GENERAL:
The quotation set forth herein is submitted for the Purchaser’s consideration. Because of the rapidly changing character of the product and the cost of component parts thereof, Contour Hardening, Inc. (C.H.I.) reserves the right of final acceptance on all purchase orders unless the quotation specifies otherwise.

The quotation associated with this Specification is made on a firm basis for a period of 30 days unless extended in writing by Contour Hardening, Inc. After the expiration of this specified period, price quotations are subject to change without notice. Prices quoted are F.O.B. our plant unless otherwise stated.

Unless otherwise stated, all quotations are subject to the condition that they be accepted in their entirety. Partial acceptance of firm quotations shall not be binding upon C.H.I.

DELIVERY DATES:
Delivery dates are based upon the schedule provided on the quote. Unless otherwise specified all deliveries assume Ex-Works C.H.I. Indianapolis, Indiana U.S.A. and thereafter, risk of loss and damage will be upon the Purchaser. The shipping date is calculated from the date of C.H.I.’s final acceptance on all purchase orders unless the quotation specifies otherwise.

C.H.I. will not be liable for delays in production or delivery resulting from acts of God, acts of the Purchaser, acts of civil or military authority, fires, strikes, lockouts, floods, epidemic, war, riots, inability to obtain materials, or without limitation by the foregoing, any other causes beyond the control of C.H.I.

Penalty clauses for failure to meet shipment dates are not acceptable unless the Purchaser has obtained specific written approval from C.H.I.

CHI STANDARD TERMS OF PAYMENT:
Payment terms will be C.O.D. or Ex-Works unless otherwise negotiated.

TITLE:
All items sold by C.H.I. shall remain the personal property of C.H.I., and the title and right of possession thereto shall remain in C.H.I. until all payments hereunder have been paid in full. The Purchaser shall take all necessary steps to protect such right and title for C.H.I., and the Purchaser shall execute and deliver to C.H.I. such documents, as C.H.I. may deem necessary to secure such right and title.

SOFTWARE:
All software developed by C.H.I. remains the property of C.H.I. and is subject to a License Agreement.

CANCELLATION AND CHANGE ORDER POLICY:
Once a Purchase Order is accepted by C.H.I., it cannot be canceled or modified by the Purchaser except with the written consent of C.H.I. Even if such consent is granted, the Purchaser shall pay to C.H.I. a reasonable and proper cancellation charge or change charge based upon expenses already incurred and any additional expenses/commitments incurred by C.H.I. Changes and modifications to original orders will result in an appropriate extension to the delivery date.

LIMITED WARRANTY:
C.H.I. hereby warrants to the Purchaser of the Real PowerTM chassis integrated A.C. generator system (SYSTEM) that the System will be free of defects in material and workmanship from the date of installation marked on the warranty registration card or other written documents that independently collaborate the installation date. If the installation date cannot be verified the warranty will begin 30 days after the date of shipment from C.H.I. as follows:

All rotating parts and components (excluding belts): 1 year
Electrical Distribution-Outlet box and components therein: 1 year
Repair or replacement parts: 90 days*
Paint or coating on all components: Not Warranted

Repair or replacement parts are also warranted for ninety (90) days from the date of shipment from C.H.I. Any part repaired or replaced during the warranty period assumes the remainder of the original System warranty or ninety (90) days, whichever is greater. PROVIDED that the System is operated in accordance with the operating instructions included with all shipments. C.H.I. may require reasonable proof of date of purchase. THEREFORE PURCHASER SHOULD RETAIN THE SALES RECEIPT OR INVOICE.

Defective parts must be returned to C.H.I. for inspection before they can be covered under this warranty. Parts or a System returned to C.H.I. without prior authorization will not be accepted. After C.H.I. confirms the defect and approves the warranty claim, C.H.I. will authorize the replacement of the defective part(s). For confirmed and approved warranted repairs, C.H.I. will pay for the parts to repair or replace the defective parts or System. C.H.I. will not pay for labor to disassemble or reassemble the System unless the system was installed by C.H.I. and it is still under warranty. Systems installed by C.H.I. must be repaired by C.H.I. in Indianapolis, Indiana for disassembly and reassembly to be covered under warranty.

C.H.I. retains the right to make ALL subjective decisions regarding warranty claims.
Labor to repair or replace parts will occur only during normal business hours, overtime to expedite repair or replacement will not be covered under warranty.

Any and all labor provided by the Purchaser, an agent of the Purchaser or any other party other than C.H.I., either during the original installation or repair, is not covered under C.H.I.’s warranty.

PURCHASER’S RESPONSIBILITIES:
Purchaser is obligated to operate and maintain the System in accordance with the recommendations and instructions contained herein. Purchaser is responsible for the costs associated with such use, maintenance and adjustments that may be required.

All warranty claims must be brought to C.H.I.’s attention within a reasonable time, preferably within thirty (30) days, after the discovery that the System fails to meet this warranty.

Purchaser is responsible for payment of any of the following expenses that might be incurred as a result of a failure under the terms of this Limited Warranty:

1. Shipping or delivery to C.H.I. for parts or a System covered under this warranty;

2. rental equipment used to replace the System or the vehicle on which the System is mounted during the time the System and vehicle are being repaired;

3. telephone and other communication expenses;

4. living and travel expenses;

5. the premium costs for overtime labor requested by the Purchaser to expedite the repair;

6. the cost of airfreight or other extraordinary expenses for shipment of parts over and above premium surface transportation;

7. failures due to normal wear or excessive wear, lack of reasonable and necessary maintenance, accident, misuse, abuse, negligence in operation or maintenance, unauthorized modifications or repairs, use of add-on or modified parts not supplied by C.H.I., improper storage, vandalism, and improper installation or improper maintenance or service;

8. transportation of vehicle to designated repair facility; and

9. failures due to electrical overload or short circuits.

WARRANTY LIMITATIONS:
This Limited Warranty shall be limited to the repair or replacement of parts that prove defective under normal use and service and which upon examination shall indicate to C.H.I.’s satisfaction they are defective. This Limited Warranty will not cover repair where normal use has exhausted the life of a part of the System or the entire System. Like all other mechanical devices, this System needs periodic parts replaced and service to perform well. The service life of the System is dependent on the care that it receives and the conditions under which it operates. Extreme heat and/or dusty or dirty conditions can cause excessive wear. EXCESSIVE WEAR, when caused by improper maintenance or operation, is NOT COVERED by this Limited Warranty.

Use of this System on a vehicle used for snow removal causes excessive wear and is not covered under this warranty.
This Limited Warranty does NOT cover any failures or operating difficulties due directly or indirectly to normal or excessive wear, collision, negligence or accidents, abuse, misuse, unauthorized modifications – alterations – or the use of add-on or modified parts not supplied by C.H.I., vandalism, improper installation or improper maintenance or service, or failure to perform normal and routine maintenance. Deterioration or damage due to severe weather conditions such and hurricanes, earthquakes or tornadoes and exposure to corrosive chemicals either direct or in the atmosphere, is not covered by this Limited Warranty. Damage associated with ground clearance under the vehicle is not covered by this Limited Warranty. THERE ARE NO OTHER EXPRESS WARRANTS and any applicable implied warranties of merchantability and fitness for a particular purpose are limited in duration to the period of coverage of this express written Limited Warranty. TO THE EXTENT PERMITTED BY LAW, ANY AND ALL IMPLIED WARRANTIES ARE EXCLUDED. Some regions do not allow limitation on how long an implied warranty lasts, so this limitation may not apply to Purchaser.

C.H.I. is NOT LIABLE for any special, incidental, indirect, contingent, or consequential damages arising from the use of the System. Some regions do not allow limitation or exclusion of incidental or consequential damages, so this limitation may not apply to Purchaser. This Limited Warranty gives you specific legal rights. You may also have other rights that may vary from state to state or province.

C.H.I. does NOT authorize any person or company to assume for it any other obligation or liability in connection with the sale, installation, use, removal, return, or replacement of its equipment; and no such representations are binding on C.H.I.

CHI MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND TO THE PURCHASER THAT HE OR SHE IS QUALIFIED TO MAKE ANY REPAIRS TO THE SYSTEM OR THAT HE OR SHE IS QUALIFIED TO REPLACE ANY PARTS OF THE SYSTEM. THE PURCHASER ASSUMES ALL RISK AND LIABILITY ARISING OUT OF HIS OR HER REPAIRS TO THE SYSTEM OR REPLACEMENT PARTS THERETO, OR ARISING OUT OF HIS OR HER INSTALLATION OF REPLACEMENT PARTS THERETO.
LIMITATION OF REMEDY:

The sole remedy for the Purchaser against C.H.I. for breach of the limited warranty of material, workmanship, and the title of the equipment, noted above, or for any other breach of this contract shall be as follows: C.H.I. shall correct any defect at its option, either by repairing or replacing any defective equipment.

LIMITATION OF LIABILITY:
The parties expressly agree that under no circumstances shall C.H.I. be liable to the Purchaser for any special, indirect, incidental, or consequential damages as a result of any breach under this contract. In addition, the parties expressly agree that C.H.I.’s total liability to the Purchaser whether in contract, in tort, under warranty, or otherwise arising out of the transaction shall not exceed the price of the product or part on which such liability is based.

INDEMNIFICATION:
The Purchaser expressly agrees to indemnify and save harmless C.H.I., its agents, employees, or representatives, from and against all liability, damage, loss or expense whatsoever (including costs and attorney’s fees) incurred by reason of liability imposed by law for damages incurred for bodily injury and property damage, including loss of use thereof, arising out of or in consequence of the contract between the parties.

PATENTS:
C.H.I. shall defend any suit or proceeding brought against Purchaser so far as it is based on a claim that any equipment as-shipped by C.H.I. hereunder (other than equipment designed or manufactured by others) constitutes an alleged infringement of any patent, if notified promptly in writing and given authority, information, and assistance for the defense of such, and provided such alleged infringement shall consist only in the use of the specific equipment as-shipped hereunder and not as part of any combination of other devices or parts or if modified after shipment from C.H.I. In case of a final award of damages in any suit, C.H.I. will pay such award.

TAXES:
The amount of any present or future sales, use, excise, value-added, or other similar tax applicable to the equipment sold hereunder shall be added to the purchase price and shall be paid by Purchaser as if originally added thereto.

BANKRUPTCY:
In the event of bankruptcy or insolvency of the Purchaser, or involuntarily under the bankruptcy or any insolvency laws, C.H.I. shall be entitled to cancel any order then outstanding and shall receive reimbursement for all expenses and costs incurred to date plus reasonable cancellation charges.

RETURNS:
Before returning any equipment to C.H.I., the Purchaser must obtain written authorization from C.H.I.

CLAIMS:

In case of a claim for defective equipment, C.H.I. shall be:
1. notified in writing
2. permitted to inspect the equipment before allowing or rejecting the Purchaser’s claim
3. given a reasonable opportunity to correct the problem.

RISK OF LOSS:
When the equipment is delivered by C.H.I. to a carrier, whether named by the Purchaser or not, the risk of loss or damage to the equipment shall thereafter be upon the Purchaser.

ASSIGNMENT
Any assignment by the Purchaser of any contract rights resulting from this quotation without the written consent of C.H.I. shall be void.