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(vl Subscription License reductions. Enrolled Affiliate may reduce the quantity of <br />Subscription Licenses at the Enrollment anniversary date on a prospective basis If <br />permitted in the Product List, as follows- <br />a) For Subscription Licenses that are part of an Enterprise-wide purchase, Licenses rilay <br />he reduced if the total quantity of Licenses and Software Assurance for an applicable <br />group meets or exceeds the quantity of Qualified Devices and Qualified Users (;f <br />ordering user-based Licenses) identified on the Product Selection Form, and includes <br />any additional Qualified Devices and Qualified Users added in any prior true-up orders. <br />Step-up Licenses do not count towards this total count, <br />b) For Enterprise Online Services that are not a part of an Enterprise-wide purchase, <br />Licenses can be reduced as long as the initial order minimum requirements are <br />maintained. <br />c) For Additional Products available as Subscription Licenses, Enrolled Affiliate may <br />reduce the Licenses. If the License count is reduced to zero, ther, Enrolled Affiliate's <br />use of the applicable Subscription License will be cancelled. <br />invoices will be adjusted to reflect any reductions in Subscription Licenses at the true-up <br />order Enrollment anniversary date and effective as of such date. <br />(vi) Update statement. An update statement must be submitted instead of a true-up order if, <br />as of the initial order or last true-up order, Enrolled Affiliate's EnterDdSe. (1) has not <br />changed the number of Qualified Devices and Qualified Users licensed with Enterprise <br />Products or Enterprise Online Services; and (2) has not increased its usage of Additional <br />Products. This update statement must be signed by Enrolled Affiliate's authorized <br />representative. <br />(vii)True-up order period. The true-up order or update statement must be received by <br />Microsoft between 60 and 30 days prior to each Enrollment anniversary date. The third- <br />year true-up order or update statement is due within 30 days prior to the Expiration Date, <br />and any license reservations within this 30 day period will not be accepted. Enrolled Affiliate <br />m r <br />ay submit true -up orders more often to account for increases in Product usage, but an <br />annual true-up order or update statement must still be submitted during the annual order <br />period. <br />(viii) Late true-up order- If the true-up order or update statement is not received when <br />due: <br />1) Microsoft will invoice Reseller for all Reserved Licenses not previously ordered- <br />2) Transitions and Subscription License reductions cannot ;be reported until the following <br />Enrollment anniversary date (or at Enrollment renewal, as applicable)- <br />g. Step-up Licenses. For Licenses eligible for a step-up under this Enrollment, Enrolled Affiliate <br />may step-up to a higher edition or suite as follows <br />(i) For Licenses included on an initial order, Enrolled Affiliate may order according to <br />the true-p process, <br />(H) if step-up Licenses are not included on an initial order, Enrolled Affiliate may step-up <br />Wdafly by following the process described in the Section titled "Adding new Products not <br />previously ordered," then for additional step-up Licenses, by f .11 oflo i <br />w ng the V e-Lp order <br />proce-S& <br />(iii) If Enrolled Affiliate has previously ordered an Online Service as an Additional Product and <br />,,wants to step-up to an Enterprise Online Service eligible fora Transition, the step-up may <br />Lbe -reported as a Transition, <br />(iv) if Enrolled Affiliate Transitions a License, it may be able to further step-,up the Transitioned <br />License, If Enrolled Affiliate chooses to step-up and the step-up Li <br />,cense is separately <br />EA201 4E mGow"U, S"S LC-(E,1JG)(D5a20!4) <br />pa C, e -d <br />DCCU'nilr�,' X20-1,",'D632 <br />