LIMITED WARRANTY

Bay Corrugated Container, Inc. (“Bay Corrugated”) warrants, to the original purchaser, its products to be free from defects in material and workmanship under normal use and service for a period of six (6) months from the date of delivery. During the warranty period Bay Corrugated will replace or refund the purchase price of all materials which prove to its satisfaction to be defective with new materials of the same or similar type. This warranty shall not apply to any products which have been subject to accident, negligence, abuse or misuse.

THE ABOVE WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES AND BAY CORRUGATED MAKES NO FURTHER WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR USE. FINAL DETERMINATION OF THE SUITABILITY OF THE PRODUCTS DESCRIBED ON THE FACE OF THIS INVOICE FOR THE USE CONTEMPLATED BY PURCHASER IS THE SOLE RESPONSIBILITY OF PURCHASER, AND BAY CORRUGATED SHALL IN NO WAY BE RESPONSIBLE FOR THE SUITABILITY OF THE PRODUCTS FOR ANY PARTICULAR END USE.

BAY CORRUGATED’S LIABILITY AND PURCHASER’S EXCLUSIVE REMEDY FOR PRODUCTS WHICH FAIL TO MEET SPECIFICATIONS SHALL BE LIMITED TO REPLACEMENT, REPAIR, CREDIT OR ALLOWANCE, AS BAY CORRUGATED MAY ELECT. BAY CORRUGATED SHALL NOT BE LIABLE FOR ANY BREACH OF THIS AGREEMENT, OR OF ANY DUTY OR OBLIGATION ARISING OUT OF OR RELATED TO THE SALE OF THE PRODUCTS DESCRIBED ON THE FACE OF THIS INVOICE, IN ANY AMOUNT IN EXCESS OF THE PURCHASE PRICE OF THE PRODUCTS WITH RESPECT TO WHICH SUCH BREACH OCCURS, AND BAY CORRUGATED SHALL NOT BE LIABLE IN ANY EVENT FOR LOST PROFITS, DOWN TIME OR LOSS OF OR DAMAGE TO CONTENTS OR FOR SPECIAL OR CONSEQUENTIAL DAMAGES, ALL OF WHICH PURCHASER HEREBY EXPRESSLY WAIVES.

Any default by Purchaser in the payment of any amount when due under this Invoice, or any failure by Purchaser to fulfill any other obligation pertaining to the purchase of the products described on the face hereof, shall entitle Bay Corrugated, at its option, to all remedies available to it at law or in equity, including, without limitation, retaining all printing and cutting dies, master plates or wood cuts which are in Bay Corrugated’s possession (whether such dies and plates are owned by Bay Corrugated or by Purchaser) until such time as all such defaults by Purchaser have been cured to the satisfaction of Bay Corrugated.

Any action against Bay Corrugated arising out of the sale or use of the products described on the face of this Invoice, or by reason of any state or federal statutory provision relating thereto, shall be commenced within one (1) year from the date such cause of action arises; otherwise the same shall be barred notwithstanding any statutory period of limitations to the contrary.

Notwithstanding any warranties or terms and conditions which appear on any documents of any nature whatsoever provided by Purchaser, the parties hereto agree that the sole terms, conditions, and warranties of this sale are limited to those set forth above. Any inconsistent provisions in any order or form of Purchaser’s shall not be binding on Bay Corrugated unless accepted in writing by an authorized representative of Bay Corrugated. Purchaser hereby agrees that acceptance of the products shipped to it under its purchase order shall constitute an acceptance by Purchaser of all of the terms of this Limited Warranty as set forth above.