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Website Development and Service Agreement
SERVICE AGREEMENT the (Agreement) made as of the 1st day of March, 2005 (the
Effective Date) by and between Brooklyn Cheesecake & Desserts Company, Inc. a
corporation organized and operating under the laws of New York and having
offices at 20 Passaic Avenue, Fairfield, New Jersey 07004 (the "Client") and
Burbro Capital, Inc, a corporation organized and operating under the laws of New
York and having offices at 4 Five Ponds Road, Waccabuc, New York 10509.
WHEREAS, Consultants are in the business of providing certain software and
computer consulting services pertaining to the international network of
computers and computer networks known by the name Internet; and
WHEREAS, Client wishes to retain the services of Consultants to:
(i) locate, establish, install and maintain computer hardware and software to
provide Client with a system to provide information via the World Wide Web
protocol of the Internet (the "World Wide Web"), and allow Internet users to
make transactions (the "Web and Database Server"); (ii) assist Client with
Client's development and operation of a content server to make Client-related
multimedia information accessible via the World Wide Web to Internet users (the
"Client Server") (the Client's presence on the World Wide Web under this
Agreement by the Web and Database Server and the Client Server referred to
herein as the "Site"); (iii) promote the Site; (iv) develop and improve computer
programs and other deliverables to be used in connection with the Site; and (v)
consult with Client with respect to the ultimate transfer of all hardware and
software components of the Web and Database Server to Client's location and
facilities.
WHEREAS, Consultants wish to provide Client with such services;
NOW, THEREFORE, in consideration of the conditions and covenants set forth
hereinafter, it is agreed as follows:
1. Retention
Client hereby retains Consultants and Consultants hereby accept such retention
by the Client.
2. Services
Upon the terms and subject to the conditions contained herein, Consultants agree
to provide to Client consulting services as described in statements of work to
be agreed to in writing between the parties from time to time during the term
hereof (the "Statements of Work") and which shall be consecutively numbered and
annexed hereto as Schedule A. Such services shall be provided in accordance with
the provisions of this Agreement and the applicable Statement of Work.
3. Additional Services
In addition to the services described in this agreement, Consultants shall
perform the following additional services in accordance with the timetable set
forth as Schedule B (the "Timetable"):
3.1. Configuration and Operation of Web and Database Server
Consultants will configure and operate the Web and Database Server at an agreed
upon fully-qualified hosting center as outlined in Schedule C. Consultants and
authorized third parties will have access to the Web and Database Server. No
third-party will have access to the Web and Database Server. Without limitation
of the foregoing, to the extent that any third party software licenses are
required to be obtained by Consultants to perform their obligations hereunder,
Consultants shall obtain such licenses on Client's behalf at no additional cost.
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3.2. Removed
3.3. Removed
3.4. Translations into HTML OR EQUIVALENT Format
Provide consulting services to Client and translate Client-supplied text,
graphics and other materials into Hypertext Markup Language (HTML OR EQUIVALENT)
format for use on the Site (such materials, as periodically updated by Client as
part of the Client Server, shall be known as the "Internet Display"). Additional
obligations of the parties with respect to the development of the Internet
Display are further set forth below in Section 4.
3.5. Site Related Programs and Other Deliverables
Develop, in accordance With Section 5 herein, the Site Related Programs and
other Deliverables (as defined herein).
3.6. Site Related Software Developed by Client
Copy, reformat, improve, review or advise on Site related software developed by
the Client, as requested by Client and as set forth in any Statement of Work.
3.7. Software Scripting Routines
In accordance with the Timetable, develop software scripting routines as set
forth in Schedules A and B, Consultants will generate HTML OR EQUIVALENT to make
Client's catalog information of retail merchandise appear on the Web and
Database Server as specified herein (the catalog, together with the software
routines and underlying database is referred to herein as (the "Catalog") and
install, configure and customize the Web and Database Server to enable and track
purchases from the Catalog.
3.8. Recordkeeping
Manage the recordation of all information made available from people accessing
the Site, or purchasing items from the Catalog, including, without limitation
name, address, credit card numbers, products requested and any other information
directly or indirectly obtained from such users (collectively, "User
Information").
3.9. Removed
3.10 Return of Merchandise.
Consultants shall have no liability or obligations in connection with
merchandise acquired by credit card which is subsequently returned to Client by
customer(s) or for the credit of Client's customers, unless such return is
caused by fraud on the part of Consultants or Consultants' gross negligence.
3.11. Removed
3.12. Training
Provide such training, advice and information concerning the use and features of
the Site as Client shall reasonably request.
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4. Development of the Internet Display
Consultants shall develop the Internet Display for use on the Client Server.
Upon the provision by Client to Consultants of text, graphics or other
information (collectively, "Content") for use in the Internet Display,
Consultant shall promptly adapt, translate and reformat the Content as necessary
into HTML OR EQUIVALENT format. Client shall make the final determination of all
Content to be used on the Internet Display. All photographs, trademarks, images
or other works owned or controlled by Client and which are specified by Client
for inclusion in the Internet Display shall be provided by Client in clear and
camera ready form necessary for digital translation, or in other format agreed
upon by the parties. The completed version of the Internet Display shall be
provided to Client for acceptance in accordance with the Timetable set forth in
Schedule B.
5. Statements of Work.
5.1. Site Related Programs
As used in this Agreement, the term "Site Related Programs" shall mean the
software deliverables (other than the Internet Display) to be produced by
Consultants hereunder.
5.2. Milestone Schedule
As used in this Agreement, the term "Milestone Schedule" shall mean the schedule
for the development of Site Related Programs as set forth as part of the
relevant Statement of Work.
5.3. Specifications
As used in this Agreement, the term "Specifications" shall mean the requirements
for the development of a Site Related Program or other deliverable, including
operational and functional capabilities and performance, all as set forth as
part of the relevant Statement of Work.
5.4. Information to be Included in the Statement of Work
The Statement of Work shall include the Specifications, Milestone Schedule, and
any other information that may reasonably and customarily be included to provide
the services desired by Client All work hereunder, shall be compensated pursuant
to Schedule D. Consultants shall prepare a Statement of Work in good faith.
Consultants shall not be required to commence work until both parties have
agreed in writing to the Statement of Work. The performance of the services
required in the Statement of Work shall be completed in accordance with the time
frame set forth in the Statement of Work.
6. Delivery and Acceptance of Deliverables
As used in this Agreement, the term "Deliverable" shall mean any product
produced by Consultant hereunder in connection with the Internet Display or any
Statement of Work.
6.1. Time and Manner of Delivery
Consultant shall deliver each Deliverable at the times and in the manner
specified therefore under this Agreement, including any relevant Statement of
Work.
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6.2. Procedure for Acceptance
The procedure for acceptance of any Deliverable shall be as follows:
(1) Client shall have thirty (30) days to inspect and test each such Deliverable
when received to determine if it conforms to the Specifications.
(2) If any Deliverables fails to conform to its Specifications, Client shall
give Consultants written notice of the failure stating the defect in the
Deliverables. Consultant shall then have thirty (30) days to remedy such failure
and redeliver such Deliverable to Client. After resubmission, Client shall again
inspect the Deliverable to confirm that it conforms to the Specifications. If
the resubmitted Deliverable again fails Client's acceptance testing, Client may,
in its sole discretion accept the Deliverable as a non-conforming Deliverable.
If Client elects to accept the Deliverable as a non-conforming Deliverable,
Client may in its sole discretion either: (i) withhold a mutually agreed upon
offset from the development fees payable to Consultants for the Deliverable or
(ii) invoice and recover from Consultants the amount of Client's reasonable
out-of-pocket costs to correct, modify, and/or complete the Deliverable in
accordance with the Specifications.
(3) Each Deliverable shall be deemed to be accepted unless notice is provided by
Client in accord with Section 6.2 (2).
(4) Except in instances of Force Majeure or in the case of an extension pursuant
to Sections 5.4 or 6.2 herein, a failure by Consultant to provide Deliverables
to Client within the agreed upon time period shall be a breach under this
Agreement.
7. Confidentiality
7.1. Confidential Information
"Confidential Information" shall mean any information relating to or disclosed
in the course of the Agreement, which is marked as "confidential" or
"proprietary" by the disclosing party. Confidential Information shall not
include any information, which is or becomes generally available to the public
without breach of this Agreement; 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 obligations of confidentiality to the disclosing party.
7.2. Prohibition on Disclosure
Each party acknowledges that it will receive Confidential Information of the
other party relating to its technical, marketing, product and/or business
affairs. All Confidential Information of the other party shall be held in strict
confidence and shall not be disclosed or used without express written consent of
the other party, except as may be required by law. Each party shall use
reasonable measures and reasonable efforts to provide protection for
Confidential Information, including measures at least as strict as those, such
party uses to protect its own Confidential Information.
7.3. Confidentiality of User Information
Without limitation of the foregoing, Consultants acknowledge and agree that the
User Information shall be deemed to be Confidential Information of the Client,
and that Consultant not use User Information for any purpose other than that of
fulfilling Consultants' obligations under this Agreement. Neither Consultants
nor any third party on behalf of Consultants, shall have the right, directly or
indirectly, to use, exploit, disclose, transmit, sell, assign, lease or
otherwise convey or make available for access by third parties, any User
Information.
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7.4. Confidentiality of Agreement
Except as required by applicable securities laws, neither Client nor Consultants
shall make any announcement or other disclosure to any third party of the
transactions contemplated by this Agreement without the prior approval of the
other party. All requests by Consultants to Client in this regard shall be
directed to the attention of Chief Executive Officer of Client.
8. No Employment
During the term of this Agreement, Client shall not solicit for employment any
agent acting on behalf of Consultants without Consultants prior written consent.
9. Development Credit
Client shall acknowledge Consultants as the site developers of the Site in text
in an "acknowledgments page" of the Internet Display.
10. Intellectual Property
10.1. Ownership and Licensing of Consultants Materials
All techniques, algorithms and methods or rights thereto owned by Consultants at
the time this Agreement is executed and employed by Consultants in connection
with the Site Related Programs (the "Consultants Materials") shall be and remain
the property of Consultants unless they are in the public domain. Consultants
grant to Client a perpetual, irrevocable, royalty free, unrestricted right to
use, modify, transfer and maintain Consultants Materials.
10.2. Ownership of Program Codes
Unless otherwise specified in a Statement of Work, and except for the
Consultants Materials, all Deliverables and other materials, products,
modifications developed or prepared for Client by Consultants under this
Agreement (including any Statement of Work) including without limitation program
images and text viewable on the Internet, any HTML OR EQUIVALENT Code relating
thereto, or any program code created at the request of Client, is the property
of Client and all title and interest therein shall vest in Client and shall be
deemed to be a "work made for hire" and made in the course of the services
rendered hereunder. To the extent that title to any such works may not, by
operation of law, vest in Client or such works may not be considered works made
for hire, all right, title and interest therein are hereby irrevocably assigned
to Client. All such materials shall belong exclusively to Client with Client
having the right to obtain and to hold in its own name, copyrights,
registrations or such other protection as may be appropriate to the subject
matter, and any extensions and renewals thereof. Consultant agrees to give
Client and any person designated by Client, any reasonable assistance required
to perfect the rights defined in this Section.
10.3. Site Related Programs
Client and Consultants recognize that Site Related Programs may contain code
created during the development of such Site Related Program. Notwithstanding any
other provisions of this Agreement, Consultants shall retain a royalty-free
license to utilize any other code developed by it hereunder.
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10.4. Property of Client
Nothing herein shall be construed to grant any right or license to Consultants
in or to any Content or other material provided to Consultants hereunder by
Client, other than the right to use such material solely on behalf of Client in
accordance with the terms hereto. All of the foregoing materials, including
without limitation any and all copyrights, trademarks or trade names, are and
shall remain the property of Client.
11. Warranties
11.1. Consultants Warranties
Consultants represent and warrant that:
(a) all of the services to be performed hereunder will be rendered using sound,
professional practices and in a competent and professional manner by
knowledgeable, trained and qualified personnel;
(b) the Deliverables will operate in conformance with the relevant terms of this
Agreement, including without limitation, the Statements of Work;
(c) Consultants are the owner of or otherwise have the right to use and
distribute all materials and methodologies used in connection with providing the
Deliverables;
(d) Consultants will comply with all applicable federal, state and local laws in
the performance of obligations hereunder; the Deliverables are and will be free
of any software disabling devices or internal controls, including, without
limitation, time bombs, viruses, or devices of similar nature;
(f) the Deliverables (other than information or materials supplied by Client and
reproduced accurately in the Deliverables) shall not infringe upon any third
party copyright, patent, trade secret or other proprietary right; and
(g) the Web and Database Server shall be maintained and kept up-to






