Service Agreement

ATTENTION: Please read the TERMS OF SERVICE AGREEMENT below BEFORE SIGNING.

This Agreement including the Terms Of Service Agreement will govern all the work covered by this work order to be done by KKMI and the terms thereof. By SIGNING THIS SERVICE AGREEMENT YOU ACKNOWLEDGE THAT YOU HAVE READ AND FULLY UNDERSTAND EACH PARAGRAPH CONTAINED IN THIS AGREEMENT, INCLUDING THE TERMS OF SERVICE AGREEMENT. YOU AGREE TO ALL OF THESE PROVISIONS AND ACKNOWLEDGE RECEIVING A COPY OF THE AGREEMENT AND KKMI's SERVICE RATES. Further, you agree to dress warmly, eat all of your vegetables and abide by the provisions contained in this Agreement. This is the entire Agreement and our terrific crew may not modify this Agreement.

TERMS OF SERVICE AGREEMENT Please read carefully, thank you!

BINDING AUTHORITY: I confirm that I have the Owner's and Vessel's authority (collectively "Customer") to bind Customer with KKMI for the repairs, fabrication and modifications specified in this Service Agreement and Work Orders.

COSTS OF LABOR AND MATERIAL: All prices, time, materials and labor listed on Work Order are estimates only and subject to variance. The Customer has reviewed and accepts all labor, material and storage charges currently in effect at KKMI. All invoicing will be done on a time and material basis unless otherwise stated as a "Bid" on the Work Orders.

ABANDONED PARTS: Customer understands and agrees that in the course of KKMI performing the authorized work, it may be necessary to remove parts that will not be reinstalled on the Vessel. Customer agrees to specify in writing, prior to work beginning, if the parts are to be returned to Customer. If requested parts are not picked up within 30 days from invoice date, Customer agrees that the parts are abandoned and will become the property of KKMI. Customer agrees to reimburse KKMI for any disposal costs.

TERMS OF PAYMENT: Customer agrees to pay for all services, parts, labor and materials described in the Work Orders and for all other incidental services, parts, supplies, and materials which are, in the opinion of KKMI, reasonably necessary to perform the work specified by the Customer and in the Service Agreement and the Work Orders. All charges are to be paid for upon the work's completion before release of the Vessel. Title to all consumable supplies used in connection with any repairs or modifications to the Vessel is deemed to pass to owner immediately prior to usage.

APPROVAL OF ADDITIONAL WORK: Customer agrees to pay for any additional work that they approve verbally, in writing or by email, which was not included in the initial Service Agreement, or Work Orders.

LATE FEES: Customer agrees to pay a late fee upon any invoiced amount that remains unpaid more than 15 days after the invoiced date. Late Fees shall be assessed at 0.83% for each 30-day period, or part thereof, upon any balance remaining unpaid.

VESSEL OPERATION: Customer authorizes KKMI to operate the Vessel on waterways to test, inspect, pick up and/or deliver the Vessel and acknowledges that any such operation shall be at the Customer's risk. Customer accepts responsibility for the seaworthiness of the Vessel and agrees to inform KKMI of any operational deficiencies before operation.

WORK PERFORMED BY CUSTOMER AT KKMI REQUIRES KKMI's CONSENT: No person other than KKMI personnel shall perform work on vessels at KKMI facilities without the prior consent of KKMI. Customer and/or their contractors, guests, and crew, must check in at KKMI's office upon arrival and must follow all yard rules, safety and environmental regulations. Customer agrees to defend, indemnify and hold harmless KKMI, its agents, officers, directors, shareholders and employees from liability or any property damage caused by work performed, and/or materials used by Customer and/or their contractors, guests and crew at KKMI.

WARRANTIES: KKMI will warranty any repair or replacement work that proves to be defective under normal service conditions for a period of 90 days provided that KKMI receives written notice of the defect within 90 days after departure of the Vessel from KKMI facilities. KKMI will perform the repairs at its facilities. KKMI does not warrant the condition of any portion of the Vessel or its equipment in areas that are merely inspected, since many portions of the Vessel may have latent, hidden or undetectable corrosion, fatigue or defects.

LIMITATION OF DAMAGES: Customer understands and accepts that KKMI will not be responsible for any type of damages in excess of the Insured Value of the Vessel.

INSURANCE: Customer agrees that they, and not KKMI, are responsible for obtaining their own liability and property insurance against loss or damage in the event of fire, theft, accident, vandalism or any other cause beyond KKMI's control. Customer represents that it has such insurance in place. Customer agrees to defend, indemnify and hold harmless KKMI, its agents, officers, directors, shareholders and employees from liability or any property damage caused by work performed, and/or materials used by Customer and/or their contractors, guests and crew at KKMI.

INDEMNITY AND HOLD HARMLESS: Customer agrees to indemnify, hold harmless and defend KKMI, its officers, agents, directors, shareholders and employees against any loss or liability which arises from any incidents or occurrences relating in any way to the Vessel unless the loss or liability arises from the sole negligence of KKMI.

LIMITATION OF LIABILITY: Customer agrees that KKMI's liability for defective workmanship or material shall be limited to the repair or replacement of the work described in the Work Order. KKMI shall be liable only for damages proved in court to have been caused by KKMI's sole negligence. KKMI will not be liable for any
consequential damages, including but not limited to lost revenue, wages, salvage or towing expense, delay or loss of use. No officer, manager, employee, servant or agent of KKMI has the authority to make any representation, promise or warranty that modifies this provision.

STORAGE CHARGES: Unless other arrangements have been made with a KKMI manager, storage charges are due at the daily rate then in effect at KKMI for each day that the Vessel remains at KKMI facilities after notification is given to Customer that the Vessel is ready to be picked up. Notification may be given to the Customer either verbally or in an email or in writing via U.S. Mail and/or via fax to the address and/or fax number given by Customer on the Work Order.

LIEN RIGHT: Customer agrees that KKMI may withhold possession of the Vessel as security for all unpaid charges for work performed by KKMI. Customer agrees that KKMI in that event will have a lien right on Customer's Vessel. Customer will be liable for storage charges continuing until the invoice is paid in full.

ATTORNEYS FEES AND COSTS: The Customer agrees to pay KKMI's reasonable attorneys' fees and costs if KKMI institutes any type of legal proceeding to enforce any of its rights or provisions in this Agreement.

After boat has arrived and has been hauled (if applicable), your KKMI Project Manager will contact you to finalize the details of your work order prior to beginning work. Sales tax will be applied to all parts, materials and fabrication labor. A 3% environmental fee will be applied to all applicable labor and materials.

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