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Terms of Service

BREHOB CORPORATION – TERMS AND CONDITIONS

1. Payment Terms. Brehob’s standard credit terms are thirty (30) days net. Buyer agrees to pay interest at the rate of one and one-half percent (1-1/2%) per month on all delinquent accounts, together with costs of collection and reasonable attorney fees.

2. Shipment & Returns. Brehob’s standard prices are F.O.B. product ship-point. Freight charges will be added to the purchase price and paid by the Buyer. Method and route of shipment are at Brehob’s discretion, unless the Buyer supplied explicit instructions. All shipments are insured at the Buyer’s expense and made at the Buyer’s risk. In no event are products to be returned without first obtaining Brehob’s written consent. No products may be returned after 60 days from the shipping date. Product approved for return must be shipped postage or freight prepaid by the Buyer. A reasonable restocking charge will be made by Brehob.

3. Delay. Brehob will not be liable for any delay in the performance of orders or contracts, or in the delivery of products, or for any damages suffered by the Buyer by reason of such delay, when such delay is, directly or indirectly, cause by, or in any manner arises from fires, floods, accident, civil unrest, acts of God, war, governmental interference or embargoes, strikes, labor difficulties, shortage of labor, fuel, power, materials, supplies, transportation delays, unavailability of product, or any other cause or causes (whether or not similar in nature to any of these hereinabove specified) beyond Brehob’s control.

4. Prices & Taxes. Prices are subject to change without notice and orders calling for future delivery will be billed according to the price in effect at the time of shipment. Written quotations automatically expire thirty (30) calendar days from the date issues and are subject to termination by notice within that period, unless otherwise stated in writing. The amount of the present or future sales, revenue, excise or other taxes applicable to Brehob’s product shall be added to the purchase price and shall be paid by the Buyer, or in lieu thereof the Buyer shall provide Brehob with an acceptable tax exemption certificate.

5. Warranty – New Equipment. The Buyer’s sole remedy on new equipment is as provided for in the manufacturer’s warranty.

6. Warranty – Rebuilt Or Repaired Equipment. Subject to the conditions set forth in paragraph 7, all products which have been rebuilt or repaired by Brehob are warranted to be free from defects in material or workmanship as follows:

(a) Standard three phase motors, one horsepower and larger one year from

(b) Hoist, cranes and industrial pumps – 60 days from the date of shipment.

(c) Air Compressors: Remanufactured Units – one year; Repairs and Service –

(d) Fractional horsepower motors and all other equipment – 30 days from date of shipment. 60 days from date of shipment. 90 days from date of shipment.

7. Limitation of Warranty. The foregoing warranty on rebuilt and repaired equipment is subject to all of the following conditions.

(a) Any material or workmanship with Brehob’s examination shall disclose to have been defective will be replaced or repaired (at Brehob’s option) f.o.b. Brehob’s plant. Correction of defects by repair or replacement by Brehob shall be Buyer’s sole and exclusive remedy at law or in equity.

(b) This warrants is valid only if equipment is provided with suitable starting equipment and overload and low voltage protection as provided in National Electric Code, provided such products have been operated under proper load, usage, conditions, and competent supervision and if equipment is used within its design range.

(c) No claim or warranty honored if equipment has been tampered with before return to Brehob’s plant for inspection for a warranty claim. Brehob will not be responsible for any basic design weaknesses in the equipment or the misapplication of component parts.

(d) Brehob will duplicate exactly the electrical specifications of the windings and the component parts of motor and equipment and will not be responsible if such windings and component parts are incorrect.

(e) No warrants claims will be honored if defect is not reported within 48 hours after such defect becomes evident.

(f) If emergency handling is requested on warranty repairs, the extra cost incurred will be invoiced.

(g) If service is required in customer’s plant on warranty repairs of equipment sold by Brehob, serviceman’s time and travel expenses will be charged to and from customer’s plant.

8. Disclaimer. THERE ARE NO WARRANTIES MADE BY BREHOB, WHETHER EXPRESSED OR IMPLIED, EXCEPT AS STATED HEREIN. BREHOB MAKES NO WARRANTY OF MERCHANT ABILITY OR FITNESS OF THE PRODUCT FOR ANY PARTICULAR PURPOSE. BUYER AFFIRMS THAT IT HAS NOT RELIED UPON THE SKILL OR JUDGEMENT OF BREHOB OR ANY OF BREHOB’S AGENTS, EMPLOYEES OR REPRESENTATIVES TO SELECT OR FURNISH MATERIAL FOR ANY PARTICULAR PURPOSE.

9. Exclusive Remedy. The exclusive remedy of the Buyer with respect to this transaction shall be the repair or replacement of the product. This exclusive remedy shall not be deemed to have failed of its essential purpose so long as Brehob willing and able to repair or replace defective products in the prescribed manner or refund the purchase price. Except as herein provided, every form of liability for direct or consequential damage or loss, arising from contract, tort or otherwise, is expressly excluded and denied, including without limiting the generality of the foregoing, loss of profits or damages to buildings, contents, products, or persons.

10. Claims. Any controversy or claim arising out of or relating to this order, or the performance or breach thereof, other than an action by Brehob for the collection of the account, shall be settled by arbitration in the City of Indianapolis, Indiana, in accordance with the rules and procedures in obtaining of The American Arbitration Association.