Smartcat Customer Agreement

1.1 Services. Both Translation and Supplementary Services.

1.2 Translation Services. Smartcat will provide translation and related services (editing, post-editing, proofreading, interpreting, etc.) with respect to Customer materials as detailed in one or more service orders placed by Customer through Customer’s account dashboard on the Platform or otherwise, as mutually agreed (“Service Tasks”).

1.3 Supplementary Services. Smartcat will provide Supplementary Services (i.e. subscription package, AI translation, optical character recognition, translation memory, smart words, etc.) selected by Customer through Customer’s account dashboard on the Platform or as set forth in the Annexes hereto.

1.4 Customer Materials. Any content uploaded by Customer to the Platform.

1.5 Platform Terms of Service. Customer’s use of the Platform in connection with receipt of the Services shall be governed by the terms of service (located at www.smartcat.com/terms/) (the “TOS”). This Agreement and the Annexes will prevail to the extent of any inconsistency with the TOS.

1.6 Delivery of Translated Works; Acceptance.
(a) Customer accepts and acknowledges that Smartcat relies solely on the use of automation and software quality control tools to perform quality control over Translation Services provided to Customer under this Agreement. Customer takes full and final responsibility for its review of the quality of the completed translation of Customer Materials (“Translated Works”) unless Customer is using the Autopilot feature of the Platform as it is defined in the Annexes in which case Smartcat provides a lifetime quality guarantee with respect to Translation Services. Customer takes responsibility for acceptance of Translated Works by Customer pursuant to subsection (b) below.
(b) Smartcat will submit Translated Works to Customer for Customer’s review as to compliance with requirements and specifications identified in the applicable Service Task (“Acceptance Review”). Customer will complete its Acceptance Review within five (5) business days unless another period is agreed upon by the Parties (“Review Period”). Prior to the expiration of the Review Period, Customer shall provide Smartcat with notice through Customer’s account dashboard on the Platform of Customer’s Acceptance of the Translated Works by clicking “done” or “accept” (“Acceptance”) or of the Translated Works’ failure to meet Customer’s acceptance criteria (“Rejection”), provided however, that failure by Customer to deliver any notice in accordance with this section during the Review Period, will constitute automatic Acceptance of the subject Translated Works by Customer. Acceptance generates an obligation of the Customer to pay for the Translation Services. Failure by Smartcat to deliver Translated Works to Customer within the timeframe identified therefore in the applicable Service Task may constitute cause for a Rejection of such Translated Works by Customer.
(c) In the event of a justified Rejection by Customer, Smartcat will, at the option of Customer, either: (i) use reasonable commercial efforts to correct and remedy the failure(s) or deficiency(ies) identified by Customer (using the same or another Subcontractor (as defined in Section 1.7(a)) in Customer’s discretion), or (ii) negotiate with Customer in good faith a discount to the fees for the Services relating to the Translated Works which were the subject of a Rejection. With respect to a Rejection resulting solely from a delay in delivery, the maximum discount that Smartcat may offer will be capped at 15%.
(d) Smartcat’s obligations under subsection (c) comprise Customer’s sole and exclusive remedy and Smartcat’s sole obligation and liability for a Rejection of Translated Works by Customer for any reason.

1.7 Subcontractors.
(a) Smartcat in each case will engage the services of such subcontractors registered on the Platform as Smartcat deems necessary to perform the Translation Services under this Agreement (“Subcontractors”).
(b) Smartcat shall be wholly responsible for payment to the Subcontractors of their fees in connection with performing the Translation Services.
(c) Customer may request that Smartcat either (i) use, replace or assign additional Subcontractors to a Service Task or (ii) not use or remove specific Subcontractors from a Service Task, and Smartcat will use reasonable commercial efforts to accommodate Customer requests.
(d) Customer may invite Subcontractors to register on the Platform via an invitation link. Smartcat does not provide any additional services to such Subcontractors (including, but not limited to, listing Subcontractor’s profile on the Platform search) except those services that are required to establish and maintain efficient collaboration and delivery of the results of the Service Task.
(e) Customer agrees, during the term of this Agreement and for three (3) years thereafter, not to solicit any Subcontractors (except for Subcontractors invited by the Customer as per par.1.7 (d) above) for employment or consulting, directly or indirectly, for Customer or for any business or organization in which Customer, or any of the beneficial owners of Customer, if Customer is a legal entity, has an ownership interest of any kind. For the avoidance of doubt, Subcontractors are considered to be invited by Customer if: (i) such Subcontractor’s account was not viewed on the Platform by Customer prior to invitation (ii) the Subcontractor’s account on the Platform was registered by the invitation link generated from Customer’s account with the Platform.
(f) In no event shall Subcontractors be considered employees of the Customer. The Customer agrees not to use the Platform for assigning Service Tasks or performing Service Tasks with Subcontractors with whom the Customer has an employer-employee relationship.

1.8 Delays. In the event of (a) a delay by Customer in delivering Customer Materials or responding to questions relating to Customer Materials, (b) a delay due to Customer’s request for changes to Customer Materials or any other terms of the applicable Service Task, (c) a dispute in good faith between the parties as to whether Translated Works meet the requirements specified in the applicable Service Task, (d) a delay due to any third party’s act, failure to act or delay in performing any obligation whatsoever, other than the act, failure to act or delay by a Subcontractor, or (e) any other delay incurred as a result of Customer’s actions, the delivery schedule set forth in the Service Task shall be deemed postponed for an equivalent period. No such delay shall relieve or suspend Customer’s obligation to pay Smartcat under Section 2 hereof and, in addition to such payment obligations, Customer shall pay for all reasonable expenses incurred by Smartcat in connection with any such delay. In the event of delay due to the act, failure to act or delay in performing obligations by one or more Subcontractors, Customer’s sole recourse shall be to request that such Subcontractors shall be replaced and Smartcat’s duties shall be considered met upon so replacing the Subcontractors, as applicable.

2.1 Service Fees.

2.1.1. Subject to section 2.4. below payment for the Supplementary Services can be made via the Platform or based on the invoice. Payment for the Supplementary Services shall be always made in advance unless agreed otherwise in Annexes.

2.1.2. Regardless of payment frequency for the Supplementary Services specified in the Annexes, the Customer will be required to pay for the full Service period specified in the Annexes.

2.1.3. Customer agrees to pay the fees for the Translation Services as set forth in one or more Service Tasks. Payment for the Translation Services could be carried out as in one of the following ways:
(a) Advance payment if agreed with Smartcat. Unused funds could be returned to the Customer upon request or termination of the Agreement.
(b) After acceptance of the Service Task. The Customer is hereby granted the right to agree with Smartcat an installment way of payment for the Translations Services in accordance with conditions that will be offered and accepted by the Customer on the Platform.
(c) On a monthly basis if agreed with Smartcat.

2.2 Additional Fees. Customer agrees to pay Smartcat additional fees, calculated as set forth in the applicable Service Tasks in each of the following cases, or as otherwise agreed between Smartcat and Customer:
(a) Customer makes changes in the Customer Materials after the execution of a Service Task with respect thereto; or
(b) Customer requests changes to Translated Works after delivery thereof to Customer because of Customer’s preferences as to style or vocabulary, and such changes are not required for accuracy;
(c) Customer requests delivery of Translated Works in a file and text format not agreed upon.
(d) Customer agrees to compensate Smartcat for direct supplementary expenses related to a Service Task by choosing the relevant option in the Customer’s account on the Platform. Smartcat shall not provide the Customers with a proof of such expenses.

2.3 Payments. All invoiced fees are due immediately upon receipt of the invoice and in no event any later than thirty (30) calendar days following the invoice date or agreed otherwise. If any payment of fees hereunder are not paid when due, Customer agrees to pay Smartcat interest at a rate of 1.5% per month of the payment amount then due.

2.4 By selecting ACH debit or credit card as its preferred payment method and by linking Customer’s bank account or credit card to the online payment service integrated with the Platform, Customer authorizes Smartcat to automatically debit the bank account or credit card provided by Customer for the amounts owed for Supplementary Services during the term thereof.

2.5 All taxes levied on the transactions of Service Fees under this Agreement in accordance with the applicable legislation of Customer’s jurisdiction are not included in the Service fee as well as the transaction costs (e.g. bank fees for the transaction). Such taxes and transaction costs are calculated and paid by the Customer in excess of the Service fee by the Customer. Smartcat is not responsible for any of the Customer’s taxes and transaction costs.

3.1 Term; Renewal.
(a) This Agreement shall become effective on the Effective date and shall continue until terminated.
(b) Service Period of the Supplementary Services is indicated in the Annexes or in Customer’s account dashboard on the Platform. Unless otherwise specified in the Annexes at the end of the Service Period, Customer’s Smartcat subscription (including any additional subscriptions added to Customer’s account) will automatically renew for additional 12 month periods. The Customer will receive a renewal notice at least 45 calendar days prior to renewal. Either Party may provide written notice of termination 30 calendar days prior to the renewal date.
(c) Smartcat may terminate the Platform TOS (as defined above) on the grounds specified in Section 4 of TOS.

3.2 Effect of Termination.
(a) In the event of termination of this Agreement for breach by Smartcat and if Smartcat does not cure such breach within 30 days, the Customer shall only be responsible for payment to Smartcat of the undisputed fees for Translation Services performed and fees for the Supplementary Services mentioned in the Annexes through the date of such termination.
(b) In the event of termination of any Service Task by Customer prior to its completion, in the absence of breach by Smartcat, Customer will be required to pay for the Services actually provided till the date of termination.
(c) Notwithstanding anything to the contrary herein, Customer will not be entitled to a refund of any fees related to accepted Translation Services that have already been performed by Smartcat as of the termination date of this Agreement or any Supplementary Services.

3.3 Survival. With the exception of those provisions which by their terms remain in effect only during the term of this Agreement, and subject to Section 3.2 (Effect of Termination), all provisions of this Agreement will survive any termination of this Agreement.

4.1 Restrictions. Smartcat acknowledges that, in order to perform the Services, it shall be necessary for Customer to disclose to Smartcat certain Confidential Information (defined below) of Customer. Smartcat agrees that it shall not disclose, transfer, use, copy, or allow access to any such Confidential Information to any third parties, except as authorized by Customer. Customer hereby authorizes Smartcat to provide Confidential Information to Subcontractors (including those located in jurisdictions without adequate protection of personal data), CRM systems (i.e. Hubspot, Fullstory, Grafana) or email marketing services providers and similar providers to them as well as to infrastructure and development service providers, on the terms established by Smartcat, provided that Smartcat shall implement technical and organizational security measures in respect of processing of such data.

4.2 Definition. Information disclosed by Customer, including, but not limited to, information contained in the Customer Materials, information that relates to existing and future products or services, designs, business plans, business opportunities, finances, research, development, know-how, personnel, personal data or third party confidential information, and any information which, by its nature, a reasonable person receiving such information would know or suspect is non-public, confidential, sensitive, or proprietary will be considered and referred to collectively in this Agreement as “Confidential Information.” Confidential Information, however, does not include information that (a) is now or subsequently becomes generally available to the public through no fault or breach by Smartcat; (b) Smartcat can demonstrate to have rightfully had in its possession prior to disclosure by Customer; or (c) Smartcat rightfully obtains from a third party who has the right to transfer or disclose it.

4.3 Smartcat Proprietary Information. Customer shall treat as confidential and agrees not to disclose to any third party without prior written consent of Smartcat, any information learned by Customer within the scope of the Services relationship with Smartcat that would appear to a reasonable person to be confidential or proprietary. Names and rates of Subcontractors will be considered confidential information of Smartcat pursuant hereto.

4.4 Personal Data. Smartcat will comply with applicable laws, rules, and regulations relating to privacy, data protection, data security, and the processing of personal data of the European Union, the United Kingdom, the United States, or any other jurisdiction that governs or otherwise applies to Customer’s data processed under this Agreement, including, but not limited to the General Data Protection Regulation (EU) 2016/679 (“GDPR”) and the California Consumer Privacy Act of 2018, Cal. Civ. Code § 1798.100 et seq. The Parties shall comply with the terms of Smartcat’s Data Processing Agreement located at https://www.smartcat.com/dpa/ to the extent that the Services require personal data processing by the Parties under GDPR.

5.1 Assignment by Smartcat. Smartcat hereby does and will irrevocably assign to Customer all of Smartcat’s right, title and interest in and to any and all Translated Works.

5.2 Assignment by Subcontractors. Smartcat covenants, represents and warrants that each Subcontractor who performs Translation Services under this Agreement has or will have a written agreement with Smartcat that provides Smartcat with all necessary rights to fulfill its obligations under this Agreement, including but not limited to the obligations of this Section 5.

6.1 Customer Warranty. Customer warrants that it is the lawful owner of Customer Materials, that such Customer Materials have been lawfully developed or acquired by Customer, and that such Customer Materials will not infringe on any third party intellectual property.

6.2 Indemnification. Customer agrees to indemnify and hold Smartcat harmless from any and all losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees) which Smartcat may incur based on Customer Materials.

7.1 Smartcat has the right to unilaterally refuse to fulfill its obligations under this Agreement and/or terminate this Agreement if:
(a) the Customer, and/or Customer's participant, and/or the ultimate beneficial owner of the Customer are included in the list of sanctions of OFAC of the United States (a list of sanctioned individuals as determined by the Office of Foreign Assets Control of the US Department of the Treasury);
(b) the Customer, and/or the Customer's participant, and/or the ultimate beneficial owner of the Customer, and/or the Customer's goods, services or works are subject to restrictions (sanctions) by US government agencies other than OFAC, compliance with which may be violated by this Agreement;
(c) the Customer, and/or the Customer's participant, and/or the ultimate beneficial owner of the Customer are included in the list of sanctions of the European Union (Consolidated list of persons, groups and entities subject to EU financial sanctions);
(d) the Customer, and/or the Customer's participant, and/or the ultimate beneficial owner of the Customer are included in the list of sanctions of Her Majesty's Treasury of the United Kingdom (a list of individuals, included in the Consolidated list of financial sanctions targets in the UK;
(e) the Customer, and/or the Customer's participant, and/or the ultimate beneficial owner of the Customer are included in the list of sanctions of the UN Security Council (Consolidated United Nations Security Council Sanctions List, which includes individuals and entities subject to UN Security Council sanctions).

7.2 The Customer confirms that at the time of concluding this Agreement, no restrictions (sanctions) are applied to the Customer, and/or the Customer's participant, and/or the ultimate beneficial owner of the Customer, and/or goods, services or works of the Customer.

7.3 If the Customer has not notified Smartcat about the application of restrictions (sanctions) to the Customer before the conclusion of the Agreement, the Customer shall be obliged to compensate all costs and actual losses to Smartcat, caused by unilateral termination of the Agreement by Smartcat and/or by the Smartcat's withdrawal from the Agreement due to the application of restrictions (sanctions) to the Customer, as well as to compensate to Smartcat any penalties imposed on it due to the violation of restrictions (sanctions).

8.1 General. THE SERVICES ARE PROVIDED ON AN “AS IS” BASIS. TO THE MAXIMUM EXTENT PERMITTED BY LAW, SMARTCAT DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES EXPRESS OR IMPLIED, WITH RESPECT TO ANY INFORMATION, SERVICES, PRODUCTS, AND MATERIALS, INCLUDING BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, TITLE, NON-INFRINGEMENT, FREEDOM FROM COMPUTER VIRUS, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE. SMARTCAT IS NOT RESPONSIBLE FOR TYPOGRAPHICAL ERRORS REGARDLESS OF SOURCE.

8.2 Third-Party Services. All Translation Services pursuant to this Agreement will be performed by Subcontractors of Smartcat.

9.1 No Indirect Damages. In no event will a Party be liable to the other Party for consequential, incidental, indirect, punitive or special damages, or loss of profits, data, business or goodwill, regardless of whether such liability is based on breach of contract, tort, strict liability, breach of warranties, failure of essential purpose, or otherwise, and even if advised of the likelihood of such damages. Smartcat shall not bear any responsibility for changes made to any Translated Works following delivery thereof by Smartcat to Customer.

9.2 Limitation Cap.
a) Any and all liabilities of Smartcat resulting from the Translation Services under this Agreement are, without exception, limited to and at a maximum equal to the lesser of (a) $10,000 or (b) the total payments made by Customer to Smartcat hereunder within one (1) month immediately preceding any such claim.
b) Any and all liabilities of Smartcat resulting from the Supplementary Services under this Agreement are, without exception, limited to and at a maximum equal to the greater of (a) $10,000 or (b) the total payments made by Customer to Smartcat for the Supplementary Services within one (1) month immediately preceding any such claim.

It is intended that this limitation apply to any and all liability or cause of action however alleged or arising, unless otherwise prohibited by law. If jurisdiction of the Customer has provisions specific to waiver or liability that conflict with the above then Smartact liability is limited to the smallest extent possible by law.

10.1 Entire Agreement. This Agreement together with any schedules, exhibits, annexes, addendums and Service Tasksappended hereto constitutes the entire agreement of the parties hereto and supersedes all oral and written agreements and understandings made or entered into by the parties hereto prior to the date hereof. The process of amendment of the Terms of Services mentioned in par. 1.5. is described in the Terms of Services.

10.2 Severability. Should any provision of this Agreement be determined to be void, invalid, unenforceable or illegal for whatever reason, such provision(s) shall be null and void; provided, however, that the remaining provisions of this Agreement shall be unaffected thereby and shall continue to be valid and enforceable.

10.3 Amendments; Waiver. No amendment, change or modification of this Agreement shall be valid unless it is made in writing and signed by both parties hereto, and any waiver of a failure to perform or a breach shall not operate to waive any subsequent failure to perform or breach.

10.4 Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with and shall be governed by the laws of the State of Massachusetts applicable to agreements entered into and to be wholly performed therein without regard to conflict of law principles that would result in the application of any law other than the law of the State of Massachusetts.

10.5 Arbitration. Any unresolved controversy or claim arising out of or relating to this Agreement shall be submitted to arbitration by one arbitrator mutually agreed upon by the parties, and if no agreement can be reached within thirty (30) days after names of potential arbitrators have been proposed by the American Arbitration Association (the “AAA”), then by one arbitrator having reasonable experience in commercial transactions of the type provided for in this Agreement and who is chosen by the AAA. The arbitration shall take place in Boston, Massachusetts, in accordance with the AAA rules then in effect, and judgment upon any award rendered in such arbitration will be binding and may be entered in any court having jurisdiction thereof. There shall be limited discovery prior to the arbitration hearing as follows: (a) exchange of witness lists and copies of documentary evidence and documents relating to or arising out of the issues to be arbitrated, (b) depositions of all party witnesses, and (c) such other depositions as may be allowed by the arbitrators upon a showing of good cause. Depositions shall be conducted in accordance with the Massachusetts Code of Civil Procedure, the arbitrator shall be required to provide in writing to the parties the basis for the award or order of such arbitrator, and a court reporter shall record all hearings, with such record constituting the official transcript of such proceedings.

10.6 Notices. All notices required or permitted under this Agreement shall be in writing addressed to the respective parties at their addresses set forth in the signature page hereto, unless another address shall have been designated, and shall be delivered by hand or by registered or certified mail, postage prepaid or by electronic mail with confirmation of receipt.

10.7 Force Majeure. Except for payment obligations, neither Smartcat nor Customer will be liable by reason of any failure or delay in the performance of its obligations on account of events beyond the reasonable control of a party, which may include denial-of-service attacks, a failure by a third-party hosting provider or utility provider, shortages, riots, pandemics, fires, acts of God, war, strikes, terrorism, and governmental action.

10.8 Presumption. This Agreement shall be interpreted in accordance with the plain meaning of its terms and not strictly for or against either of the parties.

10.9 Attorneys’ Fees. In the event of any dispute with respect to this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and other costs and expenses incurred in resolving such dispute.