Terms and Conditions of Sale* CONTRACT Any acceptance by the Company of the Buyer's order is expressly  made,  conditional  on  the  Buyer's  assent  to any  additional  or  different  terms  than  contained  herein or set forth on the Company's order acknowledgment or elsewhere. All orders are received subject to acceptance and may be accepted only at the Company's headquarters    at    Troy,    Ohio,    Hayward,    California    or Lyman, S.C. TAXES The   Company's   prices   do   not   include   any   applicable sales,  use,  excise  or  similar  taxes;  and  the  amount  of any  such  tax  which  the  Company  may  be  required  to pay  or  collect  will  be  added  to  each  Invoice  unless  the Buyer has furnished the Company with an appropriate to exemption certificate. TERMS Terms  are  cash  net  30  days.    Amounts  past  due  are subject to a service charge of 2% per month (or fraction thereof).  If the Company deems that, by reason of the financial    condition    of    the    Buyer    or    otherwise,    the continuance   of   production   or   shipment   on   the   terms specified   herein   Is   not   justified,   the   Company   may requite full or partial payment In advance. DELIVERY Any indicated dates of delivery are approximately only, but-the   Company   will   attempt   to   meet   them   where possible.  The Company shall not be liable for delays In manufacturing  or  delivery  or  failure  to  manufacture  or deliver due to any event In the nature of force  majeure or any cause beyond the Company's reasonable control. The  Company  will  not  be  bound  by  any  penalty  clause contained in any specification or order submitted by the Buyer  unless  such  clause  is  specifically  agreed  to  in writing by the Company. SHIPPING CHARGES Shipments are F.O.B.  Factory.  Freight will be collect. Freight  prepaid  and  billed  as  a  separate  item  on  the product Invoice can be made upon request. PACKING The Company makes no charge for Its standard packing for  domestic  shipment.    The  Buyer  will  be  charged  for export packing or other special packing required. PRODUCT WARRANTY The  Company  warrants  all  its'  products  against  defects In   material   and   workmanship   for   a   period   of   4000 operating hours or for a period not to exceed two years from  date  of  shipment,  whichever  comes  first.    Parts subject to replacement due to operational wear and tear, viz.   Varigear belts, Varimot traction elements and gear unit    oil    seal    assemblies    are    not    covered    by    this extended warranty.  - This warranty is In effect provided: (a) the Buyer notifies the Company in writing of the alleged   defect   immediately   after   It   becomes known   to   the   Buyer   and   (b)   no   alterations, repairs or services have been performed by the Buyer or third parties on the equip ment without the   written   approval   of   the   Company.      The Company's    obligation    under    this    warranty    is limited  to  the  replacement  FOB  Factory  of  any part   or   parts   found   by   the   Company   to   be defective in materials or workmanship. This warranty does not cover damage or defect due to normal wear and tear, misuse, alteration, neglect   or   accident   or   use   of   the   equipment above rated capacity.  The Company shall In no event be liable to the Buyer under this warranty or  otherwise,  for  claims,  expenditures  or  losses arising from operational delays or work stoppages   or   damage   to   property   caused   by defective equipment, or for consequential damages of any nature whatsoever. THIS    WARRANTY    IS    IN    LIEU    OF    ALL    OTHER EXPRESSED OR IMPLIED WARRANTIES, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. PRODUCT SAFETY Company  products  are  designed  and  manufactured  to high quality Industrial standards.  No geared unit is fail- safe   within   Itself   however.      When   risk   to   person   or property  may  be  involved,  a  fall-safe  device  should  be an integral part of the driven equipment. INDEMNITY The Company agrees to Indemnify the Buyer and hold It harmless  from  and  against  any  direct  damage  suffered or liability incurred on account of bodily injury to persons (including  death)  or  damage  or  destruction  of  property whenever  such  loss  or  liability  is  directly  due  to  bodily injury (including death) to any person or damage to any property  occurring  In  the  course  of,  and  caused  by  the act  or  omission  of  the  Company  In  the  performance  of any  work  on  the  premises  of  Buyer  hereunder.    This Indemnity  shall  Include  attorneys  fees  and  settlements of claim or suit reasonable under the circumstances. REGULATORY LAWS AND/OR STANDARDS The Company makes no promise or representation that Its  products  will  conform  to  any  federal,  state  or  local laws,    ordinances,    regulations,    codes    or    standards, except    as    otherwise    specified    and    agreed    upon    In writing as a part, of the contract between Buyer and the Company.    The  Company’s  prices  do  not  Include  the cost  of  any  related  inspections  or  permits  or  Inspection fees. 3