TREK EQUIPMENT CORPORATION

Terms & Conditions for Sale Agreements

These terms and conditions are applicable to sale of used item transactions only.  Acceptance of delivery of the equipment by customer constitutes an agreement by customer to be bound by these terms and conditions.

No provisions of any purchase orders submitted by the customer and no waiver, alteration, or modification of any of the provisions below shall be effective or binding upon Trek unless in writing and signed by an officer of Trek equipment.

Pre-owned Equipment Sales:

Trek Equipment has a wide variety of high-quality test and measurement available at discount prices. All pre-owned equipment is tested and includes all manuals and standard accessories. Trek Equipment provides a one-year warranty on parts and labor unless otherwise noted.

A.       SALES TERMS AND CONDITIONS:  If (a) Customer has purchase option hereunder and is not in default under this Agreement or (b) Trek otherwise agrees to sell the Equipment to Customer, Customer shall be entitled to purchase the Equipment pursuant to the applicable terms and conditions listed.  Title to the Equipment will not transfer unless all past due rental balances are paid in full.

1.        PURCHASE PRICE:  Customer shall pay to Trek the purchase price for each item of Equipment (plus any taxes imposed hereon).  Customer authorizes Trek to insert on the sell quote the applicable information pertaining to this transaction.  Customer hereby grants Trek a security interest in the Equipment as a security for its obligations hereunder.

2.        SHIPPING AND HANDLING:  All Equipment is provided FOB Trek Equipment.  Shipment will be made as specified by Customer and at the Customer’s expense.  Equipment may not be shipped via mail.  Unless Customer notifies Trek to the contrary within 72 hours after receipt of this document, it shall be conclusively presumed that the Equipment was delivered to Customer and is in good operating condition.

3.        TAXES:  Customer shall pay all taxes and other governmental charges assessed in connection with the rental, use, or possession of the Equipment including, without limitation, any and all sales and/or use taxes and personal property taxes (other than taxes on Trek’s net income).

4.        WARRANTY, TREK LIABILITY:  Trek hereby warrants to Customer only that each item of Equipment, when shipped, will be in good operating condition.  Customer’s damages for any breach by Trek of such warranty with respect to an item of Equipment shall be limited to the direct damages caused by a defective operation condition which could not have reasonably have been discovered by Customer after the delivery to it of such item, but in no event shall exceed the total rental fees paid by Customer for item.  The foregoing warranty is the exclusive warranty and is in lieu of any oral representation an all other warranties and damages whether expressed, implied, or statutory.  Customer acknowledges that Trek is neither the manufacturer of the property nor the agent of the manufacturer.  Trek has not made nor does make warranties of any kind, expressed or implied, including without limitation any warranty of merchantability or fitness for a particular purpose.  Trek makes no warranty that the property will not infringe any patent or property right of any third party.

5.        SALES WARRANTY:  Trek fully warrants (excluding CRTs and TWTs) all parts and labor for the term of the warranty indicated.  This warranty is for equipment failure only and does not include service.

6.        INDEMNIFICATION OF TREK:  Customer shall indemnify, hold harmless, and defend Trek from any and all claims, actions, and damages, including attorney’s fees arising out of the Equipment and its use, rental, possession, operation condition, purchase, and return, including without limitation any such claims arising out of the theory of strict liability in tort.  Customer obligations hereunder shall survive termination of this agreement.

7.        DELINQUENT PAYMENTS/DEFAULT:  Customer shall pay to Trek a late charge on any payment from the due date thereof until the date paid at the Lesser of 1 ½% per month (equal to 18% per annum) or the maximum rate permitted by law.  Upon any default or broach by Customer, Trek shall have the right to terminate this Agreement, take immediate possession of the Equipment, and recover from Customer any action to enforce Trek’s right hereunder, all amounts due together with Trek’s costs and reasonable attorney’s fees.

8.        MISCELLANEOUS:  All rates and prices shall be subject to change by Trek at any time without notice.  The invalidity of any of the within terms and conditions shall not affect the validity of any other terms and conditions.  Customer shall furnish such financial and business information about Customer and shall execute such financing statements and other documents as Trek may, from time to time, request.  The rights of Trek and the Customer shall hereunder be governed by the rules of the State of California.  The above terms and conditions are the only terms and conditions upon which Trek is willing to rent the Equipment.  Any different or additional terms in any order or other response by Customer shall be deemed objected to by Trek without further need of notice of objection and shall be of no effect or in any way binding upon Trek.  No waiver of any breach or default by Customer shall waive any other breach or default.

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