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Warranty Statement

Standard Statement of Warranty & Limitation of Liability

Equipment manufactured by Kinetics Industries, Inc., is guaranteed for a period of one year from the date of shipment against defects in materials and/or workmanship and to operate in accordance with our proposals, specifications and name-plate data under conditions of proper installation, rated load, environment and usage. Any defects in materials and/or workmanship will be repaired or replaced at Kinetics’ option, F.O.B. Kinetics’ plant, or at Kinetics’ option, in the field under straight-time hours condition. Rate premiums for non-straight time hours, travel or service work (hours greater then 8 hours per day, Saturday, Sunday and holidays) will be at the expense of the party requesting the service. Kinetics shall in no event be responsible for special, indirect or consequential damages, nor for repairs or replacements made by others without the written authorization of Kinetics. Correction of defects by repairing or replacing shall constitute the fulfillment of Kinetics warranty. Kinetics’ liability on any claim of any kind, including negligence, for any loss or damage arising out of, connected with, or resulting from the sale of Kinetics’ equipment shall in no case exceed the total price paid for such equipment. Payment for products, services and/or parts must be "current" and within the procurement contractual terms of payment for the product to have an active warranty.

The foregoing warranty is in lieu of any other warranty or obligation expressed or implied, and no liability is assumed by Kinetics Industries, Inc. except as is expressly stated above.

It is expressly understood and agreed that Kinetics makes no warranty with respect to any equipment not manufactured by Kinetics or with respect to any components of Kinetics’ equipment manufactured by others. In all such cases, the Buyer shall rely solely on the warranty and/or independent testing agency certifications of the manufacturers of such equipment or component, if any.

May 4, 2005

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