Terms & Conditions of Sale

C PRODUCTS DEFENSE, INC. TERMS AND CONDITIONS OF SALE 

1. Acceptance. The  following  terms  and  conditions  of  sale  are  applicable  to  all  sales  of Products  or  Services,  and  all  quotations,  order  acknowledgements,  and invoices  from C Products  Defense,  Inc.,  (“Seller”)  and  to  all  Purchase  Orders  from  Seller’s  customers (“Purchasers”)  and  are  the  only  terms  and  conditions  applicable  to  the  sale  of  Seller’s Products or Services, except those relating solely to prices, quantities, delivery schedules, terms  of  payment,  invoicing,  shipping  instructions,  or  descriptions  of  the  products  set forth  in  Purchaser’s  Purchase  Orders  (collectively,  “Purchase  Order  Terms”).  Purchase Orders, if  accepted  by Seller,  are  accepted  subject  to  the  terms  and  conditions  set  forth herein.  SELLER  HEREBY  REJECTS  ANY  ADDITIONAL  OR  DIFFERENT  TERMS  OR CONDITIONS  PROPOSED  BY  PURCHASER,  WHETHER  OR  NOT  CONTAINED  IN  ANY  OF PURCHASER’S BUSINESS FORMS OR IN PURCHASER’S WEBSITE, AND SUCH ADDITIONAL OR DIFFERENT TERMS AND CONDITIONS SHALL BE VOID AND OF NO EFFECT UNLESS IN A WRITING SPECIFICALLY AGREED TO BY SELLER SPECIFICALLY REFERRING TO AND AGREEING TO THE CHANGE. Purchaser’s acceptance of Products or Services (“Products or Services”) called for in said Purchase Order shall constitute its acceptance of the following terms and conditions of sale (these “Terms and Conditions”). Any changes to these terms and conditions must be in writing clearly identifying the change and signed by Seller. 

2. Quotations. Quotations  are  only  valid  in  writing  and  for  30  days  from  the  date  of  the quotation  unless  otherwise  notified.  All  quotations  by  Seller  are  subject  to  change  or withdrawal without prior notice  to Purchaser unless otherwise specifically stated in  the quotation. Quotations are made subject to approval by Seller of Purchaser’s credit. Seller shall  have  no  obligation  to  sell  or  deliver  Products  or  Services  covered  by  Seller’s quotation  unless  and  until  Seller  issues  an  order  acknowledgement  form  or  upon  the shipment of Products or commencement of Services by Seller. 

3. Prices.  Prices  are  in  U.S.  Dollars  and  are  subject  to  change  without  notice.  Prices  may change based on many factors including exchange rate movements and raw material costs not  foreseen  at  time  of  Purchase  Order  acceptance.    Furthermore,  if  there  is  an unforeseen change in U.S. Government and/or Foreign Government Trade Policy (i.e. duty, tariffs, etc.), Seller reserves the right to pass through a surcharge to Purchaser. Purchaser agrees to accept such price increases or surcharges for the term of such price increase or surcharge or  the  termination of  the contract  to which  these  terms and conditions apply. Time of payment is of the essence. All orders are accepted subject to Seller’s price in effect at time of shipment. 

4. Terms of Payment. The inspection rights granted to Purchaser will not affect or alter the payment terms or the timing of Purchaser’s payment obligations. Under no circumstances will  Purchaser  have  a  right  of  set-off.  Seller  shall  have  the  right  to  offset  its  payables against  its  receivables  related  to  goods  or  services  purchased  from  Seller.  Unless otherwise expressly agreed to by Seller in writing, terms of payment are 30 days net from the  date  of  Seller’s invoice.  No  discount  shall  be  allowed  on  transportation  charges. 

Purchaser agrees to pay interest on overdue invoices at the rate of 1 ½ % per month, but  not higher than the highest rate permitted by law. If Purchaser fails to make any payment  as  required,  Purchaser  agrees  to  indemnify  Seller  for  all  costs  and  expenses,  including  reasonable attorney fees, court costs, and associated expenses incurred by Seller.  

5. Credit Approval. All shipments to be made hereunder shall at all times be subject to the  approval of Seller’s credit department. Seller may invoice Purchaser and recover for each  shipment made pursuant to these Terms and Conditions as a separate transaction without  regard  to  any  other  order  or  agreement  with  Seller,  or if, in  Seller’s  sole  judgment, the  financial responsibility of Purchaser is or becomes unsatisfactory,  then Seller may, at its  option and without prejudice to any of its other remedies, (a) defer or decline to make any  shipments  hereunder  except  upon  receipt  of  satisfactory  security  or cash  payments  in  advance, and / or (b) terminate all Purchase Orders of Purchaser. 

6. Cancellation. Once  Seller  has  either  accepted  a  Purchase  Order  or  has  begun  taking  actions  with  respect  to  such  Purchase  Order,  such  Purchase  Order  cannot  be  canceled,  terminated or modified by Purchaser in whole or in part except with Seller’s consent in  writing and  then only upon  terms and conditions  to be agreed upon which shall include  protection  of  Seller  against  all  losses.  Purchaser  shall  indemnify  Seller  for  any  costs  incurred, including material and labor costs, in connection with any Purchase Order that  Purchaser desires to cancel, terminate or modify.  

7. Inspection / Non – Conforming Shipments. Seller grants Purchaser the right to inspect  Products  for  a  period  of  fifteen  (15)  business  days  immediately  following  delivery  (“Inspection Period”). Purchaser must notify Seller of any Products that do not conform to  the  terms  applicable  to  their  sale  within  the  inspection  period,  and  afford  Seller  a  reasonable  opportunity to  inspect  such  Products  and  cure  any  nonconformity.  If  Purchaser  fails  to  provide  Seller  with  written  notice  of  nonconformity  within  the  Inspection  Period,  Purchaser  shall  be  deemed  to  have accepted  the  Products.  Purchaser  will have no right to return any Product without Seller’s prior written authorization. Any  return authorized by Seller must be made in accordance with Seller’s return policies then  in  effect  and must  be  accompanied  by  a  Returned Material  Authorization  (“RMA”)  from  Seller.  Purchaser  will be  responsible  for  all  costs  and  expenses  associated  with  any  returns of Products and will bear the risk of loss or damage of such Products, unless Seller  agrees  otherwise  in  writing  or  determines  that  the  Products  do  not  conform  to  the  applicable terms of sale. Seller, in its sole discretion may reject any return of Product not  approved  by  Seller  in  accordance  with  this  paragraph  or  otherwise  not  returned  in  accordance with Seller’s then current-return policies.  

8. Title  / Risk of Loss  / Delivery. Unless  other  arrangements  are made in writing,  Seller  anticipates  use  of  common  carriers  for  transport  of  Products.  Unless  specifically  otherwise provided in Seller’s invoice, the carrier, and not Seller, will bill for freight rates  and  other  transportation  charges.  Such  payments  are  solely  the  responsibility  of  the  Purchaser,  to  be  paid  directly  by  the  Purchaser  to  the  carrier.  All  Products  shall  be  shipped F.O.B. Seller’s plant and shall become the property of Purchaser upon delivery to  the carrier. Purchaser shall assume all risk and liability for loss, damage, or destruction, as  well  as  the  results  of  any  use  or  misuse  by  third  parties  who  may  acquire  or  use  the  Products illicitly after  the delivery  to  the carrier. Unless mutually agreed upon, shipping  dates are approximate and are  based  upon  prompt  receipt  of all  necessary information.  Seller reserves the right to ship items in a single or multiple shipments.  

9. Damage. Purchaser  shall  notify  Seller  and  the  delivering  carrier  within  fifteen  (15)  business  days  from  date  of  receipt  of  Products,  of  any  damage  or  shortage,  and  afford  Seller a reasonable opportunity to inspect the Products. Any loss occasioned by damage or shrinkage in transit will be for Purchaser’s account and claims for such loss shall be made  solely against the carrier.  

10. Quantities. Unless otherwise agreed in writing, any variation in quantities shipped over  or  under  the  quantities  ordered  (not to  exceed  10%)  shall  constitute  compliance  with  Purchaser’s Order and the stated price per item will continue to apply.  

11. Warranty. SELLER  WARRANTS  ONLY  THAT  THE  PRODUCTS  OR  SERVICES  SOLD  HEREUNDER (A) WILL CONFORM TO THE DESCRIPTION, IF ANY, ON THE FACE HEREOF,  (B)  WILL  BE  CONVEYED  FREE  AND  CLEAR  OF  ANY  LIEN,  SECURITY  INTEREST  OR  ENCUMBRANCE  CREATED  BY  SELLER  OR ANY  PARTY  CLAIMING  BY,  THROUGH  OR  UNDER  SELLER,  AND  (C) WILL  BE  FREE  FROM  SUBSTANTIAL  DEFECTS  IN  MATERIAL  AND  WORKMANSHIP  UNDER  NORMAL  USE  GIVEN  PROPER  INSTALLATION  AND  MAINTENANCE  FOR  A  PERIOD  OF  365  DAYS FROM  DATE  OF  MANUFACTURE.  

SELLER  SHALL  HAVE  THE RIGHT  EITHER  TO  REPLACE  OR  REPAIR  ANY  DEFECTIVE  PRODUCTS,  TO REFUND  THE  PURCHASE  PRICE UPON  RETURN OF  THE  PRODUCTS OR  TO  GRANT  A  REASONABLE  ALLOWANCE  ON  ACCOUNT  OF  SUCH  DEFECTS,  AND  SELLER’S  LIABILITY  AND  PURCHASER’S  EXCLUSIVE  REMEDY  FOR  DEFECTIVE  PRODUCTS  SHALL  BE  LIMITED  SOLELY  TO  REPLACEMENT,  REPAIR,  REFUND  OR  ALLOWANCE  AS  SELLER  MAY  ELECT.  

SELLER SHALL BE GIVEN A REASONABLE OPPORTUNITY TO INVESTIGATE ALL CLAIMS  AND NO PRODUCTS SHALL BE RETURNED TO SELLER UNTIL AFTER  INSPECTION AND  APPROVAL BY SELLER AND RECEIPT BY PURCHASER OF A RMA.  

12. Disclaimer of Further Warranties. EXCEPT AS SET FORTH ABOVE, SELLER MAKES NO WARRANTY OR REPRESENTATION OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING NO  WARRANTY  OF  MERCHANTABILITY  OR  FITNESS  FOR  ANY  PARTICULAR  PURPOSE)  WITH RESPECT TO ITS PRODUCTS OR SERVICES.  

13. Limitation  of  Liability  and  Remedies. SELLER  SHALL  NOT  BE  LIABLE,  AND  PURCHASER  WAIVES  ALL  CLAIMS  AGAINST  SELLER,  FOR  INCIDENTAL,  SPECIAL,  PUNITIVE  OR  CONSEQUENTIAL  DAMAGES,  LOST  PROFITS  OR  COMMERCIAL  LOSSES,  WHETHER OR NOT BASED UPON SELLER’S NEGLIGENCE OR BREACH OF WARRANTY OR  STRICT  LIABILITY  IN  TORT  OR  ANY  OTHER  CAUSE  OF  ACTION.  SELLER WILL NOT  BE  LIABLE TO PURCHASER FOR ANY LOSS, DAMAGE, OR INJURY TO PERSONS OR PROPERTY  RESULTING  FROM  THE HANDLING,  STORAGE,  TRANSPORTATION,  RESALE,  OR  USE  OF  ITS  PRODUCTS  IN  MANUFACTURING  PROCESSES,  OR  IN  COMBINATION  WITH  OTHER  SUBSTANCES, OR OTHERWISE.  IN NO EVENT WILL SELLER’S  LIABILITY UNDER THESE  TERMS  AND  CONDITIONS  OR  IN  CONNECTION  WITH  THE  SALE  OF  PRODUCTS  BY  SELLER EXCEED THE PURCHASE PRICE OF THE SPECIFIC PRODUCTS OR SERVICES AS TO  WHICH THE CLAIM IS MADE.  

14. Inventory. Except  as  provided  in  Sections  7  and  11  hereof,  Seller  will  neither  accept  return of Product, nor be responsible for its destruction.  

15. Technical  Data. All  physical  properties,  statements  and  recommendations  are  either  based  on  the  tests  or  experience  that  Seller  believes to  be  reliable,  but  they  are  not  guaranteed.  

16. Product Use. Purchaser is solely responsible  for determining whether any Product is  fit  for a particular purpose and suitable  for Purchaser’s method of application. Accordingly,  and due to the nature and manner of use of Seller’s Products, Seller is not responsible for  the results or consequences of use, misuse or application of its Products by anyone. 

17. Tooling / Molds / Dies. Unless otherwise agreed in writing signed by Seller, all material,  equipment, facilities, and special tooling, (which term includes but is not limited to tools,  jigs, dies, fixtures, molds, patterns, special taps, special gauges, special test equipment, and  manufacturing aids and  replacements  thereof), used in  the manufacture  of  the Products  covered by any Purchase Order shall remain the property of Seller. Any material, tooling,  or equipment furnished to Seller by Purchaser shall be and remain the personal property  of Purchaser with the title to and right of possession remaining in Purchaser.  

18. Taxes. Purchaser shall pay  to Seller, in addition  to  the purchase price,  the amount of all  fees, duties, licenses, tariffs, and all sales, use, privilege, occupation, excise, or other taxes,  federal, state, local or foreign, which Seller is required to pay or collect in connection with  the Products or Services sold to Purchaser. Failure by the Seller to collect any such fees or  taxes shall not affect Purchaser’s obligations hereunder and Purchaser shall fully defend,  indemnify and hold harmless Seller with respect to such tax obligations.  

19. Ownership  of  Intellectual  Property. All  drawings,  know-how,  designs,  specifications,  inventions,  devices, developments,  processes,  copyrights  and  other  information  or  Intellectual Property disclosed or otherwise provided to Purchaser by Seller and all rights  therein (collectively, “Intellectual Property”) will remain the property of Seller and will be  kept confidential by Purchaser in accordance with these terms and conditions. Purchaser  shall  have  no  claim  to,  nor  ownership  interest  in,  any  Intellectual  Property  and  such  information, in whatever form and any copies thereof, shall be promptly returned to Seller  upon written request from Seller. Purchaser acknowledges that no license or rights of any  sort  are  granted  to  Purchaser  hereunder  in  respect  of  any  Intellectual  Property,  other  than the limited right to use the Seller’s proprietary Products purchased from Seller.  

20. Confidential  Information. All  information  furnished  or  made  available  by  Seller  to  Purchaser  in  connection  with  the  subject  matter  of  these  Terms  and  Conditions  or  of  Purchaser’s  Purchase  Order  shall  be  held  in  confidence  by  the  Purchaser.  Purchaser  agrees not to use such information or disclose such information to others without Seller’s  prior written consent. The obligations in this paragraph will not apply to any information  which (a) at  the  time of disclosure was or  thereafter becomes, generally available  to  the  public by publication or otherwise through no breach by the Purchaser of any obligation  herein, (b) the Purchaser can show by written records was in the Purchaser’s possession  prior  to  disclosure  by  Seller,  or  (c)  is  legally  made  available  to  the  Purchaser  by  or  through a third party having no direct or indirect confidentiality obligation to Seller with  respect to such information.  

21. Infringement  and  Indemnification. (a)  Except  as  set  forth  below,  Seller  agrees  to  defend, indemnify  and  hold  the  Purchaser  harmless  against  any  claims,  costs,  damages,  liability and expenses resulting from actual patent, trademark, or copyright infringement,  misappropriation  of  confidential  information,  or  violation  of  any  other  Intellectual  Property  right,  domestic  or  foreign,  that may  arise  from  the  sale  of  Seller’s  proprietary  Product  to  the  Purchaser  as  such  pertains  to  the  subject  matter  of  these  Terms  and  Conditions  (provided  that  Product  is  not  modified  in  any  way  by  the  Purchaser  or  any  other  party, and that  the  Product is  used in  the manner intended  by Seller).  If a  suit  or  claim  results  in  any  injunction  or  any  other  order  that  would  prevent  Seller  from  supplying any part or Product falling under these Terms and Conditions, or if the result of  such a suit or claim would, in the reasonable opinion of Seller, otherwise cause Seller to be  unable  to supply such parts or Products, Seller shall have  the  right, at its option, if it so  chooses,  to do  one  or more  of  the  following:  (i)  secure an appropriate license  to permit  Seller  to  continue  supplying  said  parts  or  Products  to  Purchaser;  (ii)  modify  the  appropriate  part or  Product  so  that  it  becomes  non-infringing;  (iii)  replace  the appropriate  part  or  Product  with  a  non-infringing  but  practically  equivalent  part or  Product;  or  (iv)  if  the  Seller  cannot  reasonably  accomplish  the  actions  specified  in  subparagraphs (i) – (iii), then in Seller’s sole discretion, Seller may discontinue selling the  part or Product without any further liability to Purchaser. (b) Purchaser agrees to defend,  indemnify  and  hold  Seller  harmless  against  any  claims,  costs,  damages,  liability  and  expenses  resulting  from  actual  or  alleged  patent,  trademark,  or  copyright infringement,  misappropriation  of  confidential  information,  or  violation  of  any  other  Intellectual  Property right, domestic or foreign, that may arise from the making, using or selling of any  part or Product or using any process that is designed or specified by the Purchaser. (c) If  any claim is made by a  third party on  the basis of which indemnification may be sought  under this paragraph, the party entitled to indemnification (the “Indemnified Party”) shall  give  written  notice  of  such  claim  to  the  party  liable  for  such  indemnification  (the  “Indemnifying  Party”)  promptly  after  the  Indemnified  Party  has  actual  notice  of  such  claim. The Indemnifying Party shall have the right to defend and/or settle such claim at its  expense, provided that it does so diligently and in good faith. The Indemnified Party shall  cooperate with such defense and/or settlement and shall have the right to participate in  (but not to control) such defense and/or settlement at its expense. No settlement shall be  entered  into  unless  the  Indemnified  Party  shall  be  released  from  all  liability  for  such  claim.  

22. Force Majeure. Seller shall not be liable for failure to perform or delay in performance or  delivery  of  any  Products  or  Services  due  to  (a)  fires,  floods,  strikes,  or  other  labor  disputes,  accidents,  sabotage,  terrorism,  war,  riots,  acts  of  precedence  or  priorities  granted at the request or for the benefit, directly or indirectly, of any federal, state or local  government  or  any  subdivision  or  agency  thereof,  delays  in  transportation  or  lack  of  transportation  facilities,  restrictions  imposed  by  federal,  state  or local  laws,  rules  or  regulations;  or  (b)  any  other  cause  beyond  the  control  of  Seller.  In  the  event  of  the  occurrence of any of  the  foregoing,  the  time  for performance shall be extended  for such  time as may be reasonably necessary to enable Seller to perform. Seller may, during any  period of shortage due to any of the above circumstances, allocate its available supply of  Products  or  Services  among  itself  and  its  Purchasers  in  such  manner  as  Seller,  in  its  judgment, deems fair and equitable.  

23. Assignment and Delegation. No assignment of any rights or interest or delegation of any  obligation  or  duty  of  Purchaser  under  these  terms  and  conditions,  Seller’s  quotation,  order acknowledgement, or invoice, or Purchaser’s Purchase Order may be made without  the prior written consent of Seller. Any attempted assignment or delegation will be wholly  void and totally ineffective for all purposes.  

24. Integration Clause. These Terms and Conditions constitute  the  terms and conditions  to  the  contract  of  sale  and  purchase  between  Seller  and  Purchaser  with  respect  to  the  Products covered by these Terms and Conditions, and supersedes any prior agreements,  understandings,  representations  and  quotations  with  respect  thereto.  No  modification  hereof shall be of any force or effect unless in writing and signed by the party claiming to  be bound thereby.  

25. Waiver. No  failure  of  Seller  to  insist  upon  strict  compliance  by  Purchaser  with  these  terms and conditions or to exercise any right accruing from any default of Purchaser shall  impair Seller’s  rights in case Purchaser’s default continues  or in case  of any  subsequent  default  by  Purchaser.  Waiver  by  Seller  of  any  breach  by  Purchaser  of  these  terms  and  conditions shall not be construed as a waiver of any other existing or future breach.  

26. Limitation of Actions. Notwithstanding any contrary statute of limitations, any cause of  action  for  any  alleged  breach of  these  terms  and  conditions  by  Seller  shall  be  barred unless  commenced  by  Purchaser  within  one  (1)  year  from  the  accrual  of  such  cause  or  action.  

27. Litigation  Costs. If  any  litigation  or  arbitration  is  commenced  between  Seller  and  Purchaser concerning any provision of  these Terms and Conditions,  the party prevailing  in the litigation or arbitration is entitled, in addition to such other relief that is granted, to  a reasonable sum as and for their attorney’s fees in such litigation or arbitration, provided 

that if each party prevails in part, such fees shall be allocated in such manner as the court  or arbitrator shall determine to be equitable in view of the relative merits and amounts of  the parties’ claims.  

28. Choice of Laws. Any dispute arising out of or related to these Terms and Conditions shall  be governed by and construed according to the laws of the State of FLORIDA and litigated  exclusively in a state or federal court located in Manatee County, FL.  The parties hereby  agree to the exclusive jurisdiction and venue of such courts.  

29. Jury Waiver. The parties hereto expressly release and waive any and all rights to a jury  trial and consent to have any dispute heard solely by a Court of competent jurisdiction.  

30. Severability. If  any  provision  herein  shall  be held  to  be  unlawful  or  unenforceable,  the  remaining provisions herein shall remain in full force and effect.