Purchase Order Terms and Conditions

NOTE: Buyer used here and after is Electronic Systems, Inc.

Buyer reserves the right to cancel all or any part of this Purchase Order at any time without liability. If any item on this Purchase Order is custom fabricated, Buyer reserves the right to cancel all or any part of the order that has not been manufactured. If the Seller considers any item on this Purchase Order non-cancelable, non-returnable, Seller shall provide written notice to Buyer at the time the order is placed and confirmed.

If Seller fails to make any confirmed delivery date or schedule or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this Purchase Order, Buyer reserves the right to cancel this Purchase Order without liability.

Drawings, designs, data, specifications, and technical information supplied to Seller by Buyer or Buyer’s customer’s shall remain the Buyer or Buyer’s customer’s property and shall be held in confidence by Seller. Such information shall not be reproduced, used or disclosed to others by Seller without Buyer’s or Buyer’s customer’s prior written consent.

Buyer shall have the right at any time to make changes in the drawings, specifications, delivery schedules, and method of shipment or packaging of any item on this Purchase Order. No change shall be effective unless authorized in writing by Buyer. If such change results in delivery delays or causes a change in the selling price, Seller shall notify Buyer in writing immediately and negotiate an equitable adjustment.

This Purchase Order shall not be assigned to or subcontracted with another party by Seller for furnishing of any of the completed items or services without prior written consent from Buyer.

Seller warrants the items described herein shall be free from defects in workmanship and materials and shall strictly conform to applicable specifications, drawings and approved artwork or samples.

Seller shall permit Buyer’s or third party inspectors to have access to Seller’s facilities at all reasonable hours for the purpose of inspecting any items covered by this Purchase Order or work in process for production of said items. In addition, Seller shall make available to the Buyer copies of all drawings, specifications and process, preservation and packaging data applicable to the items on the Purchase Order. All items will be subject to inspection and acceptance at Buyer’s facility. Buyer may, at its option, hold any rejected item for Seller’s disposition instructions or return to Seller at Seller’s expense for replacement or credit at Buyer’s option.

Seller shall reference the Buyer’s purchase order number, Buyer part number, manufacturer and manufacturer part number and description on all documentation related to this Purchase Order including but not limited to the acknowledgement, packing slip and invoice.

PRI-07.4-08 REVISION MARCH 15,2007