Common use of Product Regulatory Compliance Clause in Contracts

Product Regulatory Compliance. Product regulatory compliance for the “Snap-on Incorporated” branded products (including, without limitation, SNAP-ON, BLUE-POINT, XXXXXXXX, BAHCO, SIOUX and CDI) includes safety approvals and certifications, radio transmission certification, EMC compliance as well as environmental requirements including energy efficiency. From time to time, governmental authorities issue product-based directives that regulate product content in a manner which restricts ingredients or imparts a ban on the sale of non-compliant products or packaging in designated geographic regions. Examples include, without limitation, RoHS, WEEE, decaBDE, REACH and DMF regulations in the European Union, and Proposition 65 in California. In addition, Snap-on is subject to regulations regarding CONFLICT MINERALS as set forth in Section 13(p) of the Securities Exchange Act of 1934, and any rules and regulations promulgated from time to time with respect thereto (the “Conflict Minerals Rules”). Under no circumstances will banned substances be present in any Snap-on branded products, or used in the processes used to manufacture Snap-on branded products. Restricted substances that are not banned, should, if possible, be avoided and replaced with acceptable alternatives. To ensure there is no interruption in Snap-on’s supply chain, Snap-on requires its suppliers to comply with the product requirements applicable to the goods supplied based on the locations of Snap-on’s customers or ultimate end recipients .The Supplier will comply with all applicable product requirements, and will immediately notify Snap-on in a mailed writing or by e-mail, with a confirmed response of receipt, of any change in compliance (resulting from changes to the Product(s) or to the applicable requirements) that could impact Product supply or distribution. Supplier will also complete and sign specific Snap-on compliance surveys upon request, and agree to undergo periodic audits conducted by Snap-on, or by a third party designated by Snap-on, to verify compliance with applicable product requirements and to enable Snap-on to comply with its obligations under the Conflict Minerals Rules or other similar regulations. As requirements change, Supplier is also responsible for timely response to future compliance requests that may become enacted after the date of this Agreement. Stop Sales, Recalls and Corrective Actions. Supplier will immediately notify Snap-on in writing and by e-mail of any potential or actual stop sale, product recall or corrective action on any Product sold to Snap-on, and consult with Snap-on prior to undertaking any action in connection therewith. Supplier will, upon request, immediately reimburse Snap-on for all costs, expenses, losses and damages, including, without limitation, business interruption costs, associated with the stop sale, product recall or corrective action involving any Product. The business interruption costs include, but are not limited to, reasonable cost with identification and notification of customers as well as the processing of a recall through Snap-on’s system (including labor and materials for the repair and replacement of Products, freight and handling charges, customer service, administration, etc.). Nothing in this section prevents Snap-on from taking any corrective action necessary or appropriate for Products that are branded with Snap-on Marks and Supplier will reimburse Snap-on for all costs, expenses, losses and damages Snap-on incurs as stated in this section and the Indemnification section.

Product Regulatory Compliance. Product regulatory compliance for the “Snap-on Incorporated” branded products (including, without limitation, SNAP-ON, BLUE-POINT, XXXXXXXX, BAHCO, SIOUX and CDI) includes safety approvals and certifications, radio transmission certification, EMC compliance as well as environmental requirements including energy efficiency. From time to time, governmental authorities issue product-product- based directives that regulate product content in a manner which restricts ingredients or imparts a ban on the sale of non-compliant products or packaging in designated geographic regions. Examples include, without limitation, RoHS, WEEE, decaBDE, REACH and DMF regulations in the European Union, and Proposition 65 in California. In addition, Snap-on is subject to regulations regarding CONFLICT MINERALS as set forth in Section 13(p) of the Securities Exchange Act of 1934, and any rules and regulations promulgated from time to time with respect thereto (the “Conflict Minerals Rules”). Under no circumstances will banned substances be present in any Snap-on branded products, or used in the processes used to manufacture Snap-on branded products. Restricted substances that are not banned, should, if possible, be avoided and replaced with acceptable alternatives. To ensure there is no interruption in Snap-on’s supply chain, Snap-on requires its suppliers to comply with the product requirements applicable to the goods supplied based on the locations of Snap-on’s customers or ultimate end recipients .The Supplier will comply with all applicable product requirements, and will immediately notify Snap-on in a mailed writing or by e-mail, with a confirmed response of receipt, of any change in compliance (resulting from changes to the Product(s) or to the applicable requirements) that could impact Product supply or distribution. Supplier will also complete and sign specific Snap-on compliance surveys upon request, and agree to undergo periodic audits conducted by Snap-on, or by a third party designated by Snap-on, to verify compliance with applicable product requirements and to enable Snap-on to comply with its obligations under the Conflict Minerals Rules or other similar regulations. As requirements change, Supplier is also responsible for timely response to future compliance requests that may become enacted after the date of this Agreement. Stop Sales, Recalls and Corrective Actions. Supplier will immediately notify Snap-on in writing and by e-mail of any potential or actual stop sale, product recall or corrective action on any Product sold to Snap-on, and consult with Snap-on prior to undertaking any action in connection therewith. Supplier will, upon request, immediately reimburse Snap-on for all costs, expenses, losses and damages, including, without limitation, business interruption costs, associated with the stop sale, product recall or corrective action involving any Product. The business interruption costs include, but are not limited to, reasonable cost with identification and notification of customers as well as the processing of a recall through Snap-on’s system (including labor and materials for the repair and replacement of Products, freight and handling charges, customer service, administration, etc.). Nothing in this section prevents Snap-on from taking any corrective action necessary or appropriate for Products that are branded with Snap-on Marks and Supplier will reimburse Snap-on for all costs, expenses, losses and damages Snap-on incurs as stated in this section and the Indemnification section.