NEW INDUSTRIAL EQUIPMENT LIMITED WARRANTY

Boretec Equipment INC (hereinafter “Boretec Equipment”) warrants each new Industrial Equipment of Boretec Equipment’s manufacture to be free from defects in material and workmanship, under normal use and service for one (1) full year after initial purchase/retail sale or 1000 operating hours, whichever occurs first. This Limited Warranty shall apply only to complete Boring Machines and Control Stations of Boretec Equipment’s manufacture, parts are covered by a separate Limited Warranty. EQUIPMENT AND ACCESSORIES NOT OF BORETEC EQUIPMENT INC’S MANUFACTURE ARE WARRANTED ONLY TO THE EXTENT OF THE ORIGINAL MANUFACTURER’S WARRANTY AND SUBJECT TO THEIR ALLOWANCE TO BORETEC EQUIPMENT INC ONLY IF FOUND DEFECTIVE BY SUCH MANUFACTURER.

WARRANTY TERMS During the Limited Warranty period specified above, any defect in material or workmanship in any warranted item of Boretec Equipment Industrial Equipment not excluded below shall be repaired or replaced at Boretec Equipment’s option without charge by any authorized independent Boretec dealer. The warranty repair or replacement must be made by a Boretec independent authorized dealer at the dealer’s location. Boretec Equipment will pay for replacement parts and such authorized dealer’s labor in accordance with Boretec Equipment’s labor reimbursement policy; however, Boretec Equipment will pay for replacement parts ONLY on PIERCING TOOLS. Boretec Equipment reserves the right to supply remanufactured replacement Boretec Equipment parts as it deems appropriate.

RETAIL PURCHASER RESPONSIBILITY:

This Limited Warranty requires proper maintenance and periodic inspections of the Industrial Equipment. The cost of routine or required maintenance and services is the responsibility of the retail purchaser. The retail purchaser is required to keep documented evidence that these services were performed.

This Boretec Equipment New Industrial Equipment Limited Warranty may be subject to cancellation if the above requirements are not performed.

Boretec Equipment Industrial Equipment with known failed or defective parts must be immediately removed from service.

EXCLUSIONS AND LIMITATIONS

The warranties contained herein shall NOT APPLY TO:

1. Any defect which was caused (in Boretec Equipment’s sole judgment) by other than normal use and service of the Industrial Equipment, or by any of the following; (i) accident (ii) misuse or negligence (iii) overloading (iv) lack of reasonable and proper maintenance (v) improper repair or installation (vi) unsuitable storage (vii) non-Boretec Equipment approved alteration or modification (viii) natural calamities (ix) vandalism (x) parts or accessories installed on Industrial Equipment which were not manufactured by Boretec Equipment or installed by Boretec authorized dealers (xi) the elements (xii) collision or other accident.

2. Any Industrial Equipment whose identification numbers or marks have been altered or removed or whose hour meter has been altered or tampered with.

3. Any Industrial Equipment which any of the required or recommended periodic inspection or services have been performed using parts not manufactured or supplied by Boretec Equipment or meeting Boretec Equipment specifications including, but without limitation, engine tune-up parts, engine oil filters, air filters, hydraulic oil filters, and fuel filters.

4. Any defect which was caused (in Boretec Equipment’s sole judgment) by operation of the Industrial Equipment not abiding by standard operating procedures outlined in the Operator’s Manual.

5. Engine, battery, and tire Limited Warranties and support, which are the responsibility of the respective product’s manufacturer.

6. Transportation costs, if any, of transporting to the Boretec dealer. Freight costs, if any, of transporting replacement parts to the Boretec dealer.

7. The travel time of the Boretec dealer’s service personnel to make a repair on the retail purchaser’s site or other location.

8. In no event shall Boretec Equipment’s liability exceed the purchase price of the Equipment.

9. Boretec Equipment shall not be liable to any person under any circumstances for any incidental or consequential damages (including but not limited to, loss of profits, out of service time) occurring for any reason at any time.

10. Diagnostic and overtime labor premiums are not covered under this Limited Warranty policy. Oils and fluids are not covered under this Limited Warranty.

11. Depreciation damage caused by normal wear, lack of reasonable and proper maintenance, failure to follow operating instructions, misuse, lack of proper protection during storage are not covered by this Limited Warranty.

12. Accessory systems and electronics not of Boretec Equipment’s manufacture are warranted only to the extent of such manufacturer’s respective Limited Warranty, if any.

13. Down hole toolage is not covered under this Limited Warranty.

14. Wear items which are listed by product group below are not covered by this Limited Warranty: Auger wear, cutting heads, cutting teeth, wing cutters

PARTS WARRANTY:

Parts replaced within the warranty period will receive the balance of the first year New Industrial Equipment Limited Warranty, during the first twelve (12) months or 1000 hours, whichever comes first. Replacement parts after the original machine warranty, are warranted to be free from defects of material for ninety (90) days or the part will be repaired or replaced, without labor coverage for removal and reinstallation.

EXCLUSIONS OF WARRANTIES:

EXCEPT FOR THE WARRANTIES EXPRESSLY AND SPECIFICALLY MADE HEREIN, BORETEC EQUIPMENT INC MAKES NO OTHER WARRANTIES, AND ANY POSSIBLE LIABILITY OF BORETEC EQUIPMENT INC HEREUNDER IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. BORETEC EQUIPMENT INC RESERVES THE RIGHT TO MODIFY, ALTER, AND IMPROVE ANY PRODUCT WITHOUT INCURRING ANY OBLIGATION TO REPLACE ANY PRODUCT PREVIOUSLY SOLD WITH SUCH MODIFICATION. NO PERSON IS AUTHORIZED TO GIVE ANY OTHER WARRANTY, OR TO ASSUME ANY ADDITIONAL OBLIGATION ON BORETEC EQUIPMENT INC’S BEHALF.

NO DEALER WARRANTY.

The selling dealer makes no warranty of its own and the dealer has no authority to make any representation or promise on behalf of Boretec Equipment or to modify the terms or limitations of this warranty in any way.

ELECTRONIC SIGNATURES.

Each of the parties hereto expressly agrees to conduct transactions by electronic means. Accordingly, the parties agree and intend that all electronic transmissions including, without limitation, electronic signatures, shall be considered equivalent to an original writing as provided under South Carolina law, as it may be amended from time to time.

TERMS AND CONDITIONS OF SALES

The articles and/or the performance of the services covered by this invoice ‘were produced in compliance with the Fair Labor Standards Act of 1938, as order as not subject to any Government contract provisions, including but not limited to Armed Services Procurement Regulations. if this is correct, please inform us in writing immediately.

ACCEPTANCE:

The formation of a contract for the sale of goods referenced in this document is expressly conditioned upon your assent to all terms and conditions contained or referred to herein, including those contained in any attachments hereto, to the exclusion of any terms or conditions contained in any other documents or communications. Your acceptance of delivery of all or any other part of the goods referenced hereunder shall constitute your acknowledgement that you received a copy of these terms and conditions prior to the purchase of your order and that you have accepted all terms and conditions contained herein. Any additional or different terms or conditions set forth in your purchase order or similar communications are objected to and will not be binding upon us unless specifically agreed to in writing by our authorized representative. Any act by us in providing goods or services to you, accepting payment from you, or otherwise performing against this document and/or any contract found to exist between you and us as a result thereof, in no way evidences our acceptance or agreement to any terms or conditions additional to or different from those set forth herein.

PRICES:

The prices quoted herein are subject to adjustment to reflect our prices in effect at the time of shipment including any increases in packing, storage, or shipping charges, or taxes. Cash discounts, if any, are currently allowed by us at date of shipment and apply only against our selling price F.O.B. shipping point, exclusive of all packing, storage, or shipping charges, or taxes. In the event that you do not pay your account balance when due, we shall be entitled to collect, in addition to the principal balance and accrued service charges, our expenses of collection, including but not limited to attorneys’ fees and court costs. A MONTHLY SERVICE CHARGE OF 1.5% PER MONTH WILL BE APPLIED ON ACCOUNT BALANCES 30 DAYS. PAST DUE PLUS ANY ACTUAL EXPENSES, INCLUDING ATTORNEYS’ FEES. WE INCUR WITH RESPECT TO THE COLLECTION OF SUCH OUTSTANDING BALANCE. Charges are made on small or broken lots when we feel special packaging protection is necessary to ensure safe delivery. All sales and shipments shall be F.O.B. our facility, and title to, and all risk of loss shall pass to you upon delivery of the goods to the carrier, which carrier shall be selected by us but shall act as your agent.

ORDERS:

The Company telephone desks are maintained and staffed for immediate service of your needs. Accordingly, if shipment is completed before written confirmation is received, such orders must be considered as accurate as recorded by our inside sales force. To avoid duplication of verbal orders, please respond in writing with a confirmation. Otherwise duplications will result and charges involved must be at customer's expense. As described above, we object to any terms or conditions additional to or different from those contained herein, and any shipment made, acceptance of payment or any other action taken by us shall not constitute our agreement to any of your terms.

DELIVERY:

We shall make every effort to keep our delivery commitment. However, in the event of circumstances beyond our control which delay production of delivery of materials or equipment, including but not limited to fire, strike, flood, accident, delay in transportation, inability to obtain material, war, acts of God, or other causes beyond our reasonable control, the delivery date provided in the contract shall be extended for such additional time as may be reasonably necessary under the circumstances.

INDEMNIFICATION:

IT IS UNDERSTOOD AND AGREED BY AND BETWEEN YOU AND US THAT IMPROPER OPERATION, USE OR MAINTENANCE OF THE MACHINERY OR EQUIPMENT SOLD HEREUNDER, OR FAILURE TO FOLLOW THE OPERATION AND OPERATING MANUAL, FAILURE TO HEED THE SAFETY AND WARNING STICKERS OR FAILURE TO INSURE BEFORE OR DURING OPERATION, THAT SUCH MACHINERY OR EQUIPMENT IS IN SAFE OPERATING CONDITION, MAY RESULT IN PERSONAL INJURY, DEATH OR PROPERTY DAMAGE. YOU HEREBY EXPRESSLY AGREE AND ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY TO INSPECT SUCH MACHINERY OR EQUIPMENT, BOTH AT THE TIME OF SALE AND DURING THE ENTIRE TIME THAT YOU OWN SUCH MACHINERY OR EQUIPMENT: (1) TO ENSURE THAT IT IS IN SAFE OPERATING CONDITION; (2) TO ENSURE THAT ALL SAFETY AND WARNING STICKERS ARE FIRMLY AND PERMANENTLY AFFIXED; (3) TO ENSURE THAT THE APPROPRIATE OPERATING MANUAL IS GIVEN TO THE PURCHASER OR USER; AND (4) TO ENSURE THAT THE PURCHASER OR USER IS AWARE OF THE IMPORTANCE OF, AND IS FAMILIAR WITH, THE PROPER OPERATION, MAINTENANCE AND USE OF THE EQUIPMENT OR MACHINERY. YOU FURTHER AGREE TO INDEMNIFY US, HOLD US HARMLESS, AND REIMBURSE US FOR DEFENSE COSTS, INCLUDING BUT NOT LIMITED TO ATTORNEY'S FEES, FROM AND AGAINST ALL CLAIMS, LOSS, LIABILITY, COST, OR DAMAGE (INCLUDING BUT NOT LIMITED TO PERSONAL INJURY TO YOU OR OTHERS), INCLUDING BUT NOT LIMITED TO ANY CLAIMS FOR NEGLIGENCE, STRICT LIABILITY OR BREACH OF WARRANTY ARISING OUT OF ANY FAILURE TO FOLLOW THE OPERATION AND SAFETY MANUAL, ANY FAILURE TO HEED THE SAFETY AND WARNING STICKERS, ANY FAILURE TO ENSURE BEFORE OPERATION THAT THE MACHINERY OR EQUIPMENT WAS IN SAFE OPERATING CONDITION, OR ANY IMPROPER OPERATION, MAINTENANCE, OR USE OF THE MACHINERY OR EQUIPMENT BY YOU OR OTHERS, EVEN IF SUCH CLAIM, LOSS, LIABILITY, COST OR DAMAGE ARISES FROM OUR OWN NEGLIGENCE, STRICT LIABILITY OR BREACH OF WARRANTY. THIS INDEMNIFICATION PROVISION IS NOT TO BE CONSTRUED AS CONFERRING ANY EXPRESS OR IMPLIED AUTHORITY ON YOU TO ACT AS OUR AGENT AND/OR EMPLOYEE.

CLAIMS & CREDITS:

We cannot be responsible for shortages or errors unless claims are made within five (6) days from your receipt of shipment. Claims against carriers must be noted immediately upon receipt of material. When, by your request, goods are forwarded via carriers whose charges do not cover insurance of the material, we will not insure the shipment unless specifically instructed to do so. Any such insurance we procure shall be at your expense.

SUSPENSION OF PERFORMANCE:

If in our judgment reasonable doubt exists as to your financial responsibility, or if you are past due in payment of any amount owing to us, we reserve the right, without liability and without prejudice to any other remedies, to suspend performance, decline to ship, or stop any material in transit, until we receive payment of all amounts, whether or not due, owing to us, or until we receive adequate assurance in our opinion of such payment.

CHANGES OR CANCELLATIONS:

Should you find it necessary to change specifications while work is in progress, we shall make every reasonable effort to accommodate you. It will be necessary for us to charge you for any services, labor or material discarded because of such changes. Should you for any reason desire to cancel an order, you agree to reimburse us for any cost and expenses which result as well as pay a 25% restocking fee.

ENTIRE AGREEMENT:

The terms set forth herein constitute the sole terms and conditions of the contract between you and us. No other terms, conditions, or understanding, whether oral or written, shall be binding upon us, unless hereafter made in writing and signed by our authorized representative.

PAYMENT TERMS:

Unless the customer has an active account with Boretec Equipment or is recognized as a reseller, the following payment terms apply:

This payment requirement ensures the timely processing and delivery of your order.