STANDARD TERMS AND CONDITIONS
1. Acceptance of Purchase Order. Acceptance of this Purchase Order is limited to the terms and conditions on the face of this Purchase Order and these Standard Terms and Conditions and Woodbridge hereby objects to any additional or different terms contained on any of Supplier's quotation, acknowledgement, invoice or other forms, or in any other correspondence from Supplier. The terms of this Purchase Order may be accepted by Supplier in writing or by shipping conforming goods or otherwise, which shall constitute acceptance of this Purchase Order as the entire agreement between the parties on the subject hereof, superseding all prior communications and negotiations.

2. Changes In Purchase Order. Woodbridge reserves the right at any time to change specifications, methods of shipment or packing, or place or time of delivery. If any such change causes an increase or decrease in the cost of or the time required for performance of Supplier's obligations under this Purchase Order, an equitable adjustment shall be made in the contract price or delivery schedule, or both, or Woodbridge may at its option, cancel this Purchase Order if agreement on an equitable adjustment cannot be reached. Any claim by Supplier for adjustment under this Article shall be deemed waived unless asserted in writing within twenty (20) days from receipt by Supplier of the change order. Price increases or extensions of time for delivery shall not be binding on Woodbridge unless evidenced by a purchase order change notice issued by Woodbridge. No substitutions, changes or modifications of the ordered item shall be made except upon Woodbridge's written authority.

3. Delivery and Delay. Supplier shall deliver the goods (“Goods”) in the quantities and within the time, which is of the essence, in accordance with the specifications or approved samples, and at the prices specified in this Purchase Order. Failure of Supplier to comply with such requirements shall entitle Woodbridge, in addition to any other rights or remedies afforded Woodbridge by law or contract, to cancel this Purchase Order and be relieved of all liability for any undelivered portion. If shipment is delayed for any cause, Supplier must report the same to Woodbridge promptly. Failure of Woodbridge to insist upon strict performance shall not constitute a waiver of any of the provisions of this Purchase Order or waiver of any default. Any failure by Woodbridge to exercise its remedies with respect to any instalment shall not be deemed to constitute a waiver with respect to subsequent instalments.

4. Notice Of Shipping, Packing and Risk of Loss. All Goods shall be suitably packed, marked with Woodbridge's Purchase Order Number and shipped in accordance with shipping instructions specified in the Purchase Order and otherwise in accordance with the requirements of common carriers so as to obtain the lowest transportation cost. Supplier shall be liable to Woodbridge for any loss or damage resulting from Supplier's failure to provide adequate protection during shipment. Additional expenses, charges or claims incurred as a result of deviation from the specified route, non-compliance with other shipping instructions, or improper description of the shipment in shipping documents shall be assumed by Supplier. Risk that the ordered Goods may be lost, damaged or delayed in transit shall be upon Supplier until conforming Goods have been actually received, inspected and accepted by Woodbridge.

5. Warranties and Remedies. Supplier warrants that Goods to be furnished hereunder shall (a) be free and clear of all liens and encumbrances, good and merchantable title being in Supplier; (b) be free from any defects in design, material or workmanship (latent or otherwise) and of good and merchantable quality; (c) conform to Woodbridge's specifications and with representations previously made by Supplier and be fit for the use intended by Woodbridge; and (d) comply and have been produced, processed, packaged, labelled, delivered and sold in conformity with all applicable laws, administrative regulations and orders. The foregoing warranties shall survive inspection, delivery and payment and shall run in favour of Woodbridge, its successors and assigns and its customers, whether direct or indirect.


6. Indemnification by Supplier. Supplier shall indemnify Woodbridge, its successors, assigns, and customers (whether direct or indirect) against any and all losses, damages and expenses (including attorneys' fees and other costs of defending any action) which they or any of them, may sustain or incur as a result of any claim of negligence, breach of warranty, personal injury or death, strict liability in tort or based on any other theory of law in connection with the Goods furnished by Supplier, including late delivery, or as a result of any claim that the Goods furnished by Supplier fail to conform to or comply with any laws, regulations or standards, or based upon or arising out of any construction, installation, services or facilities furnished by Supplier under or in connection with this Purchase Order.

7. Insurance. Supplier shall procure and maintain product liability insurance during the entire term of this Purchase Order. The insurance shall be with limits and with a carrier or carriers reasonably satisfactory to Woodbridge. Supplier shall furnish Woodbridge with certificates of such insurance. The insurance shall provide that the policy shall not be cancelled or reduced in coverage until ten (10) days after written notice shall have been given to Woodbridge of cancellation or reduction in coverage. All insurance shall name Woodbridge Foam Corporation as an additional insured.

8. Woodbridge's Damages. Supplier shall be responsible for any and all losses, liabilities, damages and expenses, including incidental and consequential damages, and including but not limited to attorneys fees and other costs of prosecuting an action for breach and all costs incidental and consequential to any plant down time which Woodbridge may sustain or incur as a result of any breach of this Purchase Order or any warranties or representations.

9. Prices. Woodbridge shall not be billed at prices higher than those stated on this Purchase Order, and no additional charges of any kind shall be imposed, unless authorized by a purchase order change notice issued by Woodbridge. Supplier represents that the price charged for the Goods covered in a Purchase Order is the lowest price charged by Supplier to purchasers or a class similar to Woodbridge under conditions similar to those specified in the Purchase Order and that prices comply with applicable government regulations in effect at time of quotation, sale or delivery. Supplier agrees that any price reduction made in Goods covered by this Purchase Order subsequent to the replacement of this Purchase Order will be applicable to the Purchase Order.

10. Patents, Trademarks and Copyrights. Supplier warrants that the sale or use of Goods furnished hereunder will not infringe or contribute to infringement of any patent, copyright, trademark, trade secret or other proprietary right or subject Woodbridge or its customers (direct or indirect) to royalties in Canada, the United States or elsewhere, and shall indemnify and save harmless Woodbridge, its successors, assigns and customers (whether direct or indirect), against any and all losses, damages and expenses (including attorneys' fees and other costs of defending any infringement action) which they, or any of them, may sustain or incur as the result of a breach of its warranty.

11. Cancellation by Woodbridge. Woodbridge shall have the right to cancel this Purchase Order without cause, and Woodbridge's liability for cancellation of this Purchase Order without cause shall be limited to Supplier's actual cost for work and materials applicable solely to this Purchase Order which shall have been authorized by Woodbridge and actually expended when notice of cancellation shall be received by Supplier. Woodbridge may at its option, cancel this Purchase Order without liability to Supplier (except for conforming shipments previously accepted by Woodbridge) in the event Supplier shall cease to exist or become insolvent or the subject of bankruptcy or insolvency proceedings or shall commit a material breach in the performance of any part of its obligations under this Purchase Order.

12. Force Majeure. Woodbridge shall not be liable for any damage as a result of any delay or failure to accept delivery due to any act of God, act of Supplier, embargo or other governmental act, regulation or request, fire, accident, strike, slowdown or other labour difficulties, war, riot, delay in transportation, defaults of common carriers, inability to obtain necessary labour, materials, or manufacturing facilities or, without limiting the foregoing, any other delays beyond Woodbridge's control which shall affect Woodbridge's ability to receive and use the Goods or services. In the event of such delay, the date of delivery shall be extended for a period equal to the time lost because of the delay. Supplier's exclusive remedy for other delays and for Woodbridge's inability to accept delivery for any reason shall be rescission of this Purchase Order.

13. Governing Provision. This Agreement shall be governed and construed in accordance with the internal laws of the Province of Ontario (Canada). The rights and obligations of the parties shall not be governed by the provisions of the U.N. Convention on Contracts for the International Sale of Goods or any other conventions relating to laws on the uniform sale of goods.

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