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Equipment Maintenance Agreement

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Introduction
Description
Use
Table of Contents

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Introduction

A computer system generally occupies an important place in the functioning of a business, as the information it generates on a daily basis is used to monitor the health and performance of the business. Given the importance of this information, the system that generates it supports one of the most vital function of the business. Consequently, it is very important to maintain it in operating condition, as the business cannot afford its failure.

Since preventive maintenance is vital in this case, this document establishes the legal, administrative and financial framework of a maintenance service agreement entered into with a third party.

Description

The Equipment Maintenance Agreement is the legal instrument by which a person operating a maintenance and repair company, the SUPPLIER, undertakes toward a second person, the CLIENT, to provide such services in exchange for payment.

Use

We recommend the use of this document to regulate the legal relationship between a client, wishing to maintain its equipment in good working condition and a business that specializes in such maintenance services.

One might think that this document applies only to businesses with a large IT system, but this is not the case, as when a business begins to depend on a computer system, it should attempt to reduce the possible consequences of this dependence. This is the purpose of the Equipment Maintenance Agreement. Within a business, the responsibility for equipment maintenance generally falls on the Chief Information Officer (see document C03.400 of the Business Precedents) who will decide whether such an agreement is required. Note that the grant of the equipment maintenance agreement is often made in parallel with the execution of an Equipment Sale Agreement (see document I01.200 of the Business Precedents) and Programming Agreement (see document I03.200 of the Business Precedents).

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Authorized Location
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Confidential Information
0.01.07 Duration
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Intellectual Property
0.01.13 Legal Representatives
0.01.14 Maintenance Services
0.01.15 Other Equipment
0.01.16 PARTY
0.01.17 Person
0.01.18 Preventive Maintenance
0.01.19 Prime Rate
0.01.20 Related Person
0.01.21 Repairs
0.01.22 Subject Equipment
0.01.23 Spare Parts
0.01.24 Subcontractor
0.01.25 Subsidiary
0.01.26 Year
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Service
1.02 Conditions
1.02.01 Required by CLIENT
1.02.02 Required by SUPPLIER
1.02.03 Choice
2.00 CONSIDERATION
2.01 Subject Equipment
2.01.01 Annual Fee
2.01.02 Adjustment of Fee
2.01.03 Procedure
2.02 Other Equipment
3.00 TERMS OF PAYMENT
3.01 Fee
3.02 Invoicing
3.03 Imputation
3.04 Payment Location
3.05 Waiver of Compensation
3.05.01 By CLIENT
3.05.02 Compensation by SUPPLIER
3.06 Interest
3.07 Loss of Term
4.00 SECURITY
4.01 In favour of SUPPLIER
4.02 In favour of CLIENT
4.03 Letter of Credit
4.04 Performance Bond
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE SUPPLIER
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
7.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE SUPPLIER
9.01 Preventive Maintenance
9.01.01 Undertaking
9.01.02 Schedule
9.02 Repairs
9.02.01 Undertaking
9.02.02 Schedule
9.03 Spare Parts
9.04 Maintenance Services Supervision
9.05 Compliance with Laws and Standards
9.06 Best Practices
9.07 Modifications
9.08 Liability
9.08.01 No Liability
9.08.02 Notice of Risk
9.08.03 Use in Compliance
9.09 Subcontracting
9.10 Additional Equipment
9.10.01 No Liability
9.10.02 Notice of Risk
9.10.03 Use in Compliance
9.10.04 Subcontractor
9.10.05 Maintenance on Other Equipment
9.10.06 Costs
9.11 Prior Adjustments
10.00 DUTIES AND OBLIGATIONS OF THE CLIENT
10.01 Accessibility
10.01.01 Maintenance Personnel
10.01.02 Workspace
10.01.03 Billing
10.02 Moving Prohibition
10.02.01 Prior Consent
10.02.02 Supervision
10.02.03 Reconditioning
10.03 Other Equipment
10.04 Reserved Space
10.05 Compliance
10.05.01 Conditions
10.05.02 Non-Compliance
10.05.03 Amendment
10.06 Non-solicitation of Staff
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other Party
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Resiliation
13.02.01 Without Notice
13.02.02 With Prior Notice from SUPPLIER
13.02.03 With Prior Notice from CLIENT
13.03 Change in Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.04 Survival
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE B – EXCERPT FROM A RESOLUTION OF THE CLIENT
SCHEDULE 0.01.03 – AUTHORIZED LOCATION(S)
SCHEDULE 0.01.22 – LIST OF THE SUBJECT EQUIPMENT
SCHEDULE 2.01 – ANNUAL FEE / DEADLINE
SCHEDULE 2.02 – HOURLY TARIFICATION GRID
SCHEDULE 4.03 – LETTER OF CREDIT
SCHEDULE 10.05 – TECHNICAL PROVISIONS
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Civil Law Version
Updated 14-02-2009
Québec
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