2.2.19 ‘Infringing Content’ shall mean Customer Content or Third Party Content that infringes a Person’s intellectual property rights. 2.2.20 ‘Residence’ shall mean a permanent or temporary residence in the Kingdom under the Kingdom’s laws. It shall not include a temporary presence of Persons on a short visit or transiting through the Kingdom. 2.2.21 ‘Service Credits’ shall mean compensation mechanisms offered by a CSP to a Cloud Customer if the CSP’s actual performance fails to meet the standards that are set in the Cloud Contract or are otherwise required under this Regulatory Framework. Examples of Service Credits can include discounts on current or future bills, and time of Cloud Services added at the end of a billing cycle free of charge. 2.2.22 ‘Service Level Agreement’ shall mean an agreement between a CSP and a Cloud Customer that defines the quality of the Cloud Services to be delivered to that Cloud Customer in terms of a set of measurable properties specific to Cloud Computing. 3. Regulatory Framework 3.1 Scope 3.1.1 The provisions of this Regulatory Framework shall apply with regard to any Cloud Service provided to Cloud Customers having a Residence or Customer Address in the Kingdom. 3.1.2 Regardless of the Cloud Customers’ Residence or Customer Address, the processing or storage of any Customer Content and Customer Data, permanently or occasionally, in Datacenters or other elements of a Cloud System that are located in the Kingdom shall be subject to the provisions listed below: 3.1.2.1 Article ‎3.3.13 (reporting on major information security breaches), below; 3.1.2.2 Articles ‎3.5.4 and ‎3.5.5 (‘take-down’ of Unlawful Content or Infringing Content, upon the Commission’s or other authorized entities’ notice or by own initiative), and ‎3.5.6 (notification of violations of Anti-Cyber Crime Law), below; and 3.1.2.3 The exception referred to in Article 3 ‎ .4.3.1, below. 3.1.3 Any obligations resulting from Article ‎3.1.1, above, shall be binding on the CSP who has concluded the Cloud Contract with the Cloud Customer(s) in question. 3.1.4 Unless specified otherwise in this Regulatory Framework, these provisions shall be mandatory and not subject to any modification through contractual agreement. Cloud Computing Regulatory Framework Page 4 of 15

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