- SERVICES & DELIVERABLES.
Seller agrees to perform the
services ("Services") and/or provide the goods or Service deliverables
(collectively referred to as "Goods"), described in any purchase order, in
accordance with the applicable purchase order, scope of work and with these
Terms and Conditions ("Agreement"). Upon acceptance of a purchase order,
shipment of Goods or commencement of a Service, Seller shall be bound by the
provisions of this Agreement, including all provisions set forth on the face of
any applicable purchase order, whether Seller acknowledges or otherwise signs
this Agreement or the purchase order, unless Seller objects to such terms in
writing prior to shipping Goods or commencing Services.
This writing does
not constitute a firm offer within the meaning of Section 2205 of the California
Commercial Code, and may be revoked at any time prior to acceptance. This
Agreement may not be added to, modified, superseded or otherwise altered, except
by writing signed by an authorized ATN representative. Any terms or conditions
contained in any acknowledgment, invoice or other communication of Seller, which
are inconsistent with the terms and conditions herein, are hereby rejected. To
the extent that this Agreement might be treated as an acceptance of Seller's
prior offer, such acceptance is expressly made on condition of assent by Seller
to the terms hereof and shipment of the Goods or beginning performance of any
Services by Seller shall constitute such assent. ATN hereby reserves the right
to reschedule any delivery or cancel any purchase order issued at any time prior
to shipment of the Goods or prior to commencement of any Services. ATN shall not
be subject to any charges or other fees as a result of such cancellation.
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Time is of the essence. Delivery of Goods shall be
made pursuant to the schedule, via the carrier and to the place specified on the
face of the applicable purchase order. ATN reserves the right to return,
shipping charges collect, all Goods received in advance of the delivery
schedule. If no delivery schedule is specified, the order shall be filled
promptly and delivery will be made by the most expeditious form of land
transportation. If no method of shipment is specified in the purchase order,
Seller shall use the least expensive carrier. In the event Seller fails to
deliver the Goods within the time specified, ATN may, at its option, decline to
accept the Goods and terminate the Agreement or may demand its allocable fair
share of Seller's available Goods and terminate the balance of the Agreement.
Seller shall package all items in suitable containers to permit safe
transportation and handling. Each delivered container must be labeled and marked
to identify contents without opening and all boxes and packages must contain
packing sheets listing contents. ATN’s purchase order number must appear on all
shipping containers, packing sheets, delivery tickets and bills of lading.
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- IDENTIFICATION, RISK
OF LOSS & DESTRUCTION OF GOODS.
Identification of the Goods
shall occur in accordance with Section 2501 of the California Commercial Code.
Seller assumes all risk of loss until receipt by ATN. Title to the Goods shall
pass to ATN upon receipt by it of the Goods at the designated destination. If
the Goods ordered are destroyed prior to title passing to ATN, ATN may at its
option cancel the Agreement or require delivery of substitute Goods of equal
quantity and quality. Such delivery will be made as soon as commercially
practicable. If loss of Goods is partial, ATN shall have the right to require
delivery of the Goods not destroyed.
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As full consideration for the performance of the
Services, delivery of the Goods and the assignment of rights to ATN as provided
herein, ATN shall pay Seller (I) the amount agreed upon and specified in the
applicable purchase order, or (ii) Seller's quoted price on date of shipment
(for Goods), or the date Services were started (for Services), whichever is
lower. Applicable taxes and other charges such as shipping costs, duties,
customs, tariffs, imposts and government imposed surcharges shall be stated
separately on Seller's invoice. Payment is made when ATN’s check is mailed.
Payment shall not constitute acceptance. All personal property taxes assessable
upon the Goods prior to receipt by ATN of Goods conforming to the purchase order
shall be borne by Seller. Seller shall invoice ATN for all Goods delivered and
all Services actually performed. Each invoice submitted by Seller must be
provided to ATN within ninety (90) days of completion of the Services or
delivery of Goods and must reference the applicable purchase order, and ATN
reserves the right to return all incorrect invoices. ATN will receive a 2%
discount of the invoiced amount for all invoices that are submitted more than
ninety (90) days after completion of the Services or delivery of the Goods.
Unless otherwise specified on the face of a purchase order, ATN shall pay the
invoiced amount within sixty (60) days after receipt of a correct invoice.
Seller will receive no royalty or other remuneration on the production or
distribution of any products developed by ATN or Seller in connection with or
based on the Goods or Services provided.
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5.1 Services: Seller represents and
warrants that all Services shall be completed in a professional, workmanlike
manner, with the degree of skill and care that is required by current, good and
sound professional procedures. Further, Seller represents and warrants that the
Services shall be completed in accordance with applicable specifications and
shall be correct and appropriate for the purposes contemplated in this
Agreement. Seller represents and warrants that the performance of Services under
this Agreement will not conflict with, or be prohibited in any way by, any other
agreement or statutory restriction to which Seller is bound.
Goods: Seller warrants that all Goods provided will be new and will not
be used or refurbished. Seller warrants that all Goods delivered shall be free
from defects in materials and workmanship and shall conform to all applicable
specifications for a period of fifteen (15) months from the date of delivery to
ATN or for the period provided in Seller's standard warranty covering the Goods,
whichever is longer. Seller hereby agrees that it will make spare parts
available to ATN for a period of five (5) years from the date of shipment at
Sellers then current price, less applicable discounts. Additionally, Goods
purchased shall be subject to all written and oral express warranties made by
Seller's agents, and to all warranties provided for by the California Commercial
Code. All warranties shall be construed as conditions as well as warranties and
shall not be exclusive. Seller shall furnish to ATN Seller's standard warranty
and service guaranty applicable to the Goods. All warranties and Service
guaranties shall run both to ATN and to its customers.
If ATN identifies
a warranty problem with the Goods during the warranty period, ATN will promptly
notify Seller of such problem ATN s and will return the Goods to Seller, at
Seller's expense. Within five (5) business days of receipt of the returned
Goods, Seller shall, at ATN’s option, either repair or replace such Goods, or
credit ATN’s account for the same. Replacement and repaired Goods shall be
warranted for the remainder of the warranty period or six (6) months, whichever
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ATN shall have a reasonable time after receipt of
Goods or Service deliverables and before payment to inspect them for conformity
hereto, and Goods received prior to inspection shall not be deemed accepted
until ATN has run an adequate test to determine whether the Goods conform to the
specifications hereof. Use of a portion of the Goods for the purpose of testing
shall not constitute an acceptance of the Goods. If Goods tendered do not wholly
conform to the provisions hereof, ATN shall have the right to reject such Goods.
Nonconforming Goods will be returned to Seller freight collect and risk of loss
will pass to Seller upon ATN's delivery to the common carrier.
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- INDEPENDENT CONTRACTOR.
ATN is interested only in the results
obtained under this Agreement; the manner and means of achieving the results are
subject to Seller's sole control. Seller is an independent contractor for all
purposes, without express or implied authority to bind ATN by contract or
otherwise. Neither Seller nor its employees, agents or subcontractors ("Seller's
Assistants") are agents or employees of ATN, and therefore are not entitled to
any employee benefits of ATN, including but not limited to, any type of
insurance. Seller shall be responsible for all costs and expenses incident to
performing its obligations under this Agreement and shall provide Seller's own
supplies and equipment.
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RESPONSIBLE FOR TAXES AND RECORDS.
Seller shall be solely
responsible for filing the appropriate federal, state and local tax forms,
including, without limitation, a Schedule C or a Form 1020, and paying all such
taxes or fees, including estimated taxes and employment taxes, due with respect
to Seller's receipt of payment under this Agreement. Seller further agrees to
provide ATN with reasonable assistance in the event of a government audit. ATN
shall have no responsibility to pay or withhold from any payment to Seller under
this Agreement, any federal, state or local taxes or fees. ATN will regularly
report amounts paid to Seller by filing Form 1099-MISC with the Internal Revenue
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Seller shall be solely responsible for maintaining
and requiring Seller's Assistants to maintain such adequate health, auto,
workers' compensation, unemployment compensation, disability, liability, and
other insurance, as is required by law or as is the common practice in Seller's
and Seller's Assistants' trades or businesses, whichever affords greater
coverage. Upon request, Seller shall provide ATN with certificates of insurance
or evidence of coverage before commencing performance under this Agreement.
Seller shall provide adequate coverage for any ATN property under the care,
custody or control of Seller or Seller's Assistants.
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Seller shall indemnify, hold harmless, and at ATN's
request, defend ATN's, its officers, directors, customers, agents and employees,
against all claims, liabilities, damages, losses and expenses, including
attorneys' fees and cost of suit arising out of or in any way connected with the
Goods or Services provided under this Agreement, including, without limitation,
(i) any claim based on the death or bodily injury to any person, destruction or
damage to property, or contamination of the environment and any associated clean
up costs, (ii) Seller failing to satisfy the Internal Revenue Service's
guidelines for an independent contractor, (iii) any claim based on the
negligence, omissions or willful misconduct of Seller or any Seller's
Assistants, and (iv) any claim by a third party against ATN alleging that the
Goods or Services, the results of such Services, or any other products or
processes provided under this Agreement, infringe a patent, copyright,
trademark, trade secret or other proprietary right of a third party, whether
such are provided alone or in combination with other products, software or
processes. Seller shall not settle any such suit or claim without ATN’s prior
written approval. Seller agrees to pay or reimburse all costs that may be
incurred by ATN in enforcing this indemnity, including attorneys'
Should ATN 's use, or use by its distributors, subcontractors or
customers, of any Goods or Services purchased from Seller be enjoined, be
threatened by injunction, or be the subject of any legal proceeding, Seller
shall, at is sole cost and expense, either (a) substitute fully equivalent
non-infringing Goods or Services; (b) modify the Goods or Services so that they
no longer infringe but remain fully equivalent in functionality; (c) obtain for
ATN, its distributors, subcontractors or customers the right to continue using
the Goods or Services; or (d) if none of the foregoing is possible, refund all
amounts paid for the infringing Goods or Services.
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Seller will acquire knowledge of ATN
Confidential Information (as defined below) in connection with its performance
hereunder and agrees to keep such ATN Confidential Information in confidence
during and following termination or expiration of this Agreement. " ATN
Confidential Information" includes but is not limited to all information,
whether written or oral, in any form, including without limitation, information
relating to the research, development, products, methods of manufacture, trade
secrets, business plans, customers, vendors, finances, personnel data, Work
Product (as defined herein) and other material or information considered
proprietary by ATN relating to the current or anticipated business or affairs of
ATN which is disclosed directly or indirectly to Seller. In addition, ATN
Confidential Information means any third party's proprietary or confidential
information disclosed to Seller in the course of providing Services or Goods to
ATN. ATN Confidential Information does not include any information (i) which
Seller lawfully knew without restriction on disclosure before ATN disclosed it
to Seller, (ii) which is now or becomes publicly known through no wrongful act
or failure to act of Seller, (iii) which Seller developed independently without
use of the ATN Confidential Information, as evidenced by appropriate
documentation, or (iv) which is hereafter lawfully furnished to Seller by a
third party as a matter of right and without restriction on disclosure. In
addition, Seller may disclose Confidential Information which is required to be
disclosed pursuant to a requirement of a government agency or law so long as
Seller provides prompt notice to ATN of such requirement prior to
Seller agrees not to copy, alter or directly or indirectly
disclose any ATN Confidential Information. Additionally, Seller agrees to limit
its internal distribution of ATN Confidential Information to Seller's Assistants
who have a need to know, and to take steps to ensure that the dissemination is
so limited, including the execution by Seller's Assistants of nondisclosure
agreements with provisions substantially similar to those set forth herein. In
no event will Seller use less than the degree of care and means that it uses to
protect its own information of like kind, but in any event not less than
reasonable care to prevent the unauthorized use of ATN Confidential
Seller further agrees not to use the ATN Confidential
Information except in the course of performing hereunder and will not use such
ATN Confidential Information for its own benefit or for the benefit of any third
party. The mingling of the ATN Confidential Information with information of
Seller shall not affect the confidential nature or ownership of the same as
stated hereunder. Seller agrees not to design or manufacture any products which
incorporate ATN Confidential Information. All ATN Confidential Information is
and shall remain the property of ATN. Upon ATN’s written request or the
termination of this Agreement, Seller shall return, transfer or assign to ATN
all ATN Confidential Information, including all Work Product, as defined herein,
and all copies thereof.
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- OWNERSHIP OF WORK PRODUCT.
For purposes of this Agreement, "Work
Product" shall include, without limitation, all designs, discoveries, creations,
works, devices, masks, models, work in progress, Service deliverables,
inventions, products, computer programs, procedures, improvements, developments,
drawings, notes, documents, business processes, information and materials made,
conceived or developed by Seller alone or with others which result from or
relate to the Services performed hereunder. Standard Goods manufactured by
Seller and sold to ATN without having been designed, customized or modified for
ATN do not constitute Work Product. All Work Product shall at all times be and
remain the sole and exclusive property of ATN. Seller hereby agrees to
irrevocably assign and transfer to ATN and does hereby assign and transfer to
ATN all of its worldwide right, title and interest in and to the Work Product
including all associated intellectual property rights. ATN will have the sole
right to determine the treatment of any Work Product, including the right to
keep it as trade secret, execute and file patent applications on it, to use and
disclose it without prior patent application, to file registrations for
copyright or trademark in its own name or to follow any other procedure that ATN
deems appropriate. Seller agrees: (a) to disclose promptly in writing to ATN all
Work Product in its possession; (b) to assist ATN in every reasonable way, at
ATN 's expense, to secure, perfect, register, apply for, maintain, and defend
for ATN 's benefit all copyrights, patent rights, mask work rights, trade secret
rights, and all other proprietary rights or statutory protections in and to the
Work Product in ATN 's name as it deems appropriate; and (c) to otherwise treat
all Work Product as ATN Confidential Information as described above. These
obligations to disclose, assist, execute and keep confidential survive the
expiration or termination of this Agreement. All tools and equipment supplied by
ATN to Seller shall remain the sole property of ATN.
Seller will ensure
that Seller's Assistants appropriately waive any and all claims and assign to
ATN any and all rights or any interests in any Work Product or original works
created in connection with this Agreement. Seller irrevocably agrees not to
assert against ATN or its direct or indirect customers, assignees or licensees
any claim of any intellectual property rights of Seller affecting the Work
ATN will not have rights to any works conceived or reduced to
practice by Seller which were developed entirely on Seller's own time without
using equipment, supplies, facilities or trade secret or ATN Confidential
Information, unless (i) such works relate to ATN’s business, or ATN’s actual or
demonstrably anticipated research or development, or (ii) such works result from
any Services performed by Seller for ATN.
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- NONINTERFERENCE WITH BUSINESS.
During and for a period of two years immediately after the termination or expiration of this Agreement, Seller agrees not to unlawfully interfere with the business of ATN in any manner, and further agrees not to solicit or induce any employee or independent contractor to terminate or breach an employment, contractual or other relationship with ATN.
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ATN may terminate this Agreement upon written notice to Seller if Seller fails to perform or otherwise breaches this Agreement, files a petition in bankruptcy, becomes insolvent, or dissolves. In the event of such termination, ATN shall pay Seller for the portion of the Services satisfactorily performed and those conforming Goods delivered to ATN through the date of termination, less appropriate offsets, including any additional costs to be incurred by ATN in completing the Services.
ATN may terminate this Agreement, or any Service(s), for any other reason upon thirty (30) days' written notice to Seller. Seller shall cease to perform Services and/or provide Goods under this Agreement on the date of termination specified in such notice. In the event of such termination, ATN shall be liable to Seller only for those Services satisfactorily performed and those conforming Goods delivered to ATN through the date of termination, less appropriate offsets.
Seller may terminate this Agreement upon written notice to ATN if ATN fails to pay Seller within sixty (60) days after Seller notifies ATN in writing that payment is past due.
Upon the expiration or termination of this Agreement for any reason: (a) each party will be released from all obligations to the other arising after the date of expiration or termination, except for those which by their terms survive such termination or expiration; and (b) Seller will promptly notify ATN of all ATN Confidential Information or any Work Product in Seller's possession and, at the expense of Seller and in accordance with ATN 's instructions, will promptly deliver to ATN all such ATN Confidential Information and/or Work Product.
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If Seller breaches this Agreement, ATN shall have all remedies available by law and at equity. For the purchase of Goods, Seller's sole remedy in the event of breach of this Agreement by ATN shall be the right to recover damages in the amount equal to the difference between market price at the time of breach and the purchase price specified in the Agreement. No alternate method of measuring damages shall apply to this transaction. Seller shall have no right to resell Goods for ATN’s account in the event of wrongful rejection, revocation of acceptance, failure to make payment or repudiation by ATN and any resale so made shall be for the account of Seller.
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- FORCE MAJEURE.
ATN shall not be liable for any failure to perform including failure to (i) accept performance of Services or, (ii) take delivery of the Goods as provided caused by circumstances beyond its control which make such performance commercially impractical including, but not limited to, acts of God, fire, flood, acts of war, government action, accident, labor difficulties or shortage, inability to obtain materials, equipment or transportation. In the event ATN is so excused, either party may terminate the Agreement and ATN shall at its expense and risk, return any Goods received to the place of shipment.
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If any provision of this Agreement shall be deemed to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
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- LIMITATION OF LIABILITY.
IN NO EVENT SHALL ATN BE LIABLE TO SELLER OR SELLER'S ASSISTANTS, OR ANY THIRD PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF, OR IN CONNECTION WITH, THIS AGREEMENT, WHETHER OR NOT ATN WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
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- ASSIGNMENT; WAIVER.
Seller may not assign this Agreement or any of its rights or obligations under this Agreement, without the prior written consent of ATN. Any assignment or transfer without such written consent shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of ATN without restriction. A waiver of any default hereunder or of any term or condition of this Agreement shall not be deemed to be a continuing waiver or a waiver of any other default or any other term or condition.
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- NONEXCLUSIVE AGREEMENT.
This is not an exclusive agreement. ATN is free to engage others to perform Services or provide Goods the same as or similar to Seller's. Seller is free to, and is encouraged to, advertise, offer and provide Seller's Services and/or Goods to others; provided however, that Seller does not breach this Agreement.
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Except for Purchase Orders which may be sent by local mail, facsimile transmission, or electronically transmitted,, all notices, and other communications hereunder shall be in writing, and shall be addressed to Seller or to an authorized ATN representative, and shall be considered given when (a) delivered personally, (b) sent by confirmed telex or facsimile, (c) sent by commercial overnight courier with written verification receipt, or (d) three (3) days after having been sent, postage prepaid, by first class or certified mail.
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- SURVIVAL OF OBLIGATIONS.
Any obligations and duties which by their nature extend beyond the expiration or termination of this Agreement shall survive the expiration or termination of this Agreement.
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- GOVERNING LAW.
This Agreement shall be construed in accordance with, and disputes shall be governed by, the laws of the State of California, excluding its conflict of law rules. The Superior Court of the County of San Mateo or the United States District Court for the Northern District of California shall have jurisdiction and venue over all controversies arising out of, or relating to, this Agreement. The applicability of the UN Convention on Contracts for the International Sale of Goods is hereby expressly waived by the parties and it shall not apply to the terms and conditions of this Agreement.
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- ENTIRE AGREEMENT; MODIFICATION.
This Agreement is the complete, final and exclusive statement of the terms of the agreement between the parties and supersedes any and all other prior and contemporaneous negotiations and agreements, whether oral or written, between them relating to the subject matter hereof. This Agreement may not be varied, modified, altered, or amended except in writing, including a purchase order or a change order issued by ATN, signed by the parties. The terms and conditions of this Agreement shall prevail notwithstanding any variance with the terms and conditions of any acknowledgment or other document submitted by Seller. Notwithstanding the foregoing, this Agreement will not supersede or take the place of any written agreement which is signed by both parties and covers the same subject matter as this Agreement or its related purchase orders.
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- COMPLIANCE WITH LAWS.
25.1 General: Seller shall comply fully with all applicable federal, state and local laws in the performance of this Agreement including, but not limited to, all applicable employment, tax, export control and environmental laws.
25.2 Equal Employment Opportunity: ATN is a government contractor and is subject to the requirements of Executive Order 11246, the Rehabilitation Assistance Act. Pursuant to these requirements, the Equal Opportunity Clauses found at 41 Code of Federal Regulations sections 60-1.4(a) (1-7), 60-250.4(a-m) and 60-741.5 (a) (1-6) are incorporated herein by reference as though set forth at length, and made an express part of this Agreement. If applicable, Seller will comply with the following Federal Acquisition Regulations: (i) 52.222-26 "Equal Opportunity", (ii) 52.222-35 "Affirmative Action for Special Disabled and Vietnam Veterans", (iii) 52.222-36 "Affirmative Action for Handicapped Workers."
25.3 Small Business Plan Requirements: ATN is a government contractor and is subject to the requirements of FAR section 52.219. Pursuant to FAR 52.219.9, if Seller (i) is not considered a Small Business (as the term is defined in section 3 of the Small Business Act) and (ii) is providing Goods or Services under this Agreement in an amount greater than or equal to $500,000, and (iii) is subcontracting a portion of the Goods or Services from a third party, Seller agrees to submit to ATN a Small Business Plan or letter stating that Seller does not have a Small Business Plan and listing the approximate dollar amount to be subcontracted.
25.4 Hazardous Materials: If Goods include hazardous materials, Seller represents and warrants that Seller understands the nature of any hazards associated with the manufacture, handling and transportation of such hazardous materials.
25.5 Customs: Upon ATN’s request, Seller will promptly provide ATN with a statement of origin for all Goods and United States Customs documentation for Goods wholly or partially manufactured outside of the United States.
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- INJUNCTIVE RELIEF.
Seller acknowledges and agrees that the obligations and promises of Seller under this Agreement are of a unique, intellectual nature giving them particular value. Seller's breach of any of the promises contained in this Agreement will result in irreparable and continuing damage to ATN for which there will be no adequate remedy at law and, in the event of such breach, ATN will be entitled to seek injunctive relief, or a decree of specific performance.
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