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MSA v2024.08.28 US.EN US Public Sector Page 5 of 19
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<br />7.2.2 For Cause. Either Party may terminate this Agreement, or any Service identified in an Order, if the other Party
<br />fails to perform any material obligation under this Agreement, and such Party is not able to cure the non-
<br />performance within thirty (30) days of written notice of such default with reasonably sufficient detail regarding the
<br />alleged breach, provided that UKG may immediately terminate (if necessary to prevent immediate and irreparable
<br />harm) or suspend Customer’s access to the Services without notice if Customer is in breach of the “Use
<br />Restrictions” or “Confidentiality” sections of this Agreement, or the Acceptable Use Policy to prevent further harm
<br />provided, however that in the event of a temporary suspension UKG will work with Customer to mitigate the breach
<br />and restore functionality. If the breach is not cured within the cure period, then UKG may terminate. Either Party
<br />may immediately terminate this Agreement and all Orders if the other Party has a receiver or similar party
<br />appointed for its property, becomes insolvent, acknowledges its insolvency in any manner, ceases to do business,
<br />makes an assignment for the benefit of its creditors, or files a petition in bankruptcy. Other than as expressly
<br />permitted in this Agreement, or an Order, SOW, or Services Description, neither Party may terminate this
<br />Agreement and each Party remains fully obligated to the terms and conditions herein.
<br />7.2.3 For Non-Appropriation of Funds. If Customer is a US Federal, State, or Local governmental entity that relies
<br />on funding which is allocated at the federal, state and/or local level to fund the Service in the Agreement, then, to
<br />the extent required by law, the following will apply: Customer may terminate the Service in the event of a reduction
<br />in appropriations to any fund(s) from which UKG is to be paid for Services ordered under this Agreement but not
<br />yet delivered. Customer will provide a ninety (90) day prior written notice in the event of such termination to UKG
<br />and Customer agrees to pay for the products delivered and the services performed by UKG prior to the effective
<br />date of such notice. In the event of such termination, Customer shall not be entitled to a refund of pre-paid
<br />Services, such as the support fees. Customer acknowledges that by executing an Order Form for the Services,
<br />Customer has received fiscal appropriations for the amounts due during the Initial or Renewal Term (as applicable)
<br />as indicated on such Order.
<br />7.3 Effects of Termination.The following terms apply if an Order is terminated for any reason:
<br />7.3.1 Fees.All fees will be paid by Customer for amounts owed through the effective date of termination, and, if the
<br />Order is terminated for UKG’s breach of the Agreement, any fees prepaid by Customer for the Service not rendered
<br />prior to the effective date of termination will be credited against Customer’s account, with any remaining amounts
<br />refunded to Customer within thirty (30) days of the effective date of termination.
<br />7.3.2 Cessation of Services. UKG will cease to provide the Services to Customer and Customer’s right to use and
<br />access the Subscription Services will end as of the effective date of termination. If Customer requires access to
<br />the Subscription Services after the effective date of termination or transition assistance, such access and
<br />assistance will be subject to mutual agreement and additional fees, under a separate Order or SOW, and will be
<br />subject to the terms and conditions of this Agreement.
<br />7.3.3 Deletion of Customer Data.UKG will delete Customer Data after Customer’s rights to access the Subscription
<br />Services and retrieve Customer Data have ended, unless otherwise provided under this Agreement, a Services
<br />Description, Order, SOW, or another document. UKG will delete Customer Data in a series of steps and in
<br />accordance with UKG’s standard business practices for destruction of Customer Data and system backups. UKG
<br />has no obligation to retain Customer Data and Customer Data may be permanently deleted as part of UKG’s data
<br />management program(s) or practice(s), and in accordance with Applicable Laws.
<br />7.3.4 Confidential Information.UKG and Customer will each return or destroy any Confidential Information of the other
<br />Party, with any retained Confidential Information remaining subject to this Agreement.
<br />7.3.5 Transition Services. Customer’s right to use the Service will end as of the effective date of termination. Provided
<br />Customer is not in breach of this Agreement, UKG will extend access to and use of the Services to Customer for
<br />up to six (6) months (the “Transition Period”) for the purpose of transitioning to a replacement system. Such access
<br />and use of the Services is subject to and governed by the terms and conditions of the terminated Agreement
<br />including, but not limited to, the Fees, Acknowledgements, Warranty, and Limitation of Liability sections (which
<br />terms and conditions shall survive during the Transition Period). In addition, if requested by Customer, UKG shall
<br />provide consulting services to Customer during the Transition Period for an orderly transition at the then current
<br />published rate for consulting services. Upon termination or expiration of the Transition Period, all rights and
<br />licenses granted hereunder shall immediately terminate and revert to UKG.
<br />8.Indemnification
<br />8.1 Claims Against Customer.UKG will defend Customer and Customer’s respective directors, officers, and employees,
<br />who are acting on behalf of Customer (“Customer Indemnified Parties”), from and against any and all third party Claims
<br />to the extent the Services or Documentation infringe or misappropriate any registered copyright or patent. UKG will
<br />REV: 01-16-26 MI
<br />ATTY/AGR.2026.009/UKG Kronos LLC (UKG Telestaff transition to Cloud) (Page 5 of 24)
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