Agreement for Sale Equipment and Related Software
Agreement made on the ________________ (date) , between ____________________
(Name of Buyer) of ____________________________________________________________
__________________ (street address, city, county, state, zip code) , referred to herein as
Buyer , and ____________________ (Name of Seller) , of _____________________________
________________________________________________ (street address, city, county,
state, zip code) , referred to herein as Seller .
1. Sale of Equipment
Buyer agrees to purchase from Seller the equipment described in the attached Exhibit A
(the Equipment ). Reference in this Agreement to Equipment shall be deemed to include
Software except where otherwise indicated, and reference to Equipment or Software shall be
deemed to include any Services to be performed.
2. Price
The price and time of payment for the Equipment (the Contract Price ) is as follows:
A. $ ________________ shall be due ________________ (date) ; and
B. $ ________________ shall be due upon receipt of shipment.
The Contract Price includes all the items referred to in Exhibit A . Any amounts payable by
Buyer under this Agreement which remain unpaid after delivery shall be subject to a late charge
equal to _____% per month from the due date until such amount is paid. Prices for Equipment
specified in this Agreement are exclusive of all city, state and federal taxes, including, but not
limited to, taxes on manufacture, sales, receipts, gross income, occupation, use and similar
taxes. Buyer agrees to pay such taxes directly or to reimburse Seller for all such taxes, whether
imposed on Buyer and required to be collected by Seller, or imposed on Equipment or on Buyer
in connection with this sale. Wherever applicable, such tax or taxes shall be invoiced separately.
Buyer agrees to pay all personal property taxes that may be levied against Equipment after the
date of delivery.
3. Delivery
Seller shall use its reasonable efforts to deliver the Equipment to Buyer between _____
(number of days) and ______ (number of days) days following order. Delivery shall be made
to a domestic location designated by Buyer and all transportation, shipping and handling
charges shall be paid by Seller. Times quoted for delivery or readiness for operation represent
Seller's best estimates and Seller shall in good faith endeavor to meet such stated times, but
reserves the right to vary the times of shipment and delivery and shall not be liable for any loss,
injury, damage or other expense which Buyer or any other party may suffer by reason of such
variation. Delivery may be subject to issuance of required licensing and approvals by local, state
and federal regulatory bodies.
4. Payment Terms
Unless other terms of payment are agreed to in writing, payment of the Contract Price,
including but not limited to payment for Services performed under this Agreement, shall be
made to Seller. Any down payment shall be nonrefundable except in the case that the Seller
does not accept the Order, in which case the down payment will be refunded promptly. In the
event Buyer refuses or otherwise declines to accept delivery of Equipment under this
Agreement, Seller may, as Buyer's agent and without liability to Seller, store or arrange for
storage of such declined Equipment at Buyer's expense, and such Equipment shall be deemed
to be delivered at the time it is either put into storage or turned over to the carrier for shipment,
whichever occurs first. Any amounts which become due from Buyer under this Agreement may
not be set off against any other amounts which may be due from Seller to Buyer under this
Agreement or otherwise. Unless otherwise stated, all prices are in U.S. dollars.
5. Acceptance
The criterion for acceptance of Equipment is the successful operation of the Equipment
using Seller's standard test procedures and diagnostic test programs applicable to the
Equipment involved. All acceptance tests will be conducted prior to delivery and will be run by
Seller’s personnel. If Buyer or its representative fails to witness such tests, performance of the
tests will not be delayed. Acceptance will be deemed to have been made upon successful
completion of the acceptance tests as evidenced by issuance of a test certificate.
6. Title and License
Title and risk of loss to the Equipment shall pass to Buyer at the time the Equipment is
delivered to Buyer. All Software is made available in accordance with the terms and conditions
of this Agreement and the terms and conditions of Seller's Individual End User Software License
Agreement, which is attached to this Agreement as Exhibit B , incorporated and made a part of
this Agreement by this reference.
7. Variations and Extras
The Equipment and Services provided by Seller shall be those specified in this
Agreement as accepted in writing by Seller. Should Seller agree to any variations from or extras
beyond the requirements of the accepted order, which involve extra cost to Seller, or should
Seller incur extra cost owing to delays caused by Buyer's instructions, incorrect instructions,
lack of instructions, or other matters within the responsibility of Buyer, or Buyer's agents or
subcontractors, such extra costs may be charged by Seller and shall be paid for by Buyer and
the scheduled delivery or completion dates shall be appropriately extended.
8. Specifications and Performance
The Equipment supplied will be substantially in accordance with the specifications
provided to Buyer, subject to reasonable variations plus or minus. Such reasonable variations
shall not be made the basis of any claim against Seller or its suppliers. Seller shall not be
responsible for performance figures given in any source other than the specifications. Seller
reserves the right to supply Equipment in fulfillment of its obligations under this Agreement, the
design or construction of which has been modified, provided that the general performance of the
Equipment is not adversely affected. Unless otherwise stated, the Equipment will be packaged
in accordance with normal air freight packing standards.
9. Operation of the Equipment
Buyer shall be responsible for operation of the Equipment. Buyer shall operate the
Equipment in a reasonably competent manner and in compliance with the operations manual for
the Equipment. Buyer shall comply with all applicable rules, laws, and regulations in connection
with operation of the Equipment.
10. Infringement Indemnity Agreement
Seller will defend and indemnify Buyer against a claim that the Equipment infringes a
United States copyright or patent, provided that: (a) Buyer notifies Seller in writing within
_______ (number of days) days of the claim; (b) Seller has sole control of the defense and all
related settlement negotiations; and (c) Buyer provides Seller with the assistance, information
and authority necessary to perform Seller's obligations under this Section Ten. Reasonable out-
of-pocket expenses incurred by Buyer in providing such assistance will be reimbursed by Seller.
Seller shall have no liability for any claim of infringement based on use of Equipment altered by
Buyer. In the event the Equipment is held or is believed by Seller to infringe, Seller shall have
the option, at its expense, to: (a) modify the Equipment to be non-infringing; (b) obtain for Buyer
a license to continue using the Equipment; or (c) refund the fees paid for the Equipment. This
Section 10 states Seller's entire liability and Buyer's exclusive remedy for infringement,
misappropriation or related claims.
11. Waiver and Disclaimer
A. Seller warrants that Equipment will be free from defects in workmanship and
materials and will conform to applicable specifications for a period of ______ (number)
months from the date of shipment or _____ (number) hours of ____________________
_____________________ (type of equipment) operation, whichever comes first (the
Warranty Period , provided Buyer gives written notice to Seller of any defect within the
Warranty Period or within _______ (number) days after the end of the Warranty Period.
The Warranty on the Equipment is prorated (that is, for example, if Equipment became
defective after four months, the Buyer would pay to Seller four-twelfths of the price of a
replacement of the Equipment. Credit toward refurbishment or replacement will be given
to Buyer, at Seller's option, and will be prorated from the date of original shipment or for
the Warranty Period, as specified. This Warranty is valid only if the Equipment is
operated with non-defective electronic and control equipment supplied by and in
accordance with written instructions by Seller.
B. As a first resort, field service engineering (FSE) personnel or subcontractors will
provide on-site warranty service, maintenance and parts replacement as to the defective
Equipment at Buyer's location. In the event FSE or the subcontractors cannot perform
the necessary diagnostics, maintenance or repair at Buyer's facilities, Buyer will be
required to return for repair such defective Equipment to Seller's designated repair
facility at no cost within ______ (number) days after notice. Seller will be responsible for
any transportation, insurance and all other charges to and from Seller's designated
repair facility and will promptly reimburse Buyer any shipping and handling charges
incurred by Seller or its representatives. So long as Seller is so notified of any such
defect in workmanship or materials within the Warranty Period , Seller will correct the
defect by making any necessary repairs or, at its option, by providing replacements for
such defective Equipment, parts, or components of the same (Parts). It is recommended
for efficiency and timeliness that replacement be made by FSE or subcontractors from a
stock of Parts separately purchased by Seller. Defective Parts, if replaced, will become
the property of Seller. All other charges, including, but not limited to, FSE travel, on-site
labor, removal and reinstallation fees, shall be assumed by Seller during the Warranty
Period .
C. Buyer will pay Seller the cost of all charges, to include but not limited to a
reasonable charge for examination and rework, if the returned Equipment proves not to
be defective or if at Buyer's request Seller performs work upon returned Equipment
exceeding Seller's obligations under this Warranty.
D. This Warranty extends only to the original Buyer of the Equipment from Seller.
This Warranty does not apply to, and Seller assumes no responsibility for, damage or
defects due to any cause other than those specified above, including, but not limited to,
damage or defects arising as a result of misuse, improper installation by non-authorized
Buyer personnel or non-authorized subcontractors, accident, neglect, modification,
repair by Buyer, subjection to adverse conditions, demands exceeding performance
levels required by applicable specifications or operating instructions furnished by Seller,
failure to carry out recommended servicing, or from the use of components or
replacement parts other than those supplied or approved in writing by Seller.
E. It shall be incumbent upon the Buyer to show evidence of faulty parts or
workmanship when operated or tested in any other manner. The liability of Seller arising from
the supply or use of the Equipment, whether it arises under Warranty or otherwise, shall be
limited solely to correcting defects or providing replacement parts to the Buyer as set forth
above in this Agreement and is limited to the period of the Warranty.
IN NO EVENT SHALL TOTAL LIABILITY EXCEED THE TOTAL CONTRACT PRICE. IN NO EVENT
SHALL SELLER BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, NOR
SHALL IT BE LIABLE FOR ANY OTHER DAMAGES, EXCEPT AS PROVIDED ABOVE IN THIS
AGREEMENT. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR
IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. ANY INSTALLATION, MAINTENANCE, REPAIR, SERVICE, RELOCATION
OR ALTERATION TO OR OF, OR OTHER TAMPERING WITH, THE PRODUCTS PERFORMED BY
ANY PERSON OR ENTITY OTHER THAN SELLER WITHOUT SELLER'S PRIOR WRITTEN
APPROVAL, OR ANY USE OF REPLACEMENT PARTS NOT SUPPLIED BY SELLER, SHALL
IMMEDIATELY VOID AND CANCEL ALL WARRANTIES WITH RESPECT TO THE AFFECTED
PRODUCTS. THIS WARRANTY IS EXCLUSIVE AND IS MADE IN LIEU OF ALL OTHER
WARRANTIES. THE GOODS SPECIFICALLY COVERED UNDER THIS WARRANTY ARE OF AN
EXPERIMENTAL NATURE. NO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
PARTICULAR PURPOSE ARE EXPRESSED OR IMPLIED. NO MODIFICATION OR ALTERATION OF
THE FOREGOING WARRANTY AND LIMITATION OR REMEDIES PROVISIONS SHALL BE VALID
OR ENFORCEABLE UNLESS SET FORTH IN A WRITTEN AGREEMENT SIGNED BY SELLER AND
BUYER. THE INDEMNITIES IN SECTION TEN AND SECTION SIXTEEN AND THE WARRANTY IN
THIS SECTION ELEVEN IS EXCLUSIVE AND IN LIEU OF ALL OTHER INDEMNITIES OR
WARRANTIES, WHETHER EXPRESSED OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
12. Nondisclosure
By virtue of this Agreement, Buyer may have access to information that is confidential to
Seller (Confidential Information). Confidential Information shall include, but not be limited to, the
terms and pricing under this Agreement, the technical and other specifications for the
Equipment and all information clearly identified as confidential or proprietary, including, but not
limited to, drawings, designs, specifications, manuals or information relating in any way to the
Equipment, howsoever issued, including all oral communications subsequently identified in
writing by Seller as proprietary, without the prior written permission of Seller. Confidential
Information shall not include information that: (i) is or becomes a part of the public domain
through no act or omission of Buyer; (ii) was in Buyer's lawful possession prior to the disclosure
and had not been obtained by Buyer either directly or indirectly from the disclosing party; (iii) is
lawfully disclosed to Buyer by a third party without restriction on disclosure; or (iv) is
independently developed by Buyer. Buyer agrees to hold Confidential Information in confidence
during the term of this Agreement and for a period of _____ (number) years after termination of
this Agreement. Buyer agrees that unless required by law, it shall not make Confidential
Information available in any form to any third party or to use Confidential Information for any
purpose other than the implementation of this Agreement. Buyer agrees to take all reasonable
steps to ensure that Confidential Information is not disclosed or distributed by its employees,
representatives or agents in violation of the terms of this Agreement. Copyright in all materials
made available by Seller shall remain with Seller at all times. The provisions of this Section 12
shall survive any termination of this Agreement.
13. Rights in Data
Seller retains full ownership of all inventions, designs, copyrights, processes and data
already made or evolved by Seller in the preparation of or during the course of any work under
or resulting from this Agreement.
14. Limitation of Liability
IN NO EVENT SHALL SELLER BE LIABLE FOR ANY INDIRECT, INCIDENTAL, PUNITIVE,
SPECIAL OR CONSEQUENTIAL DAMAGES, OR DAMAGES FOR LOSS OF PROFITS, REVENUE,
OR USE INCURRED BY BUYER OR ANY THIRD PARTY, WHETHER IN AN ACTION IN CONTRACT,
OR TORT, OR OTHERWISE EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
SELLER'S LIABILITY FOR DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS
AGREEMENT SHALL IN NO EVENT EXCEED THE PURCHASE PRICE OF THE DEFECTIVE
EQUIPMENT. THE PROVISIONS OF THIS AGREEMENT ALLOCATE THE RISKS BETWEEN SELLER
AND BUYER. SELLER'S PRICING REFLECTS THIS ALLOCATION OF RISK AND BUT FOR THIS
ALLOCATION AND LIMITATION OF LIABILITY, SELLER WOULD NOT HAVE ENTERED INTO THIS
AGREEMENT.
15. Indemnity
Buyer shall indemnify and hold harmless Seller from and against any and all liability,
damages, costs, losses and expenses arising out of or in connection with any personal injury,
including death, or any damage to property or business which may be suffered by use,
operation, or failure to operate of the Equipment furnished under this Agreement except for the
negligent acts of Seller.
16. Force Majeure
If Seller's ability to perform its obligations under this Agreement is limited, delayed or
prevented in whole or in part by any reason whatsoever not reasonably within the control of
Seller, or its suppliers, including, but not limited to, act of God, war, invasion, act of foreign
enemy, hostilities, civil war, rebellion, civil strife, strikes or industrial dispute, or by any law, rule,
regulation, order or other action by any public authority, transportation delays or the refusal of
any necessary license, then Seller shall be excused, discharged, and released of performance
to the extent such performance is so limited, delayed or prevented, without liability of any kind.
17. If this Agreement is terminated or cancelled, then, at Seller's option, and in addition to all
other remedies available at law or in equity: (1) Buyer shall accept delivery of and make
payment for all Equipment which is either finished or ready for shipping; and (2) Buyer shall
reimburse Seller for all costs of all material, all other costs, including but not limited to, general,
selling and administrative expenses, and a reasonable profit on the terminated portion of this
Agreement. Filing of a petition in bankruptcy, commencement of any insolvency proceeding, or
execution of an assignment for the benefit of creditors shall, at the option of Seller, shall be
deemed a cancellation by Buyer.
18. To secure payment and performance of all of Buyer's obligations under this Agreement,
Seller retains title to the Equipment and a security interest in the Equipment until payment in full
and performance by Buyer of all such obligations. When requested by Seller, Buyer shall duly
acknowledge this Agreement, and execute, acknowledge and deliver to Buyer, in Seller's usual
form, a supplement to this Agreement, security agreement, financing statement and other
appropriate instruments to constitute the Equipment as the unencumbered security for the
obligations of Buyer under this Agreement, or to enable Seller to comply with all applicable filing
or recording laws.
19. Buyer agrees to comply fully with all relevant export laws and regulations of the United
States (Export Laws) to assure that the Equipment is not: (1) exported, directly or indirectly, in
violation of Export Laws; or (2) intended to be used for any purposes prohibited by Export Laws.
Buyer agrees that the Equipment will only be used or operated in the United States and other
territories approved in writing by Seller.
20. Seller is an independent contractor; nothing in this Agreement shall be construed to
create a partnership, joint venture or agency relationship between the parties.
21. Severability
The invalidity of any portion of this Agreement will not and shall not be deemed to affect
the validity of any other provision. If any provision of this Agreement is held to be invalid, the
parties agree that the remaining provisions shall be deemed to be in full force and effect as if
they had been executed by both parties subsequent to the expungement of the invalid provision.
22. No Waiver
The failure of either party to this Agreement to insist upon the performance of any of the
terms and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as subsequently waiving any such terms
and conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
23. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance with the
laws of the State of ______________.
24. Notices
Any notice provided for or concerning this Agreement shall be in writing and shall be
deemed sufficiently given when sent by certified or registered mail if sent to the respective
address of each party as set forth at the beginning of this Agreement.
25. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party
in the action shall pay to the successful party, in addition to all the sums that either party may be
called on to pay, a reasonable sum for the successful party's attorney fees.
26. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by binding arbitration
of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one
arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration
Association then in force and effect.
27. Entire Agreement
This Agreement shall constitute the entire agreement between the parties and any prior
understanding or representation of any kind preceding the date of this Agreement shall not be
binding upon either party except to the extent incorporated in this Agreement.
28. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by either party in
connection with this Agreement shall be binding only if placed in writing and signed by each
party or an authorized representative of each party.
29. Assignment of Rights
The rights of each party under this Agreement are personal to that party and may not be
assigned or transferred to any other person, firm, corporation, or other entity without the prior,
express, and written consent of the other party.
30. In this Agreement, any reference to a party includes that party's heirs, executors,
administrators, successors and assigns, singular includes plural and masculine includes
feminine.
WITNESS our signatures as of the day and date first above stated.
________________________ _________________________
(P rinted name) (P rinted name)
________________________ _________________________
(Signature of Seller) (Signature of Buyer)