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<br />SBWMA <br />San Carlos, CA <br /> <br />Order Confirmation 7l77-R4 <br />June 30, 2009 <br /> <br />'<IP'" <br /> <br />Conditions of SalelWarrantv: <br /> <br />1. Pri ces <br /> <br />A. Terms of Offer. Prices will be guaranteed for a period of thirty (30) days from date appearing on the proposal, and will be <br />subject to revision should there be any changes in supplier's prices to BULK HANDLING SYSTEMS (hereinafter referred to as <br />"BHS "). All prices are subject to change in the event BUYER requests modifications of the product or system. <br /> <br />B. Taxes. Unless otherwise indicated no Sales, Use, Retailers, Occupation, Service Occupation, Service Use or other similar taxes <br />are included in the purchase price. The amount of any such taxes which are paid or payable, or assessed, in connection with any <br />order, and which are not specifically stated as being included in the purchase price, shall be paid by BUYER to BHS or, if <br />authorized by law, by BUYER directly to the taxing authority. <br /> <br />C. Pavment. Invoices are due upon presentation and will be submitted in accordance with the payment schedule as outlined in the <br />proposal. All sums due under this contract shall bear a finance charge of one and one-half (1 ~%) per month, or the highest lawful <br />rate, whichever is more, if not paid within ten (10) days of when due. Due date is deemed to be the date of the invoice. Upon <br />BUYER's breach of this agreement, BHS may accelerate notice, require a letter of credit or make shipment under reservation. <br /> <br />2. Shipment/Completion <br /> <br />A. Force Maieure. BHS' best efforts will be made to meet promised shipping/completion dates. However, where change in <br />shipping or completion dates is necessary, BHS will advise BUYER. The time of delivery named by us is the date for shipping <br />from our plants or warehouses. We will not be liable for delays in delivery or completion caused by any reason beyond our <br />control, including but not limited to, acts of God, casualty, civil disturbances, labor disputes, transportation or supply difficulties, <br />any interruption of our facilities, or act of any governmental authority, and the time for delivery specified herein shall be extended <br />during the continuance of such conditions and for a reasonable time thereafter. <br /> <br />B. Risk of Loss/F.O.B. Unless otherwise agreed in writing: (1) We are not responsible for damage to or loss of products after <br />delivery to the transportation company, however, we will cooperate in attempting to secure an adjustment when so requested; (2) <br />All shipments to be installed by a party other than BHS are F.O.B. our plant or warehouse from which the products are shipped; <br />and (3) In the event ofBHS installation, shipments shall be F.O.B. job site. <br /> <br />3. Securitv Al!reement. Until the purchase price is paid in full, title to the property shall not pass and BHS shall maintain a <br />security interest in the goods sold. PURCHASER shall execute, upon request, such financial statements, continuations, <br />terminations and other documents necessary to affect the intent of this paragraph. <br /> <br />4. Assil!nment. This agreement may not be assigned or transferred by BUYER, without the prior written consent ofBHS. <br /> <br />5. Arbitration. All disputes, differences or questions between the parties concerning the construction, interpretation and effect of <br />this agreement or of any claims herein contained or the rights and liabilities of the parties, shall be settled by arbitration in <br />accordance with the rules and regulations of the American Arbitration Association or the International Chamber of Commerce if <br />the licensed territory is not part of the United States of America. The seat of arbitration shall be at Eugene, Oregon, USA, or the <br />principal place of business of Buyer, as selected by BHS, or such other place as the parties may agree in writing. The decision of <br />the arbitrators shall be binding and final and may be registered as a judgment or otherwise enforced in any court of competent <br />jurisdiction. The fees and costs shall be shared equally by the parties; provided, however, the prevailing party shall be entitled to <br />recover its cost of arbitration, its share of arbitration fees, reasonable and necessary expenses in presenting its case. Such fees and <br />costs shall be detennined by the arbitrators and shall become part of the arbitration record. <br /> <br />6. Cancellation. A contract or order may not be canceled, once it becomes final, unless BHS at its sole option agrees in writing to <br />BUYER's cancellation of the contract. If BHS agrees, cancellation fees will be paid by the actual value of total job completion <br />attained at the time of BUYER's notification to BHS of intention to cancel. <br /> <br />2A MRF Sorting Equipment <br />45 of 46 <br /> <br />Bulk Handling Systems (BHS) <br /> <br />Page 45 <br />