Service Provider Agreement: Definition & Sample

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What is a Service Provider Agreement?

Common Sections in Service Provider Agreements

Below is a list of common sections included in Service Provider Agreements. These sections are linked to the below sample agreement for you to explore.

Service Provider Agreement Sample

This Agreement is made as of January 1, 2005 by and between:

CYPRESS SEMICONDUCTOR PHILIPPINES HEADQUARTERS LTD.- REGIONAL OPERATING HEADQUARTERS , a corporation duly organized and existing under and by virtue of the laws of the Cayman Islands, with an office address at 2 nd Floor, NetOne Center 26 th St., Corner 3 rd Avenue, Crescent Park West, Fort Bonifacio Global City, Taguig, Metro Manila, Philippines 1630 (hereinafter referred to as the Service Provider) represented in this instance by Emmanuel Hernandez, Vice President,

SUNPOWER PHILIPPINES MANUFACTURING LIMITED, a corporation duly organized and existing under and by virtue of the laws of Cayman Island (hereinafter referred to as SPML), represented in this instance by Jay Peir, Vice President;

WHEREAS, the Service Provider has established a centralized financial service, and service center to process large volume financial transactions and provide General administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; training and personnel management; logistics services; research and development services, product development; technical support and maintenance; data processing and communication; IT infrastructure, business plant development; facilities – safety, security, safety and emergency response planning; new product introduction development, new package development; low cost tester development and new methods of testing; assessment and administration of quality systems and procedure both internal and external to Cypress; start-up project planning and execution;

WHEREAS, SPML desires to retain Service Provider as an independent contractor to perform from time to time certain as further defined herein (collectively, the “Services”);

NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and intending to be legally bound, the parties hereby agree as follows:

1. A GREEMENT TO P ROVIDE S ERVICES
1.1 S COPE OF S ERVICES

The Service Provider shall provide qualifying services (more fully described in Exhibit A) in the areas of general administration and planning, business planning and coordination, corporate finance services, training and personnel management, research and development services and product development, technical support and maintenance, data processing and communication and business development:

1.2 The Service Provider shall make available the above services at the same time frame as that of SPML or such other time mutually agreed upon by both parties. No change in time shall be made without notice to SPML.
1.3 The Service Provider shall also handle processing of payroll, withholding tax remittance of the said employees including SSS and Pag-ibig.
2. S ERVICE F EE
2.1 C OMPENSATION

For and in consideration of the full and faithful performance and completion of the stipulated work by the Service Provider in accordance with the terms and conditions agreed upon, SPML agrees to pay to Service Provider a Service Fee.

2.2 B ASIS FOR CALCULATING THE S ERVICE F EE

The Service Fee shall be an amount equal to all necessary and reasonable costs incurred by Service Provider in the performance of its duties under this Agreement, including without limitation, rent, salaries, overhead, and travel expenses, and excluding taxes, plus the amount set forth in Exhibit B.

2.3 P AYMENT FOR THE S ERVICE F EE

The Service Fee shall be paid in a mutually agreeable currency to such bank as is designated by Service Provider, and shall be made in strict compliance with all applicable governmental regulations and rulings of the governments of the Republic of the Philippines, including the withholding of any taxes required by law.

2.4 T IME AND F ORM OF P AYMENT

Service Provider shall submit monthly invoices of the Service Fees due and payable to it under the terms of this Agreement. Invoices shall be due and payable not later than thirty (30) days after receipt of the invoice. Thereafter, unpaid amounts not subject to a bona fide dispute shall bear interest until paid at a rate of 2.0% per month

2.5 Applicable taxes shall be borne by the Service Provider.
3. R ELATIONSHIP OF P ARTIES
3.1 It is understood and agreed that Services will be rendered by Service Provider as an independent contractor and that Service Provider shall perform the Services under the general direction of SPML as to the result of such activity, but that Service Provider shall determine, in its sole discretion, the manner and means by which the Services are accomplished, subject to the express conditions that Service Provider shall at all times comply with applicable law.
3.2 Nothing contained in this Agreement shall be construed to give either party the power to direct and control the day-to-day activities of the other, constitute the parties as partners, joint venturers, principal and agent, employer and employee, co-owners, or otherwise as participants in a joint undertaking, or allow Service Provider to create or assume any obligation on behalf of SPML for any purpose whatsoever. All financial and other obligations associated with Service Provider’s business are the sole responsibility of Service Provider.
4. T ERM AND T ERMINATION