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SERVICE AGREEMENT - TERMS AND CONDITIONS Page 2 of 4 SECTION 5 - PROJECT RECORDS The original project records prepared by AET will remain the property of AET. AET shall retain these original records for a period of three years following submission of the report, during which period the project records can be made available to Client at AE7"s office at reasonable times. SECTION 6- STANDARD OF CARE AET performs its services consistent with the levei of care and skill normally performed by other firms in the profession at the time of this service and in this geographic area, under similar budgetary constraints. SECTION 7 - INSURANCE AET maintains Worker's Compensation, Comprehensive General Liability, Automobile Liability and Professional Liability insurance. AET will furnish certificates of insurance to Client upon request. 7_1 - Commerciai General Liability insurance will include coverage for Products/Completed Operations (extending two (2) years after fina( acceptance of the Project by Owner or such longer period as the Contract Documents may require), Broad Form Property Damage including Completed Operations, Personal Injury, and Blanket Contractual Liability insurance applicable to AETs indemnity obligations under this Agreement. 7_2 - Automobile Liability insurance shall include coverage for all owned, hired and non-owned automobiles. 7,� - Professional Liabilfty Insurance is written on a claims-made basis and coverage will be maintained for two years after final acceptance of the Project by Owner or such longer period as the Contract Documents may require. Renewal policies during this period shall maintain the same retroactive date. 7_4 - AET can, if requested by client and permitted by AET's insurer, endorse its Commercial General Liability (including Products/Completed Operations coverage) to add Client and Owner as an "additional insured" with respect to liability arising out of the Services performed for Client or Owner by or for AET. Such insurance afforded to Client and Owner as an additional insured under AET's policies shall be primary insurance and not excess over, or contributing with, any insurance purchased or maintained by Client or Owner, � 7_5 - AET witl maintain in effect all insurance coverage required by this Agreement at its sole expense, provided such insurance is reasonably available, and with insurance carriers licensed to do business in the state in which the Project is I located and having a current A.M. Best rating of no less than A minus (A-). 7_6 Upon request, prior to commencing the Services hereunder, AET will furnish Client with Certificates of Insurance evidencing that all insurance obligations required by the Contract Documents aze in full force and in effect and will remain in effect for the duration required by the Contract Documents. 7_7 — AET reserves the right to charge Ciient for additional coverage, coverage limits or policy modification including waiver of subrogarion and other project specific requirements not known at the time of our proposal, subject to approval by I I AETs insurance providers. SECTION 8 - DELAYS If delays to AETs services are caused by Client or Owner, work of others, strikes, natural causes, weather, or other items beyond AET's control, a reasonable time extension for performance of work shall be granted, and AET shall receive an equitable fee adjustment. SECTION 9- PAYMENT. INTEREST AND BREACH 9_1 - Invoices are due on receipt. Client will inform AET of invoice questions or disagreements within 15 days of invoice date; unless so informed, invoices are deemed cottect. ln any case, Client shaq pay for services of AET within 30 days of invoice. Q,� - Client agrees to pay interest on unpaid invoice balances at a rate of 1.5% per month, or the maximum allowed by law, whichever is less, beginning 30 days after invoice date. 9�,.3 - If any invoice remains unpaid for 64 days, such non-payment shall be a material breach of tfiis agreement. As a resuli of such material breach, AET may, at its sole option, terminate all duties to the Client or other persons, without liability as well as withhold any and all data from C(ient untit such invoice payments are restored to a current status. 9_4 - Client will pay all AET collection expenses and attorney fees relating to past due fees which the Client owes under this agreement. ACS 401 (12/10) AMERICAN ENGINEERING TESTING, INC. 37