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Appendix A Client Services Agreement
Between Pixel Witch, Inc. & Client

Client will be responsible for all facets of Client direction, invoicing, and prioritization of the Work. Client has contracted PWI’s web design services. In the event that Client needs PWI’s maintenance services to achieve Client’s internet objectives PWI also has included maintenance pricing which is valid from the date of signature to this Agreement through December 31, 2008. PWI will create, at the Client’s direction, the Client’s web site.

For this project a page will be considered 8.5” x 11” and will use graphics given to PWI by Client as well as stock graphics. The pages will contain text and graphics only. This work does not include any other programming such as form creation, advanced javascript, flash or any other advanced Internet technology. PWI agrees to provide the Work in versions compatible with .html, Macromedia Dreamweaver 4.0 and above, Adobe Illustrator 10.0 and above, and Adobe Photoshop 7.01 and above. PWI is not obligated to deliver the Work for use on any other platform.

Scope of Project: Client agrees to initially provide PWI with all copy in electronic form compatible with .html or Microsoft Word 4.0 or above. Client understands and agrees that in the event copy is not recieved in the aforementioned formats Client will incur a typing fee of $45.00 (US) per page.

PWI will initially generate one (1) design based on Client direction for use in the creation of the template. The template will be used for all of the pages of the site to ensure consistent design and navigation. The page design will contain contact information and facilitate emailing to an address that the Client will specify.

PWI will provide initial designs for the site in .pdf or .html format for review, file format is at the descretion of PWI. Two (2) rounds of changes are included in this design review process. Any additional rounds of design changes will be billed at the hourly graphic design rate as outline in the Maintenance Rates.

Upon approval of template design, the entire site will then be created to include the template as the basis for the rest of the site. Any additional changes to the template after the design approval process ends will be made at the consultancy rate as outlined in the payment section.

Client acknowledges that any additional alterations to template after design approval may possibly result in unexpected changes to the entire site and any reworking of site pages will be billed at the consultancy rate as outlined in the payment section.

PWI will accommodate two (2) rounds of spelling and grammar corrections to all pages prior to posting the site on Client’s web host. No other changes will be made to pages unless it is at the consultancy rate as outlined in the payment section.

This project will also contain Client supplied graphics, or graphics that PWI may utilize for this project. All Client supplied graphics will be provided to PWI in either hard copy or electronic format that is compatible with Adobe Photoshop 5.5 or above. All finished scans for the site will be generated with the sole intent for use on the Internet at 72 dpi in gif or jpg format. No photo retouching or manipulation other than sizing will be done by PWI unless it is at the graphic design rate as outlined in the Maintenance Rates.

PWI will ensure that these pages are compatible with Internet Explorer 5.0 PC browsers and 4.77 Netscape browsers to the best of it’s ability. All Client design considerations are contingent on this compatibility. Testing of the site will be a joint effort between PWI and Client. PWI will to the best of it’s ability, test the web site for compatibility and will work with the Client to make sure each of the pages displays accurately. PWI will not be liable for any security issues that may arise from the creation of this site. PWI is not held responsible for any dealings with Client’s vendors.

Work to Become Clients: PWI recognizes and acknowledges that the Client possesses certain confidential information that constitutes a valuable, special, and unique asset. All text, graphics and electronic representation of Client submitted hard copy images shall be the sole property of Client. PWI further agrees that Client will have non-exclusive use of all PWI graphics and design. Client will also have use of all PWI created html source code. Furthermore Client will retain the exclusive rights to all copy provided by Client that is used in the web site. Any presentations or other copy related text created by PWI for this project shall remain the property of the Client.

Work for which PWI can’t grant rights: Such data and materials include, but are not limited to, PWI client listings, PWI client contacts, PWI financial data, PWI marketing and sales strategies, PWI company policies, statistics, company activities and objectives, PWI designs, graphics, ideas and proposals for packaging, merchandising and marketing. PWI will retain rights and have use of all PWI graphics and design elements created for use on this project. PWI will also retain rights and have use of all PWI created html source code. Any graphics that were obtained by PWI to be used with permission for this project only. Their rights remain with their prospective copyright holders. Any clip or stock art that was obtained by PWI. Their rights remain with their prospective copyright holders. Any clip or stock source code that was obtained by PWI. Their rights remain with their prospective copyright holders. All notes, reports, sketches plans, unpublished memoranda, supplies, sound recording, video tapes, films, photographs, chemical and/or biological materials or other documents, material and information recorded or stored by means of any device, including, but not limited to that created developed, generated or held by PWI during the period in which PWI creates for Client use. All information concerning or related to Pixel Witch’s business, and whether containing or relating to Confidential Information or not, are the property of Pixel Witch and, upon termination of PWI’s services for any reason whatsoever, will be promptly and appropriately stored, filed, labeled and returned to appropriate individuals and shall not be destroyed, mutilated, copied, mislabeled, misfiled or in any other way made inaccessible to PWI. Client shall not remove or accept any of the above property whether or not containing Confidential Information, or reproductions or copies thereof, or any materials or apparatus from the PWI premises without a written transmittal from PWI.

Payment: Client agrees to pay PWI for services described in this Appendix ‘A.’ All payment must be in US dollars. A non-refundable deposit of half of total project price will be paid by Client to PWI as an initial non-refundable deposit for the template creation and application as indicated in “Appendix A.” Upon completion of template creation and application as discussed in “Appendix A” the balance of the project price shall be made to PWI prior to upload of Client’s web host. Complete payment for all work is due prior to upload of completed Work to Client’s web host. In the event of late payment, all timelines and deadlines will be pushed back according to the number of days that it takes for Client to become current on payment.

Any additions and/or changes other than those outlined in this Appendix ‘A’ and not covered in PWI Maintenance fees will be billed at a consultancy rate of $200.00 (US) per hour. Client agrees that there can be no time limit to complete these additions and/or changes. Client also agrees that any additions and/or changes will completely negate all agreed timelines. Client acknowledges that unless all monies due have been collected site will not be made available for upload under any circumstances. Any additional fees shall be paid at time of service to Pixel Witch, Inc.

Miscellaneous: Client further agrees to allow a link from their web site to PWI and a link from PWI to their site. The size and nature and placement of the link shall be at the sole discretion of PWI.

Substantially all of the work will be conducted by PWI at its regular office located in Wauconda, Illinois. Client will provide PWI office space and support as it agrees may be appropriate, at its facility. PWI will interface with Client on an as needed basis in order to complete this project. Interface will occur by phone, fax, e-mail and other technologies as appropriate. All procedural and administrative tasks central to the project will also be completed as directed by Client. All Client interface not covered by Appendix A is of a valuable nature and will be rounded to the nearest quarter hour for billing purposes. All project quotes are valid thirty (30) days from date of submittal. Pricing and services subject to change without prior notice.

1. SERVICES
PWI shall perform services for Client as specified in the Work Statement attached hereto as Appendix ‘A’ (the “Work”), which is expressly made a part hereof. Client understands that the performance of PWI is dependent upon periodic reviews by Client of the Work prior to PWI’s completion of said Work. Client shall provide timely reviews and comments to PWI upon PWI’s notice of review, but in no case shall such review occur more than five (5) days after PWI’s notice. In the event that Client does not provide such review and comments as specified herein, PWI and Client agree and understand that such non-action is and shall be considered approval of Work under review. In the event that Client does not provide said review, and PWI, in PWI’s sole judgment determines that such non-action would prevent PWI from completing the Work, PWI may terminate this Agreement with five (5) days written notice to the Client. With respect to any maintenance or upgrades to the Work, Client agrees to allow PWI to bid on any maintenance or update of the Work.

2. OWNERSHIP
2.1 PWI shall have sole and exclusive ownership of all right, title, and interest in and to PWI’s underlying source code of this Work, all modifications, developments, derivative works and enhancements to PWI’s Work, as well as any and all related technologies, reports, memoranda, studies, writings, articles, plans, designs, specifications, exhibits, software code, copies or other materials whether made by PWI, Client or any other entity or individual, individually or jointly, including ownership of all copyrights and other intellectual property rights pertaining thereto.

2.2 Client shall have sole and exclusive ownership of all right, title, and interest in and to one (1) copy of the machine readable format of the Work as outlined in “Appendix A”. This Agreement provides PWI with title or ownership of PWI’s underlying source code of this Work.

2.3 In the event that any portion of any Work constitutes a work for which PWI cannot grant to Client the license rights set forth herein, PWI shall so specify in Appendix ‘A’ attached hereto.

3. LIMITED LICENSE:
3.1 PWI hereby grants to Client a nonexclusive, nontransferable right and license to:

(a) Install the Work on Client’s web server;

(b) Use and execute the Work for purposes of serving Client’s internal needs;

(c) In support of Client’s authorized use of the Work, physically transfer the Work from one computer to another; store the Work’s machine-readable instructions or data on a temporary basis in main memory, extended memory, or expanded memory of such computer system as necessary for such use; and transmit such instructions or data through computers and associated devices at the Designated Location(s); and

(d) make two (2) copies of the Work for non-production backup purposes only, provided that Client reproduces and includes PWI’s copyright notice and proprietary legend on the backup copy made by Client for non-production backup purposes.

3.2 Unless otherwise specified in Appendix ‘A’, Client may not use, copy, modify, transcribe, transmit, store, translate, sell, lease, distribute or otherwise transfer the Work (electronically or otherwise), or any copy, adaptation, transcription, derivative work, development, modification, enhancement, or merged portion thereof, except as expressly authorized by PWI in writing. Client may not decompile, reverse engineer, or otherwise translate the Work or any copy, adaptation, transcription, modification, development, derivative work or enhancement thereof, as specified in Appendix ‘A’ in any way shape or form. Client’s license may not be transferred, sold, leased, assigned, or sublicensed without the prior written approval of PWI.

4. Client Provided Information
Client understands that the performance of PWI is dependent upon timely submittal by Client of information necessary for PWI to perform contracted Work. Client shall provide PWI with information, including but not limited to: written content, photos, schematics, video, hardware and software as appropriate and applicable to the Work as outlined in Appendix ‘A’, within seven (7) days after execution of this Agreement. Client agrees that the Work, as outlined in Appendix ‘A’, is the complete list of tasks and goals regarding the Work, and are a detailed description and objectives for the project. Client understands that these components are a vital part of the Work and will furnish any information, hardware and software needed to complete the Work prior to beginning the Work. All timelines and deadlines that PWI has agreed on are dependent on timely receipt of this information. In the event that Client does not provide the required information within the time specified herein, PWI may terminate this Agreement with five (5) days written notice to the Client.

5. Payment
PWI will be paid by the Client for the Work performed under this Agreement as specified in Appendix ‘A’ attached hereto and made a part hereof. The Client shall pay invoices within ten (10) days after receipt. Past due amounts due to PWI will bear interest at the rate of one and one-half percent (15%) per month, or the maximum rate permitted by applicable law, whichever is less. Client acknowledges that, until all monies due have been collected, the Work and any modifications, developments, derivative works and enhancements thereof, will not be made available under any circumstances. In the event of late payment, all Work will stop until Client’s balance becomes current. Any applicable additional fees shall be paid at time of service to PWI.

6. Confidentiality
6.1 Client and PWI recognizes and acknowledges that each party possesses certain confidential information that constitutes a valuable, special, and unique asset. As used herein, the term, “Confidential Information”, includes, without limitation, all information and materials belonging to, used by, or in the possession of PWI or Client relating to the Work, object code, source code, PWI or Client products, processes, services, technology, inventions, patents, ideas, contracts, financial information, developments, business strategies, pricing, current and prospective customers, marketing plans, and trade secrets of every kind and character. Client and PWI agree that all of the Confidential Information is and shall continue to be the exclusive property of PWI or Client respectively. Client and PWI agree that both parties shall not, at any time following the execution of this Agreement, use or disclose any Confidential Information in any manner except as authorized by each other in writing. Moreover, both parties shall use its best efforts to protect and defend the confidential and proprietary nature of the Work, including any and all computer code, enhancements, derivative works, developments or modifications of the Work.

6.2 Client and PWI shall not disclose the Confidential Information to any third party except as authorized by appropriate party in writing. Client and PWI shall limit access to Confidential Information to those Client employees having a specific need for such access in the performance of their duties, consistent with the purposes herein, and Client shall obtain written executed agreements from any employees given such access sufficient to maintain the confidentiality of such material.

6.3 Client’s and PWI’s duty of confidentiality set forth herein shall survive the termination, expiration or cancellation of this Agreement.

7. WORK PROVIDED “AS IS”
7.1 ANY AND ALL WORK HEREUNDER OR IN CONNECTION HEREWITH (INCLUDING BUT NOT LIMITED TO ANY INCLUDED OR ADDITIONAL GOODS, PRODUCTS AND/OR SERVICES PROVIDED BY PWI, AND/OR ANY DERIVATIVE WORKS, ENHANCEMENTS, MODIFICATIONS OR DEVELOPMENTS THERETO) IS PROVIDED ON AN “AS IS” BASIS WITHOUT WARRANTY OF ANY KIND. PWI DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, OF ANY KIND, REGARDING THE WORK, AND/OR ANY DERIVATIVE WORKS, ENHANCEMENTS, MODIFICATIONS OR DEVELOPMENTS THERETO, INCLUDING, BUT NOT LIMITED TO, WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE OR USE, MERCHANTABILITY, TITLE, NON-INFRINGEMENT, RESULTS, ACCURACY, COMPLETENESS AND COMPATIBILITY. PWI WILL NOT BE LIABLE FOR ANY DAMAGES OR LOSSES RELATING TO THE WORK, INCLUDING, BUT NOT LIMITED TO, WITHOUT LIMITATION, DIRECT, INDIRECT, special, incidental, consequential, or punitive damages including, but not limited to, any lost profits, lost time, lost savings, lost data, lost fees, DAMAGE TO EQUIPMENT OR SYSTEMS or expenses of any kind arising from the installation or use of the Work AND/OR ANY DERIVATIVE WORKS, ENHANCEMENTS, MODIFICATIONS OR DEVELOPMENTS THERETO, or accompanying documentation in any manner, however caused and UNDER any theory of liability, AT LAW OR EQUITY, INCLUDING, BUT NOT LIMITED TO, CONTRACT, WARRANTY, STRICT LIABILITY OR TORT, INCLUDING NEGLIGENCE. These limitations will apply even if PWI has been advised of THE POTENTIAL FOR such damages.

7.2 Client agrees that the Work and/or any modifications, developments, derivative works and enhancements thereof, are not designed, manufactured or intended for use or resale with on-line control equipment in hazardous environments requiring Fail-Safe performance, such as in the operation of nuclear facilities, aircraft navigation, communication, or control systems, direct life support machines, weapons systems, or other uses in which failure of the Work could lead directly, or indirectly, to death, personal injury, or severe physical or environmental damage. PWI’s disclaimer of any express or implied warranties as stated above applies to such uses as well as all others. Client agrees that it will not use the Work and any derivatives thereof, for such purposes.

7.3 Client is solely responsible for the selection of the Work to achieve Client’s intended results or for particular applications. Client acknowledges that the process of systems conversion is subject to the likelihood of human and machine errors, omissions, delays, and losses, including inadvertent loss of data or damage to media, that may give rise to loss or damage. PWI shall not be liable for such errors, omissions, delays or losses. Client is responsible for adopting reasonable measures to limit the impact of such problems; including examining and confirming results prior to use, adopting procedures to identify and correct errors and omissions, replace lost or damaged media, and reconstruct data. Client is also responsible for complying with all local, state, and federal laws pertaining to the use and disclosure of any data.

7.4 Client agrees to indemnify, defend, and hold PWI and its successors, officers, directors, agents and employees harmless from and against any and all actions, causes of action, claims, demands, cost, liabilities, expenses and damages including attorneys’ fees arising out of, or in connection with any breach of this Agreement by Client or Client’s use or acquisition of the Work, and any derivative thereof. Client and PWI will give each other prompt and reasonable notice of any claim made or actions instituted which in any way directly or indirectly affect, or may affect, the other party, and each party shall have the right to investigate, compromise, and defend the same to the extent of its own interests. PWI shall have the right, but not the duty, to participate in the defense of any claim or litigation with attorneys of PWI’s selection without relieving Client of any obligations hereunder. Any final judgment rendered against PWI for any cause for which Client is liable hereunder shall be conclusive against Client as to liability and amount. Client’s obligations herein shall survive any termination of this Agreement.

8. Termination
8.1 The licenses granted hereunder shall be in effect until terminated as provided herein. Nonetheless, PWI, in its sole discretion, may immediately terminate this Agreement upon any of the following events:

(a) The default by Client in the performance of any obligation required herein, and Client’s failure to commence and diligently continue to correct such default within ten (10) days after notice, unless a shorter time is specified;

(b) Client becomes in arrears in the payment of the whole or any part of the amount(s) agreed upon herein for a period of ten (10) days after the time such payments become due;

(c) The filing by Client of a voluntary petition in bankruptcy, the institution of proceedings in bankruptcy against Client and the adjudication of Client as bankrupt pursuant to such proceedings, or the taking by a court of jurisdiction of Client and its assets pursuant to proceedings brought under the provisions of any bankruptcy, reorganization, insolvency or related law;

(d) Client’s breach of any provision hereof and/or Client’s use of the Work and/or any derivative thereof in any manner outside of the scope of the license granted hereunder;

(e) The default by Client of any reviews specified in Section 1 of this Agreement; and

(f) The default by Client of any information submittal specified in Section 4 of this Agreement.

8.2 In the event that Client receives written notice from PWI stating that Client is in default of any provision hereunder, Client shall immediately cease the use of the Work, as well as any derivative works, modifications, developments, and/or enhancements thereto and return to PWI the original and any copies, as well as any derivative works, developments, modifications and/or enhancements thereto. Also, in the event of written notice of default, Client shall cease any and all distribution and sales of Client products created with the assistance of the Work and/or any derivative works, modifications, developments and/or enhancements thereto.

8.3 Any failure by Client to comply with the terms and conditions of this Agreement shall result in automatic termination of the license granted to Client hereunder. Upon termination of this Agreement for any reason, at the sole discretion of PWI, Client shall return all copies of the Work and/or any derivative works, enhancements, modifications, or developments thereto and any accompanying documentation, as well as drawings, blueprints, notes, memoranda, specifications, designs, writings, software, devices, documents and any other materials to PWI within five (5) days.

8.4 Termination of this Agreement or termination of Work shall not affect Client’s payment obligations hereunder, which shall survive any termination. In the event that this Agreement is terminated by PWI upon the occurrence of any of the events specified above, Client shall immediately remit payment to PWI for the balance of this Agreement. Failure of PWI to declare this Agreement terminated upon the default of Client for any of the reasons set forth above shall not operate to bar or destroy the right of PWI to cancel this Agreement by reason of any subsequent violation of the terms of this Agreement.

9. Security Interest
Client hereby grants PWI, and PWI hereby reserves, a purchase money security interest in and to the Work and all license rights therein, including any enhancements, modifications, developments, or derivative works delivered to Client or developed by Client under this Agreement, as security for the payment and performance by Client of all its obligations and liabilities to PWI. Client agrees to assist and cooperate fully with PWI in the perfection and enforcement of such security interest.

10. Independent Contractors
Client and PWI are independent contractors, each in full control of its own business, employees and expenses. This Agreement places neither party in the control or direction of the other, and neither party is authorized to act as the principal or agent for the other. Nothing in this Agreement shall be construed as creating an employer-employee relationship, as a guarantee of future employment or engagement, or as a limitation upon the Client’ sole discretion to terminate this Agreement at any time without cause. Client and PWI further agree to be responsible for all of PWI’s federal and state taxes, withholding, social security, insurance, and other benefits it deems fit to offer its employees.

11. AUTHORITY
Client represents and warrants that Client is fully authorized to enter into and perform this Agreement and will pay PWI the full amount as specified in Appendix ‘A’.

12. No Assignment
Client represents that it is acting on its own behalf and is not acting as an agent for or on behalf of any third party, and further agrees that it may not assign it’s rights or obligations under this Agreement without the prior written consent of PWI.

13. Governing Law and Jurisdiction
This Agreement, the relationship between Client and PWI and any disputes relating to this Agreement or otherwise arising between Client and PWI will be governed and construed in all respects by the internal laws and decisions, other than conflict of laws provisions, of the State of Illinois, including, without limitation, all matters of construction, validity, enforcement and performance. All parties agree to the exclusive jurisdiction and venue of any court (federal, state or local) situated in the County of Cook, State of Illinois.

14. Disputes
Any controversy, claim or dispute arising out of or relating to this Agreement or the relationship, either during the existence of the relationship or afterwards, between the parties hereto, their assignees, their affiliates, their attorneys, or agents, shall be litigated solely in state or federal court in the County of Cook, State of Illinois. Client submits to the jurisdiction of such courts, waives the defense of an inconvenient forum, agrees that valid consent to service may be made by mailing or delivery of such service to the Illinois Secretary of State (the “Agent”) or to Client at Client’s last known address, if personal service delivery can not be effected easily, and authorizes and directs the Agent to accept such service in the event that personal service delivery can not be effected easily. Client agrees that, in the event of breach or threatened breach of any covenants of Client, the damage or imminent damage to the value and the goodwill of PWI’s business shall be inestimable, and that, therefore, any remedy at law or in damages shall be inadequate. Accordingly, the parties hereto agree that PWI shall be entitled to injunctive relief against Client in the event of any breach or threatened breach of any of such provisions by Client, in addition to any other relief (including damages) available to PWI under this Agreement or under law. Moreover, should PWI, or any heir, personal representative, successor or assign of PWI, resort to legal proceedings in connection with this Agreement or PWI’s relationship with the Client, PWI’s prevailing in such legal proceedings shall entitle PWI, in addition to such other relief as may be granted, to recover PWI’s reasonable attorneys’ fees and costs in such legal proceedings from Client.

15. Entire Agreement
This Agreement contains the entire agreement and understanding between the parties hereto and supersedes any prior or contemporaneous written or oral negotiations, agreements, representations and warranties between them relating to the subject matters hereof. Both parties agree that no representative or agent of PWI or Client has made any representation or promise with respect to this Agreement not expressly contained herein.

16. Amendments
This Agreement may be amended only in writing signed by a duly authorized representative of PWI and by a duly authorized representative of Client.

17. SEVERABILITY
If any provision of this Agreement shall be held to be invalid or unenforceable in any respect, such provision shall be carried out and enforced to the extent to which it shall be valid and enforceable, and any such invalidity or unenforceability shall not affect any other provision of this Agreement, all of which shall be fully carried out and enforced as if such invalid or unenforceable provision had not been set forth herein.

18. Non-waiver
No failure or neglect of either party hereto in any instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege in any other instance. All waivers by either party hereto must be contained in a written instrument signed by the party to be charged and, in the case of the Client, by an officer of the Client or other person duly authorized by the Client. The acceptance by the PWI of any payment shall not be a waiver by it of any breach by Client of any covenant, condition, or obligation contained in this Agreement.

19. Successors and Assigns Bound
Notwithstanding Section 14 above, all of the provisions, covenants, and stipulations in this Agreement shall extend to and bind the legal representatives, successors and assigns of the respective parties.

20. Notices
Notices to PWI or Client provided for herein shall be hand delivered or sent by mail, postage prepaid, facsimile or e-mail addressed to:

Pixel Witch, Inc.
27201 Mack Drive
Waucona, Illinois 60084
1–847–487–8933

Client agrees to provide contact information at purchase.

or to such other addresses as the parties may designate to each other in writing from time to time, and such notices shall be deemed to have been given when so sent.

21. Assistance
PWI may, during and after termination of services rendered, upon reasonable notice, agree to furnish such information and proper assistance to the Client as may reasonably be required by the Client in connection with the Work; provided, however, that such assistance following termination shall be furnished at the same level of compensation as provided in Appendix ‘A.’

22. FORCE MAJEURE
PWI shall not be liable if it is unable to perform any of its obligations contained in these terms and conditions due, directly or indirectly, to the failure of any machine, system or authorization, data processing, or communication system or transmission link or any industrial dispute, war, flood, fire, explosion, cut in electricity, act of God or any other event beyond the direct or indirect control of PWI.

23. PROMOTIONS
Client agrees to allow PWI to use any of Client’s promotional pieces describing the project as well as demos of the Work as described in Appendix ‘A’ in any PWI advertisements or promotions. The size and nature of PWI promotions are strictly at the sole discretion of PWI.

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