UNISOURCE WORLDWIDE, INC., AS BUYER TERMS AND CONDITIONS

Standard Terms and Conditions of Sale Unisource as Buyer
  1. Buyer will order the goods or services described herein only upon the terms and conditions contained herein. Seller’s acceptance of this order shall occur either through commencement of performance under this order or acknowledgment of this order. By accepting this order, Seller waives all terms and conditions contained in its quotation, acknowledgment, invoice or other documents which are different from or additional to those contained herein and all such different or additional terms and conditions shall be null and void. SELLER MAY NOT CHANGE MATERIAL OF MANUFACTURE, SOURCES OF SUPPLY, MANUFACTURING PROCESS OR LOCATION WITHOUT THE PRIOR WRITTEN CONSENT OF BUYER.
  2. Time is of the essence. In accepting this order, Seller agrees to make deliveries in quantities and at times specified by Buyer. Buyer shall not be liable for payment of goods delivered to Buyer in excess of quantities specified by Buyer. Buyer may from time to time change delivery schedules or direct the temporary suspension of scheduled shipments. Title and risk of loss of goods will pass to Buyer at point of delivery to Buyer's location.
  3. In addition to all warranties provided by law, Seller expressly warrants that all goods and services to be provided pursuant to this order shall: conform to specifications, drawings, samples or other descriptions furnished by Seller or specified by Buyer; shall be free of liens and encumbrances, merchantable, of good material and workmanship and free from defects; and shall be fit and sufficient for the purpose intended. Buyer approval of specifications, drawings, samples and/or other descriptions furnished by Seller shall not relieve Seller of its obligations under this order. These warranties shall survive any inspection, acceptance or payment by Buyer, and shall be for the benefit of Buyer, its successors, assigns, customers, and the end-users of the goods or services to be provided pursuant to this order.
  4. This order may be changed or canceled by Buyer at any time at its option in whole or in part without penalty to Buyer at any time prior to shipment. Buyer shall determine the amount, if any, due Seller with respect to such cancellation and such determination shall be final.
  5. All goods shall be received subject to Buyer’s inspection and rejection. Defective goods and goods otherwise not conforming to this order shall be held for Seller’s instruction and at Seller’s risk, and if Seller so directs, shall be returned at Seller’s expense. No defective goods shall be replaced without a new purchase order. Payment by Buyer shall not be construed as an acceptance of goods. Buyer may return to Seller any nondefective, excess goods within ninety (90) days of receiving them.
  6. Any materials including but not limited to tools, molds, dyes, gauges, jig fixtures and patterns furnished by Buyer in connection with this order shall be held by Seller, as bail for hire, for use only in filling Buyer’s orders; be kept separate and clearly identified by Seller as Buyer’s property; and shall be insured by Seller. All such materials not consumed in the performance of this order shall be returned to Buyer at Buyer’s direction.
  7. Seller at its own expense shall furnish, keep in good condition, insure and replace, as needed, all tooling and other materials necessary for the performance of this order. If Seller supplies special tooling or other materials related principally to this order, Buyer at any time may purchase and take possession of any such tooling or other materials by paying Seller the unamortized cost thereof.
  8. Seller agrees not to use or disclose to others any confidential information, drawings or data, whether nor not designated as such, supplied, furnished or disclosed by Buyer, except as reasonably required to fill this order. All ownership interest in inventions and/or ideas, whether or not patentable, made, conceived, developed or acquired by Seller incident to the filling of this order shall vest in and insure to Buyer’s sole benefit.
  9. Seller shall defend, indemnify and hold harmless Buyer from any loss of damage sustained by, from and against any loss, claim or damage, including but not limited to, injuries and damage to person or property, or infringement asserted against, Buyer, its directors, employees, agents, successors, assigns, customers and/or end-users of the goods and services furnished under this order arising from (i) any alleged infringement of any trademark, patent, copyright or other proprietary right, by reason of the sale or use of the goods and/or services furnished under this order; (ii) use of the products or services provided hereunder; (iii) breach by Supplier of any of its representations, warranties, covenants, this order and/or any agreements contained herein; or (iv) any act or omission of Seller, its agents, employees, representatives or subcontractors or failure to comply with the terms hereof. If any of the goods or services provided pursuant to this order or any part thereof is held to constitute infringement and its use is enjoined, Seller shall at its own expense either procure for Buyer, its successors, assigns, customers and the end-users of the goods and services the right to continue using such goods or services or part thereof, or replace them with a non-infringing good or service.
  10. Seller agrees to carry the following insurance coverage with an insurance carrier reasonably acceptable to Buyer: (1) comprehensive general liability coverage, including contract liability coverage, in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate for bodily injury or property damage, for products and (2) automobile liability insurance in the amount of $1,000,000 per occurrence combined single limit, or $1,000,000 per occurrence for bodily injury and $500,000 per occurrence for property damage. Buyer shall be named as an additional insured. Seller agrees to provide, upon Buyer’s request, certificates of insurance evidencing such coverage and providing that Buyer shall receive at least thirty (30) days prior written notice of any cancellation of or changes to such coverage.
  11. Seller warrants that in furnishing the goods hereunder, all applicable American standards (including, but not limited, to, ANS, ASME, ASTM and NEMA) have been complied with at the time of delivery. When goods purchased hereunder are to be manufactured or produced outside the United States or its territories, Seller shall furnish at Buyer’s request documents stating the foreign manufacturers’ or producers’ names and addresses, and containing written assurances of compliance with American standards.
  12. Seller shall, in its performance under this order, comply with all applicable federal, state, and local statutes, rules of law, ordinances, regulations, and regulatory orders including, but not limited to, the Fair Labor Standards Act of 1938, as amended, Walsh-Healy Act, Robinson-Patman Act, applicable State Workers’ Compensation laws, state and federal Occupational Safety and Health Acts, all applicable toxics in packaging laws and regulations, and all rules and regulations passed pursuant thereto, which are incorporated herein by this reference. Seller agrees to be subject to all applicable contract clauses required by federal, state, or local law, rule or regulation to be included in the program, including, but not limited to, the following clauses, which are incorporated herein by this reference: Equal Opportunity Clause (41 C.F.R. § 60.1.4); Equal Opportunity Clause for Special Disabled Veterans and Veterans of the Vietnam Era (41 C.F.R. § 60-250.5(a)); Equal Opportunity Clause for Workers with Disabilities (41 C.F.R. § 60-741.5(a)); Employee Notice Clause of Beck Rights (29 CFR § 470.1 et seq.); and the Certification of Nonsegregated Facilities Clause (41 C.F.R. § 60-1.8; 41 C.F.R. § 60-741.21; 41 C.F.R. § 60-250.21(b)). In addition, Seller agrees and certifies, if applicable, that it has developed a written affirmative action compliance program (41 C.F.R. § 60-1.40(a)) and annually files Standard Form 100 (EEO-1) (41 C.F.R. § 60-1.7(a)) and Vets-100 Federal Contractor Report on Veterans' Employment (41 C.F.R.§ 61-250.10). Where applicable, vendors and subcontractors are notified that they may be subject to the provisions of 41 C.F.R. § 60-1.4(a); 41 C.F.R. § 60-250.5(a); 41 C.F.R. §60-741.5(a); and 29 C.F.R. § 470.1 et seq. with respect to affirmative action requirements, reporting and notice obligations.
  13. If the goods sold hereunder are subject to the OSHA Hazard Communication Standard 20 CFR Part 1910, or to such other state hazard communications laws, regulations, or standard as OSHA may have approved (the “Standard”), Seller shall provide Buyer with a complete and accurate Material Safety Data Sheet for each of the goods sold hereunder and shall label each of the goods as required by the standard. Seller’s failure to supply such sheet or to so label the goods shall be deemed to constitute Seller’s warranty, representation, and covenant that each of the goods sold hereunder is exempt from the standard.
  14. This order shall be construed, interpreted and controlled by the laws of the State of Georgia, and all claims arising out of or related to the parties’ relationship created by this order, whether contract, tort or otherwise, shall be governed and decided pursuant to the laws of the State of Georgia. Seller agrees to subject itself to the courts of Georgia and such venue shall be exclusive regarding disputes arising out of this order.
  15. These terms and conditions contained herein constitute the entire agreement between the parties relating to the goods and services that are the subject hereof. No modification shall be binding upon Buyer unless in writing signed by Buyer’s duly authorized representative. Seller may not assign its rights and obligations under this order. Buyer shall be entitled to set off any amount owing from Seller to Buyer against any amount payable by Buyer to Seller. The waiver of any one breach or default made in accordance with the terms of this Agreement will not waive any subsequent breach or default of the same or different kind.

as of April 16, 2008