1. Definitions
- “Agreement” means these terms and conditions together with any appearing on
the face of Buyer’s PO, including all referenced documents (including but not limited to
these terms and conditions), exhibits, and attachments thereto.
- “Buyer” means Axiro Semiconductor Private Limited and/or one or more of its
subsidiaries.
- “Buyer Purchasing Representative” means the person from Buyer’s Purchasing
Department authorized by Buyer to administer this Agreement.
- "Intellectual Property Rights" means all rights in:
- U.S. and foreign utility and/or design patents, patent applications, and utility
models;
- Patents issuing on such applications;
- Continuations, continuations-in-part, divisions, reissues, reexaminations, or
extensions of such patents or applications;
- Inventions, invention disclosures, and Technical Improvements;
- Copyright registrations and applications, copyrighted Works of authorship (as
defined in 17 U.S.C. § 102) covered by such registrations and applications, and all
other Works of authorship, whether registered or not, and all renewals, extensions,
and Derivative Works thereof;
- Confidential information, know-how, and other proprietary information, and all
tangible and intangible embodiments thereof;
- Other proprietary intellectual property rights of any kind;
- Trademarks.
- “Party” means Buyer or Seller.
- “PO” or “Purchase Order” means the purchase order between Buyer and the
Seller for the purchase and sale of Work, to which these Purchasing Terms and Conditions are
attached or are incorporated by reference.
- “Seller” means the party identified on the face of the PO with whom Buyer
is creating this Agreement.
- “Work” means all required articles, materials, supplies, goods, and/or
general services constituting the subject of this Agreement. Additionally, “Service
Work” means all design, consulting and other related services constituting the
subject of this Agreement.
2. Order Process
The Purchase Order shall be submitted by the Buyer to the Seller via e-mail or Electronic Data
Interchange ("EDI"). Purchase Orders transmitted by e-mail or EDI are deemed to be received by
the Seller on the day and at the moment of the transmission. If the Seller does not accept a
Purchase Order within five (5) days of receipt, Buyer is entitled to cancel the Purchase Order
at no cost to Seller. By accepting the Purchase Order, Seller acknowledges having actual
knowledge of the text of documents referenced herein. Seller's acceptance of Purchase Order is
unqualified, unconditional and subject only to these Purchasing Terms and Conditions and any of
the Buyer's terms specifically set forth on the Purchase Order, or any signed documents
referenced in Buyer's Purchase Order. Buyer expressly rejects any additional or different terms
and conditions, including those which appear in any quotation, acceptance, shipping
documentation, invoice or acknowledgement of Seller. The Seller may not assert, as a defense to
the enforcement of these Purchasing Terms and Conditions any conditions or limitations made in a
quotation, acceptance, shipping documentation, invoice or acknowledgement. The Seller waives any
right to contest the validity of these Terms and Conditions, or assert that they are void for
any reason, upon Seller's acceptance of the Purchase Order(s) referencing these Purchasing Terms
and Conditions.
3. Delivery
- Delivery of goods shall be made pursuant to the schedule, via the carrier, and to the
destination specified on the face of the applicable Purchase Order.
- Buyer reserves the right to return, shipping charges collect, all Work received
significantly in advance of the delivery schedule.
- If no delivery schedule is specified, the Purchase Order shall be filled promptly, and the
most reasonable form of land transportation shall be used for delivery.
- In the event Seller fails to deliver Work by the specified delivery date, Buyer shall, at
its option, decline to accept the Work and terminate the Agreement or may demand its
allocable fair share of Seller’s available Work and terminate the balance of the Agreement.
- All shipments of hazardous materials will be accompanied by applicable Material Safety Data
Sheets and in appropriately labeled packaging and containers.
4. Inspection
- Buyer’s final inspection and acceptance shall be after delivery.
- Buyer and its customers may inspect all Work at reasonable times and places, including but
not limited to, during manufacture and before delivery.
- Seller shall provide any and all information, facilities, and assistance required for safe
and convenient inspection without additional charge.
- Work shall not be deemed accepted until Buyer has run an adequate test to determine whether
the Work conforms to the specifications hereof. Use of a portion of the Work for the purpose
of testing shall not constitute an acceptance of the Work. Buyer shall have the right to
reject Work tendered that does not wholly conform with the specifications hereof. Rejected
Work will be returned to Seller by common carrier at Seller’s sole risk and expense.
- No such inspection shall relieve Seller of its obligations to furnish all Work in accordance
with the requirements of this Agreement.
- Seller shall not re-tender rejected Work without disclosing the corrective action taken.
5. Packing and Shipment
- Unless otherwise specified, all Work is to be packed in accordance with reasonable
commercial practice. No charge will be allowed for packing, boxing, or cartage unless
otherwise agreed to by Buyer in writing.
- A complete packing list shall be enclosed with all shipments. Seller shall mark containers
or packages with necessary lifting, loading, and shipping information, including Buyer
Purchase Order number, item number, and the names and addresses of consignor and consignee.
Bills of lading shall include the Buyer PO number.
6. Risk of Loss and Title
- Seller assumes all risk of loss until receipt of all Work by Buyer.
- Title to the Work shall pass to Buyer upon receipt and acceptance of the Work by Buyer.
- If the Work are destroyed prior to title passing to Buyer, Buyer may cancel the Agreement or
require delivery of substitute Work of equal quantity and quality. Such delivery will be
made as soon as commercially practicable. In the case of a partial loss of Work, Buyer shall
have the right to require delivery of the Work not destroyed.
7. Timely Performance
- Time is of the essence. Seller’s timely performance is a critical element of this Agreement.
- Unless Buyer has authorized advance shipment in writing, Buyer may store at Seller’s
expense, or return, shipping charges collect, all Work received in advance of the scheduled
delivery date.
- If Seller becomes aware of difficulty in performing the Work under this Agreement, Seller
shall notify Buyer in a timely manner by writing, giving pertinent details. Such notice
shall not change any delivery schedule.
- In the event of a Termination or Change, no claim will be allowed for any manufacture or
procurement in advance of Seller’s normal flow time unless there has been prior written
consent by Buyer.
8. Changes
- Buyer may at any time make changes within the general scope of this Agreement in any one or
more of the following:
- drawings, designs, or specifications;
- method of packing or shipment;
- place and/or time of inspection;
- place and/or time of delivery;
- materials, methods, or manner of production or final product; and
- quantity. Such changes are subject to Seller’s agreement.
- If any such change causes an increase or decrease in the cost of, or the time required for,
performance of any part of this Agreement, Buyer shall make an agreed upon equitable
adjustment in the Agreement price and/or delivery schedule. Provided, however, any price
increase or extension of time for delivery will not be binding on Buyer unless evidenced by
a PO change notice issued and signed by Buyer’s authorized representative.
- Failure to agree to any adjustment shall be resolved in accordance with the “Disputes”
provision of this Agreement.
9. Returns
The Buyer may return Work to Seller as per the terms and conditions of this Agreement and
receive a full refund if paid in advance. The Buyer shall notify the Seller of its intent to
return Work and within Forty Eight (48) hours of such Buyer’s notification, the Seller will
assign and provide to the Buyer, a Return Materials Authorization ("RMA") number. The process of
the RMA shall be duly shared by the Seller to the Buyer.
10. Excess
Work shall not be supplied in excess of quantities specified in the Agreement, unless otherwise
agreed upon by the Buyer in writing. Seller shall be liable for handling charges and return
shipment costs for any excess quantities and at Seller’s risk of loss.
11. New Materials
Work provided by Seller shall consist of new materials, not used, recycled, or reconditioned, or
of such age as to impair its usefulness or safety unless otherwise agreed by Buyer in writing.
12. Discontinued /End of Lifecycle Work
The Seller shall not provide any Work which is subject to discontinuation/end of lifecycle
within one (1) year from the date of the Purchase Order. At Buyer's option and at Seller's cost,
the Buyer shall return Work which is subject to discontinuation/end of lifecycle within one (1)
year from the date of the Purchase Order.
13. Tooling
- All tools, dies, jigs, and fixtures specifically manufactured or produced by Seller for the
performance of this Agreement whether to the design of Seller, Buyer, or a third party, that
are paid for by Buyer are the property of Buyer. The cost of such tooling shall be included
in the total price provided for by this Agreement.
- Tools, dies, jigs, and fixtures made or acquired by Seller for the manufacture of goods
which are standard commercial goods, and normally sold to parties other than Buyer shall
remain the property of the Seller.
- Buyer’s tools shall be and remain the property of Buyer. Seller shall use Buyer’s tools
solely for the performance of work under this Agreement. Seller shall keep the tools in good
repair and condition for the duration of this Agreement. Upon earlier demand by Buyer or
termination or expiration of this Agreement, Seller shall at its own cost deliver Buyer’s
tools to the Buyer plant in a timely manner.
14. Payment, Price, and Taxes
- Buyer shall pay Seller (1) the amount agreed upon and specified in the PO, or (2) Seller’s
price on date of shipment of goods or commencement of services, whichever is lower, as full
consideration for the Seller’s performance pursuant to this Agreement. Seller represents
that the price charged for the Work covered by this Agreement does not exceed the lowest
price charged by Seller to buyers of a similar class for similar Work under similar
conditions. Seller represents that prices comply with applicable government regulations in
effect at time of quotation, sale, or delivery.
- Prices specified by Seller shall include all shipping and transportation charges. Applicable
sales tax shall be set forth as a separate line item. Unless otherwise agreed, the contract
price will include all applicable federal, state and local taxes of any kind in effect on
the date of Buyer’s purchase order.
- No additional charges or taxes will be charged as a result of failure by Seller to have
included any applicable tax or transportation charge or as a result of any change in
Seller’s tax liabilities.
- Seller shall bear any and all transportation taxes assessable upon the goods prior to
receipt and acceptance by Buyer.
- Seller shall invoice Buyer for all goods delivered and all services actually performed. Each
invoice must be provided to Buyer within ninety (90) days of completion of the services or
delivery of the goods and must reference the applicable purchase order. Buyer reserves the
right to return all incorrect invoices. Buyer may adjust Seller’s invoice for shortages,
rejections or other failure to comply with the requirements of this agreement, and make
payment accordingly.
- Buyer shall pay the invoiced amount within sixty (60) days after receipt of a correct
invoice, or within the time mutually agreed upon with the Seller. Seller will receive no
royalty or other remuneration on the production or distribution of any products developed by
Seller in connection with or based on the Work hereunder this Agreement.
15. Warranty
- Seller warrants that all Work delivered shall be free from defects in materials and
workmanship and shall conform to all applicable specifications for a period of twelve (12)
months from the date of delivery to Buyer or for the period provided in Seller’s standard
warranty covering the Work, whichever is longer. Additionally, Work purchased shall be
subject to all written and oral express warranties made by Seller’s agents, and to all
warranties provided for by the applicable laws of India. All warranties shall be construed
as conditions as well as warranties and shall not be exclusive. Seller shall furnish to
Buyer, Seller’s standard warranty and service guaranty applicable to the Work.
- Seller represents and warrants that all services shall be completed in a professional,
workmanlike manner, with the degree of skill and care that is required by current, good, and
sound professional procedures. Further, Seller represents and warrants that the services
shall be completed in accordance with applicable specifications and shall be correct and
appropriate for the purposes contemplated in this Agreement. Seller represents and warrants
that the performance of services under this Agreement will not conflict with, or be
prohibited in any way by, any other agreement or statutory restriction to which Seller is
bound.
- Seller further warrants that at the time of delivery to Buyer it has title to the Work, free
and clear of any and all liens and encumbrances. The foregoing warranties will constitute
conditions and are in addition to all other warranties at law or in equity or under this
order and will not be deemed to be inclusive.
- All warranties and service guaranties shall run to Buyer, its successors, assigns,
customers, and users of its products.
- Buyer's approval of Seller's material or design will not relieve Seller of the warranties
set forth in this clause, nor will waiver by Buyer of any drawing or specification
requirement for one or more of the Works constitute a waiver of such requirements for the
remaining Works to be delivered hereunder unless so stated by Buyer in writing. The
provisions of this clause will not limit or affect the rights of Buyer under this Agreement.
- If any nonconformity with the Work under this Agreement appears, Seller at Buyer’s option
shall (i) refund all amounts paid by Buyer to Seller for the non-confirmed Work or (ii)
shall promptly repair, replace, or re-perform the Work. Transportation of replacement Work,
return of non-conforming Work, and repeat performance shall be at Seller’s sole expense. If
repair, replacement, or re-performance of Work is not timely, Buyer may elect to return the
non-conforming Work or repair, to replace Work, or to re-procure the Work at Seller’s
expense and the Seller shall refund all amounts paid by Buyer for the non-confirmed Work.
- Seller warrants that it will take such steps as may be reasonably necessary to prevent
personal injury or property damage during any Work hereunder that may be performed by any
employees, agents, or subcontractors of Seller at Buyer’s facility.
16. Confidentiality
- Buyer Information, information provided to Seller by Buyer in any form, remains the property
of Buyer, whether written or oral, including without limitation: information relating to
research, development, products, methods of manufacture, trade secrets, business plans,
customers, vendors, finances, personnel data, or other material provided to Seller by Buyer.
- Seller agrees not to copy, alter, reverse engineer, modify, or directly or indirectly
disclose any such Buyer Information without written consent by Buyer, except as required by
law.
- Seller will not disclose Buyer Information to any person outside its employment without the
prior written consent of Buyer, provided however that Seller may disclose Buyer Information
as required by a government agency or law, so long as Seller provides Buyer prompt notice of
such requirement prior to disclosure.
- Seller agrees to use Buyer Information only in the course of performing work under this
Agreement for the benefit of Buyer. Seller may not otherwise use Buyer Information in any
way, either for its own benefit or for the benefit of a third party.
- Seller shall use the same degree of care to safeguard Buyer Information that Seller
exercises in safeguarding its own proprietary or confidential information. In no event,
however, shall Seller use less than a reasonable degree of care to protect the Buyer
Information from unauthorized disclosure.
- No termination, expiration or cancellation of this Agreement will affect any obligation
herein respecting such Buyer Information.
17. Indemnity
- Seller shall indemnify, hold harmless, and at Buyer’s request, defend Buyer, its officers,
directors, agents, and employees, against all claims, liabilities, damages, losses, and
expenses, including attorneys’ fees and cost of suit arising out of or in any way connected
with work negligently provided under this Agreement, including, without limitation:
- Seller failing to satisfy the Internal Revenue Service’s guidelines for an
independent contractor,
- any claim based on the negligence, omissions, or willful misconduct of Seller,
- any claim by a third party against Buyer alleging that the Work under this Agreement
or the results of such Work infringe a patent, copyright, trademark, trade secret,
or other proprietary right of a third party, and
- any claim arising out Product Liability concerning the Work.
- Seller shall not settle any such suit or claim without Buyer’s prior written approval.
- Seller agrees to pay or reimburse all costs that may be incurred by Buyer in enforcing this
indemnity, including attorneys’ fees.
18. Intellectual Property
- I. General
- Seller warrants that it has the right to manufacture and/or transfer the Work
hereunder and Buyer has the right to use, lease or sell any such Work without
infringing the rights of any third party.
- Seller shall, at its own expense, indemnify, hold harmless and defend Buyer against
any liability, claim, suit or proceeding brought against Buyer which is based on a
claim, whether rightful or otherwise, that Work furnished under this Agreement
constitutes an infringement of any patent, copyright, trademark, trade secret or
other third party proprietary right, and Seller shall pay all damages, costs or
expenses, including attorneys’ fees, of Buyer in connection therewith.
- In case Work furnished under this Agreement is held to constitute an infringement
and the use of said Work is enjoined, Seller shall, at its own expense, either
procure for Buyer the right to continue using said Work, or replace same with
substantially equal but non-infringing Work meeting the requirements of this
Agreement. In the event neither of the foregoing is done, Seller shall be liable to
Buyer for all damages arising as a result thereof.
- II. Service Work
- Seller agrees that Buyer shall be the owner of all rights in intellectual property
created, conceived, developed or otherwise generated under Service Work in the
performance of this Agreement by or on behalf of Seller. Seller hereby assigns and
agrees to assign all right, title, and interest in the foregoing to Buyer, including
without limitation all copyrights, patent rights and other intellectual property
rights therein and further agrees to execute, at Buyer's request and expense, all
documentation necessary to perfect title therein in Buyer. Seller agrees that it
shall maintain and disclose to Buyer written records of, and otherwise provide Buyer
with reasonable access to, the subject matter covered by this clause and that all
such subject matter shall be deemed to be confidential information of Buyer and
subject to the confidentiality terms herein. Seller agrees to assist Buyer, at
Buyer's request and expense, in every reasonable way in obtaining, maintaining, and
enforcing Intellectual Property Rights on the subject matter covered by this clause.
Seller shall execute written agreements with Seller's employees and agents
(including, without limitation, contractors) to ensure that Seller can comply with
the terms herein, including the intellectual property and confidentiality terms.
- Seller will use commercially reasonable efforts to ensure that the Work and/or
Service Work performed and delivered under this Agreement shall not infringe or
otherwise violate the Intellectual Property Rights of any third party in the United
States or any foreign country. To the extent Seller or one of its agents causes or
contributes to an infringement or violation of Intellectual Property Rights of a
person or entity as described below, Seller agrees to defend, indemnify and hold
harmless Buyer, its stockholders, officers, directors, employees, agents, and
customers from and against any claims, damages, losses, costs and expenses,
including reasonable attorneys' fees, but excluding any indirect, punitive, special,
exemplary, incidental or consequential damages of whatever kind or nature, but not
excluding damages for willful infringement, arising out of any action by a third
party that is based upon a claim that the Work and/or Service Work performed or
delivered by Seller or one of its agents under this Agreement infringes or otherwise
violates the Intellectual Property Rights of any person or entity.
- Seller grants Buyer a paid-up, royalty free, perpetual, transferable non-exclusive
license under all Intellectual Property Rights (and the right to sub-license such
rights) owned or controlled by Seller or its agents, and needed to fully exploit any
Work and/or Service Work generated in the performance of this Agreement by or on
behalf of Seller.
19. Ownership of Work Product
- For the purposes of this Agreement, “Work Product” shall include, without limitation, all
designs, discoveries, creations, works, devices, masks, models, work in progress, service
deliverables, inventions, products, computer programs, procedures, improvements,
developments, drawings, notes, documents, information, and materials made, conceived or
developed by Seller alone or with others which result from or relate to the work performed
hereunder. “Work Product” does not include goods that are manufactured by Seller and sold to
Buyer without having been designed, customized, or modified for Buyer.
- Work Product, at all times shall be held as the sole and exclusive property of Buyer. Seller
hereby agrees to irrevocably assign and transfer all of its right, title, and interest in
and to the Work Product including all associated intellectual property rights to Buyer.
20. Termination
- Buyer may terminate this Agreement upon written notice to Seller if Seller fails to perform
or otherwise breaches any promise in this Agreement, files a petition in bankruptcy, becomes
insolvent, or dissolves. In the event of such termination, Buyer shall pay Seller for the
portion of the Work satisfactorily performed and those conforming Work delivered to Buyer
through the date of termination, less appropriate offsets, including any additional costs to
be incurred by Buyer in completing the Work.
- Buyer may terminate this Agreement for any other reason upon thirty (30) days’ written
notice to Seller. Seller shall cease to perform Work under this Agreement on the date of
termination specified in such notice. In the event of such termination, Buyer shall be
liable to Seller only for those services satisfactorily performed and those conforming Work
delivered to Buyer through the date of termination, less appropriate offsets.
- Seller may terminate this Agreement upon written notice to Buyer, if Buyer fails to pay
Seller within thirty (30) days after Seller notifies Buyer in writing that payment is past
due.
- Upon the expiration or termination of this Agreement for any reason:
- Each Party will be released from all obligations to the other arising after the date
of expiration or termination, except for those which by their terms or nature
survive such termination or expiration.
- Seller will promptly notify Buyer of all Buyer Information or any Work Product in
Seller’s possession and, at the expense of Seller and in accordance with Buyer’s
instructions, will promptly deliver to Buyer all such Information and/or Work
Product.
- Seller shall continue all work not terminated.
21. Insurance
- Seller shall be solely responsible for procuring and maintaining, and requiring its
associates and subcontractors to procure and maintain, adequate health, auto, workers’
compensation, unemployment compensation, disability, liability, and other insurance as
required by law or as is common practice in Seller’s industry, trade, or businesses,
whichever affords greater coverage.
- Upon Buyer’s request, Seller shall send a “Certificate of Insurance” showing Seller’s
compliance with these requirements. Seller shall name Buyer as an additional insured for the
duration of this Agreement.
- Insurance maintained by Seller pursuant to this provision of the Agreement shall be
considered primary with respect to the Buyer’s interest and is not contributory with any
insurance that Buyer may carry.
22. Stop Work Order
- Seller shall stop work for up to ninety (90) days in accordance with the terms of any
written notice received from Buyer, or for such longer period of time as the Parties may
agree.
- Seller shall take all reasonable steps to minimize the incurrence of costs allocable to the
work covered by this Agreement during the period of work stoppage.
- Within such period, Buyer shall either terminate this Agreement or continue the Work by
written notice to Seller. In the event of a continuation, an equitable adjustment in
accordance with the principles of the “Changes” clause shall be made to the price, delivery
schedule, or other provision affected by the work stoppage, if applicable, provided that the
claim for equitable adjustment is made within thirty (30) days after such continuation.
23. Quality Control
- Unless this Agreement contains other specific quality requirements, Seller shall provide and
maintain a quality control system to an industry recognized quality standard for the work
covered by this Agreement.
- Records of all quality control inspection work by Seller shall be kept complete and
available to Buyer and its customers.
23. Quality Control
- Unless this Agreement contains other specific quality requirements, Seller shall provide and
maintain a quality control system to an industry recognized quality standard for the work
covered by this Agreement.
- Records of all quality control inspection work by Seller shall be kept complete and
available to Buyer and its customers.
24. Remedies
- For the purchase of Work, Seller’s sole remedy in the event of breach of this Agreement by
Buyer shall be the right to recover damages in the amount equal to the difference between
market price of the Work completed at the time of breach and the purchase price specified in
this Agreement.
- No alternate method of measuring damages shall apply. Seller shall have no right to resell
Work for Buyer’s account in the event of wrongful rejection, revocation of acceptance,
failure to make payment, or repudiation by Buyer, and any resale so made shall be for the
account of the Seller.
26. Material Breach
Seller’s breach of any promise in this agreement including, but not limited to the promises
under the headings “Assignment or Delegation”, “Confidentiality”, “Compliance with Laws”,
“Delivery”, and “Warranty” will result in immediate Termination of this Agreement.
27. Applicable Laws
This Agreement shall be construed in accordance with, and disputes governed by the laws of
India, without reference to its conflicts of law principles.
28. Disputes
- For all disputes under this Agreement that are not disposed of by mutual agreement, Buyer
shall have all remedies available by law and at equity.
- Venue for any dispute arising hereunder shall be subject to the exclusive jurisdiction of
Bengaluru, Karnataka, India.
- Until final resolution of any dispute hereunder, Seller shall diligently proceed with the
performance of this Agreement as directed by Buyer.
30. Gratuities/Kickbacks
Seller warrants and agrees that no gratuities, in the form of gifts or otherwise, or kickbacks
have been offered or shall be offered or given by Seller, to any employee, agent or
representative of Buyer for the purpose of securing favorable treatment as a supplier.
31. Government Contracts
Seller understands that Work under this Agreement may be procured by Buyer in support of or to
satisfy Buyer’s obligations under agreements with Federal, State, or local governmental
entities. Seller acknowledges that certain terms under such government contracts may be
applicable to this Agreement. To the extent that any such terms are applicable to this
Agreement, Seller agrees that such terms are hereby incorporated by reference and are made a
part of this Agreement.
32. Independent Contractor
- Seller is an independent contractor for all purposes, without any express or implied
authority to bind Buyer by contract or otherwise.
- Seller, its employees, agents, or subcontractors are not agents or employees of Buyer, and
therefore are not entitled to any employee benefits from Buyer.
- Seller shall be responsible for all costs and expenses incident to performing its
obligations under this Agreement and shall provide Seller’s own supplies and equipment.
33. Force Majeure
Any delay or failure of either party to perform its obligations hereunder shall be excused if,
and to the extent that, it is caused by an event or occurrence beyond the reasonable control of
the party and without its fault or negligence. By way of example, this includes acts of God;
terrorism, restrictions, prohibitions, priorities or allocations imposed by or actions taken by
any governmental authority (whether valid or invalid); embargoes; fires; floods; windstorms;
explosions; riots; natural disasters; wars; sabotage; inability to obtain power; or court
injunction or order; provided that an event of force majeure shall not include any labor
disruptions, strikes, lockouts or slowdowns, or lack of or inability to obtain raw materials,
fuel, or supplies. Written notice of such delay (including the anticipated duration of the
delay) must be given to the other party as soon as possible after the commencement of the
occurrence (but no more than five (5) days thereafter). During the delay or failure to perform
by the Seller, Buyer, at its option, (a) may purchase Work from other sources and reduce its
Purchase Order to the Seller by such quantities, without liability to the Seller; or (b) may ask
the Seller to deliver to Buyer at Seller’s expense all finished goods, work in process and parts
and materials produced or acquired for Work under the Purchase Order; or (c) have the Seller
provide Work from other sources in quantities and at a time requested by Buyer and at the
purchase price set forth in the Purchase Order. In addition, the Seller, at its expense, shall
take all necessary actions to ensure the supply of Work to Buyer for a period of at least thirty
(30) days during any anticipated labor disruption or resulting from the expiration of the
Seller’s labor contracts. If Buyer requests, the Seller shall, within five (5) days of Buyer’s
request, provide adequate assurance that the delay will cease within thirty (30) days of Buyer’s
request. If the delay lasts more than 30 days or the Seller fails to provide such adequate
assurances, Buyer may immediately terminate the Purchase Order without liability to the Seller.
34. Business Continuity/Disaster Recovery Plan
The Seller shall, at its own expense, design, implement, and maintain a business continuity and
disaster recovery program and viable response and recovery capabilities for the Work provided
hereunder. As part of its periodic assessment of availability risks, the Seller shall consider
the need for geographic diversification of Work. At a minimum, the Seller’s core processing
facilities and operations will include full weekly backup and daily incremental backup to ensure
minimal exposure to systems failure. The Seller will make commercially reasonable efforts to
ensure the continuity of operations. Upon request of the Buyer, the Seller shall provide a copy
of its business continuity and disaster recovery program summary. The Seller shall regularly,
but no less than annually, test its business continuity and disaster recovery capabilities. The
Seller shall update its plans in a timely manner. In the event of a natural or other disaster
beyond the Seller’s control that interrupts the Seller’s performance of any services described
hereunder for any period, the Seller shall respond to such disaster in a commercially reasonable
time period in accordance with the procedures contained in the business continuity and disaster
recovery plans in order to resume performance of such services.
35. Social Responsibility and Conflict Minerals
Seller agrees to implement standards pertaining to labor, health & safety, environmental,
management systems, and ethics as set forth in the Responsible Business Alliance ("RBA") if such
standards are not already in-place. If Seller provides Buyer with Works that contain tin,
tungsten, tantalum, or gold, Seller shall provide Buyer with a completed Conflict Mineral
Reporting Template (“CMRT”) using the latest version published by the Conflict-Free Sourcing
Initiative at the time the Works are provided to Buyer. If any conflict mineral data, including
without limitation the smelter names or mine locations, included on the CMRT changes between the
time it is furnished to Buyer and the end of that calendar year, Seller will immediately provide
an updated CMRT to Buyer.
36. Generative AI Tools
Seller agrees to implement standards pertaining to labor, health & safety, environmental,
management systems, and ethics as set forth in the Responsible Business Alliance ("RBA") if such
standards are not already in-place. If Seller provides Buyer with Works that contain tin,
tungsten, tantalum, or gold, Seller shall provide Buyer with a completed Conflict Mineral
Reporting Template (“CMRT”) using the latest version published by the Conflict-Free Sourcing
Initiative at the time the Works are provided to Buyer. If any conflict mineral data, including
without limitation the smelter names or mine locations, included on the CMRT changes between the
time it is furnished to Buyer and the end of that calendar year, Seller will immediately provide
an updated CMRT to Buyer.
Generative AI Tools
- Seller will not, without Buyer’s prior written approval in each case, use any Generative AI Tools in connection with the Work to be provided under this Agreement. This includes, without limitation, using or including the Output (or any derivative work thereof) from any Generative AI Tool in any deliverable or work product delivered to Buyer.
- For purposes of the foregoing, "Generative AI Tool" means any software, technology, tool, or service (including any online or cloud-based service) that:
- Uses or relies upon machine-learning models trained on large volumes of data (including publicly available data).
- Is capable of generating text, images, sounds, videos, software code, or other content ("Outputs") in response to input prompts.
- Examples of Generative AI Tools include, but are not limited to, OpenAI ChatGPT, Google Bard, Microsoft Bing Chat (AI-enabled), GitHub Co-Pilot, Amazon CodeWhisperer, and similar tools.
- Seller represents, warrants, and covenants that:
- It will comply with all applicable terms of use and service agreements related to any Generative AI Tool.
- It will not include Buyer’s Confidential Information in any input or prompt to a Generative AI Tool.
- The Output and its use by Buyer will not infringe, violate, or misappropriate the intellectual property rights of any third party.
- Seller will promptly notify Buyer in writing of any non-compliance with the terms in this section, including any violations of the Generative AI Tools’ Terms of Use.
- Seller shall indemnify and hold harmless Buyer and its officers, directors, employees, agents, and affiliates from any claims, damages, losses, liabilities, costs, and expenses (including attorneys’ fees) arising from a breach of this section or the use of any Generative AI Tool by Seller.
Order Process
- The Purchase Order shall be submitted by the Buyer to the Seller via e-mail or Electronic Data Interchange ("EDI").
- Purchase Orders transmitted by e-mail or EDI are deemed received by the Seller on the day and at the moment of transmission.
- If the Seller does not accept a Purchase Order within five (5) days of receipt, Buyer is entitled to cancel the Purchase Order at no cost to Seller.
- By accepting the Purchase Order, Seller acknowledges having actual knowledge of the text of documents referenced herein.
- Seller’s acceptance of the Purchase Order is:
- Unqualified and unconditional.
- Subject only to these Purchasing Terms and Conditions and any terms set forth by Buyer on the Purchase Order or signed documents referenced therein.
- Buyer expressly rejects any additional or different terms and conditions, including those appearing in any quotation, acceptance, shipping documentation, invoice, or acknowledgment from Seller.
- Seller may not assert, as a defense, any conditions or limitations introduced through quotations, acceptances, invoices, or acknowledgments.
- Upon acceptance of the Purchase Order(s) referencing these Purchasing Terms and Conditions, Seller waives any right to contest their validity or claim they are void for any reason.
37. Noninterference
- Seller agrees not to interfere with the business of Buyer in any manner.
- Seller of custom Work to Buyer further agrees not to solicit or induce any employee or independent contractor to terminate or breach an employment, contractual, or other relationship with Buyer, during and for a period of two (2) years immediately after the termination or expiration of this Agreement.
38. Assignment or Delegation
Seller may not assign this Agreement, nor assign or otherwise delegate any of its rights or duties under this Agreement, without the prior written consent of Buyer. Any unauthorized assignment of any duties or obligations under this agreement by Seller is null and void, and immediately terminates this Agreement. Buyer may assign this Agreement at any time.
39. Amendments
Only the Buyer Purchasing Representative or an officer of Buyer has the authority to alter, amend or modify this Agreement. Such amendments, alterations or modifications must be in writing and signed by the authorized agent of Buyer.
39. Waiver
- Failure by Buyer to enforce any of the provision(s) of this Agreement shall not be construed as a waiver of the requirement(s) of such provision(s), or as a waiver of the right of Buyer thereafter to enforce each and every such provision.
- Buyer’s approval of documents shall not relieve Seller from complying with any requirements of this Agreement.
- A waiver of any default hereunder or of any term or condition of this Agreement shall not be deemed to be a continuing waiver or a waiver of any other default or any other term or condition.
41. Survivability
Any obligations and duties which by their nature extend beyond the expiration or termination of this Agreement shall survive the expiration or termination of this Agreement.
42. Severability
If any provision of this Agreement shall be deemed to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Both Parties agree to replace any invalid provision with a valid provision that closely approximates the intent and economic effect of the invalid provision.
43. Injunctive Relief
Due to the intellectual nature of the obligations and promises of Seller under this Agreement, Seller’s breach of any of the promises such contained in the Agreement (including, but not limited to the provisions under the headings “Confidentiality”, “Intellectual Property, and “Compliance with Laws”) may result in irreparable and continuing damage to Buyer for which there will be no adequate remedy at law. In the event of such breach, Buyer shall be entitled to seek injunctive relief, or a decree of specific performance, or both, and any such other and further appropriate relief.
44. Notices
Except as otherwise provided herein, all notices to be furnished by the Seller shall be in writing and promptly sent to the Buyer Purchasing Representative.
45. Acceptance of Agreement
- This Agreement is the complete, final, and exclusive statement of the terms of agreement between the Parties for the purchase of the Work and supersedes any and all other prior and contemporaneous written or oral communications, negotiations, and agreements between them relating to the subject matter hereof.
- Seller’s acceptance of Buyer’s PO, acceptance of payment, commencement of performance, or shipment of any portion of goods hereunder shall constitute Seller’s unqualified acceptance of everything in these terms and conditions.
- Additional or differing terms or conditions proposed by Seller or included in Seller’s acknowledgment hereof are hereby objected to and rejected by Buyer and have no effect unless expressly accepted in writing by Buyer.
- Buyer’s PO may be revoked at any time prior to acceptance.
46. Order of Precedence
Any inconsistencies in the Agreement shall be resolved in accordance with the following descending order of precedence: (1) terms appearing on the face of Buyer’s Purchase Order; (2) exhibits or attachments to Buyer’s Purchase Order as applicable, including any special terms and conditions listed therein; (3) Any signed master purchase agreement between the parties, and (4) these Purchasing Terms and Conditions.
47. Interpretation
This Agreement shall be construed neutrally with respect to Seller and Buyer, and the role of either Party in drafting or negotiating this Agreement shall not be relevant to disputes relating to this Agreement or to the interpretation or enforcement of this Agreement.
48. Headings
Headings in the contract are for purposes of reference only and shall not limit or affect the meaning hereof.