The Service Provider Agreement is a critical legal document used when engaging external service providers for business operations in Malta. It establishes a clear contractual framework that defines the business relationship between service providers and their clients, whether for one-time projects or ongoing services. This agreement type is particularly important in the Maltese business environment, where companies must comply with both local Maltese law and EU regulations. The document addresses key aspects such as service scope, payment terms, performance standards, data protection (GDPR compliance), intellectual property rights, and liability provisions. It's designed to protect both parties' interests while ensuring regulatory compliance and providing clarity on deliverables, responsibilities, and dispute resolution mechanisms.
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1. Parties: Identification and details of the service provider and the client, including registered addresses and company registration numbers
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, including deliverables and service standards
5. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination
6. Fees and Payment Terms: Service fees, payment schedule, invoicing procedures, and late payment consequences
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Client's Obligations: Key responsibilities and commitments of the client
9. Data Protection and Confidentiality: GDPR compliance measures and confidentiality obligations
10. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP
11. Liability and Indemnification: Limitation of liability and indemnification provisions
12. Force Majeure: Provisions for unforeseen circumstances preventing performance
13. Governing Law and Jurisdiction: Specification of Maltese law governance and jurisdiction
14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Service Levels: Detailed service level agreements (SLAs) - include when specific performance metrics are required
2. Compliance with Laws: Specific regulatory compliance requirements - include for regulated industries
3. Insurance: Insurance requirements - include for high-risk services or when required by industry standards
4. Non-Compete: Restrictions on competitive activities - include when protecting market position is crucial
5. Personnel: Requirements for service provider's staff - include when specific qualifications or security clearances are needed
6. Audit Rights: Client's rights to audit service provider - include for regulated industries or critical services
7. Business Continuity: Disaster recovery and business continuity requirements - include for critical services
8. Change Control: Procedures for changing service scope or terms - include for complex or long-term services
9. Exit Management: Detailed exit procedures - include for complex services requiring transition planning
1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
3. Schedule 3 - Service Levels: Detailed SLAs, KPIs, and performance measurement criteria
4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms and procedures
5. Schedule 5 - Contact Details: Key contacts and escalation procedures for both parties
6. Appendix A - Technical Requirements: Technical specifications and requirements for service delivery
7. Appendix B - Security Requirements: Security protocols and requirements for service provision
8. Appendix C - Form of Change Order: Template for documenting and approving changes to services
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