Last Updated: June 4th, 2024
Effective Date: This agreement is effective upon the Client’s acceptance of a project proposal, payment of the first invoice, or use of the services provided by Sun Locke Media L.L.C. ("Developer"). By engaging Developer to provide web design, development, or hosting services, you ("Client") agree to the following terms and conditions:
These Website Design, Development, and Hosting Terms (“Website Terms”) govern your engagement with Sun Locke Media L.L.C. (“Developer,” “we,” or “us”) for the provision of web design and related services. By agreeing to our general
Terms and Conditions, submitting a project request, or executing a Statement of Work (SOW), you (“Client” or “you”) accept and are bound by these Website Terms.
1. Description of Services
Developer agrees to provide consulting, world wide web development, and related services (“Services”) specified in the Statement of Work attached hereto as Exhibit A, as amended from time to time by Supplemental Statements of Work. The Services shall be provided in accordance with the provisions of this Agreement and the applicable Statement of Work.
2. Payment for Services
2.1 Lump-Sum Payments.Unless otherwise agreed in writing by both Customer and Developer, all payments for the Services under this Agreement shall be made on a lump-sum basis. The total fees and charges for such Services shall be stated in the Fee Schedule attached hereto as Schedule A or as set forth in any applicable Statement of Work (“SOW”). The fees specified are all-inclusive for the Services, and shall not be increased during the term of this Agreement except upon the written agreement of both parties.
2.2 Alternative Payment Arrangements (If Mutually Agreed).In lieu of—or in addition to—the lump-sum payment structure described in Section 2.1, the Parties may adopt alternative payment terms only by executing this Amendment or a separate written Supplement or Statement of Work (“SOW”) signed by both Parties. The following options are available:
2.2.1 Milestone-Based Payments.
Definition of Milestones. The Parties shall agree on specific milestones (e.g., Project Stages, Deliverables, or acceptance events) in a signed Supplement or SOW. Each milestone shall describe:
The scope of work or Deliverable to be completed.
The criteria for acceptance (how the Deliverable will be deemed satisfactory).
The payment amount owed upon completion and acceptance of each milestone.
Milestone Completion & Acceptance. Upon Developer’s completion of a milestone, Developer shall notify Customer in writing and provide the Deliverable(s) for review. Customer shall have the time allotted in Section 5 (or in the applicable SOW) to test/inspect the Deliverable(s). If accepted, Customer shall pay the agreed milestone payment within fifteen (15) days of acceptance, unless otherwise specified in the SOW.
Adjustments & Additional Work. Any changes to the milestones, acceptance criteria, or payment amounts must be documented in writing (e.g., via change order or a revised SOW) and signed by both Parties.
No Payment Due Until Milestone Achieved. Customer shall not be obligated to remit payment for any incomplete or unaccepted milestone Deliverable, except as otherwise stated in this Agreement or any applicable SOW (for example, in cases of partial cancellation, prorated fees, or if a Deliverable is “partially accepted” with an agreed offset).
2.2.2 Installment (Subscription) Payment Plan.
Installment Structure. The Parties may agree that the total fees for the Services (including any applicable hosting, maintenance, or other recurring service) shall be paid in regular installments (e.g., monthly or quarterly) over a set subscription term. The schedule, installment amounts, and any applicable interest or financing charge (if any) shall be specified in a signed Supplement or SOW.
Initial Term & Automatic Renewal. Any installment or subscription arrangement is subject to a minimum initial term (e.g., 12 months) unless otherwise agreed in writing. This subscription term may be subject to automatic renewal under Section 2.4 and Section 13.1 of this Agreement, provided that Developer complies with New York’s Automatic Renewal Law (NY GOL §§ 5-903, 5-903-a).
Late or Missed Payments. If Customer fails to pay an installment by the agreed due date, Developer may (i) charge a late fee as specified in the SOW, (ii) suspend any further Services until payment is brought current, and/or (iii) terminate the Agreement for material breach after providing notice and an opportunity to cure as described in Section 11.2 of the Agreement.
Early Termination of Subscription. If either Party terminates the subscription plan before the end of the initial term (and such termination is not for cause under Section 11.2), Customer may remain liable for the outstanding balance of subscription fees as outlined in the SOW or the Agreement’s provisions on termination.
Compliance with Automatic Renewal Law. Developer shall provide clear disclosures of all renewal terms and cancellation options in compliance with New York’s Automatic Renewal Law. Developer shall furnish timely advance notice before any renewal, as required by statute, and shall include instructions for Customer to cancel or opt out if Customer does not wish to renew.
2.2.3 General Requirements.
No Alternative Payments Without Written Consent. No milestone or installment payments shall apply unless explicitly set forth in this Amendment or a duly executed SOW/Supplement.
Supplemental Fee Schedule. If the Parties adopt a milestone-based or subscription-based payment plan, the Fee Schedule (Schedule A) or any relevant SOW shall be updated accordingly to reflect the milestone amounts or installment plan details.
Effect on Other Terms. All other payment-related provisions in Section 2.3 (Invoicing and Due Date), Section 2.4 (Automatic Renewal Law Compliance), and the Agreement’s general terms remain applicable, unless expressly modified in this Amendment.
2.3 Invoicing and Due Date.Developer shall issue an invoice for the lump-sum payment(s) as follows:
At Project Completion – Customer shall remit payment in full within fifteen (15) days of receipt of the invoice, or
Partial Upfront / Remainder on Completion – If both parties have agreed to a partial prepayment, Customer shall pay the agreed-upon deposit within 15 days of invoice, and the remaining balance within 15 days following satisfactory completion of the Services.
2.4 Automatic Renewal Law Compliance.Any provision in this Agreement relating to automatic renewal of subscription fees shall comply with New York’s Automatic Renewal Law (NY GOL §§ 5-903, 5-903-a). This includes providing clear disclosure of renewal terms, cancellation options, and timely advance notice before the subscription renews, as required by law.
3. Statements of Work
When required by either party, the parties may in good faith negotiate Supplemental Statements of Work (“Supplements”), each of which upon signing by both parties shall be deemed part of this Agreement. Such Supplements shall be substantially in the form of Appendix A hereto. Unless otherwise agreed in a Supplement, the following provisions shall govern Supplements generally:
3.1 Definitions. As used in this Agreement and any relevant Statement of Work, the following terms shall be defined as follows:
3.1.1 “Milestone Schedule” shall mean the schedule for the Services as set forth as part of the relevant Statement of Work.
3.1.2 “Specifications” shall mean the requirements for the development of the Web Site or other Deliverables as set forth as part of the relevant Statement of Work.
3.1.3 “Deliverables” shall mean any work designed, created, and/or produced by Developer hereunder in connection with this Agreement and as further set forth as part of the relevant Statement of Work.
3.2 Information to be Supplied to Developer.To implement a Statement of Work, Customer shall supply to Developer the Specifications, Milestone Schedule, pricing, and payment terms (including an estimate of required hours or a fixed price proposal) and any other information that Developer may reasonably require to evaluate the performance of the services proposed by Customer (the “Proposal”).
3.2.1 Within five (5) business days of Developer’s receipt of the Proposal, Developer shall respond and either accept the Proposal as a Statement of Work or require changes thereto.
3.2.2 The parties shall negotiate in good faith with respect to the Proposal, until both parties agree to implement the Proposal, as revised if necessary, as a Statement of Work. Developer shall not be required to commence work pursuant to the Statement of Work until both parties have agreed in writing to the Statement of Work.
3.2.3 All Services performed hereunder, other than fixed price proposals, shall be compensated pursuant to the Fee Schedule set forth in Schedule A or any applicable Statement of Work.
3.2.4 The performance of Services required in the Statement of Work shall be completed in accordance with the Milestone Schedule set forth in the Statement of Work, provided Customer shall have delivered all necessary information and materials in a timely fashion, and if not, then Consultant’s obligations which are dependent on such information or materials shall be extended to reflect such delay.
3.3 Term.
In the absence of an express provision for the duration or early termination of a Supplement, any SOW shall be terminable upon thirty (30) days written notice of either party without cause.
3.4 Payments.
All Statements of Work or Supplements under this Agreement shall, by default, require lump-sum payment for Services unless both parties expressly agree in writing to a different payment structure. Any reference to milestone-based payments, time-and-materials, or other forms of compensation shall only take effect if included in a Supplement duly executed by both parties, detailing the payment schedule, amounts, and acceptance criteria.
4. Delivery of Satisfactory Production Materials by Customer to Developer
4.1 Customer shall provide Developer, upon reasonable notice, all necessary materials, data, or documentation pertaining to the Services as set forth in the applicable SOW.
4.2 Customer shall deliver to Developer such materials, data, or documentation in a form satisfactory to Developer. All photographs, images, video, animation, film, illustrations, drawings, charts, maps, indexes and other graphical and visual materials, as well as all music, sound, narration and other audio materials or other works owned or controlled by Customer that are necessary to completion of the Services (collectively “Customer Content”) shall be suitable for reproduction and shall be timely delivered to Developer in the form specified in the applicable SOW.
4.3 Developer shall make no changes to the text or appearance or otherwise of any of the Customer Content without the prior written approval of Customer. Customer shall make the final determination of all Customer Content to be used on the Web Site.
4.4 Developer reserves the right to refuse to include Customer Content in the web site that Developer deems offensive or otherwise inappropriate.
5. Delivery and Acceptance of Deliverables
5.1 Time and Manner of Delivery.
Developer shall deliver each Deliverable at the times and in the manner specified under this Agreement, including any relevant Statement of Work. Notwithstanding the foregoing, if Customer fails to provide Developer with the information or feedback required under the acceptance test procedure set forth herein within the applicable time period, then Developer’s obligations that are dependent on such information or approval shall be extended to reflect such delay.
5.2 Procedure for Acceptance.
The procedure for acceptance of any Deliverable shall be as follows:
5.2.1 Customer shall have thirty (30) days to inspect and test each such Deliverable when received to determine if it conforms to the Specifications.
5.2.2 If any Deliverable fails to conform to its Specifications, Customer shall give Developer written notice of the failure stating the defect in the Deliverable. Developer shall then have thirty (30) days to remedy such failure or defect and redeliver such Deliverable to Customer.
5.2.3 After resubmission of the Deliverable by Developer, Customer shall again inspect the Deliverable to confirm that it conforms to Specifications. If the resubmitted Deliverable again fails Customer’s acceptance testing, Customer may, in its sole discretion (i) deem the failure to be a material breach of this Agreement; or (ii) accept the Deliverable as a nonconforming Deliverable. If Customer elects (ii), Customer may in its sole discretion either: (aa) withhold a mutually agreed upon offset from the fees payable to Developer for the Deliverable under this Agreement or any applicable Statement of Work; or (bb) invoice and recover from Developer the amount of Customer’s reasonable out-of-pocket costs to correct, modify, and/or complete the Deliverable in accordance with the Specifications.
5.3 Each Deliverable shall be deemed to be accepted upon written notice by Customer to Developer of such acceptance. Customer shall not unreasonably withhold or delay acceptance.
5.4 Except in the instances of Force Majeure or in the case of an extension pursuant to Sections 3.2.4, a failure by Developer to provide Deliverables to Customer within the agreed upon time period shall be a material breach of the Agreement.
6. Rights in Data and Works
6.1 For purposes of this Agreement, the following terms shall have the meanings set forth below:
6.1.1 “Custom Work Product” shall mean all designs, discoveries, inventions, products, computer programs, procedures, improvements, developments, drawings, notes, documents, information, and materials made, conceived, or developed by Developer either before or after the Effective Date of this Agreement on behalf of Customer in furtherance of the Site or other Services provided to Customer under the terms of this Agreement, and paid for by Customer. Customer Work Product does not include any preexisting software owned by Developer, nor any Customer Content, as herein defined, nor any third party software products incorporated into the Custom Work Product.
6.1.2 “Customer Content” shall mean any computer programs, designs, data, video or audio materials, graphics or other materials provided by Customer to Developer pursuant to this Agreement.
6.1.3 “Intellectual Property” shall mean intellectual property or proprietary rights, including but not limited to copyright rights, moral rights, patent rights (including patent applications and disclosures), rights of priority, mask work rights, and trade secret rights, recognized in any country or jurisdiction in the world.
6.2 Ownership.
Customer agrees that Developer is the owner of all rights, title and interest in and to the Custom Work Product, including, but not limited to page design and layout and associated techniques, CGI or PERL scripting, any software (including all routines and algorithms therein), images or icons developed by Developer or its agents pursuant to this Agreement.
6.3 Customer’s Rights.
Developer grants to Customer a nonexclusive, worldwide, fully paid license to use the Custom Work Product and the executable form of all software contained therein, and to reproduce, transmit, and distribute it by electronic means solely for Customer’s own business use in operating the web site. This license shall be perpetual and irrevocable except as provided in Section 11.3 below. Customer may not (i) create derivative works based on the Custom Work Product, (ii) modify the Custom Work Product except to update certain modules identified by Developer; (iii) use the Custom Work Product to provide services to third parties, or (iv) rent, lease, market, or sublicense the Custom Work Product to third parties, except pursuant to a separate distribution agreement with Developer.
6.4 Developer’s Rights to Customer Content.
Customer grants to Developer a nonexclusive, worldwide, perpetual, royalty free license to reproduce, modify, display, perform, adapt, transmit, distribute, improve, and otherwise use the Customer Content in connection with Developer’s performance under this Agreement.
6.4.1 “Custom Work Product” shall mean computer programs, designs, products, developments, drawings, notes, documents and other materials created by Developer during the term of this Agreement on behalf of Customer in furtherance of the Web Site development and other Services that has been delivered to Customer and paid for by Customer, except for Generic Modules. Custom Work Product shall not include any Customer Content , nor any third party software products incorporated into the Custom Work Products, nor any Developer Technology, as herein defined.
6.4.2 “Generic Modules” shall mean discrete computer program subroutines that are not specific to the functions of the Custom Work Product but are useful generally in Developer’s business and that are designated as “Generic Modules” in a writing signed by both parties.
6.4.3 “Developer Technology” shall mean any and all existing software, technology, knowhow, algorithms, procedures, techniques, and solutions associated with the use, design, development, testing, and distribution of the Custom Work Product and improvements to such existing software and related technology, which technology is owned by Developer or its suppliers and used by Developer in the development effort hereunder.
6.5 Developer hereby grants to Customer a perpetual, irrevocable, nonexclusive, worldwide, fully paid license to use, reproduce, modify, display, perform, create derivative works based upon, and to grant end user customers (either directly or indirectly via distributors, value added resellers and software developers) sublicenses to use Developer Technology, the Generic Modules, and all Intellectual Property rights contained in the Custom Work Product.
6.6 Developer’s Rights.
Developer Technology, the Generic Modules, and all Intellectual Property rights contained therein are and will remain the sole and exclusive property of Developer.
6.7 Customer grants to Developer a perpetual, irrevocable, nonexclusive, worldwide, fully paid license to use, reproduce, modify, display, perform, create derivative works based upon, and to grant end user customers (either directly or indirectly via distributors, value added resellers and software developers) sublicenses to use the Custom Work Product and all Intellectual Property rights contained therein; provided that Developer may not use the Custom Work Product to create (directly or indirectly) a product for any of the companies listed in Exhibit 11.3 [or a direct competitor of Customer] that performs substantially the same functions as the software contained in the Custom Work Product.
6.8 Nothing in this Agreement shall be construed to limit Developer’s right to use information in nontangible form retained by Developer as ideas, information and understandings retained in the human memories of its employees, contractors and agents, provided that Developer may only use information of general applicability and not Customer’s Confidential Information. This provision shall not be construed to operate to grant Developer any rights under Customer’s patents or copyrights.
6.9 Customer will provide reasonable assistance and cooperation to Developer to acquire, transfer, maintain, perfect, and/or enforce the Intellectual Property rights in the Web Site (excluding Customer Content) and Custom Work Product, including, but not limited to, execution of a formal assignment or such other documents as may be reasonably requested by Developer. Customer hereby appoints the officers of Developer as Customer’s attorneys in fact to execute such documents on Customer’s behalf for this purpose.
7. Warranties and Disclaimers
7.1 Customer represents and warrants that it is authorized by all required authorities to grant the license to the Customer Content to Developer as set forth in Section 6.4 and that neither the Customer Content nor Developer’s exercise of the license granted in Section 6.4 hereof infringes upon any copyright, patent, trademark, trade secret, or other proprietary rights of third parties, or any other applicable laws, regulations, or third-party rights. Moreover, Customer warrants that the Customer Content contains no material that is unlawful, harmful, fraudulent, threatening, abusive, harassing, defamatory, vulgar, obscene, profane, hateful, racially, ethnically, or otherwise objectionable, including, without limitation, any material that encourages conduct that would constitute a criminal offense, give rise to civil liability, or otherwise violate any applicable laws or regulations.
7.2 Neither Developer nor any of its information providers, employers or agents warrant that the Services or Deliverables provided hereunder will be uninterrupted or error free. Nor does Developer or any of its information providers, employees, or agents make any warranty as to the results to be obtained from the use of the Web Site or any other Services provided hereunder. The Services and Deliverables are to be performed and delivered on an “AS IS” basis, without warranties of any kind, either express or implied, including but not limited to warranties of title or implied warranties of merchantability or fitness for a particular purpose.
8. Limitations on Liability
8.1 Limitation on Liability.
Sun Locke shall defend, indemnify, and hold harmless Client and its Affiliates from and against any third-party claims alleging that the Deliverables, as provided by Sun Locke and used by Client in accordance with these Terms, infringe such third party’s Intellectual Property Rights. In the event of such a claim, Sun Locke may, at its sole option and expense, procure for Client the right to continue using such Deliverables, replace or modify them so they become non-infringing, or terminate these Terms and provide a pro-rata refund of any prepaid Fees.
8.2 Limitation on Developer’s Liability.
Developer’s liability to Customer shall in no event exceed the total amounts paid by Customer to Developer under this Agreement.
8.3 Limitation on Customer’s Liability.
Customer’s liability to Developer for any and all matters related to this Agreement shall not exceed the total of payments due to Developer from Customer hereunder.
9. Indemnification
9.1 Developer Indemnification.
Developer shall indemnify, defend, and hold harmless (including payment of reasonable attorneys’ fees) Customer, its directors, officers, employees, and agents (each, an “Indemnified Party”) from and against all third-party claims, liabilities, losses, damages, actions, or proceedings (collectively, “Claims”) arising out of or in connection with any acts or omissions of Developer in performing this Agreement, to the fullest extent permitted by the laws of the State of New York. Without limiting the generality of the foregoing, this indemnification obligation specifically includes, but is not limited to, Claims relating to alleged copyright infringement, defamation, products liability, any deceptive acts or practices as defined under New York General Business Law § 349, fraud, or any negligent or grossly negligent act or omission of Developer or its officers, agents, or employees.
In accordance with applicable New York law, Developer’s indemnification obligation shall survive the expiration or termination of this Agreement for any reason. Developer shall pay for the defense of any such action unless Developer and the Indemnified Party mutually agree that the Indemnified Party will assume the defense. The Indemnified Party shall provide Developer with prompt written notice of any Claim for which indemnification is sought and shall reasonably cooperate in the defense at Developer’s expense, provided that any failure to provide such notice shall not relieve Developer of its indemnification obligation except to the extent that Developer is materially prejudiced by such failure.
9.2 Customer Indemnification.
Customer shall indemnify, defend, and hold harmless (including payment of reasonable attorneys’ fees) Developer, its directors, officers, employees, and agents (each, an “Indemnified Party”) from and against all Claims arising out of or in connection with (a) the Customer Materials provided by Customer to Developer pursuant to this Agreement, or (b) any acts or omissions of Customer in relation to its dealings with third parties in connection with the services performed under this Agreement, to the fullest extent permitted by the laws of the State of New York. Without limiting the foregoing, this indemnification obligation specifically includes, but is not limited to, Claims relating to alleged copyright infringement, defamation, products liability, any deceptive acts or practices as defined under New York General Business Law § 349, fraud, or any negligent or grossly negligent act or omission of Customer or its officers, agents, or employees.
In accordance with applicable New York law, Customer’s indemnification obligation shall survive the expiration or termination of this Agreement for any reason. Customer shall pay for the defense of any such action unless Customer and the Indemnified Party mutually agree that the Indemnified Party will assume the defense. The Indemnified Party shall provide Customer with prompt written notice of any Claim for which indemnification is sought and shall reasonably cooperate in the defense at Customer’s expense, provided that any failure to provide such notice shall not relieve Customer of its indemnification obligation except to the extent that Customer is materially prejudiced by such failure.
10. Development Credit
10.1 Acknowledgment Page and Hyperlink.
Customer shall acknowledge Developer as the Web Site developer in text on an “acknowledgment page” (or similarly named page) of the Web Site, which will include a hyperlink to Developer’s site on the World Wide Web. The exact format of such development credit shall be at the sole discretion of Customer, provided that the text and hyperlink are reasonably visible. It shall be the responsibility of Developer to provide Customer with any necessary information to create and update such hyperlink.
10.2 Duration of Developer Credit.
Lump-Sum Payment: If the total fee for Services is paid on a lump-sum basis (pursuant to Section 2.1 or any applicable Statement of Work), the development credit will remain on the Web Site for ten (10) years from the initial date the Site goes live (“Initial Display Date”), or until the Agreement is terminated, whichever occurs later.
Subscription (Installment) Payment: If Customer is paying for the Services under a subscription or installment plan (pursuant to Section 2.2 or any applicable Statement of Work/Supplement), the development credit shall remain on the Web Site for the entire duration of the subscription term, including any renewals.
10.3 Rights and Limitations.
The inclusion of this development credit shall not confer upon Developer any trademark, copyright, or other proprietary interest in the Web Site beyond what is expressly granted elsewhere in this Agreement.
Nothing in this Section 10 shall be construed to require Customer to promote the Site actively. The level of effort and spending in any promotional activities shall remain solely in Customer’s discretion.
In the event of a rebranding or major redesign during the required credit display period, Customer shall continue to display Developer’s credit and hyperlink in a manner reasonably consistent with the new design, unless otherwise agreed in writing.
11. Termination
11.1 Initial Term and Renewal.
This Agreement shall commence on the Effective Date. The initial term for the Services, including any Maintenance and Support under Section 13.1, shall continue for the period specified in the applicable Statement of Work or as otherwise agreed upon in writing by the parties. The annual maintenance subscription shall be non-cancelable for the first one (1) year of service. Following the expiration of this initial term, the Agreement (including Maintenance and Support) may automatically renew on an annual basis at the then-current rate, subject to New York’s Automatic Renewal Law (NY GOL §§ 5-903, 5-903-a). Developer shall provide clear disclosure of the renewal terms and cancellation options prior to any renewal, in compliance with these statutory requirements. The Agreement may also be renewed with revised terms, conditions, and fees upon mutual written agreement by both parties.
11.2 Termination for Cause.
Either party (the “Non-Breaching Party”) may terminate this Agreement at any time by providing written notice to the other party (the “Breaching Party”) if the Breaching Party or any of its employees, consultants, or agents violates a material provision of this Agreement and fails to remedy such violation within a reasonable period (for example, thirty (30) days) after receiving written notice of the violation. Termination for cause may also occur if the Breaching Party terminates or suspends its business, becomes subject to bankruptcy or insolvency proceedings under federal or state law, or becomes subject to the direct control of a trustee or similar authority; or if continued performance of the Services materially and adversely affects the ability of either party to conduct its business for any reason and such effect cannot be cured within a reasonable period. In the event any such circumstance arises, the affected party shall immediately notify the other party in writing of its occurrence, and the Non-Breaching Party may terminate this Agreement effective immediately or as stated in its notice of termination.
11.3 Effect of Termination.
Upon expiration or termination of this Agreement for any reason, Developer shall promptly return or destroy (at Customer’s election) all materials that, under Section 6 or other relevant provisions of this Agreement, are owned by Customer. Expiration or termination shall not relieve either party of any payment obligation that has accrued or become due prior to the effective date of termination. Developer shall issue a final invoice for all Services performed through the date of termination, which Customer shall pay in accordance with Section 2 of this Agreement. If Customer terminates this Agreement for convenience or without cause within the first one (1) year of the annual maintenance subscription, Customer remains liable for the full Annual Maintenance Fee for that year. However, if Customer terminates for cause in accordance with Section 11.2, no further Annual Maintenance Fee shall be due beyond amounts earned or accrued up to the date of termination. If Developer terminates for cause, Customer remains liable for the pro rata share of the Annual Maintenance Fee through the date of termination. The confidentiality obligations in Section 12 shall survive any termination or expiration of this Agreement. Upon full payment of any outstanding amounts by Customer, Developer shall turn over to Customer all Custom Work Product (as defined in Section 6) developed through the date of termination or expiration, subject to any continuing licenses or rights provided herein. If applicable, Developer’s obligations under any Source Code Escrow Agreement shall likewise survive termination of this Agreement to the extent necessary to fulfill the escrow requirements.
11.4 Source Code Escrow.
Developer agrees to negotiate in good faith and enter into a Source Code Escrow Agreement (“SCEA”) with Customer and a third-party escrow agent (“Escrow Agent”) covering the deposit and release of relevant source code, as further described in this Agreement. The obligations under this Section survive termination for any reason, to the extent necessary to effectuate the escrow arrangement.
12. Confidentiality
12.1 Confidential Information.
“Confidential Information” shall mean a party’s information that is not generally known by nonparty personnel, used by the party and which is proprietary to the party or the disclosure of which would be detrimental to the party. Confidential information includes, but is not limited to, the following types of information (whether or not reduced to writing or designated as confidential): computer scripts, software or routines; internal personnel, financial, marketing, and other business information, and manner and method of conducting business; strategic, operations, and other business plans and forecasts; information relating to the party’s employees, customers, vendors, or other contractors; and the existence of a contractual relationship between the parties. Confidential Information shall not include any information which is or becomes generally available to the public without breach of this Agreement, which is in the possession of a party prior to its disclosure by the other party, or becomes available from a third party not in breach of any obligation of confidentiality to the disclosing party.
12.2 Nondisclosure.
Each party agrees not to use, disclose, sell, license, publish, reproduce, or otherwise make available the Confidential Information of the other party except and only to the extent necessary to perform under this Agreement. Each party agrees that the Confidential Information of the other party shall be held in strict confidence and shall not be used or disclosed without the express written consent of the other party, except as may otherwise be required by law. Each party shall use reasonable measures to secure and protect the other party’s Confidential Information, including measures at least as strict as those such party uses to protect its own Confidential Information, and to take appropriate action by instruction or agreement with its employees, consultants, or other agents who are permitted access to the other party’s Confidential Information to satisfy its obligations under this Agreement.
12.3 Exclusion.
Information that (a) becomes public without breach, (b) is already in the recipient’s possession without obligation of confidentiality, or (c) is lawfully obtained from a third party without a confidentiality breach, is not considered Confidential Information.
13. Miscellaneous Provisions
13.1 Maintenance and Support.
During the term of this Agreement, Developer shall provide ongoing maintenance and support for the Deliverables at a standard annual subscription fee of three thousand six hundred dollars (USD $3,600) per year (“Annual Maintenance Fee”) - or such other amount as specified in Schedule A or any applicable SOW. The Annual Maintenance Fee is non-refundable and covers a continuous twelve-month period, enforceable for no less than one (1) year from the start of the maintenance term. This fee covers the following services:
13.1.1 Warranty Remediation
In the event any Deliverable or Service fails to fulfill any applicable warranty under this Agreement, Developer shall, upon receiving written notice from Customer, use its best efforts to promptly remedy such failure.
13.1.2 Software Updates
Developer shall promptly deliver to Customer, at no additional cost beyond the Annual Maintenance Fee, all software updates containing bug fixes, error corrections, or similar patches for any Deliverable provided under this Agreement.
13.1.3 Customer Cooperation
Customer shall provide Developer with such information as Developer may reasonably require, in a timely manner, to diagnose and resolve any issues.
13.1.4 Third-Party Components
Unless otherwise agreed in a separate writing, Developer shall not be responsible for maintaining any third-party software or hardware.
13.1.5 Automatic Renewal and Compliance with New York Law
Following the initial one (1) year period, maintenance and support may automatically renew on an annual basis at the then-current rate, unless either party provides [30/60] days’ written notice of its intent not to renew. In accordance with New York’s Automatic Renewal Law (NY GOL §§ 5-903, 5-903-a), Developer shall provide clear disclosure of the renewal terms, cancellation options, and timely notice to Customer before the renewal takes effect. Any change to the Annual Maintenance Fee beyond the first year shall be documented by a written amendment or Supplement signed by both parties.
13.2 Subcontracting.
Any subcontract made by Developer shall incorporate by reference all the terms of this Agreement.
13.3 Nonsolicitation.
Developer and Customer agree not to hire or solicit for employment employees who are employed by the other or who were employed by the other party during the term of this Agreement for a period of one year following termination of this Agreement without the prior consent of that party.
13.4 Publicity.
Developer agrees that it will not, without the written consent of Customer in each instance (i) use in advertising, publicity or otherwise (including without limitation on the Internet) the name of Customer, Customer’s domain name, any trademark, trade name, symbol, or any abbreviation or contraction thereof owned by or referring to Customer, or (ii) represent, directly or indirectly, that any product or service offered by Developer has been approved or endorsed by Customer
13.5 Dispute Resolution.
The parties agree that any dispute(s) arising under this Agreement shall be governed by and construed in accordance with the laws of the State of New York. The parties further agree that any such dispute(s) will be submitted promptly for binding resolution by an arbitrator or mediator with specific expertise in Internet and electronic communications matters, and that all proceedings shall be conducted in the Borough of Manhattan, in New York, or such other location as the parties may mutually agree.
13.6 Assignment.
Developer may, at its sole discretion, assign or subcontract the whole or any part of this Agreement without Customer’s prior consent. Customer may not sell, transfer or assign this Agreement, except to entities controlled by Customer, without the prior consent of Developer.