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Data Services Agreement Template

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DATA SERVICES AGREEMENT

This Data Services Agreement ("Agreement") is made and entered into as of by and between Provider Name: , with principal place of business at ("Provider"), and Client Name: , with principal place of business at ("Client"). Provider and Client are each a "Party" and together the "Parties."

RECITALS

WHEREAS, Provider operates data processing and analytics services and possesses technical capabilities to store, process and analyze data on behalf of its customers; and

WHEREAS, Client desires to engage Provider to perform certain data services relating to Client data under the terms and conditions set forth in this Agreement; and

WHEREAS, the Parties intend by this Agreement to allocate their respective rights and obligations regarding ownership, security, processing, access and permitted use of data provided or collected in connection with the services.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:

1. DEFINITIONS

For purposes of this Agreement capitalized terms have the following meanings:

"Services" means the data processing, hosting, analytics, reporting and related services to be provided by Provider as described in Section 2 and in the Service Description attached hereto.

"Client Data" means all electronic data, content and information provided by or collected on behalf of Client in the course of Provider performing the Services.

2. SERVICES; SERVICE DESCRIPTION

Provider shall perform the Services described in the Service Description. The scope, service levels and deliverables shall be those expressly set forth in the Service Description. Any change to the scope requested by Client shall be subject to a written change order signed by both Parties and any adjustment to fees and timelines as mutually agreed.

3. DATA OWNERSHIP; LICENSES

Client retains all right, title and interest in and to Client Data. Provider shall have only the limited, revocable, non-exclusive license to access and use Client Data solely to perform the Services and as necessary to exercise its rights under this Agreement. Provider shall not use Client Data for any other purpose, including marketing or benchmarking, except as expressly permitted by Client in writing.

4. CONFIDENTIALITY

Each Party agrees to maintain the confidentiality of the other Party's Confidential Information and to use such Confidential Information only to perform its obligations under this Agreement. Provider shall restrict access to Client Data to employees, contractors and agents with a need to know and bound by confidentiality obligations no less protective than those herein. Confidential Information does not include information that is or becomes generally available to the public through no act or omission of the receiving Party.

5. SECURITY; DATA PROTECTION

Provider shall implement and maintain administrative, physical and technical safeguards reasonably designed to protect the confidentiality, integrity and availability of Client Data, including encryption in transit and at rest where appropriate, access controls, logging and vulnerability management. Provider shall promptly notify Client upon becoming aware of any confirmed or suspected security incident affecting Client Data and shall cooperate in investigation and mitigation.

6. DATA SUBJECT RIGHTS AND COMPLIANCE

Provider shall assist Client, to the extent reasonably possible, in responding to requests from data subjects or supervisory authorities regarding Client Data. Provider shall comply with applicable data protection laws in performing the Services and shall not transfer Client Data outside jurisdictions where transfers are restricted without Client's prior written consent.

7. FEES; PAYMENT

Client shall pay Provider the fees set forth in the applicable fee schedule. Unless otherwise specified, invoices are due net thirty (30) days from date of invoice. All fees are exclusive of taxes and duties; Client shall pay applicable taxes other than taxes based on Provider's net income.

8. TERM; TERMINATION

This Agreement commences on the Effective Date and continues for the Initial Term set forth below, and thereafter renews for successive terms unless either Party provides written notice of non-renewal at least thirty (30) days prior to the end of the then-current term. Either Party may terminate this Agreement for material breach that remains uncured for thirty (30) days after written notice of breach. Upon expiration or termination, Provider shall cease processing Client Data and, at Client's direction, return or securely delete Client Data in Provider's possession within a reasonable period.

9. WARRANTIES; DISCLAIMER

Each Party represents and warrants that it has the full right, power and authority to enter into this Agreement. Provider warrants that it will perform the Services in a professional manner consistent with industry standards. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES ARE PROVIDED "AS IS" AND PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

10. INDEMNIFICATION; LIMITATION OF LIABILITY

Each Party shall indemnify, defend and hold harmless the other from claims arising out of the indemnifying Party's breach of this Agreement or its negligent or willful misconduct. IN NO EVENT SHALL EITHER PARTY'S AGGREGATE LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNTS PAID OR PAYABLE BY CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE SIX (6) MONTHS PRECEDING THE CLAIM, EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR A PARTY'S INDEMNIFICATION OBLIGATIONS.

11. AUDIT RIGHTS

Client, or an independent auditor engaged by Client, may audit Provider's compliance with the terms of this Agreement with reasonable prior notice and during normal business hours, subject to confidentiality obligations. Any such audit shall be limited to once annually unless a material noncompliance is reasonably suspected.

12. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the Parties at the addresses set forth below (or at such other address as a Party may designate by written notice).

13. AMENDMENT; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both Parties. No failure or delay by either Party in exercising any right shall constitute a waiver of that right.

14. GOVERNING LAW; VENUE

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction selected by the Parties below without regard to principles of conflicts of law. Each Party submits to the exclusive jurisdiction of the courts located in the selected jurisdiction for purposes of any dispute arising under this Agreement.

15. ENTIRE AGREEMENT; SEVERABILITY; COUNTERPARTS

This Agreement, including any exhibits, schedules and statements of work, constitutes the entire agreement between the Parties with respect to its subject matter and supersedes all prior and contemporaneous agreements. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

16. MISCELLANEOUS

The Parties are independent contractors. Nothing in this Agreement shall create a partnership, joint venture, agency or employment relationship between the Parties. Any provision that by its nature should survive termination shall survive, including but not limited to Sections 3 (Data Ownership), 4 (Confidentiality), 10 (Indemnification; Limitation of Liability), and 15 (Entire Agreement).

ATTACHMENTS

The following attachments and schedules are incorporated by reference: Service Description, Fee Schedule, and any mutually executed Statements of Work.

Provider:

By:

Date:

Client:

By:

Date:

Enter text✕

What a Data Services Agreement Template Is and when it applies

A Data Services Agreement Template is a standardized contract that defines how one party (the data provider) grants access to data and how the other party (the data service provider) may collect, process, store, transmit, and use that data. It sets roles, permitted uses, security controls, confidentiality obligations, data breach notification procedures, retention and deletion rules, liability limits, and dispute-resolution terms. Organizations use it to reduce negotiation time, ensure regulatory compliance, and create repeatable terms for recurring data exchanges between vendors, customers, analytics providers, or cloud platforms.

Why a template matters for consistent, auditable data sharing

Using a template reduces drafting errors, standardizes risk allocation, and speeds vendor onboarding while making compliance checks repeatable.

Why a template matters for consistent, auditable data sharing

Typical users and when each party completes the template

Data Services Agreements are used by internal legal, procurement, IT/security teams, and external vendors.

  • Legal and Contracts Teams review terms, redline clauses, and approve final language before signature.
  • IT and Security validate technical controls, data classifications, and breach-notification timelines during negotiation.
  • Procurement or Vendor Management manage pricing schedules, service levels, and renewal terms for operational use.

Choosing the right signatory and approver streamlines execution and reduces rework during audits.

Core sections every professional Data Services Agreement Template should include

A complete template groups obligations into clear sections so reviewers can locate responsibilities and technical requirements quickly.

Scope of Access

Defines which data types, datasets, and systems are covered, limits permitted processing, and sets allowed secondary uses.

Security Controls

Specifies encryption, access controls, incident response, vulnerability management, and third-party subcontractor requirements.

Data Privacy

Addresses personal data handling, lawful basis, data subject requests, international transfers, and obligations under HIPAA or state privacy laws.

Retention & Deletion

Sets retention periods, secure deletion methods, and obligations to return or destroy copies at termination.

Liability & Indemnity

Allocates risk for breaches, unauthorized use, and third-party claims; often includes caps and carve-outs.

Audit & Compliance

Permits audits or certifications, defines frequency, scope, and required evidence such as SOC 2 reports or penetration-test results.

Security and compliance elements to include

Encryption: TLS 1.2/1.3 in transit
Data at rest: AES-256 encrypted
Certifications: SOC 2 Type II
HIPAA: BAA required
Audit trail: Immutable logs
Access controls: Role-based access

Step-by-step: completing the Data Services Agreement Template

Follow these steps in order to reduce negotiation cycles and avoid compliance gaps.

  • 01
    Prepare draft: Populate parties, scope, and effective date.
  • 02
    Security review: IT validates controls and data handling.
  • 03
    Legal review: Contracts team confirms liability and audit rights.
  • 04
    Execution: Authorized signers sign and record the agreement.

Where to send, file, or submit the signed agreement

Identify filing locations and distribution recipients before signing to ensure records and operational teams have access.

  • Central repository: Store executed PDF in contract management system for discoverability.
  • Security team: Provide copy to security for onboarding and checklist validation.
  • Procurement: Notify procurement to link the contract to purchase orders.
  • Finance: Send executed agreement for invoicing setup and payment terms.

Configuring an online signing workflow for this template

Set up fields, required authentication, and routing so each signer receives only relevant pages and obligations.

Field Configuration
Signature Block Require signer name, title, date
Authentication Email plus SMS code for external vendors
Conditional Fields Show SOW fields only if 'Include SOW' checked
Audit Trail Enable IP, timestamp, and action logging

Technical needs and supported formats

Ensure your eSignature platform supports required formats, integrations, and authentication options before sending.

  • File Formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Auth Options: SMS code, KBA available

Time-sensitive dates and typical processing expectations

Track key deadlines for delivery, renewal, tax reporting, and any regulatory notice periods tied to the agreement.

W-9 delivery:

No set deadline; provide payer request upon onboarding.

1099-NEC:

Recipient and IRS due Jan 31 each year.

1099-MISC paper to IRS:

Paper filing due Feb 28; electronic due Mar 31.

Tax return deadline:

Form 1040 due April 15 (extensions available).

Contract renewal notice:

Follow the agreement's notice window, commonly 30–90 days.

Common mistakes to avoid when preparing the template

  • Leaving data scope vague, which can permit unintended secondary uses and disputes over permitted processing.
  • Failing to match signer names to legal entity names, causing problems with tax forms and enforcement.
  • Omitting retention and deletion mechanics, which creates regulatory risk under HIPAA, IRS, or state privacy laws.
  • Not specifying audit rights or frequency, which limits ability to verify subcontractor compliance and controls.

Short-term risks and potential penalties for errors

Incorrect 1099: $60 per form for 30 days late
Serious 1099 late: $130 per form after 30 days
Intentional disregard: $660+ per form
I-9 paperwork: $281–$2,789 per violation
HIPAA breach: Civil penalties vary, plus remediation costs
Contractual breach: Indemnity and litigation exposure

eSignature vendor pricing and feature snapshot relevant to this template

Compare starting prices and feature availability for common eSignature vendors; signNow is listed first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently asked questions about using the Data Services Agreement Template

Answers to common questions about validity, signing, privacy, and distribution to help you finalize the agreement correctly.


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