Sample Business Contracts
Table of Contents
1. Solution Summary
Rackspace is a hosting company focusing on the provision of managed services to mid-sized enterprises. They have existing operations in the UK and US. They are undergoing a period of rapid growth and as a result are becoming capacity constrained within their existing UK facilities.
Rackspace has requested that the co-location space should comprise a dedicated caged-off suite or room with contiguous space in the region of 10,000 to 15,000 square feet. Cable & Wireless have a suitable area available on the first floor at Park Royal where there is 12030 feet available. Space has been allocated in Unit 8 mezzanine at Park Royal
3. Standard Services
3.1 Cable & Wireless Hosting Services
Services are detailed in the Hosting & Security Order Ref: HST-SEC-06-Rackspace
4. Description of Work
The following tasks are to be deliverable by the Hosting Implementation Team at Cable & Wireless:
Cable & Wireless will prepare and provide space, power, and cooling for the collocation of equipment as below.
The following tasks are out of scope:
4.1 Implementation information
The following space has been allocated in Unit 8 mezzanine to accommodate Rackspace. Cable & Wireless will provide 11750sqft of facilities space charged to Rackspace to cover power/cooling requirements into one contiguous space. Caging and potentially restrictions to access routes for the other client to be installed into this area will be required.
Rackspace have specified the following electrical requirements:
A cross connect is required from the caged area to an entry node.
All network devices will be installed, configured, and managed by Rackspace. Cable & Wireless is not managing the hosted network infrastructure.
Rackspace will require a number of data circuits presented to their cage. C&W, Colt, BT and MCI can provide the various circuits. Circuits presented to the Rackspace suite on copper or fibre will emanate from Unit 8 node or the BT intake room.
Servers will be installed, configured, and managed by Rackspace. Cable & Wireless will not be providing Managed OS or hardware maintenance for this infrastructure.
C&W will provide physical security but no network security
4.2 Operational information
Cable & Wireless will provide the following resources to for the implementation of this solution as detailed in the Hosting & Security Order Ref: HST-SEC-06-Rackspace
4.4 Customer Timescales
The implementation schedule will be within 30 working days of the contract signature
5 Assumptions and Deliverables
The following information details the assumptions being made within this solution, and lists Cable & Wireless's deliverables for this solution.
The following assumptions have been made in detailing the solution:
5.2 Cable & Wireless Deliverables
The following tasks are considered to be in the scope of this solution and therefore deliverable by Cable & Wireless:
5.3 Non-Cable & Wireless Deliverables
The following are considered to be out of scope, and as such will not be delivered by Cable & Wireless.
6. Equipment Summary
Not applicable (co location environment)
Not applicable (co location environment)
7. Commercial Summary
Commercial should be read in conjunction with Hosting & Security Order Ref: HST-SEC-06-Rackspace
7.1 Agreed Commercials.
7.1.2 Term of Contract
5 year deal with 3 year break clause for 12,000* sq. ft. of contiguous raised floor in Park Royal.
7.1.3. Rent Payments
Rent payments per sq ft per year are as follows;
Year 1; 11,750 sq. ft @ £8.00 per month
Year 2; 12,000 sq. ft @ £10.00 per month
Year 3; 12,000 sq. ft @ £10.00 per month
Year 4; 12,000 sq. ft @ £11.00 per month
Year 5; 12,000 sq. ft @ £11.00 per month
7.1.4 Break Payment
Break penalty at end of Year 3 of one off payment £288,000 should Rackspace exit Park Royal.
7.1.5. Additional Space
Rental of Additional office space within Park Royal facility of 730 sqft @ £25.00 per sqft per annum. Move-in date within 30 days after contract signing date.
7.1.6 Agreed Fixed Charges
7.2 Agreed Special Terms
7.2.1 Reserved Space
C&W will reserve 250 sqft within the 12,000-sqft contiguous area of raised floor in 8m suite in Park Royal without charge for first full year of contract.
C&W LAN Services will provide to Rackspace a competitive quotation for cabling of live floor area. Rackspace can reserve the right to benchmark C&W LAN Services quotation against other cabling companies. C&W will ensure that C&W LAN Services total will not be >10% of any other price obtained by Rackspace.
8. Acceptance and Sign Off
If you wish to accept this CSD, please complete the following details, sign the appropriate signature block (below) and return to C&W.
By signing this Customer Solution Document (CSD) below the Customer acknowledges it has received, and agrees to be bound by it.
This Amendment Agreement is an amendment to the agreement for a managed hosting solution and is made between:
CABLE & WIRELESS UK, whose registered address is Lakeside House, Cain Road, Bracknell, Berkshire, RG12 1XL (registered number 1541957) ("C&W"); and
RACKSPACE MANAGED HOSTING LIMITED whose registered address is 2 Longwalk Road, Stockley, Uxbridge, UB111BA ("Rackspace"),
together the "Parties".
IT IS AGREED as follows:
The Agreement will be varied in the following manner:
A new definition shall be added and shall read as follows:
"Interim Customer Site" is the area allocated by C&W for the provision of the Services at C&W's site in Park Royal from 1 October 2007 for a period of 12 months;"
A new clause 10 shall be added and shall read as follows:
"10 The Parties acknowledge the Initial Period of 5 years, unless otherwise set out on an Order Form. The Parties also acknowledge that certain payments have been waived by C&W. However, Rackspace agree that in the event that they terminate the Agreement for any reason prior to 6th April 2009, then such payments shall be invoiced by C&W and become due and payable by Rackspace."
"4 On 6 months written notice by C&W to Rackspace, such period expiring no earlier than 31 March 2009 and again no earlier than 31 July 2009, Rackspace shall migrate its use of the Services to another supplier or its own data centre (as the case may be), in contiguous sq feet blocks of no less than 1500 sq feet and no more than 2000 sq feet blocks at a time for both of the above agreed dates. Any such notices to be at least 3 months apart of the dates set out in this clause 4."
"5 In accordance with clause H4 above, upon such notices from Cable&Wireless, Rackspace will migrate all equipment from the Customer
Site by no later than 31 December 2009. In the event that Rackspace has not vacated such blocks in accordance to H4 above and H5 then Rackspace shall be liable to pay to C&W £100.00 per sq foot, per month (pro rated), that they have not migrated equipment away."
"6 As Rackspace migrate its use of the Services away from the Customer Site in accordance with clause H4 above, C&W will erect a cage at C&W cost, or other such division as is appropriate at the time, around such blocks of space, at the time Rackspace migrate all its equipment away from such block of space."
Interim Customer Site
"The charge for power used by the Customer shall be £0.13 per kwh per month. C&W shall provide 30 days notice of any change to this pence per kwh charge."