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Software licence and support agreement (standard)

Under this agreement, software is supplied and licensed to a customer, and the licensor undertakes to provide support services in relation to that licensed software.

The agreement contemplates the provision of set up (installation, configuration and integration) services to the customer, although it can be used where there are no such set up services.

Following the supply of the software and the provision of set up services where relevant, the customer may undertake an acceptance testing procedure. Again, the acceptance testing clauses can be removed where there will be no testing procedure.

The keystone of this document is the software licence clause. The suggested software licence covers the installation, use and backing-up of the software; it may be extended to cover the right to update and upgrade the software, and to allow the customer to sub-license its rights to third parties, such as hosting services providers. However, unlike the premium version of this template, there is no source code licence clause here, so rights to update and upgrade will be of limited use to the extent that software is compiled. Certain limitations to the license, and certain standard prohibitions, are also set out in the licence clause.

The basic standards relating to support services are set out in the body of the agreement, but the detail is contained in a service level agreement, which is attached as a schedule. The service level agreement sets out the rules regarding the operation and use of a helpdesk, categorises the types of issue which may be raised by the customer (critical, serious, etc), provides for response times and resolution times, and sets out limits on the use of the support services.

A reasonably detailed set of boilerplate clauses is also included in the document.

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Software licence and support agreement (standard) contents

  1. Definitions: definitions.
  2. Term: commencement of term; end of term.
  3. Supply of Software: making software available for download; delivery of software; acknowledgement of supply of software.
  4. Set Up Services: obligation to provide set up services; set up services timetable; delays in set up services consequent upon second party delays; software set up services and intellectual property rights.
  5. Acceptance procedure: obligation to carry our acceptance tests; licence to conduct software acceptance tests; assistance with acceptance tests; notification of results of acceptance tests; software deemed to pass acceptance tests; information upon notice of failure to pass acceptance tests; consequences of software acceptance test failure; number of acceptance testing rounds; consequences of acceptance of software.
  6. Licence: grant of licence to use software; software licence purpose; no sub-licensing of software; right to sub-license software; software licence limitations; use of software limited to specified persons; compliance with EULA; software licence prohibitions; security of licensed software; prerequisite software.
  7. Source Code: no licence of source code.
  8. Licence audit: right to audit licences; notice of audit; cooperation in relation to audit; costs of licence audit; limits on audit right.
  9. Support Services: support services provision; standard of support services; support services in accordance with SLA; suspension of support services; termination of support services for convenience; consequences of termination of support services.
  10. Licensee
    obligations:
    general second party obligations; access to computer systems.
  11. No assignment of Intellectual Property Rights: no assignments of intellectual property rights.
  12. Charges: obligation to pay charges; time-base charges limitations; amounts inclusive or exclusive of VAT; variation of charges.
  13. Timesheets: obligation to keep timesheets; obligation to supply timesheets.
  14. Payments: issue of invoices; time for payment of charges following invoice; payment methods; interest on late payments; interest on late payments.
  15. Confidentiality obligations: first party confidentiality undertaking; second party confidentiality undertaking; disclosure of confidential information to certain persons; exceptions to confidentiality obligations; disclosures of confidential information mandated by law etc; parties to stop using confidential information upon termination; parties to delete confidential information following termination; confidentiality obligations after termination.
  16. Data protection: compliance with data protection laws; warranty of
    Licensee
    's right to disclose personal data (GDPR); details of personal data processed by 
    the Licensor
     (GDPR); purposes of processing of personal data by 
    the Licensor
     (GDPR); duration of personal data processing by
    Licensor
    (GDPR); personal data processed by
    Licensor
    on instructions (GDPR); authorised international transfers of personal data (GDPR); informing 
    Licensee
     of illegal instructions (GDPR); personal data processed by
    Licensor
    as required by law (GDPR); confidentiality obligations on
    Licensor
     persons processing personal data (GDPR); security of personal data processed by 
    Licensor
     (GDPR); appointment of sub-processor by
    Licensor
    (GDPR); authorisation for
    Licensor
    to appoint sub-processors (GDPR);
    Licensor
     to assist with exercise of data subject rights (GDPR);
    Licensor
     to assist with compliance (GDPR); obligation to notify 
    Licensee
    of personal data breach (GDPR);
    Licensor
     to provide data protection compliance information (GDPR); deletion of personal data by 
    Licensor
     (GDPR);
    Licensor
     to allow audit (GDPR); changes to data protection law.
  17. Warranties: first party general warranties; software licence warranties; warranty of legality of software; software intellectual property infringement warranty; breach of software infringement warranty; second party warranty of authority; exclusion of implied warranties and representations.
  18. Acknowledgements and warranty limitations: software not error free; software not entirely secure; software compatibility is limited; no legal etc advice with software.
  19. Indemnities: indemnity upon breach: any provision or specified provisions (with definition); conditions upon first party indemnity; indemnity upon breach: any provision or specified provisions (with definition); conditions upon second party indemnity; limitations of liability vs indemnities.
  20. Limitations and exclusions of liability: caveats to limits of liability; interpretation of limits of liability; no liability for force majeure; no liability for loss of profits; no liability for loss of revenue; no liability for loss of use; no liability for loss of opportunities; no liability for loss of data or software; no liability for consequential loss; per event liability cap upon services contract; aggregate liability cap upon services contract.
  21. Force Majeure Event: obligations suspended for force majeure; force majeure notification and information; mitigation of effects of force majeure.
  22. Termination: termination without cause by first party; termination without cause by second party; termination upon breach; termination upon insolvency; termination upon non-payment.
  23. Effects of termination: surviving provisions upon termination; termination does not affect accrued rights; charges on termination of contract (services and licences); software licences on contract termination; software copies on contract termination.
  24. Notices: contractual notices must be in writing; methods of sending contractual notices; contact details for contractual notices; substitute contact details for notices; acknowledgement of notice by email; deemed receipt of contractual notices.
  25. Subcontracting: no subcontracting without consent; subcontracting permitted; first party responsible for subcontracted obligations.
  26. Assignment: assignment by first party; assignment by second party.
  27. No waivers: no unwritten waivers of breach; no continuing waiver.
  28. Severability: severability of whole; severability of parts.
  29. Third party rights: third party rights: benefit; third party rights: exercise of rights.
  30. Variation: variation in writing and signed.
  31. Entire agreement: entire agreement: documents; no misrepresentation; section subject to caveats to limits of liability.
  32. Law and jurisdiction: governing law; jurisdiction.
  33. Interpretation: statutory references; section headings not affecting interpretation; calendar month meaning; no ejusdem generis.

SCHEDULE 1 (SOFTWARE LICENCE PARTICULARS)

  1. Specification of Software: specification of software prompt.
  2. Set Up Services: specification of software set up services prompt.
  3. Timetable: timetable prompt.
  4. Software licence: specification of software licence prompt.
  5. Financial provisions: financial provisions prompt.

SCHEDULE 2 (SUPPORT SLA)

  1. Introduction: introduction to support SLA.
  2. Helpdesk: helpdesk obligation; purpose of support services helpdesk; access to helpdesk; times of helpdesk availability; all requests for support to go through helpdesk.
  3. Response and resolution: software support issue categorisation; allocation of support issue severity categories; support response times; contents of response to support request; support resolution times.
  4. Provision of Support Services: support services to be provided remotely.
  5. Limitations on Support Services: excessive use of support services; specific exceptions to support services; support services and unrelated issues.

SCHEDULE 3 (EULA)

    EULA add prompt.

SCHEDULE 4 (DATA PROCESSING INFORMATION)

  1. Categories of data subject: prompt for categories of data subject.
  2. Types of Personal Data: prompt for types of personal data.
  3. Purposes of processing: prompt for personal data processing purposes.
  4. Security measures for Personal Data: prompt for security measures for personal data.
  5. Sub-processors of Personal Data: prompt for identifying sub-processors of personal data.
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