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KERAMIDA Terms and Conditions <br />Page 2 of 4 <br />(b) Expenses properly chargeable to the work shall include: travel, transportation and living expenses of <br />personnel when away from the office on business connected with the project; telephone and FAX charges; <br />computer use charges; shipping and production costs; reproduction work; field equipment use charges; and <br />expendable materials and supplies purchased specifically for the project. A ten percent (10%) service <br />charge of these services will be billed to the client. <br />S. SUBCONTRACTORS. When a subcontractor is used by KERAMIDA Inc. (such as laboratories, well drillers, <br />etc.), a ten percent (10%) service charge of the subcontractor's invoice will be billed to Client. <br />9. TERMINATION. This agreement may be terminated in whole or in part in writing by either party in the event <br />of substantial failure by the other party to fulfill its obligations under this agreement through no fault of the <br />terminating party, providing that no such termination may be effected unless the other party is given: (1) not <br />less than fourteen (14) calendar days written notice of intent to terminate, and (2) an opportunity for <br />consultation with the terminating party prior to termination. A final invoice will be calculated on the first or <br />fifteenth of the month (whichever comes first) following the effective date of cancellation. <br />(a) Where method of contract payment is based on time and materials, the final invoice will include all <br />services and direct expenses associated with the project up to the effective date of cancellation, plus 3 <br />percent of the billings to such date as a closeout cost. <br />(b) Where method of contract payment is "lump sum', the final invoices will be based on the percentage of <br />work completed to the effective date of cancellation, plus 3 percent of the billings to such date as a closeout <br />cost. <br />(c) Where method of contract payment is cost plus a fixed fee, the final invoice will include all costs to date <br />of termination and a pro-rata share of the fixed fee plus 3 percent of the billings to such date as a closeout <br />cost. <br />The closeout cost referred to in subparagraphs 9a, b, and c is not to be considered as a penalty, but <br />represents an allowance for demobilization of personnel and equipment and shut -down costs not available <br />on short notice. <br />10. DAMAGE AT SITE. We will not be liable for any property damage or bodily injury arising from damage to or <br />interference with surface or subterranean structures (including, without limitation, pipes, tanks, telephone <br />cables, etc.) which are not called to our attention in writing and correctly shown on the plans furnished by <br />Client in connection with work performed under this Agreement. Client recognizes that the use of exploration <br />and test equipment may unavoidably affect and/or alter the terrain and affect subsurface, vegetation, buildings, <br />structures and equipment in, at, or upon the site. Client accepts the fact that this is inherent to our work and will <br />not hold us liable or responsible for any such effect and/or alteration. <br />11. STANDARD OF CARE AND WARRANTY. Professional services provided by KERAMIDA Inc. will be <br />performed, findings obtained, and recommendations prepared in accordance with generally accepted <br />professional practices. <br />THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED <br />12. INSURANCE. KERAMIDA Inc. maintains workers' compensation and employer's liability insurance for our <br />employees as required by state laws. In addition, we maintain automobile liability insurance with a $1,000,000 <br />limit, general liability insurance with a $1,000,000 limit for each occurrence and an aggregate limit of <br />$2,000,000, and professional liability insurance for errors and omissions, as well as pollution liability coverage, <br />with a per occurrence limit of $1,000,000 and an aggregate limit of $2,000,000. KERAMIDA carries, <br />furthermore, excess umbrella liability insurance with an aggregate limit of $9,000,000, bringing the total <br />coverage to $10,000,000. A Certificate of Insurance can be supplied evidencing such coverage. We will not be <br />liable or responsible for any loss, damage, or liability beyond the amounts, limits, coverage, or conditions of <br />such insurance specified above. <br />13. SAMPLE HANDLING AND RETENTION. Generally, test samples or specimens are consumed during the <br />conduct of tests by laboratories. Client will be responsible for any sample residue disposal costs, should such <br />costs be charged by the laboratory. <br />