KERAMIDA Terms and Conditions
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<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.
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