SWEETEN FINANCIAL PROTECTION
TERMS AND CONDITIONS

This policy is only available for projects posted to the platform prior to 5:00 PM EST on July 8, 2022. As a Renovator, you may benefit from the terms and conditions set forth below (the “Sweeten Financial Protection Terms”). These Terms are subject to the terms and conditions of the Sweeten Terms of Use (the “Sweeten TOU”) and, except as expressly set forth in these Sweeten Financial Protection Terms, in the event of a conflict or inconsistency between the Sweeten TOU and these Sweeten Financial Protection Terms, the Sweeten TOU will govern and control. All capitalized terms used in these Financial Protection Terms that are not defined herein will have the meaning as set forth in the Sweeten TOU. In addition, “you” and “your” refer to an individual who is a Renovator, not a Contractor.

Key Terms

“Benefit Limit” means fifty thousand U.S. dollars (US $50,000) or the contract value, whichever is less.

“Covered Personal Property” means and is limited to items of tangible personal property that are either owned by you or for which you are legally responsible, excluding Covered Renovation Property.

“Covered Property” means, collectively, Covered Personal Property and Covered Renovation Property.

“Covered Renovation Property” means and is limited to the following items of tangible property within a Renovated Property that are either owned by you or for which you are legally responsible: (a) flooring (including carpets) and walls; (b) fixtures such as lighting, shelving, curtains and blinds; (c) appliances, audio/video equipment, cookware and audio/video equipment; and (d) furnishings such as sofas, chairs, tables and beds. Covered Renovation Property excludes electrical, plumbing, heating/cooling systems, swimming pools, hot tubs, trees, lawns and gardens.

“Fair Market Value” means the price at which an item of tangible property would be sold in a voluntary transaction between a knowledgeable buyer and a knowledgeable seller, neither of whom is under any obligation to buy or sell.

“Renovated Property” means the property to be renovated for which you entered into a contract with the Responsible GC.

“Responsible GC” means the general contractor with whom you have entered into a contract, who was identified to you through your use of Sweeten’s services.

“Sweeten Financial Protection Claim Form” means Sweeten’s standard claim form that a Renovator uses to submit a request for payment by Sweeten in connection with a legitimate and verified claim in strict accordance with the terms and requirements of these Sweeten Financial Protection Terms.

Sweeten Financial Protection Benefits

Subject to the limitations, exclusions and conditions set forth herein, including without limitation those listed below, Sweeten, as conditional guarantor, will provide for the payment to you for in an amount not to exceed the Benefit Limit, solely in order to:

1. Reimburse you for any documented payment you made to the Responsible GC for a service or good you did not receive, in each case as established by clear evidence; or
2. Compensate you for any damage to Covered Property resulting from the failure of the Responsible GC to complete the project pursuant to which you entered into a contract with such Responsible GC, including the deductible you may be required to pay under your own insurance.

For the avoidance of doubt, such loss or damage shall not include any loss of use of, or loss of profit from, the Renovated Property, nor does it include any increased premium you may incur on your own insurance. IN NO EVENT SHALL SWEETEN BE LIABLE UNDER THIS SWEETEN FINANCIAL PROTECTION PROGRAM OR OTHERWISE TO YOU OR TO ANY THIRD PARTY FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES, OR DIMINUTION IN VALUE, ARISING OUT OF, RELATING TO, OR IN CONNECTION WITH ANY CLAIM SUBMITTED HEREUNDER OR FOR ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR NOT YOU WERE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT, OR OTHERWISE) UPON WHICH THE CLAIM IS BASED. THE SWEETEN FINANCIAL PROTECTION PROGRAM COVERS SOLELY THOSE LOSSES THAT ARE DESCRIBED ABOVE IN CLAUSES (1) AND (2) IN STRICT ACCORDANCE WITH THE TERMS OF THESE SWEETEN FINANCIAL PROTECTION TERMS.

Amount Payable

The amount payable by Sweeten pursuant to a legitimate claim hereunder will be the amount of the payment you made to the Responsible GC as established by clear evidence or the Fair Market Value of the damage to Covered Property, without any deductible; provided that the aggregate amount payable by Sweeten to you hereunder shall not exceed the Benefit Limit and will be payable only with respect to one single renovated property. The amount payable is not to exceed the contract value or $50,000 whichever is less. This benefit is provided to you at no cost.

Limitations and Exclusions

The Sweeten Financial Protection benefits described above include reimbursement for payments made to a contractor you hired that you was identified to you through your use of Sweeten’s services for a service or good you did not receive or compensation for damage to Covered Property only, and do not cover any losses or damages related to any the following:

• Damage to real property, including but not limited to land, plants, trees, water features, fences, roads, driveways and similar property affixed to the land. For purposes of this exclusion, “real property” does not include buildings
• Damage to or loss of personal property that is owned by a party other than the Renovator and for which the Renovator is not legally responsible
• Cash, credit cards, debit cards, charge cards and other financial products
• Jewelry, artwork, musical instruments, automobiles, watercraft, antiques, collectibles, firearms and silverware
• Losses or damages arising out of or resulting from arson or acts of nature, including but not limited to earthquakes and weather-related events such as hurricanes and tornadoes
• Losses or damages arising out of or resulting from your acts or omissions
• Losses or damages for which you are compensated by any other person or entity who is obligated to compensate you for loss or damage, including without limitation, the Responsible GC or its insurance company
• Any increase in the premium you are required to pay for your own insurance
• Damage that occurs after the renovation is substantially complete including damage caused by normal use or normal exposure to the elements

Conditions to the Sweeten Financial Protection

In order to obtain payment from Sweeten under these Sweeten Financial Protection Terms you must comply with each of the following conditions:

• You must have made actual payment to a Responsible GC who then failed to provide you with some or all of the goods or services for which you paid and/or you must have suffered damage to Covered Property through the fault of the Responsible GC.
• You must first make every reasonable best effort to work with the Responsible GC to remediate the problem before seeking compensation from Sweeten or any other person or entity who is potentially obligated to compensate you for loss or damages.
• You must first request and use your best efforts to seek compensation from any other person or entity who is potentially obligated to compensate you for loss or damages, including but not limited to your insurer, the Responsible GC, and the Responsible GC’s insurer.
• You must complete and file a Sweeten Financial Protection Claim Form, which Sweeten will email to you upon request after you have exhausted your efforts to have the Responsible GC remediate the problem or to obtain compensation from any other person or entity who is potentially obligated to compensate you for loss or damages, in each case as set forth above.
• You must provide Sweeten with proof of ownership of, or legal responsibility for, the Renovated Property and/or Covered Property in the form of deeds, receipts, photographs, videos or other customary forms of proof, certified by you and reasonably acceptable to Sweeten in its discretion.
• Upon Sweeten’s request, you must participate in a mediation process with the Responsible GC with respect to the losses or damages for which you are claiming payment.
• You must cooperate with Sweeten, including signing any requested documentation, and timely respond to any and all requests by Sweeten for additional information or documentation that Sweeten may require to process the applicable Sweeten Financial Protection Claim Form.
• Your claim must be filed within one year of contract signing
• You or your contractor must have uploaded a copy of your signed contract to the Sweeten Project Dashboard within 7 days of signing said contract.

Subrogation

As an additional separate and distinct condition to this Sweeten Financial Protection, Sweeten, as conditional guarantor, has the right to subrogate against any person or entity whatsoever who is allegedly responsible for causing the losses in question. Further, you hereby agree that, with respect to any payments made under this Sweeten Financial Protection by or on behalf of Sweeten, you will assist in and cooperate fully with Sweeten regarding any and all efforts at subrogation.

Disposition of Renovator Claims

Sweeten will complete its processing of any Sweeten Financial Protection Claim Form that you file within a reasonable period following the date you have both completed and filed a Sweeten Financial Protection Claim Form and provided Sweeten with all information and materials that you are required to provide in order to comply with the conditions set forth in “Conditions to the Sweeten Financial Protection” above or that are otherwise reasonably requested by Sweeten. The duration of Sweeten’s processing period will depend on factors that include but are not limited to: (i) the amount of payment that you are claiming; (ii) the location of the Renovated Property; (iii) the nature of the Renovated Property; and (iv) the number of Sweeten Financial Protection Claim Forms that Sweeten is then currently processing for other Renovators.

If Sweeten approves a claim described in a Sweeten Financial Protection Claim Form that you have filed (any such approved claim, an “Approved Claim”), then as a condition of receiving payment from Sweeten, you must first execute Sweeten’s then-current standard Approved Claim Payment Agreement, which includes provisions: (i) that assign to Sweeten any rights you may have to recover the amount paid by Sweeten to you with respect to an Approved Claim from the Responsible GC or from any other party that is or may be financially responsible for the Approved Claim; (ii) that require you to reasonably cooperate with Sweeten, including, at Sweeten’s request, appearing as a witness in any court or arbitral proceeding, at no cost to Sweeten, if Sweeten seeks to recover the amount paid by Sweeten to you with respect to an Approved Claim from the GC or from any other party that is or may be financially responsible for the Approved Claim; (iii) pursuant to which you release Sweeten from any further liability or obligations under these Sweeten Financial Protection Terms with respect to the Approved Claim; (iv) that require you to treat as Sweeten confidential information the terms and conditions and existence of any such Approved Claim Payment Agreement; and (v) pursuant to which you agree to refund to Sweeten any amounts erroneously paid by Sweeten to you or for which you were subsequently paid by a third party responsible for the losses and/or damages, in each case with respect to an Approved Claim.

Acknowledgment and Agreements by Renovator

You acknowledge and agree that:

• Sweeten provides Renovators with the Sweeten Financial Protection benefits described herein solely for the purpose of promoting use of the Site, Application and Services by building customer loyalty and strengthening customer confidence as to use of the Site, Application and Services.
• These Sweeten Financial Protection Terms are not intended to constitute an offer to insure, do not constitute insurance or an insurance contract and do not take the place of insurance. Furthermore, these Financial Protection Terms are not an insurance service agreement as defined in a standard ISO renter’s or homeowner’s insurance policy.
• The scope of the benefits provided under these Sweeten Financial Protection Terms is solely as set forth in the paragraph entitled “Sweeten Financial Protection Benefits” above.
• Sweeten reserves the right to independently investigate (or to have independently investigated), at Sweeten’s sole discretion and expense, the facts and circumstances of a claim described in any Sweeten Financial Protection Claim Form that you file with Sweeten, notwithstanding your provision to Sweeten of all information and materials that you are required to provide or are otherwise requested to provide Sweeten in order to comply with the conditions set forth in the paragraph entitled “Conditions to the Sweeten Financial Protection,” and regardless of the impact that Sweeten’s exercise of the rights described herein will have on the period for Sweeten to complete processing such a form.
• Because these Sweeten Financial Protection Terms constitute a conditional guarantee agreement, the theory of exoneration applies. Thus, if the Covered Property in question or the risk associated with that Covered Property changes materially, Sweeten will be entitled to exoneration with respect to any potential guaranty obligation under these Sweeten Financial Protection Terms.
• You are not (and will not be deemed) a beneficiary of any insurance policy that Sweeten may purchase related to these Sweeten Financial Protection Terms.
• At no time shall you (i) make any statements, or take any other actions whatsoever, to disparage, defame, sully or compromise the goodwill, name, brand or reputation of Sweeten (collectively, the “Company Goodwill”) or (ii) commit any other action that could likely injure, hinder or interfere with the business, business relationships or Company Goodwill of Sweeten.

Modification or Termination of Sweeten Financial Protection Terms

In addition to and without limiting Sweeten’s rights under the paragraph entitled “Termination of the Agreement” in the Sweeten TOU, Sweeten reserves the right to modify or terminate these Sweeten Financial Protection Terms, at any time, in its sole discretion, if: (i) these Sweeten Financial Protection Terms are construed to be an offer to insure or constitute insurance or an insurance contract or insurance service agreement by any governmental or regulatory authority in any jurisdiction; (ii) Sweeten is required to obtain a license or permit of any kind to continue to provide these Sweeten Financial Protection Terms in any jurisdiction; or (iii) Sweeten determines or a court or arbitrator holds that the provisions of the Sweeten Financial Protection Terms violate applicable law. If Sweeten terminates these Sweeten Financial Protection Terms in accordance with the foregoing, upon such termination all pending Sweeten Financial Protection Claim Forms that you filed prior to or as of the effective date of termination will immediately be deemed canceled and Sweeten will have no liability to you with respect to any such canceled claim forms.

In addition to and without limiting Sweeten’s rights under the paragraph entitled “Termination of the Agreement” in the Sweeten TOU, Sweeten also reserves the right to modify or terminate these Sweeten Financial Protection Terms, at any time, in its sole discretion. If Sweeten terminates these Sweeten Financial Protection Terms in accordance with the foregoing, Sweeten will continue to process all Sweeten Financial Protection Claim Forms that you filed prior to the effective date of termination, but your right to submit new claim forms will immediately terminate.

UPDATED AS OF JANUARY 10, 2023.