Purchase Order Acceptance Terms Kinetic Die Casting Company ("KDC")

Kinetic Die Casting Company Purchase Order Acceptance Terms -
Thank you for trusting Kinetic Die Casting Company with your die casting production parts and die casting tooling needs. These terms and conditions are the same we have used since our founding in 1994. Please take a few moments to review for your future reference. These "Terms and Conditions" are generally understood as our industry standard terms and conditions.

All Purchase Orders accepted by KDC are subject to these terms and conditions. There will be no exceptions unless approved by a Corporate Officer of Kinetic Die Casting, Inc.

Thank you for your business,

Bob Thomas, President
Kinetic Die Casting, Inc.

Please review the following sections:

1. Delivery Terms and Conditions

2. Purchase Order Terms and Conditions

3. Credit Terms for new customers

4. Credit Terms for established customers

5. Die Casting Tooling Credit Terms

6. Cancellation Policy of Production or Materials Purchase Orders.

7. Cancellation Policy for Tooling Purchase Orders

8. Quality Commitment for Production of Purchased Parts

9. RMA for Parts that are eligible to be returned

10. Parts ineligible for repair, replacement or credit

11. Die Casting Tooling Ownership and Storage

12. Privacy of our customers is very important

13. Privacy of our customers is very important

1. Delivery
   1. Delivery is defined as product leaving our dock and shipped to your door.
   2. Production Parts will be delivered in less than six (6) weeks for Raw Castings.
   3. Other processes take additional time. Please confirm delivery date if you are in question.
   4. We reserve the right to ship +/- 10% of the total part purchase order quantity.
   5. KDC uses FOB Origin Freight and Delivery cost are the buyers responsibility.
   6. Accounts with a balance more than 60 days old may require past due amount to be paid prior to next shipment of parts.
   7. Accounts with a balance more than 90 days old may require total open balance to be paid prior to next shipment of parts.
   8. New Tooling typically 10-12 weeks from when purchase order, check and final print arrives. Please confirm delivery when purchase order is placed.
   9. Tooling Balance must be paid prior to our shipping production die casting parts.
   10. Tooling Samples are less than 11 die casting parts, production parts are 11 or more.

2. Purchase Orders to KDC
   1. No purchase order issued to KDC is valid unless confirmed by us.
   2. Part prices and part deliveries will be confirmed by us prior to each purchase order acceptance.
   3. It is understood that all purchase orders, invoices and payments will be in U.S. Dollars only.
   4. Overdue accounts are subject to a finance charge of 2% per month.

3. Credit Terms for new customers of KDC
   1. New customers can apply for Good Credit Status by submitting credit information to our .
   2. In some cases, we may require initial purchase orders to be C.O.D or pre-paid to establish Good Credit Status.
   3. Customers late with payments may lose Good Credit Status and may need to re-negotiate credit terms on future purchase orders.

4. Credit Terms for Materials other than Tooling
   1. All customers with Good Credit Status will be allowed 30 days for payments to arrive to KDC. Payments arriving after 30 days are late.
   2. Customers late with payments may lose Good Credit Status and may need to re-negotiate credit terms on future purchase orders.

5. Credit Terms for New Die Casting Tooling
   1. A deposit of 50% is expected with the New Tooling Purchase Order.
   2. The balance is due upon the delivery of three (3) part samples to prove that the die casting tooling was made.
   3. Tooling is approved when samples are approved by measuring to an approved 2D print.
   4. Tooling samples are not cosmetic in nature and should not be expected to appear like production parts.
   5. KDC will not machine, paint or in any other way modify tooling samples for approval.
   6. KDC will not provide a PPAP or a lower production quantity to complete tooling purchase order for tooling final payment.

6. Credit Terms for Existing Die Casting Tooling
   1. Existing Die Casting Tooling Repairs or Tooling Alterations
   2. Amounts less than $1,000 will be net 30 days,
   3. Amounts greater than $1,000 will require 50% down payment, with the balance on net 30 days terms.

7. Purchase Order Cancellations for Die Casting Parts or Materials
   If our customer cancels a production parts or materials purchase order:
   1. A purchase order cancellation must be sent in writing. The date received will be used to determine if a cancellation fee is required.
   2. No fees will be charged if no expenses were paid or materials purchased to produce purchase order requirements.
   3. If special materials were purchased to produce items in purchase order, our customer will need to purchase those items from our inventory.
   4. If cancellation comes as tooling is producing parts, our customer must pay for expenses to that point.
   5. If cancellation comes after parts have been completed, our customer is obligated to pay for the parts ordered.

8. Purchase Order Cancellations for Die Casting Tooling
   If our customer cancels a purchase order for die casting tooling:
   1. A purchase order cancellation must be sent in writing. The date received will be used to determine if a cancellation fee is required.
   2. In the first two weeks after the purchase order was placed, the deposit paid may be forfeit to cover engineering and materials costs.
   3. If the Tooling purchase order is more than three weeks old an additional amount, up to the full balance, may be charged for additional fees.
   4. If tooling samples were provided to our customer, the entire tooling balance is due to be paid by the customer.

9. Die Casting Part Quality Commitment
   1. We will supply parts to the quality requirements of the original purchase order.
   2. Parts not meeting quality requirements of original purchase order and blueprint, may be returned (see Returns).
   3. Any additions or changes in quality requirements or material changes need to be approved by KDC prior to part delivery date.
   4. If changes or additions are not approved by KDC, the original purchase order and blueprint revision will be the governing documents.
   5. All acceptance criteria will be established by the part blueprint and the revision level stated on original purchase order. Inspection or acceptance criteria not indicated on the original blueprint or purchase order will not govern acceptance of production parts.

10. Materials for Die Casting Parts and Die Casting Tooling
    1. Unless specified otherwise on customer purchase order or on the part print, KDC will assume the part material to be aluminum.
    2. Part material specified as aluminum or aluminium, is typically understood by KDC as 380 aluminum alloy.
    3. Part material specified as zamak, zamac or zinc, is typically understood by KDC as #3 zinc alloy.
    4. Die casting tooling manufactured by KDC is made from H13 tool steel.

11. RMA Returns Die Casting Parts Policy (Repair/Replacement/Credit)
    In the unlikely event we ship die casting parts that are not acceptable by your company.
    1. Contact us and we will issue a Return of Materials Authorization (RMA).
    2. We will Repair or Replace the parts in less than 30 days from the date the parts were returned.
    3. If not repaired or replaced in 30 days, a credit to your account will be issued.
    4. Our liability is limited to the invoiced value of the products we ship.
    5. All rejected materials claims must be made seven (7) days from delivery of material.
    6. If the parts are not returned to us within 30 days of the RMA date, the RMA expires.

12. Die Casting Parts Not eligible for Repair/Replacement/Credit
    1. Die Casting Parts altered from how KDC shipped them, are NOT eligible for Repair / Replacement / Credit.
       
       Die Casting Parts or materials that were:
       • Machined,
       • Painted or powder coated,
       • Plated, or any other process that was performed to the parts after KDC shipped the parts
    2. Parts not subject to or eligible for repair/replacement/credit may be allowed a metal credit for the weight of material, unless the parts are contaminated.

13. Die Casting Tooling Storage and Ownership
    1. Die Casting Tooling paid for by our customers is property of our customers and will be stored by KDC for free.
    2. Die Casting Tooling stored by KDC will not be used to make parts for another customer without permission of the tooling owner.
    3. Tooling made by us will be maintained for our customers at no charge.
    4. Tooling provided to us by our customer will be maintained at our customers cost.
    5. Sometimes, the customer's tooling does not include the Die Holder or Mold Base. These would be the property of KDC .

14. Request of Returning Die Casting Tooling to our Customer
    Tooling can/will be returned to our customer or tooling owner.
    1. When all the following conditions are met:
       1. Written tooling return request notification, signed by KDC customer or proven tooling owner.
       2. Acceptance and cleared payment for all material in inventory held for customer by KDC.
       3. All open credit accounts must be paid and all payments and/or checks must be cleared by our bank.
       4. Proof of tooling ownership will sometimes be required before tooling can be released.
    2. Tooling that is not used by customer for seven (7) years will be returned to KDC customer or tooling owner.
    3. Tooling will be considered abandoned if KDC cannot contact the tooling owner.
    4. Abandoned tooling will be disposed of by KDC as we see fit.

15. Privacy of our Customers
    KDC respects the privacy of our customers. We consider the following to be proprietary information.
    1. We will not disclose to third parties our customers purchased part prices.
    2. We will not disclose to third parties our customers exact purchasing quantities.
    3. In some cases we will not admit to third parties of selling to a specific company.
    4. KDC expects our die casting part customers and die casting tooling customers to maintain the same confidentiality in their relationship with KDC regarding:
    • KDC part prices,
    • KDC tool prices,
    • KDC considers shopping our prices to be distasteful.
    • Customer shipment quantities,
    • KDC capabilities and KDC limitations.
    5. Other privacy terms for internet access can be found here (Privacy Terms)

KDC Purchase Order Acceptance Terms
Kinetic Die Casting Company ("KDC")