Standard Form of Agreement for Design Services TEXT ONLY

8/8/2019 Standard Form of Agreement for Design Services TEXT ONLY

1/45

STANDARD FORM OF AGREEMENT FOR DESIGN SERVICES

Every design project is different and te !est "i## res$#t fro% tr$st !et"eente c#ient and te designer& Te %ost effective "ay to ass$re tr$st %eets!ot c#ient and designer e'pectations in an engage%ent is to codify te

re#ationsip "it a "ritten agree%ent& Te standard agree%ent is adapta!#eto $ni($e circ$%stances "i#e sti## dra"ing fro% te !est proven practices!ased on %$t$a# respect and c#arity& It is a %od$#ar approac tatrecogni)es te different needs and re($ire%ents of different types ofengage%ents&

Introd$ction* AIGA Standard For% of Agree%ent

+e#co%e to te #atest version of te AIGA Standard For% of Agree%ent forDesign Services& If yo$re fa%i#iar "it te previo$s versions, yo$## notice

tat tis one is ($ite different& It does not ta-e a one.si)e.fits.a## approac,and it is not an e'tensive pre.printed doc$%ent "ere yo$ si%p#y fi## in te!#an-s& Instead, it ac-no"#edges tat %ost design fir%s deve#op teir o"nc$sto% proposa# doc$%ent for eac project and are #oo-ing for anappropriate set of ter%s and conditions to attac to it& +en p$t togeterand signed, te c$sto% proposa# doc$%ent and its attaced ter%s andconditions co%prise te !inding agree%ent "it te c#ient&

+it tis in %ind, te ne" foc$s of te AIGA Standard For% of Agree%ent ison tose ter%s and conditions& AIGA %e%!ers are invo#ved in %anydifferent design discip#ines& /eca$se of tis, te reco%%ended ter%s and

conditions ave !een prepared in a %od$#ar for%at& Tis a#so e#ps to -eepindivid$a# agree%ents do"n to a %ore %anagea!#e si)e& Te first t"o%od$#es, /asic Ter%s and Conditions and Inte##ect$a# 0roperty 0rovisions,so$#d !e $sed for a## design assign%ents& An additiona# tree %od$#es areprovided as s$pp#e%ents tat can !e added to te agree%ent as needed*0rint.Specific Ter%s and Conditions, Interactive.Specific Ter%s andConditions and Environ%enta#.Specific Ter%s and Conditions&

Tis ne" for%at for te AIGA Standard For% of Agree%ent for DesignServices "as deve#oped !y a tea% of ind$stry e'perts* Don /r$nsten

1inte##ect$a# property attorney, Don /r$nsten 2 Associates3, 4i% Faris 1co.fo$nder of Te Manage%ent Innovation Gro$p and for%er AIGA nationa#!oard %e%!er3, 5inda 4oy 6att"in-e# 1inte##ect$a# property attorney, O"en,+ic-ersa% 2 Eric-son3, Fran- Martine) 1inte##ect$a# property attorney, TeMartine) Gro$p3 and Se# 0er-ins 1design %anage%ent cons$#tant, for%erAIGA treas$rer and past president of AIGA San Francisco3& It is !eingprovided as a reference to a## AIGA %e%!ers& 7o"ever, tis infor%ation isnot a s$!stit$te for persona#i)ed professiona# advice fro% an attorney& If yo$


2/45

ave specific #ega# ($estions, yo$ so$#d a#"ays see- te services ofappropriate #ega# co$nse#&

7o" to $se it

In genera#, te process of drafting, negotiating and fina#i)ing an agree%ent"it a c#ient "i## fo##o" tis se($ence of activities*

..Advance preparation and infor%ation gatering a!o$t te c#ient and tepotentia# project

.. Interna# p#anning of !$dget and sced$#e

.. Drafting a c$sto% proposa# doc$%ent tat te c#ient "i## see

.. Attacing tese AIGA %od$#es for a## design projects* /asic Ter%s andConditions and Sced$#e A* Inte##ect$a# 0roperty 0rovisions

.. Adding tese AIGA s$pp#e%ents as needed* 0rint.specific Ter%s andConditions, Interactive.specific Ter%s and Conditions, Environ%enta#.specificTer%s and Conditions

.. Revie"ing te fina# AIGA cec-#ist of options in te ter%s and conditions

.. 0resenting te agree%ent to te c#ient and ans"ering any ($estions

.. Negotiating any %odifications re($ested !y te c#ient

.. Fina#i)ing te agree%ent "it a$tori)ed signat$res

Te fo##o"ing pages offer practica# advice on te overa## process and disc$sste i%portant #ega# and financia# iss$es to !e addressed in te 8fine print9 ofany agree%ent& To e#p yo$ "it te jargon invo#ved, !asic e'p#anations of#ega# ter%s are inc#$ded& 7o"ever, tese notes can on#y serve as a !riefintrod$ction to te iss$es invo#ved& Depending on te type of "or- tat yo$do and te si)e of yo$r projects, so%e of te contract$a# iss$es can !eco%e

rater co%p#e'& +en fina#i)ing an agree%ent "it a c#ient, yo$ "i## ofco$rse "ant to ave it revie"ed !y yo$r attorney& +it tat in %ind, tesenotes end "it so%e pointers on o" to find te rigt attorney and %a-ete !est $se of is or er ti%e and e'pertise&

Advance preparation and project p#anning

A proposa# is a detai#ed project doc$%ent tat defines te scope of "or-, te


3/45

process, te sced$#e, and te tota# price 1$s$a##y in te for% of a fi'ed fee3&It is a disc$ssion doc$%ent "ere te designer p$ts for"ard a reco%%endedco$rse of action for te c#ient to consider& Many proposa#s go tro$g severa#ro$nds of canges and negotiations !efore tey are fina#i)ed& So%enegotiations "it te c#ient %ay re#ate to project specifications "i#e oter

disc$ssions %igt foc$s on te #ega# ter%s and conditions& Te fina# goa# isto ave one co%preensive doc$%ent tat, "en acco%panied !y anappropriate set of ter%s and conditions and signed !y !ot parties, servesas yo$r agree%ent for te project&

INITIA5 STE0S FOR :O;

Start "it so%e genera# preparation tat is re#evant to a## of te "or- done!y yo$r fir%*

.. Tin- a!o$t yo$r creative process& +rite do"n te idea# se($ence ofactivities --pases, steps and %i#estones --tat a##o"s yo$ to prod$ce yo$r

!est "or-& If yo$ are active in %ore tan one practice area, yo$ %ay avesevera# variations& :o$r o"n creative process so$#d !e te fra%e"or- tatyo$ $se for p#anning and %anaging projects&

.. Ca#c$#ate a standard o$r#y rate& Tis is an i%portant interna# too# tatyo$ need in order to s-etc o$t initia# !$dgets& Rates vary fro% fir% to fir%!ased on te a%o$nt of overead !eing carried, te n$%!er of o$rsavai#a!#e to devote to c#ient projects and te target profit %argin inc#$ded inte ca#c$#ation& 1A sa%p#e for%at for ca#c$#ating an o$r#y rate can !e fo$nd

in te Grapic Artists G$i#d 7and!oo-* 0ricing and Etica# G$ide#ines&3

.. /eco%e fa%i#iar "it standard ter%s and conditions appropriate to tetype of "or- tat yo$ are se##ing&

No" yo$ can )ero in on te partic$#ar project tat yo$ are !idding on*

.. Gater as %$c infor%ation as possi!#e on te potentia# project& If tec#ient as provided yo$ "it an RF0 doc$%ent 1a re($est for proposa#3,revie" a## of te detai#s caref$##y& /eyond tis, yo$ %ay "ant to co%p#ete

yo$r o"n for% of project ($estionnaire to %a-e s$re tat no i%portantdetai#s are over#oo-ed& Tis %ay invo#ve additiona# disc$ssions "it yo$rc#ient contact and possi!#y oters at te c#ient co%pany in order to #earn%ore&

.. No" yo$re ready to prepare a pre#i%inary project p#an and !$dget& Even

to$g yo$ %ay !e a##ergic to spreadseets, its i%portant to get in te a!it

of $sing an interna# p#anning "or-seet to ca#c$#ate a 8s$ggested retai#9


4/45

price for te project& Tis !a##par- n$%!er as to !e !ased on te scope of"or- re($ired, yo$r o"n step.!y.step design and i%p#e%entation process,te si)e of te tea% tat "i## !e re($ired, an esti%ated n$%!er o$rs foreac tea% %e%!er 1va#$ed at yo$r standard o$r#y rate3 and esti%atedo$tside p$rcases 1inc#$ding a standard %ar-$p3& No" yo$ ave to %a-e a

j$dg%ent ca##* adj$st te tota#s as needed in order to ref#ect %ar-etconditions and te $#ti%ate va#$e of te "or- to te c#ient&

.. :o$## a#so need to draft a pre#i%inary "or- sced$#e tat so"s te

n$%!er of "or- days or "or- "ee-s re($ired 1dont forget to factor in yo$r

prior co%%it%ents to oter c#ients3& A good approac is to do tis as a Ganttcart tat so"s !#oc-s of ti%e and indicates project activities tat canappen conc$rrent#y& +enever possi!#e, its !est to avoid #oc-ing in specific

start dates, approva# dates or co%p#etion dead#ines, !eca$se a## of te% ares$re to cange& Its !etter to p#an te sced$#e in ter%s of te e#apsed ti%e

necessary&

Tis interna# preparation and p#anning as !een j$st for yo$& Te ne't stepis to !egin drafting a doc$%ent tat te c#ient "i## see&

0roposa# doc$%ent

INFORMATION T7AT IS SENT TO T7E C5IENT

+ritten proposa#s inc#$de specific detai#s "ic vary ($ite a !it !ased on teindivid$a# project and te creative fir%& 7o"ever, tere is a fair#y standard

str$ct$re for te proposa# doc$%ent itse#f& Typica# co%ponents inc#$de*

.. An overvie" of te c#ient sit$ation 1teir ind$stry and co%petitiveca##enges3

.. A description of te scope of "or- and specific o!jectives for tis project1te i%%ediate need tat %$st !e addressed and te specific targets tat%$st !e acieved3

.. Te process tat yo$ are reco%%ending 1for eac individ$a# pase, spe##

o$t "at is inc#$ded and "at is not--

descri!e te se($ence of steps, tede#ivera!#es and %i#estones, te n$%!er of creative directions tat yo$ "i##!e so"ing, te n$%!er of revisions or refine%ents tat are inc#$ded, tefor%at for de#ivery, te necessary ti%efra%e and a s$!tota# of fees ande'penses< a#ong te "ay, !e s$re to c#arify te c#ients responsi!i#ities and

e'p#ain o" te c#ient "i## !e integrated into te process3

.. A recap of te tota# ti%efra%e, tota# fees and tota# e'penses 1p#$s any


5/45

app#ica!#e ta'es3

.. A !i##ing p#an 1a si%p#e #ist of invoice a%o$nts and "en tey "i## occ$rd$ring te project --te pay%ent ter%s "i## !e e'p#ained in te ter%s and

conditions3

.. Appropriate ter%s and conditions 1disc$ssed in detai# !e#o"3

.. T"o #ines for a$tori)ed signat$res at te end of te doc$%ent 1s$!%itted!y and accepted !y3

:o$ %ay "ant to inc#$de so%e e'tra ite%s, partic$#ar#y if te c#ients

approva# process invo#ves ro$ting te proposa# to an e'ec$tive "o as not%et yo$*

.. Caps$#e !ios of senior tea% %e%!ers

.. /ac-gro$nd infor%ation on yo$r design fir%s capa!i#ities and yo$r

credentia#s

+en fina#i)ing a proposa# pac-age, a#"ays inc#$de a cover #etter& It "i## !e"ritten #ast& 6eep it sort, professiona# and ent$siastic& Dont repeat any of

te detai#s tat are in te proposa# itse#f& Te #etter is si%p#y an invitation fora fo##o".$p conversation and it so$#d indicate yo$r "i##ingness to $pdate orrevise te scope of "or- if necessary&

Ne't, consider te !est "ay of getting te proposa# pac-age to te c#ient&+enever possi!#e, present it in person& Tis a##o"s yo$ to e'p#ain tecontents, to address any concerns tat te c#ient %igt ave, and to !egin!$i#ding a positive professiona# re#ationsip&

Notes on !asic ter%s and conditions

Tis first %od$#e of te AIGA syste% inc#$des genera# ter%s and conditionstat app#y to a## creative discip#ines, addressing s$c essentia# iss$es aspay%ent ter%s, c#ient canges and portfo#io $sage& Tese sared iss$es are

disc$ssed in detai# !e#o"& So%e descriptions of re#ated concepts are inc#$dedas "e## in order to provide additiona# conte't&

Definitions

I%portant ter%s s$c as 8Agree%ent9 and 8De#ivera!#es9 need to !e $sed ina consistent "ay in !ot te proposa# doc$%ent and te attaced ter%s andconditions& Interna# conf#icts in ter%ino#ogy "i## ca$se conf$sion and "ea-en


6/45

te agree%ent fro% a #ega# standpoint& After a ter% as !een defined, it "i##!e capita#i)ed eac ti%e tat it is $sed&

0roposa#

Te ter%s and conditions so$#d not restate any of te project specificationsa#ready inc#$ded in te !ody of yo$r proposa# doc$%ent, !$t tey so$#dinc#$de an e'piration c#a$se& Tis is a state%ent of o" #ong te $nsignedoffer "i## re%ain va#id& If te c#ient sits on te proposa# for a %ont or t"o,yo$ %ay need to $pdate te doc$%ent to ref#ect canges in yo$r pricing oravai#a!i#ity&

Fees

If yo$ are carging for yo$r services on a fi'ed.fee !asis, te tota# a%o$nt"i## !e specified in te !ody of te proposa#&

Ta'es

Its a good idea to state tat te c#ient is responsi!#e for any app#ica!#e sa#es

or $se ta'es, even if tey are ca#c$#ated after te fact 1for e'a%p#e, d$ring as$!se($ent a$dit of te designers ta' ret$rns3&

E'penses and additiona# costs

Every project "i## invo#ve at #east a fe" e'penses& Tey %ay !e s%a## #i-e

rei%!$rse%ents for potocopies or ta'i rides, or tey %ay !e #arge #i-e tep$rcase of potograpy& :o$ so$#d spe## o$t for te c#ient e'act#y o"project e'penses "i## !e and#ed and "eter or not esti%ated a%o$nts fortose e'penses ave !een inc#$ded in yo$r proposa#& So%e c#ients %ay "antto receive potocopies of receipts for rei%!$rsa!#e e'penses "i#e oters%ay si%p#y re($est te rigt to a$dit yo$r project records if tey ever fee#it=s necessary to do so& It=s not $n$s$a# for a c#ient to re($ire pre.approva# ifa p$rcase e'ceeds a certain a%o$nt& If yo$ are re($esting a %i#eagerei%!$rse%ent for a$to%o!i#e $se, yo$ %ay "ant to $se te standard ratep$!#ised eac year !y te Interna# Reven$e Service 1avai#a!#e at

"""&irs&gov3& In %ost design fir%s, o$t.of.poc-et trave# e'penses forprojects are passed tro$g at cost !$t a## oter e'penses are s$!ject to a%ar-$p& State "at percentage yo$ $se for yo$r standard %ar-$p 1>?percent is co%%on3& If a c#ient "ants to avoid a %ar-$p on a #arge e'pense,consider a##o"ing te% to p$rcase it direct#y& 7o"ever, yo$r fee for services%$st cover te ti%e tat yo$ p$t into vendor so$rcing and ($a#ity contro#&Many design fir%s do not "ant to ta-e on te potentia# #ega# #ia!i#ities of!ro-ering e'pensive tird.party services& If so%eting goes "rong "it a


7/45

tird.party service s$c as printing, it=s %$c safer for te designer if tec#ient %ade te p$rcase direct#y&

Invoices

:o$r sced$#e for project !i##ings so$#d !e stated in te !ody of teproposa#& 0rogress !i##ings can !e !ased on pases or %i#estones, or teycan !e "ee-#y or %ont#y& :o$ %igt a#so "ant to specify tat yo$ "i## printard copies in d$p#icate and send te% via reg$#ar %ai# to te acco$ntspaya!#e address given to yo$ !y te c#ient&

0ay%ent ter%s

+en yo$ send an invoice to a c#ient, f$## pay%ent is d$e "itin a certainn$%!er of days, co$nting fro% te day tat te invoice "as iss$ed& Fore'a%p#e 8Net @?9 %eans tat te c#ient %$st get f$## pay%ent to yo$ "itin@? days& So%e corporate c#ients stretc tis a !it !y saying tat te daysso$#d !e co$nted fro% te date tey receive te invoice& It=s co%%on fordesign fir%s to esta!#is c#ient pay%ent ter%s of 8Net B9 !eca$se c#ientcas %$st !e received in ti%e for te design fir% to pay for re#ated projects$pp#ies p$rcased fro% vendors on ter%s of 8Net @?&9 Re#ated to tis, yo$%ay "ant to p$t a #i%it on te a%o$nt of credit tat yo$ are "i##ing toe'tend to a ne" c#ient& Tis "o$#d !e a j$dg%ent ca## !ased on te c#ient=scredit istory and yo$r o"n financia# needs& :o$ so$#d state tat a project%ay !e p$t on credit o#d if re($ired pay%ents are not %ade&

5ate pay%ent pena#ties

Most design fir%s carge c#ients a #ate fee on overd$e pay%ents& Testandard rate tends to !e &B percent per %ont 1"ic is te e($iva#ent of percent per year3, !$t tere are #ega# #i%its to te rate in so%e states&Separate invoices are not generated for te pena#ty a%o$nts& Instead, teyappear as #ine ite%s on %ont#y state%ents sent to c#ients to re%ind te%of $npaid invoices& +en c#ient pay%ents are received, te f$nds are app#iedfirst to te pena#ty carges, and ten to te $npaid !a#ance on eac openinvoice, starting "it te o#dest&

F$## pay%ent

If yo$ ave agreed tat yo$ "i## !e transferring so%e or a## rigts to yo$rc#ient, yo$ so$#d definite#y %a-e any transfer of rigts contingent $ponreceipt of f$## pay%ent fro% te c#ient for yo$r services&

Canges


8/45

It=s fair#y co%%on for %inor c#ient canges to !e !i##ed on a ti%e.and.%ateria#s !asis, so yo$r standard o$r#y rate1s3 "i## !e #isted ere& :o$%igt a#so "ant to state tat yo$r standard rates "i## not cange "ito$t @?days advance notice to te c#ient& +en a c#ient re($ests additions or

%odifications, yo$ so$#d respond "it a cange order for%& A cange orderis a doc$%ent drafted !y te designer to ac-no"#edge a c#ient re($est tatis o$tside of te origina# scope for te project& Te designer descri!es tea%o$nt of additiona# ti%e and %oney re($ired and sends te cange orderto te c#ient for revie" and an a$tori)ed signat$re& It is essentia##y a %ini.proposa#& :o$=## "ant to reference te origina# proposa# and state tat tesa%e ter%s and conditions "i## app#y& Co%pensation for a cange order can!e ca#c$#ated on a ti%e.and.%ateria#s !asis or as a fi'ed fee& As te "or-invo#ved is co%p#eted, eac cange order so$#d !e invoiced separate#y& If ac#ient re($ests s$!stantia# canges, o"ever, it=s so%eti%es c#eaner and #essconf$sing to start a## over "it a ne" proposa# for te entire project& :o$%ay "ant to define a s$!stantive cange as !eing anyting tat e'ceeds acertain percentage of te origina# sced$#e or !$dget 1s$c as ? percent3 ora certain do##ar a%o$nt 1s$c as ,???3, "icever is greater&

Ti%ing

It=s parado'ica# tat te typica# c#ient "i## negotiate for a very tigt sced$#eyet, in te %idd#e of te project, tat sa%e c#ient %ay ca$se serio$s de#ays!y fai#ing to provide necessary infor%ation, %ateria#s or approva#s& Mostdesign fir%s specify tat if a c#ient ca$ses a #engty de#ay it "i## res$#t in a

day.for.day e'tension of te project=s fina# dead#ine& D$ring tat c#ient de#ay,yo$ %ay a#so ave to reassign so%e of yo$r reso$rces to oter projects, ifyo$ ave any& :o$ %igt ave c#eared te dec-s for te fast.trac- project !yde#aying or t$rning do"n oter assign%ents& Te danger for yo$ as a!$sinessperson is tat an $ne'pected de#ay co$#d %ean tat yo$=rete%porari#y $na!#e to prod$ce !i##a!#e o$rs& To offset tis ris-, so%ecreative fir%s atte%pt to carge a de#ay pena#ty or a restart fee& :o$ %ay"ant to raise tis iss$e as a negotiating point& 7o"ever, %ost c#ients are notvery receptive to te idea&

Testing and acceptance

A## "or- tat yo$ de#iver to te c#ient so$#d !e considered accepted $n#esste c#ient notifies yo$ to te contrary "itin a specified period of ti%e1$s$a##y B.? days3&

C$re


9/45

Re#ated to testing and acceptance is te concept of c$re& If te c#ient notifiesyo$ tat te "or- is not accepta!#e, yo$ so$#d ave te opport$nity toeffect a c$re& Tis %eans to repair, correct or re.design any "or- tat doesnot confor% to te project specifications in order to %a-e it accepta!#e tote c#ient&

C#ient responsi!i#ities

If a c#ient as never p$rcased creative services !efore, tey %ay not !ea"are of o" e'tensive and i%portant teir o"n invo#ve%ent in te process"i## !e& :o$=## "ant to point o$t "at is re($ired of te% in ter%s ofinfor%ation, content, sced$#es, decision.%a-ing and approva#s&

Accreditationpro%otions

Tis as to do "it receiving proper credit for te "or- and !eing a!#e toadd it to yo$r design portfo#io& :o$ so$#d as- for a credit #ine to !e inc#$dedin te "or- itse#f& :o$ so$#d state tat, once te project as !eenco%p#eted and introd$ced to te p$!#ic, yo$ "i## ave te rigt to add tec#ient=s na%e to yo$r c#ient #ist and te rigt to enter te "or- into designco%petitions& :o$=## a#so "ant to !e a!#e to so" and e'p#ain portions of teco%p#eted project to oter co%panies "en yo$ are pitcing ne" !$siness&So%eti%es c#ients "o are in ig#y co%petitive ind$stries ave concernsa!o$t tis& Tey %ay as- for te rigt to revie" and approve s$cpro%otiona# activity on a case.!y.case !asis& If yo$ ave #icensed te fina#art to te c#ient rater tan %a-ing a f$## assign%ent of rigts, and te "or-

does not fa## "itin te category of "or-.for.ire 1defined !e#o"3, yo$ are#ega##y entit#ed to so" te "or- in yo$r portfo#io& As a professiona# co$rtesy,o"ever, yo$ "i## "ant to !e sensitive to c#ient concerns& 1For %oreinfor%ation a!o$t o"nersip and #icensing, see Sced$#e A* Inte##ect$a#0roperty 0rovisions&3

Confidentia# infor%ation

In order for tese ter%s and conditions to !e co%p#ete and co%preensive,confidentia#ity so$#d !e inc#$ded ere even if yo$=ve a#ready signed a

separate confidentia#ity and non.disc#os$re agree%ent 1peraps d$ring yo$rvery first %eeting "it te c#ient3& Depending on te type of "or- tat yo$do, yo$ %ay "ant confidentia#ity and non.disc#os$re to !e %$t$a# so tatyo$r o"n proprietary infor%ation is protected as "e##&

Re#ationsip of te parties

:o$r agree%ent so$#d reiterate te fact tat yo$ are not an e%p#oyee of


10/45

yo$r c#ient and yo$ are not for%ing a joint vent$re or partnersip "it te%&As an o$tside s$pp#ier of services, yo$ are f$nctioning as an independentcontractor& :o$ "i## a#so "ant te a!i#ity to !ring in yo$r o"n assistants oragents as needed&

+or- %ade for ire

Disc$ssions "it yo$r c#ient a!o$t independent contractor stat$s and a!o$to"nersip and $se of project de#ivera!#es are so%eti%es co%p#icated !yconf$sion over te re#ated concept of "or-.for.ire& Tis prase co%es fro%;&S& copyrigt #a"& It refers to origina# "or- %ade !y an e%p#oyee "itinte scope of is or er jo!, in "ic copyrigt o"nersip a$to%atica##y!e#ongs to te e%p#oyer& 7o"ever, it can a#so refer to origina# "or- %ade !yan independent contractor or a design fir%, in "ic copyrigt o"nersip%igt a$to%atica##y !e#ong to te c#ient& Tis is on#y tr$e if te "or- %eetsvery specific criteria--it %$st !e specia##y ordered or co%%issioned, and it

%$st fa## "itin one of nine categories*

.. A contri!$tion to a co##ective "or- 1s$c as a %aga)ine, an anto#ogy oran encyc#opedia3

.. A "or- tat is part of a %otion pict$re or oter a$diovis$a# "or- 1s$c asa "e!site or %$#ti%edia project3

.. A trans#ation

.. A s$pp#e%ent prepared as an adj$nct to a "or- created !y anoter a$tor1s$c as a fore"ord, an appendi' or carts3

.. A co%pi#ation 1a ne" arrange%ent of pre.e'isting "or-s, s$c as acata#og3

.. An instr$ctiona# te't 1"eter it is #iterary, pictoria# or grapic3

.. A test

.. Ans"er %ateria# for a test

.. An at#as

A#so, a "ritten agree%ent %$st !e signed !y !ot parties saying tat it is a"or- %ade for ire& If te project doesn=t %eet a## of tese criteria, "or-.for.ire does not app#y& Copyrigt "i## !e#ong to yo$ $n#ess yo$ assign it toyo$r c#ient& 1More infor%ation a!o$t copyrigt is avai#a!#e in te capter


11/45

8G$ide to Copyrigt,9 page , and direct#y fro% te ;&S& Copyrigt Office at"""&copyrigt&gov&3

No so#icitation

It doesn=t appen very often, !$t so%eti%es a c#ient is so p#eased "it te"or- of a partic$#ar %e%!er of te designer=s tea% tat tey "i## see- toesta!#is a direct re#ationsip "it i% or er& So%e peop#e refer to tis as8cerry pic-ing&9 If a c#ient recr$its one of yo$r tea% %e%!ers a"ay fro%yo$, yo$ so$#d at #east !e entit#ed to a p#ace%ent fee for aving %ade teintrod$ction& /eyond tat, yo$ so$#d a#so consider te i%pact on yo$roperations& If yo$r %ost e'perienced and prod$ctive tea% %e%!er is no#onger avai#a!#e, yo$r !$siness %ay !e da%aged !y te $ne'pectedinterr$ption to yo$r activities&

No e'c#$sivity

:o$ %ay "ant to add tat te re#ationsip !et"een yo$ and te c#ient is notan e'c#$sive one& :o$ se## services to a range of c#ients and so%e of te%%ay !e co%petitors& If a co%pany "ants to !e yo$r on#y c#ient in apartic$#ar category, yo$r pricing "i## ave to ref#ect tat& An e'c#$sivere#ationsip "o$#d re($ire yo$ to t$rn do"n projects fro% si%i#ar fir%s&7iger rates are necessary in order to offset tat #ost !$siness&

+arranties and representations

A "arranty is a pro%ise in a contract& It is a "ritten g$arantee tat tes$!ject of te agree%ent is as represented& As a designer, yo$ %igt"arrant tat yo$r "or- is free fro% defective "or-%ansip or tat it isorigina# and does not infringe te inte##ect$a# property of oters& If so%eportion of te "or- t$rns o$t to !e defective 1for e'a%p#e, a pro!#e% "itso%e #ine of c$sto% co%p$ter code in an interactive project3 ten it is yo$rresponsi!i#ity to repair or rep#ace it& 5ega# iss$es re#ated to origina#ity can !ea !it %ore ca##enging& :o$ can on#y infringe a copyrigt if yo$ -no"ing#ycopy so%eone e#se=s "or-& 7o"ever, trade%ar-, trade dress and patentrigts can !e infringed even if yo$ create yo$r "or- independent#y& T$s, it=s

!est to #i%it yo$r "arranty of non.infringe%ent to 8te !est of yo$r-no"#edge&9 If yo$ are going to provide a g$arantee of non.infringe%ent"ito$t s$c #i%itation, ten at so%e ti%e !efore te end of te project afor%a# searc so$#d !e cond$cted to deter%ine "eter or not yo$r "or-inadvertent#y rese%!#es a tird party=s trade%ar- or patent 18prior art93& It=s!est to p#ace responsi!i#ity for tis type of prior art searc on te c#ient& Ifyo$ agree to arrange for te searc, ten yo$r sced$#e and !$dget for teproject %$st inc#$de te iring of an attorney or #ega# service to act$a##y


12/45

carry it o$t& It=s !est for "arranties and representations to !e reciproca#& Tec#ient so$#d %a-e te sa%e pro%ises to yo$ for any project co%ponentstat tey s$pp#y&

Infringe%ent

Infringe%ent is te $na$tori)ed $se of so%eone e#se=s inte##ect$a# property&It is te opposite of see-ing and receiving per%ission, $sing correct notice ofo"nersip, and contracting for pay%ent of a roya#ty or fee& Even to$g teinfringe%ent %ay !e accidenta# 1yo$ %ay independent#y create a #ogo foryo$r c#ient tat #oo-s #i-e so%eone e#se=s trade%ar-3, tere %ay !einfringe%ent #ia!i#ity, and te infringer %ay !e responsi!#e for payings$!stantia# da%ages and stopping te $se of te infringing "or-&

Disc#ai%er of "arranties and $se of A55 CA0S

If an agree%ent inc#$des a disc#ai%er of any "arranty, %any states re($ire!y #a" tat te disc#ai%er #ang$age !e s$fficient#y 8conspic$o$s9 in tedoc$%ent& It needs to stand o$t in s$c a "ay tat any reasona!#econs$%er "o$#d notice it& Tis $s$a##y %eans tat te disc#ai%er %$st !eprinted in a## capita# #etters, or in type tat is #arger or in a contrasting co#or&If yo$ do not fo##o" tese g$ide#ines, yo$ r$n te ris- of %a-ing tedisc#ai%er inva#id&

Inde%nification

In te event tat yo$ !reac any "arranty tat yo$ ave given, yo$ agree toprovide sec$rity against any $rt, #oss or da%age tat %igt occ$r& :o$"o$#d ave to %a-e te c#ient 8"o#e9 !y giving te% so%eting e($a# to"at tey ave #ost or protecting te% fro% any j$dg%ents or da%ages tat%igt ave to !e paid to tird parties, a#ong "it attorney=s fees& Fore'a%p#e, yo$ %igt !e as-ed to provide inde%nity against tird.partyinfringe%ent c#ai%s& At te sa%e ti%e, o"ever, yo$ need to ave te c#ientinde%nify yo$ against any !reac of "arranties tat tey ave %ade&Inde%nification is a very i%portant iss$e for designers !eca$se te scope ofpotentia# #ia!i#ity can !e considera!#e&

5ia!i#ity

5ia!i#ity %eans #ega# responsi!i#ity for te conse($ences of yo$r acts oro%issions& :o$r acco$nta!i#ity to te c#ient %ay !e enforced !y civi#re%edies or cri%ina# pena#ties& For e'a%p#e, a "e! deve#oper "o asagreed in "riting to co%p#ete an e.co%%erce site !y a specific date "i## ave#ia!i#ity to te c#ient if te project is not co%p#eted on ti%e&


13/45

5i%itations on #ia!i#ity and $se of A55 CA0S

Again, if an agree%ent inc#$des a #i%itation on #ia!i#ity, %any states re($ire!y #a" tat te #i%itation #ang$age !e s$fficient#y 8conspic$o$s9 in te

doc$%ent& It needs to stand o$t in s$c a "ay tat any reasona!#econs$%er "o$#d notice it& Tis $s$a##y %eans tat te #i%itation %$st !eprinted in a## capita# #etters, or in type tat is #arger or in a contrasting co#or&If yo$ do not fo##o" tese g$ide#ines, yo$ r$n te ris- of %a-ing te#i%itation inva#id& It=s s%art for a designer to as- a c#ient to agree tat tey%ay not recover any da%ages fro% yo$ in e'cess of te tota# a%o$nt of%oney agreed to in te proposa#& +i#e it=s possi!#e for yo$ to #i%it tea%o$nt tat eac of yo$ %igt o"e to te oter in tis "ay, yo$ so$#d -eepin %ind tat yo$ cannot contract a"ay te rigts of any tird party to %a-ea c#ai%&

Re%edy

A re%edy is te #ega# reco$rse avai#a!#e to an inj$red party& It %ay !estip$#ated in an agree%ent or a co$rt %ay order it& A re%edy %igt re($iretat a certain act !e perfor%ed or proi!ited, or it %igt invo#ve tepay%ent of %oney&

Da%ages

Da%ages are financia# co%pensation for #oss or inj$ry s$ffered !y a p#aintiff

1te person s$ing3& Te a%o$nt of %oney a"arded in a #a"s$it can varygreat#y& Tere are severa# different categories of da%ages, inc#$ding tefo##o"ing* act$a# da%ages, s$c as #oss of %oney d$e on a contract< genera#da%ages, "ic are %ore s$!jective and %igt re#ate to #oss of rep$tationor anticipated !$siness< and p$nitive da%ages, "ic %ay !e a"arded if tedefendant acted in a fra$d$#ent "ay&

Ter% and ter%ination

Te nor%a# ter% of a project "i## !egin "it te signing of a "ritten

agree%ent and end "it te c#ient=s acceptance of yo$r co%p#eted services&If so%eting appens in te %eanti%e to %a-e cance##ation necessary, teagree%ent %$st descri!e in advance te process for doing tat, fro%notification tro$g ca#c$#ation of yo$r fina# invoice& Tat fina# !i##ing %igtcover ti%e and %ateria#s for act$a# services perfor%ed tro$g te date ofcance##ation, or it %igt !e a #$%p.s$% cance##ation fee, or peraps aco%!ination of te t"o& Cance##ation a#so raises ($estions a!o$t o"nersipof te $nfinised "or-& Typica##y te designer "i## retain a## pre#i%inary art,


14/45

inc#$ding any st$dies and co%ps a#ready rejected !y te c#ient, "i#e tec#ient %igt receive te %ost recent approved version of te "or- inprocess&

Genera# ite%s

Most of te #ega# iss$es addressed in tis section of te ter%s and conditionsare fair#y se#f.e'p#anatory& 7o"ever, te fo##o"ing infor%ation %ay !ee#pf$#&

Force %aje$re

Tis is a Frenc ter% tat %eans 8s$perior force&9 It refers to any event oreffect tat cannot !e reasona!#y anticipated or contro##ed& If s$c an eventocc$rs 1for e'a%p#e, a "ar, a #a!or stri-e, e'tre%e "eater or aneart($a-e3 it %ay de#ay or ter%inate te project "ito$t p$tting tedesigner or c#ient at fa$#t&

Governing #a"

Tis as to do "it j$risdiction& :o$ %$st identify te state "ose #a"s "i##govern te signed agree%ent& :o$r c#ient "i## $s$a##y re($est te state"ere teir %ain office is #ocated&

Disp$te reso#$tion

Tere are tree standard types of disp$te reso#$tion& 7ere is a !riefdescription of eac one*

.. Mediation is a non.!inding intervention !et"een parties in an infor%a#setting in order to pro%ote reso#$tion of a disp$te& It invo#ves te activeparticipation of a tird party 1a %ediator3 "o faci#itates disc$ssion in orderto c#arify iss$es, find points of agree%ent and enco$rage cooperation& Aco%%it%ent to %ediation is often inc#$ded in contracts& Tere areprofessiona# %ediators and #a"yers "o offer %ediation services&

.. Te ne't step !eyond %ediation is ar!itration, in "ic an i%partia# tirdparty 1an ar!itrator3 ears !ot sides of te disp$te in an o$t.of.co$rtsetting& Te ar!itrator is an attorney "o acts %$c #i-e a j$dge, #istening to!ot sides of te story !$t not active#y participating in disc$ssion& :o$ andyo$r opponent "i## ave te opport$nity to present evidence and "itnesses&After earing te facts, te ar!itrator "i## %a-e a decision& In yo$r contract,yo$ "i## specify "eter te decision of te ar!itrator is !inding or non.!inding& /inding ar!itration i%poses a #ega# o!#igation on te parties to a!ide


15/45

!y te decision and accept it as fina#& Ar!itration proceedings are e#d in anatte%pt to avoid a co$rt tria#& 7o"ever, contract.re($ired ar!itration %ay#ater !e converted into a #ega# j$dg%ent on petition to te co$rt& Te feesinvo#ved %igt !e #arge 1depending on te disp$te, tey co$#d easi#y rangefro% @,??? to >?,??? or %ore3, !$t $s$a##y tey are #ess tan tose

invo#ved in p$rs$ing a #a"s$it& For te sa-e of convenience, %any contractsidentify a #arge, nationa# ar!itration service to !e $sed in te event of adisp$te& 7o"ever, it %ay !e prefera!#e for yo$ to rep#ace tis nationa# na%e"it a #oca# na%e, partic$#ar#y if yo$ can find a service tat is geared to"ardte arts&

.. 5itigation %eans tat yo$ are p$rs$ing a #a"s$it tro$g te co$rt syste%in order to reso#ve a disp$te& Te ti%e and e'pense invo#ved %ay !econsidera!#e&

Attorneys= fees

+en a decision as !een reaced concerning a disp$te, eiter tro$gar!itration or #itigation, te #osing side %ay !e #ia!#e to pay te "inningside=s costs and attorneys= fees& ;nder copyrigt #a", a "inning p#aintiff isentit#ed to recover is or er attorneys= fees if te copyrigt "as registered!efore te infringe%ent occ$rred& For oter types of #ia!i#ity, te o!#igationto pay te prevai#ing party=s #ega# e'penses %$st !e esta!#ised in yo$rcontract&

Notes on sced$#e A* Inte##ect$a# property provisions

Every designer prod$ces origina# "or- tat is covered !y copyrigtprotection, and additiona# "or- tat co$#d possi!#y !e registered $ndertrade%ar- or patent #a"s& /eca$se of tis, every design contract needs toaddress te iss$es of o"nersip and $sage of inte##ect$a# property& Tesecan !e negotiated in a variety "ays, !ased on te nat$re of te "or- andte specific needs of te c#ient&

0re#i%inary art vers$s fina# art

Tere is an i%portant distinction to !e %ade !et"een pre#i%inary and fina#art& Ear#y in eac project, a designer %ay prod$ce a #ot of disc$ssion%ateria#s 1s$c as s-etces, ro$g #ayo$ts, vis$a#i)ations or co%ps3& Teseare prepared so#e#y for te p$rpose of de%onstrating an idea or a %essageto te c#ient for acceptance& Nor%a##y te c#ient does not receive #ega# tit#e toor per%anent possession of tese ite%s, so it=s i%portant for yo$r contractto !e c#ear on tis point& Many pre#i%inary concepts "i## #ater !e %odified orrejected entire#y& ;s$a##y on#y one concept "i## !e ta-en tro$g to


16/45

co%p#etion and it is on#y te approved and finised fina# art tat "i## !ede#ivered to te c#ient&

Tird.party %ateria#s

If inte##ect$a# property o"ned !y a tird party is to !e $sed in a project 1fore'a%p#e, an i##$stration or a potograp3, te designer so$#d state tat tec#ient is responsi!#e for respecting any $sage #i%itations p#aced on teproperty& :o$ %ay even "ant te c#ient to negotiate $sage rigts "it tetird party and %a-e pay%ents direct#y to te%&

Trade%ar-s

Iss$es re#ated to trade%ar-s are disc$ssed in te "arranties andinfringe%ent sections a!ove&

Designer too#s

Tis dea#s "it te iss$e of !ac-gro$nd tecno#ogy& If any code tat isproprietary to te designer is necessary to deve#op, r$n, disp#ay or $se tefina# de#ivera!#es, ten te designer needs to retain o"nersip of it "i#egranting a non.e'c#$sive #icense for te c#ient to copy and $se it& Tis "ayyo$ can $se tat sa%e tecno#ogy on any oter c#ients= projects&

5icense

A #icense is a #i%ited grant !y a designer to a c#ient of rigts to $se teinte##ect$a# property co%prising te fina# art in a specified "ay&

Scope of #icense

Te e'tent of te #icense tat yo$ grant "i## vary !ased on te type of "or-invo#ved& Te rigts %ay !e #i%ited to $se on certain prod$cts, in partic$#ar%edia, in a certain territory, andor for a specified ti%e period& Oter !asic#i%itations inc#$de "eter or not yo$ "i## a##o" te c#ient to %odify yo$r"or- in any "ay, or to t$rn aro$nd and #icense te "or- to a tird party

"ito$t yo$r per%ission& If te c#ient #ater decides tat tey need additiona#rigts, tey "i## ave to co%e !ac- to yo$, renegotiate and pay additiona#fees&

E'c#$sive #icense

If a #icense is e'c#$sive it %eans tat even to$g yo$ ave retainedo"nersip of te "or-, yo$ "i## not !e giving per%ission to anyone e#se to


17/45

$se it& Tis %eans tat yo$ "i## not !e a!#e to generate additiona# #icensinginco%e fro% oter so$rces& /eca$se of tis, designers need to negotiateiger prices for e'c#$sive #icenses&

5i($idation for $n#icensed $se

+en #icensing rigts, yo$ %ay "ant to consider agreeing in advance on tea%o$nt of da%ages tat "o$#d !e paya!#e !y te c#ient $pon a !reac ofcontract& Tese are ca##ed #i($idated da%ages& At so%e point in te f$t$re,te c#ient %ay !e te%pted to e'ceed te origina# scope of te #icense tatyo$ ave granted& Instead of co%ing !ac- and renegotiating "it yo$ astey so$#d, tey %igt j$st !egin $n#icensed $sage& 1It=s a ca##enge tat isfaced a## te ti%e !y stoc- potograpy !$sinesses and i##$strators&3 Sinceyo$ can=t -no" in advance te e'tent of te act$a# da%ages tat "o$#d !eca$sed !y te $n#icensed $sage, te a%o$nt of %oney to !e paid isca#c$#ated as a %$#tip#e of te origina# contract price 1@?? percent isco%%on3& An agree%ent on #i($idated da%ages can e#p to avoid potentia##a"s$its and serve as an incentive for te c#ient not to e'ceed te scope ofte #icense& 7o"ever, yo$=## "ant to "eig yo$r oter options caref$##y& If yo$reserve te rigt to s$e for !reac of contract or infringe%ent, it=sconceiva!#e tat te a%o$nt of %oney a"arded to yo$ in a #a"s$it co$#d !eiger&

Assign%ent of rigts

An assign%ent is a f$## transfer of inte##ect$a# property rigts to yo$r c#ient&

It %igt inc#$de copyrigt, patent, trade%ar-, trade dress or oter types ofinte##ect$a# property& For e'a%p#e, "en a ne" corporate identity isdeve#oped and so#d to a c#ient, te sa#e typica##y inc#$des an assign%ent ofa## rigts& Te c#ient "i## go on to co%p#ete ;&S& and internationa# registrationof copyrigt, trade%ar-, patent and oter rigts in its o"n na%e& Designersso$#d carge a iger fee for any project tat invo#ves a f$## assign%ent ofrigts&

Notes on s$pp#e%ents

/eyond te !asic iss$es disc$ssed a!ove, additiona# #ang$age %ay !eneeded in te agree%ent to c#arify iss$es tat are specific to a partic$#ardesign discip#ine& For e'a%p#e, "e! deve#opers ave partic$#ar concerns tatare different fro% tose of pac-aging designers& O$t of te %any possi!#evariations, "e ave foc$sed in on tree areas tat "e fee# "i## !e %ostre#evant to te %ajority of AIGA %e%!ers& Most of te ite%s in tes$pp#e%ents are fair#y se#f.e'p#anatory& 7o"ever, te fo##o"ing infor%ation%ay !e e#pf$#&


18/45

S;005EMENT * 0RINT.S0ECIFIC TERMS AND CONDITIONS

Sa%p#es

:o$ "i## "ant to specify te n$%!er of printed sa%p#es to !e provided toyo$&

Finised "or-

In te printing ind$stry, it=s not $n$s$a# to enco$nter s#igt variations ofspecifications or %ateria#s 1for e'a%p#e, s$!stit$tion of a co%para!#e paperstoc- d$e to #i%ited avai#a!i#ity3 as "e## as a variance of p#$s or %in$s ?percent on te fina#, de#ivered ($antity& Tese so$#d !e considered nor%a#and accepta!#e& M$c %ore infor%ation is avai#a!#e a!o$t standard tradepractices in te printing ind$stry fro% organi)ations s$c as te 0IA 10rintingInd$stries of A%erica3 and te Grapic Arts Tecnica# Fo$ndation&

S;005EMENT >* INTERACTIVE.S0ECIFIC TERMS AND CONDITIONS

S$pport services

If yo$=re !idding on a "e!site and te scope of services descri!ed in yo$rproposa# inc#$des testing, osting andor %aintenance, yo$ are ta-ing onadditiona# #ega# responsi!i#ities tat need to !e descri!ed in te agree%ent&Try to #i%it any additiona# #ia!i#ity as %$c as possi!#e& On a## interactive

projects, yo$=## "ant to !e very specific a!o$t o" %$c s$pport or%aintenance yo$ "i## provide after de#ivery, and "eter or not toseservices "i## !e !i##ed in addition to te origina# contract price&

Co%p#iance "it #a"s

Section B? of te +or-force Invest%ent Act of is of partic$#ari%portance to $ser interface designers as "e## as soft"are and ard"aredeve#opers& Tis #a" re($ires e#ectronic and infor%ation tecno#ogyp$rcased !y te ;&S& govern%ent to !e accessi!#e for peop#e "it

disa!i#ities& It sets accessi!i#ity and $sa!i#ity re($ire%ents for any "e!sites,video e($ip%ent, -ios-s, co%p$ters, copiers, fa' %acines and te #i-e tat%ay !e proc$red !y te govern%ent, tere!y essentia##y affecting a## s$cprod$cts in te A%erican %ar-et& 1Te ;nited 6ingdo% and 4apan ave a#sop$t accessi!i#ity g$ide#ines into p#ace&3

S;005EMENT @* ENVIRONMENTA5.S0ECIFIC TERMS AND CONDITIONS


19/45

0otograps of te project

After co%p#etion of an environ%enta#@.D project 1s$c as a signagesyste%, a trade so" !oot, a retai# interior or an e'i!it3 yo$ need terigt to potograp te res$#t& Tis invo#ves !eing a!#e to access it and ta-e

yo$r potograps $nder opti%a# circ$%stances&

Additiona# c#ient responsi!i#ities

Environ%enta# design projects often re($ire vario$s types of govern%entapprova#, s$c as !$i#ding per%its or )oning revie"s& /e s$re to state tatte c#ient is responsi!#e for tese&

Engineering and i%p#e%entation

:o$ "i## !e providing specifications for %ateria#s and constr$ction detai#s tat"i## !e interpreted !y oter professiona#s, s$c as arcitects, engineers andcontractors& Typica##y te c#ient "i## contract and pay for s$ci%p#e%entation services direct#y& :o$r agree%ent so$#d inc#$de a disc#ai%ertat yo$ are not #icensed in tose fie#ds and tat responsi!i#ity for te($a#ity, safety, ti%e#iness and cost of s$c "or- is te responsi!i#ity of tec#ient and te arcitect, engineer or contractor invo#ved& Te c#ient so$#dinde%nify yo$ against any c#ai%s in tis regard&

Co%p#iance "it #a"s

:o$r project %ay !e s$!ject to te A%ericans "it Disa!i#ities Act 1ADA3,"ic is a civi# rigts act tat affects private !$sinesses as "e## asgovern%enta# organi)ations& ADA re($ire%ents are of partic$#ar i%portanceto ind$stria# designers, interior designers and arcitects&

C#ient ins$rance

As- yo$r c#ient to provide yo$ "it proof tat tey ave ade($ate ins$rancecoverage in p#ace for te d$ration of te project 1one %i##ion do##ars is aco%%on %ini%$% a%o$nt3&

Fina# cec-#ist

/efore yo$ send te draft agree%ent to te c#ient, #oo- tro$g it one %oreti%e for ($a#ity contro# p$rposes& In te ter%s and conditions pages, tereare severa# !#an-s tat need to !e fi##ed in and so%e very i%portant optionsneed to !e se#ected&


20/45

/asic Ter%s and Conditions

>& N$%!er of days tat te $nsigned proposa# "i## re%ain va#id&

@&> Standard %ar-$p percentage for e'penses 1and peraps standard rate

for %i#eage rei%!$rse%ent3&

@&H N$%!er of days a##o"ed for pay%ent of invoices&

H& 7o$r#y !i##ing rate to !e $sed for genera# c#ient canges&

H&> 0ercentage of origina# project sced$#e or !$dget tat "i## !e $sed todeter%ine "eter or not canges are s$!stantive instead of genera#&

>&B Na%e of state identified for governing #a"&

>& Identify "ic s$pp#e%ents are attaced, if any&

5ast Add yo$r na%e, signat$re and date&

Sced$#e A* Inte##ect$a# 0roperty 0rovisions

Coose on#y one of tese tree options*

I0 >&A 13 1a3 and I0 >&

.. A #icense for #i%ited $sage, c#ient %ay not %odify te "or-&

.. Indicate "eter it is for print, interactive or environ%enta#&

.. Descri!e te category, %edi$%, d$ration, territory and si)e of initia# pressr$n&

.. Indicate "eter te #icense is e'c#$sive or none'c#$sive&

I0 >&A 13 1!3 and I0 >&>

.. A #icense for $n#i%ited $sage, c#ient %ay not %odify te "or-&

.. Indicate "eter it is for print, interactive or environ%enta#@.D&

.. 1Tis #icense is e'c#$sive&3


21/45

I0 >&A 13 1c3 and I0 >&@

.. A #icense for $n#i%ited $sage, c#ient %ay %odify te "or-&

.. Indicate "eter it is for print, interactive or environ%enta#@.D&

.. 1Tis #icense is e'c#$sive&3

And, "it any of te tree options a!ove, !e s$re to inc#$de te fo##o"ing#i($idation c#a$se j$st in case te c#ient #ater e'ceeds te $sage rigts tatyo$ ave granted*

I0 >&A 1>3 and I0 >&H

Fi## in te percentage tat "i## !e $sed to ca#c$#ate te a%o$nt of additiona#co%pensation&

Or s-ip a## of te a!ove and go direct#y to*

I0 >&/ and >&B

Tis assigns a## rigts to te c#ient, "it no #i%itations&

S$pp#e%ent * 0rint.specific Ter%s and Conditions

0 & Enter te n$%!er of printed sa%p#es tat yo$ "ant to receive&

S$pp#e%ent >* Interactive.specific Ter%s and Conditions

I & Enter te n$%!er of %onts in te "arranty period and enter ten$%!er of s$pport o$rs to !e provided at no additiona# cost&

I &> Enter te n$%!er of %onts in te %aintenance period and enterte f#at fee to !e carged per %ont, or te o$r#y !i##ing rate for%aintenance&

S$pp#e%ent @* Environ%enta#.specific Ter%s and Conditions

@D & Ins$rance re($ire%ent for te c#ient* enter a do##ar a%o$nt&

Negotiating

0resent te draft agree%ent to te c#ient in person, if possi!#e, so tat yo$


22/45

can e'p#ain te contents and ans"er any ($estions& Don=t !e s$rprised iftey as- for %odifications or additiona# ite%s to !e inc#$ded& 7ere are so%eof te iss$es tat %ay co%e $p*

0ricing

Often te initia# c#ient response "i## !e to as- for a #o"er price& It=s !est foryo$ to avoid getting into a disc$ssion of standard o$r#y rates& Disc$ss tescope of "or- instead& Foc$s on te %ain o!jectives& Can portions of teproject !e sca#ed !ac-.. Are tere co%ponents tat can !e !ro-en o$t as#ater projects.. Red$cing te scope of "or- "i## red$ce te overa## price&

Deposits

+enever possi!#e, yo$ so$#d as- for a deposit at te !eginning of aproject& Tere are different approaces to tis& So%e designers app#y tedeposit to te first progress !i##ing 1%a-ing it essentia##y a pre.pay%ent ofpase 3& Oters state tat te deposit "i## !e e#d $nti# te end of projectand app#ied to te fina# !i##ing& If tat=s te case, point o$t tat no interest"i## !e paid "i#e it is !eing e#d& If te project is cance##ed, te deposit "i##!e ref$nded #ess any a%o$nts d$e to te designer&

0rod$ct #ia!i#ity

If yo$ are "or-ing on te deve#op%ent of a prod$ct tat "i## event$a##y !eso#d to te p$!#ic, tis "i## !e an i%portant iss$e& :o$r c#ient %ay as- to

ave it inc#$ded in te agree%ent& 0rod$ct #ia!i#ity refers to te #ega#responsi!i#ity of prod$ct designers, %an$fact$rers, distri!$tors and se##ers tode#iver prod$cts to te p$!#ic tat are free of any defects tat co$#d ar%peop#e& If a prod$ct is defective, te p$rcaser "i## pro!a!#y s$e te se##er,"o %ay ten !ring te distri!$tor or %an$fact$rer or prod$ct designer intote #a"s$it& Any one of te parties %ay !e #ia!#e for da%ages or %ay aveto contri!$te to"ard a j$dg%ent&

Designer ins$rance

5arge c#ients often specify %ini%$% ins$rance #eve#s for te designer=s!$siness& Standard !$siness re($ire%ents inc#$de genera# #ia!i#ity, "or-ersco%p and a$to%o!i#e coverage& In addition, yo$ %ay need to carryprofessiona# #ia!i#ity ins$rance to cover s$c tings as inte##ect$a# propertyinfringe%ent or errors and o%issions& :o$=## need to ana#y)e yo$r o"n needsin tis area and do so%e researc "it an independent ins$rance agent&Certain types of professiona# #ia!i#ity coverage %ay !e #i%ited in scope andrater e'pensive& If designer ins$rance re($ire%ents are added to te


23/45

agree%ent, yo$ %$st provide proof of coverage in te for% of a certificate ofins$rance tat is sent fro% yo$r ins$rance agent direct#y to te c#ient&

ADDEND;M TO T7E AGREEMENT

Tere are t"o "ays to record te canges tat res$#t fro% yo$r negotiations"it te c#ient& Te %ost direct is to go !ac- into te !ody of te agree%entand cange te origina# #ang$age& Tis is, in fact, "at yo$ so$#d do for a##canges tat re#ate to te scope and specifications in te proposa# doc$%entat te front of te agree%ent& 7o"ever, tings can !eco%e ($ite conf$sing ifyo$ start to re"rite te attaced ter%s and conditions& It is so%eti%es!etter to #ist negotiated canges to te ter%s and conditions on a separateseet, ca##ed an addend$%& Te addend$% %$st c#ear#y descri!e e'act#y"at is !eing canged and it %$st not create any contradictions ora%!ig$ities& If yo$ do yo$ go !ac- into te origina# ter%s and conditions and%a-e te canges direct#y, ten yo$ %$st !e ca$tio$s "en yo$ are draftingyo$r ne't c#ient agree%ent& If yo$=re in a $rry, it=s a## too easy to copy te%odified ter%s !y %ista-e& /e s$re tat yo$ a#"ays go !ac- to te standard#ang$age and not yo$r %ost recent adaptation& Te origina# te't %$st a#"ays!e yo$r starting point--oter"ise yo$ can stray ($ite far fro% te origina#

intent&

NEGOTIATING 4;ST ONCE FOR T7E ENTIRE RE5ATIONS7I0

Ter%s and conditions can !e negotiated separate#y for eac and everyproject, or tey can !e negotiated j$st once for te entire re#ationsip& If yo$

start "it a co%p#ete set and state tat it "i## app#y to a## projects, tenf$t$re proposa#s can j$st refer !ac- to it& Tis can save on paper"or-, ti%eand #ega# e'penses for !ot yo$ and yo$r c#ient&

Finding and "or-ing "it an attorney

It can !e a ca##enge to find te rigt attorney and to $se is or er ti%e inan efficient "ay& Most attorneys specia#i)e in a sing#e category of #a", s$cas rea# estate or #a!or #a"& As a creative professiona#, yo$ need to find anattorney "o specia#i)es in iss$es re#ated to inte##ect$a# property

1copyrigts, trade%ar-s, patents, trade secrets and %ora# rigts3& Attorneysare #icensed state !y state, so yo$ need to find one in yo$r o"n area& Startyo$r searc !y visiting tese on#ine directories*

.. Vo#$nteer 5a"yers for te Arts """&v#any&org 1A nonprofit #isting of #ega#reso$rces for artists in >B states in te ;nited States, p#$s Canada andA$stra#ia3


24/45

.. Martinda#e.7$!!e## """a"yers&co% 1A co%%ercia# directory of ;&S& andCanadian attorneys tat yo$ can searc !y specia#ty and #ocation3

.. Find5a" """&find#a"&co% 1A searca!#e co%%ercia# data!ase ofattorneys, a#ong "it artic#es on vario$s #ega# topics3

It=s a good idea to #oo- for an attorney "o as oter designers as c#ients&Spea- "it esta!#ised %e%!ers of yo$r o"n design co%%$nity--one of

te% %ay !e a!#e to provide yo$ "it a #oca# reco%%endation& See- o$t anappropriate attorney "en yo$ are first esta!#ising yo$r !$siness& Gettingpreventative advice on !asic iss$es is %$c !etter tan "aiting $nti# yo$=rea#ready in so%e sort of #ega# diffic$#ty&

Initia# disco$nts are so%eti%es avai#a!#e tro$g gro$ps s$c as Vo#$nteer5a"yers for te Arts, !$t in genera# #ega# services are not ine'pensive&

Attorneys %ay carge a f#at fee for assisting "it certain !asic transactionss$c as setting $p an 55C, !$t for te %ost part services are !i##ed on ati%e.and.%ateria#s !asis& For tis reason, yo$ need to !e efficient in te "aytat yo$ interact& Ma-e te !est $se of yo$r attorney=s ti%e !y !eing very"e## prepared& /ring copies of any correspondence tat yo$ ave a#readyreceived fro% or sent to te c#ient& Gater sa%p#e doc$%ents fro% yo$rind$stry and !eco%e fa%i#iar "it te !asic #ega# iss$es re#evant to tecreative services tat yo$ offer& :o$ %ay !e a!#e to $se one of tesereference doc$%ents as a draft for f$rter disc$ssion "it yo$r attorney& /eco%p#ete#y onest and as- ($estions a!o$t anyting tat is not c#ear to yo$&Togeter yo$ "i## ten craft a fina# version to send to yo$r c#ient&

If yo$r c#ient is a s%a## !$siness, tey %ay respond "it so%e !asic($estions tat yo$ "i## ave no tro$!#e ans"ering& +it #arge c#ients to$g,yo$ %ay find tat yo$r doc$%ent is ro$ted to an in.o$se #ega# depart%ent&If ($estions co%e to yo$ fro% an in.o$se attorney, consider aving tatperson negotiate te fine points direct#y "it yo$r o"n #a"yer& If te in.o$se co$nse# is a specia#ist in so%e oter area of #a", yo$r inte##ect$a#property attorney can e'p#ain te conte't for te agree%ent #ang$age tatyo$ are re($esting& Attorney.to.attorney negotiation creates additiona#e'pense, !$t if te res$#ting ter%s and conditions can !e accepted as te

!asis of an ongoing re#ationsip, ten yo$ "on=t ave to go tro$g teprocess a second ti%e&

Ten add te appropriate te't %od$#es fro% AIGA

0repare in yo$r o"n sty#e 2 for%at

/asic Ter%s and Conditions p#$s Inte##ect$a# 0roperty 0rovisions


25/45

S$pp#e%enta# ter%s for specific discip#ines as needed

0roposa# contents*

Overvie", O!jectives, 0rocess, Mi#estones, Fees, E'penses, +or- sced$#e,/i##ing sced$#e, Signat$re #ines, Cover #etter

/asic Ter%s and Conditions

& DEFINITIONS

As $sed erein and tro$go$t tis Agree%ent*

& Agree%ent %eans te entire content of tis /asic Ter%s and Conditionsdoc$%ent, te 0roposa# doc$%ent1s3, Sced$#e A, togeter "it any oterS$pp#e%ents designated !e#o", togeter "it any e'i!its, sced$#es orattac%ents ereto&

&> C#ient Content %eans a## %ateria#s, infor%ation, potograpy, "ritingsand oter creative content provided !y C#ient for $se in te preparation ofandor incorporation in te De#ivera!#es&

&@ Copyrigts %eans te property rigts in origina# "or-s of a$torsip,e'pressed in a tangi!#e %edi$% of e'pression, as defined and enforcea!#e$nder ;&S& Copyrigt 5a"&

&H De#ivera!#es %eans te services and "or- prod$ct specified in te0roposa# to !e de#ivered !y Designer to C#ient, in te for% and %ediaspecified in te 0roposa#&

&B Designer Too#s %eans a## design too#s deve#oped andor $ti#i)ed !yDesigner in perfor%ing te Services, inc#$ding "ito$t #i%itation pre.e'istingand ne"#y deve#oped soft"are inc#$ding so$rce code, +e! a$toring too#s,type fonts, and app#ication too#s, togeter "it any oter soft"are, or oterinventions "eter or not patenta!#e, and genera# non.copyrigta!#e

concepts s$c as "e!site design, arcitect$re, #ayo$t, navigationa# andf$nctiona# e#e%ents&

& Fina# Art %eans a## creative content deve#oped or created !y Designer,or co%%issioned !y Designer, e'c#$sive#y for te 0roject and incorporatedinto and de#ivered as part of te Fina# De#ivera!#es, inc#$ding and !y "ay ofe'a%p#e, not #i%itation, any and a## vis$a# designs, vis$a# e#e%ents, grapicdesign, i##$stration, potograpy, ani%ation, so$nds, typograpic treat%ents


26/45

and te't, %odifications to C#ient Content, and Designer=s se#ection,arrange%ent and coordination of s$c e#e%ents togeter "it C#ient Contentandor Tird 0arty Materia#s&

& Fina# De#ivera!#es %eans te fina# versions of De#ivera!#es provided !y

Designer and accepted !y C#ient&

& 0re#i%inary +or-s %eans a## art"or- inc#$ding, !$t not #i%ited to,concepts, s-etces, vis$a# presentations, or oter a#ternate or pre#i%inarydesigns and doc$%ents deve#oped !y Designer and "ic %ay or %ay not!e so"n and or de#ivered to C#ient for consideration !$t do not for% part ofte Fina# Art&

& 0roject %eans te scope and p$rpose of te C#ient=s identified $sage ofte "or- prod$ct as descri!ed in te 0roposa#&

&? Services %eans a## services and te "or- prod$ct to !e provided toC#ient !y Designer as descri!ed and oter"ise f$rter defined in te0roposa#&

& Tird 0arty Materia#s %eans proprietary tird party %ateria#s "ic areincorporated into te Fina# De#ivera!#es, inc#$ding "ito$t #i%itation stoc-potograpy or i##$stration&

&> Trade%ar-s %eans trade na%es, "ords, sy%!o#s, designs, #ogos oroter devices or designs $sed in te Fina# De#ivera!#es to designate te

origin or so$rce of te goods or services of C#ient&

>& 0RO0OSA5

Te ter%s of te 0roposa# sa## !e effective for JJJJJJJ days afterpresentation to C#ient& In te event tis Agree%ent is not e'ec$ted !y C#ient"itin te ti%e identified, te 0roposa#, togeter "it any re#ated ter%s andconditions and de#ivera!#es, %ay !e s$!ject to a%end%ent, cange ors$!stit$tion&

@& FEES AND C7ARGES

@& Fees& In consideration of te Services to !e perfor%ed !y Designer,C#ient sa## pay to Designer fees in te a%o$nts and according to tepay%ent sced$#e set fort in te 0roposa#, and a## app#ica!#e sa#es, $se orva#$e added ta'es, even if ca#c$#ated or assessed s$!se($ent to tepay%ent sced$#e&


27/45

@&> E'penses& C#ient sa## pay Designer=s e'penses inc$rred in connection"it tis Agree%ent as fo##o"s* 1a3 incidenta# and o$t.of.poc-et e'pensesinc#$ding !$t not #i%ited to costs for te#epone ca##s, postage, sipping,overnigt co$rier, service !$rea$s, typesetting, !#$eprints, %ode#s,presentation %ateria#s, potocopies, co%p$ter e'penses, par-ing fees and

to##s, and ta'is at cost p#$s Designer=s standard %ar-$p of JJJJJJJJJJJpercent 1JJJK3, and, if app#ica!#e, a %i#eage rei%!$rse%ent at JJJJJ per%i#e< and 1!3 trave# e'penses inc#$ding transportation, %ea#s, and #odging,inc$rred !y Designer "it C#ient=s prior approva#&

@&@ Additiona# Costs& Te 0roject pricing inc#$des Designer=s fee on#y&Any anda## o$tside costs inc#$ding, !$t not #i%ited to, e($ip%ent renta#,potograper=s costs and fees, potograpy andor art"or- #icenses,prototype prod$ction costs, ta#ent fees, %$sic #icenses and on#ine access orosting fees, "i## !e !i##ed to C#ient $n#ess specifica##y oter"ise provided forin te 0roposa#&

@&H Invoices& A## invoices are paya!#e "itin JJJJJJJJ 1JJ3 days of receipt&A %ont#y service carge of &B percent 1or te greatest a%o$nt a##o"ed !ystate #a"3 is paya!#e on a## overd$e !a#ances& 0ay%ents "i## !e credited firstto #ate pay%ent carges and ne't to te $npaid !a#ance& C#ient sa## !eresponsi!#e for a## co##ection or #ega# fees necessitated !y #ateness or defa$#tin pay%ent& Designer reserves te rigt to "ito#d de#ivery and anytransfer of o"nersip of any c$rrent "or- if acco$nts are not c$rrent oroverd$e invoices are not paid in f$##& A## grants of any #icense to $se or

transfer of o"nersip of any inte##ect$a# property rigts $nder tisAgree%ent are conditioned $pon receipt of pay%ent in f$## "ic sa## !einc#$sive of any and a## o$tstanding Additiona# Costs, Ta'es, E'penses, andFees, Carges, or te costs of Canges&

H& C7ANGES

H& Genera# Canges& ;n#ess oter"ise provided in te 0roposa#, and e'cept

as oter"ise provided for erein, C#ient sa## pay additiona# carges forcanges re($ested !y C#ient "ic are o$tside te scope of te Services ona ti%e and %ateria#s !asis, at Designer=s standard o$r#y rate of JJJJJJJper o$r& S$c carges sa## !e in addition to a## oter a%o$nts paya!#e$nder te 0roposa#, despite any %a'i%$% !$dget, contract price or fina#price identified terein& Designer %ay e'tend or %odify any de#iverysced$#e or dead#ines in te 0roposa# and De#ivera!#es as %ay !e re($ired!y s$c Canges&


28/45

H&> S$!stantive Canges& If C#ient re($ests or instr$cts Canges tata%o$nt to a revision in or near e'cess of JJJJ percent 1JJJJK3 of te ti%ere($ired to prod$ce te De#ivera!#es, and or te va#$e or scope of te

Services, Designer sa## !e entit#ed to s$!%it a ne" and separate 0roposa#to C#ient for "ritten approva#& +or- sa## not !egin on te revised services$nti# a f$##y signed revised 0roposa# and, if re($ired, any additiona# retainerfees are received !y Designer&

H&@ Ti%ing& Designer "i## prioriti)e perfor%ance of te Services as %ay !enecessary or as identified in te 0roposa#, and "i## $nderta-e co%%ercia##yreasona!#e efforts to perfor% te Services "itin te ti%e1s3 identified in te0roposa#& C#ient agrees to revie" De#ivera!#es "itin te ti%e identified fors$c revie"s and to pro%pt#y eiter, 1i3 approve te De#ivera!#es in "ritingor 1ii3 provide "ritten co%%ents andor corrections s$fficient to identify teC#ient=s concerns, o!jections or corrections to Designer& Te Designer sa##!e entit#ed to re($est "ritten c#arification of any concern, o!jection orcorrection& C#ient ac-no"#edges and agrees tat Designer=s a!i#ity to %eetany and a## sced$#es is entire#y dependent $pon C#ient=s pro%ptperfor%ance of its o!#igations to provide %ateria#s and "ritten approva#sandor instr$ctions p$rs$ant to te 0roposa# and tat any de#ays in C#ient=sperfor%ance or Canges in te Services or De#ivera!#es re($ested !y C#ient%ay de#ay de#ivery of te De#ivera!#es& Any s$c de#ay ca$sed !y C#ient sa##not constit$te a !reac of any ter%, condition or Designer=s o!#igations

$nder tis Agree%ent&

H&H Testing and Acceptance& Designer "i## e'ercise co%%ercia##y reasona!#eefforts to test De#ivera!#es re($iring testing and to %a-e a## necessarycorrections prior to providing De#ivera!#es to C#ient& C#ient, "itin five 1B3!$siness days of receipt of eac De#ivera!#e, sa## notify Designer, in "riting,of any fai#$re of s$c De#ivera!#e to co%p#y "it te specifications set fortin te 0roposa#, or of any oter o!jections, corrections, canges ora%end%ents C#ient "ises %ade to s$c De#ivera!#e& Any s$c "ritten

notice sa## !e s$fficient to identify "it c#arity any o!jection, correction orcange or a%end%ent, and Designer "i## $nderta-e to %a-e te sa%e in aco%%ercia##y ti%e#y %anner& Any and a## o!jections, corrections, canges ora%end%ents sa## !e s$!ject to te ter%s and conditions of tis Agree%ent&In te a!sence of s$c notice fro% C#ient, te De#ivera!#e sa## !e dee%edaccepted&


29/45

B& C5IENT RES0ONSI/I5ITIES

C#ient ac-no"#edges tat it sa## !e responsi!#e for perfor%ing te fo##o"ingin a reasona!#e and ti%e#y %anner*

1a3 coordination of any decision.%a-ing "it parties oter tan teDesigner Designer Agents& Designer sa## !e per%itted to engage andor $se tirdparty designers or oter service providers as independent contractors inconnection "it te Services 18Design Agents93& Not"itstanding, Designersa## re%ain f$##y responsi!#e for s$c Design Agents= co%p#iance "it tevario$s ter%s and conditions of tis Agree%ent&

&@ No So#icitation& D$ring te ter% of tis Agree%ent, and for a period of

si' 13 %onts after e'piration or ter%ination of tis Agree%ent, C#ientagrees not to so#icit, recr$it, engage or oter"ise e%p#oy or retain, on a f$##.ti%e, part.ti%e, cons$#ting, "or-.for.ire or any oter -ind of !asis, anyDesigner, e%p#oyee or Design Agent of Designer, "eter or not said personas !een assigned to perfor% tas-s $nder tis Agree%ent& In te event s$ce%p#oy%ent, cons$#tation or "or-.for.ire event occ$rs, C#ient agrees tatDesigner sa## !e entit#ed to an agency co%%ission to !e te greater of,eiter 1a3 >B percent of said person=s starting sa#ary "it C#ient, or 1!3 >B


31/45

percent of fees paid to said person if engaged !y C#ient as an independentcontractor& In te event of 1a3 a!ove, pay%ent of te co%%ission "i## !e d$e"itin @? days of te e%p#oy%ent starting date& In te event of 1!3 a!ove,pay%ent "i## !e d$e at te end of any %ont d$ring "ic te independentcontractor perfor%ed services for C#ient& Designer, in te event of

nonpay%ent and in connection "it tis section, sa## !e entit#ed to see- a##re%edies $nder #a" and e($ity&

&H No E'c#$sivity& Te parties e'press#y ac-no"#edge tat tis Agree%entdoes not create an e'c#$sive re#ationsip !et"een te parties& C#ient is freeto engage oters to perfor% services of te sa%e or si%i#ar nat$re to toseprovided !y Designer, and Designer sa## !e entit#ed to offer and providedesign services to oters, so#icit oter c#ients and oter"ise advertise teservices offered !y Designer&

& +ARRANTIES AND RE0RESENTATIONS

& /y C#ient& C#ient represents, "arrants and covenants to Designer tat 1a3C#ient o"ns a## rigt, tit#e, and interest in, or oter"ise as f$## rigt anda$tority to per%it te $se of te C#ient Content, 1!3 to te !est of C#ient=s-no"#edge, te C#ient Content does not infringe te rigts of any tird party,and $se of te C#ient Content as "e## as any Trade%ar-s in connection "itte 0roject does not and "i## not vio#ate te rigts of any tird parties, 1c3C#ient sa## co%p#y "it te ter%s and conditions of any #icensingagree%ents "ic govern te $se of Tird 0arty Materia#s, and 1d3 C#ientsa## co%p#y "it a## #a"s and reg$#ations as tey re#ate to te Services and

De#ivera!#es&

&> /y Designer

1a3 Designer ere!y represents, "arrants and covenants to C#ient tatDesigner "i## provide te Services identified in te Agree%ent in aprofessiona# and "or-%an#i-e %anner and in accordance "it a## reasona!#eprofessiona# standards for s$c services&

1!3 Designer f$rter represents, "arrants and covenants to C#ient tat 1i3

e'cept for Tird 0arty Materia#s and C#ient Content, te Fina# De#ivera!#essa## !e te origina# "or- of Designer andor its independent contractors, 1ii3in te event tat te Fina# De#ivera!#es inc#$de te "or- of independentcontractors co%%issioned for te 0roject !y Designer, Designer sa## avesec$re agree%ents fro% s$c contractors granting a## necessary rigts, tit#e,and interest in and to te Fina# De#ivera!#es s$fficient for Designer to grantte inte##ect$a# property rigts provided in tis Agree%ent, and 1iii3 to te!est of Designer=s -no"#edge, te Fina# Art provided !y Designer and


32/45

Designer=s s$!contractors does not infringe te rigts of any party, and $seof sa%e in connection "it te 0roject "i## not vio#ate te rigts of any tirdparties& In te event C#ient or tird parties %odify or oter"ise $se teDe#ivera!#es o$tside of te scope or for any p$rpose not identified in te0roposa# or tis Agree%ent or contrary to te ter%s and conditions noted

erein, a## representations and "arranties of Designer sa## !e void&

1c3 ELCE0T FOR T7E EL0RESS RE0RESENTATIONS AND +ARRANTIESSTATED IN T7IS AGREEMENT, DESIGNER MA6ES NO +ARRANTIES+7ATSOEVER& DESIGNER EL05ICIT5: DISC5AIMS AN: OT7ER +ARRANTIESOF AN: 6IND, EIT7ER EL0RESS OR IM05IED, INC5;DING /;T NOT 5IMITEDTO +ARRANTIES OF MERC7ANTA/I5IT: OR FITNESS FOR A 0ARTIC;5AR0;R0OSE OR COM05IANCE +IT7 5A+S OR GOVERNMENT R;5ES ORREG;5ATIONS A005ICA/5E TO T7E 0RO4ECT&

?& INDEMNIFICATION5IA/I5IT:

?& /y C#ient& C#ient agrees to inde%nify, save and o#d ar%#ess Designerfro% any and a## da%ages, #ia!i#ities, costs, #osses or e'penses arising o$t ofany c#ai%, de%and, or action !y a tird party arising o$t of any !reac ofC#ient=s responsi!i#ities or o!#igations, representations or "arranties $ndertis Agree%ent& ;nder s$c circ$%stances Designer sa## pro%pt#y notifyC#ient in "riting of any c#ai% or s$it< 1a3 C#ient as so#e contro# of tedefense and a## re#ated sett#e%ent negotiations< and 1!3 Designer providesC#ient "it co%%ercia##y reasona!#e assistance, infor%ation and a$toritynecessary to perfor% C#ient=s o!#igations $nder tis section& C#ient "i##

rei%!$rse te reasona!#e o$t.of.poc-et e'penses inc$rred !y Designer inproviding s$c assistance&

?&> /y Designer& S$!ject to te ter%s, conditions, e'press representationsand "arranties provided in tis Agree%ent, Designer agrees to inde%nify,save and o#d ar%#ess C#ient fro% any and a## da%ages, #ia!i#ities, costs,#osses or e'penses arising o$t of any finding of fact "ic is inconsistent"it Designer=s representations and "arranties %ade erein, e'cept in teevent any s$c c#ai%s, da%ages, #ia!i#ities, costs, #osses or e'penses arisedirect#y as a res$#t of gross neg#igence or %iscond$ct of C#ient provided tat

1a3 C#ient pro%pt#y notifies Designer in "riting of te c#ai%< 1!3 Designersa## ave so#e contro# of te defense and a## re#ated sett#e%entnegotiations< and 1c3 C#ient sa## provide Designer "it te assistance,infor%ation and a$tority necessary to perfor% Designer=s o!#igations $ndertis section& Not"itstanding te foregoing, Designer sa## ave noo!#igation to defend or oter"ise inde%nify C#ient for any c#ai% or adversefinding of fact arising o$t of or d$e to C#ient Content, any $na$tori)edcontent, i%proper or i##ega# $se, or te fai#$re to $pdate or %aintain any


33/45

De#ivera!#es provided !y Designer&

?&@ 5i%itation of 5ia!i#ity& T7E SERVICES AND T7E +OR6 0ROD;CT OFDESIGNER ARE SO5D 8AS IS&9 IN A55 CIRC;MSTANCES, T7E MALIM;M5IA/I5IT: OF DESIGNER, ITS DIRECTORS, OFFICERS, EM05O:EES, DESIGN

AGENTS AND AFFI5IATES 18DESIGNER 0ARTIES93, TO C5IENT FOR DAMAGESFOR AN: AND A55 CA;SES +7ATSOEVER, AND C5IENT=S MALIM;MREMED:, REGARD5ESS OF T7E FORM OF ACTION, +7ET7ER IN CONTRACT,TORT OR OT7ER+ISE, S7A55 /E 5IMITED TO T7E NET 0ROFIT OFDESIGNER& IN NO EVENT S7A55 DESIGNER /E 5IA/5E FOR AN: 5OST DATAOR CONTENT, 5OST 0ROFITS, /;SINESS INTERR;0TION OR FOR AN:INDIRECT, INCIDENTA5, S0ECIA5, CONSE;ENTIA5, ELEM05AR: OR0;NITIVE DAMAGES ARISING O;T OF OR RE5ATING TO T7E MATERIA5S ORT7E SERVICES 0ROVIDED /: DESIGNER, EVEN IF DESIGNER 7AS /EENADVISED OF T7E 0OSSI/I5IT: OF S;C7 DAMAGES, ANDNOT+IT7STANDING T7E FAI5;RE OF ESSENTIA5 0;R0OSE OF AN: 5IMITEDREMED:&

& TERM AND TERMINATION

& Tis Agree%ent sa## co%%ence $pon te Effective Date and sa##re%ain effective $nti# te Services are co%p#eted and de#ivered&

&> Tis Agree%ent %ay !e ter%inated at any ti%e !y eiter partyeffective i%%ediate#y $pon notice, or te %$t$a# agree%ent of te parties,or if any party*

1a3 !eco%es inso#vent, fi#es a petition in !an-r$ptcy, %a-es an assign%entfor te !enefit of its creditors< or

1!3 !reaces any of its %ateria# responsi!i#ities or o!#igations $nder tisAgree%ent, "ic !reac is not re%edied "itin ten 1?3 days fro% receiptof "ritten notice of s$c !reac&

&@ In te event of ter%ination, Designer sa## !e co%pensated for te

Services perfor%ed tro$g te date of ter%ination in te a%o$nt of 1a3 anyadvance pay%ent, 1!3 a prorated portion of te fees d$e, or 1c3 o$r#y feesfor "or- perfor%ed !y Designer or Designer=s agents as of te date ofter%ination, "icever is greater< and C#ient sa## pay a## E'penses, fees,o$t of poc-ets togeter "it any Additiona# Costs inc$rred tro$g and $pto, te date of cance##ation&

&H In te event of ter%ination !y C#ient and $pon f$## pay%ent of


34/45

co%pensation as provided erein, Designer grants to C#ient s$c rigt andtit#e as provided for in Sced$#e A of tis Agree%ent "it respect to toseDe#ivera!#es provided to, and accepted !y C#ient as of te date ofter%ination&

&B ;pon e'piration or ter%ination of tis Agree%ent* 1a3 eac party sa##ret$rn or, at te disc#osing party=s re($est, destroy te Confidentia#Infor%ation of te oter party, and 1!3 oter tan as provided erein, a##rigts and o!#igations of eac party $nder tis Agree%ent, e'c#$sive of teServices, sa## s$rvive&

>& GENERA5

>& Modification+aiver& Tis Agree%ent %ay !e %odified !y te parties&Any %odification of tis Agree%ent %$st !e in "riting, e'cept tatDesigner=s invoices %ay inc#$de, and C#ient sa## pay, e'penses or costs tatC#ient a$tori)es !y e#ectronic %ai# in cases of e'tre%e ti%e sensitivity&Fai#$re !y eiter party to enforce any rigt or see- to re%edy any !reac$nder tis Agree%ent sa## not !e constr$ed as a "aiver of s$c rigts norsa## a "aiver !y eiter party of defa$#t in one or %ore instances !econstr$ed as constit$ting a contin$ing "aiver or as a "aiver of any oter!reac&

>&> Notices& A## notices to !e given ere$nder sa## !e trans%itted in"riting eiter !y facsi%i#e or e#ectronic %ai# "it ret$rn confir%ation ofreceipt or !y certified or registered %ai#, ret$rn receipt re($ested, and sa##

!e sent to te addresses identified !e#o", $n#ess notification of cange ofaddress is given in "riting& Notice sa## !e effective $pon receipt or in tecase of fa' or e%ai#, $pon confir%ation of receipt&

>&@ No Assign%ent& Neiter party %ay assign, "eter in "riting or ora##y,or enc$%!er its rigts or o!#igations $nder tis Agree%ent or per%it tesa%e to !e transferred, assigned or enc$%!ered !y operation of #a" oroter"ise, "ito$t te prior "ritten consent of te oter party&

>&H Force Maje$re& Designer sa## not !e dee%ed in !reac of tis

Agree%ent if Designer is $na!#e to co%p#ete te Services or any portiontereof !y reason of fire, eart($a-e, #a!or disp$te, act of God or p$!#icene%y, deat, i##ness or incapacity of Designer or any #oca#, state, federa#,nationa# or internationa# #a", govern%enta# order or reg$#ation or any oterevent !eyond Designer=s contro# 1co##ective#y, 8Force Maje$re Event93& ;ponocc$rrence of any Force Maje$re Event, Designer sa## give notice to C#ientof its ina!i#ity to perfor% or of de#ay in co%p#eting te Services and sa##propose revisions to te sced$#e for co%p#etion of te Services&


35/45

>&B Governing 5a" and Disp$te Reso#$tion& Te for%ation, constr$ction,perfor%ance and enforce%ent of tis Agree%ent sa## !e in accordance "itte #a"s of te ;nited States and te state of JJJJJJJJJJJJJJJJJJJJJ

"ito$t regard to its conf#ict of #a" provisions or te conf#ict of #a"provisions of any oter j$risdiction& In te event of a disp$te arising o$t oftis Agree%ent, te parties agree to atte%pt to reso#ve any disp$te !ynegotiation !et"een te parties& If tey are $na!#e to reso#ve te disp$te,eiter party %ay co%%ence %ediation andor !inding ar!itration tro$gte A%erican Ar!itration Association, or oter for$% %$t$a##y agreed to !yte parties& Te prevai#ing party in any disp$te reso#ved !y !indingar!itration or #itigation sa## !e entit#ed to recover its attorneys= fees andcosts& In a## oter circ$%stances, te parties specifica##y consent to te #oca#,state and federa# co$rts #ocated in te state of JJJJJJJJJJJJJJJJJJJJJ&Te parties ere!y "aive any j$risdictiona# or ven$e defenses avai#a!#e tote% and f$rter consent to service of process !y %ai#& C#ient ac-no"#edgestat Designer "i## ave no ade($ate re%edy at #a" in te event C#ient $seste de#ivera!#es in any "ay not per%itted ere$nder, and ere!y agrees tatDesigner sa## !e entit#ed to e($ita!#e re#ief !y "ay of te%porary andper%anent inj$nction, and s$c oter and f$rter re#ief at #a" or e($ity asany ar!itrator or co$rt of co%petent j$risdiction %ay dee% j$st and proper,in addition to any and a## oter re%edies provided for erein&

>& Severa!i#ity& +enever possi!#e, eac provision of tis Agree%ent sa##

!e interpreted in s$c %anner as to !e effective and va#id $nder app#ica!#e#a", !$t if any provision of tis Agree%ent is e#d inva#id or $nenforcea!#e,te re%ainder of tis Agree%ent sa## neverte#ess re%ain in f$## force andeffect and te inva#id or $nenforcea!#e provision sa## !e rep#aced !y a va#idor enforcea!#e provision&

>& 7eadings& Te n$%!ering and captions of te vario$s sections areso#e#y for convenience and reference on#y and sa## not affect te scope,%eaning, intent or interpretation of te provisions of tis Agree%ent norsa## s$c eadings oter"ise !e given any #ega# effect&

>& Integration& Tis Agree%ent co%prises te entire $nderstanding of teparties ereto on te s$!ject %atter erein contained, and s$persedes and%erges a## prior and conte%poraneo$s agree%ents, $nderstandings anddisc$ssions !et"een te parties re#ating to te s$!ject %atter of tisAgree%ent& In te event of a conf#ict !et"een te 0roposa# and any oterAgree%ent doc$%ents, te ter%s of te 0roposa# sa## contro#& TisAgree%ent co%prises tis /asic Ter%s and Conditions doc$%ent, te


36/45

0roposa#, Sced$#e A, and te fo##o"ing doc$%ents as indicated !y teparties= initia#s*

JJJJ JJJJ S$pp#e%ent * 0rint.specific Ter%s and Conditions

JJJJ JJJJ S$pp#e%ent >* Interactive.specific Ter%s and Conditions

JJJJ JJJJ S$pp#e%ent @* Environ%enta#.specific Ter%s and Conditions

/y teir e'ec$tion !e#o", te parties ereto ave agreed to a## of te ter%sand conditions of tis Agree%ent effective as of te #ast date of signat$re!e#o", and eac signatory represents tat it as te f$## a$tority to enterinto tis Agree%ent and to !ind eris respective party to a## of te ter%sand conditions erein&

DESIGNER*

Designer na%e

Address

Signed* JJJJJJJJJJJJJJJJJJJJJJJJJJJ

Date* JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

C5IENT*

C#ient na%e

Address

Signed* JJJJJJJJJJJJJJJJJJJJJJJJJJ

/y* C#ient officer na%e

Tit#e* JJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

Date* JJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

@

Sced$#e A* Inte##ect$a# 0roperty 0rovisions

I0 & RIG7TS TO DE5IVERA/5ES OT7ER T7AN FINA5 ART


37/45

I0 & C#ient Content& C#ient Content, inc#$ding a## pre.e'istingTrade%ar-s, sa## re%ain te so#e property of C#ient or its respectives$pp#iers, and C#ient or its s$pp#iers sa## !e te so#e o"ner of a## rigts inconnection tere"it& C#ient ere!y grants to Designer a none'c#$sive,

nontransfera!#e #icense to $se, reprod$ce, %odify, disp#ay and p$!#is teC#ient Content so#e#y in connection "it Designer=s perfor%ance of teServices and #i%ited pro%otiona# $ses of te De#ivera!#es as a$tori)ed intis Agree%ent&

I0 &> Tird 0arty Materia#s& A## Tird 0arty Materia#s are te e'c#$sive

property of teir respective o"ners& Designer sa## infor% C#ient

of a## Tird 0arty Materia#s tat %ay !e re($ired to perfor% te Services oroter"ise integrated into te Fina# Art& ;nder s$c circ$%stances Designersa## infor% C#ient of any need to #icense, at C#ient=s e'pense, and $n#essoter"ise provided for !y C#ient, C#ient sa## o!tain te #icense1s3 necessaryto per%it C#ient=s $se of te Tird 0arty Materia#s consistent "it te $sagerigts granted erein& In te event C#ient fai#s to proper#y sec$re oroter"ise arrange for any necessary #icenses or instr$cts te $se of Tird0arty Materia#s, C#ient ere!y inde%nifies, saves and o#ds ar%#essDesigner fro% any and a## da%ages, #ia!i#ities, costs, #osses or e'pensesarising o$t of any c#ai%, de%and, or action !y a tird party arising o$t ofC#ient=s fai#$re to o!tain copyrigt, trade%ar-, p$!#icity, privacy, defa%ationor oter re#eases or per%issions "it respect to %ateria#s inc#$ded in te

Fina# Art&

I0 &@ 0re#i%inary +or-s& Designer retains a## rigts in and to a##0re#i%inary +or-s& C#ient sa## ret$rn a## 0re#i%inary +or-s to Designer"itin tirty 1@?3 days of co%p#etion of te Services and a## rigts in and toany 0re#i%inary +or-s sa## re%ain te e'c#$sive property of Designer&

I0 &H Origina# Art"or-& Designer retains a## rigt and tit#e in and to anyorigina# art"or- co%prising Fina# Art, inc#$ding a## rigts to disp#ay or se##s$c art"or-& C#ient sa## ret$rn a## origina# art"or- to Designer "itin tirty

1@?3 days of co%p#etion of te Services&

I0 &B Trade%ar-s& ;pon co%p#etion of te Services and e'press#yconditioned $pon f$## pay%ent of a## fees, costs and o$t.of.poc-et e'pensesd$e, Designer assigns to C#ient a## o"nersip rigts, inc#$ding anycopyrigts, in and to any art"or-s or designs co%prising te "or-s created!y Designer for $se !y C#ient as a Trade%ar-& Designer sa## cooperate "itC#ient and sa## e'ec$te any additiona# doc$%ents reasona!#y re($ested !y


38/45

C#ient to evidence s$c assign%ent& C#ient sa## ave so#e responsi!i#ity forens$ring tat any proposed trade%ar-s or Fina# De#ivera!#es intended to !ea Trade%ar- are avai#a!#e for $se in co%%erce and federa# registration anddo not oter"ise infringe te rigts of any tird party& C#ient ere!yinde%nifies, saves and o#ds ar%#ess Designer fro% any and a## da%ages,

#ia!i#ities, costs, #osses or e'penses arising o$t of any c#ai%, de%and, oraction !y any tird party a##eging any infringe%ent arising o$t of C#ient=s $seandor fai#$re to o!tain rigts to $se or $se of te Trade%ar-&

I0 & Designer Too#s& A## Designer Too#s are and sa## re%ain te e'c#$siveproperty of Designer& Designer ere!y grants to C#ient a none'c#$sive,nontransfera!#e 1oter tan te rigt to s$!#icense s$c $ses to C#ient=s "e!osting or internet service providers3, perpet$a#, "or#d"ide #icense to $sete Designer Too#s so#e#y to te e'tent necessary "it te Fina# De#ivera!#esfor te 0roject& C#ient %ay not direct#y or indirect#y, in any for% or %anner,deco%pi#e, reverse engineer, create derivative "or-s or oter"isedisasse%!#e or %odify any Designer Too#s co%prising any soft"are ortecno#ogy of Designer&

I0 >& RIG7TS TO FINA5 ART

Fina# Art o"nersip options* coose A.5icense 1eiter #i%ited $sage,e'c#$sive #icense "it no %odification rigts, or e'c#$sive #icense "it%odification rigts . a## #icenses inc#$de #i($idation for $n#icensed $se3 or /.Assign%ent& /e s$re to de#ete or cross.o$t a## a#ternates not cosen&

Cec- appropriate %edia for eac provision*

I0 >&A 13 1a3 5icense for #i%ited $sage, no %odification rigts*

I0 >& For JJJJ print, JJJJ on#ineinteractive, JJJJ tree.di%ensiona#%edia* ;pon co%p#etion of te Services, and e'press#y s$!ject to f$##pay%ent of a## fees, costs and o$t.of.poc-et e'penses d$e, Designer grantsto C#ient te rigts in te Fina# Art as set fort !e#o"& Any additiona# $sesnot identified erein re($ire an additiona# #icense and %ay re($ire anadditiona# fee& A## oter rigts are e'press#y reserved !y Designer& Te rigts

granted to C#ient are for te $sage of te Fina# Art in its origina# for% on#y&C#ient %ay not crop, distort, %anip$#ate, reconfig$re, %i%ic, ani%ate, createderivative "or-s or e'tract portions or in any oter %anner, a#ter te Fina#Art&

Category of $se*JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ


39/45

Medi$% of $se*JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

D$ration of $se*JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

Geograpic territory*JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

Initia# press r$n*JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

+it respect to s$c $sage, C#ient sa## ave 1cec- one3

JJJ E'c#$sive JJJ None'c#$sive rigts

OR

I0 >&A 131!3 E'c#$sive #icense, no %odification rigts*

I0 >&> For JJJJ print, JJJJ on#ineinteractive, JJJJ tree.di%ensiona#%edia* Designer ere!y grants to C#ient te e'c#$sive, perpet$a# and"or#d"ide rigt and #icense to $se, reprod$ce and disp#ay te Fina# Art so#e#yin connection "it te 0roject as defined in te 0roposa# and in accordance"it te vario$s ter%s and conditions of tis Agree%ent& Te rigts grantedto C#ient are for $sage of te Fina# Art in its origina# for% on#y& C#ient %ay

not crop, distort, %anip$#ate, reconfig$re, %i%ic, ani%ate, create derivative"or-s or e'tract portions or in any oter %anner, a#ter te Fina# Art&

OR

I0 >&A 13 1c3 E'c#$sive #icense, "it %odification rigts*

I0 >&@ For JJJJ print, JJJJ on#ineinteractive, JJJJ tree.di%ensiona#%edia* Designer ere!y grants to C#ient te e'c#$sive, perpet$a# and"or#d"ide rigt and #icense to $se, reprod$ce, adapt, %odify and disp#ay te

Fina# Art so#e#y in connection "it te 0roject as defined in te 0roposa# andin accordance "it te ter%s and conditions of tis Agree%ent&

AND

I0 >&A 1>3 5i($idation for $n#icensed $se*

I0 >&H C#ient=s $se of te Fina# Art sa## !e #i%ited to te $sage rigts


40/45

granted erein for te 0roject on#y& ;se of te Fina# Art, De#ivera!#es or anyderivative "or-s tereof !y C#ient at any oter ti%e or #ocation, or foranoter project or o$tside te scope of te rigts granted erein re($ire anadditiona# fee and Designer sa## !e entit#ed to f$rter co%pensation e($a#to JJJJJJJJJJJJ percent 1JJJJK3 of te origina# 0roject fee $n#ess

oter"ise agreed in "riting !y !ot parties& In te event of non.pay%ent,Designer sa## !e entit#ed to p$rs$e a## re%edies $nder #a" and e($ity&

OR

I0 >&/ Assign%ent*

I0 >&B ;pon co%p#etion of te Services, and e'press#y s$!ject to f$##pay%ent of a## fees, costs and e'penses d$e, Designer ere!y assigns toC#ient a## rigt, tit#e and interest, inc#$ding "ito$t #i%itation copyrigt andoter inte##ect$a# property rigts, in and to te Fina# Art& Designer agrees toreasona!#y cooperate "it C#ient and sa## e'ec$te any additiona# doc$%entsreasona!#y necessary to evidence s$c assign%ent&

S$pp#e%ent *

0rint.specific Ter%s and Conditions

0 & Sa%p#es& C#ient sa## provide Designer "it JJJJJ 1n$%!er3 ofsa%p#es of eac printed or p$!#ised for% of te Fina# De#ivera!#es, for $sein Designer=s portfo#io and oter se#f.pro%otiona# $ses& S$c sa%p#es sa##

!e representative of te igest ($a#ity of te "or- prod$ced&

0 >& Finised +or-& Te printed "or-, and te arrange%ent or !ro-ering ofte print services !y Designer, sa## !e dee%ed in co%p#iance "it tisAgree%ent if te fina# printed prod$ct is "itin te accepta!#e variations asto -ind, ($antity, and price in accordance "it c$rrent or standard tradepractices identified !y te s$pp#ier of te print and print.re#ated services&+enever co%%ercia##y reasona!#e and if avai#a!#e, Designer sa## providecopies of te c$rrent or standard trade practices to C#ient& Not"itstanding,Designer sa## ave no responsi!i#ity or o!#igation to negotiate canges or

a%end%ents to te c$rrent or standard trade practices&

S$pp#e%ent >*

Interactive.specific Ter%s and Conditions

I & S;00ORT SERVICES


41/45

I & +arranty 0eriod& 8S$pport Services9 %e

Documents

Standard Form of Agreement for Design Services TEXT ONLY