https://TechContracts.com/ / THE TECH CONTRACTS HANDBOOK
Cloud Computing Agreements, Software Licenses, and Other IT Contracts for Lawyers and Businesspeople
Second Edition
by David W. Tollen
(ABA Publishing - Intellectual Property Law Section of the American Bar Association; 2015)
Form Contract
Customer’s ITMA (Information Technology Master Agreement)
Licensed Software, SaaS, Professional Services, or any Combo of the Three; Customer’s Form Contract; Customer-Friendly; Accommodates Multiple Projects/Licenses/SoW’s; Ink Signature
IMPORTANT NOTICE: This form has multiple moving pieces, so review thoroughly. It serves as a single form for all of a customer’s licensed software, SaaS, and IT professional services deals. Part I applies to all products/services, Part II only to licensed software and SaaS, and Part III only to professional services. You designate the product(s) or service(s) being bought in each Addendum, and you can have one or many.
You may use the form contract below subject to the “Terms of Use” posted at http://techcontracts.com/privacy/. In addition to the Terms of Use, PLEASE READ THE FOLLOWING DISCLAIMER BEFORE USING THE FORM CONTRACT:
NEITHER THE AUTHOR NOR THE PUBLISHER REPRESENTS THAT THE FORM CONTRACT BELOW WILL MEET YOUR SPECIFIC GOALS, PROTECT YOUR SPECIFIC INTERESTS, OR WITHSTAND CHALLENGES TO ITS LEGAL OR FACTUAL SUFFICIENCY. The form contract below is general in nature and may not be sufficient for a specific contractual, technological, or legal problem or dispute. THE FORM IS NOT PROVIDED WITH ANY GUARANTY, WARRANTY, OR REPRESENTATION AS TO QUALITY OR SUITABILITY FOR ANY PARTICULAR PURPOSE. Publication of the form does not constitute the practice of law and is not legal counsel or advice. Neither the author nor the publisher of The Tech Contracts Handbook, nor anyone affiliated with the book’s Website, is rendering a legal or other professional service. The form should not be relied upon as a substitute for consultation with an attorney.
Note that this document uses Microsoft Word multi-level bullets/numbering for section numbers and cross-referencing features for section references. Please delete all text above the following dotted line, as well as the line itself and the page-break following it, before using this form.
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INFORMATION TECHNOLOGY MASTER AGREEMENT
This INFORMATION TECHNOLOGY MASTER AGREEMENT (this “Agreement”) is made as of ______(the “Effective Date”) by and between ______, a ______, (“Customer”) and ______, a ______(“Vendor”). This Agreement consists of Parts I through III below, Attachment A, and any Addendum (as defined below) executed by the parties, including any attachments to such Addendums.
The parties have agreed that Vendor will provide Customer with certain technology products and/or services and that Customer will pay Vendor certain fees. Therefore, in consideration of the covenants, agreements and promises set forth below, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties, intending to be legally bound, hereby agree as set forth in the pages that follow.
IN WITNESS THEREOF, the parties have executed this Agreement as of the Effective Date.
VENDOR CUSTOMER
______
By: ______By: ______
Name: ______Name: ______
Title: ______Title: ______
Date: ______Date: ______
Part I
GENERAL TERMS & CONDITIONS
In Articles 1 through 13 below: references to Licensed Software, SaaS, and Software/SaaS Addendums will be inapplicable unless and until the parties execute a Software/SaaS Addendum; and references to Professional Services, Deliverables, and Statement of Work Addendums will be inapplicable unless and until the parties execute a Statement of Work Addendum.
1. DEFINITIONS. The following terms will have the meanings set forth in this Article 1 when used in this Agreement.
1.1. “Acceptance” is defined in Section 3.1 (Acceptance) below.
1.2. “Addendum” means an addendum addressing acquisition of a specific set of products or services, on the form attached hereto as Exhibit A, executed by authorized representatives of each party. An Addendum may be (a) a Software/SaaS Addendum, (b) a Statement of Work Addendum, or (c) both. References to Addendums include any attachments to those Addendums, except where this Agreement specifically addresses attachments separately.
1.3. “Confidential Information” is defined in Section 5 (Confidentiality) below.
1.4. “Data Breach” means unauthorized disclosure or exposure of Project Data.
1.5. “Deliverable” means software, report, or other deliverable created pursuant to a Statement of Work Addendum.
1.6. “Licensed Software” means software that a Software/SaaS Addendum calls on Vendor to provide for Customer’s reproduction and other use. For the avoidance of doubt, Licensed Software does not include SaaS, though Licensed Software that interfaces with SaaS.
1.7. “Project Data” means all information processed or stored on computers or other electronic media by Customer or on Customer’s behalf, or provided to Vendor for such processing or storage, as well as any information derived from such information. Project Data includes, without limitation: (a) information on paper or other non-electronic media provided to Vendor for computer processing or storage, or information formerly on electronic media; (b) information provided to Vendor by Customer’s customers or other users or by other third parties; and (c) personally identifiable information from such customers, users, or other third parties, including from Customer’s employees.
1.8. “Professional Services” means professional services that a Statement of Work Addendum calls on Vendor to provide. For the avoidance of doubt, Professional Services do not include SaaS.
1.9. “SaaS” means a software-as-a-service that a Software/SaaS Addendum calls on Vendor to host (directly or indirectly) for Customer’s use. For the avoidance of doubt, SaaS does not include Professional Services or Licensed Software.
1.10. “Software/SaaS Addendum” refers to an Addendum with the following checked in Item I thereof: “Software/SaaS – software, software-as-a-service, or both.”
1.11. “Specifications” refers to such technical and functional specifications for Licensed Software, SaaS, and/or Deliverables as are included or referenced in an Addendum.
1.12. “Statement of Work Addendum” or “Statement of Work” refers to an Addendum with the following in Item I thereof: “Statement of Work – professional services.”
2. ADDENDUMS & PAYMENTS. Each Addendum is incorporated into and forms a part of this Agreement. No change in the scope of work, fee arrangements, or other provisions of an Addendum will be effective unless and until each party accepts such change through a written change order. In the event of a conflict with an Addendum, the provisions of Parts I, II, and/or III of this Agreement will govern. In the event of a conflict with an attachment to an Addendum, the main body of such Addendum will govern. No Addendum will be construed to amend this main body of this Agreement.
2.1. Products & Services. Vendor shall provide to Customer such Licensed Software, SaaS, Deliverables, Professional Services, and other products and services as are set forth in each Addendum.
2.2. Compensation. Customer shall pay Vendor such fees as are set forth in each Addendum. Unless the Addendum specifically provides otherwise, invoices will be due and payable 45 days from receipt by Customer. Customer will not be required to pay any fees not specifically listed in this Agreement, including without limitation compensation for employee overtime charges.
2.3. Responsibility for Taxes. Vendor is responsible for paying all federal, state, and local income or business taxes, including estimated taxes and any other taxes, charges, fees, additions to tax, interest, and penalties that may be assessed, imposed, or incurred as a result of the fees paid pursuant to this Agreement.
3. ACCEPTANCE & REJECTION.
3.1. Acceptance. “Acceptance” occurs upon (a) written notice of acceptance of Licensed Software, SaaS, or Deliverables from Customer or (b) 45 days after Vendor has completed and notified Customer in writing of (as applicable) full installation, implementation, and customization, including completion of related Professional Services, if Customer has not first given written notice of rejection. No Licensed Software, SaaS, or Deliverable will be deemed accepted until Acceptance. An Addendum may revise the definition of Acceptance with respect to the Licensed Software, SaaS, or Deliverables provided pursuant to such Addendum.
3.2. Rejection. Except as set forth in the applicable Addendum: (a) Customer shall not reject Licensed Software, SaaS, or Deliverables for any reason other than failure to comply with applicable Specifications; and (b) if Customer rejects Licensed Software, SaaS, or a Deliverable, Vendor shall promptly repair it so that it meets its Specifications and redeliver it to Customer.
4. INDEPENDENT CONTRACTOR.
4.1. Independent Contractor Status; No Benefits. Customer and Vendor acknowledge and agree that Vendor will serve as an independent contractor and that no Vendor employee or contractor will be an employee of Customer. Vendor will be responsible for all employment rights and benefits of Vendor employees, including without limitation: (a) federal, state, and local income and employment taxes and social security contributions; (b) workers’ compensation, health benefits, vacation pay, holiday pay, profit sharing, retirement, pension, disability benefits, and other health and welfare benefits, plans, or programs; and (c) insurance.
4.2. No Agency. Vendor will not have any right or authority to assume or create any obligation or responsibility, express or implied, on behalf of Customer, or to bind Customer in any manner, and shall not make any contrary representation. Without limiting the generality of the foregoing, Vendor will have no right or authority to accept service of legal process on behalf of Customer.
5. CONFIDENTIALITY.
5.1. Confidential Information. “Confidential Information” refers to the following items one party to this Agreement (“Discloser”) discloses to the other (“Recipient”): (a) any document Discloser marks “confidential”; (b) any information Discloser orally designates as “confidential” at the time of disclosure, provided Discloser confirms such designation in writing within 15 business days; (c) and ______, whether or not marked “confidential.” Customer’s Confidential Information also includes (d) any other nonpublic, sensitive information Vendor/Recipient should reasonably consider a trade secret or otherwise confidential. Notwithstanding the foregoing, Confidential Information does not include information that: (i) is in Recipient’s possession at the time of disclosure; (ii) is independently developed by Recipient without use of or reference to Confidential Information; (iii) becomes known publicly, before or after disclosure, other than as a result of Recipient’s improper action or inaction; or (iv) is approved for release in writing by Discloser. Recipient is on notice that the Confidential Information may include Discloser’s valuable trade secrets. Notwithstanding the foregoing, no Deliverable will be considered Confidential Information unless the applicable Statement of Work Addendum so provides.
5.2. Nondisclosure. Recipient shall not use Confidential Information for any purpose other than to facilitate the provision of products and services to Customer pursuant to this Agreement. Recipient: (a) shall not disclose Confidential Information to any employee or contractor of Recipient unless such person needs access for such purpose and, in the case of Vendor’s employees and contractors, is subject to a nondisclosure agreement with Recipient/Vendor with terms no less restrictive than those of this Agreement; and (b) shall not disclose Confidential Information to any other third party without Discloser’s prior written consent. Without limiting the generality of the foregoing, Recipient shall protect Confidential Information with the same degree of care it uses to protect its own confidential information of similar nature and importance, but with no less than reasonable care. Recipient shall promptly notify Discloser of any misuse or misappropriation of Confidential Information that comes to Recipient’s attention. Notwithstanding the foregoing, Recipient may disclose Confidential Information as required by applicable law or by proper legal or governmental authority. Recipient shall give Discloser prompt notice of any such legal or governmental demand and reasonably cooperate with Discloser in any effort to seek a protective order or otherwise to contest such required disclosure, at Discloser’s expense.
5.3. Termination & Return. The obligations of Section 5.2 above (Nondisclosure) will terminate 4 years after disclosure of the Confidential Information in question; provided that such obligations related to Confidential Information constituting Discloser’s trade secrets will continue so long as such information remains subject to trade secret protection pursuant to applicable law. Upon termination of this Agreement, Recipient shall return all copies of Confidential Information to Discloser or certify, in writing, the destruction thereof.
5.4. Retention of Rights. This Agreement does not transfer ownership of Confidential Information or grant a license thereto, unless this Agreement specifically provides to the contrary. Discloser will retain all right, title, and interest in and to all Confidential Information.
5.5. Exception & Immunity. Pursuant to the Defend Trade Secrets Act of 2016, 18 USC Section 1833(b), Recipient is on notice and acknowledges that, notwithstanding the foregoing or any other provision of this Agreement:
(a) Immunity. An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that- (A) is made- (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.
(b) Use of Trade Secret Information in Anti-Retaliation Lawsuit. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual- (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.
6. DATA MANAGEMENT & SECURITY. The provisions of this Article 6 apply only if Vendor receives access to Project Data. Vendor recognizes and agrees that Project Data may contain personally identifiable information or other private information, even if the presence of such information is not labeled or disclosed. An Addendum may waive the obligations of this Article 6 with respect to the subject matter of such Addendum.
6.1. Data Management.
(a) Access, Use, & Legal Compulsion. Unless it receives Customer’s prior written consent, Vendor: (i) shall not access, process, or otherwise use Project Data other than as necessary to perform as required in this Agreement; (ii) shall not give any of its employees access to Project Data except to the extent that such individual needs access to facilitate the provision of products and services to Customer pursuant to this Agreement and is subject to a reasonable written agreement with Vendor protecting such data, with terms reasonably consistent with those of this Section 6.1 (Data Management) and of Section 6.2 (Data Security) below; and (iii) shall not give any third party access to Project Data, including without limitation Vendor’s other customers, except subcontractors subject to Subsection 6.1(d) below. Notwithstanding the foregoing, Vendor may disclose Project Data as required by applicable law or by proper legal or governmental authority. Vendor shall give Customer prompt notice of any such legal or governmental demand and reasonably cooperate with Customer in any effort to seek a protective order or otherwise to contest such required disclosure, at Customer’s expense.