Developer shall deliver the Development Plan to Customer by [DEVELOPMENT PLAN DEADLINE]. 
Customer shall have [NUMBER] days to review the Development Plan. Upon approval of the 
Development Plan by Customer, it will be marked as Exhibit B and will be deemed by both parties to have 
become a part of this Agreement and will be incorporated by reference. Developer shall then commence 
development of Software that will substantially conform to the requirements set forth in the Development 
If the Development Plan is in Customer's reasonable judgment unsatisfactory in any material respect, 
Customer shall prepare a detailed written description of the objections. Customer shall deliver such 
objections to Developer within [NUMBER] days of receipt of the Development Plan. Developer shall then 
have [NUMBER] days to modify the Development Plan to respond to Customer's objections. Customer 
shall have [NUMBER] days to review the modified Development Plan. If Customer deems the modified 
Development Plan to be unacceptable, Customer has the option of terminating this Agreement upon 
written notice to Developer or permitting Developer to modify the Development Plan again under the 
procedure outlined in this paragraph. If this Agreement is terminated, the obligations of both parties under 
it shall end except for Customer's obligation to pay Developer all sums due for preparing the 
Development Plan and the ongoing obligations of confidentiality set forth in the provision of this 
Agreement entitled "Confidentiality."  


If the Development Plan is not accepted by Customer and Customer terminates this Agreement, 
Developer shall be entitled to compensation on a time and materials basis at an hourly rate of [HOURLY 
RATE] plus expenses to the date of termination. Developer shall submit an invoice detailing its time and 
expenses preparing the Development Plan. If the invoice amount is less than the amounts paid to 
Developer prior to termination, Developer shall promptly return the excess to Customer. If the invoice 
amount exceeds the amounts paid to Developer prior to termination, Customer shall promptly pay 
Developer the difference. However, Developer's total compensation for preparing the Development Plan 
shall not exceed [AMOUNT]. 
Developer shall be compensated at the rate of [RATE] per hour [OR "day," "week," "month"]. Payment will 
be made within [NUMBER OF DAYS] days of Developer's submission of an invoice for work completed. 
[OPTIONAL: "Unless otherwise agreed upon in writing by Customer, Customer's maximum liability for all 
services performed during the term of this Agreement shall not exceed [MAXIMUM AMOUNT]."] 


The total contract price shall be set forth in the Development Plan. Customer shall pay the Developer the 
sum of [INITIAL AMOUNT] upon execution of this Agreement and the sum of [AMOUNT IF PLAN 
APPROVED] upon Customer's approval of the Development Plan. The remainder of the contract price 
shall be payable in installments according to the payment schedule to be included in the Development 
Each installment shall be payable upon completion of each project phase by Developer and acceptance 
by Customer in accordance with the provision of this Agreement entitled "Acceptance Testing of