This IT Service Agreement (the “Agreement”) is effective on [DATE],
BETWEEN: [NAME OF THE SERVICE PROVIDER], (the “Service Provider”), an individual with their main address located at OR a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:
[COMPLETE ADDRESS]
AND: [NAME OF THE CLIENT], (the “Client”), an individual with their main address located at OR a Company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:
[COMPLETE ADDRESS]
Collectively, the Service Provider and Client shall be referred to as the “Parties” and individually as the “Party.”
WHEREAS, the Service Provider is in the business of providing establishing, operating and managing Information Technology and suggesting solutions as the Client wishes, and the Client desires to hire the Service Provider for various IT services; and
WHEREAS, the Client and Service Provider desire to enter into an Agreement, which will define respective rights and duties as to all services to be performed;
WHEREAS, the Parties wish to evidence their contract in writing;
WHEREAS, the Service Provider affirms to understand all of the provisions contained in this Agreement, and in case the Client requires clarification as to one or more of the provisions contained herein, it can request clarification or otherwise seek legal guidance;
NOW, THEREFORE, in consideration and as a condition of the Parties entering into this Agreement and other valuable considerations, the receipt and sufficiency of which consideration is acknowledged, the Parties agree as follows:
DEFINITIONS
"
Intellectual Property” shall mean any and all technology, technical information, technical data, inventions, invention disclosures, discoveries, processes, formulae, algorithms, know-how,
s
oftware, designs, design elements, works of authorship, drawings, non-public materials and any other technical subject matter related thereto. Intellectual Property also includes all
I
ntellectual
P
roperty rights or similar proprietary rights related to the foregoing, in any jurisdiction, whether owned or held for use under license, whether registered or unregistered, including (i) patent rights and utility models, (ii) copyrights and database rights, (iii) trademarks and trade dress and the
goodwill associated therewith, (iv) trade secrets, (v) mask works, and (vi) industrial design rights; in each case, including any registrations of, applications to register, and renewals and extensions of, any of the foregoing with or by any governmental authority in any jurisdiction
.
“
Service(s)
”
shall mean the
IT
services being provided by the Service Provider
to the
Client under this
A
greement
.
“
Confidential Information” will include all data and information relating to the business and management
of the Company
, including but not limited to, Client list
s
, business policies, business strategies, proprietary and trade secret technology to which access is obtained by the Service Provider, including accounting records, computer software, other proprietary data, business operations, marketing development operations and customer information
.
“Disclosing Party” shall mean the
P
arty who shall be disseminating the Confidential Information to the Receiving Party.
“Receiving Party” shall mean the
P
arty to whom the Confidential Information is disclosed.
TERM
Th
e Client
and the Service Provider agree that
the
present Agreement shall be in force
from the [DATE]
unless terminated by either of the
P
a
rties in accordance
with
the present Agreement
.
SCOPE OF THE AGREEMENT
The
Service Provider shall provide the
IT
Services and satisfy the responsibilities described in this Agreement as it may be supplemented, enhanced or modified, upon mutual written agreement of the
P
arties, during the Term
.
SERVICES
WORK ORDER
:
The
Service Provider agrees to provide
IT
Services to the Client
in accordance with the terms and conditions of this Agreement. A description of the Services to be provided shall be set forth in one or more mutually agreed upon documents (
hereinafter referred as "Work Order
"
or “WO”
), each of which
,
upon execution by
the
Service Provider and the C
lient
,
shall become binding between the
P
arties and made a part hereof. Each
Work Order
entered into by the
P
arties in connection herewith shall be subject to, and the obligations of the
P
arties hereunder shall be performed in accordance with, the terms and conditions of this Agreement. Each
Work Order
shall
:
supplement
and
form a part of this Agreement
,
be
read and construed as one
with this Agreement,
b
e
deemed incorporated by reference herein. In the event of any conflict between the terms of this Agreement and any
Work Order
, the terms of this Agreement shall govern and control unless such
Work Order
expressly indicates otherwise
.
PERFORMANCE OF THE SERVIC
ES
The
Service Provider agrees to perform
the Services specified by the Client
in a professional manner
and in accordance with this Agreement. Notwithstanding the foregoing, the C
lient
acknowledges that the Service Provider’s ability to perform
the
S
ervices will require the C
lient
to timely perform certain tasks and provide certain tangible and intangible items. The C
lient
hereby agrees to perform its obligations hereunder, and the
P
arties acknowledge that
the
C
lient
’s failure to perform such obligations may adversely affect the Service Provider’s ability to meet its performance obligations under the condit
i
ons specified by the Client
.
In addition,
the
Service Provider shall not be deemed to be in default under this Agreement for any delays or failure to meet its
obligations if based on
the
Client
’s actions, omissions or failure to meet its performance requirements.
If any services, functions or responsibilities not specifically described in this Agreement are inherent subtasks of the Services and are reasonably necessary for provision of the Services, they shall be deemed to be implied by and included within the scope of the Services to the same extent and in the same manner as if specifically described in this Agreement
.
RELATIONSHIP OF PARTI
ES
Nothing contained in this Agreement shall create an employer and employee relationship, a master and servant relationship, or a principal and agent relationship between
the
Service Provider and
the
Client
.
ASSIGNMENT
The
P
arties shall not assign any rights under the present Agreement to any other
P
arty without the mutual written consent of the
P
arties. Subject to the foregoing, this
Agreement
will be binding upon the Parties’ heirs, executors, successors and assigns.
PAYMENT
The
Service Provider shall invoice
the
Client
monthly for time and material
-
based fees, as per the rates specified in the WO, for the
S
ervices. The invoices should be accompanied with the time sheets supporting monthly billing information, as the case may
be, signed off by
the Client
.
The
Client
shall pay the Service Provider amounts under an undisputed invoice within
[
NUMBER OF
DAYS]
days from the receipt by
the
Client
of payment of
the
Service Provider’s invoice to the
Client
in respect of the
S
ervices provided by the relevant Assigned Employees
.
The
Service Provider shall be solely responsible for paying all expenses incurred by the Service Provider before, during and after the
T
erm of this
A
greement that are related in any way and manner to the fulfillment of
the
Service Provider’s obligations flowing from this
A
greement
.
All payments to the Service Provider
are to
be made in the currency specified in the WO, subject to deduction of tax at source, if any
,
or withholding taxes
.
On rece
ipt of the invoices, the Client
shall cross check the invoices and if it has
a
dispute in regard to the raised invoices
,
then it shall notify the Service Provider about the dispute in writing mandatorily within seven (7) days of the receipt of the
invoice. If the Client
fails to raise any dispute within
[
NUMBER OF
DAYS]
days of the receipt of the
invoice,
then the invoice shall be deemed to be accepted.
If the Client
fails to make the payments of the accepted invoices within
[
NUMBER OF
DAYS]
days from the date of acceptance of
the
invoice
s
,
then the Service Provider in its sole discretion reserves the right to halt the
S
ervices up
until
the time the payment for the rendered
S
e
rvices is cleared by the Client
.
If the Client
raises any dispute over
a
raised invoice within seven (7) days of its
receipt,
then the
P
arties shall
attempt to
amicably resolve the dispute
,
and if the dispute is not able to be resolved through amicable efforts
,
then the
Client
shall move for formal arbitration for resolving the dispute.
The continuance of the work as anticipated under the present Agreement shall depend upon the mutual decision of the
P
arties.
All payments shall be made via
[
MODE OF PAYMENT].
The
P
arties shall be liable to pay their applicable taxes.
CONFIDENTIAL INFORMATION AND NON-DISCLOSURE
The
P
arties
understand
that some information may be of a confidential and sensitive nature.
The
P
arties
agree
not to discuss or disclose information
associated
with
this
Agreement
.
Definition: “Confidential Information” means any proprietary information, technical data, trade secrets or know-how of the
Licensor
, including, but not limited to, research, business plans or models, product plans, products, services, computer software and code, developments, inventions, processes, formulas, technology, designs, drawings, engineering, customer lists and customers (including, but n
ot limit
ed to, customers of the Clients
on whom
the
Service Provider
called or with whom
the
Service Provider
became acquainted during the Term of his performance of the Services), markets, finances or other business information disclosed by the
Client
either directly or indirectly in writing, orally or by drawings or inspection of parts or equipment. Confidential Information does not include information which: (a) is known to
the
Service Provider
at the time of disclosure to
the
Client
as
evidence
d by written records of Service Provider
, (b) has become publicly known and made generally available through no wrongful act of
the
Service Provider
, or (c) has been rightfully received by
the
Service Provider
from a third party who is authorized to make such disclosure
.
Non-
Use and Non-Disclosure.
The
Service Provider
shall not, during or subsequent to the Term of this Agreement: (i) use t
he Client
’s Confidential Information for any purpose whatsoever other than the performance of the Se
rvices on behalf of the Client
, or (ii) disclose the Client
’s Confidential Information to any third party. It is understood that said Confidential Information is and will remain the sole p
roperty of the Client
.
The
Service Provider
shall take all commercially reasonable precautions to prevent any unauthorized use or disclosure of such C
onfidential Information.
The
Service Provider
, his/her servants, agents, and employees shall not use, disseminate or distribute to any person, firm or entity, incorporate, reproduce, modify, reverse engineer, decompile or network any Confidential Information, or any portion thereof, for any purpose, commercial, personal, or otherwise, except as expressly authorized in writing by the Manag
er then appointed by the
Client
. Upon completion of the Services, or termination of this Agreement, or
at any time thereafter,
the
Service Provider
and his/her servants, agents, and employees shal
l promptly return to the Client
, or
upon the request of the Client
shall destroy or delete all such tangible and intangible Confidential Information, including, but not limited to, any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings
,
blueprints, sketches, materials, equipment, other documents or property, or reproductions of any aforement
i
oned items developed by
the
Service
P
rovider
pursuant to his/her performance of the Services or ot
h
erwise belonging to the Client
. If requested by
the
Client
, upon the termination or expiration of
this Agreement with the Service Provider
,
the
Client
agrees to and shall execute and deliver a termination certification attesting to the performance of the terms an
d conditions of this
s
ection
,
which may be provided b
y
the
Service Provider
in its sole discretion and timing
.
REPESENTATION AND WARRANTIES
Each
Party
represent
s
and warrant
s
to each other as follows:
It has full power and authority to enter into this Agreement
,
including all rights necessary
to make the foregoing assignments to each other
.
T
hat in performing under the Agreement
,
it will not violate the terms of any agreement with any third party.
The
Service Provider re
presents and warrants to
the
Client
that it has sufficient expertise, training
and experience to
(a)
accomplish the Services; and (b) execute the agreements which state that all work done by the Service Provider will be a work made for hire.
The Client
shall be responsible to conduct proper
and reasonable checks for the
S
ervices provided
by the Service Provider.
DEFAULTS, REMEDIES AND TERMINATION
Events of Default: Each of the following shall constitute an Event of Default under this Agreement
:
Material Breach
-
Either the Client
or
the
Service Provider shall fail in any material respect to comply with, observe, or perform, or shall default in any material respect in the performance of, the terms and conditions of this Agreement.
Material Misrepresentation
- Any represent
ation made by either the Client
or Service Provider hereunder shall be false or incorrect in any material respect when made, or is false in any material respect at any point in time if the representation is one to which
the
Service Provider has a continuing duty to make.
Bankruptcy
- Either the C
lient
or Service Provider shall
apply for or consent to the appointment of a trustee, receiver, liquidator, custodian, or the like for itself or its properties, or
the
same is sought without
the
Service Provider’s consent
in any case or proceeding;
be unable, or admit in writing the inability to pay its debts as they mature, or liquidation, reorganization of its debts, dissolution, or winding-up, or the composition or readjustment of its debts is sought without
the
Service Provider’s consent
in any case or proceeding;
make a general assignment for th
e benefit of its creditors;
commence a voluntary case, or have an involuntary case commenced against it under applicable legal requirement, or file a petition, answer, or consent
seeking reorganization; or
take any action for the purpose of effecting, or acquiescing in or to, any of the foregoing
.
Remedies for Default: Except to the extent more limited rights are provided elsewhere in this Agreement, if an Event of Default occurs as defined above
,
the non-defaulting Party shall provide the defaulting Party with notice of the Event of Default. Following receipt of a notice of an Event of Default, the defaulting Party shall have fifteen (15) days to cure such Event of Default after receipt of notice thereof from the other Party, provided that if such failure is not capable of being cured within such fifteen (15)
-
day period with the exercise of reasonable diligence, then such cure period shall be extended for an additional reasonable period of time, not to exceed thirty (30) days, so long as the defaulting Party is exercising reasonable diligence to cure such failure.
Termination for Default: Either Party shall have the right to immediately terminate this Agreement for an Event of Default as defined above. If the required notice was given for an Event o
f Default as defined in section 11.2
of this
A
greement
and the Event of Default is not cured by the expiration of the corresponding period for cure provided above, the Party not in default, by notice in writing to the defaulting Party, may, in addition to any other rights and remedies available to it under this Agreement, terminate this Agreement and/or any
Work Order
upon at least thirty (30) days
’
prior written notice to the defaulting Party. Upon termination of this Agreement and/or any
Work Order
, all rights and obligations hereunder shall terminate, and neither Party shall have any further obligation or liability hereunder to the other Party, except for liabilities that are incurred prior to or upon termination and any other rights, obligations, or liabilities that which, by their nature, are intended to survive termination of the Agreement and/or any
Work Order
.
Termination for N
o Default
:
Either
P
arty may forthwith terminate this
A
greement with thirty (30) days
’
prior written notice to the other.
The Service Provider shall immediately assign all the rights in the existing work or any work in progress in case of termination of any
p
roject or work given to the Service Provider prior to the date of termination.
The Client
shall pay an equitable amount in lieu of partially completed work or any work in progress and full price as decided for the works and
p
rojects completed by the Service Provider.
SEVERABILITY
If any term, covenant, condition or provision of this
Agreement
is held by a court of competent jurisdiction to be invalid, void or u
nenforceable, it is the
Parties
’
intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable
,
and the remainder of the provisions of this
Agreement
shall in no way be affected, impaired or invalidated as a result.
DISPARAGEMENT
The Service Provider
and the Client
mutually agree that either
P
arty will not, directly or indirectly, disparage or talk negatively about the other
P
arty or any of its affiliates to any person or entity (including without limitation to any former, existing, or prospective clients or
c
ontractors or any person or entity with whom any such other
P
arty does business) and will not, directly or indirectly, make or ratify any public statement, oral or written, that disparages or talks negatively about any such other
P
arty or any of its affiliates
.
Notwithstanding the foregoing, nothing in this
s
ection shall prevent any person or entity from
responding publicly to any incorrect, disparaging or derogatory public statement to the extent reasonably necessary to correct or refute such public statement or making any truthful statement to the extent necessary with respect to any litigation, arbitration or mediation involving this Agreement, including, but not limited to, the enforcement of this Agreement or required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order such person to disclose or make accessible such information
.
NOTICES
Any notices or delivery required here shall be deemed completed when hand-delivered, delivered by agent, or
[
NUMBER OF
DAYS]
days after being placed in the post,
postage prepaid, to the
Parties
at the addresses contained in this
Agreement
or as the
Parties
may later designate in writing at the
address provided by the
Parties
.
FORCE MAJEURE
For purposes of this
s
ection, "force majeure" means an event beyond the control of either
Party
, which by its nature could not have been foreseen by such
P
arty
, or, if it could have been foreseen, was unavoidable, and includes without limitation, acts of God, storms, floods, riots, fires, sabotage, civil commotion or civil unrest, interference by civil or military authorities, acts of war (declared or undeclared) and failure of energy sources.
N
either
P
arty
shall be under any liability for failure to fulfill any obligation under this
Agreement
, so long as and to the extent to which the fulfillment of such obligation is prevented, frustrated, hindered, or delayed as a consequence of circumstances of force majeure
,
provided that such
P
arty
shall have exercised all due diligence to minimize to the greatest extent possible the effect of force majeure on its obligations hereunder.
WAIVER
In the event that any provision of this Agreement is deemed invalid or unenforceable, in whole or in part, that part shall be severed from the remainder of the Agreement and all other provisions should continue in full force and effect as valid and enforceable
.
GOVERNING LAW AND JURISDICTION
This
Agreement
shall be construed and enforced in accordance with the laws of
[STATE/PROVINCE].
The
Parties
submit to the jurisdiction of the courts of
[STATE/PROVINCE]
for the enforcement of this
Agreement
or any arbitration award or decision arising from this
Agreement
.
MEDIATION AND ARBITRATION
In the event a dispute arises out of or in connection w
ith this
Agreement
, the
Parties
shall attempt to resolve the dispute through friendly consultation.
If the dispute is not resolved within a period of [
NUMBER OF
DAYS] days
,
then any or all outstanding issues may be submitted to mediation in accordance with any statutory rules of mediation. If mediation is not successful in resolving the entire dispute or is unavailable, any outstanding issues shall be submitted to final and binding arbitration in accordance with the laws of
[STATE/PROVINCE]
.
The arbitrator's award shall be final, and judgment may be entered upon it by any court having jurisdiction within
[STATE/PROVINCE].
INDEMNIFICATION
AND LIMITATION OF LIABILITY
Indemnification
:
Parties
shall be indemnified and held harmless by
the
other
P
arty
from and against
all
claims of any nature, wh
atsoever, arising out of
the
other
Party
's
performance.
A
Party
shall not be entitled to indemnification under this section for liability arising out of gross negligence or
wilful
misconduct of the
Party
or the breach by the
Party
of any provisions of this
Agreement
.
Limitation of Liability:
The Service Provider shall not have any liability or responsibility whatsoever for any actions or failures or for any serious misconduct or deliberate acts on the part of a
nother party
.
ENTIRE AGREEMENT
This
Agreement
contains the entir
e
Agreement
between the
Parties
. All negotiations and understandings have been included in this
Agreement
. Statements or representations which m
ay have been made by any
P
arty
to this
Agreement
in the negotiation stages of this
Agreement
may in some way be inconsistent with this final written
Agreement
. All such statements are declared to be of no value in this
Agreement
. Only the written terms of this
Agreement
shall bind the
Parties
.
IN WITNESS WHEREOF, the Parties have executed this Agreement on [DATE].
SERVICE PROVIDER CLIENT
Authorized Signature Authorized Signature
Print Name and Title Print Name and Title