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<br /> rated at least"A"or better and with a numerical rating of no less than seven(7),by A.M.Best Company and which are acceptable to the
<br /> Customer.
<br /> 1.Workers'Compensation Insurance as required by Washington law and Employer's Liability Insurance with limits not
<br /> less than$1,000,000 per occurrence. If the Customer authorizes sublet work,the Pallet shall require each subcontractor to provide Workers'
<br /> Compensation Insurance for its employees,unless the Pallet covers such employees.
<br /> 2. Commercial General Liability Insurance on an occurrence basis in an amount not less than$1,000,000 per occurrence
<br /> and at least$2,000,000 in the annual aggregate,including but not limited to:premises/operations(including off-site operations),blanket
<br /> contractual liability and broad form property damage.
<br /> 3. Business Automobile Liability Insurance in an amount not less than$1,000,000 per occurrence,extending to any
<br /> automobile owned or leased by Pallet. A statement certifying that no vehicle will be used in accomplishing these Terms may be substituted
<br /> for this insurance requirement.
<br /> (b) The above liability policies shall be primary as to the Customer and shall contain a provision that the policy shall not be
<br /> canceled or materially changed without 30 days prior written notice to the Customer. No cancellation provision in any insurance policy shall
<br /> be construed in derogation of the continuous duty of the Pallet to furnish the required insurance during the term of these Terms.
<br /> (c) Upon written request by the Customer, the insurer or his/her agent will furnish,prior to or during any Work being
<br /> performed,a copy of any policy cited above,certified to be a true and complete copy of the original.
<br /> (d) Prior to Pallet performing any work on Customer property, Pallet shall provide the Customer with a Certificate of
<br /> Insurance evidencing the required insurance. Pallet shall provide the Customer with either(1)a true copy of an endorsement naming the
<br /> City of Everett as Additional Insureds on the Commercial General Liability Insurance policy and the Business Automobile Liability Insurance
<br /> policy with respect to the operations performed and services provided under these Terms and that such insurance shall apply as primary
<br /> insurance on behalf of such Additional Insureds or(2)a true copy of the blanket additional insured clause from the policies. Receipt by the
<br /> Customer of any certificate showing less coverage than required is not a waiver of the Pallet's obligations to fulfill the requirements.
<br /> (f) Pallet certifies that it is aware of the provisions of Title 51 of the Revised Code of Washington that requires every
<br /> employer to be insured against liability of Workers'Compensation,or to undertake self-insurance in accordance with the provisions of that
<br /> Title. Pallet shall comply with the provisions of Title 51 of the Revised Code of Washington before commencing the performance of the
<br /> Work. Pallet shall provide the Customer with evidence of Workers'Compensation Insurance(or evidence of qualified self-insurance)before
<br /> any Work is commenced.
<br /> (g) In case of the breach of any provision of this Section 9,and after providing no less than ten(10)business day's prior
<br /> written notice to Pallet of such breach and providing Pallet with an opportunity to cure,the Customer may,at its option and with no obligation
<br /> to do so,provide and maintain at the expense of Pallet,such types of insurance in the name of the Pallet,and with such insurers, as the
<br /> Customer may deem proper,and may deduct the cost of providing and maintaining such insurance from any sums which may be found or
<br /> become due to Pallet under this Agreement or may demand Pallet to promptly reimburse the Customer for such cost.
<br /> 10. No Warranties;LIMITATIONS OF LIABILITY.
<br /> EXCEPT AS EXPRESSLY SET FORTH IN THESE TERMS AND IN THE LIMITED WARRANTY, PALLET HEREBY
<br /> DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES,WHETHER WRI1 IEN,ORAL,EXPRESS,IMPLIED,STATUTORY,
<br /> OR OTHERWISE, EITHER IN FACT OR BY OPERATION OF LAW, CONCERNING ANY PRODUCT OR ANY SERVICES
<br /> PROVIDED BY PALLET AND ANY OTHER TECHNICAL INFORMATION,TECHNIQUES,MATERIALS,METHODS,PRODUCTS,
<br /> PROCESSES, OR PRACTICES AT ANY TIME MADE AVAILABLE BY PALLET, INCLUDING, WITHOUT LIMITATION ALL
<br /> IMPLIED WARRANTIES OF MERCHANTABILITY,QUALITY,FITNESS FOR A PARTICULAR PURPOSE,AND WARRANTIES
<br /> ARISING BY LAW OR FROM A COURSE OF DEALING,COURSE OF PERFORMANCE,USAGE,OR TRADE PRACTICE.TO THE
<br /> FULLEST EXTENT PERMITTED BY LAW, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY OR ANY OTHER
<br /> PERSON FOR ANY INJURY TO OR LOSS OF GOODWILL,BUSINESS,OR OPPORTUNITIES(REGARDLESS OF HOW THESE
<br /> ARE CLASSIFIED AS DAMAGES), OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL,
<br /> PUNITIVE, OR ENHANCED DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING
<br /> NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE (INCLUDING THE ENTRY INTO,
<br /> PERFORMANCE, OR BREACH OF THESE TERMS), REGARDLESS OF WHETHER SUCH LOSS OR DAMAGE WAS
<br /> FORESEEABLE OR THE PARTY AGAINST WHOM SUCH LIABILITY IS CLAIMED HAS BEEN ADVISED OF THE POSSIBILITY
<br /> OF SUCH LOSS OR DAMAGE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS
<br /> ESSENTIAL PURPOSE.IN NO EVENT SHALL PALLET'S AGGREGATE LIABILITY EXCEED THE AMOUNT ACTUALLY PAID
<br /> BY OR DUE FROM CUSTOMER UNDER THE APPLICABLE SOW(WHICHEVER IS LESS)IN THE TWELVE(12)MONTH PERIOD
<br /> IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO SUCH CLAIM.
<br /> 11. Miscellaneous.
<br /> Pallet SPC—Master Product and Services Agreement 4 of 10
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