Terms and Conditions of Sale - PDF

Freight Damage Policy - PDF


2015

Terms and Conditions of Sale

Pertaining to Electrical, Insulation, Motors and Parts and Services

1. GENERAL

These Terms and Conditions of Sale (these “Terms”) govern Buyer’s purchase of any electrical, insulation, motors and parts and relatedequipment (the “Products”) or fabrication services (the “Services”) from Essex Group, Inc. through its business units Essex Active or Essex Brownell(collectively, “Seller”). If these Terms are first tendered to Buyer before Buyer tenders a purchase order or similar document to Seller, these Terms arein lieu of any terms later submitted by Buyer and Seller rejects all additional or different terms and conditions of Buyer, whether confirmatory or otherwise.If Seller tenders these terms after the tender by Buyer of other terms, whether as part of a purchase order or otherwise, then Seller’s acceptance of any offerby Buyer associated with Buyer’s terms is expressly conditioned upon Buyer’s acceptance of these Terms exclusively and to the exclusion of any profferedBuyer terms or conditions, regardless of whether these Terms contain any terms additional to, or different from, any terms proffered by Buyer. Buyer’sperformance, or acceptance of, or payment for, any products from Seller will constitute Buyer’s acceptance of these Terms exclusively. If there is anexecuted written sales agreement or quotation in effect between the parties (a “Sales Agreement”), these Terms form a part thereof. Waiver by Seller of anybreach, remedy or provision of these Terms shall not be construed to be a waiver of any succeeding breach or any other provision or legal remedy ofSeller. The section headings of these Terms are for ease of reference only and shall not be admissible in any action to alter, modify or interpret thecontents of any section hereof. The International Convention on the Sale of Goods shall have no application to any sales of Products or Services hereunder.

2. PRICE AND PAYMENT

Orders are not binding upon Seller until accepted by Seller in its sole discretion. No order submitted by Buyer shall be deemed accepted bySeller unless and until either confirmed in writing by Seller or by delivery of the Product specified in the order, and then only on these Terms. Seller maymodify Buyer’s order where necessary as follows: (a) substituting the latest or correct part number or part description for the part number or part descriptionset forth on the order; (b) substituting Seller’s prices in effect as applicable to the order; (c) substituting an estimated delivery schedule whichis reasonable (considering Seller’s stock availability and lead time); and (d) correcting any stenographical or typographical error.

Unless otherwise agreed to in writing by both parties, all accepted orders of the Products and Services will be invoiced at Seller’sprices in effect on the date of shipment, which prices are subject to change from time to time. Credit is extended at the sole discretion of Seller. Ifcredit has been extended, the amount of credit may be changed or credit withdrawn by Seller at any time, in its sole discretion. If a cash discount isstipulated, it is subject to Buyer’s entire account being current. Any discounts given to Buyer by Seller in relation to the price of the Products areconditional upon payment for the Products being made strictly in accordance with the Sales Agreement and these Terms and to Buyer’s entire account for allproducts purchased from Seller being current. Unless otherwise agreed to by Seller in writing, Buyer agrees to pay all amounts due to Seller within thirty(30) days from the date of invoice. Buyer shall pay interest and service charges on overdue invoices from the due date until paid at a rate of 1.5% permonth or the maximum legal rate, whichever is less, and any collection costs of Seller. FAILURE TO PAY ANY AMOUNT WHEN DUE VOIDS ANY WARRANTY.

The parties acknowledge that the prices for and relating to the Products and Services are subject to adjustment in the event there are costincreases created by circumstances such as, but not limited to, changes in government energy policies, fuel and energy increases, metal premium or metalprocessing charges, chemical or material price increases, material and supply shortages, transportation and shipping costs, and price increases enacted bythe manufacturer or supplier of the Products. Any accepted order requiring special manufacturing processes, inspection, specified weight, packaging, testresults, certification, etc., is subject to additional charges. Adjustments can be accepted by Buyer by any legal means.

3. DELIVERY, TITLE, RISK OF LOSS, AND SHIPPING OF PRODUCTS

Title to and risk of loss of the Products shall pass to Buyer upon tender of such Products to Buyer at Seller’s facility or a commoncarrier. Unless otherwise agreed by Seller in writing, shipping terms shall be Ex Works Seller’s factory or warehouse (Incoterms 2010); freight collect. Buyershall have all import and export compliance obligations for international shipment of the Products. If Buyer is a non US entity, then delivery shall bestructured as a routed export transaction pursuant to 15 CFR § 30.

All shipments shall be subject to Seller’s then current shipment terms, including its Freight Policies and minimum order values (asapplicable). Buyer must thoroughly inspect the Products at the time of receipt for signs of damage, discrepancies or a shortage. Inspections of the Productsat the time of delivery shall be commenced in the presence of the carrier’s driver and Buyer shall note on the freight bill any shortages, discrepancies ordamages of any Product received on the carrier's receipt. If concealed loss or damage is discovered, Buyer must report it to the carrier within 15 days fromthe date of receipt.

The pallets, reels and spools Seller uses to ship Products to Buyer shall always remain the property of Seller and are not a component ofBuyer’s purchase. A $750.00 minimum order is required for all export shipments.

4. FREIGHT POLICY

Freight charges and terms are specified in the current Essex Brownell and Essex Active Freight Policies based on whether Buyer qualifies asa Motor Repair Shop or OEM customer. Essex Brownell and Essex Active Freight Policies, as amended from time to time, are incorporated herein by referenceand are available on Seller’s website at www.spsx.com. Seller will attempt to ship +/- 10% of the quantity ordered. Seller’s weights on shipments shallgovern. All orders shipped within +/- 10% of the quantity ordered shall be considered complete. Any shipping date provided by Seller is the Seller’s bestestimate and will not operate to bind Seller to ship or make deliveries on such date.

5. LIMITED WARRANTIES AND DISCLAIMERS

a. Seller warrants to Buyer that at the time of delivery (i) all products manufactured by Seller (”Essex Products”) will conformsubstantially to Seller’s applicable Product Data Sheets at the time of purchase, and (ii) all Services performed by Essex Active will conformsubstantially to the specifications agreed to by Seller. As Buyer’s sole and exclusive remedy and Seller’s entire liability for any breach of the foregoingwarranties, Seller will, at Seller’s option and expense, either refund the purchase price paid, or repair or replace the non-conforming Product that failsto meet this warranty upon return of the nonconforming Product; provided, Buyer notifies Seller of noncompliance in writing within sixty (60) days of deliveryof such non-conforming Product.

b. Seller makes no warranty with respect to products that are not manufactured by Seller (“Third Party Products”). For clarificationpurposes, all underlying Products manufactured by a third party which are fabricated by Seller shall be considered Third Party Products. Seller willprovide Buyer the express limited warranty provided by each manufacturer, if any, on the Third Party Products. Buyer must notify Seller of noncompliance inwriting of any warranty claim within fifteen (15) days of delivery of such Third Party Product. Buyer agrees to cooperate with Seller in processing allwarranty claims for Third Party Products with the manufacturer. THE WARRANTIES AND REMEDIES PROVIDED BY MANUFACTURERS FOR THIRD PARTY PRODUCTS ARE EXCLUSIVEAND IN LIEU OF ALL OTHER EXPRESS AND IMPLIED WARRANTIES WHATSOEVER. THE THIRD PARTY PRODUCTS SOLD BY SELLER ARE OTHERWISE SOLD AS IS.

c. Transportation charges to and from Seller’s location for the return of nonconforming Products to Seller and their re-shipment to Buyerand the risk of loss thereof will be borne by Seller. Buyer shall use Seller’s designated carrier for all re-shipments. These warranties do not apply to anyProduct that was not properly stored or handled by the Buyer, that was repaired or altered or was otherwise subject to abuse, neglect or improper use by Buyer,or that has any stage of processing performed on it which causes the defect. EXCEPT FOR THE SPECIFIC WARRANTIES SET FORTH IN THIS SECTION 5, SELLER MAKES NOOTHER WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS, SERVICES OR PERFORMANCE OF ITS OBLIGATIONS HEREUNDER, AND SPECIFICALLYDISCLAIMS ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Without limitation, under no circumstances shall Seller be liable forany costs associated with reworking, re-manufacturing or scrapping goods in which defective Product supplied by Seller was incorporated, for any costsassociated with production stoppages, machinery breakdown or recall campaigns, or for any trouble shooting, administrative or engineering charges.

6. CLAIMS OF PATENT INFRINGEMENT

Seller shall conduct, at its own expense, the entire defense of any claim, suit, action or other proceedings (“Claim”) brought against Buyerby a third party alleging that any Essex Product infringes upon any United States patent of any third party; provided, however: (i) Seller receives promptwritten notice of the Claim; (ii) Seller has full control of the defense and all related settlement negotiations; (iii) the Essex Products are madeaccording to a specification or design furnished by Seller, or if a process patent is involved, the process performed by the Essex Products are recommendedin writing by Seller; and (iv) Buyer provides Seller with all necessary assistance, information and authority to perform the defense and negotiatesettlement thereof. Provided all four of the foregoing conditions are met, Seller shall, at its own expense, either settle said Claim or shall pay alldamages (excluding incidental, consequential, statutory, or punitive damages) and costs awarded by the court therein. If the use or resale of such EssexProducts is finally enjoined, Seller shall, at Seller’s option, procure for Buyer the right to use or resell the Essex Products, replace them withequivalent non-infringing Essex Products, modify them so they become non-infringing but equivalent, or remove them and refund the purchase price(less a reasonable allowance for use, damage or obsolescence). Buyer shall indemnify and hold Seller harmless from all Claims based upon (i) the use of aEssex Product customized for Buyer based on Buyer’s ideas, specifications or designs, (ii) the performance of a process performed by the Essex Products notrecommended in writing by Seller, or (iii) the use or sale of the Essex Products delivered hereunder in combination with other products not deliveredto Buyer by Seller. Seller is not the manufacturer of any of the Third Party Products purchased under this Agreement and, as a result, Seller has nointellectual property rights with respect to the Third Party Products and makes no warranty with respect to patents, trademarks or copyrights.

7. EXCUSABLE PERFORMANCE

Seller is excused from performing any of its obligations under these Terms, any order or Sales Agreement if its performance isprevented, hindered or delayed by delays of suppliers, acts of God, nature, governments or their agencies, terrorism, war or sabotage, compliance in goodfaith with any applicable foreign or domestic governmental regulation or order (whether or not it proves to be invalid), fires, riots, inability to supply orobtain products, materials, raw materials, supplies, fuel or utilities from normal sources of supply, labor disputes, work stoppages, lockouts, delays intransportation, earthquakes, floods, storms or other severe weather conditions, power shortages or power failures or any other events or circumstances beyondSeller’s reasonable control (an “Event”). To the extent an Event delays Seller’s performance, such performance shall be extended for as many daysbeyond the due date until the delay concludes; provided, however, if Seller is unable to perform any of its obligations under any order due to an Event formore than thirty (30) days, it may in its sole option terminate, without liability or penalty, any Sales Agreement, order or obligation in whole or inpart. If there is an interference, limitation or cessation of any material from Seller’s source of supply for any reason, Buyer agrees to relieve the Sellertemporarily, proportionately, or permanently of liability under these Terms or any Sales Agreement or order, depending upon whether the interruption of thesource of supply is a temporary interruption, a reduced delivery of materials, or a permanent cessation of supply. In the event there is a Product shortagepursuant to this section, Seller may ration and distribute such Products as it deems appropriate.

8. TAXES AND EXPORTS

Any and all taxes (not including any U.S. income or excess profit taxes attributable to Seller) which may be imposed by any taxingauthority, arising from the sale, delivery or use of the Products or Services and for which Seller may be held responsible for collection or payment, eitheron its own behalf or that of Buyer, shall be paid by Buyer to Seller upon Seller’s demand. Export orders are subject to applicable export regulations andrequirements. Buyer disclaims in favor of Seller any right or interest in, the drawback of duty, taxes or surcharges paid on imported material contained inthe Products.

9. FINANCIAL RESPONSIBILITY OF BUYER

Buyer’s solvency is a condition of Seller’s performance and Seller may, at any time, in its sole discretion for credit reasons (including agood faith belief that a current or future payment is or may be impaired) or because of Buyer’s breach of this or any other agreement with Seller, suspendor change credit terms, fix a limit on credit, require progress payments, demand payment in full of any outstanding balance, accelerate all unpaid amounts owedby Buyer including the unwinding of previously priced quantities, withhold shipments, demand COD or request other assurances of payment, cancel orterminate any order or agreement (including forward buys), or repossess all Products previously delivered, which Products shall become the absoluteproperty of Seller subject to credit therefore. Buyer grants to Seller a security interest in Products delivered hereunder to secure Buyer’s obligationsunder these Terms and any Sales Agreement and grants to Seller the right to execute, deliver, and/or file any financing statement or do any other thingreasonably necessary to perfect Seller’s security interest. Notwithstanding any other provision of these Terms, Seller reserves the right in its absolutediscretion from time to time to require payment in full of the price of the Products or Services before delivery of all or any of the Products orperformance of Services.

If the Products are delivered in the Province of Quebec, Canada, the following additional provisions apply:

a) Notwithstanding anything in these Terms to the contrary, Seller hereby agrees to sell to Buyer by way of an installment sale and Buyerhereby agrees to purchase from Seller on such basis, the universality of all Seller Products sold from time to time by Seller to Buyer, subject to and inaccordance with these Terms;

b) Without limiting the generality of any provision of the Sales Agreement or these Terms, Seller and Buyer hereby confirm that Sellershall remain the absolute owner of the Seller Products and shall retain and reserve the right of ownership in respect of the Seller Products until allobligations of Buyer to Seller under the Sales Agreements and these Terms in respect of each such Seller Products have been paid and satisfied in full; and

c) It is the intention of Seller and Buyer that the rights of Seller hereunder be subject to a single registration pursuant to Article2961.1 of the Civil Code of Quebec with respect to the Seller Products located in Quebec.

Seller may terminate any order or Sales Agreement by written notice to Buyer if (i) a receiver or trustee is appointed for any of Buyer’sproperty; (ii) Buyer is adjudicated or voluntarily becomes bankrupt or a debtor under any bankruptcy, dissolution or reorganization laws or similar law; (iii)Buyer becomes insolvent or makes an assignment for the benefit of creditors; (iv) an execution is issued pursuant to a judgment rendered against Buyer; or(v) Buyer is unable or refuses to make payment to Seller. If any order or Sales Agreement is terminated by Seller pursuant to this section, Seller shall berelieved of any further obligation to Buyer and Buyer shall reimburse Seller for its termination costs and expenses and a reasonable allowance for profit.

In addition to any right of set off or recoupment provided by law, Buyer agrees that all its accounts with Seller will be administered ona net settlement basis and that Seller may set off debits and credits, including Seller’s attorney fees and costs of enforcement, against any ofBuyer’s accounts regardless of the basis for such debits and credits and without advance notice. In this section, “Seller” includes Seller’s parent,subsidiaries and affiliates, and “Buyer” includes Buyer’s parent, subsidiaries and affiliates.

10. CANCELLATIONS AND RETURNS

All orders accepted by Seller are non-cancelable unless (i) such order is cancelled in writing within twenty-four hours of Seller’s receiptof such order and (ii) the Products ordered were standard stock items and not manufactured as special or customized items. If paid for, cancelled Productsmay be returned for credit only. Return of any Product must be authorized by Seller. Seller will issue a formal RETURN MATERIAL AUTHORIZATION (RMA) tag tosupport all authorized returns. For any credit, this document must provide the Buyer’s order number, Seller’s invoice number, description, and quantity ofitem to be returned, and reason for request. Standard Stock Items are returnable at invoice price less a 20% restocking charge, freight prepaid byBuyer to Seller’s designated location. Non-stock items and/or special items are not subject to return. All material must be returned to Seller undamaged and inthe original packaging.

11. LIMITATION OF LIABILITY

IN NO EVENT WILL SELLER BE LIABLE TO BUYER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, DELAY, OR CONSEQUENTIAL DAMAGES, INCLUDINGWITHOUT LIMITATION, LOSS OF DIRECT OR INDIRECT PROFITS, REVENUE, OR USE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE, EVEN IF BUYER OR ANY OTHERPARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL SELLER’S AGGREGATE LIABILITY TO BUYER EXCEED ALL AMOUNTS ACTUALLY PAID BY BUYERTO SELLER. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF THE LIMITED REMEDY SET FORTH IN SECTION 5.

12. CONFIDENTIALITY

Buyer will not disclose to third persons any proprietary or confidential information of Seller concerning its business and operations,including without limitation, pricing information, for a period of five (5) years from the date such confidential information was learned or forconfidential information meeting the definition of “trade secret” under applicable law, until such information is no longer a “trade secret.” The obligationsof confidentiality in this Section 12 do not apply to Confidential Information to the extent that the Confidential Information becomes readily ascertainableby proper means by the public other than through breach of this Section 12 by Buyer.

13. CHOICE OF LAW

These Terms and all accepted orders shall be construed in accordance with the laws of the State of Georgia, United States of Americawithout regard to its conflict of law principles. Buyer agrees that any and all disputes with Seller, including contract and tort claims, shall be resolved inthe state and federal courts situated in Georgia, and that these courts shall have the exclusive jurisdiction over all such disputes and Buyer consents tothe personal jurisdiction in these courts. Any action brought by Buyer against Seller shall be within one (1) year after the cause of action arises or itshall be deemed forever waived.

14. ADDITIONAL TERMS

The provisions of these Terms, the Freight Policies and the Sales Agreement, if any, constitute the entire agreement between Buyer andSeller with respect to the matter contained herein and supersedes any prior oral or written communications, understanding, representations, proposals oragreements with respect to such subject matter. Seller may revise these Terms from time to time. These Terms may not be amended or modified by the Buyerexcept upon the execution of a written agreement signed by both parties indicating an intent to modify these Terms. Neither Buyer nor Seller may assignany of its rights or obligations hereunder or under any order; provided, however, that Seller shall be permitted to assign any of its rights orobligations under these Terms, Sales Agreement or any order in connection with the sale or transfer of all or substantially all of its business, whether bymerger, reorganization, consolidation, transfer of assets, transfer of equity interests, or otherwise. If any provision of these Terms or a Sale Agreement isinvalid, unenforceable or in conflict with any law, such provision shall be deemed severed from these Terms and/or the Sale Agreement and the validity ofthe remainder of these Terms and/or the Sale Agreement shall not be affected thereby. The provisions of these Terms that by their nature are reasonablyintended by the parties to survive the expiration or termination of the Terms or any accepted order, including without limitation sections 4, 5, 11, 12, 13and this section 14, shall survive the expiration or termination of the Terms or any accepted order.

15. LANGUAGE

Buyer confirms its express wish that these Terms and any other documents related thereto be drawn up in the English language. L’Acheteurconfirme sa volonté expresse que les presents Termes ainsi que toute documentation y afferent soient rédigés en anglais. Las partes ratifican quehan solicitado que este contrato y sus documentos accesorios sean redactados en idioma inglés, para que dicha versión sea la única con efectos legales.

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