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PROFESSIONAL SERVICES AGREEMENT  
Long Version 
(version 1a)

PROFESSIONAL SERVICES AGREEMENT made as of Date August 15, 2005 which supersedes any and all current and past agreements, between Customer Name, a Company located in City, State, a division of  Customer Name (“COMPANY”), a  State Name Corporation with its principal place of business having an address of __________________, City name, State, ZIP CODE, and Allen Enterprises, (“SUPPLIER”), a sole independent Consultant  organized under the Commonwealth laws of Puerto Rico, having a place of business in San Juan, Puerto Rico.

W I T N E S S E T H:

            WHEREAS, SUPPLIER is qualified to render to COMPANY the professional services contemplated hereby; and

            WHEREAS, COMPANY has now and from time to time in the future may have the desire to engage SUPPLIER's professional services; and

            WHEREAS, SUPPLIER desires to render professional services to COMPANY on a non‑exclusive basis concerning such matters;

            NOW THEREFORE, in consideration of the premises and of the mutual promises and covenants herein contained, the parties hereto agree as follows:

1.         Services.  (a)  This Agreement constitutes an offer by COMPANY to SUPPLIER and the acceptance thereof by SUPPLIER to perform  Information Management Professional Consulting Services (“Services”) separately executed and incorporating by reference the terms and conditions of this Agreement.  The Services shall include, where applicable, the scope of work, the staffing, locations, deliverables, project assumptions, milestones, schedule and any other information relevant to the Services.  SUPPLIER represents and warrants that it is currently under no obligation to any third party, nor will it enter into any obligation to a third party during the term of Services, that would interfere with its rendering to COMPANY the Services.  The  parties agree that the focus and definition of Services may develop and change during its term and, if so, the parties by mutual agreement will redefine in writing such Services as needed.  (See Supplier’s Proposal of  Services on Exhibit A).

2.         Fees.  (a) In consideration of its acceptance of this Agreement and of its performance of the Services, COMPANY shall pay SUPPLIER at the rates contained in Exhibit A hereof.  In the absence of contrary terms in the Services, invoices shall be payable within thirty (30) days of receipt, expenses will be billed at SUPPLIER’s cost on a monthly basis and SUPPLIER agrees to notify COMPANY immediately upon learning that professional services or expenses cost estimates, if any, are going to be exceeded.  SUPPLIER agrees to use COMPANY’s travel service department when requested to do so by COMPANY. 

(b) COMPANY may, without breach, withhold payment of any amounts which are disputed in good faith if COMPANY delivers a written statement to SUPPLIER describing the basis of the dispute and the amount being withheld.

(c) COMPANY’s federal I.D. or social security number is ###-##-####.  COMPANY assumes all responsibility and liability for the payment of any taxes due on money received from COMPANY under this Agreement.  Payment hereunder shall represent full and complete compensation for all obligations assumed by the SUPPLIER under this Agreement.

3.         SUPPLIER Responsibilities.  SUPPLIER shall use its best efforts to provide the Services in accordance with the terms hereof, to keep COMPANY advised of the status of the Services, to permit any representative duly authorized in writing by COMPANY to review and observe from time to time said Services as are susceptible to such review, to provide COMPANY with such reports, descriptions, outlines, procedures and the like, as are appropriate to the nature of the Services contemplated and to keep records of hours worked and cost of materials used, as well as other reasonable out‑of‑pocket expenses, which records COMPANY's duly authorized representative may examine upon reasonable notice to SUPPLIER.  If SUPPLIER is granted a privileged account on COMPANY computer system(s), use of such account shall be in accordance with COMPANY’s policy(ies) and such account is subject to audit by COMPANY at any time.

4.         Confidential Information; Rights to Inventions and Copyrights.  (a)  Any information (i) disclosed by COMPANY to SUPPLIER or learned by SUPPLIER from COMPANY either orally, electronically, visually or in a document or other tangible form which is either identified as or should be reasonably understood to be confidential and/or proprietary, including, but not limited to, existing or contemplated machines, products, processes, techniques or know‑how, marketing plans and strategies, financial information and projections and customer and supplier lists and information and (ii) any proprietary or confidential information or data developed pursuant to the performance of the Services contemplated hereunder, shall not be disclosed by SUPPLIER or its employees, representatives or agents to others or used for SUPPLIER's own benefit without the prior written consent of COMPANY.  Notwithstanding the foregoing, information shall not be considered confidential, proprietary or sensitive only to the extent that such information (a) is already known to SUPPLIER and not subject to any confidentiality restrictions at the time it is obtained from COMPANY, (b) is or becomes publicly known through no wrongful act of SUPPLIER, or (c) is rightfully received by SUPPLIER from a third party without restriction on further disclosure.  In the event of a breach or a threatened breach of the terms and conditions of this section, COMPANY shall be entitled to immediate injunctive relief to prevent the use or disclosure of proprietary or confidential information, in addition to all other remedies available to it at law or equity.  All materials supplied to SUPPLIER by COMPANY, and any copies thereof, shall be returned to COMPANY within thirty (30) days after the completion of any work under the Agreement or within ten (10) days after COMPANY requests the return thereof.  Access to COMPANY's computer system(s) is granted solely for the work contracted and for no other purpose whatsoever.

(b) Any documentation, plans, specifications or other similar type deliverables created by SUPPLIER in connection with or during the performance of the Services shall be considered a work made for hire, to the fullest extent permitted by law and all right, title and interest therein, including the worldwide copyrights, shall be the property of COMPANY as the employer and party specially commissioning said work.  In the event that any said copyrightable work or portion thereof shall not be legally qualified as a work made for hire, or shall subsequently be so held to not be a work made for hire, SUPPLIER agrees to assign, and does hereby so assign to COMPANY, all right, title and interest in and to said work or portion thereof, including but not limited to the worldwide copyrights, extensions of such copyrights, and renewal copyrights therein, and further including all rights to reproduce the copyrighted work in copies or phonorecords, to prepare derivative works based on the copyrighted work, to distribute copies of the copyrighted work, to perform the copyrighted work publicly, to display the copyrighted work publicly, and to register the claim of copyright therein.  SUPPLIER, without charge to COMPANY, shall duly execute, acknowledge and deliver to COMPANY all such further papers, including assignments and applications for copyright registration or renewal, as may be necessary to enable COMPANY to publish or protect said words by copyright or otherwise in any and all countries and to vest title to said works in COMPANY, or its nominees, their successors or assigns, and shall render all such assistance as COMPANY may require in any proceeding or litigation involving the rights in said works.

[c]  The term “invention” shall mean any idea, concept, know-how, technique or copyrightable work, other than that covered in subsection (b) above, whether published or unpublished that SUPPLIER first conceives or reduces to practice while in performance of Services during the course of a project, and for which a patent, copyright, trademark or service mark application is filed.  Inventions will be treated as follows:

(1)If made by SUPPLIER, it shall remain the property of SUPPLIER.

(2)If made by COMPANY, it shall remain the property of COMPANY.

(3)If made by the personnel of both parties, it and all patent, copyright, trademark or service mark rights issued thereof shall be jointly owned by COMPANY and SUPPLIER without accounting.  Each party shall have the right to grant licenses to third parties or assign its rights therein without the consent of the other.

All licenses granted to either party, if any, will include the right to make, have made, use, have used, lease, sell and/or otherwise transfer any apparatus, and/or practice and have practiced any method and shall include the right to grant, directly or indirectly, revocable and irrevocable sublicenses to such party’s subsidiaries or affiliates.  Nothing contained in this Agreement shall be deemed to grant any license under any patent, copyright, trademark, service mark or other application as arising out of inventions created as a result of work performed outside of this Agreement.

(d) SUPPLIER shall not originate any publicity, news release, technical article or other public announcement, written or oral, whether to the public press or otherwise, relating to this Agreement or to performance hereunder or the existence of an arrangement between the parties without the prior written consent of COMPANY.

5.         Exhibits.          All personnel providing material portions of the Services must be approved by COMPANY in writing.  Personnel shall have adequately performed similar duties for other companies and possess not only the appropriate technical skills, but also the ability to communicate clearly to COMPANY and to follow directions.  COMPANY may reject personnel based on their work profile or, failure to successfully complete all COMPANY Safety , cGMP requirements and others as established, and once Services have commenced, due to his/her performance. Unless otherwise agreed to by COMPANY in writing, SUPPLIER will maintain continuity of personnel for the duration of an engagement, unless extended illness or employment termination prevent SUPPLIER from doing so. Each employee, representative or agent of SUPPLIER who performs work pursuant to this Agreement shall execute an agreement in the form of Exhibit A hereto.  SUPPLIER represents that it and its personnel providing services are not employees of any University or institution of higher learning.

6.         Term.  The term of this Agreement shall be from the date hereof to Date ____________.  Individual Services commencing prior to the termination date will be allowed to run to completion under these terms and conditions.  COMPANY reserves the right to terminate upon (5) days of written notice, at any time, any Services authorized by this Agreement; provided, however, that if SUPPLIER is not in breach of this Agreement COMPANY shall be obligated to pay SUPPLIER for services performed by SUPPLIER and cost of materials for which SUPPLIER has become obligated in connection with the contemplated services up to the date of such termination. SUPPLIER may only terminate a Service for breach; provided, however, that COMPANY shall not be deemed to be in default if it has been given written notice thereof and has cured said breach within thirty (30) days of receipt of the notification.  SUPPLIER's obligations under Section 4 and Section 7 shall survive the expiration or termination of this Agreement.

 7.         Insurance.  SUPPLIER and its permitted subcontractors agree to procure and maintain in full force and effect during the term of this Agreement valid and collectible insurance policies in connection with its activities as contemplated hereby which policies shall provide for the type of insurance and amounts of coverage as follows:

            (a) Comprehensive general liability insurance covering premises, products, completed operations, independent contractors, personal injury and blanket broad form contractual liability.  Minimum coverage required is:

            Bodily Injury                                                     $1,000,000 each person

                                                                                    $2,000,000 per occurrence

            Property Damage                                             $1,000,000 per occurrence

            or

            Bodily Injury & Property Damage                     $2,000,000 combined single limit,

                                                                                    per occurrence

           

 

            (b) Statutory workers’ compensation insurance with statutory limits for the States where any Services is to be provided.

            (c) Employers’ liability insurance with limits of not less than $500,000 per occurrence.

            (d) Comprehensive automobile liability insurance, for all owned, hired or used vehicles, covering bodily injury and property damage, with coverage identical to that in subsection (a) above.

            (e) Any insurance required by any employee benefit act or any applicable statute or governmental regulation.

            SUPPLIER will designate COMPANY as “additional insured” under each section of its Comprehensive General Liability and Automobile Liability policies.  Upon COMPANY's request, SUPPLIER shall provide to COMPANY a certificate of coverage or other written evidence reasonably satisfactory to COMPANY of such insurance coverage.  The evidences shall include the agreement for the insurer to give notice to COMPANY at least thirty (30) days prior to the effective date of any cancellation, lapse or material change in the policy.

 

8.         Warranty.  Supplier represents and warrants to COMPANY that:

            (a) The Services provided pursuant to this Agreement are of merchantable quality, conform to all aspects of any specifications provided by COMPANY or the manufacturer, or both, and is suitable for COMPANY’s intended uses and purposes in the ordinary course of its business to the extent that such uses and purposes are known or reasonably should be known to SUPPLIER;

            (b) The Services provided in connection with this Agreement will comply with all applicable Federal, State or Municipal statutes, laws, rules or regulations, permits, licenses and certificates, including those relating to occupational health and safety.  Without limiting the foregoing, SUPPLIER represents and warrants that it shall comply with all present and future statutes, laws, ordinances and regulations relating to the provision of the Services being provided hereunder, including, without limitation, those enforced by the Department of Labor under OSHA.

            (c) The performance of its obligations under this Agreement will not result in a violation or breach of, and will not conflict with or constitute a default under, its Certificate of Incorporation or corporate by laws or any agreement, contract, commitment or obligation to which SUPPLIER or any of its Affiliates is a party or by which it is bound;

            (e) Any software used by SUPPLIER in providing the Services does not infringe upon the Intellectual Property Rights of any third party;

            (f) Services shall be performed in a professional manner in accordance with industry standards and practices applicable to the performance of such Services;

            (g) All employees of SUPPLIER, and its permitted subcontractors, will obey facility safety and environmental standards; and

            (h) SUPPLIER shall have obtained all necessary permits, licenses and certifications, including for its employees, for operating and maintaining equipment and for performing Services.

All third party warranties and representations shall be for the benefit of COMPANY, its customers and the users of the products and/or services in which they may be incorporated.

 

9.        Indemnification.  Notwithstanding any provision(s) of SUPPLIER's proposal(s) attempting to limit the amount of SUPPLIER's liabilities, if any, SUPPLIER shall indemnify and hold harmless COMPANY and its Affiliates, and their officers, directors and employees, from and against any and all claims, losses, damages, judgments, costs, awards, expenses (including reasonable attorneys' fees) and liabilities of every kind (collectively, "Losses") arising out of or resulting from (i) any breach by SUPPLIER of any of its warranties, guarantees, representations, obligations or covenants contained herein and (ii) any negligent acts or omissions or the intentional or willful misconduct of any of SUPPLIER’s personnel. (iii) COMPANY’s  property, and arising directly or indirectly from SUPPLIER’s negligence or breach of any provision of this Agreement, (iv) any personal injury claim or loss arising, directly or indirectly, from SUPPLIER’s negligence or breach of any provision of this Agreement, (v) SUPPLIER’s breach of any confidentiality obligation under this Agreement, and (vi) the work product, or any portion thereof, violating any patent, copyright or other proprietary right of any third person.

 10.       Independent Contractor.  It is expressly stipulated, agreed and understood between the parties that the relationship between SUPPLIER and COMPANY shall be that of independent contractor and not employer‑employee or principal‑agent.  Neither party shall have the authority to legally bind the other in contract, debt or otherwise.

 11.       Assignment; Etc.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective permitted suc­cessors and assigns.  Nothing contained herein shall give to any other person any benefit or any legal or equitable right, remedy or claim.  Anything contained herein to the con­trary notwithstand­ing, this Agreement shall not be assignable by SUPPLIER without the prior written consent of COMPANY, which consent may be withheld in the sole discretion of COMPANY.  COMPANY may, without the consent of SUPPLIER, sell, assign or otherwise transfer this Agreement and the rights, benefits and duties hereunder to any affiliate of COMPANY.

 12.       Complete Agreement.  This Agree­ment and the other writings referred to herein or delivered pursuant hereto which form a part hereof contain the entire understanding of the parties with respect to its subject matter.  There are no restrictions, promises, warranties, covenants or undertakings other than those expressly set forth herein or therein.  This Agreement supersedes all prior agreements and understandings among the parties with respect to its subject matter.  This Agreement may be amended only by a written instrument duly exe­cuted by the parties hereto.

 13.       Notices.  All notices, claims, certifi­cates, requests, demands and other communications hereunder shall be in writing and shall be delivered personally or sent by facsimile transmission, air courier, or registered or certified mail, return receipt requested, addressed to the address set forth at the beginning of this Agreement, or to such other address as the party to whom notice is to be given may have furnished to the other parties in writing in accordance herewith.  Any such communication shall be deemed to have been delivered (i) when delivered, if delivered personally, (ii)  when sent (with confirmation received), if sent by facsimile transmission on a business day, (iii) on the first business day after dispatch (with confirmation received), if sent by facsimile transmission on a day other than a business day, (iv) the first business day after dispatch, if sent by air courier, and (v) the third business day after mailing, if sent by mail. 

 14.       Severability  In the event that any provision of this Agreement would be held in any jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.  Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 15.       Dispute Resolution.   Any controversy or claim arising out of or relating to this Agreement or the validity, inducement, or breach thereof, shall be settled by arbitration before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then pertaining, except where those rules conflict with this provision, in which case this provision controls.  The parties hereby consent to the jurisdiction of the Federal District Court for the District of New Jersey for the enforcement of these provisions and the entry of judgment on any award rendered hereunder.  Should such court for any reason lack jurisdiction, any court with jurisdiction shall enforce this clause and enter judgment on any award.  The arbitrator shall be an attorney specializing in business litigation who has at least 15 years of experience with a law firm of over 25 lawyers or was a judge of a court of general jurisdiction.  The arbitration shall be held in New Brunswick, New Jersey and the arbitrator shall apply the substantive law of New York, except that the interpretation and enforcement of this arbitration provision shall be governed by the Federal Arbitration Act.  Within 30 days of initiation of arbitration, the parties shall reach agreement upon and thereafter follow procedures assuring that the arbitration will be concluded and the award rendered within no more than six months from selection of the arbitrator.  Failing such agreement, the AAA will design and the parties will follow such procedures.  Each party has the right before or during the arbitration to seek and obtain from the appropriate court provisional remedies such as attachment, preliminary injunction, repletion, etc., to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration.  THE ARBITRATOR SHALL NOT AWARD ANY PARTY PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, AND EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT TO SEEK SUCH DAMAGES.

 16.       Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Puerto Rico applicable to contracts made and per­formed wholly there­in.

 17.       Waivers.   The waiver by any party of a breach of any provi­sion of this Agreement shall not operate or be construed as a waiver of any subsequent breach. 

 18.       Business Continuity.    SUPPLIER is now planning and taking action to implement and will continue to implement, in a commercially reasonable manner, any and all measures to make all of its systems and software Year 2000 compliant.  SUPPLIER will perform the Services strictly according to the terms of this Agreement and otherwise shall meet the needs of its relationship with COMPANY, including preparation of estimates, performance schedules, orders, confirmations and delivery of conforming Services, invoices and collection of payments in a timely and efficient manner throughout the term of this Agreement.

 19.       Counterparts.  This Agreement may be executed in any number of counterparts, and each such counter­part hereof shall be deemed to be an original instrument, but all such coun­terparts together shall constitute but one agree­ment.

 

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written.

 

 

CUSTOMER'S NAME

                         By:       ______________________                By: __________                                            

  

                        Date: ______________________________

 

 EXHIBIT A

 

SERVICE RATES FOR 2005 – Proposal

(Copy of the Proposals to be attached to this contract as part of the Exhibit A)

CONFIDENTIALITY, COPYRIGHT AND INVENTION AGREEMENT

In connection with the Professional Services Agreement dated__________, ("Agreement"), between COMPANY INC Allen Enterprises, ("SUPPLIER") and CUSTOMER'S NAME ("COMPANY"), and for good and valuable consideration, the receipt of which is hereby acknowledged, the undersigned employee, consultant or agent of SUPPLIER, as the case may be ("EMPLOYEE"), hereby agrees as follows: 

1.         EMPLOYEE acknowledges that he/she may have access to information, either orally, electronically, visually or in a document or other tangible form, which COMPANY considers confidential, proprietary, and/or sensitive, the disclosure of which could result in substantial and irreparable damage to COMPANY's competitive advantage.  EMPLOYEE agrees that he/she will regard and preserve as confidential all information received or learned from COMPANY, its affiliate companies or its suppliers in connection with its activities under the Agreement, and will not, without the prior written consent of COMPANY, disclose to any person, firm or enterprise, or use for his/her own benefit, any such information.  Notwithstanding the foregoing, information shall not be considered confidential, proprietary or sensitive only to the extent that such information (a) is already known to EMPLOYEE and not subject to any confidentiality restrictions at the time it is obtained from COMPANY, (b) is or becomes publicly known through no wrongful act of EMPLOYEE, or (c) is rightfully received by EMPLOYEE from a third party without restriction on further disclosure.  In the event of a breach or a threatened breach of the terms and conditions of this section, COMPANY shall be entitled to immediate injunctive relief to prevent the use or disclosure of proprietary or confidential information, in addition to all other remedies available to it at law or equity.  All materials supplied to EMPLOYEE by COMPANY, and any copies thereof, shall be returned to COMPANY within thirty (30) days after the completion of any work under the Agreement or within ten (10) days after COMPANY requests the return thereof.  Access to COMPANY's computer system(s) is granted solely for the work contracted and for no other purpose whatsoever.   

 2.         Any documentation, plans, specifications or other similar type deliverables created by EMPLOYEE in connection with or during the performance of Services hereunder shall be considered a work made for hire, to the fullest extent permitted by law, and all right, title and interest therein, including the worldwide copyrights, shall be the property of COMPANY as the employer and party specially commissioning said work.  In the event that any said copyrightable work or portion thereof shall not be legally qualified as a work made for hire, or shall subsequently be so held to not be a work made for hire, EMPLOYEE agrees to assign, and does hereby so assign to COMPANY, all right, title and interest in and to said work or portion thereof, including but not limited to, the worldwide copyrights, extensions of such copyrights, and renewal copyrights therein, and further including all rights to reproduce the copyrighted work in copies or phono records, to prepare derivative works based on the copyrighted work, to distribute copies of the copyrighted work, to perform the copyrighted work publicly, to display the copyrighted work publicly, and to register the claim of copyright therein.  EMPLOYEE, without charge to COMPANY, shall duly execute, acknowledge and deliver to COMPANY all such further papers, including assignments and applications for copyright registration or renewal, as may be necessary to enable COMPANY to publish or protect said words by copyright or otherwise in any and all countries and to vest title to said works in COMPANY, or its nominees, their successors or assigns, and shall render all such assistance as COMPANY may require in any proceeding or litigation involving the rights in said works.

 3.         The term “invention” shall mean any idea, concept, know-how, technique or copyrightable work, other than that covered in subsection (b) above, whether published or unpublished that SUPPLIER first conceives or reduces to practice while in performance of Services during the course of a project, and for which a patent, copyright, trademark or service mark application is filed.  Inventions will be treated as follows:

 (1)If made by SUPPLIER, it shall remain the property of SUPPLIER.

(2)If made by COMPANY, it shall remain the property of COMPANY.

(3)If made by the personnel of both parties, it and all patent, copyright, trademark or service mark rights issued thereof shall be jointly owned by COMPANY and SUPPLIER without accounting.  Each party shall have the right to grant licenses to third parties or assign its rights therein without the consent of the other.

 All licenses granted to either party, if any, will include the right to make, have made, use, have used, lease, sell and/or otherwise transfer any apparatus, and/or practice and have practiced any method and shall include the right to grant, directly or indirectly, revocable and irrevocable sublicenses to such party’s subsidiaries or affiliates.  Nothing contained in this Agreement shall be deemed to grant any license under any patent, copyright, trademark, service mark or other applications arising out of inventions created as a result of work performed outside of this Agreement.

 4.         If EMPLOYEE is granted a privileged account on COMPANY's computer system(s), it is subject to audit by COMPANY at any time.

             IN WITNESS WHEREOF, EMPLOYEE has caused this Agreement to be duly executed as of the date set forth below.

                                                Employee Signature: ______________________________

 

                                                Employee Name:      _______________________________

 

                                                Social Security #:      _______________________________

 

Copyright (C) Dale M. Allen, San Juan, Puerto Rico, 2011

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