The Software Vendor Agreement serves as the primary contractual framework for software licensing and implementation transactions in Malaysia. It is essential when a business wishes to procure software solutions from a vendor, whether for on-premises installation or cloud-based deployment. This agreement type is crucial in the Malaysian market where software procurement must comply with local regulations including the Digital Signature Act 1997, Personal Data Protection Act 2010, and Electronic Commerce Act 2006. The document covers critical aspects such as license scope, implementation services, maintenance obligations, data protection, and intellectual property rights. It is particularly relevant given Malaysia's growing technology sector and increasing adoption of digital solutions across industries. The agreement typically includes detailed technical specifications, service level commitments, and data processing terms, making it suitable for both standard software deployments and complex enterprise implementations.
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1. Parties: Identification of the vendor and customer with full legal names and registration details
2. Background: Context of the agreement, brief description of the software and purpose
3. Definitions: Detailed definitions of terms used throughout the agreement
4. License Grant: Scope, nature, and limitations of the software license
5. Delivery and Implementation: Terms for software delivery, installation, and acceptance testing
6. Fees and Payment: Payment terms, fee structure, and invoicing requirements
7. Intellectual Property Rights: IP ownership, protection, and related warranties
8. Confidentiality: Protection of confidential information and trade secrets
9. Data Protection: Compliance with PDPA 2010 and data handling obligations
10. Warranties and Representations: Software performance, compliance, and quality warranties
11. Support and Maintenance: Terms for ongoing support and maintenance services
12. Term and Termination: Duration, renewal, and termination provisions
13. Limitation of Liability: Liability caps and exclusions
14. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment
1. Source Code Escrow: Optional provisions for source code escrow arrangements, typically used for business-critical software
2. Professional Services: Additional terms for custom development or consulting services if offered
3. Change Control: Procedures for managing changes to software or services, relevant for complex implementations
4. Disaster Recovery: Business continuity and disaster recovery obligations, important for critical systems
5. Third-Party Software: Terms relating to third-party software components, if applicable
6. Export Control: Compliance with export control laws, relevant for international deployments
7. Insurance: Specific insurance requirements, typically for enterprise-level agreements
1. Schedule 1 - Software Description: Detailed description of the software, including specifications and functionality
2. Schedule 2 - Service Level Agreement: Performance metrics, response times, and service quality standards
3. Schedule 3 - Support and Maintenance Services: Detailed support tiers, maintenance windows, and escalation procedures
4. Schedule 4 - Fee Schedule: Detailed breakdown of license fees, support costs, and payment milestones
5. Schedule 5 - Implementation Plan: Timeline and milestones for software implementation
6. Schedule 6 - Technical Requirements: Hardware, software, and network requirements for the system
7. Schedule 7 - Data Processing Agreement: Detailed terms for personal data processing in compliance with PDPA 2010
8. Appendix A - Acceptance Testing Criteria: Specific criteria and procedures for software acceptance
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