Artificial Intelligence (AI) Addendum

Last Updated 7/29/2026

Use of Artificial Intelligence (AI)

This Addendum modifies the Agreement between Frazer Enterprises Inc (“Company”) and Client regarding the use of Artificial Intelligence (“AI”).

Definitions

AI Tools: AI, machine learning, or large language model systems used to perform services.

AI Output: Content generated in whole or part by AI Tools.

General Use & Client Opt-Out

The Company uses AI Tools to assist in creating deliverables. All staff, contractors, and vendors must comply with the Company’s internal AI Policy. Clients may opt out of AI usage for their deliverables by providing written notice before work begins. Depending on the statement of work, opting out of AI may incur additional costs.

Disclosure

The Company will notify Client if AI is used to create a substantial portion of a deliverable (e.g., core text, primary graphics, video). Minor ancillary uses (e.g., proofreading, basic brainstorming) do not require disclosure unless requested.

Data Privacy & Security

• No Consumer Tools for Confidential Data: Client confidential information will never be entered into consumer-grade AI Tools.

• Enterprise Protections: Confidential data will only be processed using Company-approved enterprise AI Tools with non-training and strict confidentiality commitments.

• No Model Training: Client data will never be used to train AI models without express written consent.

• Likenesses: The Company will not generate depictions of real individuals (Client employees, talent, celebrities) without written permission.

Ownership & AI Limitations

• Deliverables: Current US copyright laws do not protect unedited AI output.

• Non-Exclusivity: Because AI Tools may generate similar output for different users, AI Output itself may not be unique or exclusive.

• Company IP: Company retains all rights to its internal processes, prompts, custom AI models, and unused work product.

Standard of Care & Warranties

• Human Review: Company will apply human review, fact-checking, and editing to AI-assisted deliverables.

• Warranty Disclaimer: Except for human review and compliance with applicable laws, AI Output is provided without implied warranties regarding accuracy, originality, or non-infringement prior to human edit.

• Client Responsibility: Client warrants it has rights to any input data it provides and retains final review responsibility prior to publication.

Liability & Indemnification

• Master Agreement Applies: The limitation of liability and mutual indemnification from the main Agreement govern this Addendum.

• Client Indemnity: Client agrees to indemnify Company if Client instructs Company to use AI Output after Company flagged a specific legal or copyright risk in writing.

• Exclusions: IP indemnities do not cover unedited AI output or changes made by Client after delivery.

Survival and Updates

This Addendum survives termination of the Agreement with respect to work completed under it.

The Company may update this Addendum as necessary to reflect material changes in applicable law or the AI tools it uses.