STANDARD PURCHASE ORDER
-TERMS AND CONDITIONS
to the extent otherwise agreed to in a separate written agreement signed by
Buyer and Seller, these Standard Terms and Conditions, set out below, shall
apply to all purchases of Goods or Services under purchase orders or other
similar documents (hereafter each such purchase of Goods or Services referred
to, with the appropriate cover page, order form, or similar or other
documentation, as a "Purchase Order”).
Parts A and C shall apply to purchases of Goods by Buyer.
Parts B and C shall apply to purchases of Services by Buyer.
Parts A, B and C shall apply to purchases of Services which are provided by
Seller in connection with what is otherwise a purchase of Goods by Buyer.
means: (i) the person selling the Goods directly to Buyer or (ii) the primary
contractor responsible for providing the Services to Buyer.
includes equipment, materials, supplies and other goods to be provided by
Seller to Buyer under this Purchase Order, whether or not specifically set out
on the cover page, order form or other documentation (each and collectively
"cover page") which is part of this Purchase Order, as
well as where applicable all specifications, instructions and installation,
operating and maintenance manuals necessary for the installation, operation and
maintenance of the Goods.
includes all labor, work and other services to be provided by Seller to Buyer
under this Purchase Order, whether or not specifically set out any document
which is part of this Purchase Order.
Point” means the point at which Goods are to be delivered by Seller
to Buyer, as shown in this Purchase Order or as otherwise agreed to by the
parties in writing.
Terms and Conditions applicable to the Purchase of Goods
Seller shall provide the Goods to the Buyer in accordance with the
terms and conditions of this Purchase Order, in the event of any inconsistency
between these Standard Terms and Conditions and the other terms and conditions
of this Purchase Order, these Standard Terms and Conditions shall govern.
Seller represents and warrants that the Goods supplied hereunder (i) shall
be of the kind and quality specified herein, free from fault in design,
workmanship and material, (ii) shall be new and of good and merchantable
quality, (iii) are suitable and fit for the purpose for which they shall be
used, (iv) shall perform in accordance with the specifications and drawings, if
any, provided by the Buyer or otherwise referred to, or incorporated, in the
Purchase Order, (v) shall
not constitute an infringement or contributory infringement of any
patent or any copyright or trademark, or violation of any trade secret when
sold or used for their ordinary intended purpose. All Goods provided under this
Purchase Order shall be delivered free from all liens, encumbrances or other
charges. All Goods shall at all times be subject to Buyer's inspection but
neither Buyer's inspection nor failure to inspect shall relieve Seller of any
obligations hereunder or constitute a waiver of any of Buyer's rights or
warranties of Seller. If any Goods fail to conform with specifications or
drawings or are otherwise defective, then: (i) Buyer may, in its sole
discretion reject all or any portion of the non-conforming or defective Goods
purchased under this Purchase Order, and they may be (A) held at Seller's risk or
(B) returned upon notice, and at Seller's cost to Seller and Buyer shall be
entitled to a refund in full, or (ii) at Buyer's option, Seller shall promptly
repair or replace same at Seller’s sole expense.
The warranties in this Section 1 Warranties shall continue in
full force and effect for a period of: (i) eighteen (18) months from the date
of transfer of title to Goods, or (ii) twelve (12) months from the date of
start-up of the Goods or start-up of the equipment into which the Goods are
incorporated, whichever period ends last.
Where Goods are repaired or replaced under the above warranties, such
Goods shall be warranted for a new period of: (i) eighteen (18) months from the
date of completion of such repair or replacement, or (ii) twelve (12) months
from the date of restart-up of the Goods or restart-up of the equipment into
which the Goods are incorporated, whichever period ends last.
Buyer shall be entitled to the benefit of any of Seller's service
warranties and guaranties customarily offered by Seller, in addition to those
warranties set forth above.
Seller shall bear all costs for removal, repair, replacement and reinstallation
of Goods under the above warranties.
To the fullest extent permitted by law Seller herewith assigns and
transfers to Buyer all right to, and benefit from, any and all manufacturers'
or suppliers' warranties (each and collectively "Manufacturer's Warranty")
that apply or otherwise relate to any Goods provided under this Purchase Order.
Seller shall fully cooperate with and assist Buyer in making any claim under
any Manufacturer's Warranty. Any claim by Buyer under a Manufacturer's
Warranty shall not: (i) prevent Buyer from (A) making a claim under any other
warranty or (B) otherwise seeking to protect its rights; and (ii) limit or
restrict Buyers rights or remedies in law or at equity.
Acceptance of, or payment for, the Goods delivered under this Purchase
Order shall not constitute a waiver by Buyer of any of the warranties of
Seller, either express or implied, and shall not be deemed to alter or affect
the obligations of Seller or rights of Buyer under any of such warranties,
either express or implied, nor shall acceptance of, or payment for, any Goods
constitute a waiver of any of Buyer's rights or remedies either contained
herein, or in law or at equity.
All warranties and the benefits thereof will run to Buyer, its
successors, assigns and customers.
To the extent the Goods will be sold into or distributed in the U.S.,
Seller warrants that its manufacturing facility (and any other facility that
may be approved for use by Buyer for the manufacture, processing, packing or
storage of product inputs or Goods) (the “Facility”) is registered with the
U.S. Food and Drug Administration as required by the Public Health Security and
Bioterrorism Preparedness and Response Act of 2002 and regulations promulgated
thereunder (the “the Bioterrorism Act”). Seller will comply with all the
recordkeeping requirements of the Bioterrorism Act applicable to
“Non-Transporters” with respect to the Goods.
Upon request of Buyer, Seller shall determine whether any Products
contain tin, tantalum, tungsten, gold or any other material that is designated
under applicable rules of the Securities and Exchange Commission
("SEC") as a "conflict mineral." If no Product contains
one or more conflict minerals that are necessary to the functionality or
production of such Product within the meaning of applicable SEC rules and
interpretations, Seller shall, upon request, certify to Buyer that none of the
Products contains such conflict minerals. If any Product contains one or more
such conflict minerals, Seller shall certify to Buyer the country of origin of
any such conflict mineral or that the conflict mineral came from recycled or
scrap sources within the meaning of those terms under applicable SEC rules. If
Seller is unable to identify the country of origin, and the conflict mineral(s)
in question did not come from recycled or scrap sources, Seller shall in good
faith conduct an inquiry of its relevant suppliers as to the country of origin
of such conflict minerals, and such inquiry shall comply with then-existing
standards under SEC rules for the conduct of a reasonable country of origin
inquiry. In the event that Seller is or becomes aware that any conflict
minerals that are necessary to the functionality or production of any Products
originated from a "covered country" within the meaning of the SEC's
conflict minerals rules and did not come from recycled or scrap sources, Seller
shall make a good faith effort to determine whether such conflict minerals came
from a processing facility certified as conflict free by a recognized industry
group that requires an independent private sector audit of the smelter or from
an individual processing facility that has obtained an independent private
sector audit that is publically available, and to provide written documentation
of such determination. Seller shall also take such additional actions and
provide such additional information requested by Buyer as may be necessary in
order for Buyer to be or remain compliant with applicable laws, rules and
regulations relating to conflict minerals.
The warranties set forth or referred to herein are in addition to all
rights and remedies Buyer may have in law or at equity.
Seller shall provide Buyer with not less than forty five (45) days
advance written notice of any changes in or to the Goods, including, without
limitation, changes in or to the specifications, raw materials, packaging,
manufacturing processes, manufacturing locations, analytical test methods, use
of a new reagent or solvent, or any other change which results in an alteration
to the physical or chemical characteristics of the Goods.
Seller represents and warrants that no article manufactured, packed,
warehoused, distributed, shipped, delivered, labeled, or sold by Seller
(hereafter “Article”) hereunder shall be: (i) adulterated or misbranded within
the meaning of the Federal Food, Drug, and Cosmetic Act (“FDCA”), as amended,
the Federal Meat Inspection Act as amended, the Federal Poultry Products
Inspection Act, as amended, or any rules and regulations promulgated
thereunder; (ii) an article which may not, under the provisions of Section 404
of the FDCA, be introduced into interstate commerce; or (iii) adulterated or
misbranded within the meaning of any provincial state or local law, or any
rules and regulations promulgated thereunder.
Seller represents and warrants that every Article shall be manufactured,
packaged and labeled in accordance with the requirements of the Consumer
Product Safety Act, as amended; the Federal Hazardous Substances Labeling Act,
as amended; and all other federal, state and/or local laws, including all rules
and regulations promulgated thereunder, concerning the manufacturing, packaging
and labeling of the Article.
Where Goods consist of chemicals or chemical compounds in any form,
Seller shall provide Buyer with a certificate of analysis with each delivery,
shall keep a retain of such chemical or chemical compound until the expiration
of the warranty period, and make a sample from such retain available to Buyer
Seller represents and warrants that Buyer shall receive clear and
unencumbered title to the Goods supplied hereunder and that the Goods may be
acquired, owned, held, used and disposed of by Buyer without infringing any
patent, industrial design, copyright or trademark whether foreign or domestic.
Title to each item included in the Goods shall pass to Buyer on the
earlier of: (i) payment for such item, or (ii) its delivery to the Delivery
Point. Notwithstanding the foregoing, risk of loss for all Goods shall remain with
the Seller and shall transfer to Buyer only when the Goods are under the care, custody,
and control of Buyer at the Delivery Point.
Seller shall at Seller's cost, prepare and issue to Buyer,
Certificate(s) of Origin for Goods sold pursuant to the North American Free
Trade Agreement (NAFTA) and shall provide copies of the issued Certificate of
Origin to the customs administration of Seller's and Buyer's home country upon
request as well as provide all information requested by either customs
administration in respect of the issued Certificate(s) of Origin. Seller shall
maintain records in respect of the Certificate of Origin for five (5) years or
such longer period as required by law. Seller shall otherwise comply with
Seller's obligations under NAFTA.
Seller shall defend, indemnify and save Buyer harmless from and against
all liability, loss and cost incurred for additional duties, tariffs and
penalties imposed by any customs administration, resulting from the
Certificate(s) of Origin furnished with respect to Goods being found to be
incomplete, false or otherwise invalid in whole or in part, or arising out of a
breach by Seller of Section 3(a) Certificate of Origin above. Seller's
indemnity herein shall extend to all costs and expenses, including attorney's
fees, arising from any resulting redetermination or reassessment with respect
to any of the Goods.
4. PACKAGING. Seller shall ensure all Goods are packaged in
accordance with applicable law and regulations and in such a manner as to ensure
the Goods are transported and delivered to Buyer without sustaining damage.
Seller shall place or affix the number of this Purchase Order on all
invoices, packing lists, packages, containers and related correspondence. Each
shipment must be accompanied by all safety data sheets or similar documentation,
and a packing list showing the exact quantity and description of Goods shipped.
Seller shall mark all containers with necessary lifting, handling,
environmental, safety and shipping information.
Where Buyer is responsible for freight charges Seller shall ship the
Goods by the most economical manner and route unless otherwise specified or
directed by Buyer.
If Buyer specifies or directs Seller to ship the Goods in a specific
manner or by a specific route and Seller fails to do so, Seller shall reimburse
Buyer for any loss or extra expenses incurred by Buyer resulting from such
TERMS. Unless otherwise agreed to in writing
by Buyer in the Purchase Order, invoices shall be due and payable 45 days after
the later of (i) receipt of the invoice by Buyer, or (ii) delivery of the Goods
B. Terms and Conditions applicable to the Purchase of Services
Seller shall diligently and carefully perform the Services in strict
accordance with this Purchase Order and shall furnish all labor, supervision,
tools, materials and equipment necessary therefor and, if directed by Buyer,
shall provide all Goods required in connection with the Services.
Unless otherwise agreed to in writing by Buyer, Seller shall immediately
upon completion of the Services remove from Buyer's premises all its equipment,
surplus materials and debris and shall leave such premises in a clean and tidy
Title to all work product resulting from the Services shall pass to
Buyer as such work product is completed. Notwithstanding the foregoing,
the Services and all work product shall remain at the risk of Seller until
completion of all the Services hereunder and acceptance of those Services by
Seller represents and warrants to Buyer that:
Seller shall perform the Services in a professional and workmanlike
manner, in accordance with the industry's highest standards of care, thoroughness,
Seller shall perform the Services in full compliance with all applicable
laws, regulations and rules, and all specifications, drawings and other
documentation delivered by Buyer, or as otherwise agreed to by Buyer and Seller
Seller shall employ only persons who may lawfully work at the site where
the Services are to be performed
Seller shall employ only trained, qualified, competent and experienced
personnel to perform the Services; and
All work product resulting from the Services shall be of the kind and quality
specified herein, free from fault in design, workmanship and material.
The above warranties shall continue in full force and effect for a
period of twelve (12) months after completion of the Services. Seller shall,
during such period, re-perform all Services that were performed incorrectly or
otherwise do not fully comply with the above warranties.
Where Services are re-performed under the above warranties, such
Services shall be warranted for a new period of twelve (12) months from the
date re-performance is completed.
Seller shall bear all costs for re-performance of the Services under the
Seller shall assign to Buyer the benefit of all warranties or similar
obligations provided by any subcontractor or supplier to Seller (each and
collectively "Supplier Warranties"). Seller shall
ensure that all Supplier Warranties are assignable to Buyer without the consent
of the subcontractor or supplier, or shall obtain the necessary consents before
completing the Services. Seller shall fully assist Buyer in making any claim
under any Supplier Warranty. Any claim by Buyer under a Supplier Warranty shall
not: (i) prevent Buyer from (A) making a claim under any other warranty or (B)
otherwise seeking to protect its rights; and (ii) limit or restrict Buyers
rights or remedies in law or at equity.
PERSONNEL AND EQUIPMENT. If Buyer
determines in its sole discretion that any of Seller's personnel or equipment
do not comply with applicable safety and security requirements or of any other
legally permitted reason, Buyer may refuse to permit such personnel or
equipment to enter upon any of Buyer's premises. Seller shall indemnify defend
and hold harmless Buyer from any and all claims, causes of action, petitions,
demands, loss or expenses (including court costs, interest
and attorney’s fees) of every kind arising out of Buyer's refusal to permit
any of Seller's personnel or equipment to enter upon any of Buyer's premises.
10. BOND. At Buyer's request, Seller shall furnish Buyer
with a performance bond in an amount designated by Buyer. The form and content
of the bond and the surety shall be subject to prior approval by Buyer.
HEALTH AND SAFETY. Without limiting the
generality of Section 27 Compliance with Laws and Policies below, the
parties agree as follows:
Seller shall, and shall be responsible for ensuring that its employees,
agents and subcontractors at all times comply with all applicable laws,
regulations, by-laws, permits, approvals or other lawful requirements imposed
or issued by any Federal, State, Provincial or local governments relating to
environmental protection as well as any environmental policies or procedures imposed
by Buyer from time to time.
Buyer may at any time evaluate Seller’s environmental practices and procedures
and may, from time to time, require the assistance of Seller in completing
evaluations in this regard.
Seller shall, and shall be responsible for ensuring that its employees,
agents and subcontractors at all times comply with all applicable Federal,
State, Provincial or local occupational health and safety laws and regulations
as well as any additional safety rules imposed by Buyer from time to time,
whether attached as an Appendix to these Standard Terms and Conditions and made
part of a Purchase Order, or otherwise.
12. Site Inspection. Seller acknowledges that prior to its acceptance of the Purchase Order it
has, and shall be deemed to have, examined the Purchase Order thoroughly and
familiarized itself with and considered the location and all conditions of the
work to be performed as part of the Services including, without restricting the
generality of the foregoing, topography, access to the work site, the
right-of-ways, the character and quantity of surface and subsurface conditions,
the uncertainties of weather, the availability of labour and other requisite
elements such as power, water and transportation and the type and quantities of
necessary equipment and materials (each and collectively "Site Conditions"). Seller shall report to Buyer any
proposed changes to the Purchase Order resulting from Site Conditions.
13. PAYMENT TERMS. Unless otherwise specified in the Purchase Order,
the following payment terms shall apply to purchases of Services:
In the case of a lump sum price for the Services, no invoice shall
exceed an amount that is proportionate to the Services performed during the
period covered by such invoice. Invoices shall include such information as
Buyer may require.
In the case of hourly rates in respect of the Services, invoices shall,
for the period covered by the invoice, include a statement of hours expended by
each of Seller’s personnel at their applicable hourly rates, the dates upon
which such hours were expended and a description of Services provided, together
with such other information as Buyer may require.
For Purchase Orders billed on a time and materials basis, materials
shall be separately identified on each invoice together with such other
information as Buyer may require.
Unless otherwise specified in the Purchase Order, invoices shall be due
and payable on the later of 45 days after: (i) receipt of the invoice by Buyer,
or (ii) completion of the Services which are the subject of the invoice.
Conditions applicable to all Purchase Orders
14. ACCEPTANCE. This Purchase Order is Buyer's offer to Seller,
and acceptance is expressly limited to its terms and Buyer hereby objects to and
rejects any different or additional terms in any response to this purchase
order and, in addition, Buyer and Seller are not bound by prior dealings or
trade usage. IN THE EVENT OF A CONFLICT OR INCONSISTENCY BETWEEN ANY DOCUMENT
SUBMITTED BY SELLER AND THE PROVISIONS HEREOF, THE PROVISIONS HEREOF SHALL
GOVERN AND CONTROL AND SELLER ACKNOWLEDGES THAT UNIFORM COMMERCIAL CODE SECTION
2-207 OR THE APPLICABLE STATE LAW EQUIVALENT, SHALL NOT APPLY, AND SHALL NOT
ALTER, ADD, CHANGE OR MODIFY THE PROVISIONS HEREOF. Each acceptance of a
Purchase Order by Seller shall constitute the creation of a separate binding
contract between Seller and Buyer subject to the terms hereof. Any of the
following acts by Seller shall constitute acceptance of a Purchase Order:
Seller signing and returning a copy of any cover sheet, order form or
similar document which references these Standard Terms and Conditions;
Seller's shipment of all or any portion of the Goods covered by a Purchase
Seller's express written acknowledgment of these Standard Terms and Conditions
Seller's performance of any of the Services identified in a Purchase
15. DRAWINGS AND
SPECIFICATIONS. Unless otherwise agreed to
by the parties, all drawings, blueprints, specifications, dies, patterns and
tools, whether supplied by Buyer or prepared or constructed by Seller as
required for the completion of this Purchase Order, or for repair, replacement
or re-performance pursuant to the warranty provisions hereunder, shall be the
property of Buyer.
All prices quoted by Seller shall be quoted in United States Dollars or
converted to an equivalent United States Dollar value at the time of quote
unless expressly waived by Buyer provided however that prices shall be quoted
in Canadian Dollars where expressly required by Buyer. Prices shall be as last
quoted in writing by Seller to Buyer and shall not change without written
agreement of Buyer, delivered prior to delivery of the Goods or performance of
the Services. Buyer may cancel any order without any resulting liability after
receiving a price change notice. Charges for packing, packaging,
freight/shipping and handling will not be allowed or paid by Buyer unless
expressly included in Seller’s price quote prior to Buyer’s acceptance. Prices
for Services shall include expenses, charges and costs for all equipment, goods
and materials necessary to complete the Services.
No increases in the price or other charges shown Buyer’s Purchase Order,
including, without limitation, increases in customs and excise duties
subsequent to the date of Seller’s price quote as accepted by Buyer, shall be
payable by Buyer unless such increases are agreed to by Buyer in writing.
No payment or acceptance of Goods or Services by Buyer hereunder shall
constitute a waiver with respect to any provisions of this Purchase Order, nor
shall anything herein contained be construed to limit any warranties or
conditions implied by law.
If any error is discovered in an invoice by Buyer, such error shall be
adjusted within thirty (30) days from the date of discovery of such error,
provided however, that there shall be no adjustment made for any error
discovered by Seller more than twelve (12) months after receipt of an invoice
Unless otherwise specifically provided for in this Purchase Order,
Seller assumes exclusive liability for and shall pay before delinquent, all
sales, use, customs and excise, import, export (from country of origin), value
added and other taxes, charges, duties, levies, imposts or contributions of any
kind or with respect to or measured by the Goods or the Services supplied
hereunder (Collectively "Sales Taxes"). Seller
shall indemnify, defend and hold harmless the Buyer Indemnified Parties, as
defined herein, from any claims Causes of action, costs and expenses (including
court costs and expenses and attorney's fees) arising out of Seller's failure
to pay any Sales Taxes that are Seller's responsibility under this Section.
Unless otherwise specifically provided for in this Purchase Order,
Seller assumes exclusive liability for and shall pay before delinquent all Federal,
State, Provincial and local income taxes, pension benefits, social security
taxes, employment, disability and other customary insurance and for any other
taxes or payments which may be due and owing by Seller or which are the result
of fees or amounts paid by Buyer to Seller under this Purchase Order (each and
collectively “Income Taxes”). Seller shall indemnify, defend
and hold harmless the Buyer Indemnified Parties, as defined herein, from any claims
Causes of action, costs and expenses (including court costs and expenses and
attorney's fees) arising out of Seller's failure to pay any Income Taxes that
are Seller's responsibility under this Section.
Buyer shall furnish Seller any applicable, valid and effective tax
exemption certificates and Seller shall collect Sales Taxes and other taxes
only in accordance with those tax exemption certificates.
Any applicable Sales Taxes and other government charges shall be
separately listed on Seller's invoice.
All taxes and duty rebates, remissions, exemptions or other such savings
shall be for the account of Buyer and accordingly, shall reduce the price shown
in the Purchase Order. In the event that Buyer has already paid the price shown
in the Purchase Order, Seller shall pay all amounts received in respect of
rebates, remissions, exemptions or other such savings to Buyer within ten (10) days
of their receipt. Seller shall apply promptly for all available rebates,
remissions and exemptions in compliance with applicable law.
Early payment discounts shall run from the later of: (i) Buyer's receipt
of Seller's invoice, (ii) delivery of the Goods, or (iii) completion of the
17. BEST PRICE AND
MEET OR RELEASE. Seller shall not charge
Buyer a higher price for goods covered by these terms and conditions than it
charges to any other customer for goods of like quality.
at any time, Buyer notifies Seller that it has been offered (including through
a bid process initiated by Buyer) product in equal or lesser quantities and of
similar or superior quality to the Product by another supplier (an “Alternative
Supplier”) that would result in a lower delivered cost to Buyer for such
Product than the delivered cost in effect under this Agreement, or would
otherwise result in more favorable economic terms, when taken as a whole to
Buyer, than the economic terms of the Agreement (an “Alternative Supplier
Offer”), Buyer shall notify Seller of the Alternative Supplier Offer and
shall provide a copy of the Alternative Supplier Offer to an independent third
party auditor designated by Seller, for prompt verification.
Seller receives the auditor’s verification of the Alternative Supplier Offer
Buyer shall provide Seller, as applicable, with: (i) fifteen (15) days to meet
the lower price of the Alternative Supplier Offer for any Product ordered after
the fifteen (15) day period, or (ii) sixty (60) days to meet a quality or
performance advantage. If Seller cannot meet the applicable fifteen (15) or
sixty (60) day period, Buyer may purchase the quantity of Products covered by
the Alternative Supplier Offer, and any such purchases from an Alternative
Supplier shall reduce the quantity of Product Buyer is obligated to purchase
under this Supply Agreement.
PERFORMANCE AND COVER.
Seller understands and agrees that time is of the essence and Seller
shall deliver all Goods and perform and complete all Services in accordance
with time schedules referred to on the cover page hereto or otherwise agreed to
by the parties.
If it is reasonably anticipated that Seller may fail to deliver Goods or
perform and complete all Services within the above time periods, Seller shall promptly
notify Buyer of any anticipated delay and forthwith take all steps necessary to
expedite performance so as to prevent such failure. Any additional costs
resulting from such steps including, but not limited to, the full cost of cover
for Goods or Services not timely delivered or completed shall be borne by
The parties acknowledge and agree that Seller is an independent
contractor and nothing contained in this Purchase Order or otherwise nor any
past relationships or course of dealings between the parties shall be construed
as constituting a joint venture or partnership or establishing a relationship
of principal and agent, master and servant, franchisor or franchisee, or
employer and employee. Seller shall be solely responsible for the performance
of the Services and such Services shall be performed by Seller according to its
own methods and at its own risk, subject only to compliance with the provisions
of this Agreement.
Seller, in keeping with its independent status, shall cause itself and
any of its employees when applicable, to be registered with the appropriate
government agencies for the purpose of workers' compensation, unemployment insurance,
social security or equivalent and income tax. Seller shall indemnify the Buyer
Indemnified Parties in accordance with Section 16 (e) Price for failure
to pay any aforementioned taxes.
Seller shall ensure that all Seller personnel and subcontractors have
received all training regarding health and safety or any other matters required
by applicable law or applicable governmental regulations or authorizations.
Training or implementation of any additional health and safety measures
appropriate for the work will be specified by Buyer. Upon Buyer's request
Seller shall provide Buyer written documentation of said training and worker
Seller may not subcontract any part of this Purchase Order without the
prior written approval of Buyer and if granted such approval shall not operate
to relieve Seller of any liability to Buyer under this Purchase Order.
Seller shall enter into written contracts with subcontractors that
include provisions requiring them to perform in accordance with and subject to
the terms and conditions of this Purchase Order.
Seller shall be fully responsible to Buyer for any and all acts and
omissions of its employees, agents or subcontractors and their employees or
agents of any tier.
21. INDEMNITIES. Seller shall defend, indemnify and save Buyer
its members, shareholders, managers, directors, officers, employees, agents and
affiliates (each and collectively "Buyer Indemnified Parties") harmless from and against any and all losses,
liabilities or expenses (including legal fees and expenses), suits, actions,
claims, demands, damages of all kinds and descriptions on account of bodily
injury, sickness, disease or death of any person or persons, or damage to or
destruction of tangible property, including the loss of use resulting therefrom
caused by the Goods, including but not limited to, latent defects which Buyer Indemnified
Parties may suffer or incur by reason of, arising from, relating to, or in connection
any claim, suit or allegation, including, without limitation, any claim
or suit for alleged infringement of any patent, industrial design, copyright or
trademark, resulting from or arising in connection with the manufacture, sale,
use or other disposition of any of the Goods or the provision of any of the
any breach of this Purchase Order by Seller or any employee, agent or
subcontractor of Seller, including non-delivery or late delivery of the Goods;
any violation of applicable law by Seller or any employee, agent or
subcontractor of Seller; or
any other act or omission by Seller or any employee, agent or
subcontractor of Seller.
It is hereby specifically and expressly agreed that
with respect to any and all claims against Seller by any employee or agent of
Buyer, any indemnification available hereunder shall not be limited by reason
of any immunity to which Seller may be entitled under any workers compensation
and/or industrial insurance acts, disability benefit acts, or other employee
benefits acts and any limitation on the amount or type of damages,
compensation, or benefits payable by or for Seller to an employee or agent of
Buyer with respect to any such claim.
Seller shall, at its own expense, obtain and maintain during the term of
this Purchase Order, with insurers having an A.M. Best rating of A VIII or
better, the following minimum coverages which may be increased at Buyer’s
commercial general liability insurance (including contractual, products,
and completed operations coverages) of not less than $1,000,000 per occurrence
covering bodily injury, death and property damage arising out of or relating to
the acts or omissions of Seller in providing the Goods or performance of the Services,
which insurance shall include Buyer as an additional insured, provide a waiver
of subrogation in the Buyer’s favor and provide thirty (30) days notice of
cancellation or material change;
insurance of not less than $1,000,000 per occurrence covering bodily
injury, death and property damage arising out of the ownership or operation of
a motor vehicle used or to be used in connection with the supply of Goods or the
performance of the Services by Seller and which insurance shall include Buyer
as an additional insured, provide a waiver of subrogation in the Buyer’s favor
and provide thirty (30) days notice of cancellation or material change; and
shall furnish evidence of its and its permitted subcontractor's compliance with
Worker’s Compensation or similar legislation applicable at the site(s) where
the Services shall be performed or Goods shall be delivered;
liability insurance of not less than $1,000,000 per occurrence and $5,000,000
in the aggregate covering bodily injury, death and property damage arising out
of Seller’s provision of the Goods to Buyer and which insurance shall include Buyer
as an additional insured, provide a waiver of subrogation in the Buyer’s favor
and provide thirty (30) days notice of cancellation or material change.
Prior to commencing to provide any Goods or Services hereunder, Seller shall
deliver to Buyer a broad form "vendors endorsement," ISO #
20-15-07-04 or equivalent thereto, in favor of Buyer and a certificate of
insurance evidencing the above coverages or, if required by Buyer, certified
copies of the above insurance policies and endorsements. The above insurances
shall be primary to any other coverage in favor of the Buyer.
Seller's compliance with the provisions of this section will not be
interpreted or construed in any way to limit Seller's liability for its acts or
omissions or in any way limit, modify, or otherwise affect Seller's
indemnification obligation pursuant to this Purchase Order. The insolvency,
bankruptcy, or failure of any insurance company carrying insurance for Seller,
or failure of any such insurance company to pay claims asserted for any reason,
will not abrogate, waive or alter any of Seller's responsibilities or
Seller shall ensure that its permitted subcontractors comply with the
above insurance requirements and each permitted subcontractor shall provide Buyer
with evidence of the above coverages and endorsements prior to delivering any Goods
or Services hereunder.
23. CONFIDENTIALITY. Seller shall not use or disclose to any third
person any business information, business plans, data, designs, drawings,
specifications or other information, (collectively, the "Confidential
Information") belonging to or
supplied by or on behalf of Buyer except in the performance of this Purchase
Order. Upon completion of the Purchase Order or upon Buyer's earlier request,
all Confidential Information, including any copies thereof, shall be returned
to Buyer. Where Buyer's Confidential Information is furnished to Seller's subcontractors
or suppliers in connection with the performance of this Purchase Order, Seller
shall insert the substance of this provision in its orders and shall ensure
compliance with such provision by its suppliers.
24. TERMINATION. Buyer may, in its sole discretion, terminate
this Purchase Order at any time, in whole or in part by written notice to
Seller. Upon receipt of such notice, Seller shall immediately discontinue any
Services or efforts in respect of provision of Goods being performed in
connection with this Purchase Order, except as directed by Buyer. Upon such
termination, and subject to audit, Buyer shall reimburse Seller for Goods
delivered and Services actually provided to Buyer up to the effective date of
termination. In no event shall Buyer be liable to Seller for lost or
Buyer shall be entitled at all times to set-off against any amount due
or owing to Seller under this Purchase Order, such amounts that, in the opinion
of Buyer, are sufficient to: (i) cover any account owing from Seller to Buyer
or to any of its affiliated companies, or (ii) protect Buyer from any losses or
expenses arising from defects or deficiencies in the Services performed or
Goods provided by Seller, or any other failures by Seller to comply with the
requirements of this Purchase Order.
Buyer shall further have the right, but not the duty, to withhold any
monies payable by it hereunder and apply same to the payment of: (i) any
obligations of Seller to Buyer howsoever arising or (ii) any obligations of
Seller to any other parties arising in connection with this Purchase Order.
26. FORCE MAJEURE. Neither party shall be liable for delays or
defaults due to acts of God, terrorism, governmental authority or public enemy,
war, fires, floods, epidemics, freight embargoes, or contingencies reasonably
beyond its control. The party so affected shall use its good faith efforts to
remediate such force Majeure as expeditiously as possible and, upon prompt
written notice to the other party, shall be excused from making or taking
deliveries hereunder to the extent of such prevention or restriction. Buyer may
terminate this Purchase Order pursuant to Section 24 Termination herein
in the event of such delay in performance. If, at any time, there is a period
of shortage of supply of Goods for any reason, Seller shall allocate to Buyer
such proportion of its available inventory that Buyer’s purchases of the
affected Goods over the preceding twelve (12) months bears to Seller’s total
sales of the affected Goods during such period to Seller’s other customers
under written contract for the purchase of the affected Goods.
Seller shall keep Buyer's premises free and clear of any and all liens
and charges arising in connection with the performance of this Purchase Order.
Buyer may withhold a lien holdback from the price agreed to be paid to
Seller for the purpose, in the manner, in the amount and for the time provided
under all applicable laws, rules and regulations. In the event that any lien or
charge is filed against Buyer's premises in connection with this Purchase Order
or any claim shall exist in connection with this Purchase Order which may form
the basis for any lien or charge against Buyer's premises, Seller shall take
such steps as are necessary to immediately discharge the lien, charge or claim.
If such lien, charge or claim has not been discharged within five (5) days of
notice from Buyer, Buyer may in its sole discretion take such steps as it deems
necessary to discharge such lien, charge or claim, including withholding
amounts payable under this Purchase Order. Seller shall be liable for and shall
indemnify and save Buyer harmless from any and all costs and expenses
(including legal fees) and other liabilities arising from such lien, charge, or
28. COMPLIANCE WITH
LAWS AND POLICIES. Seller shall comply with
all applicable laws, regulations, by-laws, permits, approvals or other lawful requirements
imposed or issued by any Federal, State, Provincial or local governments.
Seller shall also comply with any business conduct policies and safety and
security rules imposed by Buyer from time to time. Seller shall ensure that its
employees, subcontractors and agents are made aware of and comply with the
above laws, regulations, by-laws, permits, approvals, policies and rules and
shall furnish Buyer with such evidence of compliance as Buyer may require from
time to time.
29. GOVERNING LAW. This Purchase Order shall be deemed to be an agreement
made in the State or Province in which the Buyer's corporate head office is
located and shall be construed in accordance with the laws of that State or Province
pertaining to the sale of Goods or provision of Services and without reference
to that jurisdiction’s choice or conflict of laws rules. Buyer and Seller
expressly agree that the United Nations Convention on Contracts for the
International Sale of Goods shall not apply to this Purchase Order.
30. DISPUTE RESOLUTION. This Agreement shall be governed by and enforced in
accordance with the laws of the state in which the Seller’s corporate office is
located without reference to its conflict of law rules. Buyer, by taking
delivery of any Product hereunder, shall be conclusively deemed to have
consented to the personal jurisdiction in the aforementioned state and to have
waived any right to object to such jurisdiction on any basis, including but not
limited to, forum non conveniens. Each party knowingly, voluntarily, and
intentionally waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in any legal action, proceeding, cause of
action or counterclaim arising out of or relating to this Agreement. Each
party represents that it has consulted or had the opportunity to consult legal
counsel with respect to this waiver. Any dispute, controversy, or claim arising out of or
related in any way to this Agreement and/or any sale and purchase or use of
Products hereunder or any transaction contemplated hereby which involves a
party not a party to this Agreement and which cannot be amicably resolved by
the parties shall be solely, exclusively and finally resolved by binding
arbitration administered by the American Arbitration Association in accordance
with its commercial arbitration rules. Judgment on the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction. Any party may
serve notice of its desire to refer a dispute to arbitration in accordance with
the notice provision of this Agreement. The arbitration shall take place
before a single arbitrator unless the amount in controversy exceeds $250,000,
in which case the arbitration shall take place before a panel of three (3)
arbitrators, each of whom shall have experience with and knowledge of the
chemical distribution industry. If three arbitrators are to be appointed, each
party shall appoint one arbitrator. The two arbitrators thus appointed shall
choose the third arbitrator. In the event three arbitrators are appointed,
each party shall pay for the cost of its own arbitrator plus one-half of the
cost of the third arbitrator. Except as otherwise provided, each party shall
bear its own costs relating to the arbitration proceedings irrespective of its
outcome. All other costs, fees and expenses shall be split equally between the
parties. Arbitration shall take place in the state in which the Seller’s
corporate office is located. The language of the arbitration shall be
English. The decision of the arbitrator(s) shall be in writing with written
findings of fact and shall be final and binding on the parties. The arbitrator
shall be empowered to award money damages, but shall not be empowered to award
any damages precluded by this Agreement, or any injunctive or any other
equitable relief. This section is the sole recourse for the resolution of any
disputes arising out of, in connection with, or related to this Agreement,
provided however, that nothing in this Agreement shall preclude either party from
seeking injunctive or equitable relief in accordance with applicable law. No
demand for arbitration may be made under this Section more than one year after
the occurrence of the event giving rise to such demand. The parties hereby
expressly exclude the application of The United Nations Convention on Contracts for the
International Sale of Goods to this Agreement, including, without limitation,
Article 35(2) thereof.
31. WAIVER OF JURY
TRIAL. SELLER IRREVOCABLY WAIVES ANY AND ALL
RIGHT SELLER MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF
ANY NATURE RELATING TO THIS PURCHASE ORDER, ANY DOCUMENTS EXECUTED IN
CONNECTION WITH THIS PURCHASE ORDER OR ANY TRANSACTION CONTEMPLATED IN THIS
PURCHASE ORDER OR ANY OF SUCH DOCUMENTS. SELLER ACKNOWLEDGES THAT THE FOREGOING
WAIVER IS KNOWING AND VOLUNTARY.
32. Jurisdiction and venue. The Seller agrees that any claim to enforce any
Arbitration award or otherwise brought on this Purchase Order may be brought
only in the courts of the State or Province whose law governs this Purchase Order.
Seller submits to the exclusive jurisdiction of those courts and hereby waives
any objection to such jurisdiction or venue.
33. Recovery of Costs. In any suite to enforce any Arbitration award or
otherwise brought on this Purchase Order, upon the entry of a final non
appealable order of a court of competent jurisdiction, the prevailing party
shall be entitled to recover its costs and expenses, including attorney's fees,
from the other party.
34. BUYER'S RIGHTS.
Seller agrees that any right, cause of action or remedy under the
warranties or undertakings assumed or imposed upon Seller under this Purchase
Order shall extend without exception to any company affiliated with Buyer on
whose behalf this Purchase Order is issued by Buyer.
Except as specifically set forth herein, all rights and remedies
provided in favor of Buyer hereunder are in addition to and without prejudice
to any other rights and remedies to which Buyer may lawfully be entitled,
including without limitation, under and by virtue of the provisions of any
Federal, State, Provincial or local law governing the sale of goods.
The failure of Buyer to insist upon strict performance by Seller of any
of the terms and conditions of this Purchase Order shall not be deemed a waiver
of any rights or remedies that Buyer may have at law or in equity in respect
thereof and shall not be deemed a waiver of any subsequent default by Seller.
AGREEMENT AND CHANGES.
This Purchase Order shall constitute the entire, final, complete, and exclusive
agreement between Buyer and Seller and no terms or conditions, other than those
stated herein, and no agreements or understandings, oral or written, in any way
purporting to modify this Purchase Order, or customs or usages of trade shall
be binding on Buyer unless documented by Buyer's written authorization.
Without limiting the generality of the foregoing, the quality, quantity
and other specifications of the Goods or Services to be supplied hereunder
shall not be changed from those referred to in Buyer’s Purchase Order unless
such changes are agreed to by Buyer in writing.
LANGUAGE. It is the express wish of the
parties that this agreement be written in English, and that only the English
version of this agreement binds the Parties. Any translation of this Agreement
into French is for informational purposes only. C'est le souhait des parties
que cet accord soit écrit en anglais, et que seulement la version anglaise de
cet accord lie les parties. N'importe quelle traduction française de cet accord
est pour but informatif seulement.
The headings contained herein are provided for convenience only and are
not to be considered when interpreting or construing this Purchase Order.
No right, title, estate or interest in this Purchase Order and no
obligations or duty or liability of Seller shall be transferred, assigned, set
over, conveyed, pledged, hypothecated or otherwise disposed of without the
prior written consent of Buyer, which consent may be given or withheld in the
sole discretion of Buyer.
Each notice, statement and invoice to be given pursuant to this Purchase
Order shall be in writing and shall be sent by prepaid ordinary or registered
mail, by facsimile transmission or by recognized courier to the addresses and
facsimile numbers for Buyer and Seller noted on the cover page hereto. Notices,
statements and invoices sent by mail or courier shall be deemed to have been
received when actually received or refused, and those sent by facsimile transmission
shall be deemed to have been received on the first business day following the
day on which they were sent.
Buyer or any person designated by Buyer may at any and all reasonable
times for a period of twenty-four (24) months after completion of delivery of
the Goods or Services hereunder, have access to Seller's books and records and
personnel for the purpose of auditing and verifying Buyer's compliance with
this Agreement and Buyer may make copies of such books and records required by
Buyer in performing such audit. Seller shall promptly review and settle with
Buyer all matters arising from such audit including the refunding of monies
If this and any other documents are transmitted by any means of
electronic transmission, such transmission shall have the legal significance of
a duly executed original delivered to Seller.
Seller shall not use Buyer’s names, logos, trade names, trademarks or
copyrights or the fact that Seller is performing Services or supplying Goods
for Buyer in any press release, media statement, advertisement or other public
communications or otherwise publicize this Purchase Order without the prior
written consent of Buyer.
The invalidity or unenforceability of any portion or provision of the
Purchase Order shall in no way affect the validity or enforceability of any
other portion or provision hereof. Any invalid or unenforceable portion or
provision shall be severed from the Purchase Order and the balance of the
Purchase Order shall be construed and enforced as if the Purchase Order did not
contain such invalid or unenforceable portion or provision.
This Agreement shall not be construed more strongly against either party
regardless of which party is more responsible for its preparation.