MASTER SUBSCRIPTION AND SERVICES AGREEMENT

Last updated on Nov 12, 2021 - 11:42:00 AM

THIS MASTER SUBSCRIPTION AND SERVICES AGREEMENT GOVERNS THE CUSTOMER’S USE AND AVAILMENT OF SERVICES PROVIDED BY DEFMACRO SOFTWARE PRIVATE LIMITED (HEREINAFTER CLEARTAX). IT CONSTITUTES A BINDING AGREEMENT BETWEEN CLEARTAX AND THE CUSTOMER.

BY (1) EXECUTING AN ORDER FORM THAT REFERENCES THIS AGREEMENT OR (2) CLICKING A BOX INDICATING ACCEPTANCE OF THIS AGREEMENT OR (3) USING THE SERVICES, THE CUSTOMER AGREES TO THE TERMS OF THIS AGREEMENT. IF THE INDIVIDUAL ACCEPTING THIS AGREEMENT IS ACCEPTING ON BEHALF OF A COMPANY OR OTHER LEGAL ENTITY, SUCH INDIVIDUAL REPRESENTS THAT THEY HAVE THE AUTHORITY TO BIND SUCH ENTITY AND ITS AFFILIATES TO THESE TERMS AND CONDITIONS, IN WHICH CASE THE TERM “CUSTOMER” SHALL REFER TO SUCH ENTITY AND ITS AFFILIATES. IF THE INDIVIDUAL ACCEPTING THIS AGREEMENT DOES NOT HAVE SUCH AUTHORITY, OR DOES NOT AGREE WITH THESE TERMS AND CONDITIONS, SUCH INDIVIDUAL MUST NOT ACCEPT THIS AGREEMENT AND SHALL NOT USE THE SERVICES.

1. DEFINTIONS

1.1 “Affiliate” shall mean, in relation to any person:
i. if that person is an individual, any person who is a relative of such person;
and
ii. if that person (the “Subject Person”) is other than a natural person, any other person that, either directly or indirectly through one or more intermediate persons, controls, is controlled by or is under common control with the Subject Person. “Control” means the power to direct the management or policies of a person directly or indirectly, whether through the ownership of over fifty percent (50%) of the voting power of such person, or through the power to appoint over half of the members of the board of directors or similar governing body of such person or through any other arrangements.
And the words “Controls” or “Controlled by” or “Controlling” shall be construed accordingly.

1.2 “Agreement” means this Master Subscription and Services Agreement, any Order Form, addenda, exhibits and supplements thereto.

1.3 “Applicable Law” means any law, statute, rule, regulation, order, circular, decree, directive, judgement, decision or other similar mandate of any applicable central, national, state or local governmental authority having competent jurisdiction over, or application to a party or subject matter in question.

1.4 “Customer Data” means any content, materials, documents, data and information submitted by or for the Customer including any data generated, derived, processed, stored or transmitted thereof.

1.5 “Customer” means in the case of an individual accepting this Agreement on his or her own behalf, such individual, or in the case of an individual accepting this Agreement on behalf of a company or other legal entity, the company or other legal entity for which such individual is accepting this Agreement, and Affiliates of that company or entity (for so long as they remain Affiliates). It includes users of the Services.

1.6 “Malicious Code” means code, files, scripts, agents or programs intended to do harm, including, for example, viruses, worms, time bombs and Trojan horses.

1.7 “Non-ClearTax Application” means a web-based, mobile, offline or other software application functionality that interoperates with a Service, that is provided by the Customer or a third party.

1.8 “Order Form” means an ordering document or online order specifying the Services to be provided hereunder that is entered into between the Customer and ClearTax, including any addenda, exhibits and supplements thereto. By entering into an Order Form hereunder, an Affiliate agrees to be bound by the terms of this Agreement as if it were an original party hereto. For the instances where the Customer avails the Services of ClearTax through a Reseller, Order form shall deem to mean a document entered into between a Reseller and ClearTax specifying the Services to be provided by ClearTax and the charges payable by the Reseller.

1.9 “Technical Services” means migration, implementation, integration, training, or consulting services made available by ClearTax under applicable Order Form

1.10 “Reseller/Distributor” means a third party authorised by ClearTax in writing to sell Services.

1.11 “Services” means Subscription Services and Technical Services and exclude any Non-ClearTax Applications.

1.12 “Software” means ClearTax’s proprietary software including but not limited to ClearTax E-Invoicing software, as provided by ClearTax to the Customer pursuant to the Order Form.

1.13 “Subscription Services” means any services provided by ClearTax to the Customer including the subscription to Software and related support made available by ClearTax to the Customer under applicable Order Form.

2. CLEARTAX’S RESPONSIBILITIES

2.1. Provision of Subscription Services. Subject to terms of this Agreement and payment of the charges, ClearTax will (a) make the Subscription Services available to the Customer pursuant to the applicable Order Form (b) provide applicable ClearTax standard support for the Subscription Services to the Customer.

2.2. Protection of Customer Data. ClearTax will maintain appropriate administrative, physical, and technical safeguards for protection of the security, confidentiality, and integrity of Customer Data to prevent unauthorized access to Customer Data.

3. USE OF SUBSCRIPTION SERVICES

3.1. Subscriptions. Subject to the terms of this Agreement and payment of charges, ClearTax grants the Customer, a limited, non-exclusive, non-transferable right to access the Subscription Services. Subscription Services are purchased as subscriptions for the term stated in the applicable Order Form.

3.2. Usage Limits. Subscription Services are subject to usage limits specified in Order Forms. If the Customer exceeds a contractual usage limit or if the Customer uses the Subscription Services beyond the term of the Order Form and, or this Agreement, the Customer will execute an Order Form for additional quantities of the applicable Subscription Services promptly upon ClearTax’s request, and/or pay additional amounts for excess usage in accordance with the “Invoicing and Payment” section below, regardless of whether such excess usage is beyond the term of the Order Form and/or this Agreement. For instances where the Customer has availed the Services through a Reseller, Reseller shall request for additional quantities of the applicable Subscription Services for the Customer and pay applicable charges as agreed between Reseller and ClearTax.

3.3. Customer Responsibilities. The Customer shall (a) be responsible for compliance with this Agreement and Order Forms, (b) be responsible for the accuracy, quality and legality of the Customer Data, the means by which the Customer acquired the Customer Data, the Customer’s use of the Customer Data with the Services, and the interoperation of any Non-ClearTax Applications with which the Customer uses Subscription Services, (c) prevent unauthorized access to or use of Subscription Services and notify ClearTax promptly of any such unauthorized access or use and (d) be responsible for all activities that occur under its usernames, passwords or accounts or as a result of the Customer’s access to the Services and agrees that ClearTax is not responsible for any harm caused by users, including individuals who were not authorized to have access to the Services but who were able to gain access from the Customer’s user credentials.

3.4. Usage Restrictions. The Customer shall not (a) make any Subscription Service available to anyone other than the Customer or users, or use any Subscription Service for the benefit of anyone other than the Customer or its Affiliates, unless expressly stated otherwise in an Order Form, (b) sell, resell, rent, license, sublicense, distribute, make available, any Subscription Service, or include any Subscription Service in a service bureau or outsourcing offering, (e) interfere with or disrupt the integrity or performance of any Subscription Service or third-party data contained therein, (f) attempt to gain unauthorized access to any Subscription Service or its related systems or networks, (g) permit direct or indirect access to or use of any Subscription Services in a way that circumvents a contractual usage limit, or use any Subscription Services to access or use any of ClearTax intellectual property except as permitted under this Agreement, or Order Form, (h) modify, copy, or create derivative works based on a Subscription Service or any part, feature, function or user interface thereof, (i) disassemble, reverse engineer, reproduce, distribute, republish or decompile a Subscription Service, (j) remove or modify any program markings or any notice of ClearTax’s or its licensors’ proprietary rights, (k) perform or disclose any benchmark or performance tests of the Services, (l) access Subscription Services to (1) build a competitive product or service, (2) build a product or service using similar ideas, features, functions or graphics of the Service, (3) assist a third party in building or supporting, products or Services competitive to ClearTax or (4) copy any ideas, features, functions or graphics of the Service.

3.5. The Customer’s use of Services shall be subject to terms and conditions of use and privacy policy as updated from time to time by ClearTax.

4. NON-CLEARTAX APPLICATIONS

Any acquisition or use by the Customer of Non-ClearTax Application, and any exchange of data between the Customer and any Non-ClearTax Application is solely between the Customer and the applicable Non-ClearTax Application provider. ClearTax does not warrant or support Non-ClearTax Applications or other Non-ClearTax products or services, whether or not they are designated by ClearTax as “certified” or otherwise. ClearTax is not responsible for any disclosure, modification or deletion of the Customer Data resulting from access by such Non-ClearTax Application or its provider. ClearTax assumes no responsibility in relation to any services availed by the Customer from a Non-ClearTax Application and the Customer agrees and undertakes to indemnify and hold ClearTax harmless from any claim, loss, liability arising out of, or in connection with, or in relation to any such services being availed by the Customer.

5. TECHNICAL SERVICES

Subject to payment of applicable charges, ClearTax may make available for Customer, Technical Services as set forth in the applicable Order Form. Customer shall render necessary assistance to ClearTax in order for ClearTax to fulfil its responsibilities as set forth in this Agreement and the applicable Order Form. Unless otherwise stated in the applicable Order Form, all Technical Services under this Agreement are deemed accepted by Customer upon delivery.

6. CHARGES AND PAYMENT

6.1. Charges. The Customer shall pay the charges specified in Order Forms and all payments shall be made in the currency specified in the Order Form. Except as otherwise specified herein or in an Order Form, (a) charges are based on the Services and subscriptions purchased and not on actual usage and (b) payment obligations are non- cancellable, and charges paid are non-refundable.

6.2. Invoicing and Payment. Unless otherwise stated in the Order Form, all charges will be invoiced in advance and are payable within seven (7) days from the invoice date. The Customer shall be responsible for providing complete and accurate billing and contact information to ClearTax and notifying ClearTax of any changes to such information.

6.3. Unless otherwise stated in the Order Form, all invoices will be sent via email to the Customer’s email address registered with ClearTax.

6.4. If any invoiced amount is not received by ClearTax within the due date, then without limiting ClearTax’s rights or remedies, ClearTax may levy interest at the rate of 2% of the outstanding balance per month.

6.5. Suspension of Service. If any invoiced amount owed by the Customer under this or any other agreement for Services is thirty (30) days or more overdue, ClearTax may, suspend Services until such amounts are paid in full, provided that, ClearTax will give the Customer at least ten (10) days prior notice that its account is overdue before suspending services to the Customer.

6.6. Taxes. ClearTax’ s charges do not include any taxes. The Customer shall be responsible for paying all taxes associated with its purchases hereunder as per Applicable Law and the Customer shall furnish all documents to Cleartax upon request in relation to its tax compliance.

6.7. If a Customer avails or purchases any Services through a Reseller, then such Customer shall be liable to pay for such Services to the Reseller. However, the Customer shall continue to be liable to pay for Services purchased directly from ClearTax.

6.8. If a Customer avails or purchases any Services through a Reseller and (a) such Reseller notifies ClearTax of such Customer’s failure to pay amounts due to Reseller with respect to a Service; or (b) such Reseller fails to pay any amounts due to ClearTax; then ClearTax at its sole and absolute discretion may suspend or terminate the Services or terminate the Services being provided to the Customer. Customer consents to these suspension and termination rights and acknowledge and agrees that ClearTax shall not be liable to Customer to provide any Services to the Customer. Customer’s sole recourse with respect to any such suspension or termination shall be against the Reseller.

7. PROPRIETARY RIGHTS

7.1. As between ClearTax and the Customer, the Customer owns all of Customer’s Data and all intellectual property related to Customer’s Data. Notwithstanding anything to the contrary contained herein, the Customer hereby agrees, covenants, consents and grants ClearTax, its Affiliates, and its third-party service providers, all the rights to host, use, process, analyse, derive, store, display and transmit Customer Data including for providing the Services in accordance with this Agreement. Customer represents that it has, and warrants that it shall maintain, all rights as required to allow ClearTax, its Affiliates and its third-party service providers to compile, use, store, process, analyse, derive and retain Customer Data, including without limitation in combination with other ClearTax customers’ data.

7.2. Subject to the limited rights expressly granted hereunder, ClearTax shall retain all right, title and interest in and to the Services and all technology utilized by ClearTax to provide the Services, including any and all patents, copyrights, trademarks, trade names, trade secrets and other intellectual property rights relating to, embodied by, or incorporated in any of the foregoing including any updates, upgrades, enhancements, modifications or improvements made to, or derivatives of, the Services. If the Customer provides ClearTax with any feedback regarding any Services, ClearTax may use all such feedback without restriction. No rights are granted to the Customer hereunder other than as expressly set forth herein.

8. CONFIDENTIALITY

8.1. The Parties shall endeavour to protect Confidential Information. In the context of the relationship under this Agreement, each party (“Disclosing Party”) may disclose to the other party (“Receiving Party”) certain confidential information that has been marked “confidential” or with words of similar meaning, at the time of disclosure by such party (“Confidential Information”). ClearTax’s Confidential Information shall deem to include, without limitation, the pricing of Services, business proposals, technical documentation, integration methodologies, technical data, methods, processes, know-how and inventions. Confidential Information shall not include information that Receiving Party can show: (a) was already lawfully known to, or independently developed by, Receiving Party without access to, or use of, Confidential Information, (b) was received by Receiving Party from any third party without restrictions, (c) is publicly and generally available, free of confidentiality restrictions; or (d) is required to be disclosed by law, regulation or is requested in the context of a law enforcement investigation.

9. REPRESENTATIONS, WARRANTIES AND DISCLAIMERS

9.1. Each party represents and warrants that: (a) it is duly organized under Applicable Law and has sufficient authority to enter into this Agreement, (b) the person entering into this Agreement is authorized to sign this Agreement on behalf of such party and (c) the execution and performance under this Agreement does not conflict with any contractual obligations such party has to any third party.

9.2. The Customer represents and warrants that : (a) all information which has been given by the Customer or on behalf of the Customer by the Reseller to ClearTax with respect to the Customer is true, accurate and complete in all respects, (b) it shall maintain, all rights, privileges and licenses as required to allow ClearTax, its Affiliates and its third-party service providers to compile, use, store, process, analyse, derive and retain the Customer Data, (c) it has obtained all governmental authorizations, consents and approvals and corporate approval, and other consents as required under Applicable Law for the execution and performance of this Agreement have been obtained, and continue in force, (d) it shall pay the charges set out under applicable Order Form in a timely manner and in accordance with the terms of this Agreement, (e) it has reviewed the Services of ClearTax and that it’s purchase and use of the Services shall not be in breach of Applicable Laws, (f) it is duly authorised to conduct its business under Applicable Laws, (g) the execution, delivery and performance of this Agreement by the Customer shall not (i) violate or conflict with its organizational or constitutional documents, and (ii) constitute a violation of Applicable Law, (h) there are no legal, quasi-legal, administrative or other proceedings, claims, actions or governmental investigations of any nature pending against the Customer, or to which the Customer’s assets or properties are subject, and the Customer has not received any notice or intimation of any such proceeding, claim, action or governmental investigation against it, in each case, which relates in any manner to this Agreement or which could otherwise adversely impact its ability to undertake its obligations under this Agreement, and (i) the Customer has not and nor any Associated Persons or former Associated Persons has, directly or indirectly:

i. violated or is in violation of Money Laundering Laws, Anti-Bribery Laws, or rules, regulations, guidelines of the OFAC (“OFAC Regulations”) and other applicable anti-corruption Laws; or

ii. made, offered or promised to make, or authorized the payment or giving of money, or anything else of value, to any (i) executive, official, employee or person acting in an official capacity for or on behalf of a government department, government agency or a government-controlled entity or a public international organization (e.g., the International Monetary Fund or the World Bank), or (ii) political party or official thereof, or candidate for political office (each of the foregoing a “Government Official”), or (iii) any other person, while knowing that all or some portion of the money or value will be offered, given or promised to a government official for the purposes of obtaining or retaining business or securing any improper advantage or in other circumstances when such offer, payment or promise would be unlawful; or been subject to any investigation by any Governmental Authorities or regulators with regard to any actual or alleged breach of any relevant anti-corruption law.

Provided that in the case of former Associated Persons such action took place whilst the former Associated Person was an Associated Person.

9.3. Neither the Customer nor any of its current or former Associated Persons is or has been the subject of any investigation, inquiry or litigation, administrative or enforcement proceedings by any Governmental Authority or any customer regarding any offence or alleged offence under Anti-Bribery Laws or Money Laundering Laws, and no notice has been received that such investigation, inquiry or proceedings have been threatened or are pending, and there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.

9.4. The Customer is not (i) currently identified on the Specially Designated Nationals and Blocked Persons List maintained by the OFAC and/or on any other similar list maintained by OFAC or any other U.S. governmental agency pursuant to any authorising statute, executive order or regulation; and (ii) a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or executive order of the President of the United States.

For the purposes of this Agreement.

a. “Anti-Bribery Law” means the Indian Prevention of Corruption Act 1988, the US Foreign Corrupt Practices Act of 1977 and the UK Bribery Act 2010, and shall include any Applicable Laws that relate to the bribery or corruption, in each case as amended, re-enacted or replaced from time to time;

b. “Associated Person” means a Person (including any director, officer, employee, agent or other intermediary) who performs services for or on behalf of that Person or who holds shares of capital stock, partnership interests, limited liability company membership interests and units, shares, interest and other participations in that Person (in each case when performing such services or acting in such capacity);

c. “Money Laundering Law” means the Indian Prevention of Money Laundering Act, 2002 and all applicable anti-money laundering statutes of all jurisdictions, including, without limitation, Indian and U.S. anti-money laundering laws, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental or regulatory agency; and

d. “OFAC” means the Office of Foreign Assets Control of the Department of the Treasury of the United States of America.

9.5. The Customer has not nor had any affiliate or their respective directors, officers, managers, employees, its independent contractors, representatives or agents violated the provisions of the Foreign Corrupt Practices Act, 1977 (“FCPA”), the U.K. Bribery Act or Prevention of Corruption Act, 1988 (“PCA”) or any other applicable anti-bribery or anti-corruption law. None of the any of their directors, officers, employees and its agents or representative has, in any way in relation to the Customer or any of the Customer’s subsidiaries or controlled affiliates, (a) have offered, promised, made, paid or received or will offer, promise, make, pay or receive any bribe, kickback or other similar payment or transfer of value for the benefit of any person in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions) or any other party hereto; (b) have authorized, induced, or caused or will authorize, induce, or cause any person to offer, promise, make, pay or receive any such payment or transfer of value in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions) or any other party hereto; or (c) possess knowledge or reason to know that any such payment or transfer of value has occurred or will occur in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions).

9.6. EXCEPT AS EXPRESSLY PROVIDED HEREIN, THE CUSTOMER ACCEPTS THE SERVICES “AS IS” AND ACKNOWLEDGES THAT CLEARTAX MAKES NO OTHER WARRANTY OF ANY KIND WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND DISCLAIMS ALL IMPLIED AND STATUTORY WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. CLEARTAX FURTHER DISCLAIMS ANY WARRANTY THAT THE SERVICES WILL MEET THE CUSTOMER’S NEEDS OR EXPECTATION, BE ERROR FREE, OR THAT THE OPERATION OF THE SERVICE WILL BE UNINTERRUPTED, OR THE SERVICE ERRORS BE CORRECTED.

9.7. THE CUSTOMER ACKNOWLEDGES AND AGREES THAT CLEARTAX DOES NOT CONTROL THE TRANSFER OF DATA OVER COMMUNICATIONS FACILITIES, INCLUDING THE INTERNET, AND THAT THE SERVICES MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT IN THE USE OF SUCH COMMUNICATIONS FACILITIES. CLEARTAX SHALL NOT BE RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGE RESULTING FROM SUCH PROBLEMS.

9.8. THE PARTIES AGREE THAT CLEARTAX SHALL NOT BE RESPONSIBLE FOR ANY ISSUES RELATED TO THE PERFORMANCE, OPERATION OR SECURITY OF THE SERVICES THAT ARISE FROM CUSTOMER’S APPLICATIONS OR THIRD-PARTY APPLICATIONS. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, PARTIES AGREE THAT THE SERVICES MAY CONTAIN INFORMATION AND DATA SOURCED FROM THIRD-PARTY SERVICE PROVIDERS AND SUCH INFORMATION AND DATA IS THE SOLE RESPONSIBILITY OF THE PERSON THAT MAKES IT AVAILABLE. CLEARTAX DOES NOT MAKE ANY REPRESENTATION OR WARRANTY REGARDING THE RELIABILITY, ACCURACY, COMPLETENESS, AUTHENTICITY, MERCHANTABILITY, NON-INFRINGEMENT, CORRECTNESS, OR USEFULNESS OF THE INFORMATION AND DATA, THIRD-PARTY APPLICATIONS OR SERVICES, AND DISCLAIMS ALL LIABILITIES ARISING FROM OR RELATED TO THE INFORMATION AND DATA, THIRD PARTY APPLICATIONS OR SERVICES.

9.9. FOR ANY BREACH OF THE SERVICES WARRANTY, THE CUSTOMER’S EXCLUSIVE REMEDY AND CLEARTAX’S ENTIRE LIABILITY SHALL BE THE CORRECTION OF THE DEFICIENT SERVICES THAT CAUSED THE BREACH OF WARRANTY, OR, IF CLEARTAX CANNOT SUBSTANTIALLY CORRECT THE DEFICIENCY IN A COMMERCIALLY REASONABLE MANNER, CUSTOMER MAY CHOOSE TO END THE DEFICIENT SERVICES.

10. INDEMNIFICATION

Notwithstanding anything contained in this Agreement, the Customer shall defend, indemnify and hold harmless ClearTax (and its affiliates, officers, directors and employees) upon demand from and against any and all damages, actions, proceedings, claims, demands, costs, losses, liabilities, diminution in value, loss of earnings, profits and revenue, opportunity costs, expenses (including court costs and reasonable attorneys’ legal fees) in connection with, arising out of, or in relation to (i) breach or non-compliance of its obligations, consents, grants, undertakings, representations or warranties, and (ii) misrepresentation, negligence, fraud, wilful concealment and misconduct (iii) misuse of the Services and products of ClearTax for any illegal or unauthorised purposes; (iv) any injuries to persons or damage to property, body, business character, reputation including theft, resulting from the acts or omissions of the Customer; (v) any claims by a third party on ClearTax for the acts committed or omitted by the Customer; (vi) any violation of municipal, state or central laws governing the Services and products or their sale, that may result from such act or omission by the Customer.

11. LIMITATION OF LIABILITY

IN NO EVENT, CLEARTAX, ITS DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES OR AGENTS, SHALL BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS, REVENUE, DATA, OR DATA USE, ARISING OUT OF, OR RELATING TO, THE SERVICES OR THE ARRANGEMENTS BETWEEN THE PARTIES. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT, THE CUMULATIVE MAXIMUM LIABILITY OF CLEARTAX, ITS DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES OR AGENTS , WHETHER IN CONTRACT OR TORT OR DAMAGES OR INDEMNIFICATION CLAIMS OR NEGLIGENCE, BY STATUTE OR OTHERWISE, INCLUDING ARISING OUT OF THE WORK OR DELIVERABLES OR SERVICES COVERED BY THIS AGREEMENT, AND REGARDLESS OF THE THEORY OF LIABILITY, SHALL BE LIMITED TO PAYMENT OF INCURRED AND SUFFERED DIRECT DAMAGES ONLY AND SHALL IN NO EVENT EXCEED TWENTY FIVE PERCENT OF THE CHARGES RECEIVED BY CLEARTAX, FROM THE CUSTOMER.

12. TERM AND TERMINATION

12.1. Term This Agreement commences on the date the Customer first accepts it and, unless terminated earlier in accordance with the terms of this Agreement, shall continue until all the Subscription Services hereunder have expired or the Services have been rendered.

12.2. Term of Subscriptions. The term of each subscription shall be as specified in the applicable Order Form (“Initial Term”). The subscriptions will automatically renew for additional periods equal to the expiring subscription term (“Renewal Term”), unless (a) a renewed Order Form is executed with revised terms and charges, or (b) either party notifies the other party, no less than thirty (30) days prior to the end of, the Initial Term or any Renewal Term, that it has elected not to renew the Order Form or the Agreement, or (c) ClearTax intimates revision in the terms and charges post the Initial Term. Unless otherwise stated in an Order Form, the renewal charge shall increase by ten (10) percent of the applicable charges in the immediately preceding Order Form.

12.3. Termination. ClearTax may terminate this Agreement (a) if the Customer commits a breach of any of the terms and conditions of this Agreement, which if capable of cure or remedy, is not cured or remedied by the Customer, within a period of thirty (30) days from the date of issue of notice by ClearTax informing the Customer of such breach or (b) by providing thirty (30) days prior written notice to the Customer Non-payment of invoiced amount within the applicable due date shall constitute material breach of this Agreement. ClearTax may terminate this Agreement forthwith in the event (a) ClearTax or the Customer is restricted, prohibited or constrained under Applicable Law from continuing to provide or avail Services respectively, under this Agreement, (b) the Customer acts in violation of Applicable Law, (c) the Customer is adjudicated bankrupt, or if a receiver or a trustee is appointed for it or for a substantial portion of its assets, or if any assignment for the benefit of its creditors is made and such adjudication appointment or assignment is not set aside within 90 (ninety) days, or (d) liquidation proceedings are initiated either voluntarily or compulsorily against the Customer.

12.4. Effects of Termination. Upon any termination or expiration of this Agreement, ClearTax will cease to provide the Services and all outstanding charges due under an Order Form shall be required to be paid immediately. All charges due under an Order Form are non-cancellable and non-refundable.

12.5. Notwithstanding anything contained in Clauses 12.1 to 12.4, the term of Services purchased and, or availed by a Customer through a Reseller shall be as specified in the document executed between Reseller and ClearTax.

12.6. Publicity. Customer agrees and consents that ClearTax may refer to it as a customer of ClearTax in its communications and marketing materials, including by displaying the Customer’s name and logo on ClearTax’s website and other marketing materials.

13. GENERAL PROVISIONS

13.1. Third Party Service Providers. ClearTax may use third-party service providers, including application service providers, hosting service providers and system integrators for rendering Services.

13.2. ClearTax shall be excused from performance hereunder, without any liability, to the extent that performance is prevented, delayed or obstructed by circumstances beyond its reasonable control. Such circumstances may be including but not limited to an act of God, act of government, flood, fire, earthquake, civil unrest, act of terror, strike or other labour problem, Internet service provider failure delay, Non-ClearTax Application, denial of service attack, a virus attack on the Customer’s system leading to disruption, issues with FTP access from the Customer’s system, emergency maintenance upgrades or government restrictions (including the denial or cancellation of any licenses).

13.3. ClearTax shall have no responsibility or liability in relation to failure of any activity, if such activity may have been initiated by a third party or by the Customer itself, and that has failed or delayed on account of the process of authentication and acceptance of taxpayer’s data by appropriate authority or otherwise, including but not limited to, failure or delay as a result of, network or connectivity failure, device or application failure, failure, possible down time at government authority’s infrastructure or any other technical or non-technical error of any nature, whether foreseen or unforeseen at the time of entering into this Agreement.

13.4. Planned Downtime: ClearTax may shut down the Services to perform planned maintenance or to upgrade the Services. To the extent possible and reasonable, ClearTax may provide at least 48 hours of notice for such downtime. For the avoidance of doubt, planned downtime will exclude any emergency maintenance undertaken by ClearTax which shall be endeavoured to be undertaken during the non-business hours during weekends.

13.5. Anti-Corruption. The Customer agrees and confirms that it has not received or been offered any illegal or improper bribe, kickback, payment, gift, or thing of value from an employee or agent of ClearTax in connection with this Agreement.

13.6. Entire Agreement and Order of Precedence. This Agreement along with the Order Forms represents the entire agreement between the parties regarding the subject matter hereof and supersedes any and all other agreements between the parties, whether written or oral, regarding the subject matter hereof. For clarity, the provisions of this Agreement supersede any earlier non-disclosure or confidentiality agreements, purchase orders or in any other Customer documentation (excluding Order Forms). In the event of any conflict or inconsistency among the following documents, the order of precedence shall be: (1) the applicable Order Form, (2) this Agreement and (3) Terms of Use and Privacy Policy.

13.7. Relationship. The parties are independent contractors. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary or employment relationship between the parties.

13.8. Waiver. No failure or delay by either party in exercising any right under this Agreement will constitute a waiver of that right.

13.9. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be contrary to law, the provision will be deemed null and void, and the remaining provisions of this Agreement will remain in effect.

13.10 Assignment. The Customer shall not assign any of its rights and obligations under this Agreement without the prior written consent of ClearTax. ClearTax may, in its sole and absolute discretion, assign, novate, transfer or otherwise dispose of any or all of its rights and obligations under this Agreement or any part thereof including but not limited to the right to payments, to any of its Affiliates, successors, associates or any other third parties or Persons in order to exercise any of the rights or perform any of the obligations under this Agreement, and the Customer shall, at ClearTax’s intimation, enter into an appropriate agreement with such Affiliates, successors, associates or any other third parties or Persons in such form as ClearTax may specify in order to enable ClearTax to exercise its rights pursuant to this Clause. A change in the legal status of ClearTax shall not affect the validity of this Agreement and this Agreement shall be binding on any successor to ClearTax.

13.11. Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of India, without regard to conflict of law principles. The courts, tribunals, councils, forums and other dispute resolution bodies at New Delhi, India shall have the exclusive jurisdiction to adjudicate upon any or all disputes arising out of or in connection with this Agreement.

13.12. Notice. Customer shall direct notices under this Agreement to the following address.
Attn: Legal Department, Defmacro Software Private Limited (aka ClearTax),
Registered office: B-3 Lower Ground Floor,
School Lane, Naraina Vihar, New Delhi 110028
Corporate Office: 23, 24 AMR Tech Park,
Block 1, First Floor, Hosur Main Road
Hongasandra, Bangalore, Karnataka, India
PIN- 560068
Email: legal@cleartax.in, compliance@cleartax.in.

INTEGRATION SERVICES AGREEMENT

Last updated on Jul 28, 2021 - 05:42:00 PM

THIS INTEGRATION SERVICES AGREEMENT GOVERNS CUSTOMER’S AVAILMENT OF SERVICES PROVIDED BY DEFMACRO SOFTWARE PRIVATE LIMITED (HEREINAFTER CLEARTAX). IT CONSTITUTES A BINDING AGREEMENT BETWEEN CLEARTAX AND THE CUSTOMER

BY (1) EXECUTING AN ORDER FORM THAT REFERENCES THIS AGREEMENT OR (2) CLICKING A BOX INDICATING ACCEPTANCE OF THIS AGREEMENT OR (3) USING THE SERVICES, CUSTOMER AGREES TO THE TERMS OF THIS AGREEMENT. IF THE INDIVIDUAL ACCEPTING THIS AGREEMENT IS ACCEPTING ON BEHALF OF A COMPANY OR OTHER LEGAL ENTITY, SUCH INDIVIDUAL REPRESENTS THAT THEY HAVE THE AUTHORITY TO BIND SUCH ENTITY AND ITS AFFILIATES TO THESE TERMS AND CONDITIONS, IN WHICH CASE THE TERM “CUSTOMER” SHALL REFER TO SUCH ENTITY AND ITS AFFILIATES. IF THE INDIVIDUAL ACCEPTING THIS AGREEMENT DOES NOT HAVE SUCH AUTHORITY, OR DOES NOT AGREE WITH THESE TERMS AND CONDITIONS, SUCH INDIVIDUAL MUST NOT ACCEPT THIS AGREEMENT AND SHALL NOT USE THE SERVICES.

1. DEFINTIONS

1.1 “Affiliate” shall mean, in relation to any person:
i. if that person is an individual, any person who is a relative of such person;
and
ii. if that person (the “Subject Person”) is other than a natural person, any other person that, either directly or indirectly through one or more intermediate persons, controls, is controlled by or is under common control with the Subject Person. “Control” means the power to direct the management or policies of a person directly or indirectly, whether through the ownership of over fifty percent (50%) of the voting power of such person, or through the power to appoint over half of the members of the board of directors or similar governing body of such person or through any other arrangements.
And the words “Controls” or “Controlled by” or “Controlling” shall be construed accordingly.

1.2 “Agreement” means this Integration Services Agreement, any Order Form, addenda, exhibits and supplements thereto.

1.3 “Applicable Law” means any law, statute, rule, regulation, order, circular, decree, directive, judgement, decision or other similar mandate of any applicable central, national, state or local governmental authority having competent jurisdiction over, or application to a party or subject matter in question.

1.4 “Customer Data” means any content, materials, documents, data and information submitted by or for Customer including any data generated, derived, processed, stored or transmitted thereof.

1.5 “Customer” means in the case of an individual accepting this Agreement on his or her own behalf, such individual, or in the case of an individual accepting this Agreement on behalf of a company or other legal entity, the company or other legal entity for which such individual is accepting this Agreement, and Affiliates of that company or entity (for so long as they remain Affiliates). It includes users of the Services.

1.6 “Malicious Code” means code, files, scripts, agents or programs intended to do harm, including, for example, viruses, worms, time bombs and Trojan horses.

1.7 “Non-ClearTax Application” means a web-based, mobile, offline or other software application functionality that interoperates with a Service, that is provided by Customer or a third party.

1.8 “Order Form” means an ordering document or online order specifying the scope of Services to be provided hereunder that is entered into between Customer and ClearTax, including any addenda, exhibits and supplements thereto. By entering into an Order Form hereunder, an Affiliate agrees to be bound by the terms of this Agreement as if it were an original party hereto. For the instances where the Customer avails the Services of ClearTax through a Reseller, Order form shall deem to mean a document entered into between a Reseller and ClearTax specifying the Services to be provided by ClearTax and the charges payable by the Reseller.

1.9 “Reseller/Distributor” means a third party authorised by ClearTax in writing to sell Services.

1.10 “Services” means implementation, integration, development and, or consultation services made available by ClearTax under applicable Order Form together with the provision of the deliverables and exclude any Non-ClearTax Applications.

2. PROVISION OF SERVICES

2.1. Subject to terms of this Agreement and receipt of the applicable charges, ClearTax will make the Services available to the Customer pursuant to the applicable Order Form and the scope of services set out therein. The Services will be performed with reasonable skill and care and in accordance with any specific terms as set out in the Order Form.

2.2. Integration Development Plan: In the event the Customer avails integration development services, then the Customer acknowledges and agrees it shall, within a period of ten business days from the date of execution of the applicable Order Form, provide all the requirements sought by ClearTax and finalise and accept the integration development plan provided by ClearTax, failing which, ClearTax shall charge an additional amount of INR 10,000 per day for every additional day of delay, until the date of acceptance of the integration development plan.

2.3. User Acceptance Testing: Upon completion of the integration development as agreed in the integration development plan, ClearTax shall deliver integration development to the Customer for user acceptance testing. The Customer shall complete the user acceptance testing within a period of 14 business days of submission and notify ClearTax of (i) its acceptance or (ii) any changes required in the integration development, failing which the integration development delivered by ClearTax shall be deemed accepted. In the event the Customer fails to conduct user acceptance testing within such period ClearTax may, in its sole discretion, charge an additional amount of INR 10,000 per day for every additional day of delay, until the date of completion of user acceptance testing.

2.4. Any request for changes post-delivery of the integration development must be in writing and shall set out in sufficient detail that the change requested is within the scope of services set out in the Order Form and is in accordance with the agreed integration development plan. ClearTax shall then use commercially reasonable efforts to perform the changes requested to the extent feasible in ClearTax’s sole discretion and reissue the integration development to the Customer.

2.5. The integration development shall be deemed accepted and the Customer shall be deemed liable to make all outstanding payments as agreed in the Order Form upon (i) delivery of the integration development by ClearTax; (ii) failure of the Customer to conduct user acceptance testing; (iii) failure of the Customer to notify ClearTax of the changes requested in sufficient detail within 14 days of submission of integration development or within 7 days of the submission of the changes requested, as the case may be.

2.6. Any changes subsequent to the acceptance or deemed acceptance of the integration development, requested by the Customer may be carried out by ClearTax at its sole and absolute discretion and at additional costs as notified by ClearTax.

2.7. Notwithstanding anything to the contrary, the Customer agrees that any request for integration development which is not stipulated in the Order Form, shall be requests for enhancement of the scope of services and such additional integration development may be provided by ClearTax, at its sole and absolute discretion and at additional cost as notified by ClearTax.

2.8. The Customer acknowledges and agrees that the integration consultation services shall be provided by ClearTax for a fixed period 30 days commencing from the date of execution of the applicable Order Form. ClearTax shall charge an additional amount of INR 10,000 per day, in the event the integration consultation exceeds the 30-day period. The integration consultation service shall be deemed completed upon expiry of 30 days.

2.9. The timelines for the provision of the Services, if any, shall be as specifically set out in the Order Form. Unless the timelines are expressly agreed in the applicable Order Form, ClearTax shall not be under an obligation to adhere to any specific timelines for provision of Services. Under no circumstance the Customer shall claim for a refund of the charges or seek a waiver of its payment obligations on account of delay in provision of Services.

2.10. Non-ClearTax Applications: Any acquisition or use by Customer of Non-ClearTax Application, and any exchange of data between Customer and any Non-ClearTax Application is solely between Customer and the applicable Non-ClearTax Application provider. ClearTax does not warrant or support Non-ClearTax Applications or other Non-ClearTax products or services, whether or not they are designated by ClearTax as “certified” or otherwise. ClearTax is not responsible for any disclosure, modification or deletion of Customer Data resulting from access by such Non-ClearTax Application or its provider. ClearTax assumes no responsibility in relation to any services availed by the Customer from a Non-ClearTax Application and the Customer agrees and undertakes to indemnify and hold ClearTax harmless from any claim, loss, liability arising out of, or in connection with, or in relation to any such services being availed by the Customer.

2.11. Protection of Customer Data. ClearTax will maintain appropriate administrative, physical, and technical safeguards for protection of the security, confidentiality, and integrity of Customer Data to prevent unauthorized access to Customer Data.

3. RIGHTS AND OBLIGATION OF THE CUSTOMER

3.1. The Customer agrees to comply with its obligations as set out in this Agreement, including the customer dependencies referred to in the Order Form and the following general obligations to: (a) provide with such information, co-operation, assistance, facilities, networks, or systems and resources as may be required to perform the Services; (b) act reasonably and in good faith in connection with this Agreement and provide prompt attention to any matter raised by ClearTax relating to Customer’s obligations and/or the performance of the Services; (c) be responsible for its commercial decisions and to take into account any restrictions on the scope of Services work and all other factors of which the Customer and its other advisers are, or should be, aware; (d) implement reasonable and appropriate business continuity and disaster recovery measures to mitigate against any reasonably foreseeable risks; (e) ensure that all equipment and software that it makes available or provides will be free of computer viruses, spyware and other malware and will comply with their specifications; (f) maintain and be responsible for its own data and software back-up and associated restoration measures; (g) retain risk in, and title to, any hardware, software and other materials that Customer provides or makes available; (h) ensure that ClearTax, its personnel and its third party service providers, have all necessary rights and permissions to use any hardware, software and other materials provided or to be provided by the Customer for the purposes of the Agreement

3.2. Recommendations: To the extent that any recommendations or suggestions are made to the Customer by ClearTax, its personnel or its third party service providers whether as part of the Services or otherwise regarding procurement of any third party products and/or services, the Customer acknowledges that: (a) such recommendations should not form the sole basis for any decision or action or inaction by the Customer; (b) the third party elements relate to third parties’ products and/or services which are unconnected with ClearTax, and therefore Customer shall be responsible for verifying with the relevant third party as regards the quality, availability and/or suitability of such third party elements; and (c) ClearTax will not be responsible for the quality, availability or suitability of the third party elements.

3.3. ClearTax’s ability to perform its obligations is dependent on Customer fulfilling its obligations and, on any assumptions, set out in the Order Form or communicated by the Customer, being correct. To the extent that Customer does not fulfil its obligations under this Agreement or the agreed assumptions are, or become incorrect, then (without prejudice to our rights and remedies): (a) ClearTax shall be entitled to charge the Customer for its resources assigned to performing the Services even if not utilized, together with any additional charges which ClearTax incurs; (b) ClearTax may, at its sole and absolute discretion change the specification or scope of the Services or any agreed milestone dates and timetables; (c) ClearTax may revise the charges and the Customer agrees to accept changes to them; and (d) ClearTax shall be relieved of its obligations to the extent that it is prevented from fulfilling them in accordance with this Agreement.

3.4. Customer will (a) be responsible for compliance with this Agreement and Order Forms, (b) be responsible for the accuracy, quality and legality of Customer Data, the means by which Customer acquired Customer Data, Customer’s use of Customer Data with the Services, and the interoperation of any Non-ClearTax Applications with which Customer uses the Services, (c) prevent unauthorized access to or use of Services and notify ClearTax promptly of any such unauthorized access or use, and (d) be responsible for all activities that occur under its usernames, passwords, authorisation tokens or accounts or as a result of Customer’s access to the Services and agrees that ClearTax shall not be responsible for any harm caused by the users, including individuals who were not authorized to have access to the usernames, passwords, authorisation tokens or accounts or Services but who were able to gain access from Customer’s credentials.

4. CHARGES AND PAYMENT

4.1. Charges. Customer will pay the charges specified in Order Forms. Except as otherwise specified herein or in an Order Form, (a) charges are based on Services purchased and not actual usage and (b) payment obligations are non- cancellable, and charges paid are non-refundable.

4.2. ClearTax shall invoice for the Services on the basis of its charges and other costs which includes direct costs and any expenses not directly allocated to the Services, including costs of third parties that have been engaged and any taxes owed with respect to them. The amounts invoiced by ClearTax may differ from earlier estimates or quotations.

4.3. Invoicing and Payment. Unless otherwise stated in the Order Form, all charges will be invoiced in advance and are payable within 7 days from the invoice date. Customer shall be responsible for providing complete and accurate billing and contact information to ClearTax and notifying ClearTax of any changes to such information.

4.4. Unless otherwise stated in the Order Form, all invoices will be sent via email to Customer’s email address registered with ClearTax.

4.5. Notwithstanding anything to the contrary, the Customer agrees that it shall not withhold any payments to be made to ClearTax or seek a waiver of its payment obligations, for any reason whatsoever.

4.6. If any invoiced amount is not received by ClearTax within the due date, then without limiting ClearTax’ s rights or remedies, ClearTax may levy interest at the rate of 2% of the outstanding balance per month.

4.7. Suspension of Service. If any invoiced amount owed by Customer under this or any other agreement for Services is 30 days or more overdue, ClearTax may, suspend Services until such amounts are paid in full, provided that, ClearTax will give Customer at least 10 days’ prior notice that its account is overdue before suspending services to Customer.

4.8. Taxes. ClearTax’ s charges do not include any taxes. Customer is responsible for paying all taxes associated with its purchases hereunder.

4.9. If a Customer avails/purchases any Services through a Reseller, then such Customer shall be liable to pay for such Services to the Reseller. However, the Customer shall continue to be liable to pay for Services purchased directly from ClearTax.

4.10. If a Customer avails/purchases any Services through a Reseller and (a) such Reseller notifies ClearTax of such Customer’s failure to pay amounts due to Reseller with respect to a Service; or (b) such Reseller fails to pay any amounts due to ClearTax; then ClearTax at its sole and absolute discretion may suspend or terminate the Services. Customer consents to these suspension and termination rights and acknowledge and agrees that ClearTax shall not be liable to Customer to provide any Services to the Customer. Customer’s sole recourse with respect to any such suspension or termination shall be against the Reseller.

5. PROPRIETARY RIGHTS AND LICENSES

5.1. As between ClearTax and Customer, Customer owns all of Customer’s Data and all intellectual property related to Customer’s Data. Notwithstanding anything to the contrary contained herein, the Customer hereby agrees, covenants, consents and grants ClearTax, its Affiliates, and its third-party service providers, all the rights to host, use, process, analyse, derive, store, display and transmit Customer Data including for providing the Services in accordance with this Agreement. Customer represents that it has, and warrants that it shall maintain, all rights as required to allow ClearTax, its Affiliates and its third party service providers to compile, use, store, process, analyse, derive and retain Customer Data, including without limitation in combination with other ClearTax customers’ data.

5.2. Subject to the limited rights expressly granted hereunder, ClearTax shall retain all right, title and interest in and to the Services and all technology utilized by ClearTax to provide the Services, including any and all patents, copyrights, trademarks, trade names, trade secrets and other intellectual property rights relating to, embodied by, or incorporated in any of the foregoing including any updates, upgrades, enhancements, modifications or improvements made to, or derivatives of, the Services. If Customer provides ClearTax with any feedback regarding any Services, ClearTax may use all such feedback without restriction. No rights are granted to Customer hereunder other than as expressly set forth herein.

5.3. Use of Deliverables and Materials: Subject to any restrictions contained in this Agreement and applicable third-party licenses, the Customer shall use the deliverables for its internal purposes only. The Customer shall not sub-licence the deliverables to or make them available to third parties without ClearTax’s prior written consent.

5.4. Use of Customer materials: The Customer hereby grants the right to ClearTax, its personnel and its third party service providers to use any documentation or materials including systems, methodologies, tools, software, reports, correspondence and advice supplied or made available by or on behalf of the Customer.

5.5. Third party items: Where the Customer is responsible for providing third party items including software or hard-ware, the Customer shall obtain all necessary licenses and consents for the Customer, ClearTax, its personnel and its third party service provider to use such items for the purposes of this Agreement.

5.6. Know how: Notwithstanding anything to the contrary, ClearTax retains the right to use all know- how and residual knowledge obtained in connection with the Services and nothing in this Agreement shall prevent ClearTax from using any know-how, methodologies, ideas or concepts acquired before or during the performance of the Services, for any purpose.

6. CONFIDENTIALITY

6.1. The Parties shall endeavour to protect Confidential Information. In the context of the relationship under this Agreement, each party (a “Disclosing Party”) may disclose to the other party (a “Receiving Party”) certain confidential information that has been marked “confidential” or with words of similar meaning, at the time of disclosure by such party (“Confidential Information”). ClearTax’s Confidential Information shall deem to include, without limitation, the pricing of Services, business proposals, technical documentation, integration methodologies, technical data, methods, processes, know-how and inventions. Confidential Information shall not include information that Receiving Party can show: (a) was already lawfully known to, or independently developed by, Receiving Party without access to, or use of, Confidential Information, (b) was received by Receiving Party from any third party without restrictions, (c) is publicly and generally available, free of confidentiality restrictions; or (d) is required to be disclosed by law, regulation or is requested in the context of a law enforcement investigation.

7. WARRANTIES AND DISCLAIMERS

7.1. Each party represents and warrants that: (a) it is duly organized under applicable law and has sufficient authority to enter into this Agreement, (b) the person entering into this Agreement is authorized to sign this Agreement on behalf of such party and (c) the execution and performance under this Agreement does not conflict with any contractual obligations such party has to any third party.

7.2. Customer represents and warrants that : (a) all information which has been given by the Customer or on behalf of the Customer by the Reseller to ClearTax with respect to the Customer is true, accurate and complete in all respects, (b) it shall maintain, all rights, privileges and licenses as required to allow ClearTax, its Affiliates and its third-party service providers to compile, use, store, process, analyse, derive and retain Customer Data, (c) it has obtained all governmental authorizations, consents and approvals and corporate approval, and other consents as required under Applicable Law for the execution and performance of this Agreement have been obtained, and continue in force, and (d) The Customer has not and nor any Associated Persons or former Associated Persons has, directly or indirectly:

i. violated or is in violation of Money Laundering Laws, Anti-Bribery Laws, or rules, regulations, guidelines of the OFAC (“OFAC Regulations”) and other applicable anti-corruption Laws; or

ii. made, offered or promised to make, or authorized the payment or giving of money, or anything else of value, to any (i) executive, official, employee or person acting in an official capacity for or on behalf of a government department, government agency or a government-controlled entity or a public international organization (e.g., the International Monetary Fund or the World Bank), or (ii) political party or official thereof, or candidate for political office (each of the foregoing a “Government Official”), or (iii) any other person, while knowing that all or some portion of the money or value will be offered, given or promised to a government official for the purposes of obtaining or retaining business or securing any improper advantage or in other circumstances when such offer, payment or promise would be unlawful; or been subject to any investigation by any Governmental Authorities or regulators with regard to any actual or alleged breach of any relevant anti-corruption law.


Provided that in the case of former Associated Persons such action took place whilst the former Associated Person was an Associated Person.

7.3. Neither the Customer nor any of its current or former Associated Persons is or has been the subject of any investigation, inquiry or litigation, administrative or enforcement proceedings by any Governmental Authority or any customer regarding any offence or alleged offence under Anti-Bribery Laws or Money Laundering Laws, and no notice has been received that such investigation, inquiry or proceedings have been threatened or are pending, and there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.

7.4. The Customer is not (i) currently identified on the Specially Designated Nationals and Blocked Persons List maintained by the OFAC and/or on any other similar list maintained by OFAC or any other U.S. governmental agency pursuant to any authorising statute, executive order or regulation; and (ii) a Person with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or executive order of the President of the United States.

For the purposes of this Agreement:

a. “Anti-Bribery Law” means the Indian Prevention of Corruption Act 1988, the US Foreign Corrupt Practices Act of 1977 and the UK Bribery Act 2010, and shall include any Applicable Laws that relate to the bribery or corruption, in each case as amended, re-enacted or replaced from time to time;

b. “Associated Person” means a Person (including any director, officer, employee, agent or other intermediary) who performs services for or on behalf of that Person or who holds shares of capital stock, partnership interests, limited liability company membership interests and units, shares, interest and other participations in that Person (in each case when performing such services or acting in such capacity);

c. “Money Laundering Law” means the Indian Prevention of Money Laundering Act, 2002 and all applicable anti-money laundering statutes of all jurisdictions, including, without limitation, Indian and U.S. anti-money laundering laws, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental or regulatory agency; and

d. “OFAC” means the Office of Foreign Assets Control of the Department of the Treasury of the United States of America.

7.5. The Customer has not nor has any affiliate or their respective directors, officers, managers, employees, its independent contractors, representatives or agents violated the provisions of the Foreign Corrupt Practices Act, 1977 (“FCPA”), the U.K. Bribery Act or Prevention of Corruption Act, 1988 (“PCA”) or any other applicable anti-bribery or anti-corruption law. None of the any of their directors, officers, employees and its agents or representative has, in any way in relation to the Customer or any of the Customer’s subsidiaries or controlled affiliates, (i) have offered, promised, made, paid or received or will offer, promise, make, pay or receive any bribe, kickback or other similar payment or transfer of value for the benefit of any person in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions) or any other party hereto; (ii) have authorized, induced, or caused or will authorize, induce, or cause any person to offer, promise, make, pay or receive any such payment or transfer of value in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions) or any other party hereto; or (iii) possess knowledge or reason to know that any such payment or transfer of value has occurred or will occur in connection with obtaining or retaining business or to secure an improper advantage (including, but not limited to, with respect to its respective capital contributions, including additional contributions and funding and in-kind capital contributions).

7.6. EXCEPT AS EXPRESSLY PROVIDED HEREIN, CUSTOMER ACCEPTS THE SERVICES “AS IS” AND ACKNOWLEDGES THAT CLEARTAX MAKES NO OTHER WARRANTY OF ANY KIND WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AND DISCLAIMS ALL IMPLIED AND STATUTORY WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. CLEARTAX FURTHER DISCLAIMS ANY WARRANTY THAT THE SERVICES WILL MEET CUSTOMER’S NEEDS OR EXPECTATION, BE ERROR FREE, OR THAT THE OPERATION OF THE SERVICE WILL BE UNINTERRUPTED OR THE SERVICE ERRORS BE CORRECTED.

7.7. CUSTOMER ACKNOWLEDGES AND AGREES THAT CLEARTAX DOES NOT CONTROL THE TRANSFER OF DATA OVER COMMUNICATIONS FACILITIES, INCLUDING THE INTERNET, AND THAT THE SERVICES MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT IN THE USE OF SUCH COMMUNICATIONS FACILITIES. CLEARTAX IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGE RESULTING FROM SUCH PROBLEMS.

7.8. THE PARTIES AGREE THAT CLEARTAX SHALL NOT BE RESPONSIBLE FOR ANY ISSUES RELATED TO THE PERFORMANCE, OPERATION OR SECURITY OF THE SERVICES THAT ARISE FROM CUSTOMER’S APPLICATIONS OR THIRD PARTY APPLICATION. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, PARTIES AGREE THAT THE SERVICES MAY CONTAIN INFORMATION AND DATA SOURCED FROM THIRD-PARTY SERVICE PROVIDERS AND SUCH INFORMATION AND DATA IS THE SOLE RESPONSIBILITY OF THE PERSON THAT MAKES IT AVAILABLE. CLEARTAX DOES NOT MAKE ANY REPRESENTATION OR WARRANTY REGARDING THE RELIABILITY, ACCURACY, COMPLETENESS, AUTHENTICITY, MERCHANTIBILITY, NON-INFRINGEMENT, CORRECTNESS, OR USEFULNESS OF THE INFORMATION AND DATA, THIRD-PARTY APPLICATIONS OR SERVICES, AND DISCLAIMS ALL LIABILITIES ARISING FROM OR RELATED TO THE INFORMATION AND DATA, THIRD PARTY APPLICATIONS OR SERVICES.

7.9. FOR ANY BREACH OF THE SERVICES WARRANTY, CUSTOMER’S EXCLUSIVE REMEDY AND CLEARTAX’S ENTIRE LIABILITY SHALL BE THE CORRECTION OF THE DEFICIENT SERVICES THAT CAUSED THE BREACH OF WARRANTY, OR, IF CLEARTAX CANNOT SUBSTANTIALLY CORRECT THE DEFICIENCY IN A COMMERCIALLY REASONABLE MANNER, CUSTOMER MAY CHOOSE TO END THE DEFICIENT SERVICES.

8. INDEMNIFICATION

Notwithstanding anything contained in this Agreement, the Customer shall defend, indemnify and hold harmless ClearTax (and its affiliates, officers, directors and employees) upon demand from and against any and all damages, actions, proceedings, claims, demands, costs, losses, liabilities, diminution in value, loss of earnings, profits and revenue, opportunity costs, expenses (including court costs and reasonable attorneys’ legal fees) in connection with, arising out of, or in relation to (i) breach or non-compliance of its obligations, consents, grants, undertakings, representations or warranties, and (ii) misrepresentation, negligence, fraud, wilful concealment and misconduct (iii) misuse of the Services and products of ClearTax for any illegal or unauthorised purposes; (iv) any injuries to persons or damage to property, body, business character, reputation including theft, resulting from the acts or omissions of Customer; (v) any claims by a third party on ClearTax for the acts committed or omitted by the Customer; (vi) any violation of municipal, state or central laws governing the Services and products or their sale, that may result from such act or omission by the Customer.

9. LIMITATION OF LIABILITY

IN NO EVENT, CLEARTAX, ITS DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES OR AGENTS, SHALL BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS, REVENUE, DATA, OR DATA USE, ARISING OUT OF, OR RELATING TO, THE SERVICES OR THE ARRANGEMENTS BETWEEN THE PARTIES. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT, THE CUMULATIVE MAXIMUM LIABILITY OF CLEARTAX, ITS DIRECTORS, OFFICERS, EMPLOYEES, AFFILIATES OR AGENTS , WHETHER IN CONTRACT OR TORT OR DAMAGES OR INDEMNIFICATION CLAIMS OR NEGLIGENCE, BY STATUTE OR OTHERWISE, INCLUDING ARISING OUT OF THE WORK OR DELIVERABLES OR SERVICES COVERED BY THIS AGREEMENT, AND REGARDLESS OF THE THEORY OF LIABILITY, SHALL BE LIMITED TO PAYMENT OF INCURRED AND SUFFERED DIRECT DAMAGES ONLY AND SHALL IN NO EVENT EXCEED TWENTY FIVE PERCENT OF THE CHARGES RECEIVED BY CLEARTAX, FROM THE CUSTOMER.

10. TERM AND TERMINATION

10.1. Term. This Agreement commences on the date Customer first accepts it and continues until the Services under the applicable Order Form are delivered or have been terminated.

10.2. Termination. ClearTax shall terminate this Agreement upon written notice if the Customer is in breach of this Agreement and such breach is not curable or is not cured within 30 (thirty) days from the receipt of written notice of such breach. Non-payment of invoiced amount within the applicable due date shall constitute material breach of this Agreement. ClearTax may terminate this Agreement and, or provision of Services under applicable Order Form with 30 (thirty) days prior written notice to the Customer.

10.3. Effects of Termination. Upon any termination or expiration of this Agreement, ClearTax will cease to provide the Services and any Charges due under an Order Form shall be required to be paid immediately. All charges due under an Order Form are non-cancellable and non-refundable. Any obligations of the parties that by their nature are intended to survive the termination or expiration of this Agreement, shall survive any termination or expiration thereof.

10.4. Notwithstanding anything contained in Clauses 10.1 – 10.3, the Term of Services purchased/availed by a Customer through a Reseller shall be as specified in the document executed between Reseller and ClearTax.

10.5. Publicity. Customer agrees and consents that ClearTax may refer to Customer as a customer of ClearTax in its communications and marketing materials, including by displaying Customer’s name and logo on ClearTax’s website and other marketing materials.

11. GENERAL PROVISIONS

11.1. Third Party Service Providers. ClearTax may use third-party service providers, including application service providers, hosting service providers and system integrators for rendering Services. ClearTax may engage third parties to provide services in connection with Services, provided that such third parties have executed appropriate confidentiality agreements with ClearTax.

11.2. ClearTax shall be excused from performance hereunder, without any liability, to the extent that performance is prevented, delayed or obstructed by circumstances beyond its reasonable control. Such circumstances may be including but not limited to an act of God, act of government, flood, fire, earthquake, civil unrest, act of terror, strike or other labor problem, Internet service provider failure delay, Non-ClearTax Application, denial of service attack, a virus attack on Customer’s system leading to disruption, issues with FTP access from Customer’s system, emergency maintenance upgrades or government restrictions(including the denial or cancellation of any licenses).

11.3. ClearTax shall have no responsibility or liability in relation to failure of any activity, if such activity may have been initiated by a third party or by Customer itself, and that has failed or delayed on account of the process of authentication and acceptance of taxpayer/s data by GST System or otherwise, including but not limited to, failure or delay as a result of, network or connectivity failure, device or application failure, GST’s System’s failure, possible down time at GST System’s end or any other technical or non-technical error of any nature, whether foreseen or unforeseen at the time of entering into this Agreement.

11.4. Planned Downtime: ClearTax may suspend the Services to perform planned maintenance or to upgrade the Services. To the extent possible and reasonable, ClearTax may provide at least 48 hours of notice for such downtime. For the avoidance of doubt, planned downtime will exclude any emergency maintenance undertaken by ClearTax which shall be endeavoured to be undertaken during the non-business hours during weekends.

11.5. Anti-Corruption. Customer agrees and confirms that it has not received or been offered any illegal or improper bribe, kickback, payment, gift, or thing of value from an employee or agent of ClearTax in connection with this Agreement.

11.6. Entire Agreement and Order of Precedence. This Agreement along with the Order Forms represents the entire agreement between the parties regarding the subject matter hereof and supersedes any and all other agreements between the parties, whether written or oral, regarding the subject matter hereof. For clarity, the provisions of this Agreement supersede any earlier non-disclosure or confidentiality agreements, purchase orders or in any other Customer documentation (excluding Order Forms). In the event of any conflict or inconsistency among the following documents, the order of precedence shall be: (1) the applicable Order Form, and (2) this Agreement.

11.7. Relationship. The parties are independent contractors. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary or employment relationship between the parties.

11.8. Waiver. No failure or delay by either party in exercising any right under this Agreement will constitute a waiver of that right.

11.9. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be contrary to law, the provision will be deemed null and void, and the remaining provisions of this Agreement will remain in effect.

11.10. Assignment. Customer shall not assign any of its rights and obligations under this Agreement without the prior written consent of ClearTax.

11.11. Governing Law and Jurisdiction. Any dispute arising out of or in connection with this Agreement shall be resolved amicably preferably within 30 days. Failing which such dispute shall be referred to a sole arbitrator mutually appointed by parties. If parties fail to agree upon a sole arbitrator, within a period of ten (10) days, each party shall appoint an arbitrator and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator. Arbitration shall be conducted in accordance with the provisions of the Indian Arbitration and Conciliation Act, 1996 and any amendments thereof. The seat and venue of arbitration shall be Bangalore, Karnataka and the language of arbitration shall be English.

Notice: Customer shall direct notices under this Agreement to the following address.
Attn: Legal Department, Defmacro Software Private Limited (aka ClearTax),
Corporate Office: 23, 24 AMR Tech Park, Block 1, First Floor,
Hosur Main Road, Hongasandra, Bangalore, Karnataka, India
PIN- 560068
Email: legal@cleartax.in, compliance@cleartax.in.

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