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Disclaimer

PAYMENT TERMS IF CREDIT IS EXTENDED

This Agreement is a contract between you (the “Applicant”) and Plastek Cards, Inc. (“Plastek”).

Whereas Plastek is contemplating the extension of credit in the form of goods to Applicant;

Whereas, if Plastek decides to extend the credit to Applicant, Applicant agrees as follows:

1.         Exemption from Sales Tax.  Applicant does/does not possess a current Certificate of Exemption / Resale Certificate (“Tax Exemption Document”) If Applicant does possess the Tax Exemption Document, Applicant hereby attaches it as Exhibit “A”. In the event the Applicant does not provide a Tax Exemption Document along with this Credit Application, Applicant shall assume any and all tax liabilities assessed by local, state or federal government for Applicant’s order.

2.         Payment Due Date.  Applicant’s payment for its order shall be either NET 10 or 30 days from the invoice date, to be determined more specifically by the specific invoice issued.  Finance Charges of 2% per month on outstanding invoices over 30 days from invoice date will be assessed.

3.         Late Payments.  Applicant’s failure to make timely payments shall be considered a material breach of this Agreement.  In the event of Applicant’s breach, Applicant shall pay all costs of collection, including attorney fees and court costs.  Any action to enforce this agreement may be brought in any court of competent jurisdiction in Los Angeles County, California.  Plastek reserves the right to withhold the fulfilling of Applicant’s orders in the event Applicant’s account is delinquent.

4.         Returned Checks.  Returned checks will result in a $35.00 surcharge. Interest will continue to accrue on any unpaid balance while payment is being recovered.

5.         Sales Quotations Not Binding.  Applicant acknowledges that all sales quotations by Plastek are subject to change after review of credit application by Plastek.

6.         Refunds.  Refunds are not available after production has commenced. Design and set up fees are non refundable.

7.         Cancellation of Production.  Product cancellations available within one day after production commences.  Cancellations shall result in a $45.00 plate and film fee.

8.         Returns.  Returns are not accepted without prior written authorization from Plastek and must be accompanied by a Return Materials Authorization (RMA) number. Claims must be made within 10 days of receipt of the goods.

9.         Risk of Loss.   Risk of loss for any merchandise Applicant orders from Plastek transfers to Applicant upon Plastek’s delivery of such merchandise to the carrier.  Cost to replace any lost or damaged goods as a result of the carrier’s mishandling shall be born by Applicant.  Despite any such loss or damage, Applicant shall be liable for payment on the order resulting in the lost or damaged merchandise.  Any claims for lost or damaged goods shall be made by Applicant directly to the carrier.  All shipments are insured.

10.       IndemnificationApplicant shall defend, indemnify and hold harmless Plastek, its affiliates, and its officers, directors, employees, and agents from any loss, damage, liability, claim, demand or cost (including reasonable attorneys’ fees) made or incurred by any third party due to or arising out this Agreement.

11.       Limited Liability.  IN NO EVENT SHALL PLASTEK’S LIABILITY ARISING OUT OF THIS AGREEMENT EXCEED THE FEES PAID TO PLASTEK DURING THE 12 MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT THAT GAVE RISE TO THE CLAIM FOR DAMAGES. IN NO EVENT SHALL PLASTEK BE RESPONSIBLE TO APPLICANT FOR ANY LOST OPPORTUNITY OR PROFITS, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES ARISING OUT OF THIS AGREEMENT, UNDER ANY CAUSE OF ACTION OR THEORY OF LIABILITY (INCLUDING NEGLIGENCE), AND WHETHER OR NOT PLASTK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THESE LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. The limitations set forth above shall be enforceable to the maximum extent allowed by applicable law.

12.       Force Majeure.  Plastek shall not be responsible for any failure to perform its obligations under this Agreement if such failure is caused by acts of God, war, strikes, revolutions, lack or failure of transportation facilities, laws or governmental regulations or other causes that are beyond its reasonable control.

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Plastek Cards ASI Number: 78307