21 E. Steve Wariner Dr.
Suite D
Russell Springs, KY 42642
Phone: (270)-946-0700
Fax: (270)-495-0222
info@statelinesteel.com
StateLine Steel, LLC
Standard Terms and Conditions Of Sale
These general terms and conditions apply to all proposals, acknowledgements and/or invoices for the sale of products and/or services (“Products”), to all related purchase orders, order releases and/or similar documents received by Seller for the purchase of Products, and to all Products sold by Seller, except as otherwise specifically provided in a document issued by Seller.
SELLER’S PROPOSALS ARE EXPRESSLY MADE CONDITIONAL ON BUYER’S ASSENT TO THE ADDITIONAL OR DIFFERENT TERMS SET FORTH BELOW WHICH REPRESENT THE SOLE AND EXCLUSIVE TERMS AND CONDITIONS UPON WHICH SELLER OFFERS TO SELL PRODUCTS TO BUYER.
Seller’s proposals, including (1) these terms and conditions and (2) any documents (such as drawings or other specifications) expressly and to the extent incorporated by reference therein, are referred to herein as the “Agreement.” The Agreement also includes any amendments made from time to time by the parties – but these terms and conditions of sale shall not be amended, modified or rescinded, and no amendment, modification or rescission of the terms and conditions set forth herein will be binding upon Seller, unless such amendment, modification, or rescission is agreed to in writing, makes express reference to amending these terms and conditions, and is signed by the Authorized Representative of Seller (see Section 24 below.)
Buyer’s acceptance of the Agreement is limited to acceptance of the terms and conditions set forth herein. Any proposal for additional or different terms or any attempt by Buyer to vary in any degree any of the terms of this Agreement in Buyer’s acceptance are herein objected to and rejected by Seller (see Section 24 below).
1. Prices
A) Seller’s published prices, if any, are subject to change without notice. All prices are in United States Dollars.
B) Quoted prices are based in current costs, including costs of steel or other purchased components or raw materials. If at any time after the date of a quotation or proposal Seller’s cost of any surcharge is assessed on such purchased component or raw material, then, in addition to the Product price, Buyer will pay such additional purchased component or raw material cost or surcharge effective as of the date such increase or surcharge is levied upon Seller. Availability of raw materials and purchased components of the Products is a material condition and contingency of this contact.
C) Unless otherwise expressly provided by Seller in the Agreement, prices do not include sales, excise, use, value-added or other similar taxes or duties now in effect or hereafter levied, transportation charges (such as freight, insurance, shipping, storage, packing, handling, demurrage or similar charges), engineering documentation, special packaging, marketing or testing , or raw material surcharges and Buyer shall pay all such charges, including applicable sales, use or other taxes levied with respect to Products and the Agreement (unless exempt therefrom), as well as any government fees levied on the inspection and/or installation of the Products, upon receipt of the related invoice from Seller and in foregoing charges are specifically included in the price, any charges attributable in increases in applicable rates after the date such price is quoted to Buyer shall be added to the price.
D) In the event Buyer requests changes to Products after the date of quotation, Seller may unilaterally increase prices to cover increased costs (plus reasonable overhead and profit) associated with such changes, including without limitation increased costs of design, materials and/or manufacturing. Seller shall be under no obligation to honor such requested changes.
E) Where applicable, Seller may add to the price, and Buyer agrees to pay, for the price of additional Products or portions of Products made necessary by incomplete or inaccurate information supplied by the Buyer.
F) Seller shall have no obligation to lower the Products price to any “lowest prevailing market price” or other lowest available price and Seller’s failure to do so shall not give Buyer any right to cancel this Agreement.
2. Payment
A) Invoices may be rendered separately for each shipment (including any early shipment) made by Seller, and payment will be due net thirty (30) days after the date of shipment, unless a different period is stated elsewhere in the Agreement. Buyer shall be liable for the price of all Products substantially conforming to the Agreement, notwithstanding that Buyer may not have accepted or may have revoked acceptance of same. Buyer shall not be entitled to deduct, counterclaim or set off against the price of Products, or against any other amount owing under the Agreement including under any invoice, any claim or alleged claim arising out of the Agreement or any other transaction with Seller.
B) If payment is not received by the due date, a service charge will be added at the rate of 2% per month (or the maximum legal amount, if less) to the unpaid invoices from the due date thereof.
C) Any remittances received by a bank or other depository of Seller in connection with the Agreement will be received by such bank or other depository solely as a clearing agency. Such receiving bank or depository had no authority to determine whether or not the amount remitted constitutes payment in full. Remittances marked to indicate “payment in full” or other similar expressions may be deposited by such bank or depository notwithstanding such markings and such deposit shall not indicate Seller’s acceptance of the remittance as payment in full and shall not otherwise be treated as an election by, or an impairment of any of the rights of, Seller unless expressly agreed in writing by Seller.
D) Seller may elect to deliver the Products in installments, with each installment being considered a separate sale and invoiced as such, and Buyer shall timely pay each invoice. Any Products indicated at any time as back-ordered shall be considered an installment delivery.
E) Seller shall have the right to stop delivery if Buyer is in arrears with payment. A failure to pay for an installment within the time for payment is an anticipatory material breach of other installments by Buyer.
F) All amounts due in installation or other event which requires the action or cooperation of Buyer which Buyer fails to perform or supply timely shall become due upon such failure.
3. Credit
A) Seller may, at any time and in its sole discretion, limit or cancel the credit of Buyer as to time and amounts, and as a consequence, may demand payment in cash before delivery of any unfilled portion of the Agreement, and may demand assurance of Buyer’s due performance, including without limitation, demanding that one or more deposits, letter of credit or other assurance be provided by Buyer. Upon making such demand, Seller may suspend production, shipment and/or deliveries until Buyer has provided such assurance. If, within the period stated in such demand, but in no event longer than thirty (30) days, Buyer fails to agree and comply with such different terms of payment, and/or fails to give adequate assurance of due performance, Seller may, in its sole discretion and without any requirement to do so, (1) by notice to Buyer, treat such failure or refusal as a repudiation by Buyer of the portion of the Agreement not then fully performed, whereupon Seller may cancel all further deliveries and any amounts unpaid hereunder shall immediately become due and payable, or (2) make shipment under reservation of a security interest and demand payment against tender of documents of title.
B) Buyer hereby represents to Seller that Buyer is solvent, that it has all requisite power and authority to enter into the Agreement, that the execution, delivery and performance of the Agreement does and will not conflict with or result in a branch of any conflict to which it is a party or by which its assets may be bound, and that no other person other than Seller has or will have a security interest in the Products covered by this Agreement until performance in full by Buyer of its obligations under the Agreement. Buyer further agrees that each acceptance of delivery of the Products sold under the Agreement shall constitute the remaking of each of these representations at such time.
C) If this Agreement permits or requires the use of a letter of credit, the letter of credit shall be assignable, irrevocable, confirmed by a United State bank acceptable to Seller, payable in stallments, and require payment to Seller on submission of Seller’s invoice and a bill of lading.
4. Packaging; Delivery; Force Majeure
A) The Agreement shall be a shipment contract, and the Products shall be delivered F.O.B. Buyer’s designated facility, unless otherwise provided in the Agreement. Whether or not Seller prepays shipping charges, title to each shipment of the Products sold hereunder and risk of loss thereon shall pass to Buyer when Seller or its agent delivers such shipment to a common carrier or licensed trucker cosigned to Buyer or his agent, but such shipment shall remain subject to Seller’s rights of stoppage in transit, rights of reclamation and other legal rights of Seller. Seller’s breach of the Agreement shall not affect the passing of the risk of loss to Buyer notwithstanding any provision of law to the contrary.
B) If this Agreement involves a blanket order or an order where Buyer does not state a quantity at the time of the Agreement, Seller shall not be obligated to sell the quantity estimated by the Buyer or ordered by Buyer in any subsequent order or release specifying quantity, unless otherwise set forth in the Agreement. Any subsequent order or release specifying quantity issued by Buyer with respect to the Products shall constitute a separate and independent offer to purchase that certain quantity of the Products on the terms of the contract and shall not obligate Seller to sell the quantity of the Products specified in such order or release unless and until Seller accepts such order. If and when Seller accepts such order, a separate or independent contract shall be deemed to have been formed on the terms and conditions of the Agreement.
C) Where a shipping/delivery date is specified by Seller, that date reflects Seller’s best estimate for the probable time required for completion of Buyer’s order, based on Seller’s then-current workload, raw material and labor availability, engineering and manufacturing capacity and scheduling. All shipping dates are approximate and shall be computed from the date of entry of the order on Seller’s books. All shipping/delivery dates are further subject to Seller’s prompt receipt from Buyer of all drawings, information and approvals necessary to provide the Products and satisfaction of any other conditions corrections or revisions of Product/Product Specifications, unforeseen changes in business climate or through events beyond Seller’s direct control, such as, but not limited to the events referenced in Section 4(H) below. Seller shall not incur liability of any kind whatsoever for failure to ship on any particular date. Once a shipment release schedules or the volume of any delivery, and unless agreed to by Seller in writing, all product delivery shall be in accord with Seller’s normal production, volume and delivery schedule or its standard practices, at Seller’s discretion.
D) Seller shall put the Products in the possession of a carrier and, without liability, make such contract for their transportation as Seller decides having regard for the nature of the Products and other circumstances. On Buyer’s request, Seller shall obtain and deliver to Buyer documents necessary to enable the Buyer to obtain insurance. The Seller is not responsible to prepay transportation or insurance costs. The Buyer shall pay all handling and other charges incidental to transportation. Seller will generally follow the Buyer’s shipping instructions, but may make reasonable changes thereto without liability and at Buyer’s cost.
E) Products shall be packaged in bulk containers or racks and labeled in accordance with standard labeling of Seller. Identification of all packages shall be with the standard labels of Seller. Identification of all packages shall be with the Seller’s part number. Special packaging or labeling shall be an additional charge to Buyer.
F) Buyer assumes responsibility for compliance with all U.S. federal, state and local laws governing exports from the United States in connection with the sale and use of the Products covered by the Agreement, and/or any subsequent re-export of such Products. All export and import duties, fees, permits, licenses, etc. for Products to be delivered outside of the United States shall be the responsibility of the Buyer.
G) If shipment of any Products or other performance by Seller is delayed at the request of or due to the fault of the Buyer, the Seller may at its option hold the Products at the place of manufacture at the risk and expense of the Buyer from the time the Products are ready for shipment. In the event of any such delay to shipment, full and final payment for an item shall be due and payable thirty (30) days after the Buyer is notified that the item is ready for shipment and an invoice issued for such Products. If the Seller is unwilling to accommodate the Buyer by holding such item, then Buyer agrees to accept shipment immediately. Delivery rescheduled ay Buyer’s request, if agreed to by Seller, is subject to an additional charge of 2% of the selling price if rescheduled within ten (10) days immediately preceding the then-current scheduled delivery date, which will be invoiced at the time of shipment.
H) All inspection, delivery and other dates for Seller’s performance are estimates only. In addition, the Seller shall not be in default or liable, directly or indirectly, or be deemed negligent because of Seller’s delay or failure to deliver or perform arising or resulting, in whole or in part, from (i) and cause beyond Seller’s control or beyond the control of Seller’s suppliers or contractors, including but not limited to embargo, governmental regulation, seizures, acts of God, insurrections, war, the adoption of any law, ordinance or regulation, accidents, strikes, vandalism, riots, intervention of authorities or agencies of government, power shortages, late receipt of order having full manufacturing details, ruling or order, or inability or delay in obtaining materials such as steel, or similar circumstances, (ii) the lack of usual means or transportation, fires, floods, explosions, strikes, labor disputes, or any other accidents, contingencies or events, at Seller’s or its supplier’s plant or elsewhere (whether or not beyond Seller’s control) which directly or indirectly interfere with or render substantially more burdensome, Seller’s production, delivery, or performance, or (iii) delays by Buyer in inspecting and acceptance, in furnishing requested specifications, materials, tooling or information, in making payments or otherwise. In the event of any such delay or failure in performance, Seller shall have such additional time within which to perform its obligations under the Agreement as may reasonably be necessary under the circumstances; and Seller shall also have the right, to the extent necessary in Seller’s reasonable judgment, to apportion fairly, among itself and its various customers in such manner as Seller may consider equitable, Products then available for delivery. If, as a result of any such contingency, Seller in unable to perform under the Agreement in whole or in part, or if its performance would be impractical or illegal, then Seller shall notify Buyer, and to that extent, the Agreement shall be deemed terminated without liability to either party, but shall remain in effect as to the unaffected portion of the Agreement, if any. This section shall be effective even as to circumstances which exist at the time of quotation or as of the date of the Agreement.
5. Acceptance
A) Buyer shall accept any tender of Products which substantially conform to the description of the Products set forth in the Agreement. Seller’s standard test procedures conducted by Seller’s representative shall be the criteria for inspection and/or acceptance, unless other specific procedures have been specified in the Agreement. On request Seller will quote to Buyer additional charges required to conduct any additional procedures requested by Buyer which may be acceptable to Seller. Buyer shall be deemed to have accepted drawings, specifications, technical documentation, samples, prototypes and Product unless Buyer gives Seller notice in writing stating with specifically all defects and nonconformities upon which Buyer will reply to support its rejection within three (3) days after receipt of the item. Failure to so act shall constitute an irrevocable acceptance by Buyer of the item. ALL DEFECTS AND NONCONFORMITIES WHICH ARE NOT SPECIFIED ARE WAIVED. If Buyer rejects any tender of the Products or other items and if requested by Seller, Buyer shall return them to Seller, pursuant to Seller’s direction. In the case of Buyer acceptance of non-conforming Products, Buyer shall immediately notify Seller whether or not Buyer will continue to accept similarly non-conforming Products and failure to do so shall constitute a waiver by Buyer of specification requirements for said Products. In any event, when any Products shall have been altered from their original state, Buyer shall be deemed to have accepted such Products. Buyer’s acceptance of Products tendered under this Agreement shall be final and irrevocable. No attempted revocation of acceptance shall be effective, and Buyer shall be limited to the remedies specifically provided in the Agreement. In respect of items manufactured by Seller to Buyer’s requested, furnished, accepted or approved specifications or design, Buyer shall defend and indemnify Seller, its successors, officers, directors and agents against, and hold them harmless from, any and all claims losses or expenses (including attorney fees) arising or alleged to arise, in whole or in part, from the manufacture, sale or use of the product(s), including not limited to infringement, or products liability or other alleged tort.
B) If the Agreement requires, or Seller requests in writing, inspection or testing, Buyer shall provide at the place of manufacturer at its own expense, one or more qualified and authorized employees to inspect and/or test the Products, check them for general compliance with the Agreement, and authorize shipment. If Buyer fails to do so within three (3) business days, then Seller may, in it own discretion, determine that Buyer has waived the right of inspection, testing and/or acceptance prior to shipment of the Products. Correction of defects or non-conformities, which would likely have been discovered by Buyer’s inspection and/or testing and otherwise covered by Seller’s warranty, will be at Buyer’s expense. Buyer shall also provide, at its cost and risk of loss, all materials, fixtures, tooling and other items necessary for any inspection and/or testing required by the Agreement or requested by Seller. If Buyer Equipment, parts and materials furnished by Buyer for Seller’s testing and/or inspection will be returned to Buyer at Buyer’s cost, unless Buyer authorizes their disposal. If the products include the necessary fixtures and tooling, the inspection and/or testing at the place of manufacturer may be performed on equipment similar to but other than that identified to the Agreement. This Order is to be construed according to the laws of the State of Kentucky, excluding the provisions of the United Nations Convention on Contracts for the International Sale of Goods and any conflict of laws, provisions that would require application of another choice of law. Any legal action or proceeding with respect to this agreement shall be brought in any court of the state of Kentucky, or in any court of the United States of America sitting in Kentucky, and the parties hereto hereby submit to and accept generally and unconditionally the jurisdiction of those courts with respect to this agreement. The parties hereby irrevocably waive any objection to the laying of venue of any lawsuit or proceeding in the above described courts.
C) Any expense incurred by Buyer in the inspection or testing of Products shall be paid by Buyer, whether or not the Products have been rejected as defective or non-confirming or the Products have been accepted and a warranty claim has been made for correction of a defect or non-conformity.
D) Any claim by Buyer for shortages in any delivery must be in writing with satisfactory evidence delivered to the Seller within three (3) business days of receipt. Carriers are responsible for Products lost or damaged in transit. In the case of loss or damage to Products in transit, Buyer shall immediately notify the carrier or its agent in writing of such loss or damage and shall do all things necessary to assert and prosecute a claim against the carrier for such a loss or damage.
E) Sellers may charge Buyer a restocking charge equal to twenty-five percent (25%) of the invoice price of returned Products. Returned Products must be returned to Seller in the original packaging, and restocking charge against any amounts Seller owes to Buyer.
F) It is expressly understood that any technical advice furnished by Seller with respect to the production or use of its Products is given without charge, and Seller assumes no obligation or liability for the advice given or results obtained, all such advice being given and accepted at Buyer’s risk. Seller is not an engineering firm. Any issues, concerns, specifications or requirements for Buyer’s use of the Product is beyond Seller’s knowledge and Buyer agrees no reliance is given to any suggestion or advice given by the Seller. Buyer represents that it has consulted with or had an opportunity to consult with engineers and any such other expert or specialist and has satisfied itself that the specifications required for the Products ordered are satisfactory for its use. Seller has not been provided with and has made no advice, recommendation or representation that the Products specified are adequate for the purpose Buyer intends.
6. General Express Warranties
A) Seller warrants to the Buyer only, subject to the limitations and disclaimers of this Agreement, that: (1) the Products, at the time of their delivery, will conform to the applicable drawings and specifications for the Products identified in the Agreement in all material respects (as they may thereafter be amended or modified in accordance with this Agreement); (2) the Products (or portions thereof manufactured by Seller) shall be free from manufacturing defects in materials and workmanship under normal use and service; and (3) the Products will be free and clear of all liens, encumbrances and other claims except for Seller’s reservation of a security interest in the Products prior to receipt of payment in full. Seller may, in its discretion, also rely on any generally accepted industry standards.
B) Seller’s warranties are conditioned upon (i) installation, maintenance and normal use in conformity with instructions furnished by Seller from time to time, if any, and (ii) the Products not having been subjected to misuse, neglect, or accident, or to alteration, improper installation, repair or improper testing in any respect which, in the judgment of Seller, adversely affects the condition or operation of the Products.
C) If Buyer receives rusted material upon shipment, Seller must be notified immediately to insure it is not a transit rust claim. If deemed a transit rust claim, it must be written on drivers copy of bill of lading material was received wet. If Buyer purchases secondary material-minimum rust/stain is expected unless otherwise noted.
D) If Buyer receives out of Dimension material, proof to Seller before claim accepted.
E) If Buyer receives Surface defects not agreed upon before shipment, samples must be provided to Seller before claim will be accepted.
F) If Buyer is running Seller material and incurs breakage, Buyer to provide 12 x 12 (or width) sample to Seller for testing. Seller does not guarantee to make part; Seller agrees to supply material to specifications. If material does not meet specifications agreed to at time of order claim will be issued.
G) If Buyer is forced into run and sort mode, Buyer must get pre-approval from Seller before run & sort.
H) If Buyer runs coils and runs into defected material, Seller will agree to run up to 10% of coil. If Buyer exceeds 10% of coil, Buyer will assume responsibility of material.
7. Limitation of Warranties; Disclaimer of Implied Warranties
A) THE LIMITED EXPRESS WARRANTIES IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, AND SELLER DISCLAIMS ALL IMPLIED WARRANTIES INCLUDING BUT NOT LIMITED TO ANY IMPLUIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY AND NON-INFRINGEMENT.
B) All descriptions, shipping specifications and illustration of the Products in catalogues, brochures and price lists otherwise provided by Seller, and not expressly and specifically incorporated in the Agreement, were and are for general guidance only, and Seller is not responsible for any errors or omissions therein or for any loss or damage resulting from reliance thereon. Seller does not warrant that it or the Products are in compliance with any industry standards, guidelines, or procedures, or with the requirements of any safety or environmental code or regulation of any federal, state, municipality or other jurisdiction unless otherwise specifically provided in the Agreement. Buyer affirms that it has not relied upon Seller’s skill or judgment to select or furnish Products for any particular purpose beyond the specific express warranties in this Agreement.
8. Limitation of Remedies and Seller’s Liability
A) Seller’s responsibility, and the sole and exclusive remedy of Buyer under Buyer’s warranties, is, at Seller’s option and subject to the terms hereof, to repair, to replace (without any additional charge and shipped to Buyer FOB Buyer’s plant) during the warranty period , with transportation charges prepaid by Buyer, provided that (1) Seller is promptly notified in writing with a detailed explanation of any alleged deficiencies upon discovery by Buyer that such Products fail to conform to the Agreement; and (2) Seller’s examination of such Products shall disclose to Seller’s satisfaction that such Products are defective or nonconforming under the Agreement. Buyer’s remedies shall be limited (even in the event of Seller’s default of its warranty obligations) exclusively to those provided in this Section.
B) NOTWITHSTANDING ANYTHING SET FORTH IN THIS AGREEMENT (INCLUDING ITS ATTACHMENTS, AND TO THE EXTENT PERMITTED BY LAW, IN NO EVENT SHALL SELLER BE REPSONSIBLE OR LIABLE TO BUYER FOR ANY LOSS OF USE, REVENUE OR ANTICIPATED PROFITS, OR FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, CONTINGENT OR PUNITIVE DAMAGES IN CONNECTION WITH ANY BREACH OF WARRANTY OR OTHER BREACH OF SELLER’S OBLIGATIONS UNDER THIS AGREEMENT (INCLUDING ANY ATTACHMENTS HERETO). SELLER’S AGGREGATE LIABILITY FOR ANY DAMAGES OR CLAIMS ARISING OUT OF OR RELATING TO ANY PRODUCTS HEREUNDER SHALL IN NO EVENT EXCEED THE AMOUNT BUYER PAID FOR THE PRODUCT(S) GIVING RISE TO THE CLAIM OR DAMAGES. Buyer waives any causes of action or theories of liability including, but not limited to, those arising under contract, tort, strict liability, product liability, statutes or otherwise, except as specifically provided by the UCC as modified and limited herein. Buyer further waives any right to implied contractual or common law indemnity against Seller for any claim, including, but not limited to, liability for claims for damages to person or property arising out of the use of Products sold to Buyer under this Agreement. The replacement or repair of Products by Seller does not give rise to any new warranty except the warranty period provided for herein shall be extended by the length of any period in which defective or non-conforming Products are in possession of Seller.
C) The Agreement is only for the benefit of the parties, except all disclaimers and limitations applicable to Seller and all indemnification to which Seller is entitled shall be also for the benefit of Seller’s parent, subsidiary and affiliate companies (and their respective officers, directors, employees, agents, contractors and suppliers). If any other provision of the Agreement is determined to apply to other parties, all other provisions including limitations, waivers and disclaimers shall also apply.
9. Indemnification. Buyer shall indemnify, defend and hold harmless Seller, and Seller’s parent, subsidiary and affiliate companies, and their respective shareholders, officers, directors, employees, representatives and agents, from and against any and all third party claims, damages and expenses (including reasonable attorney fees) under theories of tort, product liability, negligence (ordinary or gross), warranty, contract, statute or otherwise arising out of the use, storage, sale, processing or other disposition of the Products, supplies or materials used in connection with the Products or parts manufactured with the Products if (1) the action or inaction of Buyer or its employees, customers or agents, or Buyer’s design specifications, were a material or proximate cause of injuries or damages giving rise to claims against Seller, and/or (2) the claim asserted is inconsistent with the limitation of warranties, limitation of liability and/or limitation of remedies set forth in this Agreement.
10. Cancellation and Breach
A) Buyer may cancel its order for the Products prior to their shipment only if material has A.) not been processed, and B.) by immediate payment to Seller of liquidated damages in the amount of percent 20% of the invoice price of the Products. The parties acknowledge the great difficulty of proving damages for the cancellation of products such as the Products and the reasonableness of this liquidated damages provision.
B) If Buyer fails, with or without cause, to furnish Seller with instructions for, or refuses to accept deliveries of, any of the Products sold under the Agreement, or is otherwise in default under or repudiates all or any part of the Agreement or and any other agreement with Seller, or advises Seller that it will default in the performance of any of its obligations, or fails to pay when due any invoice under the Agreement or and any other agreement with Seller, or if any action is started by or against Buyer seeking the appointment of a trustee or receiver or the entry of an order for debtor’s relief for Buyer’s, then, in addition to any and all remedies allowed by law, Seller may, without notice: (1) bill and declare due and payable all undelivered Products under the Agreement and/or any other agreement between Seller and Buyer, (2) cease performance of its obligations and defer shipment under the Agreement and/or any other agreement between Buyer and Seller until such default, breach or repudiation is removed, (3) cancel any undelivered portions of the Products and/or any other agreement with Buyer in whole or on part, and/or (4) recover Products in transit or delivered, retrieve delivered Products, repossess all Products which may be stored by Seller for Buyer’s account and otherwise enforce its remedies for Buyer’s default. Buyer shall remain liable for all damages suffered or incurred by Seller in any such circumstances. Seller shall be awarded incidental damages including, without limitation, reasonable profits and costs such as actual reasonable attorney fees in any proceeding to enforce its remedies in which it obtains relief for damages or injunctive relief. All rights granted to Seller in the Agreement and by law are cumulative, provided Seller shall be entitled to only a single full recovery.
C) Seller shall not be liable for any action taken pursuant to a good faith exercise of any of its rights under the Agreement or law.
11. Security Interest Power of Attorney. In addition to any security interest granted by the UCC, Buyer hereby grants a security interest to Seller in all Products and documents related thereto and proceeds and products therefrom to secure all obligations of Buyer to Seller, whether or not arising under the Agreement. Buyer shall sign financing statements evidencing the security interest as reasonably requested by Seller, or Seller may file a copy of the Agreement or portion thereof as a financing statement. Buyer grants Seller an irrevocable power of attorney to sign Buyer’s name to a financing statement if necessary or convenient to perfect Seller’s security interest. Buyer shall provide a landlord’s waiver of any lien rights at the premises to which the Products are to be installed. In case of a default by Buyer, Seller may peaceably enter the premises of Buyer and others to repossess or render inoperable all Products in which it has a security interest. In case of a default by Buyer, Buyer hereby irrevocably appoints Seller as its agent to obtain possession of the Products and documents related thereto. Buyer shall not sell, exchange, transfer, convey, mortgage, pledge, hypothecate or grant a security interest in any Products or the proceeds thereof (including cash, accounts, contract rights, instruments and chattel paper) which are the subject to this Agreement if payment thereof shall not have been made in full to Seller.
12. Buyer’s Property. Buyer shall insure all materials, fixture, tooling, and other property delivered to Seller against all risks and waives subrogation in the event of loss of or damage to such property.
13. Proprietary Information
A) Unless otherwise agreed, Buyer acknowledges that any information disclosed to Seller is subject only to Buyer’s patent rights, without any other restrictions on Seller’s use, including reproduction, modification, disclosure or distribution of the information. Buyer agrees not to label any such information with a notice asserting that the information is proprietary or confidential to Buyer. In addition, Buyer agrees not to assert any claim (other than a claim for patent infringement) against Seller, Seller’s customers or their respective suppliers, with respect to any information that Buyer has disclosed or may disclose to Seller in connection with the Products.
B) All proposals, plans, specifications, models, tools, patterns, processes, fixtures, designs and other information furnished by the Seller or Seller’s parent, subsidiary or affiliate companies in bidding, negotiating and performing the Agreement, are proprietary to Seller and shall not be shown or disclosed to any other bidder, and shall not be shown or disclosed to any third party or used by Buyer except as may be necessary for the selection or use of the Products. Seller is not obligated to furnish detailed or shop working drawings, engineering calculations, computer programs, or other information for any Products or part thereof unless specifically required by the Agreement.
C) Any invention or other information, whether patentable or not, developed by Seller in the performance of the Agreement shall remain the property of Seller. Seller shall be under no obligation to refrain from using in its business any of Seller’s proprietary information disclosed to Buyer under this Agreement.
14. United States Government Regulations. Buyer shall not engage in any transaction with respect to the Products, by way of resale, lease, shipment or otherwise, which violates any statute or regulation of the United States of America.
15. Fair Labor Standards Act. Seller certifies that any Product produced in the United States shall be produced in compliance with all applicable requirements of Section 6,7, and 12 of the United States Fair Labor Standards Act, as amended, and of the regulations and orders of the United States Department of Labor issued under Section 14 thereof. No other certifications or waivers regarding payments to Seller’s suppliers or laborers are required.
16. Time Period for Buyer Claim. Any proceeding by Buyer for breach of the Agreement or any other right against Seller arising from or in connection with payment by Buyer or the Agreement cannot be filed or maintained unless (i) it is commenced within one (1) year after the cause for action has accrued, (ii) Buyer has given timely written notice to Seller of its claim as provided herein, and (iii) Buyer deposits any unpaid portion of the purchase price for Products with the tribunal pending adjudication. An action shall accrue no later than shipment of the Products.
17. Arbitration
A) All controversies and claims arising out of or relating in any way to the Agreement, or any breach thereof, shall be settled solely by arbitration held in state of Kentucky, in accordance with the Commercial Arbitration Rules of the American Arbitration Association, except (1) Seller may elect to institute, prior to formation of the arbitration panel, with an action for a claim and delivery, replevin or similar relief to enforce its interests in the Products , and (2) either party may seek injunctive relief from a state court located in Kentucky or federal court in Kentucky, to enforce provisions of the Agreement relating to confidential information. Judgment upon any arbitration award may be entered and enforced in any court having proper jurisdiction. No demand for arbitration hereunder may be filed by buyer as a claim or counterclaim if Buyer has not given timely written notice of its claim to Seller or if more than one (1) year has expired from the date of the cause of action accrued, as provided in the Agreement. The arbitrator(s) may enter an interim award that the Products be returned to Seller for appropriate disposition and the application of any proceeds to amounts owed to Seller.
B) Upon the filing of a demand for arbitration by Seller or by Buyer, Buyer shall deposit with the arbitrator(s) any unpaid balance of the purchase price for any Products and any other unpaid amount under the Agreement to be held in an interest bearing account. If such deposit is not made, the arbitrator(s) shall enter a final award against Buyer in the amount of the unpaid purchase price and other amounts owed by Buyer to Seller under the Agreement. The arbitrator(s) shall be bound by the terms of the Agreement, shall not apply principles of equity or allow any claims not permitted by the Agreement, grant within the locality where the arbitration takes place and which are authorized (and not excluded or otherwise limited under the Agreement), and may not award consequential or punitive damages. The arbitrator(s) may include the arbitration fees in an award.
18. Applicable Law, Jurisdiction and Venue
A) This Agreement shall be governed, construed and enforced under the law of the State of Kentucky including the uniform commercial code in force in the initial date of the agreement (the “UCC”), without regard to its conflict of law rules and except as provided herein. The U.N. Convention on the International Sale of Products shall not apply. Any services to be provided hereunder, whether or not they are otherwise ancillary to and part of a sale of Products (whether as separate units or included in a construction project), shall be considered ancillary to a sale of Products and the UCC shall apply to all Products to be provided hereunder.
B) State courts in Kentucky and federal courts in Kentucky shall have exclusive jurisdiction over the parties and the claims arising under the Agreement, subject to the provisions of Section 17 above regarding arbitration. Neither party shall assert any objection to such jurisdiction or that venue in any such court in inconvenient or otherwise improper. Buyer and Seller consent to service of process by personal delivery or by postage prepaid, certified U.S. mail, mailed to the address of such party set forth in this Agreement.
19. Assignment. The Agreement and Buyer’s rights and obligations hereunder may not be assigned, pledged, hypothecated or otherwise transferred by Buyer except with the prior written approval of Seller, which shall not be unreasonably withheld or delayed. Any assignment attempted by Buyer shall be void and ineffective for all purposes unless made in conformity with this section. Seller may freely assign all rights and obligations it has under this Agreement and may subcontract performance of any aspect of this Agreement.
20. Relationship. The relationship between Buyer and Seller is solely that of a vendor and vendee. Buyer is not an agent of Seller and has no authority to act on behalf of Seller, accept service or process, to create obligations of any kind or bind Seller in any respect.
21. Conflict. To the extent any express terms set forth in Seller’s proposal to which these Terms and Conditions of Sale are attached or in which they are incorporated by reference are inconsistent with these Terms and Conditions of Sale, the express terms set forth in Seller’s proposal shall control (to the extent, and only to the extent, of such inconsistency.)
22. Waiver. Waiver by Seller of any provision of the Agreement or of a breach by Buyer of any provision of the Agreement shall not be deemed a waiver of future compliance with the Agreement and such provisions, as well as all other provisions of this Agreement, shall remain in full force and effect.
23. Amendment or Modification
A) The Agreement is the complete and exclusive statement of the Agreement of the parties and supersedes and all previous proposals and/or agreements relating to the Products.
B) Seller is willing to consider negotiating written changes to the Agreement, including these Terms and Conditions of Sale, but reserves the right to make an adjustment in the price of the Products.
C) No amendments, modifications, supplements, limitations, waivers or discharges of this Agreement or any of its terms shall bind Seller, unless in writing and signed by the Authorized Representative of Seller, making express reference to amending the Agreement. No agent, employee or representative of Seller has any authority to sign and bind Seller with respect to any of the foregoing (including without limitation any representation or warranty concerning Products not contained in the Agreement), except the Authorized Representative of Seller.
D) Notwithstanding anything to the contrary in this Agreement, no modifications, limitations, waiver or discharge of any provision of the Agreement shall affect Buyer’s liabilities to Seller accrued prior thereto.
E) Orders submitted in any Buyer’s purchase order or other writing (whether or not it contains terms or conditions modifying, adding to, repugnant to or inconsistent with the terms and conditions of the Agreement), may be accepted, approved or filed by Seller, but any resulting contract and the liabilities or obligations of Seller shall be determined solely by the Agreement, and (unless Seller otherwise advises Buyer in writing signed by the Authorized Representative of Seller) notice is hereby given that Seller objects to any such term or conditions in Buyer’s purchase order or other writing. Seller shall not be deemed to have in any way enlarged or modified its liabilities or obligations under the Agreement by filling such purchase orders or by failing to further object to Buyer’s terms and conditions.
F) Obvious stenographic and clerical errors contained in the Agreement are subject to correction by Seller.
24. Heading and Definitions. The heading and definitions in the Agreement are inserted for convenience only and shall not constitute a part hereof.
25. Severability. If any provision if the Agreement shall be held to be unenforceable or invalid, such provision shall be ineffective to the extent of such prohibition or invalidity, and the balance of the Agreement shall be interpreted as if such provisions were so excluded. Any declaration of unenforceability of a provision shall be as narrow as possible.
26. Interpretation. Any interpretation of the Agreement shall be construed consistently by and against both parties, and shall not be construed against the draftsperson hereof. Buyer and Seller acknowledge that they are merchants in respect to the Products, they have had an opportunity to review the Agreement, and the previsions of the Agreement are reasonable when considered as a whole.
27. Samples. The Agreement covers the Products provided as samples, whether or not provided without charge, except that they are provided with all faults and that all warranties provided in the Agreement are disclaimed. Samples are provided only for evaluation by Buyer as examples of the type of Products available from Seller, and not as a representation that the quality or specifications of Products which may be supplied under a separate Agreement for the sale of Products will be similar or as high. Samples may not be used in production or final assembly and must be returned to Seller upon Seller’s request if they were provided without charge.
Revision2 - Last Update 2/28/11 JT