UTAH MEDICAL PRODUCTS, INC. (UTMD)
COLUMBIA MEDICAL, INC. (CMI)

The terms and conditions set forth below supersede the terms and conditions of any purchase orders or similar documents submitted by you ("Purchaser") to UTMD or CMI with respect to the purchase of the products described in this pricing catalog, except as per item 13 below.

No terms or provisions of any purchase orders or similar documents submitted by the Purchaser and no waiver, alteration, modification of any of the terms and provisions set forth shall be effective or binding on UTMD and its subsidiaries, unless in writing and signed by an authorized officer of UTMD. Acceptance of the products by Purchaser constitutes an agreement by Purchaser to be bound by these terms and conditions.

1. Acceptance of Orders

All customer purchase orders are subject to acceptance by UTMD at Midvale, UT or Redmond, OR solely on the terms and conditions set forth below.

2. Terms of Payment

Net thirty (30) days from date of invoice. Balances unpaid after thirty days may incur a service charge at the rate of 1.5% per month (or the maximum rate permitted by law, if less) until paid. Purchaser agrees to reimburse UTMD for any legal fees incurred by UTMD to collect amounts to which it is entitled.

3. Warranty, Disclaimer and Limitation of Liability

UTMD warrants products to be free from defects in workmanship and material and in material compliance with all published product specifications in effect on the date of shipment for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment. During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price. The foregoing remedies shall be Purchaser's sole and exclusive remedies under this warranty. In the event Purchaser makes any modifications or alterations to the Products, the foregoing warranties shall be void and of no further force or effect. EXCEPT FOR THE FOREGOING WARRANTIES, THE PRODUCTS ARE SOLD AS-IS AND WITHOUT ANY OTHER WARRANTY OF ANY NATURE WHATSOEVER. UTMD HAS NOT MADE AND DOES NOT MAKE ANY OTHER REPRESENTATION, WARRANTY, GUARANTY, OR COVENANT, EXPRESS OR IMPLIED WITH RESPECT TO THE DESIGN, CONDITION, DURABILITY, SUITABILITY, FITNESS FOR USE, FITNESS FOR A PARTICULAR PURPOSE, OR MERCHANTABILITY OF THE PRODUCTS IN ANY RESPECT. UNDER NO CIRCUMSTANCES AND IN NO EVENT WHETHER AS A RESULT OF BREACH OF CONTRACT OR WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE SHALL UTMD BE LIABLE FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS OR OTHER ECONOMIC LOSS. IN NO EVENT SHALL UTMD'S LIABILITY TO THE PURCHASER WITH RESPECT TO THE PURCHASE OF A PRODUCT EXCEED THE PURCHASE PRICE FOR SUCH PRODUCT.

4. Product Specifications

UTMD reserves the right to change or modify product specifications in its sole discretion from time to time provided, however, that no such change or modification shall be applicable to products previously shipped by UTMD which shall continue to be governed by the warranty in effect on the date of shipment.

5. Product Liability Indemnification

Upon written notice to UTMD provided within thirty (30) days of the date Purchaser first learns of a potential claim arising out of the use of UTMD’s product, UTMD shall indemnify, save harmless, and at Purchaser’s written request defend Purchaser against any and all claims, loss, damages, liabilities, costs, expenses (including reasonable attorneys’ fees) incurred in connection with personal injury (including death) or damage to property caused by a defect in UTMD’s product or the willful misconduct or negligence of UTMD or its agents or employees; provided, however, that UTMD shall have no obligation to indemnify a Purchaser with respect to any Claim arising out of the negligence or willful misconduct of such Purchaser or its employees, agents and partners; such negligence or willful misconduct shall include, without limitation, their use of a UTMD’s product other than as labeled and/or other than in a manner consistent with the product’s instructions for use. A Purchaser shall be entitled to indemnification hereunder only if: (i) the Purchaser notifies UTMD promptly in writing within thirty (30) days of the date Purchaser first learns of a Claim or potential Claim; (ii) UTMD has sole control over the defense of the Claim and any negotiation for its settlement or compromise; (iii) the Purchaser has not taken and does not take any action that is contrary to UTMD’s interest; and (iv) the Purchaser cooperates with UTMD in the investigation and defense of any Claim covered by this indemnity. In the event that a Claim is caused by the negligence of UTMD and Purchaser (or their respective employees and agents), UTMD and Purchaser agree that liability for such Claim shall be allocated between them based upon a comparative negligence standard.

6. Other Indemnification

UTMD shall also indemnify Purchaser from any third party claims of infringement of any copyright or patent related to Purchaser's use of UTMD's products.

7. Returns

Purchaser must obtain authorization from UTMD Corporate Office prior to returning any products, and to qualify for credit, products must be returned, transportation prepaid, within thirty (30) days of original shipment date in same condition as received, and in original cartons. Restocking charges of 20-30% may be imposed.

8. Taxes

The amount of any present or future federal, state, or local taxes required to be collected or paid by UTMD will be added to the invoice and paid by the purchaser. Tax exempt institutions must provide UTMD with a signed tax exemption certificate, or taxes will be added to the invoice.

9. Shipments

UTMD shall not be liable and assumes no responsibility for any loss or damage sustained by Purchaser due to inability to meet a specified delivery date. Shipping discrepancies must be reported within ten (10) days from receipt of merchandise.

10. Shipping Policy

All products are sold F.O.B. UTMD's Midvale UT facility or CMI’s Redmond OR facility, as applicable, via United Parcel Service or best way, unless modified in advance per Paragraph 13 below. Freight charges will be prepaid by UTMD. UTMD reserves the right to make deliveries through its own means where possible. Insurance, if required, must be specified by the customer and at its own cost.

11. Cancellations

Custom orders cannot be cancelled after acceptance by UTMD except upon terms that will fully compensate UTMD's incurred costs.

12. Force Majeure

UTMD shall not be liable for loss, damage, delay, or failure to deliver caused by accident, labor disputes, flood, earthquakes, riots, fire, civil commotion, insurrection, war, the elements, embargoes, failure of carriers, inability to obtain transportation facilities, government regulations, acts of God or the public enemy or limitations of UTMD or its suppliers, production or marketing activities or any other causes or contingencies beyond its control.

13. Entire Agreement, Amendments, Special Terms

This Agreement contains the entire and only agreement between the parties respecting sale of products referred to herein, and all prior and collateral representations, promises and conditions in connection therewith are superseded hereby. No modification waiver or termination of any provisions contained in this Agreement nor any future representation, promise or conditions in connection with the subject matter hereof shall be binding upon UTMD or Purchaser unless made in writing and signed by an officer or other authorized representative thereof. In some cases, a GPO contract may supersede the terms and conditions herein.

14. Electronic Exchanges

Customers which use GHX or a similar exchange as a method of placing orders with UTMD agree that all transaction data shall remain strictly confidential and shall not be reported to any third party, including the exchange.

15. Choice of Law

This Agreement shall be interpreted and construed in accordance with the laws of the state of Utah.

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