Vector Industries Inc.

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AC7102 AC7102/2 AC7102/S , AC7102/5 Heat Treating & Rockwell Hardness testing

PURCHASE ORDER TERMS AND CONDITIONS

1. PACKAGING. No charges allowed for packaging or cartage unless noted on the face of this order. All goods must be so packed as to secure lowest possible freight rates and must be shipped by cheapest means possible, unless otherwise noted. Buyer shall be notified as soon as possible when shipments will be made and of shipments made.

2. PATENT WARRANTY. To the extent the articles to be furnished hereunder are not manufactured pursuant to design originated by the Buyer, the Seller, by accepting this order, warrants that the sale or use of any and all articles or materials delivered hereunder will not infringe any United States, or Foreign patent and agrees that he will at his sole cost and expense defend any action, suit or claim in which a violation of patent rights is alleged with respect to the sale or use of any material or articles ordered hereby, and that he will hold harmless the Buyer and its customers, and either of them, for any loss, damage or liability incurred on account of any violation or alleged violation of patent rights with reference to the materials or articles ordered hereby.

3. MATERIAL & WORKMANSHIP. Seller represents, warrants and guarantees that all articles or materials delivered hereunder shall be free from defects of material or workmanship and that such articles or materials when delivered will conform to specifications, drawings and descriptions specified. The warranties and guarantees here set forth and the service warranties of Seller to Buyer and its customers, and either of them.

4. INSPECTION. Buyer shall have the right to inspect all materials ordered in Seller's plant before shipment and in its own plant after delivery by Seller. If reference to a contract with or for the United States Government, or any agency thereof appears on the face or this order, the articles or materials ordered hereby shall also be subject to inspection of any officer of the United States or its agencies authorized to make such inspection. Buyer may reject any and all articles or materials not conforming to plans, specifications or descriptions. Such rejected material held by the Company pending Seller's disposition will be at Seller's risk.

5. COMPLIANCE WITH LAWS, RULES, & REGULATIONS. Seller agrees to comply with all applicable State, Federal, and local laws in the purchase, manufacture, processing, and delivery of the articles or materials ordered hereby. All pertinent Federal Regulations apply to this order to the extent applicable.

6. CHANGES. No change or modification on the face of this order or by agreement or otherwise shall be binding upon Buyer until accepted in writing by its authorized representative. The Buyer shall have the right to make changes in drawings, plans or specifications relating to articles on order or in the place of delivery of said articles, and the Seller shall comply with such changes immediately upon notification thereof. If any such change causes any increase or decrease in the cost of said articles, an equitable adjustment shall be made between Buyer and Seller and the order modified in writing accordingly. All claims for adjustments in prices resulting from such changes must be made within thirty days from notice thereof.

7. Further SUB-CONTRACTING on this order is restricted and any exceptions are to be approved by Buyer in Writing.

8. ASSIGNMENT. Neither this purchase nor any interest therein shall be assigned or transferred without prior written approval of Buyer. Buyer reserves the right, and it may at any time assign this purchase order, and any and all rights hereunder to whomever it may deem necessary.

9. CANCELLATION. Buyer reserves the right to cancel this order without penalty of charges if prices or deliveries specified by the Seller upon the acknowledgement copy of this order are unsatisfactory or if shipments are not made as Promised. Buyer further reserves the right to cancel a portion or all of this order for any reason upon payment of all agreed reasonable cost and a reasonable profit based upon such costs.

10. CONFIDENTIAL. Seller shall not disclose any details connected herewith to any third party without written consent of Buyer.

11. TOOLS AND MATERIAL. The Seller is to furnish all standard tools, taps, dies, cutters, gauges, and fixtures. Buyer will furnish special tools for Seller's convenience where these are available but it is expressly understood that in so doing Buyer makes no guarantee whatsoever as to the accuracy of the tools furnished. By the acceptance of this order, Seller agrees to furnish the items ordered in accordance with drawings and applicable specifications. No designs, tools, patterns, or drawings supplied by Buyer to Seller for use in manufacture of articles contracted for herein shall be used in the production, manufacture, or design of any other articles for any other Buyer nor for the maintenance or production of larger quantities than those specified except with the express consent in Writing of Buyer. At the Termination of this contract they, together with all excess materials, shall be disposed of as Buyer shall direct. All such designs, tools, patterns, drawings, and materials supplied by Buyer shall be segregated by Seller in Seller's plant and wherever possible clearly marked so as to be easily identified as belonging to Buyer. Where materials are furnished by Buyer, title to and/or the right of immediate possession of such materials in all stages of construction shall be and remain in Buyer.

12. INSURANCE, RISK OF LOSS AND STATUS OF SELLER. All materials, tools, designs, patterns, drawings, and other personal property belonging to Buyer, furnished by Buyer to Seller and located in the State of Washington, shall be at Seller's risk from loss or damage from all hazards, except that Buyer, for Buyers sole benefit shall insure such materials, etc., against loss or damage resulting from fire, lighting, cyclone, tornado, windstorm, and hail, explosion, earthquake, aircraft or vehicles, smoke, sprinkler leakage, flood, strike, riot, and civil commotion, and vandalism, and malicious mischief, but such insuring shall not relieve seller from liability for seller's negligent acts or omissions. All such materials, etc., while in Seller's possession outside of the State of Washington shall be at Seller's sole risk from all hazards. In the event that Seller is required to enter premises owned, leased, occupied by, or under the control of Buyer during the performance of services ordered by hereunder or during delivery or installation of the materials or articles herein contemplated or during the performance of services otherwise required to be furnished by Seller, Seller agrees that Seller will, before coming upon such premises, obtain and keep insurance coverage indemnifying and holding harmless Buyer, its officers, and employees from any liability or loss by reason of property damage or personal injury of whatsoever nature of kind occurring during or as a result of the performance of such services and/or delivery and/or installation. Such insurance shall be in standard form for property damage and public liability and in reasonable limits.

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