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PRICE: KFM International Industries, Inc. reserves the right to change any price due to the fluctution of the raw material, currency exchange rate and duties. KFM International Industries, Inc. will provide a written or electronic notification to the Buyer of such changes.

OPEN ACCOUNT TERMS: To establish an open account with KFM International Industries, Inc., KFM will supply a credit application that must be completed, signed and returned by Buyer for approval. KFM reserves the right to cancel any open credit due to slow payment or non-payment.

PAYMENT TERMS: Net 30 days from date of Invoice for all the open account Buyer. 1.5% per month interest charged on any past due invoice. A $30 per each returned check. If the Buyer in breach of the payment terms, KFM International Industries, Inc reserves the rights to terminate its agreement. If it is necessary to refer the account to a collection agency or attorney for legal action, the Buyer shall pay all the subsequent charges, including but not limited to recovery of attorney fees, court costs and fees and collections cost.

PURCHASE ORDERS: All purchase orders are subject to acceptance by KFM International Industries, Inc. Orders may not be cancelled or rescheduled without KFM's consent. All Purchase Order must specify the current Prints Revision and that the prints be signed by a company official to insure the current revision. Any changes to the approved drawings requested after acceptance of the Purchase Orders by KFM are subject to additional charges. The Tooling Charges are non-refundable, 50% percent of deposit is due with the orders, balance due upon approval of the First Article/Samples. The Purchase Order(s) is/are irrevocable.

CLAIMS: All claims for defective or damaged goods must be received no later than 15 days from the date of delivery to the destination specified by Buyer. Any Claims after the 15 days is voided. Buyer's notice must specify the nature and grounds of the rejection in reasonable detail. KFM International Industries, Inc. reserves the right to inspect any such damaged goods prior to approving any claim. All approved claims will be replaced or credited against future order. All re-work claims must be approved by KFM, before re-work is start.

CHANGES TO PURCHASE ORDERS: Buyer shall have the right to make changes in the Purchase Orders by written notice to KFM International Industries, Inc. within five working days after the purchasing order was issued. KFM agrees to comply with such changes, if such changes cause a material increase or time of performance of this purchase Order, KFM shall notify Buyer immediately of the adjustment. Termination requests of any Purchase Orders should be submitted in writing only within three days after the purchase orders has issued. A Cancellation Charge will apply. Buyer shall to pay all the Production Cost and Material Cost for any of cancel purchase orders.

WARRANTY: KFM International Industries, Inc. warrants that the products to be free from the defects in material and workmanship and shall confirm to the buyer specifications as approved of first article. Warranty does not apply to products improperly installed, misused, improperly maintained. All warranties shall extend for 6 months from shipment.

LIABILITY: KFM International Industries, Inc. obligation for any of its products which may prove to be defective, shall issue credit for or to replace the defective products. Total liability of KFM International Industries Inc. shall not exceed the purchase price. No allowance shall be made for any labor, charges of buyer for replacement of products, downtime, or loss of profits or penalties arising from the use of, or inability to use KFM products. KFM International Industries, Inc. not be liable for incidental, consequential or punitive damages under any warranty, express or implied, or otherwise and all such liability is express excluded.

FORCE MAJEURE: KFM International Industries Inc. shall not be liable for any delay in or failure of performance hereunder due to any contingency beyond its reasonable control, including without limitation: an act of God; war; civil commotion; sabotage; labor dispute, explosion; fire; accident; power or equipment failure; inability to obtain suitable or sufficient labor, fuel, power, or material; delay of carrier; embargo; or any law, ordinance, rule, or regulation, whether valid or invalid, including but not limited to priority, requisition, allocation, or price control.

GOVERNING LAWS: This Agreement shall be construed in accordance with the laws of the jurisdiction of the State of California.

ACCEPTANCE OF TERMS & CONDITIONS: Placement of Purchase Orders with KFM International Industries, Inc. will be deemed constitute acceptance of all Terms & Conditions contained here-in Before. No modification of the Contract or waiver or addition to any of KFM’s terms and conditions unless made in writing and signed by both parties. Disputes Regarding KFM Products shall be governed by state of California law.