAEnrAmend(Ind)(NA)(ENG)(Fe b2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 1 of 9 "Transition" means the conversion of a License with current Software Assurance to or from a subscription License. Products eligible for Transition and permitted Transitions are identified in the Enterprise Online Services Appendix. "Transition Period" means the time between the Transition and the next Enrollment anniversary date for which the Transition is reported. 2. Purpose. This Amendment enables Enrolled Affiliate's Enterprise to obtain, or subscribe to, Licenses for Enterprise Products, Enterprise Online Services, and Additional Products. Enrolled Affiliate may choose between on -premise software and Online Services as well as the ability to transition Licenses to Online Services while maintaining Enterprise -wide coverage. Additionally, Enterprise Online Services may be purchased without Enterprise -wide coverage. 3. Transitions. a. Transitions. The following requirements apply to Transitions: (i) Licenses with active Software Assurance or Subscription Licenses may be Transitioned at any time if permitted in the Product List. While Enrolled Affiliate may Transition any time, it will not be able to reduce Licenses or associated Software Assurance prior to the end of the Transition Period. (ii) If a Transition is made back to a License that had active Software Assurance as of the date of Transition, then Software Assurance will need tobe re -ordered for all such Licenses on a prospective basis following the Transition Period: Software Assurance coverage may not exceed the quantity of perpetual Licenses for which Software Assurance was current at the time of any prior Transition. Software Assurance may not be applied to Licenses transferred by Enrolled Affiliate. (iii) If a device -based License is Transitioned to a user -based License, all users of the device must be licensed as part of the Transition. (iv) If a user -based License is Transitioned to a device -based License, all devices accessed by the user must be licensed as part of the Transition. b. Effect of Transition on Licenses. Transition will not affect Enrolled Affiliate's rights in perpetual Licenses paid in full. (i) New version rights will be granted for perpetual Licenses covered by Software Assurance up to the end of the Transition Period. (ii) For L&SA not paid in full at the end of the Transition Period, Enrolled Affiliate will have perpetual Licenses for a proportional amount equal to the total of installments paid versus total amounts due (paid and payable) for the Transitioned Product. (iii) For L&SA not paid in full or granted a perpetual License in accordance with the above or Subscription Licenses, all rights to Transitioned Licenses cease at the end of the Transition Period. 4. Pricing. a. How to Establish a Price Level. Price levels for Enterprise Product and Enterprise Online Services will be as follows: (i) If all Products selected in the pool are licensed by Device, price level is based on the initial Qualified Desktop count; EAEnrAmend(Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) W22 B COPY Page 2 of 9 (ii) If all Products selected in the pool are licensed by User, price level is based on the initial Qualified User count; and (iii) If Products selected in the pool are licensed by both User and Device, price level is based on the greater of the Qualified User or Qualified Desktop count in the initial order. Price levels for Additional Products will be based upon the corresponding price level of the Enterprise Product and Enterprise Online Services Product pools. If Enrolled Affiliate does not order an Enterprise Product or Enterprise Online Service from one of the Product pools, the price level for Additional Products in that pool will be price level "D" throughout the term of the Enrollment. b. Setting Prices. Enrolled Affiliate's pricing for each Product will be established by its Reseller. Microsoft's prices for Resellers for Products identified in the initial order process are fixed throughout the Enrollment term. Pricing for Additional Products added after the initial order will be as described in the Enterprise Agreement. 5. Order requirements. a. Minimum Order Requirements. Enrolled Affiliate's Enterprise must have a minimum of 250 Qualified Users or Qualified Devices. (i) Initial Order. Initial order must include at least 250 Licenses from one of the four groups outlined in the Product Selection Form. (ii) If choosing Enterprise Products. If choosing Enterprise Products in a specific group outlined in the Product Selection Form, Enrolled Affiliate's initial order must include an Enterprise -wide selection of one or more Enterprise Products or a mix of Enterprise Products and corresponding Enterprise Online Services for that group. (iii) Additional Products. Upon satisfying the minimum order requirements above, Enrolled Affiliate may order Additional Products. (iv) Country of Usage. Enrolled Affiliate must specify the countries where Licenses will be used on its initial order and on any additional orders. b. Adding Products. (i) Adding new Products not previously ordered. Enrolled Affiliate may add new Enterprise Products by entering into a new Enrollment or as part of a renewal. New Enterprise Online Services may be added by contacting a Reseller. New Additional Products, other than Online Services, may be used if an order is placed in the month the Product is first used. For Additional Products that are Online Services, an initial order for the Online Service is required prior to use. (ii) Adding Licenses for previously ordered Products. Additional Licenses for previously ordered Products must be included in the next true -up order. Enrolled Affiliate must Licenses for Online Services prior to use, unless the Online Services are (1) identified as eligible for true -up in the Product List or (2) included as part of other Licenses (e.g., Enterprise CAL). c. True -up orders. Enrolled Affiliate must submit an annual true -up order that accounts for changes since the initial order or last true -up order, including: (1) any increase in Licenses, including any increase in Qualified Devices or Qualified Users and Reserved Licenses; (2) Transitions (if permitted); or (3) Subscription License quantity reductions (if permitted). Microsoft, at its discretion and as permitted by applicable law, may validate the customer true -up data submitted through a formal product deployment assessment, using an approved Software Asset Management ('SAM') Partner. The true -up order must be received by Microsoft between 60 and 30 days prior to the Enrollment anniversary date. The third -year anniversary true -up order is due within 30 days EAEnrAmend(Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 3 of 9 prior to the Expiration Date. Enrolled Affiliate may true -up more often than at each Enrollment anniversary date except for Subscription License reductions. (i) Enterprise Products. Enrolled Affiliate must determine the current number of Qualified Devices and Qualified Users (if ordering user -based Licenses) and order the License difference (if any), including any Enterprise Online Services. (ii) Additional Products. For Products which have been previously ordered, Enrolled Affiliate must determine the Additional Products used and order the License difference (if any). (iii) Online Services. For Online Services identified as eligible for true -up orders in the Product List, Enrolled Affiliate must first reserve the additional Licenses prior to use. Microsoft will provide a report of Reserved Licenses in excess of existing orders to Enrolled Affiliate and its Reseller. Reserved Licenses will be invoiced retroactively for the prior year based upon the month in which they were reserved. (iv) Late true -up order. If the true -up order is not received when due: 1) Microsoft will invoice Reseller for all Reserved Licenses not previously ordered. 2) Transitions and Subscription License reductions cannot be reported until the following Enrollment anniversary date (or at Enrollment renewal, as applicable). (v) Transitions. Enrolled Affiliate must report all Transitions. Transitions may result in an increase in Licenses to be included on the true -up order and a reduction of Licenses for prior orders. Reductions in Licenses will be effective at end of the Transition Period. Associated invoices will also reflect this change. (vi) Subscription License Reductions. Enrolled Affiliate may reduce the quantity of Subscription Licenses on a prospective basis if permitted in the Product List as follows: 1) For Subscription Licenses part of an Enterprise -wide commitment, Licenses may be reduced if the total quantity of Licenses and Software Assurance for an applicable group meets or exceeds the quantity of Qualified Devices identified on the Product Selection Form. Step-up Licenses do not count towards this total count. 2) For Enterprise Online Services not a part of an Enterprise -wide commitment, Licenses can be reduced as long as the initial order minimum requirements are maintained. 3) For Additional Products available as Subscription Licenses, Enrolled Affiliate may reduce the Licenses. If the License count is reduced to zero, then Enrolled Affiliate's use of the applicable Subscription License will be cancelled. Invoices will be adjusted to reflect any reductions in Subscription Licenses at the true -up order Enrollment anniversary date and effective as of such date. (vii)Update statement. An update statement must be submitted instead of a true -up order if, as of the initial order or last true -up order, Enrolled Affiliate's Enterprise has not: (1) changed the number of Qualified Devices and Qualified Users licensed with Enterprise Products or Enterprise Online Services; and (2) increased its usage of Additional Products. This update statement must be signed by Enrolled Affiliate's authorized representative. The update statement must be received by Microsoft between 60 and 30 days prior to the Enrollment anniversary date. The last update statement is due at least 30 days prior to the Expiration Date. d. Step-up Licenses. For Licenses eligible for a step-up under this Enrollment, Enrolled Affiliate may step-up to a higher edition or suite as follows: (i) For step-up Licenses included on an initial order, Enrolled Affiliate may order according to the true -up process. EAEnrAmend(Ind)(NA)(ENG)(Fe b2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 4 of 9 (ii) If step-up Licenses are not included on an initial order, Enrolled Affiliate may step-up initially by following the process described in the Section titled "Adding new Products not previously ordered," then for additional step-up Licenses, by following the true -up order process. (iii) If Enrolled Affiliate has previously ordered an Online Service as an Additional Product and wants to step-up to an Enterprise Online Service eligible for a Transition, the step-up may be reported as a Transition. (iv) If Enrolled Affiliate Transitions a License, it may be able to further step-up the Transitioned License. If Enrolled Affiliate chooses to step-up and the step-up License is separately eligible to be Transitioned, such step-up Licenses may result in a License reduction at the Enrollment anniversary date following the step-up. 6. End of Enrollment term options for Online Services where Enrolled Affiliate elects not to Renew. a. Online Services eligible for an Extended Term. For Online Services identified as eligible for an Extended Term in the Product List, the following options are available at the end of the Enrollment initial or renewal term. (i) Extended Term. Licenses for Online Services will automatically expire in accordance with the terms of the Enrollment. An extended term feature that allows Online Services to continue month-to-month ("Extended. Term") is available. During the Extended Term, Online Services will be invoiced monthly at the then -current published price for Enrolled Affiliate's price level as of the Expiration Date plus a 3% administrative fee for up to one year. If Enrolled Affiliate does want an Extended Term they must submit a request to Microsoft. Microsoft must receive the request not less than 30 days prior to the Expiration Date. (ii) Cancellation during Extended Term. If Enrolled Affiliate has opted for the Extended Term and later determines not to continue with the Extended Term, they must submit a notice of cancellation for each Online Service. Cancellation will be effective at the end of the month following 30 days after Microsoft has received the notice. b. Online Services not eligible for an Extended Term. If Online Services are not identified as eligible for an Extended Term in the Product List, the Licenses will be cancelled and will terminate as of the Expiration Date. Any associated media must be uninstalled and destroyed and Enrolled Affiliate's Enterprise must discontinue use. Microsoft may request written certification to verify compliance. c. Customer Data. Upon expiration or termination of a License for Online Services, Enrolled Affiliate must tell Microsoft whether to: (i) disable its account and then delete its Customer Data ("Data Deletion"); or (ii) retain its Customer Data in a limited function account for at least 90 days after expiration or termination of the License for such Online Service (the "Retention Period") so that Enrolled Affiliate may extract its Customer Data. (iii) If Enrolled Affiliate indicates Data Deletion, Enrolled Affiliate will not be able to extract its Customer Data. If Enrolled Affiliate indicates it wants a Retention Period, Enrolled Affiliate will be able to extract its Customer Data through Microsoft's standard processes and tools, and Enrolled Affiliate will reimburse Microsoft if there are any applicable costs to the extent allowed by applicable law. If Enrolled Affiliate does not indicate either Data Deletion or a Retention Period, Microsoft will retain Enrolled Affiliate's Customer Data in accordance with the Retention Period. (iv) Following the expiration of the Retention Period, Microsoft will disable Enrolled Affiliate's account and then delete its Customer Data. EAEnrAmend(Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 5 of 9 (v) Enrolled Affiliate agrees that, other than as described above, Microsoft has no obligation to continue to hold, export or return Enrolled Affiliate's Customer Data. Enrolled Affiliate agrees Microsoft has no liability whatsoever for deletion of Enrolled Affiliate's Customer Data pursuant to these terms. d. Termination for cause. For Subscription Licenses, in the event of a breach by Microsoft, Microsoft will issue Reseller a credit for any amount paid in advance that would apply after the date of termination 7. Online Services Supplemental Terms and Conditions a. Limited Warranty for Online Services. Microsoft warrants that the Online Services will perform in accordance with the applicable Service Level Agreement. This limited warranty is for the duration of Enrolled Affiliate's use of the Online Service, subject to the notice requirements in the applicable Service Level Agreement. If Microsoft fails to meet this limited warranty and Enrolled Affiliate notifies Microsoft within the warranty period, then Microsoft provide the remedies identified in the Service Level Agreement for the affected Online Service. These are Enrolled Affiliate's only remedies for breach of the limited warranty, unless other remedies are required to be provided under applicable law. This limited warranty is subject to the following limitations: (i) any implied warranties, guarantees or conditions not able to be disclaimed as a matter of law last for one year from the start of the limited warranty; (ii) the limited warranty does not cover problems caused by accident, abuse or use in a manner inconsistent with this agreement or the Product Use Rights, or resulting from events beyond Microsoft's reasonable control; (iii) the limited warranty does not apply to components of Products that Enrolled Affiliate is permitted to redistribute; (iv) the limited warranty does not apply to free, trial, pre-release, or beta products; and (v) the limited warranty does not apply to problems caused by the failure to meet minimum system requirements. OTHER THAN THIS LIMITED WARRANTY, MICROSOFT PROVIDES NO OTHER EXPRESS OR IMPLIED WARRANTIES OR CONDITIONS. MICROSOFT DISCLAIMS ANY IMPLIED REPRESENTATIONS, WARRANTIES OR CONDITIONS, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SATISFACTORY QUALITY, TITLE OR NON -INFRINGEMENT. THESE DISCLAIMERS WILL APPLY UNLESS APPLICABLE LAW DOES NOT PERMIT THEM. b. Enrolled Affiliate's agreement to protect. Enrolled Affiliate will defend Microsoft against any claims made by an unaffiliated third party that: (i) any Customer Data or non -Microsoft software Microsoft hosts on Enrolled Affiliate's behalf infringes the third party's patent, copyright, or trademark or makes intentional unlawful use of its Trade Secret; or (ii) arise from Enrolled Affiliate's or its end user's violation of the terms of this agreement. Enrolled Affiliate must pay the amount of any resulting adverse final judgment (or settlement to which Enrolled Affiliate consents). This section provides Microsoft's exclusive remedy for these claims. EAEnrAmend(Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 6 of 9 Microsoft must notify Enrolled Affiliate promptly in writing of a claim subject to this section. Microsoft must (1) give Enrolled Affiliate sole control over the defense or settlement of such claim; and (2) provide reasonable assistance in defending the claim. Enrolled Affiliate will reimburse Microsoft for reasonable out of pocket expenses that it incurs in providing assistance. c. Limitation on liability. To the extent permitted by applicable law, the liability of each party, its Affiliates, and its Contractors arising under this agreement is limited to direct damages up to the amount Enrolled Affiliate was required to pay for the Online Service giving rise to that liability during the prior 12 months. In the case of Online Services provided free of charge, or code that Enrolled Affiliate is authorized to redistribute to third parties without separate payment to Microsoft, Microsoft's liability is limited to U.S. $5,000. These limitations apply regardless of whether the liability is based on breach of contract, tort (including negligence), strict liability, breach of warranties, or any other legal theory. However, these monetary limitations will not apply to: (i) Microsoft's obligations under the section of the Master Terms titled "Defense of infringement, misappropriation, and third party claims" or Enrolled Affiliate's obligations under the section of these Supplemental Terms titled "Enrolled Affiliate's agreement to protect"; (ii) liability for damages caused by either party's gross negligence or willful misconduct, or that of its employees or its agents, and. awarded by a court of final adjudication (provided. that, in jurisdictions that do not recognize a legal distinction between "gross negligence" and "negligence," "gross negligence" as used in this subsection shall mean "recklessness"); (iii) liabilities arising out of any breach by either party of its obligations under the section of the Master Terms entitled "Confidentiality", except that Microsoft's liability arising out of or in relation to Customer Data shall in all cases be limited to the amount Enrolled Affiliate paid for the Online Service giving rise to that liability during the prior 12 months; (iv) liability for personal injury or death caused by either party's negligence, or that of its employees or agents, or for fraudulent misrepresentation; and (v) violation by either party of the other party's intellectual property rights. TO THE EXTENT PERMITTED BY APPLICABLE LAW, WHATEVER THE LEGAL BASIS FOR THE CLAIM, NEITHER PARTY, NOR ANY OF ITS AFFILIATES OR CONTRACTORS, WILL BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, SPECIAL, OR INCIDENTAL DAMAGES, OR DAMAGES FOR LOST PROFITS, REVENUES, BUSINESS INTERRUPTION, OR LOSS OF BUSINESS INFORMATION ARISING IN CONNECTION WITH THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR IF SUCH POSSIBILITY WAS REASONABLY FORESEEABLE. HOWEVER, THIS EXCLUSION DOES NOT APPLY TO EITHER PARTY'S LIABILITY TO THE OTHER FOR VIOLATION OF ITS CONFIDENTIALITY OBLIGATIONS (EXCEPT TO THE EXTENT THAT SUCH VIOLATION RELATES TO CUSTOMER DATA), THE OTHER PARTY'S INTELLECTUAL PROPERTY RIGHTS, OR MICROSFT'S OBLIGATIONS IN THE SECTION OF THE MASTER TERMS TITLED "DEFENSE OF INFRINGEMENT, MISAPPROPRIATION, AND THIRD PARTY CLAIMS" OR ENROLLED AFFILIATE'S OBLIGATIONS IN THE SECTION OF THESE SUPPLEMENTAL TERMS TITLED "ENROLLED AFFILIATE'S AGREEMENT TO PROTECT." d. Open Source License restrictions. Certain third party license terms require that computer code be generally (1) disclosed in source code form to third parties; (2) licensed to third parties for the purpose of making derivative works; or (3) redistributable to third parties at no charge (collectively, "Open Source License Terms"). Neither party may use, incorporate, modify, distribute, provide access to, or EAEnrAmend (Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 7 of 9 combine the computer code of the other with any other computer code or intellectual property (collectively, "Provide") in a manner that would subject the other's computer code to Open Source License Terms. Microsoft is not responsible for Enrolled Affiliate's upload, use or distribution of Enrolled Affiliate's code from the Online Services. Enrolled Affiliate may upload code to an Online Service and allow third parties access to use or download Enrolled Affiliate's code on the Online Service, provided that (1) such use is not restricted by a license agreement or the Product Use Rights and (2) any Open Source License Terms apply solely to Enrolled Affiliate and their uploaded code, and not to any code or Products provided by Microsoft. Each party warrants that it will not Provide the other party with, or give third parties access through the Online Services to, computer code that is governed by Open Source License Terms, except as described above. e. Applicability of Supplemental Terms. These Supplemental Terms apply only to Enrolled Affiliate's purchase and use of Online Services. Services (e.g., consulting or professional services) and Products other than Online Services remain subject to the terms of the Enterprise Agreement, the Enrollment, and any terms referenced therein. In the case of any conflict between these Supplemental Terms and the terms and conditions of the Enterprise Agreement that are not expressly resolved by their terms, these Supplemental Terms control. 8. Order of Precedence. In the event of a conflict between the terms of this Amendment and any other document that is part of the agreement, the terms of this Amendment control. EAEnrAmend(Ind)(NA) (ENG)(Feb2012) Adding Enterprise Online Services (Midterm) B COPY W22 Page 8 of 9 Enterprise and Enterprise Subscription Product Selection Form — Adding Enterprise Online Services (Midterm) Enrolled Affiliate is adding Enterprise Online Services to Enrollment Number listed. Step 1. Select the Products and Quantities Enrolled Affiliate is adding to its Enrollment. Quantity may not include any Licenses which the Enrolled Affiliate has selected for optional future use, or to which it is transitioning or stepping -up within Enrollment term. Products for which the Government Partner on behalf of Enrolled Affiliate has an option to transition or step-up should be listed in Step 2. Products Quantity Office 365 Plans Office 365 (Plan El) ❑ Office 365 (Plan E2) Office 365 (Plan E2) ❑ Office 365 (Plan E4) Office 365 (Plan E3) ❑ Windows Intune Office 365 (Plan E4) Windows Intune Windows Intune - Windows Intune Add-on' f selecting Windows Intune option, Government Partner acknowledges the following: a. The Windows Desktop Operating System Upgrade licenses offered through this Enrollment are not full licenses. The Enrolled Affiliate and any included Affiliates have qualifying operating system licenses for all devices on which the Windows Desktop Operating System Upgrade or Windows Intune licenses are run. b. In order to use a third party to reimage the Windows Operating System Upgrade, Government Partner must certify that Enrolled Affiliate has acquired qualifying operating system licenses. See the Product List for details. Step 2. Indicate new Enterprise Products and Online Services Enrolled Affiliate has selected for optional future usewhere not selected on the initial enroll t d men %/WWI (above). Products ❑ Office Pro Plus for Office 365 ❑ Office 365 (Plan El) ❑ Office 365 (Plan E2) ❑ Office 365 (Plan E3) ❑ Office 365 (Plan E4) ❑ Enterprise CAL (ECAL) Step-up, including Bridge CALs ❑ Windows Intune ❑ Windows Intune Add-on' ndows Intune Add-on requires purchase of Windows OS Upgrade or Windows VDA. This Amendment must be attached to a signature form to be valid. EAEnrAmend(Ind)(NA)(ENG)(Feb2012) Adding Enterprise Online Services (Midterm) W22 Pageof9 COPY Microsoft Enterprise Enrollment Amendment ID GOVM13 Enrollment Number I4634549 Volume Licensing 1 SGN-000-sdaily-S-008 1 This amendment ("Amendment") is entered into between the parties identified on the signature form for the Enrollment identified above ("Enrollment"). All terms used but not defined in this Amendment will have the same meanings provided in the Enrollment. The parties agree that the Enrollment is amended by adding the following: USLs for Software Assurance. Subject to the terms and conditions of this Amendment, Enrolled Affiliate may purchase User Subscription Licenses (USLs) for Software Assurance. USLs for Software Assurance may only be acquired and assigned to users who either: • have also been assigned a qualifying User CAL Suite with active Software Assurance coverage or • are the primary user of a device to which a qualifying Device CAL with active Software Assurance coverage has been assigned. Enrolled Affiliate may not assign USLs for Software Assurance to more than one user at a time for any given qualifying Device GAL. Enrolled Affiliate must maintain active Software Assurance coverage on its qualifying CALs during the subscription term of its USL for Software Assurance. Enrolled Affiliate's right to access the online service or related software under a USL for Software Assurance expires upon the expiration or early termination of the term of the Enrollment that is in effect as of the date this Amendment was executed. A USL for Software Assurance corresponding to a User CAL Suite only may be (and must be) reassigned to another user, when and as the qualifying User CAL is reassigned. A USL for Software Assurance corresponding to a Device CAL Suite may be reassigned to another user only when that new user becomes the primary user of a device that is assigned a qualifying device CAL with active Software Assurance coverage. Deployment Reimbursement Offer. Subject to the following terms and conditions, Enrolled Affiliate may qualify to receive deployment assistance, in the form of reimbursement to a Microsoft -approved deployment partner. Partners — Deployment activities will not be eligible for the deployment benefit associated with this offer unless performed by Microsoft -approved partners. Enrolled Affiliate may contact Enrolled Affiliate's Microsoft representative for a list of approved partners. Deployment Payment Process — Approved partners may request deployment funding by contacting their Microsoft representative. Eligible licenses — The amount reimbursed to the partner will be based upon the number of USLs for Software Assurance ("Qualifying USLs"), included in the order(s) placed ONLY during the promotional period, and only for the following: 0365 Plan E2/G2, 0365 Plan E3/G3, 0365 Plan E4/G4 (once available), Exchange Online Plan 1 and/or Exchange Online Plan 2. Deployment Benefit Rates a. $40 paid for each Qualifying USL deployed up to 3,000 seats b. $5 paid for each Qualifying USL deployed over 3,000 seats c. $250,000 maximum partner reimbursement. Deployment Benefit Period — This deployment benefit may be claimed for any Qualifying USLs that are purchased pursuant to the terms and conditions of this Amendment prior to March 31, 2013 and deployed within 18 months of purchase. Seats with an effective date after the 6 month offer period are not eligible for deployment benefits. The deployment benefit shall automatically terminate upon the expiration or early termination of the current term of the Enrollment. Liability — All deployment assistance services provided under this Deployment Reimbursement Offer will be performed by partners under separate agreement between the partner and Customer. EAEnrAmend(WW)(ENG)(Oct2012) Office 365 for SA B GOVM13 Page 1 of 2 COPY Although such partners have been approved by Microsoft to participate in this Deployment Reimbursement Offer, said partners are not affiliated with Microsoft and do not have authority to bind or impose any obligation or liability on Microsoft. To the maximum extent permitted by applicable law, Microsoft will not be liable for any damages arising from the deployment services that may be provided in connection with this offer. Additional Promotion Terms. The terms and conditions of this Amendment, including but not limited to the Deployment Reimbursement Offer, apply only to USLs for Software Assurance purchased pursuant hereunder, with a minimum order of 250 Qualifying USL required to qualify for the benefits under this Amendment. USLs for Software Assurance may not be ordered in conjunction with License Reservation and/or Transition, and Enrolled Affiliate may not convert previously -ordered, Reserved or Transitioned USLs to USLs for Software Assurance. This is a limited time offer and Microsoft is under no obligation to provide the current terms of licensing and pricing beyond the expiration dates stated in this Amendment. Step-ups of USLs for Software Assurance from one Office 365 Plan number to another are not permitted. For example, if the Office 365 Plan E2 from Core CAL promo is purchased, it is not possible to step-up to Office 365 Plan E3 at a future date. This Amendment shall automatically terminate upon any termination or expiration of the term of the Enrollment in effect as of the date the Amendment was executed. In addition, Microsoft shall have the right to immediately terminate this Enrollment in the event Customer breaches any obligation in this Amendment. Except for changes made by this Amendment, the Enrollment remains unchanged and in full force and effect. This amendment must be attached to a signature form to be valid. EAEnrAmend(wW)(ENG)(0ct2012) Office 365 for SA GOVM13 B Page 2 of 2 COPY