This Master Services Agreement (“Agreement”) is made between Consultant and Client.
WHEREAS, Consultant is in the business of computer software consulting, graphic & web design, and software & web development services.
WHEREAS, Client desires to engage Consultant to provide software consulting, design and development services, and Consultant agrees to perform such services, on the terms and conditions set forth herein.
WHEREAS, Consultant and Client agree that this Agreement shall apply to all such future services.
THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
Consultant agrees to perform services for Client as described in one or more Statements of Work, the form of which are attached hereto as exhibits (the “Services”). Any conflict or inconsistency between the provisions of this Agreement and any executed Statement of Work shall be resolved by giving precedence to the executed Statement of Work under which the Services are to be performed and then to this Agreement.
Client shall assist Consultant in the performance of its obligations under this Agreement and shall undertake the responsibilities specified in this Section 2 at its own expense. Client shall make available to Consultant a designated representative (“Client’s Representative”), who shall be authorized to make binding decisions for Client regarding the obligations which are the subject of this Agreement, and shall perform or have performed other duties and requirements of Client as set forth in this Agreement or in an applicable Statement of Work.
Client understands that Consultant shall rely upon Client’s Representative as having the authority specified in Section 2 herein and that all official communications from Consultant to Client shall be addressed to Client’s Representative.
For all purposes hereof and in the performance of its obligations under this Agreement, Consultant is and shall remain an independent contractor and nothing in this Agreement or in a Statement of Work shall be deemed or construed to create an employer/employee, joint venture or partnership relationship between Consultant and Client. Nothing herein shall be deemed or construed to create an employment relationship between Client and any employee, agent or independent contractor of Consultant. Neither party shall have any authority to insure any obligations on behalf of the other party or to make any promise, representation or contract of any nature on behalf of the other party.
Unless otherwise stated in the applicable Statement of Work, Consultant shall have sole discretion over the identity of its personnel used to provide the Services, provided that Consultant shall ensure that the personnel are in all cases suitably qualified and experienced. Where specific personnel are specified in an applicable Statement of Work, Consultant shall use reasonable efforts to provide the Services through those personnel, provided that Consultant shall be entitled to replace such personnel with personnel of equivalent qualification and experience on no less than 5 business days notice to Client.
Without authorizing Consultant (or its personnel) to engage in any conduct or activities which would result in a breach or violation of any term of this Agreement, Client recognizes that Consultant’s personnel providing services to Client under this Agreement may perform similar services from time to time for other persons, and this Agreement shall not prevent Consultant from using such personnel for the performance of such similar services for such other persons. Consultant recognizes that Client may engage other consultants to perform similar services from time to time, and this Agreement shall not prevent Client from using such consultants.
4.4.1 "Type A Deliverables" shall mean Deliverables that are specific to Client's Business, including, but not limited to source code and documentation associated therewith. Examples of Type A Deliverables include custom graphics and view templates, custom CSS and JavaScript files, helper modules, model and controller classes, and executable specifications and tests, used by the developers to build Ruby on Rails applications or Wordpress websites.
4.4.2 "Type B Deliverables" shall mean Deliverables that are not specific to Client's Business, including, but not limited to frameworks, tools, methodologies, Ruby on Rails or Wordpress plug-ins and third party source code and documentation associated therewith. Examples of Type B Deliverables might include patches and enhancements to open source libraries, such as the Ruby on Rails framework, Laravel framework, ReactJS, or Wordpress source code itself, and/or numerous Ruby Gems and plug-ins available from third parties, contributions to which are a generally-accepted practice in the open-source world.
4.4.3 The Type A Deliverables along with the Type B Deliverables are collectively referred to as the "Deliverables".
Except as otherwise set forth herein, the entire right, title and interest in to Type A Deliverables, including, without limitation, the software, documentation, source code, and all modifications to the foregoing, and all portions thereof, together with all proprietary rights relating thereto, including, without limitation, all intellectual property rights such as copyrights, patent and trade secret rights, are the exclusive property of the Client. Under no circumstances may Consultant use the Type A Deliverables, or any component part thereof, for its own benefit or for the benefit of any third-party.
4.5.1 Works-for-hire: Type A Deliverables shall be deemed works-for-hire and shall be the exclusive property of Client. Consultant expressly agrees to assign to Client the copyright in any Type A Deliverables that do not meet the requirements of a work-for-hire under the U.S. Copyright Act, as soon as such work is fixed in a tangible form or medium. Additionally, independent of the U.S. Copyright Act, Consultant hereby assigns to client, to the fullest extent possible under the law, all of its right, title and interest, if any, in and to the Type A Deliverables. Consultant further agrees to execute and deliver such instrument(s) and to take such action(s) as may be required and/or requested by Client to confirm and/or defend Client's sole and exclusive ownership of the Type A Deliverables. Except as otherwise set forth herein, the entire right, title and interest in and to Type B Deliverables, including, without limitation, the software, documentation, source code, and all modifications to the foregoing, and all portions thereof, together with all proprietary rights relating thereto, including, without limitation, all copyrights, patent and trade secret rights, are owned exclusively by Consultant.
4.5.2 License: Consultant hereby grants to Client a perpetual, irrevocable, limited, non-exclusive, non-transferable, worldwide license, without the right to grant sub-licenses (except that Client may grant sub-licenses to its affiliates and/or subsidiaries), to use the Type B Deliverables in furtherance of Client's Business.
Consultant represents and warrants that: (i) Consultant's performance of services for Client will not, and does not, conflict with or violate any obligation or duty Consultant has to any third party; (ii) the services to be performed by Consultant and Deliverables to be delivered will not infringe any intellectual Property rights of any third party; and (iii) except as identified in the applicable Statement of Work, all Type A Deliverables developed by Consultant will consist of solely original creations and works of authorship of the Consultant.
Consultant represents and warrants its performance under this Agreement and any Deliverables will comply with all applicable federal and state laws, rules, regulations, and standards.
Consultant represents and warrants that: (i) it shall complete all tasks identified in a Statement of Work unless this Agreement or the Statement of Work is terminated as permitted by this Agreement; (ii) all services provided by Consultant to Client (including without limitation any installation, support and training) will be performed in a timely, competent, professional, and workmanlike manner, using qualified employees in conformity with standards generally accepted in the software industry; (iii) it has a sufficient number of competent, professional and qualified employees to provide the services specified in a Statement of Work in a timely manner; (iv) each of its employees providing services to Client have had full-time working experience in the computer industry and have had experience in the specific technology required for the duties to be performed; and (v) Consultant is the lawful owner or licensee of any software programs or other materials used by Consultant in the performance of the services called for in this Agreement and has all rights necessary to convey to Client the unencumbered ownership in the Type A Deliverables.
Consultant represents and warrants that: (i) any Deliverables provided by Consultant under this Agreement will not, at the time of installation, contain any virus or disabling code which are not part of the proper operation of the software; (ii) Consultant and its personnel shall not, during the term of this Agreement, introduce any virus or other disabling code to any of Client's systems or Deliverables; (iii) Consultant and its personnel shall not interfere with Client's quiet and peaceful enjoyment of any Deliverables, or its software or systems; and (iv) Consultant and its Personnel shall not install or insert any virus or disabling code or take any action which would permit Consultant or any third party to interfere with Client's quiet enjoyment of any Deliverables, or its software or systems.
In the event Consultant breaches this warranty, Consultant shall, at Client's option and in addition to such other rights as Client may have with respect thereto, take all steps necessary at Consultant's sole cost to remove the disabling code and assist Client at no additional charge in restoring any and all data or programming lost by Client as a result of such disabling code.
Consultant represents that it has not paid and will not pay any fees or made any payments or rebates to any employee, officer, representative, or designee of Client.
Each party warrants that it is authorized to enter into this Agreement and to perform its obligations hereunder, and that its performance hereunder shall not conflict with, limit, or be contrary to any other agreement or law.
The parties represent and warrant that their disclosure and delivery of any information, documents, software and other materials, and use thereof, as contemplated by this Agreement, will not knowingly infringe or violate any proprietary right of any third party, including, without limitation, any copyright, known patent or trade secret right.
During the term of this Agreement and for all periods thereafter, Consultant agrees not to directly or indirectly compete or interfere with Client’s Business in any manner. Additionally, and without limiting the foregoing, during the term of this Agreement and for a period of two years thereafter, Consultant agrees not to, directly or indirectly solicit or induce or attempt to persuade any employee, independent contractor, vendor, supplier, outsourced third-party, director or other participant of Client to terminate an employment, contractual or other relationship with Client, or to enter into a relationship with Consultant or into any business organization in which Consultant may be directly or indirectly involved. The term “enter into a relationship” shall include, but not be limited to, acting as a paid or unpaid director, officer, agent, employee of, or consultant to, or acting or participating as owner, partner, manager, member, or shareholder. During and for a period of two years immediately following termination of this Agreement, Consultant further agrees not to (a) directly or indirectly contact any person or entity disclosed by Client for the purpose of taking advantage of a business opportunity, (b) otherwise circumvent a relationship with the Client or establish a relationship with a party with whom Client already has a relationship or foreseeable relationship with whom Consultant has never had a relationship, or (c) seek to establish any rights, including but not limited to intellectual property rights, anywhere in the world in conflict with Client’s pre-existing, herein established, or hereafter established intellectual or other property or proprietary rights.
The warranties set forth in this agreement are exclusive and are in lieu of all other warranties, express or implied, including but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Except when otherwise stated in writing the materials produced under the terms of this agreement are provided to client "as is," that is, without warranty of any kind, either expressed or implied. The entire risk as to the quality and performance of the software and/or services provided under this agreement rests solely with the client. Should the software or program prove defective, client solely assumes the cost of all necessary servicing, repair or correction, including without limitation any "debugging."
Except as otherwise stated above, neither party makes any warranties of any kind or nature, whether express or implied, including, but not limited to, warranties related to information or business advice provided, warranties related to outcomes based on information or advice provided, warranties of merchantability or mercantile quality, warranties of fitness for a particular purpose or use, warranties or conditions arising by statute or otherwise in law, or warranties of any products or services provided by third party vendors.
The parties agree that neither party’s liability for damages from any cause of action whatsoever, regardless of the form of action, will exceed the fees paid or to be paid by client pursuant to an applicable statement of work under this agreement. In no event shall either party be liable for lost profits or any indirect, incidental, consequential or special damages of any nature whatsoever, including, without limitation, damages arising from loss of use of any software or hardware, costs of procurement of substitute products or services, lost data, lost profits or revenue, or for any claim or demand by any third person, arising out of or related to the agreement or the performance or breach thereof, even if advised of this possibility.
Client shall pay Consultant according to the terms set forth on the applicable Statements of Work.
6.1.1 Invoices/Payment Consultant shall invoice Client monthly for Fees and Expenses, or by any schedule as outlined in an applicable Statement of Work or other project agreement document. Any such invoice shall be payable by credit card, check, wire transfer or ACH net fifteen (15) days from the receipt thereof. Late payments shall accrue interest at a rate of the lesser of one and one-half percent (1.5%) per month or the highest rate allowed by law. In the event of any dispute with regard to a portion of an invoice, the undisputed portion shall be paid as provided herein.
6.1.2 Expenses Client shall reimburse Consultant for all materials and reasonable out-of-pocket Fees and Expenses incurred in connection with the performance of its obligations under this Agreement (“Expenses”). Consultant shall obtain Client’s prior written approval for any single out-of-pocket Expense which is anticipated to exceed $10.00, or any aggregated out-of-pocket Expenses which are anticipated to exceed $100.00.
Either party may terminate this Agreement or any Statement of Work upon thirty (30) days written notice to the other party.
If a party fails to make a monetary payment as specified in this Agreement, the non-breaching party shall notify the other party of such failure and if the breaching party fails to cure such breach within five (5) business days, the non-breaching party may immediately terminate this Agreement or any Statement of Work.
This Agreement shall remain in full force and effect and govern Services provided to Client by Consultant until this Agreement is terminated, or the parties mutually agree otherwise.
Upon termination of this Agreement for any reason: (a) Client shall immediately pay to Consultant all amounts owed to Consultant pursuant to Section 6 hereof for Services performed and expenses incurred prior to the date of termination; (b) each party shall immediately cease all use of and shall return to the other party within five (5) business days all Confidential Information and materials of such other party and all copies, portions and abstracts thereof, that are in its possession or under its control, other than any materials for which Client has paid or agrees to pay. Consultant shall deliver to Client such portion of the Services that are complete.
In connection with this Agreement, Client may disclose, or Consultant may learn of or have access to, certain confidential proprietary information owned by Client or its affiliates, business partners or clients (“Confidential Information”). Confidential Information includes, but is not limited to, any data or information, oral or written, that relates to Client or any of Client's existing or contemplated business activities, technology, developments, software, methods, trade secrets, and clients. Confidential Information also includes the terms of this Agreement and the Services.
Notwithstanding the foregoing, Confidential Information is deemed not to include information that: (i) is publicly available or in the public domain at the time disclosed, (ii) is or becomes publicly available or enters the public domain through no fault of Consultant, (iii) is rightfully communicated to Consultant by persons not bound by confidentiality obligations with respect thereto, (iv) is already in Consultant's possession free of any confidentiality obligations with respect thereto, (v) is independently developed by Consultant without use of any Confidential Information or (vi) is approved for release or disclosure by Client in writing without restriction.
During the term of its engagement and for all periods thereafter, Consultant shall maintain the Confidential Information in strict confidence and shall not disclose, publish or copy any part of the Confidential Information. Consultant shall use the Confidential Information solely for the purpose of performing its obligations under this Agreement. Consultant shall not use the Confidential Information, or any portion thereof, for its own benefit or for the benefit of any third-party. Consultant shall take all necessary precautions in handling the Confidential Information and limit disclosures on a strict need-to-know basis. However, Consultant may disclose Confidential Information pursuant to the order or requirement of a court, administrative agency, or other governmental body, provided that Consultant gives reasonable prior notice to Client to contest such order or requirement. Upon the termination or expiration of this Agreement, Consultant shall return to Client or certify the destruction of all Confidential Information.
Notwithstanding anything to the contrary in the Agreement or applicable Statements of Work, Consultant shall be permitted to disclose in summary form the nature of the work performed for Client under the applicable Statement of Work. Such disclosure includes a description of the technology utilized by Consultant, but Consultant shall not disclose the proprietary business processes of Client or otherwise result in any breach of any other term of this Agreement.
Notwithstanding anything to the contrary in the Agreement or applicable Statements of Work, each party is entitled to reference the other party and describe work completed under this Agreement and any related Statements of Work in summary and general form, without revealing any of the other party’s confidential information.
All notices required shall be in writing and shall be effective on the date of mailing (or email) to the parties at the addresses (or email addresses) previously indicated, to the attention of the signers of this Agreement, or to such other address as designated by the parties in writing, and sent via registered U.S. mail, or by a mutually recognized overnight delivery service, or by email.
Each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. The invalidity or unenforceability of any provision of this Agreement shall in no way affect the validity or enforceability of any other provision hereof. Any invalid or unenforceable provision shall be deemed severed from this Agreement and the balance of this Agreement shall be construed and enforced as if this Agreement did not contain the particular provisions(s) held to be invalid or unenforceable.
The waiver of a breach of this Agreement or the failure of a party to exercise any right under this Agreement shall in no event constitute a waiver as to any other breach, whether similar or dissimilar in nature, or prevent the exercise of any right under this Agreement.
Neither party shall be responsible for any failure to perform, or delay in performing any of its obligations under this Agreement, where and to the extent that such a failure or delay results from causes outside the control of such party. Such causes shall include, without limitation, delays caused by the other party, acts of God or of the public enemy, acts of the government in its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, freight embargoes, strikes, civil commotion, or the like.
Section headings are for the convenience of the parties and should not be construed as part of this Agreement.
This Agreement shall be deemed executed in St. Louis, Missouri and shall be governed by the laws of the State of Missouri. For purposes of enforcement of arbitration awards, equitable relief, or if for any other reason litigation is permissible under this agreement, each party hereby irrevocably agrees to the personal jurisdiction and venue of any court located in St. Louis, Missouri.
The provisions of Sections 4, 5, and 8 shall survive the expiration or termination of this Agreement. All other provisions of this Agreement, including any Exhibits and Statements of Work hereto which by their terms or import are intended to survive such expiration or termination, shall survive.
This Agreement supersedes all prior oral or written representations, communications, or agreements between the parties, and, together with any appendices, constitutes the final and entire understanding of the parties regarding the subject matter of this Agreement. Neither party has relied on any such prior oral or written representations, communications, or agreements.
Any controversy or claim between the parties shall be settled first by negotiation between the parties’ respective project managers and the Client’s Representative. In the event they are unable to resolve the dispute in a reasonable period of time, the parties agree to elevate the dispute to their respective Presidents or equivalent officer. If, after a reasonable period of time, the parties’ are still unable to resolve the dispute, the parties agree to settle the dispute by arbitration before a single, mutually agreed upon arbitrator under the then current rules of the American Arbitration Association. The decision and award of the arbitrator shall be final and binding and the award so rendered may be entered in any court having jurisdiction thereof. The arbitration shall be held in the jurisdiction of the non-filing party. Each party shall pay its own costs and expenses related to the arbitration, and shall split the cost of the arbitrator. The arbitrator will have no authority to award punitive or other non-compensatory damages to either party. No damages excluded by or in excess of any damage limitations set forth in this Agreement shall be awarded.
This Agreement may be executed (including by facsimile or Internet-based service) by one or more of the parties on any number of separate counterparts. All of such counterparts taken together shall be deemed to constitute one and the same instrument, and (if by facsimile) each such facsimile shall have the same force and effect as if an original.
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