Nortech Systems INC

10) Credit and Terms of Payment. Unless otherwise expressly agreed in writing by Nortech, payment in full is due thirty (30) days from invoice date. Nortech may alter or revoke credit terms at any time without notice. Each shipment will be considered a separate and independent transaction for which payment is due. a. Buyer's Financial Condition; Insecurity. Buyer will furnish information to Nortech within thirty (30) days of its request evidencing Buyer’s acceptable credit standing. If, in Nortech’s sole judgment, Buyer's financial condition or any other circumstance causes Nortech to be insecure with respect to Buyer's performance of any obligation under this Agreement, Nortech may accelerate and demand immediate payment of any amounts owed Nortech, cancel this

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Products subject to such extended shipment date. 7) Buyer Designated Components, Buyer Owned Tooling or Equipment a. Designated Components or Customer Furnished Materials (“CFM”). If Buyer requires that Nortech purchase or use certain component(s) from a designated supplier or supplied CFM, Nortech will use its commercially reasonable efforts to manage such relationship. However, Nortech will not be responsible or liable to Buyer for any breach of these Terms and Conditions due to any action or inaction by the designated supplier, including, without limitation, late delivery of components and any quality issues with the components. b. Tooling. Liability for Buyer owned or specified tools is the full responsibility of Buyer. Payment for tools is due upon submission of an invoice to Buyer by Nortech. All tooling, inspection equipment, etc. designed and fabricated in-house or procured from a third party by Nortech to satisfy contractual and/or production/inspection needs, regardless of the Buyer having been invoiced and having made payment for said tooling, and not claimed by the Buyer for a period of thirty (30) days from the date of a request for disposition being submitted to the Buyer from Nortech will be deemed the property of Nortech and may be disposed of or retained by Nortech. c. Supplied Tooling or Equipment. Buyer owned tooling, inspection equipment, etc. supplied directly to Nortech by the Buyer for contractual and/or production/inspection needs, is at the risk of th

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5) Purchase Price. The price for the Products will be the price set forth in Nortech’s written quotation delivered to Buyer and such prices will be in effect only for the time period or for the quantity of Products set forth in Nortech’s quotation. If no time period or purchase quantity is set forth in such quotation, the quoted prices will only be in effect for thirty (30) days a. Raw Material Supply and Labor. All prices, including prices for Products subject to a purchase order submitted by Buyer and accepted by Nortech but not yet delivered, will be subject to change if any raw material costs relating to the manufacture of the Products and/or labor costs necessary to produce such Products increase due to any event beyond the reasonable control of Nortech, including, without limitation, any industry wide shortages of any raw ingredient or material, labor shortages, or general inflationary pressures. b. Expedites or Changes. Prices are based upon the build volumes provided by Buyer. Price and/or lead time may be re-quoted if purchase order release quantities or schedule differ from the quoted quantities. In the event Buyer requests a change in either quantities ordered or shipment schedule, Nortech may change the prices applicable to the Product as a result of such a change.

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4. WARRANTIES. All warranties of Seller, whether created by law or in fact, are incorporated herein by reference and shall include, and are hereby supplemented by, the following express warranties: a. For one (1) year following the date of Buyer's acceptance of the Goods that: (i) when received by Buyer from Seller, the Goods will be free from defects in design, material, workmanship and manufacture; (ii) the Goods will conform to any and all specifications, drawings, samples, or other descriptions furnished by Buyer; (iii) the Goods will be merchantable and suitable for the purposes for which they are intended including without limitation purposes made; and Revision Date: 1/11/2019 b. Except in the case of Goods for which Buyer furnishes complete and detailed design and manufacturing drawings, the manufacture and sale by Seller of the Goods, the use, resale, installation and intended use of the Goods by Buyer, and disclosures by Seller to Buyer in any manner hereunder shall not infringe upon or violate the legal or equitable rights of any person, corporation or partnership arising out of any license or franchise, or out of any patent, trademark, or other proprietary right, now or hereafter in effect. All obligations of Seller in this "Warranties" clause shall survive acceptance of and final payment for the Goods.

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Agreement or suspend performance. b. Sales and Similar Taxes; Shipping Costs; Insurance. Quoted prices for the Products do not include

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