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TERMS AND CONDITIONS OF SALE <br /> 1. ACCEPTANCE. Buyer's execution and delivery of the Purchase Agreement shall <br /> constitute Buyer's assern to these Terms and Conditions,including,without limita�ion the pmvisions ofthis <br /> Paragraph 1. No terms or conditions stated by Buyer in its purchase order,order confinnation,or othernvise, <br /> shall be binding upon Seller if in conflid or at variance with the Purchase Agreement or these Terms and <br /> Conditions unless expressly agreed to in writing by Seller, and all such other terms and conditions are <br /> hereby rejected. In the event of any conflid between these Ternis and Conditions and any terms and <br /> canditions set forth by Buyer in its purchase order,order confirmation,or otherwise,the provisions of the <br /> Purchase Agrcement and these Terms and Conditions shall govem and co�rol. <br /> 2. MODIFICATIONS AND SUBSTITUTIONS. Seller reserves the right,as it may deem <br /> necessary or appropriate, after consultation with Buyer, to modify or change the specifications of the <br /> Equipment prior to delivery, provided that such modifications or changes shall not adversely affect the <br /> perforniance or reliability of the Equipment. <br /> 3. PAYMENT AND TAXES. Buyer agrees to pay all amounts payable to Seller when due, <br /> TIME BEING OF TI-IE ESSENCE, including,without limitation,any such amounts payable as provided <br /> for herein,and shall pay freight and California use taxes applicable to purchase of the Equipment. <br /> 4. FORCE MAJEURE. Seller sha11 not be liable for any failure to perform or delay in <br /> perforniance of its obligations hereunder caused by circumstances beyond its reasonable control including, <br /> but not limited to,fire,storm,flood,earthquake,e�losioq accident,acts of public enemy,waz,rebellion, <br /> insurrection, riot, sabotage, epidemic,transportation restrictions, acts of God, acts of any govemment or <br /> any agency thereof,judicial action,inability to obtain or delays in obtaining machinery,parts,materials,or <br /> sufficient qualified labor, or any ot�►er causes beyond Seller's reasonable control, whether similaz or <br /> dissimilaz to the foregoing. In the event of such a delay,delivery date of Equipment shall be appropriately <br /> adjusted to accommodate for such delay. <br /> 5. PAYMENT TERMS. Unless otherwise agreed by Buyer and Seller in writing,payment <br /> terms are as set forth in tlus Purchase Agreement. When the Equipment is ready for delivery to Buyer, if <br /> without good cause Buyer fails to provide shipping instructions or�herwise improperly withholds direction <br /> for the delivery thereof, the Products will be shipped to Buyer's facility, shipment will be considered <br /> accomplished and the balance of the Purchase Price will be due immediately. <br /> 6. TITLE; SECURITY AGREEMENT. Tit1e to the Equipment will pass to Buyer when <br /> delivered to the Buyer at the location specified in t�is Purchase Agreement. Until the Punchase Price is <br /> paid by Buyer in full, Seller shall retain a first priority lien and purchase money security interest in the <br /> Equipment purchased herein by Buyer, including any replacements, additions and improvements to the <br /> Equipment or proceeds resulting from any disposition thereof and any insurance proceeds resulting from <br /> any damage or destrudion thereof. Buyer hereby authorizes Seller to execute on its behalf and file a UCC- <br /> 1 to evidence its retetrtion of a securifiy interest in the Equipment until payment in full,whereupon Seller <br /> sha11 release the UCC-1. <br /> 7. RISK OF LOSS; INSURANCE. All risk of loss or damage to the Equipment shall pass <br /> and be assumed by the Buyer upon Seller's delivery of the Equipment to the Buyer at the location specified <br /> in this Purchase Agreement. Upon receipt,Buyer shall insure the Equipment in an amount equal to at least <br /> the unpaid portion of its purchase price against a11 risks subject to nonnal exclusions from the time the risk <br /> of loss passes to the Buyer,and continuously thereafter until the Equipment is paid for in full. Upon request, <br /> (2�J <br /> Buyer's Initials <br /> REV:07-22-14 MLG <br /> Page S of 11 <br />