Kronos Linking Agreement
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COBB COUNTY, GA
Contract #18220
for
Workforce Management Systems and Related Products,
Services and Solutions
with
Kronos Incorporated
Effective: March 18, 2019
LINKING AGREEMENT - EXHIBIT A
The following documents comprise the executed contract between the
Cobb County, GA, Kronos Incorporated, effective March 18, 2019:
I.
Vendor Master Agreement Reference No. 18220 and
Signature Form
II.
Kronos Terms and Conditions for Participating Public
Agencies
– Exhibit A (022019)
Page 1 of 53
Exhibit A
KRONOS TERMS AND CONDITIONS FOR PARTICIPATING PUBLIC AGENCIES ADMINISTERED BY US COMMUNITIES
(022019)
KRONOS TERMS
A PARTICIPATING PUBLIC AGENCY (“CUSTOMER”), BY SIGNING AN ORDER FORM OR PURCHASE ORDER WITH
KRONOS INCORPORATED, AGREES TO THE APPLICATION OF THESE TERMS AND CONDITIONS FOR ALL PRODUCTS,
SERVICES AND OFFERINGS SET FORTH ON SUCH ORDER FORM (OR PURCHASE ORDER) WHICH REFERENCES THESE
TERMS AND CONDITIONS.
SECTION A:
GENERAL TERMS AND CONDITIONS. This Section apply for all transactions.
SECTION B:
TERMS AND CONDITIONS FOR SOFTWARE LICENSES, SOFTWARE AND EQUIPMENT SUPPORT
SERVICES, AND EDUCATIONAL AND PROFESSIONAL SERVICES. This Section apply for all
transactions except Workforce Ready and the Workforce Central SaaS offering ( not including the
professional and educational services governed by this Section).
SECTION C:
CLOUD HOSTING SUPPLEMENTAL TERMS AND CONDITIONS . This Section applies only for
transactions that involve Kronos hosting for Software licensed under Section B and identified as
CLOUD. For renewal of the Cloud Services only.
SECTION D:
KRONOS WORKFORCE CENTRAL SAAS TERMS AND CONDITIONS. This Section applies only for
Workforce Central transactions in a SaaS environment (except for the related professional and
educational services see Section B)
SECTION E:
KRONOS ADDENDUM WORKFORCE TELESTAFF IVR SERVICE. This Section applies to the Workforce
Telestaff IVR service.
SECTION F:
KRONOS HEALTHCARE EXTENSION WITH THE WORKFORCE CENTRAL SAAS. This section applies to
the Healthcare Extension ordered with the Workforce Central SaaS.
SECTION G:
KRONOS HEALTHCARE EXTENTION WITH THE APPLICATION HOSTING. This section applies to the
Healthcare extension ordered with the Kronos Application Cloud services.
SECTION H:
BUSINESS ASSOCIATED AGREEMENT. This Section applies with the services ordered under Sections
G, H and K.
SECTION I:
CLOUD SERVICES FOR EXTENSION APPLICATION. This Section applies with the Sections G and H.
SECTION J:
CLIENT PARTNERSHIP SERVICES. This Section applies to the client Partnership services ordered by
Healthcare Customers.
SECTION K:
KRONOS WORKFORCE DIMENTIONS TERMS AND CONDITIONS. This section applies to the Workforce
Dimension Services ordered by Customers.
Page 2 of 53
SECTION A: GENERAL TERMS AND CONDITIONS
1. APPLICATION OF THESE TERMS
These terms and conditions apply to each order accepted by Kronos Incorporated (“Kronos”) from an eligible Participating Public
Agency (“Customer”) for all Kronos Equipment, Software, Professional and Educational Services, Support and such other Kronos
offerings, as specified on an order form (an “Order”).
In addition to the terms set forth in this Section A: General Terms and Condition, the following sections apply for the specific offering
referenced:
(i)
Section B shall apply to the Software licenses and purchased Equipment, support services, and professional and
educational services,
(ii)
Section C shall apply to the Hosting Services purchased in connection with certain Software licensed under Section B,
(iii)
Section D shall apply to the Workforce Central Saas Orders;
(iv)
Section E shall apply to Workforce Telestaff IVR ordered to Kronos;
(v)
Section F shall apply to the Kronos Healthcare Extension order;
(vi)
Section G shall apply to the Healthcare Extension ordered with the Kronos Application Cloud services;
(vii)
Section H shall apply with the services ordered under Sections F, G and J.;
(viii)
Section I shall apply with the Sections F and G.
(ix)
Section J shall apply to the client Partnership services ordered by Healthcare Customers.
(x)
Section K shall apply to the Workforce Dimension orders.
All orders are subject to the approval of Kronos’ corporate office in Chelmsford, Massachusetts. This Agreement and the Order Form
shall supersede the pre-printed terms of any Customer purchase order or other Customer ordering document, and no such Customer
pre-printed terms shall apply to the items ordered.
2. APPLICABLE LAWS
This Agreement shall be governed by the state law in which Customer is based, provided however, if such jurisdiction has adopted
the Uniform Computer Information Transactions Act (UCITA), or such other similar law, the parties expressly agree to "opt-out" of and
not be governed by UCITA or such other similar law. The parties waive the application of the United Nations Commission on
International Trade Law and United Nations Convention on Contracts for the International Sale of Goods as to the interpretation or
enforcement of this Agreement.
3. EXPORT
Customer acknowledges that the Equipment and Software may be restricted by the United States Government or by the country in
which the Equipment or Software is installed from export to certain countries and certain organizations and individuals, and agrees
to comply with such laws. Customer agrees to comply with all applicable laws of all of the countries in which the Equipment and
Software may be used by Customer. Customer’s obligations hereunder shall survive the termination or expiration of the Order
Form. Customer must obtain Kronos prior written consent before exporting the Software.
4. CONFIDENTIAL INFORMATION
“Confidential Information" is defined as information that is: i) disclosed between the parties after the date of this Agreement that is
considered confidential or proprietary to the disclosing party; and ii) identified as “confidential” at the time of disclosure, or would be
reasonably obvious to the receiving party to constitute confidential information because of legends or other markings, by the circumstances
of disclosure or the nature of the information itself. Additionally, Customer acknowledges and agree that the Software (and Software
documentation), and the Specifications shall be deemed to be Kronos’ Confidential Information and trade secret. Each party shall
protect the Confidential Information of the other party with at least the same degree of care and confidentiality, but not less than a
reasonable standard of care, which such party utilizes for its own information of similar character that it does not wish disclosed to the
public. Neither party shall disclose to third parties (except the parent company or the wholly owned subsidiaries of the receiving party
who have a need to know) the other party’s Confidential Information, or use it for any purpose not explicitly set forth herein, without
the prior written consent of the other party. Notwithstanding the foregoing, a party may disclose Confidential Information to the extent
required: (a) to any subsidiary or affiliate of such Party, or (b) to any consultants, contractors, and counsel who have a need to know
in connection with the Agreement and who are under obligations of non-disclosure agreement at least as stringent as this section 4,
or (c) by law (including the applicable public record laws), or by a court or governmental agency, or if necessary in any proceeding to
establish rights or obligations under the Agreement; provided, the receiving party shall, unless legally prohibited, provide the disclosing
party with reasonable prior written notice sufficient to permit the disclosing party an opportunity to contest such disclosure. If a party
commits, or threatens to commit, a breach of this Section 4, the other party shall have the right to seek injunctive relief from a court of
competent jurisdiction. The obligation of confidentiality shall survive for three (3) years after the disclosure of such Confidential
Information.
This Agreement imposes no obligation upon either party with respect to the other party’s Confidential Information which the receiving
party can establish by legally sufficient evidence: (a) was rightfully possessed by the receiving party without an obligation to maintain its
confidentiality prior to receipt from the disclosing party, (b) is generally known to the public without violation of this Agreement; (c) is
obtained by the receiving party in good faith from a third party having the right to disclose it without an obligation with respect to
confidentiality; (d) is independently developed by the receiving party without use of the disclosing party’s confidential information, which
can be shown by tangible evidence.
5. TAXES
If Customer presents to Kronos a validly issued tax-exempt certificate, or other sufficient evidence of tax exemption, Customer shall
not be liable for those taxes for which Customer is exempt. Otherwise, Customer agrees to pay all other applicable duties and
customs fees relating to this Agreement , as well as all taxes levied or based on the products, services or other charges hereunder,
Page 3 of 53
including federal, state and local sales and excise taxes, and any taxes or amount in lieu thereof paid or payable by Kronos,
exclusive of taxes based on Kronos net income or business privilege.
6. TRAVEL EXPENSES
Customer agrees to reimburse Kronos for all pre-approved, reasonable and necessary travel incurred by Kronos in the performance
of its obligations under this Agreement provided that such travel complies with the then current Kronos Travel and Expense Policies
(such policies are available upon request) or such other mutually agreed policies or mutually agreed between the parties in the
statement of work. Customer further agrees to pay any travel expenses such as airfare, lodging, meals and local transportation, incurred
by Kronos in the performance of its obligations under this Agreement provided such expenses comply with the Agreement. Customer will
be billed by Kronos for such travel expenses and payment thereof shall be due net 30.
7. GENERAL
(a) The invalidity or illegality of any provision of this Agreement shall not affect the validity of any other provision. The parties intend
for the remaining unaffected provisions to remain in full force and effect.
(b) Customer shall not assign this Agreement or the license to the Software without the prior written consent of Kronos and any
purported assignment, without such consent, shall be void.
(c) Neither Party shall be responsible for any failure to perform or delay in performing any of its obligations under this Agreement
(other than a failure to comply with payment obligations) where and to the extent that such failure or delay results from an
unforeseeable event beyond a party’s reasonable control, including but not limited to, acts of war; acts of nature; earthquake; flood;
embargo; riot; sabotage; labor shortage or dispute; changes in government codes, ordinances, laws, rules, regulations or restrictions;
failure of the Internet; terrorist acts; failure of data, products or services controlled by any third party, including the providers of
communications or network services; utility power failure; material shortages or unavailability or other delay in delivery not resulting
from the responsible party’s failure to timely place orders therefor, or lack of or delay in transportation (each a “Force Majeure Event”).
(d) All notices given under this Agreement shall be in writing and sent postage pre-paid, if to Kronos, to the Kronos address on the
Order Form, or if to Customer, to the billing address on the Order Form.
(e) The section headings herein are provided for convenience only and have no substantive effect on the construction of this
Agreement.
(f) The parties agree that the Order signed by both parties and expressly reference this Agreement, which is delivered via fax or
electronically delivered via email it shall constitute a valid and enforceable agreement.
(g) This Agreement and any information expressly incorporated herein (including information contained in any referenced URL),
together with the applicable Order Form, constitute the entire agreement between the parties for the products and services described
herein and supersede all prior or contemporaneous representations, negotiations, or other communications between the parties
relating to the subject matter of this Agreement. This Agreement may be amended only in writing signed by authorized representatives
of both parties. Customer understands and acknowledges that while Kronos may disclose to customers certain confidential information
regarding general product development direction, potential future products and/or product enhancements under consideration,
Customer is not entitled to any products or product enhancements other than those contained on the Order Form. Customer has not
relied on the availability of any future version of the Software or Equipment identified on an Order Form, nor any other future product in
executing this Agreement.
(h) Use, duplication, or disclosure by the United States Government is subject to restrictions as set forth in subparagraph (c) (1) (ii) of
the Rights in Technical Data and Computer Software clause at DFARS 252.227-7013, or subparagraph (c)(1)(2) of the Commercial
Computer Software Restricted Rights clause at FAR 52.227-19, as applicable. Manufacturer/distributor is Kronos Incorporated, 297
Billerica Road, Chelmsford, MA.
(i) The JBoss® Enterprise Middleware components embedded in the Software are subject to the End User License Agreement
found at http://www.redhat.com/licenses/jboss_eula.html.
(j) Customer may pay an invoice by credit card if the amount is not greater than $50,000.00.
(k) Kronos agrees to comply with any applicable federal, state and local laws and regulations.
(l) Additionally, Kronos agrees to be liable for tangible property damage or personal injury to the extent caused by the negligence or
willful misconduct of its employees.
Page 4 of 53
SECTION B
TERMS AND CONDITIONS FOR SOFTWARE LICENSES, SOFTWARE AND EQUIPMENT SUPPORT SERVICES,
AND EDUCATIONAL AND PROFESSIONAL SERVICES
This Section B applies to Software licensed, Equipment purchased, support services for Software and Equipment, and educational
and professional services, when such items are identified on the Order which expressly references this Agreement.
1. PAYMENT AND DELIVERY
Unless otherwise set forth in this Agreement, payment terms are indicated on the Order Form or other contemporaneous ordering
document containing product-specific payment terms signed by the parties. Delivery terms are as stated on the Order Form (“Delivery”).
Kronos will invoice Customer for products upon Delivery. Unless otherwise set forth on the Order Form, Professional and Educational
Services are provided on a time and materials basis, invoiced monthly as rendered.
2. GENERAL LICENSE TERMS
Kronos owns or has the right to license the Software. The Software and Software documentation are confidential and may not be
disclosed to a third party without Kronos’ written consent. The Software contains proprietary trade secret technology. Unauthorized
use and copying of such Software is prohibited by law, including United States and foreign copyright law. The price Customer pays
for a copy of the Software constitutes a license fee that entitles Customer to use the Software as set forth below. Kronos grants to
Customer a non-exclusive, nontransferable, perpetual (except as provided herein) license to use the Software. This license may be
terminated by Kronos by written notice to Customer upon any material breach of this Agreement by Customer which remains uncured
for a period of thirty (30) days after such written notice from Kronos. Upon such termination of this license by Kronos, Customer will have
no further right to use the Software and will return the Software media to Kronos and destroy all copies of the Software (and related
documentation) in Customer’s possession or control. This license is subject to all of the terms of this Section B.
3. FEE BASED LIMITATIONS
Customer recognizes and agrees that the license to use the Software is limited, based upon the amount of the license fee paid by
Customer. Limitations, which are set forth on the Order Form, may include the number of employees, simultaneous or active users,
Software product modules, Software features, computer model and serial number and partition, and/or the number of telephone lines
or terminals to which the Software is permitted to be connected. Customer agrees to: i) use the Software only for the number of
employees, simultaneous or active users, computer model, partition and serial number, and/or terminals permitted by the applicable
license fee; ii) use only the product modules and/or features permitted by the applicable license fees; and iii) use the Software only in
support of Customer’s own business. Customer agrees not to increase the number of employees, simultaneous or active users,
partitions, terminals, products modules, features, or to upgrade the model, as applicable, unless and until Customer pays the
applicable fee for such increase/upgrade. Customer may not relicense or sublicense the Software to, or otherwise permit use of the
Software (including timesharing or networking use) by any third party. Customer may not provide service bureau or other data
processing services that make use of the Software without the express prior written consent of Kronos.
4. OBJECT CODE ONLY
Customer may use the computer programs included in the Software (the “Programs”) in object code form only, and shall not reverse
compile, disassemble or otherwise convert the Programs into uncompiled or unassembled code. The Programs include components
owned by third parties. Such third party components are deemed to be Software subject to this Section B. Customer shall not use
any of the Programs (or the data models therein) except solely as part of and in connection with the Software and as described in the
published documentation for such Software.
5. PERMITTED COPIES
Customer may copy the Programs as reasonably necessary to load and execute the Programs and for backup and disaster recovery
and testing purposes only, except for additional copies of the Teletime Software and the Kronos iSeries (which must be licensed
separately). All copies of the Programs or any part thereof, whether in printed or machine readable form and whether on storage
media or otherwise, are subject to all the terms of this license, and all copies of the Programs or any part of the Programs shall include
the copyright and proprietary rights notices contained in the Programs as delivered to the Customer.
6. UPDATES
In the event that Kronos supplies Service Packs, Point Releases and Major Releases (including legislative updates if available) of the
Software (collectively referred to as “Updates”), such Updates shall be part of the Software and the provisions of this license shall
apply to such Updates and to the Software as modified thereby.
7. ACCEPTANCE
For Customer’s initial purchase of each Equipment and Software product Kronos shall provide an acceptance test period (the “Test
Period”) that commences upon Installation. Installation shall be defined as: a.) the Equipment, if any, is mounted; b.) the Software is
installed on Customer’s server(s); and c.) implementation team training, if any, is complete. During the Test Period, Customer shall
determine whether the Equipment and Software meet the Kronos published electronic documentation, ("Specifications").
The Test Period shall be for 30 days. If Customer has not given Kronos a written deficiency statement specifying how the Equipment
or Software fails to meet the Specifications (“Deficiency Statement”) within the Test Period, the Equipment and Software shall be deemed
accepted. If Customer provides a Deficiency Statement within the Test Period, Kronos shall have 30 days to correct the deficiency,
and Customer shall have an additional 30 days to evaluate the Equipment and Software. If the Equipment or Software does not meet
the Specifications at the end of the second 30 day period, either Customer or Kronos may terminate this Agreement. Upon any such
termination, Customer shall return all Equipment and Software (and related documentation) to Kronos, and Kronos shall refund any
monies paid by Customer to Kronos for the returned Equipment and Software. Neither party shall then have any further liability to the
other for the products that were the subject of the Acceptance Test.
Page 5 of 53
8. LIMITED WARRANTY
Kronos warrants that all Kronos Equipment and Software media shall be free from defects in materials and workmanship, for a period
of ninety (90) days from Delivery. In the event of a breach of this warranty, Customer’s remedy shall be Kronos’ repair or replacement
of the deficient Equipment and/or Software media, at Kronos’ option, provided that Customer’s use, installation and maintenance
thereof have conformed to the Specifications. This warranty is extended to Customer only and shall not apply to any Equipment (or
parts thereof) or Software media in the event of:
(a)
damage, defects or malfunctions resulting from misuse, accident, neglect, tampering, (including modification or replacement
of any Kronos components on any boards supplied with the Equipment), unusual physical or electrical stress or causes other than
normal and intended use;
(b)
failure of Customer to provide and maintain a suitable installation environment, as specified in the Specifications; or
(c)
malfunctions resulting from the use of badges or supplies not approved by Kronos.
When using and applying the information generated by Kronos products, Customer is responsible for ensuring that Customer complies
with requirements of federal and state law where applicable. If Customer is licensing Workforce Payroll Software or Workforce
Absence Management Software: (i) Customer is solely responsible for the content and accuracy of all reports and documents
prepared in whole or in part by using such Software, (ii) using such Software does not release Customer of any professional obligation
concerning the preparation and review of such reports and documents, (iii) Customer does not rely upon Kronos, Best Software, Inc.
or such Software for any advice or guidance regarding compliance with federal (and state laws where applicable) or the appropriate
tax treatment of items reflected on such reports or documents, and (iv) Customer will review any calculations made by using such
Software and satisfy itself that those calculations are correct.
9. PROFESSIONAL AND EDUCATIONAL SERVICES
(a)
ENGAGEMENTS
Unless otherwise indicated on the Order, Professional and Educational Services (“Professional Services”) shall be provided on a time
and material basis and described in a statement of work. If a dollar limit is stated in the Order Form or any associated statement of
work (“SOW”), the limit shall be deemed an estimate for Customer's budgeting and Kronos' resource scheduling purposes. After the
dollar limit is expended, Kronos will continue to provide Professional Services on a time and materials basis, if a Change Order or
Schedule of Services for continuation of the Professional Services is signed by both parties.
(b)
WARRANTY
Kronos warrants that all professional and educational services performed under this Agreement shall be performed in a professional
and competent manner. In the event that Kronos breaches this warranty, and Customer so notifies Kronos within 30 days of receipt
of invoice for the applicable services, the Customer’s remedy and Kronos’ liability shall be to re-perform the services which were
deficient in a manner so as to conform to the foregoing warranty, at no additional cost to Customer.
(c)
KRONOS PROFESSIONAL/EDUCATIONAL SERVICES POLICIES
Kronos’ then-current Professional/Educational Services Policies shall apply to all Professional and/or Educational Services purchased
under the applicable SOW and may be accessed at: http://www.kronos.com/Support/ProfessionalServicesEngagementPolicies.htm
(“Professional Services Policies”). In the event of a conflict between the Professional Services Policies and this Agreement, the terms
of this Agreement shall prevail.
10. SOFTWARE SUPPORT SERVICES
The following terms and conditions shall govern the Software support services provided by Kronos to Customer.
10.1 SUPPORT OPTIONS
Customer may select from the following Software support purchase options: Gold (or Gold Plus) and Platinum (or Platinum Plus)
support (“Service Type”), each providing different service coverage periods and/or service offerings, as specified herein (“Service
Offerings”) and in the Kronos Support Service Policies (defined below). Customer must purchase the same Service Type for all of the
Software specified on the Order Form, (however, if Customer is purchasing support services for Visionware Software, Customer may
only purchase Gold Service Type for the Visionware Software). All Updates shall be provided via remote access.
10.2 TERM OF SOFTWARE SUPPORT
Unless otherwise indicated on the Order Form, support service shall commence on the Software Delivery date and shall continue for
an initial term of one (1) year. Support service may be renewed for additional one (1) year terms on the anniversary date of its
commencement date by mutual written agreement of the parties or by Kronos sending Customer an invoice for the applicable renewal
term and Customer paying such invoice prior to the commencement of such renewal term. After the one year initial term of this
Agreement, the Service Offerings provided and the Service Coverage period are subject to change by Kronos with sixty (60) days
advance written notice to Customer. For the initial two (2) renewal years the annual support fee, for the same products and service
type, will not increase by more than 4% over the prior year’s annual support fee.
10.3 GOLD SERVICE OFFERINGS
Customer shall be entitled to receive:
(i) Updates for the Software (not including any Software for which Kronos charges a separate license fee), provided that Customer’s
operating system and equipment meet minimum system configuration requirements, as reasonably determined by Kronos. If Customer
requests Kronos to install such Updates or to provide retraining, Customer agrees to pay Kronos for such installation or retraining at
Kronos’ pricing set forth in this Agreement.
Page 6 of 53
(ii) Telephone and/or electronic access to the Kronos Global Support Center for the logging of requests for service during the Service
Coverage Period. The Service Coverage Period for the Gold Service Offering is 8:00 a.m. to 8:00 p.m., local time, Monday through
Friday, excluding Kronos holidays.
(iii) Web-based support including access to Software documentation, FAQ’s, access to Kronos knowledge base, Customer forums,
and e-case management. Such offerings are subject to modification by Kronos. Current offerings can be found at
http://www.kronos.com/services/support-services.aspx .
(iv) Web-based remote diagnostic technical assistance which may be utilized by Kronos to resolve Software functional problems and
user problems during the Service Coverage Period.
(v) Access to specialized content as and when made available by Kronos such as technical advisories, learning quick tips, brown bag
seminars, technical insider tips, SHRM e-Learning, HR Payroll Answerforce and service case studies.
10.4 PLATINUM AND PLUS SERVICE OFFERINGS:
Platinum: In addition to the Service Offerings specified for the Gold Service Offering above, the Service Coverage Period for the
Platinum Service Offering is 24 hours a day, seven days a week, 365 days a year.
Plus option: In addition to the Service Offerings specified for the Gold Service Offering above, Customers purchasing the Plus option
shall receive the services of a dedicated, but not exclusive, Kronos Technical Account Manager (“TAM”) for one production instance
of the Software. Customers purchasing the Gold-Plus option shall designate up to one primary and one secondary backup technical
contacts (“Technical Contacts”) to be the sole contacts with the TAM, while Customers purchasing the Platinum-Plus option shall
designate up to two primary and three secondary backup Technical Contacts. Upon request, Customer may designate additional
and/or backup Technical Contacts. Customer is required to place all primary Technical Contacts through Kronos product training for
the Software covered under this Section B at Customer’s expense.
Customers purchasing the Platinum-Plus option shall also receive a one day per year visit to be performed at the Customer location
where the Software is installed. During this onsite visit, Kronos shall work with Customer to identify ways to help Customer increase
functionality or maximize utilization of the Software in Customer’s specific environment. Customer must be utilizing the then-current
version of the Software.
10.5 PAYMENT
Customer shall pay annual support charges for the initial term in accordance with the payment terms on the Order Form and for any
renewal term upon receipt of invoice. Customer shall pay additional support charges, if any, and time and material charges upon
receipt of invoice
10.6 ADDITION OF SOFTWARE
Additional Software purchased by Customer as per the ordering procedure set out in the agreement during the initial or any renewal
term shall be added to the Support Services at the same support option as the then current Software support coverage in place under
these terms. Customer agrees to pay the charges for such addition as per the Order.
10.7 RESPONSIBILITIES OF CUSTOMER
Customer agrees (i) to provide Kronos personnel with full, free and safe access to Software for purposes of support, including use of
Kronos’ standard remote access technology, if required; (ii) to maintain and operate the Software in an environment and according to
procedures which conform to the Specifications; and (iii) not to allow support of the Software by anyone other than Kronos without
prior written authorization from Kronos. Failure to utilize Kronos’ remote access technology may delay Kronos’ response and/or
resolution to Customer’s reported Software problem. If Customer requires the use of a specific remote access technology not specified
by Kronos, then Customer must purchase the Plus option to receive support and provide Kronos personnel with full, free and safe
access to the remote access hardware and/or software.
.
10.8 DEFAULT
Customer shall have the right to terminate Kronos support services in the event that Kronos is in breach of the support services
warranty set forth below and such breach is not cured within fifteen (15) days after written notice specifying the nature of the breach.
In the event of such termination, Kronos shall refund to Customer on a pro-rata basis those pre-paid annual support fees associated
with the unused portion of the support term. Kronos reserves the right to terminate or suspend support service in the event the Customer
is in default under this Agreement with Kronos and such default is not corrected within fifteen (15) days after written notice. In addition,
the support services will terminate and all charges due hereunder will become immediately due and payable in the event that Customer
ceases to do business as a going concern or has its assets assigned by law.
10.9 WARRANTY
Kronos warrants that all support services shall be performed in a professional and competent manner.
11. EQUIPMENT SUPPORT SERVICES
The following terms and conditions shall govern the equipment support services provided by Kronos to Customer.
Kronos and Customer hereby agree that Kronos shall provide depot equipment repair support services ("Depot Support Services") for
Customer's Kronos Equipment ("Product(s)") specified on an Order Form to and from locations within the United States and Puerto
Rico pursuant to the following terms and conditions:
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11.1 TERM
Equipment Support Services for the Product(s) have a term of one (1) year commencing upon the expiration of the applicable warranty
period, as specified in this Section B . Equipment Support Services can be extended for additional one year terms on the anniversary
of its commencement date ("Renewal Date") by mutual written agreement of the parties or by Kronos sending Customer an invoice
for the applicable renewal term and Customer paying such invoice prior the commencement of such renewal term. For the initial two
(2) renewal years the annual support fee, for the same products and service type, will not increase by more than 4% over the prior
year’s annual support fee to the extent consistent with the pricing set forth under the Agreement.
11.2 PAYMENT
Customer agrees to pay the Support Charges for the initial term as set forth on the Order Form for each Product listed. Customer
agrees that all Products of the same type that are owned by the Customer, including without limitation Customer's "Spare Products"
(as defined below), will be subject to this Agreement. Customer agrees that if Customer purchases, during the term of this Agreement,
any Products of the same type as those specified on an Order Form, such additional Products shall be subject to this Agreement.
Customer agrees to pay a prorated fee for such additional Products and agrees to pay the full annual fee for such additional Products,
upon the renewal date.
Kronos will invoice Customer for the annual Support Charges each year in advance of the Renewal Date. Customer will pay Kronos
within thirty (30) days of receipt of invoice.
11.3 DEPOT SUPPORT SERVICE DESCRIPTION
Upon the failure of installed Equipment, Customer shall notify Kronos of such failure and Kronos will provide remote fault isolation at
the FRU (Field Replacement Unit) or subassembly level and attempt to resolve the problem. Those failures determined by Kronos to
be Equipment related shall be dispatched to a Kronos Depot Repair Center, and Customer will be provided with a Return Material
Authorization Number (RMA) for the failed Equipment if Customer is to return the failed Equipment to Kronos, as reasonably
determined by Kronos. Customer must return the failed Equipment with the supplied RMA number. Hours of operation, locations and
other
information
related
to
Kronos’
Depot
Repair
Centers
are
available
upon
request
and
can
be
found
athttps://customer.kronos.com/contact/contact-phone.aspx and are subject to change. Return and repair procedures for failed
Equipment shall be provided based on the Depot option - Depot Exchange or Depot Repair - selected by Customer on the applicable
Order Form and as specified herein and in Kronos’ then-current Support Services Policies. Service packs for the Equipment (as
described in subsection (b) below) are included in both Depot Exchange and Depot Repair Support Services.
(i) Depot Exchange: Kronos will provide a replacement for the failed Equipment at the FRU or subassembly level on an "advanced
exchange" basis, utilizing a carrier of Kronos’ choice. Replacement Equipment will be shipped the same day, for delivery to Customer’s
location as further described in the Support Policies. REPLACEMENT EQUIPMENT MAY BE NEW OR RECONDITIONED. Customer
shall specify the address to which the Equipment is to be shipped. All shipments will include the Kronos provided RMA designating
the applicable Kronos Depot Repair Center, as the recipient. Customer, upon receipt of the replacement Equipment from Kronos,
shall package the defective Equipment in the materials provided by Kronos, with the RMA supplied and promptly return failed
Equipment directly to Kronos.
(ii) Depot Repair: Upon failure of installed Equipment, Customer shall install a Spare Product to replace the failed Equipment.
Customer shall then return the failed Equipment, with the required RMA, to the applicable Kronos Depot Repair Center. Customer
shall make reasonable efforts to return the failed Equipment using the same or substantially similar packing materials in which the
original Equipment was sent. Customer shall also specify the address to which the repaired Equipment should be return
shipped. Upon receipt of the failed Equipment, Kronos shall repair the failed Equipment and ship it, within ten (10) business days
after receipt, to Customer. Kronos shall ship the repaired Equipment by regular surface transportation to Customer.
Kronos warrants that all repairs performed under the Agreement shall be performed in a professional and competent manner. In the
event of a breach of this warranty, the exclusive remedy of Customer and sole liability of Kronos shall be replacement of the repaired
Equipment.
11.4 EQUIPMENT SERVICE PACK SUPPORT SERVICE DESCRIPTION
If Customer purchase the Equipment service packs support, Kronos manufactured terminals specified on an Order, Customer shall be
entitled to receive:
(i) Service packs for the Equipment (which may contain system software updates, firmware updates, security updates, and feature
enhancements) available for download at Kronos’ customer portal; and
(ii) Access to the Kronos Support Services Center for the logging of requests for assistance downloading service packs for the
Equipment.
Service packs for the Equipment are not installed by the Kronos Depot Repair Center but are available for download at Kronos’
customer portal, provided Customer is maintaining the Equipment under an annual Equipment Support Services plan with Kronos.
Kronos warrants that all service packs and firmware updates provided under this Agreement shall materially perform in accordance
with the Kronos published specifications for a period of ninety (90) days after download by Customer. In the event of a breach of this
warranty, Customer’s exclusive remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or firmware update(s),
at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the specifications.
11.5 RESPONSIBILITIES OF CUSTOMER
Customer agrees that it shall return failed Products promptly as the failures occur and that it shall not hold failed Products and send
failed Product to Kronos in "batches" which shall result in a longer turnaround time and surcharge to Customer. In addition, Customer
agrees to:
(a) Maintain the Products in an environment conforming to Kronos' published specifications for such Products;
(b) De-install all failed Products and install all replacement Products in accordance with Kronos' published installation guidelines;
(c) Ensure that the Product(s) are returned to Kronos properly packaged; and
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(d) Obtain an RMA before returning any Product to Kronos and place the RMA clearly and conspicuously on the outside of the shipping
package. Customer may only return the specific Product authorized by Kronos when issuing the RMA.
11.6 SUPPORT EXCLUSIONS
Depot Support Service does not include the replacement of "consumables". In addition, Depot Support Service does not include the
repair of damages, and Customer will not attempt to return damaged Product, resulting from:
(a) Any cause external to the Products including, but not limited to, electrical work, fire, flood, water, wind, lightning, transportation, or
any act of God;
(b) Customer's failure to continually provide a suitable installation environment (as indicated in Kronos' published installation
guidelines) including, but not limited to, adequate electrical power;
(c) Customer's improper use, relocation, packaging, refinishing, management or supervision of the Product(s) or other failure to use
Products in accordance with Kronos' published specifications;
(d) Customer's use of the Products for purposes other than those for which they are designed or the use of accessories or supplies
not approved by Kronos;
(e) Government imposed sanctions, rules, regulations or laws preventing the shipment of the Products; or
(f) Customer's repair, attempted repair or modification of the Products.
Professional services provided by Kronos in connection with the installation of any Software or firmware upgrades, if available, and if
requested by Customer, are not covered by Depot Support Services. Firmware (including equipment service packs) which may be
available to resolve a Product issue is not installed by the Kronos Depot Repair Center but is available for download at Kronos'
customer web site provided Customer is maintaining the Product under an annual Depot Support Services plan with Kronos.
11.7 WARRANTY
(a) Depot Repair and Exchange warranty: Kronos warrants that all repairs performed under this Section B shall be performed in a
professional and competent manner.
(b) Services Pack support Warranty: Kronos warrants that all service packs and firmware updates provided under this Section B shall
materially perform in accordance with the Kronos published specifications for a period of ninety (90) days after download by Customer.
In the event of a breach of this warranty, Customer’s remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or
firmware update(s), at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the
specifications.
11.8 LIMITATION OF REMEDIES
To the extent permitted by law, the remedy of Customer and liability of Kronos shall be replacement of the repaired Product.
12. KRONOS SUPPORT SERVICE POLICIES
Kronos’ then-current Support Services Policies shall apply to all Support Services purchased and may be accessed at:
http://www.kronos.com/Support/SupportServicesPolicies.htm (“Support Policies”). In the event of a conflict between the Support Policies
and this Agreement, the terms of this Agreement shall prevail.
13. FIRMWARE
Customer may not download firmware updates for the Kronos Equipment unless Customer is maintaining such Equipment under a
support plan with Kronos. If Customer is not maintaining the Equipment under a support plan with Kronos, Kronos shall have the right
to verify Customer’s Kronos Equipment to determine if Customer has downloaded any firmware to which Customer is not entitled.
14. TRAINING POINTS
Training Points which are purchased by Customer may be redeemed for an equivalent value of instructor-led training sessions offered
by Kronos. Available instructor-led sessions are listed at http://customer.Kronos.com and each session has the Training Points value
indicated. Training Points are invoiced when used by the Customer. Points may be redeemed at any time within 12 months of the date
of the applicable Order Form, at which time they shall expire. Training Points may not be exchanged for other Kronos products and/or
services.
15. KNOWLEDGEPASS EDUCATION SUBSCRIPTION:
The parties hereby agree that the following terms shall apply to Customer’s purchase of the Kronos KnowledgePass Education
Subscription only, if specified on the Order Form:
Scope: The KnowledgePass Education Subscription is available to customers who are licensing Kronos’ Workforce Central and iSeries
Timekeeper Software products and who are maintaining such products under a support plan with Kronos. The KnowledgePass Education
Subscription provides access via the internet to certain educational offerings provided by Kronos (the “KnowledgePass Content”),
including:
Product and upgrade information for project teams and end users
Hands-on interactive instruction on common tasks
Self-paced tutorials covering a range of topics
Job aids
Knowledge assessment and reporting tools to measure progress
Webinars
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Term of Subscription: The annual KnowledgePass Education Subscription shall run co-terminously with Customer’s Software Support,
and shall renew for additional one (1) year terms provided Customer renews its KnowledgePass Education Subscription as provided
below.
Payment: Customer shall pay the annual subscription charge for the initial term of the KnowledgePass Education Subscription in
accordance with the payment terms on the Order Form. Kronos will send Customer a renewal invoice for renewal of the KnowledgePass
Education Subscription at least forty five (45) days prior to expiration of the then current term. KnowledgePass Education Subscription
shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or any renewal term.
The KnowledgePass Subscription is available when the Customer subscribe on annual basis.
Limitations: Customer recognizes and agrees that the KnowledgePass Content is copyrighted by Kronos. Customer is permitted to
make copies of the KnowledgePass Content provided in *pdf form solely for Customer’s internal use and may not disclose such
KnowledgePass Content to any third party other than Customer’s employees. Customer may not edit, modify, revise, amend, change,
alter, customize or vary the KnowledgePass Content without the written consent of Kronos, provided that Customer may download
and modify contents of Training Kits solely for Customer’s internal use.
Train-the-Trainer Program (TTT): Certification under the Train-the-Trainer Program is valid only for the point release of the Software
for which the TTT Program is taken, and covers only the Customer employee who completes the TTT Program.
16.
INDEMNIFICATION
Kronos agrees to indemnify Customer and to hold it harmless from and against any and all claims, costs, fees and expenses (including
reasonable legal fees) relating to actual or alleged infringement of United States or Canadian patents or copyrights asserted against
Customer by virtue of Customer's use of the Software as delivered and maintained by Kronos, provided that: i) Kronos is given prompt
written notice of any such claim and has sole control over the investigation, preparation, defense and settlement of such claim; and, ii)
Customer reasonably cooperates with Kronos in connection with the foregoing and provides Kronos with all information in Customer's
possession related to such claim and any further assistance as reasonably requested by Kronos. Kronos will have no obligation to
indemnify Customer to the extent any such claim is based on the use of the Software with software or equipment not supplied by
Kronos. Should any or all of the Software as delivered and maintained by Kronos become, or in Kronos' reasonable opinion be likely
to become, the subject of any such claim, Kronos may at its option: i) procure for Customer the right to continue to use the affected
Software as contemplated hereunder; ii) replace or modify the affected Software to make its use non-infringing; or iii) should such
options not be available at reasonable expense, terminate this Agreement with respect to the affected Software upon thirty (30) days
prior written notice to Customer. In such event of termination, Customer shall be entitled to a pro-rata refund of all fees paid to Kronos
for the affected Software, which refund shall be calculated using a five year straight-line depreciation commencing with the date of the
relevant Order. Additionally, Kronos agrees to be liable for tangible property damage or personal injury to the extent caused by the
negligence or willful misconduct of its employees.
17. LIMITATION OF LIABILITY
CUSTOMER'S EXCLUSIVE REMEDIES AND KRONOS' SOLE LIABILITY FOR ANY KRONOS BREACH OF THIS AGREEMENT
ARE EXPRESSLY STATED HEREIN. EXCEPT AS PROVIDED IN THIS AGREEMENT, ALL OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXCLUDED.
EXCEPT FOR i) KRONOS' INDEMNIFICATION OBLIGATIONS SET FORTH IN ARTICLE 16 ABOVE; (II) CUSTOMER’S CLAIMS
FOR TANGIBLE PROPERTY DAMAGE OR PERSONAL INJURY TO THE EXTENT CAUSED BY THE NEGLIGENCE OR WILLFUL
MISCONDUCT OF THE OTHER PARTY’S EMPLOYEES, IN NO EVENT SHALL KRONOS' OR ITS PARENTS', SUBSIDIARIES',
AFFILIATES', OR THIRD PARTY LICENSOR'S LIABILITY TO A CUSTOMER, HOWSOEVER CAUSED, EXCEED THE VALUE OF
THE ORDER WHICH GIVES RISE TO THE CLAIM, AND IN NO EVENT WILL KRONOS OR ITS PARENTS, SUBSIDIARIES
AFFILIATES OR THIRD PARTY LICENSORS BE LIABLE FOR LOST PROFITS, LOST DATA OR ANY OTHER INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT WHETHER SUCH CLAIM IS BASED ON WARRANTY,
CONTRACT, TORT OR THE EXISTENCE, FURNISHING, FUNCTIONING OR CUSTOMER’S SPECIFIC USE OF, OR INABILITY
TO SO USE, ANY EQUIPMENT, SOFTWARE OR SERVICES PROVIDED FOR IN THIS AGREEMENT.
18. TERMINATION OF ORDER FORM OR SOW
(a)
Termination for breach. For any breach of this Agreement by Kronos in relation with that Customer which cannot be cured
by repair, replacement or re-performance, Customer shall have the right to terminate this the Order Form or applicable SOW upon
thirty (30) days prior written notice to Kronos, provided Kronos has not cured such breach during such thirty (30) day period. Upon
such termination, Customer shall be entitled to pursue its remedies at law or in equity subject to the terms of this Agreement.
(b)
Termination for non-appropriation of funds. Should the funding for the services ordered by Customer be discontinued, Customer
shall have the right to terminate the Order Form relating to such services ordered upon a 30 days written advance notice to Kronos. In such
event, the Customer agrees to pay for the products delivered and the services performed under the terms of the Agreement prior to the
receipt by Kronos of the termination notice.
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SECTION C
CLOUD APPLICATION HOSTING
SUPPLEMENTAL TERMS AND CONDITIONS
There terms and conditions apply to the cloud services which are identified in the Pricing as the Cloud in
the Pricelist Name.
These Application Hosting Supplemental Terms and Conditions are applicable for hosting services ordered by Customer for Kronos
Software licensed under Section B of this Agreement.
1.
DEFINITIONS
“Acceptable Use Policy” means the Kronos policy describing prohibited uses of the Cloud Services as further described at:
https://www.kronos.com/policies/acceptable-use
“Application(s)” means those Kronos software applications set forth on the applicable Order Form (or a schedule to the Order Form
if Customer is only hosting a portion of the Applications for which Customer has a perpetual license) and which are made accessible
to Customer for use in the Kronos Private Cloud under the terms of this Section C.
“Billing Start Date” means the date on which billing for the Cloud Services will commence, as indicated on the Order Form.
“Cloud Services” means access to the password protected customer area of the Kronos Private Cloud and those services related
thereto, all as further described at: http://www.kronos.com/products/workforce-central-cloud/cloud-guidelines.aspx
“Customer Content” means all content Customer, or others acting on behalf of or through Customer, posts or otherwise inputs into
the Kronos Private Cloud.
“Initial Term” means the initial billing term of the Cloud Services as indicated on the Order Form. The Initial Term commences on
the Billing Start Date. Customer may have access to the Cloud Services prior to the commencement of the Initial Term.
“Monthly Services Fee(s)” means the monthly fees described in the applicable Order Form.
“Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth the items ordered by Customer and
to be provided by Kronos, including without limitation the prices and fees to be paid by Customer.
“Personally Identifiable Data” means information concerning individually identifiable employees of Customer that is protected
against disclosure under applicable law or regulation.
“Production Environment” means the environment established for Customer’s daily use of the Applications in a live environment
throughout the Term.
“Renewal Term” means the renewal billing term of the Cloud Services as indicated on the Order Form.
“SLA(s)” means a service level agreement offered by Kronos for the Production Environment and attached to this Section C as Exhibit
A which contains key service level standards and commitments that apply to the Kronos Private Cloud.
“SLA Credit” means the credit calculated in accordance with the SLA and offered by Kronos in the event of outages or interruptions
in the delivery of the Cloud Services that result in a failure to meet the terms of the applicable SLA.
“Supplier” means any contractor, subcontractor or licensor of Kronos providing software, equipment and/or services to Kronos which
are incorporated into or otherwise related to the Cloud Services. Kronos may at its sole discretion replace a Supplier, provided that a
change to Supplier will not have a materially adverse effect on the Cloud Services delivered by Kronos under this Agreement.
“Temporary Environment” means a transient, non-production environment created to serve limited purposes for a limited time
period, and identified on the applicable Order Form as a Temporary Environment.
“Term” means the Initial Term and any Renewal Terms.
2.
CLOUD SERVICES AND TERM
2.1 During the Term, Kronos will provide the Cloud Services for the Applications. Unless the Order Form indicates that the
Applications are to be implemented in a Temporary Environment, the Applications will be deemed to be implemented in a Production
Environment.
2.2 Billing for the Cloud Services commences on the Billing Start Date, and continues for the Initial Term or until terminated in
accordance with the provisions hereof. At the expiration of the Initial Term and each Renewal Term as applicable, the Cloud Services
shall automatically renew for an additional Renewal Term until either party provides notice of its intent not to renew at least sixty (60)
days prior to the expiration of the then-current Term.
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2.3 Kronos may suspend or terminate the Cloud Services upon notice in the event of any breach by Customer of this Section C if
such breach is not cured within thirty (30) days of the date of Kronos’ written notice. No interruption shall be deemed to have occurred
during, and no credits shall be owed for, any authorized suspension of the Cloud Services.
2.4 Customer may terminate the Cloud Services by written notice at any time during the term of the Section C if Kronos materially
breaches any provision of this Section C, and such default is not cured within thirty (30) days after receipt of written notice from
Customer. In the event of such termination by Customer, Customer shall pay Kronos within thirty (30) days all fees then due and
owing for the Cloud Services prior to the date of termination.
2.5 Customer may terminate any or all of the Cloud Services for convenience on no less than ninety (90) days prior written notice to
Kronos. In the event of termination of any of the Cloud Services by Customer for convenience or by Kronos for cause during the Initial
Term, Customer will pay to Kronos any out of pocket expenses incurred by Kronos in terminating the Cloud Services plus an early
termination fee based on the following calculation: one (1) month of the then-current Monthly Services Fees for every twelve (12)
month period (or portion thereof) remaining in the Initial Term. By way of example only, if Customer terminates the Cloud Services
for convenience with fifteen (15) months remaining in the Initial Term, Customer will be responsible to pay Kronos two (2) months of
the then-current Monthly Services Fees.
2.6 Customer Content shall be available to Customer to retrieve at any time and at no additional charge throughout the Term and for
no more than fifteen (15) days after expiration or termination of the Agreement for any reason. After such time period, Kronos shall
have no further obligation to store or make available the Customer Content and will securely delete all Customer Content without
liability of any kind.
2.7 In the event that either party becomes insolvent, makes a general assignment for the benefit of creditors, is adjudicated a bankrupt
or insolvent, commences a case under applicable bankruptcy laws, or files a petition seeking reorganization, the other party may
request adequate assurances of future performance. Failure to provide adequate assurances, in the requesting party’s reasonable
discretion, within ten (10) days of delivery of the request shall entitle the requesting party to terminate the Agreement immediately
upon written notice to the other party.
3.
CLOUD SERVICES, FEES AND PAYMENT
3.1 In consideration of the delivery of the Cloud Services, Customer shall pay Kronos the Monthly Services Fee for such Cloud
Services as defined in the applicable Order Form. The Monthly Services Fee shall commence on the Billing Start Date and will be
invoiced on the “Billing Frequency” indicated on the Order Form. When billed annually in advance, Kronos will invoice Customer an
amount equal to twelve (12) months of the Monthly Services Fees for the Cloud Services annually in advance for each year during
the Term commencing on the Billing Start Date. The Billing Start Date for the Monthly Service Fees for any Cloud Services ordered
by Customer after the date of this Agreement which are incremental to Customer’s then-existing Cloud Services shall be the date the
applicable Order Form is executed by Kronos and Customer.
3.2 All fees payable for the Cloud Services shall be sent to the attention of Kronos as specified on the invoice. Unless otherwise
indicated on an Order Form, payment for all items shall be due 30 days following date of invoice. Customer is responsible for all
applicable federal, state, country, provincial or local taxes relating to the Cloud Services (including without limitation GST and/or VAT
if applicable), excluding taxes based on Kronos’ income or business privilege. Customer may be required to purchase additional
Cloud Services to address infrastructure requirements as released by Kronos for a new version of a particular Application.
3.3 If any amount owing under this or any other agreement for Cloud Services is thirty (30) or more days overdue, Kronos may,
without limiting Kronos’ rights or remedies, suspend Cloud Services until such amounts are paid in full. Kronos will provide at least
seven (7) days’ prior written notice that Customer’s account is overdue before suspending Cloud Services.
3.4 At the commencement of each Renewal Term, Kronos may increase the Monthly Service Fee rates in an amount not to exceed
four percent (4%). The increased Monthly Service Fees will be reflected in the invoice following the effective date of such increase
without additional notice. Customer may be required to purchase additional Cloud Services to address increased infrastructure
requirements for a new version of a particular Application as released by Kronos. Any additional Cloud Services will be set forth on
an Order Form to be mutually agreed upon by Customer and Kronos.
4.
ACCEPTABLE USE
4.1 Customer shall take all reasonable steps to ensure that no unauthorized persons have access to the Cloud Services, and to
ensure that no persons authorized to have such access shall take any action that would be in violation of this Agreement. Customer
is responsible for all activities undertaken under the auspices of its passwords and other login credentials to use the Cloud Services.
4.2 Customer represents and warrants to Kronos that Customer has the right to publish and disclose the Customer Content in
connection with the Cloud Services. Customer represents and warrants to Kronos that the Customer Content will comply with the
Acceptable Use Policy.
4.3 Customer will not (a) use, or allow the use of, the Cloud Services in contravention of the Acceptable Use Policy.
4.4 Kronos may suspend the Cloud Services immediately upon written notice in the event of any security risk, negative impact on
infrastructure or Acceptable Use Policy violation.
5.
MAINTENANCE
Monthly Service Fees are in addition to the fees Customer pays for annual maintenance and support under the License Agreement.
Customer must maintain the Software under an active maintenance plan with Kronos throughout the Term. If Kronos, its Suppliers,
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or the local access provider, as applicable, requires access to Customer sites in order to maintain or repair access to the Kronos
Private Cloud, Customer shall cooperate in a timely manner and reasonably provide such access and assistance as necessary.
6.
CUSTOMER CONTENT
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential
Information of Customer. Customer will ensure that all Customer Content conforms with the terms of this Agreement and applicable
law. Kronos and its Suppliers may, but shall have no obligation to, access and monitor Customer Content from time to time to provide
the Cloud Services and to ensure compliance with this Agreement and applicable law. Customer is solely responsible for any claims
related to Customer Content and for properly handling and processing notices that are sent to Customer regarding Customer Content.
7. CONNECTIVITY AND ACCESS
Customer acknowledges that Customer shall (a) be responsible for securing, paying for, and maintaining connectivity to the Kronos
Private Cloud (including any and all related hardware, software, third party services and related equipment and components
required for access); and (b) provide Kronos and Kronos’ representatives with physical or remote access to Customer’s computer
and network environment as mutually agreed upon may be reasonably necessary in order for Kronos to perform its obligations under
the Agreement. Customer will make all necessary arrangements as may be required to provide access to Customer’s computer
and network environment if necessary for Kronos to perform its obligations under the Agreement.
8. indemnification
8.1 Customer shall defend Kronos, its Suppliers and their respective directors, officers, employees, agents and independent
contractors (collectively, the “Kronos Indemnified Parties”) harmless, from and against any and all notices, charges, claims,
proceedings, actions, causes of action and suits, brought by a third party (each a “Claim”) alleging that: (a) employment-related claims
arising out of Customer’s configuration of the Cloud Services; (b) Customer’s modification or combination of the Cloud Services with
other services, software or equipment not furnished by Kronos, provided that such Customer modification or combination is the cause of
such infringement and was not authorized by Kronos; or, (c) a claim that the Customer Content infringes in any manner any intellectual
property right of any third party, or any of the Customer Content contains any material or information that is obscene, defamatory,
libelous, or slanderous violates any person’s right of publicity, privacy or personality, or has otherwise caused or resulted in any tort,
injury, damage or harm to any other person. Customer will have sole control of the defense of any such action and all negotiations
for its settlement or compromise. Kronos will cooperate fully at Customer’s expense with Customer in the defense, settlement or
compromise of any such action. Customer will indemnify and hold harmless the Kronos Indemnified Parties against any liabilities,
obligations, costs or expenses (including without limitation reasonable attorneys’ fees) actually awarded to a third party as a result of
such Claims by a court of applicable jurisdiction or as a result of Customer’s settlement of such a Claim.
8.2 The Kronos Indemnified Party(ies) shall provide written notice to the indemnifying party promptly after receiving notice of such
Claim. If the defense of such Claim is materially prejudiced by a delay in providing such notice, the purported indemnifying party shall
be relieved from providing such indemnity to the extent of the delay’s impact on the defense. The indemnifying party shall have sole
control of the defense of any indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying
party shall not enter into any settlement which imposes any obligations or restrictions on the applicable Indemnified Parties without
the prior written consent of the other party. The Indemnified Parties shall cooperate fully, at the indemnifying party’s request and
expense, with the indemnifying party in the defense, settlement or compromise of any such action. The indemnified party may retain
its own counsel at its own expense, subject to the indemnifying party’s rights above.
9. SERVICE LEVEL AGREEMENT
Kronos shall provide the service levels and associated credits, when applicable, in accordance with the Service Level Agreement
attached hereto as Exhibit A and which is hereby incorporated herein by reference. CUSTOMER’S SOLE AND EXCLUSIVE REMEDY
IN THE EVENT OF ANY SERVICE OUTAGE OR INTERRUPTION OF THE CLOUD SERVICES OR FAILURE BY KRONOS TO
MEET THE TERMS OF THE APPLICABLE SERVICE LEVEL AGREEMENT, SHALL BE THE REMEDIES PROVIDED IN EXHIBIT
A.
10. LIMITATION OF LIABILITY
IN ADDITION TO THE LIMITATIONS SET FORTH IN THE LICENSE AGREEMENT, EXCEPT WITH RESPECT TO LIABILITY
ARISING FROM KRONOS’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, KRONOS DISCLAIMS ANY AND ALL LIABILITY
AND SERVICE CREDITS, INCLUDING SUCH LIABILITY RELATED TO A BREACH OF SECURITY OR DISCLOSURE, RESULTING
FROM ANY EXTERNALLY INTRODUCED HARMFUL CLOUD SERVICES (INCLUDING VIRUSES, TROJAN HORSES, AND
WORMS), CUSTOMER’S CONTENT OR APPLICATIONS, THIRD PARTY UNAUTHORIZED ACCESS OF EQUIPMENT OR
SOFTWARE OR SYSTEMS, OR MACHINE ERROR.
11. DATA SECURITY
11.1 As part of the Cloud Services, Kronos shall provide those administrative, physical, and technical safeguards for protection of
the security, confidentiality and integrity of Customer data as described at: http://www.kronos.com/products/workforce-central-
cloud/cloud-guidelines.aspx
Customer acknowledges that such safeguards endeavor to mitigate security incidents, but such incidents may not be mitigated entirely
or rendered harmless. Customer should consider any particular Kronos supplied security-related safeguard as just one tool to be
used as part of Customer’s overall security strategy and not a guarantee of security. Both parties agree to comply with all applicable
privacy or data protection statutes, rules, or regulations governing the respective activities of the parties under the Agreement.
11.2 As between Customer and Kronos, all Personally Identifiable Data is Customer’s Confidential Information and will remain the
property of Customer. Customer represents that to the best of Customer’s knowledge such Personally Identifiable Data supplied to
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Kronos is accurate. Customer hereby consents to the use, processing or disclosure of Personally Identifiable Data by Kronos and
Kronos’ Suppliers wherever located only for the purposes described herein and only to the extent such use or processing is necessary
for Kronos to carry out Kronos’ duties and responsibilities under the Agreement or as required by law.
11.3 Prior to initiation of the Cloud Services and on an ongoing basis thereafter, Customer agrees to provide notice to Kronos of any
extraordinary privacy or data protection statutes, rules, or regulations which are or become applicable to Customer’s industry and
which could be imposed on Kronos as a result of provision of the Cloud Services. Customer will ensure that: (a) the transfer to Kronos
and storage of any Personally Identifiable Data by Kronos or Kronos’ Supplier’s data center is permitted under applicable data
protection laws and regulations; and, (b) Customer will obtain consents from individuals for such transfer and storage to the extent
required under applicable laws and regulations.
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EXHIBIT A OF SECTION C
SERVICE LEVEL AGREEMENT (SLA)
Service Level Agreement: The Applications, in a production environment, are provided with the service levels described in this
Exhibit A. SLAs are only applicable to production environments. SLAs will be available upon Customer’s signature of Kronos’ Go
Live Acceptance Form for Customer’s production environment.
99.75% Application Availability
Actual Application Availability % = (Monthly Minutes (MM) minus Total Minutes Not Available (TM)) multiplied by 100) and divided
by Monthly Minutes (MM), but not including Excluded Events
Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to Customer in
Customer’s production environment hosted by Kronos and end when Kronos has restored availability of the Applications. Failure to
meet the 99.75% Application Availability SLA, other than for reasons due to an Excluded Event, will entitle Customer to a credit as
follows:
Actual Application Availability %
(as measured in a calendar month)
Service Credit to be applied to Customer’s
monthly invoice for the affected month
<99.75% to 98.75%
10%
<98.75% to 98.25%
15%
<98.25% to 97.75%
25%
<97.75 to 96.75%
35%
<96.75
50%
"Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the Applications for reasons
other than an Excluded Event.
“Excluded Event” means any event that results in an Outage and is caused by (a) the acts or omissions of Customer, its employees,
customers, contractors or agents; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by
Kronos, including without limitation Customer Content, failures or malfunctions resulting from circuits provided by Customer, any
inconsistencies or changes in Customer’s source environment, including either intentional or accidental connections or disconnections
to the environment; (c) Force Majeure events; (d) expected downtime during the Maintenance Periods described below; (e) any
suspension of the Cloud Services in accordance with the terms of the Agreement to which this Exhibit A is attached; (f) the
unavailability of required Customer personnel, including as a result of failure to provide Kronos with accurate, current contact
information; or (g) using an Application in a manner inconsistent with the Documentation for such Application.
“Maintenance Period” means scheduled maintenance periods established by Kronos to maintain and update the Cloud Services,
when downtime may be necessary, as further described below. The Maintenance Period is used for purposes of the Service Credit
Calculation; Kronos continuously maintains the production environment on a 24x7 basis to reduce disruptions.
Customer Specific Maintenance Period
1.
Customer will choose one of the following time zones for their Maintenance Period:
a.
United States Eastern Standard Time,
b.
GMT/UTC,
c.
Central European Time (CET) or
d.
Australian Eastern Standard Time (AEST).
2.
Customer will choose one of the following days of the week for their Maintenance Period: Saturday, Sunday, Wednesday
or Thursday.
3.
Kronos will use up to six (6) hours in any two (2) consecutive rolling months (specifically: January and February; March and
April; May and June; July and August; September and October; November and December) to perform Customer Specific
Maintenance, excluding any customer requested Application updates. Downtime in excess of these six (6) hours will be
deemed to be an Outage.
4.
Customer Specific Maintenance will occur between 12am-6am during Customer’s selected time zone.
5.
Excluding any customer requested Application updates, Kronos will provide notice for planned downtime via an email notice
to the primary Customer contact at least seven (7) days in advance of any known downtime so planning can be facilitated
by Customer.
Page 15 of 53
6.
Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed upon by Customer
and Kronos.
7.
In absence of instruction from Customer, Kronos will by default perform Maintenance in the time zone where the Data
Center is located.
Non-Customer Specific Maintenance Period
Kronos anticipates non-Customer Specific Maintenance to be performed with no or little (less than three hours per month)
Customer downtime. If for any reason non-Customer Specific Maintenance requires downtime, Kronos will provide as much
notice as reasonably possible of the expected window in which this will occur. Downtime in excess of three (3) hours per
month for Non-Customer Specific Maintenance will be deemed to be an Outage.
“Monthly Minutes (MM)” means the total time, measured in minutes, of a calendar month commencing at 12:00 am of the first day of
such calendar month and ending at 11:59 pm of the last day of such calendar month.
“Total Minutes Not Available (TM)” means the total number of minutes during the calendar month that the Cloud Services are
unavailable as the result of an Outage.
Reporting and Claims Process: Service Credits will not be provided if: (a) Customer is in breach or default under the Agreement at
the time the Outage occurred; or (b) the Outage results from an Excluded Event. If Kronos does not provide the appropriate Service
Credit as due hereunder, Customer must request the Service Credit within sixty (60) calendar days of the conclusion of the month in
which the Service Credit accrues. Customer waives any right to Service Credits not requested within this time period. All performance
calculations and applicable Service Credits are based on Kronos records and data unless Customer can provide Kronos with clear
and convincing evidence to the contrary.
The Service Level Agreements in this Exhibit, and the related Service Credits, apply on a per production environment basis. For the
avoidance of doubt, Outages in one production environment may not be added to Outages in any other production environment for
purposes of calculating Service Credits.
Customer acknowledges that Kronos manages its network traffic in part on the basis of Customer’s utilization of the Cloud Services
and that changes in such utilization may impact Kronos’ ability to manage network traffic. Therefore, notwithstanding anything else
to the contrary, if Customer significantly changes its utilization of the Cloud Services than what is contracted with Kronos and such
change creates a material and adverse impact on the traffic balance of the Kronos network, as reasonably determined by Kronos, the
parties agree to co-operate, in good faith, to resolve the issue.
Page 16 of 53
SECTION D
KRONOS WORKFORCE CENTRAL - SOFTWARE AS A SERVICE (SAAS) TERMS AND CONDITIONS
Customer and Kronos agree that the terms and conditions set forth in this Section D shall apply to the Kronos supply of the commercially
available version of the Workforce Central SaaS Applications in Kronos’ hosting environment, the services related thereto, and the
sale or rental of Equipment (if any) specified on a Kronos Order Form. The Applications described on the Order Form shall be
delivered by means of Customer’s permitted access to the Kronos infrastructure hosting such Applications.
1. DEFINITIONS
“Acceptable Use Policy” means the Kronos policy describing prohibited uses of the Services as further described at:
https://www.kronos.com/policies/acceptable-use
“Agreement” means the terms and conditions of Section D and the Order Form(s).
“Application(s)” or “SaaS Application(s)” means those Kronos software application programs set forth on an Order Form which are
made accessible for Customer to use under the terms of this Agreement.
“Billing Start Date” means the date the billing of the Monthly Service Fees commences as indicated on the applicable Order Form.
Notwithstanding, Implementation Services provided on a time and material basis are billed monthly as delivered. The Billing Start
Date of the Monthly Service Fees for any Services ordered by Customer after the date of this Agreement which are incremental to
Customer’s then-existing Services shall be the date the applicable Order Form is executed by Kronos and Customer.
“Cloud
Services”
means
those
services
related
to
Customer’s
cloud
environment
as
further
described
at:
http://www.kronos.com/products/workforce-central-cloud/cloud-guidelines.aspx
“Customer Content” means all content Customer, or others acting on behalf of or through Customer, posts or otherwise inputs into
the Services.
“Documentation” means technical publications published by Kronos relating to the use of the Services or Applications.
“Equipment” means the Kronos equipment specified on an Order Form.
“Implementation Services” means those professional and educational services provided by Kronos to set up the cloud environment
and configure the Applications. Unless otherwise set forth on an Order Form as “a la carte” services (supplemental fixed fee, fixed
scope services) or “bill as you go” services (time and material services described in a Statement of Work), Kronos will provide, as part
of the Monthly Service Fee for the Applications, the fixed fee, fixed scope Implementation Services described in the Services
Implementation Detail set forth at: www.kronos.com/products/workforce-central-saas/implementation-guidlines.aspx Implementation
Services may also be provided as set forth in Section B.
“Initial Term” means the initial term of the Services as indicated on the Order Form.
“KnowledgePass Content”/“KnowledgePass Education Subscription” have the meanings ascribed in Section 7.5.
“Monthly Service Fee(s)” means the monthly fees described in an Order Form. Monthly Service Fees include fees for usage of the
Applications and the Services, Cloud Services as applicable, and Equipment rental, if any. Billing of the Monthly Service Fee(s)
commences on the Billing Start Date.
“Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth the items ordered by Customer and
to be provided by Kronos and the fees to be paid by Customer.
“Personally Identifiable Data” means information concerning individually identifiable employees of Customer that is protected against
disclosure under applicable law or regulation.
“Renewal Term” means the renewal term of the Services as indicated on the Order Form.
“Services” means (i) the Cloud Services, (ii) accessibility to the commercially available version of the Applications by means of access
to the password protected customer area of a Kronos website, and all such services, items and offerings accessed by Customer
therein, and (ii) the Equipment rented hereunder, if any.
“Statement of Work”, “SOW”, “Services Scope Statement” and “SSS” are interchangeable terms referring to a written description
of the Implementation Services mutually agreed upon by Kronos and Customer and set forth as “bill as you go” services on the Order
Form.
“Supplier” means any contractor, subcontractor or licensor of Kronos providing software, equipment and/or services to Kronos which
are incorporated into or otherwise related to the Services.
“Term” means the Initial Term and any Renewal Terms thereafter.
“Training Points” has the meaning ascribed to it in Section 7.6 below.
Page 17 of 53
2. TERM
2.1 Billing for the Services commences on the Billing Start Date, and continues for the Initial Term or until terminated in accordance
with the provisions hereof. At the expiration of the Initial Term and each Renewal Term as applicable, the Services shall automatically
renew each year for an additional Renewal Term until terminated in accordance with the provisions hereof.
2.2 Customer may terminate the Services and this Agreement for convenience upon sixty (60) days prior written notice subject to
Customer’s payment for services performed. Kronos may terminate the Services and this Agreement to be effective at the expiration
of the then current Term upon no less than sixty (60) days prior written notice.
2.3 Either party may terminate the Services and the Agreement upon a material breach of the Agreement by the other party if such
breach is not cured within fifteen (15) days after receipt of written notice.
2.4 In the event that either party becomes insolvent, makes a general assignment for the benefit of creditors, is adjudicated a bankrupt
or insolvent, commences a case under applicable bankruptcy laws, or files a petition seeking reorganization, the other party may
request adequate assurances of future performance. Failure to provide adequate assurances, in the requesting party’s reasonable
discretion, within ten (10) days of delivery of the request shall entitle the requesting party to terminate the Agreement immediately
upon written notice to the other party.
2.5 If the Agreement is terminated for any reason:
(a) Customer shall pay Kronos within thirty (30) days of such termination, all fees accrued and unpaid under this Agreement prior to
the effective date of such termination, provided however, if Customer terminates for material breach of the Agreement by Kronos,
Kronos shall refund Customer any pre-paid fees for Services not delivered by Kronos;
(b) Customer’s right to access and use the Applications shall be revoked and be of no further force or effect and return rented Equipment
as provided in Section 9.1 below;
(c) Customer agrees to timely return all Kronos-provided materials related to the Services to Kronos at Customer’s expense or,
alternatively, destroy such materials and provide Kronos with an officer’s certification of the destruction thereof; and
(d) All provisions in the Agreement, which by their nature are intended to survive termination, shall so survive.
2.6 Customer Content shall be available to Customer to retrieve at any time and at no additional charge throughout the Term and for
no more than fifteen (15) days after expiration or termination of the Agreement for any reason. After such time period, Kronos shall
have no further obligation to store or make available the Customer Content and will securely delete all Customer Content without
liability of any kind.
3. FEES AND PAYMENT
3.1 Customer shall pay Kronos the Monthly Service Fees, the fees for the Implementation Services and any additional one time or
recurring fees for Equipment, Training Points, KnowledgePass Education Subscription and such other Kronos offerings, all as set
forth on the Order Form. The Monthly Service Fees will be invoiced on the frequency set forth on the Order Form (“Billing Frequency”).
If Customer and Kronos have signed a Statement of Work for the Implementation Services, Implementation Services will be invoiced
monthly as delivered unless otherwise indicated on the Order Form. If Kronos is providing Implementation Services in accordance
with the Services Implementation Guideline or as “a la carte” services on the Order Form, Kronos will invoice Customer for
Implementation Services in advance of providing such Implementation Services unless otherwise indicated on the Order Form. All
other Kronos offerings will be invoiced upon execution of the applicable Order Form by Kronos and Customer. Unless otherwise
indicated on an Order Form, payment for all items shall be due 30 days following date of invoice. All payments shall be sent to the
attention of Kronos as specified on the invoice. Except as expressly set forth in this Agreement, all amounts paid to Kronos are non-
refundable. Customer is responsible for all applicable federal, state, country, provincial or local taxes relating to the goods and
services provided by Kronos hereunder (including without limitation GST and/or VAT if applicable), excluding taxes based on Kronos’
income or business privilege.
3.2 If any amount owing under this or any other agreement between the parties is thirty (30) or more days overdue, Kronos may,
without limiting Kronos’ rights or remedies, suspend Services until such amounts are paid in full. Kronos will provide at least seven
(7) days’ prior written notice that Customer’s account is overdue before suspending Services.
3.3 At the latest of (i) one (1) year after the effective date of this Agreement, or (ii) expiration of the Initial Term, and at each annual
anniversary of that date thereafter, Kronos may increase the Monthly Service Fee rates in an amount not to exceed four percent (4%).
The increased Monthly Service Fees will be reflected in the monthly invoice following the effective date of such increase without
additional notice.
4. RIGHTS TO USE
4. 1 Subject to the terms and conditions of the Agreement, Kronos hereby grants Customer a limited, revocable, non-exclusive, non-
transferable, non-assignable right to use during the Term and for internal business purposes only: a) the Applications and related
services, including the Documentation; b) training materials and KnowledgePass Content; and, c) any embedded third party software,
libraries, or other components, which form a part of the Services. The Services contain proprietary trade secret technology of Kronos
and its Suppliers. Unauthorized use and/or copying of such technology are prohibited by law, including United States and foreign
copyright law. Customer shall not reverse compile, disassemble or otherwise convert the Applications or other software comprising
the Services into uncompiled or unassembled code. Customer shall not use any of the third party software programs (or the data
models therein) included in the Services except solely as part of and in connection with the Services. The JBoss® Enterprise
Middleware
components
of
the
Service
are
subject
to
the
end
user
license
agreement
found
at
http://www.redhat.com/licenses/jboss_eula.html Customer acknowledges that execution of separate third party agreements may be
required in order for Customer to use certain add-on features or functionality, including without limitation tax filing services.
Page 18 of 53
4.2 Customer acknowledges and agrees that the right to use the Applications is limited based upon the amount of the Monthly Service
Fees paid by Customer. Customer agrees to use only the modules and/or features for the number of employees and users as
described on the Order Form. Customer agrees not to use any other modules or features nor increase the number of employees and
users unless Customer pays for such additional modules, features, employees or users, as the case may be. Customer may not
license, relicense or sublicense the Services, or otherwise permit use of the Services (including timesharing or networking use) by
any third party. Customer may not provide service bureau or other data processing services that make use of the Services without
the express prior written consent of Kronos. No license, right, or interest in any Kronos trademark, trade name, or service mark, or
those of Kronos’ licensors or Suppliers, is granted hereunder.
4.3 Customer may authorize its third party contractors and consultants to access the Services through Customer’s administrative
access privileges on an as needed basis, provided Customer: a) abides by its obligations to protect Confidential Information as set
forth in this Agreement; b) remains responsible for all such third party usage and compliance with the Agreement; and c) does not
provide such access to a competitor of Kronos who provides workforce management services.
4.4 Customer acknowledges and agrees that, as between Customer and Kronos, Kronos retains ownership of all right, title and
interest to the Services, all of which are protected by copyright and other intellectual property rights, and that, other than the express
rights granted herein and under any other agreement in writing with Customer, Customer shall not obtain or claim any rights in or
ownership interest to the Services or Applications or any associated intellectual property rights in any of the foregoing. Customer
agrees to comply with all copyright and other intellectual property rights notices contained on or in any information obtained or
accessed by Customer through the Services.
4.5 When using and applying the information generated by the Services, Customer is responsible for ensuring that Customer complies
with applicable laws and regulations. If the Services include the Workforce Payroll Applications or Workforce Absence Management
Applications: (i) Customer is solely responsible for the content and accuracy of all reports and documents prepared in whole or in
part by using these Applications, (ii) using these Applications does not release Customer of any professional obligation concerning
the preparation and review of any reports and documents, (iii) Customer does not rely upon Kronos, Best Software, Inc. or these
Applications for any advice or guidance regarding compliance with federal and state laws or the appropriate tax treatment of items
reflected on such reports or documents, and (iv) Customer will review any calculations made by using these Applications and satisfy
itself that those calculations are correct.
5. ACCEPTABLE USE
5.1 Customer shall take all reasonable steps to ensure that no unauthorized persons have access to the Services, and to ensure
that no persons authorized to have such access shall take any action that would be in violation of this Agreement. Customer is
responsible for all activities undertaken under the auspices of its passwords and other login credentials to use the Services.
5.2 Customer represents and warrants to Kronos that Customer has the right to publish and disclose the Customer Content in
connection with the Services. Customer represents and warrants to Kronos that the Customer Content will comply with the Acceptable
Use Policy.
5.3 Customer will not (a) use, or allow the use of, the Services in contravention of the Acceptable Use Policy.
5.4 Kronos may suspend the Services immediately upon written notice in the event of any security risk, negative impact on
infrastructure or Acceptable Use Policy violation.
6. CONNECTIVITY AND ACCESS
Customer acknowledges that Customer shall (a) be responsible for securing, paying for, and maintaining connectivity to the Services
(including any and all related hardware, software, third party services and related equipment and components); and (b) provide
Kronos and Kronos’ representatives with such physical or remote access to Customer’s computer and network environment as
Kronos deems reasonably necessary in order for Kronos to perform its obligations under the Agreement. Customer will make all
necessary arrangements as may be required to provide access to Customer’s computer and network environment if necessary for
Kronos to perform its obligations under the Agreement.
7.
IMPLEMENTATION AND SUPPORT
7.1 Implementation Services. Kronos will provide the Implementation Services to Customer. Implementation Services described
in a SOW are provided on a time and materials basis, billed monthly as delivered unless otherwise indicated on the Order Form.
Implementation Services described in the Services Implementation Guideline are provided on a fixed fee basis. If Customer requests
additional Implementation Services beyond those described in the Services Implementation Guideline, Kronos will create a change
order for Customer’s review and approval and any additional Implementation Services to be provided by Kronos will be billed as
delivered at the then-current Kronos professional services rates. Kronos’ configuration of the Applications will be based on information
and work flows that Kronos obtains from Customer during the discovery portion of the implementation. Customer shall provide Kronos
with necessary configuration-related information in a timely manner to ensure that mutually agreed implementation schedules are met.
In the event that Kronos is required to travel to Customer’s location during the implementation, travel expenses shall be set forth in
accordance with Section 6 Exhibit A. Kronos shall invoice Customer for such travel expenses and payment thereof shall be due net
thirty (30) days from date of invoice.
7.2 Additional Services. Customer may engage Kronos to provide other services which may be fixed by activity (“a la carte”) or
provided on a time and materials basis (“bill as you go”) as indicated on the applicable Order Form.
Page 19 of 53
7.3 Support. Kronos will provide 24x7 support for the cloud infrastructure, the availability to the cloud environment, and telephone
support for the logging of functional problems and user problems. Customer may log questions online via the Kronos Customer Portal.
As part of such support, Kronos will make updates to the Services available to Customer at no charge as such updates are released
generally to Kronos’ customers. Customer agrees that Kronos may install critical security patches and infrastructure updates
automatically as part of the Services. Kronos’ then-current Support Services Policies shall apply to all Support Services provided by
Kronos and may be accessed at: http://www.kronos.com/Support/SupportServicesPolicies.htm (“Support Policies”). In the event of a
conflict between the Support Policies and this Agreement, the terms of this Agreement shall prevail.
7.4 Support Services for Equipment. Provided Customer has purchased support services for the Equipment, the following terms
shall apply (Depot Exchange support services for rented Equipment are included in the rental fees for such Equipment):
(a) Customer may select, as indicated on an Order Form, an Equipment Support Services option offered by the local Kronos entity
responsible for supporting the Equipment if and as such offerings are available within the Kronos territory corresponding to the
Equipment’s location. Kronos shall provide each Equipment Support Services offering as specified herein.
(i) Depot Exchange and Depot Repair. If Customer has selected Depot Exchange or Depot Repair Equipment Support
Services, the following provisions shall apply: Upon the failure of installed Equipment, Customer shall notify Kronos of such failure
and Kronos will provide remote fault isolation at the FRU (Field Replacement Unit) or subassembly level and attempt to resolve the
problem. Those failures determined by Kronos to be Equipment related shall be dispatched to a Kronos Depot Repair Center, and
Customer will be provided with a Return Material Authorization Number (RMA) for the failed Equipment if Customer is to return the
failed Equipment to Kronos, as reasonably determined by Kronos. Customer must return the failed Equipment with the supplied RMA
number. Hours of operation, locations and other information related to Kronos’ Depot Repair Centers are available upon request and
are subject to change. Return and repair procedures for failed Equipment shall be provided based on the Depot option - Depot
Exchange or Depot Repair - selected by Customer on the applicable Order Form and as specified herein and in Kronos’ then-current
Support Services Policies. Service packs for the Equipment (as described in subsection (ii) below) are included in both Depot
Exchange and Depot Repair Support Services.
Depot Exchange: Kronos will provide a replacement for the failed Equipment at the FRU or subassembly level on an
"advanced exchange" basis, utilizing a carrier of Kronos’ choice. Replacement Equipment will be shipped the same day, for
delivery to Customer’s location as further described in the Support Policies. REPLACEMENT EQUIPMENT MAY BE NEW
OR RECONDITIONED. Customer shall specify the address to which the Equipment is to be shipped. All shipments will
include the Kronos provided RMA designating the applicable Kronos Depot Repair Center, as the recipient. Customer, upon
receipt of the replacement Equipment from Kronos, shall package the defective Equipment in the materials provided by
Kronos, with the RMA supplied and promptly return failed Equipment directly to Kronos.
Depot Repair: Upon failure of installed Equipment, Customer shall install a Spare Product (as defined below) to replace
the failed Equipment. Customer shall then return the failed Equipment, with the required RMA, to the applicable Kronos
Depot Repair Center. Customer shall make reasonable efforts to return the failed Equipment using the same or substantially
similar packing materials in which the original Equipment was sent. Customer shall also specify the address to which the
repaired Equipment should be return shipped. Upon receipt of the failed Equipment, Kronos shall repair the failed
Equipment and ship it, within ten (10) business days after receipt, to Customer. Kronos shall ship the repaired Equipment
by regular surface transportation to Customer.
(ii) Device Software Updates Only. If Customer has selected Device Software Equipment Support Services, Customer
shall be entitled to receive:
(A) Service packs for the Equipment (which may contain system software updates, firmware updates, security updates, and
feature enhancements) available for download at Kronos’ customer portal. Service packs for the Equipment are not installed
by the Kronos Depot Repair Center but are available for download at Kronos’ customer portal, provided Customer is
maintaining the Equipment under an annual Equipment Support Services plan with Kronos.; and
(B) Access to the Kronos Support Services Center for the logging of requests for assistance downloading service packs for
the Equipment.
(b) Warranty. Kronos warrants that all service packs and firmware updates provided under this Agreement shall materially perform
in accordance with the Kronos published specifications for a period of ninety (90) days after download by Customer. In the event of
a breach of this warranty, Customer’s exclusive remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or
firmware update(s), at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the
specifications.
(c) Responsibilities of Customer. It is Customer’s responsibility to purchase and retain, at Customer’s location and at Customer’s
sole risk and expense, a sufficient number of spare products ("Spare Products") to allow Customer to replace failed Equipment at
Customer’s locations in order for Customer to continue its operations while repairs are being performed and replacement Equipment
is being shipped to Customer. For each of the Depot Exchange and Depot Repair Equipment Support Services options, Customer
agrees that it shall return failed Equipment promptly as the failures occur and that it shall not hold failed Equipment and send failed
Equipment to Kronos in "batches" which shall result in a longer turnaround time to Customer. In addition, Customer agrees to:
(i) Maintain the Equipment in an environment conforming to the Kronos published specifications for such Equipment;
(ii) Not perform self-repairs on the Equipment (i.e., replacing components) without prior written authorization from Kronos;
(iii) De-install all failed Equipment and install all replacement Equipment in accordance with Kronos’ written installation
guidelines;
(iv) Ensure that the Equipment is returned to Kronos properly packaged; and
(v) Obtain an RMA before returning any Equipment to Kronos and place the RMA clearly and conspicuously on the outside
of the shipping package. Customer may only return the specific Equipment authorized by Kronos when issuing the RMA.
Page 20 of 53
(d) Delivery. All domestic shipments within the United States are FOB Destination to/from Customer and Kronos with the shipping
party bearing all costs and risks of loss, and with title passing upon delivery to the identified destination. All international shipments
from Kronos to Customer are DAP (Incoterms 2010) to the applicable Customer location, and are DDP (Incoterms 2010) to the
applicable Kronos Depot Repair Center when Customer is shipping to Kronos. Customer is responsible for all duties and taxes when
sending Equipment to Kronos.
7.5 KnowledgePass Education Subscription. When KnowledgePass Education Subscription is purchased on an Order Form,
Kronos will provide Customer with the KnowledgePass Education Subscription. The KnowledgePass Education Subscription provides
access to certain educational offerings provided by Kronos (the “KnowledgePass Content”). Customer recognizes and agrees that
the KnowledgePass Content is copyrighted by Kronos. Customer is permitted to make copies of the KnowledgePass Content provided
in *pdf form solely for Customer’s internal use. Customer may not disclose such KnowledgePass Content to any third party other than
Customer’s employees. Customer may not edit, modify, revise, amend, change, alter, customize or vary the KnowledgePass Content
without the written consent of Kronos, provided that Customer may download and modify contents of training kits solely for Customer’s
internal use.
7.6 Training Points. “Training Points” which are purchased by Customer may be redeemed for an equivalent value of instructor-led
training sessions offered by Kronos. Training Points may be redeemed only during the Term at any time no more than twelve (12) months
after the date of the applicable Order Form, after which time such Training Points shall expire and be of no value. Training Points may
not be exchanged for other Kronos products or services.
7.7 Training Courses. When Training Points or training sessions are set forth in an SSS, the SSS applies. When Training Points
or training sessions are not set forth in an SSS, as part of the Services, for each SaaS application module included in the Services
purchased by Customer, Customer’s employees shall be entitled to attend, in the quantity indicated, the corresponding training
courses set forth at: www.kronos.com/products/workforce-central-saas/training-guidlines.aspx
Participation in such training courses is limited to the number of seats indicated for the courses corresponding to the modules forming
a part of the Services purchased by Customer.
7.8 Technical Account Manager. Customers purchasing a Kronos Technical Account Manager (“TAM”) as indicated on the Order
Form shall receive the services of a dedicated, but not exclusive, TAM for one production instance of the Software. Customer will
designate up to two primary and three secondary backup technical contacts (“Technical Contacts”) to be the sole contacts with the
TAM. Upon request, Customer may designate additional and/or backup Technical Contacts. Customer is required to place all primary
Technical Contacts through Kronos training for the Applications covered under this Agreement at Customer’s expense.
8. Customer content
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential
Information of Customer. Kronos may, but shall have no obligation to, monitor Customer Content from time to time to ensure
compliance with the Agreement and applicable law.
9. EQUIPMENT
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential
Information of Customer. Customer will ensure that all Customer Content conforms with the terms of this Agreement and applicable
law. Kronos and its Suppliers may, but shall have no obligation to, access and monitor Customer Content from time to time to provide
the Services and to ensure compliance with this Agreement and applicable law. Customer is solely responsible for any claims related
to Customer Content and for properly handling and processing notices that are sent to Customer regarding Customer Content.
9.1 Rented Equipment. The following terms apply only to Equipment Customer rents from Kronos:
a)
Rental Term and Warranty Period. The term of the Equipment rental and the “Warranty Period” for such Equipment shall
run coterminously with the Term of the other Services provided under the Agreement.
b)
Insurance. Customer shall insure the Equipment for an amount equal to the replacement value of the Equipment for loss
or damage by fire, theft, and all normal extended coverage at all times. No loss, theft or damage after shipment of the Equipment to
Customer shall relieve Customer from Customer’s obligations under the Agreement.
c)
Location/Replacement. Customer shall not make any alterations or remove the Equipment from the place of original
installation without Kronos’ prior written consent. Kronos shall have the right to enter Customer’s premises to inspect the Equipment
during normal business hours. Kronos reserves the right, at its sole discretion and at no additional cost to Customer, to replace any
Equipment with newer or alternative technology Equipment as long as the replacement Equipment at least provides the same level of
functionality as that being replaced.
d)
Ownership. All Equipment shall remain the property of Kronos. All Equipment is, and at all times shall remain, separate
items of personal property, notwithstanding such Equipment’s attachment to other equipment or real property. Customer shall not sell
or otherwise encumber the Equipment. Customer shall furnish any assurances, written or otherwise, reasonably requested by Kronos
to give full effect to the intent of terms of this paragraph (d).
e)
Equipment Support. Kronos shall provide to Customer the Equipment support services described in Section 7.
f)
Return of Equipment. Upon termination of the Agreement or the applicable Order Form, Customer shall return, within thirty
(30) days of the effective date of termination and at Customer’s expense, the Equipment subject to this Section 9.1. Equipment will
be returned to Kronos in the same condition as and when received, reasonable wear and tear excepted. If Customer fails to return
Equipment within this time period, upon receiving an invoice from Kronos, Customer shall pay Kronos the then list price of the
unreturned Equipment.
9.2 Purchased Equipment. The following terms apply only to Equipment Customer purchases from Kronos:
a)
Ownership and Warranty Period. Title to the Equipment shall pass to Customer upon delivery to the carrier. The “Warranty
Period” for the Equipment shall be for a period of ninety (90) days from such delivery (unless otherwise required by law).
Page 21 of 53
b)
Equipment Support. Kronos shall provide to Customer the Equipment support services described in this Agreement if
purchased separately by Customer as indicated on the applicable Order Form. If purchased, Equipment support services have a term
of one (1) year commencing upon expiration of the Warranty Period. Equipment support services will be automatically extended for
additional one year terms on the anniversary of its commencement date ("Renewal Date"), unless either party has given the other
thirty (30) days written notification of its intent not to renew. Kronos may change the annual support charges for Equipment support
services effective at the end of the initial one (1) year term or effective on the Renewal Date, by giving Customer at least thirty (30)
days prior written notification.
10. SERVICE LEVEL AGREEMENT
Kronos shall provide the service levels and associated credits, when applicable, in accordance with the Service Level Agreement
attached hereto as Exhibit D-1 and which is hereby incorporated herein by reference. CUSTOMER’S SOLE AND EXCLUSIVE
REMEDY IN THE EVENT OF ANY SERVICE OUTAGE or INTERRUPTION OF the SERVICES OR FAILURE BY KRONOS TO
MEET THE TERMS OF the APPLICABLE service level agreement, SHALL BE THE REMEDIES PROVIDED IN exhibit D-1.
11. LIMITED WARRANTY; DISCLAIMERS OF WARRANTY
11.1 Kronos represents and warrants to Customer that the Applications, under normal operation as specified in the Documentation
and when used as authorized herein, will perform substantially in accordance with such Documentation during the Term.
11.2 Kronos’ sole obligation and Customer’s sole and exclusive remedy for any breach of the foregoing warranty is limited to Kronos’
reasonable commercial efforts to correct the non-conforming Services at no additional charge to Customer. In the event that Kronos
is unable to correct material deficiencies in the Services arising during the Warranty Period, after using Kronos’ commercially
reasonable efforts to do so, Customer shall be entitled to terminate the then remaining Term of the Agreement as Customer’s sole
and exclusive remedy. Kronos’ obligations hereunder for breach of warranty are conditioned upon Customer notifying Kronos of the
material breach in writing, and providing Kronos with sufficient evidence of such non-conformity to enable Kronos to reproduce or
verify the same.
11.3 Kronos warrants to Customer that each item of Equipment shall be free from defects in materials and workmanship during the
Warranty Period. In the event of a breach of this warranty, Customer’s sole and exclusive remedy shall be Kronos’ repair or
replacement of the deficient Equipment, at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have
conformed to the Documentation for such Equipment. This warranty is extended to Customer only and shall not apply to any Equipment
(or parts thereof) in the event of:
a)
damage, defects or malfunctions resulting from misuse, accident, neglect, tampering, (including without limitation
modification or replacement of any Kronos components on any boards supplied with the Equipment), unusual physical or electrical
stress or causes other than normal and intended use;
b)
failure of Customer to provide and maintain a suitable installation environment, as specified in the published specifications
for such Equipment; or
c)
malfunctions resulting from the use of badges or supplies not approved by Kronos.
Except as provided for in this Section 11, Kronos hereby disclaims all warranties, conditions, guaranties and representations relating
to the Services, express or implied, oral or in writing, including without limitation the implied warranties of merchantability, fitness for
a particular purpose, title and non-infringement, and whether or not arising through a course of dealing. The Services are not
guaranteed to be error-free or uninterrupted. Except as specifically provided in this Agreement, Kronos makes no warranties or
representations concerning the compatibility of the Services, the SaaS Applications or the Equipment nor any results to be achieved
therefrom.
12.0 DATA SECURITY
12.1 As part of the Services, Kronos shall provide those administrative, physical, and technical safeguards for protection of the
security, confidentiality and integrity of Customer data as described at: http://www.kronos.com/products/workforce-central-
cloud/cloud-guidelines.aspx
Customer acknowledges that such safeguards endeavor to mitigate security incidents, but such incidents may not be mitigated
entirely or rendered harmless. Customer should consider any particular Kronos supplied security-related safeguard as just one tool
to be used as part of Customer’s overall security strategy and not a guarantee of security. Both parties agree to comply with all
applicable privacy or data protection statutes, rules, or regulations governing the respective activities of the parties under the
Agreement.
12.2 As between Customer and Kronos, all Personally Identifiable Data is Customer’s Confidential Information and will remain the
property of Customer. Customer represents that to the best of Customer’s knowledge such Personally Identifiable Data supplied to
Kronos is accurate. Customer hereby consents to the use, processing or disclosure of Personally Identifiable Data by Kronos and
Kronos’ Suppliers wherever located only for the purposes described herein and only to the extent such use or processing is
necessary for Kronos to carry out Kronos’ duties and responsibilities under the Agreement or as required by law.
12.3 Prior to initiation of the Services under the Agreement and on an ongoing basis thereafter, Customer agrees to provide notice
to Kronos of any extraordinary privacy or data protection statutes, rules, or regulations which are or become applicable to
Customer’s industry and which could be imposed on Kronos as a result of provision of the Services. Customer will ensure that: (a)
the transfer to Kronos and storage of any Personally Identifiable Data by Kronos or Kronos’ Supplier’s data center is permitted under
applicable data protection laws and regulations; and, (b) Customer will obtain consents from individuals for such transfer and
storage to the extent required under applicable laws and regulations.
13. INDEMNIFICATION
13.1 Kronos shall defend Customer and its respective directors, officers, and employees (collectively, the “Customer Indemnified
Parties”), from and against any and all notices, charges, claims, proceedings, actions, causes of action and suits, brought by a third
Page 22 of 53
party (each a “Claim”) alleging that the permitted uses of the Services infringe or misappropriate any United States or Canadian
copyright or patent and will indemnify and hold harmless the Customer Indemnified Parties against any liabilities, obligations, costs or
expenses (including without limitation reasonable attorneys’ fees) actually awarded to a third party as a result of such Claim by a court
of applicable jurisdiction or as a result of Kronos’ settlement of such a Claim. In the event that a final injunction is obtained against
Customer’s use of the Services by reason of infringement or misappropriation of such copyright or patent, or if in Kronos’ opinion, the
Services are likely to become the subject of a successful claim of such infringement or misappropriation, Kronos, at Kronos’ option
and expense, will use commercially reasonable efforts to (a) procure for Customer the right to continue using the Services as provided
in the Agreement, (b) replace or modify the Services so that the Services become non-infringing but remain substantively similar to
the affected Services, and if neither (a) or (b) is commercially feasible, to (c) terminate the Agreement and the rights granted hereunder
after provision of a refund to Customer of the Monthly Service Fees paid by Customer for the infringing elements of the Services
covering the period of their unavailability.
13.2 Kronos shall have no liability to indemnify or defend Customer to the extent the alleged infringement is based on: (a) a
modification of the Services by anyone other than Kronos; (b) use of the Services other than in accordance with the Documentation
for such Service or as authorized by the Agreement; (c) use of the Services in conjunction with any data, equipment, service or
software not provided by Kronos, where the Services would not otherwise itself be infringing or the subject of the claim; or (d) use of
the Services by Customer other than in accordance with the terms of the Agreement. Notwithstanding the foregoing, with regard to
infringement claims based upon software created or provided by a licensor to Kronos or Suppliers, Kronos’ maximum liability will be
to assign to Customer Kronos’ or Supplier’s recovery rights with respect to such infringement claims, provided that Kronos or Kronos’
Supplier shall use commercially reasonable efforts at Customer’s cost to assist Customer in seeking such recovery from such licensor.
13.3 Customer shall be responsible and liable for all damages and cost of \Kronos, its Suppliers and their respective directors, officers,
employees, agents and independent contractors any and all Claims alleging that: (a) employment-related claims arising out of
Customer’s configuration of the Services; (b) Customer’s modification or combination of the Services with other services, software or
equipment not furnished by Kronos, provided that such Customer modification or combination is the cause of such infringement and was
not authorized by Kronos; or, (c) a claim that the Customer Content infringes in any manner any intellectual property right of any third
party, or any of the Customer Content contains any material or information that is obscene, defamatory, libelous, or slanderous violates
any person’s right of publicity, privacy or personality, or has otherwise caused or resulted in any tort, injury, damage or harm to any
other person.
13.4 The Indemnified Party(ies) shall provide written notice to the indemnifying party promptly after receiving notice of such Claim. If
the defense of such Claim is materially prejudiced by a delay in providing such notice, the purported indemnifying party shall be
relieved from providing such indemnity to the extent of the delay’s impact on the defense. The indemnifying party shall have sole
control of the defense of any indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying
party shall not enter into any settlement which imposes any obligations or restrictions on the applicable Indemnified Parties without
the prior written consent of the other party. The Indemnified Parties shall cooperate fully, at the indemnifying party’s request and
expense, with the indemnifying party in the defense, settlement or compromise of any such action. The indemnified party may retain
its own counsel at its own expense, subject to the indemnifying party’s rights above.
14. LIMITATION OF LIABILITY
14.1 Except as specifically provided in this agreement, Kronos and its Suppliers will not be liable for any damages or injuries caused
by the use of the services or by any errors, delays, interruptions in transmission, or failures of the Services.
14.2 Except for Kronos’ indemnification obligations set forth in Section 13 above, the total aggregate liability of Kronos or Kronos’
suppliers to Customer and/or any third party in connection with the Agreement shall be limited to direct damages proven by Customer,
such direct damages not to exceed an amount equal to the total net payments received by Kronos for the Services in the twelve (12)
month period immediately preceding the date in which such claim arises.
14.3 except for Kronos’ indemnification obligations set forth in Section 13 above, in no event shall Kronos or Kronos’ suppliers, their
respective affiliates, service providers, or agents be liable to Customer or any third party for any incidental, special, punitive,
consequential or other indirect damages or for any lost or imputed profits or revenues, lost data or cost of procurement of substitute
services resulting from delays, nondeliveries, misdeliveries or services interruption, however caused, arising from or related to the
Services or the Agreement, regardless of the legal theory under which such liability is asserted, whether breach of warranty,
indemnification, negligence, strict liability or otherwise, and whether liability is asserted in contract, tort or otherwise, and regardless
of whether Kronos or Supplier has been advised of the possibility of any such liability, loss or damage.
14.4 Except with respect to liability arising from Kronos’ gross negligence or willful misconduct, Kronos disclaims any and all liability,
including without limitation liability related to a breach of data security and confidentiality obligations, resulting from any externally
introduced harmful program (including without limitation viruses, trojan horses, and worms), Customer’s Content or applications, third
party unauthorized access of Equipment, SaaS Applications or systems, or machine error.
Page 23 of 53
EXHIBIT D-1
SERVICE LEVEL AGREEMENT (SLA)
Service Level Agreement: The Services, in a production environment, are provided with the service levels described in this Exhibit
A. SLAs are only applicable to production environments. SLAs will be available upon Customer’s signature of Kronos’ Go Live
Acceptance Form for Customer’s production environment.
99.75% Application Availability
Actual Application Availability % = (Monthly Minutes (MM) minus Total Minutes Not Available (TM)) multiplied by 100) and divided
by Monthly Minutes (MM), but not including Excluded Events
Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to Customer in
Customer’s production environment hosted by Kronos and end when Kronos has restored availability of the Applications. Failure to
meet the 99.75% Application Availability SLA, other than for reasons due to an Excluded Event, will entitle Customer to a credit as
follows:
Actual Application Availability %
(as measured in a calendar month)
Service Credit to be applied to Customer’s
monthly invoice for the affected month
<99.75% to 98.75%
10%
<98.75% to 98.25%
15%
<98.25% to 97.75%
25%
<97.75 to 96.75%
35%
<96.75
50%
"Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the Applications for reasons
other than an Excluded Event.
“Excluded Event” means any event that results in an Outage and is caused by (a) the acts or omissions of Customer, its employees,
customers, contractors or agents; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by
Kronos, including without limitation Customer Content, failures or malfunctions resulting from circuits provided by Customer, any
inconsistencies or changes in Customer’s source environment, including either intentional or accidental connections or disconnections
to the environment; (c) Force Majeure events; (d) expected downtime during the Maintenance Periods described below; (e) any
suspension of the Services in accordance with the terms of the Agreement to which this Exhibit A is attached; (f) the unavailability of
required Customer personnel, including as a result of failure to provide Kronos with accurate, current contact information; or (g) using
an Application in a manner inconsistent with the Documentation for such Application.
“Maintenance Period” means scheduled maintenance periods established by Kronos to maintain and update the Services, when
downtime may be necessary, as further described below. The Maintenance Period is used for purposes of the Service Credit
Calculation; Kronos continuously maintains the production environment on a 24x7 basis to reduce disruptions.
Customer Specific Maintenance Period
1.
Customer will choose one of the following time zones for their Maintenance Period:
a.
United States Eastern Standard Time,
b.
GMT/UTC,
c.
Central European Time (CET) or
d.
Australian Eastern Standard Time (AEST).
2.
Customer will choose one of the following days of the week for their Maintenance Period: Saturday, Sunday, Wednesday
or Thursday.
3.
Kronos will use up to six (6) hours in any two (2) consecutive rolling months (specifically: January and February; March and
April; May and June; July and August; September and October; November and December) to perform Customer Specific
Maintenance, excluding any customer requested Application updates. Downtime in excess of these six (6) hours will be
deemed to be an Outage.
4.
Customer Specific Maintenance will occur between 12am-6am during Customer’s selected time zone.
5.
Excluding any customer requested Application updates, Kronos will provide notice for planned downtime via an email notice
to the primary Customer contact at least seven (7) days in advance of any known downtime so planning can be facilitated
by Customer.
6.
Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed upon by Customer
and Kronos.
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7.
In absence of instruction from Customer, Kronos will by default perform Maintenance in the time zone where the Data
Center is located.
Non-Customer Specific Maintenance Period
Kronos anticipates non-Customer Specific Maintenance to be performed with no or little (less than three hours per month)
Customer downtime. If for any reason non-Customer Specific Maintenance requires downtime, Kronos will provide as much
notice as reasonably possible of the expected window in which this will occur. Downtime in excess of three (3) hours per
month for Non-Customer Specific Maintenance will be deemed to be an Outage.
“Monthly Minutes (MM)” means the total time, measured in minutes, of a calendar month commencing at 12:00 am of the first day of
such calendar month and ending at 11:59 pm of the last day of such calendar month.
“Total Minutes Not Available (TM)” means the total number of minutes during the calendar month that the Services are unavailable
as the result of an Outage.
Reporting and Claims Process: Service Credits will not be provided if: (a) Customer is in breach or default under the Agreement at
the time the Outage occurred; or (b) the Outage results from an Excluded Event.
Kronos will provide Customer with an Application Availability report on a monthly basis for each prior calendar month. Within sixty
(60) days of receipt of such report, Customer must request the applicable Service Credit by written notice to Kronos. Customer waives
any right to Service Credits not requested within this time period. All performance calculations and applicable Service Credits are
based on Kronos records and data unless Customer can provide Kronos with clear and convincing evidence to the contrary.
The Service Level Agreements in this Exhibit, and the related Service Credits, apply on a per production environment basis. For the
avoidance of doubt, Outages in one production environment may not be added to Outages in any other production environment for
purposes of calculating Service Credits.
Customer acknowledges that Kronos manages its network traffic in part on the basis of Customer’s utilization of the Services and that
changes in such utilization may impact Kronos’ ability to manage network traffic. Therefore, notwithstanding anything else to the
contrary, if Customer significantly changes its utilization of the Services than what is contracted with Kronos and such change creates
a material and adverse impact on the traffic balance of the Kronos network, as reasonably determined by Kronos, the parties agree
to co-operate, in good faith, to resolve the issue.
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SECTION E
KRONOS ADDENDUM
WORKFORCE TELESTAFF IVR SERVICE
(Licensed or User based)
The parties hereby agree that the following terms and conditions are supplemental terms and conditions to the Agreement and are
applicable to the Workforce Telestaff IVR service (“Workforce Telestaff IVR”), a service of Aspect Software Inc., which Kronos is
authorized to resell. The Workforce Telestaff IVR service can be ordered either on a licensed basis (in which case Workforce Telestaff
IVR is only available with a perpetual license to Workforce Telestaff and is not hosted by Kronos) (“Workforce Telestaff IVR License
Per Port”) or on a per minute basis (“Workforce Telestaff IVR Service”). The applicable designation for Workforce Telestaff IVR will
be indicated on the applicable Order Form..
Description. Workforce Telestaff IVR is an Interactive Voice Response (IVR) solution, provided solely for Customer’s internal use,
by which Customer may initiate phone calls to staff members to fill vacancies or receive notifications of work opportunities for
employees who are licensed to use the Kronos Workforce TeleStaff® product. Each exchanged message (notice, response,
confirmation, denial) shall be considered an “Interaction.”
Maintenance.
Workforce Telestaff IVR maintenance will entitle Customer to Workforce Telestaff IVR phone support and software updates and shall
commence upon Order execution. For Usage Based Workforce Telestaff IVR, maintenance will be provided at the same level of support
as Customer’s Workforce TeleStaff product at no additional charge. For Workforce Telestaff IVR License Per Port, Customer must
purchase maintenance for both Workforce TeleStaff and Workforce Telestaff IVR License Per Port, and maintenance for Workforce
Telestaff IVR License Per Port will be charged at the same level of support as Workforce TeleStaff (i.e., Gold or Platinum).
Implementation. To initiate and setup administration of the required communications, Kronos will perform the standard
implementation of Workforce Telestaff IVR, including configuration, as described in the Statement of Work (“SOW”) signed by the
Customer. Any additional professional services for non-standard implementation services will be provided at mutually agreed upon rates
subject to a separate Order Form or a separate statement of work mutually agreed upon by both parties.
Payment. Kronos will invoice Customer for the Workforce Telestaff IVR implementation/configuration professional services fees set
forth in the applicable SOW and Order Form, pursuant to the Agreement and on the payment terms set forth therein. Kronos will
invoice Customer as follows: (i) for the license fees and annual maintenance associated with the Licensed Based Workforce Telestaff IVR
as indicated on the Order Form; or (ii) each month in arrears for the Usage Based Workforce Telestaff IVR usage fees for the total actual
number of metered minutes used each month (the “Minute Usage Fee”) at a rate of $0.13 per minute. Customer’s right to begin using
the service shall begin upon activation of the service after implementation/configuration.
Customer will pay invoices issued by Kronos hereunder within thirty (30) days of receipt.
Restrictions on Workforce Telestaff IVR Services; Additional Responsibilities. Customer agrees that Workforce Telestaff IVR has
not been designed for, and may not be used as, a means to connect with 911 or E911 emergency services. Kronos shall have no
liability for any delays, failures or unavailability of Workforce Telestaff IVR due to transmission or other delays, errors or problems
beyond Kronos’ control, or any other interruptions caused by the mobile communications network and/or mobile devices. Use of
Workforce Telestaff IVR is subject to the software license terms set forth in the Agreement as well as the Acceptable Use Policy found
at: https://www.aspect.com/acceptable-use-policy and Customer agrees that it shall be liable for all loss, damage or injury that may
result from Customer’s failure to abide by such Policy. Customer acknowledges that communications occurring through Workforce
Telestaff IVR may be subject to standard mobile carrier policies or government regulatory requirements for mobile communications.
Workforce Telestaff IVR Security. The Workforce Telestaff IVR service relies upon a third party hosted communication platform.
Accordingly, notwithstanding any other provision of the Agreement or this Addendum to the contrary, Customer understands and
acknowledges that the exclusive statement of the security protections provided for i) Interactions by Customer and its employees
through Workforce Telestaff IVR, and ii) all associated data, is found at: https://www.aspect.com/privacy-policy, under the heading
“Information Security.”
Renewal and Termination. The initial Term is twelve months. At the expiration of the initial Term, the Term shall automatically renew
on a month-to-month basis until terminated in accordance with the provisions hereof. At any time: (i) Customer may terminate the
Workforce Telestaff IVR service for convenience upon thirty (30) days prior written notice, and (ii) Kronos may terminate the Workforce
Telestaff IVR service for convenience upon one hundred and twenty (120) days prior written notice. Kronos may increase the per
minute rate upon renewal with sixty (60) days prior written notice for use based Workforce Telestaff IVR.
Page 26 of 53
SECTION F
WFC Extensions for Healthcare Terms and Conditions
to
Section D (Workforce Central Software as a Services Terms and Conditions)
This WFC Extensions for Healthcare addendum of supplemental terms and conditions (the “Section F”) is entered into by and
between Kronos and Customer and shall supplement the Agreement. Capitalized terms not otherwise defined herein shall have the
meanings prescribed to them in the Agreement.
WHEREAS, Kronos and Customer entered into an agreement governing the provision of Kronos’ Workforce Central Software as a
Service in Section D offering (the “SaaS Agreement”) pursuant to which Customer acquires Cloud Services for certain Applications
to be used by Customer in the “Kronos Private Cloud” or “KPC;
WHEREAS, Customer desires to acquire from Kronos the Extensions for Healthcare Application(s) (i.e., Workload Manager for
Healthcare; Target Intelligence for Healthcare; and/or Forecast Manager for Healthcare, as such Applications set may be updated
from time to time) (collectively, the “Extension Applications”) to be used and managed in Kronos Private Cloud and in accordance
with this Section F Terms and Conditions and Section D, SaaS Agreement;
WHEREAS, Kronos agrees to host and manage the Extension Applications in the Kronos Private Cloud for the benefit of Customer
and in accordance with this Section F and the Agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth, the parties agree as follows:
Customer and Kronos agree that the terms and conditions set forth herein shall only apply to the Extension Applications in Kronos’
Private Cloud, and the services related thereto. The Extension Applications described on the Order Form shall be delivered by means
of Customer’s permitted access to the Kronos Private Cloud. Notwithstanding any provision in the Agreement or any prior Statement
of Work signed by the parties for the Cloud Services to the contrary, the terms and conditions of this Section F shall apply to the
Extension Applications hosted by Kronos in the Kronos Private Cloud. In the event of a conflict or inconsistency between the
Agreement and this Section F, and only as it pertains to the Extension Applications, the provisions of this Section F shall prevail.
1.
DEFINITIONS
“Agreement” means the underlying agreement including the SaaS Terms and Conditions set forth in Section D and to which this
Section F shall apply.
“Business Associate Agreement” or “BAA” means the Business Associate Agreement attached hereto as Section H.
“Client Partnership Services” means those services provided pursuant to Section 4, below.
“Cloud Services” means those services described in Section I, the “Cloud Services for Extension Applications”.
“Encrypt” or “Encryption” means to cryptographically protect data using methods such as symmetric encryption algorithm,
asymmetric encryption algorithm or a one-way hashing algorithm.
“HIPAA” means the Health Insurance Portability & Accountability Act of 1996, P.L. 104-191, as amended from time to time, together
with its implementing regulations promulgated under HIPAA and under the Health Information Technology for Economic and Clinical
Health Act (the “HITECH Act”), Title XIII of Division A and Title IV of Division B of the American Recovery and Reinvestment Act of
2009 (“ARRA”), by the U.S. Department of Health and Human Services, including, but not limited to, the Privacy Rule, the Security
Rule and the Breach Notification Rule, as amended from time to time.
“PHI” means Protected Health Information as defined by HIPAA. PHI shall be deemed to be Personally Identifiable Data under the
Agreement.
“Solution” means the combination and use of the Extension Applications working with the Encryption Gateway Tool.
2.
KRONOS CLOUD ENCRYPTION GATEWAY
a.
As part of acquiring the Extension Applications pursuant to this Section F, Kronos licenses to Customer the right to
use the Kronos Cloud Encryption Gateway tool (“Encryption Gateway Tool”). The Encryption Gateway Tool will Encrypt
PHI before it is transmitted to the Kronos Private Cloud and it will un-Encrypt the PHI when it is extracted from the Kronos
Private Cloud in accordance with the encryption product documentation.
b.
Kronos will deliver the Encryption Gateway Tool by giving Customer access to the secure Customer portal and such
tool shall be available for download and to be installed by Customer, on Customer’s server and behind its firewall at its
location. The Encryption Gateway Tool will at all times be under Customer’s control and Customer shall install updates to
the Encryption Gateway Tool, when such updates are made available by Kronos. The Encryption Gateway Tool is
licensed to Customer concurrently with the Extension Application(s) and upon termination or expiration of the Extension
Application(s), Customer’s right to use the Encryption Gateway Tool shall also terminate. Customer agrees to uninstall
the Encryption Gateway Tool upon termination of Customer’s right to use of the Extension Applications.
Page 27 of 53
c.
As part of the Services for the Extension Applications, Customer is entitled to receive the Support Services
detailed in Section D.
d.
The Application Availability SLA of the Agreement shall not apply to the Encryption Gateway Tool which is installed
on Customer’s server at Customer’s control.
3.
CUSTOMER RESPONSIBILITIES
Customer agrees to:
a.
install, maintain and use the Encryption Gateway Tool as part of the cloud hosting services for the Extension
Applications in accordance with the product documentation. Customer acknowledges that its failure to immediately apply
updates to the Encryption Gateway Tool when such updates become available may: (i) compromise the security of Customer
Content, including, Personally Identifiable Data and PHI; and (ii) result in incompatibility between the Healthcare Extensions
and the Encryption Gateway Tool, which could cause failures in Encrypting and un-Encrypting data, and affect the scope of
the Services provided by Kronos and its ability to adhere with its compliance programs, including those verified by the
independent auditor report (i.e., SOC reports). Customer acknowledges Kronos shall not provide any credits for SLA issues
under the Agreement that resulted from Customer’s failure to update the Encryption Gateway Tool.
b.
install and maintain the encryption gateway private key per the encryption product documentation, and not share the
encryption gateway private key with any third party who does not have a need to know, including not sharing the encryption
gateway private key with Kronos. Should Customer lose the key, any encrypted data will remain encrypted.
c.
enter and maintain PHI only in the fields defined in the Extension Applications product documentation; and to only
send PHI data (e.g., screen shots containing PHI) to Kronos by means of secure support channels for such data.
d.
use unique user ID and passwords for all users of Extension Applications
e.
configure Extension Application user’s account to meet Customer’s HIPAA policy requirements for complexity, length
duration and lockout.
f.
determine user access/authorization to the application level of the Solution and assure that the level of access and
the user assigned roles and permission are appropriate, which includes periodic application level logical access review.
g.
review application logs to meet Customer’s HIPAA compliance program.
h.
immediately notify Kronos in the event Customer discovers a security issue with the Solution.
i.
provide Kronos resources with application level accounts as reasonably needed to support the Extension Applications,
and not unreasonably withhold such access.
4.
CLIENT PARTNERSHIP SERVICES
If acquired by Customer on the applicable Order Form, the parties agree that the following terms shall apply to
Customer’s purchase of Client Partnership Services only:
a.
Scope. Client Partnership Services will provide to Customer additional support services to develop performance
improvement for clients utilizing the Extension Applications. This service includes a dedicated Strategic Client Advisor (the
“Advisor”) that works with the Customer to guide the Customer in optimizing the use of the Extension Applications. The
Advisor will also provide consultation services which may include, but is not limited to, developing supporting processes,
staff engagement and accountability structures, service plan development in response to Customer’s business
requirements, as well as serving as a resource link to assist Customers in networking with other Kronos customer’s
healthcare organizations.
b.
Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms
provided Customer renews the Client Partnership Services as provided below.
c.
Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with
the payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of
the Client Partnership Services at least forty five (45) days prior to expiration of the then current term. Client Partnership
Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or
any renewal term.
d.
Change to Offerings; Support Increases: After the one year initial term, the Client Partnership Services offerings
provided and the service coverage period are subject to change by Kronos with sixty (60) days advance written notice. For
the initial two (2) renewal terms from the date of the Addendum, the annual Client Partnership Services fee, for the same
service type, is subject to increase by not more than four percent (4%) over the prior year’s annual Client Partnership
Services fee.
5.
BUSINESS ASSOCIATE AGREEMENT
The parties agree that the provisions of the Business Associate Agreement referenced as Section H shall apply.
6.
DATA SECURITY
As part of the Services for the Extension Applications, Kronos shall provide those administrative, physical, and technical safeguards
for protection of the security, confidentiality and integrity of Customer data as described in Section I herein.
Page 28 of 53
SECTION G
WFC Extensions for Healthcare Terms and Conditions
to
Section C / Section C-1 (Hosting Terms and Conditions)
This WFC Extensions for Healthcare addendum of supplemental terms and conditions (“Section G”) is entered into by and between
Kronos and Customer and shall supplement the Agreement. Capitalized terms not otherwise defined herein shall have the meanings
prescribed to them in the Agreement.
WHEREAS, Kronos and Customer entered into an agreement to have Kronos host the Workforce Central Software in its managed
cloud environment in Section C/Section C-1 (the “Kronos Private Cloud” or “KPC”) and to allow Customer to use such software in
the Kronos Private Cloud;
WHEREAS, Customer desires to acquire from Kronos the Extensions for Healthcare Application(s) (i.e., Workload Manager for
Healthcare; Target Intelligence for Healthcare; and/or Forecast Manager for Healthcare, as such Application set may be updated from
time to time) (collectively, the “Extension Applications”) to be used and managed in the Kronos Private Cloud and in accordance
with this Section G terms and conditions and Section C / Section C-1;
WHEREAS, Kronos agrees to host and manage the Extension Applications in the Kronos Private Cloud for the benefit of Customer
and in accordance with this Section G and the Agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth, the parties agree as follows:
Customer and Kronos agree that the terms and conditions set forth herein shall only apply to the Extension Applications in Kronos’
Private Cloud, and the services related thereto. The Extension Applications described on the Order Form shall be delivered by means
of Customer’s permitted access to the Kronos Private Cloud. Notwithstanding any provision in the Agreement or any prior Statement
of Work signed by the parties for the Cloud Services to the contrary, the terms and conditions of this Section G shall apply to the
Extension Applications hosted by Kronos in the Kronos Private Cloud. In the event of a conflict or inconsistency between the
Agreement and this Section G, and only as it pertains to the Extension Applications, the provisions of this Section G shall prevail.
1.
DEFINITIONS
“Agreement” means the underlying agreement including the Cloud Hosting Terms and Conditions set forth in Section C/Section C-
1, as applicable, and to which this Section G shall apply.
“Business Associate Agreement” or “BAA” means the Business Associate Agreement attached Section H.
“Client Partnership Services” means those services provided pursuant to Section 4, below.
“Cloud Services” means those services described in Section I, the “Cloud Services for Extension Applications”.
“Encrypt” or “Encryption” means to cryptographically protect data using methods such as symmetric encryption algorithm,
asymmetric encryption algorithm or a one-way hashing algorithm.
“HIPAA” means the Health Insurance Portability & Accountability Act of 1996, P.L. 104-191, as amended from time to time, together
with its implementing regulations promulgated under HIPAA and under the Health Information Technology for Economic and Clinical
Health Act (the “HITECH Act”), Title XIII of Division A and Title IV of Division B of the American Recovery and Reinvestment Act of
2009 (“ARRA”), by the U.S. Department of Health and Human Services, including, but not limited to, the Privacy Rule, the Security
Rule and the Breach Notification Rule, as amended from time to time.
“PHI” means Protected Health Information as defined by HIPAA. PHI shall be deemed to be Personally Identifiable Data under the
Agreement.
“Solution” means the combination and use of the Extension Applications working with the Encryption Gateway Tool.
7.
KRONOS CLOUD ENCRYPTION GATEWAY
a. As part of acquiring the Extension Applications pursuant to this Section G, Kronos licenses to Customer the right to use the
Kronos Cloud Encryption Gateway tool (“Encryption Gateway Tool”). The Encryption Gateway Tool will Encrypt PHI before
it is transmitted to the Kronos Private Cloud and it will un-Encrypt the PHI when it is extracted from the Kronos Private Cloud
in accordance with the encryption product documentation.
b. Kronos will deliver the Encryption Gateway Tool by giving Customer access to the secure Customer portal and such tool
shall be available for download and to be installed by Customer, on Customer’s server and behind its firewall at its location.
The Encryption Gateway Tool will at all times be under Customer’s control and Customer shall install updates to the Encryption
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Gateway Tool, when such updates are made available by Kronos. The Encryption Gateway Tool is licensed to Customer
concurrently with the Extension Application(s) and upon termination or expiration of the license to use the Extension
Application(s) or termination or expiration of Software Support maintenance, Customer’s right to use the Encryption Gateway
Tool shall also terminate.
c. Customer is entitled to receive the Support Services detailed in Section C/Section C-1.
d. The Application Availability SLA of the Agreement shall not apply to the Encryption Gateway Tool which is installed on
Customer’s server at Customer’s control.
8.
CUSTOMER RESPONSIBILITIES
Customer agrees to:
a.
install, maintain and use the Encryption Gateway Tool as part of the cloud hosting services for the Extension
Applications in accordance with the product documentation. Customer acknowledges that its failure to immediately apply
updates to the Encryption Gateway Tool when such updates become available may: (i) compromise the security of
Customer Content, including, Personally Identifiable Data and PHI; and (ii) result in incompatibility between the Healthcare
Extensions and the Encryption Gateway Tool, which could cause failures in Encrypting and un-Encrypting data, and affect
the scope of the Hosting Related or Cloud Services provided by Kronos and its ability to adhere with its compliance
programs, including those verified by the independent auditor report (i.e., SOC reports). Customer acknowledges Kronos
shall not provide any credits for SLA issues under the Agreement that resulted from Customer’s failure to update the
Encryption Gateway Tool.
b.
install and maintain the encryption gateway private key per the encryption product documentation, and not share the
encryption gateway private key with any third party who does not have a need to know, including not sharing the encryption
gateway private key with Kronos. Should Customer lose the key, any encrypted data will remain encrypted.
c.
enter and maintain PHI only in the fields defined in the Extension Applications product documentation; and to only
send PHI data (e.g., screen shots containing PHI) to Kronos by means of secure support channels for such data.
d.
use unique user ID and passwords for all users of Extension Applications
e.
configure Extension Application user’s account to meet Customer’s HIPAA policy requirements for complexity, length
duration and lockout.
f.
determine user access/authorization to the application level of the Solution and assure that the level of access and
the user assigned roles and permission are appropriate, which includes periodic application level logical access review.
g.
review application logs to meet Customer’s HIPAA compliance program.
h.
immediately notify Kronos in the event Customer discovers a security issue with the Solution.
i.
provide Kronos resources with application level accounts as reasonably needed to support the Extension Applications,
and not unreasonably withhold such access.
9.
CLIENT PARTNERSHIP SERVICES
If acquired by Customer on the applicable Order Form, the parties agree that the following terms shall apply to Customer’s
purchase of Client Partnership Services only:
a.
Scope. Client Partnership Services will provide to Customer additional support services to develop performance
improvement for clients utilizing the Extension Applications. This service includes a dedicated Strategic Client Advisor (the
“Advisor”) that works with the Customer to guide the Customer in optimizing the use of the Extension Applications. The
Advisor will also provide consultation services which may include, but is not limited to, developing supporting processes,
staff engagement and accountability structures, service plan development in response to Customer’s business
requirements, as well as serving as a resource link to assist Customers in networking with other Kronos customer’s
healthcare organizations.
b.
Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms
provided Customer renews the Client Partnership Services as provided below.
c.
Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with
the payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of
the Client Partnership Services at least forty five (45) days prior to expiration of the then current term. Client Partnership
Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or
any renewal term.
d.
Change to Offerings; Support Increases: After the one year initial term, the Client Partnership Services offerings
provided and the service coverage period are subject to change by Kronos with sixty (60) days advance written notice. For
the initial two (2) renewal terms from the date of the Addendum, the annual Client Partnership Services fee, for the same
service type, is subject to increase by not more than four percent (4%) over the prior year’s annual Client Partnership
Services fee.
10.
BUSINESS ASSOCIATE AGREEMENT
The parties agree that the provisions of the Business Associate Agreement attached hereto and incorporated herein by reference as
Section H shall apply
11.
DATA SECURITY
As part of the Services for the Extension Applications, Kronos shall provide those administrative, physical, and technical safeguards
for protection of the security, confidentiality and integrity of Customer data as described in Section I herein.
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SECTION H
BUSINESS ASSOCIATE AGREEMENT
RECITALS
WHEREAS, Customer (hereinafter “Covered Entity”) has entered into an agreement with Kronos (hereinafter “Business Associate”)
governing the provision of Kronos’ Workforce Central Software provided by Business Associate to Covered Entity in accordance with
the Underlying Agreement;
WHEREAS, Business Associate may perform certain services to support Business Associate’s software licenses for or on behalf of
Covered Entity, and in performing said services, Business Associate may receive, maintain, or transmit Protected Health Information
(“PHI”);
WHEREAS, Covered Entity is a “Covered Entity” as that term is defined under the Health Insurance Portability and Accountability Act
of 1996 (Public Law 104-91), as amended, (“HIPAA”), and the regulations promulgated thereunder by the Secretary of the U.S.
Department of Health and Human Services (“Secretary”), including, without limitation, the regulations codified at 45 C.F.R. Parts 160
and 164 (“HIPAA Regulations”);
WHEREAS, the Parties intend to protect the privacy and provide for the security of PHI disclosed by Covered Entity to Business
Associate, or received by Business Associate, when providing Services in compliance with HIPAA, the Health Information Technology
for Economic and Clinical Health Act (Public Law 111-005) (“the HITECH Act”) and its implementing regulations and guidance issued
by the Secretary, and other applicable state and federal laws, all as amended from time to time; and
WHEREAS, as a Covered Entity, Covered Entity is required under HIPAA to enter into a Business Associate Agreement (“BAA”) with
Business Associate that meets certain requirements with respect to the Use and Disclosure of PHI, which are met by this BAA.
AGREEMENT
NOW WHEREFORE, in consideration of the Recitals and for other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the Parties agree as follows:
1.
DEFINITIONS
The following terms shall have the meaning set forth below. Capitalized terms used in this BAA and not otherwise defined shall
have the meanings ascribed to them in HIPAA, the HIPAA Regulations, or the HITECH Act, as applicable.
1.1.
“Breach” shall have the meaning given under 42 U.S.C. § 17921(1) and 45 C.F.R. § 164.402.
1.2.
“Designated Record Set” shall have the meaning given such term under 45 C.F.R. § 164.501.
1.3.
“Disclose” and “Disclosure” mean, with respect to PHI, the release, transfer, provision of access to, or divulging
in any other manner of PHI outside of Business Associate or to other than members of its Workforce, as set forth in 45 C.F.R. §
160.103.
1.4.
“Electronic PHI” or “e-PHI” means PHI that is transmitted or maintained in electronic media, as set forth in 45
C.F.R. § 160.103.
1.5.
“Protected Health Information” and “PHI” mean any information, whether oral or recorded in any form or
medium, that: (a) relates to the past, present or future physical or mental health or condition of an individual; the provision of health
care to an individual, or the past, present or future payment for the provision of health care to an individual; (b) identifies the individual
(or for which there is a reasonable basis for believing that the information can be used to identify the individual); and (c) shall have
the meaning given to such term under the Privacy Rule, including, but not limited to, 45 C.F.R. § 160.103. Protected Health Information
includes e-PHI.
1.6.
“Security Incident” means a confirmed successful unauthorized access, use, disclosure, modification, or
destruction of information or interference with system operations in an information system which affects Covered Entity’s PHI or e-
PHI in possession and/or control of Business Associate. Security Incident shall exclude (i) “pings” on an information system firewall;
(ii) port scans; (iii) attempts to log on to an information system or enter a database with an invalid password or user name; (iv) denial-
of-service attacks that do not result in a server being taken offline; or (v) “malware” (e.g., a worm or a virus) that does not result in
unauthorized access, use, disclosure, modification or destruction of PHI.
1.7.
“Services” shall mean the services provided to Covered Entity by Business Associate pursuant to the Underlying
Agreement.
1.8.
“Unsecured PHI” shall have the meaning given to such term under 42 U.S.C. § 17932(h), 45 C.F.R. § 164.402,
and guidance issued pursuant to the HITECH Act including, but not limited to the guidance issued on April 17, 2009 and published in
74 Federal Register 19006 (April 27, 2009) by the Secretary.
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1.9.
“Use” or “Uses” mean, with respect to PHI, the sharing, employment, application, utilization, examination or
analysis of such PHI within Business Associate’s internal operations, as set forth in 45 C.F.R. § 160.103.
1.10.
“Workforce” shall have the meaning given to such term under 45 C.F.R. § 160.103.
2.
OBLIGATIONS OF BUSINESS ASSOCIATE
2.1
Permitted Uses and Disclosures of Protected Health Information. Business Associate shall not Use or
Disclose PHI other than as permitted or required by any Underlying Agreement, this BAA, or as Required by Law. Business Associate
shall not Use or Disclose PHI in any manner that would constitute a violation of Subpart E of 45 C.F.R. Part 164 if so Used or Disclosed
by Covered Entity. However, Business Associate may Use or Disclose PHI (i) for the proper management and administration of
Business Associate; (ii) to carry out the legal responsibilities of Business Associate, provided that with respect to any such Disclosure
either: (a) the Disclosure is Required by Law; or (b) Business Associate obtains a written agreement from the person to whom the PHI
is to be Disclosed that such person will hold the PHI in confidence and shall not Use and further Disclose such PHI except as Required
by Law and for the purpose(s) for which it was Disclosed by Business Associate to such person, and that such person will notify
Business Associate of any instances of which it is aware in which the confidentiality of the PHI has been breached; (iii) for Data
Aggregation purposes for the Health Care Operations of Covered Entity. To the extent that Business Associate carries out one or
more of Covered Entity’s obligations under Subpart E of 45 C.F.R. Part 164, Business Associate must comply with the requirements
of Subpart E that apply to the Covered Entity in the performance of such obligations.
2.2
Prohibited Marketing and Sale of PHI. Notwithstanding any other provision in this BAA, Business Associate
shall comply with the following requirements: (i) Business Associate shall not Use or Disclose PHI for fundraising or marketing
purposes, except to the extent expressly authorized or permitted by any Underlying Agreement and consistent with the requirements
of 42 U.S.C. § 17936, 45 C.F.R. §§ 164.514(f), and 164.508(a)(3)(ii), and (ii) Business Associate shall not directly or indirectly receive
remuneration in exchange for PHI except with the prior written consent of Covered Entity and as permitted by the HITECH Act, 42
U.S.C. § 17935(d)(2), and 45 C.F.R. § 164.502(a)(5)(ii); however this prohibition shall not affect payment by Covered Entity to
Business Associate for the provision of Services pursuant to any Underlying Agreement.
2.3
Adequate Safeguards of PHI. Business Associate shall implement and maintain reasonably appropriate
safeguards to prevent Use or Disclosure of PHI other than as provided for by this BAA. Business Associate shall reasonably and
appropriately protect the confidentially, integrity, and availability of e-PHI that it receives, maintains or transmits on behalf of Covered
Entity in compliance with Subpart C of 45 C.F.R. Part 164 to prevent Use or Disclosure of PHI other than as provided for by this BAA.
2.4
Mitigation. Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to
Business Associate of a Use or Disclosure of PHI by Business Associate in violation of the requirements of this BAA.
2.5
Reporting Non-Permitted Use or Disclosure.
2.5.1
Reporting Security Incidents and Non-Permitted Use or Disclosure. Business Associate shall
report to Covered Entity in writing each confirmed Security Incident or Use or Disclosure that is made by Business Associate, members
of its Workforce, or Subcontractors that is not specifically permitted by this BAA no later than ten (10) business days after confirming
such Security Incident or non-permitted Use or Disclosure, in accordance with the notice provisions set forth herein. Business
Associate shall investigate each Security Incident or non-permitted Use or Disclosure of Covered Entity’s PHI that it discovers to
determine whether such Security Incident or non-permitted Use or Disclosure constitutes a reportable Breach of Unsecured PHI.
Business Associate shall document and retain records of its investigation of any Breach, including its reports to Covered Entity under
this Section 2.5.1. Upon written request by Covered Entity, Business Associate shall furnish to Covered Entity the documentation of
its investigation and an assessment of whether such Security Incident or non-permitted Use or Disclosure constitutes a reportable
Breach. If such Security Incident or non-permitted Use or Disclosure constitutes a reportable Breach of Unsecured PHI, then Business
Associate shall comply with the additional requirements of Section 2.5.2 below.
2.5.2
Breach of Unsecured PHI. If Business Associate determines that a reportable Breach of Unsecured
PHI has occurred, Business Associate shall provide a written report to Covered Entity without unreasonable delay but no later than
thirty (30) calendar days after discovery of the Breach. To the extent that information is available to Business Associate, Business
Associate’s written report to Covered Entity shall be in accordance with 45 C.F.R. §164.410(c). Business Associate shall reasonably
cooperate with Covered Entity in meeting Covered Entity’s obligations under the HITECH Act with respect to such Breach. Covered
Entity shall have sole control over the timing and method of providing notification of such Breach to the affected individual(s), the
Secretary and, if applicable, the media, as required by the HITECH Act.
2.6
Availability of Internal Practices, Books, and Records to Government. Business Associate agrees to make
its internal policies, books and records relating to the Use and Disclosure of PHI received from, or received by the Business Associate
on behalf of Covered Entity available to the Secretary for purposes of determining Covered Entity’s compliance with HIPAA, the HIPAA
Regulations, and the HITECH Act. Except to the extent prohibited by law, Business Associate shall notify Covered Entity of all
requests served upon Business Associate for information or documentation by or on behalf of the Secretary.
2.7
Access to and Amendment of Protected Health Information. To the extent that Business Associate maintains
a Designated Record Set on behalf of Covered Entity and within fifteen (15) business days of a written request by Covered Entity,
Business Associate shall (a) make the PHI it maintains (or which is maintained by its Subcontractors) in Designated Record Sets
available to Covered Entity for inspection and copying to fulfill its obligations under 45 C.F.R. § 164.524, or (b) permit Covered Enity
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to amend the PHI Business Associate maintains (or which is maintained by Business Associate’s Subcontractors) in Designated
Record Sets to enable the Covered Entity to fulfill its obligations under 45 C.F.R. § 164.526. In the event that an individual makes a
direct request to Business Associate to amend any PHI of such individual maintained in a Designated Record Set on behalf of Covered
Entity, Business Associate shall promptly forward such individual’s request to Covered Entity for review. Business Associate shall not
Disclose PHI to a health plan for payment or Health Care Operations purposes except as otherwise directed by Covered Entity or
required by law. If Business Associate maintains PHI in a Designated Record Set electronically, Business Associate shall provide
such information in the electronic form and format requested by the Covered Entity if it is readily reproducible in such form and format,
and, if not, in such other form and format as commercially reasonable and available to enable Covered Entity to fulfill its obligations
under 42 U.S.C. § 17935(e) and 45 C.F.R. § 164.524(c)(2). Business Associate shall notify Covered Entity within fifteen (15) business
days of receipt of a request for access to PHI.
2.8
Accounting. To the extent that Business Associate maintains a Designated Record Set on behalf of Covered
Entity, within thirty (30) days of receipt of a request from Covered Entity or an individual for an accounting of disclosures of PHI,
Business Associate and its Subcontractors shall make available to Covered Entity the information required to provide an accounting
of disclosures to enable Covered Entity to fulfill its obligations under 45 C.F.R. § 164.528 and its obligations under 42 U.S.C. §
17935(c). Business Associate shall notify Covered Entity within fifteen (15) business days of receipt of a request by an individual or
other requesting party for an accounting of disclosures of PHI.
2.9
Use of Subcontractors. Business Associate shall require each of its Subcontractors, if any, that maintains,
receives, or transmits PHI on behalf of Business Associate, to execute a Business Associate Agreement that imposes on such
Subcontractors the same, or substantially similar, restrictions, conditions, and requirements that apply to Business Associate under
this BAA with respect to PHI.
2.10
Minimum Necessary. Business Associate (and its Subcontractors) shall, to the extent practicable, limits its
request, Use, or Disclosure of PHI to the minimum amount of PHI necessary to accomplish the purpose of the request, Use or
Disclosure, in accordance with 42 U.S.C. § 17935(b) and 45 C.F.R. § 164.502(b)(1) or any other guidance issued thereunder.
3.
COVERED ENTITIES RESPONSIBILITIES
Covered Entity Responsibilities. With respect to the use and disclosure of the PHI by Business Associate, Covered Entity
agrees to: (a) inform Business Associate of any change in or revocation of any authorization provided to Covered Entity by Individuals
pursuant to applicable law, including, but not limited to, the HIPAA Statute and which is applicable to Business Associate; and (b) to
timely notify Business Associate, in writing, of any arrangement permitted or required of Covered Entity under applicable law, including,
but not limited to, the HIPAA Statute, that may impact in any manner the use, disclosure, or access to PHI by Business Associate
under the Agreement, including, but not limited to, any agreement by Covered Entity to restrict use or disclosure of any PHI as
permitted by the HIPAA Statute.
4.
TERM AND TERMINATION
4.1
Term. Subject to the provisions of Section 4.2 herein, the term of this BAA shall be the term of the Underlying
Agreement.
4.2
Termination for Cause. In addition to and notwithstanding the termination provisions set forth in any Underlying
Agreement, upon Covered Entity’s knowledge of a material breach or violation of this BAA by Business Associate, Covered Entity
shall either:
a.
Notify Business Associate of the breach in writing, and provide an opportunity for Business Associate
to cure the breach or end the violation within fifteen (15) business days of such notification; provided that if Business Associate fails
to cure the breach or end the violation within such time period, Covered Entity may immediately terminate this BAA and any Underlying
Agreement upon written notice to Business Associate; or
b.
Upon written notice to Business Associate, immediately terminate this BAA and any Underlying
Agreement if Covered Entity determines that such breach cannot be cured
4.3
Disposition of Protected Health Information Upon Termination or Expiration.
4.3.1
Upon termination or expiration of this BAA, Business Associate shall either return or destroy all PHI
received from, or received by Business Associate on behalf of Covered Entity, that Business Associate still maintains in any form and
retain no copies of such PHI. If Covered Entity requests that Business Associate return PHI, PHI shall be returned in a a format
utilized at the time of termination and timeframe, at no additional charge to Covered Entity.
4.3.2
If return or destruction is not feasible, Business Associate shall (a) retain only that PHI which is
necessary for Business Associate to continue its proper management and administration or to carry out its legal responsibilities; (b)
return to Covered Entity the remaining PHI that the Business Associate still maintains in any form; (c) continue to extend the protections
of this BAA to the PHI for as long as Business Associate retains the PHI; (d) limit further Uses and Disclosures of such PHI to those
purposes that make the return or destruction of the PHI not feasible and subject to the same conditions set out in Section 2.1 and 2.2
above, which applied prior to termination; and (e) return to Covered Entity the PHI retained by Business Associate when it is no longer
needed by Business Associate for its proper management and administration or to carry out its legal responsibilities.
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5.
MISCELLANEOUS
5.1
Amendment to Comply with Law. The parties agree to enter into an amendment to this BAA to incorporate any
mandatory obligations of Covered Entity or Business Associate under the HITECH Act and its implementing HIPAA Regulations, as
applicable, and as mutually agreed between the parties. Additionally, the Parties agree to take such action as is reasonably necessary
to amend this BAA from time to time for Covered Entity to implement its obligations pursuant to HIPAA, the HIPAA Regulations, or
the HITECH Act, and to the extent mutually acceptable to the parties.
5.2
Relationship to Underlying Agreement Provisions. Except as otherwise specifically stated in this BAA, in the
event that a provision of this BAA is contrary to a provision of an Underlying Agreement, the provision of this BAA shall control.
Otherwise, this BAA shall be construed under, and in accordance with, the terms of such Underlying Agreement, and shall be
considered an amendment of and supplement to such Underlying Agreement, subject to Section 5.3 below.
5.3
Entire Agreement. This BAA supplements and is entered into subject to the Underlying Agreement, and
constitutes the entire agreement between the Parties for the services described herein and supersede all prior or contemporaneous
representations, negotiations, or other communications between the Parties relating to the subject matter of this BAA. Any provisions
in the Underlying Agreement regarding limitations or exclusion of liability or indemnification will apply to any of the rights and obligations
of the parties under this BAA or breach thereof. This BAA supersedes and replaces any existing Business Associate Agreement in
effect between Business Associate and Covered Entity. Any PHI received from Covered Entity prior to, on, or after the date of this
Agreement is subject to the terms and conditions of this Agreement.
5.4
Notices. Any notices required or permitted to be given hereunder by either Party to the other shall be given in
writing: (1) by personal delivery; (2) by electronic mail or facsimile with confirmation sent by United States first class registered or
certified mail, postage prepaid, return receipt requested; (3) by bonded courier or by a nationally recognized overnight delivery service;
or (4) by United States first class registered or certified mail, postage prepaid, return receipt, in each case, addressed to a Party on
the signature page(s) to this Agreement, or to such other addresses as the Parties may request in writing by notice given pursuant to
this Section 5.4. Notices shall be deemed received on the earliest of personal delivery; upon delivery by electronic facsimile with
confirmation from the transmitting machine that the transmission was completed; twenty-four (24) hours following deposit with a
bonded courier or overnight delivery service; or seventy-two (72) hours following deposit in the U.S. mail as required herein.
5.5
Relationship of Parties. Notwithstanding anything to the contrary in any Underlying Agreement, Business
Associate is an independent contractor and not an agent of Covered Entity under this BAA. Business Associate has the sole right
and obligation to supervise, manage, contract, direct, procure, perform or cause to be performed all Business Associate obligations
under this BAA.
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SECTION I
Cloud Services for Extension Applications Applicable to Sections F and G Only
Cloud Offering
Environments:
One standard Production and one Non-Production (Development) environment.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included. More non-
production environments are
available for additional fees.
Environment restoration:
Restore of Production environment to one Non-Production environment once per week.
Customer is responsible for requesting data to be moved from the Production environment to
the Non-Production environment and for the contents of the data moved from the Production
environment to the Non-Production environment.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included. More frequent
restores or additional
environments will be subject
to additional time and
material fees.
Connectivity to Service:
Customer's users connect to application via secure TLS connection over the internet.
Cooperative efforts with customer IT staff may be required to enable access. Kronos will
assist with validating site connectivity but assumes no responsibility for customer internet
connection or ISP relationships. Kronos related Internet traffic cannot be filtered by proxy or
caching devices on the client network. Exclusions must be added for the fully qualified domain
names and public IP addresses assigned to the environments in the Kronos Cloud. Applicable
ports must be opened from customer network as described in product documentation.
Included
Operating System and Database Software Management: Includes application of critical
security patches, service packs and hot-fixes; maintenance of servers.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included
Server Maintenance: Repair and replacement of defective or failed hardware and the
installation of hardware upgrades.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included
Application Updates: Services to perform technical tasks required to apply application service
packs, legislative updates (if applicable), point releases and version upgrades.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included
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Cloud Offering
Backup:
Customer data is backed up daily. Database backups are replicated via encrypted
connections to a second Kronos Cloud datacenter. Backups are retained for the prior 28 days
on a rotating basis. All historical employee and configuration data is stored in the rotating
backups.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Included
Security:
Kronos maintains a hosting environment that undergoes examinations from an independent
auditor in accordance with the American Institute of Certified Public Accounts (AICPA) Trust
Services Principles Section 100a, Trust Services for Security, Availability, Processing
Integrity, Confidentiality and Privacy (i.e. SOC 2). The Kronos Private Cloud (KPC) is
evaluated for the principles of Security, Availability and Confidentiality by the independent
auditor. The Kronos Private Cloud is located in data centers that undergo SSAE 16
examinations. Management access to the KPC is limited to authorized Kronos support staff
and customer authorized integrations. The security architecture has been designed to control
appropriate logical access to the KPC to meet the Trust Services Principles of Security,
Availability and Confidentiality. The Applications provide the customer with the ability to
configure application security and logical access per the customer's business processes.
Additionally the independent auditor will provide an opinion on the design and operating
effectiveness of controls to meet the security requirements of the Health Insurance Portability
and Accountability Act Security Rule, which will be first issued by end of calendar year 2016.
In the event the customer identifies a security issue, the customer will notify Kronos. For
security purposes, customers are restricted from accessing the desktop, file systems,
databases and operating system of the environments.
Customer agrees not to upload payment card information as the service is not certified for PCI
DSS.
For each of the customer’s production and non-production environments in a data center in
the United States of America, Customer Content will be Encrypted at rest at the storage level
for the Extension Application(s). Encryption at rest is defined as Customer Content is made
unreadable on disk via encryption technology when the Kronos Cloud computing environment
hardware is powered off. For clarity this storage level of Encryption within the Kronos Private
Cloud is independent of the Encryption at the Encryption Gateway Tool located at the
customer’s location, thus providing a second layer of encryption at rest.
Included
Basic Disaster Recovery Services:
Customer environment and all customer data in the Kronos Cloud are replicated to a
secondary Kronos Cloud data center. Basic Disaster Recovery Services provides a Recovery
Point Objective (RPO) of 24 hours and Kronos strives to restore Application Availability in a
commercially reasonable timeframe.
The customer will be down until production processing is restored in the primary or secondary
data center if needed. No application environment is readily available at the alternate site to
process data. Customers are expected to use fully qualified domain names (FQDNs) to
access the service given that IP address of the service may change.
Any issues arising out of the disaster recovery event due to customer
configuration/customization and/or customer third party software outside of the Kronos Cloud
is the responsibility of the customer to resolve.
Included
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Cloud Offering
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
Enhanced Disaster Recovery Services:
Customer environment and all customer data in the Kronos Cloud are replicated to a
secondary Kronos Cloud datacenter. Enhanced Disaster Recovery Services provide an RTO
(Recovery Time Objective) of 72 hours and a RPO (Recovery Point Objective) of 24 hours.
In the unlikely event that Kronos declares a disaster in the primary datacenter, Kronos will
notify the customer and activate the Disaster Recovery steps necessary to restore application
availability within the RTO defined.
As part of the enhanced service, Kronos will conduct an annual Disaster Recovery Process
test which has the objectives to 1) test backups 2) train Kronos employees 3) verify and
improve internal Kronos procedures. The annual Disaster Recovery Process test may be live
or simulated test.
Customers are expected to use fully qualified domain names (FQDNs) to access the service
given that IP address of the service may change. Any issues arising out of the disaster
recovery event due to customer configuration/customization and/or customer third party
software outside of the Kronos Cloud is the responsibility of the customer to resolve.
Excludes encryption gateway software running at a location in customer’s control outside of
Kronos Cloud.
If purchased on Order Form
Guidelines and Assumptions:
Category
Assumption
Estimated availability of production server hardware in Kronos Cloud is approximately 30 days after the Order
Form is processed.
Customer agrees to receive automatic updates to the Applications.
Applications will support English only.
Customer agrees not to conduct security testing, which includes but is not limited to penetration testing and
vulnerability scanning.
Customer agrees not conduct any sort of automated or manual performance testing of the Service.
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Category
Assumption
Retention policies must be configured in the Application(s). Setting retention policies will ensure that unnecessary
system data (e.g. temp files, deleted records, empty rows, etc.) is routinely purged from the system and will help
in managing database growth. Additionally application audit log will retained for 30 days.
Customer will be required to sign a go live milestone document confirming customer has completed its testing and
is ready to go live with the Workforce Central Application EHC module(s).
Workforce Central EHC Upgrade Services
The Service includes services for Kronos to execute tasks to apply point releases and version upgrades to customer’s Kronos
Applications in the Kronos Cloud. Services are limited to those tasks which apply these updates to the Applications. Services related
to upgrade of Encryption Gateway Environment and encryption gateway software running at a location in customer’s control outside
of Kronos Cloud are not included.
The table below reflects the included upgrade tasks.
Planning Phase
Customer/ Kronos Introduction Call – up to 30 minutes
Included
Technical readiness & architecture review – Kronos Cloud Environment
Included
Technical readiness & architecture review – Encryption Gateway environment
Not Included
Assessment Phase
Assessment of Interface Upgrade to WFC
Included
Assessment of new features or changes to configuration
Not included
Assessment of customs, custom interfaces and custom reports and development activities related
thereto
Not included
Solution Upgrade / Build Phase
One (1) restore of Production database to Pre-Production environment for the purpose of upgrade
testing.
Additional restores, if requested, shall be subject to additional time and material fees.
Included
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Upgrade Non-Production and Production environments to new point release or version.
Included
Upgrade of interface integration to Workforce Central per features in product documentation.
Included
Upgrade of integrations beyond integration to Workforce Central per features in product documentation.
Not Included
Upgrade of any customs, custom interfaces and custom reports and development activities related
thereto
Not Included
Configuration of new features or functionality or changes to existing configuration
Available for
Purchase
Upgrade of Encryption Gateway Environment and encryption gateway software running at a location in
customer’s control outside of Kronos Cloud.
Not Included
Test & Certify Phase
User acceptance testing (UAT) of upgraded environments, interfaces, custom reports, new features, etc.
Not Included
Develop customer-specific test cases
Not Included
Sign-off on upgraded Non-Production and Production Environments
Customer
Deploy & Support Phase
Deployment Readiness Call – up to 30 minutes
Included
Note that new feature configuration, project management services, other Professional, Managed and Educational Services
and training are not included as part of Upgrade Services, but may be purchased independently, if desired.
If not specifically noted, the customer should assume responsibility of the task and/or deliverable.
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SECTION J
CLIENT PARTNERSHIP SERVICES SUPPLEMENTAL TERMS AND CONDITIONS
(For Healthcare Customers only)
This Client Partnership Services Supplemental Terms and Conditions apply to the Client Partnership Services purchased by
Customer set forth in the applicable Order Form.
Customer has purchase software licenses and/or acquire software services, as well as related equipment, professional, educational
and training services and support maintenance services (collectively, the “Products”) under Section A and B of the Agreement;
WHEREAS, Customer desires to purchase the Client Partnership Services set forth in the applicable Order Form, as executed by
Customer;
WHEREAS, Customer acknowledges that the purchase and use of the Client Partnership Services shall be subject to the Agreement,
as modified and supplemented by this Section K.
WHEREAS, the Parties agree that the terms and conditions of this Section K shall apply only to the Client Partnership Services as
identified on the Order Form executed by the Parties, and this Section K shall not affect the rights or use of such other Kronos software
modules or applications (i.e., the Kronos Workforce software suite of products) acquired by Customer under the other section of the
Agreement.
NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth herein, the Parties agree as follows:
1. Client Partnership Services for Kronos Software.
If purchased by Customer on the applicable Order Form, the parties agree that the following terms shall apply to Customer’s purchase
of Client Partnership Services only and shall supplement the Software Support Services offered by Kronos under Section B:
(a)
Scope. Kronos Client Partnership Services will provide to Customer’s organization an additional set of support services to
develop performance improvement for those customers using the Kronos software. This service includes a dedicated
Strategic Client Advisor (the “Advisor”) who works closely with the Customer to guide the Customer in optimizing the use of
the Software. The Advisor will be the Customer’s link to Kronos’ broad industry practice, support tools and knowledge base.
The Advisor will also provide consultation services which include, but are not limited to, developing supporting processes,
staff engagement and accountability structures, service plan development in response to Customer’s business
requirements, as well as serving as a resource link to assist Customers in networking with other Kronos healthcare
organizations;
(b)
Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms
provided Customer renews the Client Partnership Services as provided below;
(c)
Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with the
payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of
the Client Partnership Services at least forty-five (45) days prior to expiration of the then current term. Client Partnership
Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or
any renewal term and;
(d)
Change to Offerings; Support Increases: Client Partnership Services are offered under Kronos Software Support offerings
and after the one year initial term of this Addendum, the Client Partnership Service offerings provided and the service
coverage period are subject to change by Kronos.
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SECTION K
WORKFORCE DIMENSIONS™ AGREEMENT
Customer and Kronos agree that the terms and conditions set forth in this Section K apply to Kronos’
Workforce Dimensions software as a service and other related offerings specified on a Kronos Order
Form.
This Section K includes the following exhibits, which are incorporated by reference, and which form an
integral part of this contract:
Exhibit K-A: Attachment A-1: Equipment Purchase, Rental, and Support
Attachment A-2: Professional and Educational Services Policies
Attachment A-3: Service Level Agreement
Exhibit K-B: Workforce Dimensions Cloud Guidelines:
www.kronos.com/workforce-dimensions/agreement/exhibitb
Exhibit K-C: Customer Success
Attachment C-1: Customer Success Plans
Attachment C-2: Support Policies
Exhibit K-D: Acceptable Use Policy (AUP):
www.kronos.com/workforce-dimensions/agreement/exhibitd
Exhibit K-E: AtomSphere Service and Boomi Software
Attachment E-1: Boomi Flow Down Provisions
The description of the type, quantity, and cost of the specific offerings being ordered by Customer will
be described in an Order Form, that will be mutually agreed upon and signed by the Parties pursuant
and subject to this Section K. If Implementation Services are to be delivered by Kronos, the Parties may
need to execute a Statement of Work, which will set forth the scope, objectives and other business
terms of the Implementation Services ordered with the Order Form.
Definitions
“Acceptable Use Policy” and “AUP” are interchangeable terms referring to the Kronos policy describing
prohibited uses of the Service as further described in Exhibit D.
“Aggregated Data” is any statistical data that is derived from the operation of the Service, including
without limitation, for analysis of the Service, Configurations or Customer Data, and is created by Kronos
in response to specified queries for a set point in time; including without limitation aggregation, metrics,
trend data, correlations, benchmarking, determining best practices, the number and types of
transactions, configurations, records, reports processed in the Service, and the performance results for
the Service Agreement.
“Applicable Law(s)” means any applicable provisions of all laws, codes, legislative acts, regulations,
ordinances, rules, rules of court, and orders which govern the Party’s respective business.
“Authorized User” means any individual or entity that directly (or through another Authorized User)
accesses or uses the Service with any login credentials or passwords Customer uses to access the
Service.
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“Application(s)” means those Kronos Workforce Dimensions software application programs set forth on
an Order Form which are made accessible for Customer to use under the terms of this Agreement.
“Boomi AtomSphere Service” means the third-party service for the creation of integrations by
Customer as further described in Exhibit E, which the Customer and Customer’s Authorized Users have
the right to access through the Service.
“Boomi Software” means the third-party proprietary software associated with the Boomi AtomSphere
Service as further described in Exhibit E.
“Claim(s)” means any and all notices, charges, claims, proceedings, actions, causes of action and suits,
brought by a third party.
“Configuration(s)” means the Customer specific settings of the parameters within the Applications(s),
including pay and work rules, security settings such as log-in credentials, passwords, and private keys
used to access the Service.
“Controls” means the administrative, physical, and technical safeguards for the protection of the
security, confidentiality and integrity of Customer Data, designed and implemented by Kronos to secure
Customer Data against accidental or unlawful loss, access or disclosure consistent with the AICPA Trust
Principles Criteria for security, availability, confidentiality and processing integrity (SOC 2).
“Customer Data” means all content Customer, or its Authorized Users, posts or otherwise inputs into
the Service, including but not limited to information, data (such as payroll data, vacation time, hours
worked or other data elements associated with an Authorized User), text, multimedia images (e.g.
graphics, audio and video files), or compilations.
“Customer Success Plan(s)” means the services provided by Kronos to support and maintain the Service
as described in Exhibit C, including but not limited to the Support Plans and the Customer Success
Programs.
“Customer Indemnified Party(ies)” means Customer and Customer’s respective directors, officers, and
employees.
“Data Protection Law(s)” means all international, federal, state, and local laws, rules, regulations,
directives and published governmental or regulatory decisions that specify data privacy, data protection
or data security obligations, and which, in each case, have the force of law applicable to a Party’s
collection, use, processing, storage, or disclosure of Personally Identifiable Information.
“Documentation” means the published specifications for the applicable Applications and Equipment,
such as user manuals and administrator guides.
“Equipment” means Kronos equipment such as time clocks, devices, or other equipment set forth on an
Order Form.
“Equipment Support Services” means the maintenance and support services related to Kronos’ support
of Equipment as further described in Attachment A-1.
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“Feedback” means suggestions, ideas, comments, know how, techniques or other information provided
to Kronos for enhancements or improvements, new features or functionality or other feedback with
respect to the Service.
“Fees” means the charges to be paid by Customer for a particular item.
“Implementation Services” means those professional and educational services provided by Kronos to
set up the cloud environment and to setup the Configurations within the Applications, as set forth in an
SOW.
“Kronos Indemnified Party(ies)” means Kronos and its third-party Technology suppliers and each of
their respective directors, officers, employees, agents and independent contractors.
“Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth,
among other things, the items ordered by Customer and to be provided by Kronos and the Fees to be
paid by Customer.
“Party(ies)” means Kronos or Customer, or both of them, as the context dictates.
“PEPM” means the per employee per month fee for a Customer’s Authorized Users access to the
Service.
“Personally Identifiable Information” means information concerning individually identifiable employees
of Customer that is protected against disclosure under Applicable Data Protection Law.
“Professional Services” means the professional, educational, consulting, or training services provided by
Kronos pursuant to an Order Form and which are not described in a Statement of Work.
“Seasonal Licenses” are limited use licenses that have the following attributes: (i) valid only for the four
(4) consecutive months during the annual period identified on the Order Form; (ii) valid from the first day
of the month in which they commence until the end on the last day of the month in which they expire;
and (iii) will be effective automatically each year during the Term, subject to termination and non-renewal
as provided in the Agreement.
“Service” means the Kronos supply of the commercially available version of the Workforce Dimensions
SaaS Applications in Kronos’ hosted environment and the services described in the section related
thereto.
“Statement of Work” and “SOW” are interchangeable terms referring to a written description of the
Implementation Services.
“Technology” means the intellectual property of Kronos within the Service, including but not limited to
the Applications.
“Term” means the Initial Term and any Renewal Terms.
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1. Order Forms
1.1 The following commercial terms may appear on an Order Form:
a. The Application(s) included in the Service, and the other offerings being ordered by Customer
b. Billing Start Date (i.e., the date the billing of the PEPM Fees commences)
c. Initial Term (i.e., the initial billing term of the Service commencing on the Billing Start Date)
d. Renewal Term (i.e., the renewal billing term of the Service)
e. Billing Frequency (i.e., the frequency for the invoicing of the PEPM Fees such as Annual in
Advance or Monthly in Arrears)
i. “Annual in Advance” means payment is due on an annual basis with the invoice being
issued upon execution of the Order Form.
ii. “Monthly in Arrears” means payment is due on a monthly basis with the invoice being
issued at the end of the month in which the Service was delivered.
f. Payment Terms (i.e., the amount of days in which Customer must pay a Kronos invoice)
g. Shipping Terms (i.e., FOB – Shipping Point, Prepay and Add)
1.2 The following Fees may appear on an Order Form:
a. PEPM Fees for use of the Service, including PEPM Fees for Seasonal Licenses
b. Customer Success Fees for Premium and Premium Plus Plans
c. Implementation Services Fees (The Order Form will note if Implementation Services Fees are
included in PEPM Fees.)
d. Equipment Purchase Fees
e. Equipment Rental Fees
1.3 Kronos may also sell (or rent) Equipment to Customer, and provide related Equipment Support
Services, if included on an Order Form. These offerings are subject to this Agreement and the terms and
conditions set forth in Attachment A-1.
2. Billing
2.1 Kronos will invoice the Fees on the Billing Frequency indicated on the Order Form. For each Order
Form, the billing period of the PEPM Fees will start on the Billing Start Date and will continue for the
time period indicated as the Initial Term. Customer will pay the Fees on the Payment Terms and in the
currency, indicated on the Order Form. Customer will send payment to the attention of Kronos at the
address indicated on the applicable invoice unless the Parties have made an alternative payment
arrangement (such as credit card, wire transfer, ACH payment or otherwise). Unless expressly provided
in this Section K, Customer payments are non-refundable. Each Party is responsible to pay all costs and
fees attributable to such Party pursuant to the Shipping Terms indicated on the Order Form.
2.2 At the expiration of the Initial Term, and at the expiration of each Renewal Term, the Service will
automatically renew for a Renewal Term. For each Renewal Term, Kronos may increase the PEPM Fees
by no more than four percent (4%) over the previous year’s PEPM Fees, for the same Applications and
the same licensed quantity. Kronos will reflect these increased PEPM fees in the applicable invoice for
each Renewal Term.
3. Implementation Services and Professional Services
3.1 Implementation Services are described in a SOW that the Parties will sign or reference on a signed
Order Form. These SOWs are subject to this Section K. Implementation Services are invoiced monthly
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as delivered, except if otherwise indicated on an Order Form. Each Party will perform their respective
obligations as outlined in a signed SOW.
3.2 While Customer may configure the Applications itself, as part of the Implementation Services as
described in an SOW, Kronos may also configure the Applications. Kronos will configure the Applications
based on Customer’s instructions and direction. Customer is solely responsible for ensuring that the
Configurations comply with Applicable Law.
3.3 Kronos may also provide Professional Services to Customer that do not require an SOW but which
will be as set forth on an Order Form.
3.4 The Kronos policies set forth in Section B shall apply to all Implementation Services and Professional
Services provided by Kronos. In the event of a conflict between the Professional Services Policies and
this Section K, the terms of this Section K shall prevail.
4. Service Level Agreement
Kronos offers the Service Level Agreement and associated SLA Credits as described in Attachment A-3.
The SLA Credits are Customer’s sole and exclusive remedy in the event of any Outage. Kronos remains
obligated to provide the Service as otherwise described in this Section K.
5. Data, Confidentiality, Security and Privacy
Section 5.1 Data
5.1.1 Customer owns Customer Data. Customer is solely responsible for Customer Data, including
ensuring that Customer Data complies with the Acceptable Use Policy and Applicable Law. Customer is
solely responsible for any Claims that may arise out of or relating to Customer Data.
5.1.2 Kronos owns the Aggregated Data. Nothing in this Agreement will prohibit Kronos from utilizing
the Aggregated Data for any purposes, provided that Kronos’ use of Aggregated Data will anonymize
Customer Data, will not reveal any Customer Confidential Information, and will not reveal any Personally
Identifiable Information.
Section 5.2 Security and Privacy
5.2.1 Kronos will maintain the Controls throughout the Term.
5.2.2 Each Party will comply with all Applicable Laws, including, without limitation, Data Protection
Laws.
5.2.3 Kronos employees will access Customer Data from the locations from which such employees work.
Customer consents to Kronos’ handling, collection, use, transfer, and processing of Customer Data to
provide the Service. As may be required by Applicable Law, Customer will ensure that Customer Data may
be provided to Kronos for the purposes of providing the Service. Customer has obtained all necessary
consents from individuals to enable Kronos to use the Customer Data to provide the Service. As may be
contemplated by the applicable Data Protection Laws, Customer will remain the “controller” of Customer
Data and Kronos will be considered a “processor” of Customer Data.
5.2.4 Kronos will notify Customer in accordance with Applicable Law upon becoming aware of an
unauthorized access of Customer Data. To the extent reasonably possible, such a notification will include,
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at a minimum (i) a description of the breach, (ii) the information that may have been obtained as a result
of the breach, and (iii) the corrective action Kronos is taking in response to the breach.
6. Warranty
Kronos warrants that the Service will be provided in a professional and workmanlike manner. TO THE
EXTENT PERMITTED UNDER APPLICABLE LAW, KRONOS DISCLAIMS ALL OTHER WARRANTIES RELATED
TO THE SERVICE, EITHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. If Customer informs Kronos in writing
that there is a material deficiency in the Service which is making this warranty untrue, Kronos will use its
reasonable commercial efforts to correct the non-conforming Service at no additional charge, and if
Kronos is unable to do so within a reasonable period of time, Customer may terminate the then
remaining Term, which will be Customer’s sole and exclusive remedy. Customer agrees to provide
Kronos with reasonable information and assistance to enable Kronos to reproduce or verify the non-
conforming aspect of the Service.
7. License
Section 7.1 Technology License
7.1.1 As part of the Service, Kronos will provide Customer access to and use of the Technology, including
the Applications. Kronos hereby grants Customer a limited, revocable, non-exclusive, non-transferable,
non-assignable right to use the Service, including the Technology, during the Term and for internal
business purposes only. Customer acknowledges and agrees that the right to use the Service, including
Seasonal Licenses when included on the Order Form, is limited based upon the number of Authorized
Users, and Customer’s payment of the corresponding PEPM Fees. Customer agrees to use the
Applications only for the number of employees stated on the total of all Order Forms for the applicable
Applications. Customer agrees not to use any other Application nor increase the number of employees
using an Application unless Customer enters into an additional Order Form that will permit the Customer
to have additional Authorized Users.
7.1.2 Kronos owns all title or possesses all intellectual property rights in and to the Technology used in
delivering the Service. Customer has a right to use this Technology and to receive the Service subject to
this Section K. No other use of the Technology is permitted. Customer is specifically prohibited from
reverse engineering, disassembling or decompiling the Technology, or otherwise attempting to derive the
source code of the Technology. Customer cannot contact third party licensors or suppliers for direct
support of the Technology. No license, right, or interest in any Kronos trademark, trade name, or service
mark, or those of any third party supplying Technology as part of the Service, is granted hereunder.
8. Scope and Authority
8.1 Authorized Users may access the Service on Customer’s behalf, and Customer will be responsible for
all actions taken by its Authorized Users. Customer will make sure that Authorized Users comply with
Customer’s obligations under this Section K. Unless Kronos breaches its obligations under this Section K,
Kronos is not responsible for unauthorized access to Customer’s account, nor activities undertaken with
Customer’s login credentials, nor by Customer’s Authorized Users. Customer should contact Kronos
immediately if Customer believes an unauthorized person is using Customer’s account or that Customer’s
account information has been compromised.
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8.4 Use of the Service includes the ability to enter into agreements and/or to make transactions
electronically. This feature of the Service is referred to as the “Marketplace”. The use of the Marketplace
can be configured, and Customer may disable use of the Marketplace by some or all of its Authorized
Users. CUSTOMER ACKNOWLEDGES THAT WHEN AN AUTHORIZED USER INDICATES ACCEPTANCE OF AN
AGREEMENT AND/OR TRANSACTION ELECTRONICALLY WITHIN THE MARKETPLACE, THAT ACCEPTANCE
WILL CONSTITUTE CUSTOMER’S LEGAL AGREEMENT AND INTENT TO BE BOUND BY AND TO PAY FOR SUCH
AGREEMENTS AND TRANSACTIONS. THIS ACKNOWLEDGEMENT THAT CUSTOMER INTENDS TO BE BOUND
BY SUCH ELECTRONIC ACCEPTANCE APPLIES TO ALL AGREEMENTS AND TRANSACTIONS CUSTOMER
ENTERS INTO THROUGH THE SERVICE, SUCH AS ORDERS, CONTRACTS, STATEMENTS OF WORK, AND
NOTICES OF CANCELLATION.
9. Suspension
9.1 Kronos may suspend the Service if any amount that Customer owes Kronos is more than thirty (30)
days overdue. Kronos will provide Customer with at least seven (7) days prior written notice that the
Customer’s account is overdue before Kronos suspends the Service. Upon payment in full of all overdue
amounts, Kronos will immediately restore the Service.
9.2 Customer is responsible for complying with the AUP. Kronos and its third party cloud service provider
reserve the right to review Customer’s use of the Service and Customer Data for AUP compliance and
enforcement. If Kronos discovers an AUP violation, and Kronos reasonably determines that Kronos must
take immediate action to prevent further harm, Kronos may suspend Customer’s use of the Service
immediately without notice. Kronos will contact Customer when Kronos suspends the Service to discuss
how the violation may be remedied, so that the Service may be restored as soon as possible. If Kronos
does not reasonably believe it needs to take immediate action, Kronos will notify Customer of the AUP
violation. Even if Kronos doesn’t notify Customer or suspend the Service, Customer remains responsible
for any such AUP violation. Kronos will restore the Service once the AUP violation is cured or as both
Parties may agree.
10. Termination
Section 10.1. Types of Termination
10.1.1 For Convenience. Customer may terminate the Service and this Section K for convenience upon
ninety (90) days prior written notice. Customer may terminate Seasonal Licenses upon at least sixty (60)
days prior written notice before the start of a Renewal Term.
10.1.2 Non-renewal. Either Party may terminate the Service upon at least sixty (60) days prior written
notice before the start of the Renewal Term.
10.1.3 For Cause. Either Party may terminate the Service and this Section K if the other Party fails to
perform any material obligation under this Section K, and such Party is not able to cure the non-
performance within thirty (30) days of the date such Party is notified by the other Party of such default.
10.1.4 For Bankruptcy. If either Party: (i) becomes insolvent, (ii) makes a general assignment for the
benefit of our creditors, (iii) is adjudicated as bankrupt or insolvent, or (iv) has a proceeding commenced
against it under applicable bankruptcy laws, the other Party may ask for a written assurance of future
performance of a Party’s obligations under this Agreement. If an assurance that provides reasonable
evidence of future performance is not provided within ten (10) business days of a written request, the
requesting Party may immediately terminate this Agreement upon written notice.
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Section 10.2 Effects of Termination
If the Section K is terminated for any reason:
a.
All Fees will be paid by Customer for amounts owed through the effective date of termination.
b.
Any Fees paid by Customer for the Service not rendered prior to the effective date of termination
will be credited against Customer’s account, with any remaining amounts refunded to Customer
within thirty (30) days of the effective date of termination.
c.
Customer’s right to use the Service will end as of the effective date of termination.
Notwithstanding such termination, Customer will have thirty (30) days after the effective date of
termination to access the Service for purposes of retrieving Customer Data through tools provided
by Kronos that will enable Customer to so extract Customer Data. If Customer requires a longer
period of access to the Service after termination to retrieve Customer Data, such access will be
subject to additional Fees. Extended access and use of the Services will be subject to the terms of
this Section K.
d.
Kronos will delete Customer Data after Customer’s rights to access the Service and retrieve
Customer Data have ended. Kronos will delete Customer Data in a series of steps and in
accordance with Kronos’ standard business practices for destruction of Customer Data and system
backups. Final deletion of Customer Data will be completed when the last backup that contained
Customer Data is overwritten.
e.
Kronos and Customer will each return or destroy any Confidential Information of the other Party,
with any retained Confidential Information remaining subject to this Section K.
f.
Provisions in this Section K which by their nature are intended to survive in the event of a dispute
or because their obligations continue past termination will so survive.
11. Indemnification
11.1 Kronos will defend the Customer Indemnified Parties, from and against any and all Claims alleging
that the permitted uses of the Service, Technology or Applications infringe or misappropriate any
legitimate copyright or patent. Kronos will indemnify and hold harmless the Customer Indemnified Parties
against any liabilities, obligations, costs or expenses (including, without limitation, reasonable attorneys’
fees) actually awarded to a third party by a court of applicable jurisdiction as a result of such Claim, or as
a result of Kronos’ settlement of such a Claim. In the event that a final injunction is obtained against
Customer’s use of the Service by reason of infringement or misappropriation of any such copyright or
patent, or if in Kronos’ opinion, the Service is likely to become the subject of a successful claim of
infringement or misappropriation, Kronos (at its option and expense) will use commercially reasonable
efforts to either (a) procure for Customer the right to continue using the Service as provided in the Section
K, or (b) replace or modify the Service so that the Service becomes non-infringing but remains
substantively similar to the affected Service. Should neither (a) nor (b) be commercially reasonable, either
Party may terminate the Agreement and the rights granted hereunder, at which time Kronos will provide
a refund to Customer of the PEPM Fees paid by Customer for the infringing elements of the Service
covering the period of their unavailability.
11.2 Kronos will have no liability to indemnify or defend Customer to the extent the alleged infringement
or misappropriation is based on: (a) a modification of the Service undertaken by anyone other than
Kronos, or not undertaken at Kronos’ direction and in accordance with such direction; (b) use of the
Service other than as authorized by this Section K; or (c) use of the Service in conjunction with any
equipment, service or software not provided by Kronos, where the Service would not otherwise infringe,
misappropriate or otherwise become the subject of the Claim.
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11.3 Customer shall be responsible and liable for all damages and costs of Kronos arising out of any and
all Claims alleging that: (a) the Configurations violate any law applicable to the rights of an Authorized
User; (b) Customer’s modification or combination of the Service with other services, software or
equipment not furnished by Kronos, infringes or misappropriates any copyright or patent, provided that
such modification or combination is the cause of such infringement and was not authorized by Kronos in
writing; or, (c) a claim that the Customer Data or its collection or use by Customer violates the AUP or
Applicable Laws.
11.4 The Indemnified Party will provide written notice to the indemnifying party promptly after receiving
notice of such Claim. If the defense of such Claim is materially prejudiced by a delay in providing such
notice, the purported indemnifying party will be relieved from providing such indemnity to the extent of
the delay’s impact on the defense. The indemnifying party will have sole control of the defense of any
indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying
party will not enter into any settlement which imposes any obligations or restrictions on the applicable
Indemnified Parties without the prior written consent of the other Party. The Indemnified Parties will
cooperate fully (at the indemnifying party’s request and expense) with the indemnifying party in the
defense, settlement or compromise of any such action. The indemnified party may retain its own counsel
at its own expense, subject to the indemnifying party’s rights above.
12. Extent and Limitations of Liability
12.1 EXCEPT FOR KRONOS’ INDEMNIFICATION OBLIGATIONS EXPRESSLY SET FORTH IN SECTION 11
ABOVE, THE TOTAL AGGREGATE LIABILITY OF KRONOS TO CUSTOMER OR TO ANY THIRD PARTY IN
CONNECTION WITH THIS AGREEMENT WILL BE LIMITED TO ACTUAL AND DIRECT DAMAGES PROVEN BY
CUSTOMER, SUCH DAMAGES NOT TO EXCEED AN AMOUNT EQUAL TO THE TOTAL NET PAYMENTS
RECEIVED BY KRONOS FOR THE SERVICE IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING
THE DATE IN WHICH THE CLAIM ARISES.
12.2 NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR
PUNITIVE DAMAGES. NEITHER PARTY WILL BE LIABLE FOR THE COST OF ACQUIRING SUBSTITUTE OR
REPLACEMENT SERVICES. NEITHER PARTY WILL BE LIABLE FOR ANY LOST OR IMPUTED PROFITS OR
REVENUES OR LOST DATA RESULTING FROM DELAYS, NONDELIVERIES, MISDELIVERIES OR SERVICES
INTERRUPTION, HOWEVER CAUSED, ARISING FROM OR RELATED TO THE SERVICE OR THIS AGREEMENT.
THESE LIMITATIONS APPLY FOR ANY REASON, REGARDLESS OF ANY LEGAL THEORY AND FOR WHATEVER
REASON LIABILITY IS ASSERTED.
13. Changes
The information found in any Exhibit (or at any URL referenced in this Section K) may change over the
Term. Any such change will be effective as of the start of the next Renewal Term after such change is
announced or published by Kronos.
14. Feedback
From time to time, Customer may provide Feedback. Kronos has sole discretion to determine whether or
not to undertake the development of any enhancements, new features or functionality contained in or
with Feedback. Customer hereby grants Kronos a royalty-free, fully paid up, worldwide, transferable,
sublicensable, irrevocable, perpetual license to use, copy, distribute, transmit, display, perform, create
derivative works of and otherwise fully exercise and commercially exploit the Feedback for any purpose
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in connection with Kronos’ business without any compensation to Customer or any other restriction or
obligation, whether based on intellectual property right claim or otherwise. For the avoidance of doubt,
no Feedback will be deemed to be Customer Confidential Information, and nothing in this Section K limits
Kronos’ right to independently use, develop, evaluate, or market products or services, whether
incorporating Feedback or otherwise.
Attachment A-1: Equipment Purchase, Rental, and Support:
www.kronos.com/workforce-dimensions/agreement/attachment-a1
Attachment A-2: Professional and Educational Services Policies:
www.kronos.com/workforce-dimensions/agreement/attachment-a2
Attachment A-3: Service Level Agreement:
www.kronos.com/workforce-dimensions/agreement/attachment-a3
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Exhibit K-C: Customer Success
Section 1. Success Plans
1.1 Kronos offers the following Success Plans for Workforce Dimensions:
a. Community Success (included in Customer’s PEPM Fee)
b. Guided Success (available for an additional Fee)
c. Signature Success (available for an additional Fee with minimum annual spend in PEPM and
Equipment Rental Fees)
1.2 As part of the Community Success Plan, Kronos will provide:
a. Local Time Zone Support: 8am – 8pm Monday to Friday, with two-hour response time to support
cases.
b. 27/7 Mission Critical Support: Immediate and on-going support for a critical issue with no
available workaround, where the system or a module may be down, experiencing major system
degradation, or other related factors.
c. Kronos Community Access: Ability to access how-to articles, discussion boards, and open support
cases .
d. Kronos Onboarding Experience: Step-by-step guidance to assist Customer during onboard
activities.
e. KnowledgeMap™: On-line education portal providing access to Kronos e-learning resources.
e. KnowledgeMap™ Live may be purchased for an additional Fee.
f. A Technical Account Manager (TAM) may be purchased for an additional Fee: senior Technical
Support Engineers or former Kronos Application Consultants with industry-specific Kronos product
knowledge.
1.3 As part of the Guided Success Plan, Kronos will provide:
a. All of the services under Community Success, including the option to purchase KnowledgeMap™
Live or a TAM.
b. Proactive Support: Monitoring of your environment and usage with proactive notification and
resolution of potential issues.
c. Named Success Manager: Dedicated, industry-specific advisor.
d. Live Check-In Meetings: Regular meetings with your named success manager.
e. Personalized Success Path: Tailored guidance based on your business goals.
f. Success Reporting: Personalized reporting providing insight into your key performance indicators
on an annual basis (i.e., user adoption, compliance, productivity, efficiency.)
g. Executive Business Review: Strategic review of roadmap, realized value, engagement,
relationship, and future direction.
h. Optimization Assessment: Assistance with optimizing the use of Workforce Dimensions based on
your current usage patterns.
1.4 As part of the Signature Success Plan, Kronos will provide:
a. All of the services under Guided Success. Additionally, KnowledgeMap™ Live and a TAM are
included as part of the Signature Success Plan for no additional Fee.
b. 24/7 Local Time Zone Support with one-hour response time to support cases.
c. Technical Account Manager included at no additional charge.
d. Integration/API Support: Assistance with enhancing and updating existing APIs and integrations.
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e. KnowledgeMap™ Live included at no additional charge.
k. Industry Best Practice Audit: Review configuration and use of Workforce Dimensions against
industry peers and provide recommendations.
1.5 Each Success Plan provides different services and different service coverage periods, which are
described in Attachment C-1.
1.6 The Kronos policies set forth in Attachment C-2 shall apply to all Success Plans.
Attachment C-1: Success Plans:
www.kronos.com/workforce-dimensions/agreement/attachment-c1
Attachment C-2: Support Policies:
www.kronos.com/workforce-dimensions/agreement/attachment-c2
52
Exhibit K-E: AtomSphere Service and Boomi Software
As part of the Service, Customer has the right to access and use the Boomi AtomSphere Service and a non-
exclusive, non-transferable and non sublicenseable license to use the associated Boomi Software as part of the
Boomi AtomSphere Service. Customer may use the Boomi AtomSphere Service and the Boomi Software only to
create integrations to and from the Service.
There are two (2) cloud environments associated with Customer use of the Boomi AtomSphere Service and the
Boomi Software:
a.
Run-Time environment: A run time environment in the Kronos Cloud where the integration created by
with the Boomi AtomSphere Service runs. This environment is described in Exhibit B.
b.
Development environment: A development environment in the Boomi Cloud where the design and
development tools exist to build the integrations. This environment is referred to as a Hosted
Environment in Attachment E-1.
The Boomi AtomSphere Service is subject to the additional terms and conditions set forth below. These additional
terms and conditions apply to all integrations to and from the Service using the Boomi AtomSphere Service,
whether done by Customer or by Kronos. Except as provided in these additional terms and conditions, all terms
and conditions of this Section K related to the Service apply to the Boomi AtomSphere Service. Upon termination,
Customer’s rights to access the Boomi AtomSphere Service and the Boomi Software also terminates.
Attachment E-1: Boomi Flow Down Provisions:
www.kronos.com/workforce-dimensions/agreement/attachment-e1
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Exhibit K F: Workforce Dimensions™ Add-Ins
This Exhibit governs the Add-In(s) to be provided by Kronos to Customer, if specified on an Order Form. Capitalized
terms not otherwise defined herein shall have the meanings prescribed to them in the Agreement. In the event of a
conflict or inconsistency between the Agreement and this Exhibit, this Exhibit shall control.
Customer agrees that the Add-In(s) may only be used solely in connection with Workforce Dimensions™ for
Customer’s own internal purposes. The Add-Ins are not installed in the Kronos hosting environment in which
Workforce Dimensions resides. The Add-Ins may only be installed and operated in a data center or other cloud
environment managed by or on behalf of Customer. Customer is solely responsible to have all applicable rights,
licenses and necessary infrastructure and support to use the third-party applications with which the Add-In(s)
function, including security of the environment in which the Add-In(s) are installed.
The Service Level Agreement and associated SLAs (Attachment A-3) and the Workforce Dimensions Cloud
Guidelines (Exhibit B) in the Agreement do not apply to the Add-In(s) because the Add-In does not reside in Kronos’
hosting environment.
Implementation. Configuration and deployment of the Add-In(s) may be performed by Customer in accordance
with Kronos written instructions and guidelines. Alternatively, Customer may engage Kronos or a third party to
perform implementation or professional services as described in the Agreement.
Warranty Disclaimer. Kronos does not warrant that the Add-In(s) will be free from errors or service interruption.
Kronos disclaims errors and liability with respect to the third-party applications or APIs with which the Add-In(s)
function. Customer is solely responsible to manage its accounts or systems that may access the Add-In(s).
LINKING AGREEMENT - EXHIBIT B
Exhibit C: Detailed Project Compensation
for Linking Agreement between the City of Glendale and Kronos
Description
Price
Months
SubTotal
Estimated
Tax (9.2%)
Total
FY2022‐23
Year 1: Software Licensing/Maintenance
$17,730
12
$212,760 $19,573.92
$232,333.92
$232,333.92
Year 2: Software Licensing/Maintenance
$17,730
12
$212,760 $19,573.92
$232,333.92
Setup Fee/Professional Services
4 equal quarterly installments
$10,105.28
$119,945.28
$29,986.32
A La Carte Services (see quote)
4 equal quarterly installments
$2,599.00
$30,849.00
$7,712.25
Training
$441.60
$5,241.60
Contract Total
$620,703.72
$270,032.49
$4,800
$109,840
$28,250