PHONE IQ, INC. – Master Services Agreement


This Services Agreement (this "Agreement"), effective upon execution of Service Level  Agreement demonstrating the Statement of Work (the "Effective Date"), is by and between Phone  IQ, Inc., a Texas corporation, with offices located at 8800 Broadway Street, Suite 204, San  Antonio, Texas 78217 ("Service Provider") and Customer ("Customer" and together with  Service Provider, the "Parties", and each a "Party").
WHEREAS Service Provider has the capability and capacity to provide certain All-in-One cloud  phone system and call center software for companies that run on Salesforce; and
WHEREAS Customer desires to retain Service Provider to provide the said services, and Service  Provider is willing to perform such services under the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set  forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, Service Provider and Customer agree as follows:
1. Services. Service Provider shall provide to Customer the services (the "Services") set  out in one or more statements of work to be issued by Customer and accepted by Service Provider  (each, a "Statement of Work"). The initial accepted Statement of Work will be reduced to a  Service Level Agreement. Additional Statements of Work shall be deemed issued and accepted  only if signed by the Service Provider Contract Manager and the Customer Contract Manager,  appointed pursuant to Section 2.1(a) and Section 3.1, respectively.
2. Service Provider Obligations. Service Provider shall:
2.1 Designate employees or contractors that it determines, in its sole discretion, to  be capable of filling the following positions:
(a) A primary contact to act as its authorized representative with respect to  all matters pertaining to this Agreement (the "Service Provider Contract Manager").
(b) A number of employees or contractors that it deems sufficient to perform  the Services set out in each Statement of Work, (collectively, with the Service Provider  Contract Manager, "Provider Representatives").
2.2 Make no changes in Provider Representatives except:
(a) Following notice to Customer.
(b) Upon the resignation, termination, death or disability of an existing  Provider Representative.
(c) At the reasonable request of Customer, in which case Service Provider  shall use reasonable efforts to appoint a replacement at the earliest time it determines to  be commercially viable.
3. Customer Obligations. Customer shall:
3.1 Designate one of its employees or agents to serve as its primary contact with  respect to this Agreement and to act as its authorized representative with respect to matters  pertaining to this Agreement (the "Customer Contract Manager"), with such designation to  remain in force unless and until a successor Customer Contract Manager is appointed.
3.2 Require that the Customer Contract Manager respond promptly to any  reasonable requests from Service Provider for instructions, information or approvals required  by Service Provider to provide the Services.
3.3 Cooperate with Service Provider in its performance of the Services and provide  access to Customer's premises, employees, contractors, and equipment as required to enable  Service Provider to provide the Services.
3.4 Take all steps necessary, including obtaining any required licenses or consents,  to prevent Customer-caused delays in Service Provider's provision of the Services.
4. Fees and Expenses.
4.1 In consideration of the provision of the Services by the Service Provider and the  rights granted to Customer under this Agreement, Customer shall pay the fees set out in  Service Provider's then current fee schedule, as published. Payment to Service Provider of  such fees and the reimbursement of expenses pursuant to this Section 4 shall constitute  payment in full for the performance of the Services. Unless otherwise provided in the  applicable Statement of Work, said fee will be payable within 10 days of receipt by the  Customer of an invoice from Service Provider but in no event more than 10 days after  completion of the Services performed pursuant to the applicable Statement of Work.
4.2 Customer shall reimburse Service Provider for all reasonable expenses incurred  in accordance with the Statement of Work, within 10 days of receipt by the Customer of an  invoice from Service Provider accompanied by receipts and reasonable supporting  documentation.  
4.3 Customer shall be responsible for all sales, use and excise taxes, and any other  similar taxes, duties and charges of any kind imposed by any federal, state or local  governmental entity on any amounts payable by Customer hereunder; and to the extent  Service Provider is required to pay any such sales, use, excise, or other taxes or other duties  or charges, Customer shall reimburse Service Provider in connection with its payment of fees  and expenses as set forth in this Section 4. Notwithstanding the previous sentence, in no event  shall Customer pay or be responsible for any taxes imposed on, or regarding, Service  Provider’s income, revenues, gross receipts, personnel, or real or personal property or other  assets.
4.4 Except for invoiced payments that the Customer has successfully disputed, all  late payments shall bear interest at the lesser of (a) the rate of 10% per month and (b) the  highest rate permissible under applicable law, calculated daily and compounded monthly.  Customer shall also reimburse Service Provider for all costs incurred in collecting any late
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payments, including, without limitation, attorneys' fees. In addition to all other remedies  available under this Agreement or at law (which Service Provider does not waive by the  exercise of any rights hereunder), Service Provider shall be entitled to suspend the provision  of any Services if the Customer fails to pay any amounts when due hereunder and such failure  continues for 10 days following written notice thereof.
5. Limited Warranty and Limitation of Liability.
5.1 Service Provider warrants that it shall perform the Services:  
(a) In accordance with the terms and subject to the conditions set out in the  respective Statement of Work and this Agreement.
(b) Using personnel of commercially reasonable skill, experience and  qualifications.
(c) In a timely, workmanlike, and professional manner in accordance with  generally recognized industry standards for similar services.
5.2 Service Provider's sole and exclusive liability and Customer's sole and exclusive  remedy for breach of this warranty shall be as follows:
(a) Service Provider shall use reasonable commercial efforts to promptly  cure any such breach; provided, that if Service Provider cannot cure such breach within  a reasonable time (but no more than 30 days) after Customer's written notice of such  breach, Customer may, at its option, terminate the Agreement by serving written notice  of termination in accordance with Section 8.2.
(b) In the event the Agreement is terminated pursuant to Section 5.2(a) above, Service Provider shall within 30 days after the effective date of termination,  refund to Customer any fees paid by the Customer as of the date of termination for the  Service or Deliverables (as defined in Section 6 below), less a deduction equal to the  fees for receipt or use of such Deliverables or Service up to and including the date of  termination on a pro-rated basis.
(c) The foregoing remedy shall not be available unless Customer provides  written notice of such breach within 30 days after delivery of such Service or  Deliverable to Customer.
5.3 SERVICE PROVIDER MAKES NO WARRANTIES EXCEPT FOR THAT  PROVIDED IN SECTION 5.1, ABOVE. ALL OTHER WARRANTIES, EXPRESS AND  IMPLIED, ARE EXPRESSLY DISCLAIMED.
6. Intellectual Property. All intellectual property rights, including copyrights, patents,  patent disclosures and inventions (whether patentable or not), trademarks, service marks, trade  secrets, know-how and other confidential information, trade dress, trade names, logos, corporate  names and domain names, together with all of the goodwill associated therewith, derivative works  and all other rights (collectively, "Intellectual Property Rights") in and to all documents, work  product, and other materials that are delivered to Customer under this Agreement or prepared by  or on behalf of the Service Provider in the course of performing the Services (collectively, the  "Deliverables") except for any Confidential Information of Customer or customer materials shall  be owned by Service Provider. Service Provider hereby grants Customer a license to use all  Intellectual Property Rights in the Deliverables free of additional charge and on a non-exclusive,
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worldwide, non-transferable, non-sublicensable, fully paid-up, royalty-free and perpetual basis to  the extent necessary to enable Customer to make reasonable use of the Deliverables and the  Services.
7. Confidentiality. From time to time during the Term of this Agreement, either Party (as  the "Disclosing Party") may disclose or make available to the other Party (as the "Receiving  Party"), non-public, proprietary, and confidential information of Disclosing Party that, if disclosed  in writing or other tangible form is clearly labeled as "confidential," or if disclosed orally, is  identified as confidential when disclosed and within 10 days thereafter, is summarized in writing  and confirmed as confidential ("Confidential Information"); provided, however, that  Confidential Information does not include any information that: (a) is or becomes generally  available to the public other than as a result of Receiving Party's breach of this Section 7; (b) is or  becomes available to the Receiving Party on a non-confidential basis from a third-party source  that, to the Receiving Party's knowledge, was not legally or contractually restricted from disclosing  such information; (c) the Receiving Party establishes by documentary evidence, was in Receiving  Party's possession prior to Disclosing Party's disclosure hereunder; or (d) the Receiving Party  establishes by documentary evidence, was or is independently developed by Receiving Party  without using any of the Disclosing Party's Confidential Information. The Receiving Party shall:  (x) protect and safeguard the confidentiality of the Disclosing Party's Confidential Information  with at least the same degree of care as the Receiving Party would protect its own Confidential  Information, but in no event with less than a commercially reasonable degree of care; (y) not use  the Disclosing Party's Confidential Information, or permit it to be accessed or used, for any purpose  other than to exercise its rights or perform its obligations under this Agreement; and (z) not disclose  any such Confidential Information to any person or entity, except to the Receiving Party's Group  who need to know the Confidential Information to assist the Receiving Party, or act on its behalf,  to exercise its rights or perform its obligations under this Agreement.
If the Receiving Party is required by applicable law or legal process to disclose any  Confidential Information, it shall, prior to making such disclosure, use commercially reasonable  efforts to notify Disclosing Party of such requirements to afford Disclosing Party the opportunity  to seek, at Disclosing Party’s sole cost and expense, a protective order or other remedy. For  purposes of this Section 7 only, "Receiving Party's Group" shall mean the Receiving Party’s  affiliates and its or their employees, officers, directors, shareholders, partners, members, managers,  agents, independent contractors, service providers, sublicensees, subcontractors, attorneys,  accountants, and financial advisors.
8. Term, Termination, and Survival.
8.1 This Agreement shall commence as of the Effective Date and shall continue  thereafter for a period of One year unless sooner terminated pursuant to Section 8.2 or Section  8.3.
8.2 Either Party may terminate this Agreement, effective upon written notice to the  other Party (the "Defaulting Party") if the Defaulting Party:
(a) Materially breaches this Agreement, and the Defaulting Party does not  cure such breach within 30 days after receipt of written notice of such breach, or such material breach is incapable of cure.
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(b) Becomes insolvent or admits its inability to pay its debts generally as  they become due.
(c) Becomes subject, voluntarily or involuntarily, to any proceeding under  any domestic or foreign bankruptcy or insolvency law, which is not fully stayed within  seven business days or is not dismissed or vacated within 45 business days after filing.
(d) Is dissolved or liquidated or takes any corporate action for such purpose. (e) Makes a general assignment for the benefit of creditors.
(f) Has a receiver, trustee, custodian, or similar agent appointed by order of  any court of competent jurisdiction to take charge of or sell any material portion of its  property or business.
8.3 Notwithstanding anything to the contrary in Section 8.2(a), Service Provider  may terminate this Agreement before the expiration date of the Term on written notice if  Customer fails to pay any amount when due hereunder: (a) and such failure continues for 10  days after Customer's receipt of written notice of nonpayment; or (b) more than 2 times in any  2 month period.
8.4 The rights and obligations of the Parties set forth in this Section 8.4 and in  Section 16 and Section 18, and any right or obligation of the Parties in this Agreement which,  by its nature, should survive termination or expiration of this Agreement, will survive any  such termination or expiration of this Agreement.
9. Limitation of Liability.
9.1 IN NO EVENT SHALL SERVICE PROVIDER BE LIABLE TO CUSTOMER  OR TO ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE, OR PROFIT OR  LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR ANY CONSEQUENTIAL,  INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, OR PUNITIVE DAMAGES  WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING  NEGLIGENCE), OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGE  WAS FORESEEABLE AND WHETHER OR NOT SERVICE PROVIDER HAS BEEN  ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING  THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL  PURPOSE.  
9.2 IN NO EVENT SHALL SERVICE PROVIDER'S AGGREGATE LIABILITY  ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT  OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE),  OR OTHERWISE, EXCEED THE AGGREGATE AMOUNTS PAID OR PAYABLE TO  SERVICE PROVIDER PURSUANT TO THIS AGREEMENT.
10. Entire Agreement. This Agreement, including and together with any related Statements  of Work, exhibits, schedules, attachments, and appendices, constitutes the sole and entire  agreement of the Parties with respect to the subject matter contained herein, and supersedes all  prior and contemporaneous understandings, agreements, representations, and warranties, both  written and oral, regarding such subject matter. The parties acknowledge and agree that if there is  any conflict between the terms and conditions of this Agreement and the terms and conditions of  any Statement of Work, the terms and conditions of this Agreement shall supersede and control.
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11. Notices. All notices, requests, consents, claims, demands, waivers, and other  communications under this Agreement (each, a "Notice") must be in writing and addressed to the  other Party at its address set forth below (or to such other address that the receiving Party may  designate from time to time in accordance with this Section). Unless otherwise agreed herein, all  Notices must be delivered by personal delivery, nationally recognized overnight courier or  certified or registered mail (in each case, return receipt requested, postage prepaid). Except as  otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the receiving  Party; and (b) if the Party giving the Notice has complied with the requirements of this Section 11.
Notice to Customer: ___________________
___________________
Attention: _____________________.
Notice to Service Provider: 8800 Broadway Street, Suite 204 San Antonio, TX 78217
Attention: Chief Executive Officer
12. Severability. If any term or provision of this Agreement is found by a court of competent  jurisdiction to be invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or  unenforceability shall not affect any other term or provision of this Agreement or invalidate or  render unenforceable such term or provision in any other jurisdiction. Upon a determination that  any term or provision is invalid, illegal, or unenforceable, the Parties shall negotiate in good faith  to modify this Agreement to effect the original intent of the Parties as closely as possible in order  that the transactions contemplated hereby be consummated as originally contemplated to the  greatest extent possible.
13. Amendments. No amendment to or modification of this Agreement is effective unless  it is in writing, identified as an amendment to this Agreement and signed by an authorized  representative of each Party.
14. Waiver. No waiver by any Party of any of the provisions of this Agreement shall be  effective unless explicitly set forth in writing and signed by the Party so waiving. Except as  otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any right,  remedy, power, or privilege arising from this Agreement shall operate or be construed as a waiver  thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder  preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or  privilege.
15. Assignment. Customer shall not assign, transfer, delegate or subcontract any of its rights  or delegate any of its obligations under this Agreement without the prior written consent of Service  Provider. Any purported assignment or delegation in violation of this Section 15 shall be null and  void. No assignment or delegation shall relieve the Customer of any of its obligations under this  Agreement. Service Provider may assign any of its rights or delegate any of its obligations to any  affiliate or to any person acquiring all or substantially all of Service Provider's assets without  Customer's consent.
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16. Successors and Assigns. This Agreement is binding on and inures to the benefit of the  Parties to this Agreement and their respective permitted successors and permitted assigns.
17. Relationship of the Parties. The relationship between the Parties is that of independent  contractors. The details of the method and manner for performance of the Services by Service  Provider shall be under its own control, Customer being interested only in the results thereof. The  Service Provider shall be solely responsible for supervising, controlling, and directing the details  and manner of the completion of the Services. Nothing in this Agreement shall give the Customer  the right to instruct, supervise, control, or direct the details and manner of the completion of the  Services. The Services must meet the Customer’s final approval and shall be subject to the  Customer’s general right of inspection throughout the performance of the Services and to secure  satisfactory final completion. Nothing contained in this Agreement shall be construed as creating  any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary  relationship between the parties, and neither party shall have authority to contract for or bind the  other party in any manner whatsoever.
18. No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this  Agreement and their respective permitted successors and assigns and nothing in this Agreement,  express or implied, confers on any other Person any legal or equitable right, benefit, or remedy of  any nature whatsoever under or by reason of this Agreement.
19. Choice of Law. This Agreement and all related documents including all exhibits  attached hereto, and all matters arising out of or relating to this Agreement, whether sounding in  contract, tort, or statute are governed by, and construed in accordance with, the laws of the State  of Texas, United States of America (including its statutes of limitations), without giving effect to  the conflict of laws provisions thereof to the extent such principles or rules would require or permit  the application of the laws of any jurisdiction other than those of the State of Texas.
20. Choice of Forum. Each Party irrevocably and unconditionally agrees that it will not  commence any action, litigation, or proceeding of any kind whatsoever against the other Party in  any way arising from or relating to this Agreement, including all exhibits, schedules, attachments, and appendices attached to this Agreement, and all contemplated transactions, including contract,  equity, tort, fraud, and statutory claims, in any forum other than U.S. District Court, Western  District of Texas or, if such court does not have subject matter jurisdiction, the courts of the State  of Texas sitting in Bexar County, and any appellate court from any thereof. Each Party irrevocably  and unconditionally submits to the exclusive jurisdiction of such courts and agrees to bring any  such action, litigation, or proceeding only in U.S. District Court, Western District of Texas or, if  such court does not have subject matter jurisdiction, the courts of the State of Texas sitting in  Bexar County. Each Party agrees that a final judgment in any such action, litigation, or proceeding  is conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other  manner provided by law.
21. WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES THAT ANY  CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT, INCLUDING  EXHIBITS, SCHEDULES, ATTACHMENTS, AND APPENDICES ATTACHED TO THIS  AGREEMENT, IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND,  THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES  ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION  ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS,
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SCHEDULES, ATTACHMENTS, OR APPENDICES ATTACHED TO THIS AGREEMENT,  OR THE TRANSACTIONS CONTEMPLATED HEREBY.
22. Counterparts. This Agreement may be executed in counterparts, each of which is  deemed an original, but all of which together are deemed to be one and the same agreement.  Notwithstanding anything to the contrary in Section 11, a signed copy of this Agreement delivered  by facsimile, email, or other means of electronic transmission is deemed to have the same legal  effect as delivery of an original signed copy of this Agreement.
23. Force Majeure. No Party shall be liable or responsible to the other Party, or be deemed  to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or  performing any term of this Agreement (except for any obligations of the Customer to make payments to Service Provider hereunder), when and to the extent such failure or delay is caused  by or results from acts beyond the impacted party's ("Impacted Party") control, including, without  limitation, the following force majeure events ("Force Majeure Event(s)"): (a) acts of God; (b) flood, fire, earthquake, or explosion; (c) war, invasion, hostilities (whether war is declared or not),  terrorist threats or acts, riot, or other civil unrest; (d) government order, law, or actions; (e) embargoes or blockades in effect on or after the date of this Agreement; (f) national or regional  emergency; (g) strikes, labor stoppages, or slowdowns, or other industrial disturbances; (h) shortage of adequate power or transportation facilities; and (i) other similar events beyond the  control of the Impacted Party.
The Impacted Party shall give notice within 10 days of the Force Majeure Event to the  other Party, stating the period of time the occurrence is expected to continue. The Impacted Party  shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure  Event are minimized. The Impacted Party shall resume the performance of its obligations as soon  as reasonably practicable after the removal of the cause. In the event that the Impacted Party's  failure or delay remains uncured for a period of 10 days following written notice given by it under  this Section, the other Party may thereafter terminate this Agreement upon 10 days' written notice.
[SERVICES AGREEMENT - END]