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Standard Terms and Conditions of Sale ( 2 of 3 )

data. Products will not be accepted for return unless an RGA (Return Goods Autho- rization) number has been assigned by Seller and the product for return or repair is shipped prepaid. Products returned for warranty evaluation must be complete (without missing components), and unaltered (not disassembled, manipulated cleaned or the like). The product(s) must have the original model tag fully intact. Products returned for warranty consideration are subject to a $100 minimum fee plus any additional handling charges in the event that the reason for the return is not covered by Seller's warranty. Additional handling fees are to cover the cost of failure analysis, testing and the like. All handling charges will be waived for products that are subject to a valid warranty claim. Products to be returned for warranty are to be shipped prepaid via Seller assigned carrier. Return for Credit. Over the years AIHTI has made substantial investments in engi- neering, computers, “CNC” computer numeric controlled manufacturing technology, and computer enterprise system. As a result of this technology, any order received by American Industrial is immediately processed and in many cases ordered products or parts are manufactured the same day. Due to this unique innovative manufacturing capability, every product is manufactured specifically for each customer order. AIHTI expects the customer to verify the accuracy of the product prior to placing an order. Therefore, American Industrial will not accept any product for credit, exchange, or restock. Repairs . Products being returned for repair, refit, test or similar matters must be drained completely prior to shipment. Purchaser must clearly label the product with information to identify the Purchaser and Seller's RGA number. Purchaser should also include a note with instructions for service, failure, nature of problem and the fluids that are used inside of the product. A base handling charge of $100 will be applied for each product regardless of condition that it is in when returned for evaluation. Prod- ucts being returned for evaluation must be shipped prepaid. Quotations for repair, test, cleaning, and similar matters will be issued shortly after return to Seller. All products returned shall be considered abandoned by Purchaser and may be scrapped if the Purchaser or shipper renders no disposition instructions after 45 days from notification by written quotation. Seller does not warranty any repaired products under any cir- cumstances. Products repaired and the repairs are the sole responsibility of the owner of the products. Products sent to Seller for evaluation will be returned, upon request and at the owner’s expense. Quality Assurance. Seller shall have no obligation to ensure that any goods or services purchased from Seller meet any special quality assurance specifications and/or other requirements unless such specifications and/or other requirements are set forth in Purchaser's purchase order or separately provided in writing to Seller and, in either case, expressly accepted in this Seller's Acknowledgment and Purchaser represents that goods which it purchases from Seller will not be applied by Purchaser or resold by Purchaser for application to, any critical end use, including, without limitation, use in connection with or in any way related to the construction or operation of a nuclear facility unless the appropriate specification and/or other requirement for such end use is set forth in Purchaser's purchase order and is expressly accepted in a separate writing by Seller. In the event that any such goods or any services supplied by Seller in con- nection therewith are applied to a critical end use without the appropriate specification and/or other requirement therefor having been set forth in Purchaser's purchase order and expressly accepted in a separate writing by Seller, Purchaser shall indemnify and hold Seller harmless against any and all damages or claims for damages made by any person for any injury, fatal or nonfatal, to any person or for any damage to the property of any person incident to or arising out of such application, including, without limitation, any loss resulting from radioactive, toxic, explosive, or other hazardous properties of source material, special nuclear material, or by-product material as such terms are defined in the Atomic Energy Act of 1954 or any law amendatory thereof or regulations adopted pursuant thereto. The Seller reserves the right to improve its products through changes in design or material, as it may deem desirable without being obligated to incorporate such changes in products of prior manufacture. Cancellation. Purchaser Orders cannot be cancelled without cause by Purchaser without the express written consent of the Seller. Should Purchaser attempt to cancel an order without cause, Purchaser shall reimburse Seller against all loss occasioned by such cancellation, including loss of anticipatory profits and liability for commitments made by Seller relating to the Purchase Order and shall purchase any existing inven- tory and work in process which Seller has in its possession to fulfill Seller's existing orders for Purchaser at the time of cancellation. As used herein, "cause" shall mean a material breach of Seller's duties and obligations hereunder and the failure to cure such breach after Purchaser notifies Seller of such breach and affords Seller a reasonable time to cure same.

LIMITED WARRANTY. SELLER MAKES NO WARRANTIES EXPRESSED OR IMPLIED, INCLUDING BUT NOT BY WAY OF LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY AND ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, ON ANY ORDER EXCEPT THAT SELLER WARRANTS TITLE TO ALL GOODS FURNISHED BY SELLER AND EXCEPT THAT SELLER WARRANTS FOR A PERIOD OF ONE YEAR FROM THE DATE MARK LOCATED ON THE SELLER'S IDENTIFICATION TAG THAT ALL GOODS DESCRIBED ON SELLER'S ACKNOWLEDGMENT OF PURCHASER'S PURCHASE ORDER WILL BE MANUFACTURED IN ACCOR- DANCE WITH THE SPECIFICATIONS, IF ANY, SET FORTH IN SAID PUR- CHASE ORDER AND EXPRESSLY ACCEPTED IN SELLER'S ACKNOWLEDG- MENT SUBJECT TO SELLER'S STANDARD MANUFACTURING VARIATIONS AND PRACTICES. IN THE CASE OF COMPONENTS OR ACCESSORIES FURNISHED BY SUPPLIERS TO SELLER, PURCHASER'S WARRANTY FROM SELLER SHALL BE LIMITED TO THE WARRANTY OF THE COMPONENT OR ACCESSORY SUPPLIER. THE FOREGOING WARRANTIES ARE THE SOLE AND EXCLUSIVE WARRANTIES APPLICABLE TO THE GOODS DELIV- ERED, AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, ARE HEREBY EXPRESSLY DISCLAIMED AND NEGATED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER ACKNOWLEDGES THAT SELLER'S PRODUCTS ARE NOT PACKAGED OR PROTECTED FOR LONG PERIODS OF STORAGE AND THUS MAY CORRODE OR RUST OVER TIME. Damaged Goods. If any goods should arrive at Purchaser's destination in a damaged condition or should a shortage occur, Purchaser shall immediately report the damage or shortage to the delivering carrier and to Seller. Any loss or shortage occasioned by damage or otherwise occurring in transit will be for account of Purchaser. Allegedly defective goods or parts are to be returned by Purchaser to a destination specified by Seller, freight charges prepaid by Purchaser. All repairs and replacements are subject to verification and inspection by Seller. Seller shall not be responsible for costs of de- installation and re-installation of goods or parts returned. Claims . Claims respecting the condition of goods, compliance with specifications or any other matter affecting goods shipped to Purchaser must be made promptly and, unless otherwise agreed to in writing by Seller, in no event later than twenty-one (21) days after receipt of the goods by Purchaser. Purchaser shall set aside, protect and hold such goods without further processing until Seller has an opportunity to inspect and advise of the disposition, if any, to be made of such goods. In no event shall any goods be returned, reworked or scrapped by Purchaser without the express written authoriza- tion of Seller. If field service is rendered by the Seller at Purchaser's request and the alleged defect is found not to be with the Seller's product, component or accessory, the Purchaser shall pay for the time and expenses of the field representative. Bills for service, labor or other expenses that have been incurred by the Purchaser, their cus- tomer or agent, without approval or authorization by the Seller, will not be accepted. Changes or repairs attempted or made in the field without Seller's written authorization automatically void all warranties. LIMITATION OF PURCHASER'S REMEDIES. PURCHASER'S REMEDIES WITH RESPECT TO ANY CLAIM ARISING OUT OF ANY ORDER, ANY GOODS DELIVERED PURSUANT TO ANY ORDER AND EXPRESSLY ACCEPTED IN SELLER'S ACKNOWLEDGMENT, OR SELLER'S PERFORMANCE IN CON- NECTION WITH ANY ORDER, INCLUDING, WITHOUT LIMITATION, ANY CLAIM ARISING OUT OF ANY RECALL, DEFECT OR ALLEGED DEFECT IN ANY GOODS OR SERVICES FURNISHED BY SELLER, SHALL BE LIMITED EXCLUSIVELY TO THE RIGHT OF REPAIR OR REPLACEMENT OF SUCH GOODS OR SERVICES, AT SELLER'S OPTION. WITHOUT IN ANY WAY LIMITING THE GENERALITY OF THE FOREGOING, IN NO EVENT SHALL SELLER BE LIABLE FOR ANY CONSEQUENTIAL OR INCIDENTAL DAM- AGES, INCLUDING, WITHOUT LIMITATION, ANY LOSS OF ANTICIPATED PROFITS INCURRED BY PURCHASER WITH RESPECT TO ANY GOODS OR SERVICES FURNISHED BY SELLER, OR ANY DAMAGES ARISING FROM IN- JURIES TO PERSONS AS A RESULT OF PURCHASER'S OR A THIRD PARTY'S NEGLIGENCE. SELLER'S WARRANTY DOES NOT COVER FAILURES RESULTING FROM THE IMPROPER INSTALLATION, MOUNTING DESIGN OR APPLICATION OR FROM CORROSION. THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL TERM OF THIS TRANSACTION. Warranty Procedures. If Purchaser experiences a problem with Sellers goods and be- lieves that it is covered by Seller's warranty, or Purchaser has equipment that needs to be repaired or replaced, contact Seller through Purchaser's local distributor. The basic information that Purchaser will need to begin the process is the complete nameplate

Confidentiality and Publicity: Purchaser shall consider all information furnished by Seller to be confidential and shall not disclose any such information to any person,

note: AIHTI reserves the right to make reasonable design changes without notice.

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tel: 434-757-1800 355 American Industrial Drive LaCrosse, VA 23950

email: sales@aihti.com fax: 434-757-1810

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