1. Quotation A quotation not accepted within thirty (30) days is subject to review. All prices are based on time and material costs at the time of quotation.

2. Orders Orders regularly placed, verbal or written, cannot be cancelled except upon terms that will compensate printer against costs incurred in production of that order.

3. Experimental Work Experimental or preliminary work performed at the customer's request will be charged for at current rates and may not be used in any way until the printer has been reimbursed in full for the amount of the charges billed.

4. Creative Work Creative work, such as sketches, copy, dummies, and all preparatory work developed and furnished by the printer, shall remain his exclusive property and no use of same shall be made, nor any ideas obtained therefrom be used, except upon compensation to be determined by the printer, and not expressly identified and included in the selling price.

5. Condition of Copy Upon receipt of original copy, artwork, computer files, negatives, plates or other furnished material, should it be evident that the condition of these materials differs from that which had been originally described and consequently quoted, the original quotation shall be rendered void and a new quotation issued.

6. Preparatory Materials Art, type, computer files, negatives, positives, flats, plates, and other preparatory items when supplied by the printer, shall remain his exclusive property unless otherwise agreed in writing.

7. Alterations Alterations represent work performed in addition to the original specifications. Such additional work shall be charged at current rates and be supported with documentation upon request.

8. Prepress Proofs Prepress proofs shall be submitted to customer for review. Corrections are to be made on "master set," returned marked "O.K. as is," or "O.K. with noted changes," or "Not O.K.: Make changes and show new proofs" and signed by customer. No further proofs will be shown unless by prior agreement unless marked "Not O.K.: Make changes and show new proofs". Printer cannot be held responsible for errors under any or all of the following conditions: If the work is printed per customer's O.K.; if changes are communicated verbally; if the customer has failed to return proofs with indication of changes; or if customer has instructed printer to proceed without submission of proofs.

9. Press Proofs Press proofs will not be shown without specific prior agreement between printer and customer. Unless specifically provided in printer's quotation, press proofs will be charged for at current rates. An inspection sheet of any form can be submitted for customer approval, at no charge, provided customer is available at the press during the time of makeready. Lost press time due to customer delay, or customer changes and corrections, will be charged at current rates.

10. Color Proofing Because of differences in equipment, processing, proofing substrates, paper, inks, pigments, and other conditions between color proofing and production pressroom operations, a reasonable variation in color between color proofs and the completed job shall constitute acceptable delivery.

11. Over Runs and Under Runs Over runs or under runs not to exceed 10% on quantities ordered, or the percentage agreed upon, shall constitute acceptable delivery. Printer will bill for actual quantity delivered within this tolerance. If customer requires guaranteed exact quantities, the percentage tolerance for over runs must be doubled.

12. Customer's Property The printer will maintain fire,extended coverage, vandalism, malicious mischief, and other necessary insurance on all property belonging to the customer, while such property is in the printer's possession; printer's liability for such property shall not exceed the amount recoverable from such insurance. Customer's property of extraordinary value shall be insured through mutual agreement.

13. Delivery Unless otherwise specified, the price quoted is for single shipment, without storage, F.O.B. local customer's place of business or F.O.B. printer's platform for out of town customers. Proposals are based on continuous and uninterrupted delivery of complete order, unless specifications distinctly state otherwise. Charges related to delivery for customer to printer, or from customer's supplier to printer, are not included in any quotations unless specified. Special priority pickup or delivery service will be provided at current rates upon customer's request. Materials delivered from customer or his suppliers are verified with delivery ticket as to cartons, packages or items shown only. The accuracy of quantities indicated on such tickets cannot be verified and printer cannot accept liability for shortage based on supplier's tickets. Title for finished work shall pass to the customer upon delivery to carrier at shipping point or upon mailing of invoices for finished work, whichever occurs first.

14. Production Schedules Production schedules will be established and adhered-to by customer and printer, provided that neither shall incur any liability or penalty for delays due to state of war, riot, civil disorder, fire, labor trouble, strikes, accidents, energy failure, equipment breakdown,

delays of suppliers or carriers, action of Government or civil authority and acts of God or other causes beyond the control of customer or printer. Where production schedules are not adhered to by the customer, final delivery date(s) will be subject to renegotiation.

15. Customer Furnished Materials Paper stock, inks, camera copy, film, color separations, computer files and media, and other customer-furnished material shall be manufactured, packed, and delivered to printer's specifications. Additional cost due to delays or impaired production caused by specification deficiencies shall be charged to customers.

16. Terms Payments shall be whatever was set forth in the quotation or invoice unless otherwise provided in writing. Claims for defects, damages or shortages must be made by customer in writing within a period of fifteen (15) days after delivery of all or any part of the order. Failure to make such claim within the stated period shall constitute irrevocable acceptance and an admission that they fully comply with terms, conditions, and specifications.

17. Liability Printer's liability shall be limited to stated selling price of any defective goods, and shall in no event include special or consequential damages, including profits (or profits lost). Work produced by the printer shall remain his property until paid for. As security for payment of any sum due, printer shall have the right, if necessary, to retain possession of and shall have a lien on all customer property in printer's possession including work in process and finished work. The extension of credit or the acceptance of notes, trade acceptance or guarantee of payment shall not affect such security interest and lien.

18. Indemnification The customer shall indemnify and hold harmless the printer from any and all loss, cost, expense, and damages (including court costs and reasonable attorney fees) on account of any and all manner of claims, demands, actions, and proceedings that may be instituted against the printer on grounds alleging that the said printing violates any copyrights or any proprietary right of any person, or that it contains any matter that is libelous or obscene or scandalous, or invades any person's right to privacy or other personal rights, except to the extent that the printer contributed to the matter. The customer agrees, at the customer's own expense, to promptly defend and continue the defense of any such claim, demand, action or proceeding that may be brought against the printer, provided that the printer shall promptly notify the customer with respect thereto, and provided further that the printer shall give to the customer such reasonable time as the exigencies of the situation may permit in which to undertake and continue the defense thereof.

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