CONDITIONS OF SALE


Mersino Dewatering, Inc. and its branches DBA Global Pump (the "Seller") and the purchasing party on the preceding page (the "Buyer") agree that these Conditions of Sale govern the parties' transactions and these Conditions of Sale are incorporated by reference into the Sales Agreement and any Quotes as if fully stated therein. Acceptance of any goods or equipment by Buyer shall constitute acceptance of these terms.

CONTROLLING PROVISIONS: The following conditions of sale shall constitute the sole conditions with respect to any purchase order or sale of Seller's products. No waiver, alteration or modification of these terms and conditions whether on Buyer's purchase order or otherwise shall be valid unless the waiver, alteration or modification is specifically accepted in writing by Seller. The laws of Michigan shall govern the validity, interpretation and enforcement of any contract of which these provisions are part, without giving effect to any rules governing the conflict of laws. Seller will comply with all laws applicable to Seller. Compliance with OSHA or similar federal, state, or local laws during any operation or use of the product(s) is the sole responsibility of the Buyer. Assignment may be made only with written consent of both parties.

ACCEPTANCE: The Buyer accepts these Conditions without change or addition by placing an order for the products or by accepting the products in whole or in part.

CANCELLATION: Orders are not subject to cancellation or termination except by written agreement of Seller following the Buyer's acceptance of cancellation charges which, in Seller's sole discretion, compensate against loss.

SHIPMENT: Anticipated shipment dates provided by Seller are based upon the best information available at the time and are estimates provided in good faith. Seller makes every effort to ship products within the time frame estimated but cannot assume responsibility for delays beyond its reasonable control when exercising due diligence. In particular, delay due to acts of God, acts of the Buyer (or his agent or representative), acts of any civil, military or legal authority, priorities, fire, strike or other circumstance or event in the nature of force majeure, or delay due to transportation are considered beyond the control of Seller. No liability will be assumed and the Buyer will not expect Seller to assume liability for a penalty or damages (liquidated or otherwise) contained in any contract which the Buyer may have with any third party. Timely performance is contingent upon the Buyer supplying to Seller, when needed, all required technical information, drawing approval, and commercial documentation. Any products for which shipment is delayed by the Buyer, or by causes that affect the Buyer's ability to receive the products, may be placed in storage by Seller for the Buyer's account and risk.

PRICE: Quoted prices are valid for acceptance, by firm order, for a period of 30 days from the date of quotation. Order prices remain firm through the date of shipment providing that shipment is not delayed by the Buyer. However, if the Buyer delays shipment, prices will be those in effect at time of shipment plus storage and handling. Prices do not include sales, use, other taxes or duties unless specifically stated in writing by Seller. When sales, use, other taxes or duties are itemized separately they are subject to adjustment for decrease or increase. Unless otherwise specified, prices are FOB Seller in Davison, Michigan and are expressed in US dollars.

TRANSPORTATION: Unless otherwise stated in writing by Seller, products are FOB Seller in Davison, Michigan and transportation (freight) charges are not included in the price. Transportation is the responsibility of the Buyer. Where the Buyer specifies a method of transportation or carrier, Seller will attempt to comply. However, the right is reserved to substitute, without notice, an alternative method of transportation or carrier where that specified is not available, not practical, or not in the interest of the Buyer or Seller. When FOB destination or freight allowed to destination has been stated in writing by Seller, "destination" means common carrier delivery point within continental North America, excluding Alaska, nearest the destination.

PACKING: Products shall be packed or crated by Seller in accordance with Seller's standard commercial practice unless otherwise agreed in writing.

EXPORT: Products will be export packed or crated by Seller in accordance with Seller's standard commercial practice for below deck stowage unless otherwise agreed. Ocean shipment is the responsibility of the Buyer. However, if Seller agrees to make or arrange for ocean shipment, Seller shall act as agent for the Buyer and reserve the right to procure full insurance coverage, including war risk insurance, at the expense of the Buyer. All expenses incurred in this connection will be payable upon demand to Seller. If Seller as agent applies for or secures manufacturing, financing, exporting or other licenses required by any federal or state government, or any department thereof, Seller shall make such applications or secure such licenses solely as agent for the Buyer, and assumes no responsibility.

PAYMENT: Except by written agreement of Seller, Buyer will make payment in the currency stated on the invoice to Seller net 15 days from shipment by Seller. A payment term of "Net 15 days" is a privilege extended to the Buyer at the sole discretion of Seller. Seller reserves the right not to extend terms to the Buyer and is obligated only to so notify the Buyer prior to shipment. Delinquent accounts will bear a service charge of 1.5% per month, or part thereof, on the unpaid balance and will, in addition, bear any and all costs incurred by Seller in collecting amounts past due. If Buyer delays the shipment, the date of readiness for shipment shall be deemed to be the date of shipment for payment purposes.

WARRANTY: On the date of shipment to the Buyer, Seller warrants title to the products and, except as noted with respect to items not of Seller's manufacturer, that the products are of the kind and quality described, free of defects in workmanship and material that will impair the products function. This warranty is expressly in lieu of all other warranties, including but not limited to implied warranties of merchantability or fitness for a specific purpose which are disclaimed, and constitutes the only warranty of Seller with respect to the products. Any products found by Seller to show such defect within one (1) year of the date of shipment will be replaced or, at Seller's option, repaired free of charge, FOB Seller in Davison, Michigan upon receipt of the defective products at Seller in Davison, transportation (freight) charges prepaid. Products are not to be returned without Seller's prior written authorization and shipping and tagging instructions. The expense of removal and reinstallation of the products, in whole or in part, is expressly the responsibility of the Buyer not Seller. Engines, motors, mechanical seals, flexible couplings and other components not of Seller's manufacture and whether supplied fitted in or on the products or supplied loose are warranted only to the extent that they are expressly warranted by their manufacturer. The Buyer will rely solely upon that manufacturer's warranty, which will be assigned, insofar as possible, to the Buyer. No liability will be assumed and the Buyer will not expect Seller to assume liability for damage, delay, or work done by the Buyer or others resulting directly or indirectly from a defect. This states Buyer's exclusive remedy against Seller and its suppliers relating to the products, whether in contract or in tort or under any other legal theory, and whether arising out of warranties, representations, instructions, installations or defects from any cause. Seller and its suppliers shall have no obligation as to any products which have been improperly stored or handled, or which have not been operated or maintained according to instructions in Seller or supplier furnished manuals.

LIMITATION OF LIABILITY: Neither Seller nor its suppliers shall be liable, whether in contract or in tort or under any other legal theory, for loss of use, revenue or profit; or for cost of capital, substitute use or performance, or for incidental, indirect, special or consequential damages, or for any other loss or cost of similar type, or for claims by Buyer for damages of Buyer's customers. Likewise, Seller shall not, under any circumstances, be liable for fault, negligence or wrongful acts of Buyer or Buyer's employees or Buyer's other contractors or suppliers. In no event shall Seller be liable in excess of the sale price of the products.

TITLE AND INSURANCE: Title to the products and risk of loss or damage shall pass to Buyer at the FOB point, except that a security interest in the products and proceeds and any replacement shall remain in Seller, regardless of mode of attachment to realty or other property, until the full price has been paid in cash. Buyer agrees to do all acts necessary to perfect and maintain said security interest, and to protect Seller's interest by adequately insuring the products against loss or damage from any external cause with Seller named as insured or coinsured.

HYDRAULIC PERFORMANCE: The determination of performance has been based on factory tests under controlled conditions with calibrated and tested equipment in accordance with the Standards of the Hydraulic Institute. Certified tests on pumps ordered will be conducted only if specifically requested prior to order, quoted and subsequently ordered.

INSPECTION AND EXPEDITING: Seller will extend reasonable cooperation to the Buyer's inspection and/or expediting personnel but restricts access to its facilities except as otherwise stated in writing by Seller and in any case to agreed upon reasonable times with a minimum of 72 hours notice prior to each visit. Buyer shall not inspect or expedite Seller's suppliers without prior written approval from Seller.

DRAWINGS, DATA, DOCUMENTATION, TECHNICAL INFORMATION: Drawings, data, documentation and technical information provided may indicate general detail only and may not be specific unless certified by Seller. The copyright in all drawings, data, and other documentation provided by Seller remains vested in Seller and may not be copied or used in any connection without the prior written approval of Seller. Drawings, data, documentation and technical information regarding pump design and/or application, whether or not written, is regarded as the proprietary and confidential intellectual property of Seller. The Buyer expressly agrees to maintain confidentiality and to be accountable for the use of any such information. All concepts or processes supplied by Seller or otherwise resulting or developed from the supply by Seller remain the exclusive properties of Seller.

DESIGN: The products will be in accordance with Seller's current practice. The right is reserved to make changes, without notice, providing overall dimensions and type of construction are not changed as to conflict with the order specifications.