Skip to main content

MASTER SERVICE AGREEMENT

This Master Service Agreement (“Agreement”), together with the attached Proposal and Statement of Services dated [TypedParent.Z_customQuoteDate] represents the entire agreement between NetConnect (“NetConnect”) and [QuoteToCustomer.AccountName](QuoteToCustomer.] (“Client”) with respect to the work, products, services, obligations and responsibilities to be performed by the parties hereunder. No attachment, supplement, or exhibit to the Agreement shall be valid unless signed by an authorized signatory of NetConnect and the Client.

  1. Definitions. Any capitalized term which is defined in this Agreement shall have the same meaning when used in any Statement of Services unless the language or context requires otherwise. Statements of Services-specific definitions, if any, shall be included in the applicable Statements of Services and shall apply only with respect to such Statement of Services.  As used in this Agreement:
    1. “Change Order” means the document used to detail a project change request signed by both parties authorizing a change in the scope of the Services.
    2. “Confidential Information” means any information furnished by Discloser to Recipient during the term of this Agreement, including, without limitation, pricing, methods, processes, financial data, lists, statistics, software, systems or equipment, programs, research, development, strategic plans, operating data, or related information of each of the parties and/or its or their customers and suppliers, concerning past, present, or future business activities of said entities. This Agreement is the Confidential Information of NetConnect. All other Confidential Information must be clearly designated as “Confidential.”  Information provided orally will be considered confidential only if a written memorandum of such information clearly designated as marked “Confidential” is delivered to Recipient within thirty (30) days of the Disclosure.  As to any particular Confidential Information, “Discloser” means the party disclosing the Confidential Information and the “Recipient” means the party receiving the Confidential Information.
    3. “Content” means information, software, Client Data and other data including, without limitation, HTML files, scripts, programs, recordings, sound, music, graphics, and images that Client or any of its Users create, install, upload or transfer in or through the Hosting Environment.
    4. “Client Components” means the hardware, software, other products, and other Content including, without limitation, those specified in a Statements of Services as being provided by Client.
    5. “Client Data” means all data and information about Client’s business(es), customers, employees, operations, facilities, products, markets, assets or finances that NetConnect obtains, creates, generates, collects or processes in connection with its performance of Services and is stored in any Hosting Environment.
    6. “Disclosure” means the release, publication, or dissemination of Confidential Information by a party and excludes the release, publication, or dissemination of Confidential Information by a third party.
    7. “Hosting Environment” means NetConnect’s application hosting environment for the delivery of Services, consisting of, but not limited to, network, storage and server devices, software programs, applications network management devices, and other items specified in any Statement of Work.
    8. “Normal Business Hours” means Monday through Friday from 9:00 a.m. through 5:00 p.m. Eastern Time except for State of New York legal holidays.
    9. “Products” means software, hardware, or Third-Party Services (as defined herein) purchased by Client under this Agreement. Additional terms related to Product sale are contained in “Addendum A: Terms Specific to Product Sale Only” attached hereto and incorporated herein by Reference.
    10. “Proposal” means the document containing the transaction specific Products or Services being purchased by Client from NetConnect.
    11. “Required Consents” means any consents, licenses, or approvals required to give NetConnect, or any person or entity acting for NetConnect under this Agreement, the right or license to access, use and/or modify in electronic form and in other forms, including, without limitation, derivative works, the Client Components and Content, without infringing the ownership or intellectual property rights of the providers, NetConnect, or owners of such Client Components and Content.
    12. “Services” means the information technology services to be delivered by NetConnect under this Agreement as specified in any Statement of Services and does not include Third Party Services (as defined herein).
    13. “Statement of Services” means the document containing the specific information technology services that NetConnect will provide, applicable pricing and payment terms, service level agreement, if any, and other transaction-specific provisions.
    14. “Third Party Services” means the information technology services to be delivered by a third party under this Agreement as specified in any Statement of Services.
    15. “User” means any entity or individual that receives or uses the Services, or the results or products of the Services, through Client.
  2. Agreement Structure. This Agreement contains general contractual terms for all information technology services to be provided by NetConnect. All transaction specific information will be provided in one or more Proposals or Statements of Services.  In the event of any inconsistencies between the terms of this Agreement and the terms of any Statement of Services, the terms of this Agreement shall control.  The parties may specify in the applicable Statements of Services that a particular provision of the Statements of Services is to supersede a provision of this Agreement, in which case the superseding Statements of Services provisions shall be applicable only to such Statements of Services and shall be effective for such Statements of Services only if such provision expressly references the applicable Section of this Agreement that is to be modified and clearly states that such provision supersedes the conflicting or inconsistent provision in this Agreement.
  3. Designated Contact Persons. Each party shall designate an individual who will be a primary point of contact for that party and will have the authority to act and make decisions for that party in all aspects of the Services, including Change Orders.  Client shall make available all technical matter, data, information, operating supplies, and computer system(s), as reasonably required by NetConnect.  Either party may change its designated contact person by written notice to the other party.
    1. Initial Term.  This Agreement shall commence on upon acceptance of a Proposal or Statement of Services and continue until terminated as provided herein (the “Term”). Unless otherwise specified in the Statement of Services, the Services shall commence on [ContractStartDate] and continue for a period of 36 months (the “Initial Term”) unless terminated by either party for cause.
    2. Renewal Term.  Prior to the expiration of the Initial Term both parties will review and discuss a new agreement. Unless otherwise specified in the Proposal or Statement of Services, the Services will automatically renew annually (each, a “Renewal Term”).
  4. Infrastructure Changes. The Client is responsible for providing NetConnect with complete information concerning each desktop, server, and managed site (collectively “Managed Infrastructure”) and to notify NetConnect in writing in the event the Client adds components to the managed infrastructure within five (5) business days of installation. Any such change to the Managed Infrastructure may result in a change to the Services including the charges. If updated hardware is procured through NetConnect, it will be automatically added to the Services and may incur additional cost.
  5. Pre-existing Conditions. NetConnect has the right, in the first sixty (60) days of the Agreement, to determine that pre-existing conditions exist, reducing the performance of the network which might require time to resolve. If NetConnect is required to resolve network performance issues in order to begin Services, any such assistance is out-of-scope and will be billed at NetConnect’s currently hourly rate.  Further, NetConnect is not responsible for any delays to the delivery of Services caused any such resolution.
  6. Change Management. In the event Client wishes to add additional programs, applications or data sources, systems servers, network devices of any kind (hubs, routers, switches), requests an expansion in the scope of the Services, or increases the network load in the Hosting Environment managed by NetConnect under this Agreement, then Client shall present its request for such alterations of its network to NetConnect for scoping.  No alterations will be permitted under this Agreement without a signed Change Order.
  7. Company Data Protection.The Client shall be solely and fully responsible, at all times, for the protection of the Client’s data and software and any backups thereof. NetConnect shall have and bear no liability whatsoever for lost, damaged or corrupted data, software, or other information. The Client is hereby advised that, during NetConnect’s provision of Services, data may be lost, damaged, or corrupted. Any data recovery services are considered out of scope and could be assessed additional charges.
  8. Information Security.
    1. Security Measures. NetConnect will maintain commercially reasonable security measures that are designed to (a) ensure the security of the Client Data stored by NetConnect in the Hosting Environment; (b) protect against any anticipated threats or hazards to the security or integrity of the Client Data stored by NetConnect in the Hosting Environment; and (c) protect against any unauthorized access to or use of the Client Data as stored by NetConnect in the Hosting Environment.
    2. Notification and Prevention Obligations. Upon becoming aware, NetConnect shall promptly notify Client of any actual security breach in its Hosting Environment that may result in the unauthorized access to or disclosure of unencrypted Client Data. This notification will state in reasonable detail the Client Data at risk. NetConnect agrees to take all actions reasonably necessary under the circumstances to immediately prevent the continued unauthorized access of such information.  NetConnect further agrees that in the event of a breach of confidentiality or security, it will work in good faith and cooperate with Client to address the breach.  NetConnect shall not be responsible or liable for any security breach caused by Client.
    3. Audits by Client. Client shall have the right to review NetConnect’s security measures prior to the commencement of the Services and thereafter on an annual basis during the term of this Agreement.  Such annual review may include an onsite audit, conducted by qualified personnel, of NetConnect’s data centers in order to inspect the Hosting Environment to verify NetConnect’s compliance with this Agreement.  The dates of any onsite audit shall be mutually agreed upon by the parties.  Client shall be responsible for the entire cost of any onsite audit.  NetConnect may charge Client on a time-and-materials basis at the then-current standard time and materials rate for Client audits and requests for information based on the length and detail of the audit/information requested.  No such audit may include activities that might result in “downtime” or unavailability for the Hosting Environment.  Any “downtime” or unavailability as a result of any audit by Client shall not count as downtime for purposes of any Statements of Services and shall not be a breach of this Agreement or any Statements of Services by NetConnect.
  9. Other Client Responsibilities.
    1. Acceptable Use. Client is responsible for all acts and omissions of its Users in connection with receipt or use of the Services.  Client agrees, and will ensure its Users agree, to act responsibly and not use the NetConnect Services for any illegal or unauthorized purpose including, but not limited to, hacking, phishing, spamming, identity theft, financial fraud, e-mail spoofing, virus distribution, network attacks, pirating software, harassment, using copyrighted text, sharing illegal software, and unauthorized use of images.  NetConnect has the right to investigate potential violations of this Section.  If NetConnect determines that a breach has occurred, then NetConnect may, in its sole discretion: (a) restrict Client’s and Users’ access to the Services; (b) remove or require removal of any offending Content; (c) terminate this Agreement for cause; and/or (d) exercise other rights and remedies, at law or in equity.  Except in an emergency or as may otherwise be required by law, before undertaking the actions in this Section, NetConnect will attempt to notify Client by any reasonably practical means under the circumstances, such as, without limitation, by telephone or e-mail.  Client will promptly notify NetConnect of any event or circumstance related to this Agreement, Client’s or any User’s use of the Services, or Content of which Client becomes aware, that could lead to a claim or demand against NetConnect, and Client will provide all relevant information relating to such event or circumstance to NetConnect at NetConnect’s request.   NetConnect agrees to allow Client complete and unrestricted access at all times to Client’s software applications, devices, equipment, hardware, and all Services-related license files so that Client can audit its users’ compliance with the terms of this Agreement.
    2. Client is solely responsible for: (a) all Content including, without limitation, its selection, creation, design, licensing, installation, accuracy, maintenance, testing, backup and support; (b) all copyright, patent and trademark clearances in all applicable jurisdictions and usage agreements for any and all Content; (c) the selection of controls on the access and use of Content; and (d) the selection, management and use of any public and private keys and digital certificates it may use with the Services.  Client agrees not to access the Hosting Environment by any means other than through the interface that is provided by NetConnect for use in accessing the Hosting Environment.
    3. Required Consents. Client shall obtain and keep in effect all Required Consents necessary for NetConnect to perform all of its obligations as set forth in this Agreement.  Upon request, Client will provide to NetConnect evidence of any Required Consent.  NetConnect will be relieved of its obligations to the extent that they are affected by Client’s failure to promptly obtain and provide to NetConnect any Required Consents. NetConnect will adhere to reasonable terms and conditions pertaining to Content as notified in writing to NetConnect.  NetConnect agrees not to remove or alter any copyright or other proprietary notice on or in any Content without Client’s consent.
    4. Client shall ensure that all software is currently and properly licensed, operational and maintained and supported at the level required for NetConnect to perform the Services required under this Agreement. Client grants NetConnect, at no charge, the right to use any Client-owned or developed application software systems required by NetConnect to provide the Services specified in any Statements of Services to Client.
    5. Capacity Planning. Client is solely responsible for determining whether the services, Hosting Environment, and related Content meet Client’s capacity, performance, or scalability needs.  Client is responsible for planning for and requesting changes to the Hosting Environment and services, including any additional capacity required to support anticipated peaks in demand that may significantly increase website hits, transaction volumes, or otherwise increase system resource utilization.
    6. Client Components. Client is solely responsible for the selection, operation and maintenance of all Client Components.
    7. Security. Client shall (a) use reasonable security precautions in connection with its use of the Services, i.e., maintain up-to-date virus scanning and operating system security patches and firewall protection; (b) require each User to use reasonable security precautions, i.e., maintain up-to-date virus scanning and operating system security patches and firewall protection. In addition, Client shall not take any action or install any software that may preclude or impair NetConnect’s ability to access or administer its network or provide the Services.
    8. Encryption. Client shall encrypt at the application level Confidential Information, Client Data, and all data that is considered sensitive data or that must be treated as confidential under state or federal law or under Client’s contractual obligations to others. This includes, but is not limited to, Social Security Numbers, financial account numbers, driver’s license numbers, state identification numbers, Protected Health Information (as that term is defined in Title II, Subtitle F of the Health Insurance Portability and Accountability Act, as amended (HIPAA) and regulations promulgated there under) and Nonpublic Personal Information (as that term is defined in Financial Services Modernization Act of 1999 (Gramm-Leach-Bliley) and regulations promulgated there under).
  10. Response Times.NetConnect employs commercially reasonable efforts to respond to support requests.  NetConnect, in their sole discretion, will determine if a support request is Critical or Standard (as defined herein).
    1. During Normal Business Hours:
      1. Critical – Within Two (2) business hours or best effort
      2. Standard – Within six (6) business hours or best effort
    2. Outside of Normal Business Hours, NetConnect will use reasonable best efforts to respond or otherwise will respond within the response time above beginning the first hour of the next Normal Business Hour after receipt.
    3. Support level definition:
      1. Critical – Client’s entire office, business operations, or more than 50% of employees are affected and unable to perform work duties.
      2. Standard – At least one (1) of Client’s employees is affected and unable to perform work duties.
    4. Invoicing and Payment.
      1. Monthly Service fees in a Proposal is a best estimate based on the information given to NetConnect by the Client and/or which is available at the time and may be based on a number of assumptions set out in the Statement of Services. If it materializes that in NetConnect’s reasonable opinion, the information provided and/or assumptions made are incorrect, inaccurate, or have changed and/or proposed scope of Services in not feasible, NetConnect will present a Change Order to Client which may include back charges for additional charges which Client will consent without unreasonable delay. Estimated fees based on the number of devices and users agreed by the Client pre-on-boarding are set out in the Proposal. Fees are variable and the Client’s initial and subsequent invoices will be based on the actual number of devices and users on-boarded inclusive of the minimum monthly fee.
      2. Client shall pay to NetConnect all recurring base monthly charges and non-recurring additional charges, for services, hardware or software not covered by the base rate at the rates and charges set forth on the applicable Statement of Services or Proposal.  The base monthly charge shall be billed prospectively on the 1st day of the month in which the services are to be provided.    Additional charges for services, hardware, or software, as the case may be, shall be billed in advance.
      3. Reimbursable Expenses. Except as may otherwise be stated in the applicable Statement of Services, Client agrees to reimburse NetConnect all reasonable and customary out-of-pocket expenses, including, but not limited to, airfare, rental car, mileage, tolls, and lodging expenses, incurred by NetConnect in connection with the performance of services.  Meal expenses shall be billed at NetConnect’s then-current per-diem amount.  Travel time will be billed at one-half the on-site billable rate each way.  Reimbursable expenses shall be invoiced on a monthly basis.  Upon request by Client, NetConnect shall provide copies of documentation for such expenses.
      4. Invoices. All invoices shall be due and payable within thirty (30) days after the invoice date.  Client agrees to pay a late payment charge at the rate of one and one-half percent (1.5%) per month, or at the maximum late payment charge permitted by applicable law, whichever is less, on any unpaid amount for each calendar month (or portion thereof) that any payment is thirty (30) days past due.  NetConnect may apply any payment received to any delinquent amount outstanding.  In the event NetConnect must initiate any actions or proceedings for collection of amounts due and owing by Client, Client agrees to pay all costs including reasonable attorney’s fees incurred by NetConnect.
      5. Taxes. The amounts payable under this Agreement are exclusive of all sales, use, value-added, withholding, and other taxes and duties.  Client shall pay all taxes levied and duties assessed by any authority based upon this Agreement, excluding any taxes based upon NetConnect’s income.  This provision shall not apply to any taxes for which Client is exempt and for which Client has furnished NetConnect with a valid tax exemption certificate authorized by the appropriate taxing authority.
    5. Monthly Service Fees the Monthly Service Fee (as defined in the Statement of Services) amount charged to the Client during either the Initial Term or the Renewal Term shall increase annually by six percent (6%) over the Monthly Services Fee that was charged to the Client during the immediately preceding year.
    6. To the extent that any Products are to be installed by NetConnect, NetConnect shall install such Products as specified in this Agreement.  Installation dates are estimates only. Client shall be responsible for preparation and maintenance of the site for such installation, including, but not limited to, providing necessary electrical power, communication lines, air conditioning, and humidity control.
      1. By Each Party. Each party represents and warrants to the other party that: (a) it has full power and authority to enter into this Agreement; (b) it is in compliance, and will continue to comply during the term of this Agreement, with all laws and regulations governing its possession and use of Client Data and its provision or use of the Services; and c) it has the requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.
      2. By Client. Client represents and warrants to NetConnect that: (a) it owns, or is a licensee of, having the right to sublicense, the Content and that Client has the right to grant NetConnect the rights that Client purports to grant in this Agreement; (b) NetConnect’s possession or use of the Content or Client Data does not and will not infringe on, violate, or misappropriate any patent, trademark, or copyright, or misappropriate any trade secret or other proprietary right of any third party; and (c) it will not use, nor will it allow any third parties under its control to use, the Services for high risk activities, such as the operation of nuclear facilities, air traffic control, or life support systems, where the use or failure of the Services could lead to death, personal injury, or environmental damage.
      3. Industry Standards. NetConnect represents and warrants to Client that the Services shall be performed in a good, workmanlike, professional and conscientious manner by experienced and qualified employees of NetConnect according to the generally accepted standards of the industry to which the Services pertain.  For Services containing a deliverable, such Services will be deemed accepted by Client if not rejected in a reasonably detailed writing within five (5) days of submission to Client, or as otherwise identified in the applicable Statement of Work.  In the event the Services provided by NetConnect are not in conformance with this warranty, Client must provide written notice to NetConnect within five (5) days after the performance of the Services and such notice will specify in reasonable detail the nature of the breach.  Upon confirmation of the breach, NetConnect will use commercially reasonable efforts to take the steps necessary to correct the deficiency at no charge to Client. This is Client’s sole and exclusive remedy for breach of this warranty.
      4. Service Levels. The Services will meet the technical standards of performance or service levels, if any, set forth in the applicable Statements of Services. Client’s sole and exclusive remedy for any failure to meet the applicable technical standards of performance or service levels shall be as specified in the applicable Statements of Services.
      5. Client is not authorized to make, and Client shall not make, any representations or warranties on behalf of NetConnect to any third party. Client shall be solely responsible and liable for any representations or warranties that Client makes to any third party regarding NetConnect, the Hosted Environment, the Services, or any other aspect of this Agreement.  NetConnect makes no representations or warranties with regard to the Third Party Services and passes through to Client the terms and conditions for the services delivered by a third party.
      6. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION, NEITHER PARTY MAKES ANY OTHER REPRESENTATION OR WARRANTY OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND ANY WARRANTIES ARISING FROM THE USAGE OF TRADE OR COURSE OF PERFORMANCE.  NO EMPLOYEE, AGENT OR REPRESENTATIVE OF NETCONNECT IS AUTHORIZED TO MAKE ANY ADDITIONAL OR OTHER REPRESENTATIONS OR WARRANTIES ON BEHALF OF NETCONNECT.  CLIENT IS NOT RELYING ON ANY OTHER REPRESENTATIONS OR WARRANTIES.  IN ADDITION, CLIENT UNDERSTANDS AND ACKNOWLEDGES THAT THE INTERNET IS NOT A SECURE MEDIUM, MAY BE INHERENTLY UNRELIABLE AND SUBJECT TO INTERRUPTION OR DISRUPTION AND MAY BE SUBJECT TO INADVERTENT OR DELIBERATE BREACHES OF SECURITY, FOR WHICH NETCONNECT CANNOT BE HELD LIABLE.
      1. Indemnification by NetConnect. Subject to the terms and conditions in this Agreement, NetConnect will, at its cost, (i) defend Client and its officers, directors, shareholders, employees, agents, successors and assigns (collectively the “Client Indemnified Parties”) from and against any claim, suit, action, or proceeding (threatened or otherwise) (each a “Claim”) made or brought by a third party against Client Indemnified Parties to the extent based upon (a) any breach by NetConnect of any of it representations and warranties under Section 15.a.; (b) real property damage or personal injury, including death, solely and directly caused by NetConnect’s employees or contractors in the course of performance under this Agreement; (c) any breach by NetConnect of Section 18 but only with respect to the Disclosure of Confidential Information and to the extent the Disclosure is the result of actions predominantly attributable to NetConnect; (d) any uncured breach by  NetConnect of its obligations under Section 9; and (e) any allegation that Client’s receipt of the Services under this Agreement infringes any of such third party’s copyrights, or any such third party’s patents issued in the United States as of the Effective Date, or misappropriates any of such third party’s trade secrets (each an “IP Claim”); and (ii) NetConnect shall pay any final award of damages (or settlement amount approved by NetConnect in writing and) paid to the third party that brought any such Claim.
      2. Indemnification by Client. Client will indemnify, defend and hold harmless NetConnect and its officers, directors, shareholders, employees, agents, successors and assigns from any and all liabilities, damages, costs and expenses, including reasonable attorney’s fees and expenses, arising out of any claim, suit or proceeding (threatened or otherwise) made or brought by a third party against NetConnect or its officers, directors, shareholders, employees, agents, successors and assigns based upon (a) any breach by Client of any of it representations and warranties under Section 15; (b) real property damage or personal injury, including death, directly caused by Client; (c) any breach by Client of Section 18 but only with respect to the Disclosure of Confidential Information and to the extent the Disclosure is the result of actions predominantly attributable to Client; (d) any breach by Client of its obligations under Section 10.a.,  Section 10.c., or Section 10.h.; (e) any breach by Client of Section 30.a; and (f) any claim that NetConnect’s possession, storage, or transmission of the Content or possession or use of the Client Components, infringes on, violates, or misappropriates any patent, copyright, trademark, service mark, trade secret or other intellectual property or proprietary rights of such third party.
      3. Procedure. A party (or other person) having a right to defense and indemnification under this Agreement (“Indemnified Party”) that desires such indemnification shall tender to the party having an obligation to defend and indemnify under this Agreement (“Indemnifying Party”) sole control of the defense and settlement of the Claim for which indemnity is sought, provided that the Indemnified Party shall notify the Indemnifying Party promptly in writing of each Claim and the Indemnified Party shall give the Indemnifying Party information and assistance to defend and settle the Claim.  The Indemnified Party, at its own expense, shall have the right to employ its own counsel and to participate in any manner in the defense against any claim for which indemnification is sought under this Section 16.  The Indemnified Party shall cooperate in all reasonable respects with the Indemnifying Party and its attorneys in the investigation, trial and defense of any Claim.  In no event shall either party make any settlement of a Claim, including without limitation, any settlement that involves a remedy relating to admission of liability by, injunctive relief against, or other affirmative obligations by the Indemnified Party without the other party’s prior written consent, which consent will not be unreasonably withheld, delayed, or conditioned.
      4. Mitigation for IP Claims. At any time after notice of an IP Claim, or if NetConnect believes there is a basis for an IP Claim, NetConnect has the right, at NetConnect’s sole option and expense, to either (a) procure the right for Client to continue receiving the Services as provided in this Agreement, or (b) replace or modify the applicable Service with a service that has substantially similar functionality and that NetConnect believes would not be subject to the IP Claim.  If NetConnect deems (a) or (b) not feasible or not commercially reasonable, NetConnect has the right to terminate the applicable Statements of Services.  In the event of any such termination, NetConnect will refund to Client the unused portion of any amounts paid by Client for the affected Service.  In addition, upon any such termination, Client shall cease the use of the applicable Service.
      5. Limitations as to IP Claims. Notwithstanding anything to the contrary, NetConnect shall have no obligations or liability under Section 16.a. (Indemnification by NetConnect) if the IP Claim is based upon, arises out of, or is related to, in whole or in part, or if any of the following apply:  (a) the combination of the applicable Service with any product, software, solution, or service not entirely developed and provided by NetConnect, (b) use of the applicable Service outside the scope of the licenses or rights set forth in this Agreement or in violation of any law or any restriction or limitation set forth in this Agreement, (c) Client’s failure to comply with NetConnect’s direction to cease any activity that in NetConnect’s reasonable judgment may result in an IP Claim, (d) any allegation by a third party that does not specifically reference a NetConnect Service, or that does not reference a feature of function of a NetConnect Service, or (e) any IP Claim for which Client does not promptly tender control of the defense thereof to NetConnect.
      6. Sole Remedy. THE TERMS IN THIS SECTION 16 (INDEMNIFICATION) SHALL BE CLIENT’S SOLE AND EXCLUSIVE REMEDY AND NETCONNECT’S SOLE AND EXCLUSIVE LIABILITY AND OBLIGATION WITH RESPECT TO THIRD PARTY CLAIMS OF INFRINGEMENT OR MISAPPROPRIATION OF THIRD-PARTY INTELLECTUAL PROPERTY RIGHTS.  EXCEPT AS EXPRESSLY SET FORTH IN THIS SECTION 16 (INDEMNIFICATION), NETCONNECT SHALL NOT HAVE ANY OBLIGATION TO DEFEND OR INDEMNIFY CLIENT FOR THIRD PARTY CLAIMS.
    7. Limitation of Liability.
      1. Limit on Types of Damages Recoverable. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY WILL (AND NETCONNECT’S SUPPLIERS AND LICENSORS WILL NOT) BE LIABLE TO THE OTHER PARTY OR ANY OTHER THIRD PARTY CLAIMING THROUGH A PARTY FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL,  INDIRECT, EXEMPLARY, OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOST REVENUES, LOSS OF GOODWILL, LOST OR DAMAGED DATA, INVESTMENTS MADE, AND LOSS OF BUSINESS OPPORTUNITY OR INTERRUPTION) THAT THE OTHER PARTY MAY INCUR OR EXPERIENCE IN CONNECTION WITH THIS AGREEMENT, ANY Statements of Services, OR THE SERVICES, HOWEVER CAUSED AND UNDER WHATEVER THEORY OF LIABILITY (INCLUDING, WITHOUT LIMITATION, BREACH OF CONTRACT, TORT, STRICT LIABILITY AND NEGLIGENCE), EVEN IF (A) SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, (B) DIRECT DAMAGES DO NOT SATISFY A REMEDY, OR (C) A LIMITED REMEDY SET FORTH IN THIS AGREEMENT OR ANY Statements of Services FAILS OF ITS ESSENTIAL PURPOSE.
      2. Limit on the Number of Damages Recoverable. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NETCONNECT’S TOTAL CUMULATIVE LIABILITY UNDER OR RELATING TO THIS AGREEMENT AND THE SERVICES, REGARDLESS OF THE NATURE OF THE OBLIGATION, FORM OF ACTION OR THEORY OF LIABILITY (INCLUDING, WITHOUT LIMITATION, CONTRACT, TORT, STRICT LIABILITY, AND NEGLIGENCE), SHALL BE LIMITED IN ALL CASES TO AN AMOUNT WHICH SHALL NOT EXCEED, IN THE AGGREGATE, FEES PAID BY CLIENT TO NETCONNECT DURING THE SIX (6) MONTH PERIOD IMMEDIATELY PRECEDING THE FIRST EVENT GIVING RISE TO LIABILITY FOR THE SERVICES THAT ARE THE BASIS OF THE PARTICULAR CLAIM AND UNDER THE APPLICABLE Statements of Services.
      3. Non-Managed Systems. NetConnect shall not be liable for any damages caused by services, systems, software, or other components that neither it nor its employees, agents or subcontractors furnish or manage pursuant to this Agreement.
      4. Applicability. The terms in this Section 17 shall apply to the maximum extent permitted by applicable law.  If applicable law precludes a party from excluding liability for certain types of damages for certain acts or omissions or capping its liability for certain acts or omissions, then the terms in this Section 17 shall apply to not limit liability for such acts and omissions, but will apply for all other acts and omissions.
      5. Allocation of Risk. EACH PARTY ACKNOWLEDGES THAT THE FOREGOING DAMAGES EXCLUSIONS AND LIMITATIONS OF LIABILITY SET FORTH IN THIS SECTION 17 REFLECTS THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND ACKNOWLEDGES THAT THE OTHER PARTY WOULD NOT HAVE ENTERED INTO THIS AGREEMENT ABSENT SUCH EXCLUSIONS AND LIMITATIONS OF LIABILITY OR THAT THE PRICES PAID BY CUSTOMER FOR THE SERVICES WOULD HAVE BEEN HIGHER.
      1. Restrictions on Use; Non-Disclosure. Recipient agrees that it will use the same care and discretion to avoid Disclosure of any Confidential Information as it uses with its own similar information that it does not wish to disclose, publish or disseminate (but in no event less than a reasonable degree of care). Except as otherwise expressly permitted in writing by an authorized representative of Discloser, Recipient agrees that it will not:  (a) use the Confidential Information of Discloser for any purpose other than the purpose for which Discloser disclosed the information; or (b) disclose or reveal Confidential Information of Discloser to any person or entity other than its employees, directors, officers, agents and consultants who (i) have a need to know to further the purpose of this Agreement; and (ii) are subject to legally binding obligations of confidentiality no less restrictive than those contained in this Agreement.
      2. The obligations set forth in Section 18.a. shall not apply to Confidential Information that: (a) before the time of its Disclosure was already in the lawful possession of the Recipient; or (b) at the time of its Disclosure to Recipient is available to the general public or after Disclosure to Recipient by Discloser becomes available to the general public through no wrongful act of the Recipient; or (c) Recipient demonstrates to have been lawfully and independently developed by Recipient without the use of or reliance upon any Confidential Information of the Discloser and without any breach of this Agreement.
      3. Disclosures Required by Law. If Recipient becomes legally compelled (by deposition, interrogatory, subpoena, civil investigative demand or similar process) to disclose any Confidential Information, then Recipient shall notify Discloser of the requirement promptly in writing so that Discloser may seek a protective order or other appropriate remedy.  If a protective order or other remedy is not obtained, or if Discloser waives in writing compliance with the terms hereof, then Recipient shall furnish only that portion of the information which Recipient is advised by written opinion of counsel is legally required and to exercise reasonable efforts to obtain confidential treatment of such information.
      4. Disposal of Confidential Information. Upon termination of this Agreement or upon Discloser’s request at any time, Recipient agrees to promptly return to Discloser all copies of Confidential Information.  If return is impossible as to any portion of the Confidential Information, then Recipient shall certify to Discloser promptly that all such Confidential Information of Discloser, including all copies thereof, has been totally and permanently destroyed.  NetConnect will return to the Client, all Client Data in its possession at the date of termination in its then-existing format and on its client-supplied media, however, NetConnect may keep a copy in accordance with its record retention policy.  Any conversion of format or media performed by NetConnect in order to discharge its obligations under this Section shall be at Client’s expense.
      5. The parties acknowledge and agree that a breach of this Agreement by either party will cause continuing and irreparable injury to the other’s business as a direct result of any such violation, for which the remedies at law will be inadequate, and that Discloser shall therefore be entitled, in the event of any actual or threatened violation of this Agreement by Recipient, and in addition to any other remedies available to it, to seek to obtain a temporary restraining order and to injunctive relief against the other party to prevent any violations thereof, and to any other appropriate equitable relief.
      6. The obligations set forth in this Section 18 shall apply during the term of this Agreement and for a period of one (1) year thereafter.
    8. Non-Solicitation.During the term of this Agreement, and for a period of twelve (12) months thereafter, each party agrees not to, directly or indirectly, solicit for employment, recruit, or employ any employees of the other party without prior written. Should a party breach this Section, the breaching party will pay the other party as a fee and not a penalty an amount one times (1x) the current gross yearly salary of that employee including bonuses.
    9. All notices, demands, and communications required or permitted in connection with this Agreement shall be in writing and shall be deemed effectively given in all respects upon personal delivery or, if mailed, by registered or certified mail, postage prepaid, return receipt requested, or by overnight courier, the receipt of which is confirmed, addressed to the party hereto at the address set forth in the Proposal or Statement of Services (or such other address for a party as shall hereafter be specified by like notice).  Either party hereto may from time to time change its notification address by giving the other party hereto prior written notice of the new address and the effective date thereof.
    10. Force Majeure. Neither party hereto shall be deemed in default of this Agreement to the extent that performance of its obligations (other than an obligation of payment) or attempts to cure any breach are delayed or prevented by reason of any act of God, fire, natural disaster, accident, pandemic, civil disturbance, terrorism, acts or omissions of suppliers and other third parties, act of government, strikes, unavailability of material, facilities, telecommunications services or supplies or any other cause beyond the reasonable control of such party (each, a “Force Majeure Event”). Each party shall use reasonable efforts to mitigate the extent of the Force Majeure Event and their adverse consequences, provided however, that should the Force Majeure Event continue for more than thirty (30) days, this Agreement may be terminated without liability by the non-delaying party.
    11. Waiver. The failure of either party to insist, in any one or more instances, upon the performance of any of the terms, covenants, or conditions of this Agreement or to exercise any right hereunder, shall not be construed as a waiver or relinquishment of the future performance of any rights and the obligations of the party with respect to such future performance and shall continue in full force and effect.
    12. Governing Law.This Agreement shall be governed by and construed in accordance with the laws of the State of New York and the federal laws of the United States of America. The parties hereto consent to submit to the jurisdiction of the Courts of the State of New York for any actions, suits or proceedings arising out of or relating to this Agreement. Any legal action or proceeding arising under this Agreement will be brought either in the federal court in the Southern District of New York or state courts located in Richmond County, New York and the parties hereby irrevocably consent to the personal jurisdiction and venue therein.
    13. In the event that any provision of this Agreement or any word, phrase, clause, sentence or other provision thereof, should be held to be unenforceable or invalid for any reason, such provision or portion thereof shall be modified or deleted in such a manner so as to make this Agreement as modified legal and enforceable to the fullest extent permitted under applicable laws.
    14. Entire Agreement.This Agreement and other attachments hereto constitute the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, purchase orders, understandings and negotiations, whether oral or written, between the parties hereto with respect to such subject matter.
    15. The parties shall attempt to settle amicably by mutual discussions any disputes, differences, or claims related to this agreement within sixty (60) days of date such dispute arises. Failing such amicable settlement, any controversy, claim or dispute arising under or relating to this agreement, including the existence, validity, interpretation, performance, termination, or breach thereof, shall be settle by arbitration in accordance with the Arbitration Rules (and if Client is a non-U.S. entity, the International Arbitration Rules) of the American Arbitration Association (“AAA”). There will three (3) arbitrators (the Arbitration Tribunal), the first of which will be appointed by the claimant in its notice of arbitration, the second of which will be appointed by the respondent within thirty (30) days of the appointment of the first arbitrator and the third of which will be jointly appointed by the party-appointed arbitrators within thirty (30) days thereafter. The arbitration will be conducted in English. The Arbitration Tribunal will not have the authority to award punitive damages to either party. Each party will bear its own expenses, but the parties shall share equally the expenses of the Arbitration Tribunal and the AAA. This arbitration will be enforceable, and any arbitration award will be final, and judgement thereon may be entered in any court of competent jurisdiction. The arbitration will be held in New York, NY or other location as is mutually agreed by the parties. Notwithstanding the forgoing, claims for preliminary injunctive relief, other pre-judgment remedies and claims for Client’s failure to pay for Services in accordance with this arbitration may be brought in a state or federal court in the United States with jurisdiction over the subject matter and parties.
    16. Termination Rights.
      1. Termination for Convenience. Either party may terminate this Agreement for convenience at any time upon written notice to the other party.  If there are any active Proposals or Statements of Services, termination shall be effective upon the expiration or termination of the last Proposal or Statement of Statement of Services.  If there are no active Statements of Services, termination shall be effective upon receipt of the written notice.
      2. Termination for Breach. Either party may terminate this Agreement or any individual Statements of Services in accordance with subsection 27. b. i (in certain circumstances where an opportunity to cure must be provided) or subsection 27.b.ii (in certain circumstances where an opportunity to cure is not available):
        1. Cure. If the other party breaches any material provision of this Agreement or any Statement of Services and fails to cure such breach within thirty (30) days of receipt of notice of such breach from the non-breaching party (“Cure Period”). The notice from the non-breaching party shall specify the basis on which the Agreement or Statement of Services is being terminated, including a description of the breach and how the breach can be cured within the Cure Period.  If the breaching party fails to cure the breach within the Cure Period, then termination shall be effective on the thirty-first (31st) day following receipt of such notice by the breaching party.
        2. No Opportunity to Cure. If: (a) the other party breaches any representation or warranty in this Agreement; (b) any representation or warranty is inaccurate, incomplete, false or misleading in any material aspect; or (c) the breach is of a type or nature that is not capable of being cured within such time period (such as, by way of example and not limitation, an obligation relating to Confidential Information).  The notice from the non-breaching party shall specify the basis on which the Agreement or Statements of Services is being terminated, including a description of any breach.  Termination shall be effective immediately upon receipt of such notice by the breaching party.
      3. Termination for Financial Insecurity. Either party may terminate this Agreement and all Statements of Services upon written notice if the other party ceases conducting business in the normal course, admits its insolvency, makes an assignment for the benefit of creditors, or becomes the subject of any judicial or administrative proceedings in bankruptcy, receivership, or reorganization.  Termination shall be effective upon receipt of the written notice.
      4. Reactivation of Managed Services. The Client may request that NetConnect restart the performance of any suspended Services at any time. NetConnect will issue an updated Change Order for the execution by both parties. If the Client requests any changes to the Services that were originally provided to the Client prior to the suspension of Services, then revised pricing will be included in the Change Order.
      5. Transfer of Managed Services. NetConnect may assist the Client with the transfer of the Services to another provider. NetConnect shall issue a Proposal setting forth the transfer assistance Services requested by the Client. Transition services are not part of the Services and additional charges will apply.
      6. Due Immediately. All payment payable to NetConnect under this Agreement shall become due immediately upon its termination, despite any other provision.
    17. Software Compliancy. Unless otherwise stated in this Agreement, NetConnect is not responsible for making the Client computer software license compliant. NetConnect’s responsibility is to inform the Client of any license non-compliance and acknowledge such non-compliance by proposing solutions and accompanying costs.
    18. Survival. Those provisions that by their nature should survive termination of this Agreement, will survive termination.  Without limiting the generality of the foregoing statement, Sections 15 (Representations and Warranties); 16 (Indemnification); and 17 (Limitation of Liability) shall survive any termination of this Agreement.
    19. Miscellaneous
      1. Export Compliance. Client agrees to comply with all export and re-export control laws and regulations as may be applicable to any transaction hereunder, including, without limitation, the Export Administration Regulations promulgated by the United States Department of Commerce, the International Traffic in Arms Regulations promulgated by the United States Department of State, and any of the regulations promulgated by the Office of Foreign Assets Control of the United States Department of the Treasury.  Client shall be solely responsible for such compliance with respect to Client Data and the Content that it provides to NetConnect.
      2. Insurance. Each party will obtain and maintain in effect during the term of this Agreement, a policy or policies of comprehensive general liability, workers’ compensation, professional liability, cyber liability, and other types of insurance each deems necessary to protect their individual interests from such claims, liabilities, or damages which may arise out of the performance of their respective obligations under this Agreement.  For the avoidance of doubt, each party is solely responsible for insuring its personal property wherever located and each party acknowledges that neither of them will insure the property of the other while it is in transit or in the possession of theopposite party.
      3. Agreement Binding on Successors. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assignees of the respective parties.
      4. Relationship of Parties. The parties hereto are independent contractors and this Agreement shall not create or imply an agency relationship between the parties.  Pursuant to and during the term of this Agreement, NetConnect may, from time to time, request that the Client execute such instruments and documents appointing NetConnect an agent of the Client for a specific limited purpose.  An officer of Client shall, in a timely manner, execute and deliver to NetConnect or the third party requiring the same, such instruments designating NetConnect as Client’s agent to the extent required by NetConnect to manage and perform to Services provided by it under this Agreement.
      5. NetConnect may engage subcontractors to perform services under any Statements of Services.  Except as provided herein, NetConnect shall be fully responsible for the acts of all subcontractors to the same extent it is responsible for the acts of its own employees.
      6. Severability. In the event that any of the provisions of this Agreement are declared or held by a court of competent jurisdiction invalid, illegal or unenforceable, the unaffected portions of this Agreement shall be unimpaired and remain in full force and effect. In the event of such a ruling, the parties shall negotiate in good faith a substitute for the provision declared invalid, illegal or unenforceable.
      7. Active Negotiations. Each party acknowledges that this Agreement has been the subject of active and complete negotiations, and that this Agreement should not be construed in favor of or against any party by reason of the extent to which any party or its professional advisors participated in the preparation of this Agreement.
      8. Captions. The descriptive headings of the Sections and subsections of this Agreement are for convenience only, do not constitute a part of this Agreement, and do not affect this Agreement’s construction or interpretation.
      9. Amendments. No waiver of any right or remedy and no amendment, change or modification of the terms of this Agreement shall be binding on a party unless it is in writing and is signed by the party to be charged.
      10. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be considered an original but all of which together will constitute one agreement.
      11. Publicity. Nothing contained in this Agreement shall be interpreted so as to permit NetConnect or Client to publicize its business relationship with the other party or the nature of the Services performed for Client, without the other party’s prior written consent.
      12. No Third-Party Beneficiaries. Except as provided in Section 16 (Indemnification), this Agreement does not and is not intended to confer any enforceable rights or remedies upon any person or party other than the parties.
      13. Entire Agreement. This Agreement, including all Statements of Services and all schedules, attachments and/or other documents attached hereto or incorporated by reference constitutes the final agreement between the parties. It is the complete and exclusive expression of the parties’ agreement on the matters contained in this Agreement.  All prior and contemporaneous negotiations and agreements between the parties on the matters contained in this Agreement are expressly superseded by this Agreement. The provisions of this Agreement may not be explained, supplemented or qualified through evidence of trade usage or a prior course of dealings. In entering into this Agreement, neither party has relied upon any statement, representation, warranty or agreement of the other party except for those expressly contained in this Agreement. There are no conditions precedent to the effectiveness of this Agreement, other than those expressly stated in this Agreement.

 

 

ADDENDUM A:
TERMS SPECIFIC TO PRODUCT SALES ONLY

This Addendum A: Terms Specific to Product Sales Only (“Addendum A”) applies to any order for software, hardware, or Third-Party Services (“Products”) made by Client, for its own internal use and not for resale, pursuant to a quotation issued by NetConnect (“Proposal”). As used in this Addendum A, the term “Third Party Services” refers to services, which although ordered from NetConnect, are procured from and supplied by a third party (i.e., NetConnect does not directly perform or control the work) and are therefore considered Product. Any such orders shall be subject to the terms and conditions of the Addendum A.

  1. Product Returns and Warranty Assistance.
  • Client acknowledges that NetConnect is reselling all Products purchased by Client and that Products are manufactured and/or delivered by a third party.
  • To the extent available, NetConnect shall pass through to Client the manufacturer’s warranties for each Product and agrees to facilitate the manufacturer’s return policies. In no event will NetConnect provide return or warranty coverage beyond that provided by the manufacturer. Products that are accepted for return are subject to the manufacturer’s applicable restocking fee(s).
  • Client acknowledges that the terms and conditions governing the use of Products shall be solely between Client and the manufacturer of such Products.
  1. Product Use and Product Warranty Disclaimer. Client will not use the Products for use in life support, life sustaining, nuclear or other applications in which failure of such Products could reasonably be expected to result in personal injury, loss of life, or catastrophic property damage.  Client agrees that NetConnect is not liable for any claim or damage arising from such use.

NETCONNECT MAKES NO WARRANTIES OF ANY KIND WITH REGARD TO THE PRODUCTS. NETCONNECT DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, AS TO THE PRODUCTS, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT.

  1. Shipment and Risk of Loss for Product Sales. All shipments of Products to Client will be FOB point of shipment. Insurance coverage, freight charges, transportation costs, and all other expenses applicable to shipment to Client’s identified point of delivery will be the responsibility of Client. Risk of loss will pass to Client upon delivery of the Products to the common carrier (regardless of who pays such common carrier) or Client’s representative at the point of shipment.
  2. Product Security Interest. Client grants NetConnect a security interest in the Products detailed in each Proposal, as security for payment in full. Client authorizes NetConnect to file and/or record any documents it deems necessary to perfect this security interest.
  3. Permitting Compliance for Product Sales. Client will obtain all licenses, permits, and approvals required by any governmental agency, foreign or domestic, having jurisdiction over the transaction.
  4. Price and Payment. The prices set forth in any Proposal are exclusive of all taxes, duties, licenses, and tariffs, payment of which shall be Client’s obligation. Prices quoted are firm for thirty (30) days unless otherwise specified in the Proposal. Payment is due thirty (30) days from the date of the invoice. In the event Client chooses to finance its purchase using a third party, Client remains liable for payment to NetConnect until NetConnect receives complete payment from such third party. All payments will be made in US currency. Client will pay interest in the amount of one and one-half percent (1.5%) per month, or the maximum allowed by law whichever is lower, on any outstanding balance owed.
  5. Export. Client agrees to comply with all export and re-export control laws and regulations as may be applicable to any transaction hereunder, including, without limitation, the Export Administration Regulations promulgated by the United States Department of Commerce, the International Traffic in Arms Regulations promulgated by the United States Department of State, and any of the regulations promulgated by the Office of Foreign Assets Control of the United States Department of the Treasury. Client covenants that it will not, either directly or indirectly, sell, (re)export (including, without limitation, any deemed (re)export as defined by applicable law), transfer, divert, or otherwise dispose of any Product, or related software or technology, to: (i) any country or region of a country (or nationals thereof) subject to antiterrorism controls, or a U.S. embargo, (ii) any destination prohibited (without a valid export license or other authorization) by the laws or regulations of the United States, or (iii) any person, entity, vessel, or aircraft identified on the Consolidated Screening List, a downloadable file of which is accessible at http://export.gov/ecr/eg_main_023148.asp (or utilize any such person, entity, vessel, or aircraft in connection with the activities listed above), without obtaining prior authorization from the competent government authorities, as required by the above-mentioned laws and regulations. Client certifies, represents, and warrants that no Product shall be used for any military or defense purpose, including, without limitation, being used to design, develop, engineer, manufacture, produce, assemble, test, repair, maintain, modify, operate, demilitarize, destroy, process, or use military or defense articles. Notwithstanding any sale of Products by NetConnect, Client acknowledges that it is not relying on NetConnect for any advice or counseling on export control requirements. Client agrees to indemnify, to the fullest extent permitted by law, NetConnect from and against any fines, penalties and reasonable attorney fees that may arise as a result of Client’s breach of this Section.
  6. Cancelation. The purchase of Products may be canceled by Client only upon written approval of NetConnect and upon terms that indemnify NetConnect against all losses related to such cancelation.
  7. Limitation of Liability. NO MONETARY RECOVERY IS AVAILABLE FROM NETCONNECT FOR WARRANTY CLAIMS. IN ADDITION, IN NO EVENT WILL NETCONNECT’S LIABILITY TO CLIENT EXCEED THE PURCHASE PRICE PAID FOR THE PRODUCT THAT IS THE BASIS FOR THE PARTICULAR CLAIM. NETCONNECT WILL NOT, IN ANY EVENT, BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, OR PUNITIVE DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOST REVENUES, LOST OR DAMAGED DATA, AND LOSS OF BUSINESS OPPORTUNITY), HOWEVER CAUSED, ARISING OUT OF THE USE OF OR INABILITY TO USE THE PRODUCT, OR IN ANY WAY CONNECTED TO THIS ADDENDUM A, EVEN IF NETCONNECT HAS BEEN ADVISED OF SUCH DAMAGES AND EVEN IF DIRECT DAMAGES DO NOT SATISFY A REMEDY. THE FOREGOING LIMITATION OF LIABILITY WILL APPLY WHETHER ANY CLAIM IS BASED UPON PRINCIPLES OF CONTRACT, WARRANTY, NEGLIGENCE, INFRINGEMENT OR OTHER TORT, BREACH OF ANY STATUTORY DUTY, PRINCIPLES OF INDEMNITY, CONTRIBUTION, OR OTHERWISE.