Document:

Exhibit 10.11

 

 

Master Service Agreement

 

1.                                      General.  This master service agreement (this “Agreement”) is between ViaWest, Inc. (“ViaWest”) and the customer set forth below (“Customer”).  This Agreement sets forth the terms and conditions pursuant to which ViaWest shall provide colocation, dedicated and/or virtual hosting service, and/or dedicated Internet access service and, if ordered or requested by Customer, “remote hands” and/or other additional products or service (collectively, the “Service”) to Customer.  This Agreement shall be effective on the date that this Agreement is executed by both ViaWest and Customer, and each Order Form (as defined in Section 2) shall be effective on the date that it is executed by Customer and accepted in writing by ViaWest (each, an “Effective Date”).

 

2.A.                          Billing Information.  Customer agrees to pay the rates and charges set forth in the order form(s) (each, an “Order Form”) executed by Customer and ViaWest for the Service pursuant to the terms set forth therein.  Customer must provide ViaWest with accurate and complete billing information, and shall report to ViaWest any changes in billing information within 30 days of such change.  All charges invoiced to Customer shall be deemed valid unless Customer disputes such charges in writing within 60 days after the invoice is sent by ViaWest to Customer.  Undisputed payments for invoiced amounts are due within 20 days of receipt of invoice by Customer.  ViaWest’s acceptance of this Agreement is subject to satisfactory completion by ViaWest of a Customer credit check, and ViaWest reserves the right at any time to condition provision of the Service on reasonable assurance of payment.

 

2.B.                          Start Dates.  Unless otherwise expressly set forth on an Order Form, monthly recurring charges for all new Service set forth on each Order Form shall begin billing on the earlier to occur of (a) the date that Customer actually begins utilizing any Service set forth on such Order Form or places any equipment in the ViaWest data center (new Service delivery only) and (b) the billing start date set forth on such Order Form or issued in writing or via e-mail by ViaWest following execution of the Order Form (the “Billing Start Date”).  If Customer is not able to use the Service beginning on the Billing Start Date solely as a result of delays caused by ViaWest, then the Billing Start Date set forth on an Order Form shall be extended for each day of delay caused by ViaWest.  In the event ViaWest has completed installation of a portion (but not all) of the Service set forth on an Order Form, ViaWest may, at its discretion, invoice Customer for that portion of the Service already installed and provided by ViaWest, and Customer shall be obligated to pay for such Service in accordance with this Section 2.  Billing for partial months is prorated based on a calendar month.  Unless otherwise expressly set forth on an Order Form, non-recurring charges, including set-up and installation fees, are payable upon installation of the applicable Service.  The rates and charges for electrical power services set forth on an Order Form may increase from time to time during the Service Term (as defined in Section 3) in an amount proportional to any increases experienced by ViaWest in obtaining such electrical power services from the underlying provider. Unless otherwise expressly set forth on an Order Form, monthly recurring charges for all Services (other than electrical power services) shall increase 3% per year beginning on the first anniversary of Service Term Start Date (as defined below) and continuing on each anniversary of such Service Term Start Date thereafter until termination of the Service pursuant to this Agreement.  For purposes of this Agreement, the “Service Term Start Date” shall mean the first day of the calendar month following the Billing Start Date for the last Service installed on such Order Form.  Customer agrees to pay interest on all amounts not paid within 30 days of  the applicable due date at the rate of the lesser of (a) 1.5% per month or portion thereof or (b) the highest rate permitted by applicable law.  Customer agrees to pay all taxes and fees assessed in connection with the Service, except for taxes based on ViaWest’s net income.

 

3.A.                          Term.  For each Service ordered by Customer, this Agreement shall be effective on the applicable Effective Date and shall continue for the number of months set forth on the applicable Order Form from the Service Term Start Date (each, a “Service Term”); provided, however, in no event shall any Service Term extend beyond the term of the underlying lease or other superior interest in the applicable data center, unless ViaWest elects to relocate the Service to another ViaWest-operated data center in the same metropolitan area.  Any Service may be terminated by either party at the end of the applicable Service Term by giving written notice at least 90 days prior thereto, but in the absence of such notice, the applicable Service Term shall automatically renew under the same terms and conditions for a term equal to that of the original Service Term (such renewal term(s) shall also be referred to herein as a “Service Term”).  If Customer terminates a Service Term pursuant to the terms of this Section 3, Customer agrees to notify ViaWest in writing.  Any written notice by Customer to ViaWest of intent to terminate in accordance with this Agreement must be provided via e-mail to cancel@viawest.net or to such other address provided by ViaWest to Customer in writing.  Upon termination of all applicable Service Terms, this Agreement shall terminate automatically.  Termination or suspension of a Service for any reason shall not relieve Customer of its obligation to pay charges for such Service accrued through the date of termination or suspension.  Upon termination of the relevant space-related Service, ViaWest may terminate provision of all associated non space-related Service, including power and bandwidth.

 

3.B.                          Termination for Cause.  Either party may terminate this Agreement or ViaWest may suspend provision of the Service immediately upon an event of default of the other party.  An event of default shall be defined as (a) in the case of Customer only, failure to pay any amount within twenty (20) of the applicable due date; (b) in the case of Customer only, failure to comply with ViaWest’s acceptable use policy (“AUP”), which policy is posted on ViaWest’s web site at http://www.viawest.com/acceptable-use.html, any applicable licensing addendum (“Addendum”), which addenda are posted at http://msa.viawest.net, or, with respect to any colocation-related Service, ViaWest’s data center rules of use (“Data Center Rules”), which rules are posted in the applicable data center; or (c) any material breach of this Agreement by the other party, which breach is not cured within 30 days following written notice by the non-breaching party, provided that this subsection (c) shall not apply with respect to payment obligations, Service-related issues and/or obligations (including notifications), and/or obligations to comply with ViaWest’s AUP and/or Data Center Rules, all of which are covered by Sections 3(a) — 3(b) above or Section 13.

 

3.C.                          Termination for Convenience.  Customer may terminate any Service for its convenience prior to the end of the applicable Service Term, provided that Customer gives ViaWest at least sixty (60) days prior written notice of such termination and pays ViaWest the following early termination fee (as liquidated damages, not a penalty) prior to the effective date of termination of such Service:  (a) one hundred percent (100%) of the remaining monthly recurring charges for each terminated Service for months one (1) through twelve (12) of the then-effective Service Term; plus (b) fifty percent (50%) of the remaining monthly recurring charges for each terminated Service for months thirteen (13) through twenty-four (24) of the then-effective Service Term; plus (c) twenty-five percent (25%) of the remaining monthly recurring charges for each terminated Service for months twenty-five (25) through the end of the then-effective Service Term; plus (d) any previously waived or discounted fees, including, without limitation, installation fees; plus (e) any termination fees or liability associated with any third-party telecommunication services used by ViaWest in the provision of the Service; plus (f) the unamortized portion of any commissions paid by ViaWest to any broker, agent or other authorized representative of Customer; plus (g) all reasonable costs and expenses, including, without limitation, attorneys’ fees, incurred by ViaWest as a result of collecting such early termination fee or any other amounts due under this Agreement.  Customer shall not be liable for the above-stated early termination fee if Customer terminates this Agreement pursuant to Section 13.C. or due to an event of default by ViaWest pursuant to Section 3.  In addition to other remedies available to ViaWest under this Agreement, at law, or in equity, Customer shall pay the above-stated early termination fee (as liquidated damages, not a penalty) for any termination of this Agreement or any or all Service by ViaWest due to an event of default by Customer.

 

4.A.                          Representations, Warranties, and Obligations of Customer.  Customer represents and warrants that it has and shall have full right and authority to enter into this Agreement.  In addition, Customer agrees that its use and its customers’ and other third-party users’ use of the Service and the Customer Data (as defined below) shall not knowingly violate the terms of ViaWest’s AUP, Addendum or Data Center Rules, and Customer shall not use, and shall not permit its agents to use, the Service or Customer’s Equipment (defined below) for any illegal purpose.  Customer at all times shall be responsible for the editorial supervision of the text, data, images, sounds, photographs, illustrations, graphics, programs, code, and other materials transmitted or stored through the Service (the “Customer Data”).

 

4.B.                          Customer Equipment. With respect to colocation-related Service, Customer shall have access to all Customer-owned or Customer-provided equipment (collectively, the “Customer Equipment”) during the term of this

 

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Agreement 24 hours each day, 7 days each week, provided, however, that Customer adheres at all times to the provisions of this Agreement, ViaWest’s security and access procedures and Data Center Rules at the time of such access.  ViaWest, in its sole discretion, may require that Customer and any of Customer’s agents be escorted when they are in the ViaWest data center, and may suspend Customer’s access in an emergency situation.  Customer shall obtain and keep in effect at all times during the Term all licenses, permits and other authorizations required with respect to the business conducted by Customer and with respect to the installation, operation, maintenance, servicing or removal of Customer Equipment.  Customer expressly assumes all risk of loss of or to the Customer Equipment.  With respect to hosting-related Service, Customer shall have no right to access ViaWest’s data center, any equipment, or any software installed or used by ViaWest on the equipment, and the equipment used by ViaWest to provide the Service and such software shall remain the sole and exclusive property of ViaWest.

 

4.C.                          Equipment Removal.   If any Customer Equipment remains in a ViaWest data center following termination of Customer’s space-related Service, Customer shall be (i) responsible for all monthly recurring fees, and (ii) subject to all obligations of Customer contained in this Agreement, in each case until removal of the Customer Equipment by Customer or ViaWest pursuant to this Section 4.C.  Following termination of Customer’s space-related Service, Customer shall not have access to such space or the ViaWest data center unless approved in advance by ViaWest and subject to any reasonable access conditions imposed by ViaWest.  If Customer does not remove the Customer Equipment within seven (7) days following the date of termination of Customer’s space-related Service, unless other arrangements (including the payment of a storage fee) have been made between Customer and ViaWest, Customer agrees that the Customer Equipment shall be deemed to be transferred to ViaWest, and ViaWest may remove and dispose of the Customer Equipment at its sole discretion and may retain any proceeds from such disposition, without any liability to Customer or any of its affiliates, customers, vendors, lenders, employees, contractors, or agents.

 

5.                                      Representations, Warranties, and Obligations of ViaWest.  ViaWest represents and warrants that it has and shall have full right and authority to enter into this Agreement.  In addition, ViaWest agrees that it shall use its best efforts to provide the Service in accordance with Section 13; to the extent that ViaWest does not provide the Service in accordance with Section 13, ViaWest agrees to provide Customer with the remedies set forth in Section 13.  At Customer’s request, ViaWest shall use commercially reasonable efforts to secure domain names and to assign Internet Protocol (“IP”) address space for Customer during a Service Term and to route those IP addresses on ViaWest’s network.  Customer shall have no right to route such IP addresses.  ViaWest shall retain ownership of all such IP addresses at all times, and Customer’s access to such IP addresses shall cease immediately upon termination of the Agreement.  In the event of a network-based or other attack against Customer’s Equipment, other property of Customer or other property in the ViaWest data center, ViaWest may, at its sole option and in its sole discretion, shut off, disconnect or deactivate any portion or all of Customer’s Equipment or Service and shall promptly provide notice of same to Customer.

 

6.                                      Disclaimer of Warranties.  ViaWest exercises no control over and accepts no responsibility for the information or content accessible on the Internet or for the products or services of third parties that may be included in the Services.  The Internet is not a secure network; confidential or sensitive information should not be transmitted over the Internet or stored on computers directly connected to the Internet.  ViaWest disclaims any liability for loss or theft of information transmitted over the Internet or stored on computers directly connected to the Internet.  THE SERVICE AND ANY RELATED SOFTWARE AND/OR EQUIPMENT ARE PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.  NEITHER VIAWEST NOR ITS EMPLOYEES, AFFILIATES, CONTRACTORS, OR AGENTS WARRANT THAT THE SERVICE SHALL BE ERROR-FREE, UNINTERRUPTED, SECURE, OR PRODUCE PARTICULAR RESULTS OR THAT THE INFORMATION OBTAINED ON THE INTERNET SHALL BE RELIABLE OR UNOBJECTIONABLE.  NO ADVICE OR INFORMATION GIVEN BY VIAWEST OR ITS EMPLOYEES, AFFILIATES, CONTRACTORS, OR AGENTS SHALL CREATE A WARRANTY.

 

7.A.                          Indemnification by ViaWest.  Subject to the terms of this Agreement, ViaWest shall indemnify, defend, and hold harmless Customer and its employees, and affiliates from and against any and all claims, damages, losses, liabilities, suits, actions, demands, proceedings (whether legal or administrative), and expenses (including, without limitation, reasonable attorneys’ fees) (collectively, “Losses”) arising from or related to (a) tangible personal property damage to Customer’s equipment located in the ViaWest data center resulting from ViaWest’s negligence or willful misconduct, up to the full replacement cost of the damaged equipment; (b) actual personal injury damage resulting from ViaWest’s negligence or willful misconduct, in each case up to the limits covered by ViaWest’s applicable insurance policies, provided, however that indemnification relating to personal injury shall not apply to any claims made by Customer’s employees that are covered under applicable workers’ compensation laws; and (c) any claim or allegation that the Service violates or infringes upon the intellectual property rights of a third party In addition, if any portion of the Service becomes, or in ViaWest’s opinion is likely to become, the subject of a claim of infringement of any third party intellectual property rights recognized in the United States of America, then ViaWest, at its option and expense, may do one of the following: (1) procure for Customer the right to continue using such portion of the Service; (2) replace or modify such portion of the Service so that it becomes non-infringing; or (3) terminate this Agreement and refund Customer a pro-rated portion of any unused Service fees actually paid. The obligation of ViaWest set forth in the preceding sentence does not apply (a) with respect to portions or components of the Service (i) that are not supplied directly by ViaWest, (ii) that are made or modified in whole or in part in accordance with Customer’s specifications, (iii) that are modified by Customer to the extent the alleged infringement relates to such modification, or (iv) that are combined with other products, processes or materials other than by ViaWest to the extent the infringement relates to such combination; or (b) where Customer’s use of the Service is not strictly in accordance with the terms of this Agreement and the applicable software license agreement provided by ViaWest to Customer or agreed to by Customer via a “click-to-accept” license during installation, if any.  Notwithstanding anything to the contrary set forth in this Agreement, Customer’s sole and exclusive remedies against ViaWest for intellectual property infringement are as set forth in this Section 7.A.

 

7.B.                          Indemnification by Customer.  Customer shall indemnify, defend, and hold harmless ViaWest and its employees, affiliates, contractors, and agents from and against any and all Losses arising from or related to (a) any breach of this Agreement, ViaWest’s AUP or, with respect to any colocation-related Service, ViaWest’s Data Center Rules; or (b) any use of the Service, or any negligent or willful act or omission by Customer or any of its invitees, employees, affiliates, contractors, or agents.  Provided, however, Customer shall only be liable hereunder to the extent the claim is caused or alleged to be caused by the negligence or willful act or omission of Customer.

 

8.                                      Limitation of Liability.  IN NO EVENT SHALL VIAWEST CUSTOMER, OR THEIR RESPECTIVE EMPLOYEES, AFFILIATES, CONTRACTORS, OR AGENTS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OR FOR ANY LOST OR IMPUTED PROFITS, REVENUE, DATA, OR USE, REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH   LIABILITY    IS    ASSERTED, INCLUDING, WITHOUT   LIMITATION, LEGAL THEORIES OF CONTRACT, TORT, OR STRICT LIABILITY, EVEN IF VIAWEST OR CUSTOMER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  IN ADDITION, EXCEPT WITH RESPECT TO A CLAIM FOR INDEMNIFICATION DESCRIBED IN SECTION 7A (C), IN NO EVENT SHALL VIAWEST’S OR CUSTOMER’S LIABILITY FOR ANY DAMAGES EXCEED THE ACTUAL DOLLAR AMOUNT PAID BY CUSTOMER FOR THE SERVICE DURING THE TWELVE (12) MONTH PERIOD PRIOR TO THE DATE THE DAMAGES OCCURRED OR THE CAUSE OF ACTION AROSE.  With the exception of any monetary obligations under this Agreement, neither party shall be responsible for performance of its obligations hereunder where delayed or hindered by events beyond its reasonable control, including, without limitation, acts of any governmental body, war, insurrection, sabotage, embargo, fire, flood, accident, strike or other labor disturbance, interruption of or delay in transportation or telecommunication service, act of its vendors or suppliers or their products and services, or inability to obtain raw materials, supplies, or power used in or equipment needed for the provision of the Service.

 

9.                                      Insurance.  (a)  With respect to colocation-related Service:  Customer must procure and maintain the following insurance during the Service Term:  (i) “all risk” property insurance covering all Customer equipment located in the ViaWest data center in an amount not less than its full replacement cost; (ii) commercial general liability insurance in an amount not less than $2,000,000 per occurrence for bodily injury and property damage; (iii) employer’s liability insurance in an amount not less than $1,000,000 per occurrence; and (iv) worker’s compensation insurance in an amount not less than that required by applicable law.  (b) With respect to hosting-related Service:  Customer shall procure and maintain throughout the Service Term (i) professional liability insurance and (ii) standard form property insurance, including business interruption and electronic data processing media insurance, in each case in the amount of $1,000,000 per occurrence. The above policies, with respect to

 

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both collocation-related and hosting-related Service, must list ViaWest and any additional parties that ViaWest may reasonably designate as additional insured(s) and shall be provided by an insurance company reasonably satisfactory to ViaWest.  Customer’s policies must contain provisions providing that such insurance is primary insurance insofar as ViaWest and Customer are concerned, with any other insurance maintained by ViaWest being excess and noncontributing with the insurance required of Customer and providing coverage for the contractual liability of Customer to indemnify ViaWest.  Customer is responsible for requiring its contractors, subcontractors, and/or sublicensees that access any ViaWest facilities to procure and maintain the same types, amounts, and coverage extensions as required of ViaWest customers.  Upon request, Customer shall provide certificate(s) of insurance to ViaWest evidencing such insurance requirements.  Customer agrees to provide ViaWest with not less than sixty (60) days prior notice of any cancellation or material change to such insurance policies.

 

10.                               Assignment.  Customer shall not assign this Agreement without the prior written consent of ViaWest, which consent shall not be unreasonably withheld.

 

11.                               Governing Law; Venue.  This Agreement shall be governed by the laws of the State of Colorado, without regard to its conflicts of laws principles.  Each of the parties hereby irrevocably submits to the exclusive personal jurisdiction of any federal or state court of competent jurisdiction located in Denver, Colorado, in any action or proceeding relating to this Agreement.  EACH PARTY WAIVES ITS RIGHT TO A JURY TRIAL FOR ANY ACTION ARISING OUT OF THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, AND ALL OTHER CLAIMS.

 

12.                               Non-Disclosure.  During the Service Term, each party may have access to certain confidential and proprietary information disclosed by the other party, including, without limitation, information relating to either party’s clients, customers, or business operations (including the terms of this Agreement and the rates charged for the Service), whether disclosed orally or in writing by any other media (collectively, “Confidential Information”).  Each party (the “Receiving Party”) acknowledges that the Confidential Information of the other party (the “Disclosing Party”) may contain information valuable to the Disclosing Party and that any such Confidential Information shall remain the property of the Disclosing Party.  Each party shall use the Confidential Information provided hereunder only for purposes directly related to the purpose for which it was provided and shall restrict disclosure of Confidential Information solely to its employees and subcontractors with a need to know, or to other third parties expressly permitted by the Disclosing Party, and not disclose such Confidential Information to any other parties, and otherwise to protect the Confidential Information with no less restrictive measures than it uses to protect its own confidential and proprietary information.  The Receiving Party shall be responsible for any breach of this Section 12 by its employees, subcontractors or any third parties to whom Receiving Party discloses the Confidential Information.  “Confidential Information” shall not include information that:  (a) was in the public domain free of any obligation of confidence at the time it was communicated to the Receiving Party; (b) is rightfully communicated to the Receiving Party free of any obligation of confidence subsequent to the time it was communicated to the Receiving Party; or (c) was in the Receiving Party’s possession free of any obligation of confidence at the time it was communicated to the Receiving Party.  Notwithstanding the above, the Receiving Party shall not be in violation of this Section 12 with regard to a disclosure that is in response to a valid order by a court or other governmental body, provided that the Receiving Party provides the Disclosing Party with written notice of such disclosure where reasonably possible in order to permit the Disclosing Party to seek confidential treatment of such information.  The obligations of confidentiality of each party under this Section 12 with regard to any disclosure of Confidential Information shall survive for two (2) years from the date of any such disclosure.  The parties recognize and agree that any breach of this Section 12 would cause irreparable harm and, accordingly, that injunctive relief is an appropriate remedy to prevent any threatened or ongoing breach of such confidentiality obligations.  Notwithstanding anything to the contrary set forth in this Section 12, any disclosure of confidential or proprietary information by means of a third-party attack, probe, theft, or other breach of network security (for which ViaWest expressly disclaims all liability as set forth in Section 6) shall not be deemed to be a breach of this Section 12 unless arising as the result of the gross negligence or willful misconduct of ViaWestThe terms of this Section 12 shall supersede and replace any non-disclosure or confidentiality agreement entered into by the parties prior to the Effective Date of this Agreement.

 

13.A.                   Service Level. For purposes of this Section 13, the “ViaWest Network” shall mean, with respect to the system facilitating Customer’s usage of and connection to the Internet, that portion of such system beginning at the entrance where the Customer’s collocation/hosting uplink (the “Customer Port”) connects to the network and ending where ViaWest delivers Internet Protocol (“IP”) data packets to the Public Internet (as hereinafter defined) on the Customer’s behalf.  For purposes of this Section 13, the “Public Internet” shall mean the gateway router interface between the ViaWest Network and ViaWest’s upstream providers’ networks.  For purposes of this Section 13, a trouble ticket may be opened in ViaWest’s trouble ticketing system by ViaWest, Customer, or ViaWest’s monitoring systems.  ViaWest reserves the right to verify the validity of any tickets opened by Customer or ViaWest’s monitoring systems.

 

13.B.                   Responsibilities for Hosting Service.  For the purposes of this Section 13, with respect to any hosting Service provided by ViaWest pursuant to this Agreement, the parties agree that ViaWest shall be responsible for the following:  (a)  Operating System Management:  ViaWest shall manage, maintain, and support the applicable Red Hat Linux and/or Windows Server operating system (the “Operating System”).  ViaWest shall perform the initial setup and installation of the Operating System and ongoing maintenance, including reasonable upgrades or fixes.  ViaWest shall use commercially reasonable efforts to notify Customer of any upgrades to the Operating System in advance of such upgrade.  (b) Server Infrastructure Management:  ViaWest shall manage, maintain, and support the following server infrastructure elements:  CPU, memory, hard disk, power supply, and motherboard (collectively, “Server Infrastructure”).  If Customer purchases any server upgrades, ViaWest also shall provide installation as necessary.  (c) Network Infrastructure Management:  ViaWest shall manage, maintain, and support the following network infrastructure elements: routers, switches, Internet connectivity on the ViaWest Network, and, to the extent ordered by Customer and provided by ViaWest as part of the Service, firewalls and load balancers (collectively, “ViaWest Network Infrastructure”).  (d) Monitoring:  ViaWest shall provide 24x7 monitoring of the Operating System, Server Infrastructure, and ViaWest Network Infrastructure for health and failure of these systems and infrastructures.  For the purposes of this Section 13, with respect to any hosting Service provided by ViaWest pursuant to this Agreement, the parties agree that Customer shall be responsible for the following:  (a)  Application, Code, and Content Management:  Customer shall manage, maintain, and support any application code or content that is not provided and installed by ViaWest.  Customer also shall be responsible for (1) application, code, and content compatibility with the Operating System, including upgrades and (2) loading its software to the server remotely.  If requested by Customer, ViaWest may provide software loading on a time and material basis if agreed by ViaWest in its discretion.  (b)  Server Access:  Customer shall be responsible for providing its own access to the server through an administration tool such as SSH, VNC, or Remote Desktop.  Customer also shall be responsible for any Internet access needed to access the server. (c)  Security:  Customer shall be responsible for the security of its Operating System, application, code, and content.  Customer shall provide ViaWest with user names and passwords for access to the Operating System, application, code, and content.  (d) Backup Service:  Customer shall be responsible for backup and recovery of its content unless backup services are purchased through ViaWest.

 

13.C.                   Satisfaction Guarantee.  In the event that Customer is not one hundred percent (100%) satisfied with the Service’s network availability, power availability, and/or hardware availability, then Customer may provide written notice to ViaWest of its dissatisfaction.  Such written notice must identify the affected Service, refer to this satisfaction guarantee, and document in reasonable detail Customer’s eligibility for credits due to noncompliance of the Service with the network availability commitment, power availability commitment, and/or the redundant hardware availability commitment set forth in Section 13.E., 13.F., and/or 13.K., as applicable.  Following receipt of such written notice, ViaWest shall have ten (10) days to cure the issue causing the noncompliance.  If, within such ten (10) day period, ViaWest does not cure the issue causing the noncompliance or provide documentation to Customer demonstrating that the Service is in compliance with the applicable commitment, then Customer, within ten (10) days following the end of ViaWest’s ten (10) day cure period, may terminate the affected Service without penalty upon written notice to ViaWest.  In addition, if Customer provides such written notice (as set forth above) to ViaWest four (4) or more times over any consecutive twelve (12) month period for the same root cause resulting in noncompliance of the same commitment (which notice is not countered by documentation demonstrating that the Service is in compliance with the applicable commitment), then Customer may terminate the affected Service without penalty upon written notice to ViaWest.  Any termination pursuant to this Section 13.C. shall be effective ten (10) business days after receipt of written notice by ViaWest.

 

13.D.                   ViaWest Installation Commitment.  Provided that (i) an Order Form does not contain any non-standard Service and (ii) Customer has returned to ViaWest in a timely manner a fully-completed order package with respect to

 

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such Order Form, as reasonably determined by ViaWest, ViaWest’s commitment is to install the Service set forth on such Order Form (i.e., standard hosting service, standard colocation space, and/or standard power and standard bandwidth) by the Billing Start Date set forth on the Order Form or issued in writing or via e-mail by ViaWest following execution of the Order Form.  If ViaWest fails to meet the installation commitment set forth in this Section 13.D. and Customer provides ViaWest with a written request within five (5) business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to fifty percent (50%) of the installation fees charged to Customer for the affected Service.

 

13.E.                    ViaWest Network Availability Commitment.  ViaWest’s commitment is to maintain availability of the ViaWest Network one hundred percent (100%) of the time.  Unavailability of the ViaWest Network is measured over a calendar month and is based on total outage time incurred by Customer.  Network unavailability shall exist when (i) a particular Customer Port is unable to transmit IP data packets from such Customer Port to the Public Internet via the ViaWest Network and (ii) such failure is recorded in ViaWest’s trouble ticket system.  Network unavailability is measured from the time the trouble ticket is opened to the time ViaWest confirms that the affected Service is again able to transmit and receive data.  ViaWest shall use commercially reasonable efforts to notify Customer, via any immediately available method selected by ViaWest, including, without limitation, telephone, e-mail or posting at mysupport.viawest.net, of any known network unavailability affecting Customer’s Service.  If ViaWest fails to meet the network availability commitment set forth in this Section 13.E. and Customer provides ViaWest with a written request within five business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges (as hereinafter defined) for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.F.                     ViaWest Power Availability Commitment.  This commitment shall apply only with respect to power Service provided by ViaWest to Customer in a colocation environment.  ViaWest’s commitment is to maintain availability of the AC power provided to Customer’s cabinet in the ViaWest data center one hundred percent (100%) of the time.  Unavailability of the AC power is measured by the number of minutes that power is not available to Customer’s cabinet measured from the time power unavailability is determined by ViaWest to the time power is restored.   AC power shall not be considered to be unavailable if provided through any secondary or supplemental power circuit without disconnection of service.  ViaWest shall use commercially reasonable efforts to notify Customer, via any immediately available method selected by ViaWest, including, without limitation, telephone, e-mail or posting at mysupport.viawest.net, of any known power unavailability affecting Customer’s cabinet.  If ViaWest fails to meet the power availability commitment set forth in this Section 13.F. and Customer provides ViaWest with a written request within five (5) business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.G.                   ViaWest Network Connections Availability Commitment.  ViaWest’s commitment is to maintain availability of Customer’s network connections (i.e., cross connects provided by ViaWest) one hundred percent (100%) of the time.  Unavailability of Customer’s network connections is measured over a calendar month and is based on total outage time incurred by Customer.  For purposes of this Section 13.G., Customer’s network connections shall begin at the initial piece of ViaWest owned and operated equipment to which the applicable circuit connects and shall end at the demarcation point installed in Customer’s cabinet and/or cage.  Network connection unavailability shall exist when (a) due to a failure of Customer’s network connection(s) (i.e., cross connects provided by ViaWest), a particular Customer Port is unable to transmit data from the ViaWest network connection(s) and (b) such failure is recorded in ViaWest’s trouble ticket system.  Network connection unavailability is measured from the time the trouble ticket is opened to the time ViaWest confirms that the affected Service is again able to transmit and receive data.  ViaWest shall use commercially reasonable efforts to notify Customer, via any immediately available method selected by ViaWest, including, without limitation, telephone, e-mail or posting at mysupport.viawest.net, of any known unavailability of Customer’s network connections affecting Customer’s Service.  If ViaWest fails to meet the network availability commitment set forth in this Section 13.G. and Customer provides ViaWest with a written request within five (5) business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges (as hereinafter defined) for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.H.                  ViaWest Network Packet Loss Commitment.  ViaWest’s commitment is to maintain average packet loss of no more than 1% across the ViaWest Network.  Average packet loss across the ViaWest Network is measured over a twenty-four (24) hour period beginning at 12:01 A.M. MST each day.  Measurements shall be performed on an ongoing basis.  If ViaWest fails to meet the network packet loss commitment set forth in this Section 13.H. and Customer provides ViaWest with a written request within five (5) business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges for the affected Service for each twenty-four (24) hour measurement period during which ViaWest fails to meet the commitment during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.I.                       ViaWest Network Roundtrip Delay Commitment.  ViaWest’s commitment is to maintain average roundtrip delay of no more than forty (40) milliseconds across the ViaWest Network.  Average roundtrip delay across the ViaWest Network is measured over a twenty-four (24) hour period beginning at 12:01 A.M. MST each day.  Measurements shall be performed on an ongoing basis.  If ViaWest fails to meet the network roundtrip delay commitment set forth in this Section 13.I. and Customer provides ViaWest with a written request within five (5) business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges for the affected Service for each twenty-four (24) hour measurement period during which ViaWest fails to meet the commitment during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.J.                       ViaWest Non-Redundant Hardware Availability Commitment.  This commitment shall apply only with respect to Service provided by ViaWest to Customer in a hosting environment.  ViaWest’s commitment is to maintain availability of ViaWest-owned and operated hardware for which Customer has not ordered a redundant unit (the “Non-Redundant Hardware”) as follows:

 

	
hardware
    	
 
    	
availability
    	
 
    
	
1.
    	
Communications, controller, routers, switches,   firewalls, and other network infrastructure
    	
 
    	
99.9
    	
%
    
	
2.
    	
Disk storage (Local, VSAN, DAS)
    	
 
    	
99.9
    	
%
    
	
3.
    	
CPU and/or processing platforms
    	
 
    	
99.9
    	
%
    

 

Unavailability of the Non-Redundant Hardware is measured over a calendar month and is based on total outage time incurred by Customer.  Non-Redundant Hardware unavailability shall exist when (1) the unit that is in production for provision of the Service is unable to operate in accordance with industry standards and causes unavailability of the Service and (2) such failure is recorded in ViaWest’s trouble ticket system.  Non-Redundant Hardware unavailability is measured from the time the trouble ticket is opened to the time ViaWest confirms that the affected unit is again operational.  ViaWest shall use commercially reasonable efforts to notify Customer, via any immediately available method selected by ViaWest, including, without limitation, telephone, e-mail or posting at mysupport.viawest.net, of any Non-Redundant Hardware unavailability affecting Customer’s Service.  If ViaWest fails to meet the Non-Redundant Hardware availability commitment set forth in this Section 13.J. and Customer provides ViaWest with a written request within five business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.K.                  ViaWest Redundant Hardware Availability Commitment.  This commitment shall apply only with respect to Service provided by ViaWest to Customer in a hosting environment.  ViaWest’s commitment is to maintain availability of ViaWest-owned and operated hardware for which Customer has ordered a redundant unit (the “Redundant Hardware”) as follows:

 

4

 

	
hardware
    	
 
    	
availability
    	
 
    
	
1.
    	
Communications, controller, routers, switches,   firewalls, and other network infrastructure
    	
 
    	
100
    	
%
    
	
2.
    	
Disk storage (KINECTed)
    	
 
    	
100
    	
%
    
	
3.
    	
CPU and/or processing platforms
    	
 
    	
100
    	
%
    

 

Unavailability of the Redundant Hardware is measured over a calendar month and is based on total outage time incurred by Customer.  Redundant Hardware unavailability shall exist when (1) both the primary and the redundant units that are in production for provision of the Service are unable to operate in accordance with industry standards and cause unavailability of the Service and (2) such failure is recorded in ViaWest’s trouble ticket system.  Redundant Hardware unavailability is measured from the time the trouble ticket is opened to the time ViaWest confirms that at least one of the affected units is again operational.  ViaWest shall use commercially reasonable efforts to notify Customer, via any immediately available method selected by ViaWest, including, without limitation, telephone, e-mail or posting at mysupport.viawest.net, of any Redundant Hardware unavailability affecting Customer’s Service.  If ViaWest fails to meet the Redundant Hardware availability commitment set forth in this Section 13.K. and Customer provides ViaWest with a written request within five business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.L.                    ViaWest Support Response Commitment.  ViaWest’s service support for colocation and hosting Service is available 24 x 7.  ViaWest’s commitment is to respond to any failure of Customer’s colocation or hosting Service within the following time frames following ViaWest’s confirmation of such failure:

 

	
Severity
    	
 
    	
Response Time
    
	
Level   1 - Critical
    	
 
    	
15 minutes
    
	
Level   2 — Non-Critical
    	
 
    	
2 hours
    

 

For the purposes of this Section 13.L., (b) “Critical” issues shall mean all issues in which (i) Customer’s Operating System, Server Infrastructure, ViaWest Network Infrastructure, and/or the power to Customer’s space are unavailable for normal use, (ii) communications are significantly degraded, and/or (iii) data loss or corruption are observed; and (b) “response” shall mean that a ViaWest representative is working to resolve the issue.  If ViaWest fails to meet the support response commitment set forth in this Section 13.L. and Customer provides ViaWest with a written request within five business days of the last day of the month in which such failure occurred, ViaWest shall provide a service credit to Customer’s account equal to ten percent (10%) of Customer’s Monthly Service Charges (as hereinafter defined) for the affected Service for each cumulative hour of unavailability or failure during the applicable month, up to a maximum of the total Monthly Service Charges charged by ViaWest to Customer during the applicable month for the affected Service.

 

13.M.                Service Credit Eligibility.  In the event that Customer is eligible to receive multiple credits under this Section 13 from the same event pursuant to different commitments, such credits shall not be cumulative and Customer shall be eligible to receive only the maximum credit available for such event under the service level commitment corresponding to the root service failure.  For purposes of this Section 13, “Monthly Service Charges” shall mean the service charges (excluding any taxes, pass-through charges, promotional or other credits, colocation space or other non-bandwidth charges, set-up or installation charges, or other one-time charges) billed for the affected or applicable Service during the applicable month.  THIS SECTION 13 SETS FORTH CUSTOMER’S SOLE AND EXCLUSIVE REMEDY FOR EQUIPMENT AND/OR SOFTWARE FAILURES, SERVICE INTERRUPTIONS, SERVICE RESPONSE ISSUES, AND/OR SERVICE DEFICIENCIES OF ANY KIND WHATSOEVER.

 

13.N.                   Service Credit Exceptions.  For each commitment set forth in this Section 13, service credits shall not be available to Customer in cases where (1) the Service is unavailable as a result of (a) the acts or omissions of Customer or its employees, contractors, agents or end-users; (b) the failure, malfunction, or limitation of throughput of equipment, network, software, applications or systems not owned or directly controlled by ViaWest (including third-party products and services that may be included in the Services); (c) circumstances or causes beyond the control of ViaWest, including, without limitation, events of force majeure and third-party attacks on the ViaWest Network (such as ping and denial of service attacks); (d) scheduled maintenance with prior notice posted at mysupport.viawest.net, which URL is subject to change upon prior notice; or (e) urgent maintenance with notice provided as soon as is commercially practicable under the circumstances or (2) Customer is not in compliance with its applicable ViaWest Service Agreement (including ViaWest’s then-current Acceptable Use Policy and  Data Center Rules).  Such credits shall be granted only if Customer provides ViaWest with all requested information in an expeditious manner and affords ViaWest full and free access to Customer’s premises and equipment to make necessary repairs, maintenance, testing, etc.

 

13.O.                   Rerouting.  ViaWest reserves the right to re-route IP data packets to any and all Internet carriers connected to the ViaWest Network based upon current load and service issues at the time of re-routing.  The removal of IP data packets and the re-routing to another Internet carrier shall not be calculated in the service level commitments set forth in this Section 13.

 

13.P.                     Chronic Alerts.  In the event that a single alert or one or more related alerts recur on a consistent basis, as reasonably determined by ViaWest, and ViaWest determines that the alert(s) are generated due to a condition or component that is outside the scope of the Service to be provided by ViaWest under this Agreement, ViaWest may flag the condition or component generating the alerts as being in a “testing” status rather than in a “production” status.  If a condition or component is flagged as being in a “testing” status, it means that (i) an error or condition has occurred because of development or other inherent issues unrelated to the Service provided by ViaWest and (ii) any alerts generated from such condition or component are not subject to ViaWest’s problem resolution and escalation process and shall not be addressed by ViaWest.  ViaWest shall notify Customer of any consistently recurring alerts due to a condition or component that is outside the scope of the Service to be provided by ViaWest and shall provide Customer with an opportunity to correct the condition or the component causing the alerts prior to placing it in a “testing” status.  Upon notification by Customer that the condition or component has been addressed to eliminate the recurring alerts, ViaWest shall bring the condition or component back to a “production” status unless ViaWest determines that the recurring alerts still are occurring.

 

14.A.                   Power Utilization.  This Section 14 shall apply with respect to all colocation-related Service provided to Customer pursuant to this Agreement.  For colocation-related Service provided on a per cabinet basis, in the event that Customer’s sustained power utilization exceeds 5,000 watts per cabinet, then one of the following must occur as determined by ViaWest:  (a) Customer shall purchase additional colocation cabinet space at the then-current rates in order to reduce power utilization below 5,000 watts per cabinet; (b) ViaWest shall increase Customer’s colocation cabinet and power pricing set forth on the applicable Order Form, at its reasonable discretion, to offset the increased power and data center support costs; or (c) Customer shall decrease its power utilization below 5,000 watts per cabinet.  For colocation-related Service provided on a square foot basis, in the event that Customer’s sustained power utilization exceeds 120 watts per square foot, then one of the following must occur as determined by ViaWest:  (a) Customer shall purchase additional colocation space at the then-current rates in order to reduce power utilization below 120 watts per square foot; (b) ViaWest shall increase Customer’s colocation space and power pricing set forth on the applicable Order Form, at its reasonable discretion, to offset the increased power and data center support costs; or (c) Customer shall decrease its power utilization below 120 watts per square foot.

 

14.B.                   Circuit Breaker Utilization.  In the event that any of Customer’s allocated circuit breaker(s) carry greater than eighty percent (80%) of its continuous current load based on National Fire Protection Association 70 Article 210.20 (A), then one of the following must occur as determined by ViaWest:  (a) Customer shall purchase additional power circuits at the then-current rates in order to reduce circuit breaker utilization to less than eighty percent (80%) of its rated current or (b) Customer shall decrease its circuit breaker utilization to eighty percent (80%) of its rated current.

 

14.C.                   Primary and Redundant Power.  In the event that Customer orders a primary power circuit or a redundant power circuit, such Service must be utilized as set forth on the applicable Order Form.  If Customer is found to be using a redundant power circuit as a primary power circuit, then one of the following must occur as determined by ViaWest: (a) ViaWest shall increase Customer’s power pricing set forth on the applicable Order Form, at its reasonable discretion, to the then-current rates for primary power circuit or (b) Customer shall begin utilizing the redundant power circuit in a redundant manner as reasonably determined by ViaWest.  For purposes of this Section 14.C., any redundant power circuit with utilization greater than 40% of the rated breaker capacity shall be deemed to being utilized as a primary power circuit.

 

15.                               Miscellaneous.  This Agreement, including the attached Order Form(s) and ViaWest’s AUP, Addendum and Data Center Rules, constitutes the entire 

 

5

 

agreement between the parties with respect to the Service and supersedes all prior representations, understandings, and agreements between the parties with respect to the Service.  This Agreement may only be amended in a writing signed by both parties.  ViaWest’s AUP and Data Center Rules and any applicable Addendum may be amended from time to time in ViaWest’s sole discretion provided, however, any such amendment shal only become effective as to Customer, following notification of Customer.This Agreement does not grant or create any property interest by the Customer in any real or personal property of ViaWest, nor shall Customer contend otherwise.  This Agreement is not, and shall not be deemed to be, a lease, a sublease or a license from ViaWest to the Customer, and Customer shall not contend otherwise.  ViaWest, in its discretion, may alter its provision of any Service upon notice to Customer, provided that such alteration does not result in a material adverse change in the Service, as determined in accordance with industry standards, provided, however, that ViaWest’s ability to alter provision of any Service shall not in any way alter or affect ViaWest’s obligations pursuant to Article 13 of this Agreement.  Customer shall cooperate with ViaWest in any investigation of the use or possible use of the Customer’s Equipment, the Data Center or the Services for any illegal purpose or other than in strict compliance with ViaWest’s AUP.  In connection therewith, Customer acknowledges that ViaWest may cooperate with law enforcement agencies in investigations of such use or possible use in accordance with ViaWest’s privacy statement available at http://www.viawest.com/privacy-statement.html. No failure by either party to insist upon strict performance of any provision of this Agreement shall be construed as a waiver of any of its rights hereunder.  In the event that any portion of this Agreement is held to be unenforceable, the unenforceable portion shall be construed as nearly as possible to reflect the original intent of the parties and the remainder shall remain in full force and effect.  All terms and provisions of this Agreement that should by their nature survive the termination of this Agreement shall so survive, including, without limitation, Sections 3, 4, 5, 6, 7, 8, 11, 12, and 15. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. Signatures to this Agreement may be transmitted facsimile signature or in portable document format via electronic mail.

 

Agreed to and accepted by:

 

	
CUSTOMER:
    	
Q2   Software, Inc.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Steve Blockburn
    	
 
    	
10/18/12
    	
 
    
	
Signature   of Authorized Representative
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Steve   Blockburn, VP of DC Ops.
    	
 
    	
 
    	
 
    
	
Name   and Title of Authorized Representative
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
9430   Research Blvd.
    	
 
    	
 
    	
 
    
	
Customer   Address
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Bldg   4, STE 400
    	
 
    	
 
    	
 
    
	
Customer   Address
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
VIAWEST, INC.
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   Karen Johnson
    	
 
    	
10/18/12
    	
 
    
	
Signature   of Authorized Representative
    	
 
    	
Date
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Karen   Johnson, VP
    	
 
    	
 
    	
 
    
	
Name   and Title of Authorized Representative
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
6400   S. Fiddler’s Green Circle
    	
 
    	
 
    	
 
    
	
Suite 2000
    	
 
    	
 
    	
 
    
	
Greenwood   Village, CO 80111
    	
 
    	
 
    	
 
    

 

6Exhibit 10.12

 

	

    	
MASTER   SERVICE AGREEMENT

 
    

4201 Southwest Freeway · Houston · TX 77027

 

	
Account   No
    	
Date
    	
x New Customer  

o New Service Addendum
    
	
Customer   Name (herein “Customer”)
    Q2   Software, Inc.
    	
 
    	
 
    
	
Address
    9430   Research Blvd., Suite 400
    	
 
    	
 
    
	
City,   State, Zip Code
    Austin,   TX. 78759
    	
 
    	
State   of Incorporation Delaware
    

 

This Agreement is made as of the date of the last execution below (the “Effective Date”). Cyrus Networks, LLC, dba CyrusOne, a Delaware corporation with its principal place of business at 4201 Southwest Freeway, Houston, Texas 77027 hereby provides this Master Service Agreement ( the “Master Service Agreement” or this “Agreement”)for the services as ordered pursuant to the Customer Order Form. These terms for delivery of services shall apply and will be considered a part of any “Customer Order Form” for all Services delivered by CyrusOne. These terms including any attachments, schedules, supplements, agendas or exhibits incorporated herein and are applicable to sales of Services located in, originating or terminating in the United States. All Services ordered hereunder are subject to credit approval and availability.

 

Section 1 – BILLING INFORMATION

 

	
Primary   Billing Address
    9430   Research Blvd., Suite 400
    	
City,   State, Zip Code
    Austin,   TX. 78759
    
	
Secondary   Billing Address
    9430   Research Blvd., Suite 400
    	
City,   State, Zip Code
    Austin,   TX. 78759
    
	
Primary   Billing Contact Name & Title
    Keely   Herod, Accountant
    	
Secondary   Billing Contact Name & Title
    Amy   Gorham, Accounting Manager
    
	
Phone   and Email
    512-685-2093   kherod@q2ebanking.com
    	
Phone   and Email
    512-685-2052,   agorham@q2ebanking.com
    

 

Section 2 – AUTHORIZATION

 

In accepting this offer, Customer is not relying on any representations or promises, whether written or oral, other than those contained in this Agreement. Any changes to this Agreement must be in writing and are subject to subsequent approval by an authorized representative of CyrusOne. Customer understands the information contained in this Master Service Agreement is confidential and subject to the requirements of law, agrees not to disclose the information to any third party. This Agreement is effective on last the date of execution by the authorized signatures of both parties. CyrusOne and Customer are hereinafter referred to collectively as the “Parties” or individually as a “Party”.

 

	
Customer Name
    	
Cyrus   Networks, LLC dba CyrusOne  
    
	
 
    	
 
    
	
Signature
    	
/s/  Adam Anderson
    	
 
    	
Signature
    	
/s/ Blake McLane
    
	
Print Name
    	
Adam Anderson
    	
Print Name
    	
Blake McLane
    
	
Title 
    	
Chief Technical   Officer
    	
Title
    	
Sr. Vice   President
    
	
Date
    	
1/7/2010
    	
Date
    	
1-11-2010
    
					

 

	
 
    	
Customer   Initials 
    	
 
    

 

1

 

MASTER SERVICE AGREEMENT

Confidential & Proprietary

 

Terms and Conditions

 

SECTION 1. DEFINITIONS

 

1.1                               Colocation Space: The location(s) within CyrusOne Facilities where Customer is permitted to colocate Customer Equipment pursuant to a Customer Order Form accepted by CyrusOne.

 

1.2                               Connection Notice: Written notice from CyrusOne that the Service ordered has been Installed by CyrusOne pursuant to the Customer Order Form, and has been tested and is functioning properly.

 

1.3                               Customer Equipment: Any equipment provided by the Customer which is located in the CyrusOne facilities which is being used for communications, Internet access, client server applications and general business computing.

 

1.4                               Customer Order Form: The approved Customer Order Form then in use by CyrusOne which contains customer’s request for Service and which is submitted with all required information, authorization and credit requirements and which has been executed by both Parties.

 

1.5                               Customer Premise: The location or locations occupied by Customer or its end users to which Service is delivered or for which Service is provided.

 

1.6                               Facilities: Property including personal property owned, leased or operated by CyrusOne, including buildings owned, leased or operated by CyrusOne and used to deliver Service and/or for the purpose of locating and colocating communications equipment.

 

1.7                               Service: Any Service offered by CyrusOne pursuant to a Customer Order Form, including but not limited to supplying Colocation Space, hosting, monitoring, outsourcing, equipment leasing or data communications and related products or services. For the purposes hereof, the services shall include those services identified in the Customer Order Form(s).

 

1.8                               Service Level Agreement (SLA): setting forth-additional terms and conditions or warranties, if any, pursuant to which the Facilities or any Services are provided.

 

1.9                               Service Commencement Date: The Service Commencement Date is the date that any Service is fully operational and Connection Notice has been delivered as stated on the applicable Customer Order Form. Where multiple Services are ordered pursuant to a Customer Order Form ,the calculation of the Service Term for which Customer shall be obligated to pay for the Services, shall begin on the last Service Commencement Date applicable to the Services.

 

1.10                        Service Term: The duration of time (measured starting on the Service Commencement Date) for which the Services are ordered and accepted by CyrusOne, as specified in the Customer Order Form. The Terms and Conditions of this Agreement shall continue to apply to any order for Services that have an extended term beyond the initial service order. The term set forth in each Customer Order Form shall automatically renew and remain in effect for the original contract duration unless either party gives sixty (60) day’s written notice to the other, sent via email, of its intent to cancel this Agreement or the Service Description Attachment.

 

1.11                        Service Description Attachment: The individual Service Description and pricing for Services contracted by Customer.

 

1.12                        Unavailable Service Periods: shall mean a total Interruption in Service unless such interruption of Service is caused by scheduled maintenance, Customer, Customer’s suppliers, Customer’s contractors, Customer’s telecommunications providers, Customer’s end users, or if Customer fails to utilize CyrusOne’s redundancy features.

 

SECTION 2. DELIVERY OF SERVICE

 

2.1                               Submission of Customer Order Forms. To order any Service, Customer shall submit a Customer Order Form requesting Service. The Customer Order Form and its backup detail must include a description of the Service requested, the non-recurring charges (NRC) and monthly recurring charges (MRC) for Service and any proposed Service Term .

 

2.2                               Acceptance by CyrusOne. Following execution of a Customer Order Form, CyrusOne will deliver a tentative installation date for the requested Service. CyrusOne will become obligated to deliver ordered Service only if CyrusOne has delivered a tentative installation date respecting the Service, Customer is in compliance with the terms for delivery of Service, and Customer has provided all required information and payments.

 

2.3                               Credit Approval and Deposits. Customer will provide CyrusOne with credit information as requested, and delivery of Service is subject to credit approval. CyrusOne may require Customer to make a deposit as a condition to CyrusOne’s acceptance of any Customer Order Form, or as a condition to CyrusOne’s continuation of Service. When Service is terminated, the amount of the deposit will be credited to Customer’s account and any remaining credit balance without Interest will be refunded within thirty (30) days.

 

	
 
    	
Customer   Initials 
    	

    

 

2

 

2.4                               CyrusOne Premises. Except as otherwise agreed, title to all Facilities shall remain with CyrusOne. CyrusOne will provide and maintain the Facilities in good working order subject to the terms of this Agreement. Customer shall not, and shall not permit others to, rearrange, disconnect, remove, and attempt to repair, or otherwise tamper with any Facilities or the Service, without the prior written consent of CyrusOne. Customer shall not take any action that causes the imposition of any lien or encumbrance on the Facilities. In no event will CyrusOne be liable to Customer or any other person for interruption of Service or for any other loss, cost or damage caused or related to improper use or maintenance of the Facilities by Customer or third parties provided access to the Facilities by Customer in violation of these terms, and Customer shall reimburse and indemnify CyrusOne for any damages incurred or claims as a direct result thereof.

 

2.5                               Customer-Provided Equipment. CyrusOne may install with prior mutual agreement certain Customer equipment. Upon installation of Service, however CyrusOne will not be responsible for the operation or maintenance of any Customer-provided equipment unless the Service has been specifically contracted for in accordance with the Customer Order Form and subject to the limitations contained herein. CyrusOne acknowledges and agrees Customer retains all right, title and interest in and to any Customer-Provided Equipment, and CyrusOne shall not place any liens or encumbrances on the Customer-Provided Equipment, provided that Customer is not in default of Section 3 or Section 4 of this Agreement.

 

SECTION 3. BILLING AND PAYMENT

 

Commencement of Billing. Upon installation and testing of the Service ordered in any Customer Order Form, CyrusOne will deliver to Customer a Connection Notice and billing shall commence. Customer will have five (5) days to provide written notification to CyrusOne that applicable Service items are not installed and functioning in accordance with the Customer Order Form. Following CyrusOne’s acknowledgment of such notification, CyrusOne will work with Customer to resolve the outstanding issues with specific items on the Customer Order Form and provide a second Connection Notice for those items and billing shall commence.

 

a)             Billing shall commence on the applicable Service Commencement Date regardless of whether Customer has procured services from third-party vendors (i.e., equipment suppliers, software developers, telecommunication carriers, etc.) required to operate the Service, and regardless of whether Customer is otherwise prepared to accept delivery of ordered Service.

 

b)             In the event that Customer is delayed in installing the Service more than sixty (60) days after the date of execution of the Customer Order Form for reasons other than failure of CyrusOne to meet its obligations under this Agreement for Force Majeure, Billing will commence on the first full month immediately following the end of the 60 day period.

 

3.1                               Pre-Payment. Prior to installation Customer will be required to pay the sum of the total Non-Recurring Charges (NRC) and one full month of Monthly Recurring Charges (MRC). This amount will be based upon the Customer Order Form.

 

a)             First Invoice. The first invoice will be sent to the Customer prior to the fifth (5th) day of the first month following the Service Commencement date. This invoice will be from the first date of the first of the month of Service Commencement and the following month’s Monthly Recurring Charges (MRC). The Pre-Payment will also be applied at this time.

 

3.2                               Invoicing. CyrusOne bills for one full month of Monthly Recurring Charges (MRC) in advance. Each MRC covers Service delivered from the first of the month through end of the month and is payable no later than one (1) month in advance of delivered Service. CyrusOne will bill usage based Services in arrears or as otherwise provided by the Service Description Attachment. Billing for partial months of Service are prorated based on a calendar month unless otherwise agreed.

 

a)             Payment of Invoices. All invoices are due upon receipt and become past due thirty (30) days from the invoice date. Past due amounts bear interest at a rate of 1.5% per month (prorated on a daily basis) or the highest rate allowed by law, whichever is less.

 

b)             Changes in Customer Information. Customer is responsible for communicating in writing any and all changes to billing information including, but not limited to, billing address, pay key, purchase order number or attention to information.

 

3.3                               Taxes and Fees. Except for taxes based on CyrusOne’s net income and ad valorem, personal and real property taxes imposed on CyrusOne’s and not Customer’s owned or leased property, Customer is responsible for payment of all property, sales, use, gross receipts, excise, access, bypass, franchise or other local, state and federal taxes, however designated, imposed on or based upon the provision of the Service.

 

3.4                               Regulatory and Legal Changes. Customer shall comply with all federal, state and local statutes and regulations regarding or related to Customer and/or CyrusOne’s conduct of activities in connection with the provision of Services hereunder. In the event of any change in applicable law, regulation, decision, rule, or order that materially increases the costs or other terms of delivery of Service, CyrusOne and Customer will negotiate regarding the rates to be charged to Customer to reflect such increase in cost, and in the event that the parties are unable to reach agreement respecting new rates within 30 days after CyrusOne’s delivery of written notice requesting renegotiation, then a) CyrusOne may pass any such increased costs through to Customer, and b) Customer may terminate the affected Customer Order Form without termination liability by delivering written notice of termination no later than sixty(60) days after the effective date of the rate increase.

 

3.5                               Disputed Invoices. If Customer reasonably disputes any portion of a CyrusOne invoice, Customer must pay the undisputed portion of the invoice in accordance with the terms and conditions of this Agreement or the Customer Order Form and submit a written claim to CyrusOne for the disputed amount. All claims must be submitted to CyrusOne within sixty (60) days from

 

	
 
    	
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the invoice date for those Services. Customer waives the right to dispute any charges not disputed within the time frame set forth above. In the event that the dispute is resolved against Customer in accordance with the procedures hereunder, Customer shall pay such amounts plus interest at the rate referenced above.

 

3.6                               Termination Charges. In the event that, prior to the end of the Service Term, Customer terminates Service other than pursuant to Sections 3.4 or 4.3 or in the event that the delivery of Service is terminated due to a failure of Customer to dispute any portion of a CyrusOne invoice within the time frame set forth above, Customer shall pay termination charges. Such termination charges shall be computed in accordance with this Agreement and the Customer Order Form Termination charges shall equal 100% of the MRC that would have been incurred for all of the Services for the remainder of the contract term.

 

3.7                               Fraudulent Use of Services. Customer is responsible for all charges attributable to Customer incurred respecting Service, even if incurred as the result of fraudulent or unauthorized use of Service; unless the charge was related to CyrusOne’s negligence or willful misconduct.

 

3.8                               Service Term. Except as otherwise set forth herein on the Customer Order Form or other written agreement, CyrusOne shall deliver the Service for the entire duration of the Service Term, and Customer shall pay all charges for delivery thereof through the end of the Service Term plus any Termination Charges as defined herein.

 

3.9                               Changes in Power Costs. Customer acknowledges that CyrusOne receives its power feed from a third party power utility company, with rates that are subject to change without notice. CyrusOne reserves the right to pass on any such increases in power costs to the Customer which if incurred, shall be set forth in a written notice to Customer, prior to or in connection with an invoice for the Services.

 

SECTION 4. DISCONTINUANCE OF SERVICE

 

4.1            Discontinuance of Service by CyrusOne will occur without liability to CyrusOne when one or more of the following conditions have been met:

 

a)             Non-payment of invoice amounts, not including disputed items (see above reference), exceeding sixty (60) days past Invoice date. A service interruption notice will be sent to the Customer via email when an invoice becomes forty-five (45) days past invoice date;

 

b)             If Customer violates any law, rule, regulation or policy of any governmental authority related to Services or; If Customer makes a material misrepresentation to CyrusOne in connection with the ordering or delivery of Service if Customer engages in any fraudulent use of Service; or if a court or other governmental authority prohibits CyrusOne from furnishing Service under this Agreement or Customer Order Form;

 

c)              If Customer fails to cure its breach (other than a payment breach, which is addressed in a) above) of any of these terms or conditions in this Agreement, in any Customer Order Form or Acceptable Use Policy within ten (10) days after written notice thereof provided by CyrusOne;

 

d)             If Customer files bankruptcy or fails to discharge an involuntary petition within sixty (60) days.

 

4.2                               Effect of Discontinuance. Upon CyrusOne’s discontinuance of Service to Customer, CyrusOne may, in addition to all other remedies that may be available to CyrusOne at law or in equity, assess and collect from Customer all applicable termination charges due hereunder or under the Customer Order Form.

 

4.3                               Discontinuance of Service by Customer. Customer may terminate and discontinue affected Service prior to the end of the Service Term without penalty by notifying CyrusOne within five (5) days following the end of a calendar month in the event any of the following occurs:

 

a)             Customer experiences more than three (3 ) Unavailable Service Periods during the calendar month; or Customer experiences more than eight (8) consecutive hours of Unavailable Service due to any single event, twice during any calendar month. Such termination will be effective thirty (30) days after receipt of such notice by CyrusOne.

 

b)             For the purposes of the foregoing, the duration of any interruption will commence when Customer reports an outage to CyrusOne and will end when the Service is restored.

 

SECTION 5. LIABILITIES

 

5.1                               Service Interruptions and Delivery. CyrusOne provides specific remedies regarding installation of Services and availability of Services as set forth in the service level agreement (SLA). In the event of a failure to deliver the Services in accordance with any Service Level Agreement, Customer’s remedies are contained in the SLA and Section 4.3 above. Any and all damages shall be limited to Service Level Credits as set forth in the applicable SLA.

 

5.2                               No Special Consequential, Punitive or Other Damages. Notwithstanding any other provision hereof, neither party shall be liable for any indirect, incidental, special, consequential, exemplary or punitive damages (including but not limited to damages for lost profits, lost revenues or the cost of purchasing replacement services) arising out of the performance or failure to perform under this Agreement, any Customer Order Form or SLA.

 

	
 
    	
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5.3                               NO WARRANTY.    CYRUSONE PROVIDES THE COLOCATION SPACE AND THE SERVICES AS IS.   EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE SLA, IN CONNECTION WITH THE SERVICES, CYRUSONE (A) MAKES NO WARRANTIES WHETHER EXPRESS OR IMPLIED, AND (B) DISCLAIMS ANY WARRANTY OF TITLE, MERCHANTABILITY, NONINFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE PRACTICE. IN THE EVENT THAT CYRUSONE PROVIDES CUSTOMER WITH PRODUCTS IN CONJUNCTION WITH THE SERVICES, FOR EXAMPLE THIRD PARTY SOFTWARE PRODUCTS OR EQUIPMENT, CYRUSONE ALSO PROVIDES SUCH PRODUCTS AS IS WITHOUT WARRANTY OF ANY KIND, WHETHER EXPRESS OR IMPLIED. CYRUSONE SHALL HAVE NO LIABILITY FOR FAILURE OF ANY PRODUCT OR SERVICE IT PROVIDES. CYRUSONE DOES NOT MONITOR OR EXERCISE CONTROL OVER THE CONTENT OF THE INFORMATION RESIDING ON CUSTOMER’S EQUIPMENT OR TRANSMITTED THROUGH ITS FACILITIES. USE OF ANY INFORMATION OBTAINED VIA CYRUSONE’S SERVICES IS AT CUSTOMER’S OWN RISK. CYRUSONE SPECIFICALLY DENIES ANY RESPONSIBILITY FOR THE ACCURACY OR QUALITY OF INFORMATION OBTAINED THROUGH ITS SERVICES.

 

SECTION 6. CONFIDENTIAL INFORMATION, PUBLICITY AND DATA PROTECTION

 

6.1                               Confidentiality. The existence and terms of this Agreement shall be held confidential by each Party, as shall each Party’s confidential or proprietary information (“Confidential Information”). CyrusOne’s performance, discounts, and prices under this Agreement or other correspondence between the parties, the quality of CyrusOne Services, and any data provided by CyrusOne to Customer regarding performance of CyrusOne’s Services shall be deemed CyrusOne’s Confidential Information. Each Party hereto may sign a confidentiality agreement, which shall remain in effect for the term hereof. If there is any conflict pertaining to issues of confidentiality, such confidentiality agreement shall prevail.

 

6.2                               Publicity. Neither Party shall have the right to use the other Party’s or its affiliates’ trademarks, service marks or trade names or to otherwise refer to the other Party in any marketing, promotional or advertising materials or activities. Either Party may issue a publication or press release relating to the creation and/or operation of a business relationship between CyrusOne and Customer, provided that such press release or publication is approved in advance by both parties, which approval shall not be unreasonably withheld.

 

6.3                               Data Protection. Customer represents and warrants that it has obtained informed and express consent to the processing of Data as set forth herein from its employees, customers, and any users of the Services.

 

6.4                               Disclosure of Customer Information. CyrusOne reserves the right to provide any customer or potential customer bound by a nondisclosure agreement access to a list of CyrusOne’s customers and a general description of Service purchased by such customers. Customer consents to such disclosure; including the listing of Customer’s name and Service purchased by Customer (financial terms relating to the purchase shall not be disclosed).

 

SECTION 7. COLOCATION SPACE AND SERVICES

 

7.1                               Grant of License. Customer is granted the right to occupy the Colocation Space and/or Facilities Identified in a Service Description or other mutual agreement. Customer shall be permitted reasonable access to the Colocation Space and/or Facilities subject to any and all rules, regulations and access requirements imposed by CyrusOne governing such access. Customer may submit multiple Customer Order Forms requesting use of Colocation Space and/or Facilities in multiple CyrusOne Facilities, each of which shall be governed by the terms and conditions contained herein. CyrusOne retains the right to access any and all of its Colocation Space and/or Facilities for any legitimate business purpose including compliance with the terms and conditions contained herein. CyrusOne retains the right to restrict Customer’s access to the facility if there is non-payment of invoice amounts, not including disputed items (see above reference), exceeding forty five (45) days past invoice date.

 

7.2                               Use of Colocation Space. Customer shall be permitted to use the Colocation Space only for placement and maintenance of data processing and communications equipment. Customer hereby agrees, within six (6) months of the Service Commencement Date for Colocation Space, to use the Colocation Space for placement and maintenance of data processing or communications equipment. CyrusOne may, upon 90 days’ written notice, reclaim any portion of Colocation Space not being used within such twelve (12) month period. Customer shall surrender such recaptured Colocation Space and the monthly recurring charges shall be appropriately reduced. No refunds shall be made to Customer regarding recaptured Colocation Space.

 

a)             Customer shall not provide or make available to any third Party, space within the Colocation Space without CyrusOne’s prior written consent. If Customer should provide, or make available to any third party, space within the Colocation Space without obtaining the written consent of CyrusOne, Customer shall be in breach of this Agreement and CyrusOne may pursue any legal or equitable remedy.

 

7.3                               CyrusOne Maintenance. CyrusOne shall perform janitorial services, environmental systems maintenance, power plant maintenance and other actions as are reasonably required to maintain the Facilities and Colocation Space in a condition which is suitable for the placement of data processing and communications equipment. Customer shall maintain the Colocation Space in an orderly and safe condition, and shall return the Colocation Space to CyrusOne at the conclusion of the Service Term set forth in the Customer Order Form in the same condition (reasonable wear and tear excepted) as when such Colocation Space was delivered to Customer.   EXCEPT AS EXPRESSLY STATED HEREIN OR IN ANY CUSTOMER

 

	
 
    	
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ORDER FORM, THE SPACE SHALL BE DELIVERED AND ACCEPTED “AS IS” BY CUSTOMER, AND NO REPRESENTATION HAS BEEN MADE BY CYRUSONE AS TO THE FITNESS OF THE SPACE FOR CUSTOMER’S INTENDED PURPOSE.

 

7.4                               Prohibited Activities. Customer shall abide by any posted or otherwise communicated rules relating to use of, access to, or security measures respecting the Facilities and Colocation Space. Customer’s use of the Colocation Space will be immediately terminated in the event Customer or any of its agents or employees are in CyrusOne’s Facilities with any firearms, illegal drugs, alcohol or are engaging in any criminal activity, eavesdropping or foreign Intelligence. Persons found engaging in such activity or in possession of the aforementioned prohibited items will be immediately escorted from the Facilities. In the event that unauthorized parties gain access to the Colocation Space through access cards, keys or other access devices provided to Customer, Customer is responsible for the cost of replacing any security devices lost or stolen after delivery thereof to Customer. CyrusOne will use commercially reasonable efforts to notify Customer of such violation described in this section 7.4 and will provide Customer with ten (10) days to cure such violation, provided that CyrusOne will not be obligated to provide a cure period if such violations will negatively impact CyrusOne’s customers or contravene any law, rule, regulation or policy of any governmental authority

 

7.5                               Termination of Use. CyrusOne shall have the right to terminate Customer’s use of the Colocation Space or the Services delivered therein in the event that:

 

a)             Customer is in default of any material term and condition herein;

b)             Customer makes any material alternations to the Colocation Space without first obtaining the written consent of CyrusOne; or

c)              Customer allows personnel or contractors to enter the Colocation Space who have not been approved by CyrusOne in advance. With respect to items (c) and (d), unless in CyrusOne’s opinion, Customer’s actions interfere or have the potential to interfere with other CyrusOne customers, CyrusOne shall provide Customer a written notice and a ten (10) day opportunity to cure before terminating Customer’s rights to the Colocation Space.

 

7.6                               Sublicenses. Customer may sublicense the use of Facilities and Colocation Space under the following conditions:

 

a)             All proposed sublicenses must be approved, in writing, by CyrusOne in CyrusOne’s sole discretion;

b)             Customer hereby guarantees that all such parties shall abide by the terms of this Agreement;

c)              Customer shall indemnify, defend and hold CyrusOne harmless from all claims brought against CyrusOne arising from any act or omission of any sublicense or its agents;

d)             Such Party shall be considered Customer’s agent and all of its acts and omissions shall be attributable to Customer for the purposes of these terms.

 

7.7                               Changes in Configuration. CyrusOne reserves the right to change the location or configuration of the Facilities and Colocation Space so long as any new location is in Austin, Texas, provided, however, that CyrusOne shall not arbitrarily require such changes. CyrusOne and Customer shall work in good faith to minimize any disruption in Customer’s Services that may be caused by such changes in location or configuration of the Colocation Space. Any change of location or configuration shall be at CyrusOne’s sole cost and expense.

 

7.8                               Insurance. Prior to occupancy and during the Service Term, Customer shall procure and maintain the following minimum insurance coverage: (a) Workers’ Compensation in compliance with all applicable statutes of appropriate jurisdiction (including Employer’s Liability with limits of $500,000 each accident); (b) Commercial General Liability with combined single limits of $1,000,000 each occurrence; and (c) “All Risk” Property insurance covering all of Customer’s personal property located in the Colocation Space. Customer’s Commercial General Liability policy shall be endorsed to show CyrusOne (and any underlying property owner), as requested by CyrusOne as an additional insured. All policies shall provide that Customer’s insurers waive all rights of subrogation against CyrusOne. Customer shall furnish CyrusOne with certificates of Insurance demonstrating that Customer has obtained the required insurance coverage prior to use of the Facilities and Colocation Space. Such certificates shall contain a statement that the insurance coverage shall not be materially changed or cancelled without at least thirty (30) days prior written notice to CyrusOne. Customer shall require any contractor entering the Colocation Space on its behalf to procure and maintain the same types, amounts and coverage extensions as required for Customer above.

 

7.9       Customer Responsibilities.

 

a)             Performance of Customer Equipment. To ensure the Customer Equipment does not pose a physical threat to CyrusOne, its facilities, employees, customer and partners, Customer shall ensure that all Customer Equipment it brings into the Facilities will perform according to published technical specifications for all such equipment and complies with all specifications, policies, procedures, and security requirements provided by CyrusOne;

b)             Lawful Use. Customer acknowledges that CyrusOne is not responsible for the manner in which the Service is used by Customer or any other person or entity Customer permits to access such Service or the equipment used to deliver such Service (a “User”). Customer further agrees that it will not, and will use commercially reasonable efforts to ensure that any User will not violate CyrusOne’s Acceptable Use Policy which may be read at http://www.cyrusone.com/aup:

c)              Security. Customer shall comply with all of CyrusOne’s access procedures and security requirements for the Premises, shall use commercially reasonable efforts to ensure that all Designated Persons named on the Access List comply with such procedures, and shall monitor its Designated Persons to ensure their compliance. To the extent deemed reasonably necessary by CyrusOne in its good faith business judgment, CyrusOne may implement additional access and

 

	
 
    	
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security procedures.  Customer agrees to repair at its own cost any damage to the Facility caused by its employees, agents, or Designated Persons.

 

SECTION 8. GENERAL TERMS

 

8.1                               Service Level Agreement. The SLA for the Services as described in the Customer Order Form apply only to Customers agreeing to a Term Commitment of at least one (1) year. CyrusOne reserves the right to amend the SLA from time to time effective upon notice to Customer; provided, that in the event of any amendment resulting in a material reduction of the SLA’s service levels or credits, Customer may terminate this Agreement without penalty by providing CyrusOne written notice of termination during thesixty(60) days following notice of such amendment. The SLA and Section 4.3 above set forth Customer’s remedies for any claim relating to the Services, including any failure to meet any guarantee set forth in the SLA. CyrusOne’s records and data shall be the basis for all SLA calculations and determinations. Notwithstanding anything to the contrary, the maximum amount of credit in any calendar month under the SLA shall not exceed twenty five percent (25%) of the MRC, which, absent the credit, would have been charged for CyrusOne Service that month.

 

8.2                               Force Majeure. Neither Party shall be liable, nor shall any credit allowance or other remedy be extended, for any failure of performance or equipment due to causes beyond such Party’s reasonable control including but not limited to acts of God, fire, acts or omissions of suppliers, flood or other catastrophe, any law, order or regulations or request of any governmental entity, national emergency, terrorist activities, insurrections, riots, work stoppages or disruptive labor activities, global or natural disasters or like events. In the event CyrusOne is unable to deliver Service for fourteen (14) consecutive days as a result of force majeure, Customer shall not be obligated to pay CyrusOne for the affected Service for so long as CyrusOne is unable to deliver.

 

8.3                               Assignment and Resale. Customer may not assign its rights and obligations under a Customer Order Form without the express prior written consent of CyrusOne. CyrusOne will not unreasonably withhold its consent to a proposed assignment provided that these terms shall apply to any permitted transferees or assignees that shall in writing fully accept all the terms and conditions contained herein. Customer shall remain liable for the payment of all charges due under each Customer Order Form. Customer may resell the Service to third party “end users”, provided that Customer agrees to indemnify, defend and hold CyrusOne harmless from claims made against CyrusOne by such end users and such end users agree in writing to be bound by the terms of this Agreement.

 

8.4                               Notices. Notices, other than those required by Section 1.1, hereunder shall be deemed properly given when delivered. If delivered in person, or when sent via facsimile, overnight courier, electronic mail or when deposited with the U.S. Postal Service, (a) with respect to Customer, the address listed on any Customer Order Form, or (b) with respect to CyrusOne, to: 4201 Southwest Freeway, Houston, Texas 77027. Customer shall notify CyrusOne of any changes to its address listed on any Customer Order Form.

 

8.5                               Indemnification. Each Party shall indemnify the other from any claims by third parties and expenses (including reasonable legal fees and court costs) respecting damage to tangible property, personal Injury or death caused by such Party’s negligence or willful misconduct.

 

8.6                               Application of Tariffs. CyrusOne may elect or be required to file with the appropriate regulatory agency tariffs respecting the delivery of certain Service. In the event that such tariffs are filed respecting Service ordered by Customer, then (to the extent such provisions are not inconsistent with the terms of a Customer Order Form) the terms set forth in the applicable tariff shall govern CyrusOne’s delivery of, and Customer’s consumption or use of, such Service.

 

8.7                               No Waiver. No failure by either Party to enforce any rights hereunder shall constitute a waiver of such right(s).

 

8.8                               Acceptable Use Policy. Customer’s use of Service shall at all times comply with CyrusOne’s then-current Acceptable Use Policy, as amended by CyrusOne from time to time and which are available through CyrusOne’s web site at www.cyrusone.com/aup.

 

8.9                               Control. CyrusOne exercises no control over and accepts no responsibility for the content of the information passing through or contained within CyrusOne’s Facilities. Customers shall indemnity and hold CyrusOne harmless for any claims, losses or damages arising out of or related to Customer’s content.

 

8.10                        Contractors. Customer acknowledges that certain installation, technical support, and consulting services may be provided by an unaffiliated third party contractor (“Contractor”) to CyrusOne. Customer hereby authorizes CyrusOne to provide Contractor all Customer location, equipment and contact information necessary to provide such Services. All Contractors who have access to that information are required to sign a CyrusOne Confidentiality Agreement.

 

8.11                        By execution of this Agreement, the parties acknowledge that they have read and understood each provision, term and obligation contained in this Agreement. This Agreement, although drawn by one Party, shall be construed fairly and reasonably and not more strictly against the drafting Party than the non-drafting Party.

 

	
 
    	
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8.12                        Parol Evidence, Status of Agreement and Prior Understandings. This Agreement and the attached and incorporated exhibits, if any, contain the entire Agreement of the parties and there are no representations, inducements, promises, agreements, arrangements or undertakings, oral or written, between the parties to this Agreement other than those set forth in this Agreement and duly executed in writing.

 

8.13                        State Law and Venue Determination. This Agreement shall be subject to and governed under the laws of the State of Texas. Any and all obligations and payments are due and performable and payable in Harris County, Texas. The parties agree that venue for purposes of any and all lawsuits, causes of action, arbitrations, or other disputes shall be in Harris County, Texas.

 

8.14                        Corporate Authority. If any Party to this Agreement is a legal entity, including, but not limited to, an association, corporation, joint venture, limited partnership, partnership, or trust, that Party represents to the other that this Agreement and the transactions contemplated in this Agreement and the execution and delivery hereof have been duly authorized by all necessary corporate, partnership, or trust proceedings and actions including, but not limited to, actions on the part of the directors, officers and agents of the entity.

 

8.15                        Dispute or Contest: Arbitration. In the unlikely event that a dispute occurs applicable to the operation, construction, interpretation, or enforcement of this Agreement, the Parties may agree to submit the dispute to a commercial arbitrator so that the matter may be arbitrated in lieu of resolving the dispute in a court of law or equity. If the Parties agree to arbitration, then the Parties shall choose an arbitrator from the American Arbitration Association and utilize their procedures for complex commercial arbitrations.

 

8.16                        Independent Contractor Relationship; No Partnering Intended. It is agreed and understood that any work requested by the parties to this agreement shall be performed under the terms of the Agreement and that all parties are considered independent contractors.

 

8.17                        Severability. If any provision of this Agreement is for any reason held to violate any applicable law, governmental rule or regulation, or if the provision is held to be unenforceable or unconscionable, then the invalidity of that specific provision shall not be held to invalidate the remaining provisions of this Agreement. All other provisions and the entirety of this Agreement shall remain in full force and effect unless the removal of the invalid provision destroys the legitimate purposes of this Agreement, in which event this Agreement shall be canceled and terminated.

 

8.18                        Survival. The covenants and agreements contained in this Agreement with respect to payment of amounts due, confidentiality, liability and indemnification shall survive termination of this Agreement, regardless of the reason for termination. The rights and obligations under this Agreement shall survive any merger or sale of either Party and shall be binding upon the successors and permitted assigns of each Party.

 

8.19                        Conflict. In the event of any conflict between the terms of the Master Service Agreement, a Customer Order Form or a SLA, it is understood and agreed that the Customer Order Form will control.

 

8.20                        During the term of this Agreement, the Customer or any of its affiliates will not, directly or indirectly, for their own account or for or on behalf of any other person or entity, whether as an officer, director, employee, partner, principal, joint venture, consultant, investor, shareholder, independent contractor or otherwise, hire or employ, or attempt to hire or employ, in any fashion (whether as an employee, independent contractor or otherwise), any employee or independent contractor of CyrusOne, or solicit or induce, or attempt to solicit or induce or take away, any of CyrusOne’s employees, consultants, clients, customers, vendors, suppliers, or independent contractors to terminate their relationship with CyrusOne or the other Party.

 

	
 
    	
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