Standard Conditions of Sale:

The conditions stated below shall constitute a part of any agreement resulting from an order for the whole or any part of the equipment covered by this quotation unless expressly excepted therein:

ACCEPTANCE: All orders based on this quotation are subject to acceptance by Texas Energy Control Products, Inc. (hereinafter called TECP).

PRICES AND QUOTATIONS: Except as hereinafter provided orders based on the terms of this quotation, if received by TECP within thirty (30) days from date of this quotation and accepted by TECP, will be billed at the prices quoted. All prices are F.O.B. shipping point unless otherwise specified.

TAXES: The prices quoted herein are subject to any addition which may be necessary to cover any tax or charge now existing or hereafter imposed by Federal, State, or Municipal authorities upon equipment or services herein described, or the production sale, distribution, or delivery thereof, or upon any feature of this transaction.

ERRORS: TECP reserves the right to correct all typographical or clerical errors, which may be present in the prices or specifications in a quotation.

CHANGES IN PRICES: Equipment quoted herein, of manufacture other than TECP, is subject to possible price increase if order placement occurs after expiration of the price protection period specified in the manufacturer’s quotation to TECP.

PAYMENT TERMS: Payment shall be made in accordance with the terms of the quotation if progress payments are specified therein. Otherwise payment shall be made on the basis of net cash thirty (30) days from date of invoice.

CANCELLATION: Purchaser may cancel this order by written notice received by TECP prior to factory acceptance test, or prior to shipment if no factory acceptance test is required, and by paying cancellation charges on the basis of the percentage of work and/or materials completed on the date cancellation notice is received at TECP.

SHIPMENTS AND DELIVERY: Title and risk of loss or damage to the equipment shall pass from TECP to Purchaser upon delivery by TECP to the possession of the carrier. Any claims for loss or damage after risk of loss has passed as herein provided shall be filed with the carrier. TECP shall not be liable for loss or damage from delay in delivery or failure to manufacture due to causes beyond its reasonable control. In the event of such delay in delivery or failure to manufacture, TECP shall not be required to allocate production and deliveries among customers. Shipping and delivery dates are approximate and based on prompt receipt by TECP at its factory of all necessary information, including final agreement or detailed specifications, on such dates or with such lead times as specified in this quotation.

DRAWINGS AND INSTRUCTIONS: A nominal charge will be made for drawings and instructions when called for by the Purchaser.

INSTALLATIONS: All equipment shall be installed by and at the expense of Purchaser unless quoted hereunder and agreed upon.

SELLER’S WARRANTIES AND DISCLAIMERS. Seller warrants to Buyer that any product purchased hereunder will be free from defects of material or workmanship and will conform to specifications. Seller’s sole obligation under this warranty is repair or replacement at Seller’s option of a defective part or nonconforming product for which written claim is made within two years from the date of sale with respect to instrumentation and one year from the date of sale on control valves. Seller expressly disclaims all other warranties whether expressed or implied including without limitation, the implied warranties of merchantability or fitness for a particular purpose. In no event shall Buyer be entitled to recover any consequential or incidental damages. In any event Seller’s liability for a breach of this warranty or any nonconforming products shall expressly be limited to the purchase price thereof. To obtain warranty service, parts must be returned to Seller, freight prepaid. Contact Texas Energy Control Products to obtain return shipping instructions. Repaired items will be returned to Buyer F.O.B. Seller’s warehouse in Saginaw, Texas.

MISCELLANEOUS: The validity, construction and interpretation of this quotation, or of any contract of sale arising out of this quotation, and the rights and duties of the parties thereto shall be governed by the laws of the State of Texas. This quotation constitutes the final, complete and exclusive statement of representations made by TECP, and TECP shall not be bound by representations made herein except to the designated recipient of the quotation.

No waiver, alteration or modification of any of its provisions hereof or of the provisions of any contract arising here from shall be binding on TECP unless in writing and signed by Purchaser and authorized representative of TECP.

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