Terms and Conditions of Purchase 

ACCEPTANCE. The purchase order including these Terms and Conditions of Purchase and all documents referenced therein and herein (collectively, the “Order”) is an offer by Marmon Foodservice Technologies, Inc. (“Buyer”) to purchase the goods (“Goods”) and/or services (“Services” and together with the Goods, the “Deliverables”) described in Buyer’s Order from the person or entity to whom the Order is addressed (“Seller”). Acceptance is limited to the terms of the Order. The Order is the only terms and conditions which govern the purchase of Deliverables by Buyer and supersede all prior and contemporaneous terms and conditions, oral or written, and all other communications between the parties suggesting additional or different terms. Any proposal for additional or different terms or any attempt by Seller to vary in any degree any of the provisions of the Order is hereby deemed material and objected to and rejected. Unless otherwise stated herein, Seller’s acknowledgment of the Order, shipment of Goods or commencement of any Services shall constitute acceptance by Seller of the Order. Notwithstanding anything herein to the contrary, if a written contract signed by both parties is in existence covering the sale of the Deliverables covered hereby, the terms and conditions of said contract shall prevail to the extent they are inconsistent with the terms of the Order. 

PRICES. The prices are as stated on the Order or Seller’s prevailing prices, whichever is lower, and are otherwise fixed, firm and not subject to increase. Unless otherwise expressly agreed by Buyer in writing, the price includes all taxes (sales, use, excise, privilege, ad valorem, and other taxes, duties, tariffs and assessments now or hereafter imposed or levied) and charges for packing, hauling, storage and transportation to Buyer’s designated point of delivery. Any price reduction subsequent to the Order but prior to payment will be applied to the Order. No increase in the price is effective, whether due to increased material, labor or transportation costs, supply chain disruptions or otherwise, without the prior written consent of Buyer. Buyer is not obligated to any minimum purchase or future purchase obligations. Forecasts, estimates and similar projections of Buyer are non-binding and are not purchase commitments. Buyer shall have no obligation to purchase or otherwise compensate Seller for any of Seller’s finished products, work in process or raw materials, not expressly covered by an Order issued by Buyer. If Seller sells or offers to sell any goods or services of the same or similar type as the Deliverables at a lower price and/or on more favorable terms or conditions to any other person or entity, Seller shall provide written notice to Buyer, whereupon Buyer shall have the option to the more favorable price, terms and/or conditions applied to this Order and Orders thereafter. 

PAYMENT TERMS. Seller shall issue an invoice to Buyer on or any time after the completion of delivery of Goods or Services. Unless otherwise agreed by Buyer in writing, Buyer shall pay all properly invoiced amounts due to Seller within 90 days after Buyer’s receipt of such invoice, except for any amounts disputed by Buyer. Without prejudice to any other right or remedy it may have, Buyer reserves the right to set off at any time any amount owing to it by Seller against any amount payable by Buyer to Seller. 

SHIPPING. Time is of the essence. Unless otherwise agreed by Buyer in writing, all shipments are FCA Port of Departure (Incoterms 2020) using carriers and freight forwarders as designated by Buyer or Buyer’s agent. Seller shall deliver Goods in the quantities and on the date(s) specified in the Order. Buyer shall not be obligated to accept untimely, excess, or under or over shipments and such shipments may, at Buyer’s option, be returned to Seller in whole or in part, or held for disposition, at Seller’s expense and risk. Buyer to inform Seller of any discrepancies in the order no more than 30 days after receipt at the Buyer’s facility. Seller shall pack and deliver all Goods as instructed by Buyer in a manner sufficient to ensure that the Goods are delivered undamaged. Title shall transfer when goods are received at Buyer’s facility. 

WARRANTIES. Seller warrants that (I) all Deliverables are and will be (a) in full conformity with specifications, drawings, samples, quantities, delivery schedules, and descriptions furnished or specified by Buyer; (b) free from defects in material, workmanship and design, (c) merchantable and fit and sufficient for the purposes intended; (d) free and clear of all liens, Claims, security interests or other encumbrances; (e) free of claims of infringement or misappropriation of any third party’s intellectual property rights; and (f) produced or provided in compliance all applicable foreign, federal, provincial, state, and local laws and regulations as well as requirements and standards applicable to the Deliverables including without limitation REACH, RoHS and Prop. 65 (“Laws”); and (II) Seller shall (a) comply with all applicable Laws and Buyer’s prime contract (if any); and (b) refrain from engaging in any illegal, unethical, or deceptive practices. All warranties shall survive inspection, testing, delivery, acceptance, termination and payment and failure to inspect, test or discover any defect or other nonconformance. These warranties shall be in addition to all other warranties, express, implied or statutory. NO ATTEMPT BY SELLER TO DISCLAIM, EXCLUDE, LIMIT, OR MODIFY ANY WARRANTIES OR SELLER’S LIABILITY FOR DIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES SHALL BE OF ANY FORCE OR EFFECT. 

INSPECTION. All Deliverables are subject to inspection and testing by authorized representative(s) of Buyer and/or Buyer’s customers at all reasonable times and places, including during production. Buyer reserves the right to reject or revoke acceptance, in whole or in part, of Deliverables which fail to meet any requirement of the Order, notwithstanding inspection, testing, delivery, acceptance and/or payment and such Goods may, at Buyer’s option, be returned to Seller at Seller’s cost or held for disposition at Seller’s risk and expense. If Buyer requires replacement of the Goods, Seller shall, at its expense, replace the nonconforming or defective Goods, or refund all monies paid, and pay for all related expenses. 

INDEMNIFICATION. Seller, shall defend, indemnify, and hold Buyer, its affiliates and their respective officers, directors, members, managers, shareholders, employees, customers, successors and assigns, harmless against any and all claims, demands, damages, losses, liabilities, lawsuits, dispute resolution, judgments, fines, settlements, penalties, costs and expenses including without limitation all attorneys’ fees and litigation costs and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers, whether direct, indirect, incidental, consequential, or otherwise (collectively, “Claims”) arising out of relating to (i) the Deliverables (including death, injury and property damage); (ii) actual or alleged act, omission, negligence or failure to comply with the Order or any other agreement between Buyer and Seller; (iii) any Recall; (iv) actual or alleged infringement or misappropriation of any IP Right; (v) loss or damage to Buyer’s Property; (vi) social engineering fraud, cyberattacks, other fraudulent activity related to the payment to Seller, or any such related activity; and (vi) Seller’s breach of the Order. Seller shall not enter into any settlement without Buyer’s prior written consent. This indemnification is in addition to the warranty obligations of Seller. BUYER WILL NOT BE LIABLE FOR ANY LOSS OR DAMAGE CAUSED BY A DISTRIBUTED DENIAL-OF-SERVICE ATTACK, SOCIAL 


INTELLECTUAL PROPERTY. Seller represents and warrants that the manufacture, sale, performance and use of the Deliverables will not infringe any patent, copyright, trademark, trade secret, know how or other intellectual property or proprietary right (“IP Right”). If all or any portion of the Goods are held to constitute an infringement of a patent and/or their use is enjoined for any reason, Seller shall promptly, and at its own expense, either procure for Buyer the right to continue using such Goods royalty-free or replace such Goods to Buyer’s satisfaction with non-infringing goods of equal quality and performance. 

INSURANCE. Seller shall obtain and at all times in which the Order is in effect and for no less than two (2) years thereafter, maintain at its cost insurance as designated by Buyer from time to time, but no less than insurance with insurers having a current A.M. Best rating of “A- VIII” or better: (1) primary comprehensive or commercial general liability insurance with limits of at least $2 million per occurrence combined single limit for bodily injury and property damage with a $2 million products-completed operations aggregate and a $2 million general aggregate, including coverage for: (i) Products and Completed Operations liability; (ii) Blanket Contractual liability; and (iii) Cross Liability endorsement or Severability of Interest clause. Insurance required shall: (1) be endorsed to insure Buyer, its officers, directors, employees, representatives and agents as additional insureds; (2) be endorsed to waive any rights of subrogation against Buyer; (3) provide contractual liability coverage to Seller for its indemnity obligations; and (4) be endorsed to provide that such insurance is primary to and non-contributory with any other insurance obtained by, for or on behalf Buyer notwithstanding any “other insurance” provision contained within such policies. Seller shall provide written notice to Buyer no less than 30 days prior to the effective date of cancellation or material reduction of any required insurance coverage. Prior hereto and at any time upon reasonable request, Seller shall provide certificates of insurance to Buyer along with other documentation as may be reasonably required by Buyer to evidence the insurance coverages required herein. Except where prohibited by Law, Seller shall require its insurer to waive all rights of subrogation against Buyer’s insurers and Buyer. 

CHANGES. No change to any Order is binding upon Buyer unless in a signed writing stating that it amends such Order. Buyer shall have the right at any time to make changes in drawings, specifications, quantities, materials, packaging, time and place of delivery, Deliverables and method of transportation, and cancel an Order, in whole or in part, without liability. If any such changes result in an increase or decrease in the cost or the time required for performance, an equitable adjustment may be made by Buyer or Buyer may, at its option, terminate an Order if agreement on an adjustment cannot be reached. Claims for adjustment must be asserted by Seller within ten days of the change order. Seller agrees to accept any such changes. 

RECALL. In the event that Buyer determines, in Buyer’s sole discretion, that any defect, nonconformance or deficiency in any of the Goods requires a field campaign, recall, similar or other action (“Recall”) to repair, replace or remediate any Goods or any of Buyer’s products in which Goods are incorporated, Seller shall be liable to Buyer and its customers for all damages, costs and expenses with regard to the foregoing including, without limitation, attorneys’ fees and court costs. 

FORCE MAJEURE. Buyer shall not be liable for failure to take delivery of the Goods or to allow performance of the Services or to otherwise perform hereunder if such failure or inability is due to causes beyond Buyer’s control. 

TERMINATION. Buyer may terminate any Order, in whole or in part, without liability to Buyer at any time, if (i) Seller breaches the Order or fails to deliver the Goods or to perform the Services by the specified time; (ii) a petition initiating a proceeding under any applicable Law relating to bankruptcy, insolvency, or reorganization is filed by or against Seller; (iii) Seller is insolvent or executes an assignment for the benefit or creditors; (iv) a receiver is appointed for Seller or any substantial part of its assets; (v) Buyer is insecure with respect to Seller’s ability to perform and Seller in unable to provide Buyer with adequate assurance of its ability to perform within five days after Buyer’s request therefore; or (vi) Buyer provides no less than seven (7) days’ written notice to Seller. Buyer’s rights and remedies are cumulative, not exclusive and in addition to its rights and remedies at law, in equity or otherwise. No termination shall affect any accrued rights or obligations of either party as of the effective date of such termination. Upon receipt of notice of any termination, Seller shall, unless the notice directs otherwise, immediately discontinue all work. 

PROPERTY. Title to and right of immediate possession of any property, including, without limitation, patterns, tools, jigs, dies, equipment and materials (“Buyer’s Property”) furnished or paid for by Buyer shall be and remain the sole property of Buyer. No articles made therefrom shall be furnished by Seller to any other person or entity without Buyer’s prior written consent. All Buyer’s Property shall be clearly marked or tagged to indicate Buyer’s ownership. Seller shall bear the risk of loss or damage to the Buyer’s Property until it is returned to Buyer. Seller shall be responsible for maintaining adequate records and maintenance and protection of Buyer’s Property and shall return Buyer’s Property to Buyer immediately upon demand. Seller waives any lien rights or other rights to retain Buyer’s Property and acknowledges that its obligation to return Buyer’s Property upon demand is unconditional. 

AUDIT. Seller will maintain books and records that accurately and completely reflect the nature and purpose of all payments and transactions made or conducted in connection with this the Order and its relationship with Buyer. Buyer and its designees shall have the right to audit and inspect Seller and Seller’s suppliers books, records and facilities to determine Seller’s and its supplier’s compliance with the Order compliance with Buyer’s or its affiliates Code of Business and Ethics and all Anti-Corruption Laws. Seller shall cooperate with any audit or investigation conducted in connection therewith. 

NOTICES. All notices to Buyer be given in writing and will be effective upon personal delivery, on the third day after mailing if sent by certified mail, postage prepaid, return receipt requested, or two business days after deposit if sent by a nationally recognized courier service which maintains evidence of the time, place and receipt of delivery, and in each case if addressed as set forth in the Order (or such other addresses a party may designate in writing from time to time). 

INFORMATION. All information, documents, specifications, suggestions, comments and data (“Information”) heretofore or hereafter furnished or disclosed by Buyer to Seller is and shall remain the confidential and proprietary information of Buyer and shall be maintained in strict confidence and only used for purposes of fulfilling an Order. Further, Seller shall not in any manner advertise or publish the fact that it has furnished Buyer, or contracted to furnish Buyer, any Deliverables without the prior written consent of Buyer. BUYER MAKES NO WARRANTY WITH RESPECT TO INFORMATION. ANY IMPLIED WARRANTIES THAT MAY EXIST WITH RESPECT TO ANY INFORMATION PROVIDED BY BUYER, INCLUDING ANY WARRANTY OF MERCHANTABILITY AND WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE ARE EXCLUDED. 

INVOICES. The parties agree that for any transactions, facsimile signatures shall be accepted as original signatures, orders may be transmitted electronically and any document created pursuant to an Order may be maintained in electronic format; a copy of which shall be considered an original. Neither party shall raise any objection to the authenticity of any Order nor any document created thereto, based on the use of a facsimile signature, electronic order or the use of an electronic copy. Notwithstanding the foregoing, any changes in payment processes or procedures must be verified by Buyer. 

SUPPLIERS. Seller and its suppliers must have a counterfeit product prevention and detection plan in place in their quality management system. The plan must include the ability to monitor and report any counterfeit products to the proper statutory and regulatory authorities. Seller shall immediately notify Buyer in writing of any counterfeit Deliverables discovered. Seller and its suppliers are solely responsible for those employees performing activities on purchase orders and acknowledge that they are aware of their contribution to Deliverable conformity and product safety. 

CONFLICT MINERALS. Seller represents and warrants that the Goods do not contain any Conflict Minerals pursuant to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and associated rules and if the Goods do contain Conflict Minerals, Seller shall provide a written report to Buyer and provide direction on how to proceed. If the status of any Goods changes during performance of the Order so that the representations and certification contained in this clause are no longer accurate, then Seller must complete and submit a written report to Buyer. 

EXPORT CONTROL. Seller shall comply with all applicable Laws regarding export-controlled goods, including the requirement for contractors or Sellers to register with the U.S. Department of State in accordance with the International Traffic in Arms Regulations (“ITAR”). 

BUSINESS CONDUCT. Seller has received a copy of Buyer’s or its affiliate’s Prohibited Business Practices Policy and Code of Business and Ethics (“Code of Business Ethics”) and agrees to abide by its terms. Seller represents and warrants that, in carrying out Seller’s obligations hereunder or otherwise, Seller and its owners, officers, directors or employees (i) will comply with all applicable anti-corruption laws, including, but not limited to, the U.S. Foreign Corrupt Practices Act of 1977 and the U.K. Bribery Act 2010 (“Anti-Corruption Laws”); (ii) will not provide anything of value to a Government Official, whether directly or indirectly, in order to obtain or retain business, including, but not limited to, any offer, payment, promise to pay, or authorization of the payment of anything of value to (x) influence any act or decision of a Government Official in his/her official capacity; (y) induce such Government Official to do or omit to do any act in violation of the lawful duties of such official; or (z) otherwise secure an improper business advantage. This includes, but is not limited to, cash, gifts, entertainment, travel, political or charitable contributions or any other items of value. Seller shall at all times conduct its activities in accordance with all applicable Laws including those related to anti-bribery or anti-corruption legislation including, but not limited to, the US Foreign Corrupt Practices Act of 1977 and all national, state, provincial or territorial anti-bribery and anti- corruption statutes. Accordingly, Seller shall make no offer, payment or gift, will not promise to pay or give, and will not authorize, directly or indirectly, the promise or payment of, any money or anything of value to any Buyer employee or agent, any government official, any political party or its officials, or any person while knowing or having reason to know that all or a portion of such money or item of value will be offered, given or promised for the purpose of influencing any decision or act to assist Seller or Buyer or otherwise obtaining any improper advantage or benefit. 

MISCELLANEOUS. All waivers by Buyer shall be in writing. No delay or omission in the exercise of any right, power, or remedy of Buyer hereunder shall impair such right, power, or remedy or be considered to be a waiver of any default or acquiescence therein. Seller shall not assign any Order or any monies due or to become due from Buyer without Buyer’s prior written consent. The Order shall be construed in accordance with the laws of the state of Buyer’s principal place of business or the state of Buyer’s incorporation, without regard to any rules on conflicts of laws. In case any one or more provisions contained in an Order shall be invalid, illegal, or unenforceable in any respect, the validity, legality, or enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. Provisions which by their nature should survive will remain in force after any termination or expiration. The section headings contained herein are not part of the Order and are included solely for the convenience of the parties. If any term or provision of the Order is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of the Order or invalidate or render unenforceable such term or provision in any other jurisdiction. Provisions of the Order which by their nature should apply beyond their terms will remain in force after any termination or expiration of the Order.