Document:

KWESST Micro Systems Inc.: Exhibit 10.16 - Filed by newsfilecorp.com

    

    
        Subcontract #:324556

        SOW #: 1

         

    

    Certain portions of this exhibit have been excluded because the information is both (i) not material and (ii) the type that the registrant customarily and actually treats as private or confidential. Omitted information has been noted in this document with a placeholder identified by the mark "[***]".

     

    Schedule B-1 to Master Professional Services Agreement

     

    between

     

    General Dynamics Land Systems - Canada Corporation doing business as General
Dynamics Mission Systems - Canada ("GDMS-C")

     

    and

     

    KWESST Micro Systems Inc. ("Seller")

     

    Statement of Work No. (1)

     

    
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        Subcontract #:324556

        SOW #: 1

    

    This Statement of Work contains confidential and proprietary information of GDMS-C and Seller.

    1. General Terms

    1.1 General

    1.1.1 This Statement of Work ("SOW") sets forth the Services and Deliverables to be provided by the Seller to GDMS-C to enable development and integration of a prototype solution that successfully integrates an Android device with LCSS showing a representative Battle Management Application and a surrogate Specialist Application ("Project").

    1.2 Objective

    1.2.1 The objective of this Project is to develop an integrated demonstrator of Tactical Applications on an Android host. More specifically to:

    1.2.1.1 Successfully integrate a representative Battle Management Application and a surrogate Specialist Application on the same Android device; and

    1.2.1.2 Support a compelling demonstration of tactical information exchange:

    1.2.1.2.1 between applications on the same Android device;

    1.2.1.2.2 amongst a community of Android devices; and

    1.2.1.2.3 with the mounted segment.

    1.3 Project Execution/Overview

    1.3.1 The Project will be organized to utilize agile methodology planning and reporting sequences. That is, for the expected duration of 6 months, the following cadence will be used:

    1.3.1.1 Bi-weekly "sprint" cycle will be used for technical tasks;

    1.3.1.2 Monthly progress reporting (financial, technical progress);

    1.3.1.3 Quarterly planning efforts (used to assess progress, work remaining, and work plans);

    1.3.1.4 End-of-quarter progress demonstrations;

    1.3.1.5 Seller will participate in bi-weekly virtual meetings where Seller will report on status (progress, issues, and risks);

    1.3.1.6 Meeting agendas, suitable times, and other details will be agreed between GDMS-C and Seller, but are expected to include:

    1.3.1.6.1 Project Kickoff meeting;

    1.3.1.6.2 Weekly or bi-weekly engineering meetings;

    1.3.1.6.3 Monthly Programme status meetings; and

    1.3.1.6.4 Following a loose agile cadence, quarterly planning session and end-of-quarter progress demonstration;

    1.3.1.7 Participation in technical design reviews will be agreed between GDMS-C and Seller, but are expected to include:

    1.3.1.7.1 High-level architecture review;

    
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        Subcontract #:324556

        SOW #: 1

    

    1.3.1.7.2 API/ICD review for critical interfaces;

    1.3.1.7.3 Demonstration plan and layout;

    1.3.1.7.4 Demonstration readiness review.

    1.3.2 Project Phases

    1.3.2.1 The project will consist of the following major phases, intended to structure and execute the target tasks to complete the requested deliverables. The phases are:

    Phase 1 - Architect the Solution

    Phase 2 - Develop/Buy/Demonstrate Critical Elements of the Solution

    1.4 Services

    1.4.1 The following Services shall be provided by the Seller in support of the Project:

    1.4.1.1 Phase 1: Define High Level Architecture - This phase is focused on identifying the elements of the solution, how they come together and the best path forward to realize and demonstrate the solution is fit for purpose. Key areas of investigation include:

    1.4.1.1.1 Exploration/early de-risking of:

    1.4.1.1.1.1 [***];

    1.4.1.1.1.2 [***];

    1.4.1.1.1.3 [***];

    1.4.1.1.1.4 [***];

    1.4.1.1.1.5 [***];

    1.4.1.1.1.6 [***]; and

    1.4.1.1.1.7 [***];

    1.4.1.1.2 Requirement Elicitation:

    1.4.1.1.2.1 What are the required services?

    1.4.1.1.2.2 What applications (available or requiring development) provide these services?

    1.4.1.1.2.3 What bearers are to be used, and what are their capabilities?

    1.4.1.1.2.4 What are the operational scenarios that will inform the deployment and IERs?

    1.4.1.1.2.5 [***]

    1.4.2.3.1 Develop a strawman architecture

    1.4.2.3.1.1 What are the elements?

    1.4.2.3.1.2 What is the data model?

    1.4.2.3.1.3 What is the over-the-air protocol?

    1.4.2.3.1.4 Define demonstration layout and capabilities.

    1.4.2.1 Phase 2: Procure and Integrate Initial Elements of the Solution - This phase is focused on identifying and sourcing elements that comprise the prototype solution. It expected to be 12 weeks in duration and will develop an end-of-PI demonstration suitable to be shown at the 2022 CANSEC trade-show (targeted for 1 June 2022). These elements may be procured or developed by GDMS-C or Seller. Key work elements include:

    1.4.2.1.1 Research to identify:

    
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        Subcontract #:324556

        SOW #: 1

    

    1.4.2.1.1.1 [***];

    1.4.2.1.1.2 [***];

    1.4.2.1.1.3 [***];

    1.4.2.1.1.4 [***]; and

    1.4.2.1.1.5 [***]

    1.4.2.1.2 Develop services and interfaces, as required.

    1.4.2.1.3 Develop a demonstration capability that highlights discriminating features of the solution. This demonstrator is planned to be showcased at the 2022 CANSEC trade-show.

    1.4 Acronyms

    ACA - After Contract Award

    API - Application Program Interface

    DDS - Data Distribution Service

    GPS - Global Positioning Service

    GFE/GFI - Government Furnished Equipment/Government Furnished Information

    ICD - Interface Control Document

    OS - Operating System

    PI - Program Increment

    RTI - Real Time Innovations

    TacCIS - Tactical Communication Information System

    TNaaS - Tactical Networking as a Service

    VMF - Variable Message Format

    1.5 Deliverables

    1.6.1 The following Deliverables shall be provided by the Seller in support of the Project:

    	Item #	Qty	Item Description	Notes	Part Number/SKU
	1	3	Mount, PALS Armor, Tablet Series - Color - Tan	 	JG.MT.PALS.075
	2	3	SLEEV, Tab Active 3 Case - Color - Tan	 	JG.SL.TAB.ACT3-QDD
	7	3	Soldier Battery - Solopack	Solopack Battery	4-1311-0001
	8	3	Battery Charger	Nerv-Centr Charger	4-1406-0001
	11	3	Cable EUD to Mission Manager	Juggernaut USB-C to Might Mouse Plug	  JG.CBL.QDK
	14	3	Headset	INVISIO T7 Headset	 
	15	3	Dual PTT	INVISIO V50 II	 
	18	 	Load Carriage Items	 	 
	19	3	Vest (Size L/XL) (Multi Cam)	TYR-PICO-MVW-MC	TYR-PICO-MVW-MC
	20	3	Radio Pouch (Multi Cam)	TYR-CM0116-01C-MC	TYR-CM0116-01C-MC
	21	3	Misc Cables Pouch (Multi Cam)	TYR-GP057-MC	TYR-GP057
	22	 	Surveillance System	 	 
	23	2	SPOTTER LRF PRO	LRF and Spotting Scope	 

    

    
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        Subcontract #:324556

        SOW #: 1

    

    

    	
                24

            	
                2

            	
                LRF Cable

            	
                 

            	
                 

            
	
                25

            	
                2

            	
                NC BURD

            	
                Fast Acquisition Sight

            	
                 

            
	
                26

            	
                2

            	
                Scout Scope Camera

            	
                 

            	
                 

            
	
                27

            	
                4

            	
                USB to Hub Cable

            	
                 

            	
                808-053

            
	
                28

            	
                2

            	
                TriPod

            	
                TACT 3-S Tripod

            	
                 

            
	
                 

            	
                 

            	
                 

            	
                 

            	
                 

            

    1.6.1.1 The Seller shall perform work and provide all service deliverables described in Subsection 1.4 as required and directed by GDMS-C.

    1.6.1.2 The seller shall procure and provide the following pieces of equipment:

     

    1.6.2 All deliverables will be provided to GDMS-C.

    1.6.3 All deliverables, including outlines, interim, draft, final and updates will be provided to GDMS-C with schedules established during the program. Deliverables must be provided in English.

    1.6.4 For standard documentation: Seller will use MS Word, MS Excel, MS PowerPoint, MS Visio, or other document types as may be agreed on by the GDMS-C.

    1.6.5 GDMS-C will respond to Seller on deliverables for review or approval, with comment or an approval decision, within five (5) business days of receipt from the Seller.

    1.6.6 Status meetings will be conducted bi-weekly with status meeting notes and actions recorded and distributed using applications outlined in Subsection 1.3.

    1.7 Schedule

    	Number	Task
reference	Description of the Deliverables	Quantity and Format	Due Date
	1	 	Participation in kick-off, quarterly PI and bi-weekly sprint planning meetings, and periodic design reviews and project reviews.	Minutes, design artefacts, and documentation	As required
	2	Phase 1	Procurement and delivery of the material/equipment deliverables identified in in Subsection 1.6.1.2	Proof of receipt of equipment to be retained at KWESST, or physical goods for equipment to be retained at GDMS-C facilities.	12 weeks after issuance of SOW.
	3	Phase 2, PI1	Delivery of an end-of-PI demonstrator, suitable for inclusion at CANSEC, the definition of which is to be defined/agreed at the planning sessions for PI1 and PI2.	To be defined at PI planning sessions	24 weeks after issuance of SOW.

    

    
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        Subcontract #:324556

        SOW #: 1

    

    1.8 Resources required from Seller

    1.8.1 The following resources will be provided by the GDMS-C to the Seller:

    1.8.1.1 An overview and review of existing mounted solution.

    1.8.1.1.1 The existing solution is expected to provide candidate solution components; specific components to be reused are dependent on the architectural solution to be designed during Phase 1.

    1.8.1.2 An overview and access to uncontrolled TacAR router components.

    1.8.1.2.1 Due to GFE/GFI restrictions related to VMF, the integrated solution will use the non US-controlled version of its TacAR router, referred to as the International TacAR router

    1.8.1.2.2 This is expected to be used as a test harness during the development/integration activities

    1.8.1.3 Standard interface to send/receive messages

    1.8.1.3.1 In conjunction with the Seller, an API will be defined that allows messages to be sent and received using the Message Delivery Service on the Android device

    1.8.1.4 Message Delivery Service binary (i.e. TacAR) operating on Android device. This service will be based on the International TacAR router and will implement the agreed messaging API.

    1.8.1.5 Radio interface software module

    1.8.1.5.1 Message transmission and receiving will occur using the messaging API. The physical interface to/from the radio device is expected to be contained within the Message Delivery Service (or derivative software service) to be provided by GDMS-C.

    1.8.1.6 Test harness operating on standard data terminal

    1.8.1.6.1 Allows message exchange to be tested using standard Ethernet (or WiFi) interface

    1.8.1.6.2 No CNR radios required

    1.8.1.7 Normal development infrastructure (i.e. development PCs, compile machines, Android emulation devices) are expected to be provided by the GDMS-C for execution of their duties. Demonstration equipment and specialist test equipment will be provided by the Seller for usage on GDMS-C premises, or alternatively, for usage on Seller premises. Whenever feasible, the Seller requests that equipment needs be discussed during the quarterly planning efforts.

    1.9 Contacts

    	 	Name	Title/Roll	Phone	Email
	Seller	Rick Bowes	Program Manager	******	******
	Seller	Warren Downing	Technical Lead	******	******

    

    
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        Subcontract #:324556

        SOW #: 1

    

    

    	
                GDMS-C

            	
                Tim Smith

            	
                Program Manager

            	
                ******

            	
                ******

            
	
                GDMS-C

            	
                Jeff White

            	
                Technical Authority

            	
                ******

            	
                ******

            
	
                GDMS-C

            	
                Kevin McMurray

            	
                Authorized
Contracting Authority

            	
                ******

            	
                ******

            

    1.10 Acceptance

    1.10.1 Except as otherwise specifically provided below, criteria for acceptance of the Work, including without limitation the Deliverables, shall be as determined by the GDMS-C Program Manager. The Work, including the Deliverables shall be subject to review and approval by the GDMS-C Program Manager.

    2. Commercial Terms

    2.1 Period of Performance

    2.1.1 The period of performance for Work shall commence December 2021 and complete May 2022 ("Period of Performance").

    2.2 Seller's Contractor(s') Availability

    2.2.1 Except as otherwise agreed with the GDMS-C Contracting Authority, there shall be no pre-set hours of work and the Seller's Contractors shall be available to perform the Work on any day of the week, Sunday through Saturday, in coordination with the Authorized Technical Representative.

    2.2.2 Except as otherwise specifically agreed in writing with the GDMS-C Contracting Authority, the Seller's Contractors shall not be entitled to claim Overtime for the performance of Services.

    2.2.3 Overtime is defined by the Ontario Labour Code as work in excess of forty-four (44) hours of work in a calendar week (Sunday through Saturday, inclusive), or on Statutory Holidays as defined therein.  Overtime shall be defined in accordance with the provisions of the applicable labour law in effect in the jurisdiction where Seller's Contractors are performing Services ("Overtime").

    2.2.4 If Overtime is to be specifically permitted by GDMS-C in writing, the following shall apply:

    2.2.5 "Full-Time Availability" means availability during the Period of Performance on a "Man-Day" basis, that is, eight (8) hours per day, Monday to Friday, within GDMS-C core business hours, subject to the provisions applicable to Overtime.  A Man-Day excludes Canadian statutory and GDMS-C company holidays, employee annual vacation, and sick days ("Excluded Days").

    2.2.6 Overtime consideration shall not be given to the period of time, in excess of Full Time Availability and on Excluded Days, during which the Seller's Contractors provide Services.

    2.3 GDMS-C Financial & In-Kind Contribution

    2.3.1 The basis of payment for Work, including Deliverables, provided under this SOW is as follows:

    The firm fixed price for Work, including Deliverables, is $297,875, is stated in Canadian dollars, is inclusive of all overheads, mark-ups and fees, and is valid for the Period of Performance ("Price"). GDMS-C's liability to Seller for Work, including Deliverables, provided under this Statement of Work, excluding Sales Taxes (defined in the Agreement), shall not exceed the Price and Seller shall not adopt any changes in the Work, including Deliverables, that would cause an increase in the Price unless otherwise authorized in writing by the GDMS-C Contracting Authority. The Price for this SOW shall be payable by GDMS-C to Seller upon execution of this SOW and corresponding receipt of a valid invoice from the Seller.

    
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    2.3.2 The value of GDMS-C's in-kind contribution, as labour under this SOW, is $[***].

    2.3.3 The total Value of this SOW, as referenced in Section 23 (Offset Credits) in the Terms and Conditions of the Agreement is $[***]

    2.4 Work Location

    2.4.1 The KWESST development and initial integration activities will primarily occur at KWESST facilities. Final integration and demonstration activities will be completed at Seller's facilities: 155 Terence Matthews Crescent, Ottawa, Ontario, Canada, K2M 2A8.

    2.5 Travel and Living

    2.5.1 KWESST is not required to travel for this work.

    2.5.2 All payments are subject to government audit.

    2.6 Other Costs

    2.6.1 Any other costs that may be required to be incurred by the Seller in order to perform Work shall be subject to prior written agreement between GDMS-C and the Seller.

    2.7 Tracking and Reporting

    2.7.1 Reporting shall be provided by Seller on a weekly basis recording all work performed in support of this SOW.

    In witness whereof, the Parties have caused this SOW to be executed by their duly-authorized representatives to be effective as of the Period of Performance stated above.

    	For and on behalf of:
General Dynamics Land Systems - Canada Corporation doing business as General Dynamics Mission Systems - Canada	 	For and on behalf of:
KWESST Micro Systems Inc.
	

/s/ Kevin McMurray

	 	

/s/ Rick Bowes
	 	        	 
	I warrant that I have authority to bind the company.	 	I warrant that I have authority to bind the company.
	Signed by:	 	 	Signed by:	 
	Name:	Kevin McMurray	Name:	Rick Bowes
	Title:	Subcontracts Commercial Officer	Title:	VP Operations

    

    
         

    

    
        8KWESST Micro Systems Inc.: Exhibit 10.17 - Filed by newsfilecorp.com

    

    
        	

    

    

    SUBCONTRACTOR AGREEMENT

    I. The Parties. This Subcontractor Agreement ("Agreement") made on July 6, 2022, is between CounterCrisis Tech with a mailing address of 9 Goldridge Drive, Ottawa, Ontario, K2T 1C8 ("Contractor") and KWESST Micro Systems Inc. with a mailing address of 155 Terry Matthews Drive, Ottawa, Ontario, K2M 2A8 ("Subcontractor") both of whom agree as follows:

    II. The Client. The Subcontractor acknowledges that any work performed under this Agreement must be in accordance with the latest version agreement(s) ("Prime Contract") made between the Contractor and Public Safety Canada with a mailing address of 425 Bloor Street East, Suite 597, Toronto, Ontario, M4W 3R4 ("Client").

    III. Services Provided. Subcontractor agrees to complete the following: software configuration, development, integration, implementation, and delivery in accordance with the Project Description and Work Plan outlined in ANNEX A of the Prime Contract ("Services").  Specifically, these services apply to the following:

    	Year 1 Work Plan items A, C, D, E, I, J, and K
	Year 2 Work Plan items A, and D
	Year 3 Work Plan items A, B, and C

    IV. Subcontractor Responsibilities. Subcontractor shall be responsible for providing the following when performing their Services:

    Labour - Including, but not limited to, employees, subcontractors and any other individuals or agents.

    Materials - Including, but not limited to, all supplies and products.

    Equipment - Including, but not limited to, machinery, accessories, or devices.

    Travel - Including, but not limited to, ensuring that the above-mentioned Responsibilities are provided at the Location mentioned in Section V.

    

    

    
        	

    

    V. Location. The primary location for the Services completed by the Subcontractor shall be:

    	Ottawa, Ontario ("Location").

    	Determined at a later time by the Contractor ("Location") and agreed to by the Subcontractor.

    VI. Commencement Date. The Subcontractor shall be permitted to begin the Services on July 6, 2022 ("Commencement Date").

    VII. Completion. The Subcontractor will be required, unless otherwise stated under the terms of this Agreement, to complete the Services:

    	By the specific Year 1 date of March 31, 2023.
	By the specific Year 2 date of March 31, 2024.
	By the specific Year 3 date of March 31, 2025.

    VIII. Payment Amount. Payment for the Services shall be as follows:

    	Year 1 $234,596;
	Year 2 $224,596; and
	Year 3 $214,596.

    IX. In-Kind Contributions. Subcontractor in-kind contributions shall be as follows:

    	Year 1 $21,389;
	Year 2 $22,458; and
	Year 3 $32,352.

    If the Subcontractor asserts a claim which involves, in whole or in part, acts or omissions which are the responsibility of the Client or another person for whom a claim may be submitted, including but not limited to, claims for failure to pay, an extension of time, impacts, delay damages, or extra work, the Contractor shall present the Subcontractor's claim to the Client or other responsible party provided the Subcontractor presents to Contractor competent supporting evidence and in sufficient time for the Contractor to do so. The Subcontractor shall cooperate fully with the Contractor in any and all steps the Contractor takes in connection with prosecuting such a claim and shall hold harmless and reimburse the Contractor for all expenses, including legal expenses, incurred by the Contractor which arise out of the Contractor's submission of the Subcontractor's claims to the Client or other responsible parties. The Subcontractor shall be bound by any adjudication or award in any action or proceeding resolving such a claim.

    

    

    
        	

    

    X. Payment Method. Payment shall be made by the Contractor to the Subcontractor on a monthly basis in alignment with the Reporting Requirements and Payment Schedule outlined in ANNEX C of the Prime Contract.

    Satisfaction of the completed Services by the Subcontractor shall be completed within a reasonable time period. "Satisfaction" shall be a determination, in good faith, made by the Contractor and in accordance with commonly accepted industry standards.

    If the Client, or other responsible party delays in making any payment to the Contractor, from which payment to Subcontractor is to be made, Contractor shall have a reasonable time to make payment to Subcontractor. "Reasonable time" shall be determined in relation to relevant circumstances, but shall in no event be less time than required for Contractor and Subcontractor to pursue a conclusion to their legal remedies against the Client or other responsible party to obtain payment.

    XI. Subcontracting. Subcontractor may not subcontract, either part or in whole, the Services authorized under this Agreement.

    XII. Assignment. Subcontractor shall not have the right to assign any rights under this Agreement or any part of the Services issued herein. Subject to the foregoing, this Agreement shall be binding upon the parties' heirs, executors, successors and assigns.

    XIII. Insurance. The Contractor shall require the Subcontractor to have liability insurance in alignment with the terms and conditions of the Prime Contract.

    XIV. Resolution of Disputes. If a dispute arises concerning the provisions of this Agreement or the performance of any of the parties mentioned, the parties hereby agree to settle the dispute by equally paying for mediation as regulated under the laws of the Province of Ontario. The parties agree to enter into negotiations, in good faith, and through a neutral mediator in an attempted to resolve the dispute. If a resolution to the dispute cannot be made by mediation, the parties agree to enter into binding arbitration.

    

    

    
        	

    

    Completion, as determined under this Section, may be changed if the Services cannot begin or end due to circumstances beyond the control of the Contractor, or any other issues considered outside the control of the parties in this Agreement.

    XV. Termination. During the course of this Agreement, Contractor or Subcontractor may, at any time and for any reason, terminate this Agreement for convenience with at least 30 business day(s) notice. In the event of termination for convenience, Subcontractor shall recover only the actual cost of work completed to the date of termination in approved units of work or percentage of completion.

    XVI. Claims. If any claim is made by the Contractor or Subcontractor in connection with a Change Order or regarding any related issue with this Agreement or the performance of Services and/or Services to be provided, either party shall have the right to submit written notice of such claim through certified mail with return receipt. After receipt of a written claim by either party of this Agreement, the parties shall have 30 business day(s) to correct the claim prior to seeking a resolution under the instructions in Section XIII.

    XVII. Change Orders. Any alteration or deviation from the Services mentioned or any other contractual specifications that result in a revision of this Agreement shall be executed and attached to this Agreement as a change order ("Change Order"). Both Parties shall mutually negotiate in good faith the additional compensation to Subcontractor for the change orders.

    XVIII. Entire Agreement. This Agreement represents the entire agreement between the Contractor and Subcontractor. This Agreement supersedes any prior written or oral representations. Subcontractor suppliers are bound to the Contractor by the prime contract and any contract documents incorporated therein to the same extent as Contractor is bound to the Client insofar as they relate in any way, directly or indirectly, to the Services provided and covered in this Agreement.

    XIX. Time. Time is of the essence of this Agreement. Subcontractor shall provide the Contractor with scheduling and reporting information in a form acceptable to the Contractor and shall conform to the Contractor's progress schedules, including any changes made by the Contractor in the scheduling of Services. Subcontractor shall coordinate its Services with that of all other contractors, subcontractors, and suppliers so as not to delay or damage their performance.

    

    

    
        	

    

    XX. Delays. Should the Subcontractor delay the Contractor, or any other contractors, subcontractors, or suppliers on the entire project, Subcontractor will indemnify the Contractor and hold Contractor harmless for any damages, claims, demands, liens, stop notices, lawsuits, attorneys' fees, and other costs or liabilities imposed on the Contractor connected with said delay. Among other remedies for Subcontractor's delay, the Contractor may supplement the Subcontractor's work and deduct associated costs at Contractor's election.

    XXI. Inspection of Services. Subcontractor shall make the Services accessible at all reasonable times for inspection by the Contractor. Subcontractor shall, at the first opportunity, inspect all material and equipment delivered by others to be used or incorporated in the Subcontractor's Services and give prompt notice of any defect therein. Subcontractor assumes full responsibility to protect the work done hereunder until final acceptance by the Contractor or any authorized third (3rd) party.

    XXII. Labour Relations. Subcontractor shall maintain labour policies in conformity with the directions of the Contractor and under Provincial laws.

    XXIII. Indemnification. To the fullest extent permitted by law, Subcontractor shall defend, indemnify and hold harmless the Client and Contractor along with any of their agents, employees, or individuals associated with their organization, in alignment with the terms of the Prime Contract, from claims, demands, causes of actions and liabilities of any kind and nature whatsoever arising out of or in connection with the Subcontractor's Services or operations performed under this Agreement and causes or alleged to be caused, in whole or in part, by any act or omission of the Subcontractor or anyone employed directly or indirectly by Subcontractor or on Subcontractor's account related to Subcontractor's Services hereunder. This indemnification shall extend to claims occurring after this Agreement is terminated as well as while it is in force. The indemnity shall apply regardless of any passively negligent act or omission of the Client or Contractor, or their agents or employees, but Subcontractor shall not be obligated to indemnify any party for claims arising from the active negligence, sole negligence, or willful misconduct of Client or Contractor or their agents or employees or arising solely by the designs provided by such parties. To the extent that Provincial law limits the defence or indemnity obligations of the Subcontractor either to Contractor or Client, the intent hereunder is to provide the maximum defense and indemnity obligations allowed by the Subcontractor under the law. The indemnity set forth in this Section shall not be limited by any insurance requirement or any other provision of this Agreement.

    

    

    
        	

    

    XXIV. Warranty. Subcontractor warrants to Client and Contractor that any and all materials and equipment furnished shall be new unless otherwise specified and that all Services provided under this Agreement will be performed, at a minimum, in accordance with industry standards. All work not conforming to these requirements, including substitutions not properly approved and authorized, may be considered defective. The warranty provided in this Section shall be in addition to and not in limitation of any other warranty or remedy required by law or by the Prime Contract.

    XXV. Required Licenses. All parties of this Agreement, including but not limited to, Contractor, Subcontractor, other subcontractors, and all parties' direct or indirect employees and agents shall be licensed in accordance with respective Provincial laws where individuals are performing their service. All individuals under this agreement shall be regulated by their respective licensing board which has jurisdiction to investigate complaints made by any third (3rd) parties.

    XXVI. Confidentiality. For the purposes of this Agreement, "Confidential Information" shall mean any information or material that is proprietary to a party or designated as confidential by such party ("Disclosing Party") and received by another party ("Receiving Party") as a result of this Agreement. Confidential Information may be considered any information that is conceived, originated, discovered or developed in whole or in part by the Subcontractor in accordance with providing their Services. Confidential Information does not include (1) information that is or becomes publicly known without restriction and without breach of this Agreement or that is employed at or after the time the Receiving Party first learns of such information; (2) generic information or knowledge which the Receiving Party would have learned in the course of similar employment or work elsewhere; (3) information the Receiving Party lawfully receives from a third (3rd) party without restriction of disclosure and without breach of a nondisclosure obligation; (4) information the Receiving Party rightfully knew prior to receiving such information from the Disclosing Party to the extent such knowledge was not subject to restrictions of further disclosure; or (5) information the Receiving Party develops independent of any information originating from the Disclosing Party.

    A.) Prime Confidential Information. The following shall constitute Confidential Information of the Contractor and should not be disclosed to third (3rd) parties: the deliverables, discoveries, ideas, concepts, software [in various stages of development], designs, drawings, specifications, techniques, models, data, source code, source files, object code, documentation, diagrams, flow charts, research, development, processes, procedures, "know-how", marketing techniques and materials, marketing and development plans, customer names and other information related to customers, price lists, pricing policies and financial information, this Agreement and the existence of this Agreement, the relationship between the Contractor and Subcontractor, and any details of the Service under this Agreement. Subcontractor agrees not to use or reference the Contractor and/or their names, likenesses, or logos ("Identity"). Subcontractor will not use or reference Contractor or their Identity, directly or indirectly, in conjunction with any other third (3rd) parties.

    

    

    
        	

    

    B.) Non-Disclosure. The parties hereby agree that during the term hereof, and at all times thereafter, and except as specifically permitted herein or in a separate writing signed by the Disclosing Party, the Receiving Party shall not use, commercialize or disclose Confidential Information to any person or entity. Upon termination, or at any time upon the request of the Disclosing Party, the Receiving Party shall return to the Disclosing Party all Confidential Information, including all notes, data, reference materials, sketches, drawings, memorandums, documentation and records which in any way incorporate Confidential Information.

    C.) Right to Disclose. With respect to any information, knowledge, or data disclosed to the Contractor by the Subcontractor, the Subcontractor warrants that the Subcontractor has full and unrestricted right to disclose the same without incurring legal liability to others, and that the Contractor shall have the full and unrestricted rights to use and publish the same as it may see fit. Any restrictions on Contractor's use of information, knowledge, or data disclosed by Subcontractor must be made known to Contractor.

    XXVII. Notices. All notices under this Agreement shall be in writing and sent to the address of the recipient specified herein. Any such notice may be delivered by hand, by overnight courier, certified mail with return receipt, or first class pre-paid letter, and will be deemed to have been received (1) if delivered by hand - at the time of delivery; (2) if delivered by overnight courier - 24 hours after the date of delivery to courier with evidence from the courier; (3) if delivered by certified mail with return receipt - the date as verified on the return receipt; (4) if delivered by first class mail - three (3) business days after the date of mailing.

    

    

    
        	

    

    XXVIII. Injunctive Relief. Subcontractor acknowledges it would be difficult to fully compensate the Client and/or Contractor for damages resulting from any breach of this Agreement. Accordingly, in the event of any breach of this Agreement, the Client and/or Contractor shall be entitled to temporary and/or permanent injunctive relief to enforce such provisions.

    XXIX. Severability. If any term, covenant, condition, or provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

    XXX. Independent Contractor. No term, covenant, condition, or provision of this Agreement shall be considered to create an employer and employee relationship, a master-servant relationship, or a principal and agent relationship between Subcontractor and/or any of the Subcontractor's employees and the Contractor or Client. All parties to this Agreement attest that the relationship between the Contractor and Subcontractor shall be recognized as the Subcontractor acting as an independent contractor.

    XXXI. Force Majeure. Neither party shall be liable for any failure to perform under this Agreement when such failure is due to causes beyond that party's reasonable control, including, but not limited to, acts of State or governmental authorities, acts of terrorism, natural catastrophe, fire, storm, flood, earthquakes, accident, and prolonged shortage of energy. In the event of such delay, any date stated herein shall be extended by a period of time necessary by both Contractor and Subcontractor. If the delay remains in effect for a period more than thirty (30) days, Contractor has the right to terminate this Agreement upon written notice to the Subcontractor.

    XXXII. Governing Law. This Agreement shall be governed under the laws in the Province of Ontario.

    XXXIII. Attachments. The Contractor may attach any plans, schematics, drawings, details, or other information to assist the Subcontractor with the aforementioned Services. Any attachment made shall be made part of this entire Agreement.

    

    

    
        	

    

    IN WITNESS WHEREOF, this Agreement was signed by the parties under the hands of their duly authorized officers and made effective as of the undersigned date.

    Contractor's Signature /s/ Don Williams

    Date: July 6, 2022

    Print Name: Don Williams, Founder & CEO

    Company Name: CounterCrisis Tech

     

    Subcontractor's Signature /s/ Rick Bowes

    Date: July 6, 2022

    Print Name: Rick Bowes, VP Digitization and Counter-Threat Products

    Company Name: KWEEST Inc.

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