NEPSI

The Most Trusted Name in Power Factor Correction and Harmonic Filtering

WARRANTY STATEMENT



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Northeast Power Systems, Inc. (NEPSI) warrants that, under normal use and service, if properly stored, handled, installed, operated, electrically protected, and maintained, its power factor correction capacitors and harmonic filters (Product) shall, for the Warranty Period, be free of defects in materials and workmanship, under normal use and service. The warranty Period is (12) months: (1) beginning at bank start-up (if registration card is returned within ten (10) days after start-up and start-up occurs within twelve (12) months after shipment by NEPSI from the factory, or (2) if registration card is not returned , beginning thirty(30) days after shipment by NEPSI, from the factory. Should any such defect become apparent within the warranty period, and written notice of each and every such defect is promptly provided to NEPSI, and NEPSI reasonably determines that any such Product is defective in material or workmanship, NEPSI will, at its option, replace or repair such Product. This warranty does not apply to any Product damage by accident, misuse, negligence or significant electrical system changes. NEPSIs obligation with respect to such Product shall be limited to repair or replacement, F.O.B. NEPSIs place of business, without any expense to NEPSI, and except as expressly provided herein, NEPSI shall not in any event be liable for any other labor, transportation, installation, adjustment or other expenses which may arise in connection with such Product. Any misuse or abuse of the Product(s) voids this limited warranty.

The NEPSI warranty does not extend to Products not assembled by NEPSI. As to Products assembled by others, Purchaser shall be entitled to proceed only upon the terms of that particular manufacturer's warranty. The NEPSI warranty does not apply to defects in materials provided by Purchaser or design stipulated by Purchaser.

IN NO EVENT SHALL NEPSI BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES however arising whether in warranty, strict liability, tort, negligence or otherwise, including but not limited to loss of profits of revenue, loss of total or partial use of the Products, facilities or services, downtime costs, or claims of Purchaser for such or other damages whether on account of Products furnished hereunder or delays in delivery thereof, or services performed upon or with respect to such Products. NEPSIs liability on any claim whether in warranty, strict liability, tort, negligence or otherwise for any loss or damage arising out of , connected with , or resulting from this warranty or the performance or breach thereof, or from the design, manufacture, sale, delivery, resale, repair, replacement, installation, technical direction of installation, inspection, servicing, operation or use of any Product covered by or furnished under this warranty shall in no case exceed the purchase price allowable to the Product or part there of which give rise to the claim. Notice of claims against NEPSI hereunder for any reason, including breach of warranty, must be made to NEPSI in writing within forty-eight (48) hours of discovery to afford NEPSI an opportunity to make a prompt investigation of surrounding facts and mitigate any damage which might ensue, should it be determined to be NEPSI's responsibility. Failure to give such notice to NEPSI shall constitute a waiver by Purchaser of any right later to assert such a claim. Any cause of action against NEPSI arising out of or relating to the warranty or the performance hereof shall expire unless brought within one (1) year of the time of accrual thereof.

THE FOREGOING LIMITED WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. NORTHEAST POWER SYSTEMS, INC. Albany, New York

OPTIONAL: FIVE YEAR WARRANTY SYSTEM SECURITY BY NEPSI. Extension of standard warranty as noted above to five (5) years from date of startup, not to exceed 66 months from date of shipment. SYSTEM SECURITY also provides the following on-site services on an annual basis: review utility billing records for past twelve months, inspect Product supplied by NEPSI, spot check ambient harmonics at point of product installation, review changes to electrical system and electrical loads, discuss product compatibility to changes and planned changes to electrical system and electrical loads.

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