UNITED STATES INCLUDING AFFILIATES AND JOINT VENTURES (MARCH 8, 2016 APRIL 6, 2016)

UNITED STATES INCLUDING AFFILIATES AND JOINT VENTURES (MARCH 8, 2016 APRIL 6, 2016)
TERMS AND CONDITIONS OF PURCHASE – UNITED STATES
(AUTOMOTIVE EXPERIENCE)
Last revised March 8, 2016
These Terms apply when referenced by Buyer’s purchase order or other documentation.
1.
Offer; Acceptance; Exclusive Terms; Identity of Buyer. Each purchase order or purchase order
revision issued by Buyer (“Order”) is an offer to the seller identified on the Order (the “Seller”) for the
purchase of goods and/or services (collectively, “Supplies”) and includes and is governed by these Terms
and Conditions of Purchase (“Terms”). When accepted, the Order supersedes all prior agreements,
purchase orders, quotations, proposals and other communications regarding the Supplies covered by the
Order, except that a prior agreement signed by an authorized representative of Buyer (an “Agreement”,
such as an award letter, Approved Supplier Agreement, Statement of Work or Non-Disclosure Agreement
(but not prior purchase orders for the same parts and vehicle program)) will continue to apply. Seller
accepts the Order, including these Terms, and forms a contract by doing any of the following: (a)
commencing any work under the Order; (b) accepting the Order in writing; or (c) any other conduct that
recognizes the existence of a contract with respect to the subject matter of the Order. The Order is limited
to and conditional upon Seller’s acceptance of these Terms exclusively. The Order does not constitute
an acceptance of any offer or proposal made by Seller. Any reference in the Order to any offer or proposal
made by Seller is solely to incorporate the description or specifications of Supplies in the prior proposal,
but only to the extent that the description or specifications do not conflict with the description and
specifications in the Order. Any additional or different terms proposed by Seller, whether in Seller’s
quotation, acknowledgement, invoice or otherwise, are unacceptable to Buyer, are expressly rejected by
Buyer, and will not become part of the Order , but shall not operate as a rejection of this Order if Seller
accepts Buyer’s offer by commencement of work, shipment of the Supplies, or by other means acceptable
to Buyer, in which case this Order shall be deemed accepted by Seller without any additional or different
terms or variations whatsoever. Any modification of these Terms must be expressly stated in the Order.
Each Order can be modified only under Section 38. “Buyer” is the subsidiary, affiliate or joint venture (or
the affiliate of a Johnson Controls, Inc. joint venture) of Johnson Controls, Inc. identified in the Order; if no
such entity is identified, the Buyer is Johnson Controls, Inc. If Buyer is not Johnson Controls, Inc., Seller
acknowledges that Johnson Controls, Inc. is performing purchasing functions on behalf of Buyer solely as
agent for Buyer, and further acknowledges and agrees that Seller’s sole recourse under the Order shall be
against
Buyer,
and
not
Johnson
Controls,
Inc.
The
Terms
are
available
at
http://www.johnsoncontrols.com/ae-terms. In the event of a conflict, a mutually-signed agreement shall
take precedence over a Statement of Work, the Statement of Work will take precedence over the Order, and
the Order shall take precedence over these Terms.
2.
Time Period of Order. Subject to Buyer’s termination rights, the agreement formed by the Order is
binding on the parties for the length of the applicable Original Equipment Manufacturer (“OEM”) vehicle
program production life (including model refreshes as determined by the applicable OEM customer), and
both Buyer and Seller acknowledge the risk of the vehicle program production life being cancelled or
extended by the OEM. If the Supplies are not utilized by Buyer for the production of automotive parts or
systems, the agreement formed by the Order will be binding for one year from the date the Order is
transmitted to Seller. In such case, subject to Buyer’s termination rights, the Order will automatically renew
for successive one-year periods after the initial term unless Seller provides written notice at least 180 days
prior to the end of the current term of its desire that the Order not be renewed. Notwithstanding the
foregoing, if an expiration date is stated in the Order or an Agreement, the term of the Order will continue
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 1
until that date. Unless specifically waived in writing by an authorized representative of Buyer, Seller’s
obligations with respect to service and replacement parts will survive the termination or expiration of the
Order as set forth below.
3.
Quantity; Material Releases; Delivery. (a) Quantities listed in each Order as estimated are Buyer’s
best estimate of the quantities of Supplies it might purchase from Seller for the contract term specified in
the Order. Any estimates or forecasts of production volumes or program durations, whether from Buyer or
Customers (defined in Section 15 below), are subject to change from time to time, with or without notice to
Seller, and shall not be binding upon Buyer. Unless otherwise expressly stated in the Order, Buyer makes
no representation, warranty, guaranty or commitment of any kind or nature, whether express or implied, to
Seller in respect of Buyer’s quantitative requirements for the Supplies or the term of supply of the Supplies.
(b) Unless otherwise expressly stated in the Order or an Agreement, if no other quantity is stated on the
face of the Order or if the quantity is blank or states the quantity as zero, “blanket,” “see release,” “as
scheduled,” “as directed,” “subject to Buyer’s production releases” or similar terms, then Seller will supply
Buyer’s requirements for Supplies in such quantities as identified by Buyer as firm orders in material
authorization releases, manifests, broadcasts or similar releases (“Material Releases”) that are transmitted
to Seller during the term of the Order, and Seller will supply all such Supplies on such dates and times, at
the price and on the other terms specified in the Order. If the Order covers services, Buyer is required to
purchase such services to the extent expressly stated in a Statement of Work signed by Buyer. If “price” is
stated as 1.000 on an Order covering installment performance of a fixed total quantity, then quantity is 1
and the number shown under “quantity” is the price. Buyer may require Seller to participate in electronic
data interchange or a similar inventory management program, at Seller’s expense, for notification of
Material Releases, shipping confirmation and other information. Material Releases are part of the Order,
are governed by these Terms and are not independent contracts. Seller accepts the risk associated with lead
times of various raw materials and/or components if they are beyond those provided in Material Releases.
(c) Time and quantities are of the essence under the Order. Seller agrees to 100% on-time delivery of the
quantities and at the times specified by Buyer, as stated in the Order and related Material Releases. Buyer
may change the rate of scheduled shipments or direct temporary suspension of scheduled shipments, neither
of which entitles Seller to modify the price for Supplies. Buyer is not obligated to accept early deliveries,
late deliveries, partial deliveries or excess deliveries. Unless otherwise agreed in writing by Buyer, the risk
of loss passes from Seller to Buyer upon delivery to Buyer’s transportation carrier (or if shipment is by
Seller or common carrier, then upon delivery to Buyer’s designated facility), but title passes to Buyer only
upon acceptance by Buyer at Buyer’s facility where the Supplies are to be used. (d) To assure the timely
delivery of Supplies, Seller will, upon written request from Buyer, manufacture Supplies in excess of
Buyer’s current Orders to serve as a reserve for shipment, at such inventory reserve level as may be set by
Buyer from time to time, to meet Buyer’s requirements and to meet any unforeseen delays due to any
reason whatsoever. Until such reserve Supplies are purchased by Buyer from Seller, they shall remain the
property of Seller, and shall be held by Seller at its sole risk and expense.
4.
Invoicing and Pricing; Freight. (a) Except as expressly stated on the Order, the price of Supplies
stated on the Order is complete and includes storage, handling, packaging and all other expenses and
charges of Seller, and no surcharges, premiums or other additional charges of any type shall be added
without Buyer’s express written consent. Incoterms 2000 will apply to all shipments except those entirely
within the USA. Except as otherwise stated in the Order or an Agreement, Supplies will be shipped FCA
(loaded) at Seller’s final production location, using Buyer’s transportation. Prices are not subject to
increase, unless specifically stated in the Order or an Agreement, and Seller assumes the risk of any event
or cause affecting prices, including without limitation, foreign exchange rates, increases in raw material
costs, inflation, increases in labor and other production and supply costs, and any other event which
impacts the price or availability of materials or supplies. (b) All invoices for the Supplies must reference
the Order number, amendment or release number, Buyer’s part number, Seller’s part number where
applicable, quantity of pieces in the shipment, number of cartons or containers in the shipment, bill of
lading number, currency and other information required by Buyer. No invoice may reference any term
separate from or different than these Terms or the terms that appear on the face of the Order. Buyer
reserves the right to return all invoices or related documents submitted incorrectly. (c) Buyer will pay
proper invoices complying with all of the terms of the Order, subject to adjustments, set-offs, discrepancies
and other unresolved issues. (d) The total price includes all duties and taxes except for any governmentally
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 2
imposed value added tax (VAT) imposed by a non-USA jurisdiction, which must be shown separately on
Seller’s invoice for each shipment. Buyer is not responsible for any business activity taxes, payroll taxes or
taxes on Seller’s income or assets. Seller will pay all premium freight costs over normal freight costs if
Seller needs to use an expedited shipping method to meet agreed delivery dates due to its own acts or
omissions. Seller will pay any costs incurred by Buyer, including costs charged by Customer(s) to Buyer,
as a result of Seller’s failure to comply with shipping or delivery requirements. (e) Seller represents and
warrants that the prices are, and will remain, no less favorable to Buyer than any price which Seller
presently, or in the future, offers to any other customer for the same or substantially similar goods and/or
services for substantially similar quantities. If Seller offers a lower price for the same or substantially
similar goods and/or services to any other customer during the term of the Order, then Seller will
immediately offer Buyer the same price as offered to Seller’s other customer. (f) Seller represents and
warrants to Buyer that Seller will fully disclose to Buyer, and give Buyer the full and sole benefit of (unless
otherwise agreed in writing by an authorized representative of Buyer), any and all discounts, refunds,
rebates, credits, allowances or other financial or related incentives or payments of any kind to be provided
or agreed to be provided by Seller (or any affiliate thereof) to any Customer (or any affiliate of such
Customer) and relating in any way to, and/or based on or determined, in whole or in part, with reference to
Buyer’s purchases of Supplies from Seller under the Order.
5.
Packaging; Marking; Shipping; Disclosure; Special Warnings or Instructions. (a) Seller will: (i)
properly pack, mark, and ship Supplies according to the requirements of Buyer, the involved carriers and
the country of destination; (ii) route the shipments according to Buyer’s instructions; (iii) label or tag each
package according to Buyer’s instructions; (iv) provide papers with each shipment showing the Order
number, amendment or release number, Buyer’s part number, Seller’s part number (where applicable),
number of pieces in the shipment, number of containers in the shipment, Seller’s name and number, and the
bill of lading number; and (v) promptly forward the original bill of lading or other shipment receipt for
each shipment according to Buyer’s instructions and carrier requirements. (b) Seller will promptly provide
Buyer with the following information in the form requested by Buyer: (i) a list of all ingredients and
materials in Supplies; (ii) the amount of all ingredients, and (iii) information concerning any changes in or
additions to the ingredients. Before and at the time Supplies are shipped, Seller will give Buyer sufficient
warning in writing (including appropriate labels on all Supplies, containers, and packing, including without
limitation disposal and recycling instructions, material safety data sheets and certificates of analysis) of any
hazardous or restricted material that is an ingredient or part of the Supplies, together with any special
handling instructions that are needed to advise carriers, Buyer, and their employees how to take appropriate
measures while handling, transporting, processing, using or disposing of the Supplies, containers, and
packing. Seller agrees to comply with all national, state, provincial, and local laws and regulations
pertaining to product content and warning labels, including without limitation the U.S. Toxic Substances
Control Act and European Union Directive 2000/53/EC. (c) Seller will reimburse Buyer for any liabilities,
expenses and costs incurred as a result of improper packing, marking, routing, or shipping or any other
noncompliance with the requirements of this Section. In no event will shipping documents attached to or
contained in the shipment display pricing information or any of Buyer’s proprietary information. If Buyer
provides no packing requirements, Seller will pack the Supplies in accordance with the applicable
Automotive Industry Action Group packing requirement.
5.1 Disclosure; Special Warnings or Instructions. Seller will provide Buyer with the following
information, with respect to such Supplies, in a form that would satisfy the requirements of the
Sustainability Directives, as defined below, or as otherwise requested by Buyer: (i) a list of all
elements, minerals, compounds, and other ingredients that comprise the Supplies (“Required
Minerals”) and are the subject of, or addressed by, the Sustainability Directives, defined below, or as
otherwise requested by Buyer; (ii) the manufacturing location of Supplies; (iii) the amount and, as
applicable, the percentage of each Required Mineral in Supplies, and (iv) in addition and pursuant to
Section 9, information concerning any changes in or additions to Required Minerals in these Supplies.
Seller will provide the aforementioned information to Buyer as expeditiously as possible prior to the
shipment of these Supplies by Seller, but in any event, in sufficient time to afford Buyer reasonable
time to a) determine Buyer’s disclosure requirements and b) reject any Supplies, cancel any Order, or
pursue all other remedies, including, but not limited to, legal and equitable remedies, in the event
Seller either fails to meet applicable Sustainability Directives or Buyer’s disclosure requirements as
provided in Sections 5.1 and 5.2. Additionally, before and at the time Supplies are shipped, Seller will
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 3
give Buyer sufficient warning in writing (including all required labels on all Supplies, containers, and
packing, including without limitation disposal and recycling instructions, material safety data sheets
and certificates of analysis) of any hazardous or restricted material that is an ingredient or part of the
Supplies. Seller agrees to comply with 1) all of Buyer’s published policies on sustainability as they
exist from time to time as well as 2) all current, and subsequently enacted, national, state, provincial,
and local laws and regulations applicable to Buyer, Buyer’s customers, Seller, or any combination of
(1) and (2), pertaining to content of Supplies and warning labels (“Sustainability Directives”),
including without limitation the U.S. Toxic Substances Control Act and European Union Directive
2002/96/EC and 2002/95/EC regarding restrictions of certain hazardous substances, Dodd-Frank Act
regarding conflict minerals and European Union Regulation 1907/2007/EC regarding Registration,
Evaluation, Authorization and Restriction of Chemicals. Link to Registration, Evaluation, and
Authorization
of
Chemicals
(REACH)
Regulation:
http://ec.europa.eu/environment/chemicals/reach/reach_intro.htm. Link to RoHS Directive:
http://ec.europa.eu/environment/waste/weee/index_en.htm. Seller will reimburse Buyer for any
expenses incurred as a result of improper or incomplete disclosure, packing, marking, routing, or
shipping of Supplies.
5.2 Sustainability. In addition to complying with all applicable Sustainability Directives, with respect
to Supplies, Seller will i) completely, accurately, and timely respond to Buyer’s surveys and requests
for information related to the Sustainability Directives and Required Minerals and ii) fully cooperate
with Buyer in Buyer’s efforts to collect information throughout Seller’s supply chain on the origin
(including determination of a recycled or scrapped source, location of the mine, smelter, and initial
entry into the supply chain) and use of Required Minerals in the Supplies.
5.3 In the event Seller fails to fully and timely comply with Sections 5.1, 5.2, or both, in addition to all
other remedies available to Buyer under these Terms, the UCC, or otherwise, Buyer may, in its sole
and absolute discretion, with respect to any Supplies, revoke the acceptance, reject, abandon, return or
hold such Supplies at Seller’s expense and risk (“Refused Product”) and Buyer may cancel in whole or
in part, i) any Order, ii) award letter, iii) any other agreement, iv) any other obligation Buyer may have
to purchase any or all Supplies from Seller, or v) any combination of (i), (ii), (iii), and (iv) (collectively
“Canceled Products”). Additionally, Buyer has the right to source replacements for any Refused
Products, Canceled Products, or any combination thereof and Seller will reimburse Buyer for any
difference in cost of such replacements plus all associated expenses, including charges for expediting
and quality validation, and losses arising out of or related to adverse effects on Buyer’s business as a
result of the need to pursue such alternative sourcing.
6.
Customs; Related Matters. Credits or benefits resulting from the Order, including trade credits,
export credits or the refund of duties, taxes, or fees, belong to Buyer. Seller will provide all information and
certificates (including NAFTA Certificates of Origin) necessary to permit Buyer (or, if applicable,
Customers) to receive these benefits or credits. Seller agrees to fulfill any customs-or NAFTA-related
obligations, origin marking or labeling requirements, and local content origin requirements. Export licenses
or authorizations necessary for the export of Supplies are Seller’s responsibility unless otherwise stated in
the Order or an Agreement, in which case Seller will provide the information necessary to enable Buyer to
obtain the licenses or authorizations. Seller will promptly notify Buyer in writing of any material or
components used by Seller in filling the Order that Seller purchases in a country other than the country in
which the Supplies are delivered. Seller will furnish any documentation and information necessary to
establish the country of origin or to comply with the applicable country’s rules of origin requirements.
Seller will promptly advise Buyer of any material or components imported into the country of origin and
any duty included in the Supplies’ purchase price. If Supplies are manufactured in a country other than the
country in which Supplies are delivered, Seller will mark Supplies “Made in [country of origin].” Seller
will provide to Buyer and the appropriate governmental agency the documentation necessary to determine
the admissibility and the effect of entry of Supplies into the country in which Supplies are delivered. Seller
warrants that any information that is supplied to Buyer about the import or export of Supplies is true and
that all sales covered by the Order will be made at not less than fair value under the anti-dumping laws of
the countries to which the Supplies are exported. To the extent any Supplies covered by this Order are to be
imported into the United States of America, Seller shall comply will all applicable recommendations or
requirements of the Bureau of Customs and Border Protection’s Customs-Trade Partnership Against
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 4
Terrorism (“C-TPAT”) initiative. Upon request, Seller shall certify in writing its compliance with the CTPAT initiative.
7.
Inspection; Non-Conforming Goods/Services; Audit. Buyer may enter Seller’s facility to inspect
the facility, Supplies, materials, and any of Buyer’s property related to the Order. Buyer’s inspection of
Supplies, whether during manufacture, prior to delivery, or within a reasonable time after delivery, does not
constitute acceptance of any work-in-process or finished goods. Buyer’s acceptance, inspection, or failure
to inspect does not relieve Seller of any of its responsibilities or warranties. Nothing in the Order releases
Seller from the obligation of testing, inspection and quality control. If defective Supplies are shipped to and
rejected by Buyer, the quantities under the Order will be reduced unless Buyer otherwise notifies Seller.
Seller will not replace reduced quantities without a new Material Release from Buyer. In addition to other
remedies available to Buyer: (i) Seller agrees to accept return, at Seller’s risk and expense at full invoice
price, plus transportation charges, and to replace defective Supplies as Buyer deems necessary; (ii) Buyer
may have corrected at any time prior to shipment from Buyer’s plant Supplies that fail to meet the
requirements of the Order; and/or (iii) Seller will reimburse Buyer for all reasonable expenses that result
from any rejection or correction of defective Supplies. Seller will document corrective actions within a
commercially reasonable period after receipt of a defective sample and will take whatever measures
necessary to correct the defect. Payment for nonconforming Supplies is not an acceptance, does not limit or
impair Buyer’s right to assert any legal or equitable remedy, and does not relieve Seller’s responsibility for
latent defects. Upon reasonable notice to Seller, either Buyer or its direct or indirect customers may
conduct audits at Seller’s production facility for the purpose of quality, cost or delivery verification. Seller
will ensure that the terms of its contracts with its subcontractors provide Buyer and its customers with all of
the rights specified in this Section.
8.
Payment. Except as otherwise provided in these Terms, Buyer will pay proper invoices on the
payment terms stated in the Order or an Agreement, if any. Such payment terms apply to the date Invoices
are received at the facility designated by Buyer when Seller has complied with all its obligations provided
in the Order or, in the case of services, the date that Buyer receives Seller’s invoice following completion
of the services. If no payment term appears on the Order or in an Agreement, Buyer will pay Seller for the
Supplies on the 60th day (or no later than the Friday following the 60th day) (“Net 60 paid weekly”)
following Buyer’s receipt of the Invoices at Buyer’s designated facility when Seller has complied with all
its obligations provided in the Order or, in the case of services, Buyer’s receipt of Seller’s invoice
following completion of the services. Invoices for tooling must be issued only as approved, as provided in
the Order. Buyer may withhold payment pending receipt of evidence, in the form and detail requested by
Buyer, of the absence of any liens, encumbrances, or claims on Supplies provided under the Order.
Payment will be made in the currency expressly stated in the Order; if no such currency is noted, payment
will be made in U.S. Dollars. Payment will be made by mailing on or before the due date unless otherwise
expressly agreed by Buyer.
9.
Changes. (a) Buyer reserves the right at any time, by written notice to Seller, to make changes, or
to require Seller to make changes, to drawings, specifications, sub-suppliers, samples or descriptions of
Supplies. Buyer also reserves the right to otherwise change the scope of the work covered by the Order,
including work with respect to such matters as inspection, testing or quality control. Buyer may also direct
the supply of raw materials from itself or from third parties. Seller will promptly make any such requested
change. In order for Seller to request a reasonable difference in price or time for performance as a result of
such a change, Seller must notify Buyer of its request in writing within ten days after receiving notice of
the change. Buyer can request additional documentation from Seller relating to any change in
specifications, price or time for performance. After receiving all requested documentation, Buyer may, in
its sole discretion, equitably adjust the price or time for performance. If Seller does not provide timely
notice to Buyer that a requested change may result in a difference in price or time for performance, Buyer’s
requested change will not affect the price or time for performance. (b) Seller will not make any change
relating to Supplies – including without limitation, in the Supplies’ contents, design, specifications,
processing, packing, marking, shipping, price or date or place of delivery – except at Buyer’s written
instruction or with Buyer’s written approval. Such prohibited changes include, without limitation, changing
(i) any third party supplier to Seller of the services, raw materials or goods used by Seller in connection
with its performance under the Order, (ii) any facility from which Seller and/or any such third party
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 5
supplier operates and that relates in any way to the Supplies, or to services, raw materials or goods used by
Seller in connection with performance under the Order, (iii) the price of any Supplies covered by the Order,
(iv) the nature, type or quality of any services, raw materials or goods used by Seller or its suppliers in
connection with the Order, (v) the fit, form, function, appearance or performance of any Supplies covered
by the Order, or (vi) the production method, or any process or software, or any production equipment used
in the production or provision of, or as part of, any Supplies under the Order. Any changes by Seller to any
Order or to the Supplies covered by the Order without the prior written approval of an authorized
representative of Buyer shall constitute a breach of the Order.
10.
Warranties. (a) Seller expressly warrants and guarantees to Buyer, to Buyer’s successors, assigns
and Customers, and to users of Buyer’s products, that all Supplies delivered or provided to Buyer will: (i)
be world-class, competitive Supplies in terms of price, quality, delivery and technology, and conform to the
specifications, standards, drawings, samples, descriptions and revisions as furnished to or by Buyer; (ii)
conform to all applicable laws, orders, regulations and standards in countries where Supplies or vehicles or
other products incorporating Supplies are to be sold, including without limitation the National Traffic and
Motor Vehicle Safety Act, United States motor vehicle safety standards and European Union Directive
2000/53/EC; (iii) be merchantable and free of defects in design (to the extent designed by Seller or any of
its subcontractors, agents or suppliers (other than Buyer-directed suppliers), even if the design has been
approved by Buyer), materials and workmanship; (iv) be selected, designed (to the extent designed by
Seller or any of its subcontractors, agents or suppliers (other than Buyer-directed suppliers), even if the
design has been approved by Buyer), manufactured and assembled by Seller based upon Buyer’s stated use
and be fit and sufficient for the purposes intended by Buyer, and (v) be free of all liens, claims and
encumbrances whatsoever. Seller further expressly warrants that, unless otherwise expressly stated in the
Order, the Supplies are manufactured entirely with new materials, none of the Supplies is, in whole or in
part, governmental or commercial surplus or used, remanufactured, reconditioned or of such age or
condition so as to impair its fitness, usefulness or safety, and the Supplies are free from latent defects or
conditions that would give rise to a defect regardless of whether the defect or condition was known or
discoverable during the warranty period. These warranties are intended to provide Buyer with protection
from any and all warranty claims brought against Buyer by Customers, including Customer-required
warranties relating to the Supplies or any products into which such Supplies are incorporated. All such
Customer-required warranties are incorporated herein by reference. The foregoing warranties are in
addition to those available to Buyer by law. (b) The warranty period is the longest of: three years from the
date Buyer accepts the Supplies; the warranty period provided by applicable law; or the warranty period
offered by Buyer Customer(s) to end-users for Supplies installed on or as part of vehicles, and provided
further that if Buyer or any Customer voluntarily or pursuant to a government mandate, makes an offer to
owners of vehicles (or other finished products) on which the Supplies, or any parts, components or systems
incorporating the Supplies, are installed to provide remedial action or to address a defect or condition that
relates to motor vehicle safety or the failure of a vehicle to comply with any applicable law, safety standard
or corrective service action (“Remedial Action”), the warranty shall continue for such period of time as
may be dictated by Customer(s) or the federal, state, local or foreign government where the Supplies are
used or provided, and Seller shall fully comply (among other matters) with the requirements under Section
15 below. (c) For all services, Seller further warrants that its work will be performed in a professional and
workmanlike manner, consistent with all standards and specifications agreed on with Buyer and otherwise
consistent with industry standards. (d) Seller will immediately notify Buyer in writing when it becomes
aware of any ingredient, component, design or defect in Supplies that is or may become harmful to persons
or property. (e) Buyer’s approval of any design, drawing, material, process or specifications will not relieve
Seller of these warranties. (f) The following communications shall each constitute notice of a breach of
warranty under the Order: (i) any communication specifying a defect, default, claim of defect or other
problem or quality issue of the Supplies provided under the Order; (ii) any communication to Seller
claiming that the Supplies are in breach of any warranty or that Seller is in default under the Order; and (iii)
a termination notice from Buyer under Section 19. Any such claim by Buyer of breach may only be
rescinded in writing by an authorized representative of Buyer. (g) To mitigate its damages, Buyer may fully
defend any claim from any Customer that any Supplies supplied by Seller are defective, in breach of
warranty, or otherwise did not meet applicable legal or contractual requirements because such Customer
may attempt to hold Buyer responsible for problems caused in whole or in part by Seller. Seller and Buyer
agree that this defense is in the interest of both Seller and Buyer. Seller waives the right to argue that the
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 6
fact that Buyer took any such position in any way limits Buyer's right to assert a claim against Seller by
Buyer for breach of warranty, contribution, indemnification or other claim that may arise from or be related
to the subject matter of any of the foregoing.
11.
Supplier Standards, Quality and Development; PPAP; Required Programs. (a) Seller will conform
to the quality control and other standards and inspection systems of Buyer and (as applicable) Customers,
including without limitation quality control policies, ISO 9001:2000 or ISO/TS 16949:2002 quality
certification and ISO 14001 environmental certification including registration. Seller will also participate in
supplier quality and development programs of Buyer and (as applicable) Customers. Seller agrees to meet
the full requirements of industry Production Part Approval Processes (PPAP) as specified by Buyer and (as
applicable) Customers and agrees to present this information to Buyer upon request, at the level requested.
As requested by Buyer at any time, Seller will participate in and comply with the following Buyer
programs and standards: (i) Buyer’s Supplier Standards Manual (including all subsections and forms),
accessible at http://www.johnsoncontrols.com/publish/us/en/suppliers/automotive_experience.html; (ii)
Advanced Quality Planning (AQP) and Supplier Individual Development Plans (SIDP); (iii) supplier
performance evaluations; and (iv) minority business expectations. These programs and standards may be
found at http://www.johnsoncontrols.com/publish/us/en/suppliers/automotive_experience.html or by
contacting Buyer’s assigned purchasing representative. All references to Johnson Controls, Inc. in the
foregoing programs and standards will be deemed references to Buyer. In the event of any discrepancy
between any part of the above programs or standards and an express provision of these Terms, these Terms
will control. (b) Supplier is responsible for all lower-tier providers of goods or services. Seller must
maintain adequate development, validation, launch and ongoing supervision to assure all Supplies provided
to Buyer conform to all applicable warranties and other provisions of the Order.
12.
Service and Replacement Parts. During the applicable vehicle program production life and for five
years after a vehicle program concludes production or specific part concludes production (unless a different
period is agreed in writing by the parties or stated in Buyer’s applicable Statement of Work or Supplier
Standards Manual), Seller will supply Buyer’s written “replacement parts” and “service parts” orders for
the same Supplies, component parts and materials at the price(s) set forth in the Order plus any actual cost
differential for special packaging. If the Supplies are systems or modules, Seller will sell each component
or part at a price that does not, in the aggregate, exceed the system or module price specified in the Order,
less assembly costs, plus any actual cost differential for packaging. For an additional ten years, or so long
as the related Customer requires service parts, whichever is longer (or a different period if agreed in writing
by the parties or stated in Buyer’s applicable Statement of Work or Supplier Standards Manual), Seller will
sell Supplies to Buyer in order to fulfill Buyer’s past model service and replacement parts requirements, at
price(s) based on the most recent price(s) under the Order, taking into account actual, documented
differences in the cost of materials, packaging, and costs of production after any of Buyer’s current model
purchases have been completed, as mutually and reasonably agreed by the parties. At Buyer’s request,
Seller will make service literature and other materials available at no additional charge to support Buyer’s
service part sales activities. Unless otherwise expressly agreed in writing by an authorized representative of
Buyer or Buyer removes tooling from Seller necessary for the production of service parts, Seller’s
obligations under this Section 12 shall survive termination or expiration of the Order for any reason.
13.
Remedies. The rights and remedies reserved to Buyer in each Order will be cumulative with and in
addition to all other or legal or equitable remedies. Seller will reimburse Buyer for any incidental,
consequential or other damages (including lost profits) caused or required by Seller’s breach or by
nonconforming Supplies, including without limitation costs, expenses and losses incurred directly or
indirectly by Buyer or Customer(s): (i) in inspecting, sorting, storing, reworking, repairing or replacing the
nonconforming Supplies; (ii) resulting from production interruptions; (iii) conducting recall campaigns,
customer field service actions or other corrective service actions; or (iv) resulting from personal injury
(including death) or property damage caused by the nonconforming Supplies. Buyer’s damages include
reasonable attorneys’ fees and other professional fees, settlements and judgments incurred by Buyer and
other costs associated with Buyer’s administrative time, labor and materials. If requested by Buyer, Seller
will enter into a separate agreement for the administration or processing of warranty charge-backs for
nonconforming Supplies, and will participate in and comply with warranty reduction or related programs of
Buyer or (to the extent directed by Buyer) Customer(s) that relate to the Supplies. In any action brought by
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 7
Buyer to enforce Seller’s obligations in connection with the production or delivery of Supplies or transition
support, or for possession of property, Seller acknowledges and agrees that monetary damages are not a
sufficient remedy for any actual, anticipatory or threatened breach of the Order and that, in addition to all
other rights and remedies that Buyer may have, Buyer shall be entitled to specific performance and
injunctive equitable relief as a remedy for any such breach, plus Buyer’s reasonable attorneys’ fees.
14.
Compliance with Laws; Ethics. (a) Seller, and any Supplies supplied by Seller, will comply with
all applicable laws, including rules, regulations, orders, conventions, ordinances and standards, including
without limitation (i) in relation to the manufacture, labeling, transport, import, export, licensing, approval
or certification of the Supplies, and (ii) laws relating to competition, corporate governance, taxation,
financial disclosure, environmental matters, hiring, wages, hours and conditions of employment,
subcontractor selection, discrimination, occupational health or safety and motor vehicle safety. While
supplying goods or performing services under this agreement the supplier will comply with the US Foreign
Corrupt Practices Act, local anti-corruption laws and all other laws prohibiting any form of commercial or
private bribery. The Order incorporates by reference all clauses required by these laws. (b) All materials
used by Seller in the Supplies or in their manufacture will satisfy current governmental and safety
constraints on restricted, toxic and hazardous materials as well as environmental, electrical and
electromagnetic considerations that apply to the country of manufacture, sale or destination. (c) Seller and
its employees and contractors will abide by the Buyer’s Ethics Policy (available at
http://www.corp.jci.com/ethics/EthicsBrochure.htm) or Seller’s own equivalent ethics policy.
15.
Customer Requirements. (a) Seller agrees to comply with the applicable terms and conditions of
any agreements (“Customer Purchase Orders”) received by Buyer from a third party (“Customer”), or
directly or indirectly applicable to Buyer, pursuant to which Buyer agrees to supply to Customer, or to
incorporate into goods supplied to Customer, Supplies purchased by Buyer from Seller. The terms
“Customer” and “Customer Purchase Orders” also include, where applicable, the final equipment
manufacturer of goods or services into which the Supplies are or will be incorporated, as well as any
intermediate entities in the supply chain between Buyer’s direct Customer and such final equipment
manufacturer, and related terms and conditions of such Customers. Buyer may in its discretion supply
Seller with information regarding Customer Purchase Orders. Seller will be responsible for ascertaining
how such disclosed Customer Purchase Order affects Seller’s obligations under the Order, and Seller will
meet all such disclosed Customer Purchase Order terms and conditions to the extent within Seller’s control.
In the event of a conflict between the Order or these Terms and the terms of the Customer Purchase Order,
Buyer will determine, in its sole and absolute discretion, which terms will supersede and apply to Seller.
Seller will do everything within its control to enable Buyer to meet the terms and conditions of Customer
Purchase Orders, including without limitation, cost and productivity terms and price reductions. By written
notice to Seller, Buyer may elect to have the provisions of this Section prevail over any conflicting term
between Buyer and Seller. (b) In the event that a Customer files or has filed against it a petition in
bankruptcy or insolvency and, in the course of such proceeding and in connection with actual or threatened
termination by the Customer of its contract(s) with Buyer (by rejection or otherwise), Buyer permits a
reduction in the price(s) paid to Buyer for products incorporating the Supplies, the price paid to Seller for
the Supplies from and after the date of such reduction will be automatically adjusted proportionally by the
same percentage as the price paid to Buyer, and the Order will otherwise remain in effect without
modification. (c) If a Customer directed, recommended, requested, suggested or otherwise identified Seller
as the source from which Buyer is to obtain the Supplies (“Direct Supply Relationship”), then
notwithstanding the particular payment terms otherwise applicable to the Order or anything to the contrary
in the Order: (1) in no event will Seller have a right to receive payment from Buyer for the Supplies except
following, and in proportion to, Buyer’s actual receipt of payment for those goods in which the specific
Supplies are incorporated, and (2) any lengthening of applicable payment terms to Buyer will automatically
lengthen the payment terms as between Buyer and Seller by an identical amount of time, and Buyer may, at
its option and on notice to Seller, otherwise revise its payment terms for Supplies to take into account any
other change in the payment terms of Buyer’s Customer(s) for the Supplies under the Order; (3) within
three business days of any change in price, specifications or other terms negotiated or proposed between
Seller and Customer, Seller will notify Buyer in writing and will immediately adjust its invoices to reflect
any price reduction, provided that no change will be binding on Buyer without Buyer's specific written
consent; (4) (without limiting any other rights and remedies of Buyer) Seller will indemnify and hold
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 8
harmless Buyer from any liabilities, claims, demands, losses, damages, costs and expenses (including
without limitation attorneys’ fees and other professional fees) incurred by Buyer arising from or relating to
the Supplies supplied by Seller – and including without limitation any charges or set-offs (including
without limitation interim field service action cost recovery debits) taken by Customer against Buyer by
reason of alleged defects in Supplies, even if such set-offs by Customer are before final determination of
(and subject to adjustment based upon) whether and to what extent defects in Supplies were a cause of the
related remedial action undertaken and related costs/damages incurred by Customer; (5) Seller will resolve
all commercial issues (including pricing disputes), collection and/or insolvency risks of OEM and/or Seller,
warranty charges, product liability claims, recalls, intellectual property matters and production interruptions
arising from or relating to the Supplies (except in each case to the extent caused by Buyer) directly and
exclusively with Customer and Seller will indemnify and hold harmless Buyer for these matters; and (6)
any debits claimed by Customer arising from or relating to the Supplies will be passed through Buyer to
Seller. (d) If any requirement imposed by any Order on Seller is found to be unenforceable or a gap
otherwise exists or is created in the terms applicable to any Order through operation of law, conflict in
terms or otherwise, the corresponding requirement(s) of Customer shall be applicable to and binding on
Seller for the benefit of Buyer. Seller acknowledges that it is familiar with the automotive industry and the
applicable terms of Customer(s) that would apply in such event.
16.
Indemnification. (a) To the fullest extent permitted by law, (i) Seller hereby assumes the entire,
sole responsibility for any injury to person, including death, or damage to property of any kind or nature
caused by, resulting from or in connection with the furnishing of Supplies by Seller, its subcontractors,
officers, agents or employees; (ii) Buyer shall not be responsible for any injury to person (including death)
or damage to property resulting from Seller’s possession, use, misuse or failure of any Buyer’s Property or
other property furnished to Seller by Buyer, and the use of any such property by Seller shall constitute
acceptance by Seller of all responsibility for any claims for such injury or damage, and (iii) Seller will
defend, indemnify and hold harmless Buyer, Customers, and dealers and users of the products sold by
Buyer (or the vehicles in which they are incorporated) and all of their respective agents, customers,
invitees, subsidiaries, affiliates, successors and assigns, against all damages, losses, claims, liabilities and
expenses (including reasonable attorneys’ and other professional fees, settlements and judgments) arising
out of or resulting from any defective Supplies, or from any negligent or wrongful act or omission of Seller
or Seller’s agents, employees or subcontractors, or any breach or failure by Seller to comply with any of
Seller’s representations or other terms and conditions of an Order (including any part of these Terms) –
including without limitation the cost of recall campaigns, Customer field service actions or other corrective
service actions that, in Buyer's or Customer's reasonable judgment, are required because of nonconformities
in some or all of the Supplies provided by Seller hereunder, and including without limitation interim set offs or charges (such as interim field service action cost recovery debits) by Customers attributable to
Supplies but subject to adjustment based on final determination of whether and to what extent the damages,
losses, claims, liabilities and expenses were attributable to defects or other failures of Supplies or Seller to
comply with its obligations under one or more Orders. Seller's obligation to defend and indemnify under
this Section will apply regardless of whether the claim arises in tort, negligence, contract, warranty, strict
liability or otherwise except for claims that arise as a result of the sole negligence of Buyer. Buyer has the
right to be represented by and actively participate through its own counsel in the defense and resolution of
any indemnification matters, at Seller's expense. The indemnification obligations of Seller set forth in this
Agreement, including this Section, are independent of and in addition to any insurance and warranty
obligations of Seller. (b) If Seller performs any work on Buyer’s or Customer’s premises or utilizes the
property of Buyer or Customer, whether on or off Buyer’s or Customer’s premises: (i) Seller will examine
the premises to determine whether they are safe for the requested work and will advise Buyer promptly of
any situation it deems to be unsafe; (ii) Seller’s employees, contractors, and agents will comply with all
laws and regulations that apply to the premises and may be removed from Buyer’s premises at Buyer’s
discretion; (iii) Seller’s employees, contractors, and agents will not possess, use, sell, transfer or be under
the influence of alcohol or unauthorized, illegal, or controlled drugs or substances on the premises; and (iv)
to the fullest extent permitted by law, Seller will indemnify and hold Buyer and Customer, and their
respective agents, successors and assigns, harmless from and against any liability, claims, demands or
expenses (including reasonable attorneys’ and other professional fees, settlements and judgments) for
damages to the property of or personal injuries (including death) to Buyer, Customers, their respective
employees or agents, or any other person or entity to the extent arising from or in connection with Seller’s
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page 9
work on the premises or Seller’s use of Buyer’s or Customer’s property, except for any liability, claim or
demand arising out of the sole negligence of Buyer or Customer, respectively.
17.
Insurance. Seller will obtain and maintain, with insurance companies reasonably acceptable to
Buyer, the insurance coverage listed below or in additional amounts and coverages as may be reasonably
requested by Buyer or (to the extent directed by Buyer) Customer(s), in each case naming Buyer and its
affiliates (as applicable) as loss payee(s) and “additional insured(s)”. Such coverages shall include, without
limitation, providing full fire and extended coverage insurance for the replacement value of (i) all Seller’s
Property, and (ii) any bailed Buyer’s Property, both for their full replacement value. Seller will furnish to
Buyer a certificate showing compliance with this requirement or certified copies of all insurance policies
within 10 days of Buyer’s written request. The certificate will provide that Buyer (and, if applicable,
Customers) will receive 30 days prior written notice from the insurer of any termination or reduction in the
amount or scope of coverage. The existence of insurance does not release Seller of its obligations or
liabilities under the Order. Minimum coverage is as follows:
COVERAGE
Workers compensation
LIMITS OF LIABILITY
Statutory
Employer's liability
US$100,000 / each accident, disease
policy limit, disease each employee
Commercial general liability insurance,
including contractual liability coverage
US$5,000,000 / each occurrence,
general aggregate, products &
completed operations aggregate
Commercial automobile liability insurance
US$1,000,000 / each occurrence,
combined single limit
Business interruption insurance
As specified by Buyer
18.
Financial Review; Insolvency. (a) Buyer or a third party designated by Buyer may at any time
review the financial condition of Seller and its affiliates, and Seller will fully cooperate in such review and
will promptly provide copies of or access to requested documents, including without limitation financial
records and statements, forecasts, business plans, banking contacts and loan documents, and will make its
financial managers available for discussions during reasonable business hours. Buyer and any designated
third party will keep confidential any nonpublic information about Seller obtained in a financial review and
use such information only for purposes of the review, except as needed to enforce the Order. (b) The Order
may be terminated immediately by Buyer without liability to Seller if any of the following or comparable
events occur, and Seller will reimburse Buyer for all costs incurred by Buyer in connection with any of the
following, including without limitation attorneys’ and other professional fees: (i) Seller becomes insolvent;
(ii) Seller files a voluntary petition in bankruptcy; (iii) an involuntary petition in bankruptcy is filed against
Seller; (iv) a receiver or trustee is appointed for Seller; (v) Seller needs accommodations from Buyer,
financial or otherwise, in order to meet its obligations under the Order; (vi) Seller executes an assignment
for the benefit of creditors; (vii) Seller fails to meet the credit underwriting standards of Buyer's credit
insurance program, or (viii) Seller is unable promptly to provide Buyer with adequate reasonable assurance
of Seller's financial capability to perform any of Seller's obligations under the Order on a timely basis. In
the event that this Order is not terminated in accordance with the immediately preceding sentence, upon the
occurrence of an event described in the immediately preceding sentence, Buyer may make equitable
adjustments in the price, payment terms, and/or delivery requirements under this Order as Buyer deems
appropriate to address the change in Seller's circumstances, including Seller's continuing ability to perform
its obligations regarding warranty, nonconforming Supplies or other requirements under this Order. (c)
Seller agrees that if Seller experiences any delivery or operational problems, Buyer may, but is not required
to, designate one or more representatives to be present in Seller's applicable facility to observe Seller's
operations. Seller agrees that if Buyer provides to Seller any accommodations (financial or other) that are
necessary for Seller to fulfill its obligations under this Order, Seller will reimburse Buyer for all costs,
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
10
including attorneys' and other professionals' fees, incurred by Buyer in connection with such
accommodation and will grant access to Buyer to use Seller's premises and machinery, equipment, and
other property necessary for the production of the Supplies covered by this Order. Notwithstanding
anything contained in this Section 18 to the contrary, financial information provided by Seller to Buyer
hereunder pursuant to a Direct Supply Relationship may be provided to the Customer if Seller fails to
provide Buyer with adequate reasonable assurance of Seller’s financial capability to perform any of Seller’s
obligations under the Order on a timely basis.
19.
Termination for Breach or Nonperformance. (a) Buyer may terminate all or any part of the Order,
without liability to Seller, if Seller: (i) repudiates, breaches or threatens to breach any of the terms of the
Order (including without limitation Seller’s warranties and world-class supplier provisions); (ii) fails or
threatens not to deliver Supplies or perform services in connection with the Order; (iii) fails to make
progress or to meet reasonable quality requirements so as to endanger timely and proper completion or
delivery of Supplies and does not correct the failure or breach within 10 days (or such shorter period of
time if commercially reasonable under the circumstances) after receipt of written notice from Buyer
specifying the failure or breach or Buyer terminates for breach any other Order issued by Buyer to Seller in
accordance with the terms of such other Order (whether or not such other Order is related to the Order); (iv)
enters or offers to enter into a transaction that includes a sale of a substantial portion of its assets used for
the production of Supplies for Buyer or a merger, sale or exchange of stock or other equity interests that
would result in a change in control of Seller, or (v) fails to remain competitive with respect to quality,
technology, delivery, service or pricing of the Supplies. Seller will notify Buyer within ten days after
entering into any negotiations that could lead to the situation specified in subsection (iv) above, provided
that upon Seller’s request, Buyer will enter into an appropriate nondisclosure agreement related to
information disclosed to Buyer in relation to such transaction. (b) Seller may terminate the Order only for
non-payment of the purchase price for Supplies which are thirty (30) or more days past due and material in
amount, and then only if: (i) Seller first provides Buyer written notice specifying the amounts past due
(including the relevant Order and invoices numbers and dates) and Seller’s intent to terminate the Order if
the past due amount is not paid; and (ii) Buyer, within sixty (60) days of such notice, does not either: (A)
pay the past due amounts, or (B) notify Seller that the amounts claimed to be unpaid are disputed by Buyer.
Seller shall terminate under this Section by delivering a Termination Notice to Buyer. Seller may not
terminate or cancel the Order for any reason except as permitted under this Section. Seller may not suspend
performance of the Order for any reason.
20.
Termination. In addition to any other rights of Buyer to cancel or terminate the Order, Buyer may,
at its option and in its sole discretion, terminate all or any part of the Order (other than the minimum
quantities specified in Section 3) at any time and for any reason, and notwithstanding the existence of any
event of force majeure under Section 22, by giving at least 14 days written notice to Seller. Upon receipt of
notice of termination, and unless otherwise directed by Buyer, Seller will: (a) promptly terminate all work
under the Order on the effective date of termination; (b) transfer title and deliver to Buyer the finished
Supplies, the work in process, and the parts and materials that Seller reasonably produced or acquired
according to quantities ordered by Buyer and that Seller cannot use in producing goods for itself or for
others; (c) verify and settle any claims by subcontractors for actual costs incurred directly as a result of the
termination and ensure the recovery of materials in subcontractors’ possession; (d) take actions reasonably
necessary to protect property in Seller’s possession in which Buyer has an interest until disposal instruction
from Buyer has been received; and (e) upon Buyer’s request, cooperate with Buyer in transferring the
production of Supplies to a different supplier, including as described in Section 21. Upon termination by
Buyer under this Section, Buyer will be obligated to pay only the following: (i) the Order price for all
finished Supplies in the quantities ordered by Buyer that conform to the Order for which Seller has not
been paid; (ii) Seller’s reasonable actual cost of merchantable and useable work-in-process and the parts
and materials transferred to Buyer under part (b) above; (iii) Seller’s reasonable actual costs of settling
claims regarding its obligations to its subcontractors required under the Order, to the extent directly caused
by the termination, but limited to the amount of the firm quantities of Supplies and raw
materials/components specified in Material Releases issued by Buyer and then currently outstanding; (iv)
Seller’s reasonable actual cost of carrying out its obligation under subsection (d), and (v) if applicable,
amounts due in connection with Transition Support under Section 21(b). Notwithstanding any other
provision, Buyer will have no obligation for and will not be required to pay Seller, directly or on account of
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
11
claims by Seller’s subcontractors, for loss of anticipated profit, unabsorbed overhead, interest on claims,
product development and engineering costs, tooling, facilities and equipment rearrangement costs or rental,
unamortized capital or depreciation costs, finished goods, work-in-process or raw materials that Seller
fabricates or procures in amounts exceeding those authorized in the Material Releases, or general
administrative burden charges from termination of the Order, except as otherwise expressly agreed in a
separate Order issued by Buyer. Buyer’s obligation upon termination under this Section will not exceed the
obligation Buyer would have had to Seller in the absence of termination. Seller will furnish to Buyer,
within one month after the date of termination (or such shorter period as may be required by Customer), its
termination claim, which will consist exclusively of the items of Buyer’s obligation to Seller that are
expressly permitted by this Section. Buyer may audit Seller’s records before or after payment to verify
amounts requested in Seller’s termination claim. Buyer will have no obligation for payment to Seller under
this Section if Buyer terminates the Order or portion thereof because of a default or breach by Seller, and
any termination shall be without prejudice to any claims which Buyer may have against Seller. In the event
of a termination of the Order by Buyer as a result of Buyer ceasing to be a supplier to the Customer for the
vehicle program in respect of which Buyer issued the Order, Buyer shall only be obligated to compensate
Seller for any costs under this Section if, when and to the extent that the Customer reimburses Buyer for
such costs.
21.
Transition of Supply. (a) In connection with the expiration or termination of the Order by either
party, in whole or in part, or Buyer’s other decision to change to an alternate source of Supplies (including
but not limited to a Buyer-owned or –operated facility) (“alternative supplier”), Seller will cooperate in the
transition of supply, including the following: (i) Seller will continue production and delivery of all Supplies
as ordered by Buyer, at the prices and other terms stated in the Order, without premium or other condition,
during the entire period reasonably needed by Buyer to complete the transition to the alternate supplier(s)
including, at Buyer’s request, providing a sufficient bank of Supplies covered by the Order, such that
Seller’s action or inaction causes no interruption in Buyer’s ability to obtain Supplies as needed; (ii) at no
cost to Buyer, Seller (A) will promptly provide all requested information and documentation regarding and
access to Seller’s manufacturing process, including on-site inspections, bill-of-material data, tooling and
process detail and samples of Supplies and components, (B) will provide all notices necessary or desirable
for Buyer to resource the Order to an alternative supplier, (C) when requested by Buyer, will return to
Buyer all Buyer’s Property in as good condition as when received by Seller (reasonable wear and tear
excepted); and (D) will comply with Seller’s obligations relating to Seller’s Property in Section 25, and in
relation to subcontracts; and (iii) subject to Seller’s reasonable capacity constraints, Seller will provide
special overtime production, storage and/or management of extra inventory of Supplies, extraordinary
packaging and transportation and other special services (collectively, “Transition Support”) as expressly
requested by Buyer in writing. (b) If the transition occurs for reasons other than Seller’s termination or
breach, Buyer will, at the end of the transition period, pay the reasonable, actual cost of Transition Support
as requested and incurred, provided that Seller has advised Buyer prior to incurring such amounts of its
estimate of such costs. If the parties disagree on the cost of Transition Support, Buyer will pay the agreed
portion to Seller and pay the disputed portion into third-party escrow for disbursement by arbitration.
22.
Force Majeure. Any delay or failure of either party to perform its obligations will be excused if
and to the extent that the party is unable to perform specifically due to an event or occurrence beyond its
reasonable control and without its fault or negligence, such as: acts of God; restrictions, prohibitions,
priorities or allocations imposed or actions taken by a governmental authority (whether valid or invalid);
embargoes; fires; floods, earthquakes, explosions; natural disasters; riots; wars; sabotage; inability to obtain
power; or court injunction or order. Seller’s inability to perform as a result, or delays caused by, Seller’s
insolvency or lack of financial resources is deemed to be within Seller’s control. The change in cost or
availability of materials or components based on market conditions, supplier actions, or contract disputes or
any labor strike or other labor disruption applicable to Seller or any of its subcontractors or suppliers, will
not excuse Seller’s performance (under theories of force majeure, commercial impracticability or
otherwise), and Seller assumes these risks. As soon as possible (but no more than one full business day)
after the occurrence, Seller will provide written notice describing such delay and assuring Buyer of the
anticipated duration of the delay and the time that the delay will be cured. During the delay or failure to
perform by Seller, Buyer may at its option: (a) purchase Supplies from other sources and reduce its
schedules to Seller by such quantities, without liability to Seller; (b) require Seller to deliver to Buyer at
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
12
Buyer’s expense all finished goods, work in process and parts and materials produced or acquired for work
under the Order; or (c) have Seller provide Supplies from other sources in quantities and at a time requested
by Buyer and at the price set forth in the Order. In addition, Seller at its expense will take all necessary
actions to ensure the supply of Supplies to Buyer for a period of at least 30 days during any anticipated
labor disruption or resulting from the expiration of Seller’s labor contracts. If upon request of Buyer, Seller
fails to provide within ten (10) days (or such shorter period as Buyer requires) adequate assurance that any
delay will not exceed thirty (30) days, or if any delay lasts longer than thirty (30) days, Buyer may
terminate the Order without liability and Seller shall reimburse Buyer for costs associated with the
termination.
23.
Technology. (a) All Supplies, tooling (including fixtures, gauges, jigs, patterns, castings, cavity
dies and molds, with all related appurtenances, accessions, and accessories), and all other deliverables,
data, inventions (whether or not patentable), industrial designs, technical information, know-how, processes
of manufacture and other intellectual property and information created, developed, conceived or first
reduced to practice by or on behalf of Seller (including without limitation by any person or entity employed
by or working under the direction of Seller) or acquired by Seller under this Order, and for which Buyer
has agreed to reimburse Seller, along with all intellectual property rights relating thereto, are the sole and
exclusive property of Buyer. Seller will promptly disclose in an acceptable form and assign to Buyer all
such deliverables, data, inventions (whether or not patentable), industrial designs, technical information,
know-how, processes of manufacture and other intellectual property and information. Seller will cause its
employees to sign any papers necessary to enable Buyer to file applications for patents throughout the
world and to record rights in and to such intellectual property. To the extent that such intellectual property
includes any works of authorship (including, without limitation, software) created by or on behalf of Seller,
such works shall be considered "works made for hire", and to the extent that such works do not qualify as
"works made for hire," Seller hereby assigns to Buyer all right, title, and interest in all copyrights and moral
rights therein.
(b) Seller acknowledges and agrees that Buyer, Buyer's subcontractor(s), and Customers
(including their affiliates and subcontractors) have the worldwide, irrevocable right to repair, reconstruct or
rebuild, and to have repaired, reconstructed or rebuilt, Supplies delivered under this Order without payment
of any royalty or other compensation to Seller.
(c) Seller hereby grants to Buyer, its subsidiaries and affiliates, and their respective successors and
assigns, and Buyer hereby accepts, a non-exclusive, irrevocable, worldwide, license, including the right to
sublicense others in connection with providing the Supplies to Buyer or Customers, under: (i) patents,
industrial designs, technical information, know-how, processes of manufacture and other intellectual
property, owned or controlled by Seller or its affiliates, and relating to the Supplies, to make, have made,
repair, reconstruct, rebuild, relocate, use, sell, offer to sell and import the Supplies, and (ii) any works of
authorship fixed in any tangible medium of expression (including without limitation drawings, prints,
manuals and specifications) furnished by Seller in the course of Seller’s activity under an Order, to
reproduce, distribute, and display such works, and to prepare derivative works based thereon, subject to the
other provisions of this Order (all items in clauses (c)(i) and (ii) above, collectively, “Seller’s Intellectual
Property”, and such license in respect thereof, the “License”). Seller acknowledges and understands that
this License shall be effective from the first date of delivery of the Supplies under this Order (or such
earlier date as specified below) and extend for so long as Buyer, or Buyer's subsidiaries and affiliates, have
contractual obligations to Customers relating to Supplies. Except as provided for below, Buyer agrees to
pay to Seller a reasonable royalty for the License, and Seller acknowledges that: (A) for a period of two
Model Years from Seller's first delivery of Supplies under an Order for Supplies to be incorporated into a
vehicle ("Model Years" being full or partial model years as established by the manufacturer of the vehicle
into which the Supplies are incorporated) (or if the Supplies are for some other purpose, for a period of two
years from the first delivery of Supplies under an Order) such reasonable royalty shall be deemed to be
included in the prices paid by Buyer for such Supplies, and thereafter the License shall be deemed to be
royalty free and fully paid-up; and (B) in the event that prior to the completion of the applicable time period
set forth in subsection (c) (A) above (that is, two Model Years, or two calendar years, from the first
delivery of Supplies under an Order by Seller, as applicable), Buyer sources the Supplies from someone
other than Seller, Buyer shall pay an additional amount for such reasonable royalty during the period
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
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remaining under subsection (c)(A) above, --and thereafter, Buyer's license shall be fully paid up and
royalty-free. Buyer and Seller shall negotiate in good faith the amount of such additional amount for the
reasonable royalty. Buyer and Seller acknowledge and agree that the License granted and accepted under
this subsection 23(c) shall take immediate effect (if not already in effect) and be royalty-free and fully paidup to Buyer in the event that: (A) an Order for Supplies is terminated by Buyer under Sections 18 or 19,
and/or (B) in the event that Seller for any reason is unable to satisfy the quality, quantity, delivery or related
requirements of Buyer for Supplies under an Order and/or additional orders. For purposes of this subsection
23(c), "Supplies" shall be deemed to include without limitation Supplies with modifications or changes as
requested or required at any time by the Customer, and other modifications or changes approved or
accepted by the Customer at any time – whether or not the part number(s) in question may change, --and
relating to any Platform(s) or Program(s) of the Customer for which Buyer is or becomes obligated to sell
Supplies.
(d) Rights under this Section 23 are intended to be subject to 11 USC Section 365(n), as an
executory agreement – including the License under which Buyer has license rights to Seller’s Intellectual
Property, --and are supplementary to any other rights of Buyer under existing Orders and any other
agreements with Seller.
(e) All Supplies or other deliverables provided under this Order (including, for example, computer
programs, technical specifications, documentation and manuals), shall be original to Seller and shall not
incorporate, or infringe upon, any intellectual property rights (including, without limitation, copyright,
patent, trade secret, mask work or trademark rights) of any third party, unless otherwise expressly agreed to
in writing on behalf of Buyer by an authorized representative of Buyer. (f) Seller agrees: (i) to defend, hold
harmless and indemnify Buyer, its successors and Customers against any suit, claim or action for actual or
alleged direct or contributory infringement of or inducement to infringe any proprietary right (including
any patent, trademark, copyright, moral, industrial design right or other proprietary right or misuse or
misappropriation of trade secret) and against any resulting damages or expenses (including attorney’s and
other professional fees, settlements and judgments) arising in any way in relation to Supplies covered by
this Order (including without limitation their manufacture, purchase, use and/or sale), including such
claims where Seller has provided only part of Supplies, and Seller expressly waives any claim against
Buyer that such infringement arose out of compliance with Buyer’s specifications, (ii) to waive any claim
against Buyer or Customers, including any hold-harmless or similar claim, in any way related to a thirdparty claim asserted against Buyer or Customers for infringement of any proprietary right (including any
patent, trademark, copyright, moral, industrial design right or other proprietary right or misuse or
misappropriation of trade secret), including claims arising out of specifications furnished by Buyer, and
(iii) that if the sale or use of the Supplies is enjoined or, in Buyer’s sole judgment, is likely to be enjoined,
Seller will, at Buyer’s election and Seller’s sole expense, procure for Buyer to right to continue using the
Supplies, replace the same with equivalent non-infringing goods or modify such Supplies so they become
non-infringing.
24.
Buyer’s Property; Confidentiality. (a) All information and materials, including for example,
tooling (such as fixtures, gauges, jigs, patterns, castings, cavity dies, molds, with all related appurtenances,
accessions, and accessories), packaging, documents, standards, specifications, samples, trade secrets,
proprietary information and other materials and items (including whether or not such materials are in any
way modified, altered or processed) furnished by Buyer either directly or indirectly to Seller to perform the
Order, along with any and all Supplies, tooling, deliverables, data, and intellectual property rights under
Section 23(a), for which Buyer has agreed to reimburse Seller , shall be (or, as applicable, will become as
fabricated or conceived or reduced to practice or acquired, regardless of payment) and remain the sole and
exclusive property of Buyer or its Customer(s) (collectively, “Buyer’s Property”). Any and all goods
manufactured by Seller with the use of Buyer’s Property may not be used for Seller’s own use or
manufactured or provided (or offered to be manufactured or provided) to third parties without Buyer’s
express written authorization. (b) Buyer does not guarantee the accuracy of, or the availability or suitability
of, Buyer’ Property supplied by Buyer. Seller agrees carefully to check and approve, for example, all
tooling, dies or materials supplied by Buyer prior to using it. Seller shall assume all risk of death or injury
to person or damage to property arising from the use of Buyer’s Property. TO THE EXTENT
PERMITTED BY LAW, BUYER SHALL HAVE NO LIABILITY TO SELLER OR ANYONE
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
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CLAIMING BY OR THROUGH SELLER FOR ANY INCIDENTAL OR CONSEQUENTIAL OR
OTHER DAMAGES OF ANY KIND WHATSOEVER RELATING TO BUYER’S PROPERTY
SUPPLIED BY BUYER. BUYER DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, WITH
RESPECT TO SUCH BUYER’S PROPERTY, INCLUDING WARRANTIES OF MERCHANTIBILITY
AND FITNESS FOR A PARTICULAR PURPOSE, AND SELLER WAIVES, FOR ITSELF AND ITS
SUCCESSORS AND ASSIGNS, ALL CLAIMS OF NEGLIGENCE AND STRICT LIABILITY. (c)
Buyer’s Property will be held by Seller or by a third party, to the extent that Seller has transferred
possession of Buyer’s Property to a third party, on a bailment basis as a bailee-at-will. Seller bears the risk
of loss of and damage to Buyer’s Property. Seller is solely responsible for inspecting, testing and approving
all Buyer’s Property prior to any use, and Seller assumes all risk of injury to persons or property arising
from Buyer’s Property. Buyer’s Property will be housed, maintained, repaired and replaced by Seller at
Seller’s expense in good working condition capable of producing Supplies meeting all applicable
specifications, will not be used by Seller for any purpose other than the performance of the Order, will be
deemed to be personalty, will be conspicuously marked by Seller as the property of Buyer, will not be
commingled with the property of Seller or with that of a third person, and will not be moved from Seller’s
premises without Buyer’s approval. Seller will insure Buyer’s Property with full fire and extended coverage
insurance for its replacement value. Any replacement of Buyer’s Property will become Buyer’s property.
Seller may not release or dispose Buyer’s Property to any third party without the express written
permission of Buyer. Buyer will have the right to enter Seller’s premises to inspect Buyer’s Property and
Seller’s records regarding Buyer’s Property. Only Buyer (or Buyer’s affiliates) has any right, title or
interest in Buyer’s Property, except for Seller’s limited right, subject to Buyer’s sole discretion, to use
Buyer’s Property in the manufacture of Supplies. Buyer and its affiliates have the right to take immediate
possession of Buyer’s Property at any time without payment of any kind. Seller agrees to cooperate with
Buyer if Buyer elects to take possession of Buyer’s Property. Effective immediately upon written notice to
Seller, without further notice or legal action, Buyer has the right to enter the premises of Seller and take
possession of all of Buyer’s Property. Seller expressly waives any right to additional notice or process and
agrees to provide Buyer or its nominee(s) with immediate access to Buyer’s Property. Seller grants to
Buyer a limited and irrevocable power of attorney, coupled with an interest, to execute and record on
Seller’s behalf any notice financing statements with respect to Buyer’s Property that Buyer determines are
reasonably necessary to reflect Buyer’s interest in Buyer’s Property. At Buyer’s request, Buyer’s Property
will be immediately released to Buyer or delivered by Seller to Buyer either (i) FCA (loaded) transport
equipment at Seller’s plant, properly packed and marked in accordance with the requirements of Buyer’s
selected carrier, or (ii) to any location designated by Buyer, in which case Buyer will pay Seller the
reasonable costs of delivery. Seller waives, to the extent permitted by law, any lien or other rights that
Seller might otherwise have on any of Buyer’s Property, including but not limited to molder’s and builder’s
liens, or any liens or other rights that Seller might otherwise have on Buyer's Property for work performed
on such property, for the purchase price of Supplies, or otherwise. (d) Seller acknowledges that Buyer's
Property includes proprietary and confidential information, regardless of whether such information is
marked or identified as confidential, and is delivered to Seller on a confidential and nonpublic basis for the
purpose of performing the Order only. All terms of the Order are deemed proprietary and confidential
information of Buyer or Customers. Seller agrees to keep all proprietary or confidential Buyer's Property
and Customer information in strictest confidence, and further agrees not to disclose or permit disclosure to
others, or use for other than the purpose of the Order, any such proprietary and confidential information.
Seller shall (i) disclose Buyer’s Property and/or Customer information within Seller's organization only to
those employees who have a need to know in order to fulfill Seller's obligations hereunder and who have
agreed to keep the Buyer’s Property and Customer information confidential, and (ii) prevent any such
Buyer’s Property or Customer information from being divulged to third persons not employed by Seller
without the prior written consent of Buyer, including having recipients acknowledge the confidential status
of such Buyer’s Property and Customer information and agree to similar restrictions. This obligation of
confidence shall survive termination of this Agreement and will continue for the longer of (i) a period of
five years from the date of disclosure of information covered by this Section, or (ii) a period ending three
years after termination or expiration of any related Order, or (iii) as long as Buyer's Property or Customer
information remains a trade secret, whichever is longer, and unless a longer period is specified in writing
by Buyer. The restrictions and obligations of this Section will not apply to information that: (a) is already
publicly known at the time of its disclosure by Buyer; (b) after disclosure by Buyer becomes publicly
known through no fault of Seller; (c) Seller can establish by written documentation was properly in its
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possession prior to disclosure by Buyer or was independently developed by Seller without use of or
reference to Buyer’s or Customer’s information, or (d) is disclosed pursuant to law, regulation or lawful
order or process. In such event, Seller shall promptly notify Buyer of the disclosure requirement to permit
Buyer to oppose or limit such disclosure. Notwithstanding anything to the contrary in this Order, any
confidentiality or nondisclosure agreement between the parties that predates this Order will remain in effect
except as expressly modified by this Order, and to the extent of a conflict between the express terms of
such an agreement relating to Buyer's or Customer’s confidential information and this Section 24, the terms
of that agreement will control with respect to Buyer's and Customer’s confidential information.
25.
Seller’s Property. Seller, at its expense, will furnish, keep in good working condition capable of
producing Supplies meeting all applicable specifications, and replace when necessary, all materials,
machinery, equipment, tools, jigs, dies, gauges, fixtures, molds, patterns, blueprints, designs, specifications,
drawings, photographic negatives and positives, art work copy layout and other items that are not Buyer’s
Property and that are necessary for the production of Supplies under any Order (“Seller’s Property”). Seller
will insure Seller’s Property with full fire and extended coverage insurance for its replacement value. If
Seller uses Seller’s Property to produce goods or services similar to Supplies for other customers, including
aftermarket customers, such goods or services will not incorporate any of Buyer’s Property, logos,
trademarks, tradenames or part numbers. Seller will not disclose or imply in its marketing efforts that such
goods or services are equivalent to those purchased by, or configured for, Buyer. Seller grants to Buyer an
irrevocable option to take possession of and title to Seller’s Property that is special for production of
Supplies under an Order (including, by way of example, and without limitation, Seller’s Property specially
designed or configured for the manufacture or assembly or other processing of Supplies), upon payment to
Seller of its net book value less any amounts that Buyer has previously paid to Seller for the cost of such
items, or (if applicable) any such other amount as may be required by applicable law. This option does not
apply if Seller’s Property is used to produce goods that are the standard stock of Seller or if a substantial
quantity of like goods are being sold by Seller to others. Buyer’s option rights under this Section with
respect to Seller’s Property are intended to be subject to Buyer’s rights and elections under 11 USC Section
365(n), as and to the extent that such Seller’s Property represents embodiments of intellectual property,
including intellectual property licensed by Seller to Buyer under Section 23(c) above.
25.
Tooling; Capital Equipment. This Section applies only to orders for tooling. For capital
equipment, the following alternate terms and conditions shall apply: http://www.johnsoncontrols.com/aeterms. (a) Seller will provide to Buyer, as requested, access to Seller’s premises and all documentation
relating to the tooling, prior and subsequent to payment, to inspect work performed and to verify charges
submitted by Seller against the Order. For any tooling or parts thereof that Seller obtains from any third
party, Seller will provide Buyer with such access and documentation to the ultimate production source.
Seller will have ninety (90) days from the date Buyer notifies Seller of Buyer’s intention to audit Seller to
provide the requested access and copies of requested documentation for Buyer’s exclusive use and records.
Any information submitted following such ninety (90) day period will not be considered by Buyer. The
price set forth in the Order will be adjusted to credit Buyer in the amount, if any, by which the price
exceeds Seller’s actual cost as verified. If Seller’s primary business is to fabricate tooling, Seller will be
permitted a reasonable profit percentage as indicated by the Order. In the absence of a mutually-accepted
profit percentage. Buyer will determine a reasonable profit percentage following the completion of its
audit. Seller will invoice Buyer for (and Buyer will only be obligated to pay) the lower of Seller’s actual
cost plus such profit percentage or the amount set forth in the Order. Buyer’s audit to verify actual costs
will include without limitation, at Buyer’s option, copies of Seller’s cancelled checks and bank statements
and any other information necessary for Buyer to confirm the existence or absence of rebates, credits or
discounts provided to Seller by any third party relating to such tooling. If Seller does not provide such
access and documentation, Buyer may determine in its reasonable discretion an appropriate adjustment
based on information available to Buyer, including estimated costs, and Seller shall be responsible for
Buyer’s costs in determining such estimated costs. Seller will not disclose to any third party, except for its
attorneys and professional advisors who are required to maintain confidentiality, the results of such tooling
audits or any adjustments made by Buyer to the prices and amounts payable to Seller as a result of such
audit. Seller will retain (and cause its tooling sub-suppliers to retain) all cost records for a period of three
years after receiving final payment of the charges. All tools are to be made to Buyer’s specifications (or,
where directed by Buyer, those of Customers). Any exception to such specifications must be stated in
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
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writing on the Order or otherwise in a signed writing by Buyer. To the extent the Order expressly states that
it is for “tooling” and unless otherwise stated in the Order, freight terms are DDP Buyer’s facility – Freight
Collect, and Seller should not prepay or add freight charges. (b) Notwithstanding any other provision of
these Terms, and except as otherwise expressly agreed in writing, where Buyer is entitled to receive
reimbursement or other payment from a Customer for Supplies to be provided by Seller to Buyer under this
Order that constitute tooling, Seller shall be entitled to receive payment under the Order for such tooling
only after and to the extent of, and in proportion to, Buyer’s actual receipt of such reimbursement or other
payment from the Customer. (c) To the extent permitted by applicable law, any payments made by Buyer
for Buyer-owned tooling are expressly intended by Buyer to be held in trust for the benefit of any
subcontractor(s) used by Seller to produce the Buyer-owned Tooling that are covered by such payments
and Seller agrees to hold such payments as trustee in express trust for such subcontractor(s) until Seller has
paid the subcontractor(s) in full for the Buyer-owned Tooling. Seller acknowledges and agrees that such
subcontractor is an intended third party beneficiary of the terms of this Section 26(c) relating to the express
trust and as such, such tooling subcontractor shall have the right to enforce these terms of this Section 26(c)
directly against Seller in subcontractor's own name. Seller agrees that Buyer has no obligation to Seller or
Seller's tooling subcontractor under this Section other than making the payment to Seller in accordance
with a Tooling Purchase Order. In the event Seller's tooling subcontractor brings an action against Seller
under this section, Seller agrees that it will not join Buyer in any such action.
27.
Set-Off; Recoupment. In addition to any right of setoff or recoupment provided by law, all amounts
due to Seller will be considered net of indebtedness of Seller and its affiliates or subsidiaries to Buyer and
its affiliates or subsidiaries. Buyer will have the right to set off against or to recoup from any payment or
other obligation owed to Seller, in whole or in part, any amounts due to Buyer or its affiliates or
subsidiaries from Seller or its affiliates or subsidiaries. Buyer will provide Seller with a statement
describing any offset or recoupment taken by Buyer.
28.
Information Disclosed to Buyer. Seller agrees not to assert any claim against Buyer, Customers, or
their respective suppliers, with respect to any technical information that Seller has disclosed or may
disclose to Buyer in connection with the Supplies covered by the Order, except to the extent expressly
covered by a separate written confidentiality and/or license agreement signed by Buyer or by a valid patent
expressly disclosed to Buyer prior to or at the time of the Order.
29.
No Publicity. Seller will not advertise, publish or disclose to any third party (other than to Seller’s
professional advisors on a confidential and need-to-know basis) in any manner the fact that Seller has
contracted to furnish Buyer the Supplies covered by the Order or any terms of the Order (including prices),
or use any trademarks or trade names of Buyer in any press release, advertising or promotional materials,
without first obtaining Buyer’s written consent.
30.
Relationship of Parties. Seller and Buyer are independent contracting parties and nothing in the
Order will make either party the employee, agent or legal representative of the other for any purpose. The
Order does not grant either party any authority to assume or to create any obligation on behalf of or in the
name of the other. Seller will be solely responsible for all employment and income taxes, insurance
premiums, charges and other expenses it incurs in connection with its performance of the Order, except as
expressly provided in a written agreement signed by Buyer. All employees and agents of Seller or its
respective contractors are employees or agents solely of Seller or such contractors, and not of Buyer, and
are not entitled to employee benefits or other rights accorded to Buyer’s employees. Buyer is not
responsible for any obligation with respect to employees or agents of Seller or its contractors.
31.
Conflict of Interest. Seller represents and warrants that its performance of the Order will not in any
way conflict with any continuing interests or obligations of Seller or its employees or contractors. Seller
further warrants that while the Order is in effect, Seller and those of its employees and contractors
participating in the performance of the Order will refrain from any activities which could reasonably be
expected to present a conflict of interest with respect to Seller’s relationship with Buyer or its performance
of the Order, including without limitation, the provision of (or attempts to provide) Supplies directly to
Customers without Buyer’s express written consent.
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
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32.
Assignment. (a) Seller may not, without Buyer’s prior written consent (on the face of an Order or in
a signed writing by an authorized representative of Buyer), (i) assign or delegate (including without
limitation by subcontract) its obligations under the Order, or (ii) enter or offer to enter into a transaction
that includes a sale of a substantial portion of its assets used for the production of the Supplies for Buyer or
a merger, sale or exchange of stock or other equity interests that would result in a change of control of
Seller. In the event of any approved assignment (including without limitation subcontract), sale or
delegation authorized by Buyer, Seller retains all responsibility for Supplies, including all related
warranties and claims, unless otherwise expressly agreed in writing by Buyer. (b) With Buyer’s prior
written consent, Seller may make an assignment of receivables due or to become due to a single financial
institution; provided, however, that any such assignment shall be subject to set-off (see Section 27 above)
or other proper method of enforcing any claims that Buyer may have under the Order. (c) Buyer will have
the right to assign any benefit or duty under an Order to any third party upon notice to Seller with or
without consent.
33.
Sales Tax Exemption. The Supplies purchased under the Order are identified as industrial
processing and may be exempt from sales taxes. In such case, the tax identification number and/or other
exemption information are stated in the Order or as otherwise provided by Buyer.
34.
Governing Law; Arbitration; Jurisdiction. The Order is to be construed according to and will be
governed by the laws of the State of Michigan and the United States of America. The provisions of the
United Nations Convention on Contracts for the International Sale of Goods, and any conflict-of-laws
provisions that would require application of another choice of law, are excluded. The arbitration provisions
of this Section will be governed by the United States Federal Arbitration Act. At Buyer’s option, exercised
by written notice any time before or within 30 days following the service of process in a legal action, any
dispute regarding the Supplies, the Order, the validity of the Order or any of these Terms, or any other
matter between the parties (other than requests for equitable or injunctive relief or specific performance)
will be resolved by binding arbitration, conducted in the English language using a single arbitrator as
follows: (a) the arbitration will be conducted under the commercial arbitration rules of the American
Arbitration Association (AAA) and under Rules 26 through 37 of the U.S. Federal Rules of Civil
Procedure, in a location agreed by the parties; (b) if the parties cannot agree on a location within 30 days of
either party’s written request for arbitration, the arbitration will be conducted in metropolitan Detroit,
Michigan, USA; and (c) the arbitrator will be selected from an AAA list using the AAA-recommended
selection method. The arbitrator will issue written findings of fact and conclusions of law. Each party will
bear equally the costs and expenses of AAA and of the arbitrator, and each party will bear its own costs and
expenses – provided, however, (1) that the failure by one party to pay its share of arbitration fees
constitutes a waiver of such party’s claim or defense in the arbitration, and (2) that the arbitrator may award
attorneys’ fees and costs to the substantially prevailing party. In no event will any party be awarded
punitive or exemplary damages or any other damages not measured by the prevailing party’s actual
damages. All arbitration proceedings shall be confidential, except to the extent that disclosure is necessary
to enforce an arbitration award in a court of competent jurisdiction. The award of the arbitrator will be
enforceable in any court of competent jurisdiction, provided that either party may appeal to the U.S.
District Court for the Eastern District of Michigan, for correction of any clear error of fact or law by the
arbitrator (provided that the appealing party must first post an appropriate bond and that the prevailing
party in any such action will be entitled to its attorneys’ fees and costs). In all other cases, including any
request for equitable or injunctive relief, the parties agree and consent to the exclusive jurisdiction of the
Circuit Court for Wayne County, Michigan or the U.S. District Court for the Eastern District of Michigan,
as applicable, provided that Buyer may elect to bring an action against Seller in any court having
jurisdiction over Seller.
35.
Language; Severability; No Implied Waiver. The parties acknowledge that it is their wish that these
terms and all documents relating thereto be in the English language only. If any term of the Order is invalid
or unenforceable under any statute, regulation, ordinance, executive order or other rule of law, the term will
be deemed reformed or deleted, as the case may be, but only to the extent necessary to comply with
applicable law. The remaining provisions of the Order will remain in full force and effect. The failure of
either party at any time to require performance by the other party of any provision of the Order will not
affect the right to require performance at any later time, nor will the waiver of either party of a breach of
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
18
any provision of the Order constitute a waiver of any later breach of the same or other provision of the
Order.
36.
Survival. The obligations of Seller to Buyer survive termination of the Order, except as otherwise
provided in the Order.
37. Waiver of Jury Trial. BUYER AND SELLER ACKNOWLEDGE THAT THE RIGHT TO TRIAL
BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH OF BUYER
AND SELLER, AFTER CONSULTING (OR HAVING THE OPPORTUNITY TO CONSULT) WITH
COUNSEL OF ITS CHOICE, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES
ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR OTHER LEGAL PROCEEDING ARISING
OUT OF OR RELATING TO ANY ORDER OR OTHER DOCUMENT PERTAINING TO ANY
ORDER.
38. Entire Agreement; Modifications; Buyer’s Website. (a) Except as described in Section 1, the Order,
together with the attachments, exhibits, supplements or other terms of Buyer specifically referenced
therein, constitutes the entire agreement between Seller and Buyer with respect to the matters contained in
the Order. The Order may only be modified (1) by a written amendment executed by authorized
representatives of each party or, (2) for changes within the scope of Section 9, by a purchase order
amendment issued by Buyer. (b) Buyer may modify purchase order terms and conditions from time to time
by posting revised purchase order terms and conditions to Buyer’s internet website (or such other website
as may be directed through links available on such website) as specified on the face of the Order (“Buyer’s
Website”) at http://www.johnsoncontrols.com/ae-terms, prior to the date when any modified terms and
conditions become effective. Such revised purchase order terms and conditions shall apply to all purchase
order revisions/amendments and new Orders issued on or after the effective date thereof. Seller shall be
responsible to review Buyer’s Website periodically. (c) Buyer’s Website may also contain specific
additional requirements for certain items covered by this Order, including labeling, packaging, shipping,
delivery and quality specifications, procedures, directions and/or instructions. Any such requirements shall
be deemed to form part of the Terms and the Order. Buyer may periodically update such requirements by
posting revisions thereto on Buyer’s Website. In the event of any inconsistency between the Order and
Buyer’s Website, the terms of the Order shall prevail, unless the requirements specified on Buyer’s Website
expressly provide otherwise.
39. Claims by Seller. Any legal action or arbitration proceeding by Seller under any Order must be
commenced no later than one (1) year after the breach or other event giving rise to Seller’s claim occurs, or
Seller becomes aware of the existence (or facts and circumstances giving rise to the existence) of such
claim, whichever occurs first.
40. Battle of the Forms Not Applicable. The parties have agreed and it is their intent that the battle of the
forms Section 2-207 of the Uniform Commercial Code shall not apply to these Terms or to any invoice or
acceptance form of Seller relating to these Terms. It is the parties’ intent that these Terms shall exclusively
control the relationship of the parties, and in the event of any inconsistency between any invoice or
acceptance form sent by Seller to Buyer and these Terms, these Terms shall control.
41. Equal Employment Opportunity.
The parties hereby incorporate by reference the
requirements of 41 C.F.R. §§ 60-1.4(a), 60-300.5(a) and 60-741.5(a), if applicable. This contractor
and subcontractor shall abide by the requirements of 41 C.F.R. §§ 60-1.4(a), 60-300.5(a) and 60741.5(a). These regulations prohibit discrimination against qualified individuals based on their
status as protected veterans or individuals with disabilities, and prohibit discrimination against all
individuals based on their race, color, religion, sex, sexual orientation, gender identity or national
origin. Moreover, these regulations require that covered prime contractors and subcontractors take
affirmative action to employ and advance in employment individuals without regard to race, color,
religion, sex, sexual orientation, gender identity, national origin, protected veteran status or
disability.
Johnson Controls, Inc.  Automotive Experience Terms and Conditions of Purchase United States  Page
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