Chugach Alaska Corporation
560 E. 34th Ave.
Anchorage, Alaska 99503



PURCHASE ORDER TERMS AND CONDITIONS


1. ACCEPTANCE OF TERMS:
Goods and services furnished by the Seller shall be subject to and in accordance with this purchase order. Seller's acceptance of this order shall constitute agreement to be bound by and to comply with all the terms and conditions set forth herein. Written acceptance or shipment of all or any portion of the goods or the performance of all or any portion of the services covered by this order by the Seller shall constitute unqualified acceptance of all its terms and conditions. Any additional or different terms and conditions which may appear in any communication from the Seller or in any printed form of the Seller are hereby rejected and shall not be effective or binding unless specifically agreed to in writing by Chugach. No such additional or different terms or conditions shall become part of the order despite Chugach’s receipt thereof unless Chugach specifically agrees in writing to their inclusion.

2. SHIPPING INSTRUCTIONS:
Seller shall be responsible for the proper packaging of materials hereunder. Shipments will be prepaid via cheapest common carrier, F.O.B. destination, unless otherwise stated in this order; C.O.D. shipments will not be accepted. Chugach’s Purchase Order number must appear on all invoices, packing lists, packages, shipping notices, instruction manuals, and any correspondence. Memorandum of contents shall be enclosed in each box or package. Shipping charges, if allowed, must be supported by copies of bills attached to invoices.

3. TIME OF DELIVERY:
Time of delivery is of the essence of this order and the order is subject to cancellation or termination for failure to deliver on time. Seller shall notify Buyer in writing immediately of any actual or potential delay or threat of delay to the timely performance of this Purchase Order, including notice to Seller of any actual or potential labor dispute which delays or threatens to delay the timely performance of this Purchase Order.

4. HAZARDOUS MATERIALS/SUBSTANCES:
Supplier shall identify Material containing a hazardous substance including, but not limited to, those governed by the Resource Conservation and Recovery Act, Hazardous Materials Transportation act, and Toxic Substance Control Act and any similar acts and regulations there under. Each self-contained unit and carrier shall be marked identifying the existence of a hazardous material or substance and its name.

5. VARIATION IN QUANTITY:
No variation in the quantity called for under this Purchase Order will be accepted unless such variation is the result of loading conditions, shIpping, packing or allowances in manufacturing processes, and then only to the extent, if any, specified elsewhere in this Purchase Order.

6. PRICE:
Chugach shall receive the benefit of any general reduction in Seller's price prior to delivery. Seller shall not bill at prices higher than stated in this Purchase Order. Seller warrants that the price charged for the Products and Services covered by this Purchase Order is the lowest price charged by the Seller to other buyers under conditions similar to those specified in this Purchase Order. Prices shall be inclusive of all federal, state, and local taxes except those taxes from which Chugach as a purchaser is exempt or immune.

7. PAYMENTS:
Payments for goods and services furnished under this order will be due thirty (30) days after the latter of (1) receipt and acceptance of goods or services, (2) receipt of proper billing for such goods or services, or (3) receipt of all documents required by the order. (4) receipt and acceptance of material, which ever is later. Payment may be made on partial deliveries accepted by the Chugach when the amount due on such deliveries so warrants.

8. EARLY PAYMENT DISCOUNT DATE:
Early Payment Discount period on any invoice received shall commence on the date shipment is received or accepted by Chugach or date of receipt of invoice, whichever is later.

9. ACCEPTANCE OF MATERIAL, SUPPLIES AND EQUIPMENT:
Acceptance of Material, Supplies, and Equipment occurs at the time Materials, Supplies and Equipment is delivered to and receipted for at the location shown on the Purchase Order and Chugach has had a reasonable opportunity to inspect Materials, Supplies and Equipment for conformance. Acceptance shall not be deemed to cover defects, which were not obvious at the time of inspection. In no event shall Chugach be liable to Supplier for consequential damages resulting form any defects or deficiencies identified in accepted items. Goods rejected by Chugach for any reason may be held, transported and/or stored by Chugach at Seller's sole expense. On items delivered in error or in excess of the quantity ordered or authorized, Chugach reserves the right to return said items at Seller's expense. Seller agrees to hold Chugach harmless for any damages, destruction, or other loss during such return. Seller shall promptly reimburse Chugach for any expense that Chugach has advanced on Seller's behalf in holding, transporting and/or storing, rejected or nonconforming goods or over shipments.

10. QUALITY AND INSPECTION:
The Materials supplied hereunder shall be of good quality, free from any faults and defects, in conformance with this Order, and shall at all times be subject to Chugach’s inspection before acceptance by Chugach. Neither, however, Chugach’s inspection nor failure to inspect shall relieve Seller of any obligations, representations or warranties hereunder. If the Materials fail to conform to Chugach’s specifications or are otherwise defective, Seller shall promptly replace same at Seller’s sole expense. Any service supplied hereunder shall be of good quality, free from any faults or defects and in conformance with this Order. All services not conforming to these requirements, including substitutions not properly approved and authorized, shall be considered defective and Seller shall promptly correct such defective services at Seller’s sole expense. No payment for or acceptance of Materials, including services, by Chugach hereunder shall constitute a waiver of any of the foregoing nor shall anything herein contained be construed to exclude or limit any or Seller’s warranties implied by law.

11. RIGHT TO INSPECT PLANT AND WORK:
Chugach may, at reasonable times, inspect the part of the plant or place of business and work in progress of a Seller or any subcontractor which is related to the performance of this order.

12. WAIVER:
The waiver of any breach of the terms of this order by Chugach shall not constitute a waiver of any of its terms or any subsequent breach, nor shall any payment for goods delivered or services constitute such waiver.

13. WARRANTIES:
Seller warrants that all articles, materials, and equipment supplied under this order conform to the specifications of this order, to be of merchantable quality, and to be free from defect in materials and workmanship. Seller shall honor standard commercial guarantees and warranties offered by the manufacturer, and any other specific warranty or guarantee specified elsewhere in this order. Construction Order: Seller warrants that all construction work will be free from defects not inherent in the quality required or permitted; and that the Work will conform to the requirements of this Purchase Order. The seller agrees to repair or replace, at it expense, workmanship, materials, or other portions of the Work that do not conform to this warranty, within the first year following completion or work.

14. HEALTH AND SAFETY:
Seller acknowledges that it has a primary duty to prevent on the job accidents and to protect the health and safety of its employees. Seller understands and acknowledges that its Order may entail work at sites that pose potential exposure to hazardous materials and that such work is inherently dangerous. As such, Seller understands that accidents, bodily injury or property damage could result from human errors in judgment, mistakes, carelessness, forgetfulness, sloppiness, and work performed in haste. It is the duty and responsibility of Seller to train and supervise all its personnel and activities to prevent such occurrences. Seller further acknowledges that Chugach bears no duty or legal responsibility to supervise Seller’s personnel. Seller represents that it has the requisite corporate resources and expertise to perform the service hereunder.

15. LIENS OR CLAIMS:
Seller warrants the equipment, articles and/or materials furnished under the terms of this order are unencumbered and not subject to any lien or claim.

16. ASSIGNMENT:
This order, including the right to receive payment of, is not transferable, or otherwise assignable without the express prior written consent of Chugach Buyer. Requests for transfer or assignment must be in writing, and in advance. An instrument of assignment is subject to prior claims of persons, firms, and corporations for services or supplies provided in the performance of this order.

17. AUTHORITY:
The procurement officer whose name appears on the face of this order has authority to act as agent for Chugach. Seller is cautioned that instructions contrary to the provisions of this order, which are received from Chugach employees’ not specifically delegated authority to act in this matter, are not valid or binding on Chugach, and are a violation of Chugach policy and procedures.

18. CHANGES:
No modification of any of the terms or conditions of this order, including, but not limited to, delivery, price, quality, quantities, and specifications, will be effective without the prior written consent of Chugach.

19. INDEMNIFICATION:
Seller agrees to hold harmless Chugach, its Board of Directors, officers, agents and employees from, and to defend it against, any and all claims arising from the purchase, installation, and/or use of the equipment, articles and/or materials or services which are furnished by the Seller under this order. Seller assumes all risk of damages or injury to Seller's own employees, property or person acting for or on behalf of Seller from whatever cause. Nothing herein shall be construed so as to relieve Chugach from liability arising solely as a result of its own gross negligence.

20. TIME OF ESSENCE:
Time shall be deemed to be of the essence of this Purchase Order for both parties, and they mutually agree to see to the performance of their respective work and the work of their subcontractors so that the work is completed within the time provided to complete the work.

21. FORCE MAJEURE:
Supplier or Chugach may delay delivery or acceptance occasioned by causes beyond Supplier’s or Chugach’s reasonable control. If such delay exists beyond a period of five (5) working days, Chugach, at its own option, shall have the right to: (a) terminate the Purchase Order, in whole or in part, (b) suspend the Purchase Order for the duration of the delaying cause, (c) resume performance under the Purchase Order once the delaying cause ceases, (d) or extend the effective dates up to the length of time the contingency endured, all without liability to the Supplier.

22. TERMINATION, DELAYS AND EXCUSED PERFORMANCE:
Chugach may, by written notice stating the extent and effective date terminate this order for convenience, in whole or in part, at any time. Chugach shall pay the Seller as full compensation for performance until such termination: (1) the unit or pro rata price for the delivered and accepted portion; (2) A reasonable amount, as approved by the procurement officer, not otherwise recoverable from other sources by the Seller with respect to the undelivered, unperformed or unaccepted portion of the order; provided compensation hereunder shall in no event exceed the total order price. Chugach may, by written notice, terminate the order for Seller's default, in whole or in part, at any time, if the Seller refuses or fails to comply with the provisions of the order or so fails to make progress as to endanger performance and does not cure such failure within a reasonable period of time or fails to make delivery or perform within the time specified or any written extension thereof. In such event, the Seller shall be liable for any and all damages incurred by Chugach including but not limited to cost of inspections, receipt, transportation, care, custody and cover cost. Seller shall also be liable for any and all consequential damages incurred by Chugach that are related to such breach. If performance is delayed through no fault, and for reasons beyond the reasonable control of the Seller, an extension of time may be granted for completion. If a delay is determined to have been caused by Chugach, the time for performance, and the price of the order may be subject to adjustment. Seller shall in any event notify Chugach without delay when Seller has reason to believe performance will or may be delayed.

23. ROYALTIES, LICENSES, AND PERMITS:
Seller shall pay all royalties and fees to obtain licenses and permits relating to items or services provided in this order.

24. LIABILITY FOR CHUGACH FURNISHED PROPERTY:
Seller assumes complete liability for any tools, articles or materials, if any, furnished by Chugach to Seller in connection with this order. Seller agrees to pay for all such items so furnished and spoiled by it or not otherwise accounted for to Chugach satisfaction. The furnishing to Seller of any tools, articles or material in connection with this order shall not unless otherwise expressly provided, be construed to vest title thereto in Seller.

25. RETENTION, EXAMINATION AND AUDIT OF RECORDS:
Chugach and the U.S. Comptroller General or their agents may, at reasonable times and places, examine, copy, and audit the books and records of the Seller to the extent that the books and records relate to this order or any cost and pricing data related to this order. The Seller shall maintain books and records that relate to the order for three (3) years after the date of final payment under the order.

26. PATENTS AND COPYRIGHTS:
Unless otherwise provided in this order, any discovery or invention or copyrightable materials developed in the course of or resulting from work carried on under this order shall be the property of Chugach.

27. OWNERSHIP OF MEDIA RELATED MATERIAL:
Seller agrees that all Work Product (defined below) shall be upon its creation the sole property of Chugach. To the extent any Work Product is subject to copyright, Seller agrees that such Work Product shall be considered “work for hire” within the meaning of the United States Copyright Act, whether or not used by Chugach, and that Chugach shall be considered the “author” of such Work Product within the meaning of the Act. All copyrights in the Work Product shall be owned exclusively by Chugach on their creation, and Seller expressly disclaims any interest in them. In the event, and to the extent, that any Work Product subject to copyright is found as a matter of law not to be “work for hire” within the meaning of the United States Copyright Act, Seller hereby assigns to Chugach the sole and exclusive right, title, and interest in the Work Product, copyrights to, and all copies of, the Work Product, in any medium and without further consideration, and agrees to assist Chugach to register, and from time to time to enforce, the copyrights. Regardless of whether the Work Product is subject to copyright, Seller hereby assigns and agrees to assign to Chugach all right, title, and interest to the Work Product, including without limitation all trademark, patent, and other intellectual property rights. Seller agrees to execute such documents as may be necessary, in Chugach judgment, to evidence and/or secure Chugach ownership rights and assignments under this paragraph. As used in this paragraph, “Work Product” means all work product, tangible and intangible, created by Seller in the course of its work for Chugach, and includes without limitation all writings; all photographic images, whether negatives, prints, transparencies, digital data, or otherwise; all videos and films, including without limitation all raw footage and edit masters; all software and data; all discoveries and inventions; all intermediate works, including without limitation all notes, outlines, and the like; all reproductions of any of the foregoing in any media whatsoever; and all derivative works based on any of the foregoing.

28. DISPUTES:
(Applicable only if the amount of this purchase order exceeds $25,000.) Any dispute which may arise between the Seller and Chugach, in any manner concerning this order, shall be resolved in accordance with Chugach policy and procedures.

29. INSURANCE:
All vendors and subcontractors performing services and construction projects for Chugach under $100,000, whether through a Purchase Order or Subcontract, shall carry insurance as define in Purchase Order Insurance Requirements, CAC-FIN-J031, dated March 29, 2006. See attached.

30. DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM:
http://www.bis.doc.gov/defenseindustrialbaseprograms/
This clause is applicable only if DPAS Rating of DO or DX is set forth elsewhere within this purchase order. Sellers receiving DPAS-rated orders shall give the rated orders a priority over other orders as needed to meet delivery requirements (15 CFR 700.14). A priority rating consists of the appropriate DO or DX rating symbol and a program identification symbol to indicate the authorized program. All DX rated orders have equal priority with each other and take preference over DO rated and unrated orders. Sellers receiving rated orders shall extend priority ratings to subcontractors or vendors when acquiring items to fill the rated orders (15 CFR 700.15).



© 2006 Chugach Alaska Corporation All Rights Reserved.
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