Trumbull Industries, Inc.
GENERAL TERMS AND CONDITIONS OF
PURCHASE
1. ACCEPTANCE
Seller has
read and understands this contract and agrees that SellerŐs written acceptance
or commencement of any work or services under this contract shall constitute
SellerŐs acceptance of these terms and conditions only.
2. SHIPPING
AND BILLING
Seller
Agrees: (a) to properly pack, mark and ship goods in accordance with the
requirements of Buyer, the involved carriers, and if applicable the country of
destination; (b) to route shipments in accordance with BuyerŐs instructions;
(c) to make no charge for handling, packaging, storage or transportation of
goods, unless otherwise stated as an item on this contract; (d) to provide with
each shipment packing slips with BuyerŐs contract and/or release number and
date of shipment marked thereon; (e) to properly mark each package with a
label/tag according to BuyerŐs instructions; (f) to promptly forward the
original bill of lading or other shipping receipt for each shipment in accordance
with BuyerŐs instructions. Seller will include on bills of lading or other
shipping receipts correct classification identification of the goods shipped in
accordance with BuyerŐs instructions and the carrierŐs requirements. The marks
on each package and identification of the goods on packing slip, bills of
lading and invoices (when required) shall be sufficient to enable Buyer to
easily identify the goods purchased. Buyer may withhold payment pending receipt
of evidence, in such form and details as Buyer may direct, of the absence of
any liens, encumbrances and claims on the goods or services under this
contract.
3. DELIVERY
SCHEDULES
Time is of
the essence, and deliveries shall be made both in quantities and at times
specified in Buyer schedules. Buyer shall not be required to make payment for
goods delivered to Buyer that are in excess of quantities specified in BuyerŐs
delivery schedules. Buyer may change the rate of scheduled shipments or direct
temporary suspension of scheduled shipments, neither of which shall entitle
Seller to a modification of the price for goods or services covered by this
contract. Where quantities and/or delivery schedules are not specified, Seller
shall deliver goods in such quantities and times as Buyer may direct in subsequent
releases.
4. PREMIUM
SHIPMENTS
If SellerŐs
acts or commissions result in Sellers failure to meet BuyerŐs delivery
requirements and Buyer requires a more expeditious method of transportation for
the goods than the transportation method originally specified by Buyer, Seller
shall ship the goods as expeditiously as possible at SellerŐs sole expense.
5. CHANGES
Buyer
reserves the right at any time to direct changes, or cause Seller to make
changes, to drawings and specifications of the goods or to otherwise change the
scope of the work covered by this contract including work with respect to such
matters as inspection, testing or quality control, and Seller agrees to
promptly make such changes. Any difference in price or time for performance
resulting from such changes shall be equitably adjusted by Buyer after receipt
of documentation in such form and detail as Buyer may direct. Any changes to
this contract shall be made in accordance with paragraph 27.
6.
NONCONFORMING GOODS
Seller
acknowledges that Buyer will not perform incoming inspections of the goods, and
waives any rights to require Buyer to conduct such inspections. To the extent
Buyer rejects goods as nonconforming, the quantities under this contract will
automatically be reduced unless Buyer otherwise notifies Seller. Seller will
not replace quantities so reduced without a new contract or schedule from
Buyer. Nonconforming goods will be held by Buyer in accordance with SellerŐs
instructions at SellerŐs risk. SellerŐs failure to provide written instructions
within 10 days, or such shorter period as may be commercially reasonable under
the circumstances after notice of nonconformity shall entitle Buyer, at BuyerŐs
option, to charge Seller for storage and handling or to dispose of the goods without
liability to Seller. Payment for nonconforming goods shall not constitute an
acceptance of them, limit or impair BuyerŐs right to assert any legal or
equitable remedy, or relieve SellerŐs responsibility or latent defects.
7. FORCE
MAJEURE
Any delay or
failure of either party to perform its obligations shall be excused if Seller
is unable to produce, sell or deliver, or Buyer is unable to accept delivery,
buy or use, the goods or services covered by this contract, as the result of an
event or occurrence beyond the reasonable control of the party and without its
fault or negligence, including but not limited to acts of God, actions by any
governmental authority (whether valid or invalid), fires, floods, windstorms,
explosions, riots, natural disasters, wars, sabotage, labor problems (including
lockouts, strikes and slowdowns), inability to obtain power, material, labor
equipment or transportation, or court injunction or order, provided that
written notice of such delay (including the anticipated duration of the delay)
shall be given by the affected party to the other party as soon as possible
after the event or occurrence (but in no event more than 10 days thereafter).
During the
period of such delay or failure to perform by Seller, Buyer, at its option may
purchase goods and services from other sources and reduce its schedules to
Seller by such quantities, without liability to Seller, or have Seller provide
the goods and services from other sources in quantities and at times requested
by Buyer, and at the price set forth in this contract. In addition, Seller at
its expense shall take such actions as are necessary to ensure the supply of
goods and services to Buyer for a period of at lease 30 days during any
anticipated labor disruption or resulting from the expiration of SellerŐs labor
contract(s). If requested by Buyer, Seller shall with 10 days provide adequate
assurances that the delays shall not exceed 30 days. If the delay lasts more
than 30 days or Seller does not provide adequate assurance that the delay will
cease with 30 days, Buyer may immediately terminate this contract without
liability.
8. WARRANTY
Seller
warrants/guarantees that the goods covered by this contract will conform to the
specifications, drawings, samples or descriptions furnished to or by Buyer, and
will be merchantable of good material and workmanship and free from defect. In
addition, Seller acknowledges that Seller knows of Buyers intended use and
warrants/guarantees that all goods covered by this contract that have been selected,
designed, manufactured or assembled by Seller based upon BuyerŐs stated use
will be fit and sufficient for the particular purposes intended by Buyer, The
warranty period shall be that provided by applicable law, except that if Buyer
offers a longer warranty to its customers for goods installed on vehicles, such
longer period shall apply.
9. INGREDIENTS
DISCLOSURE SPECIAL WARNINGS AND INSTRUCTIONS
If requested by Buyer, Seller shall
promptly furnish to Buyer in such form and detail as Buyer may direct: (a) a
list of all ingredients in the goods; (b) the amount of all ingredients; and
(c) information concerning any changes in or additions to such ingredients.
Prior to and with the shipment of the goods, Seller agrees to furnish to Buyer
sufficient warning and notice in writing (including appropriate labels on the
goods, containers and packing) of any hazardous material that is an ingredient
or a part of any of the goods, together with such special handling
instructions
as may be necessary to advise carriers, Buyer, and their respective employees
of how to exercise that measure of care and precaution that will best prevent
bodily injury or property damage in the handling, transportation, processing,
use or disposal of the goods, containers and packing shipped to Buyer.
10. INSOLVENCY
Buyer may
immediately terminate this contract without liability to Seller in any of the
following or any other comparable events: (a) insolvency of Seller, (b) Filing
of a voluntary petition in bankruptcy by Seller, (c) filing of any involuntary
petition in bankruptcy against Seller, (d) appointment of a receiver or trustee
for Seller, or (e) execution of an assignment for the benefit of creditors by
Seller, provided that such petition, appointment or assignment is not vacated
or nullified within 15 days of such event. Seller shall reimburse Buyer for all
costs incurred by Buyer in connection with any of the foregoing, including, but
not limited to, all attorneys or other professional fees.
11. TERMINATION
FOR BREACH OR NONPERFORMANCE SALE OF ASSETS OR CHANGE IN CONTROL
Buyer
reserves the right to terminate all or any part of this contract without
liability to Seller, if Seller: (a) repudiates or breaches any of the terms of
this contract, including SellerŐs warranties;
(b) fails to
perform services or deliver goods as specified by Buyer; (c) fails to make
progress so as to endanger timely and proper completion of services or delivery
of goods, and does not correct such failure or breach within 10 days (or such
shorter period of time if commercially reasonable under the circumstances)
after receipt of written notice from Buyer specifying each failure or breach.
In addition, Buyer may terminate this contract upon giving at lease 60 days
notice to Seller, without liability to Seller. If Seller, (i) sells, or offers
to sell, a material portion of its assets or (ii) sells or exchanges, or offers
to sell or exchange, or causes to be sold or exchanged, a sufficient amount of
its stock that effects a change in the control of Seller.
12. TERMINATION
FOR CONVENIENCE
In addition
to any other rights of Buyer to terminate this contract, Buyer may, at its
option, immediately terminate all or any part of this contract, at any time and
for any reason, by giving written notice to Seller. Upon such termination Buyer
shall pay to Seller the following amounts without duplication: (a) the contract
price for all goods or services that have been completed in accordance with
this contract and not previously paid for; and (b) the actual costs of work-in-process
and raw materials incurred by Seller in furnishing the goods or services under
this contract to the extent such costs are reasonable in amount and are
properly allocable to apportionable under generally accepted accounting
principles to the terminated portion of this contract; less, however, the sum
of the reasonable value or cost (whichever is higher) of any goods or materials
used or sold by Seller with BuyerŐs written consent, and the cost of any
damaged or destroyed goods or material. Buyer will make no payments for
finished goods, services, work-in-process or raw materials fabricated or
produced by Seller in amounts in excess of those authorized in delivery
releases nor for any undelivered goods that are in SellerŐs standard stock or
that are readily marketable. Payments made under this Paragraph shall not
exceed the aggregate price payable by Buyer for finished goods or services that
would be produced or performed by Seller under delivery or release schedules
outstanding at the date of termination. Except as provided in this Paragraph,
Buyer shall not be liable for and shall not be required to make payments to
Seller, directly or on account of claims by SellerŐs subcontractors for loss of
anticipated profit unabsorbed overhead, interest on claims, product development
and engineering costs, facilities and equipment rearrangement costs or rental
unamortized depreciation of costs, or general and administrative burden charges
from termination of this contract. Within 60 days from the effective date of
termination, Seller shall submit a comprehensive termination claim to Buyer,
with sufficient supporting data to permit BuyerŐs audit and shall thereafter
promptly furnish such supplemental and supporting information as Buyer shall
request. Buyer or its agents shall have the right to audit and examine all
books, records, facilities, work material, inventories and other items relating
to any termination claim of Seller.
13. INTELLECTUAL
PROPERTY
Seller
agrees: (a) to defend, hold harmless and indemnify Buyer its successors and
customers against any claims of infringement (including patent, trademark,
copyright, industrial design right, or other proprietary right or misuse or
misappropriation of trade secret) and resulting damages and expenses (including
attorneyŐs and other professional fees) arising in any way in relation to the
goods or services contracted, including such claims where Seller has provided
only part of the goods or services. Seller expressly waives any claim against
Buyer that such infringement arose out of compliance with BuyerŐs
specification; (b) that Buyer or BuyerŐs subcontractor has the right to repair,
reconstruct or rebuild the specific goods delivered under this contract without
payment of any royalty to Seller, (c) that parts manufactured based on BuyerŐs
drawings and/or specifications may not be used for its own use or sold to third
parties without BuyerŐs express written authorization, and (d) to the extent
that is contract issued for the creation of copyrightable works, the works
shall be considered Ňworks made for hireÓ, to the extent that the works do not
quality as Ňworks made for hireÓ Seller hereby assigns to Buyer all right title
and interest in all copyrights and moral rights herein.
14. TECHNICAL
INFORMATION DISCLOSED TO BUYER
Seller
agrees not to assert any claim (other than a claim for patent infringement)
with respect to any technical information that Seller shall have disclosed or
may hereafter disclose to Buyer in connection with the goods or services
covered by this contract.
15. INDEMNIFICATION
If Seller
performs any work on BuyerŐs premises or utilizes the property of Buyer,
whether on or off BuyerŐs premises, Seller shall indemnify and hold Buyer
harmless from and against any liability, claims, demands or expenses (including
attorneyŐs and other professional fees) for damages to the property or injuries
(including death) to Buyer, its employees or any other person arising from or
in connection with SellerŐs performance of work or use of BuyerŐs property, except
for such liability, claim, or demand arising out of the sole negligence of
Buyer.
16. INSURANCE
Seller shall
maintain insurance coverage with carriers acceptable to Buyer and in the
amounts set forth in the Special Terms. Seller shall furnish to Buyer either
certificates showing compliance with these insurance requirements or certified
copies of all insurance polices with 10 days of BuyerŐs written request. The
certificate will provide that Buyer will receive 30 days prior written notice
from the insurer or any termination or reduction in the amount or scope or
coverage. SellerŐs furnishing of certificates of insurance or purchase of
insurance shall not release Seller of its obligations or liabilities under this
contract.
17. REMEDIES
The rights
and remedies reserved to Buyer in this contract shall be cumulative with, and
additional to, all other or further remedies provided in law or equity. Without
limiting the forgoing, should any goods fail to conform to the warranties set
forth in paragraph 8. Buyer shall
notify Seller and Seller shall if requested by Buyer, reimburse Buyer for any
incidental and consequential damages caused by such nonconforming goods,
including, but not limited to, costs, expenses and losses incurred by Buyer (a)
in inspecting, sorting, repairing or replacing such nonconforming goods; (b)
resulting from production interruptions; (c) conducting recall campaigns or
other corrective service actions; and (d) claims for personal injury (including
death) or property damage caused by such nonconforming goods. If requested by Buyer, Seller will
enter into a separate agreement for the administration or processing for
warranty chargebacks for nonconforming goods.
18. CUSTOMS:
EXPORT CONTROLS
Credits or
benefits resulting or arising from this contract, including trade credits,
export credits or the refund of duties, taxes or fees, shall belong to
Buyer. Seller shall provide all
information necessary (including written documentation and electronic
transition records) to permit Buyer to receive such benefits or credits, as
well as to fulfill its customs related obligations, origin marking or labeling
requirements and local content origin requirements, if any. Export licenses or authorization
necessary for the export of the goods shall be the responsibility of Seller
unless otherwise indicated in this contract in which event Seller shall provide
such information as may be necessary to enable Buyer to obtain such licenses or
authorization(s). Seller shall
undertake such arrangements as necessary for the goods to be covered by any
duty deferral or free trade zone program(s) of the country of import.
19. SETOFF/RECOUPMENT
In addition
to any right of setoff or recoupment provided by law, all amounts due to Seller
shall be considered net of indebtedness of Seller and its
affiliates/subsidiaries to Buyer and its affiliates/subsidiaries and Buyer
shall have the right to setoff against or to recoup from any amounts due to
Seller and its affiliates/subsidiaries.
20. NO
ADVERTISING
Seller shall
not without first obtaining the written consent of Buyer, in any manner
advertise or publish the fact that Seller has contracted to furnish Buyer the
goods or services covered by this contract, or use any trademarks or trade
names of Buyer in SellerŐs advertising or promotional materials.
21. COMPLIANCE
WITH LAWS: FORCED LABOR
Seller, and
any goods or services supplied by Seller, shall comply with all applicable
laws, rules, regulations, orders, conventions, ordinances or standards if the
country(ies) of destination or that relate to the manufacture, labeling,
transportation, importation, exportation, licensing, approval or certification
of the goods or services, including, but not limited to, those relating to
environmental matters, wages, hours and conditions of employment, subcontractor
selection, discrimination, occupational health/safety and motor vehicle safety.
Seller further represents than neither it nor any of its subcontractors will
utilize salve, prisoner or any other form of forced labor in the supply of
goods or provision of services under this contract. At BuyerŐs request Seller
shall certify in writing its compliance with the foregoing. Seller shall
indemnify and hold Buyer harmless from and against any liability claims,
demands or expenses (including attorneyŐs or other professional fees) arising
from or relating to SellerŐs noncompliance.
22. NO
IMPLIED WAIVER
The failure
of either party at any time to require performance by the other party of any
provision of this contract shall in no way affect the right to require such
performance at any time thereafter, nor shall the waiver of either party of a
breach of any provision of this contract constitute a waiver of any succeeding
breach of the same or any other provision.
23. ASSIGNMENT
Unless
otherwise specifically prohibited by the applicable law, Seller may not assign
or delegate its rights or obligations under this contract without BuyerŐs prior
written consent.
24. RELATIONSHIP
OF PARTIES
Seller and
Buyer are independent contracting parties and nothing in this contract shall
make either party the agent or legal representative of the other for any
purpose whatsoever, nor does it grant either party any authority to assume or
to create any obligation on behalf of or in the name of the other.
25. GOVERNING
LAW: JURISDICTION
This
contract is to be construed according to the laws of the country (and
state/province, if applicable) from which this contract is issued as shown by
the address of the Buyer, excluding the provisions of the United Nations
Convention on Contracts for the International Sale of Goods and any conflict of
law provisions that would require application of another choice of law. Any
action or proceedings by Buyer against seller may be brought by Buyer in any
court(s) having jurisdiction over Seller or, at BuyerŐs option in the court(s)
having jurisdiction over BuyerŐs location, in which event Seller consents to
jurisdiction and service of process in accordance with applicable procedures.
Any actions or proceedings by Seller against Buyer may be brought by Seller
only in the court(s) having jurisdiction over the location of Buyer from which
this contract is issued.
26. SEVERABILITY
If any
term(s) of this contract is invalid or unenforceable under any statute, regulation,
ordinance, executive order or other rule of law, such term(s) shall be deemed
reformed or deleted, as the case may be, but not only to the extent necessary
to comply with such statute, regulation, ordinance, order or rule, and the
remaining provisions of this contract shall remain in force and effect.
27. ENTIRE
AGREEMENT
This
contract together with the attachments, exhibits, supplements or other terms of
Buyer specifically referenced in this contract, constitutes the entire
agreement between Seller and Buyer with respect to the matters contained in
this contract and supersedes all prior oral or written representations and
agreements. This contract may only
be modified by a contract amendment issued by Buyer.
Special
Term (U.S.) – Insurance
For
purpose of this Agreement, the insurance coverages required under Paragraph 16
(Insurance) of the General Terms and Conditions are as follows: (a) WorkerŐs
Compensation: statutory limits for the state(s) in which this contract is to be
performed (or evidence of authority to self insure); (b) EmployerŐs Liability:
$500,000 each accident for bodily injury by accident and $500,000 each employee
for bodily injury by disease; (c) Commercial General Liability covering
liability arising from premises, operations, independent contractors,
products/completed operations, personal injury and advertising injury, and
liability assumed under and insured contract: $5,000,000 each occurrence; and
(d) Automobile Liability (including owned, non-owned, and hired vehicles): $5,000,000
each accident.