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Terms
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(e) EXCEPT FOR THE EXPRESS WARRANTY SET FORTH ABOVE,
SELLER GRANTS NO OTHER WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE,
REGARDING THE PRODUCTS, THEIR FITNESS FOR ANY PURPOSE, THEIR QUALITY, THEIR
MERCHANTABILITY, THEIR NONINFRINGEMENT, OR OTHERWISE. NO EMPLOYEE OF SELLER OR
ANY OTHER PARTY IS AUTHORIZED TO MAKE ANY WARRANTY FOR THE GOODS OTHER THAN THE
WARRANTY SET FORTH HEREIN. SELLER'S LIABILITY UNDER THE WARRANTY SHALL BE
LIMITED TO A REFUND OF THE PURCHASE PRICE OF THE PRODUCT. IN NO EVENT SHALL
SELLER BE LIABLE FOR THE COST OF PROCUREMENT OR INSTALLATION OF SUBSTITUTE
GOODS BY BUYER OR FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL
DAMAGES.
(f) Buyer assumes the risk and agrees to indemnify Seller against and hold
Seller harmless from all liability relating to (i) assessing the suitability
for Buyer's intended use of the Products and of any system design or drawing
and (ii) determining the compliance of Buyer's use of the Products with
applicable laws, regulations, codes and standards. Buyer retains and accepts
full responsibility for all warranty and other claims relating to, or arising
from, Buyer's products which include or incorporate Products or components
manufactured or supplied by Seller. Buyer is solely responsible for any and all
representations and warranties regarding the Products made or authorized by
Buyer. Buyer will indemnify Seller and hold Seller harmless from any liability,
claims, loss, cost or expenses (including reasonable attorneys' fees)
attributable to Buyer's products or representations or warranties concerning
same.
10. LIMITATION OF LIABILITY AND INDEMNITY: Notwithstanding any other provision
herein or in any other document or communication, (a) Seller's liability and
obligations with respect to any claim(s) resulting or arising from or relating
to this Agreement, whether in contract, strict liability, tort or otherwise,
and even if Buyer's exclusive remedy fails of its essential purpose, shall in
no event exceed in the aggregate the total purchase price received by Seller
for the Products (or, in the case of obligations arising from or relating to
particular Products or services rendered in connection herewith, the purchase
price of such Products or amount received by Seller for such services,
respectively), and (b) Seller shall in no event be liable to Buyer or any other
person or entity, whether in contract, strict liability, tort or otherwise, for
special, indirect or consequential damages of any kind whatsoever, or claims of
any third parties. By accepting delivery of the Products ordered, Buyer agrees
that it indemnifies and holds harmless Seller from and against all claims,
loss, damage and liability, including without limitation for personal injury,
property damage or commercial loss of whatever kind, directly or indirectly
arising from or relating to the hazards inherent in Buyer's facilities or
activities.
11. ACCEPTANCE; RETURNS: (a) Buyer shall inspect Products promptly upon their
receipt. Unless Buyer notifies Seller in writing within seven (7) days after
the receipt of Products or the rendering of services that the Products or
services are nonconforming, describing the nonconformity in commercially
reasonable detail, Buyer shall be deemed to have accepted the Products or
services. Buyer may not revoke its acceptance of Products or services and shall
be barred from any remedy unless Buyer notifies Seller in writing within thirty
(30) days of receipt of Products or rendering of services that the Products or
services are nonconforming, describing the nonconformity in commercially
reasonable detail, and that Buyer considers Seller in breach. Acceptance as
aforesaid shall constitute acknowledgment of full performance by Seller of all
its obligations hereunder. No Products delivered and accepted under this
Agreement are subject to returns except upon (i) written approval of Seller and
(ii) payment of a fair and equitable restocking charge as determined by
Seller's restocking charge policy at the time of return.
(b) All software sales are final. As software evaluation copies are readily
available from our web site, Buyer has the responsibility to inspect software
before purchasing. Returns are not accepted by Seller under any circumstances.
12. PATENTS: Seller agrees to settle or defend any suit or proceeding brought
against Buyer insofar as such suit or proceeding is based on a claim that any
Product constitutes direct infringement of any issued United States patent.
Seller shall pay all damages and costs finally awarded therein against Buyer,
provided Seller is informed by Buyer in writing within ten (10) days after
receipt by Buyer and furnished a copy of each communication, notice or other
action relating to the alleged infringement and is given all authority
(including the right to exclusive control of the defense of any suit or
proceeding), information and assistance necessary to settle or defend such suit
or proceeding. In the event such Product or any part thereof is, in such suit,
held to constitute infringement and the use of such Product or part thereof is
enjoined, Seller shall, by its own election and at its own expense, either (a)
procure for Buyer the right to continue using such Product, or modify it so
that is becomes non-infringing or (b) remove such Product, or part thereof, and
grant Buyer a credit thereon and accept its return. Seller shall not be
obligated to settle or defend any suit or proceeding, or be liable for any
costs or damages, if the alleged infringement arises out of compliance with
Buyer's specifications or any addition to or modification of the Product after
delivery thereof or from use of the Product or any part thereof in conjunction
with other goods or in the practice of a process. Seller's obligations
hereunder shall not apply to any alleged infringement occurring after Buyer has
received notice of such alleged infringement unless Seller thereafter gives
Buyer express written consent for such continuing alleged infringement. Seller
shall not be bound in any manner by any settlement hereunder made without its
prior express written consent, nor shall Seller be liable for any incidental or
consequential damages arising out of patent infringement. Seller's liability
hereunder shall not exceed the purchase price paid by Buyer for the allegedly
infringing Product. If infringement is alleged prior to completion of delivery
of a Product, Seller may decline to make further shipments without being in
breach of this Agreement. THE FOREGOING STATES THE SOLE AND EXCLUSIVE LIABILITY
OF SELLER FOR PATENT INFRINGEMENT AND IS IN LIEU OF ANY AND ALL WARRANTIES,
EXPRESS OR IMPLIED, IN REGARD THERETO. Buyer agrees, at its expense, to settle
or defend and to pay costs and damages finally awarded in any suit or
proceeding against Seller based on an allegation that any Product furnished
hereunder according to designs or specifications furnished by Buyer infringe
any patent, provided Buyer is promptly notified in writing of such suit or
proceeding and is given all authority (including the right to exclusive control
of the defense of any suit or proceeding), information and assistance necessary
to defend or settle any such suit or proceeding.
13. PROPERTY FURNISHED BY BUYER: If Buyer furnishes any components, tools,
dies, jigs or other property or facilities to Seller in connection with the
performance of this Agreement, Buyer shall bear all risk of loss or damage with
respect to such property or facilities and shall indemnify and hold Seller
harmless from and against all loss, cost, expense or liability arising in
connection with its use of any such property or facilities. Seller shall not be
responsible for any delay in performance or nonperformance hereunder or the
failure of any Product to conform to applicable specifications resulting, in
whole or in part, from Seller's use of property or facilities furnished by
Buyer.
14. PROPRIETARY INFORMATION: As used herein, the term "Proprietary Information"
includes any information of a confidential or proprietary nature obtained from
Seller and any information obtained from Seller which is not readily available
to Seller's competitors and which, if known by a competitor of Seller, might
lessen any competitive advantage of Seller or give such competitor a
competitive advantage. Seller retains ownership of all Proprietary Information
and all documentation which contains Proprietary Information. Buyer shall not
disclose, duplicate or reproduce any Proprietary Information nor shall Buyer
use any Proprietary Information other than in the course of performing its
obligations hereunder. Buyer shall take all reasonable steps to prevent the
disclosure, duplication or reproduction of any Proprietary Information.
Notwithstanding the foregoing, Buyer shall not be required to refrain from
disclosing or using any Proprietary Information which has become known to Buyer
if the original source of such Proprietary Information was not Seller or any
person or party affiliated with Seller or having a relationship of
confidentiality with or an obligation of confidentiality to Seller.
15. CANCELLATION: Neither this Agreement nor any release hereunder is subject
to cancellation by Buyer except upon (a) written request of Buyer, (b) written
approval of Seller, and (c) the payment to Seller of a fair and equitable
cancellation charge. Because Seller's expenses related to canceling firm orders
are dependent upon (i) Seller's inventory carrying costs, (ii) the likelihood
of Seller quickly selling the subject Products to other buyers, (iii) Seller's
other related out-of-pocket costs, and (iv) administrative costs, the amount of
cancellation charge Buyer shall pay to Seller will be determined solely by
Seller.
CANCELLATION OF STANDARD PRODUCT: If Seller determines the Product being
canceled to be Standard Product, the amount of the cancellation charge will
vary according to the (a) quantity being canceled, (b) time frame between
Buyer's request to Seller to cancel and the order's scheduled ship date, and
(c) dollar amount of order being canceled. The calculation of the exact
cancellation charge will be governed by Seller's published policies as amended
from time to time at Seller's discretion. In no case will be cancellation
charge be less than twenty percent (20%) of the original agreed upon purchase
price.
CANCELLATION OF CUSTOM PRODUCTS: If Seller determines the Product being
canceled to be Custom Product, Buyer agrees to pay Seller for all of Seller's
out of pocket costs associated with the cancellation of the order including,
but not limited to: (i) raw materials, (ii) work in process, (iii) inventory
carrying costs, (iv) scrapping and disposal fees, and (v) a reasonable and
equitable profit for Seller, which shall not be less than twenty percent (20%)
of such costs. In no case will the cancellation charge be less than Seller's
actual costs (including overhead and other indirect costs). The amount of
cancellation charge to be charged to Buyer shall be determined at the sole
discretion of Seller and may equal 100% of the amount of the order at the time
of Seller's receipt of Buyer's request for cancellation. Buyer is entitled to
receive a written notice from Seller setting forth how the cancellation charge
was calculated. Upon payment of the cancellation charge, Buyer shall be
entitled to receive all raw materials and work in process, and Seller agrees to
ship such goods to Buyer at Buyer's expense.
Seller reserves the right, by written notice of default, to cancel any order,
without liability to Buyer, in the event of the happening of any of the
following: insolvency of Buyer, the filing of a voluntary petition in
bankruptcy by Buyer, the filing of an involuntary petition to have Buyer
declared bankrupt, the appointment of a receiver or trustee for Buyer, the
execution by Buyer of an assignment for the benefit of creditors, the
discontinuance of business by Buyer, or the sale by Buyer of the bulk of its
assets other than in the usual course of business.
16. RESCHEDULES: Buyer is permitted one reschedule opportunity with no charge.
A reschedule cannot extend further than 30 days from original ship date
requested. Additional reschedules will be subject to a ten percent (10%)
penalty based on total amount of the order or portion of the order rescheduled.
17. RESALE OF COMPONENT PRODUCTS: Buyer agrees that it shall not resell any
component Products purchased from Seller unless Buyer is an authorized
distributor of Seller's products. Seller shall not be obligated to provide any
warranty service or other technical support for any component Products not
purchased directly from Seller or an authorized distributor of Seller.
18. NO LICENSE: Neither this Agreement nor any purchase of Products hereunder
shall be construed to confer upon Buyer or its customers any license under any
patent or other proprietary rights of Seller, except the right to use such
goods for the purposes for which they are sold.
19. NON-WAIVER OF DEFAULT: No failure by Seller to insist on strict performance
of any term or condition hereof shall constitute a waiver of such term or
condition or any breach thereof, nor shall such failure in any way affect
Seller's legal remedies with respect to any default by Buyer hereunder.
20. APPLICABLE LAW: This Agreement shall be governed by and construed in
accordance with the laws of the State of Rhode Island, USA, excluding laws
directing the application of the laws of another jurisdiction.
21. ASSIGNMENT: Buyer may not transfer or assign this Agreement or any interest
herein, by operation of law or otherwise, without the prior express written
consent of Seller. Any attempted transfer or assignment without such consent
shall be void. Seller may assign its rights and delegate its duties hereunder.
22. ENTIRE AGREEMENT; MODIFICATION: This Agreement supersedes all prior written
and oral agreements and understandings between Seller and Buyer with respect to
the Products and services specified herein. No representation or statement not
contained herein shall be binding upon Seller as a warranty or otherwise. No
addition to or waiver, modification or cancellation of any provision hereof
shall be binding upon Seller unless in writing and signed by a duly authorized
representative of Seller.
23. NOTICES: All notices and other communications hereunder shall be in writing
and shall be mailed by first-class, registered or certified mail, postage
prepaid, to the parties hereto at their respective designated addresses,
subject to the right of either party to change such address upon ten (10) days'
prior written notice.
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