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Extended and Premier Support Terms and Conditions
Velocite Systems, LLC (Velocite Systems), a Maryland
corporation with offices at 810 Cromwell Park Dr., Glen Burnie, MD 21061
and "Customer" hereby agree that the following terms and conditions will
apply to certain technical and/or professional services ("Services") provided
by VELOCITE SYSTEMS to Customer:
1. COVERAGE
This Agreement will cover Support Services and Delivered Information provided
by VELOCITE SYSTEMS to Customer.
2. TERM
This Agreement will become effective when signed by Customer and accepted
in writing by VELOCITE SYSTEMS and will remain in effect for a twenty-four
month period unless earlier terminated as set forth in Section 11. This
Agreement will be automatically renewed for successive twenty-four month
periods; provided that after the initial twenty-four month period, either
party may terminate this Agreement by providing 30 days written notice
to the other party of such party's intent to terminate. Prices for such
additional twenty-four month periods shall be as provided in Section 4
below.
3. NOTICES
All notices in connection with this Agreement will be deemed given as
of the day they are deposited in the U.S. Mails, postage prepaid, certified
or registered, return receipt requested, or by facsimile message addressed
to the recipient at the address set forth above, or by electronic mail
provided that the receipt of the electronic mail is confirmed by sender.
4. PRICE AND PAYMENT
A. Services for the initial twenty-four month period
of this Agreement will be provided. Prior to acceptance, VELOCITE SYSTEMS
may require an advance payment and/or a form of security acceptable
to VELOCITE SYSTEMS. Prices for any successive twenty-four month periods
after the initial twenty-four month period shall be charged at VELOCITE
SYSTEMS' then prevailing rate or as otherwise mutually agreed in writing.
B. Customer will pay the full amount due on any invoice notwithstanding
restrictive endorsements or other statements on or accompanying checks
accepted by VELOCITE SYSTEMS.
C. Customer agrees to pay taxes, however designated (excluding taxes
on VELOCITE SYSTEMS's net income), imposed or based upon the provision,
license or use for Services unless a tax exemption certificate is provided
to VELOCITE SYSTEMS by Customer.
D. Customer agrees to reimburse VELOCITE SYSTEMS for attorneys' fees,
interest and any applicable costs associated with collecting delinquent
payments. Delinquent payments shall bear interest at the lower of one
and one half per cent per month, or the highest rate permitted by law.
E. If VELOCITE SYSTEMS agrees to perform work at Customer's request
outside of the work schedule, Customer agrees to pay any additional
charges invoiced by VELOCITE SYSTEMS for such work.
5. USE OF INFORMATION
In order to enable VELOCITE SYSTEMS personnel to perform the Services
contemplated by this Agreement, and in order to enable Customer to satisfy
its obligations hereunder, it may become necessary for each party to receive
or have access to Background Information (such term being defined to include
specifications, designs, plans, drawings, software, data prototypes or
other technical or business information that either existed prior to performance
of services hereunder or is subsequently developed independent of performance
of such services) of the other which is considered proprietary or confidential.
Notwithstanding the foregoing, any such specifications, designs, plans,
drawings, software, data prototypes or other technical or business information
furnished or made available by Customer to VELOCITE SYSTEMS shall be deemed
"background information" for purposes of this agreement only if clearly
marked "Confidential" as furnished to VELOCITE SYSTEMS. In addition, Delivered
Information, as defined in Section 6, which is provided pursuant to this
Agreement is considered by the parties to be proprietary or confidential.
All such Background Information and all Delivered Information will be
collectively referred to in this section as Information.
A. The party receiving the Information will:
- Hold the Information of the furnishing party
in confidence, and restrict its disclosure solely to those of the
receiving party's employees with a need to know, and not disclose
it to third parties; and
- Advise employees who received the Information
of the obligation of confidentiality hereunder; and
- Use and require employees to use the same
degree of care to protect the information as is used with the receiving
party's information of a similar nature;
- Use the Information it receives only in connection
with Services it performs or obligations it fulfills pursuant to
this Agreement, or pursuant to the applicable license granted in
Section 6.
B. The receiving party will have no obligation to preserve the confidentiality
or restrict the use of any Information which:
- Was previously known to
the receiving party free of any obligation to keep it confidential,
or
- Is or becomes publicly
available, by other than unauthorized disclosure, or
- Is independently developed
by the receiving party, or
- Is disclosed to third parties
by the furnishing party without restriction,
- Is lawfully received free
of restriction from another source having the right to so furnish
the Information.
C. Upon request, the receiving party will return
to the furnishing party all Background Information received in tangible
form.
D. Except for disclosure of Background Information by VELOCITE SYSTEMS
to its subcontractors, background Information may be disclosed to non-parties
to this Agreement only upon the prior written authorization of the party
furnishing such Background Information, and only if the non-party to
whom the Background Information is disclosed agrees in writing (a copy
of which will be provided to the party furnishing such information upon
request) to the same conditions respecting such Background Information
as are contained in this Section 5. However, with respect to requests
made by formal legal process or by a government agency, each party receiving
Background Information of the other will use reasonable efforts to safeguard
such Background Information using established legal means (e.g., protective
orders, etc.). This obligation may be satisfied by the receiving party
notifying the other party in writing when any such request has been
made and cooperating with the other party's efforts to protect the Background
Information.
E. The terms of confidentiality under this Agreement shall not be construed
to limit either party's right to independently develop products without
the use of the Information. Further, either party shall be free to use
for any purpose the residuals resulting from work with the other party's
Information, provided that the receiving party shall maintain the confidentiality
of the Information as provided herein. The term "residuals" means information
in non-tangible form, which may be retained by persons who have had
access to the Information, including ideas, concepts, know-how or techniques
contained therein. Neither Party shall have any obligation to limit
or restrict the assignment of such persons or to pay royalties for any
works resulting from the use of residuals.
F. The obligations of each party under this Section 5 shall terminate
on the date which is two year from the expiration or termination of
the term of this agreement.
6. OWNERSHIP OF INVENTIONS AND DELIVERED INFORMATION
All information (including specifications, designs, plans, drawings, software,
date prototypes or other technical or business information) delivered
or made available by VELOCITE SYSTEMS to Customer and the rights to any
underlying patent, copyrights, mask work protection rights and other intellectual
property rights, will be designated as "Delivered Information" and will
be treated as follows:
A. In the event that Delivered Information is
developed or generated solely by VELOCITE SYSTEMS employees, subcontractors
or jointly by VELOCITE SYSTEMS and Customer's employees, VELOCITE
SYSTEMS will own all right, title and interest therein; provided,
however, in no event shall VELOCITE SYSTEMS have any right in any
of Customer's Background Information. VELOCITE SYSTEMS grants to Customer
a non-exclusive, royalty-free license to use such Delivered Information
in the United States for the defined business purposes.
B. In the event that Delivered Information is generated solely by
Customer's employees, Customer will own all right, title and interest
therein. Customer grants to VELOCITE SYSTEMS a non-exclusive, irrevocable,
royalty-free license to use such Delivered Information for any lawful
business purposes; provided, however, in no event shall VELOCITE SYSTEMS
have any right in any of Customer's Background Information.
C. In the event that VELOCITE SYSTEMS Background Information is incorporated
in Delivered Information provided to Customer, VELOCITE SYSTEMS grants
to Customer a non-exclusive, irrevocable, royalty-free license to
use such Delivered Information in the United States for the defined
business purposes.
D. Except as expressly set forth herein, no license is granted by
either party to the other with respect to any technical or business
information, or with respect to rights in any patents, trademarks,
copyrights, mask work protection rights and other intellectual property
rights.
7. PERSONNEL
In recognition of the fact that VELOCITE SYSTEMS may perform similar
Services from time to time for others, this Agreement will not prevent
VELOCITE SYSTEMS from performing such similar Services or restrict VELOCITE
SYSTEMS from using any personnel which may be provided to the Customer
under this Agreement. VELOCITE SYSTEMS will make a reasonable effort
consistent with sound business practices to honor the specific request
of the Customer with regard to the assignment of its employees; however
VELOCITE SYSTEMS reserves the sole right to determine the assignment
of its employees.
8. RIGHTFUL EMPLOYER
Customer agrees that VELOCITE SYSTEMS is acting as an independent contractor
and that each of the parties will be responsible for all management
matters, taxes or wages, etc., relating to its own employees.
9. NON-SOLICITATION
Customer agrees not to solicit for employment any VELOCITE SYSTEMS personnel
performing Services for Customer under this agreement. Customer agrees
to pay VELOCITE SYSTEMS the amount of $100,000 if a VELOCITE SYSTEMS
employee who has performed Services under this Agreement is employed
by Customer within twelve (12) months of the expiration of this Agreement.
Customer agrees that this payment represents a reasonable estimation
of VELOCITE SYSTEMS's actual expenses incurred should Customer hire
a VELOCITE SYSTEMS employee under these conditions.
10. SUBCONTRACTING
VELOCITE SYSTEMS may subcontract any or all of the work to be performed
by it under this Agreement but will retain responsibility for the work
subcontracted.
11. TERMINATION
A. Customer may terminate this Agreement, subject
to accrued charges, if VELOCITE SYSTEMS fails to perform or observe
any material term or condition of this Agreement and such failure
continues unremedied for thirty (30) days after VELOCITE SYSTEMS's
receipt of written notice thereof from Customer.
B. Customer will be in default of this Agreement if Customer fails
to pay any charge when due or fails to perform or observe any other
material term or condition of this Agreement. VELOCITE SYSTEMS may
terminate this Agreement and exercise any applicable rights, if (i)
the failure to pay any charge when due continues unremedied for ten
(10) days or, (ii) for 30 days from receipt of written notice by VELOCITE
SYSTEMS for other breaches. In the event of such termination by VELOCITE
SYSTEMS, Customer shall be liable for any accrued charges.
C. Either party may terminate this Agreement by notice in writing
in the event that the other makes an assignment for the benefit of
creditors; or admits in writing an inability to pay debts as they
mature; or a trustee or receiver of the other or of any substantial
part of the other's assets, is appointed by any court; or a proceeding
is instituted under any provision of the Federal Bankruptcy Act by
the other, or against the other, and is acquiesced in or is not dismissed
within 60 days, or results in adjudication in bankruptcy.
12. EXCLUSIVE REMEDIES AND LIMITATIONS OF LIABILITY
A. FOR PURPOSES OF THE EXCLUSIVE REMEDIES AND
LIMITATIONS OF LIABILITY SET FORTH IN THIS SECTION 12, "VELOCITE SYSTEMS"
WILL BE DEEMED TO INCLUDE VELOCITE SYSTEMS, ITS PARENT AND THEIR AFFILIATED
ENTITIES AND THE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES,
SUBCONTRACTORS AND SUPPLIERS OF ALL OF THEM; AND "DAMAGES" WILL BE
DEEMED TO REFER COLLECTIVELY TO ALL INJURY, DAMAGE LOSS OR EXPENSE
INCURRED.
B. VELOCITE SYSTEMS'S ENTIRE LIABILITY AND CUSTOMER'S EXCLUSIVE REMEDIES
AGAINST VELOCITE SYSTEMS FOR LOSS OR DAMAGE ARISING FROM THE PERFORMANCE
OR NONPERFORMANCE OF ANY WORK UNDER THIS AGREEMENT REGARDLESS OF THE
FORM OF ACTION, WHETHER IN CONTRACT, TORT INCLUDING NEGLIGENCE, STRICT
LIABILITY OR OTHERWISE, WILL BE AS FOLLOWS:
- FOR DELAYS IN THE RESPONSE TIMES, VELOCITE
SYSTEMS WILL HAVE NO LIABILITY UNLESS VELOCITE SYSTEMS IS CONSISTENTLY
UNABLE TO MEET THE RESPONSE TIME TARGETS FOR REASONS NOT ATTRIBUTABLE
EITHER TO CUSTOMER OR TO FORCE MAJEURE CONDITIONS (AS DEFINED
IN SECTION 13), IN WHICH CASE CUSTOMER WILL HAVE THE RIGHT, AS
ITS SOLE REMEDY, TO CANCEL THIS AGREEMENT, SUBJECT TO ANY ACCRUED
CHARGES.
- FOR CLAIMS OTHER THAN SET FORTH ABOVE, VELOCITE
SYSTEMS'S LIABILITY FOR IMPROPER PERFORMANCE OR NON-PERFORMANCE
OF ITS OBLIGATIONS PURSUANT TO, OR IN ANY OTHER WAY RELATED TO
THE SUBJECT MATTER OF THIS AGREEMENT, WILL BE LIMITED TO DIRECT
DAMAGES THAT ARE PROVEN OR $100,000 WHICHEVER IS LESS. THE LIMITATION
OF LIABILITY IN THIS SUBPARAGRAPH 12(B)(2) DOES NOT APPLY TO CUSTOMER'S
RIGHT TO RECOVER PROVEN DIRECT DAMAGES TO REAL OR TANGIBLE PERSONAL
PROPERTY OR FOR BODILY INJURY OR DEATH PROXIMATEL CUSTOMER REPRESENTS
THAT IT Y CAUSED BY VELOCITE SYSTEMS. SHALL NOT USE VELOCITE SYSTEMS'S
DELIVERED MATERIALS IN AVIATION, PROCESS CONTROL, MEDICAL APPLICATIONS
OR OTHER ULTRAHAZARDOUS ACTIVITIES AND ACKNOWLEDGES THAT VELOCITE
SYSTEMS SHALL NOT BE RESPONSIBLE FOR ANY PERSONAL INJURY OR PROPERTY
DAMAGE ARISING FROM SUCH ACTIVITIES AND THAT CUSTOMER WILL INDEMNIFY
VELOCITE SYSTEMS FOR ANY LIABILITIES, COSTS OR EXPENSES, INCLUDING
COSTS OF DEFENSE, RESULTING FROM USE OF VELOCITE SYSTEMS DELIVERED
MATERIALS IN SUCH APPLICATIONS.
- NOTWITHSTANDING ANY OTHER PROVISION OF THIS
AGREEMENT, VELOCITE SYSTEMS WILL NOT BE LIABLE FOR INCIDENTAL,
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR FOR LOST PROFITS,
LOST SAVINGS OR LOST REVENUES OF ANY KIND WHATSOEVER, WHETHER
OR NOT VELOCITE SYSTEMS HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.
- ANY LEGAL ACTION AGAINST VELOCITE SYSTEMS
UNDER OR WITH RESPECT TO THIS AGREEMENT OR WITH RESPECT TO ANY
SERVICE CONTRACTED FOR OR FURNISHED UNDER THIS AGREEMENT WILL
BE BARRED UNLESS IT IS COMMENCED WITHIN ONE (1) YEARS AFTER THE
DATE THE CAUSE OF THE ACTION ARISES.
13. FORCE MAJEURE
VELOCITE SYSTEMS will have no liability for damages due to fire; explosion;
lightning; pest damage; power surges or failures; strikes or labor disputes;
water; acts of God; the elements; war; civil disturbances, acts of civil
or military authorities or the public enemy; inability to secure raw
materials, products or transportation facilities; fuel or energy shortages;
acts or omissions of communications carriers; or other causes beyond
VELOCITE SYSTEMS's control, whether or not similar to the foregoing.
14. WORKMANSHIP
The Services to be provided by VELOCITE SYSTEMS under this Agreement
will proceed with diligence and will be executed in accordance with
ordinarily acceptable practices in the field to which the work pertains,
as well as any standards.
15. CHANGES
Customer may request changes in the work being performed under this
Agreement. If VELOCITE SYSTEMS agrees to the change, the change must
be confirmed in writing and signed by authorized representatives of
both parties. A reasonable adjustment will be made if any such change
affects the time of performance or the cost of the work to be performed
under this Agreement. If Customer delays matters in the course of the
work, a commensurate deferral of the due date and/or an adjustment in
the price will occur.
16. PLANT RULES AND SECURITY REQUIREMENTS
The employees and agents of each party will, while on the premises of
the other, comply with all plant rules and regulations in effect at
such premises, including security requirements.
17. PUBLICITY
Customer will not issue or release for publication any articles or advertising
or publicity matter relating to the work performed hereunder or mentioning
or implying the name of VELOCITE SYSTEMS or any of its affiliates or
personnel of the foregoing, unless prior written consent is granted
by VELOCITE SYSTEMS .
18. WARRANTIES
EXCEPT AS SPECIFICALLY MADE HEREIN, VELOCITE SYSTEMS AND ITS AFFILIATED
SUBCONTRACTORS AND SUPPLIERS MAKE NO WARRANTIES, EXPRESS OR IMPLIED,
AND SPECIFICALLY DISCLAIM ANY WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.
19. GENERAL
A. If any paragraph, or clause thereof, of this
Agreement will be held to be invalid or unenforceable in any jurisdiction
in which this Agreement applies, then the meaning of such paragraph
or clause will be construed so as to render it enforceable to the extent
feasible; and if no feasible interpretation would save such paragraph
or clause, it shall be severed from this Agreement and the remainder
will remain in full force and effect. However, in the event such paragraph
or clause is considered an essential element of the Agreement, the Parties
will promptly negotiate a replacement thereof.
B. If either party fails, at any time, to enforce any right or remedy
available to it under this Agreement, that failure will not be construed
to be a waiver of the right or remedy with respect to any other breach
or failure by the other party.
C. The construction, interpretation and performance of this Agreement
will be construed in accordance with and governed by the laws of the
State of Maryland. D.
E. THIS IS THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO
THE SERVICES PROVIDED HEREUNDER AND SUPERSEDES ALL PRIOR AGREEMENTS,
PROPOSALS OR UNDERSTANDINGS, WHETHER WRITTEN OR ORAL.
F. The obligations and agreements of the parties contained in Sections
5, 6, 9, 12, 18 and 19, and the obligations of Customer to pay all fees
and charges incurred under this Agreement will survive the expiration
or termination of the Agreement.
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