Conditions of Supply

1. Scope

These Conditions apply to and are deemed to be incorporated in all contracts for the sale of equipment or the supply of services by Esco Technologies Inc ('Esco'). No addition or variation or waiver of these Conditions has any legal effect except as specifically agreed by Esco in writing. These Conditions shall prevail over terms and conditions stipulated by the Customer.

2. Definitions

"Equipment" means any machinery, systems or associated parts designed and manufactured or assembled by Esco at the Esco facility located in Bintan, Indonesia, at another Esco facility, or sourced elsewhere at Esco's discretion. "Customer" includes any principal or agent or subcontractor of the Customer.

 

A. SALE OF MACHINERY AND SYSTEMS

3. Quotations and Acceptance

1. Prices and terms of contract quoted by Esco shall exclude the cost of freight and packing. Delivery shall be ex works the principal place of manufacture (Incoterms 2000 definition) unless otherwise agreed with the Customer.

2. Prices quoted by Esco shall remain valid for a period of 60 days unless otherwise agreed or unless Esco's costs increase for reasons outside its control.

3. If the Customer specifies a currency other than that in which Esco quotes, Esco reserves the right to amend the quoted price by any amount to cover movements in the exchange rate between the currency of the quotation and the specified currency arising between the time of quotation and acceptance of the order.

4. The obligations of Esco hereunder are subject to the prior receipt by Esco of any export licenses required in connection with the shipment of the equipment. In addition, nothing contained herein shall be deemed to require Esco to take any action that would constitute, directly or indirectly, a violation of any laws of any applicable jurisdiction, and Esco’s failure to take any such action shall not be deemed a breach hereunder.

4. Schedules and Delays

Esco shall during the design and manufacture or assembly of the equipment provide the Customer with progress schedules and notify the Customer of any projected delays in delivery. Notification of any delay shall give Esco's best estimate of the date on which dispatch is projected.

5. Shipment

1. Unless otherwise agreed, the Customer is responsible for transportation from the principal place of shipment. Esco shall at the Customer’s request and expense arrange carriage and insure the equipment against normal transit risks but in the event of loss or damage whether or not caused by the negligence of Esco or its carrier or any other person, Esco liability shall be limited to passing on to the Customer the benefit of such insurance.

2. If instructions for dispatch are not received or if the Customer otherwise fails to take delivery or it requires Esco to delay delivery beyond any agreed delivery date, Esco shall be entitled to make arrangements for storage of the equipment and to charge the Customer accordingly and the Customer shall become responsible for the risk of loss of or damage to the equipment and for paying the contract price as if the goods had been delivered. Esco shall be entitled, after reasonable notice to the Customer, to dispose of the equipment elsewhere.

6. Installations

1. If requested, Esco and its employees or subcontractors will provide supervisory services or perform installation or erection or commissioning services on the equipment. These services shall be supplied for an agreed period and for a specified function and the Customer shall pay for the provision of a representative at the specified rate per day plus living and travel and any other ancillary expenses that may be incurred by reason of performing these services. For this purpose, one day shall be deemed to mean eight (8) hours. Additional hours per day shall be charged at a premium.

2. If such services are required for a number of days in excess of the period agreed, the Customer shall inform Esco in writing of the requirement and Esco reserves the right to request the Customer to pay for additional days in the same manner as specified in Clause 7.1 above plus any additional costs or expenses incurred by reason of the extension of the period of service.

3. The Customer shall prepare a location and facilities suitable for the equipment according to specifications to be issued by Esco upon completion of its design of the equipment. If Esco is not satisfied with preparatory work, it reserves the right to charge for costs caused by delay.

4. The Customer shall be responsible for obtaining all necessary consents and licenses and for supplying Esco with all necessary information and drawings about the installation site and shall provide at its own expense such ancillary services and facilities as Esco may reasonably require to fulfill the installation.

5. Esco shall not be responsible for off-loading, provision of and connection to services and utilities.

6. The Customer shall ensure safe and adequate access to the site for Esco and its employees and subcontractors and shall be responsible for the safe custody of all equipment materials and other property left on site by Esco in the course of installation. The Customer shall be liable for any injury suffered by Esco or its employees or subcontractors except to the extent injury is caused by their own negligence.

7. Payment

1. Unless otherwise agreed, payment of the Purchase Price by the Customer to Esco shall be according to the agreement associated with the quotation ordered against, or pre-established terms.

2. Esco reserves the right to pass on to the Customer any increases in costs arising for reasons outside its control.

 

B. AFTER SALES SERVICE AND REPLACEMENT PARTS

8. Quotations & Payment

1. Prices and terms quoted exclude the cost of freight for replacement parts. Quotations are valid for 30 days unless otherwise specified.

2. Full payment must be made to ESCO prior to shipment unless net 30 day terms have been previously established. Equipment shall remain the property of Esco until the Customer has made full and unconditional payment. If any payment is overdue, Esco shall be entitled to suspend further deliveries, and may after giving notice to the Customer enter the premises where it believes its equipment to be for the purpose of recovering its equipment.

 

C. GENERAL

9. Quotations and Acceptance

1. Prices are quoted exclusive of applicable sales and use taxes, import duties, and/or other local taxes and fees which will be charged at the rates ruling at the time of supply.

2. No obligation shall be binding on Esco unless and until received and accepted by Esco in writing.

10. Delivery

1. Although Esco shall endeavor to supply equipment within the time specified, no liability can be accepted for delays in delivery due to any cause beyond Esco’s reasonable control, or for any other reason unless specifically agreed in writing. If work is delayed or interrupted by the Customer, the Customer shall pay Esco for all additional resulting charges.

2. Esco reserves the right to make shipment in installments.

3. Unless otherwise agreed, any discrepancy in or damage to the equipment must be notified to Esco in writing within thirty (30) days of shipment or

dispatch failing which Esco accepts no liability for discrepancies in or damage to the equipment. Failure by the Customer to give such notice shall constitute unqualified acceptance and a waiver of all such claims by the Customer.

4. The Customer shall be required to procure at its own expense any import licenses or related documentation required for the country of destination and any intermediate destination to which the equipment is to be dispatched or delivered. The Customer shall be responsible for any import duties.

11. Overdue Payment

If Esco does not receive full payment of amounts due by the agreed payment dates, it reserves the right to charge interest at commercial rates on all amounts overdue.

12. Patents, Design Rights etc.

1. Any know-how, technical information, drawings, specifications or documents supplied in connection with this contract shall be kept confidential by the Customer and shall not be disclosed to any third party or used for any other purpose than for the purpose of this contract without the prior written consent of Esco unless and until the same is or becomes public knowledge.

2. Ownership is retained by Esco of any patent, copyright, design right or other intellectual property right in its equipment supplied under this contract and in any technical information, know-how, drawings, specifications or any other documents supplied hereunder.

3. Esco warrants that any component incorporated as part of the equipment and which is of Esco standard manufacture is free of third party patent or any other intellectual property restrictions as and when supplied but Esco gives no other warranty against patent or other intellectual property infringement and no liability is accepted in respect thereof.

4. If Esco supplies equipment with variations to meet the Customer's special requirements, or to the Customer's own specification, or if Esco processes the Customer's own equipment, goods or materials, no warranty is given and the Customer shall accept full liability in respect of infringement of patents or other intellectual property rights and agrees to indemnify Esco against all claims, losses or costs arising therefrom.

5. No warranty is given that any particular use of any equipment, or any technique employed therewith is free of patent or other intellectual property restrictions. Any advice given by Esco in relation thereto is given without liability on Esco's part.

6. The trademarks and names of Esco and its associated companies shall not be used otherwise than as applied by Esco to equipment supplied under this Contract.

13. Warranty

1. Esco products come with a limited warranty. The warranty period will vary depending on the product purchased, beginning on the date of shipment from any Esco international warehousing location. Esco's limited warranty covers defects in materials and workmanship. Esco's liability under this limited warranty shall be, at our option, to repair or replace any defective parts of the equipment, provided that these parts, if proven to the satisfaction of Esco, were defective at the time of being sold and that all defective parts shall be returned, properly identified with a Return Authorization.

This limited warranty covers parts only, and not transportation / insurance charges. This limited warranty does not cover

(a) Freight or installation (inside delivery handling) damage. If your product was damaged in transit, you must file a claim directly with the freight carrier.

(b) Products with missing or defaced serial numbers.

(c) Products for which Esco has not received payment.

(d) Problems that result from: External causes such as accident, abuse, misuse, problems with electrical power, improper operating environmental conditions.

- Servicing not authorized by Esco.

- Usage that is not in accordance with product instructions.

- Failure to follow the product instructions.

- Failure to perform preventive maintenance.

- Using accessories, parts, or components not supplied by Esco.

- Damage by fire, floods, or acts of God.

- Customer modifications to the product

(e) Consumables such as filters (HEPA, ULPA, carbon, pre-filters), gaskets / seals and fluorescent / UV bulbs

2. Factory installed, customer specified equipment or accessories are warranted only to the extent guaranteed by the original manufacturer. The customer agrees that in relation to these products purchased through Esco, our limited warranty shall not apply and the original manufacturer's warranty shall be the sole warranty in respect of these products. The customer shall utilize that warranty for the support of such products and in any event not look to Esco for such warranty support.

3. Esco encourages all users to register their equipment online at www.escoglobal.com/warranty_registrations.php or complete the warranty registration form included with each product.

4. ALL EXPRESS AND IMPLIED WARRANTIES FOR THE PRODUCT, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE LIMITED IN TIME TO THE TERM OF THIS LIMITED WARRANTY. NO WARRANTIES, WHETHER EXPRESS OR IMPLIED, WILL APPLY AFTER THE LIMITED WARRANTY PERIOD HAS EXPIRED. Esco DOES NOT ACCEPT LIABILITY BEYOND THE REMEDIES PROVIDED FOR IN THIS LIMITED WARRANTY OR FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR INCIDENTAL DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY LIABILITY FOR THIRD-PARTY CLAIMS AGAINST YOU FOR DAMAGES, FOR PRODUCTS NOT BEING AVAILABLE FOR USE, OR FOR LOST WORK. Esco'S LIABILITY WILL BE NO MORE THAN THE AMOUNT YOU PAID FOR THE PRODUCT THAT IS THE SUBJECT OF A CLAIM. THIS IS THE MAXIMUM AMOUNT FOR WHICH Esco IS RESPONSIBLE.

14. Safety

So far as reasonably practicable Esco has ensured that its equipment has been so designed and constructed as to be safe and without risks to health when properly installed and used in accordance with Esco's operating instructions. The Customer is responsible for any risks to health or safety from Esco equipment in its possession or control and must ensure that persons who use, maintain or otherwise handle equipment supplied by Esco receive adequate training and safety literature. Safety literature will be supplied by Esco free of charge and may be photocopied by the Customer as required.

15. Limitation of Liability

1. Esco's liability to the Customer, whether in negligence or otherwise, for direct physical damage arising out of or in connection with this Contract, shall be subject to an overall limit of the cost paid for the equipment that is the subject of a claim. Liability for the supply of services or the provision of technical advice for a fee is limited to the amount paid by the Customer.

2. Nothing in these conditions shall restrict Esco's liability for personal injury or death caused by the negligence of Esco or its employees.

3. Except as so provided, neither Esco nor its employees or agents shall have any liability whatsoever to the Customer for negligence or otherwise, and Esco accepts no liability for loss of profit, loss of market or any other indirect or consequential loss whatsoever.

16. Force Majeure

Without prejudice to any other terms hereof Esco shall not be liable for any failure to fulfill its obligations under this Contract if the carrying out of any obligation is hindered or prevented by any event or circumstance beyond Esco's reasonable control or, without prejudice to the generality of the foregoing, strike, lock-out or industrial dispute or failure of breakdown of plant, supplies, transport or equipment. If the delivery of equipment or completion of any work should be delayed for more than six months, the Customer shall be entitled to cancel the Contract or the remainder thereof on payment of a reasonable sum for part performance but shall not be entitled to any other damages or compensation whatsoever.

17. Cancellation

The Customer may not cancel the Contract or any part thereof except by giving written notice which must be acknowledged by Esco. On cancellation, the Customer may be charged for all work done and materials provided up to the time of cancellation plus a charge for the overheads and loss of profit.

18. Termination

If the Customer commits any act of bankruptcy or, being a company, has a receiver appointed or an administration order made against it or goes into liquidation (except for the purpose of reconstruction or amalgamation) or commits any breach of any provision of this Contract, then all sums due hereunder shall immediately become due and payable and Esco may, notwithstanding any previous waiver, terminate this Contract forthwith by written notice, but without prejudice to any prior right of either party.

19. Law

The Contract and these Conditions are governed by the laws of USA, Pennsylvania and shall be subject to the exclusive jurisdiction of the courts of USA, Pennsylvania.