Términos y Condiciones de Fluidos Industriales Mexicanos S.A DE C.V

1.GENERAL. FLUIDOS INDUSTRIALES MEXICANOS S.A DE C.V ("Seller"), and the purchaser ("Buyer") of the materials, goods, and products fabricated by Seller to Buyer's specifications (collectively, the "Goods"), pursuant to a purchase order placed by Buyer with Seller (the "Order"), which Order may be placed by paper copy or electronic transmission, agree that the following general terms and conditions (the ''Terms") shall apply to such purchase of Goods. The Terms and the Order are referred to herein, collectively, as the “Agreement."

2. SOLE TERMS. The Agreement is expressly conditioned upon Buyer's acceptance of these Terms, and any Order accepted by Seller is accepted with the sole understanding that Buyer assents to these terms, regardless of the form of Buyer's Order. To the extent these terms accompany a bid or quotation or otherwise constitute an offer, Buyer's acceptance of such bid, quotation or offer is expressly limited to the terms set forth herein, and no others. No terms additional to, deviating from, or different from these Terms shall become part of the Agreement, unless such additional, deviating, or different terms are expressly accepted in a written agreement signed by an authorized agent of Seller. Buyer's acceptance of any Goods supplied by or on behalf of Seller shall, without limitation, constitute acceptance of these Terms. If Buyer should submit subsequent Orders for additional Goods, such additional Orders shall be subject to the terms and conditions contained herein. Any counter proposal (even if referred to as a Subcontract or Sub Subcontract) is expressly rejected by FIMEX and shall not be a part of this agreement which is between commercial parties. There is no incorporation by reference or implication of any other contract term or condition.

3. CONFLICTS. To the extent that any terms or conditions contained in the Order conflict with the express provisions of these Terms, the provisions contained in these Terms shall govern and control the Agreement.      

4. Fluidos Industriales Mexicanos Obligations. FIMEX in providing supplies is not acting as a general contractor, subcontractor or subcontractor and is not bound by any proposed subcontract, contract, master agreement, or terms and conditions of any public entity.  Per the Commercial Code, any terms of purchase have been modified by this contract. No quote or pricing shall remain open per the Commercial Code. The Quote and all pricing are limited in time and may not be modified by the Buyer.  For FIMEX to be bound to the Quote, the Buyer must have made in writing and communicated to FIMEX an unqualified acceptance of the Quote.  If the Quote is not unqualifiedly accepted, then the price is subject to change for any reason.  If any manufacturer determines the purchased materials cannot be provided because of a claimed but not proven commercial impracticability or force majeure then FIMEX without notice may cancel the order. FIMEX shall provide the materials as requested by the Buyer.  Buyer is responsible for verifying and confirming that the Quote for quantity and contract specification complies with the Buyer’s requirements. FIMEX is not responsible or liable for any equipment failure used in connection with any supplied materials.

5. FREIGHT; RISK OF LOSS. Unless otherwise stated in the Order, delivery of all Goods shall be F.O.B. Seller's facility in Monterrey, Mexico (INCOTERMS 2020) via carrier of Seller's choosing, with all freight charges to be paid by Buyer. For the avoidance of doubt, Buyer assumes all risk of loss to the Goods from the time they are delivered to a carrier, and any claims for losses or damage shall be made by Buyer directly to the carrier.

6. PRICE; PAYMENT.

a. Unless otherwise stated in the Order, all quoted prices are F.O.B. Seller's facility. The quoted prices are subject to increase, without notice, in an amount equal to any additional costs incurred by Seller as a result of (i) alterations in specifications, quantities, designs, or delivery schedules; (ii) Increases in the costs of fuel, power, materials, or labor; (iii) foreign or domestic legislation enacted by any level of government.

b. The quoted prices for the Goods do not include any sales, use, excise, or other tax, duty, or charge now or hereafter Imposed by any federal, state, local, or foreign governmental authority. Buyer hereby agrees to pay or to fully reimburse Seller for the full amount of any such taxes or other charges.

c. Seller shall promptly deliver invoices to Buyer. Unless otherwise stated In the Order, payment for the Goods shall be due and payable to Seller in Monterrey, Nuevo Leon. Office no more than fifteen (15) days following Buyer's receipt of a valid and correct Invoice or as agreed in the purchase order.  To the extent there is a dispute as to the accuracy of an invoice, Buyer must notify Seller within five (5) days of receipt of such invoice, and Buyer and Seller use good faith efforts to correct such invoice; provided, however, that failure by Buyer to so object will be deemed an acceptance of the invoice and prompt payment will be required in accordance herewith.

d. The terms payment are US Dollars and Mexican Pesos, In accordance with the conditions of sale established with the buyer from date of the invoice or delivery as per Quote.  FOB, Buyer’s carrier or as set forth in the FIMEX Quote.

e. No Set-off or Delay.  Payment obligations shall be the sole responsibility of Buyer. Payment is not subject to any set-off for any reason and cannot delayed or conditioned on payment due Buyer by any owner, developer, contractor, or public entity.

7. Interest / Fees. Unpaid invoices accrue interest at 5% per month based on this agreement between commercial merchants.  Unpaid equipment and materials shall be subject to FIMEX recovery of attorneys’ fees and court costs.

8. Scheduling.   Buyer must provide a detailed and definite time schedule.  FIMEX reserves the right to cancel the order and reject any scheduling changes if FIMEX in its opinion believes the scheduling will be affected by the possible unavailability of materials or a change in pricing. Buyer’s scheduling changes may affect pricing and Seller is not obligated to perform any changes.

9. DELIVERY.

a. Unless otherwise stated in the Order, Goods in stock will be shipped immediately, and Goods not in stock will be shipped as soon as reasonably possible.

Notwithstanding the foregoing, all shipping dates are approximate, and are based upon current availability of materials, present production schedules, and prompt receipt of all necessary information from Buyer.

b. Seller reserves the right to make partial shipments when necessary; payment shall be due for quantities shipped.

c. Seller is not liable for any delay in delivering Goods.

10. INSPECTION; ACCEPTANCE OF GOODS.

a) Upon receipt of the Goods, Buyer or Buyer's agent shalt immediately inspect the Goods. Unless Buyer provides Seller with written notice of any shortages, non-conformities or defects with the Goods within forty-eight (48) hours of delivery, the Goods shall be deemed to be fully accepted by Buyer. Goods that are not accepted may be returned to Seller at Buyer's expense and Seller, at its option, shall refund any payments received from Buyer related to such Goods or shall replace the Goods with confirming goods.

b. If any of the products provided to the buyer does not comply with the warranty, as long as the buyer has presented his document of non-conformity derived from the delivery of the product, at the order of this situation by the seller, it will be repaired, replaced by so that on good conditions the product to the buyer, and this will run by the seller to not affect the rights or resources available from the buyer

11. No Acceptance of Delay or Other Payment based on any Supply or Subcontract Agreement.  Buyer is obligated to make timely payments to FIMEX even if the private or public project requires Buyer to wait for payment from the general or prime contractor or first requires Buyer to submit to mediation, reference and/or or arbitration.  FIMEX is not bound to any such provision and is not a party to any such contract term or obligation.

12. Effect of Non-Payment.  If Buyer fails to timely pay any invoice or a statement of account then in addition to any remedy at law or in equity FIMEX may cease performing any obligation and may remove equipment from any site.  FIMEX may pursue a mechanic lien and/or stop notice claims.

13. BUYER'S CREDIT. All shipments shall always be subject to the approval of Seller's credit department. Seller reserves the right to decline to make shipment, to require payment in advance, or to require cash on delivery whenever, in Seller's sole reasonable discretion, there is doubt as to Buyer's financial responsibility, and Seller shall not, in such event, be liable for breach or nonperformance of this Agreement in whole or in part.

14. SECURITY INTEREST. To secure prompt payment of the purchase price for the Goods, Buyer on this term’s grants Seller a purchase money security Interest in the Goods and all proceeds thereof (the "Collateral"). If Buyer breaches the terms and conditions of the Agreement, Seller shall have all the rights and remedies of a secured creditor under the Uniform Commercial Code ("UCC"). Buyer agrees to execute and deliver to Seller, at Seller's request, UCC financing statements, continuation statements, and any and all other documents that Seller may reasonably request and shall take such other actions as may be required to assist Seller in perfecting, recording, and protecting Seller's security interest in the Collateral.

15. CANCELLATION.

a. Orders cannot be terminated, cancelled, or modified after acceptance of Buyer's Order by Seller, except with Seller's prior written consent.

b. Seller may cancel Buyer's Order, In whole or in part, If: (i) Buyer breaches any terms or conditions of this Agreement; (ii) any material representation made by Buyer to Seller proves to be false or misleading; (iii) Buyer is Insolvent; (iv) a case naming Buyer as "debtor" is commenced under any chapter of the United States Bankruptcy Code; (v) Buyer makes an assignment for the benefit of its creditors; (vi) a receiver or trustee is appointed for Buyer's property; or (vii) a formal or informal proceeding for dissolution, liquidation, or winding up of the affairs of Buyer is commenced. To the extent that cancels Buyer's Order for any of the foregoing reasons, Seller shall have the right, In addition to any other rights of Seller, to refuse to deliver any Goods and to receive reimbursement from Buyer for Seller's expenses incurred prior to the date of cancellation in connection with the cancelled Order.

c. The order that were cancelled with the authorization from the seller those will have a penalty towards to the buyer for the following concepts: 1) Cost of materials used in the operation 2) Compensation by the buyer against any all losses incurred for the seller, the buyer have to make the payment, before the seller delivery the corresponding invoice.

d.  All orders must be manufactured and ordered from the manufacturer. Once there is an acceptance of the Quote, price, items, quantity cannot be changed and cannot be cancelled by the Buyer.  If the materials are in FIMEX’s inventory when the quote is accepted and later canceled then The buyer will due 15% cancellation fee on the entire amount of Quote.  There may be a 20% restocking fee as determined by FIMEX.

16. FORCE MAJEURE.

a. "Force Majeure" means unavoidable conditions beyond the control of Seller and/or Buyer, including, but not limited to strikes, fires, storms, disasters, riots, terrorist acts or threats, war, acts of God, shortages of labor, fuel, power, materials (resins), supplies, transportation, or manufacturing facilities, governmental actions, subcontractor or supplier delay, including, but not limited to, failure by subcontractor or supplier to make timely delivery, or (vi) any other cause or condition beyond Seller's reasonable control.

b. Should Force Majeure prevent the total or partial performance required under the Agreement, the party claiming Force Majeure shall promptly notify the other party in writing. Such notice shalt be given not more than seven (7) days after a condition occurs giving rise to the Force Majeure claim. In the event a condition of Force Majeure is declared and substantiated, the parties shall consult with each other to extend the delivery date of the Goods.

c. If the delay and/or non-performance of the obligations exceeds sixty (60) days due to Force Majeure, Buyer shall be entitled to terminate any affected Orders under this Agreement by so notifying Seller in writing. In such case, Seller shall promptly refund to Buyer all sums advanced to Seller by Buyer, if any.

17. LIMITED WARRANTY.:

a. Seller warrants to Buyer that the Goods (i) will be fabricated to Buyer's design and specification as provided for in the Order, unless otherwise noted, (ii) will conform to customary industry tolerances, and (iii) will be free from defects in material and workmanship at the time of shipment and for a period of one (1) year from the date such Goods are completed. THE FOREGOING WARANTY IS EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXCLUDED. NOTWITHSTANDING THE FOREGOING, GOODS THAT ARE SOLD BY SELLER BUT WHICH ARE NOT MANUFACTURED BY SELLER ARE NOT WARRANTED BY SELLER, AND THE FOREGOING WARRANTY DOES NOT APPLY TO ANY GOODS WHICH HAVE BEEN PROPERLY FABRICATED BY SELLER BUT IMPROPERLY DESIGNED BY BUYER OR HAVE BEEN SUBJECTED TO MISUSE, MISHANDLING, MISAPPLICATION, USE OUTSIDE OF ITS INTENDED PURPOSE, NEGLECT, ACCIDENT, IMPROPER INSTALLATION, MODIFICATION, OR NORMAL WEAR AND TEAR. THIS LIMITED WARRANTY IS EFFECTIVE ONLY FOR THE BENEFIT OF THE ORIGINAL BUYER.

b.         In the event of a breach of any of the warranties set forth in Section 17(a) above, Seller will, at Seller's option, either (i) repair or replace the Goods at Seller's expense, or (ii) refund the purchase price or provide Buyer a reasonable allowance thereof.

c. Any warranty claim with respect to the Goods shall be deemed waived by Buyer unless such claim is submitted In writing to Seller no later than the earlier of (I) thirty (30) days following the date Buyer delivery, any claimed breach of the foregoing warranty, or (ii) except with respect to the warranty set forth in Section 17(a)(iii) above, ninety (90) days following the date of delivery. Any cause of action for breach of this Section 17 shall be brought within one (1) year from the earlier of the date such breach was discovered or should have been discovered.

d. Buyer's remedies hereunder shall constitute Buyer's exclusive remedies for Seller's breach of any warranty with respect to the Goods.

e. Any supplied product or equipment warranty is void if any claim is based in any way by the action, inaction, conduct, failure of or attributable to the Buyer, any owner, contractor, subcontractor, installer, architect, engineer, designer, and other any third party, or for any error, mistake, negligence in any design, plans, specifications, later changes or modifications in any specifications for any unexpected onsite conditions or the failure of any component part. 

18. LIMITATION OF LIABILITY, SELLER'S LIABILITY FOR ANY CLAIMS, DAMAGES, LOSSES, OR LIABILITY ARISING OUT OF OR RELATING TO ITS PERFORMANCE OF AN ORDER MADE HEREUNDER SHALL NOT EXCEED THE PURCHASE PRICE OF THE GOODS SOLD PURSUANT TO SUCH ORDER AT THE PLACE OF DELIVERY AGREED UPON REQUESTOR AT THE OPTION OF THE SELLER, SELLER MAY REPLACE THE GOODS WITH CONFIRMING GOODS IN NO EVENT SHALL SELLER BE LIABLE TO BUYER OR BUYER'S AFFILIATES, EMPLOYEES, REPRESENTATIVES, CUSTOMERS, OR AGENTS FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, ANY LOST PROFITS, LOSS OF REPUTATION, OR LABOR COSTS, RESULTING FROM THE USE OR INABILITY TO USE THE GOODS, FROM THE GOODS' INCORPORATION INTO OR BECOMING A COMPONENT OF ANOTHER PRODUCT, FROM ANY BREACH OF THIS AGREEMENT, FOR DEMURRAGES OR FROM ANY OTHER CAUSE WHATSOEVER, WHETHER BASED IN WARRANTY (EXPRESS OR IMPLIED), CONTRACT, TORT (INCLUDING STRICT LIABILITY, OR ANY OTHER THEORY OF LIABILITY REGARDLESS OF ANY ADVICE OR REPRESENTATION THAT MAY HAVE BEEN RENDERED BY SELLER REGARDING THE GOODS.

19. No Liability; No Indemnity.  FIMEX is only providing materials and/or equipment. It shall not be liable, and not subject to any claim of indemnity, for the installation of any materials, the materials use or connection to other components, for defects, errors, mistakes, fault, negligence, breach of contract or failures of any design, the selection of materials, any equipment failure, or the acts or any engineer, architect, contractor or owner.  FIMEX shall not be responsible for any and is not responsible for any damages including alleged delay damages, or failure to perform due to any equipment failure, lack of available technicians, material failure, site conditions, unforeseen circumstances, or to causes beyond its reasonable control, including but not limited to acts of God, war, riot, embargoes, acts of civil or military authorities, fire, floods, accidents, strikes, failure to obtain export licenses, shortages or unavailability of transportation, facilities, fuel, energy, labor or materials, or computer failure or other delay, or any claim of delay as made by any manufacturer including unavailability of raw materials or a claimed force majeure.

20. NO WAIVER. The failure of Seller to enforce any provisions of this Agreement shall in no way be construed as a waiver of such provisions, nor in any way affect the right of Seller thereafter to enforce any such provisions. No waiver by Seller of any default of Buyer under this Agreement shall constitute a waiver of any subsequent default, whether or not the subsequent default is of a similar or different nature.

21. CONFIDENTIALITY. Except as expressly stated otherwise In this Section 21, all drawings, technical data, design information, specifications, and other information granted by Seller ("Seller's information") to Buyer in connection with an Order shall be used solely for the purpose of entering Into this Agreement, and for no other use. Buyer agrees not to copy and not to disclose any of Seller's information to any third party without the express prior written consent of Seller, and to deliver all documents containing any of Seller's information (including all copies thereof) to Seller upon completion of this Agreement, or whenever Seller requests Buyer to do so (whichever occurs first). The obligations of this paragraph shall survive any termination or expiration of this Agreement. The obligations of confidentiality and restrictions on use contained in this Section 21, shall not apply to such information as Buyer can demonstrate (a) had been published or otherwise was available to the general public without any obligation of confidentiality through no breach of Buyer's obligations hereunder; or (b) was already in the lawful possession of Buyer without any restriction on use or disclosure.

22. No Agreement to Arbitrate.  FIMEX is not obligated to, and shall not be a party to any claim, contract, or demand to mediate or arbitrate any dispute even if joined with other parties who have agreed to arbitrate. No lien claims or stop notice claim shall be delayed by any mediation or arbitration proceedings.

23. GOVERNING LAW; DISPUTE RESOLUTION. This Agreement and any disputes arising hereunder shall be governed by and construed in accordance with the laws of the Nuevo Leon, Monterrey. Mexico. without regard to Its conflicts of laws principles. The parties expressly waive all rights under the United Nations Convention on Contracts for the international Sale of Goods. All disputes arising out of or in connection with the Agreement shall be settled under the Rules of Arbitration of the International Chamber of Commerce ("ICC") by one or more arbitrators appointed in accordance with said Rules. The arbitrator shall either be: (i) mutually agreed by the parties within fifteen (15) days from receipt of written notice from the party requesting arbitration; or (ii) failing such agreement, selected under the expedited rules of the ICC. The parties shall divide equally the cost of the arbitrator and the hearing equally, and each party shall be responsible for its own expenses and those of its counsel and representatives. Evidence concerning the financial position or organizational make-up of the parties, any offer made in settlement or the details of any negotiation of the dispute prior to arbitration, and the cost to the parties of their representatives and counsel shall not be permissible. Discovery shall be permitted, and the scope of any required discovery shall not be more restrictive than provided for In the Federal Rules of Civil Procedure. The determination of the arbitrator shall be rendered within thirty (30) days after the arbitration.

24. ENTIRE AGREEMENT. Except as otherwise set forth herein, this Agreement is the final written expression of all of the terms of the agreement between Buyer and Seller with respect to the sale of the Goods.

25. ASSIGNMENT. Buyer may not assign or transfer this Agreement or any portion thereof to any third party, by operation of law or otherwise, without the prior written consent of Seller.