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This document sets forth the terms of an agreement between a developer and a customer to purchase an application. As drafted, the customer hires the developer as an independent contractor. It sets forth a development plan for the developer to adhere to and the developer warrants to not infringe on copyright or trade secrets when developing the app. The agreement contains numerous standard provisions, including an attorney’s fee provision, as well as optional clauses regarding intellectual property ownership of the resulting application.
This document sets forth the terms of an agreement between a developer and a customer to purchase an application. As drafted, the customer hires the developer as an independent contractor. It sets forth a development plan for the developer to adhere to and the developer warrants to not infringe on copyright or trade secrets when developing the app. The agreement contains numerous standard provisions, including an attorney’s fee provision, as well as optional clauses regarding intellectual property ownership of the resulting application. App Design Contract This agreement (the “Agreement”) is made as of ______ [Instruction: Insert date.] between _______________ [Instruction: Insert customer name.] with a principal place of business at _______________ [Instruction: Insert customer address.] (the “Customer”) and _______________ [Instruction: Insert developer name.] with a principal place of business at _______________ [Instruction: Insert developer address.] (the “Developer”). WHEREAS Customer desires to retain Developer as an independent contractor to develop the application (the “Application”) described in the Functional Specifications contained in Exhibit A attached to and incorporated herein and made part of this Agreement by reference. Developer is ready, willing and able to undertake the development of the Application and agrees to do so under the terms and conditions set forth in this Agreement. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Developer shall prepare a development plan (“Development Plan”) for the Application, satisfying the requirements set forth in the Functional Specifications. The Development Plan shall include: a. Detailed Specifications for the Application; b. A listing of all items to be delivered to Customer under this Agreement (“Deliverables”); and c. A delivery schedule containing a delivery date for each Deliverable. 2. Developer shall deliver the Development Plan to Customer by _____ [Instruction: Insert date.]. Customer shall have _____ ( ) [Instruction: Insert number of days.] days to review the Development Plan. If the Development Plan is in Customer's reasonable judgment unsatisfactory in any material respect, Customer shall prepare a detailed written description of the objections. Developer shall then have _____ ( ) [Instruction: Insert number of days.] days to modify the Development Plan to respond to Customer's objections. Customer shall have _____ ( ) [Instruction: Insert number of days.] days to review the modified Development Plan. If Customer deems the modified Development Plan to be unacceptable, Customer has the option of terminating this Agreement upon written notice to Developer or permitting Developer to modify the Development Plan again under the procedure outlined in this paragraph. If this Agreement is terminated, the obligations of both parties under it shall end except for Customer's obligation to pay Developer all sums due for preparing the Development Plan and the ongoing confidentiality obligations of this Agreement. Upon Customer’s approval of the Development Plan, Developer shall then commence development of the Application that will substantially conform to the requirements set forth in the Development Plan. 3. Developer shall be compensated in an amount and manner, and according to the schedule as set forth in © Copyright 2013 Docstoc Inc. 2 4. 5. © Copyright 2013 Docstoc Inc. 3 6. Exhibit B annexed hereto and made a part hereof and incorporated by reference. Such 7. 8. © Copyright 2013 Docstoc Inc. 4 9. Exhibit B shall include the schedule for reimbursement of any of Developer’s out-of-pocket expenses incurred in performing services pursuant to this Agreement, as well as a schedule of late fees charges, if any. 10. Optional language: Customer shall make available to Developer, at Customer's expense, the following materials, facilities and equipment: _____________________. [Instruction: Insert list of items to be provided by Customer.] 11. If at any time following acceptance of the Development Plan by Customer, Customer should desire a change in Developer's performance or obligations pursuant to this Agreement, Customer shall submit to Developer a written proposal specifying the desired changes. Developer will evaluate each such proposal at its standard rates and charges. Developer shall submit to Customer a written response to each such proposal within 10 working days following receipt thereof. Developer's written response shall include a statement of the availability of Developer's personnel and resources, as well as any impact the proposed changes will have on the contract price, delivery dates or warranty provisions of this Agreement. The parties shall then enter into a modification agreement to the Development Plan. Upon execution of such modification agreement by both parties, same shall be considered incorporated herein by reference. Developer shall then proceed according to the revised terms of the modification agreement to the extent same revises any term hereof. All other terms hereof shall remain in full force and effect. 12. Developer shall use all reasonable efforts to deliver the Application on schedule, subject to any changes due to any modification agreement or any change order requested by the Customer. Any delay or nonperformance of any provision of this Agreement caused by conditions beyond the reasonable control of the performing party shall not constitute a breach of this Agreement, provided that the delayed party has taken reasonable measures to notify the other of the delay in writing. The delayed party’s time for performance shall be deemed to be extended for a period equal to the duration of the conditions beyond its control. Conditions beyond a party’s reasonable control include, but are not limited to, natural disasters, acts of government after the date of the Agreement, power failure, fire, flood, acts of God, labor disputes, riots, acts of war or terrorism and/or epidemics. Failure of subcontractors and inability to obtain materials shall not be considered a condition beyond a party’s reasonable control. 13. Immediately upon completion of each development phase set forth in the Development Plan's delivery schedule, Developer shall deliver the Application and all other materials required to be delivered according to the delivery schedule to Customer. Customer shall have the number of days set forth on the delivery schedule from the date of delivery of the Application to inspect, test and evaluate it to determine whether the Application satisfies the acceptance criteria in accordance with procedures set forth in the Development Plan, or as established by Developer and approved by Customer prior to testing. If the Application does not satisfy the acceptance criteria, Customer shall give Developer written notice stating why the Application is unacceptable. Developer shall have 30 days from the receipt of such notice to correct the deficiencies. Customer shall then have 30 days to inspect, test and reevaluate the Application. If the Application still does not satisfy the acceptance criteria, Customer shall have the option © Copyright 2013 Docstoc Inc. 5 of either: (1) repeating the procedure set forth above, or (2) terminating this Agreement upon providing written notice to Developer. If Customer does not give written notice to Developer within the initial 30-day inspection, testing and evaluation period or any extension of that period, that the Application does not satisfy the acceptance criteria, Customer shall be deemed to have accepted the Application without revision upon expiration of such period. Upon completion of the final development phase set out in the Development Plan, acceptance testing shall be performed on the Application in its entirety to determine whether the Application satisfies the acceptance criteria and operates with internal consistency. Customer shall have 30 days to perform such tests. If the completed Application does not satisfy the acceptance criteria, the parties shall follow the acceptance and satisfaction procedures set forth with respect to completion of each development phase. 14. [Instruction: Parties should choose which language reflects the correct ownership structure.] Developer assigns to Customer its entire right, title and interest in anything created or developed by Developer for Customer under this Agreement (“Work Product”) including all patents, copyrights, trade secrets and other proprietary rights. This assignment is conditioned upon full payment of the compensation due Developer under this Agreement. Developer shall execute and aid in the preparation of any documents necessary to secure any copyright, patent, or other intellectual property rights in the Work Product at no charge to client. However, Customer shall reimburse Developer for reasonable out-of-pocket expenses. OR Customer grants to Developer a nonexclusive, [CHOOSE ONE: “irrevocable license” OR “license for the term of [NUMBER OF YEARS] years”] to use the Work Product OR Developer shall retain all copyright, patent, trade secret and other intellectual property rights Developer may have in anything created or developed by Developer for Customer under this Agreement (“Work Product”). Developer grants Customer a nontransferable license to use the Work Product. The license grant is conditioned upon full payment of the compensation due Developer and full performance by Customer of its obligations under this Agreement. The license shall be in substantially the form set forth on 15. 16. © Copyright 2013 Docstoc Inc. 6 © Copyright 2013 Docstoc Inc. 7 17. Exhibit C. 18. [Comment: Parties are advised they may revise the warranty language to reflect the parties’ agreement.] THE APPLICATION FURNISHED UNDER THIS AGREEMENT IS PROVIDED ON AN AS “AS IS” BASIS, WITHOUT ANY WARRANTIES OR REPRESENTATIONS EXPRESS, IMPLIED OR STATUTORY EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT; INCLUDING, WITHOUT LIMITATION, WARRANTIES OF QUALITY, PERFORMANCE, NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE NOR ARE THERE ANY WARRANTIES CREATED BY A COURSE OF DEALING, COURSE OF PERFORMANCE OR TRADE USAGE EXCEPT AS OTHERWISE REQUIRED BY LAW. DEVELOPER DOES NOT WARRANT THAT THE APPLICATION WILL MEET CUSTOMER'S NEEDS OR BE FREE FROM ERRORS, OR THAT THE OPERATION OF THE APPLICATION WILL BE UNINTERRUPTED. THE FOREGOING EXCLUSIONS AND DISCLAIMERS ARE AN ESSENTIAL PART OF THIS AGREEMENT AND FORMED THE BASIS FOR DETERMINING THE PRICE CHARGED FOR THE APPLICATION. 19. Developer represents and warrants it owns and has the right to license or convey title to the Application and documentation covered by this Agreement. Developer will not grant any rights or licenses to any intellectual property or technology that would conflict with Developer's obligations under this Agreement. Developer expressly warrants that no portion of the Application contains or will contain any protection feature designed to prevent its use. This includes, without limitation, any computer virus, worm, software lock, drop dead device, Trojan-horse routine, trap door, time bomb or any other codes or instructions that may be used to access, modify, delete, damage or disable Customer's Application or computer system. Developer further warrants that it will not impair the operation of the Application in any way other than by order of a court of law. Developer warrants that the Application shall be compatible with requirements as set forth in the Development Plan Specifications. 20. Developer warrants that Developer will not knowingly infringe on the copyright or trade secrets of any third party in performing services under this Agreement, and shall obtain any necessary licenses at its sole cost and expense, except as otherwise set forth in this Agreement. 21. During the term of this Agreement and for ____ [Instruction: Insert time period.] years afterward, Developer will use reasonable care to prevent the unauthorized use or dissemination of Customer's confidential information. Reasonable care means at least the same degree of care Developer uses to protect its own confidential information from unauthorized disclosure. Confidential information is limited to information clearly marked as confidential or disclosed orally that is treated as confidential when disclosed and summarized and identified as confidential in a writing delivered to Consultant within 15 days of disclosure. © Copyright 2013 Docstoc Inc. 8 22. Optional language: Customer acknowledges that the Application is Developer's sole and exclusive property. Customer shall treat the Application on a confidential basis and shall not, at any time, disclose the trade secrets embodied in the Application or supporting documentation to any other person, firm, organization or employee who does not need to obtain access thereto consistent with Customer's rights under this Agreement. Under no circumstances may Customer modify, reverse compile or reverse assemble the object code contained in the Application. Customer shall devote its reasonable best efforts to ensure that all persons afforded access to the Application and supporting documentation protect Developer's trade secrets against unauthorized use, dissemination or disclosure. 23. This Agreement commences on the date it is executed and shall continue until full performance by both parties, or until earlier terminated by one party under the terms of this Agreement. 24. Each party shall have the right to terminate this Agreement by written notice to the other if a party has materially breached any obligation herein and such breach remains uncured for a period of 30 days after written notice of such breach is sent to the other party. 25. Each party shall be solely responsible for its own taxes, (including the filing of any necessary forms) if and when due. Neither party shall incur any liability for failure of the other party to timely pay its taxes. 26. No part of this Agreement shall be deemed as creating a joint-venturer or employer- employee relationship between the parties, or any of their respective agents, representatives or employees. 27. Customer agrees not to knowingly hire or solicit Developer's employees during performance of this Agreement and for a period of _____ ( ) _______ [Instruction: Insert time.] after termination of this Agreement without Developer's written consent. 28. If any legal action is necessary to enforce this Agreement, the prevailing party shall be entitled to reasonable attorney fees, costs and expenses. 29. This Agreement together with all exhibits, appendices or other attachments, which are incorporated herein by reference, is the sole and entire Agreement between the parties. This Agreement supersedes all prior understandings, agreements and documentation relating to such subject matter. In the event of a conflict between the provisions of the main body of the Agreement and any attached exhibits, appendices or other materials, the Agreement shall take precedence except to the extent otherwise set forth in such attached exhibit, appendices or other materials. 30. Modifications and amendments to this Agreement, including any exhibit or appendix or material hereto, shall be enforceable only if they are in writing and are signed by authorized representatives of both parties. 31. This Agreement will be governed by the laws of the State of ______ [Instruction: Insert state.] © Copyright 2013 Docstoc Inc. 9 32. All notices and other communications given in connection with this Agreement shall be in writing and shall be deemed given when delivered personally to the recipient's address as appearing in the introductory paragraph to this Agreement; three days after being deposited in the United States mails, postage prepaid to the recipient's address as appearing in the introductory paragraph to this Agreement, or when sent by fax or telex to the last fax or telex number of the recipient known to the party giving notice. Notice is effective upon receipt provided that a duplicate copy of the notice is promptly given by first-class or certified mail or the recipient delivers a written confirmation of receipt. Any party may change its address appearing in the introductory paragraph to this Agreement by giving written notice of the change in accordance with this paragraph. 33. The rights and obligations under this Agreement are not assignable by either party. 34. Each party represents and warrants that on this date they are duly authorized to bind their respective principals by their signatures below. [Instruction: Insert parties’ signature blocks.] © Copyright 2013 Docstoc Inc. 10 Exhibit A © Copyright 2013 Docstoc Inc. 11 Exhibit B © Copyright 2013 Docstoc Inc. 12 Exhibit C © Copyright 2013 Docstoc Inc. 13
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