General terms and conditions of Arcusys products and services

  1. Scope of application and definitions

Unless otherwise agreed in writing, these general terms and conditions (General Terms) of Arcusys Ltd. (Supplier) shall apply to the delivery of the Valamis eLearning software (together with documentation, media, accessories and other written material related thereto hereinafter the Product), as well as services (Services) by the Supplier or its affiliated company or an authorized third party to the customers and users thereof (Customer), as may be further specified in a separate Products and Services or similar agreement (together with these General Terms, hereinafter the Agreement), if any.

These General Terms shall not apply to maintenance and support of the Product, which are subject to a separate agreement.

  1. Delivery and acceptance

The Supplier endeavours to comply with the agreed-upon delivery dates, or if no delivery dates have been agreed upon, the Supplier endeavours to deliver the Product within a reasonable time from the date of execution of the Agreement. If the delivery is based on data or material to be provided by the Customer, the date of delivery shall be calculated from the date, when the Supplier has notified to the Customer that it has received such data and material in accordance with the Agreement. If any authorizations or permissions are required from the competent authorities, the date of delivery shall be calculated from the date, when the Supplier has notified to the Customer that it has received such authorizations or permissions in accordance with the Agreement.

Each party shall appoint a contact person for the purposes of the Agreement. The contact person's responsibility shall be to follow and supervise the progress of the delivery and to inform its own organization and the other party on issues related to the implementation of the delivery.

The Customer shall contribute to the delivery using its best efforts. The Customer agrees to perform its duties in conformance with the Agreement, with due care and the professional skill required for the task. The Customer shall provide the Supplier with all information that the Supplier deems necessary in order to perform the tasks included in the delivery. The Customer shall be responsible for information and instructions given to the Supplier, as well as for the suitability of the result of the delivery for the Customer's purposes. The Customer shall further ensure that the use of the Products and information provided by the Customer for the purposes of the delivery do not infringe any rights of third parties.

The Customer hereby acknowledge that all specified delivery dates are estimation only, and that the Customer shall not be entitled to any compensation or damages due to a delay of the delivery.

Unless otherwise agreed in writing, the delivery term shall be 14 days from order date.

Unless a separate acceptance testing procedure has been agreed upon, the Customer shall perform an acceptance inspection of the Product not later than seven (7) days from the Product's delivery date. If it has been separately agreed upon in writing that installation is performed by the Supplier, the above-mentioned acceptance inspection period shall commence on the date when the Supplier notifies to the Customer that it has performed the installation in accordance with the Agreement. The Customer shall immediately notify the Supplier in writing of any errors or defects detected during the acceptance inspection. Notwithstanding the Customer's reclamation, the delivery shall be deemed accepted in the event the delivery does not contain errors or defects as specified in Section 10. The Customer shall be responsible for the preparation of the testing material, performance of the tests and all related costs. The delivery shall also be deemed accepted if the Customer puts the Product, or a part thereof, in the production use, or fails to notify the Supplier within the above-mentioned acceptance period of any errors or defects in the delivery. At the request of the Supplier, the Customer shall provide the Supplier with a written acceptance certificate signed by duly authorized representative of the Customer.

  1. Installation

Unless otherwise agreed in writing, the Customer shall be responsible for the installation of the Products at its own expense. In the event the Customer installs the Product, the Supplier shall provide the Customer with instructions necessary for the performance of the installation, and for the preparation of the operational environment of the Product.

In the event it has been agreed that the Supplier installs the Product, the following shall apply:

  • The Customer shall, at its cost and in a timely manner, prepare the operational environment to conform to the requirements specified in the Agreement, or specified separately by the Supplier. The Supplier may inspect the operational environment prior to the installation date and may require that the Customer corrects and remedies all detected errors and defects therein at its own expense;
  • Installation is performed during the normal business hours of the Supplier;.
  • The Customer shall arrange for the Supplier an access to the installation premises for the performance of the installation at a time to be agreed by the parties;
  • The Customer shall, at its expense, arrange the working and storing space necessary to perform the installation.
  • If additional personnel or special tools are necessary due to a reason attributable to the Customer's installation premises, the Customer shall pay all related additional costs;
  • The Customer shall provide the Supplier with all communications, equipment and other resources reasonably required for the installation at Customer's cost;
  • The Customer shall ensure that the installation premises and environment complies with the working environment and safety regulations as set forth in applicable laws, degrees and orders issued by the competent authorities;
  • The Customer shall ensure in other respect that the installation may be performed as agreed, within the agreed-upon timetable, as well as undertakes to be solely liable for all additional costs caused by delays attributable to the Customer; and
  • The Customer shall be responsible that its own or third party products do not cause interference to the Supplier's Products to which such Customer or third party Products are connected.
  1. Data and material provided by the Customer

The Customer shall provide all data and material agreed to be provided by the Customer in the agreed-upon form, or in another form specified by the Supplier in writing. For the avoidance of doubt, all intellectual property rights related to such data and the material provided by the Customer shall at all times belong to the Customer, and the Supplier is not entitled to use them except for the purposes of the Agreement.

The Customer shall be responsible for the instructions, data and material provided by it. The Customer shall further ensure that utilization of such instructions, data and material does not infringe any intellectual or any other right of a third party, law or any orders issued by the competent authorities.

The Customer shall be responsible for the acquisition and working order of all equipment, software and telecommunication connections not included in the Service description forming part of the Agreement, if any, or the agreed delivery. The Customer also agrees to ensure that such equipment, software and telecommunication connections meet the requirements set forth by the competent authorities and do not cause interference to the Supplier's performance or to the general communications network. The Customer shall immediately remove all equipment, software and connections, which may cause such interference and be liable for any damage caused by them as well as costs related to the error-diagnosis and other related work.

  1. License

Unless otherwise agreed in writing, the license terms specified in section 5 shall apply.

If the delivery contains Supplier's or third party's standard software or other material, such software or material shall be subject to the applicable license terms and conditions. The Customer agrees and acknowledges that the Product has been developed on a Liferay platform and the use of Product requires that the Customer has agreed to and obtained the necessary license(s) for the Liferay platform and software of Liferay Inc.

Copyright and other intellectual property rights as well as title in and to the Product, documentations and other materials delivered to the Customer or generated during the performance of Services, and all modifications, alterations, enhancements and changes thereof (jointly Deliverables), shall at all times belong to the Supplier irrespective of whether or not such material has been created in co-operation of the parties. Title to all copies of the Deliverables shall also belong to the Supplier.

The Supplier grants to the Customer a non-exclusive and non-transferable license to use the Deliverables for the Customer's own internal operations for the purposes specified in the Agreement, or otherwise by the Supplier in writing. The Customer shall ensure that the persons entitled to use the Product based on the license granted hereunder comply with these General Terms.

The Product and other possible software included in the Deliverables shall be delivered in an object code version. The Customer may use the Product in a single server per paid license. If the server on which any item of the Product is used becomes temporarily unavailable, the Customer may temporarily use the Product on an alternative server. The Customer may not sell, pass or otherwise assign its license to a third party or otherwise utilize the Deliverables financially. The Customer shall have no right to use the Product for service bureau or facilities management purposes.

The Customer shall have the right to make changes or other alterations to the Deliverables only with the prior written consent of the Supplier. The Customer may reverse engineer, disassemble or decompile the Deliverables only if and to the extent such activity is expressly permitted by the applicable mandatory rules of the Finnish Copyright Act (8.7.1961/404, as amended). The Customer may make one (1) backup/archival copy of the Product and other possible software included in the Deliverables to be used if the original operating environment is not available. The Customer shall not have the right to make other copies, or allow other copies to be made, of the Deliverables even for private use. The backup/archival copy shall contain all the same legends and copyright notices as the original and will be subject to the same conditions and restrictions as the original.

The Customer is responsible for ensuring that the Product is used in accordance with the manuals and instructions related thereto. The Customer is also responsible for maintaining back-up data necessary to replace data in the event of loss or damage to such data for any cause.

Unless otherwise expressly agreed in the Agreement, the Agreement shall have nor effect on either party's intellectual property rights or any other rights existing prior to the execution of the Agreement, nor alter either party's rights to the documentation, software and/or parts thereof, furnished by one party to the other party for the purposes of the Agreement. If the Customer uses the Deliverables for any purpose than those stated in the Agreement, the Supplier may immediately terminate the license and/or increase the license fees retroactively to correspond to such use.

Upon expiration of the license granted hereunder, the Customer shall return, or, if not possible, destroy all Deliverables, including without limitation all copies thereof.

The Customer shall have no right to make changes to the Deliverables, telecommunication solutions or other technical infrastructure that is an object of the license or the delivery, if any, without a written consent of the Supplier. If the Customer makes such changes without the Supplier's prior written consent, the Supplier shall be entitled to charge additional fees for the work caused, or, if the alteration is substantial, to suspend the license and the delivery under the Agreement.

Information furnished by the Supplier to the Customer concerning the Supplier's business methods, processes and procedures contain the Supplier's trade secrets and know-how, and all related intellectual property rights and title to all such information shall at all times belong to the Supplier. The Customer shall not be entitled to financially or otherwise utilize the Supplier's business processes or procedures, unless otherwise expressly agreed in the Agreement.

  1. Commencement of the license; risk of loss and damage

Unless otherwise agreed, license to use the Products and other material contained in the delivery commences upon payment of the license fees in full to the Supplier.

  1. Prices and terms of payment

Unless otherwise agreed, the Supplier shall invoice for the Products after entering into the Agreement, and for the Services after their performance not, however, less than once (1) per month. The terms of payment shall be thirty (30) days net from the date of an invoice. Interest on delayed payments accrues in accordance with the Finnish Interest Act (632/1982, as amended). The Supplier may charge the Customer additional fees for any work performed outside the Supplier's working hours or for work not belonging to the scope of the Agreement. Such additional fees may include, without limitation, overtime compensation, equipment fees, daily allowance, telecommunications fees and other expenses.

In the event the price of the Product or Service has not been specified in the Agreement, or otherwise, the Supplier's price list effective at the time of order shall apply. The Supplier may change its prices upon sixty (60) days prior written notice to the Customer. The change of prices shall not apply to invoices falling due prior to the effective date of the change. In the event the Customer does not accept the change, the Customer shall be entitled to terminate the Agreement to terminate on the effective date of the price change upon thirty days (30) days prior written notice to the Supplier. In the event of termination, the Supplier shall be entitled to receive payment for any work performed and use of Products prior to such termination.

The Supplier shall be entitled to charge fifty percent (50%) of the agreed hourly charge for for travel time related to travels necessitated by the performance of its obligations hereunder, which exceed a return journey of over thirty (30) kilometres. In the event the return journey is less than thirty (30) kilometres, travel time shall not be chargeable. The Supplier shall invoice the Customer for other travelling costs and daily allowances separately in accordance with its then-current invoicing policy.

Unless otherwise agreed in writing, the prices specified in the Agreement shall include all public charges determined by the authorities and effective on the date of signing the Agreement, with the exception of value added tax. Value added tax shall be added to the prices in accordance with the then current regulations. Should the amount of public charges determined by the authorities, or their collection basis, change due to changes in regulations or taxation practices, the prices of the Products and Services shall be revised correspondingly.

If any payment by the Customer is delayed by more than thirty (30) days from the due date despite a written reminder, the Supplier shall be entitled to suspend its performance without any liability until the Customer has paid all amounts due to the Supplier.

  1. Updates, Replacement of Products and alterations

From time to time and at the Supplier's sole option, the Supplier may extend, enhance or otherwise modify the Product at any time without notice (Updates) but is not obligated to provide Customer with any Updates. The Customer acknowledges that the Supplier has no express or implied obligation to announce or make available any Updates in the future.

Upon approval of the Customer, which shall not be unreasonably withheld, the Supplier shall be entitled to replace the Product with another product or its new improved model or version (Replacement). The Replacement shall meet the requirements with respect to the capacity, performance and other features that are set forth in the Agreement for the original Product.

The Supplier shall be, without the approval of the Customer, entitled make changes, amendments or other enhancements to the Product prior to the delivery thereof, provided that the Product continues to meet the requirements set forth herein.

  1. No Support or Maintenance.

The Supplier has no express or implied obligation, to provide any maintenance, technical or other support or maintenance services for the Product, unless otherwise agreed in writing.

  1. Warranties

THE PRODUCT IS LICENSED ON AN "AS IS" BASIS. THE SUPPLIER DOES NOT WARRANT THAT THE PRODUCT AND THE FUNCTIONS CONTAINED IN THE PRODUCT WILL MEET THE REQUIREMENTS OF THE CUSTOMER OR OPERATE UNINTERRUPTED OR ERROR- OR BUG-FREE OR IN ALL COMBINATIONS SELECTED FOR USE BY THE CUSTOMER.

EXCEPT AS EXPRESSLY STATED IN THE AGREEMENT OR REQUIRED BY MANDATORY PROVISIONS OF LAW, THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE. THE SUPPLIER AND ITS DISTRIBUTORS EXPRESSLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND SATISFACTORY QUALITY.

  1. Confidentiality

Each party shall keep in confidence all material and information received from the other party and marked as confidential or which should be understood to be confidential. A party shall have the right to use such material and information only for the purposes set forth in the Agreement. The confidentiality obligation shall, however, not be applied to material and information that: (a) is generally available or otherwise public; (b) the receiving party or its affiliated company has received from a third party without any obligation of confidentiality; © was in the possession of the receiving party or its affiliated company prior to receipt of the same from the other party without any obligation of confidentiality related thereto; (d) the receiving party or its affiliated company has developed independently without using material or information received from the other party; or (e) a party or its affiliated company must disclose pursuant to a law, decree, or other order issued by the competent authorities or judicial order.

Each party shall cease using confidential material and information received from the other party promptly upon termination of the Agreement or when that party no longer needs the material or information in question for the purpose stated in the Agreement and, unless the parties separately agree on the destruction of such material, return the material in question (including all copies thereof). Each party shall, however, be entitled to retain the copies required by law or regulations.

The Supplier is entitled to use the professional skills and experience acquired in connection with the Agreement.

The rights and obligations pursuant to this clause 11 shall remain in force after the termination of the Agreement.

  1. Force majeure

Except for the payment obligations, neither party shall be liable to the other for loss, damage, or delay in work caused by an impediment beyond its control, which that party could not have taken into account at the time of the conclusion of the Agreement, and whose consequence it could not have reasonably avoided or overcome including, but not limited to war, riot, the act or order of any competent civil or military authority, strikes, unauthorized work stoppage or by fire, flood ("Force Majeure Event"). Strike, lock-out, boycott and other industrial action shall constitute a Force Majeure Event also when the party concerned is the target or a party to such an action.

A Force Majeure Event suffered by a subcontractor of a party shall also discharge such a party from liability if subcontracting from other source cannot be made without unreasonable costs or a significant delay.

Either party shall inform the other party of a Force Majeure Event in writing without delay. The party shall correspondingly inform the other party of the cancellation of the Force Majeure Event.

  1. Infringements of intellectual property rights

The Supplier shall at its own expense defend and indemnify the Customer against claims and actions that the Product infringes any of the intellectual property rights of a third party, provided that the Customer notifies the Supplier promptly in writing of such claims, and permits the Supplier to defend or settle the claims, and gives the Supplier all necessary information and assistance available and all necessary authorizations.

If in the justified opinion of the Supplier, the Product infringes the intellectual property rights of a third party, the Supplier shall at its own expense either: (a) obtain the right to use of the Product for the Customer, or (b) replace the Product, or © modify the Product in order to eliminate the infringement. If none of the above-mentioned alternatives is available to the Supplier on reasonable terms, the Customer shall, at the request of the Supplier, stop using the Product, return it, and the Supplier shall credit the price paid by the Customer for the Product less the proportion of the price corresponding to the actual time of use.

The Supplier shall, however, not be liable to Customer if the claim: (a) is asserted by the Customer or its affiliated company; (b) results from an alteration of the Product or from compliance with the Customer's instructions or information; © results solely from the use of the Product in combination with any product not supplied by the Supplier; or (d) could have been avoided by the use of a released and newest version of the Product.

THIS CLAUSE 13 STATES THE ENTIRE LIABILITY OF THE SUPPLIER AND THE CUSTOMER'S SOLE AND EXCLUSIVE REMEDIES FOR AN INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHT BY THE PRODUCT.

  1. Term; termination of the Agreement

Unless otherwise agreed between the Parties, this Agreement shall be valid as long as the license is valid. However, in case the Liferay license is terminated, the Supplier is entitled to terminate the Agreement including any licenses thereunder, with immediate effects.

If the fulfilment of the Agreement is delayed for more than four (4) months due to a Force Majeure Event, either party shall have the right to terminate this Agreement by a written notice to the other party without either party having the right to claim damages for such termination.

A party shall have the right to terminate the Agreement upon written notice to the other party if such other party is declared bankrupt, is put into liquidation, or it otherwise ceases with its payments, or if the other party commits a substantial breach of the terms and conditions of the Agreement and does not remedy such breach within thirty (30) days from receipt of the written notice of the breach.

  1. Marketing

Arcusys may use Customer's name and logo in its marketing collateral, websites, and promotional materials to identify Customer as a customer of Arcusys.

  1. Damages and limitation of liability

The Supplier shall be liable under the Agreement solely for direct damages caused by the Supplier's negligence or other breach of the Agreement, and proven by the Customer not, however, exceeding fifteen percent (15%) of the price of the Product, Service or part thereof, which is the subject-matter of the claim.

IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR EXPENSES, INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS AND LOST SAVINGS, OR FOR THE LOSS OF, DAMAGE TO, OR ALTERATION OF DATA OR DATA FILES OF THE OTHER PARTY DUE TO ANY CAUSE AND THE RESULTING DAMAGES AND EXPENSES INCURRED, SUCH AS EXPENSES BASED ON THE RE-CREATION OF DATA FILES, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

THE LIMITATION OF LIABILITY SHALL NOT APPLY TO DAMAGES CAUSED BY WILFUL CONDUCT OR GROSS NEGLIGENCE. THE LIMITATION OF LIABILITY SHALL ALSO NOT APPLY TO DAMAGES CAUSED BY THE TRANSFER, COPYING, OR USE OF PRODUCT CONTRARY TO LAW OR THE TERMS OF THE AGREEMENT, OR DAMAGES CAUSED BY A BREACH OF EXPORT RESTRICTIONS RELATING TO THE PRODUCTS OR TECHNICAL INFORMATION.

  1. Governing law; settlement of disputes

The Agreement shall be governed by the laws of Finland excluding its choice of law provisions. The United Nations Convention on Contracts for the International Sale of Goods, done at Vienna April 11, 1980, is excluded. All disputes arising out of or in connection with the Agreement and/or the formation thereof shall be resolved by arbitration under the Arbitration Rules of the Finland Central Chamber of Commerce. The arbitration tribunal shall consist of one (1) arbitrator. The arbitration proceedings shall take place in Helsinki, Finland. The arbitration shall be conducted and the arbitration award shall be given in Finnish or, if the Customer is not a Finnish entity, in English.

  1. Assignment of the Agreement

Neither party shall have the right to assign the Agreement without the prior written consent of the other party. The Supplier may, however, assign the Agreement to its affiliated company or to a third party to whom the business subject to the Agreement is transferred. The Supplier may further assign its receivables under the Agreement to a third party.

  1. Amendment of the Agreement

The Customer acknowledges and agrees that the Supplier continuously develops Services and Products and therefore the selection and content of Services and Products may change. The Supplier shall also have the right to stop the provision and/or manufacturing of the Services and/or Products. In such case, the Supplier may terminate the Agreement with respect to such terminated Services, Products or their separate parts.

Any other changes or additions to the Agreement shall be agreed in writing in order to be valid.

  1. Offer and validity of the agreement

The Agreement shall be valid when duly authorized representatives of both parties have signed the Agreement or when the Supplier accepts the Customer's offer in writing. Unless otherwise agreed, the Supplier's offer shall be valid for a period of thirty (30) days from the date of offer.