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<br /> QUOTATION NO. 190860REV1
<br />3500 Shepherd Street, City of Industry, California 90601
<br />Box 226789, Los Angeles, California 90022-0744
<br />(562) 463-6000 Fax: (562) 463-7156 Date: June 24, 2021 Page: 6 of 7
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<br />EMISSIONS NOTE
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<br /> "California Air Resources Board (CARB) has approved alignment with the federal New Source Performance Standards (NSPS). Such
<br />alignment allows for emergency standby engines to be exempt from Tier 4 emissions standards; however, local air districts can require more
<br />stringent emissions control. The prospective buyer of the equipment quoted above is hereby notified the NSPS exemption does not apply to
<br />non-emergency standby engines (e.g. prime power applications such as peak shaving, parallel operation with the grid, or storm avoidance), or
<br />portable engines, even if used for emergency standby. Consult the local air district for permitting requirements and required emissions
<br />controls. Presently, South Coast Air Quality Management District (SCAQMD) Rule 1470 requires the use of a particulate filter if an engine is
<br />located within 100 meters of a school, and may require either a diesel particulate filter or an oxidation catalyst, depending upon engine size, if
<br />the installation is within 50 meters of a sensitive receptor. Particulate filters may also be required for Title V and major polluting facilities. For
<br />emissions requirements specific to the project for which this engine is being quoted, please contact SCAQMD at 909-396-2000. Unless
<br />otherwise listed above a DPF is not included in this proposal, please call for quotation if a DPF is required for this project.”
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<br /> Caterpillar engines require a minimum of 30% load to prevent engine damage due to wet-stacking. Depending upon the permit and site
<br />specific conditions, SCAQMD emergency engine permits will only allow between 20 and 50 hours of runtime per year for non-emergency
<br />applications such as testing and exercising. Passive Diesel Particulate Filter systems depend on generator loading of a minimum of 50-60% to
<br />achieve minimum exhaust temperature threshold to keep soot regeneration and the filter backpressure within acceptable levels. If the engine
<br />will be operated consistently at low loads/low exhaust temperatures, the customer should make provisions to add load via facility operations or
<br />a load bank. Active Diesel Particulate Filter systems require no external load in order to regenerate. If listed above, Passive DPF option pricing,
<br />does not include a load bank or a load bank circuit breaker. If a load bank is needed for this project, please call for quotation.
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<br />TERMS AND CONDITIONS
<br />1. Acceptance of Order.
<br /> This Quotation is for Buyer's information only and is not a valid offer to sell unless signed by an authorized representative of Seller in the place provided on the face of this Quotation. Prices, terms and
<br />conditions in an order from Buyer, which are inconsistent with the prices, terms and conditions of this Quotation, will be rejected by Seller, and are of no force and effect unless accepted in writing by Seller. Prices,
<br />delivery schedules and the scope of work on this Quotation are subject to change at Seller’s discretion.
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<br />2. Liability.
<br /> Seller's liability on any claim of any kind, including claims for negligence, or for any loss or damage arising out of or connected with the manufacture, sale, delivery, installation, resale or use of any products
<br />covered by or furnished under any order connected with this Quotation shall be limited to those claims arising solely from the acts of Seller and Seller shall in no way be liable for any special, indirect, incidental or
<br />consequential damages. The term “consequential damages” shall include, but not be limited to, loss of anticipated profits, business interruption, loss of use, revenue, reputation and data, costs incurred, including
<br />without limitation, for capital, fuel, power and loss or damage to property or equipment. Buyer expressly acknowledges and agrees that Seller has set its prices in reliance upon the limitations of liability and other terms
<br />and conditions specified herein, which allocate the risk between Seller and Buyer and form a basis of this bargain between the parties. Any claims against Seller for shortages in shipments shall be made in writing to
<br />Seller within fifteen (15) days of receipt of shipment by Buyer. Unless otherwise provided for in writing, Seller's responsibility for shipment ceases upon delivery to carrier, and any claims for shortage, delays or damage
<br />occurring thereafter shall be made direct to carrier by Buyer. Seller shall not be liable for any delays in delivery attributable to strikes, labor disputes, lockouts, accidents, fires, delays in manufacture or in transportation,
<br />delays in delivery of component materials, floods, severe weather, or Acts of God, embargoes, governmental actions, or any other cause beyond the reasonable control of Seller. Seller shall not indemnify nor be liable
<br />to Buyer, Buyer’s assigns, successors, purchasers, lessees or licensees, or to any person or entity for any claims, losses, expenses or judgments arising out of or resulting in any way from the product or integration
<br />of compatibility of the product with any other components, processes, facilities or equipment that does not comply with the equipment manufacturer(s)’s recommendations.
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<br />3. Shipments.
<br /> Unless otherwise specified, all risk of loss from the goods shall shift to Buyer at such time as the goods are delivered to a carrier for shipment to Buyer. Unless otherwise specified, shipment dates are
<br />approximate and all quoted prices exclude shipping costs. Shipment of goods under any order accepted by Seller shall be subject to the approval by Seller of Buyer’s financial condition at the time of shipment.
<br />Whether or not terms of payment are specified elsewhere, Seller may, at its option, condition shipments under any order accepted by Seller upon receipt of satisfactory security or of cash prior to shipment. If, at
<br />Buyer’s request, shipment of goods under any order accepted by Seller is delayed more than thirty (30) days after the shipment date specified in the order, or the date the goods are ready for shipment, whichever is
<br />later, Seller will require immediate payment in full and/or assess additional charges for the expenses incident to such delay.
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<br />4. Termination.
<br /> In the absence of a written agreement between Buyer and Seller expressing different terms and conditions as to termination, any order accepted by Seller may be terminated prior to completion by Buyer only
<br />upon written notice to Seller and payment of Seller’s termination charges. If notice of termination is received by Seller after Seller has committed to buy the principal components for any order, termination charges
<br />shall include all direct and indirect costs incurred by Seller and the total profit anticipated by Seller. Additionally, Buyer’s instruction to Seller to stop work for thirty (30) days during the time specified for performance
<br />in any order may be construed by Seller as the equivalent of written notice of termination from Buyer and previous stipulations will be in effect.
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<br />5. Taxes.
<br /> Unless expressly stated, Seller's prices do not include sales, use, excise or similar taxes, which Seller may be required to pay in filling Buyer's order. The amount of any applicable tax shall be paid by Buyer as
<br />an additional charge unless specifically included in any order accepted by Seller, or in lieu thereof, Buyer shall provide Seller with a tax exemption certificate acceptable to the taxing authorities.
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<br />6. Patents.
<br /> Seller shall, at its own expense, defend and save Buyer harmless from the expenses and consequences of any suit or procedure brought against Buyer, based on a claim that the use or sale of goods specified
<br />in any order accepted by Seller constitutes an infringement of any United States letters of patent in existence on the date of any such order; provided Buyer promptly notifies Seller in writing of such claim and gives
<br />the necessary authorization, information and assistance for the defense of such a claim.
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<br />7. Changes.
<br /> Seller, and Seller's suppliers, may, at any time, without notice to Buyer, make changes (whether in design, materials, the addition of improvements, or otherwise) in any goods specified in any order accepted
<br />by Seller without incurring any obligation of any kind as a result thereof, but only to the extent that such change does not cause the goods specified to fail to meet Buyer's requirements. Buyer may, in its order,
<br />provide for changes in its requirements with provision for a corresponding equitable change in the price, if any; but in no instance shall Buyer make changes, which are substantially different from the scope of the
<br />original order accepted by Seller.
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<br />8. Export Sales.
<br /> In the event the goods and services specified in any order accepted by Seller are for export, the Buyer shall be responsible for securing export, import and other licenses or authorizations as may be required.
<br />The conditions specified in this Section apply to all export transactions. This transaction is only for the sale of the equipment requested and detailed in this Quotation. Not included is any startup assistance, field-
<br />testing, training or any other services that might be required on site. Also not included is any installation, installation audits, sea trials (if applicable), or installation materials. To ensure proper application,
<br />installation, and warranty integrity, Buyer is encouraged to contact the applicable Caterpillar Dealer for these services. The costs of these services are not included in the sale price nor will Seller be responsible for
<br />any such related costs.
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<br />9. Permits for Equipment Design, Installation and Operation.
<br /> As a supplier of equipment, disclaims responsibility for any and all permits or licenses necessary to design, install and operate the equipment due to zoning, air quality, environmental, safety, building or
<br />construction codes or use permits pertaining to Buyer’s particular application of such equipment or any similar type of permit. Special attention should be given to the requirements of local air district rules and
<br />California Air Resources Board (CARB) regulations pertaining to permit requirements. Seller is quoting on equipment based on the specifications set forth in this Quotation. If additional equipment or engine
<br />modifications are required beyond the specifications, such as additional equipment required for compliance by a local air district or CARB, those items are not included and are the responsibility of Buyer. For
<br />example, South Coast AQMD (SCAQMD) Rule 1470 may require controls and limits on particulate matter, especially when the engine installation is within 100-meters from a school, or within 50 meters of a sensitive
<br />receptor (defined in Rule 1470). Ultra low sulfur fuel is required for particulate filters. CARB Diesel Fuel, or other CARB-approved alternative fuel, is also required for compression ignition (CI) engines operated in
<br />California. When indicated in the bill of materials, the proposed equipment may be SCAQMD pre-approved as Certified Equipment. This certification does not eliminate the permit process or responsibility of others
<br />to obtain a permit. Procurement of certified equipment assures permitability, reduces the permit processing fees and reduces the time necessary to obtain the permit through SCAQMD.
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<br />10. Start-up, Commissioning and Operating Requirements.
<br /> Equipment provided in this Quotation may require start-up and commissioning, including inspection(s), to ensure the equipment is installed in accordance with manufacturer(s)’s recommendations and
<br />specifications. If Seller has commissioned the equipment, Buyer agrees not to modify the design or components of the installation such that the modifications would violate any legal requirements of the installation,
<br />or would cause the installation to deviate from manufacturer(s)’s recommendations and specifications. Buyer acknowledges and agrees that, with respect to products sold to Buyer in connection with this Quotation,
<br />Buyer shall have the sole responsibility to ensure the products are properly installed, operated and maintained in accordance with the manufacturer(s)’s recommendations and specifications, and to determine and
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