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FutureLink
SERVICE AGREEMENT
Between:
FutureLink Distribution Corp.
(FutureLink)
And
Financial Management Alberta Ltd.
(Client)
Background to the Agreement
Client has agreed to rent computing services from FutureLink. The purpose of
this document is to set out the agreement for rental services between FutureLink
and the Client.
1. DEFINITIONS
1.1. SPECIFIC
As used in this Agreement the following words and phrases shall have the
following meanings respectively:
a) Agreement means this Agreement including schedules and addenda attached
to and forming an integral part of this Agreement, and any amendments
made pursuant to this Agreement.
b) Business Day means any day except a Saturday, a Sunday and any statutory
holiday observed in the Province of Alberta.
c) Rental services means the provision and support of work station
computing hardware, access to designated software and means the
equipment that the Client will be required to rent in order to
effectively and efficiently interface with the FutureLink designated
server facility.
d) Currency means Canadian dollars ($).
e) Effective Date of the Agreement means the date in Schedule A.
f) Minimum Term of the Agreement means the minimum number of months, as
specified in Schedule A, the Agreement shall remain in full force and
effect.
g) Location means the location(s) specified in Schedule B where FutureLink
shall deliver the rental services.
h) Party refers to either FutureLink or the Client
1.2. INCORPORATION OF SCHEDULES
The following Schedules, annexed hereto, are incorporated in this Agreement and
deemed to be part hereof:
Schedule A Rental Fees, Term of Agreement, Effective Date
Schedule B Location and Provision of Equipment
Schedule C Installation Plan
Schedule D Service Levels, Client Credits
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2. SERVICES
2.1 RENTAL SERVICES
FutureLink agrees to provide rental services to the Client for the duration of
the minimum term of the agreement and thereafter as mutually renewed by the
Client and FutureLink.
2.2. INSTALLATION PLAN
FutureLink and the Client agree that activities called for are to be
accomplished prior to the effective date of rental services. The
responsibilities of both FutureLink and the Client are detailed in the
Installation Plan.
3. RESPONSIBILITY OF FUTURELINK
3.1. SERVICE COMMITMENT
FutureLink shall use all commercially reasonable efforts to meet or exceed the
services levels defined herein.
a) Reporting
FutureLink will provide the client with a monthly electronic invoice
summarizing the provision of service including the provision of any
client specific enhancement upgrades, or service credits.
b) System Integrity and Access
FutureLink will strive to allow 24 hour rental service access. Further,
FutureLink will not perform routine maintenance that would interfere
with access between the hours of 7:00am and 7:00pm Mountain Standard
Time.
c) Application Support
FutureLink is able to provide contract application support to clients or
will source software application support for clients. Rates will be
negotiated under separate Agreement.
d) Security
Fire-xxxxxxx and encryption coding for the security of client
information will be provided at the cost of FutureLink.
e) Customer Service
FutureLink's customer service help desk will be open 24 hours per day.
f) Service Reviews
FutureLink will conduct regular service reviews for clients.
g) Service Standards
FutureLink will attempt to strive for a 95% access rate which means
between 7:00am and 7:00pm MST FutureLink will attempt to provide a
minimum access rate of 95%. Access limited by FutureLink hardware at
the Client site will be rectified through the provision of repaired
or replacement equipment. Access limited by the fault of FutureLink
will result in an hourly-prorated credit. Credits are defined under
Schedule D.
3.2 SUPPLY AND MAINTENANCE OF RENTAL EQUIPMENT
FutureLink will supply, maintain and replace, as necessary, all user
equipment owned by FutureLink as detailed in the Client Installation
Plan - Schedule C.
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4. RESPONSIBILITIES OF THE CLIENT
4.1. SITE ACCESS
a) The Client shall provide FutureLink and its employees, contractors and
agents physical access to client site premises as may be necessary for
FutureLink to perform its obligations under this Agreement. These
obligations include without limitation the installation of those
components of rental equipment that are to be placed on the Client's
premises;
b) The Client shall arrange such security clearances as may be required in
order to provide such access;
c) In the event that the access required cannot be provided on a timely
basis, the Client shall waive compliance with the Installation Plan for
the period that access is delayed;
d) The Client shall be responsible for satisfying all requirements imposed
by law or contract as it applies to service installation and for meeting
any landlord requirements. This includes any additional fees, design
submissions, installation approvals including but not limited to:
Cabling
Internet Hook-up
4.3. OPERATIONS
a) The Client agrees to not, through its own operations or otherwise, cause
disturbances, outages or any other actions which may affect FutureLink's
network or service program, or which may adversely affect FutureLink's
ability to meet the service standards.
b) The Client further agrees to provide sufficient advance notice of the
Client's intention to change, modify, or reconfigure components or
elements of the Client's computer environment which may affect
FutureLink's network, service standards, or rental equipment, or which
may affect FutureLink's ability to meet the service standards.
c) The Client is responsible for maintenance of the Client facilities and
operating environment (including without limitation cleanliness,
humidity etc.) in which FutureLink rental equipment is located. Should
the Client fail to provide such in its entirety or of a standard such
that is detrimental to the operation of the rental equipment, the Client
shall waive any non-compliance with Service Levels resulting from such
and shall make FutureLink harmless for any loss of service standards.
4.4. USE OF COMMUNICATIONS SERVICES
The rental services provided by FutureLink in accordance with the terms
and conditions of this Agreement are for the sole and exclusive use of
the Client for its internal business and operational use only. Any
resale of the rental services in whole or in part is strictly prohibited
without the express written permission of FutureLink.
4.5. INSURANCE
The Client shall retain insurance for the rental equipment provided by
FutureLink to the Client facilities. The value of such insurance shall
be equivalent to 36 months times the monthly cost per workstation.
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5. PRICE AND PAYMENT
5.1. MONTHLY SERVICE AND USAGE FEES
Commencing on the effective date, FutureLink shall be credited from the
Client, on a pre-payment plan, the monthly per station charge as set out
in Schedule 'C'. Adjustments to charges due to expanded application use
by the client or the provision of additional workstations will result in
the issue of a revised Schedule C to reflect the change in rental
service.
Credits due to the Client from FutureLink will issued electronically or
by cheque.
A monthly electronic invoice will be forwarded to the Client designate.
5.2. FIRST PAYMENT AND SECURITY DEPOSIT
The Client will be responsible for payment of the first month in full
prior to the commencement of services plus a security deposit equal to
the first month xxxxxxxx. Upon termination of the agreement, the
security deposit shall be returned to the client with interest due
payable.
6. TERM AND TERMINATION
6.1. INITIAL TERM
The Agreement shall remain in effect for a minimum of 36 months. The
Agreement shall be renewed after the initial term unless terminated in
writing by the Client as follows:
a) In the event that the Client fails to give a notice of termination 3
months prior to the expiry of the minimum term of the Agreement, this
Agreement shall be deemed to be renewed on a 3 month basis.
b) Either Party may terminate a 3 month renewal by providing the other not
less than 3 months written notice.
6.3. TERMINATION FOR CONVENIENCE
a) The Client may terminate this Agreement for convenience by giving
FutureLink 3 months written notice.
b) If the Client elects to exercise its right to terminate this Agreement
for convenience the Client shall pay to FutureLink a termination for
convenience fee at the rate set forth in Schedule A.
6.4. TERMINATION FOR CAUSE
a) Either Party may terminate this Agreement immediately upon an occurrence
of the following:
(i) A material breach by the other;
(ii) Insolvency or bankruptcy;
(iii) Assignment for the benefit of creditors;
(iv) Appointment of a receiver or trustee in bankruptcy; or
(v) Upon any proceeding in bankruptcy, receivership or liquidation
being instituted and continuing for thirty (30) days without
being dismissed.
b) Termination by the Client pursuant to Subparagraph 6.4(a) will not be
subject to the termination for convenience fee specified in Subparagraph
6.3 above.
c) For the purpose of this Subparagraph 6.4, a failure to achieve committed
service standards shall not be deemed a material breach of the Agreement
unless both (1) the actual service levels achieved are less than ninety
percent (90%) of the service standards for three consecutive months and
(2) such failure is caused by FutureLink.
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7. LIABILITY AND INDEMNITY
7.1. LIMITATION OF LIABILITY
Except as provided in Subparagraph 7.3 and except in the case of use or
disclosure of Confidential Information contrary to paragraph 8 and except for
damages or losses caused by the failure of the other Party to comply with its
obligations under this Agreement, neither FutureLink nor the Client shall be
liable to the other in connection with any single event or series of related
events for any special, incidental, indirect or consequential loss or damage
including, but not limited to, lost profits, lost business revenue, lost or
damaged data, failure to realize expected savings, other commercial or economic
loss of any kind even if FutureLink or the Client Party has been advised of the
possibility of these losses or damages, and regardless of the form of action,
whether in contract or in tort including negligence or based upon any other
legal or equitable theory. Furthermore, in no event will FutureLink or the
Client, its employees, subcontractors and agents be liable for any losses and
damages if and to the extent caused by the other or its employees,
subcontractors and agents failure to perform its obligations under this
Agreement. Notwithstanding anything to the contrary in this Agreement, the
maximum liability of FutureLink to the Client, regardless of the cause or form
of action, shall be the amount paid to FutureLink by the Client under this
Agreement.
7.3. INTELLECTUAL PROPERTY RIGHTS INDEMNITY
FutureLink agrees to indemnify, defend and save harmless the Client from
and against any claims made upon the Client by any third party, in the
event that the use of rental services by FutureLink, as contemplated in
this Agreement, infringes a third party's lawful rights in any valid
patent, copyright, trade secret, or other proprietary interest
enforceable in Canada provided that:
a) FutureLink shall have sole conduct of the proceedings;
b) The Client has promptly notified FutureLink of all such claims and has
not made any admissions in respect of them; c) The Client provides
FutureLink with reasonable assistance and authority in connection with
such claims; and
d) FutureLink, may, in its discretion and at its expense either procure for
the Client the right to continue to use the infringing item and/or
modify or replace the infringing item or, if neither option is
commercially practicable, remove the infringing item from the rental
service.
This indemnity shall not apply to the extent that any infringement is caused or
contributed to by the Client, the connection of services to the FutureLink
network, the Client's corporation, operation or use of the rental equipment with
any other devices, data or programs not furnished by FutureLink or its
authorized subcontractors, or any modification by the Client of the Connectivity
Services that has not been authorized in writing by FutureLink.
8. CONFIDENTIALITY
8.1. CONFIDENTIAL INFORMATION
For the purposes of this Agreement, 'Confidential Information' shall include,
but is not limited to, business information concerning both FutureLink, the
Client and their clients, specifications, research, software, trade secrets,
discoveries, ideas, know-how, designs, drawings, flow charts, data, computer
programs, marketing plans, customer names and other technical, financial or
business information which is disclosed, whether orally, visually or in a
material form, to another in support of the activities provided for in this
Agreement. Any information of third persons disclosed in the course of
performing such activities shall be deemed to be the disclosing entity
information and such information shall be governed by the terms of this
Agreement. FutureLink and the Client acknowledge that any confidential
information disclosed is and shall remain the property of the entity that
disclosed the Confidential Information. All Confidential Information disclosed
in tangible form shall be marked by the disclosing entity with the word
'Confidential' or otherwise identified by an appropriate stamp or legend
Indicating its confidential nature. All Confidential Information disclosed
orally or visually and identified by the disclosing Party as confidential when
disclosed shall be confirmed by the disclosing Party with a written summary of
such information within thirty (30) days following disclosure, and the written
summary shall be marked by the disclosing Party in the same manner described
above.
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8.2. OBLIGATIONS OF CONFIDENTIALITY
FutureLink and the Client agree that they shall hold Confidential Information
exchanged under this Agreement in confidence and shall use the same solely for
the purpose of performing their obligations under this Agreement. FutureLink and
the Client further agree that they shall not disclose any Confidential
Information to anyone except those employees or contractors to whom such
disclosure is necessary for the purposes authorized herein. In the event such
Confidential Information must be disclosed by any Party to third persons for the
purpose of performing this Agreement, the disclosing Party shall, poor to
disclosure, obtain written consent from the Party that disclosed the
Confidential Information and obtain from the third person a written agreement
regarding confidentiality of the Confidential Information, the terms of which
shall be substantially the same as those contained herein. Notwithstanding the
foregoing, a Party may disclose Confidential Information to its professional
advisors without the written consent of the disclosing Party where, in the
opinion of the receiving Party, the advice of its professional advisors is
necessary to accomplish the objectives of this Agreement. Each Party shall use
not less than the same degree of care to avoid disclosure of Confidential
Information as it uses for its own confidential information of like importance
and, in any event, shall use a reasonable degree of care.
8.3. EXCLUSIONS
This Agreement shall not apply to information: (a) previously known to a Party
free of any obligation to keep it confidential; (b) that has been or is
subsequently made public by a Party that owns that information or by a third
Party who is under no obligation of confidence to any Party; (c) that is
independently developed by a Party or an affiliate without reference to or
knowledge of the other Party's Confidential Information; or, (d) that is
disclosed with the poor approval of the owner of the information. Any
combination of Confidential Information regarding, for example, products or
features of technology, shall not be deemed to be within the foregoing exception
merely because individual portions of such combination are disclosed or
separately known in the public domain or known by the receiving Party.
8.4. DISCLOSURE BY LAW
If the Confidential Information is requested by a government agency, a Party may
disclose the Confidential Information of another, provided that the disclosing
Party has obtained protective arrangements reasonably satisfactory to the owner;
provided further that if the governmental agency has jurisdiction to compel
production of the Confidential information and exercises that jurisdiction, the
request shall be treated as a demand for discovery. Notwithstanding the
foregoing, either Party may reveal such Confidential Information as may be
reasonably necessary to any regulatory authority having jurisdiction over it, or
its affiliates, for the purpose of analyzing the regulatory implications and
constraints that may apply to the business relationship and in order to obtain
such regulatory approvals as may be required. If a Party is involved in court
proceedings and is subject to a legally enforceable demand for discovery of
Confidential Information, that Party shall give written notice to the owner of
the Confidential information prior to disclosing the Confidential information,
and shall cooperate in seeking such reasonable protective arrangements as may be
requested by the owner. Nothing in this Subparagraph shall affect the duty of
any Party to take such action as it may deem advisable, including legal action,
to protect its Confident Information.
9. GENERAL
9.1. DISPUTE RESOLUTION
a) If during their course of work in progress, either Party has cause to
believe that the other Party is not fulfilling its obligations under the
terms of this Agreement or a Party raises a dispute relating to the
validity, construction, meaning, performance or effect of this Agreement
or the lights and obligations of FutureLink or the Client or any matter
arising out of or connected with this Agreement, then the dissatisfied
Party shall give written notice to the other Party of its objections and
the reasons therefor. FutureLink's C.O.O. shall consult with the
Client's designate in an effort to reach a mutual agreement to overcome
the objections. In the event that mutual agreement cannot be reached
within a time period that is satisfactory to the Party raising the issue
under consideration, that Party may refer the dispute to FutureLink's
President, and FutureLink's Vice President Engineering and Operations
for resolution of the dispute. FutureLink's Vice President Engineering
and Operations, and FutureLink's President shall meet as soon as is
reasonably possible after a dispute is referred to it, giving due regard
to the nature and impact of the issue under consideration.
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b) Except as provided elsewhere in this Agreement, any controversy,
dispute, or claim that is of a fundamental nature in relation to this
Agreement (including the question whether any particular matter is
eligible for arbitration hereunder) which cannot be resolved in the
manner set forth in paragraph (a) above, shall, at the written request
of one Party to the other not less than sixty (60) days in advance of
submittal to arbitration, be settled by arbitration in accordance with
the Arbitration Act S.A. 1991, c.43.1 or any statutory modification or
re-enactment thereof, (the 'Act') by one arbitrator appointed in
accordance with the Act. The arbitrator shall sit in Calgary, Alberta.
c) The Client and FutureLink shall continue the performance of their
respective obligations during the resolution of any dispute or
disagreement, including during any period of arbitration, unless and
until this Agreement is terminated or expires in accordance with its
terms and conditions. The determination resulting from the arbitration
process shall be final and binding upon the parties to the arbitration.
Accordingly, there shall be no right of appeal from the award of the
arbitrator.
d) The costs of the arbitration shall be borne by the Client and FutureLink
as may be specified in the arbitrator's decision.
e) Notwithstanding anything else in this Subparagraph 9.1, where the
arbitrator conducts a resolution or otherwise receives evidence from a
Party to the arbitration or their respective employees, agents,
consultants or advisors, such evidence shall be treated as Confidential
Information of the Party on whose behalf the evidence is presented and
the Advisors shall enter into a form of non-disclosure agreement in a
form acceptable to the disclosing Party as a pre-condition to receiving,
reviewing or auditing any confidential Information of the disclosing
Party in the arbitration.
f) If a Party desires a remedy that an arbitrator is unable by law to
provide, that matter shall be excluded from arbitration. The following
additional matters shall also be excluded from arbitration:
(i) A decision by either Party to terminate this Agreement pursuant to
Paragraph 6;
(ii) Any law suit involving third parties;
(iii) Intellectual property claims whether initiated by third parties or by
FutureLink or the Client, or
(iv) Any actions arising from an alleged breach of Paragraph 8,
Confidentiality.
9.2. ENTIRE AGREEMENT
This Agreement sets forth the entire agreement between FutureLink and
the Client. This Agreement supersedes all prior understandings and
communications between FutureLink and the Client whether oral or
written.
9.3. ASSIGNMENT
a) This Agreement shall be binding upon and inure to the benefit of
FutureLink and the Client and their respective successors and permitted
assigns. This Agreement shall not be assigned in whole or in part by
FutureLink or the Client without the prior written consent of both
FutureLink and the Client.
b) Any permitted assignment of this Agreement shall be conditional upon
reciprocal provision to this Agreement:
(i) A true copy of the assignment agreement, and
(ii) An agreement and undertaking from the assignee to be directly bound by
the provisions of this Agreement and not to further assign its rights
hereunder without complying with the provisions of this Subparagraph
9.8.
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9.9. FORCE MAJEURE
Notwithstanding any other provision of this Agreement, if by reason of Force
Majeure, any Party is wholly or party unable to perform certain of its
obligations under this Agreement it shall be relieved of those obligations to
the extent, and for the period, that it is affected by Force Majeure, provided
that the affected Party gives the other Party prompt notice of such inability
and nature, cause and expected duration of the Force Majeure. The Party affected
by Force Majeure shall use all reasonable efforts to remedy the situation and
remove, so far as possible and with reasonable dispatch, the cause of its
inability to perform, provided that there shall be no obligation on a Party so
affected to such labor disputes or to test or to refrain from testing the
validity of any order, regulation or law in any court having jurisdiction.
'Force Majeure' shall mean an event, the cause of which is beyond the reasonable
control of the Party affected thereby and which could not reasonably have been
foreseen and provided against, including, without limitation, acts of God,
strikes, Lockouts or other labor or industrial disturbances, accidents, fires,
explosions, weather conditions materially preventing or impeding work, inability
to secure fuel, power, materials, contractors or labor, mechanical breakdown,
failure of equipment or machinery, delays in transportation, wars, civil
commotion, sabotage, applicable legislation and regulations thereunder,
interruptions by government or court orders and future orders (lawful or
otherwise) of any regulatory body of competent jurisdiction but shall not
include financial difficulty.
9.10. NOTICES
All notices, consents, invoices or other communications, other than day to day
communications, provided for under this Agreement shall be in writing and shall
be deemed to be sufficient given if delivered by overnight courier, in which
case the notice shall be deemed to have been received two (2) Business Days
after the sending thereof, or if delivered by hand to a representative of such
Party, in which case the notice shall be deemed to have been received on the
date of delivery thereof, or if sent by telecopier to such Party, in which case
the notice shall be deemed to have been received on the Business Day (in the
locality of the addressee) on the sending thereof. Unless notice of change of
address has been given in the manner provided in this Subparagraph 9.10, notices
shall be addressed as follows:
FUTURELINK DISTRIBUTION CORPORATION
Suite #550 - 000 0xx Xxxxxx XX
Xxxxxxx, Xxxxxxx
X0X 0X0
Attention: C.O.O.
Phone: (403) 543 - 5511
Fax: (403) 543 - 5510
FINANCIAL MANAGEMENT ALBERTA LIMITED
#000, 0000 - 0X Xxxxxx X.X.
Xxxxxxx, Xxxxxxx
X0X 0X0
Attention: Xxxxx Xxxxxxxxx, Managing Director
Phone: (000) 000-0000
Fax: (000) 000-0000
9.12. WAIVER
No indulgence or forbearance by any Party hereunder shall be deemed to
constitute a waiver of its lights to insist on performance in full and in a
timely manner of all covenants of the other Party hereunder and any such waiver,
in order to be binding upon a Party, must be express and in writing and signed
by such Party and then such waiver shall be effective only in the specific
instance and for the purpose for which it is given. No waiver of any term,
condition or covenant by any Party shall be deemed to be a waiver by such Party
of its rights to require full and timely compliance with the same term,
condition or covenant thereafter, or with any other term, covenant or condition
of this Agreement at any time.
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9.13. AMENDMENT OR MODIFICATION
This Agreement may not be amended except by written instrument signed by
FutureLink and the Client.
9.14. SURVIVAL
The terms of this Agreement which, by their nature, extend beyond the term of
this Agreement shall survive any termination or expiration of this Agreement.
9.15. AUTHORITY
Each Party has full power and authority to enter into and perform this Agreement
and the person signing this Agreement on behalf of each Party has been properly
authorized and empowered to enter into this Agreement. Each Party further
acknowledges that it has read this Agreement, understands it, and agrees to be
bound by it
9.17. LEGAL COSTS
Each Party shall bear its own costs incurred in connection with the preparation
and negotiation of this Agreement. In the event it is necessary for FutureLink
to seek a determination or enforcement of its rights under this Agreement by
arbitration in any court of competent jurisdiction, FutureLink shall recover
from the client, in addition to any and all other remedies awarded by such
court, its legal fees and court costs on a solicitor client basis, including
such fees and costs on appeal.
9.18. GOVERNING LAW
This Agreement shall be governed and interpreted abiding to the laws of the
Province of Alberta. Venue and jurisdiction shall be in Alberta.
In witness whereof FutureLink and the Client have executed this Agreement under
the hand of its officer duly authorized in that regard.
9.19. RULES AND REGULATIONS
The Client shall at all times use the rental services in accordance with the
usage rules and policies established by FutureLink from time to time and
communicated to the Client in writing. Any failure by the Client to comply with
said rules and policies, which is not remedied to the satisfaction of FutureLink
within 48 hours (or such shorter time period as may be reasonable in the
circumstances) of notice of such failure to comply, shall be deemed to be a
material breach of this Agreement
FUTURELINK DISTRIBUTION CORP.
Dated: Per:
Title:
FINANCIAL MANAGEMENT ALBERTA LIMITED
Dated: Per:
Title:
