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TERMS & CONDITIONS for WEB SITE DESIGN & APPLICATION DEVELOPMENT

1. Web Site Development (HTML/Graphics)
1.1 Mock-Up Page And Revisions.
PacInfo will create a design for the overall site and submit a mock-up of the work to Client for approval. Client will have the opportunity to request revisions to the mock-up if he/she would like. Five (5) design-time hours will be available to the Client to make any revisions they request. Upon final approval, the appearance, framing and navigation of the site will be established and will then be used throughout the site.

1.2 Graphic Creation And Web Contents.
It is required that all the original graphics and contents will be supplied digitally either on a diskette or CD ROM to PacInfo within two weeks after the contract is signed. With the original graphics supplied by the Client, PacInfo will create new images including animated graphics if necessary.

With the Client’s permission, PacInfo will perform digital photography and/or scanning services and/or purchase commercial stock photos. These services will incur additional expenses and be charged to the Client separately from this contract.

1.3 Change Or Modification.
Once the mock-up page is approved, small changes still can be made to the site as a whole during the construction phase such as substituting one image for another or editing text copy up to eight design-time hours. However, these changes must not include any changes to the page layout, color scheme or other major structural changes. Anything after eight design-time hours, PacInfo will count the changes as an additional work and the Client will be billed separately from this contract.

2. Cross Browser Compatibility
This agreement contemplates the creation of a Web site viewable by Netscape 6.0, Microsoft Internet Explorer 5.5 or higher. Compatibility is defined herein as all critical elements of each page being viewable in both browsers. Client is aware that some advanced techniques on the Internet, however, may require a more recent browser version and brand or plug-in. Client is also aware that as new browser versions of Internet Explorer and Netscape are developed, the new browser versions may not be backward compatible. In the absence of a Maintenance Agreement time spent to redesign a site for compatibility due to the introduction of a new browser version will be separately negotiated and in addition to this agreement.

3. Merchant Account
If the Client's Web site requires the ability to accept credit cards, the Client will need a Merchant Account and/or Secure Certificate. The Client understands that any charges necessary to obtain the Merchant Account and/or Secure Certificate are not covered by this agreement. Upon the Client’s request, PacInfo will consult the Client to acquire the Merchant Account and also purchase the Secure Certificate.

4. Design Credit
Client agrees that PacInfo may put a byline on the bottom of Web page establishing design and development credit. Client also agrees that the Web site created for the Client may be included in PacInfo's portfolio, or referenced in advertising materials.

5. Application Development (Programming)
5.1 Programming Language and Database
Sites requiring database design may require PHP, JSP, Microsoft ASP, Allaire Cold Fusion technology or other application development languages with options of commercially known databases. If there is no request to use a specific language and database by the Client, PacInfo will practice its own discretion to choose a language and database to maximize the Client’s benefit in the respect of compatibility and cost.

5.2 Programming Errors.
Any programming errors will be fixed at no additional cost within 1 month from first launch date.

6. Payment Terms
Unless other payment arrangements have been made between Client and PacInfo, Client agrees to pay a deposit of one-half (1/2) of the contract quote prior to PacInfo commencing work on the project, and 100% of the balance due when the project is completed.

Upon completion of the project, an e-mail or letter and invoice will be sent to the Client advising the Client that the work has been completed. Final payment of the remaining 50% balance plus any additional charges incurred will due within fifteen (15) business days after delivery of this e-mail or letter and invoice. If payment is not made within thirty (30) days of notification, simple interest will accrue on the balance owed at a rate of 10%.

PacInfo reserves the right to remove all Web content from the Internet if payment is not made within thirty (30) days after delivery of PacInfo’s completion notification. Most frequently, problems making timely payment are the result of poor communication channels in a company's Accounting Department. If a payment delay is anticipated, please contact PacInfo to discuss potential problems in advance. If problems are anticipated, PacInfo may be able to accommodate an alternate arrangement.

All payments to PacInfo are non-refundable. This includes subsequent changes regardless of usage

7. Delayed Project
Client agrees to supply materials (content, images, etc.) within two weeks of request from PacInfo. After two weeks, if the project cannot continue due to a lack of materials required from Client, PacInfo will regard the project to be delayed and further work will be placed on hold. Client will be obligated to PacInfo for the either the full amount of the deposit or the number of hours worked on the project at the rate specified in Paragraph 13, whichever is greater. Should the cost of the completed work exceed the amount of the deposit, payment of the difference will become due and payable. PacInfo will resume and complete the delayed project in a timely manner provided Client supplies materials within six (6) months of the original request from PacInfo. In the event Client does not provide the necessary materials within the six (6) month period, at the sole discretion of PacInfo, the delayed project may be abandoned and PacInfo will have no further obligation to Client.

8. Early Termination Of The Contract.
Client or PacInfo may discontinue the contract at any time with or without reason, by giving written notice to the other party. Upon early termination of the contract, Client agrees to pay PacInfo for all hours worked on any part of the project at the rate specified in Paragraph 13, or the full amount of the deposit, whichever is greater. Should the cost of the completed work exceed the amount of the deposit, payment of the difference will become due and payable.

9. Laws Affecting Electronic Commerce
The Client agrees that it is responsible for complying with the laws, taxes, and tariffs related to e-commerce, and will hold harmless, protect, and defend PacInfo and its employees and officers from any claim, suit, penalty, tax, or tariff arising from the client's use of Internet electronic commerce. The Client also understands that PacInfo can not provide legal advice.

10. Limited Liability
The Client agrees that any material submitted for Web site publication will not contain anything leading to an abusive or unethical use of the Web Hosting Service, the Host Server or PacInfo. Abusive and unethical materials and uses include, but are not limited to, pornography, obscenity, nudity, violations of privacy, computer viruses, harassment, any illegal activity, unsolicited bulk email (“spam”), advocacy of an illegal activity, and any infringement of privacy.

Client hereby agrees to indemnify and hold harmless PacInfo from any claim resulting from the Client's publication of material or use of those materials.

It is also understood that PacInfo will not publish information over the Internet which may be used by another party to harm another. PacInfo will also not develop a pornography Web site for the Client. PacInfo reserves the right to determine what is and is not pornography.

10.1 Liability to Client
Any PacInfo liability to Client for damages of any kind under the agreement will not exceed, in amount, a sum equivalent to the total paid by Client.

11. Indemnification
Any materials or ideas supplied by Client will be free of all legal issues and protect PacInfo from all damages by infringing on U.S. patent, copyright, or trade secrets.

Client agrees that it shall defend, indemnify, save and hold PacInfo harmless from any and all demands, liabilities, losses, costs and claims, including reasonable attorney's fees associated with PacInfo's development of the Client's Web site and/or Web application. This includes Liabilities asserted against PacInfo, it's agents, its clients, servants, officers and employees, that may arise or result from any service provided or performed or agreed to be performed or any product sold by the Client, its agents, employee or assigns.

Client also agrees to defend, indemnify and hold harmless PacInfo against Liabilities arising out of any injury to person or property caused by any products or services sold or otherwise distributed over the Client's Web site. This includes infringing on the proprietary rights of a third party, copyright infringement, and delivering any defective
product or misinformation which is detrimental to another person, organization, or business.

12. Ownership to Web Pages and Graphics
Copyright to the finished assembled work of Web pages produced by PacInfo and graphics shall be vested with the Client upon final payment for the project. This ownership is to include, design, photos, graphics, text, and any program(s) specifically purchased on behalf of the Client for completion of this project. This does not include work done or graphic elements created solely by PacInfo which remain unused on the final site. The Client shall have a permanent license to use the Web application developed by PacInfo. PacInfo however owns the source code of the Web application and the source codes will be encrypted before turning them in to the Client.

Both parties understand that the web site is the property of Client. Client can have the web site hosted at any location they may choose at anytime.

13. Projects Not Included In The Original Estimate.
Client agrees to pay for any additional works or other projects not included in the original estimate, and these projects will be billed separately at $65.00 per hour for Graphics and HTML works, and $95.00 per hour for programming works.

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