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TABLE OF EXHIBITS
TOAST POS TERMS AND CONDITIONS
(FOR USE BY MARRIOTT PROPERTIES IN THE US AND CANADA ONLY)
Toast, Inc. (“Provider”) has entered into a Master Software as a Service Agreement dated May 16, 2023, with Marriott International Administrative Services, Inc. (“Marriott”) (“MSA”), pursuant to which Toast is approved to provide Property Owners with the right to access and use the Toast point of sale system (“POS”), Hardware and related services (collectively referred to as “Services”). Property’s access to and use of the POS is governed by the Order Form and the following terms and conditions, including any Exhibits or Appendices attached hereto (collectively the “Property Agreement”). For the purposes of this Property Agreement, the owner, operator, franchisee, or other entity authorized to act on behalf of the property (“Property Owner”) is identified as Property.
This property agreement is entered into by and between Property Owner and Provider as of the date that Property executed this property agreement (“Effective Date”).
By Provider. Provider will indemnify, defend and hold harmless Property Owners and their respective officers, directors, employees, agents, successors and assigns (collectively, the “Property Indemnitees”) from and against any Losses suffered, incurred or sustained by any Property Indemnitee or to which any Property Indemnitee becomes subject, resulting from, arising out of, or relating to, any actual or threatened third party Claims relating to: (a) injury or death of any person (including employees of Provider, Property’s employees or contractors or customer of Property; or (b) the loss or damage to any tangible property (including tangible property of the employees of Provider, Property employees or customers of Property), in each case resulting from negligent acts of omissions (including breach of contract) of Provider; or that the Provider Provided Resources infringe or misappropriate the intellectual property or other proprietary rights of any third party, except to the extent such infringement is a result of: (1) use of the Provider Provided Resources by Property in contravention of the applicable Documentation or license granted to Property under Section 9; (2) any material modifications made by Property not intended or expressly authorized by Provider; (3) Provider complying with written instructions or designs required or provided by Property where such compliance necessarily would give rise to such infringement but only (a) if there is no non-infringing alternative to meet Property’s written instructions or designs, and (b) such instructions and designs are not of Provider’s origin, design or selection; or (4) combination of the Provider Provided Resources by Property with products or systems other than those provided by, or authorized by, Provider but only if such infringement would have not occurred absent such combination and such combination was not reasonably required to use the Provider Provided Resources for their intended purpose.
Indemnification Procedures. With respect to any third-party Claim subject to indemnification, promptly after receipt by any entity entitled to indemnification under this Section of notice of the assertion or the commencement of any Claim by a third party in respect of which the indemnitee will seek indemnification pursuant to this Section, the indemnitee will notify the indemnitor of such Claim in writing. No failure to so notify an indemnitor will relieve it of its obligations under this Property Agreement except to the extent that it can demonstrate damages attributable to such failure. Within fifteen (15) days following receipt of notice from the indemnitee relating to any Claim, but no later than ten (10) days before the date on which any response to a complaint or summons is due, the indemnitor will notify the indemnitee in writing if the indemnitor acknowledges its indemnification obligation and elects to assume control of the defense and settlement of that Claim (a “Notice of Election”). If the indemnitor delivers a Notice of Election relating to any Claim within the required notice period, the indemnitor will be entitled to have sole control over the defense and settlement of such Claim; provided, however, that (A) the indemnitee will be entitled to participate in the defense of such Claim and to employ counsel at its own expense to assist in the handling of such Claim and (B) the indemnitor will obtain the prior approval of the indemnitee before entering into any settlement of such Claim or ceasing to defend against such Claim. After the indemnitor has delivered a Notice of Election relating to any Claim in accordance with this Section, the indemnitor will not be liable to the indemnitee for any legal expenses incurred by the indemnitee in connection with the defense of that Claim. In addition, the indemnitor will not be required to indemnify the indemnitee for any amount paid or payable by the indemnitee in the settlement of any Claim for which the indemnitor has delivered a timely Notice of Election if such amount was agreed to without the consent of the indemnitor. If the indemnitor does not deliver a Notice of Election relating to a Claim, or otherwise fails to acknowledge its indemnification obligation or to assume the defense of a Claim, within the required notice period, the indemnitee has the right to defend the Claim in such manner as it may deem appropriate, at the cost and expense of the indemnitor, including payment of any judgment or award and the costs of settlement or compromise of the Claim. The indemnitor will promptly reimburse the indemnitee for all such costs and expenses, including payment of any judgment or award and the costs of settlement or compromise of the Claim.
LIABILITY
Neither Party shall be liable to the other for special, indirect, incidental, consequential, exemplary or punitive damages of the other or for any form of damages (even if advised of the possibility thereof) other than direct damages arising out of, or in connection with, this Property Agreement or the subject matter hereof.
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW AND RULES, EITHER PARTY’S AGGREGATE LIABILITY FOR ALL CLAIMS UNDER THIS AGREEMENT SHALL BE LIMITED TO THE FEES PAID BY PROPERTY OWNER TO PROVIDER IN THE TWELVE MONTH PERIOD PRECEDING THE CLAIM.
The limitations set forth in Section 17.2 above will not apply with respect to: (A) Losses occasioned by the fraud, willful misconduct or gross negligence of a party; (B) Claims as finally adjudicated by court judgment or resolved pursuant to a settlement in accordance with Section 16.3 that are the subject of indemnification pursuant to Section 16, which for the avoidance of doubt, may include damages for lost profits, punitive and enhanced damages. Property Owner cannot assert damages on behalf of any other entity, including without limitation Marriott and Property Owner cannot assert damages against Provider that Marriott is also asserting on Property Owner's behalf.
Disclaimers. Provider disclaims all liability from the acts or omissions of any Integration Partner, including specifically FreedomPay. In the event of any breach or liability by an Integration Partner, Property Owner will pursue a claim directly against such Integration Partner and will not name Provider in such claim or suit.
DISPUTE RESOLUTION
Informal Dispute Resolution. Prior to the initiation of litigation, as described in this Section, the Parties will first attempt to resolve their dispute informally, as set forth in this Section. Either Party may initiate the informal dispute resolution process set forth in this Section by giving notice of a dispute (“Notice of Dispute”) that includes a statement of the dispute. Within 10 business days of the delivery of the Notice of Dispute, Property Owner and Provider will meet (and will continue to meet as often as the Parties reasonably deem necessary) in order to gather from and furnish to the other all information with respect to the matter at issue which the Parties believe to be appropriate and germane in connection with its resolution and attempt in good faith to resolve such dispute. If, within forty-five (45) business days of the delivery of the Notice of Dispute, such representatives are unable to resolve the dispute, either Party may escalate the dispute to the Provider Contract Executive. The Contract Executives will meet (and will continue to meet as often as the Parties reasonably deem necessary) in order to attempt in good faith to resolve such dispute. All negotiations and proceedings pursuant to this Section will be confidential and will be treated as compromise and settlement negotiations for purposes of applicable rules of evidence.
Formal Dispute Resolution. Litigation of a dispute may be commenced by either Party upon the earlier to occur of any of the following: (A) either Party concludes in good faith that amicable resolution through informal dispute resolution in accordance with Section 18.1 does not appear likely and (B) 45 business days have elapsed from the delivery of the Notice of Dispute (this period will be deemed to run notwithstanding any claim that the process described in Section 18.1 was not followed or completed); or (C) commencement of litigation is appropriate to avoid the expiration of an applicable limitations period or to preserve a superior position with respect to other creditors; or (D) a Party makes a good faith determination, including as provided in Section 18.1, that a breach of this Property Agreement by the other Party is such that a temporary restraining order or other injunctive relief is necessary.
Governing Law; Jurisdiction; Venue. This Property Agreement and performance under this Property Agreement will be governed by and construed in accordance with the laws of the state of New York without regard to its choice of law principles. The parties to this Property Agreement irrevocably and unconditionally consent to venue in the state of New York (and hereby waive any claims of forum non conveniens with respect to such venue) and to the exclusive jurisdiction of competent New York state courts in New York County or federal courts in New York for all litigation which may be brought with respect to the terms of, and the transactions and relationships contemplated by, this Property Agreement. The parties further consent to the jurisdiction of any state court located within a district that encompasses assets of a party against which a judgment has been rendered for the enforcement of such judgment against the assets of such party.
TERMINATION
Termination for Cause. In the event that: (A) either Party commits a material breach of an obligation under this Property Agreement that (1) is not capable of being cured within thirty (30) days, or (2) is capable of being cured within 30 days after notice of breach from non-breaching Party to breaching-Party, but is not cured in such 30-day period; or (B) breaching-Party commits numerous breaches of its duties or obligations which collectively constitute a material breach of an obligation under this Property Agreement, then non-breaching Party may, by giving notice to breaching-Party, terminate this Property Agreement, in whole or in part, as of a date specified in the notice of termination, without cost or penalty and without payment of any termination charges.
Termination Due to Termination or Expiration of the MSA. In the event of termination for cause, service level failures, change of control or expiration of the MSA, this Property Agreement will terminate upon thirty (30) day written notice to Provider. In no event will termination or expiration of a property agreement cause a termination of the MSA or any other property agreement.
Termination for Convenience. Property may terminate this Property Agreement, in whole or in part, for convenience and without cause at any time by giving Provider at least thirty (30) days’ prior notice designating the termination date, and paying any Charges for Services properly performed in accordance with this Property Agreement up until the effective date of termination, provided that Property will incur and pay an early termination fee equal to fifty percent (50%) of the remaining POS subscription fees (set forth in the Order Form) that would have otherwise been due for the remainder of the then-current Property Agreement Term (“Early Termination Fee”). If a purported termination for cause by Property is determined by a competent authority not to have been properly a termination for cause, then such termination by Property will be deemed to have been a termination for convenience.
Deflag Event. In the event (a) Property ceases to operate under a brand owned or licensed by Marriott or a Marriott Affiliate or (b) the brand under which Property is operating is changed to another brand owned or licensed by Marriott or a Marriott Affiliate but is not covered by the MSA (a “Deflag”), this Property Agreement will terminate effective on the date that Property will be Deflagged (the “Deflag Date”), without additional liability, except for Charges incurred under this Property Agreement through the effective date of termination and any Early Termination Fee.
Effect of Termination. In the event of expiration or termination of this Property Agreement, Provider will, within five (5) business days following the effective date of such expiration or termination (a) Provider will enable Property to retrieve from the POS a copy of the Property Data in Provider’s possession or control (if no format and/or medium is designated, in an industry standard format and medium), (b) return or destroy Confidential Information.
MISCELLANEOUS
Assignment. The Agreement will be binding on the Parties and their respective successors and assigns. Neither Party may, or will have the power to, assign this Property Agreement without the prior consent of the other, except that either Party may assign its rights and obligations under this Property Agreement without the approval of the other party, provided that the assignee or transferee assumes all obligations under this Property Agreement. Subject to the foregoing, any assignment by operation of Law, order of any court, or pursuant to any plan of merger, consolidation or liquidation, will be deemed an assignment for which prior consent is required and any assignment made without any such consent will be void and of no effect as between the Parties.
Entire Agreement; Amendment. The Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements, whether written or oral, with respect to the subject matter contained in this Property Agreement. No amendment of this Property Agreement will be valid unless in writing and signed by an authorized representative of each Party (as designated by each Party from time to time).
Notices. All legal notices, requests, demands and determinations under this Property Agreement (other than routine operational communications), will be in writing and will be deemed duly given (a) when delivered by hand, (b) one business day after being given to an express courier with a reliable system for tracking delivery, or (c) four (4) business days after the day of mailing, when mailed by U.S. mail, registered or certified mail, return receipt requested, postage prepaid, and addressed to the contact and address set forth on the cover page of this Property Agreement. A party may from time to time change its address or designee for notification purposes by giving the other party prior notice of the new address or designee and the date upon which the change will become effective.
Severability. In the event that any provision of this Property Agreement conflicts with the Law under which this Property Agreement is to be construed or if any such provision is held invalid by a competent authority, such provision will be deemed to be restated to reflect as nearly as possible the original intentions of the Parties in accordance with applicable Law. The remainder of this Property Agreement will remain in full force and effect.
Consents and Approval. Where agreement, approval, authorization, acceptance, consent, or similar action by either Party is required under this Property Agreement, such action will be in writing and, except where expressly provided as being in the discretion of a Party, will not be unreasonably delayed or withheld. An approval or consent given by a Party under this Property Agreement will not relieve the other Party from responsibility for complying with the requirements of this Property Agreement, nor will it be construed as a waiver of any rights under this Property Agreement, except as and to the extent otherwise expressly provided in such approval or consent.
Waiver of Default; Cumulative Remedies. A delay or omission by either Party to exercise any right or power under this Property Agreement will not be construed to be a waiver thereof. A waiver by either of the Parties of any of the covenants to be performed by the other Party or any breach thereof will not be construed to be a waiver of any succeeding breach thereof or of any other covenant specified herein. Except as otherwise expressly provided herein, all remedies provided for in this Property Agreement will be cumulative and in addition to and not in lieu of any other remedies available to either Party at law or in equity.
Survival. Any provision of this Property Agreement which contemplates performance or observance subsequent to termination or expiration of this Property Agreement will survive termination or expiration of this Property Agreement and continue in full force and effect.
Public Disclosures. Except as may be otherwise agreed by the Parties in writing, neither Party may use the name of the other Party or refer to it or any of its Affiliates, directly or indirectly, in any advertisement, promotion, news release, marketing materials, user lists, customer lists, websites, professional or trade publication, or for any other public purpose, without the prior approval of the other Party. The foregoing does not prevent announcements intended solely for internal distribution or disclosures to the extent required to meet legal or regulatory requirements beyond the reasonable control of the disclosing Party, which will be coordinated with and approved by the other Party prior to release.
Third Party Beneficiaries. The Agreement is entered into solely between, and may be enforced only by, Property Owner and Provider, and this Property Agreement will not be deemed to create any rights in, or obligations of a Party to, third parties, other than obligations owed to Property.
Miscellaneous. This Property Agreement may be executed in counterparts and exchanged by scanned copies or e-signature services (e.g., DocuSign or Adobe Sign), all of which taken together will constitute one single agreement between the Parties. This Property Agreement (including Order Form) is the parties’ entire agreement regarding its subject matter and supersedes any prior or contemporaneous agreements regarding its subject matter, including any “click thru” terms, vendor registration terms, or other agreement(s) employed by Provider that are required to be agreed to electronically prior to or subsequent to the Effective Date of this Property Agreement and shall be null and void.
DEFINITIONS
“Affiliate” means (1) an entity that, directly or indirectly, Controls, is Controlled by, or is under common Control with, a Party, and (2), in the case of Marriott, a partnership or joint venture in which Marriott or an entity under clause (1) is a partner or principal.
“Charges” has the meaning set forth in Section 11.
“Claims” shall mean a claim, action, suit or proceeding (whether civil, criminal, administrative, arbitral, investigative or otherwise).
“Control” means, with regard to any entity, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities or other ownership interests, by contract or otherwise; provided, however, that Control will be deemed to exist where any entity owns, directly or indirectly, more than 50 percent of the voting securities or other similar voting rights in, or ownership interests of, another entity.
“Customer” means Property’s customers or guests using the Services but not including Property Owner employees.
“Documentation” means, with respect to Software or technology provided by a party (including, with respect to Provider, the POS), (1) the user manuals, training materials, guides, product descriptions, technical manuals, user manuals, product specifications, supporting materials and other written materials (in print or electronic form, regardless of the medium in which they are stored or displayed) provided by the providing party that describe the function and use of such Software or technology and (2) any and all amendments, modifications and supplements to the foregoing. The Documentation for Software and technology provided by Provider includes the materials and descriptions identified or cross-referenced in Exhibit 2.
“Early Termination Fee” has the meaning set forth in Section 19.3.
“Integration Partner” means any partner that Provider has an integration with for Property Owner’s use (including but not limited to FreedomPay).
“Losses” means all losses, liabilities, damages and claims, and all related costs and expenses (including reasonable legal fees and disbursements and costs of investigation, litigation, settlement, judgment, interest and penalties.
“Personal Data” means any information received, collected, accessed or otherwise Processed under the Property Agreement that, directly or indirectly, identifies or can be used to identify an individual, that can be used to derive information specific to a particular Individual, or that otherwise relates to an identifiable individual.
“Process” means the collection, recording, organization, structuring, alteration, access, disclosure, copying, transfer, storage, retention, deletion, combination, restriction, adaptation, retrieval, consultation, destruction, disposal, sale, sharing or other use of Personal Data, whether by automated means or otherwise.
“Professional Services” means the installation, implementation, integration, customization, and other services described in the applicable Project and any other similar activities necessary to make the POS available to Marriott in accordance with the Agreement. The term “Professional Services” does not include Support Services.
“Property Data” means all information entered in the POS (including any software or equipment) by or on behalf of Property, including information relating to Property’s employees or contractors, and information derived from such information, including as stored in or processed through the POS (including any related Systems). Property Data includes any data collected from the Users that is Property Personal Data (e.g., depending on the circumstances of the individual case and applicable Law, “hits,” “clickstream data,” and the like). The Parties agree that Property Owner Data shall not include Provider Personal Data.
“Property Personal Data” means Personal Data collected by or on behalf of Property, including by Provider, that is Processed as part of the Services under this Agreement, which may include the Personal Data of employees of Property, Users and Property customers.
“Provider Personal Data” means Personal Data collected or Processed by the Provider where Provider maintains an independent right to Process such Personal Data whether based on a pre-existing relationship or direct interactions with the Individual.
“Property Owner Marks” means all proprietary indicia and designations of origin, trademarks, trade names, trade dress, service marks, service names, symbols, logos, and other distinct brand elements of Property Owner.
“Provider Provided Resources” means the Services, Deliverables, Provider IP (including the POS), Provider equipment, any derivative, enhancement, modification or improvement to any Property Owner IP performed by Provider or any other resources or items provided to Property by Provider.
“Support Services” means the support Services set forth in Exhibit 5.
“Third Party Provider” has the meaning set forth in Section 2.1.
“Toast Apps” means, collectively, mobile applications made available by Provider as part of the Services, for download by Property and/or Users that enable such Users to interact with, access and use the Services.
“User” means any individual who is designated by Property to receive or use the Services, including Property employees.