Terms of Service

Introduction

The words "we", "us", "our", "ours", "Kimlin" and "Kimlin Energy" refer to Kimlin Propane Co. Inc., a corporation with its principal place of business at 14 Steves Ln, Gardiner, NY 12525. The words "you", "your", "yours", "his/her", and "Customer" refer to any person or entity who (a) requests delivery of propane or equipment from Kimlin, (b) permits propane or equipment to be delivered by Kimlin, or (c) permits propane or equipment obtained from Kimlin to be retained on premises which the person or entity owns, rents, or has a right to use (the "Property").

Kimlin Energy will provide a tank subscription service agreement (the "Service Agreement"), which contains the description of the Customer's request for services from Kimlin Energy. The Customer should review the terms of this Agreement and the Service Agreement carefully and notify Kimlin Energy Customer Service immediately at (845) 255-7324 if any information is incorrect.

Article I is applicable to propane purchases. Article II is applicable to rental of equipment. Article III describes the Customer's payment obligations. Article IV applies to equipment purchase, service, and repair. Article V is applicable to all types of transactions between you and Kimlin Energy.

Article I: Terms Applicable to Propane Purchases

1. Delivery of Propane

The Service Agreement indicates whether the Customer has chosen Will Call or Kimlin Energy's scheduled quarterly delivery. Additional delivery charges shall be payable when the Customer requests delivery outside their scheduled date or on an emergency basis. The Customer authorizes Kimlin Energy to make delivery regardless of whether the Customer is present. If the Customer runs out of propane for any reason, Kimlin Energy will not be responsible for any consequential damages, including frozen pipes or damage to buildings, poultry, or livestock.

a. Will Call

If the Customer has chosen Will Call, Kimlin Energy will not deliver propane until the Customer calls and requests delivery, not less than five (5) business days prior to the anticipated delivery date. Kimlin Energy recommends calling when the tank reaches 30% capacity.

b. Automatic Delivery

If the Customer has chosen automatic delivery, Kimlin Energy will deliver propane according to its delivery schedule without advance notice. Kimlin Energy will use reasonable commercial efforts to keep the Customer's supply adequate but makes no representation that it will inspect propane stock on a specific schedule. The Customer must inspect propane levels regularly, especially during periods of unusually high usage.

c. Bulk Service

If the Customer leases the tank from Kimlin Energy, the Customer agrees to purchase a volume of propane at least equal to two times the water capacity of the tank during each 12-month period following the first delivery (the "Minimum Volume Requirement"), unless otherwise agreed in the Service Agreement.

2. Customer-Owned Tanks

If the Customer owns the tank, Kimlin Energy reserves the right (but has no obligation) to inspect the external system for delivery of propane. The Customer is responsible for any loss or damage caused by a defective system and must maintain and pay all expenses for maintaining the system.

3. Purchase Price

Kimlin Energy offers a daily price based on the specific Customer's requirements. Prices may vary due to propane commodity prices, transportation costs, geographic location, volume usage, tank ownership, and delivery plan. The Customer agrees to pay the current daily price unless the Service Agreement details a price plan. Kimlin has the right to change its price at any time upon thirty (30) days prior notice.

4. Customer's Responsibility for Equipment

The Customer is solely responsible for the inspection and maintenance of all piping, equipment, and/or appliances. It is the Customer's duty to inform Kimlin Energy about any repair, removal, installation, adjustment, modification, maintenance, and/or service of any part of the system and/or related appliances.

5. Safety Responsibilities

The Customer must read all safety warnings and operating instructions provided by Kimlin Energy. The Customer agrees to follow all instructions in the Safety Plan and must make all employees, tenants, or other persons residing or working at the premises aware of the Safety Plan. THE CUSTOMER AGREES THAT IN THE EVENT THE CUSTOMER OR ANY EMPLOYEE, TENANT, OR OTHER RESIDENT DOES NOT FOLLOW THE SAFETY PLAN, KIMLIN ENERGY WILL NOT BE RESPONSIBLE FOR ANY DAMAGES THAT MAY RESULT, INCLUDING BUT NOT LIMITED TO PERSONAL INJURY, DEATH, OR PROPERTY DAMAGE.

Article II: Terms Applicable to Equipment Rental

6. Equipment Rental

Rented Equipment includes all tanks, cylinders, and related equipment and appurtenances. Kimlin Energy will deliver and install the Rented Equipment. The Customer agrees to rent the Rented Equipment for the term specified in the Service Agreement. Rental payments will not be credited, refunded, or prorated if service terminates before the Lease Term expires. The rented equipment belongs to Kimlin Energy even though it may be on or attached to the Customer's property.

7. Limitations on Use

The Customer will not permit any propane or other product to be delivered into the Rented Equipment by anyone other than Kimlin Energy. The Rented Equipment must not be moved, handled, or maintained by anyone other than Kimlin Energy or someone authorized by Kimlin Energy.

8. Inspection Obligations

The Customer must regularly inspect the Rented Equipment and inform Kimlin Energy at once if the Rented Equipment has sustained any damage. The Customer shall follow the emergency procedures in the Safety Plan any time the Customer smells gas/propane or believes the Rented Equipment to be damaged.

9. Underground Tanks

An underground tank may be purchased or leased from Kimlin Energy for an annual rental fee. The Customer will be responsible for paying all fees for installation as well as for repairs and replacement of property, including landscaping, caused by or related to the installation. At the end of the usable life of the tank or on termination of the Service Agreement, the Customer must pay all costs incurred in relation to the removal and transportation of the rental tank.

Article III: Payment Terms

10. Payment Obligation

The Customer agrees to pay Kimlin Energy for all propane delivered, the rental price for Rented Equipment, and all other charges in accordance with the payment terms in the Customer's Service Agreement and the Schedule of Fees. Customers shall follow the Pay in Advance payment plan unless other arrangements have been made.

11. Payment Options

a. Pay in Advance. No propane or Rented Equipment will be delivered unless the Customer has paid in full all amounts due prior to delivery. Price per gallon is determined by Market Rate at the time the Customer submits payment.

b. Statement Billing. If approved, Kimlin Energy will bill the Customer after delivery. Payment is due by the due date identified on the statement. Kimlin Energy may, at its discretion, remove the Customer from Statement Billing and enroll them in Pay in Advance.

12–15. Billing, Credit, and Late Fees

Billing inquiries must be raised within ten (10) days of receiving a statement. Kimlin Energy may obtain credit information from consumer reporting agencies for Statement Billing customers. A late charge of two percent (2%) per month will be assessed on past-due balances. Returned checks will incur a fee of $60 or the highest amount permitted under applicable law, whichever is less.

Article IV: Equipment Purchase, Service & Repair

16–18. Purchase of Equipment

If the Customer purchases tanks, equipment, or other appliances from Kimlin Energy, the Customer will have sole responsibility for the Products after purchase. The Customer will be responsible for maintaining the Products in accordance with all applicable laws and industry standards. The Customer will have an opportunity to inspect and become familiar with the condition of the Products prior to purchase.

19. Environmental Matters

The Customer releases Kimlin Energy from any and all claims arising out of or in any way related to the presence of hazardous substances on, in, or under the Property where the Product purchased is located, regardless of how or when such hazardous substances came to be located there.

20. Exclusive Remedy

Your exclusive remedy for defective title or goods shall be limited solely to a refund of the purchase price. No other remedy shall be available to the Customer.

21. Personal Injury and Property Damage

Unless otherwise caused by the gross negligence of Kimlin Energy, Kimlin Energy shall not be liable or responsible for any personal injury or consequential damage, or any loss or damage to the premises or any property belonging to the Customer or any other person.

22. Service, Inspection and Repair

Kimlin Energy must perform an installation review prior to starting delivery to a new Customer. During any maintenance, repair, testing, or inspection service, Kimlin Energy will use reasonable commercial efforts to determine problems with your system. However, not all problems can be detected and some problems may develop later. Kimlin Energy undertakes no responsibility for the continuing maintenance or inspection of your system.

Article V: General Terms Applicable to All Services

23. Access to Property

The Customer agrees that Kimlin Energy representatives may enter your Property for the purpose of making deliveries, gaining access to equipment, repairs and maintenance, installing or removing property belonging to Kimlin Energy, and investigating the cause of any fire or accident. Kimlin Energy may refuse to provide Service if delivery cannot be made safely due to conditions on or approaching your Property.

24. Monitoring Your Property During Absence

If the Customer leaves its Property during the heating season or if the property is not continually occupied, the Customer must have someone check the Property daily or monitor it with an alarm system. Kimlin Energy will not be responsible for losses caused by failure to adequately monitor the Property during absence.

25. Compliance with Applicable Laws

The Customer must comply with all applicable laws and industry standards concerning use or storage of propane. The Customer will pay any costs associated with repairs, modifications, or additions to equipment required by applicable laws or industry standards.

26–27. Termination of Service

Service may be terminated without cause by either party by delivering written notice thirty (30) days prior to termination. If the Customer fails to perform any obligations under this Agreement, Kimlin Energy may immediately suspend or terminate Service. Upon termination, Kimlin Energy may adjust or disconnect equipment, pick up rented equipment, and repossess any propane left in the tank. The Customer will be charged applicable fees as set forth in the Schedule of Fees.

28. Payment of Taxes, Losses, and Collection Costs

The Customer is responsible for paying any taxes attributable to the propane and any rented equipment until termination of Service. The Customer must pay all costs Kimlin Energy incurs to enforce any of the provisions of this Agreement, including reasonable attorney's fees.

29. Indemnification

The Customer shall defend, indemnify, and hold harmless Kimlin Energy, its officers, and employees from and against any and all claims, losses, damages, causes of action, suits, liabilities, and judgments to the extent that such injuries, death, or damages are caused by the negligence or willful acts of the Customer or the Customer's guests, invitees, family members, employees, agents, contractors, and/or customers.

30. Dispute and Governing Laws

This Agreement shall be governed by and construed in accordance with the laws of the State of New York. In the event of any controversy, dispute, or claim, the exclusive remedy of the parties shall be to submit such controversy to binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association, held at a mutually agreeable location in Orange County, NY.

31. Limited Warranty, Disclaimer

Kimlin Energy warrants that at the time it transfers ownership of propane or any other product to the Customer, Kimlin Energy will transfer it free from all liens, claims, and encumbrances. KIMLIN ENERGY MAKES NO OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, NO INFRINGEMENT, SUITABILITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE.

32. Limitations of Liability

THE CUSTOMER AGREES THAT UNDER NO CIRCUMSTANCES WILL KIMLIN ENERGY BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING BUT NOT LIMITED TO LOST PROFITS OR INCREASED COSTS OF OPERATION, ARISING OUT OF OR IN RELATION TO PROVISION OF SERVICES BY KIMLIN ENERGY PURSUANT TO THIS AGREEMENT.

KIMLIN ENERGY'S LIABILITY IN CASE OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT FOR DAMAGE TO PREMISES OR LANDSCAPING DURING INSTALLATION, DISCONNECTION, OR DELIVERY SHALL NOT EXCEED THE REASONABLE COST OF REPAIR AND IN NO EVENT SHALL EXCEED ONE THOUSAND DOLLARS ($1,000).

33–35. Amendment, Property Issues & Miscellaneous

Kimlin Energy may amend this Agreement at any time by mailing written notice to the Customer, effective thirty (30) days after receipt. If the Customer owns the Property, the Customer must give Kimlin Energy thirty (30) days' prior notice before selling the Property. This Agreement, together with the Service Agreement and Safety Plan, constitutes the entire agreement between Kimlin Energy and the Customer. The Customer may not assign rights under this Agreement to any other party.