PEABODY GFG

N53 W24900 South Corporate Circle • Sussex WI 53089 • phone 262-372-4515 • fax 262-372-4815
E-mail: Scot.Foster@gfg-peabody.com • www.gfg-peabody.com

PROPOSAL #4034 A

MODEL HC 700 (F) 2SCA 1400 EA

ELECTROSTATIC BLADE COATER

For
Hadeed STEEL Rewind Line

March 27, 2019

Scot Foster
Sales Manager
GFG-Peabody
GFG/Peabody Hadeed steel
Proposal # 4034 A
PEABODY Pakistan

TABLE OF CONTENTS

I. SCOPE OF WORK

II. GENERAL SYSTEM DESCRIPTION

III. OPERATION

IV. SCOPE OF SUPPLY

V. SPECIFICATIONS

1.0 LINE AND PROCESS SPECIFICATIONS

2.0 COATING MATERIAL SPECIFICATIONS
3.0 EQUIPMENT SPECIFICATIONS
3.1 “C” Frame Spray Enclosure
3.2 Blade Applicators
3.3 Metering Pump Assembly
3.4 Coating Weight Control System
3.5 Safety Interlock
3.6 High Voltage Power Supply
3.7 Main Control Cabinet (MCC)
3.8 Operator Control Panel
3.9 Blade Heating
3.10 Material Reclaim Pump
3.11 Oil Header Tank Stand Assembly
3.12 Miscellaneous

4.0 OPTIONS
4.1 Installation and Commissioning
5.0 ENGINEERING AND TECHNICAL SERVICES
5.1 Drawings
5.2 Manuals
6.0 RECOMMENDED SPARE PARTS

VI. PRICE

1.0 PRICE SUMMARY

2.0 TERMS OF PAYMENT
3.0 DELIVERY

VII. SERVICES TO BE PROVIDED BY THE BUYER

VIII. POWER/UTILITY REQUIREMENTS
IX. INTERFACE COMMUNICATION INTERLINK
X. TERMS AND CONDITIONS

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I. SCOPE OF WORK

GFG-Peabody shall design, build and supply any equipment as outlined in

SECTION IV of this proposal (unless otherwise specified). The Buyer shall furnish
any required support structure, foundation design, anchor bolts, curb angles or
fixed floor plates unless specifically noted. The Buyer must specify any space
limitations due to other equipment in the processing line being supplied by the
Buyer.

II. GENERAL SYSTEM DESCRIPTION

The Peabody Electrostatic Oiler is designed to apply a uniform coating of

electrically resistive fluid, such as oil to a steel or aluminum strip, for the purpose
of corrosion resistance or drawing lubrication. The Electrostatic Oiler specified in
this proposal is used to apply a precise and uniform coating onto the top, bottom,
or both sides of a moving horizontal steel strip. The equipment is capable of
applying a variable amount of coating.

III. OPERATION

The system design utilizes only electrostatic forces to propel the coating to the
strip, no air or fluid pressures that cause overspray, are used in the system. The
electrostatic charge is applied at the edge of the blade causing the fluid to break
up into small streams. The fluid cannot absorb the electrostatic charge and
immediately begins to break up and atomize into small particles.

The droplets are charged and since like charges repel and unlike charges attract,
the droplets form a uniformly dispersed mist of coating (through repulsion) which
is uniformly drawn to the potential difference of the grounded strip (through
attraction).

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Proposal # 4034 A
PEABODY Pakistan

IV. SCOPE OF SUPPLY

(1) “C” frame spray enclosure - Retractable

(2) “SCA” aluminum blade electrostatic applicators
(1) Oil purge for blades
(1) Catchment tray for overhead blade
(1) Set of non-conductive tables for protection and strip feeding
(2) Solid state power supplies
(1) Safety interlock for enclosure door
(1) Internal lighting system for spray enclosure
(1) Blade heating assembly

(1) Main Control Cabinet (MCC)

(1) Siemens S7300 PLC with Profibus communication and DP/DP
coupler
(1) All I/O will be from WAGO Modular I/O.
(2) Siemens digital servo drives (controlling brushless servo motors
with closed loop feedback)

(1) Operator control station (wall mounted)

(1) Siemens KTP1200 HMI
(1) E-Stop (push button)

(1) Oil header tank assembly

(2) 500 liter mild steel oil header tank
(1) Tank filter
(1) Automatic oil change system
(2) Duplex basket strainers
(2) Metering pump assemblies
(2) Digital servo motors (for metering pumps)
(1) Sump pump assembly with selected valve control

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PEABODY Pakistan

V. SPECIFICATIONS

1.0 LINE AND PROCESS SPECIFICATIONS

Line Name: Rewind Line

Location: Pakistan

Product: Steel

Strip Speed: Maximum 200MPM

Minimum 30MPM

Strip Width: Maximum 1300 mm

Minimum 850 mm

Strip Thickness: Maximum 2.5 mm

Minimum 0.15 mm

Voltage: 380 Volts 3 Phase 50 Hz (Main – by Customer)

110 Volts 1 Phase 50 Hz (Control – by GFG)
24 Volts dc. (PLC I/O – by GFG)

Units on HMI: Metric

Communication: Profibus

HMI Language: English

Pass Line: Horizontal

Strip Direction: TBD

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2.0 COATING MATERIAL SPECIFICATION

Coated Surface: Top / Bottom or Both Sides

Coating Material: Anti rust oil

Film Weight: 300 –1500 mg/m2/side

Oil coating accuracy: +/- 10 % from 30 to 200 MPM

When the speed drops below 30 MPM there is a tendency for the coating
weight to become slightly heavier than the set point.

Note:
A One-Liter sample of each coating material will have to be submitted to
GFG for testing and approval.

The system that has been proposed is for use with non-conductive
(petroleum based) oils, organic lubricants, etc., having a maximum viscosity
of 80 Centipoise at operating temperature. If the viscosity exceeds this
figure and the coating is temperature/viscosity sensitive, heating
components can be added to the system as optional equipment.

3.0 EQUIPMENT SPECIFICATION

The Model HC 700 (F) 2SCA 1400 EA Electrostatic Oiler for the application
of non-conductive coatings onto steel strip will contain the following
components:

3.1 Spray Enclosure (C-Frame)

The electrostatic enclosure will be fabricated from Steel Plate. The

floor of the enclosure is sloped to an outlet to capture residual oil into
a sump. From the sump the returned oil may either be sent back to
tank after filtration, or may be sent to waste. The enclosure is
equipped with full size maintenance door(s) which have a
polycarbonate window. The door(s) are mechanically and
electrically interlocked to prevent access while the high voltage is on.
A red indicator light is mounted to the top of the main spray enclosure
to indicate when either power supply unit is in use.

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One Pneumatic Catchment Trough is provided to capture any

residual oil from the Overhead Blade Applicator when the line is
stopped. The Catchment Trough will automatically retract when the
line starts.

Four lifting holes are provided on the enclosure for ease of

installation. An interior light is fitted to give complete illumination to
both top and bottom of the oiler cabin.

The oiler is designed to move to an offline position when it is not

used. The operator may use a travel motor to smoothly retract the
oiler offline while the line has tension. The cable chain will be
supplied by GFG-Peabody.

The travel rails will be supplied by GFG.

3.2 “SCA” Blade Applicators

One "SCA" aluminum blade applicator above and one "SCA"

aluminum blade applicator below pass line will be provided. The
Blade Applicator will be mounted on a Roller Telescopic Carrier
Assembly. The assembly provides ease of removal (to drive side)
for maintenance, with all fluid and high voltage connections having
quick-disconnects for fast and simple servicing.

The Overhead Blade Applicator is protected from strip cobbles and

looping by the catchment tray as well as an overhead pair of
polypropylene tables. The Underside is protected by two
polypropylene tables that also support the strip during threading and
exiting the enclosure, as well as when there is a loss of tension.

3.3 Precision Metering Pump(s)

One precision metering pump(s) will be supplied. The pump(s) are

driven by a servomotor linked to strip speed via a line speed
reference signal supplied by Buyer. The speed of the pump(s) is
monitored by the system controller and is adjusted according to this
strip speed signal and the film weight setting.

3.4 Coating Weight Control System

A servo gearmotor drive unit is provided to control the metering pump

assembly. An algorithm in the PLC provides a reference signal to
the servo drive to insure that the correct amount of fluid is supplied

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to the blade. The algorithm utilizes the line speed, blade width, and
coating weight selected to develop the reference to the servo drive.

3.5 Safety Interlock

Each door of the spray enclosure is provided with a mechanical

interlock. In order to open the door of the enclosure a key must be
removed from the operator station. Removing this key disables the
high voltage service.

3.6 High Voltage Power Supply

Two solid-state high voltage power supplies are provided. The

power supply is a solid-state unit with variable output to 130 KV. The
unit is fully enclosed with a Plexiglas front and mounted directly to
the spray enclosure.

The PLC software is designed to monitor the oil delivery rate of the
coating weight control system, automatically adjust the voltage level
to the optimum condition, relative of line speed and film weight
selected.

An over-current detection circuit is incorporated in the electrical

control system to turn off the power supply in the event of a rise in
current in excess of a preset limit.

Within the oiler automation controller is a function called the Dynamic

Voltage Control (DVC). The DVC function increases the amount of
voltage applied to the spray blade as the volume of oil emitted from
the spray blade increases. The increasing high voltage is directly
proportional to the oil output. The atomization pattern is a result of
the relation between the quantities of oil to the supply of voltage per
charged particle. As the volume of oil output is increased, the level
of voltage is increased to maintain the same spray pattern of
atomization.

The DVC is a patented feature. GFG Corporation owns the

patent.

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3.7 Main Control Cabinet (MCC)

A Nema 12 (IP55) painted steel cabinet is supplied housing the

Siemens S7300 PLC, servo motor controls, main circuit breaker and
branch circuit breakers. The enclosure is pre-wired internally to
terminal strips. The Buyer, utilizing separate field wiring ducts can
make external connections to these terminals. All I/O will be from
WAGO Modular I/O.

3.8 Operators Control Panel

All operator controls are mounted in the face of the operator control
panel. This unit contains an industrial touch-panel HMI (KTP 1200)
with membrane keypad, safety key switches and E-Stop required for
automatic, manual and maintenance operation of the equipment. All
push buttons are of oil-tight, industrial construction.

3.9 Blade Heating Assembly

This is a specially designed package installed to heat the applicator

blades. It is a simple, self-contained, closed loop system consisting
of the following:

- Small 8-liter oil tank with oil level switch.

- Oil heater and circulation pump.

The applicator blades have internally drilled manifolds that circulate

the heat transfer oil in a "closed loop" system. The blades are
connected to the oil-heating unit via temperature rated tubing.

OPERATION

The operation of the Blade Heating system is controlled from the PLC
and is started by a pushbutton on the HMI. The PLC controls the
temperature of the blade oil and the setting is adjustable at the HMI.
The system includes overtemp thermostat that guards against a
failure or loss of control to the heating element and an oil level switch
that turns off heating and pumping in the event of low oil. The heat
transfer fluid is heated and pumped to the internal manifold blade
applicators. The heated fluid distributes a uniform temperature
across the face of the applicator blades allowing the Electrostatic
Oiler to provide a fine uniform layer of oil to the passing strip.

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PEABODY Pakistan

3.10 Material Reclaim Pump

A gear pump driven by an AC motor is automatically cycled to

circulate excess coating material captured in the main spray
enclosure sump area. The sump oil is then filtered through a double
filter and returned to the oil tank, or may be sent to waste.

3.11 Oil Header Tank Stand Assembly

One Oil Tank Assembly with two 300 liter capacity carbon steel
header tanks will be supplied. The tank is equipped with sight glass
level indication. Float switches signaling empty, low, full and
overflow will provide a signal for the transfer pump when required
(transfer pump by others).

Non-contact type immersion heaters will apply heating, which does

not require emptying the tanks for repair or replacement. Heaters
are controlled via resistive temperature detectors used in
collaboration with the PLC to maintain the coating material at suitable
temperature and viscosity levels to assure optimum coating
condition.

Tank strainers are used to filter the material supplied to the tanks.
Dual basket strainers are used to filter the material on the inlet side
of the metering pumps as well as the reclaimed material.

The oil tank will be mounted on a common base with the metering
pumps and filters. All electrical connections will be pre-wired to the
main control cabinet. All internal piping will be pre-piped. Cross site
piping by others.

The Buyer is responsible for the bulk supply system to the tank.

3.12 Miscellaneous

A. All high voltage cable, flexible fluid hose (internal to the spray
enclosure and tank stand) and all fittings will be provided.

B. All internal wires are marked with wire numbers as shown on

the electrical schematics provided.

C. All motors shall be TENV or TEFC.

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PEABODY Pakistan

D. The Seller will assemble and test the equipment (without

moving strip) at the site of manufacture prior to shipment.
The Buyer shall be notified seven (7) days prior to testing
and given access to witness these tests.

E. All equipment is designed and built to ANSI Stds.

F. Equipment to be painted with 2 part epoxy paint.

4.0 OPTIONS NOT INCLUDED

4.1 Installation and Commissioning Supervision

All equipment shall be installed by and at the expense of the Buyer.

Upon receipt of advance notice by the Buyer that the installation has
been completed, and the equipment is ready to operate, the services
of the Seller's Field Service personnel can be provided for the
purposes of:

A. Inspection of the installation

B. Start-up and commissioning of the equipment.

C. Instruction of Buyer's personnel in the proper operation and

maintenance of the equipment.

Additional days will be paid for by the Buyer at the rate of $ 1250 per
calendar day plus all travel, meals, hotel and car expenses at actual
cost, commencing with the day upon which the personnel leave the
Seller's headquarters and ending with the day upon which they return
thereto. All time during this period shall be charged even though the
Buyer may not actually utilize the Seller's services.

The normal work schedule for Field Service Personnel is 40 hours

per week, consisting of five eight-hour days, Monday through Friday.

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5.0 ENGINEERING AND TECHNICAL SERVICES

5.1 Drawings

All drawings furnished with this proposal indicate only the general
style, arrangement and approximate dimensions of the equipment
offered. These drawings do not constitute a warranty that the
equipment or their installation will conform exactly to such drawings.
As soon after commencement of the design as possible, the Seller
shall furnish the Buyer with one set of drawings for the Buyer's
reference, containing all information necessary to determine
equipment location. Fabrication of equipment shall not begin prior to
written acknowledgment by the Buyer's appointed Engineer.

Upon completion of construction and/or shop assembly, one set of

design arrangement and sub-assembly drawings shall be furnished
with corrections noted. The design of this equipment will incorporate
Seller's engineering standards wherever applicable.

All specifications, other than those outlined by the Buyer at the time
of quoting, will be according to the Seller's practice. Any subsequent
changes in design, manufacture or assembly by the Buyer shall be
at the Buyer's expense. Such changes directed by the Buyer will be
initiated only after receipt of a written change order.

The Buyer agrees for itself and its legal successor not to give, loan,
exhibit or sell to any party or interest outside its own company, any
drawing, photograph, specification or technical data furnished by the
Seller or reproductions of them. The Buyer further agrees not to use
them in any way except in connection with the installation covered
by this proposal and for the purposes of making spare parts and
repairs in its own shops. The title to the designs shall be the
exclusive property of the Seller and the Seller therein shall retain all
other rights.

5.2 Manuals

Two sets of instruction manuals in English language describing the

installation, operation and maintenance of the equipment will be
provided. Additional manuals will include related product literature
in English Language. The bill of material will be in English.

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Proposal # 4034 A
PEABODY Pakistan

6.0 RECOMMENDED SPARE PARTS

The following is a list of recommended spare parts, which should be stocked by the Buyer
for the equipment proposed:

BLADE OILER
PRICE
PART LIST PRICE DISCOUNT
OFFERED
SUGGESTED MAINTENANCE SPARES
HIGH VOLTAGE CABLE ASSEMBLY $785.00 $628.00 20.00%
METERING PUMP 1.00 CC/REV $2,270.00 $1,820.00 20.00%
METERING PUMP SERVO DRIVE AMPLIFIER CARD
$3,945.00 $3,156.00 20.00%
(DIGITAL)
HIGH VOLTAGE POWER SUPPLY $7,750.00 $6,200.00 20.00%
BLADE APPLICATOR $10,500.00 $10,500.00 0.00%
(2) BLADE SUPPORTS $170.00 $136.00 20.00%
(2) BLADE EXTENSIONS $430.00 $344.00 20.00%
TUBING - 3/8" PTFE - 12' $190.00 $152.00 20.00%
WAGO I/O ASSEMBLY $1,925.00 $1,540.00 20.00%
TOTAL $27,965.00 $24,476.00 12.40%

The above prices are Ex-works, Sussex, WI – USA

***Please note that the discount on spare parts shown is offered only
if purchased together with the oiler which is being quoted. If spare
parts are purchased at a later date the list price applies.***

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Proposal # 4034 A
PEABODY Pakistan

VI. PRICE

1.0 PRICE SUMMARY

To supply the Electrostatic Oiler, as described, excluding options,

installation and commissioning, for the sum of:

Electrostatic Oiler $230,000.00

OPTIONS NOT INCLUDED

Recommended Spares $24,216.00

Installation and Commissioning Supervision & Training

(4 days travel and 5 days on site estimate)
Travel and living expense (per trip) $15,000.00
Additional days charged at prevailing rates

All prices in this proposal FOB EAST COAT USA Main Seaport.

All prices above are considered firm and valid for 90 days.

2.0 TERMS OF PAYMENT

15% down payment with purchase order

25% upon submittal of approval drawings
55% upon notification equipment is ready for shipment
5% upon start up (not to exceed 150 days from shipment)

All invoices are payable, Net 30 Days from date of invoice.

In addition to any service charges, the Buyer shall be liable for any
expenses incurred by GFG in the collection from the Buyer of past due
amounts under the contract, including, but not limited to, collection agency
fees, attorneys' fees and court costs.

All shipments are made freight collect, unless otherwise specified. In the
case of a prepaid shipment, the delivery invoice shall be due and payable
upon receipt.
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PEABODY Pakistan

3.0 DELIVERY

The approximate date of delivery is as follows:

40 weeks from receipt of order, down payment, & site layout.

VII. SERVICES TO BE PROVIDED BY THE BUYER

A. Preparations of the site to accept the equipment.

B. All installation, wiring, builder's work, foundation, etc.

C. Bulk Supply and oil header tanks for coating material.

D. Isolated line speed reference signal, 0 to 10 VDC (0/4-20 mADC signal input
by request)

E. Isolated signal representative of Line Start/Stop Signal

F. All cross site electrical wiring in accordance with Seller's drawings and
diagrams.

G. All piping between oil tanks and metering pump stand assembly. (If ambient
temperature conditions are sufficiently low, heat tracing for this piping may
be required to maintain viscosity range of bulk supply).

H. Process waste line.

I. Main power supply (3 Phase).

J. Air supply, clean & dry, 60 PSI (5 Bar) @ 5CFM (0.2 CMM)

K. Maintenance of the strip pass line between +/-1 inch.

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PEABODY Pakistan

VIII. POWER/UTILITY REQUIREMENTS

1) MOTOR LIST

Speed Power Feed Const.

Qty Description R.P.M. kW Voltage Details

1 Blade Heating Pump 1725 0.25 460/380v 3ph T.E.F.C.

(AC Motor) 1425 kW 60/50hz
2 Metering Pump 0 to 3000 0.82 460/380v 3ph T.E.N.V.
(Servo Motor) kW 60/50hz to
servo
controller
1 Sump Pump 1725 0.25 460/380v 3ph T.E.F.C.
(AC Motor) 1425 kW 60/50hz
1 On/Off Line 1660 0.2 kW 460/380v 3ph T.E.F.C.
Travel Motor 1390 0.13 kW 60/50hz

2) PUMP LIST

Speed Output
Qty Description R.P.M. capacity

1 Blade Heating Pump 1725 1 GPM

(AC Motor) 1425 @1725

2 Metering Pump 0 to 3000 1 cc/rev.

(Servo Motor)
1 Sump Pump 1725 3 GPM
(AC Motor) 1425 @1725

3) Total Power Requirements is less than 25 kW

4) Total Air Capacity is 5 Bar @ 5CFM (0.2 CMM)
5) Approximate Shipping Weights
Oiler - Main Spray Enclosure 6,500 # 2,950 Kg
Tank stand Platform & Tank 2,200 # 1,000 Kg
Main Electrical Encl. 1,650 # 750 Kg
Operator Control Pedestal 50 # 20 Kg

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IX. DATA COMMUNICATIONS INTERFACE

Network Remote Communications

Siemens S7-315 – Profibus Communications via DP/DP Coupler
OR
Allen-Bradley CompactLogix using Consumer-Producer Tags over EtherNet I/P

Appropriate discrete signals and analog process data will be included with oiler design to
allow the Line PLC to establish supervisory control and monitoring of the oiler and its
process. The customer should plan to reserve a minimum of 32 bytes of Input and Output
Data to be exchanged as I/O between the two PLC systems.

2 words (4 bytes) of input and output data are reserved for discrete signals.

14 words (28 bytes) of input and output data will be formatted as a 16 bit Integer Data for
process data.

A separate Preliminary Data Interface List (excel worksheet) will typically be provided 2
weeks prior to the scheduled ship date. A Final Data Interface list will typically be available
2 days prior to the scheduled shipment date. Final Interface List is subject to changes
based on final design and testing.

Typical Hardwired Communications

These signals are exchanged through actual physical hardwired I/O points between the
two PLCs. This is accomplished through electrically isolated I/O cards. In a typical design
these signals are as follows:

Typical Hardwire Discrete Inputs

1. Line Run
2. Line Tension (If Needed)

Typical Hardwired Discrete Outputs

1. Oiler Ready For Line Run
2. Oiler Faulted
3. Oiler Warning Present
4. Coating In Progress
5. Oiler Online (If Needed)
6. Oiler Offline (If Needed)

Typical Analog Inputs

1. 0-10v Line Speed Reference (optional: 0/4 – 20 mA)

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The hardwired interface signals will be illustrated on the electrical schematics.

Hardwired interface signal configurations are finalized during customer approval
drawing review.

X. TERMS AND CONDITIONS

1. PARTIES. New GenCoat Inc. d/b/a GFG will be referred to as "Seller," and the person or company purchasing as indicated in the document to which this is
attached and an integral part of will be referred to as "Buyer." All materials, goods or work described on this document, regardless of type, will be referred to
as "Products."

2. QUOTATIONS. Quotations or proforma invoices furnished by Seller are not intended as and shall not be construed as constituting an offer to Buyer. Any
quotation or pro forma invoice of Seller is subject to, and shall not become binding upon Seller until (i) actual receipt by Seller of Buyer's written order based on
all the terms and conditions stated herein, without qualification, and (ii) Seller's written acceptance of such order at its office in Sussex, Wisconsin.

3. PRICE.
a. Seller's prices specified on the face hereof are subject to adjustment at Seller's option to reflect any increase in the costs of Seller resulting from state, federal
or local legislation, or any change in the rate, charge or classification of any carrier of the Products sold hereunder.
b. Unless otherwise stated, all prices are F.O.B. Seller’s facility from which shipment is made and all shipments shall be made freight collect to Buyer. Prices
include the cost of Seller's usual factory tests, inspection and packing in accordance with Seller's domestic standards. All other shipping expenses are for
Buyer’s account including export packing when required.

4. PAYMENT.
a. All payments shall be made in U.S. dollars, available in the United States. Payment obligations shall be discharged only when the full amount invoiced
by Seller has been received by Seller or credited to Seller's bank account. Invoices unpaid and past due will be subject to a service charge on the unpaid
balance at the maximum allowable interest rate under applicable law.
b. Unless otherwise stated on the face thereof, payment will be net cash 30 days from date of invoice, or, at Seller's option, payment shall be made through
a confirmed irrevocable letter of credit to be established within 10 days after Seller accepts Buyer's order in favor of Seller by Buyer at Buyer's expense, including
confirmation charges. The letter of credit shall be confirmed by an accredited bank acceptable to Seller organized under the laws of, and located in, the United
States. The letter of credit, which shall be in form and substance acceptable to Seller, shall be maintained in sufficient amounts and for the period necessary
to meet all payment obligations to Seller. The letter of credit shall permit partial deliveries and shall provide for pro rata payments upon presentation of Seller's
invoice and certificate of shipment.

5. TAXES.
a. Unless otherwise specified on the face hereof, Seller's prices do not include any U.S.A. taxes, duties or other charges levied on or incurred by Seller in
connection with the Products or this transaction. Such taxes, duties or charges will be added to invoice prices in those instances in which Seller is required to
collect them from Buyer; provided, however, that if Seller does not collect any such taxes, duties, or other charges and is later asked or required to pay such
amounts to any authority, Buyer will make such payment to Seller or, if requested by Seller, directly to such authority.
b. Any taxes, duties, fees, charges or assessments of any nature levied in connection with the Products or this transaction by any governmental authority
outside the U.S.A. shall be Buyer's responsibility and shall be paid directly by Buyer. If Seller is required by law or otherwise to pay any such amounts either in
the first instance or because Buyer has failed to pay the same, Seller shall be reimbursed by Buyer for such amounts paid by Seller.

6. DELIVERY DATES; TITLE AND RISK; SHIPMENT.

a. Unless otherwise stated on the face hereof, any and all shipping and delivery dates are approximate, and Seller shall not be responsible for any damages
of any kind resulting from any delay in delivery. Unless otherwise agreed by Seller, the Products will be shipped F.O.B. Seller's facility from which shipment is
made. Regardless of the manner of shipment, unless otherwise agreed by Seller, title to the Products and risk of loss or damage thereto shall pass to Buyer
upon tender to the carrier at the facility of Seller. Unless otherwise stated herein, Seller may exercise its judgment in choosing the carrier and means of delivery.
b. Unless Buyer specifically indicates otherwise, Seller shall have the right to ship in advance of Buyer's requested shipment dates, and partial shipments
shall be permitted. Upon each partial shipment, Seller shall have the right to invoice immediately an appropriate portion of the total price. No deferment of
shipment at Buyer's request beyond the respective dates indicated will be made except on terms that will indemnify Seller against all loss and additional expense,
including, but not limited to demurrage, handling, storage, insurance and interest charges.

7. GOVERNMENTAL AUTHORIZATIONS.
a. Buyer shall be responsible for, and bear the expenses of, the timely obtaining of any required authorization for the shipment or delivery of the Products or
performance of other services, such as import licenses or exchange permits, consular and custom declarations or any other governmental authorization. If the
Products are to be exported, Seller's obligations are subject to Seller's ability to obtain export licenses and other necessary papers within a reasonable period;
however, Buyer shall bear the expenses of obtaining such authorizations.
b. If any required governmental authorization is denied, revoked, restricted, or not renewed, Buyer shall pay Seller in full for all completed Products, raw
materials which cannot be returned for credit to Seller's suppliers, work in process, and any services performed by Seller in connection with the Products prior
to receipt of notice by Seller that such authorization is denied, revoked, restricted, or not renewed.
c. All shipments of the Products shall at all times be subject to the export control laws and regulations of the United States government as in effect from time
to time. Buyer shall not make any disposition, by way of trans-shipment, re-export, diversion, disclosure or otherwise, of the Products or any goods or items
which incorporate the Products or any information or technology disclosed in connection with this Agreement, except as such laws and regulations may expressly
permit.

8. CONTINGENCIES. Neither Seller nor any authorized representative of Seller shall be liable for any default in performance if caused, directly or indirectly, by
acts of God; war, force or arms; fire; the elements; riot; labor disputes; controversies; sabotage; civil commotion; accidents; any governmental action, prohibition
or regulation; delay in transportation facilities; shortage or breakdown of or inability to obtain or non-arrival of any labor, material or equipment used in the
manufacture of the Products; failure of any party to perform any contract with Seller relative to the production of the Products; or from any cause whatsoever
beyond Seller's control, whether or not such cause be similar or dissimilar to those enumerated. Seller shall notify Buyer of the happening of any such
contingency and of the contemplated effect thereof on the manufacture and delivery of the Products.

9. WARRANTY.
a. Unless otherwise expressly specified on the face hereof and except as set forth in Section 13(a) hereof, Seller warrants the Products manufactured by it and
sold by Seller to Buyer to be free from defects in material and workmanship, under normal and proper use in accordance with instructions of Seller, for a period
of one year from the date of delivery to Buyer. Seller's liability under such warranty or in connection with any other claim relating to the Products shall be limited
to the repair, or at Seller's option, the replacement or refund of the purchase price, of any Products or parts or components thereof which are returned to Seller

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freight collect and which are defective in material or workmanship. Products or parts or components thereof which are repaired or replaced by Seller will be
returned to Buyer freight prepaid. Shipment of such Products or parts or components shall be made in the most economical way as determined by Seller,
except that air freight or other more expensive ways of shipping may be used when authorized by Seller in its sole discretion. This warranty does not apply to
any goods, parts or components not manufactured by Seller. All warranties provided hereunder shall be void and of no effect in the event Buyer makes
unauthorized alterations to the Product. Seller is not responsible for damage to the Product or related equipment due to circumstances beyond Seller's control.
b. Any and all warranties made by Seller on any Product, or component thereof, shall be effective only if, and for so long as, the Buyer shall comply with all payment
obligations hereunder. Failure to meet payment obligations on a Product shall void all warranties and shall not extend the period of time for which such Product
is warranted when payment is made.

EXCEPT AS EXPRESSLY STATED ABOVE, SELLER MAKES NO WARRANTY, EXPRESS OR IMPLIED, WHETHER OF MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE OR USE OR OTHERWISE, ON THE PRODUCTS, OR ON ANY PARTS OR LABOR FURNISHED DURING
THE SALE, DELIVERY OR SERVICING OF THE PRODUCTS.

10. CLAIMS; COMMENCEMENT OF ACTION.

a. Buyer shall promptly inspect all Products upon delivery. No claims for shortages or failure to conform to agreed specifications will be allowed unless such
shortage or nonconformity is reported to Seller within 14 days after the commencement of the warranty period as provided for in Section 9 hereof .
b. Any action, legal or other, based upon breach of this contract or upon any other claim arising out of this sale (other than an action by Seller for any amount
due to Seller by Buyer) must be commenced within one year from the date of the tender of delivery by Seller. Any lawsuit or other action brought by Buyer or
complaint lodged by Buyer arising out of, in connection with, or as the result of, the sale of the Products shall not permit Buyer to refuse or delay the acceptance
of the Products or to deduct any amount from the purchase price thereof as specified in Seller's invoice. Buyer shall not use the Products while any such
lawsuit, other action or complaint is pending, unless such use is expressly authorized in writing by Seller or its designated agent.

11. LIMITATION OF LIABILITY

IN NO EVENT SHALL SELLER BE LIABLE TO BUYER FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF,
OR AS THE RESULT OF, THE SALE, DELIVERY, NON-DELIVERY, SERVICING, USE OR LOSS OF USE OF THE PRODUCTS OR ANY PART THEREOF,
OR FOR ANY CHARGES OR EXPENSES OF ANY NATURE INCURRED WITHOUT SELLER'S WRITTEN CONSENT REGARDLESS OF WHETHER SUCH
CLAIM IS BASED UPON ALLEGATIONS OF BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY OR ANY OTHER
LEGAL THEORY. IN NO EVENT SHALL SELLER'S LIABILITY UNDER ANY CLAIM MADE BY BUYER EXCEED THE PURCHASE PRICE OF THE
PRODUCTS IN RESPECT OF WHICH DAMAGES ARE CLAIMED.

12. BUYER'S OBLIGATION; RIGHTS OF SELLER If Seller shall at any time doubt Buyer's financial responsibility, Seller may demand adequate assurance of due
performance or decline to make any further shipments or render services except upon receipt of cash payment in advance or security. If Seller demands
adequate assurance of due performance and the same is not forthcoming within 10 days after the date of Seller's demand, Seller may, at its option, (i) continue
to defer further shipments or services under this order and/or any other order from Buyer which has been accepted by Seller until adequate assurance is
received, or (ii) cancel this order and/or any other orders from Buyer which have been accepted by Seller and recover damages. If Buyer fails in any way to
fulfill the terms and conditions hereof, Seller may defer further shipments until such default is corrected or cancel this order and recover damages.

13. LOSS TO BUYER'S PROPERTY; PATENT, TRADEMARK, OR COPYRIGHT INFRINGEMENT, ETC.

a. Seller shall not be liable for, and shall have no duty to provide insurance against, any damage or loss to any goods or materials of Buyer which are used
by Seller in connection with this order. Where any Product or any component of any Product is manufactured from patterns, plans, drawings, or specifications
furnished by Buyer, Buyer shall indemnify Seller against and save Seller harmless from all loss, damage, and expense arising out of any suit or claim against
Seller for infringement of any patent, trademark, or copyright because of Seller's manufacture of such Product or because of the use or sale of such Product or
component of such Product by any person. Upon Seller's request, Buyer shall appear in and assume the defense of and costs relating to, the litigation.
b. Seller shall have no liability for patent infringement unless the Products, or in the case of a processing line sold hereunder, the components of such
processing line, in and of themselves constitute the infringement. If they do, and Seller is notified in writing of the claim of infringement within 10 days after
such claim is received by Buyer and Seller is permitted to settle or defend such claim, Seller shall indemnify Buyer against the reasonable expense of defending
suit and against any judgement or settlement to which Seller agrees. However, such indemnity shall not exceed under any circumstances the price paid by
Buyer to Seller for the infringing Product or component. If an injunction is issued against the further use of any Product or component, Seller shall have the
option of either procuring for Buyer the right to use the Product or component, replacing the infringing Product or component with a non-infringing Product or
component, modifying them so that they become non-infringing, or refunding the purchase price. The foregoing constitutes Seller’s entire warranty and liability
as to patents.

14. SELLER'S SPECIFICATIONS, TECHNICAL DATA, ETC. Any specifications, drawings, plans, notes, instructions, engineering notices, or technical data of Seller
furnished to Buyer and specifically referenced on the face hereof, shall be deemed to be incorporated herein by reference the same as if fully set forth. Title to
all technical data, including but not limited to drawings, plans, documents, writings, computer software and data, and all other sources of technical information
in any form, tangible or intangible, relating to the Products, shall at all times remain the property of Seller, and Buyer shall not disclose such to any party other
than Seller or a party duly authorized by Seller. Upon completion of the Products and written consent by Seller, Buyer shall become an authorized licensee of
such technical data (as permitted by Seller), with the right to use the technical data for the sole purpose of operating and maintaining the Products. Buyer shall
not disclose any technical data provided hereunder to any party other than Seller or a party duly authorized by Seller.

15. CANCELLATIONS. After acceptance by Seller, orders shall not be subject to cancellation by Buyer except with Seller's consent and upon terms that will
indemnify Seller against all direct, incidental, consequential or other loss or damage.

16. GOVERNING LAW. The rights and obligations of Buyer and Seller under this Agreement shall not be governed by the provisions of the 1980 U. N. Convention
on Contracts for the International Sale of Goods; rather such rights and obligations shall be governed by, and this document shall be construed in accordance
with, the laws of the State of Wisconsin, U.S.A., except that the conflict of laws provisions thereof shall not be applicable. Whenever there is a conflict of laws,
the laws of the State of Wisconsin, U.S.A. shall prevail.

17. ENTIRE AGREEMENT. If the Products covered hereby are being sold pursuant to any other written agreement between the parties signed by Seller, the terms
and conditions of this document are intended to be in addition to and not in lieu of, the terms and conditions set forth in such agreement. In the event of any
inconsistency between these terms and conditions and terms of such other agreement, the terms of such other agreement shall govern to the extent of the
inconsistency. Buyer's order shall be deemed to be based upon all the terms and conditions hereof notwithstanding the fact that such order sets forth additional
or contrary terms or conditions. No acknowledgment by Seller of, or reference by Seller to, or performance by Seller under, any order of Buyer shall be deemed
to be an acceptance by Seller of any additional or contrary terms or conditions set forth in such order. This document may only be modified in a writing signed
by one of Seller's officers or authorized representatives.

18. LIMITATIONS ON ASSIGNMENT. Neither party may assign any of its rights or obligations hereunder without the prior written consent of the other except that
Seller shall have the right to assign same to any company with which it is affiliated or to any corporation into which it shall be merged, with which it shall be
consolidated, or by which it, or all or substantially all of its assets, shall be acquired.

19. SEVERABILITY. In the event that any provision hereof shall violate any applicable statute, ordinance, or rule of law, such provision shall be ineffective to the
extent of such violation without invalidating any other provision hereof.

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20. INTERNATIONAL SHIPMENTS; EXPORTS.

a. As a service to Buyer, Seller shall, upon Buyer's request and Seller's written agreement, arrange for export shipment on behalf of Buyer, but Seller's actions
shall not relieve Buyer of its responsibilities hereunder. Buyer shall pay or reimburse Seller for all fees and expenses incurred by Seller in connection therewith.
In performing such services for Buyer, Seller shall comply with any reasonable instructions of Buyer or, in the absence thereof, shall act according to its own
business judgment; provided, however, that Seller shall not be liable in any event for any claim asserted by Buyer relating to Seller's performance of such
services.
b. The following terms and conditions shall apply to sales of products to be shipped to destinations outside the United States and shall supercede any
conflicting provisions of Sections 1 through 19 hereof:
(i) Shipping Terms. Whenever the term F.O.B. is used above, it shall be replaced by F.C.A. (as such term is defined in the International Chamber of
Commerce INCOTERMS - 2010 Edition).
(ii) Governing Language. The governing language of this Agreement shall be English, and all written communications related hereto shall be in English.
(iii) Dispute Resolution. All disputes arising in connection with this Agreement shall be finally settled under the Rules of Conciliation and Arbitration of the
International Chamber of Commerce by three arbitrators appointed in accordance with such Rules, and the arbitration proceedings shall be in the
English language only, and shall take place in Wisconsin, USA, provided, however, that in the case of shipments to Canada, any litigation or dispute
resolution against Seller can be initiated only in state or federal court in Wisconsin.

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