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24-100 To Pre-Order Equipment for the SE Area Water Improvements Project, City Project 24-08CITY OF SHOREWOOD COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION 24-100 A RESOLUTION TO PRE -ORDER EQUIPMENT FOR THE SE AREA WATER IMPROVEMENTS PROJECT; CITY PROJECT 24-08 WHEREAS, Council authorized the preparation of plans & specifications at the September 23, 2024, Council Meeting for the SE Area Water Treatment project to rehab three water filter bays and replace its filter media, adjust the chlorination process to be ahead of the filters to improve water quality, and upgrade the existing controls due to an aging computer system; and WHEREAS, The design, review, and bidding will not be completed in 2024 as anticipated and staff have identified that some of the critical materials have up to 40 week lead times; and WHEREAS, To utilize as much of the ARPA funds as possible in 2024 and to start the clock on the delivery of materials, staff recommends pre ordering the critical materials; and WHEREAS, Several of the critical materials for this project are proprietary and must be compatible with the existing facility and its operations, therefore multiple quotes were not received for the specific items; and WHEREAS, Staff have received one quote for the filter media and controls from Tonka Water- Kurita in the amount of $145,000; and WHEREAS, Staff have received an second quote for the chlorine materials from Vessco Inc. in the amount of $33,536; and WHEREAS, Staff will continue to complete the design and review with the Minnesota Department of Health over the next several months and will be back with final plans seeking approval and bidding early in 2025; and WHEREAS, The project schedule is to have all items installed and functioning in 2025; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD, MINNESOTA AS FOLLOWS: 1. The City Council of the City of Shorewood, Minnesota approval the resolution authorizing pre ordering of the filter media, controls through the quote provided by Tonka Water-Kurita in the amount of $145,000, and the chlorination materials through the quote provided by Vessco Inc. in the amount of $33,536; Adopted by the City Council of Shorewood, Minnesota this 25th day of November, 2024. Je nifer L adie, Mayor Att J�( Sanc ie Thone, City Clerk 6TONKAWATER" a Kurita brand Quotation Pressure Filter Refurbishment Materials Shorewood, MN — Original Tonka Water Project Number 91130 Addressee: City of Shorewood, MN Andrew Budde City Engineer Quotation #: KATW11112024-1BRP Quotation Date: 11/11/24 Quotation 30 Days Expires: We are represented on this project by As6NE Matt Fritze — President/Outside Sales Office: (651) 289-9100 Cell: (952) 239-2264 Email: mfritze@nenv.com Great Northern Environmental 1300 Helmo Ave N, Oakdale, MN 55128 See us on the web at www.Rnenv.com Kurita America Contact: Brienne Peterson 6600 94th Ave. North Minneapolis, MN 55445 USA 1-800-530-1887 b.petersonl@kurita-water.com a1�1 a Kurita brand ABOUT KURITA AMERICA Kurita America is a designer and manufacturer with 70 years of experience in providing customized water and wastewater systems to municipal and industrial customers with more than 2300 installations. Engineering cost-effective solutions for the most challenging surface water and ground water problems. Key packaged solutions • Clarification • Membrane systems • Filtration • Ion Exchange • Metals removal Service packages and parts • Filter media replacement • Original equipment manufacturer parts • Full array of water related parts • Troubleshooting • Upgrades and refurbishment Kurita America Aftermarket Service and Sales is continually offering new products and services to extend equipment life, reduce water and energy usage, and replace end of life equipment. Refurbishments • Turn -key services matching original • Site -based services specifications • Underdrain nozzles and replacement • Simul-Wash'" — simultaneous air & water • System enhancements backwash system • Design -Build -Operate -Maintain solutions • BLEUT"" —low profile SS dual underdrain for industrial water/wastewater facilities • Uni-CastT"° Underdrain —pour in place Media Replacement and Analysis • Turn -key removal and installation • Disinfection services and media treatment • Inventoried anthracite, Sand, garnet, gravel services and greensand • Meets AWWA and NSF standards Parts • Full line of OEM parts • Stocked sealing and control components • Chemical feed equipment • Aerator packing materials • Valves and valve rebuild parts Automation and Controls • Factory remote support and monitoring • SCADA compliant and control • Allen Bradley control upgrades, PLC & HMI and obsolete replacement • Compliance reporting and trending • Custom functional modification for ease of use like screens, tablets, PCs • Security — firmware, smart switch Pressure Filter Refurbishment Materials- KATW11112024-1BRP Page 2 of 13KuPJTA a Kurita brand Scope of Work Kurita America has been requested to provide a quotation to provide the necessary internal components associated to refurbish one (1) three -cell horizontal pressure filter, for the city of Shorewood, MN original Tonka Water serial number 91130. Project timeline is to have the filter material shipped in 10-12 weeks after the receipt of purchase. Filter materials can be shipped before hand upon request, or at the same time as control panel. Kurita America has additionally been requested to provide a quotation for a complete control panel replacement. The replacement control panel will be shipped fully equipped with a pre - loaded, custom program. The customer should update any SCADA panel communication at the same time to communicate with ethernet connection. The Control Panel lead time is 38-40 weeks. Key benefits of Kurita America for the Project • Kurita America provided the original equipment and has the expertise to make key recommendations. • Field Service Technicians with extensive equipment knowledge for start-up after repair. • Certified contractors to perform removal and install of Kurita America equipment. • Plant operation will run according to Kurita America Engineering design. Products Provided Filter Media • Kurita America is to provide new filter media. Media is to consist of the following and should be installed in accordance with AWWA B100-2016 specifications for filter material: 0 12" 0.8-1.2mm anthracite UC <1.65 0 18" 0.45-0.55mm silica sand UC <1.65 0 3" of 0.8-1.2mm torpedo sand a 3" of 1/4 x 1/8 Gravel 0 3" of 1/2 x 1/4 Gravel 0 3" of 3/4 x 1/2 Gravel A. All materials are to be shipped in one or half cubic foot bags and palletized. B. Approximate total cubic feet of combined media and gravels provided: 1194cuft Pressure Filter Refurbishment Materials- Page 3 of 13 G)KuRITA KATW11112024-1BRP a Kurita brand C. Kurita America is to provide the following filter materials: o -336 Underdrain Nozzles (to be finalized upon submittal of redesigned underdrain) o Three 14x18" Elliptical Manway gaskets. o Three 24" Round hinged manway enclosures, primed, ready for contractor to install ■ To replace 3 existing elliptical manways on filter. o Kurita to supply one (1) 6" SimulWash'" rate set valve for the creation of a new backwash SimulWash rate set loop. ■ Contractor to supply necessary amount of pipe and install piping and valve to the rate set loop. ■ Kurita to provide drawings as needed. ■ Kurita to program the new valve to work with standard Tonka SimulWash controls. D. Freight to the jobsite is included. Underdrain System • Kurita America is to provide our proprietary gravel retaining ABS insert nozzle. E. Kurita America to provide -336 (12" on center) underdrain nozzles per tank. F. Contractor is required to remove existing underdrain grid and header and install replacement header and laterals. G. Contractor to encase new underdrain in concrete. N. Concrete provided by others. I. Installation shop drawings provided by Kurita America. J. New underdrain support steel provided by Kurita for contractor installation. K. Freight to the jobsite is included • Kurita America is to provide our proprietary airwash grid as a direct replacement of the existing airwash grid. o Kurita America is to provide new PVC airwash grids for all three of the existing filter cell(s). o Contractor is required to remove existing airwash header and laterals and install replacement header and laterals. o Installation shop drawings provided by Kurita America. o New airwash support steel provided by Kurita for contractor installation. • Freight to the jobsite is included. Pressure Filter Refurbishment Materials- Page 4 of 13 QKu1UTA KATw11112024-1BRP • Kurita America is to provide a new 42" x 36" control panel. o Allen Bradley PanelView Plus 7 —10.4" operator interface terminal for operation observation. o CompactLogix programmable logic Controller o Ethernet Switch — Ethernet SCADA capable o Program to be preloaded prior to shipping. • Freight to the jobsite is included. Remote Access Package • Includes tablet with copy of the panel program with identical HMI screen that can control the system remotely from anywhere a wireless internet program is available. • Program to be replicated on a tablet that can be used to control the system remotely from anywhere you have an internet signal. • Smartphone connectivity is possible upon request. • Additional licenses may be required to purchase by customer. • Kurita America is to provide a replacement solenoid panel, equipped with the required amount of pneumatic driven solenoids to operate the existing plant with the addition of a SimulWashTm rate set valve added to the system. • Installed by contractor • External tubing and wiring not included in this quote, to be provided by others. Pressure Filter Refurbishment Materials- Page 5 of 13 QKuRITA KATW11112024-1BRP I us I 1, 21 1 WAN I & k - =-a Customer Scope • Filter materials removal and installation by others. • Execute the required Lock Out/Tag Out procedures as required to perform work on the necessary equipment. Label then disconnect all wiring from the existing enclosure to field devices. Remove old enclosure. Drill conduit entries into the new enclosure and terminate wiring in new enclosure. Providing new airlines as needed. Install Ethernet cables between existing router and new PLC. • Kurita will assist the customer with these tasks in in an advisory role but will be limited by the presiding electrical code and licensing requirements governing the plant. Keep in mind that filter units that we encounter for these upgrades are rarely identical from one plant to the next. There may be some debugging time that is needed from the time power is applied to the new enclosure until it is fully functional. • The expected time required to perform these upgrades is 6-10 hours from the time the upgrade starts until the unit is running again. This is based on history and is not guaranteed due to unforeseen circumstances that may arise. Kurita is committed to meeting your standards and will not consider the job complete until you are satisfied. This upgrade can usually be done while the filter is in service if needed. • Customer to supply internet connection for remote access if option is purchased. • It is recommended that the customer schedule an electrician for control panel setup the week of arrival of the Kurita technician. • Customer to VERIFY any SCADA integration or connection is capable of taking ethernet connection capability prior to making purchase. PLC in new panel will utilize Ethernet communication, any outdated "data highway" integration to other systems outside of the Tonka Panel will not integrate to new panel(s) and communication will not be possible if SCADA (or other) panels are not ethernet communication ready. Please ensure your other systems are ready to integrate ethernet communication. Tonka does not do SCADA integration and will provide a panel(s) that are SCADA integration ready. Limits of Scope • Plant personnel are required to open vessel manways and reinstall manways • Filter disinfection is required prior to putting the filter into service. Pressure Filter Refurbishment Materials- Page 6 of 13 G)Ku1UTA KATW11112024-1BRP a Kurita brand o Any disinfection or saturation chemical is not included in this quote. o Chemicals needs to be onsite prior to service visit/start-up. o System will require additional backwashing to remove chemical treatments. • Kurita will need to be informed of any personnel protection equipment required and if any additional requirements are needed to enter the facility (i.e. Plant Safety requirements). • Kurita not expected to perform an on -site electrical installation. • Kurita does not provide any wiring or conduit outside of the control panel enclosure. Start-up Services Kurita America's Service technician to be onsite for 7 days total; 1 day for filter underdrain inspection prior to concrete pour, 1 day for media installation and supervision, and 5 days to ensure filter backwash sequence and flow rates are within specification after panel installation. Additional inspection as time allows. Pressure Filter Refurbishment Materials- Page 7 of 13 G)KuRITA KATW11112024-1BRP a Kurita brand Kurita bases this proposal on the invoice schedule as shown below: 20% Upon Receipt of PO 70% Upon Readiness of Shipment 10% Retainage to be Paid no Later Than 30 Days After Completion Delivery: 1. Submittal drawings will be supplied in approximately 3-4 after receipt of a fully signed and executed purchase order. 2. Shipment of filter material equipment will be no earlier than 10-12 weeks after receipt of approved drawings OR 38-40 weeks with the control panel, upon request. The attached CONDITIONS OF SALE AND WARRANTIES that are incorporated herein. For your convenience, this sheet may be used as your order for this equipment. Items Ordered P.O. Number Total Net Price Firm Name and el Or— Address 1575CIA -IZD Vt ` Sr.�l By (Print) t ( t Signature Date 6 /f Kurita America Inc. Purchase orders should be addressed to: Kurita America Inc. 6600 94t" Ave. North Minneapolis, MN 55445 Pressure Filter Refurbishment Materials- Page 8 of 13 G)KuRITA KATW11112024-1BRP a Kurita brand We do not include the following: 1. Mechanical or electrical installation. 2. Unloading or rigging. The contractor must provide a suitable access to the jobsite. 3. On -site storage or protection of equipment. 4. Pipe, valves or fittings other than those specifically described herein. 5. Pipe supports or hangers. 6. Motor starters, motor controls, disconnects, or any other electrical equipment other than those specifically described herein. 7. Electrical wiring or conduit. 8. Chemical feed tubing, conduit piping, hangers or supports. 9. Pumps or pumping equipment other than those specifically described herein. 10. Concrete, concrete grout or rebar. 11. Disinfection or disinfection / start-up chemicals. 12. Lubricants. 13. Pneumatic tubing or conduit. 14. Control panel wall mounting material or hardware. 15. Anchor bolts or anchoring calculations, unless specifically described herein. 16. Any items not specifically described in this proposal. 17. Seismic design considerations of equipment unless otherwise noted. Notes: 1. Equipment is quoted f.o.b. factory with full freight allowed to the jobsite. 2. Our proposal does not include any sales or use taxes. 3. If the above proposal includes valves, piping, etc., these are to be shipped loose for assembly and installation by others unless specifically noted to the contrary. 4. The attached Kurita America standard Terms and Conditions are incorporated by reference into this quotation, will be a part of any binding agreement between you and Kurita America, and cannot be modified by you whether by the terms of your purchase order or otherwise, except to the extent expressly accepted by Kurita America in writing. You agree to abide by the terms of Section 1("General"), Section 3 ("Quotations") and Section 17 ("Confidential Information") of the Kurita America standard terms and conditions with respect to the information contained in this quotation and any other information provided to you by Kurita America, regardless of whether you submit an order or whether you and Kurita America enter into a binding agreement regarding the purchase of the products described herein. 5. Please note that a copy of the contractor's payment and performance bond is required to be forwarded to us as a part of normal credit approval procedures. 6. Kurita America requires partial payments based on shipped material and purchaser's account being current prior to scheduling a field technician for equipment start-up. 7. Kurita America will provide field services as outlined above in this quotation. Kurita America's field service rate is $1200.00 per day plus travel and per diem expenses. If Kurita America field service personnel arrive on -site after a schedule is established and the project is not ready for the intended services to be performed, Kurita America will invoice for additional days, if required. If the time required is greater than listed in this quotation, Kurita America will invoice purchaser at the above field service rate plus travel and per diem expenses. 8. This proposal meets the requirements of the American Iron and Steel (AIS) Act, if specified. 9. Kurita America's manufactured product as described in this proposal meets the requirements for Build America, Buy America (BABA), if specified. Pressure Filter Refurbishment Materials- Page 9 of 13 G)KuRITA KATW11112024-1BRP a Kurita brand •M7FM1 _ 1. Exclusive Tereus and Conditions Together with any other terms the parties agree to in writing, these terms and conditions of sale form the exclusive terms ("Agreement") whereby Buyer agrees to purchase, and Seller agrees to sell goods and provide advice, instruction and other services in connection with the sale of those goods ("Services"). Notwithstanding any provisions communicated in any way by Buyer to Seller prior to this agreement including any terms contained in any request for quote by Buyer, Buyer agrees that this agreement will control the relationship by accepting goods and services from Seller, even if Buyer sends to Seller other terms and conditions to which Seller may not respond. 2. Buyer Obligations Seller will not control the actual operation of either Buyer's systems or goods at the site, and unless otherwise specifically agreed in writing, installation of goods shall be the responsibility of Buyer. Goods and services provided hereunder are based upon the information Buyer makes available to Seller, and Seller reserves the right to utilize the most compact and feasible design compatible with sound engineering practices, and to make changes in details of design, construction and arrangement of goods unless precluded by limitations (including, but not limited to actual space and feed water/substance quality specifications) specified by Buyer in writing at the time an order is placed. If no such limitations are specified, Seller shall not be held responsible for incompatibility of the goods and services due to changes in feed water/substance quality specifications or site conditions nor for incompatibility with actual space or design limitations, which were not initially disclosed by Buyer and become apparent at a later date. For services to be accurate and goods to work as intended, Buyer must fulfill the following obligations ("Obligations'): (a) provide Seller complete and accurate information and data relevant to the scope of work to be provided, such as information related to Buyer's site conditions, systems, related equipment and processes, feed water or other substances to be treated or measured with the Goods , including any hidden, unapparent, or changing conditions that may affect the effectiveness of the Goods; (b) operate all related systems and the goods within the agreed to control parameters or, if none, within industry customary operating conditions; (c) maintain all related systems and Goods in good operating condition and repair; and (d) maintain and handle goods in a proper and safe manner. If Buyer's fails to fulfill the foregoing obligations, Seller shall be relieved of any obligations with respect to warranties or any other commitments made to Buyer in writing, and Seller shall have no liability for any loss, damage or injury which Buyer may sustain or for which Buyer may be liable. 3. Payment and Prices Unless otherwise specified in writing in section 10 of this proposal document, payment is due net thirty (30) days from the date of Seller's invoice. If Seller shall have any doubt at any time as to Buyer's ability to pay, Seller may decline to make deliveries except on receipt of satisfactory security. The prices quoted herein do not include taxes. Buyer shall be directly responsible, and reimburse Seller, for the gross amount of any present or future sales, use, excise, value-added, or other similar tax applicable to the price, sale of delivery of any products or services furnished hereunder. Buyer shall furnish Seller with evidence of exemption acceptable to the taxing authorities if applicable. [For multi -year agreements, pricing stated shall remain firm for 12 months, after which Seller shall be entitled to adjust pricing upward on an annual basis according to the designated formula used by Seller in Buyer's country and which shall be notified to Buyer.] Unless otherwise specified, all prices are ExWorks Seller's facility. Buyer agrees to reimburse Seller for collection costs, including 2% interest per month, should Buyer fail to timely pay. Buyer shall have no rights to any setoffs of any nature relating to any payments due under the agreement. 4. Payment for Excessive Usage; Lost and Damaged Goods If payment for goods is based on some factor other than the actual amount of goods delivered (e.g., payment is for a fixed amount, or based on usage or production), then Buyer agrees to pay for all Goods (a) consumed as a result of Buyer's failure to comply with obligations as set forth in Section 2; or (b) lost or damaged after delivery to Buyer. Buyer shall provide Seller all information necessary to calculate amounts due and enable Seller to audit those records. S. Deliveries Unless stated otherwise in the proposal, Seller shall deliver all products to Buyer EXW Seller's facility, place of manufacture, or warehouse, according to INCOTERMS 2000. Shipment dates, if applicable, noted in this proposal represent Seller's best estimate of probable delivery time considering conditions known at the time this Proposal was prepared. Upon acceptance of Buyer's purchase order or, where specified in the purchase order, upon receipt of Buyer's notification to proceed with fabrication of equipment that satisfies Seller's requirements for meeting the delivery schedule, Seller shall commence fabrication of equipment. The place of delivery specified therein shall be firm and fixed, provided that Buyer may notify Seller no later than 45 days prior to the scheduled shipment date of the products of an alternate point of delivery. Provided the parties agree a variation to take into account any additional Pressure Filter Refurbishment Materials- Page 10 of 13 QKuR*1TA KATW 11112024-1 BRP cost [or delay] incurred by Seller in implementing this change, the alternate place of delivery shall become the agreed place of delivery for all purposes under this agreement. 6. Consigned Goods Buyer shall bear all risk of loss and damage to all consigned goods in Buyer's possession or control, notwithstanding Buyer's exercise of reasonable care. Seller shall have the right to enter Buyer's premises at all reasonable times to inspect such Goods and related records. Upon request, Buyer agrees to return such goods to Seller pursuant to Seller's shipping instructions. 7. Limited warranties Seller warrants that the goods shall conform to published specifications and shall be free from defects in material and workmanship when at all times operated in accordance with Seller's written instructions; and that the services will be performed with the degree of skill which can reasonably be expected from a seller engaged in a comparable business and providing comparable services under comparable circumstances. Unless otherwise provided in any warranty schedule that may be attached hereto, the foregoing warranties are valid: (a) for chemicals and services, for 6 months from their date of delivery or the provision of Services; (b) for consumables, including filters and membranes, 12 months from their date of delivery, (c) for goods other than chemicals and consumables, the earlier of, 15 months from receipt, or 12 months from start- up/first use. Unless expressly agreed in a "performance warranty document" signed between the parties on a separate basis, there is no performance warranty on goods and services or warranty on process results. For goods not manufactured by Seller, the warranty shall be the manufacturer's transferable warranty only. Any claim for breach of these warranties must be promptly notified in writing or the claim will be void. Seller's sole responsibility and Buyer's exclusive remedy arising out of or relating to the goods or services or any breach of these warranties is limited to, at Seller's option: (a) replacement of non- conforming goods or refund of purchase price of the non- conforming Goods; and (b) re -performance of the services at issue, or a refund of the amount paid for the Services at issue. No allowance will be made for repairs or alterations made by Buyer without Seller's written consent or approval. Goods may not be returned to Seller without Seller's written permission. Seller will provide Buyer with a "return material authorization" number to use for returned goods. Buyer, as the original purchaser, is not entitled to extend or transfer this warranty to any other party. The foregoing warranties are in lieu of and exclude all other warranties, statutory, express or implied, including any warranty of merchantability or of fitness for a particular purpose. B. Use of Equipment, Tanks, and Containers Tanks and SBC's owned by Seller shall be used only for the storage of goods approved by Seller and, at Seller's request, shall be returned to Seller within thirty (30) days. 4. Compliance with Laws; Permits Buyer is responsible for compliance with all laws and regulations applicable to the storage, use, handling, installation, maintenance, removal, registration and labeling of all goods from and after Buyer's receipt of the goods, as well as for the proper management and disposal of all wastes and residues (including containers) resulting from Buyer's use of the Goods. Buyer agrees to ensure that all Goods and Services provided to Buyer for export are exported only in compliance with applicable export control laws and regulations. Permits and licenses of a permanent nature, or which are required to operate apparatus or equipment or to use the Goods, shall be procured by Buyer at Buyer's sole expense. 10. Installation For equipment purchase if applicable, installation costs of the equipment and materials supplied shall be the responsibility of the Buyer, unless otherwise provided within the Seller's proposal. Otherwise, unless stipulated in the Seller's proposal, Buyer agrees to pay for start-up supervision and operator instruction, at the Seller's prevailing rate per day. Buyer also agrees to pay reasonable expenses for transportation room and board for Seller's personnel. Standard terms of sale include two sets of operating instructions. If additional sets are required, they are available at an additional charge. Upon receipt of request for additional sets, a price quotation will be forwarded. 11. Differing Site Conditions and Hazardous Materials In the event that Seller encounters any Hazardous Materials (shall mean toxic substances, hazardous substances, pollutants, contaminants, regulated wastes, or hazardous wastes as such terms may be defined or classified in any law, statue, directive, ordinance or regulations promulgated by any applicable governmental entity) at the Buyer's site, other than Hazardous Materials introduced by Seller or that are otherwise the express responsibility of Seller under this Agreement, Buyer shall immediately take Pressure Filter Refurbishment Materials- Page 11 of 13 QKuRITA KATW11112024-1BRP a Kurita brand whatever precautions are required to legally eliminate such hazardous conditions so that the Seller's work under this Agreement may safely proceed. 12. Emergencies In the event an emergency condition should occur where the protection of either the plant equipment, employees at site, or the surrounding community are threatened, Seller may procure the required and necessary equipment, personnel, or subcontract support. Seller must provide immediate notice to Buyer regarding the emergency and then provide a report after reviewing the events and itemizing all expenditures. Buyer will reimburse Seller for all emergency related expenses. 13. Excusable Delay/Non-Performance Seller shall not be liable nor in breach or default of its obligations under this Agreement to the extent performance of such obligations is delayed or prevented, directly or indirectly, due to causes beyond the reasonable control of Seller, including, but not limited to: acts of God, fire, terrorism, war (declared or undeclared), epidemics, material shortages, insurrection, act (or omissions) of Buyer or Buyer's suppliers or agents, any act (or omission) by any governmental authority, strikes, labor disputes, transportation shortages, or vendor non-performance. The delivery or performance date shall be extended for a period equal to the time lost by reason of delay or non- performance, plus such additional time as may be necessary to overcome the effect of the delay or non-performance. If Seller is delayed by any acts (or omissions) of Buyer, or by the prerequisite work of Buyer's other contractors or suppliers, Seller shall be entitled to an equitable price and performance adjustment as applicable. 14. Confidentiality and Intellectual Property Both parties agree to keep confidential the other party's proprietary non-public information, if any, which may be acquired in connection with this Agreement. Buyer will not, without Seller's advance written consent, subject Goods to testing, analysis, or any type of reverse engineering. Seller retains all intellectual property rights including copyright which it has in all drawings and data or other deliverables supplied or developed under this Agreement, subject to Buyer's right to use such drawings and data for its own use without additional cost. Buyer acknowledges that Seller is in the business of selling the Goods subject to this Agreement and agrees that it will not file patent applications on the Goods, or processes and methods of using the Goods, without Sellers express written permission. Buyer further agrees that in any event any such patents will not be asserted against Seller or its customers based upon purchase and use of such Goods. Buyer shall be fully liable for any infringement of patent rights of third parties arising out of the products supplied hereunder where the construction, and other characteristics of such products including modification of the Goods and Services, is prescribed to the Seller, or completed independently, by the Buyer or agent(s). Buyer shall fully defend and indemnify the Seller in case of such claim(s). Any software Seller owns and provides pursuant to this Agreement shall remain Seller's property. Seller provides to Buyer a limited, non-exclusive and terminable license to such software for the term of this Agreement. Buyer agrees not to copy, sub- license, translate, transfer, reverse engineer, or decode the software. Unless otherwise expressly agreed by Seller, this license shall terminate and the software shall be returned to Seller upon termination of this Agreement, or the material breach of the terms in this section. 1. Limitation on Liability To the extent permitted by law, the total liability of the Seller for all claims arising out of or relating to the performance or breach of this Agreement or use of any Goods or Services shall not exceed the annual contract value of this Agreement. Seller shall not be liable for any advice, instruction, assistance or any services that are not required under this Agreement or for which Seller does not charge Buyer. In no event will either party be liable to the other for lost profits or revenues, cost of capital or replacement or increased operating costs, lost or decreased production, claims of Buyer's customers for such damages or any similar or comparable damages, or for any incidental, special, consequential or indirect damages of any type or kind, irrespective of whether arising from actual or alleged breach of warranty, indemnification, product liability or strict liability, or any other legal theory. If Buyer is supplying Seller's Goods or Services to a third party, Buyer shall require the third party to agree to be bound by this clause. If Buyer does not obtain this agreement for Seller's benefit for any reason, Buyer shall indemnify and hold Seller harmless from all liability arising out of claims made by the third party in excess of the limitations and exclusion of this clause. 16. Conflicts; Survival, Assignment If there is any conflict between this Agreement and any written proposal or quotation provided by Seller, then the terms and conditions set forth in the proposal or quotation shall prevail. If any term or condition of this Agreement or any accompanying terms and conditions are held invalid or illegal, then such terms and conditions shall be reformed to be made legal or valid, or deleted, but the remaining terms and conditions shall remain in full force and effect, and the Agreement shall be interpreted and implemented in a manner which best fulfills our intended agreement. This Agreement may only be assigned by Seller to any affiliate. Pressure Filter Refurbishment Materials- Page 12 of 13 IMKuR*ITA KATW11112024-1BRP a Kurita brand 17. Termination and Cancellation This Agreement and any performance pursuant to it may be terminated or suspended by either party if the other party (a) is the subject of bankruptcy or insolvency proceedings; or (b) defaults in its material obligations under this Agreement, and such default is not cured within thirty (30) days. Upon the termination of this Agreement: (a) Buyer agrees to pay for all Goods in Buyer's possession or for which title has passed to Buyer, at current prices or at such other prices as have been agreed to in writing; and (b) all amounts owing, if any, for the equipment or tanks relating to those Goods shall immediately become due and shall be paid within thirty (30) days of receipt of an invoice. In the event of cancellation of an order by Buyer, a cancellation charge will be made against the Buyer, in proportion to the work completed by Seller, or obligated against the order, plus any cancellation charges assessed against Seller by Seller's suppliers. 18, Governing Law and Dispute Resolution This Agreement shall be governed by the substantive laws of the State of Minnesota. The UN Convention on the International Sale of Goods shall not apply. In the event of a dispute concerning this Agreement, the complaining party shall notify the other party in writing thereof. Management level representatives of both parties shall meet at an agreed location to attempt to resolve the dispute in good faith. Should the dispute not be resolved within thirty (30) days after such notice, the complaining party shall seek remedies exclusively through arbitration. The seat of arbitration shall be the federal district court in Minneapolis, MN, and the rules of the arbitration will be the Commercial Arbitration Rules of the American Arbitration Association, which are incorporated by reference into this clause. Pressure Filter Refurbishment Materials- Page 13 of 13 G)KuRITA KATW11112024-1BRP