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Based on Trade Customs Adopted by Printing Industry of America, Inc. <br />1. This proposal is made and, if accepted by Southeastern (“Printer”), order will be entered subject to the following trade customs and any other <br />conditions expressed herein, which are hereby understood to be binding on both parties. Terms of this proposal shall be limited to thirty (30) days from <br />date to proposal. It is to be clearly understood that such terms constitute the entire agreement of the parties, can be amended or altered only pursuant to <br />writing signed by both parties, and in any event not by any stipulation, representation or agreement not contained in this contract, or by parol evidence, <br />and that these terms shall govern the order contrary to prior or subsequent writings by Customer notwithstanding. <br />2. Orders regularly entered cannot be cancelled except upon terms that will compensate Printer against loss. All orders are subject to final acceptance by <br />Printer, and it shall not be liable for any loss or damage resulting from its reasonable failure to accept orders, ship products ordered or notify Customer of <br />its non-acceptance of orders. <br />3. Experimental work performed at the Customer ’s request, such as, but not limited to sketches, drawings, composition, plates, presswork and materials <br />shall be charged for at current rates. <br />4. Artwork, sketches, copy, dummies, and all preparatory work, plates, engravings and other manufacturing tools or items created or furnished by Printer <br />shall remain its exclusive property, no use of same shall be made nor may any ideas obtained therefrom be used, except by written permission of Printer <br />and upon compensation to be determined by Printer. <br />5. Original artwork, photos, plates, engravings and other manufacturing items when supplied by Customer are accepted at the Customer ’s risk and Printer <br />shall not be liable for damage or loss in excess of out-of-pocket cost for raw materials or value agreed to in writing between Printer and Customer. <br />6. Author’s alterations (AA): All changes from original specifications made by Customer shall entitle Printer to additional charges at the current rates for <br />the additional work performed. <br />7. Errors: Printer shall not be liable for errors if printed matter conforms to files furnished by Customer. Proofs will be submitted if requested by Customer . <br />Corrections, if any, are to be made thereon and returned with Proof /Print Authorization form marked “O.K.” or “O.K. with corrections”, and signed by duly <br />authorized representative of Customer. If revised proofs are desired, request must be made when proof returned. Printer shall not be responsible for <br />errors if work is performed as per Customer’s “O.K.” <br />8. Press: Press proofs incur additional charges. Printer shall charge for additional press time arising from Customer delay during make -ready press check <br />or for change orders received after job is plated. Because of the difference in equipment and conditions between color proofing and the pressroom <br />operations, a reasonable variation in color between color proofs and the completed job shall constitute an acceptable delivery. <br />9. Customer’s Property: All Customer ’s property that is stored with Printer is at the Customer ’s risk, and Printer shall not be liable for any loss or damages <br />thereto caused by fire, theft, water leakage, rodents, insects, or any other cause beyond Printer ’s control. It is understood that the storage of Customer ’s <br />property is solely for the benefit of the Customer. <br />10. Terms: Unless otherwise arranged for, a deposit of 50% is requested upon the signing of proposal, 25% upon delivery of the job proof, and the <br />balance upon completion of this order or upon delivery of the first copy or copies. All accounts not paid for within forty -five (45) days of invoice shall be <br />charged interest at the rate of eighteen per cent (18%) per annum. If such rate shall be precluded by local law, this such rate shall be the highest rate <br />allowable pursuant to such law. <br />11. Warranty: Printer warrants that its work will meet applicable specifications and other specific product work requirements and will be of good quality <br />and free from defects in material and workmanship. All claims must be made within five (5) days of receipt of goods. Defective items must be held for <br />Printer’s inspection and returned to the original F .O.B. point upon request. The foregoing is expressly in lieu of all other warranties whatsoever, <br />expressed, implied, and statutory, including, without limitation, and implied warranties of merchantability and fitness. Upon Customer ’s submission of a <br />claim and its substantiation, Printer shall at its option either (1) replace its product or work at either the original F .O.B. point of delivery or (2) refund an <br />equitable portion of the purchase price determined by Printer. All work performed will be done during normal working hours of normal working days. The <br />foregoing is Printer’s only obligation and Customer ’s only remedy of breach of warranty, and except for gross negligence and willful misconduct, the <br />foregoing is Customer’s only remedy hereunder by way of breach of contract, tort, or otherwise. In no event shall Customer be entitled to incidental or <br />consequential damages. Any action for breach of this proposal must be commenced within two (2) years after the cause of action has occurred. <br />12. Title and Risk of Loss: Title to products which Printer sells to Customer shall pass to Customer upon delivery of the products to Customer, or to a <br />carrier consigned to Customer, and Printer shall not be liable for loss of, delay in shipment, or damage of any products after title thereto has passed . <br />Printer, however, retains title for security purposes only to all products until paid for in full in cash and may, at Printer ’s option, repossess the same from <br />Customer’s default in payment hereunder and charge Customer with any deficiency. It is expressly agreed that Printer shall not be held liable for loss or <br />damage on account of delays due to strikes, wars, fires, floods, accidents, governmental or municipal laws, rules or regulations, acts of providence, its <br />inability to secure specified materials, or other causes beyond Printer’s reasonable anticipation or control. <br />13. No obscene or illegal literature will be printed by Printer under this contract, nor shall Printer be liable for any damages arising out of violation of <br />copyright laws or illegal use of trade names or slogans. The Customer guarantees the legal property of all matter submitted to Printer for printing and /or <br />publication; and will defend and indemnify Printer from and against all claims and responsibility arising from the printing and /or publication of such matter, <br />including the legal expenses and disbursements incurred by Printer in connection therewith. <br />14. Unless otherwise specified, Printer shall use such style, type, size and composition as, in its discretion, seems to be the best interest of Customer. <br />15. Any and all mailing costs incurred by Printer in the performance of the specifications hereinabove set forth shall be in addition to the contract price <br />hereinabove set forth and shall be at the then current rates of the United States Postal Service and/or common carrier. <br />16. Taxes: Customer shall pay all excise or other taxes, if any, that may be levied on the products sold under the contractor upon or in connection with the <br />sale or shipment thereof. <br />17. Delivery Dates: Promised delivery date is contingent upon Customer ’s meeting its established schedule responsibilities. Printer shall not be responsible <br />for consequential damages for late deliveries. <br />18. Prices quoted are based on straight time work. Overtime work caused by Customer ’s failure to meet deadline, a delay in turning in proofs, or other <br />material necessary to complete the work within the time specified, shall be charged for at current overtime rates, over and above the price quoted herein. <br />19. Unless otherwise stated in writing, overruns or underruns, not to exceed ten (10%) percent of the amount ordered, shall constitute an acceptable <br />delivery and the excess or deficiency shall be charged or credited to the customer proportionally. <br />20. Customer Furnished Materials: Any work required on files or materials furnished by the Customer shall be performed at Customer ’s risk and billed at <br />current market rates. Responsibility for quality of material supplied will not be assumed by Printer when Customer furnished such material used in <br />production of the printed order. <br />21. If it becomes necessary to institute suit in any court of law to enforce any of the provisions of quotation, including an action for collection or to enforce <br />any of the standards terms for sale, customer agrees to pay all legal expenses and disbursements incurred by Printer in connection therewith. <br />22. In the event actual delivery extends beyond the date set forth on Printers acknowledgement of order entry, Printer shall have the further right to revise <br />prices upon the application of a fraction, the numerator of which shall be the Consumer Price Index at the time of actual delivery and the denominator of <br />which shall be such index at the proposed time of delivery set forth by the Printer in his acknowledge to customer of order entry. <br />Page 3 of 3