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ITEM 3.5 West WWTFTy 0 Ot C1 e F 0 14INUESOTA g DEPARTMENT INFORMATION Request for City Council Act -ion -W !- ORGINATING DEPARTMENT: - =-_ _ -- REQUESTOR'. -- ;- _-� - - I MEETING DATE: Utilities Kurt Neidermejer, Utility April 22, 2013 No Operations Supervisor BACKG RO U N D/J U STI F I CATiON, PRESENTER(s): REVIEWED BY: ITEM Consent Agenda Lori Johnson, City Administrator 3.5 West WWTF Digester The blowers require new sheaves to accommodate additional horsepower requirements Financing for the project is budgeted through sewer operations fund scheduled for 2013. Aeration AGENDA ITEM DETAILS RECOMMENDATION: The Public Works Subcommittee recommended at the April 16th meeting, the addition of fine bubble diffusers to the West WWTF digesters. The recommendation based on bid price and material is Sanitaire. Installation to be completed by staff. The equipment representative will install new sheaves, align and provide startup for both blowers to accommodate the additional air needs. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKG RO U N D/J U STI F I CATiON, An engineer review was conducted for the West WWTF aerobic digesters. The evaluation reviewed the existing system's insufficient treatment and equipment proposals to provide additional treatment. The recommendation identified fine bubble diffusers as a means to significantly improve digester performance and noted as the facility approached design capacities would require WAS optimization, further mixing and/or an additional digester tank. The attached proposals include material Supply for the addition of fine bubble diffusers. The blowers require new sheaves to accommodate additional horsepower requirements Financing for the project is budgeted through sewer operations fund scheduled for 2013. SUPPORTING DOCUMENTS: (X) ATTACHED a Engineer Review Proposals MOTION, (Please word motion as you would like it to appear in the rnlnutes) Motion to approve Sanitaire Aeration Equipment & Service for the West WWTF Digester for $8,970.00. BUDGET -INFORMATION FUNDING: 602 — Wastewater Utilities BUDGETED' (X) YES ACTION TAKEN DAPPROVED AS REQUESTED o DENIED oTABLED ❑ OTHER (List changes) COMMENTS: HE S Technical Memorandum: Aerobic Digester Diffuser Replacement Otsego West Wastewater Treatment Facility To: Kurt Neidenneier Utilities Operations Supervisor People Set -vice, Ine. City of Otsego Fronio. Scott Schaefer, PE Wastewater Group Manager AE2S Date: March 283 2013 (Cost recommencicition April 11, 2013) Project No,,,, P05409-2013-01 1 PURPOSE The purpose of this technical memo is to document the existhig challeiiges of the City of Otsego's aerobic digester at the West Wastewater Treatment Facility (WWWTF). 2 INTRODUCTION W-OWCA M i I � Pei VAT41 14 k M The WWWTF was commissioned hi 2004 to serve the western portion of Otsego near the City of Albertville, and the site is surrounded by residential homes. The facility includes an extended aeration activated sludge plant utilizing oxidation ditches. There are no 1).rimary clarifiers. Ferric is added to inaintain effluent total phosphorus (FIT} concentrations below I ing/L. Waste activated sludge (WAS) Froin the oxidation ditches is seiit to the solids handlhig system for ftirther processhig. WAS can either go directly to the aerobic digesters two units, approximately 45,000 gallons each) or can be pre -thickened with a gravity belt thickener (GBT) prior to the aerobic digesters. The G is typically capable of producing thickened WAS in the 4-1 ercent to 5 -percent total solids range. The aerobic digesters are aerated with coarse bubble diffusers, which are armiged along otie side of each tajilc to create a "roll"' mixhig patteni. The existing coarse bubble aeration system appears to be based on aerobic digester design stmidards for "thiii" sludge of less than 2 -percent total solids, which is the standard design coticentration published iii Ten States Statidards. The aeration system was designed to deliver 4 approximately 360 standard cubic feet per. mmute (SUM) of air per Ten States Stmidards with Aerobic Digester Diffuser Replacement Page 1 of 7 Think Big. Go Beyond. RE www.ae2s.coni two (lead -lag) 25 -horsepower blowers. However, the stated design hydratilic reteiitimi time (HRT) of 45 days for the aerobic digesters would leave required the use of the G to thicken the digester solids. The design solids loading rate (solids in pounds per day) was not found in the review of the original design dOCLI111elItS, so the design . percent solids is not known, although it was assumed to be approximately 5-perceiit. 2.2 BIOSOLIDS HANDLING REQUIREMENTS The wastewater biosolids that are produced during the wastewater treatment process must be disposed of property. Disposal regulations depend on the disposal method with the most con nimi disposal methods being land application to agricultural fields and landfilliiig. Land application of bio olid is practiced by the WWWTF and is regulated under USEPA 40 Code of Federal RegUlations (CPI.) Part 503, Standards for the Use and Disposal of Sewage Sludge (coninionly referred to as the "503 regulations"). The 503 regulations require pathogen destruction and vector attractant reduction. The aerobic digestion system in combination with the digested sludge storage is intended to meet the requirements of the 503 regulations, and a 45 day HRT in the aerobic digesters is considered sufficient to produce sludge to meet the standards flit-ough testing, 2.3 ACRONYMS I A list of common water quai lity acroiiynis s riovded below: • BODs Five Day Biological Oxygen Demand • CF Cubic Feet • CFR Code of Federal Regulations • G Gravity Belt Thickener • glad Gallons per day • HRT Hydraulic Reteiitimi Time • MG Million Gallons • MGD Millim Gallons per Day • ing/L Milligram per Liter • pH Negative Logaritlim of the Hydronium Ion (Acidity) • ppd Pounds per Day • SCFM Standard Cubic Feet per Minute • TKN Total Kjeldalfl Nitrogen (organic llitt'Ogell Plus aninionia as nitrogen.) • TN Total Nitrogeii • TP Total Phosphorus • TS Total Solids • TSS Total Suspended Solids •VS Volatile Solids 0 WAS Waste Activated Sludge 0 WWWTF West Wastewater Treatment Facility Aerobic Digester Diffuser Replacement Page 2 of 7 Think Big. Go Beyond. H EIS wwmae2s.com 3 EVALUATION 3A PROBLEM STATEMENT The aerobic digesters have exhibited poor performance, which has led to odor complaiiits. The WWWTF staff have tried several methods for improving the digester performance, but the aeration system was unable to makitaiii dissolved oxygen. At solids concentrations up to approximately 2-perceiit, the solids -water matrix behaves similar to clean water, but at higher solids concentrations the mixture can become compressible and exhibit increased viscosity, which requires additional mixing energy. Polymer usage can also increase the sludge viscosity. Further, a higher solids concentration will reduce the oxygen transfer efficiency of the aeration system. Proper mixing and dissolved oxygen are both required to prevent odors. 3.2 DESIGN CRITERIA An air flow rate of 40 SUM per 1,000 CF is the minimum recommended air flow rate for mixing at TS concentration above 2 -percent. The two digesters have a working volume of approximately 1200 CF., so a minitnum of 480 SUM is reqUired to be delivered. For mixing with solids concentrations above 2-perceiit, a full floor coverage diffuser arrangement is recommended becaLISC the "side -roll" style arrangement (existing) leas an increased chance of dead zones that produce odors. Additionally, the aeration system needs the capability to maintain a dissolved oxygen concentration of 2 mg/L. The required oxygen delivery requires several assumptions including the VS:TS ratio (assumed at 0.7), future VS destruction (aSSLIrned at 40 -permit), and oxygen requirement per pound VS destroyed (assumed at 2.3 lb-02/lb-VS, including nitrification). Based on these assumptions and a maximum digester TS of 4 -percent, the delivered oxygen requirement is approximately 600 ppd of delivered oxygen, 33 EXISTING SYSTEM EVALUATION The existing coarse bubble diffusers will Dave poor oxygen transfer dUe to the higher solids commtratiom, acid are not recommended for this application, Poor oxygen transfer has been experlemed at the WWWTF, which has resulted in anaerobic conditions that have produced odors. Additionally, the air flow rate is below the recommended ininimum for nlixmg, and the side -roll aeration is not recommended for the higher solids concentrations. The blowers cm be modified to provide additional air flow, but the side -roll mixing design and poor oxygen transfer efficiency will still limit the capabilities of the aerobic digesters. The existing diffuset, systein cannot deliver the required oxygen. An additional sizing investigation was performed oii the aerobic digesters. Aerobic digester sizing is a concern because the facility appears to be prodLICillg MON sludge than was accounted for in the origitial design. The WAS loading to the digesters is not currently a problem because the illflLlellt flows are only about 0.25 MGD (design annual average flow is 0.60 MGD). However, the Sludge production appears to be higher than plaimed iii the initial design. As influent flow increases, the solids production will also increase, and the digester HRT will decrease. Table 3 -1 shows the projected HRT of the digesters at various influent flow rates and thickened WAS comentratiom based on the current wasting of approximately 7,000 gpd of 0.8 -percent WAS with influent flows of 0.25 MGD. Note that Table 3-1 does not account for the volatile solids (VS) Aerobic Digester Diffuser Replacement Page 3 of 7 Think Big. Go Beyond. www.ae2sxom destrLICti011 that occurs in the aerobic digesters. Table 3-2 assunies an average WAS VS:TS ratio of 0.7 and an average volatile solids destructimi of 40-perceiit. Mahitaining high VS destruction is important to niaintaining digester performance as shown by the differwice in influent flow rates for estimated influent flows at 4 -percent WAS increasing from 0.35 MGD to almost 0.50 MGD. Tables 3-1 and 3-2 can be used as quick estimates for future flowrates based on current system perforniance, but the aerobic digesters should only be loaded at approxiniately 930 ppd TS based on the assumptions used for Table 3-2, regardless of the influent flowrate. Table 3-1: Digester- HRT at Vai-ious Flog s and WAS Coneezitrations Influent Flow, I MGD 0.10 1.0%--- 40.2 1.5% 60.3 2.0% 80.4 Average 2.6% 100.4 WAS TS, 3.0% 120.6 % 3,5% 140.6 4.0% 160.7 4.5% 180.8 5.0% 200.9 0.15 26.8 40.2 53.6 67.0 80.4 93.8 107.1 120.5 133.9 0.20 20.1 30.1 40.2 50.2 60.3 70.3 80.4 90.4 100.4 0.25 16.1 24.1 32.1 40.2 48.2 66.3 64.3 72.3 80.4 0.30 13.4 20.1 26.8 33.5 40.2 46.9 53.6 60.3 67.0 0.35 11.5 17.2 23.0 28.7 34.4 40.2 45.9 51.7 57.4 0.40 10.0 15.1 20.1 25.1 30.1 35.2 40.2 45.2 60.2-: 0.45 8.9- 13.4 17.9 223 26.8 31.3 35.7 40.2 44.6 0.50 8.0 12.1 16.1 20.1 24.1 28.1 32.1 36.2 40.2 0.55 7.3 11.0 14.6 18.3 21.9 25.6 29.2 32.9 36.5 0.60 6.7 10.0 13.4 16.7 20.1 23.4 26.8 30.1 33.5 0.65 6.2- 9.3 12.4 15.5 18.6 21.6 24.7 27.8 30.9 0.70 5.7 8.6 11.5 14.3 17.2 1 20.1.1 23.0 26.8 Notes: Bold numbers indicate DP Ts greater than the minimum 45 days. Shaded cells indicate WAS concentrations. higher than recommended for fine bubble diffusers. Based on TS loading only. 28.7 Table 3-2: Digester HRT at Various Flows and WAS Cone enti"ation s with VS Desti-lictioli Influent Flow, MGD 1.0% 1.5%2.0%,5%3.0% Average 2 WAS TSP % 3.5% 4.0% 4.5% 6.0% 0.10 55.8 83.7 111.6 139.5 167.4 195.3 223.2 251.1 279.0 0.15 37.2 55.8 74.4 93.0 111.6 130.2 148.8 167.4 186.0 0.20 27.9 41.9 55.8 69.8 83.7 97.7 111.6 125.6 139.5 0.25 22.3 33.5 44.6 55.8 67.0 78.1 89.3 100.4 111.6 0.30 18,6 27.9 37.2 46.5 55.8 66.1 74.4 83.7 93.0 0.35 15.9 23.9 31.9 39.9 47.8 55.8 63.8 71.7 79.7 0.40 14.0 20.9 27.9 34.9 41.9 48.8 55.8 62.8 69.8 0.45 12.4 18.6 24.8 31.0 37.2 43.4 49.6 55.8 62.0 0.50 11.2 16.7 22.3 27.9 33.5 39.1 44.6 50.2 55.8 0.55 10.1 15.2 20.3 25.4 30.4 35.5 40.6 45.7 50.7 0.60 9.3 14.0 18.6 23.3 27.9 32.6 37.2 41.9 46.6 0.65 8.6 12.9 17.2 21.5 25.8 30.0 34.3 38.6 42.9 0.70 8.0 12.0 1 15.9 1 9,� 23.2 27.9 31.9 35.9 1 39.9 Notes: Bold numbers indicate Hs greater than the minimum 45 days. Shaded cells indicate WAS concentrations higher than recommended for fine bubble diffusers. Based on 0.7 VS -TS ratio and 40-Rercent VS destruction. Aerobic Digester Diffuser Replacement Page 4 of 7 rk� Think Big. Go Beyond K- Mb- wwmae2sxom 3A REPLACEMENT SYSTEM EVALUATION Replacement of the diffusers with fire bubble diffusers is recommended for solids above 2 -permit TS, but not trrore than--percejit TS. Replacement ofthe iffuserwith a jet a x ii zi system is recommended for solids conceritr•ations above 4 -percent. Based on the ability of the G T to produce thic erred solids in the4-percent to -percent range acid the anticipated SIS de trrrctior1, the existing thickening system would be witil ely to achiever solids concentrations in the aerobic digester* above 4 -percent. A fine babble diffuser system is recommended over a jet aeration system at this time due to the easier retrofit that can be implemented by operations staff. Two fine bubble diffuser proposals were reviewed. The proposals from Sanitaire and Environmental Dynamics International (EDI) generally included fine bubble inembrane diffusers, diffuser assemblies, air headers, manifolds, and pipe supports. The provided materials would be connected to the existing aeration system drop legs. The proposals included limited technical inform tion and review of the proposals was not a complete strop drawing review. The differences between the proposals included: The Sanitaire proposal included a total of 180 diffusers versus 176 diffusers for ED1. The difference is likely based on differences in mmifold layout, but EDI did not provide a proposed layout for comparison. This difference is considered Negligible, but EDI could be asked to provide the additional diffuser assemblies as spare parts. The Sanitaire proposal included 4-itich PVC air distr ibL16011 headers versus -inch PVC air distribution headers for EDS, The smaller headers would add additional headloss to the blowers, which could be overcome, but 4 -inch is reconimeiided. Furthei-, the .3 -inch header i vo i ild ho m a velocity at 2 72 i -cent of the inaxiniwn i- con7111 elided velo cityfor .3 -inch. The -inch upou c have a v locit� 2 i• �� of the ��� ����r��nan r co������ � d velo i1j). The Smitaire proposal included 304SS supports for the air distribution headers verstis polypropylene for ED1. Either support is acceptable. Overall, either proposal would be acceptable basal on the provided information, but the Sanitaire proposal was slightly better and the differences should beconsidered when costs are compared. Note that costs were not provided for the EDI proposal, so a cost evaluation was not possible at this flare. Price qL10teS were not assailable for both proposals, so a final recommendation cannot be provided. Cstc �� — April 2013 rvvised hard bid quote was mceiv , om Sa italT to i-eplace the initial udget quote that ims previously i -civ . The Sanitah-e quoteims also revised include n1j; one star'tu visit. Costs wei-e also r iv fi-oin ED1, and a second quote u4th a -inch hdi• instead r ` the oi-igi a .3 -ince eadei% 'anr'tah-e is i-ecommended basedon a bird pi,ice of x'8,9 70 v i'sus the EDI, nal bice price oj'$9,979. Also, the blowers will require new sheaves to produce the required additional horsepower, Conversations have already been initiated with the blower manufacturer, and the mallrrfactur+er• recommendations for providing 480 SCFM should be followed. The fine bubble diffuser system is recommended as a straightforward way to significantly iiiipro e the aerobic digester; performance, but note that one or more of the following itenis will creed to Aerobic Digester Diffusor Replacernent Page 5 of Think Big. Go Beyond,P0 v1w . e2s.00ni occur in the ffiture to inaintain digester perforiiaance, as influent flows approach the rated design flows: 0 Decreased WAS production rates through cyst in optimization. 0 Increased WAS thickening performance and conversion to a jet. aeration system for the aerobic digesters. a An additional aerobic digester tatik and associated piping, pumping, and aeration. 4 OPERATIONAL CONSIDERATIONS The following operational considerations are provided: Digester pH and all o The thickened WAS will have a higher concentration ofTK N thall the unthickelle d WAS that has been digested at the WWWTF. Additional nitrification will occur in the digesters, which will consuine alkalinity. This situation is 111ade worse because the WAS thickening process reinoves inuch of the WAS all with the supernatant. Due to this situation, denitrifleation inay be required to recover all or chemical alkalinity additions) to maintain an optimuni pH in the 7.0- 8.0 range for biological activity. o Direct all ineaSUrement is not necessary. Digester pH should be inoni 0 Low VS destruction o Check pH, o Check dissolved oxygen. o Supplemental mixing may be required to improve VS destructioll, As described in Section 3.3 and 3.4, the solids train will likely reach its capacity before the liquid train based on existing solids prodLICti011. Additional infrastructure or niodificatiolls may be necessary if sludge production cannot be decreased. Aerobic Digester Diffuser Replacement Page 7 of 7 Think Big. Go Beyond. �i El�s www.ae2s.com lean Water Solutions USA, Inc. 9333 N. 49t4 Street, Brown Deer, Wl 53223 Tel 414.365-2200 Fax 414.355.221 DATE: April 8,2013 TO: City of Otsego E: Otsego, M — NT Sanitaire #23359-1 SANITAIRE a xylem brand We propose to furnish the following Aeration Equipment subject to the terns and conditions set forth herein: A. EI II'MEI T AND SERVICE The xylene eater Solutions USA scope of supply for this project includes the following equipment and services: 1. Fine BubbleAeration: Two (2) SANITAIRE' Membrane Mise Fine Bubble Aeration Grids for installation in the following tanks, Tank Qty of Grids Aerobe Digester I 1 Aerobic Digester 2 1 Total: Equipment for h grid will include a One PVC drop pipe for connection to the end of existing stainless steel dropleg approximately 3 f t above the floor of the tank. The existing 3 " droplegs ► ill he rerzsed. 0 One PVC manifold with connections for each 4 inch diameter air distributor. 0 304 Stainless steel manifold supports with hold clamps and cradle. a Four -inch diameter I'B'C air distribution headers including: ® Fixed anti -rotational joint connection to the air manifold. ■ Factory installed diffuser holders. Positive locking fixed anti -rotational joint connections. 304 Stainless steel air distribution leader support stands with header bold down clamp and locating plate. SANITAIRE' Fire Bubble Membrane Diffuser Elements and retainer rings. 1 0 SANITAIRE axylem brand a Flanges, bolts, nuts and neoprene gaskets necessary to assemble the system. 0 One purge system. 0 304 Stainless steel anchor bolts for the manifold and header supports. NOTE: Anchor bolts are designed for installation in 4000 PSI Concrete per ACI Committee 350 ("Concrete Sanitary Engineering Structures"). 2. Engineering Drawings: Required sets of engineering drawings. 3. 0 & M Manuals: Required sets of 0 & M Manuals. 4. Field Installation Supervision and Start -Up Services: The following services will be provided: Start -Up, Training One (1) Trip, One (1) Day B. EXCLUSIONS The following are specifically excluded from our proposal: 1. New stainless steel droplegs. The existing droplegs will be reused. 2. All valves, air main piping and accessories. 3. All bolts, gaskets and connectors for attaching drop pipe to upper air main piping. 4. Installation of equipment furnished by Xylem -Sanitaire. 5. All costs associated with video taping services. C. ESTIMATED SUBMITTALS AND DELIVERIES: The submittal schedule begins after acceptance of purchase order by Sanitaire. Delivery schedule begins after receipt of approved drawings; assume two week turnaround of submittals by the review engineer. Certified engineered equipment drawings: 6 weeks Equipment Shipment (after release for fabrication): 10 — 12 weeks D. PRICING Pricing for the equipment and field services outlined in this proposal, including freight to jobsite: $ 8,970 - 2 - a SANITAIRE a xylem brand E. PRICE NOTES 1. Taxes are not included. Purchaser to pay directly A applicable taxes separate from purchase order to Xylem Water Solutions USA. 2. All prices quoted shall be valid for 90 days from the date of bidding. 3. The prices are based on the equipment being released for shipment by the 3rd Quarter, 2013. 4. Prices oil orders received after the above deadline or specifying later shipping dates shall be subject to review and possible adjustment in line with the then existing econornic. conditions. 5. Terms of Payment: 10% Net 30 days due upon submission of shop drawings to Purchaser. 85% Net 30 days after shipment 5010 After Start Up and Substantial use or filial acceptance, Not To Exceed 180 days after shipment. 6. An interest charge of 1 1/2% per month will be added to past due accounts. 7. Other conditions of sale shall apply as noted hi the attached Terms & Conditions. F. WARRANTY Xylem Water Solutions USA warrants all parts to be free from defective material and workmanship for a period of one (1) year after Startup or eighteen (18) months after shipment and to furnish to the Owner replacements for any stich items found to be defective within that period. - 3 - a SANITAIRE a xylem brand G. PATENTS Equipment offered in this proposal is covered by the following U.S. Patent owned by Xylene: 5,714,062. No person or firin other than Xylene is licensed to sell or install equiptnent under this patent. Xylem hereby agrees that any purchaser who purchases listed equipinent frons Xylene shall, in consideration of such purchase and without payment other than the agreed upon purchase price for the equipment, be licensed to install such equipment, and such equipinent inay be used by the installer or ally subsequent owner of the equipment throughout its useful life free of any claire of patent infringement by Xylene, its successors and assigns. Tbank you for considering our proposal for this equiptuent. C Scott Mulinix, P.E. Territory Manager CC: Sanitaire Representative: Engineering Anierica, Inc. Oal<dale, MN (6S 1) 777-4041 - 4 - Xy lem TERMS AND CONDYTYONS OF SALES 1. Acceptance and Cancellation. This writing is an offer or counteroffer by Xylem, (tine "Seller") to sell the products and/or services set forth on the quotation or sales farm subject to these terms and conditions. No orders for products shall be binding upon Seller until accepted in writing by an authorized official of Seller at its home office in Milwaukee, Wisconsin. Each order shall be subject to these terms and conditions, and acceptance of an order by Seller is expressly conditioned on assent to such terms and conditions, which assent shall be deemed given unless Buyer shall notify Seller to the contrary in writing within ten 10) days after receipt of acknowledgment or confirmation of an order. No additional or different terms and conditions will be binding upon Seller unless specifically agreed to in writing: Seller hereby objects to any such conditions, and the failure of Seller to object to specific provisions contained in any purchase order or other communication from Buyer shall not be construed as a waiver of these terms and condiflons nor an acceptance of any such provisions, No order accepted by Seller may be altered or modified by the Buyer unless agreed to in writing by Seller, and no such order may be cancelled or terminated except upon payment of Sellers loss, damage and expense arising from such cancellation or termination. . Prices. The prices quoted by Seller automatically expire sixty (60) calendar clays from the date of Seller's quotation unless specifically noted otherwise. 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Delivery will be f.o.b. point of shipment, and all risk of loss or damage in transit shall be borne by Buyer, Seller reserves the right to make delivery In installments. All such installments shall be separately invoiced and paid for when due, without regard to subsequent deliveries. Delay In delivery of any Installment small not relieve Buyer of its abl'igaVon to accept rernaining deliveries. If shipment shall be deferred at Buyers request, payment shall become due and payable upon notification by the Seller that the products provided for by this agreement are ready for shipment. In case of such delay in shipment, storage shall be at the Buyers risk and expense. Prorata payments shall be made for partial shipments.. Claims for shortages or other errors in delivery rust be made in writing to Seller within 10 days after receipt of shipment, and failure to give such notice shall constitute unqualified acceptance and a waiver of all such claims by Buyer. Clairns for loss or damage to goods in transit should be made to the carrier and not to Seller. Buyrer is responsible for the installation, rnaintenance and operation of the products. Buyer shall keep and maintain Bald products in good condition and shall not permit waste to be committed thereon and shall keep products fully insured against loss or damage from the normal hazards of such installation, maintenance and operation until the balance of the purchase price is fully paid in cash. Injury or destruction of such property after Installation upon, Buyer's site shall not release the Buyer from its obligation to make payments as herein provided. Seller shall not be liable for any damage as a result of any delay due to any cause beyond Sellers reasonable control, including, without linnitation, an act of God, act of the Buyer, embargo or other governmental act, regulation or request, fire, accident, strife, slow -down, war, riot, delay in transportation or inability to obtain necessary tabor, materials, trarrsportaklon or manufacturing facilities. In the event of any such delay, the data of delivery shall be extended for a ,period equal to the time lost by reason of the delay. Buyers exclusive remedy for other delays and for Seller's inability to deliver for any reason shall be rescission of this agreement. 4. Payment Terms. Terms of payment shall be as ,specified in Sellers proposal. if not so spec�fled, t rrrrs of payment for products shall be net cash, thirty (0) days after shipment of products. Where Seller is to provide installation, terms of payment for installation shall be as specified in Seller's proposal, If not so specified, terms of payment for installation shall be net cash, thirty (0) days after completion of installation of Sellers products. interest at the rate of one and one-half percent (1 1/2%) per month (but not greater than the highest rate permitted by applicable law) will be charged on all accounts not paid when due. S. Title and Security interest. Until Seller collects in full all amounts Buyer owes under the order and any other ,safes behveen the parties, Seller retains title to the .products and Buyer grants to Seller a continuing security interest in and a lien upon the products and the proceeds thereof (including insurance proceeds), as security for the payment of all such amounts and the performance by Buyer of all of its obligations to Seller pursuant to the order and all such other sales, and Buyer shall have no right to sell, encumber or dispose of the products. Buyer shall execute any and all financing statements and other documents and instruments and do and parform any and all other acts and things which Seller may consider necessary, desirable or appropriate to establish, perfect S or protect Sellers title, security interest and lien. In addition, Buyer authorizes Seller and its agents and employees to execrate any and all such documents and instruments and do and perform any and all such acts and things, at Buyer's expense, in Buyer's narne and on its behalf. Such documents and instruments may also be filed without the signature of Buyer to the extent permitted by law. 6. Limitations on Warranties .and Remedies. Seller warrants all products manufactured by it and supplied hereunder to be free from defects in material and workmanship for a period of one (1) year from the date of shipment to Buyer. This warranty shall not apply to pnme movers, starting products, electrical apparatus, parts., material and any other products not manufactured by Seller; the warranties, if any, of the respective manufacturers of such products, parts or material shall solely apply. Seller has no liability for ,products installed by anyone other than it or its authorized agent. Decomposition by chemical action and wear caused by the presence of abrasive materials shall .not constitute defects ander the foregoing warranty, nor shall the warranty apply to ,products which have been repaired or altered by others without Sellers written consent. If %arithin such cne (1) year warranty period any products warranted hereunder are proven to Sellers satisfaction to be defective, such products will be repaired, or at Seller's option, replaced without charge. Sellers obligation hereunder is further conditioned upon Sellers receipt of written notice of any alleged defect within ten (10) calendar days of Its discovery and, at Sellers caption, the return of the allegedly defective products to Seller at the place Seller directs. THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY AND FITNESS FOR PURPOSE, AND SELLER SHALL NOT BE SUBJECT TO ANY OTHER OBLIGATIONS OR LIABILITIE WHATSOEVER WITH RESPECT TO PRODUCTS, PARTS OR SERVICES MANUFACTURED OR FURNiSHED BY IT, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATING THERETO, Any description of the products, whether in writing or made orally by Seller or its agents, specifications, samples, models, bulletins, drawings, diagrams, engineering sheets or similar materials used in connection with Buyers order are for the sole purpose of identifying the products and shall not be construed as ars express warranty, Any suggestions by Seller or Sellers agents regarding use, application or suitability of the products shall not be construed as an express warranty unless confirmed to be such in writing by Seller. 7. Taxes and Other Charges. Any manufacturers tax, retailers occupation tax, use tax, sales tax, excise tax, duty, custom, inspection or testing fees or any other tax, Xy lem TERMS AND CONDITIONS OF SALES fee or charge of any nature �vhatscever, imposed by any governmental authority, on or measured by any transaction behyeen Sealer and the Buyer, shall be paid by the Buyer in addition to the prices quoted or invoiced, unless Seller specifically states that such takes or charges are included in such price. In the event Seller shall be required to pay any such to , fee or charge, the Buyer shall reimburse Seller therefor (including any interest and penalties relating thereto), or, in lieu of such payment, the Buyer shall provide Seller at the time the order is submitted with an exemption ce6fleate or other document acceptable to the authodty imposing the sane. 8. Patents, Trademarks and Copyrights. Seller will, at its expense, defend any suits that may be instituted by anyone against Buyer for alleged Infringement of an United States patent, trademark or copyright relating to any products manufactured and furnished by Seller hereunder, if such alleged Infringement consists of the use of such products, or parts thereof, in Buyer's business for any of the purposes for which the same were sold by Seller, and provided Buyer shall have made all payments then due hereunder and shall give Seller immediate notice in writings of any such suit and transmit to Seller immediately upon receipt all processes and papers served upon Buyer and permit Seller through its counsel, either in the name of Buyer or in the name of Seller, to defend the sauce and give all needed information, assistance and authority to enable Seller to do so. If such products are in such suit held in and of themselves to infringe any valid United States ;patent, trademark or copyright, then: a) Seller will pay any final award of damages In such suit attributable to such infringement, and (b) if in such suit use of such products by Buyer is permanently enjoined by reason of such infringement, Seller~ shall, at its own expense and at its sole option, either (i) procure For Buyer the right to continue using the products, (ii) modify the products to render them neon -Infringing, (iii) replace tate products with non-lWnging goods, or (iv) refund the purchase prig and transportation costs paid by Buyer for the products. No withstanding the foregoing, Seller shall not be responsible for any comprontlse or settlement made without its w6 ten consent, or for infringements of combination or process patents covering the use of the products in combination with ether goads or materials not furnished by Seller. THE FOREGOING STATES THE ENTIRE LIABILITY OF SELLER FOR INFRINGEMENT, AND IN NO EVENT SHALL SELLER BE LIABLE FOR CrONSEQUENTiAL DAMAGES ATTRIBUTABLE TO AN INFRINGEMENT. As to any products furnished by Seller to Buyer manufactured in accordance with drawings, designs or specifications proposed or furnished by Buyer or any Balm of contributory infringement resulting from the use or resale by Buyer of products sold hereunder, Seller shall not be liable, and Buyer shall indemnify Seller against any award made against Seller for any and all patent, trademark or copyright infringements, g. Substitutes. Seller may furnish suitable substitutes for products unobtainable because of priorities or regulations established by governmental authority or the non-ava.ilability of goads from suppliers. 10. Permits, The Buyer shall have Full responsibility for securing the requisite permits and compliance with all health and sanitation laws, ordinances and regulations pertaining to the installation of the products involved in a sewage treatment plant or other products sold by Seller. il. Llrnitatlons on Consequontlal Damages and Other Liarbility; Buyer's Indere nitY, Except as otheRvise agreed in wilting, Seller's liability %-Ah respect to the products and/or services sold hereunder shall be limited to the warranty provided in Paragraph S hereof, and, with respect to other performance of this contract, shall be limited to the contract price. SELLER SHALL NOT BE SUBJECT TO AND DISCLAIMS ANY OTHER OBLIGATIONS OR LIABILITIES, WHETHER ARISING OUT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE AND STRICT LI,ABiLITY) OR OTHER THEORIES OF LAW, WITH RESPECT TO PRODUCTS SOLES OR SERVICES RENDERED BY SELLER, OR ANY UNDERTAKINGS, ACTS OR OMISSIONS RELATING THERETO. Without limiting the generality of the foregoing, Seller speciflly disclaims any liability for property or personal injury damages, penalties, special or punitive damages, damages for lost profits or revenues, loss of use of products or any associated products, cost of capital, east of substitute products, facilities or services, down -Urns, smut -down or slowdown costs, or for any other types of economic loss, and for claims of Buyers customers or any third party for any such damages, AM the limitations and disclalmers contained in this paragraph and in the rest of this contract shall apply to +ctairns of Buyera's customers or any third party. SELLER SHALL NOT BE LIABLE FOR AND DISCLAIMS ALL CONSEQUENTIAL, INCIDENTAL AND CONTINGENT DAMAGES WHATSOEVER. Buyer shall indemnify Seller against any and all losses, liabilities, damages and expenses (including, without Ilmitation, attorneys' fees and other costs of defending any action) which Seller may incur as a result of any claim by Buyer or others arising out of or in connection with the products and/or services sold hereunder and based on product or service defects not proven to have been caused solely by Sellers negligence, 12. Technical information, Any sketches, models or samples submitted by Seller shall remain the property of Seller, and shall be treated as confidential information unless eller has in w6fingi indicated a contrary intent. No use or disclosure of such sketches, models and samples, or any design or production techniques revealed thereby, shall be made without Seller's express written consent. — 6 — 13. Buyer's Property. No property of Buyer place in Sellers custody for performance of this contract Is covered by Sellers insurance, and Seller assumes no risk in the event of loss or damage to such property b fire, water, burglary, theft civil disorder or any accident beyond Seller's reasonable control,. 14, Tools. Any dies, Jigs or tools which Seller manufactures or acquires for performance of this contract shall remain the property of Seller, notwithstanding any charges therefor. Tool charges convey to Buyer the right to have the tools used by Seller for performance of this contract, but they do not convey title or right of possession. Seller shall be responsible for routine maintenance and repair of such tools, dies and jigs, Major overhauls, replacements or changes shall be charged to the Buyer. 15, Return's. Products may be returned to Seller only when Buyer obtains Sellers advance written ,permission therefor. Returned products must be securely packaged to reach Seller without damage; and any cost incurred by Seller to put products in marketable condition will be charged to Buyer. 16. Governing Provisions. THE CONTRACT FOR SALE AND THESE TERMS AND CONDITIONS SHALL CONSTITUTE THE ENTIRE AGREEMENT BETWEEN BUYER AND SELLER AND SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE INTERNAL LAWS OF THE STATE OF WISCONSIN (WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS). THE RIGHTS HT AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL NOT BE GOVERNED BY THE 1980 U.N. CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS. SELLER RESERVES THE RIGHT TO IMPOSE DIFFERENT OR ADDITIONAL TERMS OF SALE CTI INTERNATIONAL SALES ANWOR SALES OF SERVICES. Ilsales/terms W ENVIRONMENTAL DYNAMICS INTERNATIONAL 5601 Paris Rd. Columbia, MO 66202 USA Phone: +1.573.474.9456 Fax: +1.573.474.6988 vmv. astewater.com edlPwastewater.com EDI PROPOSAL 00128-`10-2 — Rev A TO: Bidding Contractors RE: Otsego, MN EDI Fixed Aeration & Mixing System With FlexAlro Disc Diffusers Gentlemen: Environmental Dynamics International (LDI) is pleased to offer the FlexA'lr Aeration Mixing System for the Otsego, MN project. EDI Is offering a complete system inclu,ding all In -basin aeration components. EDI is offering the In -basin aeration components complete wlth all necessary components required for installation of the system downstream of the bottom connection of the drop pipe. The FlaxAir Disr, diffuser Is proposed for this project. The AexAlr Disc diffuser does provide several advantages to the Installing contractor and end users. The primary bonefits provided follow: 1. Factory assembled components for minimum field Installatlon manpower requirements. Preassembled components include: a. Header assemblies. Headers provided with factory -drilled outlets for diffuser installation at required diffuser locations. b. FlexAlro Disc units.—Diffuser assembly (disc holder, membrane and retaining ring) Is provided factory assembled. Diffuser units clamp directly into header pipe at predrilled outlet locations by Contractor. Individual diffusers are roplaceable without changing air distribution piping. c. Field expanslon is possible with simple drill and clamp -on procedure. 2. Standard PVC Piping Components. Piping cornponents are easily replaced should a pipe section be damaged. Competing systems using non-standard pipe and factory glued -on diffuser heads requires the purchase of an entire header section from the oT!glnal equipment manufacturer. The FlexAlr Aeration -Mixing system is covered by U.S. patents. Equipment orders resulting from this proposal Includes a license to use the FlexAlr Aeration -Mixing system on the Otsego, MN project. Eciulpment Supmlv: Digester Components, Components Listed for One Tank, (2 Tanks Total): 1 4" 304 Stainless Steel CouplIng. Coupling joins plain ends of SS drop and PVC manifold. 1 4" Schedule 40 PVC Air Distribution Manifold Assembly. Assembly provided factory assembled and shipped in SLO-assembllas. Assembly includes flanged connections at all field Joints, flanged header connections and stainless steel flange fasteners. 4 4 0 SDR -26 PVC Air Header Assembly. Assembly provided factory assembled and shipped in sub-assembiles. Assembly includes flanged connections at all field joints, diffuser outlet ports, end cap and stainless steal flange fasteners. Lot 304 Stainless Steel Plpe Support for Manifold Assembly. Anchor bolts included. aernfion for 1i ENGINEERING E D I PROPOSAL CO128-13 -2 — Rev A ENVIRONMENTAL DYNAMICS INTERNATIONAL Otsego, MN Page 2 Lot Glass Filled Polypropylene SuperStrut Support for Air Header Assern6lies. Anchor bolts included, 88 FlexAIr Disc Diffuser Assembly. Diffuser assembly provided factory assembled. Assembly includes disc, holder, membrane, and retainer ring. Proposal Notes: 1. EDI can offer installation services for this project through Aeration Works"', a Dlv1slon of EDL Aeration Works Is uniquely capable of installing EDI equipment because of its multiple years of experience in installing all of EDI's various aeration equipment. Aeration Works will Insure that the Installation meets all of M's specifications and directions. Quotation for the Instalfation of the above detailed systerns is available upon request. 2. Only equipment listed abovo is offered by EDI. 3. Actual quant1fles of materials supplied by EDI will include surplus quantities to aid in the complete installation of tile system. Surplus components are furnished as an extra service by EDI to minimize Installation delays associated with normal Job ite losses. Surplus [terns are suppiled at no extra cost. 4. This proposal is subject to standard EDI terms and conditions attached. 5. Only hardware is offered by EDI. Unless specifically quoted, Installation and labor by others. 6. EDI offers patented equipment and systems: Equipment offered by ED] in this proposal may be covered by one or more patents. 7, This proposal has not been published and Is the sole property of Environmental Dynamlos International. It is lent to the borrower for his/her confidential use only. In consideration of this loan, the borrower pronilses to return it upon request and agrees that it shall not be reproduced, copied, shared, lent, or otherwise disposed of, directly or Indirectly, nor used for any purpose other than that for whlch it is specifically furnished. Field Service: Onsite technical assistance (11 trips not to exceed I workdays onsite) is included for review of general conformance to system Installation guidelines and systain commissioning. In order to allow reasonable scheduling and to ensure an EDI Representative Is available, at least a 3 week notice is required when schoduling service visit Please be aware that not providing proper notico and/or changing the requested schedUle after confirmation may result In additional charges and/or fees. Additional field services, if required, are avallable at a per diem rate of $750 per man per day plus travel and living expenses. Price: Aeration Equipment: 0 Carriage FOB' to Otsego, MN. a The quoted price is plus all appilcable taxes and is firm for 90 days. 0 Prices quoted are based on the proposed equipment being released for shipment 6 months after the date of this proposal. 0 Prices on orders received after the above deadline or sbecifying later -shippi no dates shall be subject to review and possible adjustment. Payment Terms: Requests for extended financing beyond the Not terms Indicated below will be quoted based upon the Payment terms being requested at the time of order placenient. 95% net 45 days from ShIpment. 5% net 45 days from Startup of EDI Equipment, or 120 days from shipment, whichever OCCUrs first. I FOR definition Includes: The Buyer bears all costs and risks of loss; of or damage to the goods from des1gnated FOB point. ED] PROPOSAL C01 8-13- Rev Otsego, MN Page ENVIRONMENTAL DYNAMICS INTERNATIONAL Shipment: ent: Drawings: 4-6 woe s folloWng receipt of a. Approved purchase order. b. EleQtronlc drawing files providod by the engineer of record as shown in contract plans in Civil and Mechanical sections of bidding documents it applicable) in one of the following formats: stp ; Aw . Drawings in a pdf format gill be accepted if no ether format is available. DraWngs should provid the plan and section view of the aeration basin including the construction of the basin wails and floor slope as well as any process piping or equipment that will be lnstalled within the aeration basin. Drawings should be accompanied by a second docurnent that shows the connection point location where Dl's process a1r piping e ulpment scope of supply is to beg1n. e+ All information required for complete submittals. Shipment: 8- 10 weeks fallowing notification of drawings and submittal approval. Note: ShIpr ent schedules are typical based on workload currently in-house and normal scheduling procedures. Actual shipping lead time will be confirmed at the time of order. Date: April gs 2013 Environmental Dynamics International Kevin Stark Inside Sales Engineer Attachments System and Diffuser Detall ED[ Reurose ntative: `ferry Schir 'essc, Inc 8217 Upland Circle Chanhassen, MN 55317 ED[ PROPOSAL C0128-13-2 — Rev A ENVIRONMENTAL DYNAMICS INTERNATIONAL Otsego, MN Page 4 Mmufacturers Limited Mechanical Warranty Statement The Nvarranty provided by Envlronmcntal Dynamics International hic., (EDI) is flinited to tine ternis set forth In this Warranty Statement. All other warfantios, oxprossed or implied are excluded and disclaimed in their entirety. EDI gives no Other warranty of any kind, nal-uro or description, expressed or implied, other than the limited warranties set forth her hi, and tills Nvarranty exclusion includes but is not line ted to warfan(ies of merchantability and wan titles of fitness for a particular purpose, both of which are excluded and disclaimed in their entirety, Equipinwit manufactured by EDI is warrant to be freo from defects in materials and workmanship (is opptioblo- (a) Standard twelvo (1 2) months from start tip of the equipment or eighteen (18) niontlis from shipm-vnt, whichover occurs first or; (b) Installed equipment requiring SubsiatifiRl Comptelion Certificate or Owner Acceptanco Certificate; thirteen ( 13 ) months from start -up of the equ ipment or eighteen (1 8) niont 11 S froln $11 i1mielit, 10 ichover occurs first, exclusive of certificate isseance. Defective part(s) sbatt be remedied by repair or replacement of the dofectivo p'art(s) only shipped freight included, FOB original shipping pohit2. Costs incurred by HDI (on or off Sito)3 sh,911 bo reimbursed by the Purchaser / 0Wjjer4 should EDI find a deficiency to not be due to equipment covered by this warranty. Tho following are exchided from this warranty, but shall not be considered to be limiting to other excluslons: cleaning and de -watering )r labor 5 , cqu ip in e i i t i na i iu fac t ured by o thers6, process and performance related to system design or biological process ) performance, decomposition, abnormal wear and/or damage caused by site conditiolis; chomical action, cheinicat precipitate, physical abrasion points or abrasive materials, water velocities greater than 2 ft/sec or as approved by ECD1' blunt trauma forces, faulty or stibstandard stnictural components, faiffly or inadequate niaijitenance/operafion'', equipment and services provided cinder a contract which is in a current state of default due to -non-payment. 3 EDI exclusively assumes no responsibility of expense or liability for (a) equipment repairs made or contracted by Purchaser or OwncrAvithout EDT's written Consent; (b) modifications to any of HDI's equipment made by others which are not approved in advanco and in writing by EDI; (c) failure of the Owner to promptly notify EDI of observed defects and or deficienoies which occur during the warrality period (d) Nvork by others9, (c) field modifications to Am for removal or rophicoment of EDT components END OF PROPOSAL 2 FOB original -shipping pofid,- Indicates the polar cif -hich risk of loss passes 3 Cost Hicim-ed hichide shall not be ffinited to; h-mv1, hoes lig, labor and materlak- that have been e.yetided to research and repair such qeflclenc)t 4 Responsiblepartyfor the equipment at file tittle of tile u-01-ranty clahn; generally dictated byproject stains, pre (Purchasei) orpost caret In -ojec I hand o iper. Access InglienInstalling1replacing1re Ili stal ' trr, ai iy p arls, 6 EDI noes not imwanty equipinent manufactured by others. "By others"inchrdes bra Is trot 11miled too- blover s, DOprobes, electrical panels, enght" njolors, my elechkal apparahis, etc. Such equipment bears of 11ru j-v,5pvcj[�,e Labor costs associated i0th ivar)-anly repairs of equIpment inanufactured by others shall be boat e b)p oMiers. Please refe) - lo yoz ii - EDI 10& Al nia n italfor ina in tenance and operall on insto tefians. Default due to non-payment sholl not Include EDI appro ved holdbacks. -9 111w* by Others shall inch(de but not be linfited to; inaterials fiiridshed or taborpm Wded by 4any minvelor, subconh-actor or inoterlal s upp Iler not ivorAqng direelly for or it i (nder EDL ENVIRONMENTAL DYNAMICS INTERNATIONAL 5601 Paris Rd, Columbia, MO 65202 Standard Conditions of Proposal and Sale of Equipment and Installation Services ED[ Proposal 00128-13-2 - Rev A Etivironmental Dynamics InternationaL, here1nafter also referred to as EDI or the Company, offers this proposal to supply oquipment. Any resulting contract between EDI and the Purchaser shall be subject to the follovring terms and condillons, Servic" - Environmental Dynamics international Is a manufacturer of water and wastewater t(ealment eqvlpment and systenis. EDI Is not a consulting e n9lnearing firm and does not provide Professional Engineering services as part of our contracts to supply eqUipmen t ha rdywa re. Process a n (I P erfo r ni ance Wa rra ni las - Contracts for purchase of equipment accepted by EDI exclude any process or performance wa rra ntlo s related to system design. Additlonally, no biological or pro -cess performance warranVes are expressed or may be implied by the parUcipation of EDI in this contract, Any biological or process performance vmrranty for systems supplied by the Company shall be speciffcliy and independenNy detailed and signed as a separate contract by an authorized Officer of the Company, G ovornIng Levi -Any proposal for equipment supply made by the Company as well as any contract behyeen the Company and the Pumbaser are deemed to be executed at Columbia, Mlssouri, USA, subject (o correctlon for typNraph1cal or mathematic -al errors and governed by Missouri law. Credlf Approval - Performance of any contract by the Company Is contingent upon Purchaser credit approval. Credit may be waived in lieu of a project materials payment bond. A materials payment bond supplied to ilia project Ovmer or Engineer by the Purchaser is.ac ceptable. EDI reserves the right to hold shipment on delinquent accounts. Force M ale ure - Strikes, fires, accidents, War, red uGed supply of (uef or raw materials or excessive oust thereof, or other res traInts affecting sh(prn ents or curtailments In manufacturing or due to defays unavoldable by or beyond the control of the Company shall be govern by force majeure. Costs and Danincle - The Company shall In no Instance be liable for Indirect or special costs, consequenUal or liquidated dernages or any penalties outside the %,Milan contract. Suclal Hazards - Unusual condWons such as rock, poor foundation solls, oxcoss water or other unusual s1to or safety rondiqons are not covered by this standard Company proposal. Extra costs emanating trona unusual situ or safety condillons shall bo negotiated vith written agreements developed at or subsequent to th a time of discovery anti prior to further wo rk being comple led by EDL Shipment & Delivery TIM - Statements as to expected date of hardwaro shipment represent the Companys h'ast judgment, but shipment on those dates Is not guaranteed, The Purchaser hereby waives all claims to daraages caused by delay In shilpment or delivery of Ilwclwaro. Insuranco - The Purchaser agrees to provide and maintain for tha benefit of the Company adequate Insurance for the equipment heroln specified from the time of Its sh1prinent from EDI until paid for In full and the Purchaser agrees to assume all logs over and above that compensated for by such Insurance, The Purchaser shall procure and pay for all puHlo, NabIlity Insurance during the Installation of any EDI provided equipment, Title of 0 wn ersIAR - All equ 1pment and/or so rvices ordered by Purchaser from the Company shall re main the property of the Company u ntif fully paid for in cash. Ca n ce I I atl on or 8 u s v a ns Ion - of any order vili I ba accepted only upon terms that vAll Indemnify the Company against loss. Additionally, the Com pa ny may Invoice the Purchaser 15% of the agreed upon contract price. Back.. C h arg as — must be approved by ED 1. In vn! ling, before their W11 be accepted. EDI %tJ 11 make avefy effort to offer prompt consIderallon and approval of legillniate back charges. InvoloLM - Tho Company may ma partial billings of tho contract pdco as various components of the equipment aro shipped. When equipment Is manufactured by EDI, but sh1proant It, delayed by the Customer, EDI shall be pall In accordance vAth contract terms as though delivery had been accomplished, Storafle tar os - Whon EDI manufactures equipment to ineet schodulos established by (ho Purchaser, the Company ioservas the right to Invoice tho Purchaser for storago charges on items hold at EDI at the rate of 1 111/6 per month of the sale price. Pefault for Non-PaymenA — Contracts in default of the payment terros may bo subject to any or all of tho follovAng: should tho Purchawr foil to pay tho purchase plGo as agreed the Company may, a) retain as liquidated damages all partial payments made on account thereof to date without prejudice to any other claim for damages suffered by the Company for any cause, b) be allowed site access to recover hardvmre, c) obtaln other balances duo from arbitration or d) an Inte re -sl charge on outstanding Invoices billed at Ih a rate of i. °, per month, 18% per- a n nurn. Morney Fees ' — For any suits brought or rete(nage pall to attorneys to collect -any part of the purchase price or to enforce any provision haTe.1n, 1he Porch aser W11 pay E D I attorney fees and related expenses including an adm 1 n Istrative fee equal to tho attorney fees. BankruptcV, Recolvershlo pir Insolvency Procced1tic s - Should bankruptcy, receivership or Insolvency proceedings be Instituted by or against. the Purchaser or should the Purchaser make an assignment in favor of creditors, the unpaid balance of the purchase price shall immediateiy become due and payable at the option of the. Company. NoW,thstanOng other arrangements to the contrary, the Company s141 be free to enter premises where equipment for Welch the Company has not been fully paid may be located and remove said equipment as Its property vAthout prejudice io any further Balms on amounts of damage wNch 1he Company may suffer from any cause. Proinissoty Mote - Acceptance of a promIssoty note or other evidence of debt for any part of prig shall not be constcuedes payment. Patent.-InfrInflonion - Any Interferenco Will Purchasers use of equIpment supplied by tho Company on the grounds that such use constitutes all infringement of any patent shall Impose no 11abillty on the Company. Spare or Potontial Warran(y Parts — If spare parts or potential warranty parts are required lnirned)ately, ED) may sh1p those parts subject to the following 11mitaflons: a) Purchaser agrees to pay for additional components or spare components Including speclal freight charges, Reimbursement vAll be Issued as a credit to the Puichasers account tit the event potential warranty parls are vedfledas actual warranty defects and b) Contract price adjustments or price adjustments on additlonal or spard components aro subject to ED[ approval and original contact terms. Defective, damaged, Improper material or shortag - Claims viti not ba allowed unless witten notIce specifying the nature and extent of the defect, damage or shortage Is recolved In tho Company's office within fourteen (1 4) days from unloading — unless the defect, damage or tihula_ge is of such a naturo that 10 would not ho reasonably dl covered until the material is assemblad andlar erected as a finished product, that the favrfeen (14) days vAll begin front tho date of commenoement, of assernbly and/or erection, MochanlcalWarran.t per Maniffacturers 1-Initted Mochanloal WarrantySlateniont Ar opted by Buyer Accepted by Buyer Date Date