CONSULTING AGREEMENT This Agreement is made between [NAME OF HIRING FIRM] ("Client"), with a principal place of business at _______________[ADDRESS] and [NAME OF IC] ("Consultant"), with a principal place of business at _______________ [ADDRESS]. 1. Services Performed by Consultant: [ALTERNATIVE 1 (SERVICES DESCRIBED IN AGREEMENT):] Consultant agrees to perform the following services for Client: [DESCRIBE SERVICES CONSULTANT WILL PERFORM, INCLUDING ANY AGREED-UPON WORK SCHEDULE] [ALTERNATIVE 2 (SERVICES DESCRIBED ON ATTACHMENT):] Consultant agrees to perform the services described in Exhibit A, which is attached made part of this Agreement. 2. Consultant's Payment: [ALTERNATIVE 1 (FIXED FEE):] Consultant shall be paid $[STATE AMOUNT] upon execution of this agreement and $[STATE AMOUNT] upon completion of the work as detailed in Clause 1. [END ALTERNATIVE 1] [ALTERNATIVE 2 (INSTALLMENT PAYMENTS):] Client shall pay Consultant a fixed fee of $[TOTAL AMOUNT], in [NUMBER OF INSTALLMENTS] installments according to the payment schedule described in Exhibit [A or B] which is attached to and made part of this Agreement. [ALTERNATIVE 3 (PAYMENT BY THE HOUR/DAY/WEEK/MONTH):] Consultant shall be compensated at the rate of $[PAYMENT RATE] per [SPECIFY "hour," "day," "week" or "month"]. [OPTIONAL: "Unless otherwise agreed upon in writing by Client, Client's maximum liability for all services performed during the this Agreement shall not exceed $[MAXIMUM AMOUNT]."] [END ALTERNATIVE 3] 3. Invoices Consultant shall submit invoices for all services rendered. Client shall the amounts due within ____ days of the date of each invoice. 4. Late Fees Late payments by Client shall be subject to late penalty fees of _____% per month from the due date until the amount is paid.5. Expenses [ALTERNATIVE 1:] Consultant shall be responsible for all expenses incurred while performing services under this Agreement. [OPTIONAL: However, Client shall reimburse Consultant for all reasonable and living expenses necessarily incurred by Consultant while away from Consultant's regular place of business to perform services under this Agreement. Consultant shall submit an itemized statement of such expenses. Client shall Consultant within 30 days from the date of each statement. [END ALTERNATIVE 1.] [ALTERNATIVE 2:] Client shall reimburse Consultant for the following expenses that are directly attributable to work performed under this Agreement: • travel expenses other than normal commuting, including airfares, rental vehicles, and highway mileage in company or personal vehicles at __ cents mile • telephone, facsimile (fax), online and telegraph charges • postage and courier services • printing and reproduction • computer services, and • other expenses resulting from the work performed under this Agreement. Consultant shall submit an itemized statement of Consultant's expenses. Client shall pay Consultant within 30 days from the date of each statement. [END ALTERNATIVE 2.] [OPTIONAL:] 6. Materials Client shall make available to Consultant, at Client's expense, the following materials, facilities and equipment: ________________________________________ [List]. These items will be provided to Client by ____ [Date]. 7. Term of Agreement This Agreement will become effective when signed by both parties and end no later than _____, 19__. 8. Terminating the Agreement[ALTERNATIVE 1:] With reasonable cause, either party may terminate this Agreement effective immediately by giving written notice of termination for Reasonable clause includes: • a material violation of this agreement, or • nonpayment of Consultant's compensation after 20 days written demand for payment. Consultant shall be entitled to full payment for services performed prior effective date of termination. [END ALTERNATIVE 1.] [ALTERNATIVE 2:] Either party may terminate this Agreement at any time by giving ____ [5, 10, 15, 30, 45, 60] days written notice of termination cause. Consultant shall be entitled to full payment for services performed the effective date of termination. [END ALTERNATIVE 2.] 9. Consultant an Independent Contractor Consultant is an independent contractor, and neither Consultant nor Consultant's staff is, or shall be deemed, Client's employees. In its capacity independent contractor, Consultant agrees and represents, and Client agrees, follows: [INCLUDE ALL OF PROVISIONS 6a-j THAT APPLY:] (a) Consultant has the right to perform services for others during the of this Agreement subject to noncompetition provisions set out in this Agreement, if any. (b) Consultant has the sole right to control and direct the means, manner and method by which the services required by this Agreement will be performed. (c) Consultant has the right to perform the services required by this Agreement at any place or location and at such times as Consultant may determine. (d) Consultant will furnish all equipment and materials used to provide services required by this Agreement, except to the extent that Consultant's must be performed on or with Client's computer or existing software. (e) The services required by this Agreement shall be performed by Consultant, or Consultant's staff, and Client shall not be required to hire, supervise or pay any assistants to help Consultant. (f) Consultant is responsible for paying all ordinary and necessary expenses of its staff.(g) Neither Consultant nor Consultant's staff shall receive any training Client in the professional skills necessary to perform the services required Agreement. (h) Neither Consultant nor Consultant's staff shall be required to devote full-time to the performance of the services required by this Agreement. (i) Client shall not provide insurance coverage of any kind for Consultant or Consultant's staff. (j) Client shall not withhold from Consultant's compensation any amount that would normally be withheld from an employee's pay. 10. Intellectual Property Ownership [ALTERNATIVE 1: CLIENT OWNS WORK PRODUCT] Consultant assigns to Client its entire right, title and interest in anything created by Consultant for Client under this Agreement ("Work Product") including patents, copyrights, trade secrets and other proprietary rights. This assignment conditioned upon full payment of the compensation due Consultant under this Agreement. Consultant shall, at no charge to Client, execute and aid in the preparation papers that Client may consider necessary or helpful to obtain or maintain-Client's expense—any patents, copyrights, trademarks or other proprietary Client shall reimburse Consultant for reasonable out-of-pocket expenses incurred under this provision. [OPTIONAL:] Client grants to Consultant a nonexclusive, [CHOOSE ONE: "irrevocable license" OR "license for the term of [NUMBER OF YEARS] years"] use the Work Product. [ADD ANY PAYMENT PROVISIONS OR OTHER RESTRICTIONS] [END ALTERNATIVE 1] [ALTERNATIVE 2 (CONSULTANT OWNS WORK PRODUCT):] Consultant shall retain all copyright, patent, trade secret and other intellectual property rights Consultant may have in anything created or developed by Consultant for Client under this Agreement ("Work Product"). Consultant grants Client a nonexclusive worldwide license to use and sublicense the use of Work Product for the purpose of developing and marketing its products, but for the purpose of marketing Work Product separate from its products. The license shall have a perpetual term and may not be transferred by Client. license is conditioned upon full payment of the compensation due Consultant under this Agreement.[END ALTERNATIVE 2] 11. Consultant's Materials Consultant owns or holds a license to use and sublicense variousmaterials in existence before the start date of this Agreement.("Consultant's Materials"). Consultant may, at it's option, include Consultant's Materials work performed under this Agreement. [ALTERNATIVE 1 (CLIENT'S LICENSE EXTENDS TO ALL PRODUCTS):] Consultant retains all right, title and interest, including all copyright, and trade secret rights in Consultant's Materials. Subject to full payment consulting fees due under this Agreement, Consultant grants Client a nonexclusive worldwide license to use and sublicense the use of Consultant's Materials for the purpose of developing and marketing its products, but not purpose of marketing Background Technology separate from its products. The license shall have a perpetual term and may not be transferred by Client. shall make no other commercial use of the Background Technology without Consultant's written consent. [OPTIONAL: "This license is granted subject to the following terms:" [ADD DESIRED PAYMENT OR ROYALTY PROVISIONS].] [OPTIONAL:] Consultant's Materials include, but are not limited to, those identified in Exhibit __, attached to and made part of this Agreement. [END ALTERNATIVE 1] [ALTERNATIVE 2 (CLIENT'S LICENSE LIMITED TO SPECIFIC PRODUCTS):] Consultant retains all right, title and interest, including all copyright, patent rights and trade secret rights in Consultant's Materials. to full payment of the consulting fees due under this Agreement, Consultant grants Client a nonexclusive worldwide license to use the Background Technology in the following product(s): [DESCRIBE--FOR EXAMPLE: "the computer program described in Clause 2 of this Agreement, and all updates revisions thereto"]. The license shall have a perpetual term and may not transferred by Client. Client shall make no other commercial use of the Background Technology without Consultant's written consent. [END ALTERNATIVE 2] [OPTIONAL:] Consultant's Materials include, but are not limited to, those identified in Exhibit __, attached to and made part of this Agreement. 12. Confidentiality During the term of this Agreement and for ____ [6 months to 5] years afterward, Consultant will use reasonable care to prevent the unauthorized dissemination of Client's confidential information. Reasonable care means least the same degree of care Consultant uses to protect its own confidential information from unauthorized disclosure. Confidential information is limited to information clearly marked as confidential, disclosed orally and summarized and identified as confidential in a writingdelivered to Consultant within 15 days of disclosure. Confidential information does not include information that: • the Consultant knew before Client disclosed it • is or becomes public knowledge through no fault of Consultant • Consultant obtains from sources other than Client who owe no duty of confidentiality to Client, or • Consultant independently develops. 13. Warranties [ALTERNATIVE 1:] Consultant warrants that all services performed under this Agreement shall be performed consistent with generally prevailing professional industry standards. Client must report any deficiencies in Consultant's services Consultant in writing within ____[30, 60, 90 or more] days of performance receive warranty remedies. Client's exclusive remedy for any breach of the above warranty shall be the reperformance of Consultant's services. If Consultant is unable to reperform services, Client shall be entitled to recover the fees paid to Consultant deficient services. THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY ORAL OR WRITTEN REPRESENTATIONS, PROPOSALS OR STATEMENTS MADE PRIOR TO THIS AGREEMENT. [END ALTERNATIVE 1.] [ALTERNATIVE 2:] THE GOODS OR SERVICES FURNISHED UNDER THIS AGREEMENT ARE PROVIDED AS IS, WITHOUT ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS; INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. [END ALTERNATIVE 2.] 14. Limitation on Consultant's Liability to Client (a) In no event shall Consultant be liable to Client for lost profits or special, incidental or consequential damages (even if Consultant has been advised of the possibility of such damages). (b) Consultant's total liability under this Agreement for damages, costs expenses, regardless of cause, shall not exceed the total amount of fees Consultant by Client under this Agreement [OPTIONAL: "or $[DOLLAR AMOUNT], whichever is greater"]. (c) Client shall indemnify Consultant against all claims, liabilities including reasonable attorney fees, of defending any third party claim or other than for infringement of intellectual property rights, arising out connection with Client's performance under this Agreement. Consultant shall promptly notify Client in writing of such claim or suit and Client shall right to fully control the defense and any settlement of the claim or suit. 15. Taxes The charges included here do not include taxes. If Consultant is required to pay any federal, state or local sales, use, property or value added taxes on the services provided under this Agreement, the taxes shall be separately billed to Client. Consultant shall not pay any interest or penalties incurred late payment or nonpayment of such taxes by Client. 16. Contract Changes Client and Consultant recognize that: • Consultant's original cost and time estimates may be too low due to unforeseen events, or to factors unknown to Consultant when this Agreement was made • Client may desire a mid-project change in Consultant's services that would time and cost to the project and possibly inconvenience Consultant, or • Other provisions of this Agreement may be difficult to carry out due to unforeseen circumstances. If any intended changes or any other events beyond the parties' control require adjustments to this Agreement, the parties shall make a good faith effort on all necessary particulars. Such agreements shall be put in writing, signed the parties and added to this Agreement. [OPTIONAL:] 17. Dispute Resolution If a dispute arises under this Agreement, the parties agree to first resolve the dispute with the help of a mutually agreed-upon mediator in the following location ___________ [State city or county where mediation will Any costs and fees other than attorney fees associated with the mediation be shared equally be the parties. If it proves impossible to arrive at a mutually satisfactory solution through mediation, the parties agree to submit the dispute to binding arbitration following location ___________ [State city or county where arbitration will under the rules of the American Arbitration Association. Judgment upon the award rendered by the arbitrator may be entered in any court with jurisdiction do so. [END OPTION] [OPTIONAL:] 18. Attorney Fees Attorney Fees: If any litigation or arbitration is necessary to enforce Agreement, the prevailing party shall be entitled to reasonable attorney costs and expenses. [END OPTION] 19. General Provisions (a) Sole agreement: This is the entire Agreement between Consultant Client. (b) Severability: If any part of this Agreement is held unenforceable, rest of the Agreement will continue in full force and effect. (c) Applicable law: This Agreement will be governed by the laws of the State of [LIST APPLICABLE STATE]. (d) Notices: All notices and other communications given in connection this Agreement shall be in writing and shall be deemed given as follows: • When delivered personally to the recipient's address as appearing 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 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 duplicate copy of the notice is promptly given by first-class or certified recipient delivers a written confirmation of receipt. Any party may change its address appearing in the introductory paragraph to this Agreement by giving notice of the change in accordance with this paragraph. (e) No partnership: This Agreement does not create a partnership relationship. Consultant does not have authority to enter into contracts behalf. (f) Assignment: This Agreement is freely assignable.Client: [NAME OF CLIENT] By: _____________________________________ (Signature) _________________________________________ (Typed or Printed Name) Title: __________________________________ Consultant: [NAME OF CONSULTANT] By: _____________________________________ (Signature) _________________________________________ (Typed or Printed Name) Social Security Number: _________________