Scalarr Game AI Services Agreement

1. Scope of Application

1.1 This Scalarr Services Agreement (this “Agreement”) applies to the provision of Scalarr Services (as defined in this Agreement) and is made and entered into by and between Scalarr, Inc., a company duly incorporated and operating under the laws of Delaware, USA (“Scalarr”, “we” or “our”), and you or the entity you represent, the Party wishing to become a Scalarr customer (“you” or “Customer”). Scalarr and Customer are referred to in this Agreement collectively as the "Parties" and each individually as a "Party".

You represent to us that you are lawfully able to enter into contracts. If you are entering into these contracts for an entity, such as the company you work for, you represent to us that you have legal authority to bind that entity.

1.2 All of the terms of this Agreement together constitute legally binding terms between you and Scalarr. By using the Scalarr Services or executing any Insertion Order (as defined below), the Customer understands and agrees to be bound by this Agreement and any Insertion Order (as defined below) executed now or in the future.

1.3 This Agreement shall be effective as of the date specified in the Insertion Order (the “Effective Date”).

2. Scalarr Services

2.1 Scalarr provides Customer with AI-driven game testing software solution based on deep reinforcement learning (the “Scalarr Software”) and delivers to Customer reports on the results of such play-testing sessions as well as corresponding integration, training and support services (the “Scalarr Services”).

2.3 Scalarr shall deliver Scalarr Software and render Scalarr Services in accordance with the respective service description in effect at the time the Insertion Order is concluded (the “Specification”).

2.4 In accordance with the terms of the applicable Insertion Order Scalarr will deliver and integrate Scalarr Software to Customer’s hardware and software systems (the “Customer Infrastructure”) and provide the corresponding training and support services for Customer’s personnel required for such integration.

2.5 Should the Customer require, for whatever reason, any changes after the initial integration has been completed by Scalarr, the Customer shall notify Scalarr 30 days prior to any change being required and the Customer shall be responsible for all costs incurred by Scalarr associated with the same.

2.6 Scalarr reserves the right to make technical changes and improvements to Scalarr Software. Scalarr may reasonably suspend Scalarr Services for maintenance or repair purposes if such maintenance or repair is necessary to ensure the proper operation of Scalarr Services.

2.7 Scalarr may use the assistance of its Personnel in order to fulfill its contractual obligations. “Personnel” means Scalarr employees, contractors, consultants, directors and other Scalarr staff involved in the provision of Scalarr Services on a regular basis.

3. Offer and Conclusion of a Contract

3.1 Scalarr shall provide Scalarr Software and Scalarr Services to Customer pursuant to the terms and conditions of individual subscription package(s) (the “Subscription”) executed by and between Scalarr and Customer in the form of insertion order (the “Insertion Order”) for an agreed by Parties specific period of provision of Scalarr Services (the “Subscription Term”).

3.2. Customer may enter into GameAI Subscription by execution of the corresponding Insertion Order specifying:

a) subscription fee to be charged by Scalarr for use of Scalarr Services for a specific Subscription Term (the “Subscription Fee”);

b) how and when Subscription Fee shall be paid by Customer (the “Payment Terms”) as well as applicable billing period (the “Billing Period”);

c) the date Scalarr starts the integration of Scalarr Software to Customer Infrastructure (the “Integration Start Date”)

d) the date of actual start of AI-driven game testing services, if applicable (the “GameAI Test Start Date”),; and

e) integration fee paid by Customer for integration and training services, if applicable (the “Integration Fee”).

3.3 In order to initiate Scalarr’s provision of the Scalarr Services pursuant to an Insertion Order, Customer must send the signed Insertion Order to Scalarr by email. In addition to any provisions contained in an Insertion Order, the terms and conditions of this Agreement shall apply. To the extent there is conflict between the terms of this Agreement and the terms of an Insertion Order, the terms of the Insertion Order shall govern.

3.4 The Customer represents and warrants that all Customer contact information, billing information (where applicable) as well as other relevant contractual data provided by Customer during the conclusion of the agreement is complete, up to date and correct. The Customer is obliged to promptly inform Scalarr about any changes to this data and/or promptly update Customer data.

3.5 The Parties are aware that confirmation emails, proposed amendments to the Agreement and other notifications may be sent via email to the email address specified in any Insertion Order. Such emails, amendments and notifications will be deemed to have been received when they are retrieved by the Party from its email inbox. For clarity, an amendment to the Agreement or Insertion Order requires a written document with signatures from duly authorized representatives of both Parties.

4. Integration and Acceptance Tests

4.1 Unless otherwise stipulated in applicable Insertion Order, no later than 3 days from the date on which Scalarr completes the integration of Scalarr Software into Customer Infrastructure, the Customer may perform acceptance testing to confirm that it operates in accordance with the relevant Specification (the “Acceptance Tests”).

4.2 Scalarr shall if required by the Customer give the Customer’s personnel all reasonable assistance conducting the Acceptance Tests. The Customer shall ensure that the Acceptance Tests are sufficient to test whether the Scalarr Software operates materially in accordance with its relevant Specification.

4.3 In the event that the Acceptance Tests demonstrate that the proper operation of a Scalarr Software fails to operate in accordance with the relevant Specification, the Customer shall promptly and in any event no later than 3 days from the date of the Acceptance Test notify Scalarr of any such failure and Scalarr shall promptly and in any event no later than 5 days of such notification resolve any faults with the Scalarr Software integration and deliver a fix to the Customer. The Customer shall promptly conduct and complete repeat tests on the Project Deliverable on the same terms but in any event no later than 3 days thereafter and shall confirm to Scalarr whether the Scalarr Software integration has been successful and accepted.

4.4 If any Project Deliverable fails its third Acceptance Test (and for the avoidance of doubt, non-material failures shall not be deemed to be a failure of the Acceptance Tests), the Parties terminate this Agreement with release of both parties from their obligations.

4.5 If:

a) the Customer chooses to proceed using Scalarr Software and Scalarr Services without the Acceptance Tests or fails to conduct the Acceptance Tests in relation Scalarr Software with the timescales set out in clause 4.1 or clause 4.3; or

b) the Customer fails to notify Scalarr of any failure of the Scalarr Software to pass the Acceptance Tests (including any repeat Acceptance Tests) in accordance with the timescales detailed in clause 4.1 or clause 4.3;

then the Scalarr Software shall be deemed to have passed the Acceptance Tests and the Customer shall be deemed to have accepted the Scalarr Software.

4.6 The Customer shall accept Scalarr Software and issue an acceptance certificate within 3 days after the Scalarr Software has successfully passed the Acceptance Tests or after deemed acceptance in accordance with clause 4.5. The date of such acceptance (the “Integration Acceptance Date”) will be considered as a date of actual start of AI-driven game testing services.

5. Customer’s Rights and Obligations

5.1 Customer may use the Scalarr Software and Scalarr Services only to the extent described herein.

5.2 Customer agrees to keep the passwords and login data provided by Scalarr for access to the Scalarr Software confidential and to inform Scalarr immediately if Customer becomes aware that unauthorized third parties have gained access to such passwords. If, due to the Customer’s gross negligence or willful misconduct, unauthorized third parties use any services provided by Scalarr by using Customer’s passwords, Customer may be liable to Scalarr for usage fees and damages caused by such unauthorized use.

5.3 Customer shall not make the Scalarr Software available to any unaffiliated third parties. In addition, Customer shall not:

a) modify, translate, reverse engineer, decompile, disassemble or otherwise create derivative works from Scalarr Software or documentation.

b) without Scalarr’s express prior written consent and unless all respective fees have been paid, transfer, lend, rent, lease, distribute the Scalarr Software, or use it for providing services to a third party, or grant any rights in and to Scalarr Software or documentation to a third party in any form; or

c) remove, modify or make illegible the labels, markers or designations regarding copyrights and other intellectual property rights of Scalarr Software or documentation.

5.4 If Scalarr has protected its Scalarr Software by technical means (e.g. security codes, firewalls, etc.), Customer is not allowed to circumvent or remove such security measures.

5.5 Customer is obliged to protect its own data by taking appropriate measures and by regularly making backups of its data.

5.6 In connection with Customer’s use of the Scalarr Services, Customer must follow Scalarr’s reasonable instructions, as well as the protocols and specifications requested by Scalarr, with regard to telecommunication/data transmission.

6. Fees; Payment

6.1 The fees for using of Scalarr Software and Scalarr Services will be set forth in an applicable Insertion Order. Unless explicitly stated otherwise, all fees do not include any applicable statutory taxes.

6.2 Invoices will be sent to Customer via email indicated in the Insertion Order in electronic form, unless in Insertion Order expressly agreed otherwise.

6.3 Payment of invoices shall be due within 10 calendar days of receipt of the invoice by Customer, unless in Insertion Order expressly agreed otherwise.

6.4 If Customer’s payments are delayed, Scalarr reserves the right to suspend the provision of the Scalarr Services at the expense of the Customer until all payments due have been made. After providing Customer with 30 calendar days’ notice of Customer’s failure to pay fees that are due, Scalarr may terminate the applicable Insertion Order upon expiration of such 30-calendar day notice period. In case of returned direct debits or unpaid checks, Customer shall reimburse Scalarr for the costs incurred to the extent that the Customer was responsible for the events giving rise to such costs.

6.5 Unless in Insertion Order expressly agreed otherwise, any Customer complaints relating to an invoice must be submitted to Scalarr in writing, including by email to [email protected], within 10 calendar days of Customer’s receipt of the invoice in question. If no such complaint has been made within 10 calendar days after Customer’s receipt of invoice, the invoice is deemed to be accepted.

6.6. Customer is responsible for paying any and all applicable sales, use, value added or withholding tax (if any) due to all taxing authorities arising from, or in connection with, Customer’s use of Scalarr Services including, without limitation, taxes and related fees, costs and penalties incurred by Customer.

6.7. Subscription Fee is non-refundable. There will be no refunds for partial use of Scalarr Services, upgrade/downgrade refunds, refunds for unused features, or refunds for failures or inaccessibility of Scalarr Services due to circumstances beyond Scalarr control. Unless otherwise agreed between the Parties, if Scalarr Services are terminated by the Customer before the end of Subscription Term, Customer will still be liable for a remaining unpaid Subscription Fee for the whole Subscription Term.

7. Grant of Rights; Ownership; Third Party Rights

7.1 Upon full execution of this Agreement, Scalarr grants the Customer the limited, revocable, non-exclusive, non-transferable and non-sublicensable right to use Scalarr Software and Scalarr Services during the term of this Agreement and in accordance with this Agreement and the respective Insertion Orders.

7.2 Scalarr shall retain all intellectual property rights as well as any other property rights in and to the Scalarr Software, the Scalarr Services and other services, reports and data that is provided by Scalarr under this Agreement, including source codes, databases, hardware and/or any other material (e.g. documentations, developments, functions, reports, report templates, databases, lists, and preparatory material). Notwithstanding the foregoing, Customer shall own and reserves all right, title and interest in and to all of Customer Infrastructure, Customer’s materials, Customer’s data and all intellectual property rights in and to the foregoing (“Customer Intellectual Property”). Except as expressly set forth in this Agreement, no right, title or interest to any Customer Intellectual Property is transferred to Scalarr.

7.3 While using the Scalarr Software and Scalarr Services, neither Party will violate any applicable laws, third party rights (e.g. copyrights, personality rights, intellectual property rights) or the terms of this Agreement.

8. Service Availability

8.1 While using Scalarr Software and Scalarr Services, Customer may notify Scalarr in writing regarding any obvious defects and Scalarr shall timely remedy any such defects. In such a case Customer provides Scalarr with any information or documents required to analyze or debug the Scalarr Services and will provide Scalarr with access to the Customer Infrastructure if Customer deems it necessary.

8.2 The Scalarr Services shall be available to Customer at least 99.5 % of the time Customer is entitled to use the Scalarr Services. Scalarr points out that the Scalarr Services may be interrupted or disrupted by circumstances beyond Scalarr’s reasonable control, including but not limited to acts of third parties that do not act on Scalarr’s behalf, technical conditions of the Internet that Scalarr cannot influence or force majeure events.

9. Term; Termination

9.1 The term of this Agreement will commence on the Effective Date and will continue until the earlier of (i) the end of the Subscription Term or (ii) termination as provided in this Section.

9.2 Both Parties may immediately terminate this Agreement

  • if the other Party becomes insolvent, subject to insolvency proceedings, insolvency proceedings have been commenced or the commencement of insolvency proceedings is dismissed due to lack of assets;
  • if the other Party materially breaches this Agreement and fails to remedy such violation within 30 calendar days of receipt of a written request.

9.3 Scalarr may immediately terminate this Agreement

  • if Customer breaches its obligations pursuant to Section 4.3, 4.4, 4.6, 6.3 or 9 of this Agreement;
  • if Customer is in default of payment and does not settle the outstanding payment upon receipt of a warning letter with a 30-calendar day deadline for payment.

9.4 Each Party may terminate this Agreement at any time provided that such Party provides 30 days prior written notice to the other Party. However, if the Customer terminates the Agreement before the end of Subscription Term, then the Customer shall be liable for outstanding payments for the remaining Subscription Term.

9.5 Upon termination of this Agreement, Customer is obliged to delete all copies of the codes and other materials that were provided by Scalarr and Scalarr shall be obliged to delete all copies of personal data to processed on its behalf of Customer as prescribed in the Data Processing Agreement.

10. Confidentiality

10.1 “Confidential Information” means any and all information and material disclosed by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) that is marked as, or provided under circumstances reasonably indicating it is, confidential or proprietary. Confidential Information includes documents, information and data that relate to companies or entities affiliated with the Disclosing Party or other of the Disclosing Party’s partners or contractors and documents, information and data about customers and sales representatives of the Disclosing Party. Confidential Information shall not include any information that the Receiving Party can establish (i) became available to the Receiving Party on a non-confidential basis from a source other than the Disclosing Party; (ii) becomes publicly known or made generally available after disclosure to Receiving Party through no wrongful action or inaction of the Receiving Party; (iii) is in the rightful possession of the Receiving Party, without confidentiality obligations, at the time of disclosure; or (iv) was independently developed by Receiving Party without use of the Confidential Information. During and after the Term, the Receiving Party shall not (i) use the Confidential Information for any purpose whatsoever other than as necessary for the performance of this Agreement or (ii) disclose the Confidential Information to any third party. At all times the Receiving Party shall protect and preserve the Confidential Information as confidential, using no less care than that with which it protects and preserves its own highly confidential and proprietary information (but in no event less than a reasonable degree of care). The Receiving Party may disclose, distribute or disseminate the Confidential Information to any of its officers, directors, members, managers, partners, employees, agents or other persons (its “Representatives”) provided that the Receiving Party reasonably believes that those Representatives have a need to know and such Representatives are bound by confidentiality obligations at least as restrictive as those contained herein. The Receiving Party may disclose Confidential Information to the extent compelled by applicable law; provided however that, prior to such disclosure, the Receiving Party shall provide prior written notice to the Disclosing Party and shall seek a protective order or such similar confidential protection as may be available under applicable law. The Parties agree that no ownership of Confidential Information shall be conveyed to the Receiving Party. The Parties agree that the confidentiality provisions in this paragraph shall continue after the expiration, or earlier termination, of this Agreement.

11. Disclaimers

11.1 EXCEPT AS EXPRESSLY SET FORTH HEREIN, TO THE FULLEST EXTENT OF ALL APPLICABLE LAWS, SCALARR SOFTWARE AND THE SCALARR SERVICES ARE PROVIDED BY SCALARR AS A NEUTRAL HOST AND ON AN “AS IS” BASIS, AND SCALARR DISCLAIMS: (I) ALL REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, REGARDING THE SCALARR SOFTWARE AND SCALARR SERVICES RELATING TO THIS AGREEMENT, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE; (II) ANY WARRANTY THAT SCALARR SOFTWARE WILL OPERATE UNINTERRUPTED OR ERROR-FREE; AND (III) LIABILITY FOR ANY THIRD PARTY’S SECURITY METHODS AND PROTECTION PROCEDURES. FURTHER, SCALARR MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO ANY RESULTS OBTAINABLE THROUGH THE SCALARR SOFTWARE. CUSTOMER MUST USE INDUSTRY-RECOGNIZED SOFTWARE TO DETECT AND DISINFECT VIRUSES FROM ANY DOWNLOAD. NO ADVICE OR INFORMATION, WHETHER VERBAL OR WRITTEN, SCALARR PROVIDES SHALL CREATE ANY WARRANTY, REPRESENTATION AND/OR GUARANTEE NOT EXPRESSLY STATED HEREIN.

11.2 Customer acknowledges and agrees that there are risks associated with utilizing an Internet-based service including, but not limited to, the risk of failure of hardware, software and Internet connections, the risk of malicious software introduction, and the risk that third parties may obtain unauthorized access to information stored within Customer’s account, including, but not limited to Customer’s data.

12. Representations and Warranties

12.1. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED (EITHER IN FACT OR BY OPERATION OF LAW), OR STATUTORY, AS TO ANY MATTER WHATSOEVER. ALL OTHER EXPRESS OR IMPLIED CONDITIONS, REPRESENTATIONS AND WARRANTIES ARE HEREBY EXCLUDED TO THE EXTENT ALLOWED BY APPLICABLE LAW. EACH PARTY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NEITHER PARTY SHALL MAKE OR PASS ON ANY REPRESENTATION OR WARRANTY ON BEHALF OF THE OTHER PARTY TO ANY THIRD PARTY.

13. Limitations of Liability

13.1. EXCEPT FOR DAMAGES ARISING OUT OF THE PARTIES CONFIDENTIALITY OBLIGATIONS AND INDEMNIFICATION OBLIGATIONS, NEITHER CUSTOMER NOR SCALARR SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO LOSS OF USE, LOSS OF PROFITS OR LOSS OF DATA, WHETHER IN AN ACTION IN CONTRACT, TORT (INCLUDING BUT NOT LIMITED TO NEGLIGENCE) OR OTHERWISE.

13.2. EXCEPT IN THE CASE OF FRAUD, BREACH OF CONFIDENTIALITY, BAD FAITH, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THE SCALARR’S TOTAL LIABILITY AS A RESULT OF EVENTS OCCURRING OR CLAIMS ARISING IN ANY CALENDAR YEAR DURING THE TERM OF THIS AGREEMENT, WHETHER BASED IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR OTHERWISE, ARISING OUT OF, CONNECTED WITH OR RESULTING FROM THIS AGREEMENT OR FROM THE PERFORMANCE OR BREACH HEREOF, OR FROM ANY SERVICES PROVIDED BY OR FURNISHED BY SCALARR, SHALL IN NO EVENT EXCEED THE VALUE OF THE SUM OF THE SCALARR’S FIXED FEE FOR THE APPLICABLE CALENDAR YEAR.

14. Indemnification

14.1. Claims Against Customer. Scalarr, at its own expense, will defend, indemnify and hold Customer and its directors, officers, employees, affiliates, shareholders and representatives harmless against any losses, damages, liabilities, penalties, costs and expenses, including without limitation reasonable attorneys’ fees, and pay any settlement amounts or awarded damages arising out of any third party claim, suit or action to the extent that such third party claim, suit or action is based upon an allegation that: (i) The performance of any of Scalarr’s obligations contemplated under this Agreement infringes on any rights of any third party (including, without limitation, any intellectual property rights); (ii) Scalarr has breached any of its obligations, representations or warranties hereunder. The foregoing obligations are conditioned on Customer promptly notifying Scalarr in writing of such claim.

14.2. Claims Against Scalarr. Customer, at Customer’s own expense, will defend, indemnify and hold Scalarr and its directors, officers, employees, shareholders and representatives harmless against any losses, damages, liabilities, penalties, costs and expenses, including without limitation reasonable attorneys’ fees, and pay any settlement amounts or awarded damages arising out of any third party claim, suit or action, to the extent that such third party claim, suit or action is based upon an allegation that: (i) Customer’s performance of any of Customer’s obligations contemplated under this Agreement infringes any rights of any third party (including, without limitation, any trade secret, trademark, copyright, or patent or other intellectual property right of any third party); or (ii) Customer has breached any of its obligations, representations or warranties hereunder. The foregoing obligations are conditioned on Scalarr promptly notifying Customer in writing of such claim.

14.3 Procedure. Each Party will use counsel reasonably satisfactory to the other Party to defend each claim under this Section. Each Party will at all times keep the other Party advised of the status of each claim and the defense of such claim. Each Party will cooperate, at their own expense, with the other Party’s defense. Each Party may participate in the defense at its own expense. If at any time an indemnified Party reasonably determines that any claim might adversely affect the indemnified Party, such indemnified Party may take control of the defense of the claim, and in such an event the indemnified Party will proceed diligently and in good faith with such defense. Neither Party will consent to the entry of any judgment or enter into any settlement without the indemnified Parties’ prior written consent, which may not be unreasonably withheld.

15. Applicable law and jurisdiction

This Agreement is governed by and construed in accordance with the laws of the state of Delaware (U.S.), without giving effect to principles of conflicts of laws. In the event of any controversy or claim arising out of or relating to this Agreement, or a breach thereof, the Parties hereto shall consult and negotiate with each other and, recognizing their mutual interests, attempt to reach a satisfactory solution. If the Parties do not reach settlement within a period of 30 days, then, upon notice by any Party to the other(s), any unresolved controversy or claim shall be finally resolved by arbitration administered by the American Arbitration Association (the AAA) in accordance with its International Expedited Procedures, with the following requirements: (i) the number of arbitrators shall be one; (ii) the place of arbitration shall be New York, New York; (iii) the arbitration shall be held, and the award rendered, in English; (iv) the appointing authority shall be the AAA acting in accordance with the rules adopted by the AAA for this purpose; and (v) the arbitration will be conducted by video conferencing or other suitable virtual electronic means and at mutually convenient times such that participation of the parties’ representatives outside of New York may be allowed. Each Party shall bear its own expenses, but the Parties shall share equally in the expenses of the arbitration tribunal. The Parties agree that all arbitration proceedings conducted pursuant to this Section shall be kept strictly confidential, and all information disclosed in the course of such arbitration proceedings shall be used solely for the purpose of those proceedings.

16. Notices

All notices required by or relating to this Agreement shall be in writing and deemed given if sent to the addressee specified below either (i) by registered or certified mail, return receipt requested, postage prepaid, three (3) days after such mailing, or (ii) by national overnight courier service, the next business day, or (iii) by via email to the email address(es) set forth in Insertion Order, or, if no such email address is provided below, to the Party’s last known email address.

17. Miscellaneous Provisions

If any provision of this Agreement or part thereof is invalid or becomes invalid at a later time, the validity of the remaining provisions shall remain unaffected. The relevant provision shall be replaced by a provision that as closely as possible reflects the purpose of the invalid provision.