Information for suppliers

APEX TOOL GROUP – EMEA PURCHASE ORDER TERMS AND CONDITIONS

As used her­ein, “Sel­ler” means sel­ler and its sub­si­dia­ries and af­fi­lia­tes and “Buyer” means, as ap­pli­ca­ble, Apex Tool Group GmbH, Wel­ler Tools GmbH, Me­tro­nix Me­ß­ge­rä­te und Elek­tro­nik GmbH, Apex Tool Group SAS, Apex Tool Group Hungária Kft., Apex Tool S.r.l., Apex Tool Group B.V., Apex Tool Group AB, Apex Tool Swit­zer­land Sàrl, Apex Tool Group (UK Ope­ra­ti­ons) Li­mi­ted and any other ap­pli­ca­ble sub­si­dia­ries and af­fi­lia­tes ope­ra­ting in the Eu­rope­an Union from time to time. Sel­ler here­by agrees as fol­lows:

1. Ge­ne­ral Terms

Only the terms and con­di­ti­ons set forth her­ein below apply to con­tracts based on or­ders pla­ced by Sel­ler or Buyer. Op­po­sing con­di­ti­ons and any con­di­ti­ons de­via­ting from these terms and con­di­ti­ons of Buyer, in par­ti­cu­lar Sel­ler’s terms of de­li­ve­ry, shall not apply un­less ex­pli­ci­t­ly agreed to by Buyer in wri­ting or in text form. The terms and con­di­ti­ons set forth her­ein below shall also apply, if Buyer ac­cepts Sel­ler’s de­li­ve­ry wit­hout re­ser­va­ti­on alt­hough it has know­ledge of Sel­ler’s op­po­sing con­di­ti­ons or of con­di­ti­ons de­via­ting from those of Buyer. This also ap­plies, if Sel­ler sta­tes that Sel­ler only wis­hes to ef­fect de­li­ve­ry in ac­cor­dance with Sel­ler’s con­di­ti­ons.

There are no other agree­ments, re­pre­sen­ta­ti­ons or war­ran­ties other than those ex­press­ly pro­vi­ded for in the order or in these terms and con­di­ti­ons. Any ad­di­tio­nal and/or dif­fe­rent terms and con­di­ti­ons con­tai­ned in any do­cu­ment or wri­ting sent to Buyer at any time are here­by ex­press­ly ob­jec­ted to and re­jec­ted. Ex­cept as other­wi­se agreed to in wri­ting or in text form by Sel­ler and Buyer, and work com­men­ced by Sel­ler shall be ex­clu­si­ve­ly go­ver­ned by the terms and con­di­ti­ons set forth her­ein.

2. Ac­cep­tan­ce of Purcha­se Order.

(a) The Terms and Con­di­ti­ons con­tai­ned her­ein shall go­vern the purcha­se of pro­ducts and ser­vices (collec­tive­ly, the “Pro­ducts”) pur­su­ant to a purcha­se order is­su­ed to Sel­ler by Buyer (“Order”), sub­ject to any ad­di­tio­nal terms and con­di­ti­ons ap­pearing on the face of the Order. In the event there is a con­flict bet­ween the terms and con­di­ti­ons ap­pearing on the face of an Order and the terms and con­di­ti­ons her­ein, the terms and con­di­ti­ons on the face of an Order shall pr­e­vail.

(b) If the Order is con­stru­ed as an offer by Buyer, Sel­ler’s ac­cep­tan­ce is strict­ly li­mi­ted to the terms of this offer. Any dif­fe­rent or ad­di­tio­nal terms in Sel­ler’s ac­cep­tan­ce are valid only upon ex­press as­sent given by Buyer in wri­ting or in text form. If the Order is con­stru­ed as Buyer’s ac­cep­tan­ce of Sel­ler’s offer, this ac­cep­tan­ce is ex­press­ly con­di­tio­nal on Buyer’s ad­di­tio­nal as­sent in wri­ting or in text form to any terms ad­di­tio­nal to or dif­fe­rent from Sel­ler’s offer con­tai­ned her­ein. Ac­cep­tan­ce of the Pro­ducts de­li­ver­ed under the Order shall not consti­tu­te ac­cep­tan­ce of any terms ad­di­tio­nal to or dif­fe­rent from Sel­ler’s offer con­tai­ned her­ein or on the face of an Order un­less Buyer’s ad­di­tio­nal as­sent has been pro­vi­ded in wri­ting or in text form.

3. Pri­ces and Pa­y­ment Terms.

(a) Sel­ler’s price shall be as sta­ted in the Order. If the price is not sta­ted in the Order, the price will be Sel­ler’s lowest mar­ket price.

(b) The purcha­se price for each Pro­duct shall be all-in­clu­si­ve and re­pres­ents the sole and ex­clu­si­ve con­side­ra­ti­on to Sel­ler hereun­der for the Pro­duct, ex­cept for taxes that are cal­cu­la­ted di­rect­ly on the purcha­se price pa­y­ments made by Buyer hereun­der and which Sel­ler is le­gal­ly re­qui­red to collect and pay over to tax au­tho­ri­ties. The taxes for which Buyer is re­spon­si­ble shall in­clu­de sales and use taxes, but shall ex­clu­de, wit­hout li­mi­ta­ti­on, Sel­ler’s fran­chise or busi­ness taxes, taxes based on Sel­ler’s in­co­me or gross re­ceipts and taxes for which Buyer is ex­empt by law as shown by a valid tax ex­emp­ti­on cer­ti­fi­ca­te, when such a cer­ti­fi­ca­te is re­qui­red.

(c) Terms of pa­y­ment are net ni­ne­ty (90) days, eit­her after re­ceipt of Sel­ler’s valid in­voice or after re­ceipt of the Pro­ducts, whiche­ver is later. At Buyer’s op­ti­on, all in­voi­ced amounts shall be sub­ject to a two per­cent (2%) early pa­y­ment dis­count for all pa­y­ments re­mit­ted by Buyer within twen­ty (20) days of Buyer’s re­ceipt of such in­voice.

(d) Buyer may with­hold and apply any mo­neys pa­ya­ble by it under the Order to the pa­y­ment of any ob­li­ga­ti­ons of Sel­ler to any sub­con­trac­tors or sup­pliers.

4. Title, De­li­ve­ry and Risk of Loss.

(a) Un­less other­wi­se agreed by the par­ties, all Pro­ducts are to be ship­ped DDP (De­sti­na­ti­on as sti­pu­la­ted by the Order) (In­coterms 2010). Sel­ler will com­ply with all coun­try of ori­gin mar­king in­st­ruc­tions and all in­st­ruc­tions for ex­ports to Buyer. Title to the Pro­ducts shall pass upon Buyer’s re­ceipt at the de­sti­na­ti­on.

(b) All ship­ments must be made in ac­cor­dance with ship­ping and rou­ting in­st­ruc­tions as spe­ci­fied by Buyer, but in any event, in com­pli­an­ce with all ap­pli­ca­ble go­vern­ment or freight com­pany re­gu­la­ti­ons and Sel­ler shall as­su­me full re­spon­si­bi­li­ty for failu­re to com­ply with such in­st­ruc­tions, in­clu­ding lia­bi­li­ty for a re­lease of ha­zar­dous ma­te­ri­als into the en­vi­ron­ment prior to Buyer’s re­ceipt of Pro­ducts. Sel­ler shall be held lia­ble for any loss or da­ma­ge prior to pas­sa­ge of title to Buyer.

(c) Each de­li­ve­ry of Pro­ducts to Buyer shall in­clu­de a packing list, which con­tains at least the fol­lo­wing items: i) Order num­ber; ii) Sel­ler’s part num­ber; iii) Buyer’s part num­ber; iv) quan­ti­ty ship­ped; and v) date of ship­ment.

(d) Sel­ler shall give Buyer writ­ten no­ti­ce prompt­ly upon de­ter­mi­ning that any or all Pro­ducts under an Order will not ar­ri­ve by the re­qui­red de­li­ve­ry date and will take all rea­son­a­ble steps at Sel­ler’s own cost to ex­pe­di­te de­li­ve­ry. If only a por­ti­on of the Pro­ducts is availa­ble for ship­ment to meet the re­qui­red de­li­ve­ry date, Sel­ler shall ship the availa­ble Pro­ducts un­less di­rec­ted by Buyer to re­sche­du­le ship­ment.

(e) If Sel­ler and Buyer have agreed that time is of the es­sence and Sel­ler fails to de­li­ver on time, Buyer may purcha­se re­pla­ce­ment pro­ducts el­se­whe­re and Sel­ler will be lia­ble for costs and da­ma­ges that Buyer in­curs.

(f) De­li­ve­ry dates and de­li­ve­ry pe­ri­ods as set forth in the Order are bin­ding. Com­pli­an­ce with the de­li­ve­ry date or de­li­ve­ry pe­ri­od is de­ter­mi­ned by the date of re­ceipt of the Pro­ducts by Buyer or at any other lo­ca­ti­on agreed bet­ween Buyer and Sel­ler in wri­ting or in text form.
If de­li­ve­ry of the Pro­ducts is late for rea­sons such as mo­bi­li­za­ti­on, war, in­ter­ac­tion, strike, lock­out or the oc­cur­rence of other un­fo­re­see­a­ble, si­mi­lar­ly se­rious im­pe­di­ments as re­gards com­pli­an­ce with the de­li­ve­ry pe­ri­od and if such im­pe­di­ments are beyond Sel­ler’s con­t­rol, the de­li­ve­ry pe­ri­od shall be ex­ten­ded ap­pro­pria­te­ly. The Sel­ler will im­me­dia­te­ly in­form Buyer on any such events.

(g) In case of late de­li­ve­ry, Buyer may – pro­vi­ded that Buyer can credi­b­ly show that it has in­cur­red da­ma­ge as a re­sult – de­mand com­pen­sa­ti­on for each com­ple­te week of delay in an amount of 0.3% per week of the price of that part of de­li­ve­ry which could not be put to per­ti­nent use due to the delay but not ex­cee­ding 3% of the price the­reof. Buyer’s fur­ther rights on ac­count of late de­li­ve­ry shall re­main un­af­fec­ted.
If Buyer and Sel­ler agree on a con­trac­tu­al pe­nal­ty on top of this lump-sum, Buyer’s right to re­scind the con­tract and/or as­sert fur­ther claims shall also re­main un­af­fec­ted. Buyer may de­mand the con­trac­tu­al pe­nal­ty up to the time of the last pa­y­ment, even if it ac­cep­ted the de­li­ve­ry or ser­vice per­for­med by Sel­ler wit­hout any spe­cial re­ser­va­ti­on.

(h) If it be­co­mes ap­pa­rent that Sel­ler will be un­a­ble to meet the de­li­ve­ry dates, Sel­ler shall con­ta­ct Buyer wit­hout delay. The rights to which Buyer is en­tit­led on ac­count of late de­li­ve­ry under the terms of the Order, these Terms and Con­di­ti­ons or by sta­tu­te shall not be restric­ted even if Sel­ler con­ta­cts Buyer in ac­cor­dance with this afo­re­men­tio­ned ob­li­ga­ti­on.

(i) Buyer re­ser­ves the right to sus­pend ship­ment by Sel­ler of all or part of the Order in the event of strikes, lock­outs, or other labor dis­tur­ban­ces, or other con­tin­gen­ci­es beyond Buyer’s con­t­rol.

(k) Buyer is a SLVS wai­ver custo­mer (SLVS-Ver­zichts­kun­de) and the trans­port risk is as­su­med by and in­su­red by Sel­ler.

5. In­spec­tion.

As soon as any de­fects in the de­li­ve­ry of ma­te­ri­al, work­man­ship and Pro­ducts are es­ta­blis­hed in ac­cor­dance with the cir­cums­tan­ces pr­e­vai­ling du­ring the nor­mal cour­se of busi­ness, Buyer shall no­ti­fy Sel­ler the­reof im­me­dia­te­ly in wri­ting or in text form, un­less other­wi­se agreed, no­tab­ly in qua­li­ty as­suran­ce agree­ments in which Buyer is re­leased from its ob­li­ga­ti­on to ex­ami­ne the goods and give no­ti­fi­ca­ti­on of de­fects as pro­vi­ded for in Sect. 377 of the Ger­man Com­mer­ci­al Code (HGB). No­ti­fi­ca­ti­on of de­fects is de­emed to be in time, if it is re­cei­ved by Sel­ler within a pe­ri­od of five working days after Buyer has gai­ned know­ledge of the re­spec­ti­ve de­fect. To this ex­tent, Sel­ler wai­ves the de­fen­se of de­layed no­ti­fi­ca­ti­on of de­fects. Buyer may re­qui­re Sel­ler to re­pair, re­place or reim­bur­se the purcha­se price of re­jec­ted ma­te­ri­als or Buyer may ac­cept any Pro­ducts and, upon dis­co­ve­ry of non­con­for­mance, may re­ject or keep any such Pro­ducts not so con­for­ming. Cost of re­pair, re­pla­ce­ment, in­spec­tion, trans­por­ta­ti­on, re­pa­cka­ging and/or re-in­spec­tion by Buyer shall be at Sel­ler’s ex­pen­se. Buyer’s ac­cep­tan­ce of Pro­ducts shall not be de­emed to di­mi­nish Buyer’s rights or be final or bin­ding on Buyer if la­tent de­fects, fraud or mis­re­pre­sen­ta­ti­on on the part of Sel­ler exists.

Buyer may elect to have in­spec­tion and tes­ting made on the pre­mi­ses of Sel­ler or Sel­ler’s lower-tier sub­con­trac­tors. In such event, Sel­ler shall fur­nish wit­hout ad­di­tio­nal char­ge all rea­son­a­ble fa­ci­li­ties, in­for­ma­ti­on and as­sis­tan­ce ne­cess­a­ry for the safe and con­ve­ni­ent in­spec­tion and test re­qui­red by the in­spec­tors in the per­for­mance of their duty.

6. War­ran­ty.

(a) Sel­ler here­by war­rants to Buyer that, for a pe­ri­od of three (3) years fol­lo­wing Buyer’s ta­king de­li­ve­ry of the Pro­ducts hereun­der (the “War­ran­ty Pe­ri­od”), such Pro­duct shall: i) be fit for its in­ten­ded pur­po­se and be of mer­chan­ta­ble qua­li­ty; ii) be free from de­fects in ma­te­ri­als, work­man­ship, and de­sign; iii) con­form strict­ly to the per­for­mance, func­tiona­li­ty and other spe­ci­fi­ca­ti­ons and de­scrip­ti­ons set forth in Sel­ler’s ca­ta­logs, pro­duct bro­chu­res, or other re­pre­sen­ta­ti­ons, de­pic­tions, samp­les or mo­dels; and iv) con­form strict­ly to all spe­ci­fi­ca­ti­ons, dra­wings and de­scrip­ti­ons re­fe­ren­ced or set forth in the Order (collec­tive­ly, the “Per­for­mance War­ran­ty”).

(b) The Ex­piry of the Per­for­mance War­ran­ty shall be sus­pen­ded with re­spect to any claim made by Buyer prior to such ter­mi­na­ti­on or ex­pi­ra­ti­on.

(c) Sel­ler agrees that Buyer may as­sign any claims against Sel­ler under such Per­for­mance War­ran­ty against Sel­ler to its custo­mers so that Buyer’s custo­mers may en­force such Per­for­mance War­ran­ty against Sel­ler on, in and for custo­mer’s be­half, name or be­ne­fit.

(d) Du­ring the War­ran­ty Pe­ri­od, Sel­ler shall, at no ad­di­tio­nal cost to Buyer, re­pair or re­place at Buyer’s op­ti­on any Pro­duct that fails to con­form to its Per­for­mance War­ran­ty in any re­spect what­so­e­ver (each, a “De­fec­ti­ve Pro­duct”) within a rea­son­a­ble time set by Buyer.

If Buyer’s op­ti­on is to re­place such Pro­duct, the re­pla­ce­ment Pro­duct must con­form to the Per­for­mance War­ran­ty in all re­spects (“Con­for­ming Pro­duct(s)”). Re­pla­ce­ment Pro­ducts must be new pro­duct if the De­fec­ti­ve Pro­duct was sup­po­sed to be new pro­duct; no re­pai­red or re­ma­nu­fac­tu­red pro­duct will be ac­cep­ted. Sel­ler shall re­place, at Buyer’s op­ti­on, each De­fec­ti­ve Pro­duct and re-de­li­ver a Con­for­ming Pro­duct to Buyer as soon as pos­si­ble, and in all events within a rea­son­a­ble pe­ri­od of time set by Buyer after no­ti­ce that a Pro­duct is a De­fec­ti­ve Pro­duct.

All re­turn ship­ments of De­fec­ti­ve Pro­ducts to Sel­ler shall be at Sel­ler’s sole cost, risk, and ex­pen­se. Sel­ler shall bear all ship­ping costs for war­ran­ty re­turns and re­pla­ce­ments. Sel­ler shall bear all rea­son­a­ble di­rect and in­di­rect costs and ex­pen­ses in­cur­red by Buyer to re­place a De­fec­ti­ve Pro­duct with a Con­for­ming Pro­duct, in­clu­ding, but not li­mi­ted to, labor and tra­vel ex­pen­ses. Buyer has the right to re­turn Pro­duct on a per oc­cur­rence basis. No mi­ni­mum quan­ti­ty shall be re­qui­red for re­turns.

(e) If it is ob­vious that the de­fect can­not be re­me­di­ed within a rea­son­a­ble pe­ri­od of time eit­her by re­pair or re­pla­ce­ment, Buyer has the right to re­du­ce the purcha­se price or to re­scind the con­tract with im­me­dia­te ef­fect. In the lat­ter case, Buyer shall be en­tit­led to an im­me­dia­te and full re­fund of the purcha­se price paid to Sel­ler for such De­fec­ti­ve Pro­duct against re­tur­ning the De­fec­ti­ve Pro­duct. In any case, Buyer has the right to re­du­ce the purcha­se price or to re­scind the con­tract after ex­pi­ra­ti­on to no avail of a rea­son­a­ble time set by Buyer. If Buyer elects to re­scind the con­tract, nothing her­ein shall limit all ad­di­tio­nal rights and re­me­di­es availa­ble to it under law or ex­cu­se the Sel­ler from any an­cil­la­ry ob­li­ga­ti­ons set forth her­ein.
No pe­ri­od of rea­son­a­ble time has eit­her to be set by Buyer, if the Sel­ler has se­rious­ly and de­fi­ni­tive­ly re­fu­sed re­pair or re­pla­ce­ment, if such re­pair or re­pla­ce­ment is ab­or­ti­ve or the set­ting of a date for re­pair or re­pla­ce­ment is not rea­son­ab­ly ac­cep­ta­ble to Buyer. Any re­pair or re­pla­ce­ment is de­emed to be ab­or­ti­ve after the se­cond un­suc­cess­ful at­tempt, un­less so­me­thing can be de­ri­ved from the na­tu­re of the pro­duct or the de­fect or the con­duct of the Sel­ler.
Nor does a rea­son­a­ble time for re­pair or re­pla­ce­ment have to be set if, on ac­count of a de­fect clai­med by a con­su­mer which de­fect al­re­ady existed be­fo­re the Pro­duct was de­li­ver­ed to Buyer, Buyer had to take the Pro­duct back as a re­sult of the de­fec­ti­ve na­tu­re eit­her from Buyer’s custo­mer in the de­li­ve­ry chain or di­rect­ly from the con­su­mer, or if the con­su­mer re­du­ced the purcha­se price.
Buyer’s right to claim da­ma­ges re­mains un­af­fec­ted.

(f) Sel­ler shall be re­spon­si­ble for all di­rect, in­di­rect and con­se­quen­ti­al da­ma­ges in­cur­red by Buyer re­sul­ting from the pro­vi­si­on of a De­fec­ti­ve Pro­duct or from the late de­li­ve­ry of a Pro­duct.

(g) After the end of the War­ran­ty Pe­ri­od, Sel­ler shall con­ti­nue to offer Pro­duct sup­port to re­pair and/or pro­vi­de ser­vice parts for a pe­ri­od of ten (10) years be­gin­ning with the date the Pro­duct is dis­con­ti­nu­ed or no lon­ger of­fe­red for sale by Sel­ler. In the event that Sel­ler can­not, or choo­ses not to, offer such Pro­duct sup­port, then Sel­ler shall pro­vi­de one (1) year’s no­ti­ce be­fo­re dis­con­ti­nuing such Pro­duct sup­port. Fur­ther­mo­re, Sel­ler shall pro­vi­de all of the ne­cess­a­ry tech­ni­cal dra­wings and do­cu­men­ta­ti­on, as well as a royal­ty-free, non-re­vo­ca­ble li­cen­se to all ap­pli­ca­ble in­tel­lec­tu­al pro­per­ty re­qui­red for the con­ti­nu­ed re­pair or ma­nu­fac­tu­ring of Pro­ducts by Buyer or Buyer’s de­si­gnee.

7. Com­pli­an­ce with Laws.

(a) Sel­ler re­pres­ents, war­rants and co­ven­ants that all of the Pro­ducts, mer­chan­di­se, and ma­te­ri­als de­li­ver­ed and/or ser­vices ren­de­red hereun­der will be, and will have been pro­du­ced and/or pro­vi­ded, in com­pli­an­ce with all ap­pli­ca­ble laws, rules, re­gu­la­ti­ons, or­ders, trea­ties and other re­qui­re­ments of re­spec­ti­ve Eu­rope­an Union and/or Ger­man fe­de­ral, na­tio­nal, state, pro­vin­ci­al and local/mu­nici­pal go­vern­ments and agen­ci­es the­reof, and that Sel­ler and Sel­ler’s busi­ness do and will com­ply with all ap­pli­ca­ble laws, rules, re­gu­la­ti­ons, or­ders, trea­ties and other re­qui­re­ments of Eu­rope­an Union and/or Ger­man fe­de­ral, na­tio­nal, state, pro­vin­ci­al and local/mu­nici­pal go­vern­ments and agen­ci­es the­reof. Where ap­pli­ca­ble, Sel­ler here­by agrees to com­ply with the re­co­gni­zed Rules of Tech­no­lo­gy and, in par­ti­cu­lar, with the Spe­ci­fi­ca­ti­ons and Re­gu­la­ti­ons pre­scri­bed by the go­vern­ment, su­per­vi­so­ry au­tho­ri­ties, pro­fes­si­on as­so­cia­ti­ons and the VDE (As­so­cia­ti­on of Ger­man Elec­tro­tech­ni­cal En­gi­neers) with re­gard to con­st­ruc­tion, exi­gent pre­ven­ti­on and en­vi­ron­men­tal pro­tec­tion as well as with the ATEX Di­rec­ti­ve.

(b) Sel­ler shall, in the per­for­mance of an Order, com­ply with all ap­pli­ca­ble laws and re­gu­la­ti­ons in ef­fect on the date the Order is is­su­ed and as such may be amen­ded from time to time. All sales of Pro­ducts must be in con­for­mance with Eu­rope­an Union, Ger­man, and other ap­pli­ca­ble ex­port con­t­rol laws, U.S. For­eign As­sets Con­t­rol and the U.S. For­eign Cor­rupt Prac­ti­ces Act (“FCPA”) laws and re­gu­la­ti­ons and si­mi­lar anti-cor­rup­ti­on laws and re­gu­la­ti­ons that may be in ef­fect in the coun­tries of ex­port and im­port.

(c) Sel­ler ack­now­led­ges that it is fa­mi­li­ar with the FCPA and its pro­hi­bi­ti­ons re­gar­ding the pa­y­ment or gi­ving of any­thing of value eit­her di­rect­ly or in­di­rect­ly, to an of­fi­ci­al of a for­eign go­vern­ment or po­li­ti­cal party for the pur­po­se of in­flu­en­cing an act or de­cis­i­on in their of­fi­ci­al ca­pa­ci­ty or in­du­cing the of­fi­ci­al to use their or their party’s in­flu­ence with that go­vern­ment, to ob­tain or re­tain busi­ness in­vol­ving the goods. Sel­ler agrees that it can­not co­ope­ra­te with or cause Pro­ducts to be de­li­ver­ed to any de­sti­na­ti­on or en­ti­ty that is restric­ted by U.S., Eu­rope­an Union or Ger­man law. Fur­ther, Sel­ler re­co­gni­zes that Buyer can­not co­ope­ra­te with, agree to, or com­ply with any terms or re­quests, in­clu­ding do­cu­men­ta­ry re­quests, which are pro­hi­bi­ted or are pe­na­li­zed under U.S., Eu­rope­an Union or Ger­man Anti-boy­cott laws or re­gu­la­ti­ons.

(d) Sel­ler re­pres­ents, war­rants and co­ven­ants that neit­her it nor any of its ow­ners or custo­mers are or will be on any of the pro­hi­bi­ted par­ties lists main­tai­ned by va­rious agen­ci­es of the U.S. go­vern­ment or their Eu­rope­an Union coun­ter­parts, in­clu­ding, wit­hout li­mi­ta­ti­on, the de­nied per­sons list, the un­ve­ri­fied list, the en­ti­ty list, the de­bar­red list or the spe­cial­ly de­si­gna­ted na­tio­nals list (in­clu­ding, wit­hout li­mi­ta­ti­on, those per­sons and en­ti­ties listed pur­su­ant to the dia­mond tra­ding, nar­co­tics traf­fi­cking, non­pro­li­fe­ra­ti­on and ter­ro­rist sanc­tions pro­grams ad­mi­nis­te­red by the Of­fice of For­eign As­sets Con­t­rol of the U.S. De­part­ment of the Tre­a­su­ry).

(e) If any of the Pro­ducts are im­por­ted into any other coun­try, Sel­ler will be re­spon­si­ble for all legal, re­gu­la­to­ry and ad­mi­nis­tra­ti­ve re­qui­re­ments as­so­cia­ted with any im­por­ta­ti­on and the pa­y­ment of all as­so­cia­ted du­ties, taxes and fees. Upon Buyer’s re­quest, Sel­ler shall pro­vi­de Buyer with an ap­pro­pria­te cer­ti­fi­ca­ti­on sta­ting the coun­try of ori­gin for Pro­ducts, suf­fici­ent to sa­tis­fy the re­qui­re­ments of: i) the customs au­tho­ri­ties of the coun­try of re­ceipt; and ii) any ap­pli­ca­ble ex­port li­cen­sing re­gu­la­ti­ons.

(f) Sel­ler shall, at its sole cost, se­cu­re and main­tain all ne­cess­a­ry li­cen­ses, per­mits, au­tho­ri­za­ti­ons or other ap­pro­vals re­qui­red for the ope­ra­ti­on of Sel­ler’s busi­ness or any pro­per­ty used ther­ein, or as ne­cess­a­ry for Sel­ler’s per­for­mance hereun­der. Sel­ler shall im­me­dia­te­ly no­ti­fy Buyer in the event that Sel­ler is not in com­pli­an­ce with any pro­vi­si­on of this Sec­tion.

(g) If Sel­ler is a Com­pany that en­ga­ges in the busi­ness of eit­her ma­nu­fac­tu­ring or ex­por­ting de­fen­se ar­ti­cles or fur­ni­shing de­fen­se ser­vices, then Sel­ler here­by cer­ti­fies that it has re­gis­ter­ed with the U.S. De­part­ment of State Di­rec­to­ra­te of De­fen­se Trade Con­trols and/or the ap­pli­ca­ble Eu­rope­an Union or Ger­man agen­cy and un­der­stands its ob­li­ga­ti­on to com­ply with U.S In­ter­na­tio­nal Traf­fic in Arms Re­gu­la­ti­ons (“ITAR”), the Ex­port Ad­mi­nis­tra­ti­on Re­gu­la­ti­ons (“EAR”) and their ap­pli­ca­ble Eu­rope­an Union and Ger­man coun­ter­parts. Sel­ler shall con­t­rol the dis­clo­sure of and ac­cess to tech­ni­cal data in­for­ma­ti­on and other items re­cei­ved under out­stan­ding Or­ders in ac­cor­dance with U.S., Eu­rope­an Union and Ger­man ex­port con­t­rol laws and re­gu­la­ti­ons, in­clu­ding but not li­mi­ted to the ITAR. Sel­ler agrees that no tech­ni­cal data, in­for­ma­ti­on or other items pro­vi­ded by the Buyer in con­nec­tion with an Order shall be pro­vi­ded to any for­eign na­tio­nal or to a for­eign en­ti­ty, in­clu­ding wit­hout li­mi­ta­ti­on, a for­eign sub­si­di­a­ry of Sel­ler, wit­hout the ex­press writ­ten au­tho­ri­za­ti­on of Buyer and the Sel­ler’s ob­tai­ning the ap­pro­pria­te ex­port li­cen­se, tech­ni­cal as­sis­tan­ce, agree­ment or other re­qui­si­te do­cu­men­ta­ti­on for ITAR-con­trol­led tech­ni­cal data or items. Sel­ler agrees to no­ti­fy Buyer if Sel­ler is listed on the De­nied Par­ties List pu­blis­hed by the U.S. De­part­ment of Com­mer­ce, or if Sel­ler’s ex­port pri­vi­le­ges are other­wi­se de­nied, sus­pen­ded, or re­vo­ked in whole or in part. Sel­ler shall in­dem­ni­fy Buyer for all lia­bi­li­ties pe­n­al­ties, los­ses, da­ma­ges, costs or ex­pen­ses that may be im­po­sed on or in­cur­red by Buyer in con­nec­tion with any vio­la­ti­on of im­port or ex­port laws or re­gu­la­ti­ons by Sel­ler.

(h) If any of the Pro­ducts are purcha­sed for in­cor­po­ra­ti­on into pro­ducts sold under a go­vern­ment con­tract or sub­con­tract, the terms re­qui­red to be in­ser­ted by that con­tract or sub­con­tract shall be de­emed to apply to the ap­pli­ca­ble Order. All ra­ting or cer­ti­fi­ca­ti­on re­qui­re­ments spe­ci­fied in such go­vern­ment con­tract or sub­con­tract or of which Sel­ler has know­ledge shall be com­plied with. Sel­ler agrees to fur­nish Buyer a cer­ti­fi­ca­te of com­pli­an­ce with any such laws and cer­ti­fi­ca­ti­on re­qui­re­ments in such form as may be re­quested by Buyer. If Sel­ler is a sub­con­trac­tor to Buyer on a U.S. go­vern­ment con­tract or sub­con­tract, the par­ties agree that, to the ex­tent ap­pli­ca­ble: (1) they will com­ply with the fol­lo­wing, which are in­cor­po­ra­ted her­ein by re­fe­rence: 41 CFR 60-1.4(a), Exe­cu­ti­ve Order 13496 (29 CFR Part 471, Ap­pen­dix A to Sub­part A), re­la­ting to the no­ti­ce of em­ployee rights under fe­de­ral labor laws, 41 CFR 60-300.5(a) and 41 CFR 60-741.5(a); and (2) they shall abide by the re­qui­re­ments of 41 CFR 60-300.5(a) and 41 CFR 60-741.5(a). These re­gu­la­ti­ons, re­spec­tive­ly, pro­hi­bit dis­cri­mi­na­ti­on against qua­li­fied pro­tec­ted ve­te­rans and qua­li­fied in­di­vi­du­als on the basis of dis­abi­li­ty and re­qui­re af­fir­ma­ti­ve ac­tion by co­ver­ed prime con­trac­tors and sub­con­trac­tors to em­ploy and ad­van­ce in em­ploy­ment qua­li­fied pro­tec­ted ve­te­rans and qua­li­fied in­di­vi­du­als with dis­abi­li­ties. If Sel­ler is a sub­con­trac­tor on a Ca­na­di­an go­vern­ment con­tract or sub­con­tract, it shall com­ply with any equi­va­lent ap­pli­ca­ble Ca­na­di­an fe­de­ral, na­tio­nal, state, pro­vin­ci­al or mu­nici­pal or­ders and re­gu­la­ti­ons, all of which are in­cor­po­ra­ted her­ein by re­fe­rence.

(i) Sel­ler is and re­mains so­le­ly re­spon­si­ble for the full com­pli­an­ce of de­li­ver­ed Pro­ducts or parts of Pro­ducts with any ap­pli­ca­ble rules and re­gu­la­ti­ons (“Le­gis­la­ti­on”) on restric­tion of ha­zar­dous sub­s­tan­ces (“RoHS”) such as, wit­hout li­mi­ta­ti­on, the RoHS Re­cast Di­rec­ti­ve 2011/65/EU (“RoHS-2”) as of 21 July 2011, and all fur­ther re­leases as well as all na­tio­nal or local re­gu­la­ti­ons is­su­ed in exe­cu­ti­on of RoHS-2 or any equi­va­lent ap­pli­ca­ble U.S. or Ca­na­di­an or Eu­rope­an Union fe­de­ral, pro­vin­ci­al or mu­nici­pal laws, rules, re­gu­la­ti­ons, or­ders, trea­ties and other re­qui­re­ments. All de­li­ver­ed Pro­ducts or parts of Pro­ducts must be sui­ta­ble and fit for RoHS-2 com­pli­ant pro­duc­tion and sale. Sel­ler will com­ple­te and sign Buy­ers stan­dard De­cla­ra­ti­on of RoHS-2 Com­pli­an­ce at the part num­ber level, use ap­pro­pria­te sys­tems and pro­ces­ses to en­su­re the ac­cu­ra­cy of these de­ter­mi­na­ti­ons and main­tain ap­pro­pria­te re­cords to allow tracea­bi­li­ty of all Pro­ducts or parts of Pro­ducts.
Sel­ler is and re­mains so­le­ly re­spon­si­ble for the full com­pli­an­ce of de­li­ver­ed Pro­ducts or parts of Pro­ducts with the Ad­mi­nis­tra­ti­ve Mea­su­res on the Con­t­rol of Pol­lu­ti­on Cau­sed by Elec­tro­nic In­for­ma­ti­on Pro­ducts as of 28 Fe­bru­ary 2006, and Ger­man fe­de­ral, pro­vin­ci­al or mu­nici­pal laws, rules, re­gu­la­ti­ons, or­ders, trea­ties and other re­qui­re­ments in par­ti­cu­lar but not li­mi­ted to the Ger­man Re­gu­la­ti­on on the restric­ting of the use of ha­zar­dous sub­s­tan­ces in elec­tri­cal and elec­tro­nic equip­ment (Elek­tro­StoffV) as amen­ded from time to time and to en­su­re that the goods de­li­ver­ed do not con­tain any of the pro­hi­bi­ted sub­s­tan­ces pur­su­ant to § 3 Elek­tro­StoffV as amen­ded from time to time. If Pro­ducts de­li­ver­ed should con­tain even minor quan­ti­ty of the fol­lo­wing pro­hi­bi­ted sub­s­tan­ces: lead, mer­cu­ry, cad­mi­um or he­xa­va­lent chro­me, Sel­ler is ob­li­ged to no­ti­fy Buyer hereof wit­hout delay in order to en­able Buyer to com­ply with the re­qui­re­ments of the Elek­tro­StoffV as amen­ded from time to time. All de­li­ver­ed Pro­ducts or parts of Pro­ducts must be sui­ta­ble and fit for RoHS com­pli­ant pro­duc­tion and sale. Sel­ler will com­ple­te and sign Buyer’s stan­dard De­cla­ra­ti­on of RoHS Com­pli­an­ce at the part num­ber level, use ap­pro­pria­te sys­tems and pro­ces­ses to en­su­re the ac­cu­ra­cy of these de­ter­mi­na­ti­ons and main­tain ap­pro­pria­te re­cords to allow tracea­bi­li­ty of all Pro­ducts or parts of Pro­ducts. In­so­far as Pro­ducts or parts of Pro­ducts are not sup­plied in ac­cor­dance with the afo­re­men­tio­ned re­qui­re­ments, Buyer re­ser­ves the right to can­cel blan­ket or sin­gle Or­ders. Sel­ler un­der­takes to duly and im­me­dia­te­ly in­form Buyer of any chan­ges af­fec­ting RoHS com­pli­an­ce. In case of can­cel­la­ti­on of blan­ket or sin­gle Or­ders or pro­ven vio­la­ti­ons of na­tio­nal or in­ter­na­tio­nal RoHS com­pli­an­ce by the Sel­ler, Sel­ler un­der­takes to in­dem­ni­fy and hold Buyer harm­less from any claim, lia­bi­li­ty, loss, da­ma­ge, judg­ment and ex­ter­nal re­spon­si­bi­li­ty, ir­re­spec­ti­ve of their ju­ris­dic­tion and/or legal ground, and to bear any and all harm, loss or da­ma­ge ari­sing to Buyer’s dis­ad­van­ta­ge.

(k) To the ex­tent re­qui­red by ap­pli­ca­ble law, Sel­ler shall be re­spon­si­ble for the collec­tion, treat­ment, re­co­ve­ry or dis­po­sal of: (i) the Pro­ducts or any part the­reof when they are de­emed by law to be ‘waste’; and (ii) any items for which the Pro­ducts or any part the­reof are re­pla­ce­ments. If Sel­ler is re­qui­red by ap­pli­ca­ble law, in­clu­ding, wit­hout li­mi­ta­ti­on, waste elec­tri­cal and elec­tro­nic equip­ment Le­gis­la­ti­ons, Eu­rope­an Di­rec­ti­ve 2012/19/EU (“WEEE”) and re­la­ted Le­gis­la­ti­ons in EU Mem­ber Sta­tes, to dis­po­se of ‘waste’ Pro­ducts or any part the­reof, Sel­ler shall dis­po­se of such Pro­ducts en­ti­re­ly at its own cost (in­clu­ding all hand­ling and trans­por­ta­ti­on costs).

(l) Sel­ler is and re­mains so­le­ly re­spon­si­ble for the full com­pli­an­ce of de­li­ver­ed Pro­ducts, parts of Pro­ducts or sub­s­tan­ces with the re­qui­re­ments of Re­gu­la­ti­on (EC) No. 1907/2006 as of 7 July 2017 as amen­ded or va­ried and all fur­ther re­leases as well as any na­tio­nal re­gu­la­ti­ons is­su­ed in exe­cu­ti­on of this re­gu­la­ti­on (“REACH”). Sel­ler gua­ran­tees that all ob­li­ga­ti­ons under REACH, in par­ti­cu­lar all in­for­ma­ti­on re­qui­re­ments vis-à-vis Buyer, have been ful­fil­led. This in­clu­des in par­ti­cu­lar the pro­vi­si­on of a com­pre­hen­si­ve safe­ty data sheet in ac­cor­dance with REACH. In­so­far as Pro­ducts, parts of Pro­ducts or sub­s­tan­ces are not sup­plied in ac­cor­dance with the afo­re­men­tio­ned re­qui­re­ments, Buyer re­ser­ves the right to can­cel any Order. Sel­ler un­der­takes to duly and im­me­dia­te­ly in­form Buyer of any chan­ges af­fec­ting REACH com­pli­an­ce. In case of can­cel­la­ti­on of blan­ket or sin­gle Or­ders or pro­ven vio­la­ti­ons of na­tio­nal or in­ter­na­tio­nal REACH com­pli­an­ce re­gu­la­ti­ons by Sel­ler, Sel­ler un­der­takes to in­dem­ni­fy and hold Buyer harm­less from any claim, lia­bi­li­ty, loss, da­ma­ge, judg­ment and ex­ter­nal re­spon­si­bi­li­ty, ir­re­spec­ti­ve of their ju­ris­dic­tion and/or legal ground, and to bear any and all harm, loss or da­ma­ge ari­sing to Buyer’s dis­ad­van­ta­ge.

(m) Sel­ler ack­now­led­ges that Buyer is re­qui­red to com­ply with Sec­tion 1502 of the United Sta­tes Dodd-Frank Wall Street Re­form and Con­su­mer Pro­tec­tion Act (“the Dodd-Frank Act”) and inter alia must file dis­clo­sures and re­ports with the United Sta­tes Se­cu­ri­ties and Ex­chan­ge Com­mis­si­on re­la­ted to the use of tin, tan­talum, tungs­ten and gold (“Con­flict Mi­ne­rals”). Sel­ler re­pres­ents and war­rants that it will source, and track the chain of custo­dy of, all Con­flict Mi­ne­rals con­tai­ned in any pro­ducts or ma­te­ri­als pro­vi­ded by Sel­ler to Buyer in ac­cor­dance with the OECD Due Di­li­gence Gui­dance for Re­spon­si­ble Sup­ply Chains of Mi­ne­rals from Con­flict-Af­fec­ted and High-Risk Areas (or such other in­ter­na­tio­nal­ly re­co­gni­zed due di­li­gence stan­dard as Buyer and Sel­ler may joint­ly agree upon). At Buyer’s re­quest (which may be as fre­quent­ly as quar­ter­ly at Buyer’s dis­cre­ti­on), Sel­ler must exe­cu­te and de­li­ver to Buyer de­cla­ra­ti­ons in the form of the EICC-GESI Con­flict Mi­ne­rals Re­por­ting Tem­pla­te as ad­op­ted by EICC-GESI from time to time, or (at Buyer’s dis­cre­ti­on) in any other form that Buyer rea­son­ab­ly re­quests. Sel­ler agrees and re­pres­ents that all pro­ducts and ma­te­ri­als pro­vi­ded by Sel­ler to Buyer after Decem­ber 31, 2014 shall be “Con­flict Free” (as de­fi­ned in the Dodd-Frank Act) and at Buyer’s re­quest from time to time Sel­ler shall exe­cu­te and de­li­ver to Buyer a writ­ten de­cla­ra­ti­on to the same ef­fect.

(n) Sel­ler is and re­mains so­le­ly re­spon­si­ble for the full com­pli­an­ce of de­li­ver­ed Pro­ducts, parts of Pro­ducts or sub­s­tan­ces with the re­qui­re­ments of the State of Ca­li­for­nia’s Safe Drin­king Water and Toxic En­force­ment Act of 1986 (Pro­po­si­ti­on 65). Sel­ler shall pro­vi­de no­ti­fi­ca­ti­on to Buyer of the pre­sence of Pro­po­si­ti­on 65 che­mi­cals in Sel­ler’s pro­ducts at the time of de­li­ve­ry, and shall no­ti­fy Buyer of any chan­ges in the pre­sence of Pro­po­si­ti­on 65 che­mi­cals as soon as such chan­ges are known. Sel­lers no­ti­fi­ca­ti­on to Buyer shall be suf­fici­ent if made in wri­ting by elec­tro­nic mail to ATGPC@​Ape​xtoo​lgro​up.​com.

8. In­dem­ni­fi­ca­ti­on.

(a) SEL­LER SHALL IN­DEM­NI­FY, HOLD HARM­LESS AND, AT BUYER’S RE­QUEST, DE­FEND BUYER, ITS OF­FI­CERS, DI­REC­TORS, CUSTO­MERS, AGENTS AND EM­PLOYEES, AGAINST ALL CLAIMS, SUITS, LIA­BI­LI­TIES, DA­MA­GES, LOS­SES AND EX­PEN­SES, IN­CLU­DING AT­TOR­NEYS’ FEES AND COSTS OF SUIT ARI­SING OUT OF OR IN ANY WAY CON­NEC­TED WITH THE PRO­DUCTS PRO­VI­DED UNDER THIS AGREE­MENT, IN­CLU­DING, WIT­HOUT LI­MI­TA­TI­ON: (I) BREACH OR NON-FUL­FILL­MENT OF ANY RE­PRE­SEN­TA­TI­ON, WAR­RAN­TY OR CO­VEN­ANT UNDER/RE­PRE­SEN­TA­TI­ON OR WAR­RAN­TY SET FORTH IN SEC­TION SET FORTH HER­EIN BY SEL­LER; (II) ANY NE­GLI­GENT OR MORE CUL­PA­BLE ACT OR OMIS­SI­ON OF SEL­LER (IN­CLU­DING ANY RECK­LESS OR WILL­FUL MIS­CON­DUCT) IN CON­NEC­TION WITH THE PER­FOR­MANCE OF ITS OB­LI­GA­TI­ONS HEREUN­DER; (III) ANY BO­DI­LY IN­JU­RY, DEATH OF ANY PER­SON OR DA­MA­GE TO REAL OR TAN­GI­BLE PER­SO­NAL PRO­PER­TY CAU­SED BY THE NE­GLI­GENT OR MORE CUL­PA­BLE ACTS OR OMIS­SI­ONS OF SEL­LER; (IV) ANY FAILU­RE BY SEL­LER TO COM­PLY WITH ANY AP­PLI­CA­BLE FE­DE­RAL, STATE OR LOCAL LAWS, RE­GU­LA­TI­ONS OR CODES IN THE PER­FOR­MANCE OF ITS OB­LI­GA­TI­ONS UNDER THIS AGREE­MENT; AND (V) ANY CLAIM BY A THIRD PARTY AGAINST BUYER AL­LE­GING THAT THE PRO­DUCTS OR SER­VICES PRO­VI­DED UNDER THIS AGREE­MENT, IN­FRIN­GE A PA­TENT, CO­PY­RIGHT, TRADE­MARK, TRADE SE­CRET OR OTHER PRO­PRIE­TA­RY RIGHT OF A THIRD PARTY, WHE­THER SUCH ARE PRO­VI­DED ALONE OR IN COM­BI­NA­TI­ON WITH OTHER PRO­DUCTS, SOFT­WARE OR PRO­CES­SES. SEL­LER SHALL NOT SETT­LE ANY SUCH SUIT OR CLAIM WIT­HOUT BUYER’S PRIOR WRIT­TEN AP­PRO­VAL. SEL­LER AGREES TO PAY AND REIM­BUR­SE ALL COSTS THAT MAY BE IN­CUR­RED BY BUYER IN EN­FOR­CING THIS IN­DEM­NI­TY, IN­CLU­DING AT­TOR­NEY’S FEES.

(b) Wit­hout li­mi­ting the ge­ne­ra­li­ty of sec­tion (a) above, if the use by Buyer of any Pro­duct is en­joi­ned (the “In­frin­ging Pro­duct”), Sel­ler shall at its ex­pen­se use its best ef­forts to pro­cu­re the right for Buyer to con­ti­nue using the In­frin­ging Pro­duct. If Sel­ler is un­a­ble to do so, Sel­ler shall at its ex­pen­se: (i) re­place the In­frin­ging Pro­duct with a non-in­frin­ging pro­duct; (ii) mo­di­fy the In­frin­ging Pro­duct to be non-in­frin­ging; or (iii) if un­a­ble to re­place or mo­di­fy the In­frin­ging Pro­duct, re­fund in full all amounts paid by Buyer for the In­frin­ging Pro­duct.

(c) Wit­hout li­mi­ting the ge­ne­ra­li­ty of sec­tion (a) above Sel­ler shall, at Buyer’s re­quest, de­fend Buyer, its of­fi­cers, di­rec­tors, custo­mers, agents and em­ployees, against all costs and ex­pen­ses re­la­ted to or in con­nec­tion with a re­call ac­tion which Buyer has to con­duct or has con­duc­ted.
9. In­suran­ce.

Sel­ler agrees to ob­tain and main­tain the fol­lo­wing in­suran­ce po­lici­es at Sel­ler’s sole cost and ex­pen­se:

(a) Com­mer­ci­al Ge­ne­ral Lia­bi­li­ty In­suran­ce co­ver­ing lia­bi­li­ty for pro­per­ty da­ma­ge, per­so­nal in­ju­ry and death ari­sing out of ope­ra­ti­ons, pro­ducts-com­ple­ted ope­ra­ti­ons, con­trac­tu­al lia­bi­li­ty, with mi­ni­mum li­mits of EUR 5 mil­li­on per oc­cur­rence (the “CGL Po­li­cy”);

(b) Au­to­mo­bi­le Lia­bi­li­ty In­suran­ce co­ver­ing lia­bi­li­ty ari­sing out of any auto (in­clu­ding owned, hired, lea­sed, ope­ra­ted and non-owned autos) with mi­ni­mum li­mits of EUR 1 mil­li­on per oc­cur­rence com­bi­ned sin­gle limit; and

(c) Sta­tu­to­ry Workers’ Com­pen­sa­ti­on in­suran­ce (or equi­va­lent as re­qui­red under ap­pli­ca­ble law) as re­qui­red by ap­pli­ca­ble law.

(d) Buyer shall be named as an ad­di­tio­nal in­su­red on the CGL Po­li­cy for all ope­ra­ti­ons of Sel­ler hereun­der and for all lia­bi­li­ty for which Sel­ler is re­spon­si­ble under the Order. The CGL Po­li­cy shall con­tain stan­dard cross lia­bi­li­ty clau­ses, and Sel­ler shall cause such po­lici­es to be en­dor­sed to pro­vi­de con­trac­tu­al lia­bi­li­ty co­ver­age spe­ci­fi­cal­ly co­ver­ing this Agree­ment as an in­su­red con­tract, if ne­cess­a­ry, to ob­tain co­ver­age of this Order the­reun­der. All In­suran­ce Po­lici­es shall re­qui­re that Buyer be given at least thir­ty (30) days writ­ten no­ti­ce of can­cel­la­ti­on, non-re­ne­wal, or any ma­te­ri­al chan­ge ther­ein.

10. Can­cel­la­ti­on of Purcha­se Or­ders.

If Sel­ler fails to con­firm Buyer’s Order within 5 busi­ness days of re­ceipt the­reof, Buyer shall be en­tit­led to can­cel the Order in whole or in part, wit­hout an ob­li­ga­ti­on or lia­bi­li­ty to Sel­ler. Buyer’s con­fir­ma­ti­on form en­c­lo­sed with the Order or any me­thod of ex­chan­ge or trans­mis­si­on of elec­tro­nic data agreed bet­ween Buyer and Sel­ler should be used to con­firm the Order. In this con­text, the state­ment must be given in wri­ting or in text form.

11. Ter­mi­na­ti­on.
Buyer may at any time ter­mi­na­te all or part of Sel­ler’s per­for­mance hereun­der by no­ti­ce in wri­ting or in text form to Sel­ler. Upon re­ceipt of such no­ti­ce, Sel­ler shall eli­mi­na­te its per­for­mance and all or­ders and sub­con­tracts to the ex­tent they re­la­te to such per­for­mance. To the ex­tent the Order co­vers Pro­ducts nor­mal­ly car­ri­ed in Sel­ler’s in­ven­to­ry, Buyer shall have no lia­bi­li­ty for any ter­mi­na­ti­on of the Order, in whole or in part, prior to ship­ment, or will have lia­bi­li­ty for Pro­ducts al­re­ady ship­ped to the ex­tent Buyer has ac­cep­ted such Pro­ducts. To the ex­tent the Order co­vers Pro­ducts not nor­mal­ly car­ri­ed in Sel­ler’s in­ven­to­ry, the fol­lo­wing pro­vi­si­ons will apply. Sel­ler shall prompt­ly ad­vi­se Buyer of the quan­ti­ties of Pro­ducts and raw ma­te­ri­al on hand or purcha­sed prior to ter­mi­na­ti­on and of the most fa­vor­able dis­po­si­ti­on the­reof. Sel­ler shall com­ply with Buyer’s in­st­ruc­tions re­gar­ding dis­po­si­ti­on of Pro­ducts and raw ma­te­ri­als. Sel­ler shall sub­mit to Buyer writ­ten no­ti­ce of its in­tent to sub­mit claims based on such ter­mi­na­ti­on within a rea­son­a­ble pe­ri­od of time, in ge­ne­ral fif­te­en (15) days from the date of no­ti­ce of ter­mi­na­ti­on and de­tail and sub­stan­tia­te such claims within a rea­son­a­ble pe­ri­od of time, in ge­ne­ral thir­ty (30) days the­reaf­ter, or Sel­ler wai­ves such claims in their en­ti­re­ty. Buyer shall only pay Sel­ler the Order price of fi­nis­hed Pro­ducts ac­cep­ted by Buyer, and the cost to Sel­ler ex­clu­ding pro­fits and los­ses, of work in pro­cess and raw ma­te­ri­als re­la­ting here­to, less the agreed value of any Pro­ducts used or sold by Sel­ler with Buyer’s con­sent. Sel­ler has an ob­li­ga­ti­on to mi­ti­ga­te da­ma­ges and Buyer may de­duct from any amounts owed any such da­ma­ges that Sel­ler could have mi­ti­ga­ted but did not. Buyer may ve­ri­fy such claims at any rea­son­a­ble time(s) by any rea­son­a­ble me­thod. Buyer will not pay for fi­nis­hed work, work in pro­cess, or raw ma­te­ri­als fa­bri­ca­ted or pro­cu­red by Sel­ler un­ne­ces­sa­ri­ly in ad­van­ce or in ex­cess of Buyer’s de­li­ve­ry re­qui­re­ments hereun­der. Not­with­stan­ding the above, any pa­y­ments under this pa­ra­graph shall not ex­ceed the ag­gre­ga­te price spe­ci­fied in the Order, less any pa­y­ments made or to be made. Pa­y­ment under this pa­ra­graph (if any) is Buyer’s only lia­bi­li­ty if the Order is ter­mi­na­ted.

12. Spe­cial Too­ling.

“Spe­cial Too­ling” means all pat­terns, dies, fix­tu­res, molds, jigs, mo­dels, gau­ges, in­spec­tion de­vices, spe­cial cut­ting tools, spe­cial test de­vices, dra­wings, tem­pla­tes and any re­pla­ce­ments the­reof, which, be­fo­re the date hereof, Sel­ler did not own or use and which Sel­ler has been or will be re­qui­red to acqui­re and use so­le­ly for pur­po­ses of fur­ni­shing Pro­ducts hereun­der, but ex­clu­des tools, ca­pi­tal items or pro­per­ty owned or fur­nis­hed by Buyer. Prior writ­ten ap­pro­val for purcha­se of any Spe­cial Too­ling is re­qui­red, and such re­quest shall de­tail each item and its price. Sel­ler shall use all Spe­cial Too­ling so­le­ly for per­for­mance of the Order or as Buyer di­rects in wri­ting, main­tain Spe­cial Too­ling in good con­di­ti­on, fully co­ver­ed by in­suran­ce, and re­place it at Sel­ler’s cost if lost, sto­len, de­s­troy­ed, or other­wi­se ren­de­red unfit for use to the ex­tent this is at­tri­buta­ble to Sel­ler. Sel­ler shall per­mit in­spec­tion and sup­ply Buyer with de­tail­ed state­ments of Spe­cial Too­ling upon re­quest. Upon com­ple­ti­on, can­cel­la­ti­on, or ter­mi­na­ti­on of work for which Spe­cial Too­ling is re­qui­red, Sel­ler shall list Pro­ducts and the Spe­cial Too­ling used in con­nec­tion the­re­with, in­clu­ding the un­a­mor­ti­zed cost and fair mar­ket value of each item, and shall in wri­ting if Buyer so elects, trans­fer pos­ses­si­on and title of the Spe­cial Too­ling to Buyer, free and clear of liens and en­cum­bran­ces, in ex­chan­ge for the les­ser of the un­a­mor­ti­zed cost or fair mar­ket value of the too­ling. Buyer may dis­po­se of Spe­cial Too­ling wit­hout ta­king pos­ses­si­on the­reof and re­cei­ve any re­sul­ting sal­va­ge or re­sa­le re­ve­nues and may enter Sel­ler’s pre­mi­ses to ob­tain pos­ses­si­on of any Spe­cial Too­ling.

13. Ow­ner­ship of Work Pro­duct.

(a) For pur­po­ses of this Order, "Work Pro­duct" shall in­clu­de, wit­hout li­mi­ta­ti­on, all de­signs, dis­co­ve­ries, crea­ti­ons, works, de­vices, masks, mo­dels, work in pro­gress, ser­vice de­li­ver­a­bles, in­ven­ti­ons, pro­ducts, Spe­cial Too­ling, com­pu­ter pro­grams, pro­ce­du­res, im­pro­vements, de­ve­lop­ments, dra­wings, notes, do­cu­ments, busi­ness pro­ces­ses, in­for­ma­ti­on and ma­te­ri­als made, con­cei­ved or de­ve­lo­ped by Sel­ler alone or with others which re­sult from or re­la­te to the ser­vices per­for­med or Pro­ducts de­li­ver­ed hereun­der. Stan­dard Pro­ducts ma­nu­fac­tu­red by Sel­ler and sold to Buyer wit­hout ha­ving been de­si­gned, custo­mi­zed or mo­di­fied in any way for Buyer do not consti­tu­te Work Pro­duct. All Work Pro­duct, if Buyer pays the purcha­se price re­le­vant for that Work Pro­duct, shall at all times be and re­main the sole and ex­clu­si­ve pro­per­ty of Buyer. Sel­ler here­by agrees to ir­re­vo­cab­ly as­sign and trans­fer to Buyer and does here­by as­sign and trans­fer to Buyer all of its world­wi­de right, title and in­te­rest in and to the Work Pro­duct in­clu­ding all as­so­cia­ted in­tel­lec­tu­al pro­per­ty rights. Sel­ler here­by wai­ves any and all moral and other rights in any Work Pro­duct or any other in­tel­lec­tu­al pro­per­ty crea­ted, de­ve­lo­ped or acqui­red in re­spect of the Pro­ducts. Buyer will have the sole right to de­ter­mi­ne the treat­ment of any Work Pro­duct, in­clu­ding the right to keep it as trade se­cret, exe­cu­te and file pa­tent ap­pli­ca­ti­ons on it, to use and dis­c­lo­se it wit­hout prior pa­tent ap­pli­ca­ti­on, to file re­gis­tra­ti­ons for co­py­right or trade­mark in its own name or to fol­low any other pro­ce­du­re that Buyer deems ap­pro­pria­te. Sel­ler agrees: i) to dis­c­lo­se prompt­ly in wri­ting to Buyer all Work Pro­duct in its pos­ses­si­on; ii) to as­sist Buyer in every rea­son­a­ble way, at Buyer’s ex­pen­se, to se­cu­re, per­fect, re­gis­ter, apply for, main­tain, and de­fend for Buyer’s be­ne­fit all co­py­rights, pa­tent rights, mask work rights, trade se­cret rights, and all other pro­prie­ta­ry rights or sta­tu­to­ry pro­tec­tions in and to the Work Pro­duct in Buyer’s name as it deems ap­pro­pria­te; and iii) to other­wi­se treat all Work Pro­duct as Buyer Con­fi­den­ti­al In­for­ma­ti­on as de­fi­ned her­ein. These ob­li­ga­ti­ons to dis­c­lo­se, as­sist, exe­cu­te and keep con­fi­den­ti­al sur­vi­ve the ex­pi­ra­ti­on or ter­mi­na­ti­on of this Agree­ment. All tools and equip­ment sup­plied by Buyer to Sel­ler shall re­main the sole pro­per­ty of Buyer.

(b) Sel­ler will en­su­re that Sel­lers sub­con­trac­tors ap­pro­pria­te­ly waive any and all claims and as­sign to Buyer any and all rights or any in­te­rests in any Work Pro­duct or ori­gi­nal works crea­ted in con­nec­tion with this Order. Sel­ler ir­re­vo­cab­ly agrees not to as­sert against Buyer or its di­rect or in­di­rect custo­mers, as­si­gnees or li­cen­sees any claim of any in­tel­lec­tu­al pro­per­ty rights of Buyer af­fec­ting the Work Pro­duct.

(c) Buyer will not have rights to any works con­cei­ved or re­du­ced to prac­ti­ce by Sel­ler which were de­ve­lo­ped en­ti­re­ly on Sel­lers own time wit­hout using equip­ment, sup­plies, fa­ci­li­ties or trade se­cret or Buyer Con­fi­den­ti­al In­for­ma­ti­on, un­less: i) such works re­la­te to Buyer’s busi­ness, or Buyer’s ac­tu­al or de­mons­trab­ly an­ti­ci­pa­ted re­se­arch or de­ve­lop­ment; or ii) such works re­sult from any ser­vices per­for­med by Sel­ler for Buyer.

14. Con­fi­den­tia­li­ty.
(a) Sel­ler will acqui­re know­ledge of Buyer Con­fi­den­ti­al In­for­ma­ti­on (as de­fi­ned below) in con­nec­tion with its per­for­mance hereun­der and agrees to keep such Buyer Con­fi­den­ti­al In­for­ma­ti­on in con­fi­dence du­ring and fol­lo­wing ter­mi­na­ti­on or ex­pi­ra­ti­on of this Order. "Buyer Con­fi­den­ti­al In­for­ma­ti­on" in­clu­des but is not li­mi­ted to all in­for­ma­ti­on, whe­ther writ­ten or oral, in any form, in­clu­ding, wit­hout li­mi­ta­ti­on, in­for­ma­ti­on re­la­ting to the re­se­arch, de­ve­lop­ment, pro­ducts, me­thods of ma­nu­fac­tu­re, trade se­crets, busi­ness plans, custo­mers, ven­dors, fi­nan­ces, per­son­nel data, Work Pro­duct (as de­fi­ned her­ein) and other ma­te­ri­al or in­for­ma­ti­on con­side­red pro­prie­ta­ry by Buyer re­la­ting to the cur­rent or an­ti­ci­pa­ted busi­ness or af­fairs of Buyer which is dis­c­lo­sed di­rect­ly or in­di­rect­ly to Sel­ler. In ad­di­ti­on, Buyer Con­fi­den­ti­al In­for­ma­ti­on means any third par­tys pro­prie­ta­ry or con­fi­den­ti­al in­for­ma­ti­on dis­c­lo­sed to Sel­ler in the cour­se of pro­vi­ding Pro­ducts to Buyer. Buyer Con­fi­den­ti­al In­for­ma­ti­on does not in­clu­de any in­for­ma­ti­on: i) which Sel­ler la­w­ful­ly knew wit­hout restric­tion on dis­clo­sure be­fo­re Buyer dis­c­lo­sed it to Sel­ler; ii) which is now or be­co­mes pu­blicly known through no wrong­ful act or failu­re to act of Sel­ler; iii) which Sel­ler de­ve­lo­ped in­de­pen­dent­ly wit­hout use of the Buyer Con­fi­den­ti­al In­for­ma­ti­on, as evi­den­ced by ap­pro­pria­te do­cu­men­ta­ti­on; or iv) which is hereaf­ter la­w­ful­ly fur­nis­hed to Sel­ler by a third party as a mat­ter of right and wit­hout restric­tion on dis­clo­sure. In ad­di­ti­on, Sel­ler may dis­c­lo­se Con­fi­den­ti­al In­for­ma­ti­on which is re­qui­red to be dis­c­lo­sed pur­su­ant to a re­qui­re­ment of a go­vern­ment agen­cy or law but only after Sel­ler pro­vi­des prompt no­ti­ce to Buyer of such re­qui­re­ment and gives Buyer the op­por­tu­ni­ty to chal­len­ge or limit the scope of the dis­clo­sure.

(b) Sel­ler agrees not to copy, alter or di­rect­ly or in­di­rect­ly dis­c­lo­se any Buyer Con­fi­den­ti­al In­for­ma­ti­on. Ad­di­tio­nal­ly, Sel­ler agrees to limit its in­ter­nal dis­tri­bu­ti­on of Buyer Con­fi­den­ti­al In­for­ma­ti­on to Sel­lers em­ployees who have a need to know, and to take steps to en­su­re that the dis­se­mi­na­ti­on is so li­mi­ted. In no event will Sel­ler use less than the de­gree of care and means that it uses to pro­tect its own in­for­ma­ti­on of like kind, but in any event not less than rea­son­a­ble care to pre­vent the un­au­tho­ri­zed use of Buyer Con­fi­den­ti­al In­for­ma­ti­on.

(c) Sel­ler fur­ther agrees not to use Buyer Con­fi­den­ti­al In­for­ma­ti­on ex­cept in the cour­se of per­for­ming hereun­der and will not use such Buyer Con­fi­den­ti­al In­for­ma­ti­on for its own be­ne­fit or for the be­ne­fit of any third party. The ming­ling of Buyer Con­fi­den­ti­al In­for­ma­ti­on with in­for­ma­ti­on of Sel­ler shall not af­fect the con­fi­den­ti­al na­tu­re or ow­ner­ship of the same as sta­ted hereun­der. Sel­ler agrees not to de­sign or ma­nu­fac­tu­re any pro­ducts which in­cor­po­ra­te Buyer Con­fi­den­ti­al In­for­ma­ti­on ex­cept as au­tho­ri­zed by the Order. All Buyer Con­fi­den­ti­al In­for­ma­ti­on is and shall re­main the pro­per­ty of Buyer. Upon Buy­ers writ­ten re­quest or the ter­mi­na­ti­on of this Agree­ment, Sel­ler shall re­turn, trans­fer or as­sign to Buyer all Buyer Con­fi­den­ti­al In­for­ma­ti­on, in­clu­ding all Work Pro­duct, as de­fi­ned her­ein, and all co­pies the­reof.

15. Blan­ket Purcha­se Or­ders.

If Pro­ducts purcha­sed are co­ver­ed under a blan­ket Order, no ship­ment can be made, or in­voice is­su­ed, until a re­lease Order is is­su­ed. Un­au­tho­ri­zed ship­ments will be held at Sel­ler’s risk and ex­pen­se. A blan­ket Order au­tho­ri­zes Sel­ler to pro­cu­re raw ma­te­ri­als suf­fici­ent to meet de­li­ve­ry of the quan­ti­ty of a re­lease Order, but only to ma­nu­fac­tu­re and de­li­ver such re­spec­ti­ve quan­ti­ties at such re­spec­ti­ve times as is in­di­ca­ted on the re­lease Order pro­vi­ded by Buyer. Buyer will not as­su­me any lia­bi­li­ty in the event Sel­ler en­ga­ges in any ma­nu­fac­tu­re be­fo­re the time spe­ci­fied, or in ex­cess of the quan­ti­ty re­qui­red to meet such re­spec­ti­ve de­li­ve­ries.

16. Chan­ges in Pro­cess or Me­thod of Ma­nu­fac­tu­ring.

Sel­ler agrees that it will not in­vo­ke any chan­ges in pro­cess or me­thod or lo­ca­ti­on of ma­nu­fac­tu­ring wit­hout Buyer’s prior con­sent in wri­ting or in text form. Sel­ler fur­ther agrees that any con­tem­pla­ted chan­ges in pro­cess or me­thod of ma­nu­fac­tu­ring will be sub­mit­ted to Buyer in suf­fici­ent time to en­able Buyer a rea­son­a­ble op­por­tu­ni­ty in which to eva­lua­te such chan­ges.

17. Non-In­ter­fe­rence with Busi­ness.

Du­ring and for a pe­ri­od of two years im­me­dia­te­ly after the ter­mi­na­ti­on or ex­pi­ra­ti­on of this Agree­ment, Sel­ler agrees not to un­la­w­ful­ly in­ter­fe­re with the busi­ness of Buyer in any man­ner, and fur­ther agrees not to so­li­cit or in­du­ce any em­ployee or in­de­pen­dent con­trac­tor to ter­mi­na­te or breach an em­ploy­ment, con­trac­tu­al or other re­la­ti­on­ship with Buyer.

18. Non-Ex­clu­si­ve Agree­ment.

This is not an ex­clu­si­ve agree­ment. Buyer is free to en­ga­ge others to per­form ser­vices or pro­vi­de Pro­ducts the same as or si­mi­lar to Sel­lers. Sel­ler is free to, and is en­cou­ra­ged to, ad­ver­ti­se, offer and pro­vi­de Sel­lers ser­vices and/or goods to others; pro­vi­ded howe­ver, that Sel­ler does not breach this Agree­ment.

19. Li­mi­ta­ti­on of Lia­bi­li­ty.

IN NO EVENT SHALL BUYER BE LIA­BLE TO SEL­LER OR SEL­LERS AGENTS, SUB­CON­TRAC­TORS, OR ANY THIRD PARTY FOR ANY IN­CI­DEN­TAL, IN­DI­RECT, SPE­CIAL OR CON­SE­QUEN­TI­AL DA­MA­GES ARI­SING OUT OF, OR IN CON­NEC­TION WITH, THIS AGREE­MENT, RE­GARD­LESS OF WHE­THER BUYER WAS AD­VI­SED OF THE POS­SI­BI­LI­TY OF SUCH DA­MA­GE AND RE­GARD­LESS OF WHE­THER SUCH DA­MA­GES WERE CAU­SED BY BUY­ERS NE­GLI­GENCE, BREACH OF CON­TRACT, OR OTHER AC­TION­A­BLE CON­DUCT OR OMIS­SI­ON.

20. Pu­bli­ci­ty.

Sel­ler shall not, wit­hout the prior writ­ten con­sent of Buyer, ad­ver­ti­se or other­wi­se dis­c­lo­se that Sel­ler has en­te­red into the Order with Buyer. Sel­ler shall not use Buyer’s name or trade­mark in any press re­lease, mar­ke­ting or ad­ver­ti­sing ma­te­ri­als wit­hout Buyer’s prior writ­ten con­sent.

21. Wai­ver.

No wai­ver of any pro­vi­si­on of these terms and con­di­ti­ons (or any right or de­fault hereun­der) shall be ef­fec­ti­ve un­less in wri­ting and si­gned by Buyer. Any such wai­ver shall be ef­fec­ti­ve only for the in­s­tan­ce given, and shall not ope­ra­te as a wai­ver with re­spect to any other rights or ob­li­ga­ti­ons under the Order or ap­pli­ca­ble law in con­nec­tion with any other in­s­tan­ces or cir­cums­tan­ces.

22. En­ti­re Agree­ment.

These terms and con­di­ti­ons, to­ge­ther with the terms on the face of any Order is­su­ed hereun­der, consti­tu­te the final and en­ti­re agree­ment bet­ween Buyer and Sel­ler with re­spect to the purcha­se of Pro­ducts and su­per­se­de any terms and con­di­ti­ons in any ack­now­led­ge­ment form, in­voice or other do­cu­ment of Sel­ler. These terms and con­di­ti­ons may be amen­ded only by a writ­ten in­stru­ment duly exe­cu­ted by both par­ties, and may not be amen­ded oral­ly or by cour­se of per­for­mance. This also ap­plies to any amend­ment of this pro­vi­si­on re­qui­ring writ­ten form as well as to any wai­ver the­reof.

23. Choice of Law and Ju­ris­dic­tion.

The Order shall be go­ver­ned by and con­stru­ed in ac­cor­dance with the laws of the Fe­de­ral Re­pu­blic of Ger­many, ex­clu­si­ve of the United Na­ti­ons Con­ven­ti­on on the con­tracts for in­ter­na­tio­nal sale of goods and wit­hout re­fe­rence to its choice of law rules. 

The courts com­pe­tent for the city in which the Buyer or any of its af­fi­lia­tes has its re­gis­ter­ed place of busi­ness shall have the ex­clu­si­ve ju­ris­dic­tion over any is­su­es re­la­ting to the Order.

24. As­sign­ment.

Sel­ler may not as­sign, trans­fer or sub­con­tract the per­for­mance of its ser­vices, or any of its rights and/or ob­li­ga­ti­ons hereun­der, wit­hout Buyer’s prior writ­ten con­sent.


IS­SU­ED Au­gust 2017.