Sales Agreement

This Sales Agreement is between Buyer and Chief Automation and incorporates the General Terms and Conditions for the Sale of Goods being provided by Chief Automation (the “Terms”), and together they all constitute the entire agreement between a Buyer and Chief Automation in connection with the purchase and sale of Goods and govern the purchase and sale of Goods (“Agreement”). In the event of any conflicts or ambiguities between this Sales Confirmation and the Terms, the Sales Confirmation shall take precedence.

GENERAL TERMS AND CONDITIONS FOR THE SALE OF GOODS

1. Applicability.

 a. These terms and conditions of sale (these “Terms”) are the only terms which govern the sale of the goods (“Goods”) by Chief Automation LLC (“Chief Automation”) to buyer listed on the Sales Confirmation (“Buyer”). Notwithstanding anything herein to the contrary, if a written contract signed by both parties is in existence covering the sale of the Goods covered hereby, the terms and conditions of said contract shall prevail to the extent they are inconsistent with these Terms.

 b. The accompanying confirmation of sale (the “Sales Confirmation” and these Terms (collectively, this “Agreement”) comprise the entire agreement between the parties, and supersede all prior or contemporaneous understandings, agreements, negotiations, representations and warranties, and communications, both written and oral. These Terms prevail over any of Buyer’s general terms and conditions of purchase regardless whether or when Buyer has submitted its purchase order or such terms. Fulfillment of Buyer’s order does not constitute acceptance of any of Buyer’s terms and conditions and does not serve to modify or amend these Terms.

2. Delivery.

 a. Goods will be delivered within a reasonable time after the receipt of Buyer’s purchase order, subject to availability of finished Goods. Chief Automation shall not be liable for any delays, loss or damage in transit.

 b. Unless otherwise agreed in writing by the parties, Chief Automation shall deliver the Goods to the Delivery Point using Chief Automation’s standard methods for packaging and shipping such Goods. Buyer shall take delivery of the Goods within three (3) days of Chief Automation’s written notice that the Goods have been delivered to the Delivery Point. Buyer shall be responsible for all loading costs and provide equipment and labor reasonably suited for receipt of the Goods at the Delivery Point.

c. Chief Automation may, in its sole discretion, without liability or penalty, make partial shipments of Goods to Buyer. Each shipment will constitute a separate sale, and Buyer shall pay for the units shipped whether such shipment is in whole or partial fulfillment of Buyer’s purchase order.

 d. If for any reason Buyer fails to accept delivery of any of the Goods on the date fixed pursuant to Chief Automation’s notice that the Goods have been delivered at the Delivery Point, or if Chief Automation is unable to deliver the Goods at the Delivery Point on such date because Buyer has not provided appropriate instructions, documents, licenses or authorizations: (i) risk of loss to the Goods shall pass to Buyer; (ii) the Goods shall be deemed to have been delivered; and (iii) Chief Automation, at its option, may store the Goods until Buyer picks them up, whereupon Buyer shall be liable for all related costs and expenses (including, without limitation, storage and insurance).

3. Non-Delivery.

a. The quantity of any installment of Goods as recorded by Chief Automation on dispatch from Chief Automation’s place of business is conclusive evidence of the quantity received by Buyer on delivery unless Buyer can provide conclusive evidence proving the contrary.

b. Chief Automation shall not be liable for any non-delivery of Goods (even if caused by Chief Automation’s negligence) unless Buyer gives written notice to Chief Automation of the non-delivery within five (5) days of the date when the Goods would in the ordinary course of events have been received. 

 c. Any liability of Chief Automation for non-delivery of Goods shall be limited to replacing the Goods within a reasonable time or adjusting the invoice respecting such Goods to reflect the actual quantity delivered.

4. Quantity. If Chief Automation delivers to Buyer a quantity of Goods of up to ten percent (10%) more or less than the quantity set forth in the Sales Confirmation, Buyer shall not be entitled to object to or reject the Goods or any portion of them by reason of the surplus or shortfall and shall pay for such Goods the price set forth in the Sales Confirmation adjusted pro rata.

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5. Shipping Terms. Chief Automation shall make delivery in accordance with the terms on the face of the Sales Confirmation.

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6. Title and Risk of Loss. Title and risk of loss passes to Buyer upon delivery of the Goods at the Delivery Point. As collateral security for the payment of the purchase price of the Goods, Buyer hereby grants to Chief Automation a lien on and security interest in and to all of the right, title and interest of Buyer in, to and under the Goods, wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the foregoing. The security interest granted under this provision constitutes a purchase money security interest under the North Carolina Uniform Commercial Code.

7. Amendment and Modification. These Terms may only be amended or modified in a writing which specifically states that it amends these Terms and is signed by an authorized representative of each party.

8. Inspection and Rejection of Nonconforming Goods.

 a. Buyer shall inspect the Goods within thirty (30) days of receipt (“Inspection Period”). Buyer will be deemed to have accepted the Goods unless it notifies Chief Automation in writing of any Nonconforming Goods during the Inspection Period and furnishes such written evidence or other documentation as reasonably required by Chief Automation. “Nonconforming Goods” means only the following: (i) product shipped is different than identified in Buyer’s purchase order; or (ii) product’s label or packaging incorrectly identifies its contents.

b. If Buyer timely notifies Chief Automation of any Nonconforming Goods, Chief Automation shall, in its sole discretion, (i) replace such Nonconforming Goods with conforming Goods, or (ii) credit or refund the Price for such Nonconforming Goods, together with any reasonable shipping and handling expenses incurred by Buyer in connection therewith. Buyer shall ship, at its expense and risk of loss, the Nonconforming Goods to Chief Automation’s facility located at 223 S. West St. Suite 900 Raleigh, NC 27603. If Chief Automation exercises its option to replace Nonconforming Goods, Chief Automation shall, after receiving Buyer’s shipment of Nonconforming Goods, ship to Buyer, at Buyer’s expense and risk of loss, the replaced Goods to the Delivery Point.

c. Buyer acknowledges and agrees that the remedies set forth in Section 8(a) are Buyer’s exclusive remedies for the delivery of Nonconforming Goods. Except as provided under Section 8(a), all sales of Goods to Buyer are made on a one-way basis and Buyer has no right to return Goods purchased under this Agreement to Chief Automation. It is the Buyer's responsibility to review the Manufacturer's Recall Notices regarding its products on by signing up for notifications from the product Manufacturer or by checking the product Manufacturer's website on a regular basis for Recall Notices.

9. Price.

 a. Buyer shall purchase the Goods from Chief Automation at the price(s) (the “Price(s)”) set forth in Chief Automation’s published price list in force as of the date that Chief Automation accepts Buyer’s purchase order.

 b. All Prices are exclusive of all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any governmental authority on any amounts payable by Buyer. Buyer shall be responsible for all such charges, costs and taxes; provided, that, Buyer shall not be responsible for any taxes imposed on, or with respect to, Chief Automation’s income, revenues, gross receipts, personnel or real or personal property or other assets.

 c. Buyer acknowledges that there is a twenty-five percent (25%) restocking fee on returned Goods.

10. Payment Terms.

a. Buyer shall pay all invoiced amounts due to Chief Automation within thirty (30) days from the date of Chief Automation’s invoice. Buyer shall make all payments hereunder by wire transfer, check, or credit card and in US dollars.

b. Buyer shall pay interest on all late payments at the lesser of the rate of two percent (2.0%) per month or the highest rate permissible under applicable law, calculated daily and compounded monthly. Buyer shall reimburse Chief Automation for all costs incurred in collecting any late payments, including, without limitation, attorneys’ fees. In addition to all other remedies available under these Terms or at law (which Chief Automation does not waive by the exercise of any rights hereunder), Chief Automation shall be entitled to suspend the delivery of any Goods if Buyer fails to pay any amounts when due hereunder and such failure continues for thirty (30) days following written notice thereof.

c. Buyer shall not withhold payment of any amounts due and payable by reason of any set-off of any claim or dispute with Chief Automation, whether relating to Chief Automation’s breach, bankruptcy or otherwise.

11. Limited Warranty.

a. Chief Automation warrants to Buyer that for a period of one (1) year from the date of shipment of the Goods (“Warranty Period”), that such Goods will be free from material defects in material and workmanship.

b. EXCEPT FOR THE WARRANTY SET FORTH IN SECTION 11(a), CHIEF AUTOMATION MAKES NO WARRANTY WHATSOEVER WITH RESPECT TO THE GOODS, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.

c. Products manufactured by a third party (“Third Party Product”) may constitute, contain, be contained in, incorporated into, attached to or packaged together with, the Goods. Third Party Products are not covered by the warranty in Section 11(1). For the avoidance of doubt, CHIEF AUTOMATION MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO ANY THIRD- PARTY PRODUCT, INCLUDING ANY (A) WARRANTY OF MERCHANTABILITY; (B) WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; (C) WARRANTY OF TITLE; OR (D) WARRANTY AGAINST INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS OF A THIRD PARTY; WHETHER EXPRESS OR IMPLIED BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE.

d. Chief Automation shall not be liable for a breach of the warranty set forth in Section 11(a) unless: (i) Buyer gives written notice of the defect, reasonably described, to Chief Automation within ten (10) days of the time when Buyer discovers or ought to have discovered the defect; (ii) Chief Automation is given a reasonable opportunity after receiving the notice to examine such Goods and Buyer (if requested to do so by Chief Automation) returns such Goods to Chief Automation’s place of business at Chief Automation’s cost for the examination to take place there; and (iii) Chief Automation reasonably verifies Buyer’s claim that the Goods are defective.

e.  Chief Automation shall not be liable for a breach of the warranty set forth in Section 11(a)  if: (i) Buyer makes any further use of such Goods after giving such notice; (ii) the defect arises because Buyer failed to follow Chief Automation’s oral or written instructions as to the storage, installation, commissioning, use or maintenance of Goods; or (iii) Buyer alters or repairs such Goods without the prior written consent of Chief Automation.

f. Subject to Section 11(d) and Section 11(e) above, with respect to any such Goods during the Warranty Period, Chief Automation shall, in its sole discretion, either: (i) repair or replace such Goods (or the defective part) or (ii) credit or refund the price of such Goods at the pro rata contract rate provided that, if Chief Automation so requests, Buyer shall, at Chief Automation’s expense, return such Goods to Chief Automation.

g. THE REMEDIES SET FORTH IN SECTION 11(F) SHALL BE THE BUYER’S SOLE AND EXCLUSIVE REMEDY AND CHIEF AUTOMATION’S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED WARRANTY SET FORTH IN SECTION 11(A).

h. Chief Automation does not warrant to Buyer that it is an authorized reseller or seller for the Goods sold to Buyer under these Terms. Chief Automation’s warranty set forth in this Section 11 is the only warranty that applies to the Goods. The Buyer confirms that they have reviewed Chief Automation's Product Conditions. 

i. Chief Automation does not warrant to Buyer that its performance under these Terms is in compliance with the laws, regulations, and ordinances of any jurisdiction out of the United States.

j. Many products sold by Chief Automation may have software installed. However, Chief Automation does not make any representations as to whether any new surplus or refurbished products do or do not have any software, including any firmware, installed, and for any such products that do have software whether the software needs any updates, upgrades, or revisions. Chief Automation also does not make any representations about the ability to obtain any updates, upgrades, or revisions to software, or install updates, upgrades or revisions to any surplus or refurbished products. Chief Automation does not, and will not, obtain any software for any surplus and refurbished products. Software, and any updates, upgrades, or revisions to software may be subject to terms of a license, and it is the responsibility of anyone purchasing or using software, including any updates, upgrades, or revisions to software, to follow the terms of that license.

12. Limitation of Liability.

 a. IN NO EVENT SHALL CHIEF AUTOMATION BE LIABLE TO BUYER OR ANY THIRD PARTY FOR ANY LOSS OF USE, REVENUE OR PROFIT OR LOSS OF DATA OR DIMINUTION IN VALUE, OR FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT CHIEF AUTOMATION HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.

b. IN NO EVENT SHALL CHIEF AUTOMATION’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED THE TOTAL OF THE AMOUNTS PAID TO CHIEF AUTOMATION FOR THE GOODS SOLD HEREUNDER.

13. Compliance with Law. Buyer shall comply with all applicable laws, regulations, and ordinances. Buyer shall maintain in effect all the licenses, permissions, authorizations, consents and permits that it needs to carry out its obligations under this Agreement. Buyer shall comply with all export and import laws of all countries involved in the sale of the Goods under this Agreement or any resale of the Goods by Buyer. Buyer assumes all responsibility for shipments of Goods requiring any government import clearance. Chief Automation may terminate this Agreement if any governmental authority imposes antidumping or countervailing duties or any other penalties on Goods.

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14. Termination. In addition to any remedies that may be provided under these Terms, Chief Automation may terminate this Agreement with immediate effect upon written notice to Buyer, if Buyer: (i) fails to pay any amount when due under this Agreement and such failure continues for fifteen (15) days after Buyer’s receipt of written notice of nonpayment; (ii) has not otherwise performed or complied with any of these Terms, in whole or in part; or (iii) becomes insolvent, files a petition for bankruptcy or commences or has commenced against it proceedings relating to bankruptcy, receivership, reorganization or assignment for the benefit of creditors.‌

15. Waiver. No waiver by Chief Automation of any of the provisions of this Agreement is effective unless explicitly set forth in writing and signed by Chief Automation. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement operates, or may be construed, as a waiver thereof. No single or partial exercise of any right, remedy, power or privilege hereunder precludes any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.‌

16. Confidential Information. All non-public, confidential or proprietary information of Chief Automation, including but not limited to specifications, samples, patterns, designs, plans, drawings, documents, data, business operations, customer lists, pricing, discounts or rebates (collectively, “Confidential Information”), disclosed by Chief Automation to Buyer, whether disclosed orally or disclosed or accessed in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as “confidential” in connection with this Agreement is confidential, solely for the use of performing this Agreement and may not be disclosed or copied unless authorized in advance by Chief Automation in writing. Upon Chief Automation’s request, Buyer shall promptly return all Confidential Information received from Chief Automation. Chief Automation shall be entitled to injunctive relief for any violation of this Section. This Section does not apply to information that is: (a) in the public domain; (b) known to Buyer at the time of disclosure; or (c) rightfully obtained by Buyer on a non-confidential basis from a third party. Buyer may disclose Confidential Information as required to be disclosed by law, any regulatory agencies or supervisory authorities, to the extent required to comply with that legal obligation, provided that Buyer promptly notify Chief Automation of such obligation, unless otherwise prohibited by such law or legal obligation.

17. Force Majeure. No party shall be liable or responsible to the other party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations of Buyer to make payments to Chief Automation hereunder), when and to the extent such failure or delay is caused by or results from acts beyond the impacted party’s (“Impacted Party”) reasonable control, including, without limitation, the following force majeure events (each, a “Force Majeure Event”): (a) acts of God; (b) flood, fire, earthquake, epidemic, or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order, law, or actions; (e) embargoes or blockades in effect on or after the date of this Agreement; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns, or other industrial disturbances; (h) shortage of adequate power or transportation facilities; (i) other similar events beyond the reasonable control of the Impacted Party. The Impacted Party shall give notice within five (5) days of the Force Majeure Event to the other party, stating the period of time the occurrence is expected to continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure Event are minimized. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event that the Impacted Party’s failure or delay remains uncured for a period of thirty (30) days following written notice given by it under this Section 18, either party/the other party may thereafter terminate this Agreement upon five (5) days’ written notice.

18. Assignment. Buyer shall not assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of Chief Automation. Chief Automation may assign any of its rights or delegate any of its obligations to any affiliate or to any person acquiring all or substantially all of seller’s assets without buyer’s consent. Any purported assignment or delegation in violation of this Section is null and void. No assignment or delegation relieves Buyer of any of its obligations under this Agreement.

19. Relationship of the Parties. The relationship between the parties is that of independent contractors. Nothing contained in this Agreement shall be construed as creating any agency, partnership, joint venture or other form of joint enterprise, employment or fiduciary relationship between the parties, and neither party shall have authority to contract for or bind the other party in any manner whatsoever.

20. No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of these Terms.

21. Governing Law. All matters arising out of or relating to this Agreement is governed by and construed in accordance with the internal laws of the State of North Carolina without giving effect to any choice or conflict of law provision or rule (whether of the State of North Carolina or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than those of the State of North Carolina.

22. Submission to Jurisdiction. Any legal suit, action or proceeding arising out of or relating to this Agreement shall be instituted in the federal courts of the United States of America or the courts of the State of North Carolina in each case located in the City of Raleigh and County of Wake, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding.

23. Notices. All notices, request, consents, claims, demands, waivers and other communications hereunder (each, a “Notice”) shall be in writing and addressed to the parties at the addresses set forth on the face of the Sales Confirmation or to such other address that may be designated by the receiving party in writing. All Notices shall be delivered by personal delivery, nationally recognized overnight courier (with all fees pre-paid), facsimile (with confirmation of transmission) or certified or registered mail (in each case, return receipt requested, postage prepaid). Except as otherwise provided in this Agreement, a Notice is effective only (a) upon receipt of the receiving party, and (b) if the party giving the Notice has complied with the requirements of this Section.

24. Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

25. Survival. Provisions of these Terms which by their nature should apply beyond their terms will remain in force after any termination or expiration of this Agreement including, but not limited to, the following provisions: Insurance, Compliance with Laws, Confidential Information, Governing Law, Submission to Jurisdiction, and Survival.