PURCHASE ORDER TERMS AND CONDITIONS

REV. 9/24/2019

Acceptance – Agreement

Seller’s commencement of work on the goods subject to this purchase order or shipment of such goods, whichever occurs first, shall be deemed an effective mode of acceptance of this purchase order.  Any acceptance of this purchase order is limited to acceptance of the express terms contained on the face and back hereof.   Any proposal for additional or different terms or any attempt by Seller to vary in any degree any of the terms of this offer in Seller’s acceptance is hereby objected to and rejected, but such proposals shall not operate as a rejection of this offer unless such variances are in the terms of the description, quantity, price or delivery schedule of the goods, but shall be deemed a material alteration thereof, and this offer shall be deemed accepted by Seller without said additional or different terms.  If this purchase order shall be deemed an acceptance of a prior offer by Seller, such acceptance is limited to the express terms contained on the face and on the back hereof.  Additional or different terms or any attempt by Seller to vary in any degree any of the terms of this purchase order shall be deemed material and are objected to and rejected, but this purchase order shall not operate as a rejection of the Seller’s offer unless it contains variances in the terms of the description, quantity, price or delivery schedule of the goods.

Termination for Convenience of Purchaser

Purchaser reserves the right to terminate this order or any part hereof for its sole convenience.  In the event of such termination, Seller shall immediately stop all work hereunder, and shall immediately cause any of its suppliers or subcontractors to cease such work.  Seller shall be paid a reasonable termination charge consisting of a percentage of the order price reflecting the percentage of the work performed prior to the notice of termination, plus actual direct costs resulting from termination.  Seller shall not be paid for any work done after receipt of the notice of termination, nor for any costs incurred by Seller’s suppliers or subcontractors which Seller could reasonably have avoided.   Seller shall not unreasonably anticipate the requirements of this order.

Termination for Cause

Purchaser may also terminate this order or any part hereof for cause in the event of any default by the vendor, or if the vendor fails to comply with any of the terms and conditions of this offer.  Late deliveries, deliveries of products which are defective or which do not conform to this order, and failure to provide Purchaser, upon request, with adequate assurances of future performance shall all be causes allowing Purchaser to terminate this order for cause.  In the event of termination for cause, Purchaser shall not be liable to Seller for any amount, and Seller shall be liable to Purchaser for any and all damages sustained by reason of the default which gave rise to the termination.  If it should be determined that Buyer has improperly terminated this contract for default, such termination shall be deemed a termination for convenience.

Proprietary Information – Confidentiality – Advertising

Seller shall consider all information furnished by Purchaser to be confidential and shall not disclose any such information to any other person, or use such information itself for any purpose other than performing this contract, unless Seller obtains written permission from Purchaser to do so. This paragraph shall apply to drawings, specifications, or other documents prepared by Seller for Purchaser in connection with this order.  Seller shall not advertise or publish the fact that Purchaser has contracted to purchase goods from Seller, nor shall any information relating to the order be disclosed without Purchaser’s written permission.  Unless otherwise agreed in writing, no commercial, financial or technical information disclosed in any manner or at any time by Seller to Purchaser shall be deemed secret or confidential and Seller shall have no rights against Purchaser with respect thereto except such rights as may exist under patent laws.  Seller recognizes that Purchaser’s employees have no authority to accept any information in confidence.

Warranty

Seller expressly warrants that all goods or services furnished under this agreement shall conform to all specifications and appropriate standards, will be new, and will be free from defects in material or workmanship.  Seller warrants that all such goods or services will conform to any statements made on the containers or labels or advertisements for such goods, or services, and that any goods will be adequately contained, packaged, marked and labeled.   Seller warrants that all goods or services furnished hereunder will be merchantable, and will be safe and appropriate for the purpose for which goods or services of that kind are normally used.  If Seller knows or has reason to know the particular purpose for which Purchaser intends to use the goods or services, Seller warrants that such goods or services will be fit for such particular purpose.  Seller warrants that goods or services furnished will conform in all respect to samples.  Inspection, test, acceptance or use of the goods or services furnished hereunder shall not affect the Seller’s obligation under this warranty, and such warranties shall survive inspection, test, acceptance and use.  Seller’s warranty shall run to Purchaser, its successors, assigns and customers, and users of products sold by Purchaser.  Seller agrees to replace or correct defects of any goods promptly, without expense to Purchaser, when notified of such nonconformity by purchaser, provided Purchaser elects to provide Seller with the opportunity to do so.  In the event of failure of Seller to correct defects in or replace nonconforming goods or services promptly, Purchaser, after reasonable notice to Seller, may make such corrections or replace such goods and services and charge Seller for the cost incurred by Purchaser in doing so.  Seller recognizes that Purchaser’s production requirements may require immediate repairs or reworking of defective goods, without notice to the Seller.  In such event, Seller shall reimburse Purchaser for the costs, delays, or other damages which Purchaser has incurred.

Price Warranty

Seller warrants that the prices for the articles sold Purchaser hereunder are not less favorable than those currently extended to any other customer for the same or similar articles in similar quantities.  In the event Seller reduces its price for such article during the term of this order, Seller agrees to reduce the prices hereof correspondingly.  Seller warrants that prices shown on this purchase order shall be complete, and no additional charges of any type shall be added without Purchaser’s express written consent.  Such additional charges include, but are not limited to, shipping, packaging, labeling, custom duties, taxes, storage, insurance, boxing, crating.

Force Majeure

Purchaser may delay delivery or acceptance occasioned by causes beyond its control.  Seller shall hold such goods at the direction of the Purchaser and shall deliver them when the cause affecting the delay has been removed.  Purchaser shall be responsible only for Seller’s direct additional costs in holding the goods or delaying performance of this agreement at Purchaser’s request.  Seller shall also be excused if delivery is delayed by the occurrence of unforeseen and unforeseeable events, provided seller notifies Purchaser of such events as soon as they occur, and gives Purchaser its best estimate of revised delivery dates.  If any delay exceeds 30 days from the original delivery date, Buyer may cancel this order without any liability.  If Seller’s production is only partially restricted or delayed, it shall use its best efforts to accommodate the requirements of Buyer, including giving this order preference and priority over those of other customers which were placed after this order.

Patents

Seller agrees upon receipt of notification to promptly assume full responsibility for defense of any suit or proceeding which may be brought against Purchaser or its agents, customers, or other vendors for alleged patent infringements, as well as for any alleged unfair competition resulting from similarity in design, trademark or appearance of goods or services furnished hereunder, and Seller further agrees to indemnify Purchaser, its agents and customers against any and all expenses, losses, royalties, profits and damages including court costs and attorney’s fees resulting from any such suit or proceeding, including any settlement.  Purchaser may be represented by and actively participate through its own counsel in any such suit or proceeding if it so desires, and the costs of such representation shall be paid by Seller.

Insurance

In the event that Seller’s obligations hereunder require or contemplate performance of services by Seller’s employees, or persons under contract to Seller, to be done on Purchaser’s property, or property of Purchaser’s customers, the seller agrees that all such work shall be done as an independent contractor and that the persons doing such work shall not be considered employees of the Purchaser.  Seller shall maintain all necessary insurance coverages, including public liability and Workers’ Compensation insurance. Seller shall indemnify and save harmless and defend Purchaser from any and all claims or liabilities arising out of the work covered by this paragraph.

Indemnification

Seller shall defend, indemnify and hold harmless Purchaser against all damages, claims or liabilities and expenses (including attorney’s fees) arising out of or resulting in any way from any defect in the goods or services purchased hereunder, or from any act or omission of Seller, its agents, employees or subcontractors.  This indemnification shall be in addition to the warranty obligations of Seller.

Changes

Purchaser shall have the right at any time to make changes in drawings, designs, specifications, materials, packaging, time and place of delivery and method of transportation.   If any such changes cause an increase or decrease in the cost, or the time required for the performance, an equitable adjustment shall be made and this agreement shall be modified in writing accordingly.  Seller agrees to accept any such changes subject to this paragraph.

The seller is not permitted to make changes or substitutions to the requirements of the purchase document without prior written authorization from the Purchaser.

Inspection/Testing

Payment for the goods delivered hereunder shall not constitute acceptance thereof.  Purchaser shall have the right to inspect such goods and to reject any or all of said goods which are in Purchaser’s judgment defective or nonconforming.  Goods rejected and goods supplied in excess of quantities called for herein may be returned to Seller at its expense and in addition to Purchaser’s other rights, Purchaser my charge Seller all expenses of unpacking, examining, repacking and reshipping such goods.  In the event Purchaser receives goods whose defects or nonconformity is not apparent on examination, Purchaser reserves the right to require replacement, as well as payment of damages.  Nothing contained in this purchase order shall relieve in any way the Seller from the obligation of testing, inspection and quality control.

Entire Agreement

This purchase order, and any documents referred to on the face hereof, constitute the  entire agreement between the parties.

Assignments and Subcontracting

No part of this order may be assigned or subcontracted without the prior written approval of Purchaser.

Setoff

All claims for money due or to become due from Purchaser shall be subject to deduction or setoff by the Purchaser by reason of any counterclaim arising out of this or any other transaction with Seller.

Shipment

If in order to comply with Purchaser’s required delivery date it becomes necessary for Seller to ship by a more expensive way than specified in this purchase order, any increased transportation costs resulting therefrom shall be paid for by Seller unless the necessity for such rerouting or expedited handling has been caused by Purchaser. Vendor shall bear all risk of loss of all merchandise covered by this order until such merchandise has been delivered to the designated location.

Waiver

Purchaser’s failure to insist on performance of any of the terms or conditions herein or to exercise any right or privilege or Purchaser’s waiver of any breach hereunder shall not thereafter waive any other terms, conditions, or privileges, whether of the same or similar type.

Delivery

Time is of the essence of this contract, and if delivery of items or rendering of services is not completed by the time promised, Purchaser reserves the right without liability in addition to its other rights and remedies to terminate this contract by notice effective when received by Seller as to items not yet shipped or services not yet rendered and to purchase substitute items or services elsewhere and charge  Seller with any loss incurred.

Limitation on Purchaser’s Liability – Statute of Limitations

In no event shall Purchaser be liable for anticipated profits or for incidental or consequential damages.  Purchaser’s liability on any claim of any kind for any loss or damage arising out of or in connection with or resulting from this agreement or from the performance or breach thereof shall in no case exceed the price allocable to the goods or services or unit thereof which gives rise to the claim.  Purchaser shall not be liable for penalties of any description.  Any action resulting from any breach on the part of Purchaser as to the goods or services delivered hereunder must be commenced within one year after the cause of action has accrued.

Mergers, Acquisitions, Affiliations

If the Seller becomes involved with a merger, acquisition or affiliation with suppliers, the Seller is responsible for notifying the Purchaser. The Purchaser will then work with the seller to verify the continuity of the Seller’s management system and its effectiveness.

Quality Management System Requirements

Unless otherwise agreed upon, the Seller shall have a quality management system certified to ISO 9001, IATF 16949, ISO 17025 or other relevant quality management system standard, by an accredited third party certification body. For eligible organizations whose products are purchased in support of automotive products, the ultimate objective is certification to IATF 16949.

When required, applicable product approval process requirements will be conveyed to the Seller on applicable purchase orders.

The Seller is encouraged to monitor the performance of their manufacturing (and other) processes and implement actions to correct or improve, when deemed appropriate.

Statutory and Regulatory Requirements

Seller is expected to conform to the current applicable statutory and regulatory requirements in the country of receipt, the country of shipment and the purchaser identified country of destination.

Providers of Software or Products with Embedded Software

Seller is expected to implement and maintain a process for software quality assurance for its products.