Master Services Agreement
The following terms and conditions outline our relationship
with you and define Big U Computers' liability regarding any services or
products provided to you. It's important to carefully read these terms and
retain a copy for your records.
1) SCOPE OF SERVICES; SOW.
This Master Services Agreement (the "Agreement")
governs all services performed by us, as well as any services, licenses, or
products that Big U Computers, a Pennsylvania corporation located at Macungie,
Pennsylvania 18062 ("we", "our", "us", or
"Big U Computers"), provides or resells to you (collectively referred
to as the "Services"). The specific details of the Services are not
outlined in this Agreement. Instead, the Services will be detailed in one or
more quotes, orders, proposals, or statements of work (each, a "Statement
of Work" or "SOW") that we provide to you. Upon mutual agreement
to a SOW (achieved either through signing or electronic acceptance by both
parties), that SOW will fall under the governance of this Agreement.
Should there be any significant discrepancies between the
provisions in a SOW and those in this Agreement, the provisions in the SOW will
take precedence, except in cases concerning warranties, limitations of
liability, or the termination of this Agreement. For these specific situations,
the terms of this Agreement will prevail unless the SOW explicitly states its
intention to override the conflicting terms of this Agreement.
2) GENERAL REQUIREMENTS.
a) Environment: Under this Agreement,
"Environment" refers to any part of a computer network (whether
cloud-based or traditional), computer system, communication systems,
audiovisual peripherals, hardware, or devices (virtual or physical) that Big U
Computers is responsible for maintaining, monitoring, or operating as outlined
in a Statement of Work (SOW). The scope and fees of an SOW are typically based
on your needs and the configuration of the Environment at the time the SOW is
signed. To prevent delays or adverse effects on our service delivery, and to
avoid potential costs associated with correcting issues caused by the client,
you are required not to alter, move the Environment, or install any software
within the Environment without explicit authorization from Big U Computers.
b) Requirements: All software within the Environment
must be genuine, licensed, and you must be able to provide proof of such
licensing upon request. If an SOW specifies minimum hardware or software
requirements ("Minimum Requirements"), you agree to meet these
requirements as a condition for receiving our Services.
c) Updates: Hardware and software updates
("Updates") are provided by third parties, like equipment or software
manufacturers, and may be made available to us for installation in the
Environment. If an SOW requires, we will follow the manufacturers' guidelines
for Updates installation. However, we do not guarantee the performance of any
Update, nor are we liable for any downtime or losses related to the
installation or use of an Update. We reserve the right to delay the
installation of an Update until we have assessed its compatibility and benefit
to the Environment.
d) Third-Party Support: Should a hardware or
software issue necessitate vendor or original equipment manufacturer (OEM)
support, we may engage with the vendor or OEM on your behalf, passing any
associated fees and costs to you. If anticipated fees or costs exceed $100, we
will seek your consent before incurring such expenses, except in urgent
situations.
e) Advice; Instructions: Occasionally, we may
provide advice or instructions regarding the Services, such as upgrading server
or hard drive capacity, or replacing outdated equipment. It is crucial that you
act on this advice promptly. Failure to do so, resulting in issues like downtime
or security risks, absolves us of responsibility. If ignoring our advice makes
the provision of Services untenable, we reserve the right to terminate the
relevant SOW for cause.
f) Prioritization: Service delivery will be
scheduled and prioritized at our discretion, based on what we deem reasonable
and necessary.
g) Authorized Contact(s): We will accept directions
or consent from personnel or representatives you authorize in an SOW as
"Authorized Contacts". If an Authorized Contact is not designated in
an SOW, it defaults to the person(s) who signed the SOW or those you have designated
to guide us. Changes to Authorized Contacts must be communicated in writing and
take effect three business days after we acknowledge receipt, barring urgent
circumstances.
h) Insurance: If you receive Big U Computers-owned
or licensed equipment or software ("Big U Computers Equipment"), you
must obtain and maintain insurance at your expense for its full replacement
value, naming Big U Computers as an additional insured. This policy must not be
cancelled or altered without prior notice to Big U Computers. Upon request, you
must provide proof of insurance and proof of payment for any premiums or due
amounts under the policy.
3) FEES; PAYMENT.
You agree to pay the fees outlined in each Statement of
Work (SOW). If an SOW does not specify a fee schedule, you will be charged
based on our current standard hourly rates. You are liable for all sales taxes,
other taxes, and governmental fees related to the Services. Should you be
exempt from any taxes, it is your responsibility to provide a valid exemption
certificate or equivalent proof of exemption. Additionally, you are responsible
for all costs associated with freight, insurance, and taxes, including but not
limited to import or export duties, sales, use, value-added, and excise taxes.
a) Schedule: Unless an SOW states otherwise, all
undisputed fees must be paid in advance of receiving the Services. For services
with recurring payments, the amount will be automatically withdrawn from your
designated bank account or charged to your designated credit card on the first
business day of each month in which the Services are provided.
b) Nonpayment: Any fees not paid within fifteen (15)
days after their due date will accrue interest at the lower rate of either 1.5%
per month or the maximum rate allowed by law, calculated from the due date
until the date of payment. We reserve the right to suspend Services, either
partially or completely, without prior notice if fees are overdue. During any
suspension, monthly or recurring charges will continue to accumulate. You must
notify us of any disputes regarding fees within ninety (90) days after the
service date or the date the invoice was paid, whichever is later; failure to
do so will result in the loss of the right to dispute the fees. A re-activation
fee may be applied to resume Services after suspension for nonpayment. Timely
payment of all fees is critical.
c) Discounts: The fees mentioned in an SOW reflect a
discount for payments made through recurring, automated electronic fund
transfers (EFT). Payments made by other methods, such as credit card, will
incur an additional fee of 4% on the pre-tax total of the invoice.
4) ACCESS.
You grant Big U Computers the unrestricted right to
monitor, diagnose, manipulate, communicate with, retrieve information from, and
access the Environment around the clock (24×7) to facilitate our provision of
Services. It is your obligation to secure, at your expense and before any
Services commence, all necessary rights of access, licenses (this includes
software licenses), permits, or other authorizations required for Big U
Computers to deliver Services within the Environment and, if applicable, at your
specified premises, both in physical and virtual capacities.
You must ensure and maintain appropriate and safe
environmental conditions at all locations where Services are to be performed.
Big U Computers personnel are not obligated to perform any tasks or provide
Services in situations that present a risk to safety or health, or require
efforts beyond standard industry practices to accomplish.
5) LIMITED WARRANTIES; LIMITATIONS OF LIABILITY.
a) Hardware / Software Purchased Through Big U Computers:
Unless specifically stated otherwise in a Statement of Work (SOW), all
hardware, software, peripherals, or accessories acquired through Big U
Computers ("Third Party Products") are non-refundable once the order
has been placed into the delivery queue by the manufacturer or a third-party
reseller. Big U Computers will make reasonable efforts to assign, transfer, and
facilitate any warranties and third-party service level agreements associated
with the Third Party Products to you. However, Big U Computers assumes no
liability for the quality, functionality, or operability of any Third Party
Products and shall not be deemed as an insurer or guarantor of their
performance, uptime, or utility. Unless expressly stated in an SOW, all Third
Party Products are provided on an "as is" basis without any warranty between
Big U Computers and you, including, but not limited to, implied warranties.
b) Liability Limitations: This section limits
liabilities under this Agreement or any SOW and constitutes a key component of
our Agreement. You acknowledge that Big U Computers would not have entered into
this Agreement without these liability limitations. All Services are provided
on an "as is" basis. Neither party shall be liable for indirect,
special, exemplary, consequential, or punitive damages, including but not
limited to lost revenue, profits (aside from fees owed to us), savings, or any
other economic loss related to this Agreement, any SOW, the Services, or due to
service delays, even if advised of such potential damages. However, this does
not limit reasonable attorney fees awarded to a prevailing party. Except for
your obligations regarding payments, indemnification, and attorney fees
(outlined elsewhere in this Agreement), a Responsible Party's total liability
for any and all claims related to this Agreement, whether in contract, tort,
indemnification, or negligence, is strictly limited to the Aggrieved Party's
actual direct damages, not exceeding the total fees paid by you to Big U
Computers for the specific Service related to the claim(s) during the six (6)
months preceding the action's accrual date. This limitation does not apply to
damages resulting from a Responsible Party's willful misconduct or gross
negligence. Moreover, a Responsible Party's liability will be proportionately
reduced if a claim is due to the Aggrieved Party's intentional misconduct or
gross negligence.
6) INDEMNIFICATION.
You agree to indemnify, defend, and hold Big U Computers
harmless from any losses, damages, costs, expenses, or liabilities, including
reasonable attorneys' fees (collectively, "Damages"), resulting from
or related to any breach of this Agreement by you, or any acts or omissions by
you in connection with this Agreement. This indemnification obligation does not
extend to any Damages arising from Big U Computers' intentional misconduct or
malicious acts. Big U Computers retains the right, though not the obligation,
to lead the defense and manage the resolution of any claim or action that might
invoke this indemnity clause. However, Big U Computers will not settle any
claim without your prior written consent, which must not be unreasonably
withheld or delayed.
7) TERM; TERMINATION.
This Agreement commences on the Effective Date and will
continue until terminated as set forth herein. Each Statement of Work (SOW)
will have its own duration and can only be terminated as outlined in this
document or as expressly stated in the relevant SOW. The termination of an
individual SOW does not, by itself, affect the continuation of this Agreement
or the status or progression of any other SOWs between the parties.
a) Termination Without Cause: Neither party may
terminate this Agreement without cause if an SOW is currently active.
Similarly, an SOW cannot be terminated without cause before its scheduled
completion, unless agreed otherwise. If Big U Computers discontinues a service
across all customers, it may terminate the relevant SOW without cause with at
least 120 days' prior written notice. Termination of an SOW without cause and
without Big U Computers' agreement will result in a Termination Fee, as
detailed in Section 7(b). If no SOW is active, either party may terminate the
Agreement without cause with five (5) days' prior written notice.
b) Termination For Cause: If a party (the
"Defaulting Party") materially breaches this Agreement or an SOW, the
other party may immediately terminate the Agreement or the relevant SOW for
cause. This is conditional upon the non-Defaulting Party notifying the
Defaulting Party in writing of the breach and the Defaulting Party failing to
remedy the breach within 20 days (or 10 days for non-payment). Termination by
Big U Computers for cause, or your termination of an SOW without cause before
its end date, entitles Big U Computers to a Termination Fee, equivalent to the
fees that would have been paid had the Agreement or SOW continued in effect. If
you terminate for cause, you are only responsible for paying for Services
properly delivered up to the termination date.
c) Client Activity as a Basis for Termination: If
client-supplied equipment or actions cause significant malfunctions requiring
remediation by Big U Computers on three or more occasions, or if any conduct by
you or your personnel makes it unreasonable to provide Services, Big U
Computers may terminate the Agreement or the relevant SOW for cause after 10
days' prior notice. Alternatively, Big U Computers may amend the SOW to exclude
problematic elements.
d) Consent: Both parties may mutually agree to
terminate an SOW or this Agreement at any time through written consent.
e) Equipment / Software Removal: Upon termination,
you must allow Big U Computers access to retrieve any of its equipment or
software. Failure to provide access or return equipment in good condition
(normal wear excepted) will result in a charge for the full replacement value.
You agree not to interfere with any software agents installed by Big U
Computers unless directed.
f) Repayment of Discounted Fees: If you received a
discount or fee waiver based on a commitment to a minimum service term and the
SOW is terminated for cause by Big U Computers or without cause by you, you
must repay the waived fees or the difference between discounted and standard rates
from the start date to the termination date.
g) Transition; Deletion of Data: Should you request
assistance in transitioning away from our services, Big U Computers will
provide help, subject to full payment of outstanding fees and compensation at
the current hourly rate. Any custom configurations or software developed by Big
U Computers are proprietary and will not be disclosed. Unless an SOW states
otherwise, Big U Computers is not obligated to store or maintain client data
beyond 15 days after Agreement termination. You agree to indemnify Big U
Computers against any claims related to data deletion after this period.
8) RESPONSE; REPORTING.
a) Response: Big U Computers guarantees and affirms
that the Services will be delivered, and any notifications of errors, outages,
alarms, or alerts regarding the Environment will be addressed within the time
frames specified in the relevant Statement of Work (SOW) ("Response
Time"), except under the following conditions:
- i. Scheduled
Downtime: Defined as periods, outside of 8:00 AM to 5:00 PM Eastern Time,
Monday through Friday, designated by Big U Computers for scheduled
maintenance or adjustments to the Environment. We aim to give at least
twenty-four (24) hours' notice before any Scheduled Downtime.
- ii. Client-Side
Downtime: Delays or service deficiencies caused by your actions or omissions
will not be Big U Computers' responsibility.
- iii.
Vendor-Side Downtime: Delays or service deficiencies arising from third-party service
providers or vendors are beyond Big U Computers' responsibility.
- iv. Remedies;
Limitations: If Big U Computers fails to fulfill the service level commitments
(excluding the Onboarding Exception, Client-Side Downtime, Vendor-Side
Downtime, and force majeure events), and upon your written request, a
pro-rated credit will be issued corresponding to the duration of the
outage or service failure. Claims for such credits must be submitted
within forty-five (45) days following the report of the outage/service
failure or receipt of a monthly report indicating such failure. These
remedies supersede any other potential claims for service level failures
under this Agreement.
b) Onboarding Exception: The initial forty-five (45)
days following the start of a SOW are exempt from the Response Time commitments
due to potential unanticipated downtime or delays as Big U Computers becomes
acquainted with your systems and requirements ("Onboarding Exception").
9) CONFIDENTIALITY.
a) Definition of Confidential Information: For the
purposes of this Agreement, "Confidential Information" encompasses
all non-public information disclosed to Big U Computers by you. This includes
customer data, customer lists, internal documents, and similar proprietary
details. Confidential Information does not cover information that: (i) is
already public through no fault of Big U Computers, (ii) was developed
independently by Big U Computers without use of your information, or (iii) was
received lawfully from a third party not bound by confidentiality obligations
to you.
b) Use of Confidential Information: Big U Computers
commits to maintaining the confidentiality of your information, not disclosing
it to any third party without your explicit written consent, except as
necessary to meet our obligations under this Agreement.
c) Protection of Confidential Information: Big U
Computers will protect your Confidential Information with the same care we use
to protect our own sensitive information, which will always meet or exceed a
commercially reasonable standard of care. Should any further agreements
regarding confidentiality be entered into with you after the Effective Date,
the terms demanding greater confidentiality protection will prevail.
d) Compelled Disclosure: Should Big U Computers be
required by law (via deposition, subpoena, or similar legal process) to
disclose any Confidential Information, we will promptly inform you to allow for
the seeking of a protective order or other legal remedies. At your expense, Big
U Computers will endeavor to secure such a protective order. If a protective
order is not obtained, or you do not waive compliance, Big U Computers may,
without breaching this agreement, disclose only the portion of Confidential
Information legally required, based on counsel's advice.
e) Business Associate Agreement (BAA): In instances
where a BAA is executed between us for handling personal health information,
its terms will integrate with this Agreement's confidentiality clauses. In
cases of conflict, the terms offering stronger confidentiality protection will
take precedence, with the BAA specifically governing privacy and
confidentiality disagreements.
10) ADDITIONAL TERMS; THIRD PARTY SERVICES.
a) Compliance: Unless explicitly stated within a
Statement of Work (SOW), Big U Computers' Services are not designed to ensure
full regulatory compliance for your business or operations. While certain
Services might support your compliance efforts, they are not comprehensive
compliance solutions and should not be solely relied upon for meeting
regulatory requirements.
b) End User License Agreements (EULAs): Some
Services may necessitate acceptance of third-party EULAs. By agreeing to this
MSA, you authorize Big U Computers to accept EULAs on your behalf. It's
important to note that EULAs may present different service levels, warranties,
and liability limitations than those in this Agreement. You are bound by such
EULAs and must seek enforcement directly from the third-party providers, not
Big U Computers. Should a third-party EULA change, Big U Computers retains the
right to amend the corresponding SOW to maintain compliance.
c) Third Party Services: Big U Computers may utilize
third-party providers for certain Services, which may not always be explicitly
identified in an SOW. We reserve the right to change these providers at our
discretion, provided the changes do not materially affect the quality of
Services under any SOW. Big U Computers is indemnified by you against failures
attributed to these third-party providers.
d) Data Loss: Big U Computers is not liable for any
data loss, corruption, or unreadability arising from communication errors,
equipment failures, or a lack of specified backup or recovery services in an
SOW. Our responsibility for data preservation is limited to areas explicitly
outlined in an SOW for backup or recovery services.
e) Bring Your Own Device (BYOD): You warrant that
Big U Computers is authorized to access all devices connected to the
Environment, including personal mobile devices. Devices not connected to the
Environment or not recognized under a managed service plan ("Unknown
Devices") are not covered by the Services. Big U Computers is not
responsible for issues caused by Unknown Devices within the Environment.
f) Equipment: Equipment provided by Big U Computers
under an SOW is licensed, not sold or leased, to you. Upon SOW expiration, the
license ends, and the equipment must be returned at your expense. Any
configurations on Big U Computers equipment are proprietary and may not be
altered without our express written consent.
11) OWNERSHIP.
Both parties will retain ownership and/or the right to
license all forms of intellectual property currently held by them, including
but not limited to works of authorship, patents, trademarks, copyrights, and
other types of intellectual property ("Intellectual Property").
Nothing within this Agreement or any Statement of Work (SOW) should be
interpreted as transferring or granting any ownership rights or interests in
one party's Intellectual Property to the other party.
12) ARBITRATION.
All disputes, claims, or controversies arising from or
related to this Agreement, except for actions taken by Big U Computers to
collect undisputed fees owed ("Collections"), will be resolved
through arbitration. This includes disputes about the arbitration's scope or
its applicability. Both parties must mutually agree on an arbitrator. The
arbitration process will be overseen by the American Arbitration Association
(AAA) unless no AAA arbitrator is available within a 25-mile radius of Big U Computers'
office. In such cases, Big U Computers may select an alternative arbitration
venue, following that venue's rules for commercial disputes
("Rules"). Should any discrepancies arise between these Rules and the
outlined procedures, the latter shall prevail.
The chosen arbitrator will have expertise in contract law,
intellectual property, and information technology transactions. Should the
parties fail to agree on an arbitrator within 20 days post-arbitration demand,
the selected venue will appoint one. The arbitration shall occur at Big U
Computers' office, unless an alternative location is agreed upon. The
arbitrator will also set the discovery scope, aiming to limit proceedings to
the dispute's specific issues and ensuring discovery is conducted accordingly.
Initially, arbitration costs will be equally divided
between the parties, and each will cover its own legal fees and expenses.
However, the prevailing party in the arbitration is entitled to recover
reasonable legal fees and costs.
13) MISCELLANEOUS.
a) Disclosure: You guarantee that no existing law or
regulation related to your business will obstruct or limit Big U Computers'
ability to provide Services. Should any new regulations or requirements arise
that might affect our service delivery or necessitate reporting to authorities,
you will promptly inform Big U Computers. This includes obligations under
privacy laws like HIPAA, where you must identify protected data before
disclosure or access by Big U Computers.
b) Security: Acknowledge that no security system is
infallible. Certain advanced malware or intentionally harmful software may
bypass industry-standard security measures. Big U Computers does not promise
complete detection or removal of all malware, nor recovery of data affected by
such security threats. Service scopes defined in SOWs do not typically include
recovery of compromised data unless specified.
c) Assignment: This Agreement and any SOW cannot be
assigned or transferred without the other party's prior written consent,
ensuring binding effect upon permitted assignees or transferees. However,
either party may assign this Agreement to a successor entity in the event of a
merger, acquisition, or significant asset sale, provided the successor is
capable of meeting the obligations herein.
d) Amendment: Amendments or modifications to this
Agreement or any SOW require initiation in writing by Big U Computers and
acceptance by your authorized representatives to be effective.
e) Time Limitations: Any legal action related to
this Agreement or SOWs, aside from nonpayment issues, must be initiated within
six months of the cause of action's accrual.
f) Severability: Should any provision of this
Agreement or an SOW be deemed invalid or unenforceable, such invalidity will
not affect the remainder of the Agreement, which will continue in full force
and effect.
g) Collections: In the event of a Collections action
to recover undisputed fees owed to Big U Computers, we are entitled to recover
all associated costs, including reasonable attorneys' fees.
h) Other Terms: Big U Computers is not bound by any
terms not included in a duly executed SOW or explicitly accepted in writing by
Big U Computers.
i) No Waiver: Failure to enforce any Agreement term
does not constitute a waiver of that term in the future.
j) Merger Clause: This Agreement and all SOWs
constitute the complete understanding between the parties, superseding all
prior agreements. Representations not included herein are not binding. This
does not affect obligations accrued before this Agreement's Effective Date.
k) Force Majeure: Neither party is liable for delays
or failures in performance due to events beyond reasonable control, including
natural disasters, governmental actions, cyber incidents, or other unforeseen
disruptions.
l) Non-Solicitation: Each party (referred to as a
"Restricted Party") agrees that during the term of this Agreement and
for a two-year period following its termination, it will not directly or
indirectly solicit, induce, or influence any employee of the other party to
leave or alter their relationship with that party. Violating these terms will
result in the Restricted Party paying liquidated damages equal to 50% of the
first year's base salary of the affected employee. Any such solicitation will
be considered a material breach, allowing the non-violating party the right to
immediately terminate this Agreement or any SOW for cause.
m) Survival: Provisions meant to survive the
termination or expiration of this Agreement will do so. Unenforceable
provisions will be removed without affecting the remainder of the Agreement.
n) Governing Law; Venue: This Agreement and any SOWs
are governed by Pennsylvania law, with exclusive jurisdiction and venue in
Cumberland County, Pennsylvania for all related disputes.
o) No Third Party Beneficiaries: This Agreement
benefits only the signing parties, with no intention to extend rights or
enforceability to third parties.
p) Usage in Trade: Trade practices or dealing
methods will not modify, interpret, supplement, or alter the terms of this
Agreement.
q) Business Day: If a deadline falls on a
non-business day in Cumberland County, Pennsylvania, it extends to the next
business day.
r) Notices; Writing Requirement: Notices must be
sent via U.S. mail, overnight courier, or email, with specific provisions for
deemed delivery. Email notices must go to the recipient's last known email
address.
s) Independent Contractor: The service provider is
an independent contractor, not an employee, partner, or affiliate of the
client.
t) Subcontractors: While generally not using
subcontractors for onsite services, any subcontracted work will be guaranteed
as if performed by the service provider.
u) Data & Service Access: Services provided by
persons or involving data storage outside the U.S. may require modifications at
additional cost if required by the client.
v) Counterparts: This Agreement, SOWs, and
amendments may be executed in counterparts, each deemed original but
collectively considered one agreement. Electronic signatures are accepted.