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<br />'-' <br /> <br />-...I <br /> <br />instructions may cause damage to the Products and will void the warranties provided hereunder. <br />Seller shall have the right to inspect Products stored by Buyer prior to installation. If Products are <br />stored by Buyer for a period of 90 days or more, Buyer shall reimburse Seller for all reasonable costs <br />of inspection. <br />4. PRODUCT ACCEPTANCE Except for Products that are not assembled at Seller's facility, Buyer <br />has the right to inspect Products at Seller's facility prior to shipment provided that advance written <br />arrangements are made by Buyer and are confirmed in writing by Seller. Any and all costs associated <br />with inspection and testing requested by Buyer at Seller's facility will be paid by Buyer. <br />Buyer shall inspect the Products upon receipt at the destination. Unless Products are subject to an <br />Acceptance Test as specified below, the Buyer's failure to inspect the Products and give written notice <br />to Seller of any alleged defects or non-conformity within ten (10) days after receipt at the destination <br />shall constitute Buyer's Irrevocable acceptance of the Products delivered. <br />If Seller's Documentation provides that the Products are subject to specific acceptance testing (the <br />"Acceptance Tesf') in order to verify Product performance in accordance with agreed specifications, <br />the Products shall be deemed fully accepted when they have satisfied the requirements of the <br />Acceptance Test. If Buyer is responsible for conducting the Acceptance Test, the Acceptance Test <br />shall be conducted as soon as practicable, but in no event later than 90 days after delivery, failing <br />which the Products will be deemed to be automatically accepted without conducting the Acceptance <br />Test. <br />Notwithstanding any right conferred upon the Buyer to inspect or test the Products prior to <br />acceptance, any use or alteration of the Products by Buyer, its agents, employees or licensees, for <br />any purpose after delivery thereof, shall constitute Buyer's irrevocable acceptance of the Products. <br />Accordingly, in the event of any discovery by Buyer of a non-conformity or defect following such <br />acceptance of the Products, Buyer's sole recourse is a warranty claim pursuant to the warranty <br />provisions stated herein. <br />5. INSTALLATION AND/OR START UP SERVICES If Seller's scope of supply includes installation <br />supervision and/or start up services, Buyer will confirm to Seller at least two (2) weeks prior to the <br />date Seller's personnel will be required on site to perform such services that Buyer has fully completed <br />all work necessary for such installation and/or start up services in accordance with Seller's <br />instructions. In the event that the completion of such services is delayed by Buyer for any reason not <br />the fault of Seller following Seller's arrival on site, Buyer shall pay for any additional costs resulting <br />from the deiay. <br />To the extent that Seller's scope of supply includes supervising the installation of the Products, Seller <br />shall not be responsible for the means and methods selected for such installation, nor for the manner <br />in which such installation services are performed, including the efficiency, adequacy and safety of <br />same. Any recommendations or advice provided by Seller are an accommodation and Seller makes <br />no warranty, express or implied, with respect to such assistance. <br />6. CANCELLATION Unless otherwise provided in Seller's Documentation, if Buyer cancels or <br />partially cancels an order, Buyer shall promptly pay Seller for all work performed on account of the <br />Products prior to cancellation and for any other costs incurred by Seller as a result of such <br />cancellation, less the cost of any items that, in Seller's judgment, can be restocked, which shall be <br />subject to a 10% restocking fee. In addition, Buyer shall promptly pay Seller as liquidated damages <br />and not as a penalty an amount equal to 10% of the difference between the contract price hereunder <br />and the amounts due pursuant to the preceding sentence. <br />7. WARRANTY Subject to the conditions stated below, Seller warrants the Products against defects <br />in materials and workmanship for a period of eighteen (18) months from the date in which title has <br />passed to Buyer or twelve (12) months from the date of installation of the Products, whichever occurs <br />first. Seller shall, at its option, repair or replace any Products or components thereof that prove upon <br />examination to the satisfaction of Seller to be defective. Any alteration, disassembly, storage or use of <br />the Products not in accordance with Seller's instructions shall void the warranty. Buyer assumes full <br />responsibility in the event Buyer uses the Products in combination with other goods or in any manner <br />not stated in Buyer's specifications provided prior to sale. All costs associated with removing the <br />Products from service and re-installing same following examination, repair or replacement are to be <br />borne by Buyer. Seller may, in its sole discretion, require that the Products be shipped to Seller's <br />facility for examination, repair or replacement. All transportation costs to and from Seller's facility, if <br />required, are to be prepaid by Buyer. If so stated in Seller's Documentation, the Products or <br />designated components thereof are covered only by the warranty extended by the original <br />manufacturer and not by the terms of Seller's warranty as specified above. In the event of a warranty <br />issue regarding such Products or components thereof, Buyer should contact the original manufacturer <br />directly. Seller, at Buyer's request, will act as an agent between Buyer and the original manufacturer <br />to resolve warranty issues. If Seller acts as an agent for such purpose, Buyer must return the <br />Products, or the appropriate components, to the designated manufacturer's facility, shipping charges <br />prepaid. Buyer's sole remedy is the original manufacturer's warranty. SELLER MAKES NO <br />WARRANTY, EXPRESS OR IMPLIED, INCLUDING A WARRANTY OF MERCHANTABILITY OR <br />FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO SUCH PRODUCTS OR <br />COMPONENTS. THE WARRANTIES SET FORTH HEREIN, IF ANY, ARE MADE EXPRESSLY IN <br /> <br />Severn Trent Water Purification, Inc. <br /> <br />Page 5 of7 <br />