Schlage A Series, Price Book

TERMS & CONDITIONS

•

Complete Locks

Price Book 70A

Effective July 28, 2008

Terms-2

INGERSOLL-RAND COMPANY, SECURITY TECHNOLOGIES SECTOR,

GENERAL TERMS AND CONDITIONS OF SALE AND SERVICE
1.  GENERAL. (a) This Agreement contains the terms and conditions by which
Company will quote and sell its Products and Services to Customer.  (b) The terms “pur-
chase order” or “order” for the purposes of this Agreement include the term “request for
quotation,” as appropriate.  (c) This Agreement supersedes all pre-printed and boiler-
plate terms and conditions set forth in any purchase order issued by Customer.  (d) No
reference herein to Customer’s purchase order will in any way incorporate different or
additional terms and conditions which are hereby objected to. (e) ANY ACCEPTANCE
BY COMPANY OF CUSTOMER’S PURCHASE ORDER IS EXPRESSLY
CONDITIONED ON THE CUSTOMER’S ASSENT TO AND ACCEPTANCE OF
THE TERMS AND CONDITIONS CONTAINED IN THIS AGREEMENT. (f) In the
event of a conflict between this Agreement and a purchase order issued by Customer, the
terms of this Agreement will prevail.  In the event of a conflict between this Agreement
and any specific Product or Service terms and conditions, the specific Product or Service
terms and conditions will prevail.
2.  SCOPE OF PRODUCTS AND SERVICES AND  ORDERS.
(a) Scope of Products and Services. The scope of the Products and Services (includ-
ing, but not limited to location) are (i) attached to this Agreement, (ii) separately 
furnished by Company to Customer, or (iii) subject to Section 1 herein, contained in an
order submitted by Customer.Non-standard finishes and special items may be available.
Contact Company for such availability. All Products that come in “kits” cannot be sold
as individual pieces. See the specific product terms and conditions for exceptions. (b)

Orders. All orders submitted by Customer must be in written form acceptable to
Company. A minimum net Product or Service order value, excluding freight charges,
may be required for each order. Such minimum net Product or Service order value will
be (i) attached to this Agreement; (ii) separately identified in the specific Product Price
Book; or (iii) separately furnished by Company to Customer. In the event the order
value does not meet any required minimum net Product or Service value, Company will,
at its sole discretion, either (i) increase the quantity of items in the order to meet the
minimum net Product or Service value provided herein; (ii) apply a minimum order
charge; or (iii) reject the order. (c) Receipt of an Order. Company will acknowledge
receipt of each order issued in accordance with this Agreement and will notify Customer
whether such order has been accepted or rejected, in whole or in part, by Company. If
Company fails to acknowledge receipt of an order, within a reasonable time period, such
failure to acknowledge receipt will be deemed a rejection of the entire order. (d)

Changes to Orders. Any changes to orders must be acknowledged by Company in
writing. Company reserves the right to deny any changes to orders, which have been
previously acknowledged by Company. The time period for making any changes to
orders for Products will be (i) attached to this Agreement; (ii) separately identified in the
specific Product Price Book; or (iii) separately furnished by Company to Customer. All
changes to orders are subject to a change order charge of 25% of the net Product or
Service value or $25.00, whichever is greater, plus the cost of fabrication or raw material
that will need to be purchased for the change order. Unless otherwise specified by
Company in writing, any changes to orders acknowledged by Company that affect the
delivery date will be deemed a new order and will require acknowledgement by
Company as provided in this Section 2. (e) Cancellation of Orders. All cancelled
orders are subject to Company’s written acknowledgement to be valid. The time period
for order cancellations will be (i) attached to this Agreement; (ii) separately identified in
the specific Product Price Book; or (iii) separately furnished by Company to Customer.
All cancelled orders acknowledged by Company are subject to a cancellation charge of
25% of the net Product or Service value or $25.00, whichever is greater, plus the cost of
any fabrication or raw materials that have purchased for the order.
3. PRICES AND PAYMENT. (a) Prices. The prices specified by Company are subject
to change, without notice, to Company’s prices in effect at the time of each shipment of
Products or performance of Services. Additional charges may be applied for product
modification or engineering services. Oral prices specified by Company are null and
void. (b) Invoices. Company will submit invoices to Customer stating amounts due. (c)

Payment Terms. Payment terms are 2% cash discount 20 days, net 35 days from date
of invoice. Payment will be made in United States dollars. (d) Credit Terms. All orders
are subject to Company’s credit limit and terms of credit required by Company or con-
tained in Company’s credit application, which is subject to change by Company at any
time either before or after delivery of any part of the order. Company reserves the right
to request payment in advance of shipment or any order or to request adequate assur-
ances for Customer’s payment of an order and may withhold or stop shipment, without
any liability to Company, until Customer submits payment or assurance of payment, as
required by Company. (e) Default. If Customer is in default in payment or otherwise
with respect to any order for Products or Services or any other contract with Company,
Company shall have the right, in addition to all other legal remedies and without preju-
dice to any of its right hereunder, to defer further shipments until such default is correct-
ed and to declare all outstanding bills of Customer to be immediately due and payable.
(f) Taxes. Any taxes, charges, or duties imposed by any governmental authority on the
sale of Products or Services will be paid by Customer, in addition to the selling price
specified by Company. (g) Late Payment Charge. A late payment charge of 1.5% per
month equivalent to 18% per annum will be charged on past due balances owed
Company. Provided however, that in the event that applicable governmental law sets a
maximum rate for late payment fees which is less than 18% per annum, then the late
payment charge assessed will be set at the maximum rate permitted by law.
4. INSPECTION, DELIVERY, SHIPPING, FREIGHT CHARGES, CLAIMS,

AND PACKING. (a) Inspection. Inspection of Products and Services will be done by
Customer immediately after receipt of Products or completion of Services. Inspection of
Products or Services by Customer at Company's facility is not permitted. (b) Delivery.
Product delivery schedules are based upon current production capacities, material or 

component availability, and inventory, and may be changed by Company as conditions
require. Service delivery schedules are based upon prompt receipt of, and prompt access
to, Customer’s equipment and all information necessary to complete the Services.  In no
event will Product or Service delivery dates be construed as falling within the meaning
of “time is of the essence.” Partial delivery shall be accepted by Customer and paid for
at the price and on the terms stated herein. Any partial delivery of Products or Services,
shall constitute a separate sale and payment shall be separately made when due. If any
part of the Products or Services are not delivered by Company in accordance with
Customer’s order, this Agreement shall not be affected thereby.

(c) Shipping. Unless otherwise specified by Company, (i) where the Customer is locat-
ed in the United States, all Products will be sold “Uniform Commercial Code, F.O.B.
Origin, Company's factory”; and (ii) where the Customer is located outside of the
United States, all Products will be sold “Incoterms 2000, Ex-works, Company's factory.”
In either instance, title and risk of loss will pass to Customer upon delivery to the carrier
at Company's factory. Provided however, a security interest will remain in the Products,
regardless of mode of attachment to realty or other property, until full payment has been
made therefore, and Customer agrees, upon request, to do all things and acts necessary
to protect Company’s interest by adequately insuring the Products against loss from
damage from any cause and to have Company named as an additional insured. Copies
of all Certificates of Insurance will be provided to Company upon request. Customer
will also assist Company in providing all necessary documents or signatures required to
file any documents to perfect Company’s interest in such Products. (d) Freight

Charges. All freight charges will be (i) attached to this Agreement; (ii) 
separately identified in the specific Product Price Book; or (iii) separately furnished 
by Company to Customer. (e) Claims. All claims for loss or damage to Products while
in the care, custody, and/or control of a carrier will be the responsibility of Customer,
who will submit any claims.. (f) Packing. Company will pack, mark, and ship the
Products according to its standard procedures for shipment, unless the parties agree, in
writing, that Company will comply with any special instructions provided by Customer.
Compliance with special instructions may result in an increased price.
5. CLAIMS. (a) All claims must be submitted in writing to Company as follows: (i) All
claims for prices must be submitted within thirty (30) days from the date of invoice. (ii)
All claims for Product quantity or incorrect orders must be submitted within ten (10)
days from the date of delivery. (iii) All claims for damage to Products (while in the care,
custody, and control of Company) must be submitted within thirty (30) days from the
date of invoice.
6. PRODUCT CHANGES. Company reserves the right to change without notice the
design of, or the process of manufacturing, the Products covered by this Agreement;
provided that the foregoing will not be construed as relieving Company from its 
obligation to deliver Products which conform to the specifications which Company 
may have furnished to Customer.
7. PRODUCT RETURNS. Products may not be returned unless Customer receives
written authorization from Company. If returns are authorized by Company, a return
merchandise authorization (“RMA”) number must be provided by Company. Products
identified under such RMA must be returned to Company within 90 days of issuance of
the RMA. Such RMA number and any accompanying RMA documents, the original
invoice number, and a written explanation for the return must be included with the
returned Products in order for Company to inspect and approve a credit for the return.
Such credit will only be issued if, after Company’s receipt and inspection of Products,
Company approves the return. Only those Products which have been in Customer’s
inventory no more than 180 days from the date of shipment by Company and which are
current, standard, non-obsolete, non-specially manufactured, unused, in their original
condition as at the time of sale by Company to Customer, and are in their original 
packaging may be considered by Company for return. In the event Company approves 
a return, a credit will be made to Customer’s account less freight, and a handling and
reprocessing charge of 35% of the net material value on the original invoice. Products
requiring reconditioning to return the Products to a saleable condition may be credited to
Customer’s account less freight and a handling and reprocessing charge of 50% of the
net material value and less 2% for the cash discount allowance on the original invoice. 
8. TECHNICAL INFORMATION AND ADVICE. (a) All designs, data, and 
specifications provided by Company are proprietary and will not be disclosed or reused
by Customer without the prior written consent of Company. (b) Company assumes no
obligation or liability for any advice given by Company, the results obtained, or 
damages incurred, and all such advice is given and accepted at Customer’s risk.
9. LIMITED WARRANTY.
(a) Company's Standard Limited Warranty(ies) relating to Products or Services are
applicable to this Agreement. The limited warranty(ies) are (i) attached to this
Agreement; (ii) separately identified in the specific Product Price Book; or (iii) 
separately furnished by Company to Customer. 

(b)(i) In the event that certain Product warranties are not attached to this Agreement or
separately furnished, Company warrants only to Customer that Products will be free
from defects in material and workmanship for a period of 12 months from the date of
shipment of the Products. Company’s sole obligation under this warranty is limited to
repairing or replacing, at its option, the defective Products. (ii) The provisions of this
limited Product warranty do not apply to Products: (A) used for the purposes for which
they are not designed or intended; (B) which have been repaired or altered without
Company's prior written consent; (C) which have been subjected to misuse, abuse,
negligence, or accident; (D) which have been improperly stored, installed, maintained,
or operated; (E) which have been used in violation of written instructions provided by
Company to Customer; (F) which have subjected to improper temperature, humidity, or
other environmental conditions; (G) which have been affected by normal wear and tear;
or (H) which, based on Company's examination, do not disclose to Company's 
satisfaction nonconformance to the warranty.