SERVICES AGREEMENT
THIS AGREEMENT GOVERNS YOUR USE OF OUR SERVICES.
ACCESSING OUR SOFTWARE OR BY EXECUTING AN ORDER FORM THAT REFERENCES THIS AGREEMENT, YOU AGREE TO THE TERMS OF THIS AGREEMENT. IF YOU ARE ENTERING INTO THIS AGREEMENT ON BEHALF OF A COMPANY OR OTHER LEGAL ENTITY, YOU REPRESENT THAT YOU HAVE THE AUTHORITY TO BIND SUCH ENTITY AND ITS AFFILIATES TO THESE TERMS AND CONDITIONS, IN WHICH CASE THE TERMS “YOU” OR “YOUR” SHALL REFER TO SUCH ENTITY AND ITS AFFILIATES. IF YOU DO NOT HAVE SUCH AUTHORITY, OR IF YOU DO NOT AGREE WITH THESE TERMS AND CONDITIONS, YOU MUST NOT ACCEPT THIS AGREEMENT AND MAY NOT USE THE SERVICES.
WHEREAS, Customer desires Enservio to perform services pursuant to a claim submission to Enservio and/or as identified on an Order Schedule (the “Services”) for Customer’s internal business purposes (the “Purpose”); and
WHEREAS, Enservio is willing to deliver or otherwise make available the Services solely for the Purpose;
NOW THEREFORE, in consideration of the foregoing premises and the mutual undertakings of the parties set forth herein, and intending to be legally bound hereby, the parties do hereby agree as follows:
1. Order Schedule
Pursuant to a claim submission and/or as identified in an Order Schedule dated as of the Effective Date (the “Initial Order Schedule”), Customer and Enservio have agreed on the Services that Customer is purchasing from Enservio on the terms and conditions set forth in this Agreement and financial and other terms. From time to time, Customer and Enservio may enter into additional Order Schedules under which Services of Enservio are made available to Customer (each, a “Subsequent Order Schedule” and, collectively with the Initial Order Schedule, the “Order Schedules”). This Agreement sets forth the terms and conditions on which Enservio will make the Services identified Pursuant to a claim submission and/or as identified in an Order Schedule available to Customer. The terms and conditions of this Agreement are incorporated by reference into the applicable Order Schedule, so that each Order Schedule together with the terms and conditions of this Agreement form a separate legal agreement applicable to the Services identified in the applicable Order Schedule. In the event of a conflict between any term or condition of this Agreement and any term or condition of the applicable Order Schedule, the applicable term or condition of this Agreement shall govern unless the applicable Order Schedule expressly states that it is the intent of the parties to amend this Agreement. To the extent Customer requests a Service that is not included on an Order Schedule, then the Enservio standard list price and service/product description shall apply.
2. Provision of Services
Enservio shall deliver or otherwise make available the Services purchased by Customer pursuant to a claim submission and/or as set forth in the applicable Order Schedule into which the terms and condition of this Agreement are incorporated. Services shall be performed as requested by a Customer claims adjuster or other authorized representative (either, an “Adjuster”) via telephone or email (a “Services Request”). Enservio will promptly confirm its receipt of a Services Request and will work with the requesting Adjuster to coordinate performance of the Services. Nothing contained in this Agreement shall be construed as creating any agency, partnership or other form of joint enterprise between the parties.
3. Ownership
As between the parties, sole and exclusive title to any data, information or material provided by Customer to Enservio in connection with Enservio’s performance of the Services, including personally identifiable information of policyholders provided to Enservio by Customer (the “Customer Data”) is and remains with Customer. Customer Data does not include personally identifiable data which has been anonymized, aggregated and stored on a statistical basis or statistical data derived, in combination with data developed or obtained by Enservio prior to or in the course of performing the Services exclusive of Customer Data, (the “Enservio Data”), from Customer Data. No right, title or interest to the same is transferred to Enservio hereunder; provided, however, that Enservio shall be entitled to use the Customer Data for the sole purpose of providing the Services. Customer Data shall be subject to the provisions of Section 8 (Confidential Information). Customer hereby represents, and warrants and covenants that it shall in no event provide personal health care information or personal financial information, including credit card information, to Enservio.
4. Term and Termination
4.1 Term. The initial term of the Agreement shall commence as of the Effective Date and shall continue for three (3) years (the “Initial Term”). Thereafter, the term of the Agreement will automatically renew for an initial renewal term of one years (the Initial Term and any renewal term, collectively, the “Term”) unless either party provides written notice to the other of its intent not to renew for another Term at least sixty (60) days prior to the expiration of the then-current Term. Notwithstanding the foregoing, either party may terminate the Agreement (a) upon 30 days prior written notice in the event of a material breach by the other party if such breach is not cured within such 30 day notice period, or (b) immediately upon written notice in the event that the other party ceases to conduct business in the ordinary course without appointing a successor, experiences insolvency, enters bankruptcy proceedings voluntarily or involuntarily (where the petition is not dismissed within 60 days), is put into receivership, has a trustee appointed to manage its assets, or experiences a similar event of financial disorganization.
4.2 Effect of Termination. Upon the termination of the Agreement for any reason,
(a) Customer will promptly pay Enservio (i) for all Services rendered through the effective date of termination and, unless termination was due to an uncured material breach of the Agreement by Enservio, (ii) the balance of any minimum volume owed with respect to the calendar quarter in within which the termination occurred such minimum volume to be pro-rated based on the effective date of termination, and (iii) all reasonable costs incurred by Enservio in connection with the orderly cessation of the provision of the Services; and
(b) each party shall return or destroy the other party’s Confidential Information as set forth in Section 8.2 below.
4.3 Survival. The following shall survive the termination or expiration of the Agreement and shall continue in full force and effect: 3 (Ownership), 4.2 (Effects of Termination), 4.3 (Survival), 6 (Warranty), 7 (Limitation of Remedies and Damages), and 8.1 (Confidentiality); (b) those provisions of Section 8 (General) relating to contract construction; (c) Customer’s payment obligations under Section 4.2 and Section 5; and (d) rights and obligations of the parties incurred prior to the effective date of termination or expiration.
5. Fees and Payment Terms
5.1 Minimum Fee Volumes. Customer shall pay Enservio fees for the Services pursuant to the fee schedule set forth in the Order Schedule, if applicable, and subject to the annual minimum fee volume commitment set forth therein. Such minimum volume shall be measured annually from the effective date of the contract. Specific minimum purchase volume levels may apply to each category of Services, or a minimum purchase volume level may apply to multiple or all Service levels in the aggregate, in each case as defined in the Order Schedule. Purchase volumes in excess of the minimum purchase volume commitment for any year shall not be applied to the minimum purchase volume commitment for any previous or subsequent year. In the event that Customer fails to meet the minimum volume level for any year for any one or more Service categories, Enservio shall invoice Customer and Customer shall promptly pay Enservio for the differential. Enservio reserves the right in its sole discretion, to reduce or eliminate any Services discount afforded to Customer under the Order Schedule if Customer fails to meet the minimum purchase volume level for two consecutive calendar quarters.
5.2 Invoice and Payment. Enservio will invoice on a monthly basis. All fees (as provided in the Order Schedule, if applicable) and reimbursement of expenses are due and payable within thirty (30) days from the date of Enservio’s applicable invoice and shall be paid in United States currency. The fees identified on the attached Order Schedule, if applicable, are exclusive of taxes or duties. Customer agrees to pay (i) for actual and reasonable travel and travel-related expenses incurred by Enservio with respect to the Services unless otherwise set forth in the Order Schedule (ii) for reimbursement of reasonable out-of-pocket expenses incurred by Enservio in connection with providing services and (iii) any and all taxes and duties that may be imposed by any taxing authority in connection with the Agreement, excluding taxes based on Enservio’s income or franchise taxes. Past due amounts are subject to a late charge equal to the lesser of 1-1/2% per month or the maximum amount allowed by law.
5.3 Changes to Fees. The fee schedule set forth in the Order Schedule shall be held for the the first year of the Initial Term. Thereafter, Enservio may modify its fees (i) for each subsequent 12 month period provided that any fee shall not be increased by more than five percent (5%) over the fee charged during the then current Term (or calendar year with respect to the first renewal Term) for the same Services or services (ii) in the event of an acquisition, merger, restructuring, reorganization or combination by operation of law or otherwise to the extent such event increases the Homeowners (HMP) Direct Premium Written (DPW) of Customer by more than 5%. Enservio shall provide Customer with at least thirty (30) days prior written notice of any fee adjustment.
6. Warranty
6.1 Services Warranty. Enservio represents and warrants that it will perform the Services (a) in a professional and workmanlike manner using trained employees qualified to perform such services, (b) in accordance with applicable professional and industry standards, and (c) in accordance with the Agreement and applicable laws and regulations. In the event that Customer notifies Enservio that Services have been provided in breach of the foregoing warranty (as can be reasonably demonstrated), Enservio shall either (i) re-perform the Services at no additional cost to Customer, or (ii) promptly refund to Customer any payments made for the defective or deficient Services. The foregoing shall be Customer’s sole and exclusive remedy and Enservio’s sole and exclusive liability for a breach of the foregoing Services warranty. Any Services warranty claim shall be made within thirty (30) days following completion of the Services giving rise to the claim.
6.2 Warranty for Deliverables. For Deliverables related to the Services, Enservio warrants for a period of thirty (30) days from the delivery of the Deliverable to Customer that the Deliverable will substantially conform to the applicable description under the applicable Order Schedule. In the event the Deliverable fails to substantially conform to such description, then Enservio, may at its option, repair or replace the non-conforming Deliverable or refund to Customer the amount paid for the non-conforming Deliverable. “Deliverable” means the specified deliverable related to a Service as set forth under the applicable Order Schedule.
SUBJECT TO THE FOREGOING WARRANTIES, CUSTOMER UNDERSTANDS AND ACKNOWLEDGES THAT (A) ANY SERVICES WHICH MAY BE PROVIDED BY ENSERVIO IN CONNECTION THEREWITH ARE PROVIDED “AS IS” WITHOUT WARRANTY OR REPRESENTATION OF ANY KIND, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE; AND (B) ALL SUCH WARRANTIES ARE EXPRESSLY DISCLAIMED BY ENSERVIO AND ITS LICENSORS, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES IMPLIED BY USAGE OF TRADE OR COURSE OF DEALING.
7. Limitation of Remedies and Damages
7.1 IN NO EVENT SHALL ENSERVIO OR ITS LICENSORS BE LIABLE FOR DAMAGES OF ANY KIND, WHETHER SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE, CONSEQUENTIAL OR OTHERWISE, CONCEIVED UNDER ANY THEORY OF LAW, EQUITY, CONTRACT, OR TORT, IN EACH CASE WHICH ARISE UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE PERFORMANCE OF SERVICES, INCLUDING LOSS OF OPPORTUNITY, LOSS OF USE, LOSS OF DATA, BUSINESS INTERRUPTION, OR DAMAGES OF ANY KIND TO A THIRD PARTY, EVEN IF ENSERVIO WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. WITHOUT LIMITING THE FOREGOING, IN NO EVENT SHALL ENSERVIO’S LIABILITY OF ANY KIND ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT EXCEED THE AMOUNT PAID TO ENSERVIO WITH RESPECT TO THE SERVICES GIVING RISE TO THE CLAIM.
7.2 Litigation Support. In any legal or regulatory action between an insured and Customer or between Customer and any other third party involving Customer’s use of Enservio’s Services (a “Third Party Claim”), Enservio will provide reasonable defense and litigation support related to the Insured Claim as requested by Customer (or as mandated by compliance with legal process initiated by Customer or a third party) at Customer’s expense. Such support will include, but is not limited to, witness preparation and attendance at depositions, trial, or other judicial or regulatory proceedings; providing documents, data or information that Enservio has available related to the Services; and making available Enservio’s Employees for general consultations and third party depositions as reasonably requested by Customer or required by other parties to the action, including regulatory agencies. Upon Enservio’s written request, Customer shall defend (or, at Enservio’s option, reimburse Enservio for its reasonable attorney’s fees incurred to defend) any Enservio employees who are required to testify in any deposition, hearing or trial related to the Third Party Claim, and shall pay Enservio at its standard rates for all time and reasonable expenses incurred by its employees related to responding to Customer’s or third party’s request for documents and for preparing for and attending depositions, hearings, and/or trials related to the Third Party Claim. In addition, Customer shall defend, indemnify, and hold Enservio harmless from all costs incurred by the Enservio directly related to the Third Party Claim, including, without limitation, all judgments actually awarded or any amount agreed upon in settlement arising out of any Third Party Claim and Enservio’s reasonable costs and expenses related thereto (including, without limitation, reasonable attorney’s fees), unless such judgments or other costs are due to the negligence of Enservio.
8. General
8.1 Confidential Information. Each party (as “Discloser”) may from time to time during the term of this Agreement disclose to the other party (as “Recipient”) information regarding the Discloser’s business, including technical, marketing, financial, employee, planning, pricing, customer, vendor and other internal business information (“Confidential Information”). Recipient will (i) use Confidential Information of Discloser only for the Purpose, and (ii) not disclose the Confidential Information to any third party other than the employees of Recipient or Recipient’s affiliates who have a need to know such Confidential Information in order to support the Purpose and who have agreed to comply with the restrictions on use and disclosure of this Section with respect to the disclosed information. Recipient will be responsible for unauthorized use or disclosure by any person or entity to whom it discloses Discloser’s Confidential Information. The restrictions on use and disclosure set forth in this Section 7.1 shall not apply to information received from Discloser where Recipient can reasonably demonstrate that such information: (a) is or becomes publicly available through no breach of this Agreement by Recipient (or any of its representatives or other agents); or (b) is or was provided to Recipient, without restrictions on disclosure or use, by a third party who had the right to make such disclosure (as could be reasonably ascertained by Recipient). If Recipient is required by law or legal process to disclose the Discloser’s Confidential Information, Recipient shall (a) provide Discloser with prompt written notice of such requirement (where legally permissible), (b) cooperate with Discloser at Discloser’s request and expense in taking such steps as may be reasonably requested by Discloser to maintain the confidentiality of the information subject to disclosure, (c) limit the disclosure of information to the extent lawful, and (d) continue to protect the disclosed information as Confidential Information as if such disclosure had not been made.
8.2 Publicity. Each party agrees that it will not, without prior written consent of the other, or where required by law or regulation, use in advertising, publicity or otherwise the name or any trademark, trade name, trade device, service mark, brand name, symbol or any other identification or any abbreviation, contraction or simulation thereof of the other or refer to the existence of this Agreement in press releases, advertising, or materials distributed to prospective customers. Notwithstanding the foregoing, provided that in each case Enservio provides Customer with an opportunity to review the proposed disclosure, Enservio may (a) issue a “customer win” press release announcing the relationship between Enservio and Customer, and (b) refer to Customer and the relationship between Enservio and Customer in Enservio’s marketing collateral, website, and other promotional and marketing materials.
8.3 Notices. All notices required or permitted under this Agreement shall be in writing and shall be delivered by overnight courier, electronic facsimile or email (in each case with reasonable confirmation of receipt). Notices shall be deemed delivered on the first business day following confirmed delivery. All communications will be sent to the respective addresses first set forth above or to such other address as may be designated by a party by giving written notice to the other party pursuant to this Section 7.2. If the communication is from Customer to Enservio, it shall be addressed to: “Attn: General Counsel.” If the communication is from Enservio to Customer, it shall be addressed to: “Attn: General Counsel.”
8.4 Assignment. Customer may not assign this Agreement or any of its rights or duties under this Agreement, whether by operation of law or otherwise, without the prior written consent of Enservio which may be withheld by Enservio in its sole discretion.
8.5 Waiver. The failure of either party to enforce in any one or more instances any of the terms and conditions of this Agreement shall not be construed as a waiver of future performance of any such term or condition. Waiver of any term or condition shall only be deemed enforceable if expressed in writing by the party granting such waiver.
8.6 Severability. If any provision of this Agreement shall be held by a court of law of competent jurisdiction to be unenforceable, the remaining provisions shall remain in full force and effect and, to the extent allowed and practicable, the unenforceable provision shall be modified so as to be enforceable consistent with its original intent and economic effect.
8.7 Governing Law and Jurisdiction. All disputes, claims or controversies arising out of this Agreement, or the negotiation, validity or performance of this Agreement, or the transactions contemplated hereby shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts without regard to its rules of conflict of laws. Each of the parties hereto hereby irrevocably and unconditionally consents to submit to the sole and exclusive jurisdiction of the courts of the Commonwealth of Massachusetts and of the United States of America located in Suffolk County, Massachusetts (the “Massachusetts Courts”) for any litigation among the parties hereto arising out of or relating to this Agreement, or the negotiation, validity or performance of this Agreement, waives any objection to the laying of venue of any such litigation in the Massachusetts Courts and agrees not to plead or claim in any Massachusetts Court that such litigation brought therein has been brought in any inconvenient forum or that there are indispensable parties to such litigation that are not subject to the jurisdiction of the Massachusetts Courts. The parties agree that UCITA and the United Nation’s Conventions do not apply to this Agreement.
8.8 Entire Agreement This Agreement and the applicable Order Schedule constitutes the entire understanding between the parties hereto, and supersedes all prior discussions, representations, understandings, or agreements (with the exception of any nondisclosure agreements which shall remain in full force and effect), whether oral or in writing, between the parties with respect to the subject matter of this Agreement. Any modification or amendment to this Agreement must be in writing and signed by each party’s authorized representatives. No terms in any document delivered by either party, unless accepted in writing by the other party, shall be deemed to amend the terms of this Agreement and any such additional or inconsistent terms shall be deemed unacceptable to and rejected by the party receiving such document. The headings and captions used in this Agreement are for convenience only, and shall not affect the interpretation of this Agreement. The word “including”, and its variants, shall be construed non-exclusively to mean “including, but not limited to.”
8.9 Independent Contractors. The relationship of Enservio and Customer established by this Agreement is that of independent contractors, and nothing contained in the Agreement will be construed to constitute the parties as partners, joint venturers, co-owners, or otherwise as participants in a joint undertaking.
8.10 Third Party Sites. Periodically, links may be established from Enservio hosted Websites (or valuation report) to one or more external Websites or resources operated by unrelated third parties (the “Third Party Sites”). These links are provided for Customer’s convenience only. These links should not necessarily be deemed to imply that Enservio endorses the Third Party Sites or any content therein. Enservio does not control and is not responsible or liable for any Third Party Sites or any content, advertising, products, or other materials on or available from such Third Party Sites. Access to any Third Party Site is at Customers own risk and Enservio will have no liability arising out of or related to such Websites and/or their content or for any damages or loss caused or alleged to be caused by or in connection with any purchase, use of or reliance on any such content, goods, or services available on or through any such Third Party Site.
