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SWISSTURN/USA, INC.  

TERMS & CONDITIONS OF SALE 

Form 4.3 D, Rev.—, Revised 8/27/97 

This agreement is to be governed by the laws of the state of Massachusetts. 

QUOTATIONS – Clerical errors are subject to correction.  Orders/contracts are subject to acceptance at Swissturn’s home  office. 

QUANTITIES – Buyer agrees to accept over/under runs not to  exceed 10% of ordered quantity on each line item. Closer control  of quantity requires special arrangements with Swissturn. 

CANCELLATIONS – Orders may be canceled or deliveries  deferred only upon the condition that the buyer assumes  immediate liability and makes payment for all work completed and  in process. Such charges shall include raw material, unamortized  tooling, engineering, handling, overhead, and production costs.  Such charges to be determined at time of cancellation or  deferment.  

Swissturn USA reserves the right to cancel an  order/contract at anytime without penalty if it cannot meet the  requirements of the order/contract. 

DELIVERY/SHIPMENTS – Swissturn shall not be liable for  damages for default or delay in production or delivery for causes  beyond its control, including an accident to or breakdown of its  equipment, labor disputes, embargoes, acts of God, supplier  delays, government restrictions, riot or carrier delays. Bulk  packaging is standard. Buyer shall bear the expense of all other  packaging. 

TAXES – All sale and/or use taxes and Custom duties imposed  by Federal, state, county or municipal authority upon Swissturn’s  transfer and delivery of merchandise hereunder shall be paid by  the buyer. 

PAYMENT TERMS – All sales, if on credit, are net 30 days  from date of shipment, unless otherwise specified on invoice. All  past due accounts accrue interest at 1.5% per month on the  declining unpaid balance or the legal rate of interest, whichever is  less. Interest is added to the past due balance and the total thereof is subject to interest for the next billing cycle and shall continue  accruing interest until paid. The accrual or payment of interest  does not authorize us to defer payment of any indebtedness  beyond the credit terms stated herein or defer payment of any past  due bill. In the event of delinquency of any account, Buyer shall  pay for all collection costs, attorney’s fees and court costs incurred  in collection, regardless of whether judicial action is taken or  otherwise. 

SAMPLES –If requested, Swissturn will submit samples for  approval when commencing production upon any order. It is  understood its machines are to be run immediately. Any changes  in original specifications will be made only at buyer’s direction  and expense. Swissturn will be notified immediately with notice  followed by written confirmation.  

SPECIFICATION – Buyer agrees to provide Swissturn with an  original copy (i.e. not faxed) copy of all required specifications. If  the buyer fails to provide a clear original copy of all  specifications, Swissturn will request a written release from  

responsibility for any product manufactured that does not meet the  specifications. 

CLAIMS – In all claims for shortages, buyer must notify seller  within 15 days of receipt of shipment. The original packaging,  including exterior cartons, must be saved so that Swissturn can  make a claim with the carrier. Charges for repair or inspection of  parts by buyer, without prior written authorization, cannot be  honored. Claims will not be honored on those parts further  processed by buyer resulting in change of dimensions or  characteristics from parts ordered. 

TOOLING – Tools, dies, gages, fixtures are an integral part of  the manufacturing process and included in engineering charges.  As a proprietary item, payment by the buyer, whether separately  quoted or not, conveys neither ownership nor the right of removal  from Swissturn’s possession. 

PATENTS – The products hereunder are manufactured in  accordance with the buyer’s specification and design.  Accordingly, buyer shall defend and save harmless Swissturn from  all damages, claims, actions or suits based upon actual or alleged  infringement of any patent registered in the U.S. or elsewhere.  Indemnity shall include attorneys fees and other costs in defending  such claim. 

WARRANTY – Swissturn warrants that goods manufactured by  it will conform to the drawings and specification furnished by  buyer. Where products are used and combined with other  equipment or components not furnished by Swissturn or further  processed by the buyer, buyer agrees to indemnify  Swissturn USA, Inc. for all claims and expenses resulting from  the use or incorporation into buyer’s products. 

There are no other warranties, expressed or implied, either of  merchantability or fitness for purpose. 

LIMITED LIABILITY – Swissturn’s liability shall be limited to twice the amount of the contract. 

COMPLETE CONTRACT – This agreement constitutes the  entire contract between Buyer and Swissturn USA. No  modification hereof shall be of any force and effect unless in  writing and signed by the party claimed to be bound thereby, and  no modification shall be effected by an acknowledgment or  acceptance by Swissturn USA of a purchase order from Buyer  containing any different terms and conditions, which terms and  conditions, to the extent inconsistent, shall be deemed superseded  by the terms and conditions set forth herein and in the other  documents delivered by Swissturn USA and Buyer. A waiver of  any of the terms or conditions hereof shall not be deemed a  continuing waiver, but shall apply solely to the instance to which  the waiver is directed.

The foregoing states Swissturn’s entire and exclusive liability. In no event will Swissturn be liable for consequential or  special damages arising from any defect or use of its products. This is the whole agreement between the parties; any  representations made by or on behalf of Swissturn USA are void.