State of ______________

SUPPLY AGREEMENT
This Supply Agreement (this “Agreement”) is made as of the ______ day of _______________,
20______ (the “Effective Date”) by and between:

Supplier: ________________________ ("Supplier"), located at ________________________________

________________________________________________________________________ [Address] and

Buyer: ________________________ ("Buyer"), located at ____________________________________

___________________________________________________________________________ [Address].

1. Supply of Products. Supplier shall supply to Buyer ________________________________________

_______________________________________________________________________ (the “Products”)
in accordance with the following specifications (the "SOW"): ____________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
___________________________________________________________________________________.

Buyer will make all reasonable efforts to provide clear instructions, documentation, and product
specifications to Supplier. Supplier must supply the Products in accordance with this Agreement, in
compliance with applicable laws and regulation, and using generally accepted industry practice.

Additional Orders (Check one)

☐ Buyer may submit additional orders under this Agreement. Buyer shall submit orders for the Products
by submitting a purchase order to Supplier (the "Purchase Order") detailing the number of units of the
Products to be supplied.
☐ Buyer may NOT submit additional orders under this Agreement.

2. Payment.

(Fill out if Additional Orders are accepted)

Supplier will be paid $_____________ per unit for the number of units specified in each Purchase Order.
Payment shall be made: (Check one)

☐ After submitting a Purchase Order. Payments shall be made within __________ days from
the date of each Purchase Order.
☐ After delivery of the Products. Payments shall be made within __________ days from the
date the Products are delivered.
 ☐ According to the SOW. Supplier will be paid accordance to the agreed upon fee schedule
included in the SOW.

(Fill out if Additional Orders are NOT accepted)

Supplier will be paid $_____________ under this Agreement. Payment will be made: (Check one)

☐ After executing the Agreement. Payment will be made within __________ days from the
date of this Agreement.
☐ After delivery of the Products. Payment will be made within __________ days from the
date the Products are delivered.
☐ After receiving an invoice. Payment will be made within __________ days from receiving
an invoice from Supplier.
☐ According to the SOW. Supplier and Buyer will agree to a fee schedule included in the
SOW.

Additional Payment Terms: _____________________________________________________________

____________________________________________________________________________________
____________________________________________________________________________________

3. Late Payments. Supplier will be entitled to charge interest of __________% on any unpaid balance
more than __________ days past due.

4. Discount. (Check one)

☐ If payment is made at least __________ days before the due date, Buyer will be entitled to a discount
of __________% off the total amount due.
☐ Not applicable.

5. Shipments. The Products will be delivered by Supplier to Buyer: (Check one)

☐ On or before ____________________, 20______ at the following address: ____________________

____________________________________________________________________________________
☐ In accordance with the terms of each Purchase Order
☐ In accordance with the agreed upon terms and delivery schedule in the SOW

The Products will be suitably packaged in accordance with the SOW. ☐ Supplier ☐ Buyer will pay for all
freight, insurance and other shipping expenses. Supplier will use commercially reasonable efforts to
deliver the Products on the agreed-upon delivery dates and notify Buyer of any anticipated delays.
Risk of Loss (Check one)
☐ Title and risk of loss will pass to Buyer upon delivery of the Products.
☐ Title and risk of loss will pass to Buyer upon shipment of the Products.

6. Product Acceptance. The Products delivered by Supplier will be inspected and tested by Buyer within
__________ days of delivery. If the Products delivered do not comply with the specifications in the SOW
( ☐ and Purchase Order), Buyer has the right to reject the non-conforming Products. Products not
rejected within __________ days of delivery will be deemed to be accepted by Buyer. In the event any
Products do not comply with the specifications in the SOW and are rejected by Buyer, Buyer may, at its
option: (Check all that apply)

☐ Return for a replacement

☐ Return for a credit
☐ Return for a refund
☐ Other: _________________________________________

7. Warranties. Supplier warrants that it will perform the SOW in a good, professional and workmanlike
manner, and Supplier will promptly notify Buyer of any delay or defect in the supply of the Products.
Supplier warrants that the Products will be supplied in compliance with the specifications in the SOW and
in compliance with all governmental and environmental regulations.

Substantive Defects (Check one)

☐ Supplier warrants that the Products will be free from substantive defects in workmanship for a period
of __________ (Check one) ☐ days ☐ months ☐ years from the date of shipment. The warranty
does not apply to any Products that are damaged due to the misuse, abuse, alteration or negligence of
any party other than Supplier. SUPPLIER MAKES NO OTHER REPRESENTATIONS OR WARRANTIES,
WHETHER EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
☐ There is NO warranty for substantive defects. SUPPLIER MAKES NO REPRESENTATIONS OR
WARRANTIES, WHETHER EXPRESS OR IMPLIED, AND EXPRESSLY DISCLAIMS ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

8. Term. This Agreement commences on the Effective Date and will remain in effect for __________
years. This Agreement will: (Check one)

☐ Terminate, unless the parties have mutually agreed in writing to renew it for an additional term.
☐ Renew automatically for a term of __________ year(s), unless either party has given at least
__________ days written notice not to renew to the other party.

9. Termination. Buyer and Supplier may at any time by mutual consent decide to terminate this
Agreement pursuant to written and delivered notice to the other party. Buyer may terminate Supplier's
rights to supply the Products for any reason on __________ days’ written notice of termination. Supplier
retains the right at any time to terminate its obligations to supply the Products on __________ days’
written notice of termination. This Agreement also may be terminated automatically, without notice, (i)
upon the institution by or against Buyer or Supplier of any insolvency, receivership or bankruptcy
proceedings or any other proceedings for the settlement of debts, (ii) upon Buyer or Supplier's making an
assignment for the benefit of creditors, or (iii) upon Buyer or Supplier's dissolution.

10. Default. If either party should fail to perform its respective obligations under the terms of this
Agreement, the other party will notify of the party that it is presumed to be in default and give reasonable
recourse to cure the stated issue. The defaulting party will have the opportunity to cure the default within
__________ days of notice by the other party. In the event of a failure to cure a breach or default within
the stipulated time, the other parties will have the right to terminate this Agreement immediately.

11. Effect of Termination. Upon the termination of this Agreement, the rights granted to Supplier
pursuant to this Agreement will automatically terminate. All payments owing from Buyer to Supplier, or
refunds due from Supplier, will become immediately due and payable, and legally enforceable, upon
termination. Supplier will not make or retain any copies or samples of any confidential items or information
which may have been entrusted to it.

12. Confidentiality. In the course of supplying the Products, each party may be exposed to confidential
and proprietary information of the other party, including designs, drawings, materials, manufacturing
specifications, trade secrets, business and financial information and other confidential information (the
“Confidential Information). During the term of this Agreement, each party will refrain from disclosing any
Confidential Information of the other party, except for the strict purposes or activities specifically
authorized in this Agreement or if required by law. Each party will use all reasonable efforts to maintain
the privacy of the Confidential Information in its possession or control.

13. Insurance. Buyer and Supplier agree to maintain appropriate insurance to adequately cover their
respective risks under this Agreement, with coverage amounts commensurate with levels in their
respective markets.

14. Limitation of Liability. In no event will either party be liable for costs, expenses, or damages in
connection with this Agreement in excess of actual costs, expenses, damages, or provable and actual
lost revenue.

15. Force Majeure. Neither party will be liable for the costs or expenses arising from any failure or delay
in the performance of this Agreement that is due and attributable to causes beyond the control of either
party, including but not limited to acts of God, weather, war, civil unrest, strikes, lockouts, destruction of
production facilities, riots, insurrection, terrorist attacks, government regulatory actions, acts or decrees of
governmental or military bodies, fire, casualty, flood, earthquake, or any other force majeure event,
provided that the party has used commercially reasonable efforts to mitigate the effects of the cause.
Supplier will not be liable for any delays in the normal production or interruption in the workflow process
caused by changes to the specifications by.

16. Amendments. This Agreement may not be modified or amended except by a written agreement
signed by all of the parties.

17. Notices. Any notice or communication under this Agreement must be in writing and sent via personal
delivery, overnight courier service, or certified or registered mail, postage prepaid, return receipt
requested and addressed to the to the address stated above or to another address as that party may
subsequently designate by notice and shall be deemed given on the date of delivery.

18. No Waiver. No party shall be deemed to have waived any provision of this Agreement or the exercise
of any rights held under this Agreement unless such waiver is made expressly and in writing. Waiver by
any party of a breach or violation of any provision of this Agreement shall not constitute a waiver of any
other subsequent breach or violation.

19. Assignment. The parties agree that their rights and obligations under this Agreement may not be
transferred or assigned without the prior written consent of Buyer. Buyer may assign its rights and
obligations under this Agreement without Supplier's consent.

20. Successors and Assigns. This Agreement shall be binding and inure to the benefit of the parties
and their respective legal representatives, heirs, administrators, executors, successors and permitted
assigns.

21. Governing Law. This Agreement and the rights and obligations of the parties hereto shall be
governed by and construed in accordance with the laws of the State of _________________, without
regard to its conflicts of laws provisions.

22. Disputes. Any dispute arising from this Agreement shall be resolved through: (Check one)

☐ Court litigation. Disputes shall be resolved in the courts of the State of ______________.
(Check if applicable)
☐ If either party brings legal action to enforce its rights under this Agreement, the prevailing
party will be entitled to recover from the other party its expenses (including reasonable attorneys’
fees and costs) incurred in connection with the action and any appeal.

☐ Binding arbitration. Binding arbitration shall be conducted in accordance with the rules of the American
Arbitration Association.

☐ Mediation.
☐ Mediation, then binding arbitration. If the dispute cannot be resolved through mediation, then the
dispute will be resolved through binding arbitration conducted in accordance with the rules of the
American Arbitration Association.

23. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable in whole
or in part, the remaining provisions shall not be affected and shall continue to be valid, legal and
enforceable as though the invalid, illegal or unenforceable part had not been included in this Agreement.

24. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together, shall constitute one and the same document.

25. Headings. The section headings herein are for reference purposes only and shall not otherwise affect
the meaning, construction or interpretation of any provision of this Agreement.

26. Entire Agreement. This Agreement contains the entire agreement between the parties hereto with
respect to the subject matter hereof, and supersedes all prior negotiations, understandings and
agreements.

27. Miscellaneous. ___________________________________________________________________

____________________________________________________________________________________
____________________________________________________________________________________

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

Buyer Signature Buyer Full Name

Supplier Signature Supplier Full Name