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SoftwareDevelopmentAgreementThisSoftwareDevelopmentAgreementAgreementismadeandeffectivethisDatebyandbetween“Developer”andnBuyern.InconsiderationofthemutualpromisescontainedinthisAgreementthepartiesagreeasfollows:
1.DutiesandResponsibilities.DevelopershallserveasacontractorofBuyerdefinedbytheIRSasa1099ContractorandshalldesigndevelopandimplementapplicationssoftwareSoftware”accordingtothefunctionalspecificationsandrelatedinformationifanyattachedheretoasExhibitAandincorporatedhereinbythisreferenceSpecifications”andasmorefullysetforthinthisAgreement.DeveloperacknowledgesthatithasbeencontractedforthisspecifictaskandthatitshallreportallfindingsandmakeallrecommendationsdirectlytothemanagementofBuyer.TheSoftwareincludingallversionsineithersourcecodeorobjectcodeformshallbedeliveredtoBuyernotlaterthanDate.OwnershipofSoftware.DeveloperagreesthatthedevelopmentoftheSoftwareisnworkforhirewithinthemeaningoftheCopyrightActof1976asamendedfromtimetotimeandthattheSoftwareshallbethesolepropertyofBuyer.DeveloperherebyassignstoBuyerwithoutfurthercompensationallofitsrighttitleandinterestinandtotheSoftwareandanyandallrelatedpatentspatentapplicationscopyrightscopyrightapplicationstrademarksandtradenamesintheUnitedStatesandelsewhere.DeveloperwillkeepandmaintainadequateandcurrentwrittenrecordswithrespecttotheSoftwareintheformofnotessketchesdrawingsandasmayotherwisebespecifiedbyBuyerwhichrecordsshallbeavailabletoandremainthesolepropertyofBuyeratalltimes.AllversionsoftheSoftwareshallcontainBuyersconspicuousnoticeofcopyright.Developerwillassistcoding.Bothofthesetendenciesveryuncommoninmostestablishedconsumerproductindustriesleadtomisunderstandingsfinancialproblemsfortheparticipantsend-userunhappinessandsoonandsoon.WhetheryouaretheDeveloperortheBuyeryoucanhelpimprovethissituationinthisAgreementbynotputtingunduetimepressuresonprojectsdefininginoutlinesandblueprintswhattheproductshoulddoandprovidesufficienttimefbrQAtoresolveproblems.Astheysayincarpentry“Measuretwice;cutonce.
3.PrintatleasttwocopiesofthisAgreementbecauseespeciallyfbrtheBuyerthisdocumentrelatestoyourownershiprightstothesoftwareinquestion.Youshouldkeepacopyinyourcorporaterecordsaswellaswiththesoftwareworkedupon.Well-documentedownershiptrailsalmostalwaysbecomeamajorissueatsomepointinthesoftwarebusiness.Keepingagoodaudittrailwillsaveyourcorporationtimeandmoneyinthelongterm.TheDeveloperisadvisedtokeepcopiesformarketingpurposesinthefuture;whileyoumaynotbeableorwanttodisclosetheexactdocumentyoucangetaletterofcommendationifpossiblefromtheBuyerattheendoftheproject.Thiscanbeaveryhelpfulsalestoolwithpotentialbuyersinaturbulentmarketandwesaythatasabuyerourselves!BuyerinobtainingandenforcingpatentcopyrightandotherformsoflegalprotectionfortheSoftwareinanycountry.UponrequestDeveloperwillsignallapplicationsassignmentsinstrumentsandpapersandperformallactsnecessaryordesiredbyBuyertoassigntheSoftwarefullyandcompletelytoBuyerandtoenableBuyeritssuccessorsassignsandnomineestosecureandenjoythefullandexclusivebenefitsandadvantagesofthiswork.Compensation.BuyershallpayDeveloperasfollows:$downpaymentand$uponcompletion.SubjecttoBuyerspriorapprovalBuyerwillreimburseDeveloperforallreasonableout-of-pocketexpensesincludingbutnotlimitedtoairfarelodgingmealsandrentalofautomobilesincurredbyDeveloperduringthedevelopmentoftheSoftwareonbehalfofBuyerifanyoftheseactivitiesaredeemednecessary.IndependentContractor.DeveloperisactingasanindependentcontractorwithrespecttotheservicesprovidedtoBuyer.NeitherDevelopernortheemployeesoftheDeveloperperformingservicesforBuyerwillbeconsideredemployeesoragentsofBuyer.BuyerwillnotberesponsibleforDevelopersactsortheactsofDevelopersemployeeswhileperformingservicesunderthisAgreement.NothingcontainedinthisAgreementshallbeconstruedtoimplyajointventurebusinesspartnershiporprincipal-agentrelationshipbetweenthepartiesandneitherpartybyvirtueofthisAgreementshallhaveanyrightpowerorauthoritytoactorcreateanyobligationexpressorimpliedonbehalfoftheotherparty.DevelopmentStaff-Monitoring.Developerwillutilizeemployeesand/orcontractorscapableofdesigningandimplementingtheSoftwaretobedevelopedperthisAgreement.Allworkshallbeperformedinaprofessionalandworkmanlikemanner.Developershallarrangeforsuchemployeesand/orcontractorsifanytoexecuteanddeliveranydocumentorinstrumentreasonablyrequestedbyBuyertoreflectBuyersownershipoftheSoftwareorinconnectionwithanyapplicationforpatentorcopyright.BuyershallhavetherighttoreasonablyobserveandmonitorallaspectsoftheperformancebyDeveloperofitsobligationshereunderandDevelopershallusereasonableeffortstofacilitatesuchobservationandmonitoring.InformationfunctionsandoperationsofDevelopernotdirectlyrelatedtoitsobligationshereundershallnotbesubjecttoobservationandmonitoring.ChangeinSpecifications.BuyermayinitssolediscretionrequestthatchangesbemadetotheSpecificationsorotheraspectsoftheAgreementandtasksassociatedwiththisAgreement.IfBuyerrequestssuchachangeDeveloperwilluseitsbesteffortstoimplementtherequestedchangeatnoadditionalexpensetoBuyerandwithoutdelayingdeliveryoftheSoftware.IntheeventthattheproposedchangewillinthereasonableopinionofDeveloperrequireadelayindeliveryoftheSoftwareorwouldresultinadditionalexpensetoBuyerthenBuyerandDevelopershallconferandBuyershallinitsdiscretionelecteithertowithdrawitsproposedchangeorrequireDevelopertodelivertheSoftwarewiththeproposedchangeandsubjecttothedelayand/oradditionalexpense.Confidentiality.DeveloperacknowledgesthatallmaterialandinformationsuppliedbyBuyerwhichhasorwillcomeintoDeveloperspossessionorknowledgeofDeveloperinconnectionwithitsperformancehereunderistobeconsideredBuyefsconfidentialandproprietaryinformationtheConfidentialInformationn.BywayofillustrationbutnotasalimitationConfidentialInformationincludestheSoftwaretradesecretsprocessesdataknow-howprogramcodesdocumentationflowchartsalgorithmsmarketingplansforecastsunpublishedfinancialstatementsbudgetslicensespricescostsandemployeeandcustomerlists.DevelopersundertakingsandobligationsunderthisSectionwillnotapplyhowevertoanyConfidentialInformationwhich:iisorbecomesgenerallyknowntothepublicthroughnoactiononDeveloperspartiiisgenerallydisclosedtothirdpartiesbyBuyerwithoutrestrictiononsuchthirdpartiesoriiiisapprovedforreleasebywrittenauthorizationofBuyer.UponterminationofthisAgreementoratanyothertimeuponrequestDeveloperwillpromptlydelivertoBuyerallnotesmemorandanotebooksdrawingsrecordsreportsfilesdocumentedsourcecodesandotherdocumentsandallcopiesorreproductionsofsuchmaterialsinitspossessionorunderitscontrolwhetherpreparedbyDeveloperorotherswhichcontainConfidentialInformation.DeveloperacknowledgesthatConfidentialInformationisthesolepropertyofBuyer.DeveloperagreesthatdisclosureofsuchinformationtoorusebythirdpartieseitherduringorafterthisAgreementwillcauseBuyerirreparabledamage.DeveloperagreestousebesteffortstoholdConfidentialInformationinthestrictestconfidencenottomakeuseofitotherthanfortheperformanceofitsobligationshereundertoreleaseitonlytotheDevelopersemployeesorcontractorswithaneedtoknowsuchinformationandnottoreleaseordiscloseittoanyotherparty.DeveloperfurtheragreesnottoreleasesuchinformationtoanyemployeeorcontractorwhohasnotsignedawrittenagreementbetweenDeveloperandtheemployeeexpresslybindingtheemployeenottouseordisclosetheConfidentialInformationexceptasexpresslypermittedinthisAgreement.Buyershallbelistedasathird-partybeneficiaryofanysuchagreement.DeveloperwillnotifyBuyerinwritingofanycircumstanceswithinitsknowledgerelatingtoanyunauthorizedpossessionuseorknowledgeofsuchConfidentialInformation.AtanytimeuponrequesttheDeveloperwillreturnanysuchinformationwithinitspossessiontoBuyer.DeveloperacknowledgesthatBuyefspurposeinpursuingthedevelopmentoftheSoftwareistogainasignificantcompetitiveadvantageovercompetitorsoperatingwithoutsuchSoftwareandthatsuchadvantagewillbejeopardizedifsuchcompetitorslearnofBuyersnegotiationswithDeveloperortheperformancebyDeveloperofitsobligationshereunder.AccordinglyDeveloperagreestokeepsuchnegotiationsandperformanceofitsobligationshereunderstrictlyconfidentialandnottodiscloseanyinformationtoanythirdpartyorentitywithoutthepriorwrittenpermissionofBuyer.InnoeventshallDeveloperoranyofitsemployeesuseBuyerasareferenceinmarketingDevelopersservicestoanythirdpartyorentitywithoutBuyefspriorwrittenpermission.Training.DevelopershallprovideBuyeranditsemployeeswithtrainingconsultationswithrespecttotheuseoftheSoftwareasmayreasonablyberequestedbyBuyerfromtimetotimeforafteracceptanceatnoadditionalcoststoBuyerTrainingPeriod.DevelopershalldeliveradetailedusersmanualtoBuyeronorbeforecompletionofacceptancethatwillenableBuyersemployeeswhoareotherwiseunfamiliarwiththeSoftwaretobecomeadequatelyinformedaboutusingthesoftware.AlltrainingthatDeveloperisrequiredtoprovidehereundershallbeperformedatsuchlocationsandatsuchtimesasaremutuallyagreedtobythepartieshereto.UpontheexpirationoftheTrainingPeriodandfollowingBuyefsrequestDeveloperwillprovideanysupportservicesnecessarytoinsureBuyefscontinueduseoftheSoftware.SuchserviceswillbeperformedonatimeandmaterialbasisatDevelopersthencurrenthourlyratesforsuchservices.Warranties.DeveloperwarrantsthatforaperiodoffollowingacceptancetheSoftwarewilloperatesubstantiallyaccordingtotheSpecifications.IntheeventofanybreachofthewarrantyinthisSection
9.A.,inadditiontoanyotherremedytowhichBuyermaybeentitledDevelopershalltakeallactionnecessaryatitsexpensetocausetheSoftwaretooperateaccordingtothewarranty.DeveloperwarrantsthattheSoftwarewillnotinfringeuponanycopyrightpatenttradesecretorotherintellectualpropertyinterestofanythirdparty.DeveloperwillindemnifyandholdBuyerharmlessfromandagainstallsuchinfringementclaimslossessuitsanddamagesincludingbutnotlimitedtoattorneysfeesandcostsandshallpromptlyfollowinganybona-fideclaimofinfringementcorrecttheSoftwaresoasnottobeinfringingorsecureatitsownexpensetherightofBuyertousetheSoftwarewithoutinfringement.TermandTermination.ThisAgreementshallcommenceupontodaysdateandcontinueuntilalloftheobligationsofthepartieshavebeenperformedoruntilearlierterminatedasprovidedherein.DevelopersappointmentasconsultantpursuanttothisAgreementandthisAgreementshallterminateupontheoccurrenceofanyofthefollowingevents:iIntheeventeitherpartydefaultsinanymaterialobligationowedtotheotherpartypursuanttothisAgreementthenthisAgreementmaybeterminatedifthedefaultisnotcuredfollowingatleastfortyfive45dayswrittennoticetothedefaultingparty.iiEitherpartyisbankruptorinsolventorbankruptcyorinsolvencyproceedingsareinstitutedagainstapartyandtheproceedingisnotdismissedwithinfortyfive45daysaftercommencement.iiiDeveloperdiesorbecomesdisabled.Section2OwnershipofSoftwareandSection7ConfidentialityshallsurvivetheexpirationorterminationofthisAgreement.IntheeventofearlyterminationduetoDevelopersdefaultorthedeathordisabilityoftheindividualsidentifiedinsubsectioniiiaboveDeveloperagreestodelivertheSoftwarethencompleted.Developerinthatinstanceshallbepaidaproratashareforthework;iftheamountcannotbeagreedupontheBuyercanreturntheworkandtheothertermsofthiscontractgointoeffectasoutlinedinthissectionandothers.Notices.AnynoticerequiredbythisAgreementorgiveninconnectionwithitshallbeinwritingandshallbegiventotheappropriatepartybypersonaldeliveryorarecognizedovernightdeliveryservicesuchasFedEx.IftotheDeveloper:IftotheBuyer:NoWaiver.Thewaiverorfailureofeitherpartytoexerciseinanyrespectanyrightprovidedinthisagreementshallnotbedeemedawaiverofanyotherrightorremedytowhichthepartymaybeentitled.
13.EntiretyofAgreement.ThetermsandconditionssetforthhereinconstitutetheentireagreementbetweenthepartiesandsupersedeanycommunicationsorpreviousagreementswithrespecttothesubjectmatterofthisAgreement.TherearenowrittenororalunderstandingsdirectlyorindirectlyrelatedtothisAgreementthatarenotsetforthherein.NochangecanbemadetothisAgreementotherthaninwritingandsignedbybothparties.GoverningLaw.ThisAgreementshallbeconstruedandenforcedaccordingtothelawsoftheStateofandanydisputeunderthisAgreementmustbebroughtinthisvenueandnoother.HeadingsinthisAgreementTheheadingsinthisAgreementareforconvenienceonlyconfirmnorightsorobligationsineitherpartyanddonotalteranytermsofthisAgreement.Severability.IfanytermofthisAgreementisheldbyacourtofcompetentjurisdictiontobeinvalidorunenforceablethenthisAgreementincludingalloftheremainingtermswillremaininfullforceandeffectasifsuchinvalidorunenforceabletermhadneverbeenincluded.InWitnesswhereofthepartieshaveexecutedthisAgreementasofthedatefirstwrittenabove.DeveloperBuyerDateEXHIBITA:SpecificationsfortheSoftwareifanySoftwareDevelopmentAgreementReviewListThisreviewlistisprovidedtohelpyoucompletethisSoftwareDevelopmentAgreement.SoftwaredevelopmentisstillalargelyimmaturemarketfullofpitfallsandperilsforboththepublishertheBuyerinthiscaseandtheEnd-UsernotapplicableinthisAgreement.Nootherindustrytoourknowledgeforexamplewillfullyhasablebodiedandcompetentexpertsissuingbugsandvirusesjustforthepurepleasureofit.ThereforetheBuyerofsoftwareandsoftwaredevelopmentmustbeespeciallycarefulwhenenteringintocontractswithDevelopers.Developersontheothersideoftheequationoftenaredeeplysuspiciousofpublisherssoinasimilarmannerarewaryintheirdealingswiththem.Aswithallofourlegalformsandbusinessadviceourroleistoguideyouwithregardtothepracticalbusinessmattersandnotgivelegaladviceperse.Thereforeourbusinessadviceisthatnomatterwhichsideofthisequationyouareonbewareoftheseactivitiesandbescrupulousaboutyourconductinordertohavetherelationshipgosmoothlyinanindustrythatrunsanythingbutsmoothly.
1.BesurebothpartiessigntheAgreementpriortocommencingwork.Besureallmoniesareclear.WeadvisethatBuyersprovidesomedepositasagoodfaithgesturesincemostdevelopersneedthefundstooperateandlive.WealsosuggestthatBuyersbeawarethatanyrepairworkwhetheronahouseorasoftwareprogramcandiscoverunanticipatedproblems.Itisimportantforthelong-termsurvivalofthesoftwarethattheBuyerpermittheDevelopertorevealcandidlyanyflawsuncoveredinthesoftwaresoitmaybeaddressed.Punishingthebearerofbadtidingsisadistinctlyselfdestructiveactbymanypublishers.
2.TimepressureplaceduponDevelopersplusill-definedmissionshasledtomuchbadandbuggysoftwarebeingsoldandreleasedtomakeartificialdeadlines.FurthercompoundingthisproblemmostDevelopersrefusetooutlineblueprintandotherwisepreparetheiractivitiespriortocommencingactual。
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