1.Definitions:
In this Agreement, the following words or expressions have
the following meanings:
1.1 "Agreement" means the terms and conditions
herein and all instruments supplemental hereto or in amendment
or confirmation hereof, and includes the Developer's Proposal;
1.2 "Client" means the signatory to the attached
Developer's Proposal;
1.3 "Developer" means The Newland Group Limited;
1.4 "Developer's Proposal" means any written
proposal to design, develop, and maintain a web site provided
by the Developer to the Client;
1.5 "Effective Date" means the date the Developer's
Proposal is signed by the Client;
1.6 "Services" means, collectively, the web site
design, development, programming and other consulting services
provided by the Developer to create the Work Product, as
well as any maintenance and hosting services provided by
the Developer, or any other services provided to the Client
by the Developer; and
1.7 "Work Product" means all HTML and/or Java
files, graphic files, animation files, data files, technology,
scripting and programming (in object code form), all documentation,
and each and every deliverable developed by the Developer
in the course of its performance under this Agreement, and
any other items necessary for the operation of the Client's
web site developed by the Developer, and specifically does
not include third party operating system software, or third
party networking software, web browsers, hardware, programming,
and content material ("Third Party Products").
2. Agreement: These terms and conditions
govern the provision of Services by the Developer. The Client
shall be deemed to have full knowledge of the terms and conditions
herein and such terms and conditions shall be binding upon
the Client upon acceptance of the Developer's Proposal by
the Client.
3. Client Obligations
3.1 Cooperation: The Client shall cooperate
with and assist the Developer by providing to the Developer
such information and such access to the Client's personnel,
facilities, equipment, databases, software and other resources,
as the Developer may reasonably request. All such information
and access will be considered the "Client Materials",
the timely, complete, and accurate performance of which
is a condition precedent to the Developer meeting its delivery
dates described in the Developer’s Proposal.
3.2 Waivers / Licences: If the Work Product
is to include audio, video, or images of real people, the
Client shall obtain waivers or releases from all persons
who appear therein. If the Work Product is to include musical
works, the Client shall obtain the appropriate licences
or assignments from the proper person or persons, including,
without limitation, one or more of the recording company,
the writer, the composer, the performers, and the applicable
copyright collective.
3.3 Change Orders: The Work Product shall
be delivered to the Client in phases, as set out in the
Developer's Proposal. Upon delivery of each phase of the
Work Product, the Client shall review the delivered Work
Product and notify the Developer in writing within one week
of delivery of any changes it requires to the Work Product.
Change requests that do not substantially affect the nature
of the Work Product, their performance or functionality,
and that do not cumulatively extend the due date of any
phase of the Work Product by more than five days or cumulatively
increase the dollar amount of the Agreement by more than
five per cent (5%) may be requested by the Client and accepted
by the Developer. The Developer may, at its sole discretion,
accept any change requests that reduce the cost of performance,
provided that an adjustment in compensation is made for
the out-of-pocket costs of any performance or preparation
already undertaken. The Developer further may, at its sole
discretion, accept any change requests that increase the
cost or magnitude of performance, provided that the changes
are reasonable in scope and a commensurate increase in compensation
is fixed. The Developer has the right to reject any change
request and terminate this Agreement as per the terms of
Section Five.
3.4 Final Acceptance: Following delivery
of the last phase of the Work Product, the Client shall
test the Work Product to determine whether it contains the
functionality and other objective requirements described
in the Developer's Proposal (the "Acceptance Criteria").
This acceptance test shall run for thirty (30) days after
final delivery of the Work Product (the "Testing Period").
During the Testing Period, the Client shall either: (a)
notify the Developer in writing of its acceptance of the
Work Product; or (b) provide the Developer with written
notice of any defects which cause the Acceptance Criteria
not to be met. The Developer shall use best efforts to cure
any defects described in such written notification and the
Client will have an additional thirty (30) days to retest
the Work Product to determine whether the Developer has
cured the defects listed in the Client's notice. If such
defects are not cured within ninety (90) days of receipt
by the Developer of the initial notice of defects, then
either party may terminate this Agreement subject to the
provisions of Section Five hereof. For clarity's sake, the
payment terms set out in subsection 5.3 shall apply to termination
of this Agreement under this section. The Work Product will
be deemed to have been accepted if no written notice of
either acceptance or of defects is provided to the Developer
within thirty (30) days after delivery of the Work Product.
4. Payment
4.1 Fees: The fees for the Developer's
Services are as described in the Developer's Proposal.
4.2 Expenses: In addition to the fees
described in the Developer's Proposal, the Client shall
also reimburse the Developer for all reasonable travel and
living expenses incurred by the Developer and the Developer's
personnel in the course of performing the Services hereunder.
4.3 Out of Scope Services and Lost Time:
If the Developer's Proposal indicates a fixed contract price,
then such contract price is subject to additional fees due
to: (a) the performance of services beyond those described
in the Developer's Proposal; or (b) delays or additional
costs incurred by the Developer as a result of the Client's
failure to perform the Client's obligations described in
Section Three of this Agreement (collectively, the "Out
of Scope Services"). All Out of Scope Services shall
be chargeable to the Client on a time and materials basis
at the Developer's rate for such services in effect from
time to time.
4.4 Payment terms: The Developer will
invoice the Client in accordance with the payment schedule
specified in the Developer's Proposal. The Developer shall
separately invoice the Client monthly for any Out of Scope
Services. Unless otherwise provided for, all invoices shall
be due and payable upon receipt and shall thereafter accrue
interest, until paid, at the rate of one per cent per month
above the prime lending rate of the Royal Bank of Canada
to its most creditworthy customer. All NSF cheques are subject
to a $75 administration fee. In addition to the rights provided
under Section Five hereof, in the event any amounts due
hereunder remain unpaid forty (40) days after the invoice
date, the Developer shall have the right to: (a) withhold
delivery of the Work Product, and/or (b) suspend the operation
of the Client's web site until such time as all outstanding
amounts have been paid. In the event the Developer exercises
its rights under this section, the Client shall remain liable
for all fees or expenses incurred in relation to any Hosting
Services (as defined below) continued to be provided by
the Developer.
5. Term and Termination
5.1 Term: The term of this Agreement shall
commence on the Effective Date and shall continue until
all obligations under this Agreement have been properly
completed unless terminated earlier as provided herein.
5.2 Termination: This Agreement may be
terminated by either party without cause on thirty (30)
days prior written notice to the other party, provided all
amounts due hereunder are paid by the Client to the Developer
prior to the termination date. Either party may also terminate
this Agreement upon written notice to the other party for
such other party's failure to comply with any term or condition
of this Agreement, where such failure is not cured within
ten (10) days after receipt of notice. Upon termination
of this Agreement for non-payment of any invoice, the Developer
shall not be obligated to deliver any work in progress for
which payment is not received. A transfer of the domain
name by the Client from the Developer's web server to another
Internet service provider shall not constitute termination
of this Agreement.
5.3 Payment: In the event of any termination
of this Agreement, the Client is responsible for all obligations
arising from Services delivered prior to the termination
date, including: (a) payment of all fees and expenses incurred
on a time and materials basis up to the termination date;
and (b) payment of the pro rata portion of the contract
price, with percentage of completion to be determined by
dividing the actual number of days worked by the number
of days estimated to create the Work Product (on the basis
of the most recent estimate provided by the Developer to
the Client).
5.4 Return of Materials: Subject to the
provisions of Sections Six and Seven hereof, upon any termination
of this Agreement, each party will return to the other all
materials embodying or disclosing the Confidential Information
(as defined below) of such other party. The Client will
promptly return to the Developer all Developer Materials
(as defined below) and the Work Product delivered to or
in possession of the Client for which payment has not been
received and the Client's rights to use such Developer Materials
and Work Product will terminate.
5.5 Effect of Termination: Sections Four
through Eleven shall survive any termination or expiration
of this Agreement.
6. Confidential Information: From time to
time the parties may provide their own confidential business
and technical information to each other in connection with
the Services to be performed by the Developer hereunder ("Confidential
Information"). Such information together with the Developer
Materials and the preparation and specifications of the Work
Product shall in all instances be treated as confidential,
unless and until disclosed publicly by either party. Each
party shall use its best efforts to prohibit any use or disclosure
of the other party's Confidential Information, except as necessary
to perform work hereunder. The Developer shall treat this
project as confidential in accordance with the foregoing.
However, after the Client has finally approved the Work Product,
the Developer may list the Client as a client of the Developer
and may include a link to the Client's web site on the Developer's
web site.
7. Ownership
7.1 Developer Materials. In connection
with the provision of Services hereunder, the Developer
may provide the Client with certain materials and information
proprietary to the Developer and provided or used by the
Developer, including, but not limited to, algorithms, methods,
forms, graphics, music, photos, film clips, software in
code or object form developed outside the scope of this
Agreement, and other content provided by the Developer (collectively,
the "Developer Materials"). The Client acknowledges
that all right, title and interest in and to all Developer
Materials is and remains the exclusive property of the Developer
or its suppliers. Notwithstanding the foregoing and subject
to the Client's payment of all fees, the Developer hereby
grants to the Client a perpetual, world-wide, royalty-free,
non-exclusive, non-transferable licence to use and reproduce
the Developer Materials, solely for the internal business
purposes of the Client. Such purposes shall not include
the sublicensing of the Developer Materials separately or
independently of the Work Product. Except as expressly authorized
in this Agreement, the Client will not copy, modify, distribute
or transfer (by any means), display, sublicense, rent, reverse
engineer, decompile or disassemble the Developer Materials.
Notwithstanding any rights that the Developer may grant
to utilize the Work Product, the Client agrees that the
Developer retains the right to re-use, distribute and license
to any of its current and future clients any of its Developer
Materials at any time and without any limitation, whether
or not used by the Developer in the performance of the Services.
Notwithstanding the foregoing, the parties are free to negotiate
the transfer of the Developer's right, title, and interest
in any of the Developer Materials to the Client. The terms
and conditions attaching to any such transfer may be set
out in the Developer's Proposal, but in all cases must be
in writing and shall form part of this Agreement. For greater
certainty, any content developed or provided by the Developer
within the scope of this Agreement specifically for the
Client shall form part of the Work Product and will be owned
exclusively by the Client as per section 7.3.
7.2 Client Materials: The parties acknowledge
and agree that all right, title and interest in and to all
Client Materials will be owned exclusively by the Client.
Notwithstanding the foregoing, the Client hereby grants
to the Developer a perpetual, worldwide, royalty-free, non-exclusive
licence to use, modify, reproduce and create derivative
works of the Client Materials solely for the use in connection
with the Services being provided hereunder.
7.3 Ownership of Work Product: Except
as provided in subsections 7.1 and 7.2, the Client will
own exclusively all right, title, and interest in and to
the Work Product, which shall be considered a work created
by the Developer for the Client. The Developer hereby assigns
and transfers to the Client the Work Product and will execute
such further documents provided by the Client to vest in
the Client such ownership rights to the Work Product. The
foregoing provisions will apply to all work in progress
at the time of termination of this Agreement, subject to
the payment of fees.
7.4 Third Party Materials. Nothing herein
shall cause or imply any sale, licence, or other transfer
of proprietary rights of or in any Third Party Products
from one party to this Agreement to the other party.
8. Indemnification: If either party (the
"Indemnitee") promptly notifies the other (the "Indemnitor")
in writing of a claim against the Indemnitee that any of the
Developer Materials or Client Materials or Work Product infringes
a presently existing proprietary right of a third party enforceable
in Canada or in the United States, and if the Indemnitee specifies
in such notice that the claim is based to any extent upon
an alleged infringement enforceable in Canada or in the United
States by any portion of the Indemnitor's Materials (the Developer
Materials or the Client Materials, as the case maybe), the
Indemnitor, with respect to and to the extent of the portion
of the claim pertaining to the Indemnitor's Materials, shall
indemnify and defend such claim at its expense and pay any
costs or damages (including reasonable solicitors' fees) that
may be incurred or finally awarded against the Indemnitee.
Subject to subsection 11.4 hereof, THIS SECTION SETS FORTH
THE COMPLETE LIABILITY OF THE PARTIES WITH RESPECT TO INFRINGEMENT
OF INTELLECTUAL PROPERTY RIGHTS. To the extent of the portion
of the claim pertaining to its own materials, the Indemnitor
under any of the indemnities set forth herein shall have sole
control of the defence of any such claim and all negotiations
for settlement. The Indemnitor shall not be obligated to indemnify
the Indemnitee under any settlement made without the Indemnitor's
consent or in the event the Indemnitee fails to cooperate
fully (at the Indemnitor's expense) in the defence of any
such claim.
9. Warranties
9.l Developer warranties: The Developer
represents and warrants that: (a) it will use best efforts
to ensure that the Work Product will substantially conform
to the Acceptance Criteria and be of good workmanship and
free from defects for a period of thirty (30) days after
the completion of the Testing Period (provided the Client
makes no changes to the Work Product, the server, the hardware,
or any technology related to any of them); (b) it has all
rights necessary for the production, distribution, exhibition
and exploitation of the Developer Materials as part of the
Work Product consistent with the licence granted in this
Agreement; (c) there is no outstanding contract, commitment
or agreement to which the Developer is a party, or legal
impediment of any kind known to the Developer which conflicts
with this Agreement or might limit, restrict or impair the
rights granted to hereunder; and (d) the Work Product will
be fit for the particular purpose declared by the Client
as set out in the Developer's Proposal.
9.2 Client warranties: The Client represents
and warrants that: (a) the Client has all rights necessary
for the production, distribution, exhibition and exploitation
of the Client Materials as part of the Work Product consistent
with the licence granted in this Agreement; and (b) there
is no outstanding contract, commitment or agreement to which
the Client is a party, or legal impediment of any kind known
to the Client which conflicts with this Agreement or might
limit, restrict or impair the rights granted hereunder.
9.3 Disclaimer. THE FOREGOING WARRANTIES
BY EACH PARTY ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS
OR IMPLIED, WITH RESPECT TO THIS AGREEMENT, INCLUDING BUT
NOT LIMITED TO IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE. NEITHER PARTY SHALL
HAVE ANY LIABILITY WHATSOEVER FOR ANY INDIRECT, CONSEQUENTIAL,
EXEMPLARY, INCIDENTAL, OR PUNITIVE DAMAGES, INCLUDING LOST
PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES.
10. Limitation of Liability: THE DEVELOPER'S
LIABILITY TO THE CLIENT FOR ANY REASON AND UPON ANY CAUSE
OF ACTION, WHETHER SOUNDING IN TORT, CONTRACT, OR ANY OTHER
LEGAL THEORY, SHALL AT ALL TIMES AND IN THE AGGREGATE BE LIMITED
TO THE AMOUNT ACTUALLY PAID BY THE CLIENT TO THE DEVELOPER
DURING THE THREE FULL CALENDAR MONTHS IMMEDIATELY PRECEDING
THE MONTH IN WHICH THE EVENT UPON WHICH LIABILITY IS PREDICATED
FOR SERVICES PROVIDED BY THE DEVELOPER HEREUNDER, EXCLUSIVE
OF ANY EXPENSES REIMBURSED PURSUANT TO THIS AGREEMENT. NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED OR IMPLIED HEREIN, THE
DEVELOPER SHALL HAVE NO LIABILITY FOR ANY DAMAGES WHATSOEVER
RELATING TO ANY THIRD PARTY PRODUCTS OR ANY GOODS OR SERVICES
NOT DEVELOPED OR PROVIDED BY THE DEVELOPER.
11. Server Hosting
11.1 Services: The Developer agrees, at
the Client's option and upon payment of the fees set out
in the Developer's Proposal, to maintain the Client's web
site on the Developer's web server on a month to month basis,
to make maintenance modifications to the Client's web site
from time to time in accordance with the Client's directions,
and to provide any other maintenance or hosting services
as set out in the Developer's Proposal (the "Hosting
Services"). As part of the Hosting Services provided
hereunder, the Developer will provide a single and unique
Universal Resource Locator (URL) address for use by the
Client. At the Client's request, the Developer will assign
a unique domain name to its server provided that the name
is legally registered to and under the control of the Client.
Upon request of the Client, the Developer may pay any and
all domain registration fees on behalf of the Client, which
fees shall be invoiced to the Client upon registration along
with the Developer's processing fee in effect from time
to time.
11.2 Content: The Client assumes full
responsibility for all content posted to the Developer's
server on the Client's behalf. The transmission, creation,
or display of any materials in violation of federal, provincial,
or local laws and regulations is strictly prohibited and
is grounds for the immediate termination of this Agreement.
11.3 Limitations/Disclaimers of Liability:
The following are in addition to any other limitations or
disclaimers of liability provided for in this Agreement:
(a) The Developer makes no guarantees on the security of
its network provider or the data stored within the network;
(b) The Developer does not represent or warrant to the Client
that the Client will receive continual and uninterrupted
Hosting Services during the term of this Agreement; and
(c) In no event shall the Developer be liable for any loss
of data or other damages suffered by the Client or the Client's
users, including, but not limited to, loss of data resulting
from delays, non-deliveries, mis-deliveries, service interruptions
or damage to equipment caused by the Developer's own negligence
or the negligence of its agents, servants, employees, third
parties, or Client errors over which the Developer has no
control.
11.4 Indemnity: Notwithstanding Section
Eight hereof, the Client agrees to defend, indemnify and
hold harmless the Developer, its officers, shareholders,
agents, employees, other clients, and service providers
from and against any and all liability, claim, damage, loss,
or expense arising out of the Hosting Services provided
by the Developer to the Client under this Agreement, including,
without limitation, claims made by third parties (including
clients of the Client) related to any false advertising
claims, liability claims for products or services sold by
the Client, claims for patent, copyright, or trademark infringement,
claims due to disruption or malfunction of Hosting Services
provided hereunder, or for any content submitted by the
Client for publication by the Developer.
12. Non-Solicitation: The Client agrees
that except as may otherwise hereafter be agreed in writing,
the Client will not directly or indirectly, individually,
or together with, or through any other person, firm, corporation,
or entity: (a) during and for one year after the term of this
Agreement, in any manner, approach, counsel, or attempt to
induce any person who is then in the employ of or an independent
contractor engaged to the Developer, to leave the Developer's
employ or engagement, or employ, engage or attempt to employ
or engage any such person. The Client agrees that for each
individual it hires in violation of this section, the Client
will pay the Developer damages equal to one hundred per cent
(100%) of that individual's annual starting salary at the
new position.
13. General
13.1. Force majeure: If either party is
affected by any circumstances beyond the reasonable control
of that party (including, without limitation, any strike,
lock-out or other form of industrial action, but not including
the inability of a party to obtain financing or other financial
support) ("Force Majeure") it shall forthwith
notify the other party of the nature and extent thereof.
Neither party shall be deemed to be in breach of this Agreement,
or otherwise be liable to the other, by reason of any delay
in performance, or non-performance, of any of its obligations
hereunder to the extent that such delay or non-performance
is due to any Force Majeure of which it has notified the
other party; and the time for performance of that obligation
shall be extended accordingly. If the Force Majeure in question
prevails for a continuous period in excess of ten (10) days,
the parties shall enter into bona fide discussions with
a view to alleviating its effects, or to agreeing upon such
alternative arrangements as may be fair and reasonable.
If no agreement is reached between the parties, either party
is free to terminate the Agreement as per the terms of Section
Five hereof.
13.2. Currency: Unless otherwise provided
for, all payments made pursuant to this Agreement shall
be in Canadian dollar funds.
13.3. Governing Law: The validity and
interpretation of this Agreement shall be governed by the
laws and the jurisdiction of the courts of the Province
of Ontario.
13.4. Severability: If any provision of
this Agreement is invalid, illegal or incapable of being
enforced by reason of any rule of law or public policy,
such provision shall be severed and all other provisions
of this Agreement shall, nevertheless, remain in full force
and effect. No provision of this Agreement shall be deemed
dependant upon any other provision of this Agreement unless
so expressed herein.
13.5. Independent Contractors: The parties
hereto are independent contractors. Nothing in this Agreement
will be deemed to create any form of partnership, principal-agent
relationship, employer-employee relationship, or joint venture
between the parties hereto.
13.6. Waiver: Neither party will be deemed
to have waived any provision hereof unless such waiver is
in writing and executed by a duly authorized officer of
the waiving party. No waiver by either party of any provision
hereof will constitute a waiver of such provision on any
other occasion.
13.7. Entire Agreement: This Agreement
constitutes the entire agreement between the parties with
respect to the subject matter hereof. No change, alteration,
modification, or addition to this Agreement shall be effective
unless in writing and properly executed by the parties hereto.
Subject to any restrictions on assignment herein, this Agreement
shall ensure to the benefit of and be binding upon the parties
and their respective heirs, successors, permitted assigns
and legal representatives.
13.8. Notices: Any notice required to
be given hereunder shall be deemed to be effective, if in
writing and delivered personally or sent by prepaid registered
mail or courier service, or by facsimile or other means
of electronic communication (confirmed on the same or following
day by prepaid mail), as hereinafter provided. Notice shall
be sent to address, facsimile or email address of the Client
or Developer set out in the Developer’s Proposal.
Any notice so given shall be deemed conclusively to have
been given and received when so personally delivered or
sent by facsimile or other electronic communication or on
the second day following the sending thereof by private
courier or mail. Any party hereto or others mentioned above
may change any particulars of its address for notice by
notice to the others in the manner aforesaid.
13.9. Headings and subsections: Section
headings are provided for convenience of reference and do
not constitute part of this Agreement. Any references to
a particular section of this Agreement shall be deemed to
include reference to any and all subsections thereof.
13.10. Counterparts: This Agreement may
be executed in one or more counterparts, each of which shall
be deemed an original and all of which shall be taken together
and deemed to be one instrument.
13.11. Assignment: Neither party may assign
or subcontract its rights or obligations (except to subsidiaries
or affiliates) without the prior written consent of the
other, which consent will not be unreasonably withheld.
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