STANDARD TERMS AND CONDITIONS OF SALE

Zephyr Equipment, LLC                    

GENERAL TERMS AND CONDITIONS OF SALE  

This Quotation is subject to all instructions, terms and conditions on the face hereof and also the following terms and conditions:  

1.    Warranty.  

​Zephyr Equipment, LLC (hereinafter called "Zephyr")  makes the following limited warranty:  Zephyr warrants to the original purchaser only (hereinafter referred to  as "Buyer") that  the  parts  manufactured by Zephyr of each  new  and  unused system purchased  from  or  through  Zephyr,  which  parts  have  not  been altered, changed or repaired in any manner, will be  free  from  defects  in material and workmanship  upon  delivery.   If any such part is not as warranted and if the Buyer notifies Zephyr of such defects in writing within one year of delivery, Zephyr will repair or replace, at its option, such defective part, provided that full information is furnished to Zephyr of the nature of the defect.  Labor in removing and replacing parts  at  the installation site under this warranty, and return of defective parts to Zephyr's factory, shall be paid for by Buyer. 

This  warranty  by  Zephyr  does not cover any part of the system  manufactured by third persons  whether  or not such third persons are subcontractors to Zephyr for this system.  If after inspection of the returned products, Zephyr  determines  that  the defect  is  a  result  of  misuse,   mishandling,   installation,   abnormal conditions of operation, unauthorized repair or modification, or due to  the Buyer's failure to install, maintain or operate the  product  in  compliance with written instructions, all expenses incurred by  Zephyr  in  connection with the replacement or repair of the product shall be for  the  account  of the Buyer.  Any product returned to Zephyr  for  replacement  shall  become the property of Zephyr. 

REPLACEMENT OR REPAIR  OF  THE  Zephyr  PRODUCTS  AS  PROVIDED  UNDER  THIS WARRANTY IS THE BUYER'S EXCLUSIVE  REMEDY.   In  no  event  shall  Zephyr's entire liability exceed the amount paid by the  Buyer  to  Zephyr  for  its purchase of the defective product.  

2.    LIMITATIONS ON WARRANTY. 

THERE IS NO FURTHER WARRANTY, EITHER EXPRESS OR IMPLIED IN CONNECTION WITH THE DESIGN, SALE, MERCHANTABILITY  OR  FITNESS FOR A PARTICULAR PURPOSE OF THE PRODUCTS OR SERVICES SOLD HEREUNDER,  EXCEPT AS STATED ABOVE  AND  IN  OUR  PROPOSAL.   IN  ADDITION,  ZEPHYR  DOES  NOT AUTHORIZE ANY DISTRIBUTOR, SALES REPRESENTATIVE OR  FIELD  AGENT  TO  CREATE ANY OTHER WARRANTY, OBLIGATION OR LIABILITY  OTHER  THAN  THAT  SPECIFICALLY SET FORTH HEREIN.  ZEPHYR SHALL NOT BE LIABLE FOR  ANY  INDIRECT,  SPECIAL, INCIDENTAL, CONSEQUENTIAL OR OTHER DAMAGES RESULTING  FROM  BREACH  OF  THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY, INCLUDING,  BUT  NOT  LIMITED  TO, DAMAGE TO OR LOSS OF PROPERTY OR EQUIPMENT, LOST  REVENUES  OR  PROFITS,  OR HARM TO GOODWILL OR BUSINESS REPUTATION.  

Zephyr shall  not  be  liable  to the Buyer for any claims, demands, injuries, damages, actions or  causes  of action whatsoever based on negligence or strict liability.  Zephyr shall not have any liability of any kind under the limited  warranty unless the original purchaser commences an  action  against  Zephyr  within one year after the cause of action has accrued.  This warranty shall also be  subject  to  all  other  terms  and  conditions stated herein, including but not limited to the terms found in paragraph  17 hereof.  

3.   Acceptance/Agreement.  

Any acceptance of this Quotation is limited to acceptance of the express terms on the face and  back hereof  and on  any attachment(s) hereto and shall constitute the complete agreement  between the parties.  Any  proposal  for  additional  or  different  terms,  or  any attempt by the Buyer to vary in any degree any of the terms  of  this  offer in  Buyer's  acceptance  is  hereby  objected  to  and  rejected,  but  such proposals shall not operate  as  a  rejection  of  this  offer  unless  such variances are in the terms of the description, quantity, price  or  delivery schedule of the goods, but shall be deemed a  material  alteration  thereof, and  this  offer  shall  be  deemed  accepted  by  the  Buyer  without  said additional or  different  terms.  If  this  Quotation  shall  be  deemed  an acceptance of a prior offer by the Buyer, such acceptance is limited to  the express  terms  contained  on  the  face  and  back  hereof   and   on   any attachment(s) hereto.  Addition of different terms or  any  attempt  by  the Buyer to vary, in any degree, any of the terms of this  Quotation  shall  be deemed material and are objected to or rejected, but  this  Quotation  shall not operate  as  a  rejection  of  the  Buyer's  offer  unless  it  contains variances in the terms of  the  description,  quantity,  price  or  delivery schedule of the goods.  

4.    Orders.  

All orders are subject to acceptance by Zephyr, in its sole discretion, at its general offices in Orchard Park, New York,  USA,  even  if such order are taken elsewhere by  any sales representative or  other  agent of Zephyr.  

5.    Terms and Payment.  

The written price quotation listed herein shall be payable in current funds of the United States, at  par, to Zephyr Equipment, LLC at  227 Thorn Ave. Suite C2, Orchard Park, New York 14127,  according  to  the  "Terms"  as  quoted herein.  No other understanding or agreements,  verbal  or  otherwise,  with respect to the price and terms of payment shall be binding on either  party, except as expressly stated herein.  The foregoing  terms  of  payment  apply whether or not Seller has agreed to erect said system  and  whether  or  not there is delay in erection by any person, regardless of cause of delay.  Prices on the goods covered by this Quotation are firm for 30 days from  the date of this Quotation.  If there is a delay in the completion  of  shipment of the order due to any change requested by the Buyer, or as the  result  of any delay on  the  Buyer's  part  in  furnishing  information  required  for completion of the order, the price agreed upon at the time of acceptance  of the order is subject to change.  Prices are F.O.B.  carrier's  equipment  at Zephyr's factory and are exclusive of all federal, state  or  local  taxes, and any present or future sales, use or other tax or duty that  Zephyr  may be required to collect or pay shall be added to the sales  prices  and  paid by the Buyer.  

6.    Increase to Price.  

In the event changes by Buyer in concept  to the proposed system should require  additional, or  modification to  existing mechanical equipment hardware or software, the price to Purchaser  shall  be revised accordingly.  

7.    Installation.  

The above price does not include  the  installation  of the system unless otherwise specifically provided elsewhere herein.  

8.    Installation, Supervision/Start-Up Service.  

Upon  written request  by Buyer to Zephyr, at any  reasonable  time  prior  to  installation  of  the system by Zephyr, Zephyr agrees to supply to  the  installation  site  one installation  supervisor  qualified  to   instruct   as    to   the   proper installation of the system. 

Buyer agrees to pay Zephyr, in addition to  the above price:        

1. $120.00 per hour, or part thereof, 8 hour minimum, commencing from and including the date of departure from Orchard Park, NY, to and including the day of return to Orchard Park, NY.  This rate does not apply to Saturdays, Sundays, or holidays.        
2. $210.00 per hour, or part thereof, for all time spent by such installation supervisor in excess of 8 hours per day or on Saturdays; $240.00 per hour for Sundays and holidays.        
3. All expenses incurred by such installation supervisor (i.e., travel, lodging, parking, etc.) from and returning to Orchard Park New York
4. $70.00 per diem for food, prorated for partial days.  

9.    Drawings.  

Zephyr will deliver drawings to  Buyer for  approval of system prior to ordering materials and supplies, and prior  to fabrication of system by Zephyr.  Buyer  agrees  to  either  approve  or  correct  such drawings, in writing, within 10 days after receipt  thereof   and  return same to Zephyr for further processing.  Zephyr reserves the right to  give Buyer notice of delay caused Zephyr by Buyer's  failure  to  promptly  sign and return said drawings as aforesaid.  

10.   Cancellation, Countermand and Return of  Goods.   

Orders  accepted  by Zephyr cannot be cancelled  or  countermanded,  or  shipments  deferred  or goods returned except with the prior written consent from Zephyr's  office in Orchard Park, New York  and  upon  terms  that  will  indemnify  Zephyr against all losses resulting therefrom, including the profit on any part  of the order that is cancelled.  When Zephyr authorizes the return  of  goods, Buyer shall prepay the  shipping  charges  on  such  returned  goods  unless otherwise expressly stated by Zephyr in its written return authorization. 

11.   Patents.  

Zephyr shall indemnify and save  the  Buyer  harmless  from any judgements for damages and costs  which  may  be  rendered  against  the Buyer in any suit brought against the Buyer on account of  the  infringement of any United States patent by any goods supplied by Zephyr  hereunder  (as such and not incorporated into any other device), provided  that  the  Buyer promptly  notifies  Zephyr  of  the  commencement  of  any  such  suit  and authorizes Zephyr to settle or defend such suit as  Zephyr  may  see  fit, and provided further that the  Buyer  renders  every  reasonable  assistance which Zephyr may require in defending any such suit.  This provision  shall not apply if Buyer has furnished Zephyr with the  specifications  for  such goods, and in that  event,  the  Buyer  shall  indemnify  and  hold  Zephyr harmless from any claim of patent infringement.  If the  goods  supplied  by Zephyr are found to be infringing, Zephyr's liability to the  Buyer  shall be limited to any one of the following, at Zephyr's election:        

a.    Procuring for the Buyer the right to use the goods; or       

b.   Modifying the goods so that such goods become non-infringing; or       

c.     Replacing the goods with non-fringing goods;or       

d.  Removing the goods  and  refunding  the  purchased  price  to  the       Buyer.  

In consideration of Zephyr's covenants hereunder, Buyer  waives  all  other claims or potential claims for damages against Zephyr for  any  alleged  or established patent infringement, and agrees to indemnify  and  save  Zephyr harmless therefrom.  

12.   Delivery.  

Shipping dates are approximate and are based  upon  current and anticipated manufacturing capabilities and upon prompt  receipt  of  all necessary information from Buyer.  Delivery shall also be  contingent upon receipt of materials  from subcontractors.   Unless otherwise  agreed in writing by Zephyr, delivery shall occur, and risk of loss shall pass to the Buyer upon delivery of the goods  to the  carrier at  Zephyr's factory. Transportation shall be at the Buyer's sole risk and expense, and any claim for loss of damage in transit shall be against the  carrier only.   Buyer agrees to accurately check shipment upon arrival and file  claim with  the common carrier for any damage or loss.   Risk of  damage or  loss to  the system from any cause shall pass from Zephyr to Buyer upon delivery to the common carrier, notwithstanding the fact that Zephyr reserves the right of possession and title in the property until the above price is paid in  full, all as provided elsewhere herein.  

13.   Force Majeure.  

Fulfillment of  this  order  is  contingent  upon  the availability of materials.  Zephyr shall not be liable for  any  delays  in delivery, or for non-delivery or nonperformance, in whole or in part,  caused by the occurrence of any contingency beyond the control  of  either  Zephyr or suppliers to Zephyr, including but not limited to  war,  sabotage,  acts of civil disobedience, failure or  delay  in  transportation,  acts  of  any government  or  agency  or  subdivision  thereof,  judicial  actions,  labor disputes,   fires,    accidents,    explosions,    epidemics,    guaranties, restrictions, storms, floods,  earthquakes  or  acts  of  God,  shortage  of labor, fuel, raw material or machinery or technical  failure  where  Zephyr has exercised ordinary care in the  prevention thereof.  If any  contingency occurs, Zephyr may allocate production and deliveries among its customers.  

14.   Title and Possession.  

Title and right of possession of  the  property furnished to Buyer pursuant to the terms of the  contract  shall  remain  in Zephyr until full payment of the price according to  the  above  terms  has been made, notwithstanding the delivery of the property to Zephyr or  to  a common carrier or to other bailee for the purpose  of  transmission  to  the Buyer.  The property furnished under this contract shall not become a  part  of  any real estate by reason of being attached  thereto  or  installed  therein  or thereon.  If  Buyer  shall  default  in  payment,  Zephyr  shall  elect  to exercise its lien upon said property as provided by this paragraph  and  the Minnesota Uniform Commercial Code and Buyer shall  be  responsible  for  all costs and expenses associated therewith.  Buyer hereby grants  unto  Zephyr a license irrevocable to enter upon any  real  estate  owned  or  leased  by Buyer for the  purpose  of  removing  said  property,  and  Buyer  shall  be responsible for the resulting damage, if any, to real and personal  property to which it is affixed.  

15.   Inspection.  

Buyer shall inspect and test the goods shipped hereunder immediately upon installation thereof and  shall,  within  15 days  of the substantial completion of installation, give notice in writing  to Zephyr of any matter or thing by reason whereof he may allege that the  system is not in accordance with this contract.  If Buyer fails to give such written notice,  said  system  shall  be  deemed accepted by Buyer.  Notwithstanding  this  right  of  inspection  by  Buyer, Buyer agrees to pay the above price according to the above terms whether  or not a right of inspection and testing exists pursuant to the terms  of  this paragraph.  

16.    Applicability of United Nations Convention.    

With   regard   to international sales, the United Nations Convention  on Contracts  for the International Sale of Goods shall not apply to the  purchase and  sale of products hereunder.  

17.   General Provisions.  

Any cause of action arising from this  Agreement, or breach of it, must be commenced  within  one  year  after  the  cause  of action has accrued.  Zephyr has the right to correct any stenographical  or clerical errors in any of the writings issued by it.   Except  as  otherwise set forth herein, the terms and conditions of sale and  any  description  on the face of this Quotation constitute a complete and exclusive statement  of the terms and conditions of the sale of  the  products  by  Zephyr  to  the Buyer.  There   are   no   other   promises,   conditions,   understandings, representations or warranties.  This agreement may be  modified  only  in  a writing  signed by Zephyr.  No  waiver  of  any  right  will  be  effective against Zephyr unless supported by consideration and  expressly  stated  in the writing signed by Zephyr, and the failure of  Zephyr  to  enforce  any right will not be construed as a waiver of Zephyr's  right  to  performance in the future.  The Buyer may not assign any  rights  to,  or  delegate  any performance owed under this Agreement without the consent of Zephyr.   Zephyr shall have the right to credit toward the payment  of  any  monies  that may become due Zephyr hereunder and any sums which may now or hereafter  be owed to the Buyer by Zephyr.  

THE VALIDITY AND PERFORMANCE IN  ALL  MATTERS RELATING TO THE INTERPRETATION AND EFFECT OF THIS AGREEMENT,  ANY  PROVISION HEREIN AND ANY AMENDMENT HERETO  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE  LAWS  OF  CONFLICT)  OF  THE STATE OF MINNESOTA.  ALL DISPUTES ARISING IN CONNECTION WITH THIS  AGREEMENT SHALL  BE  RESOLVED,  IF  NOT  SOONER  SETTLED,  BY  A  COURT  OF  COMPETENT JURISDICTION LOCATED IN THE STATE OF New York.  

The Buyer  shall  pay Zephyr all fees, costs and expenses of  Zephyr  reasonably  incurred  in  the enforcement of Zephyr's right under or with  respect  to  this   Agreement, including, without limitation, reasonable attorneys' fees.  

18.   Acceptance.  

The foregoing offer  accepted,  and  the  undersigned acknowledges receipt of a true and complete copy.