ACCEPTANCE

All orders and sales contracts are subject to acceptance or rejection by the K.R. Anderson, Inc. constitutes a complete and binding contract governed by the terms and conditions of sale appearing herein and by the laws of the State of California. Acceptance is at all-time subject to availability for delivery of the goods covered by each order and to the K.R. Anderson, Inc. prices for said goods in effect at the time of shipment, unless otherwise agreed in a separate agreement signed by buyer and K.R. Anderson, Inc. prices on the face hereof are those in effect the date this acknowledgement was prepared.

END OF USE

Determination of the suitability of the goods purchased for the use contemplated by buyer of buyer’s customers for such goods is the sole responsibility of buyer or buyer’s customers, whichever the case may be and K.R. Anderson, Inc. shall have no responsibility in connection therewith. Buyer assumes all risk and liability for loss, damage or injury to property of buyer of others, arising out of the use of possession of the goods furnished hereunder.

WARRANTY

K.R. Anderson, Inc. warrants only that the good supplied hereunder shall meet the description or specifications stated herein. Buyer’s exclusive remedy and K.R. Anderson, Inc. sole liability hereunder shall be limited to refund of the purchase price of, or replacement of, all goods shown to be otherwise than as warranted and K.R. Anderson, Inc. shall in no case be liable otherwise for incidental or consequential damages. Provided nothing contained therein shall limit the buyer’s right to recover consequential damages for injury to his person when the good purchased are consumer goods. Said refund or replacement is conditional on buyer giving K.R. Anderson, Inc. notice within ninety (90) days from the date of shipment by K.R. Anderson, Inc. that said good are otherwise than as warranted. Failure by buyer to give said notice within said ninety (90) day period shall constitute a waiver by buyer of all claims hereunder with respect to said goods. If requested by K.R. Anderson, Inc. buyer shall promptly return to K.R. Anderson, Inc. plant all unconsumed goods alleged by buyer to be otherwise than as warranted and K.R Anderson, Inc. will pay freight thereon.

“THE ABOVE WARRANTY IS IN-LIEU-OF ALL OTHER WRITTEN OR UNWRITTED EXPRESSED OR IMPLIED WARRANTIES AND K.R. ANDERSON, INC. HEREBY EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLED WARRANTY AGAINST INFRINGEMENT, OF MERCHANTABILITY, OR FITNESS FOR PURPOSE OF THE GOODS SUPPLIED HEREUNDER ALL SAID GOODS BEING SUPPLIED BUYER AS IS.”

TITLE AND RISK OF LOSS

Title and risks of loss or delay to all goods supplied hereunder shall pass to buyer upon K.R. Anderson, Inc. delivery thereof to carrier as shipping point.

QUOTATIONS

Unless otherwise specified, quotations are for information only and are not intended as an offer and are subject to change without notice in all respects, including prices, delivery dates, terms, quantities or specifications.

FREIGHT TERMS

F.O.B. Origin, Freight Collect. For small package service (i.e. UPS, FedEx Ground) shipments will be made F.O.B. origin, with freight prepaid and added to invoice. The most economical routing will be used at the discretion of K.R. Anderson, Inc. Additional transportation costs incurred at buyer’s discretion or resulting from his request will be at buyer’s expense.

FAIR LABOR STANDARDS ACT

K.R. Anderson, Inc. hereby certifies that the goods supplied hereunder to buyer were produced in compliance with the requirements of the Fair Labor Standards Act, as amended and of regulations and orders of the United States Department of Labor issued there under.

PAYMENT TERMS

Payment terms are net 30 from invoice date. There will be a 1 1/2% late charge per month (18% APR) on past due balances. In the event suit is necessary to enforce collection, purchaser agrees to pay a reasonable attorney fee and any court costs incurred.

ENTIRE AGREEMENT

The above terms and conditions represent the entire agreement between K.R. Anderson, Inc. and buyer with respect to the safe of goods supplied hereunder and said agreement cannot be modified except by a new written contract signed by both K.R. Anderson, Inc. and buyer covering the sale of said goods.