1. Cooperation between the parties to the contract

1.1 KARABACH ENTERPRISES shall receive from the client all the documents, information, and data necessary to deliver the agreed services in the form as requested by KARABACH ENTERPRISES. As far as KARABACH ENTERPRISES creates or adapts designs or provides design services for the client under this Contract, the client shall provide to KARABACH ENTERPRISES a complete requirements specification as well as all the required test data in the form that KARABACH ENTERPRISES requests. The user requirements specification shall become binding as soon as KARABACH ENTERPRISES consents to it in writing. Upon request, KARABACH ENTERPRISES shall provide support to the client in drawing up the user requirements specification against separate compensation.

1.2 The client shall use its best efforts to support KARABACH ENTERPRISES in delivering the services and take all the measures required to attain the project goals which do not expressly fall under the obligations of KARABACH ENTERPRISES. The client shall keep additional copies of all data handed over to KARABACH ENTERPRISES on its own premises to ensure that restoration will be possible in case the data is damaged or lost. Support as well as services and products to be supplied by the client shall be provided at no cost to KARABACH ENTERPRISES.

1.3 Each party shall name to the other party an appropriately qualified employee who shall be capable of providing relevant information required for the Contract to be executed and of either taking or initiating any necessary decisions.

2. Service delivery

2.1 The schedule and the detailed services shall be defined in the Contract. Unless otherwise agreed upon, KARABACH ENTERPRISES shall deliver the services on its own premises. As far as KARABACH ENTERPRISES performs activities on the client’s premises, the client shall provide adequately equipped workplace(s).

2.2 In delivering the services, KARABACH ENTERPRISES shall have the right to use third parties or other partnering companies. Unless otherwise agreed upon, the delivery of training services by KARABACH ENTERPRISES shall not be included in the Contract.

3. Changes in any project

The Client must assume that all additions, alterations, changes in content, layout or process changes requested, will alter the time and cost. The Client shall offer KARABACH ENTERPRISES the first opportunity to make any changes. All requests for changes shall be in writing. The client has a total of 3(three) opportunities to request for changes in a project.

4. Samples

Karabach Enterprises retains all rights of ownership of all pre-final production work samples, sent to client for approval. All samples sent to a client via any media shall be for approval and disapproval purpose only. The client shall not reproduce, distribute, edit or use these samples without documented consent from KARABACH ENTERPRISES. The client is obligated to respond to samples soonest possible. If the client does not respond within 48 (forty eight) hours after receiving a sample of work, it will be assumed as an approval by the client to continue with the project as it is.

5. Cancellation

5.1 In the event of cancellation of an assignment, ownership of all copyrights and the original artwork shall be retained by Atlantis Creative Studios, unless the client requests for the work as it is. Cancellation fee for work completed, and expenses already incurred, shall be paid by the Client.

5.2 Cancellation fee is based on the hours submitted, if the project is on an hourly basis or a percentage based on the time estimate for the entire job. A 100% cancellation fee is due once the project has been finished, whether delivered to the client or not. If the project is on an hourly basis and the project is canceled by the client, the client agrees to pay no less than 100% of the hours already billed for the project at the time of cancellation. Cancellation shall be in writing.

6. Changes in deadlines and scope of services

6.1 The scheduled deadlines agreed upon in the Contract shall be extended appropriately if KARABACH ENTERPRISES is prevented from delivering the agreed services for reasons for which KARABACH ENTERPRISES is not responsible. Reasons for which KARABACH ENTERPRISES is not responsible shall, without limitation, include any delays or substandard products/services/support supplied by the client, also mobilization of troops, war, insurrection, natural disasters, changes in laws after the conclusion of the Contract, strikes or lockouts (“force majeure”). Any additional expenses arising to KARABACH ENTERPRISES from such events shall be borne by the client.

6.2 Changes in the scope of services in terms of quality and/or quantity (change requests), especially changes in the client requirements specification or the accepted specifications, shall be subject to written agreement, with the related deadlines and compensations having to be adjusted accordingly. Unless otherwise agreed upon, KARABACH ENTERPRISES shall provide extra services only against applicable payment to be agreed in advance in writing.

7. Remuneration and retention of title

7.1 The Client shall reimburse Karabach Enterprises for all expenses arising from this assignment, including the payment of any sales taxes due on this assignments, and shall advance Karabach Enterprises for payment of said expenses, including but not limited to Stock Photography, Artwork, Voice Artists and or any other material needed for the project. Duplication costs are not included at the time the quotation is prepared, unless the client request’s.

7.2 Unless otherwise agreed upon, KARABACH ENTERPRISES shall calculate the amounts payable in compensation on the basis of hourly rates specified in the Contract. The amounts payable shall be charged at the end of each month on the basis of the reports on services delivered submitted by KARABACH ENTERPRISES.

As far as KARABACH ENTERPRISES provides services at fixed prices (fixed or all-in prices), KARABACH ENTERPRISES shall be entitled to request an advance payment of at least fifty percent (50%) of the fixed price (fixed or all-in price); and payment dates shall be agreed in the Contract dependent on the progress of service delivery (“milestones”). Irrespective of the pricing model, KARABACH ENTERPRISES’ prices shall be always considered net prices exclusive of VAT or any other applicable taxes, which shall be charged separately.

7.3 Service delivery on site at the client’s shall be charged at a half day’s rate at least. The markups generally applicable at KARABACH ENTERPRISES shall be charged for services delivered outside normal working hours (Sunday to Thursday, 10.00 a.m. to 7.00 p.m.); on Fridays, Saturdays or public holidays as well as on days which are generally non-working days at KARABACH ENTERPRISES.

7.4 Payment shall be due within ten (10) days from the date of invoice without deductions unless there is a documented payment agreement. If the client defaults in payment, KARABACH ENTERPRISES shall be entitled to claim interest on arrears as legally applicable. Should the client’s default in payment exceed fourteen (14) days, KARABACH ENTERPRISES shall have the right to cease the delivery of all services without the need of so notifying the client in advance and to make the compensation for all services already provided immediately due and payable notwithstanding any dates fixed for payment. For Web Design services, KARABACH ENTERPRISES shall have the right to take down the website without the need of notifying the client should they default in payment.

7.5 The grant in full, of any license right of copyright including login details for website is conditioned on receipt of full payment. Client is to pay for all services and products provided by KARABACH ENTERPRISES whether they use the products or not, since the work has already been done as requested.

7.6 Travel time of KARABACH ENTERPRISES employees shall be considered working time. In addition, the client shall reimburse travel costs at the same rate as they occur. In the case of travel by car, the legally applicable mileage-based flat rate shall be charged. In the case of travel by airplane, the price for the ticket shall be charged. Other ancillary expenses, such as telephone costs, shall be charged as incurred.

7.7 The client shall not have the right to withhold or offset payment on the grounds of any warranty claims or other claims unless approved of in writing by KARABACH ENTERPRISES or asserted by court order. Until the compensation due to KARABACH ENTERPRISES has been paid up in full, plus interest and cost,

7.8 KARABACH ENTERPRISES shall reserve the title to all goods delivered by KARABACH ENTERPRISES. Unless otherwise agreed upon, the client shall not have the right to use the products and services delivered by KARABACH ENTERPRISES until having fully paid up all amounts due to KARABACH ENTERPRISES.

7.9 All fees, taxes and duties arising under this Contract, such as for instance legal transaction fees, import taxes or withholding taxes, shall be borne by the client. In case KARABACH ENTERPRISES is charged with any such fees, taxes or duties, the client shall fully indemnify KARABACH ENTERPRISES against any payments thereof.

8. Estimates

The fees and expenses shown are minimum estimates only unless an hourly fee has been agreed upon. That fee will be Hourly Fee per hour and Karabach Enterprises shall keep the client apprised of a tally of hours within a reasonable period of time. Final fees and expenses shall be shown when invoice is rendered. The fees and expenses shown are minimum estimates only unless the quote and/or invoice is clearly marked Firm Quote, otherwise the stated hourly fee will be payable on all time over that which was quoted with a minimum in 30 minute increments.
9. Invoices

All invoices are payable within 30(thirty) days of receipt unless there is a documented payment agreement. A 5% per month service charge is payable on all overdue balances for reissuing each invoiced at 45, 60, 75 and 90 days from the date of original invoice.

10. Acceptance and Warranty.

10.1 As far as the design services (shortly called “designs”) are to be created or adapted by KARABACH ENTERPRISES, such designs shall be submitted to acceptance procedures by the client immediately after they have been made available for acceptance. If defects are identified during acceptance, KARABACH ENTERPRISES shall remove the defects within a reasonable period of time at no cost to the client and then make the designs available for renewed acceptance. If the client fails to perform acceptance procedures for any reason other than the presence of a major defect that significantly impairs the use of the designs, the designs shall be considered accepted 1(one) week after having been made available for acceptance, but in any case as soon as it is being used or passed on by the client. These provisions shall apply mutatis mutandis to documents, such as detailed specifications or client requirements specifications, to be drawn up by KARABACH ENTERPRISES under the Contract. After acceptance by the client, such documents shall be regarded as the only basis for service delivery by KARABACH ENTERPRISES.

10.2 Defects that occur within a warranty period of 1 month (for game designs- six (6) months) after acceptance of the designs are duly given notice of by the client in writing shall be cleared by KARABACH ENTERPRISES within a reasonable period of time at no cost to the client. Client shall submit all documents, information and data necessary for fault clearance purposes as may be requested by KARABACH ENTERPRISES.

10.3 As regards design scopes which the client has extended, KARABACH ENTERPRISES shall provide warranty up to added extension. In all other respects, warranty for designs modified by the client without the prior consent of KARABACH ENTERPRISES shall be excluded, even if a fault occurs in a non-modified part, unless the client proves that there is no causal relationship between the fault and the modifications made by the client.

10.4 The warranty provisions set forth in Section 7 shall apply mutatis mutandis to deliveries and services provided by KARABACH ENTERPRISES. However, as far as the delivery of services by KARABACH ENTERPRISES includes the delivery of services and products supplied by third parties, the special terms and conditions of warranty of the respective vendor shall prevail.

10.5 Any claims for warranty raised by the client exceeding those mentioned in the present General Terms and Conditions shall be excluded, irrespective on which legal grounds they might be based.

11. Liability

11.1 To the extent permitted by mandatory law, KARABACH ENTERPRISES shall in no case be liable for indirect damage, loss of information or data, operating interrupts, loss of earnings and other consequential damages.

11.2 Client agrees, shall not hold KARABACH ENTERPRISES agents or employees liable for any incidental or consequential damages that arise from KARABACH ENTERPRISES failure to perform any aspect of the project in a timely manner, if such failure was caused intentionally, unintentionally or negligent acts or omissions of Client, any client representatives or employees, a third party or factors beyond the control of Karabach Enterprises e.g.

Breakdowns, Power Blackouts, Riots etc. The client shall be updated incase such unforeseeable circumstances occur.

11.3 The Client shall indemnify KARABACH ENTERPRISES against all claims and expenses, including attorney’s fees, due to the uses for which no release was requested in writing or for uses that exceed authority granted by a release.

11.4 Any warranty and damage claims from the client other than those expressly mentioned in these General Terms and Conditions, irrespective of the legal grounds they might be based on, in particular those due to loss or damage resulting from consulting, support in the implementation of design products, or software product defects, shall be excluded unless there is an obligatory liability, as for instance for damage caused intentionally or by gross negligence proved by the client.

12. Dispute Resolution

12.1 All disputes arising out from a Contract, including or related to it, including those arising from or concerning its interpretation, invalidity, performance or termination, as well as the disputes for filling gaps in a Contract or its adaptation to newly established facts, shall be settled by an amicable effort of both parties.

12.2 Any disputes in excess of maximum limit for small-claims court arising out of this Agreement shall be submitted to binding arbitration before a mutually agreed-upon arbitrator pursuant to the rules of the Kenyan Law. The Arbitrator’s award shall be final, and judgment may be entered in any court having jurisdiction thereof. The client shall pay all arbitration and court cost, reasonable attorney’s fees, and legal interest on any award of judgment in favor of KARABACH ENTERPRISES. All actions, whether brought by client or by KARABACH ENTERPRISES will be filed in KARABACH ENTERPRISES’s county of business.

13. Term of Contract

13.1 KARABACH ENTERPRISES shall deliver the consulting and design services either for the duration of the project agreed upon with the client or for the duration agreed upon in the Contract. As far as services under this Contract are provided on an ongoing basis, each of the parties to the Contract shall have the right to terminate the Contract in writing by registered mail giving 1-month‘s notice. Any designs not yet accepted at the time the Contract is terminated shall in any case be completed and compensated for under the terms and conditions of the Contract.

13.2 In all other respects the parties to the Contract shall have the right to prematurely terminate, in writing by registered mail, a Contract concluded for an indefinite period of time for good cause.

Good cause shall exist, in particular, when the other party’s property and assets are subjected to insolvency proceedings or when the opening of such proceedings is rejected due to a lack of assets, or when the other party to the Contract violates material obligations under the Contract, in particular, payment obligations, so that the terminating party can no longer be reasonably expected to continue the Contract.

13.3 Each page of this contract and other related contracts must have KARABACH ENTERPRISES’s official stamp and signature from an authorized representative of KARABACH ENTERPRISES for it to be legally binding.

14. Concluding clauses

14.1 Collateral agreements and alterations to the Contract need be made in writing in order to be effective.

14.2 KARABACH ENTERPRISES shall have the right to transfer the Contract with all its rights and obligations to third parties. Client must not transfer rights and obligations under the Contract without KARABACH ENTERPRISES’s prior written consent.

14.3 If any of the provisions of the Contract is or becomes invalid, this shall not serve to invalidate the remaining provisions thereof. In such cases, the parties shall make every effort to find provisions whose business result would match those of the invalid provision as closely as possible.

15. Modifications on terms of agreement

15.1 This agreement is applicable to all services and products Karabach Enterprises provides for the client from the time of signing. Modifications of the terms of this contract must be written and authorized by both parties, involving the implementation of a new version of the contract as a whole following standard procedures of documentation and approval.