Terms & Conditions

Kinovate Life Sciences, Inc. (KLS) Terms and Conditions for Purchase of Goods and Services

1. Order of Precedence, Acceptance, Modification.
1.1 Order of Precedence. This purchase agreement and these terms and conditions, together with any signed supply agreement pre-dating this purchase order and specifications, drawings, or other documents referred to, attached, or incorporated by reference into this purchase agreement and/or a signed supply agreement, collectively form the “Agreement” as that term is used herein. This Agreement supersedes any prior or contemporaneous communications, representations, agreements, promises, or negotiations respecting the subject matter of this Agreement, unless otherwise agreed in writing signed by both parties. If there is an irreconcilable conflict among the provisions of the documents comprising this Agreement, the following order of precedence applies: (a) a signed supply agreement; (b) this purchase agreement; (c) specifications and drawings; (d) these terms and conditions; (e) any other documents incorporated by reference. The terms of this Agreement can only be amended or superseded by a mutually signed agreement that states an express intention to amend or supersede the terms herein.

1.2 Acceptance. Each purchase order is for the purchase of goods, services, or both described on the face of each purchase order (collectively, “Goods”) and is issued by KLS and/ or its affiliate(s) identified on the face of each purchase order. Each purchase order is deemed accepted upon the earlier of the return within three (3) days of a signed acknowledgment copy of each purchase order or the commencement of performance by Supplier. KLS rejects any additional or inconsistent terms and conditions offered by Supplier at any time. Any reference to Supplier’s quotation, bid or proposal does not imply acceptance of any term, condition, or instruction contained in such document. No course of prior dealing or usage of the trade may modify, supplement, or explain any terms used in this agreement.

1.3 Modification. No change to or modification of this Agreement will be binding upon the parties hereof unless in writing, specifically identifying that it amends this Agreement and signed by an authorized representative of both parties. If any of the parties hereof becomes aware of any ambiguities or conflicts between this Agreement and any other document, the party will immediately submit the matter to the other party for resolution.

2. Delivery, Shipment and Packaging.
2.1. Supplier will deliver Goods in the quantities and on date(s) specified on each purchase order or scope of work. If delivery dates are not stated, Supplier will offer its best delivery date(s), which will be subject to acceptance by KLS. Unless otherwise agreed, all Goods shipped in one day from and to a single location must be consolidated on one bill of lading or air waybill.

2.2. All items will be packaged according to KLS’s instructions or, if none, according to good commercial practice in a manner sufficient to ensure receipt in an undamaged condition. KLS will not be liable for any discharge, spill, or other environmental incident (including clean-up costs) involving any Goods until received by KLS. All containers will be properly marked for identification as instructed by KLS’s purchase order and contain a packing slip that details, at a minimum: (i) KLS purchase order number(s), (ii) line item number(s), (iii) product part number, (iv) detailed product description, (v) total number of boxes in shipment, (vi) quantity of product shipped, and (vii) final delivery address. Items delivered in advance of KLS’s delivery schedule may be returned or stored at Supplier’s expense. The purchase order number(s) and line item number(s) must appear on all correspondence, shipping labels, and shipping documents, including all packing sheets, bills of lading and air waybills.

2.3. Within one business day after Supplier delivers the Goods to the address instructed by KLS, Supplier will send to KLS, written in English, a complete set of delivery or shipping documents including the commercial invoice and packing list.

2.4. Time is of the essence for KLS. If all or part of the delivery schedule is endangered for any reason other than KLS’s fault, KLS may exercise one or more of the following options (i) Supplier shall, at its expense, deliver Goods by the most expeditious delivery method, (ii) notwithstanding anything to the contrary, and in addition to other rights and remedies, KLS may terminate this Agreement or outstanding purchase order without any liability to Supplier for Goods not yet delivered by providing Supplier written notice effective immediately, (iii) KLS may purchase substitute goods from another vendor and Supplier shall pay KLS for any losses incurred by KLS, (iv) KLS reserves the right to reject, at no expense to KLS, all or any part of any delivery that is late, and/or (v) as liquidated damages, Supplier shall pay KLS an amount equal to one percent (1%) of the purchase order price attributable to the late Goods for each seven (7) day period that the Goods are late or until actual delivery.

3. Notice of Delay.
Supplier must immediately notify KLS in writing of any delays or anticipated delays and provide all relevant information with respect to such delay.

4. Excusable Delay (Force Majeure).
Neither party will be in default for any delay or failure to perform that is directly due to causes beyond its reasonable control and without its fault or negligence (“Force Majeure Event”). Any delay or failure to perform caused by the default of a sub-tier supplier of Supplier will be excused only if (a) it is beyond the reasonable control of both Supplier and its sub-tier supplier(s) and without the fault or negligence of any of them, and (b) the Goods to be furnished cannot be obtained from other sources in sufficient time to permit Supplier to meet the delivery schedule. Any delay or failure to perform caused by the default of a customer of KLS will be excused only if it is beyond the reasonable control of both KLS and its customer(s) and without the fault or negligence of any of them. Supplier’s ability to provide Goods at a more advantageous price or Supplier’s economic hardship in processing necessary operations for delivery of the Goods will not constitute a Force Majeure Event. The party affected by a Force Majeure Event will promptly provide written notice to the other, explaining in detail the full particulars and expected duration of the Force Majeure Event, and will use its best efforts to remedy the delay. If Supplier’s delivery is delayed, KLS may, at KLS’s sole option, cancel deliveries scheduled during the period of the Force Majeure Event or elect to extend the period of performance to cover the period caused by the Force Majeure Event. If a Force Majeure Event occurs that affects delivery of Goods to KLS, Supplier will allocate its available resources in a manner that assures KLS of at least the same amount of total time in completing the delivery as was allocated to KLS before to the Force Majeure Event. If delivery of any Goods is delayed for more than 30 days, KLS may, without liability, cancel all or any part of such purchase order.

5. Shipping Terms, Title and Risk of Loss.
5.1. All deliveries will be made in accordance with Incoterms® 2010. If the Goods will be transported by Supplier to KLS’s location in the U.S., unless otherwise specified on the face of the Purchase Order, delivery of the Goods will be made D.D.P. KLS’s location and risk of loss for the Goods passes to KLS upon delivery of the Goods at KLS’s warehouse.

5.2. The foregoing does not relieve Supplier of any responsibility for defects or damages existing at the time of acceptance but discovered after acceptance of the Goods. Notwithstanding the foregoing, title, and risk of loss to Goods subject to a consignment stock agreement pass upon release of the Goods from the consignment stock as per KLS’s request. KLS may direct Supplier to ship the Goods to KLS or to any third party designated by KLS.

6. KLS-Supplied Materials.
6.1. Title to any material, tooling, equipment, or technical data that KLS pays for or is provided to Supplier by or on behalf of KLS, including replacements (“KLS Property”), will remain or vest with KLS. Supplier will conspicuously label KLS Property as such, maintain it in good condition, keep written records of the KLS Property in its possession and the location of the property, not allow any liens to be placed upon it, and not change its location without prior written approval from KLS. Supplier is responsible for inspecting and determining that the KLS Property is in useable and acceptable condition. Supplier is required to provide an annual written update of all KLS Property in its possession.

6.2. Supplier will use KLS Property exclusively to fulfill the KLS Purchase Orders unless otherwise authorized in writing by KLS’s procurement representative. KLS Property is intended for use at the Supplier’s site only or as otherwise authorized in writing by KLS’s procurement representative and, to the extent applicable, is subject to U.S. and other government export or re-export requirements. Supplier shall not modify KLS’s Property unless under KLS’s written direction. Supplier shall keep KLS’s Property ready for operation and in compliance with the latest software updates and design status. The expense for the maintenance, repair, and readiness of KLS’s Property shall be borne by Supplier. Supplier is responsible for any loss, damage, or destruction of KLS Property and any loss, damage or destruction of any third-party property resulting from Supplier’s negligent use of KLS Property. Supplier will not include the cost of any insurance for KLS Property in the prices charged under this Agreement. Supplier will return KLS Property or dispose of it at KLS’s sole option as it directs in writing. KLS makes no representations and disclaims all warranties (express or implied) with respect to KLS Property.

7. Price.
Supplier will furnish the Goods at the prices stated on the face of the Purchase Order. If prices are not stated on the face of the Purchase Order, Supplier will offer its lowest prices subject to written acceptance by KLS. All agreed upon prices are final, and no price increase may be issued without written acknowledgment and agreement from KLS. Unless otherwise provided on the face of each purchase order, the prices include all packaging and freight to the specified delivery point; applicable taxes and other government charges including, but not limited to, all sales, use or excise taxes; and all customs duties, fees or charges. To the extent that value added tax (or any equivalent tax) is properly chargeable on the supply to KLS of any Goods, KLS will pay the tax in addition to payments otherwise due to Supplier under each purchase order, if Supplier provides to KLS a value-added tax (or equivalent tax) invoice.

8. Price: Most Favored Customer and Meet or Release.
Supplier warrants that the prices charged for the Goods delivered under a purchase order are the lowest prices charged by Supplier to any third-party customers for similar Goods. If Supplier charges any third-party customer a lower price for the Goods, Supplier must notify KLS and apply that price to all Goods ordered under such purchase order. If at any time before full performance of each purchase order KLS notifies Supplier in writing that KLS has received a written offer from another supplier for Goods similar to those to be provided under such purchase order at a price lower than the price set forth in this Purchase Order, Supplier will immediately meet the lower price for any undelivered Goods. If Supplier fails to meet the lower price KLS, at its option, may terminate the balance of such purchase order without liability.

9. Invoicing and Payment.
After each shipment made or service provided, Supplier will submit an invoice describing the Goods provided and, as applicable, part numbers, quantity, unit of measure, hours, and the unit and total prices. Any incidental charges such as royalties, selling commissions, non-recurring engineering, or other incidental charges must be separately itemized and identified on the invoice. The invoice will be accompanied (if applicable) by a signed bill of lading or express receipt evidencing shipment. Payment of an invoice does not constitute acceptance of the Goods and is subject to appropriate adjustment should Supplier fail to meet the requirements of the Purchase Order. Unless agreed otherwise in a writing signed by authorized representatives of both parties, payment is due 60 days after receipt of invoice and conforming Goods.

10. Set Off and Liens.
KLS may deduct any amount owing from Supplier to KLS against any amount owing to Supplier under this Agreement. Supplier hereby waives its right to file a lien against any property or assets of KLS or otherwise encumber such in a summary or other proceeding. Supplier will indemnify and hold KLS harmless for any liens or claims filed by Supplier’s sub-tier contractors or agents against KLS or its assets relating to amounts owed by Supplier to its subtier contractor or agents.

11. Inspection.
11.1. All Goods may be inspected and tested by KLS, its customers, higher-tier contractors, and end users at all reasonable times and places. If an inspection or testing is made on Supplier’s premises, Supplier will provide, without additional charge, all reasonable facilities and assistance required for the inspection and tests. In its standard inspection and testing of the Goods, Supplier will use an inspection system accepted by KLS in writing. Supplier will maintain all inspection records, including sub-tier supplier records relating to the Goods and make available to KLS during the performance of this Purchase Order.

11.2. Final inspection and acceptance by KLS will be at destination unless otherwise specified in each purchase order. KLS may inspect 100% or a sample of Goods, at KLS’s option, and may reject all or any portion of the Goods or lot of Goods if the Goods are defective or nonconforming. If KLS performs any additional inspections after discovering defective or nonconforming Goods, the additional inspection costs will be paid by Supplier. No inspection, tests, approval, design approval, or acceptance of the Goods relieves Supplier from liability for warranty breach(es), undiscovered defects at the time of acceptance, fraud, or negligence

12. Warranty.
12.1. Supplier warrants to KLS, its successors, assigns, customers and end users that, upon delivery, and during the entire Warranty Period specified below, all Goods furnished (including all replacement or corrected Goods or components that Supplier furnishes under this warranty) will (a) be free from defects in material, workmanship, and design, even if the design has been approved by KLS, (b) conform to applicable drawings, designs, quality control plans, specifications and samples and other descriptions furnished or specified by KLS, (c) be merchantable, (d) be fit for the intended purposes set forth herein (to the extent the Goods are not of a detailed design furnished by KLS) and operate as set forth herein, (e) comply with all applicable laws and regulations, (f) be free and clear of any and all liens, restrictions, reservations, security interests or encumbrances, (g) not infringe any patent, published patent application, or other intellectual property rights of any third party existing as of the date of delivery, and not utilize misappropriated third party trade secret information, (h) if containing or using chemical substances, the chemical substance is on the Inventory of Chemical Substance compiled and published by the Environmental Protection Agency under the Toxic Substances Control Act, (i) all Safety Data Sheets required to be provided by Supplier will be provided to KLS before the respective shipment of Goods and will be complete and accurate and in accordance with 29 CFR 1910.1200, and (j) chemical containers must be labelled in accordance with 29 CFR 1910.1200 and applicable state laws. Services will meet the highest standards in the industry.

12.2. The Warranty Period will be for a period of 2 years from the date of delivery to the end user or the date on which any longer or broader government requirement covering the Goods ends. These warranties will survive any delivery, inspection, acceptance, or payment by KLS for the entire Warranty Period. Goods that meet the preceding standards are collectively called “conforming Goods.” If conforming Goods are not furnished or are delivered late, then KLS may, at its election and in addition to any other rights or remedies it may have at law or in equity, have the Goods repaired, replaced, corrected, or sourced from a third party, at Supplier’s expense. Supplier is also responsible for all related expenses and damages including without limitation, the costs of removal, disassembly, failure analysis, fault isolation, reinstallation, reinspection and retrofit of the nonconforming Goods or of KLS’s affected end-product; all freight charges; all customer charges; and all corrective action costs (i.e., costs of additional inspection or quality control systems). Unless set off by KLS, Supplier will reimburse KLS for all such costs upon receipt of KLS’s invoice. If Supplier is unable to remedy the nonconformance or to deliver replacements or such measures are delayed for an unreasonable period of time, then KLS may, at its election, rescind the Purchase Order, demand a reduction of the purchase price and/or recover damages from Supplier.

12.3. Supplier shall undertake to follow the conditions, procedures and rules set out in the Schedule 1 of this Agreement forming an integral part thereof (Supplier Quality Assurance Manual (SQAM)) in full extent. A current version of SQAM is also posted at https://www.KLS.com/us/en/about_us/Americas/Quality_Management/and is subject to modifications and regular updates which shall become an integral part of this Agreement upon notice to Supplier.

13. Changes.
KLS may direct any changes to each purchase order or scope of work, through its authorized procurement representatives, by written or electronic notification. If the change causes an increase or decrease in the cost of performing such purchase order, an equitable adjustment will be made in such purchase order price, delivery dates or both, and such purchase order will be modified in writing or electronically. Any claim for adjustment under this provision may, at KLS’s option, be deemed to be waived unless asserted in writing (including the amount of the claim) and delivered to KLS within 5 days from the date of the receipt by Supplier of the KLS-directed change to such purchase order. If the cost of property made obsolete or excess as a result of a change is paid by KLS, KLS may prescribe the manner of disposition of the property.

14. Design and Process Changes.
Supplier will make no changes to the design, materials, manufacturing location, equipment or processes specified in each purchase order or documents referenced in it, or if none, those in place when each purchase order is issued, without the advance written approval of KLS’s procurement representative.

15. Stop Work.
At any time by written notice and at no cost, KLS may require Supplier to stop all or any part of the work under each purchase order up to 30 days (“Stop Work Order”). Immediately upon receipt of a Stop Work Order, Supplier will comply with its terms. At any time during the stop work period, KLS may, in whole or in part, either cancel the Stop Work Order or terminate the work under the Termination section of this Agreement. To the extent the Stop Work Order is canceled or expires, Supplier must resume work.

16. Termination.
16.1. The non-breaching party may terminate this Agreement if the other party commits a material breach and fails to remedy the breach within seven (7) calendar days following receipt of written notice specifying the grounds for the breach. A material breach includes, but is not limited to, late delivery or delivery of nonconforming Goods. The solvent party may terminate this Agreement upon written notice if the other party becomes insolvent or if any petition is filed or proceedings commenced by or against that party relating to bankruptcy, receivership, reorganization, or assignment for the benefit of creditors.

16.2. Notwithstanding any firm time period or quantity on the face of each purchase order, KLS may terminate each purchase order in whole or in part at any time with or without cause for unperformed services and/or undelivered product(s) upon 30 days’ prior written notice.

16.3. If KLS terminates a purchase order under either 16.1 or 16.2, KLS’s sole liability to Supplier, and Supplier’s sole and exclusive remedy, is payment for Goods received and accepted by KLS before the termination. The payment can be set off against any damages to KLS. Upon termination, KLS may require Supplier to deliver to KLS Goods and KLS will pay the purchase order price for those Goods subject to set off against any damages to KLS.

16.4. To the extent that any portion of each purchase order is not terminated under 16.1 or 16.2, Supplier will continue performing that portion.

17. Cessation of Delivery.

If delivery of any Goods called for under each purchase order is to be discontinued or suspended at any time within one year after final delivery of any Goods under each purchase order, Supplier must give KLS at least one (1) year prior written notice of the discontinuance or suspension. During the notice period Supplier must accept orders from KLS for the Goods at the price and on the terms of the last purchase order of particular Goods. If the Supplier discontinues manufacture of the Goods and does not provide KLS another qualified source, the Supplier shall provide KLS all drawings, specifications, data, and know-how with which to enable KLS to manufacture or procure said Goods under an irrevocable, royalty-free license which is hereby granted.

18. General Indemnification.
Supplier will, at its expense, defend and indemnify KLS and its parent companies, subsidiaries, affiliates and agents, and their respective officers, directors, shareholders, and employees, and KLS’s customers (collectively “Indemnitees”) from and against any and all loss, cost, expense, damage, claim, demand or liability, including but not limited to reasonable attorney and professional fees and costs and the cost of settlement, compromise, judgment or verdict incurred by or demanded of an Indemnitee arising out of, resulting from or occurring in connection with Supplier’s negligence, willful misconduct, breach of the terms of this Agreement and failure to comply with any applicable law or regulation. In no event will Supplier enter into any settlement without KLS’s prior written consent, which will not be unreasonably withheld.

19. Insurance.
Supplier and its subcontractors will have at their own expense at all times while it has any obligations remaining under this agreement, policies of insurance written by insurer(s) acceptable to KLS with a financial strength rating not lower than “A-“by A.M. Best Company. Such policies will afford the following: (i) commercial general liability on ISO occurrence form CG 00 01 or equivalent (including coverage for bodily injury, property damage, personal & advertising injury, contractual liability, and product/completed operation) in a sum no less than $1 million per occurrence, (ii) automobile liability in a sum no less than $1 million for each accident, (iii) worker’s compensation in an amount no less than the applicable statutory limits and employer’s liability in an amount of no less than $1 million for each accident, (iv) umbrella liability in an amount not less than $4 million each occurrence and aggregate excess of the above Commercial General Liability, Automobile Liability, and Employers Liability Insurance (v) Errors and Omission or Professional Liability coverage in no less than $2 million.1 (vi) employment practices liability in an amount not less than $1 million2 (vii) Cyber Liability coverage in no less than $1 million 3, and (viii) property insurance covering KLS’s Property pursuant to Section 6.2. All deductibles and Self-Insured Retention under the foregoing insurance do not exceed $10,000. Prior to the delivery of any Goods or commencement of any services under this Agreement, Supplier will provide to KLS certificate(s) of insurance and endorsements that are acceptable to KLS and are executed by a duly authorized representative of each carrier evidencing that Supplier and its subcontractors maintain the foregoing insurance. Such insurance will be primary and non-contributory and will be specifically endorsed or otherwise name KLS and/or its affiliate(s), its and their respective officers, directors, shareholders, employees, and agents as additional insured with ISO CG20 10 and CG20 37 or equivalent forms. Supplier’s workers compensation policy should be endorsed to name KLS. as Alternate Employer by ISO WC000301A.2 Except where prohibited by law, Supplier will require its insurers to waive all rights of recovery or subrogation against KLS, its subsidiaries and affiliated companies, and its and their respective officers, directors, shareholders, employees, and agents. Supplier shall provide for 30 days’ written notice to KLS prior to the cancellation for any reason of any insurance referred to herein. The amount of insurance carried in compliance with the above requirements will not be construed as either a limitation on or satisfaction of Supplier’s indemnification or other obligations under this Agreement.
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1. For all vendors who provide “professional services,” such as architect, engineers, accountant, consultant, legal counsel, medical/health professional, testing services, lab services, any certification services, insurance broker/agent, information technology related services and other services with licensing.
2. For all temporary labor agencies
3. For any vendor who provides IT services & products, document management products, software subscription services, and vendors whose apps/portals are used by KLS personnel.

20. Confidentiality and Ownership of Intellectual Property.
20.1. All Goods, including without limitation inventions, discoveries, specifications, samples, drawings, materials, knowhow, designs, processes, and other information whether technical, business, financial or other, that: (a) has been or will be provided to Supplier by or on behalf of KLS or which Supplier otherwise acquires under this Agreement; (b) Supplier will design, develop or otherwise create only for embodying in KLS’s products in connection with a purchase order whether or not completed and (c) the existence, negotiations, terms and performance of this Agreement shall be regarded by Supplier as confidential and deemed to be “Confidential Information” of KLS. Supplier shall promptly and fully disclose to KLS all Confidential Information under 20.1(b) above in sufficient detail to enable KLS to practice and protect same and will assist KLS in every proper way (at KLS’s expense) to obtain for KLS’s own benefit patents, copyrights and/or other rights of protection on any such Confidential Information in any and all countries. All Confidential Information under 20.1(b) shall be a “work for hire” under the United States Copyright Act of 1976 and the ownership and copyright therein vests in KLS and shall be the exclusive property of KLS. To the extent that exclusive title or ownership rights in such Confidential Information may not originally vest in KLS, Supplier hereby irrevocably assigns, transfers, and conveys to KLS all right, title and interest therein. This Section 20 does not affect Supplier’s intellectual property rights, rights to apply intellectual property rights or confidential information which were made before each purchase order and independent of KLS’s Confidential Information.

20.2. KLS’s Confidential Information will remain the property of KLS and will not be used by Supplier for any purpose other than for performing this Agreement, may not be disclosed to any third party, and will be returned to KLS upon the earlier of KLS’s written request or completion of this Agreement. If, with KLS’s prior written approval, Supplier furnishes Confidential Information to a sub-tier supplier, Supplier will bind the sub-tier supplier in writing to the obligations set forth in this Section 20 and Supplier will remain responsible to KLS for any breach of this provision by its sub-tier suppliers.

21. Audit.
21.1. Supplier will maintain suitably detailed records as may be necessary to adequately reflect Supplier’s compliance with the terms of this Purchase Order for at least five years from the last date of delivery. Supplier will permit KLS’s auditors to have access at all reasonable times to Supplier’s books and other pertinent records. Supplier shall maintain and provide to KLS’s auditors quality records, data and documents related to specified requirements and effectiveness of Seller’s quality system. Supplier will also furnish other information as may be needed by KLS’s representatives in auditing compliance. KLS reserves the right to periodically request financial reports and assurances from Supplier as KLS may deem necessary.

21.2. If, as a result of an audit, any invoice submitted by Supplier is found to be in error, an appropriate adjustment will be made to the invoice or the next succeeding invoice following the discovery of the error and will be paid promptly by Supplier or KLS, as the case may be. Supplier will promptly correct any other Supplier deficiencies discovered as a result of the audit.

22. Assignment and Subcontracting.
Supplier will not assign or transfer this Agreement or any rights or obligations or subcontract all or any material aspect of the work called for without the prior written approval of KLS. Any change in control of Supplier resulting from a merger, consolidation, stock transfer or asset sale shall be deemed an assignment or transfer for purposes of this Agreement that requires KLS’s prior written consent. Any assignment or transfer without KLS’s written approval will be voidable at the option of KLS. KLS may assign or transfer this Agreement, in whole or part, to its subsidiaries or affiliates, or to any purchaser or successor to all or substantially all of the assets of the business or product line to which this Agreement relates without Supplier’s consent and upon written notice to Supplier.

23. Relationship of Parties/Independent Contractor.
23.1. Nothing in this Agreement will be construed to place Supplier and KLS in an agency, employment, franchise, joint venture, or partnership relationship. Neither party has the authority to obligate or bind the other in any manner, and nothing contained in this Agreement creates rights of any kind for any third parties and neither party will make any representation to the contrary. Supplier will perform its obligations under this Agreement as an independent contractor. Supplier retains the right to exercise full control of supervision over and responsibility for Supplier’s performance hereunder, including the employment, direction, compensation, and discharge of Supplier’s personnel, as well as compliance with workers’ compensation, unemployment, disability insurance, social security, withholding and all other laws, rules, codes, regulations, and ordinances governing such matters.

23.2. For any Goods provided under this Agreement, Supplier and KLS stipulate that KLS is not deemed to be the statutory employer of Supplier’s employees and all employees of any sub-tier contractor retained in any manner by Supplier, who perform services or access KLS’s property. Supplier and KLS further stipulate that all services performed pursuant to this Purchase Order are an integral part of or essential to KLS’s production of its goods or delivery of its services.

24. Compliance with Laws and Integrity.
24.1. Supplier, its affiliates, and its subcontractors shall comply with all applicable international, national, state, and local laws, regulations and ordinances in performing this Agreement. Supplier, its affiliates, and its subcontractors maintain an integrity and compliance program reasonably acceptable to KLS and effective in preventing and correcting ethical violations and in maintaining compliance with laws.

24.2. The parties hereby incorporate by reference the requirements of 41 C.F.R. §§60-1.4(a), 29 C.F.R. Part 471, Appendix A to Subpart A. 41 C.F.R. §60-300.5(a)ii and 41 C.F.R. §60-741.5(a), if applicable. Supplier shall abide by and ensure that its affiliates and its subcontractors abide by the requirements of 41 C.F.R. §60-300.5(a), which prohibits discrimination against qualified protected veterans, and requires affirmative action by covered prime contractors and subcontractors to employ and advance in employment qualified protected veterans. Supplier shall also abide by and ensure that its affiliates and its subcontractors abide by the requirements of 41 C.F.R. §60-741.5(a), which prohibits discrimination against qualified individuals on the basis of disability and requires affirmative action by covered prime contractors and subcontractors to employ and advance in employment qualified individuals with disabilities.

24.3. Supplier, its affiliates, and its subcontractors shall comply with laws and regulations on export control. Neither Supplier, its affiliates, or its subcontractors export/re-export any technical data, process, product, or service, directly or indirectly (including the release of controlled technology to foreign nationals from controlled countries) to any country for which the United States government or any agency thereof requires an export license or other government approval without first obtaining such license. A current list of “Controlled Countries” can be found at the US Department of Commerce website at: https://www.bis.doc.gov/index.php/documents/regulations-docs/federal-registernotices/federal-register-2014/1033-738-supp-1/file

24.4. Supplier, its affiliates, and its subcontractors shall comply with this Agreement and applicable laws including, but not limited to (1) non-discrimination (2) non-harassment, (3) payment of minimum wage, (4) mandated employee benefits, (5) mandated working hours, (6) freedom of association, (7) prohibition of forced labor, (8) prohibition of human trafficking and (9) healthy and safe workplace. Supplier shall ensure that its affiliates and its subcontractors comply with all applicable laws regarding employment of underage or child labor and shall not employ children under the age of 16. Supplier, its affiliates, and subcontractors shall comply with KLS’s Group Basic Policy on Human Rights that can be found at the KLS.com/us/en website under Sustainability. Supplier, its affiliates, and its subcontractors shall have a clearly communicated disciplinary policy in place. Supplier, its affiliates, and its subcontractors shall not use physical punishment as a means of discipline. Supplier, its affiliates, and its subcontractor shall not use retaliation, discipline and discrimination against workers identifying unsafe working conditions or non-compliant and/or negatively impacting environmental practices.

24.5. Supplier, its affiliates, and its subcontractors shall comply with: (i) all applicable laws and regulations governing the use, declaration, preparation and marketing of hazardous substances and energy consumption efficiency; and (ii) any all applicable environmental laws and regulations. Supplier, its affiliates and its subcontractors shall comply with global and other applicable laws concerning chemical content (i.e. ROHS, REACH etc.). Supplier, its affiliates, and its subcontractors shall not source materials containing tin, tantalum, tungsten or gold, as “conflict minerals” from the Democratic Republic of Congo or adjoining countries as set forth under United States Security Exchange Act and its rule. Supplier, its affiliates, and its subcontractors shall keep a documented environmental management system that includes an environmental policy in compliance with regulatory requirements and identifying objectives and targets for improving the impact on the environment.

25. Conflict of Interest.
25.1 KLS is committed to conducting all dealings in a fair, ethical, and lawful manner. In addition to our employees, we expect our Suppliers, vendors, consultants, and other business associates to support these values. Supplier must avoid real or perceived conflicts of interest. Supplier must not allow their personal interests to influence business decisions related to KLS’s projects and assignments. KLS expects Supplier to exercise reasonable care and diligence to prevent any actions or conditions that may result in a conflict with KLS’s interests, the appearance of a conflict of interest or that may compromise the exercise of independent judgment during the execution of work for or on behalf of KLS.

25.2 A conflict of interest occurs when Supplier’s duties or their position present an opportunity for personal gain, or when personal interests could influence professional judgment for doing what is in the best interest of KLS. A conflict of interest can arise if actions are taken or if there are interests that may make it difficult for Supplier to perform KLS-related work objectively and effectively. This includes, but is not limited to, providing or offering a KLS employee something of value in return for getting KLS work, or having an association or relationship that could affect impartiality in business decisions.

25.3 Friendships outside the course of business are inevitable and acceptable, but Supplier should take care that any personal relationship is not used to influence the business judgment of the KLS employee. If a Supplier’s employee is a family relation (spouse, parent, sibling, grandparent, child, grandchild, in-law, or same or opposite sex domestic partner) to that of a KLS employee, or if a Supplier has any other relationship with an employee of KLS that may represent a conflict of interest, the Supplier must disclose this fact to KLS or ensure that the KLS employee does so.

25.4 Supplier must not employ or otherwise make payments to any employee of KLS during the course of any transaction between the supplier and KLS. While engaged in KLS-related work, Supplier must not engage in any activity that creates a conflict of interest, or the appearance of a conflict of interest, with KLS or in any way compromises the work that Supplier is contracted to perform on behalf of KLS. Any potential or perceived conflicts must be promptly reported to KLS’s business representative. Any agreement from KLS that allows Supplier to remain in a situation that could be perceived as a conflict must be in writing. Any questions about a conflict of interest should be raised with the Supplier’s highest level business contact.

26. Anti-Corruption Laws.
26.1. In this anti-corruption laws section, the term “Included Scope” means, both collectively and separately, the Agreement and the portions of Supplier’s respective businesses that are involved in it. In this anti-corruption laws section, “Anti-Corruption Laws” means, both collectively and separately, any anti- corruption, anti-bribery or similar governmental ethics and transparency laws that have particular jurisdiction or that govern the Included Scope in any manner. Although Supplier is responsible for determining the extent and applicability of AntiCorruption Laws, the US Foreign Corrupt Practices Act of 1977 (the “FCPA”) and the UK Bribery Act 2010 are both expressly included in the scope of “Anti-Corruption Laws” regardless of Supplier’s actual residency or the actual location that services are performed and received or that goods are made, delivered and received under the Agreement.

26.2. Supplier represents to the KLS that, with respect to the Included Scope, as of entering into the Agreement:
(a) Supplier has not violated any Anti-Corruption Laws; and
(b) Supplier has not directly or indirectly made any offer, payment, promise to pay, or authorized payment, or offered a gift, promised to give, or authorized the giving of anything of value to any Government Official (defined as any officer, employee or person acting in an official capacity for any government department, agency or instrumentality, including state-owned or -controlled companies, and public international organizations, as well as a political party or official thereof or candidate for political office) or any other person while knowing or having reason to know that all or a portion of such money, gift or thing of value will be offered, paid or given, directly or indirectly, to any Government Official, for the purpose of (1) influencing an act or decision of the Government Official in his or her official capacity, (2) inducing the Government Official to do or omit to do any act in violation of the lawful duty of such official, (3) securing an improper advantage, or (4) inducing the Government Official to use his influence to affect or influence any act or decision of a government or instrumentality, in order to assist KLS or any of its affiliates in obtaining or retaining business.

26.3. Supplier warrants to KLS that, with respect to the Included Scope, and during the term of the Agreement, Supplier will:
(a) not violate any Anti-Corruption Laws; and
(b) not directly or indirectly make any offer, payment, promise to pay, or authorize payment, or offer a gift, promise to give, or authorize the giving of anything of value to any Government Official or any other person while knowing or having reason to know that all or a portion of such money, gift or thing of value will be offered, paid or given, directly or indirectly, to any Government Official, for the purpose of (1) influencing an act or decision of the Government Official in his or her official capacity, (2) inducing the Government Official to do or omit to do any act in violation of the lawful duty of such official, (3) securing an improper advantage, or (4) inducing the Government Official to use his influence to affect or influence any act or decision of a government or instrumentality, in order to assist KLS or any of its affiliates in obtaining or retaining business.

26.4. Supplier represents that, unless disclosed to KLS in a separate written statement, none of its employees, directors, officers, or principals is a Government Official with jurisdiction or influence over the Included Scope. Supplier shall notify KLS in writing within five (5) business days if at any time during the term of this Agreement any of Supplier’s employees, directors, officers, or principals is named, appointed, or otherwise becomes a Government Official with jurisdiction or influence over the Included Scope. If Supplier learns or comes to have reason to know of any payment or transfer (or any offer or promise to pay or transfer) in connection with the Included Scope that would violate Anti-Corruption Laws, it shall immediately disclose it to KLS.

27. Applicable Law and Forum.
This Agreement will be governed by and construed in accordance with the laws of the State of California, without regard to that state’s conflicts of law principles. The parties expressly agree to exclude the United Nations Convention on Contracts for the International Sale of Goods, 1980, and any successor thereto. The Federal and State courts located within San Diego County, California will have exclusive jurisdiction to adjudicate any dispute arising out of or relating to this Agreement, which will be conducted in English.

28. Remedies.
All remedies set forth in this Agreement are in addition to, and will in no way limit, any other rights and remedies that may be available to the parties at law or in equity.

29. Notices.
All notices to KLS relating to this Agreement must be in writing and sent to Nitto, Inc., the parent company of KLS, at the address listed below. All notices to the Supplier will be in writing and sent to the Supplier’s address listed on the purchase order.

To Nitto, Inc.:
Head of Legal Counsel
Nitto, Inc.
400 Frank W. Burr Blvd.
2nd Floor, Suite 66
Teaneck, NJ 07666

Notices must be delivered personally, by recognized overnight courier, mailed certified first-class mail postage prepaid, by facsimile transmission to the facsimile number provided by KLS or Supplier respectively; or sent by electronic transmission (email) with proof of delivery. Any Notice will be deemed given on the date delivered if delivered personally; three business days after being placed in the mail as specified; or upon confirmation receipt that it was transmitted satisfactorily if transmitted by facsimile or electronic transmission.

30. Publicity.
Supplier shall not use KLS’s name or marks, refer to or identify KLS in any advertising or publicity releases or promotional or marketing correspondence to third parties without KLS’s prior written approval.

31. Headings and Captions.
Headings and captions are for convenience of reference only and do not alter the meaning or interpretation of any provision of this Agreement.

32. Waiver.
The failure of either party to enforce at any time any of the provisions of this Agreement will not be construed to be a continuing waiver of any provisions hereunder, nor will any such failure prejudice the right of such party to take any action in the future to enforce any provisions hereunder.

33. Severability.
If any provision of this Agreement is held to be illegal, invalid, or unenforceable by a court of competent jurisdiction, that provision will be severed from this Agreement; the remaining provisions will remain in full force and effect; and a similar legal, valid, and enforceable provision will be substituted in lieu of the severed provision.

34. Survival.
All provisions of this Agreement which by their nature should apply beyond its term will remain in force after any termination or expiration of this Agreement including, but not limited to, those addressing the following subjects: Import/Customs Compliance; Price; Most Favored Customer and Meet or Release; Invoicing and Payment; Set Off; Warranty; Cessation of Production; General Indemnification; Intellectual Property Indemnification; Insurance; Confidentiality and Ownership of Intellectual Property; Audit; Applicable Law and Forum; Remedies; Notices; Publicity; Severability; and Survival.

Kinovate Terms and Condiotions of Sale

These Kinovate Terms and Conditions of Sale, together with any quotations, orders or other exhibits or addenda expressly incorporated herein by reference (collectively, this “Agreement“), is entered into as of the Effective Date defined below by and between Kinovate Life Sciences, Inc., a Delaware corporation with offices at 501 Via del Monte, Oceanside, CA 92058 (“KLS”) and the customer identified on any KLS Quotation, or an accepted Order, as each such term is defined below (together with its affiliates, “Customer”). The “Effective Date” of this Agreement shall be first to occur of: (a) the date of the first Quotation provided by KLS to Customer, or (b) the date KLS first accepts an order from Customer to manufacture or supply Products or provide Services (as each is defined below). Customer and KLS may be referred to herein individually as a “Party” and collectively as the “Parties.”

1. QUOTATIONS AND ORDERS

1.1 KLS Quotations.
From time to time, KLS may offer to sell to Customer certain polymeric solid support products for oligonucleotide synthesis (including KLS’s NittoPhase® line of products) and/or other related products (“Products”) and/or to perform for Customer related manufacturing, analytical or similar services (”Services”), in each such case by providing to Customer a quotation, price estimate, proposal, offer document or similar document or communication from KLS (each a “Quotation”) specifying the Products to be sold and/or Services to be provided, pricing and quantity information and other relevant details. All Quotations issued by KLS are an offer to contract. Customer can accept this offer in any manner that indicates acceptance including, but not limited to, ordering any quantity of products identified in a Quotation. KLS has no obligation to issue any Quotations hereunder, and each Quotation shall only be valid for the time period stated therein (or if not so stated, for a period of thirty (30) days) after which such Quotation shall expire.

1.2 Customer Orders.
During the Term (as defined below), Customer may request to order the Products and/or Services specified in a Quotation provided by KLS to Customer by issuing a purchase order to KLS consistent with such Quotation prior to its expiration (“Purchase Order”), confirming the type and quantity of Products and/or Services to be ordered and the associated total price (as per the Quotation) as well as delivery details to the extent not in the Quotation. KLS may review the Purchase Order for, among other things, conformance with the Quotation, to determine whether or not to fulfill such Purchase Order. KLS may fulfill (by confirmation or otherwise) or refuse to fulfill any Purchase Order in its sole discretion. If KLS refuses to fulfill, such Purchase Order shall become null and void. Once KLS agrees in writing to fulfill a Purchase Order, the associated Quotation corresponding to such Purchase Order, together with any confirmatory details in such Purchase Order consistent with such Quotation (but not any new or additional terms or conditions in such Purchase Order) shall become effective and binding hereunder, and automatically incorporated into, this Agreement (each such Quotation and confirmatory details being an “Order”). Once KLS agrees to fulfill an Order, Customer may not modify, cancel or revoke such Order, except to the extent otherwise expressly specified in the underlying Quotation or agreed to in writing by KLS. Customer agrees that these Terms and Conditions of Sale exclusively govern all sales made by KLS to Customer.

2. SUPPLY OF PRODUCTS AND SERVICES

2.1 Product Manufacture and Supply.
Upon KLS’s agreement to fulfill an Order in accordance with this Agreement, KLS will use commercially reasonable efforts to manufacture and supply the Products designated in the Order in accordance with the terms and conditions of this Agreement. KLS will have no obligation to commence any manufacturing or supply activities with respect to any Products until it agrees to fulfill an Order for such Products as provided herein. If reasonably warranted, KLS may cancel an Order if KLS determines in its reasonable discretion that it needs to do so for biosecurity, safety, infringement, export restrictions and/or feasibility reasons. Any cancellation of an Order as described above shall be without penalty or liability to KLS (provided that any prepaid amounts for such Products shall be promptly refunded to Customer by KLS). If and to the extent expressly specified in the applicable Quotation that any particular Products will be manufactured in accordance with applicable current Good Manufacturing Practices (“GMP”), KLS will manufacture such Products in accordance with GMP and provide any requisite certificates of analysis in connection with any shipment of such Products.

2.2 Shipment and Delivery Terms.
All Products will be shipped Ex Works (Incoterms 2020) KLS’s facility to the delivery address specified in the Order. Except as otherwise stated in the Order, KLS may ship all Products using the means and carrier of its choice. KLS reserves the right to deliver Orders in installments, where applicable, in which case KLS will send a separate invoice for each delivery. Customer will pay for all shipping, handling, insurance, processing fees, freight, tariffs and customs for Products shipped hereunder. Products are deemed shipped and delivered to Customer when tendered to the applicable commercial carrier at KLS’s facility. At this point, title to the Products passes to Customer (subject to Customer’s payment in full of all associated Fees, as that term is defined below) and Customer becomes responsible for risk of loss and damage. KLS does not clear Products for import into Customer’s country if outside the U.S., which is Customer’s sole responsibility. In the event the applicable Quotation specifies any delivery dates or lead times, KLS will use commercially reasonably efforts to ship Products by such delivery dates and/or in accordance with such lead times (based on the date of Order acceptance). Time of delivery or shipment is not of the essence hereunder.

2.3 Delivery Acceptance and Returns.
If any Products shipped to Customer under an Order do not materially conform to the applicable KLS specifications for such Products, or are materially short in quantity (except where any of the foregoing are due to causes occurring during or after shipment), then Customer can notify KLS within thirty (30) days of Customer’s receipt of such Products to arrange for the return and replacement of such Products. If Customer does not notify KLS of such non-conformance or shortfall within such time period, such Products will be deemed accepted and fully conforming and compliant for purposes of this Agreement. If Customer timely notifies KLS and, if requested by KLS, returns the Products to KLS in accordance with KLS’s reasonable instructions and the return provisions below (within no more than thirty (30) days), KLS will use commercially reasonable efforts to produce and ship to Customer replacement Products within a reasonable period of time; provided that KLS may cancel such Order (and refund or credit to Customer any amounts received from Customer for such Products) if KLS has already shipped replacement Products for such Order once before. The foregoing shall be Customer’s sole and exclusive remedy, and KLS’s sole and exclusive liability, for any failure of Products or Product shipments to conform to the Order or otherwise be satisfactory to Customer. Return of Products to KLS is allowed only after a Return Material Authorization (“RMA”) number has been issued by KLS. Such authorization will be issued, if at all, after KLS receives notice of non-conformance within the time period specified above. No shipments of returned Products will be accepted without an RMA number. Repair or replacement of Products returned to KLS as specified above will occur only after KLS has received the returned Products, reviewed the reasons for the return, and determined whether the returned Products were defective or otherwise non-conforming. Customer will bear all expenses and all risk of loss in connection with the return of Products hereunder, provided that Customer will be reimbursed by KLS for the reasonable cost of transportation of authorized Product returns to KLS if KLS reasonably determines such Products are non-conforming.

2.4 Services.
KLS shall perform any Services specified in an Order in a professional and workmanlike manner using commercially reasonable efforts.

2.5 Quality Agreement.
For any Products specified in the Order as being manufactured in accordance with GMP, the Parties will negotiate and enter into a reasonable and customary quality agreement if requested by either Party to the extent required in connection with such compliance.

3. CUSTOMER MATERIALS, ASSURANCES AND RESPONSIBILITIES

3.1 Customer Materials.
If and to the extent specified in the applicable Order or otherwise mutually agreed by the Parties, Customer shall provide (or have provided) to KLS sufficient amounts of certain materials (such as, for example, nucleoside succinate, linkers, other molecules to be loaded into the Products or other reagents) and/or information to be used by KLS to produce Products, provide Services or otherwise perform under this Agreement (collectively, “Customer Materials”). Customer shall ensure (and represents and warrants) that the Customer Materials (if any) comply with the quantity, volume and other parameters, criteria and requirements set forth in the Order therefor (or as otherwise mutually agreed by the Parties). Customer will ensure that any Customer Material will be de-identified will not include any personal information or other information the disclosure of which is prohibited by applicable law. KLS shall not be liable or responsible for (nor be in breach hereunder on account of) any defects, errors, inaccuracies, deficiencies or problems with any Customer Materials provided to KLS hereunder.

3.2 Customer Assurances.
Customer shall provide any Customer Materials at its sole expense (including without limitation any shipping and handling) according to the timelines and other details in the Order or, if not so specified, in a prompt and timely manner so as to allow KLS’s timely performance of its supply of Products and otherwise under this Agreement. Customer agrees to label, package, and transport the Customer Materials in accordance with applicable laws. Title to the Customer Materials shall remain with Customer (and its licensors or suppliers if and as applicable). Customer represents and warrants that (a) Customer has all rights, licenses, consents and permissions required to provide the Customer Materials to KLS and for KLS to use such Customer Materials to make and supply the Products, provide Services and otherwise perform under this Agreement; and (b) KLS’s possession and use of the Customer Materials in accordance with this Agreement shall not violate any applicable laws or Customer agreement or infringe or misappropriate the intellectual property rights of any third party. Customer further represents and warrants that it has provided KLS with all material information of which Customer is aware regarding any toxic substances or material hazards associated with the handling, transport, exposure or other usage of the Customer Materials.

3.3 KLS Use of Customer Materials and Proprietary Components
Customer hereby grants KLS and its affiliates a nonexclusive license to use the Customer Materials and any Proprietary Components (as defined below) solely to make, and supply the Products and provide Services under an Order and otherwise to perform under this Agreement. “Proprietary Components” means any proprietary molecules, compounds, linkers (other than those licensed directly to KLS, such as UnyLinker™) or substances, if any, to be loaded or conjugated on or into the Products pursuant to an Order. Except to the extent the Order or this Agreement expressly states otherwise, or pursuant to Customer’s prior written consent, KLS agrees to use the Customer Materials solely for the licensed purposes described above. KLS shall have no obligation to return any unused Customer Materials. KLS may extend the foregoing rights (and disclose the Customer Materials under comparable confidentiality restrictions) to affiliates and third party service providers working on behalf of KLS with respect to the permitted purposes.

3.4 Customer Responsibilities.
Customer will provide KLS with reasonable cooperation and assistance in connection with KLS’s production and supply of Products, provision of Services and other performance under this Agreement. In addition to and without limiting the foregoing, Customer will perform those tasks and fulfill those responsibilities specified in this Agreement (including without limitation the provision of Customer Materials) and the applicable Order. Customer understands and agrees that KLS’s production and supply of Products, provision of Services and other performance under this Agreement is dependent on and subject to Customer’s timely and complete performance of such responsibilities and obligations of Customer hereunder. Customer shall comply with all applicable laws in connection with its activities and performance under this Agreement and in connection with its use of Products provided or supplied by KLS.

3.5 Limitations and Restrictions on Use of Products.
The Products are supplied by KLS solely for use in manufacturing other products and have not been approved, cleared, or licensed by the United States Food and Drug Administration or any other regulatory entity, whether foreign or domestic, for any particular use whether research, commercial, diagnostic, therapeutic or otherwise. Customer shall be solely responsible and liable for its use of any Products supplied hereunder, including without limitation for using all such Products in accordance with applicable laws, rules, regulations and for obtaining and maintaining all necessary approvals, licenses and permissions for its use of the Products and any products manufactured with such Products. KLS will not be responsible or liable for any losses, costs, expenses, or any other forms of liability arising out of Customer’s use of the Products. Customer shall use the Products only for the manufacture of products by or for Customer and shall not sell, resell, transfer or distribute the Products to any third party except for use in making products for Customer. Customer also hereby agrees not to (and not to authorize or permit others to) reverse engineer, deconstruct or disassemble any Products.

4. PURCHASE PRICE; FEES AND PAYMENT TERMS

4.1 Purchase Price and Fees.
Customer shall pay KLS the purchase price, fees and other charges (if any) specified in each Order (collectively, “Fees”) for KLS’s production and supply of Products, provision of Services and other performance under this Agreement. Pricing does not include shipping, handling, freight, insurance, taxes, tariffs and customs, which Customer is responsible for paying and which, as applicable, KLS may add to Customer’s invoice for reimbursement by Customer (which shall then be deemed part of the Fees hereunder). KLS shall have no obligation to purchase insurance for shipments unless specified in the Order, subject to reimbursement by Customer. Only the pricing on the applicable KLS-issued Quotation is valid, and KLS shall not be bound or subject to any other pricing, regardless of where stated.

4.2 Payment Terms.
Customer shall pay the Fees to KLS on the dates or occasions specified in the Order, or if not so specified in the Order, within thirty (30) days of KLS’s invoice for such Fees. Unless the Order specifies otherwise, KLS will provide invoices for shipped Products together with or promptly following such shipment. Except to the extent expressly provided otherwise in this Agreement, all Fees are non-cancelable, non-creditable and non-refundable. Any Fees not paid when due hereunder will accrue interest starting upon the due date and running until the date paid at a rate of one and one-half percent (1.5%) per month or, if lower, the highest rate allowed by applicable law. Payments shall be addressed to and sent via the means specified in the Order or otherwise as designated in writing by KLS. Unless the Order states otherwise, all Fees shall be payable in US dollars with immediately available funds. Without limiting any other rights or remedies of KLS, failure of Customer to pay any Fees when due shall entitle KLS to suspend completion or shipment of any pending Orders unless and until such Fees are paid. If KLS appoints a collection agency or an attorney to recover any unpaid amounts from Customer, KLS may charge Customer and Customer agrees to pay all reasonable costs of collection, including all associated reasonable attorneys’ fees.

4.3 Taxes.
KLS’s pricing does not include applicable taxes. Customer will be responsible for the payment of, and shall pay all, taxes tariffs and duties imposed with respect to the Products supplied, Services provided (and any other performance by KLS) under this Agreement in the nature of sales, use, excise, value-added, business, goods and services, consumption, customs, tariffs, duties, withholding, and other similar taxes or duties, but excluding taxes on KLS’s net income and employment taxes. If applicable and/or legally required for KLS to collect and pay any such taxes, KLS may add such taxes to Customer’s invoice which Customer shall be obligated to pay as part of the Fees. The Parties will cooperate in good faith to seek to obtain any legally available reductions or exemptions from such taxes to the extent legally permissible.

5. INTELLECTUAL PROPERTY

5.1 Retention of Rights.
Customer shall retain all right, title and interest in and to the Customer Materials (subject to the rights and licenses expressly provided for in this Agreement) and all of Customer’s other technology and intellectual property. KLS and its affiliates shall retain all right, title and interest in and to KLS’s and its affiliates’ methods, protocols, procedures, algorithms, inventions, software, documents, solid support technologies (including without limitation KLS’s NittoPhase® technologies), materials, works of authorship and other technologies (and any improvements thereto) used or practiced in connection with any of the manufacturing activities, Services or other performance by or for KLS under this Agreement (collectively, “KLS Manufacturing Technology”) and all of KLS’s other technology and intellectual property. No rights or licenses in, to or under either Party’s intellectual property are granted or provided hereunder, by implication, estoppel or otherwise, except to the extent expressly provided for in this Agreement.

5.2 Product Rights.
Title to the tangible embodiment of Products ordered and shipped to Customer hereunder shall pass to Customer as provided for in Section 2.2 above (subject to Customer’s payment in full of all Fees therefor); however, KLS shall retain all of its intellectual property rights in and to the Products and no assignments, rights or licenses to any KLS Manufacturing Technology or other technology or intellectual property of KLS are provided or granted to Customer by KLS in connection with such supply and shipment of Products or otherwise in connection with this Agreement, except for the following conditional and limited license. If and to the extent a license to any particular KLS Manufacturing Technology is required in order to use any Products supplied hereunder to manufacture Customer’s products without infringing any intellectual property rights in or under such KLS Manufacturing Technology, KLS hereby grants to Customer a perpetual, non-exclusive, fully paid-up worldwide license under such KLS Manufacturing Technology solely to use such Products to make or have made products by or for Customer, subject to the terms and conditions of this Agreement.

5.3 Manufacturing Suggestions.
It is not anticipated that Customer will be providing any suggestions, feedback, recommendations, improvement ideas or input regarding the KLS Manufacturing Technology (“Suggestions”). In the unlikely event that Customer does provide any such Suggestions to KLS, however, Customer hereby grants to KLS a worldwide, royalty-free, fully paid-up, non-exclusive, fully sublicenseable, irrevocable, perpetual license to use, make, have made, reproduce, offer to sell, sell, publicly perform, publicly display, adapt, modify, create derivative works of, distribute, import, and otherwise exploit the Suggestions. The foregoing license will survive any termination or expiration of this Agreement.

6. CONFIDENTIALITY

6.1 Confidential Information.
All information of a non-public or proprietary nature that is disclosed or provided by either Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) pursuant to this Agreement shall be deemed “Confidential Information” of the Disclosing Party hereunder. Confidential Information may be disclosed to the Receiving Party hereunder in oral, written or other tangible form. The Customer Materials shall be Confidential Information of Customer, the KLS Manufacturing Technology and these KLS Supply Terms and Conditions shall be the Confidential Information of KLS, and the details of the Order shall be the Confidential Information of both Parties, in all such cases, subject to Section 6.2 below. Except to the extent expressly authorized by this Agreement or by the Disclosing Party in writing, the Receiving Party shall maintain in strict trust and confidence, and shall not use for any purpose (other than to perform its obligations or exercise its rights under this Agreement), or disclose to any third party any Confidential Information of the Disclosing Party. The Receiving Party shall only disclose Confidential Information of the Disclosing Party to those expressly authorized by this Agreement or the Disclosing Party in writing hereunder and to those of its affiliates, employees, consultants, contractors, advisors and/or representatives with a reasonable need to know such information and who are bound by obligations of confidentiality at least as protective as those contained herein. The Receiving Party shall protect the Confidential Information of the Disclosing Party by using at least the same degree of care as the Receiving Party uses to protect its own confidential materials and information, but in any event no less than reasonable care.

6.2 Exceptions.
The obligations of confidentiality and nonuse set forth in Section 5.1 above (and return and destruction of information below) shall not apply to any information that: (a) is in the public domain or comes into the public domain through no fault of the Receiving Party; (b) is furnished to the Receiving Party by a third party rightfully in possession of such information not subject to a duty of confidentiality with respect thereto; (c) is already known by the Receiving Party at the time of receiving such Confidential Information; or (d) is independently developed by the Receiving Party without use of or reference to the Confidential Information of Disclosing Party, as demonstrated by independent written records contemporaneous with such development.

6.3 Authorized Disclosure.
Notwithstanding any of the foregoing in this Section 6, the Receiving Party may disclose Confidential Information to the extent such disclosure is required by law or regulation, or pursuant to a valid order of a court or other governmental body having jurisdiction, provided that the Receiving Party provides the Disclosing Party with reasonable prior written notice of such disclosure to the extent legally permissible and reasonable assistance in the Disclosing Party’s efforts to obtain a protective order or confidential treatment preventing or limiting the disclosure.

6.4 Return of Confidential Information.
Upon termination or expiration of the Agreement, or upon written request of the Disclosing Party, the Receiving Party shall promptly return or destroy all documents, notes and other tangible materials representing the Disclosing Party’s Confidential Information and all copies thereof; provided, however, that subject to continued confidential treatment in accordance with the terms of this Agreement, the Receiving Party (i) may retain a copy of such Confidential Information for legal archival purposes and for compliance with the surviving provisions of this Agreement and applicable laws and regulations, and (ii) shall not be obligated to erase Confidential Information contained in an electronic archiving or backup system operating in the ordinary course of business.

6.5 Injunctive Relief.
The Parties expressly acknowledge and agree that any breach or threatened breach of this Section 6 by the Receiving Party may cause immediate and irreparable harm to the Disclosing Party that may not be adequately compensated by damages. Each Party therefore agrees that in the event of such breach or threatened breach by the Receiving Party, and in addition to any remedies available at law, the Disclosing Party shall have the right to seek equitable and injunctive relief in connection with such a breach or threatened breach.

7. LIMITATION AND DISCLAIMER OF WARRANTIES

7.1 Limitations on Warranty.
Subject to the terms of Section 2.3 with respect to the rejection and return of non-conforming Products shipped to Customer, the Products and Services are provided “AS IS” without warranty, representation or guarantee of any kind.

7.2 Disclaimer of Warranties.
EXCEPT AS EXPLICITLY SET FORTH IN THIS AGREEMENT, KLS MAKES NO, AND HEREBY DISCLAIMS ALL, REPRESENTATIONS AND WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE PRODUCTS, SERVICES OR ANY OTHER SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT AS WELL AS WARRANTIES REGARDING SECURITY, RESULTS OBTAINED THROUGH THE USE OF ANY PRODUCT AND ANY WARRANTY ARISING FROM A STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF PERFORMANCE, DEALING OR USAGE OF TRADE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED. IN NO EVENT WILL KLS’S TOTAL LIABILITY FOR BREACH OF ANY WARRANTY EXPRESSLY PROVIDED HEREUNDER EXCEED THE PURCHASE PRICE OF THE PRODUCT OR SERVICES AT ISSUE. No description, statement or other content of any KLS website or marketing or communications materials will be binding on KLS.

8. INDEMNIFICATION; LIMITATION OF LIABILITY

8.1 By KLS.
KLS shall indemnify, defend and hold harmless Customer and its affiliates and their respective directors, officers, employees, and agents (the “Customer Indemnitees”) from and against any and all third party suits, claims, actions, or proceedings (collectively, “Claims”) brought against any Customer Indemnitees together with any costs, expenses, liabilities, damages and losses (including reasonable legal expenses and attorneys’ fees) directly resulting from such Claims, to the extent such Claims are arising out of or caused by: (a) the gross negligence, recklessness or willful misconduct of KLS or its officers, directors, employees, or agents; or (b) the infringement by any KLS Manufacturing Technology of any third party intellectual property rights (excluding for the avoidance of doubt any such infringement to the extent arising from the Customer Materials or any Proprietary Components); except in each case to the extent that any such Claim arises out of or results from the negligence, recklessness or willful misconduct of any Customer Indemnitee or Customer’s breach of its obligations, warranties, or representations under this Agreement. Should any KLS Manufacturing Technology incorporated into any Product (if any) become, or in KLS’s opinion be likely to become, the subject of such an infringement Claim, KLS may, at its option, (i) procure for Customer the right to use such KLS Manufacturing Technology in the Products as provided hereunder; (ii) replace or modify, in whole or in part, the Product to make it non-infringing; or (iii) terminate the Agreement and refund any Fees paid for any affected Products supplied to Customer, less an amount determined by multiplying such Fees by a fraction, the numerator of which is the number of months elapsed since delivery of such Products (up to a maximum of 12) and the denominator of which is twelve (12). THE FOREGOING INDEMNITY SETS FORTH KLS’S ENTIRE LIABILITY AND OBLIGATION, AND CUSTOMER’S SOLE AND EXCLUSIVE REMEDY, FOR ANY CLAIM OF INFRINGEMENT OR VIOLATION OF ANY INTELLECTUAL PROPERTY RIGHTS HEREUNDER.

8.2 By Customer.
Customer shall indemnify, defend and hold harmless KLS, its affiliates, its contractors, and its and their directors, officers, employees, and agents (the “KLS Indemnitees”) from and against any and all Claims brought against any KLS Indemnitees together with any costs, expenses, liabilities, damages and losses (including reasonable legal expenses and attorneys’ fees) directly resulting from such Claims, to the extent such Claims are arising out of or caused by: (a) the gross negligence, recklessness or willful misconduct of any Customer Indemnitee; (b) any products made using the Products or the development, manufacture, use, marketing or sale of such products; (c) Customer’s use of the Products ordered, including but not limited to liabilities arising from bodily injury, including death or property damage to any person arising from such use, (d) the infringement of any third party patent, license or other intellectual property rights arising from (i) the use of any Customer Materials or Proprietary Components in accordance with this Agreement, (ii) the use or sale by Customer of a manufactured good or any assembly, circuit, combination, method or process in which Customer uses any of the Products sold hereunder, or (iii) the manufacture or sale by KLS of the Products sold hereunder if KLS manufactures the Products according to Customer’s specifications, or designs and manufactures the Products to meet Customer’s requirements, or uses any equipment, material, parts or machinery furnished by Customer to aid or enable KLS to manufacture the Products; (e) the alleged infringement or any trademark or violation of any law resulting from the marking, labeling, or branding, either by Customer or by KLS at the request of Customer, of the Products sold hereunder (or of Products containing or made using such Products); (f) any of the Customer Materials or KLS’s use of any Customer Materials in accordance with this Agreement; (g) any claims of governmental authorities arising from any actions or omissions of Customer; or (h) Customer’s breach of its obligations, warranties or representations under this Agreement, including without limitation any breach of Section 10 below; except in each case to the extent that any such Claim arises out of or results from the gross negligence, recklessness or willful misconduct of any KLS Indemnitee or KLS’s breach of its obligations, warranties, or representations under this Agreement.

8.3 Indemnification Conditions and Procedures.
Each Party seeking indemnification, defense or being held harmless for a Claim hereunder agrees to: (a) provide written notice to the indemnifying Party of such Claim promptly after the indemnified Party has knowledge of such Claim; (b) permit the indemnifying Party to assume full control over the defense and settlement of such Claim, except that the indemnified Party may cooperate in the defense at its own expense using its own counsel (and indemnified Party must approve any settlement that involves an admission by or imposes a material obligation on such Party, such approval not to be unreasonably withheld); (c) provide reasonable cooperation, information and assistance to the indemnifying Party, at the indemnifying Party’s reasonable expense, with respect to the defense and settlement of such Claim; and (d) not compromising or settling (or admitting any liability for) such Claim without the indemnifying Party’s written consent.

8.4 Limitation of Liability.
EXCEPT FOR DAMAGES AVAILABLE FOR BREACHES OF CONFIDENTIALITY OBLIGATIONS UNDER SECTION 6 AND THE INDEMNIFICATION RIGHTS AND OBLIGATIONS UNDER SECTION 8, AND EXCEPT WITH RESPECT TO A PARTY’S GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY HEREUNDER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR INDIRECT DAMAGES OF ANY KIND (INCLUDING BUT NOT LIMITED TO COSTS OF COVER, COST OF PROCUREMENT OF SUBSTITUTE GOODS, LOST REVENUES OR PROFITS, LOSS OF BUSINESS, LOSS OF USE, OR LOSS OF GOODWILL) ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES AND REGARDLESS OF THE THEORY OF LIABILITY. IN ADDITION, IN NO EVENT SHALL KLS BE LIABLE FOR ANY DAMAGES OR OTHER AMOUNTS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT IN EXCESS OF THE AMOUNT PAID BY CUSTOMER FOR THE PRODUCTS AND/OR SERVICES GIVING RISE TO CUSTOMER’S CLAIM. HOWEVER, THE FOREGOING PROVISION DOES NOT LIMIT KLS’S LIABILITY WITH RESPECT TO ITS OBLIGATIONS UNDER SECTION 8, GROSS NEGLIGENCE, INTENTIONAL MISCONDUCT, FRAUD, FRAUDULENT MISREPRESENTATION OR ANY OTHER LIABILITY THAT CANNOT BE EXCLUDED BY LAW.

THE PARTIES AGREE THAT THE AMOUNTS PAYABLE HEREUNDER ARE BASED IN PART ON THESE LIMITATIONS, AND THESE LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. ALL OF THE FOREGOING LIMITATIONS OF LIABILITY SHALL APPLY ONLY TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW

9. TERM AND TERMINATION

9.1 Term.
The term of this Agreement shall commence on the Effective Date and continue thereafter for one (1) year, unless earlier terminated or extended in accordance with the express provisions herein (such period, as extended or earlier terminated, being the “Term”). Following the end of the initial term or any renewal term, the Term of the Agreement shall automatically renew for successive one (1) year periods unless either Party notifies the other Party at least sixty (60) days before the end of the then-current Term that it desires to end this Agreement (in which case this Agreement shall expire at the end of the thencurrent Term).

9.2 Termination.
Either Party may terminate this Agreement at any time with or without cause for its convenience, effective upon ninety (90) days prior written notice to the other Party. In addition, either Party may terminate this Agreement immediately upon written notice to the other Party if the other Party breaches this Agreement or the Order, as the case may be, and does not cure such breach within thirty (30) days after the non-breaching Party gives notice of the breach to such other Party.

9.3 Effects of Termination.
Pending Orders (along with the associated terms and conditions of this Agreement with respect to such Orders) shall survive any expiration or termination of this Agreement until completed and paid for, unless this Agreement is terminated for breach by a Party (or such pending Order is otherwise cancelled in accordance with the express terms of this Agreement). Sections 3.5, 5, 6, 7, 8, 9.3, 10 and 11 shall survive any termination or expiration of this Agreement. Termination or expiration of this Agreement shall not affect either Party’s liability for any obligations or liabilities that have accrued prior to such expiration or termination (including without limitation any Fees owed by Customer and the corresponding provisions of Section 4 with respect thereto) or any breach of this Agreement committed before such expiration or termination.

10. EXPORT CONTROLS

10.1 Export Compliance.
Customer acknowledges and agrees that Products and information sold by or received from KLS hereunder may be subject to United States, European Union and local export control laws and regulations. Such regulations include, without limitation, the Export Administration Regulations (“EAR”), International Traffic in Arms Regulations (“ITAR”), and the regulations and orders administered by the Office of Foreign Assets Control (“OFAC”) of the U.S. Department of Treasury as well as comparable laws of other jurisdictions outside the United States (collectively and interchangeably referred to as “Export Control Regulations”). Customer agrees to comply with all Export Control Regulations in its receipt, shipment, use, handling, transfer, re-sale, export and re-export of KLS Products and any technical information received from KLS or related to KLS Products. Customer may not, directly or indirectly, sell, export, re-export, transfer, divert, or otherwise dispose of any such Products or information (including products derived from or based on our Products or information) to any destination, entity, person or end use prohibited or restricted by any Export Control Regulations (unless the required licenses and approvals are obtained to legally do so, if available).

10.2 Prohibited Countries and Persons.
Without limiting the generality of the foregoing, Customer agrees that no Products purchased from KLS will be sold to, transferred to, exported to, or reexported to Cuba, Iran, Sudan, Syria, North Korea, any country subject to U.S. sanction or embargo administered by OFAC. Customer represents and warrants that it is not on OFAC’s Specially Designated Nationals List, or the Entity List or Denied Persons List of the EAR (“Prohibited Persons”) and agrees that no products Purchased from KLS will be sold to, transferred to, exported to, or re-exported to any Prohibited Person.

10.3 Prohibited Uses.
Further, without limitation, Customer agrees that the Products purchased or received hereunder will not be used in connection with any of the following activities: (i) research on or development, design, manufacture, construction, testing or maintenance of any nuclear explosive device, nuclear reactor, facility for fabrication, conversion, processing or storage of nuclear fuel, components thereof, or other similar activities; (ii) design, development, production, stockpiling or use of chemical or biological weapons; (iii) design, development, production or use of rocket systems including ballistic missile systems, space launch vehicles, sounding rockets, and unmanned air vehicles including cruise missile systems, target drones, and reconnaissance drones; or (iv) any activity relating maritime nuclear propulsion plants, their land prototypes and facilities for their construction, support or maintenance.

10.4 Customer Provided Technical Data.
Customer represents and warrants that all specifications, drawings, designs, or technical information, along with all Customer Materials and Proprietary Components (collectively “Customer Technical Data”) which have been provided or will be provided by or on behalf of Customer to KLS hereunder, regardless of format or medium, are not controlled and do not require a license for export under the Export Control Regulations. Customer acknowledges and agrees that KLS will rely upon this general representation in managing its own export compliance obligations, unless Customer provides notice to KLS, in writing, that Customer Technical Data provided by or on behalf of Customer are subject to specific restrictions on export under Export Control Regulations. In such written notice, Customer will specifically identify the Customer Technical Data subject to restrictions and will advise of the following: (i) whether the Customer Technical Data provided is subject to the jurisdiction of the EAR or the ITAR; and (ii) the Export Commodity Classification Number, in the case of EAR controlled Technical Data, or the United States Munitions List category, in the case of ITAR controlled Technical Data.

10.5 Assistance.
Upon written request from KLS, Customer shall promptly provide KLS with reasonable assistance and information to which it has access as needed for completion of exportation or importation governmental processes, including licensing, with respect to KLS’s performance under this Agreement.

11. GENERAL PROVISIONS

11.1 Governing Law; Arbitration.
This Agreement is governed by the laws of the State of New York without reference to any conflict of laws or choice of law rules or principles. The United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement and is hereby expressly disclaimed. Subject to the arbitration provision of this Section 11.1, the Parties hereby agree that all disputes arising out of this Agreement and any enforcement of this Agreement will be subject to (and each Party consents to) the nonexclusive jurisdiction and venue of the state and federal courts in New York City, New York. Any dispute or claim arising out of or in connection with this Agreement will be finally settled by binding arbitration in New York City, New York under the Rules of Arbitration of the American Arbitration Association, by at least one arbitrator appointed in accordance with said rules. The arbitrator shall apply New York law, without reference to rules of conflicts or law or rules of statutory arbitration, to the resolution of any dispute. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing, the Parties may apply to any court of competent jurisdiction for preliminary or interim injunctive or other interim equitable relief, or to compel arbitration in accordance with this paragraph, without breach of this arbitration provision.

11.2 Severability.
If any provision of this Agreement is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will be unimpaired and remain in full force and effect while the invalid or unenforceable provision will be deemed modified so that it is valid and enforceable to the maximum extent permitted by law.

11.3 No Assignment.
This Agreement may not be assigned or otherwise transferred, in whole or in part, by operation of law or otherwise, by either Party without the other Party’s express prior written consent; provided, however, that either Party may assign this Agreement without such consent to its affiliate or its successor in interest in connection with any merger, acquisition, consolidation, reorganization or sale of such Party or all or substantially all of the assets of such Party to which this Agreement relates. This Agreement shall be binding upon, and inure to the benefit of the successors, executors, heirs, representatives, administrators and assigns of the Parties hereto. Any attempted assignment, delegation, or transfer in violation of the foregoing will be null and void.

11.4 Notices.
Each Party must deliver all notices, consents, and approvals required or permitted under this Agreement in writing to the other Party at the address specified in the Order, by personal delivery, by certified or registered mail (postage prepaid and return receipt requested), by a nationally-recognized overnight carrier or by confirmed email (except for notices of breach or termination). Notice will be effective upon receipt or refusal of delivery. Each Party may change its address for receipt of notice by giving notice of such change to the other Party.

11.5 Construction.
Section headings are included in this Agreement merely for convenience of reference; they are not to be considered part of this Agreement or used in the interpretation of this Agreement. No rule of strict construction will be applied in the interpretation or construction of this Agreement.

11.6 Waiver.
All waivers must be in writing and signed by the Party to be charged to be effective hereunder. No failure or delay to enforce or exercise any provision, right or remedy hereunder shall constitute a waiver thereof.

11.7 Entire Agreement; Amendments.
This Agreement, including any Orders hereunder, is the final, complete, and exclusive agreement of the Parties with respect to the subject matter hereof and supersedes and merges all prior or contemporaneous communications and understandings between the Parties with respect to such subject matter. KLS’s offer to supply Products and provide Services is expressly limited to the terms of the Agreement. If Customer submits a purchase order, or other document for the purchase of Products or Services, whether or not in response to a quotation, Customer is deemed to have accepted and agreed to this Agreement, to the exclusion of (a) any other terms and conditions appearing in or referenced in Customer’s purchase order or other documents, and (b) any previous course of dealing, course of performance, trade usage or co-existent agreement. No modification of or amendment to this Agreement will be effective unless in writing and signed by both of the Parties.

11.8 Force Majeure.
Neither Party will be liable for any delays or failures in performance under this Agreement (other than payment obligations under this Agreement) due to circumstances beyond its reasonable control, including without limitation, acts of God, disease, pandemics (such as, without limitation, a Covid-19 pandemic), war, terrorism or the public enemy, riot, civil commotion or sabotage, expropriation, condemnation of facilities, changes in law, national or state emergencies or other governmental action, strikes, lockouts, work stoppages or other such labor difficulties, floods, droughts or other severe weather, fires, explosions or other catastrophes, or accidents causing damage to or destruction, in whole or in part, of the equipment or property necessary to perform the Services.

11.9 Independent Contractors.
KLS’s relation to Customer under this Agreement is that of an independent contractor. Nothing in this Agreement is intended or should be construed to create a joint venture, agency or employer-employee relationship between Customer and KLS or any of KLS’s affiliates, employees or agents. Neither Party is authorized to bind, make any commitment or otherwise act on behalf of the other Party.

11.10 Nonexclusive Arrangement.
Notwithstanding anything to the contrary herein, nothing in the Agreement shall limit or restrict KLS’s right and ability at all times to provide products and services to third parties which are similar or identical to the Products or Services made, provided or supplied under this Agreement.

11.11 Exclusion of Government Contracts.
This Agreement and the products and services hereunder are not for government customers or government contractors. Customer represents and warrants that the Products, Services and transactions under this Agreement are not subject to the U.S. Federal Acquisition Regulations or comparable regulations of other jurisdictions (collectively, “FARs”). If Customer is a governmental entity or seeking to enter into this Agreement as a government contractor (or if any FARs would otherwise apply hereto), Customer shall notify KLS in advance and obtain KLS’s prior  written consent (and/or enter into such additional agreements or terms requested by KLS through a mutuallyexecuted document) prior to ordering or receiving any goods or services hereunder.

11.12 Counterparts.
This Agreement may be entered into or executed in two or more counterparts, each of which shall be deemed an original and all of which shall constitute together the same instrument.