GRADEUM TECHNOLOGIES, LLC

MASTER SERVICES AGREEMENT

Version 2.3 | April 4, 2026 | Click-Through Acceptance

This Master Services Agreement (this “Agreement”) is entered into by and between Gradeum Technologies, LLC, a Texas limited liability company (“Gradeum”), and the entity or individual accepting this Agreement (“Client,” “you,” or “your”).

Article I – Definitions

The following terms have the meanings set forth below when used in this Agreement:

“Nexus” means the Gradeum software application installed on Client’s server that indexes Client’s documents locally and returns relevant text excerpts in response to queries from the Gradeum Platform.

“Gradeum Platform” means Gradeum’s cloud-hosted orchestration service that receives queries, coordinates retrieval from the Nexus and the Standards Corpus, assembles governed prompts for the AI Reasoning Engine, validates responses against product-specific guardrails, and returns compliant answers to Authorized Users.

“AI Reasoning Engine” means the third-party artificial intelligence systems (currently Anthropic’s Claude and OpenAI’s GPT-4o) used by Gradeum to generate responses based on retrieved document excerpts and engineering standards context.

“Standards Corpus” means the shared collection of published engineering standards (USACE, ASCE, ACI, AISC, and others) maintained by Gradeum and accessible to all Client firms.

“Client Documents” means all documents, files, drawings, reports, calculations, specifications, and other materials stored on Client’s server and indexed by the Nexus.

“Excerpts” means small text passages (typically 50–150 words each) retrieved from Client Documents by the Nexus and transmitted to the Gradeum Platform during active query sessions.

“Services” means the software-as-a-service provided by Gradeum under this Agreement, including the Nexus, Gradeum Platform, access to the Standards Corpus, and the AI-assisted search, retrieval, and workflow tools described herein.

“Authorized Users” means Client’s employees and contractors who are authorized by Client to access the Services, each assigned a role within the Gradeum Platform.

“Compute Dollars” means the prepaid credits purchased by Client through the Gradeum Platform that are consumed when Authorized Users submit queries processed by the AI Reasoning Engine. Compute Dollars are the sole billing mechanism; there are no subscription fees, seat fees, or recurring charges.

Article II – Services and License

Section 2.1. Grant of License

Subject to the terms and conditions of this Agreement and purchase of applicable Compute Dollars, Gradeum grants to Client a non-exclusive, non-transferable, revocable license to access and use the Services for Client’s internal business purposes during the term of this Agreement.

Section 2.2. Restrictions

Client shall not: (a) sublicense, sell, resell, or transfer the Services to any third party; (b) modify, reverse engineer, decompile, or disassemble any component of the Services; (c) use the Services to build a competing product or service; (d) attempt to extract system prompts, guardrail logic, or AI instruction sets from the Services; or (e) circumvent any access controls, usage limits, or professional compliance workflows within the Services.

Section 2.3. Availability

Gradeum shall use commercially reasonable efforts to maintain availability of the Services. Gradeum does not guarantee uninterrupted or error-free access. Scheduled maintenance windows will be communicated with reasonable advance notice.

Section 2.4. Updates

Gradeum may update the Services from time to time, including modifications to features, user interface, and AI model providers. Gradeum will provide reasonable notice of material changes. Continued use of the Services after an update constitutes acceptance.

Article III – Data Handling and Residency

Section 3.1. Client Document Residency

The Nexus indexes Client Documents locally on Client’s server. Only Excerpts (small text passages, typically 50–150 words each) are transmitted from Client’s server to the Gradeum Platform during active query sessions. Complete documents never leave Client’s server. Gradeum has no remote access to Client’s file system.

Section 3.2. Cloud Data

Gradeum’s cloud infrastructure retains the following Client-related data:

  • Project metadata (project names, team assignments, workflow state)
  • A rolling 30-day cache of recently retrieved Excerpts for service continuity during Nexus outages
  • Responsible charge log entries (append-only, immutable)
  • Compute Dollar transaction records
  • User account information (names, email addresses, roles, license numbers for PEs)

Cached Excerpts older than 30 days are purged automatically. Client may request immediate cache deletion at any time by written notice to Gradeum.

Section 3.3. AI Provider Data Handling

Excerpts transmitted to the AI Reasoning Engine are processed under zero-data-retention API agreements with the applicable AI providers. Neither Anthropic nor OpenAI retains, trains on, or stores Client data submitted through Gradeum’s API.

Section 3.4. Inter-Client Isolation

Each Client’s data is fully isolated from every other Client’s data. No Client can access another Client’s data through the Gradeum Platform. The Nexus runs independently on each Client’s server with no shared state between installations.

Section 3.5. Client Representations Regarding Data

Client represents and warrants that it will not process through the Services any data that is classified, export-controlled under ITAR or EAR, subject to HIPAA, or otherwise legally restricted from transmission to cloud services, without a separate written agreement with Gradeum.

Article IV – Fees and Payment

Section 4.1. Compute Dollar Billing Model

The Services operate on a prepaid Compute Dollar model. User accounts and platform access are provided at no charge. Client pays only for AI-powered intelligence queries processed by the AI Reasoning Engine, which consume Compute Dollars based on computational resources used.

Section 4.2. Purchasing Compute Dollars

Client may purchase Compute Dollars through the Gradeum Platform via Stripe at any time. Compute Dollars are sold in standard denominations or custom amounts. All purchases are one-time, prepaid transactions. There are no subscriptions, recurring charges, or minimum commitments.

Section 4.3. Compute Dollar Balance

Purchased Compute Dollars are credited to Client’s account immediately upon successful payment. Compute Dollar balances do not expire. Unused Compute Dollars remain in Client’s account indefinitely.

Section 4.4. Refunds

Compute Dollar purchases are non-refundable except where required by applicable law. If Gradeum terminates this Agreement without cause, any remaining Compute Dollar balance shall be refunded to Client within thirty (30) days.

Section 4.5. Pricing Adjustments

Gradeum may adjust the per-query cost of Compute Dollar consumption upon sixty (60) days’ written notice. Pricing adjustments apply to queries submitted after the effective date of the adjustment and do not affect existing Compute Dollar balances.

Section 4.6. Payment Processing

All payment processing is handled by Stripe, Inc. Client agrees to Stripe’s terms of service as applicable to payment transactions. Gradeum does not store Client’s payment card information.

Article V – Professional Engineering Liability

Section 5.1. No Transfer of Professional Liability

No professional engineering liability transfers from Client to Gradeum under this Agreement. Client’s licensed Professional Engineers retain sole and exclusive responsible charge for all engineering work products created, reviewed, or modified using the Services.

Section 5.2. Responsible Charge Log

The Services include an immutable responsible charge log that records every instance in which a licensed PE approves content within the Gradeum Platform. This log is append-only at the database level and cannot be modified or deleted by any party, including Gradeum.

Section 5.3. AI Output Disclaimer

All AI-generated outputs are reference material only. Every output produced by the Services carries the following disclaimer:

“This response was generated by Gradeum Technologies, LLC. All outputs are AI-assisted reference only and must be reviewed by a licensed professional engineer before use in any deliverable. Gradeum does not provide engineering advice.”

Section 5.4. No Engineering Services

Gradeum provides software services, not engineering services. Gradeum does not exercise engineering judgment, does not provide engineering advice, and is not a substitute for the independent review of a licensed Professional Engineer.

Article VI – Intellectual Property

Section 6.1. Gradeum IP

Gradeum retains all right, title, and interest in and to the Services, including all software, algorithms, system prompts, guardrail architectures, user interfaces, documentation, and all intellectual property embodied therein.

Section 6.2. Client IP

Client retains all right, title, and interest in and to Client Documents, including all engineering drawings, reports, calculations, and other work product. Gradeum claims no ownership interest in Client’s engineering work product.

Section 6.3. Feedback

If Client provides suggestions, feedback, or ideas regarding the Services, Gradeum may use such feedback without restriction or obligation to Client.

Article VII – Representations and Warranties

Section 7.1. Mutual Representations

Each Party represents and warrants that: (a) it has the authority to enter into this Agreement; (b) its acceptance of this Agreement does not violate any other agreement to which it is a party; and (c) it will comply with all applicable laws in its performance of this Agreement.

Section 7.2. Gradeum Warranties

Gradeum warrants that: (a) the Services will perform materially in accordance with their documentation; (b) Gradeum will use commercially reasonable security measures to protect Client data in its possession; and (c) Gradeum will comply with applicable data protection laws.

Section 7.3. Disclaimer of Warranties

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE SERVICES ARE PROVIDED “AS IS” AND “AS AVAILABLE.” GRADEUM DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. GRADEUM DOES NOT WARRANT THAT AI-GENERATED OUTPUTS WILL BE ACCURATE, COMPLETE, OR SUITABLE FOR USE IN ENGINEERING DELIVERABLES WITHOUT INDEPENDENT PROFESSIONAL REVIEW.

Article VIII – Indemnification

Section 8.1. Gradeum Indemnification

Gradeum shall indemnify, defend, and hold harmless Client from and against any third-party claims, damages, losses, and expenses (including reasonable attorneys’ fees) arising from: (a) Gradeum’s infringement of a third party’s intellectual property rights through the Services; or (b) Gradeum’s material breach of its data handling obligations under Article III.

Section 8.2. Client Indemnification

Client shall indemnify, defend, and hold harmless Gradeum from and against any third-party claims, damages, losses, and expenses (including reasonable attorneys’ fees) arising from: (a) Client’s engineering decisions or work products; (b) Client’s violation of this Agreement; (c) Client’s misuse of AI-generated outputs; or (d) Client’s violation of applicable law.

Article IX – Limitation of Liability

Section 9.1. Cap on Liability

EXCEPT FOR OBLIGATIONS UNDER ARTICLE VIII (INDEMNIFICATION) OR BREACHES OF ARTICLE X (CONFIDENTIALITY), NEITHER PARTY’S TOTAL AGGREGATE LIABILITY UNDER THIS AGREEMENT SHALL EXCEED THE GREATER OF: (A) THE TOTAL AMOUNT PAID BY CLIENT TO GRADEUM IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM; OR (B) FIFTY THOUSAND DOLLARS ($50,000).

Section 9.2. Consequential Damages Waiver

IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, LOST REVENUE, LOSS OF DATA, OR COST OF SUBSTITUTE SERVICES, WHETHER ARISING FROM CONTRACT, TORT, OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Article X – Confidentiality

Section 10.1. Confidential Information

Each Party agrees to maintain the confidentiality of the other Party’s Confidential Information (as defined in the Mutual Non-Disclosure Agreement between the Parties, if applicable, or as would be understood by a reasonable person as confidential). Confidential Information shall not be disclosed to any third party except as required by law or with the disclosing Party’s prior written consent.

Section 10.2. No Use for AI Training

Gradeum shall not use Client Documents, Excerpts, or any Client data for the purpose of training, fine-tuning, or improving any artificial intelligence model. Client data shall not be shared with, sold to, or made accessible to any third party for AI training purposes.

Article XI – Term and Termination

Section 11.1. Term

This Agreement is effective upon Client’s acceptance and continues until terminated by either Party in accordance with this Article.

Section 11.2. Termination for Cause

Either Party may terminate this Agreement immediately upon written notice if the other Party: (a) materially breaches this Agreement and fails to cure such breach within thirty (30) days after receiving written notice; or (b) becomes insolvent, files for bankruptcy, or ceases to operate as a going concern.

Section 11.3. Termination for Convenience

Either Party may terminate this Agreement at any time upon thirty (30) days’ written notice. If Gradeum terminates without cause, any remaining Compute Dollar balance shall be refunded. If Client terminates, unused Compute Dollars are non-refundable.

Section 11.4. Effect of Termination

Upon termination or expiration of this Agreement:

  • Client’s access to the Services shall cease.
  • Client Documents remain on Client’s server, unaffected by termination.
  • Client shall uninstall the Nexus and delete all local index data within thirty (30) days of termination. Client shall certify such deletion in writing to Gradeum.
  • All cloud-side Client data (project metadata, workflow state, user accounts) shall be deleted within thirty (30) days of termination. The responsible charge log shall be exported to Client before deletion.
  • Sections 2.2, 5.1, 6.1, 6.2, 7.3, 8, 9, 10, and 12 shall survive termination.

Article XII – General Provisions

Section 12.1. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to conflict of laws principles.

Section 12.2. Dispute Resolution

Any dispute arising under or relating to this Agreement shall be resolved exclusively in the state or federal courts located in Harris County, Texas. Each Party consents to the personal jurisdiction of such courts and waives any objection to venue.

Section 12.3. Attorneys’ Fees

In any action or proceeding to enforce any provision of this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys’ fees and costs from the non-prevailing Party.

Section 12.4. Force Majeure

Neither Party shall be liable for any delay or failure to perform to the extent caused by events beyond its reasonable control, including acts of God, natural disasters, pandemic, war, terrorism, government action, or failure of third-party infrastructure.

Section 12.5. Independent Contractors

The Parties are independent contractors. Nothing in this Agreement creates an agency, partnership, joint venture, or employment relationship.

Section 12.6. Assignment

Neither Party may assign this Agreement without the prior written consent of the other Party, except in connection with a merger, acquisition, or sale of substantially all of the assigning Party’s assets.

Section 12.7. Notices

All notices under this Agreement shall be in writing and delivered by email with confirmation of receipt to the addresses associated with the Parties’ accounts, or to such other address as a Party may designate in writing.

Section 12.8. Entire Agreement

This Agreement, together with the Terms of Service, Privacy Policy, and any Mutual Non-Disclosure Agreement between the Parties, constitutes the entire agreement between the Parties with respect to the subject matter hereof.

Section 12.9. Amendment

Gradeum may amend this Agreement upon sixty (60) days’ written notice. Continued use of the Services after the effective date of an amendment constitutes acceptance. If Client does not agree to the amendment, Client may terminate this Agreement.

Section 12.10. Severability

If any provision of this Agreement is held invalid, the remaining provisions remain in full force and effect.

Section 12.11. Waiver

Failure to enforce any right or provision shall not constitute a waiver of such right or provision.

Section 12.12. Electronic Acceptance

Client’s acceptance of this Agreement by clicking “I Accept” or by accessing the Services constitutes a valid and binding agreement. No physical signature is required.

Gradeum Technologies, LLC | Master Services Agreement | v2.3 | April 4, 2026