TERMS AND CONDICTION OF SALE
All offers, orders and deliveries of Chung Hsin Electric & Machinery Mfg. Corp., a Taiwanese company (“CHEM”), products, software, goods or parts (“Products”) are subject to the provisions of the Sales Quote for such Products (“Sales Quote”) and the Terms and Conditions (“Terms and Conditions”) set forth below, which are collectively referred to as the “Terms of Sale.”
1. General Terms.
1.1 Offer. The Sales Quote is an offer by CHEM to the purchaser named in the Sales Quote (“Purchaser”) for the sale of the Products described in the Sales Quote (“Offer”). The Offer is subject to all of the Terms of Sale. Purchaser must deliver to CHEM an acceptance in writing within the time prescribed in the Sales Quote, or if no such time is prescribed, within ten (10) days of mailing or transmission of the Sales Quote to Purchaser, or the Offer will expire without further notice or obligation of CHEM.
1.2 Order. Purchaser’s acceptance (a) must refer specifically to the number identified in the Sales Quote, (b) must be for the entire quantity of Products identified in the Sales Quote and (c) will be subject to all of the Terms of Sale without alteration. An accepted Offer is referred to as an “Order.” An Order includes only the Products specified in the Sales Quote and does not include installation, accessory or associated materials (such as cabling, conduit, controls, piping, connectors or other materials) unless specifically listed in the Sales Quote. Any additional or different terms or conditions in any communication from Purchaser are hereby objected to and shall not be effective unless specifically accepted by CHEM in writing.
1.3 Price. Purchaser agrees to pay the price set forth in the Sales Quote (“Price”) for the Products. Unless otherwise specified in the Sales Quote, the Price is quoted F.O.B. CHEM’s shipping point and does not include installation, training or set-up fees. The Price does not include any sales, use or privilege tax, customs duty, import tax or excise tax based on gross revenue or any similar tax or charge which might be levied as a result of the production, sale or shipment of any Products or the use of any Products. Purchaser agrees to pay and otherwise be fully responsible for any such taxes (except for taxes based on the net income of CHEM). Without limiting the foregoing, Purchaser will be responsible for any personal property taxes assessable on the Products after delivery. CHEM will have the right, but will not be obligated, to pay any such taxes directly, in which event Purchaser will reimburse CHEM for such payments.
1.4 Payment and Reimbursements. Purchaser will pay the Price according to the terms of payment specified in the Sales Quote. Purchaser will reimburse CHEM for any amounts subject to reimbursement under the Terms of Sale within fifteen (15) days after CHEM invoices Purchaser for such reimbursable amounts. All payments are to be made to CHEM in United States dollars at its principal place of business identified in the Sales Quote. If Purchaser fails to pay the Price or any other amount payable to CHEM under the Terms of Sale when the same is due, interest will be due and payable at the rate equal to the lesser of one and one-half percent (1.5%) per month, or the maximum rate allowable by applicable law, on all balances outstanding from such payment’s due date until fully paid. Purchaser may not hold back, offset or set off any amounts owed to CHEM in satisfaction of any claims asserted by Purchaser against CHEM.
2. Deliveries.
2.1 Risk of Loss. Unless CHEM otherwise specifies in writing, all deliveries of Products are F.O.B. CHEM’s shipping point. All risk of loss to Products will pass to Purchaser upon delivery by CHEM of the Products to a common carrier identified in the Sales Quote or, if no common carrier is identified, selected by CHEM.
2.2 Conditions. Delivery schedules represent CHEM estimates only, and partial deliveries are permissible. CHEM will use reasonable commercial efforts to meet delivery schedules. Delivery of Products is conditioned on (a) CHEM’s timely receipt of all documents necessary for the completion of the Order, (b) CHEM’s receipt of any and all required payments, (c) Purchaser’s compliance with the Terms of Sale and (d) Purchaser’s maintenance of credit satisfactory to CHEM. CHEM may suspend or delay its performance under an Order or delivery of any Products at any time pending receipt of assurances satisfactory to CHEM of Purchaser’s ability to pay the Price or any other amounts payable to CHEM. If Purchaser fails to promptly provide such assurances, CHEM may cancel all or a portion of any Order without further liability or obligation to Purchaser.
2.3 Postponement or Refusal of Shipment. If Purchaser requests postponements of shipments, the Price will be due and payable upon notice from CHEM that the Products are ready for shipment, and thereafter any storage or other charge CHEM incurs on account of the Products will be for Purchaser’s account. If Purchaser refuses delivery, CHEM may store the Products at Purchaser’s expense. For all purposes of the Terms of Sale, such tender of delivery or storage will constitute delivery of the Products.
3. Inspection and Acceptance; Rejection.
3.1 Inspection; Acceptance. Purchaser’s inspection of the Products will be conducted by Purchaser at its expense with assistance from CHEM as set forth in the Sales Quote and in accordance with CHEM’s testing procedure, as may be modified by CHEM from time to time. Purchaser must notify CHEM pursuant to Section 3.2 of any claimed discrepancy between the specifications for the Products in the Sales Quote (“Specifications”) or Purchaser will be deemed to have accepted the Products as delivered; provided, however, that if the Sales Quote specifies that any of the Products are development models, such Products will meet the general intention of the mechanical and operational Specifications but need not be in strict compliance with the Specifications.
3.2 Rejection. Purchaser may reject Products only if (a) such Products fail to conform to the Specifications for reasons attributable to defects in workmanship or materials and (b) Purchaser delivers to CHEM written notice of such rejection within ten (10) days after delivery of the Products describing in detail the basis of Purchaser’s rejection. Purchaser’s rejection of any Products will not relieve Purchaser of its obligation to pay for any other Products or Purchaser’s further performance under the Terms of Sale.
3.3 Verification. CHEM will have the right to inspect and test any rejected Products at the point of Purchaser’s inspection following notification from Purchaser under Section 3.2. The results of CHEM’s inspection and testing will be final and conclusive with respect to whether any Products are properly rejected by Purchaser.
3.4 Exclusive Remedy for Rejected Products. If all or any portion of Products delivered to Purchaser are properly rejected, CHEM will, AS THE EXCLUSIVE REMEDY AVAILABLE TO PURCHASER UNDER THE TERMS OF SALE, do one of the following, in CHEM’s sole discretion: (a) repair or replace any such Products; or (b) cancel in whole or in part the applicable Order and refund to Purchase any amounts already paid to CHEM in connection with the cancelled portion of the Order. If CHEM elects to repair or replace any Products, CHEM will repair or replace such Products within sixty (60) working days of the rejection and such repaired or replacement Products will be shipped to Purchaser at CHEM’s expense. Notwithstanding the foregoing, if any Products were not properly rejected by Purchaser, all transportation and other charges (including labor) with respect to shipment and inspection of such Products will be borne by Purchaser.
4. Intellectual Property Ownership and License.
4.1 Ownership. Title and full ownership rights to all copyrights, patents, trade secrets, trademarks and other intellectual property (“Intellectual Property”) contained in or accompanying the Products remain the exclusive property of CHEM or its suppliers, and Purchaser will not acquire any rights to such Intellectual Property except as expressly set forth in the Terms of Sale. CHEM reserves any right not expressly granted to Purchaser, and except as set forth in Section 4.2, the sale does not convey any license to manufacture, duplicate, or other wise copy or reproduce any of the Products.
4.2 Limited License. The Products may include embedded operating software (“Firmware”) and software to enable review of data generated by the Products (“Data Viewer”). The Firmware and Data Viewer are the “Software.” CHEM hereby grants Purchaser a limited, non-exclusive, non-transferable, royalty free license to do only the following: (a) use the Firmware on the Products in connection with the normal and intended operation of the Products; (b) install and maintain the Data Viewer on one computer at any time for use by Purchaser only in connection with the Products; (c) make one copy of the Data Viewer in machine-readable form solely for backup or archival purposes for the computer on which such software is installed; and (d) in connection with a permitted transfer of the Products, assign Purchaser’s rights under the license in this Section 4.2 to the party receiving the Products.
4.3 Certain Limitations on Use of Products. Purchaser acknowledges that each Product has incorporated therein significant proprietary information and rights of CHEM. Without CHEM’s prior written permission, Purchaser will not, directly or indirectly: (a) reverse engineer, decompile, or disassemble any part of the Products; (b) modify, translate, or create derivative works based on any part of the Products; (c) rent, lease, distribute, sell, resell, assign, or otherwise transfer rights to the Software; (d) use the Software for times