Graphic Design Contract

THIS AGREEMENT is made this Current Day day of Current Month, Current Year by and between Company Name ("Designers") and Company Name ("Customer").

Terms and Agreements

In consideration of the mutual covenants set forth in this Agreement, Customer and Designers hereby agree as follows:

Description of the Project ("Specifications"). Designers agree to develop the Project according to the terms listed on Exhibit B attached hereto.

Additional Editing and Changes

Any requested changes to the Specifications shall constitute additional editing and incur additional charges or fees. Additional charges for editing and changes shall be billed at Hourly Rate per hour. All additional changes must be submitted and approved by both parties in writing by approved Contract Change form.

Delivery of Project

Designers will use all reasonable efforts in the development of the Project and endeavor to complete and deliver to Customer all files, media and materials related to the Project no later than Delivery Date by an approved party provided that payment and all requested instructions and material have been received by Designers from Customer. Any delay in the completion of the Project due to actions or negligence of Customer, transportation delays, illness, or circumstances outside the control of Designers may alter the delivery date. Designers will make reasonable effort to notify Customer of any delays to the estimated delivery date as soon as possible.

1 Proofs

Proofs will be presented for Customer approval at each stage of development. If revisions are required, a request must be made when proofs are returned to Designers. Two (2) rounds of edits, based upon Customer's feedback will constitute acceptable delivery unless otherwise agreed upon in writing by both Designers and Customer. The total number of Proofs provided to Customer shall number Insert Number of Design Proofs unless otherwise determined in the Specifications.

2 Reproduction of Project

Upon successful completion of all compensation terms and outstanding balances owed to Designers. Customer is granted full and unlimited reproduction rights to the Project. Customer is granted a one-time, limited use reproduction right for the Project in exchange for the compensation paid to Designers.

The Project shall not be reproduced in any format without the written consent of Designers. Designers retain the right to reproduce the Project in any form for marketing, future publications, competitions or other promotional uses. Designers shall at no time reproduce the Project for use in commercial means or for-profit use.

Ownership of Artwork and Source Files

Except for Customer's Proprietary Material (defined below) contained in the Project, Designers shall hold all right, title, and interest in all original artwork, whether in draft, mock-up, concept or final development for the Project. Specifically, but without limitation, Designers shall hold all right, title, and interest in and to (1) all text, graphics or digital components of the Project (the "Content"), (2) all layouts, logos, structures or arrangements or other components of any materials presented to Customer that comprises the Project, (3) all literal and nonliteral expressions of ideas that operate, cause, create, direct, manipulate, access, or otherwise affect the Content, and (4) all copyrights, patents, trade secrets, and other intellectual or industrial property rights in the Project or any component or characteristic thereof. Customer shall not do anything that may infringe upon or in any way undermine Designers' right, title, and interest in the Project, as described in this Paragraph 4.

Notwithstanding the above, Customer shall retain and, Designers shall have no proprietary rights whatsoever in all of Customer's intellectual property rights in any and all text, images or other components and/or materials owned by Customer, or which Customer has the legal right to use, that are delivered to Designers, including but not limited to software, related documentation, Customer marketing material, logos, and tag lines ("Customer's Proprietary Material"). Designers agree that they shall not use Customer's Proprietary Material for any other purpose than those expressly set forth in this Agreement.

Compensation

In return for the Projects that are completed and delivered under this Agreement and Exhibit B, Customer shall compensate Designers, pursuant to the terms of Exhibit A attached hereto. In the event Customer fails to make any of the payments referenced in Exhibit A by the deadline set forth in Exhibit A, Designers have the right, but are not obligated, to pursue any or all of the following remedies: (1) terminate the Agreement, (2) withhold all files, artwork, source, commitments or any other service to be performed by Designers for Customer, (3) bring legal action. Customer is fully responsible for all material costs as outlined in Exhibit A, and accepts responsibility for all additional material costs that Designers may incur in the development of this Project.

Confidentiality

Customer and Designers acknowledge and agree that the Specifications and all other documents and information related to the development of the Project, excluding however, Customer's Proprietary Material, (the "Confidential Information") will constitute valuable trade secrets of Designers. Customer shall keep the Confidential Information in confidence and shall not, at any time during or after the term of this Agreement, without Designers' prior written consent, disclose or otherwise make available to anyone, either directly or indirectly, all or any part of the Confidential Information.

Limited Warranty and Limitation on Damages

Designers warrant the Project will conform to the Specifications. If the Project does not conform to the Specifications, Designers shall be responsible for the timely correction of the Project, at Designers' sole expense and without charge to Customer, to bring the Project into conformance with the Specifications. This warranty shall be the exclusive warranty available to Customer.

Customer waives any other warranty, express or implied. Customer acknowledges that Designers are not responsible for the results obtained by Customer's use of any part of the Project. Customer acknowledges that Designers are not responsible for fixing any problems, errors or omissions on the Project, once mass produced or after Customer has tested, proofed and approved the Project ("Sign off") in writing.

Except as otherwise expressly stated herein, Customer waives any claim for damages, direct or indirect, and agrees that its sole and exclusive remedy for damages (either in contract or tort) is the return of the consideration paid to Designers as set forth in Exhibit A attached hereto. This limited warranty shall become void and expire 30 days after Sign off has been obtained by Designers from Customer, or 30 days after the mass-production of the Project in any format.

Independent Contractor

Designers are retained as independent contractors. Designers will be fully responsible for payment of their own income taxes on all compensation earned under this Agreement. Customer will not withhold or pay any income tax, social security tax, or any other payroll taxes on Designers' behalf. Designers understand that they will not be entitled to any fringe benefits that Customer provides for its employees generally or to any statutory employment benefits, including without limitation worker's compensation or unemployment insurance.

Availability of Materials, Logos, Graphics and other Collateral

Customer agrees to make available to Designers, for Designers' use in performing the services required by this Agreement, such graphical elements and materials as Customer and Designers may agree in writing for such purpose. Failure to provide Designers with Materials in the requested formats may result in additional delays or fees in addition to those stated in Exhibit A.

General Provisions

1 Entire Agreement

This Agreement contains the entire Agreement between the parties relating to the subject matter hereof and supersedes any and all prior agreements or understandings, written or oral, between the parties related to the subject matter hereof. No modification of this Agreement shall be valid unless made in writing and signed by all of the parties hereto.

2 Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of State. Exclusive jurisdiction and venue shall be in the County County, State Superior Court.

3 Binding Effect

This Agreement shall be binding upon and enure to the benefit of Customer and Designers and their respective successors and assigns, provided that Designers shall not assign any of their obligations under this Agreement without Customer's prior written consent.

4 Waiver

The waiver by either party of any breach or failure to enforce any of the terms and conditions of this Agreement at any time shall not in any way affect, limit, or waive such party's right thereafter to enforce and compel strict compliance with every term and condition of this Agreement.

5 Good Faith

Each party represents and warrants to the other that such party has acted in good faith, and agrees to continue to so act, in the negotiation, execution, delivery, performance, and any termination of this Agreement.

6 No Right to Assign

Customer has no right to assign, sell, modify or otherwise alter the Project, except upon the express written advance approval of Designers, which consent can be withheld for any reason.

7 Right to Remove Project

In the event Customer fails to make any of the payments set forth on Exhibit A within the time prescribed in Exhibit A, Designers have the right to immediately cease all work on the Project until payment in full is paid.

8 Indemnification

Customer warrants that everything it gives Designers to include in the Project is legally owned or licensed to Customer. Customer agrees to indemnify and hold Designers harmless from any and all claims brought by any third-party relating to Customer's Proprietary Material provided by Customer to Designers including any and all demands, liabilities, losses, reasonable associated costs and claims including reasonable attorney's fees arising out of injury caused by Customer's Proprietary Material supplied by Customer to Designers, copyright infringement, and defective products sold as a result of Customer's distribution of the Project.

9 Use of Project for Promotional Purposes

Customer grants Designers the right to use the Project for promotional purposes and/or to cross-link it with other marketing venues developed by Designers.

10 Right to Style or to Make Derivative Works

Subject to Section 4 above, Designers have the exclusive rights in making any derivative similar works of the Project and any similarities between Customer's Project and future projects constitutes Designer's methods and style and shall remain the right of Designers.

11 Attorney's Fees

In the event any party to this Agreement employs an attorney to enforce any of the terms of the Agreement, the prevailing party shall be entitled to recover its actual reasonable attorney's fees and reasonable associated costs, including expert witness fees.

12 Trademarks, Logos and other Intellectual Property Issues

Customer is responsible for any Copyright or Trademark issues related to the creation and use of Project files by Customer. Customer shall be solely responsible for any Trademark or Copyright searches pertaining to the Project unless otherwise contracted for in the Specifications. Designers will not knowingly copy other rightfully trademarked or copyrighted material.

Design Note: Even if you are creating artwork from scratch, it is a good idea to conduct a trademark search on the words or mark you are creating. Even if you or the customer determine that a trademark or one close to it does not exist, it is a good idea to make sure you have a clause stating that the customer takes full responsibility for the eventual use of the logo.

Each party represents and warrants that, on the date first written above, they are authorized to enter into this Agreement in entirety and duly bind their respective principals by their signature below: