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Terms of Service

Effective: 2026-05-12 Last updated: 2026-05-12

DRAFT — Not legal advice. This document is a working draft prepared for counsel review. It is not a final, executable agreement. Do not rely on these terms for any commercial purpose until counsel-approved.

These Terms of Service ("Terms") form a binding agreement between LexaAI, Inc. ("LexaAI", "we", "us", "our") and the entity or individual that accepts these Terms or accesses the Service ("Subscriber", "you", "your"). By creating an account, installing the LexaAI desktop agent or Chrome extension, or otherwise using the Service, you agree to these Terms. If you are entering these Terms on behalf of a law firm or other organization, you represent that you have authority to bind that organization.

1. The Service

LexaAI is a software-as-a-service product for legal billing. The Service consists of:

  • A desktop agent that captures, on the Subscriber's lawyer or paralegal workstations, window titles, application names, and foreground-window changes at intervals of approximately five to ten seconds;
  • A browser extension that captures URLs, page titles, and a five-hundred-character summary of foreground page content from consenting browser sessions;
  • A web application that consolidates the captured activity into proposed billing entries using artificial-intelligence assistance, and that allows lawyers to review, edit, approve, or discard those proposals before any invoice is produced; and
  • Invoice generation (LEDES and PDF) from approved entries.

2. Accounts and Eligibility

The Service is intended for use by licensed legal professionals and law firms. You represent that all information you provide on signup is accurate, and you agree to keep that information current. You are responsible for maintaining the confidentiality of your account credentials and for all activity on your account.

3. Subscription, Fees, and Taxes

Subscription fees, billing cycle, and plan tier are set out in the Order Form or signup screen that referenced these Terms. Subscriptions renew automatically until cancelled. You may cancel at any time; cancellation takes effect at the end of the then- current billing period. Fees are non-refundable except where required by law. You are responsible for all taxes, levies, and duties imposed by any taxing authority on the fees, excluding only taxes on LexaAI's net income. If LexaAI is required by law to collect such taxes, it may add them to the invoice.

4. Acceptable Use

Your use of the Service is governed by the Acceptable Use Policy, which is incorporated into these Terms. In particular, you agree:

  • To install the desktop agent and browser extension only on workstations whose user has received the written notice required by these Terms (see Section 7) and any applicable state employee-monitoring law;
  • Not to use LexaAI to monitor any individual who has not given informed, written consent;
  • Not to capture data belonging to a non-consenting third party through the Subscriber's own monitored workstations;
  • To review every AI-generated billing proposal before presenting it to a client (see Section 6); and
  • To comply with all applicable laws, rules of professional conduct, and bar ethics opinions.

5. Customer Data; Confidentiality

"Customer Data" means all data that you or your authorized users submit to or that is captured by the Service in the course of your use of it, including window titles, URLs, page content summaries, client and matter names, billing rates, and generated billing entries. As between the parties, you retain all right, title, and interest in Customer Data. You grant LexaAI a limited, non-exclusive licence to process Customer Data only as needed to provide and improve the Service, in accordance with the Privacy Policy and the Data Processing Agreement. We will treat Customer Data as confidential and will not disclose it except as permitted by these Terms or as required by law.

6. AI-Generated Billing Entries Are Proposals, Not Time Records

The Service uses artificial intelligence to generate proposed billing entries from captured activity. Each proposed entry is presented to a reviewing lawyer or paralegal in a proposed state and must be expressly approved by that reviewer before it can appear on an invoice. The Subscriber, and not LexaAI, is solely responsible for:

  • The accuracy of every billing entry presented to a client;
  • Compliance with ABA Model Rule 1.5 and equivalent state rules, including the obligation to bill the actual time worked rather than a pre-AI estimate;
  • Disclosure to clients of the use of AI in billing where such disclosure is required by ABA Model Rule 1.4, ABA Formal Opinion 512 (July 29, 2024), or any applicable state bar opinion; and
  • Compliance with the duty of supervision under ABA Model Rules 5.1 and 5.3 when relying on a third-party service such as LexaAI.

The Service is a billing-workflow tool. It is not a legal-research tool, not a legal-advice tool, and its outputs are not legal advice.

Plain English: LexaAI proposes entries. A lawyer must look at every proposal and approve it before it leaves the firm. The lawyer is responsible for the bill.

7. Written Notice to Monitored Users

Because the desktop agent and browser extension capture data from the user's workstation, several U.S. states require the user to receive written notice before monitoring begins. These include, without limitation, Connecticut (Conn. Gen. Stat. § 31-48d), Delaware (Del. Code Title 19, § 705), New York (NYLL § 52-c), and Colorado (HB 24-1058). You agree, as a condition of using the Service, to:

  • Deliver the written-notice form available in our Employee Monitoring Consent Template (or an equivalent form approved by your own counsel) to every individual on whose workstation the Service is installed;
  • Retain a record of each individual's acknowledgment; and
  • Not enable activity capture on a workstation until that acknowledgment has been received.

8. Third-Party AI Processing

To generate proposed billing entries, LexaAI sends portions of Customer Data to Anthropic, PBC ("Anthropic") through Anthropic's commercial API. As of the effective date of these Terms, Anthropic represents that inputs to and outputs from its commercial API are not used to train Anthropic's models by default, and that inputs are retained for no longer than seven (7) days for trust and safety review (zero-data-retention addenda are available on request). The current list of subprocessors is available at subprocessors.html and we will give at least thirty (30) days' notice before adding a new subprocessor whose addition would expand the scope of data processed.

We do not send Customer Data to consumer-tier AI products. The distinction matters: at least one federal court has held that sending privileged content to a consumer-tier AI tool whose privacy policy permits data reuse may waive the attorney-client privilege over that content. See United States v. Heppner, No. 25-cr-00503-JSR (S.D.N.Y. Feb. 2026).

Important. Even with commercial-tier AI and a no-training clause, sending privileged content to any third party carries risk. You are responsible for obtaining informed client consent where required by ABA Model Rule 1.6, ABA Formal Opinion 512, and your state bar.

9. Security

LexaAI takes reasonable and appropriate technical and organisational measures to protect Customer Data, including: TLS encryption in transit; per-tenant SQLite database isolation; password hashing using scrypt; a tamper-evident audit hash chain over billing actions; and access controls limiting LexaAI personnel access to Customer Data to those with a need to know. Specific controls are described in the Data Processing Agreement, Annex II.

No service is invulnerable. You acknowledge that some risk is inherent in the use of any internet-connected software, and you agree to maintain reasonable security practices on the workstations on which the Service is installed.

10. Term and Termination

These Terms begin on the date you first accept them and continue until terminated. Either party may terminate for material breach if the breach is not cured within thirty (30) days after written notice. You may terminate for convenience at any time by cancelling your subscription. On termination:

  • Your right to use the Service ceases;
  • For thirty (30) days after termination, you may export your Customer Data in CSV or JSON format. After that window, we will delete Customer Data within sixty (60) days, subject to legal retention obligations and backup-rotation timelines;
  • Sections that by their nature should survive (including Sections 5, 6, 11, 12, 13, 14, 16, 17, and 18) survive termination.

11. Warranty Disclaimer

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE". TO THE FULLEST EXTENT PERMITTED BY LAW, LEXAAI DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT, AND ANY WARRANTY THAT THE SERVICE OR ANY AI-GENERATED OUTPUT WILL BE ACCURATE, COMPLETE, OR ERROR-FREE. WITHOUT LIMITING THE FOREGOING, LEXAAI DOES NOT WARRANT THAT ANY AI-GENERATED BILLING ENTRY ACCURATELY DESCRIBES THE WORK PERFORMED.

12. Limitation of Liability

TO THE FULLEST EXTENT PERMITTED BY LAW, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, LOST DATA, OR BUSINESS INTERRUPTION, WHETHER ARISING UNDER CONTRACT, TORT, OR ANY OTHER THEORY. EACH PARTY'S TOTAL CUMULATIVE LIABILITY ARISING OUT OF OR RELATING TO THESE TERMS WILL NOT EXCEED THE GREATER OF (a) ONE HUNDRED THOUSAND U.S. DOLLARS (US $100,000) OR (b) THE FEES PAID OR PAYABLE BY SUBSCRIBER TO LEXAAI UNDER THESE TERMS IN THE TWELVE (12) MONTHS PRECEDING THE FIRST EVENT GIVING RISE TO THE CLAIM.

13. Indemnification

By Subscriber. You will defend, indemnify, and hold harmless LexaAI from third-party claims arising out of: your use of the Service in breach of these Terms; your failure to deliver the written notice required by Section 7; your presentation of an AI-generated entry to a client without proper review; or your violation of any applicable bar ethics rule.

By LexaAI. LexaAI will defend, indemnify, and hold harmless Subscriber from third-party claims alleging that the Service, as provided by LexaAI and used in accordance with these Terms, infringes a U.S. patent, copyright, or trademark. This obligation does not apply to claims arising from Customer Data, Subscriber modifications, or combinations with non-LexaAI products.

14. Modifications

LexaAI may modify these Terms from time to time. We will give Subscribers at least thirty (30) days' notice of material changes by email or in-product banner. Continued use of the Service after the effective date of the change constitutes acceptance.

15. Governing Law and Dispute Resolution

These Terms are governed by the laws of the State of Delaware, excluding its conflict-of-laws rules. Any dispute will be resolved exclusively in the state or federal courts located in Delaware, and each party consents to the personal jurisdiction of those courts.

16. Notices

Notices to LexaAI must be sent to legal@lexaai.tech. Notices to Subscriber will be sent to the email address on the account.

17. Assignment

Neither party may assign these Terms without the other's prior written consent, except that either party may assign without consent in connection with a merger, acquisition, or sale of substantially all of its assets. Any assignment in violation of this section is void.

18. General

These Terms (together with the Privacy Policy, the Acceptable Use Policy, the DPA, and any Order Form) are the entire agreement between the parties. If any provision is found unenforceable, the remaining provisions remain in effect. No waiver is effective unless in writing. Headings are for convenience only.

Contact: legal@lexaai.tech.
Document changes: initial draft, 2026-05-12.