If the materials sold hereunder are defective in material or workmanship and written notice thereof is given to Seller no later than six (6) months after shipment or 500 operational hours, whichever occurs first, Seller, reserving the right to either inspect such defective materials in the field or request their prepaid return, will at its option repair or replace such materials (or give proper credit therefore if repair or replacement is commercially impracticable) provided that the materials shall not have been altered or repaired by anyone except Seller’s authorized employees or subjected to misuse, neglect, or excessive wear, and further provided that Seller’s total liability shall not exceed the sales value of the defective materials. Friction materials, seals, and gaskets are exempted from any warranty given by Seller hereunder. The warranties given hereunder are extended solely to Seller’s direct buyers for resale or commercial users and are not assignable. Buyer will indemnify Seller against any claims by Buyer, its customers or other parties as to materials sold hereunder based on defects in designs or specifications furnished by Buyer. Seller warrants that the goods to be supplied hereunder will conform to the description on the face hereof; that it will convey good title thereto; that such goods will be delivered free from any lawful security interest or other lien or encumbrance unknown to Buyer. Seller shall not be liable for any special, incidental, or consequential damages. Seller’s liability and Buyer’s exclusive remedy are expressly limited, at Seller’s sole option, to (a) the repair of defective goods, (b) the replacement thereof with conforming goods at the FOB point shown on the face hereof, or (c) the repayment of the purchase price.
IT IS EXPRESSLY AGREED THAT SELLER MAKES NO WARRANTY OF MERCHANTABILITY, WARRANTY OF FITNESS FOR USE, NOR ANY OTHER WARRANTY, EXPRESS OR IMPLIED, HEREUNDER. THE FOREGOING STATES SELLER’S ENTIRE AND EXCLUSIVE LIABILITY AND BUYER’S EXCLUSIVE AND SOLE REMEDY FOR ANY CLAIM OR DAMAGES IN CONNECTION WITH THE SALE OF THE MATERIALS HEREUNDER. SELLER SHALL IN NO EVENT BE LIABLE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES WHATSOEVER.