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HomeMy Public PortalAbout041-2015 - Sanitary - Best Equipment Co., Inc. - Purchase of a Recycling TruckORIGINAL PURCHASE AGREEMENT THIS AGREEMENT made and entered into this �_ day of Ae'r' ( , 2015, by and between the City of Richmond, Indiana, a municipal corporation acting by and through its Board of Sanitary Commissioners (hereinafter referred to as the "City") and Best Equipment Co., Inc., 5550 Poindexter Drive, Indianapolis, Indiana 46235 (hereinafter referred to as the "Contractor"). SECTION I. STATEMENT AND SUBJECT OF WORK City hereby agrees to purchase from Contractor one (1) new Lodal EVO-MAG 20 Split Body Recycling Truck, delivered. Certain Bid Specifications sent out January 30, 2015 and duly advertised, have been made available for inspection by Contractor, are on file in the offices of the Richmond Sanitary District, are attached as Exhibit "A" hereto, consisting of five (5) pages, and are hereby incorporated by reference and made a part of this Agreement. Contractor agrees to abide by the same, and shall provide said recycling truck conforming to the requirements set forth in the Bid Specifications. Delivery of any equipment that does not meet all specifications listed on "the Bid Specifications" will be considered a breach of this Agreement. The response of Contractor to said Bid Specifications is attached hereto as Exhibit `B," which Exhibit is dated February 20, 2015, consisting of six (6) pages, and is hereby incorporated by reference and made a part of this Agreement. Contractor shall provide all equipment, services, and warranties, and abide by all terms listed on Exhibit `B." Contractor shall not modify or alter any standard warranty from the manufacturer of the above described vehicle or equipment. Nothing contained herein shall prevent Contractor from providing any additional or supplemental warranty in addition to that provided by the Manufacturer. Further, Contractor shall provide City with copies of its warranty upon receiving a written or verbal request to receive such warranty. Should any provisions, terms, or conditions contained in any of the documents attached hereto as Exhibits, or in any of the documents incorporated by reference herein, conflict with any of the provisions, terms, or conditions of this Agreement, this Agreement shall be controlling. No performance of services shall commence until the following has been met: 1. The City is in receipt of any required certificates of insurance and/or warranties; 2. The City is in receipt of any required affidavit signed by Contractor in accordance with Indiana Code 22-5-1.7-11(a)(2);and 3. A purchase order has been issued by the Purchasing Department. Contract No. 41-2015 Page 1 of 6 0 SECTION II. STATUS OF CONTRACTOR Contractor shall be deemed to be an independent contractor and is not an employee or -agent of the City of Richmond. SECTION III. COMPENSATION City shall pay Contractor the sum of Two Hundred Thirty -Six Thousand Nine Hundred Forty -Five Dollars and Zero Cents ($236,945.00) for such recycling truck, delivered. SECTION W. TERM OF AGREEMENT This Agreement shall become effective when signed by all parties and shall continue in effect until completion of the project (delivery of truck complying with specifications). Notwithstanding the term of this Agreement, City may terminate this Agreement in whole or in part, for cause, at any time by giving at least five (5) working days written notice specifying the effective date and the reasons for termination which shall include but not be limited to the following: a. failure, for any reason of the Contractor to fulfill in a timely manner its obligations under this Agreement; b. submission of a report, other work product, or advice, whether oral or written, by the Contractor to the City that is incorrect, incomplete, or does not meet reasonable professional standards in any material respect; c. ineffective or improper use of funds provided under this Agreement; d. suspension or termination of the grant funding to the City under which this Agreement is made; or e. unavailability of sufficient funds to make payment on this Agreement. In the event of such termination, the City shall be required to make payment for all work performed prior to the date this Agreement is terminated, but shall be relieved of any other responsibility herein. This Agreement may also be terminated, in whole or in part, by mutual Agreement of the parties by setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. SECTION V. INDEMNIFICATION AND INSURANCE Contractor agrees to obtain insurance and to indemnify the City for any damage or injury to person or property or any other claims which may arise from the Contractor's conduct or performance of this Agreement, either intentionally or negligently; provided, however, that nothing contained in this Agreement shall be construed as rendering the Contractor liable for acts of the City, its officers, agents, or employees. Contractor shall as a prerequisite to this Agreement, purchase and thereafter maintain such insurance as will protect it from the claims set forth below which may arise out of or result from the Contractor's operations under this Agreement, whether such operations by the Page 2 of 6 Contractor or by any sub -contractors or by anyone directly or indirectly employed by any of them, or by anyone for whose acts the Contractor may be held responsible. Coverage Limits A. Worker's Compensation & Statutory Disability Requirements B. Employer's Liability $100,000 C. Comprehensive General Liability Section 1. Bodily Injury $1,000,000 each occurrence $2,000,000 aggregate Section 2. Property Damage $1,000,000 each occurrence D. Comprehensive Auto Liability Section 1. Bodily Injury $1,000,000 each person $1,000,000 each occurrence Section 2. Property Damage $1,000,000 each occurrence E. Comprehensive Umbrella Liability $1,000,000 each occurrence $2,000,000 each aggregate SECTION VI. COMPLIANCE WITH WORKER'S COMPENSATION LAW Contractor shall comply with all provisions of the Indiana Worker's Compensation law, and shall, before commencing work under this Agreement, provide the City a certificate of insurance, or a certificate from the industrial board showing that the Contractor has complied with Indiana Code Sections 22-3-2-5, 22-3-5-1 and 22-3-5-2. If Contractor is an out of state employer and therefore subject to another state's worker's compensation law, Contractor may choose to comply with all provisions of its home state's worker's compensation law and provide the City proof of such compliance in lieu of complying with the provisions of the Indiana Worker's Compensation Law. SECTION VII. COMPLIANCE WITH INDIANA E-VERIFY PROGRAM REQUIREMENTS Pursuant to Indiana Code 22-5-1.7, Contractor is required to enroll in and verify the work eligibility status of all newly hired employees of the contractor through the Indiana E-Verify program. Contractor is not required to verify the work eligibility status of all newly hired employees of the contractor through the Indiana E-Verify program if the Indiana E-Verify program no longer exists. Prior to the performance of this Agreement, Contractor shall provide to the City its signed Affidavit affirming that Contractor does not knowingly employ an unauthorized alien in accordance with IC 22-5-1.7-11 (a) (2). In the event Contractor violates IC 22-5-1.7 the Contractor shall be required to remedy the violation not later than thirty (30) days after the City notifies the Contractor of the violation. If Contractor fails to remedy the violation Page 3 of 6 within the thirty (30) day period provided above, the City shall consider the Contractor to be in breach of this Agreement and this Agreement will be terminated. If the City determines that terminating this Agreement would be detrimental to the public interest or public property, the City may allow this Agreement to remain in effect until the City procures a new contractor. If this Agreement is terminated under this section, then pursuant to IC 22-5-1.7-13 (c) the Contractor will remain liable to the City for actual damages. SECTION VIII. IRAN INVESTMENT ACTIVITIES Pursuant to Indiana Code (IC) 5-22-16.5, Contractor certifies that Contractor is not engaged in investment activities in Iran. In the event City determines during the course of this Agreement that this certification is no longer valid, City shall notify Contractor in writing of said determination and shall give contractor ninety (90) days within which to respond to the written notice. In the event Contractor fails to demonstrate to the City that the Contractor has ceased investment activities in Iran within ninety (90) days after the written notice is given to the Contractor, the City may proceed with any remedies it may have pursuant to IC 5-22-16.5. In the event the City determines during the course of this Agreement that this certification is no longer valid and said determination is not refuted by Contractor in the manner set forth in IC 5-22-16.5, the City reserves the right to consider the Contractor to be in breach of this Agreement and terminate the agreement upon the expiration of the ninety (90) day period set forth above. SECTION IX. PROHIBITION AGAINST DISCRIMINATION Pursuant to Indiana Code 22-9-1-10, Contractor, any sub -contractor, or any person acting on behalf of Contractor or any sub -contractor shall not discriminate against any employee or applicant for employment to be employed in the performance of this Agreement, with respect to hire, tenure, terms, conditions or privileges of employment or any matter directly or indirectly related to employment, because of race, religion, color, sex, disability, national origin, or ancestry. B. Pursuant to Indiana Code 5-16-6-1, the Contractor agrees: 1. That in the hiring of employees for the performance of work under this Agreement of any subcontract hereunder, Contractor, any subcontractor, or any person acting on behalf of Contractor or any sub -contractor, shall not discriminate by reason of race, religion, color, sex, national origin or ancestry against any citizen of the State of Indiana who is qualified and available to perform the work to which the employment relates; 2. That Contractor, any sub -contractor, or any person action on behalf of Contractor or any sub -contractor shall in no manner discriminate against or intimidate any employee hired for the performance of work under this Agreement on account of race, religion, color, sex, national origin or ancestry; That there may be deducted from the amount payable to Contractor by the City under this Agreement, a penalty of five dollars ($5.00) for each person for each calendar day during which such person was discriminated against or intimidated in violation of the provisions of the Agreement; and Page 4 of 6 4. That this Agreement may be canceled or terminated by the City and all money due or to become due hereunder may be forfeited, for a second or any subsequent violation of the terms or conditions of this section of the Agreement. C. Violation of the terms or conditions of this Agreement relating to discrimination or intimidation shall be considered a material breach of this Agreement. SECTION X. RELEASE OF LIABILITY Contractor hereby agrees to release and hold harmless the City and all officers, employees, or agents of the same from all liability which may arise in the course of Contractor's performance of its obligations pursuant to this Agreement. SECTION XI. MISCELLANEOUS This Agreement is personal to the parties hereto and neither party may assign or delegate any of its rights or obligations hereunder without the prior written consent of the other party. Any such assignment or delegation without the prior written consent of the other party shall be null and void. This Agreement shall be controlled by and interpreted according to Indiana law and shall be binding upon the parties, their successors and assigns. This document constitutes the entire Agreement between the parties, although it may be altered or amended in whole or in part at any time by filing with the Agreement a written instrument setting forth such changes signed by both parties. Both parties expressly agree that this document supersedes all previous negotiations, discussions, or conversations relating to the subject matter herein. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The parties hereto submit to jurisdiction of the courts of Wayne County, Indiana, and any suit arising under this Contract, must be filed in said courts. By signing this agreement, both parties are estopped from bringing any action in alternative courts or venues. The parties specifically agree that no arbitration or mediation shall be required prior to the commencement of legal proceedings in Wayne County Circuit or Superior Court. Any person executing this Contract in a representative capacity hereby warrants that he has been duly authorized by his or her principal to execute this Contract. In the event of any breach of this Agreement by Contractor, and in addition to any other damages or remedies, Contractor shall be liable for all costs incurred by City due to the enforcement of this Agreement, including but not limited to City's reasonable attorney's fees. In the event that an ambiguity or question of intent or a need for interpretation of this Agreement arises, this Agreement shall be construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. If any portion of this agreement is declared unenforceable by a court or tribunal, all other portions shall remain in full force and effect. Page 5 of 6 IN WITNESS WHEREOF, the parties have executed this Agreement at Richmond, Indiana, as of the day and year first written above, although signatures may be affixed on different dates. "CITY" THE CITY OF RICHMOND, INDIANA by and through its Board of Sanitary Commissioners Sue Miller, President filbert Klose, Vice President Greg ens, Member Date: y" /y- /4 APPROVED: Sarah L. Hutton, Mayor Date: J "CONTRACTOR" BEST EQUIPMENT CO., INC. Title Secretary/Treasurer Date: AUril 20. 2015 Page 6 of 6 LODAL MAG 20SPLIT - DETAILED SPECIFICATION LIST (All Specifications Subject to Change without Notice) PREPARED BY: William Harris MAKE: Lodal MODEL: EVO-MAG20 G.V.W.: 39,600 Lbs. W.B.: 145" ENGINE: MAKE: C =ruins L-Series FUEL: Number 2 Diesel NUMBER OF CYLINDERS: Six GROSS BRAKE HORSEPOWER: 300 AP ® 2200 RPM TORQUE 800 Ft. Torque TRANSMISSION: MAKE: Allison MODEL: RDS-3500 FORWARD SPEEDS: 5 REVERSE SPEEDS: One TRANSMISSION SHIFT INTERLOCK: Allison Transmission Shift Interlock TRANSMISSION COOLER: Radiator bottom tank FRONT A=- MADE: Mentor MODEL: MX 23 Front Drive Steer RATED CAPACITY: 23,000 Lbs. DIFFERENTIAL LOCK: Yes; Air Shift option to activate CARRIER: 6.14 Ratio SUSPENSION: Spring SIZE: 4' a 54" LEAVES: Ten CAPACITY AT GROUND: 20,400 Lbs. - 10,200 Lbs. each spring POWER STEERING:Ross Steering Gear STEERING CYLINDER: 2.5" x 12" Stroke SHOCK ABSORBERS: Heavy Duty -Direct Acting DRIVE SHAFT: SINGLE: Spicer 1710 Series w/glide cote spline 1 EXHIBIT A_ PAGE TRANSFER CASE: REAR SUSPENSION: WEIGHT: (Approx.) FRAME: BRA E:FS: Pressure Pressure FRONT WFIEELS: STANDARD TTRES: MAKE: MODEAL: RATIO: TYPE: RATED CAPACITY: FRONT AXLE: REAR AXLE: TARE WITHOUT OPTIONS: TYPE: FRONT DRUM SIZE: REAR DRUM SIZE: AIR COMPRESSOR: SIZE: LOW AIR PRESSURE INDICATOR: AIR RESERVOIRS: PARKING BRAKES: SERVICE BRAKES: ABS: AIR RESERVOIR: PARKING BRAKES: SERVICE BRAKES: TYPE: SIZE: TYPE: SIZE: FRONT AXLE BRAND FRONT TIRE SIZE: REAR AXLE BRAND: REAR TIRE SIZE: 2 Meritor T-2111 1:1 Lodal Independent Wheel Suspension Walking Beam 20,000 Lbs. 17,200 Lbs. 7,500 Lbs. 24,700 I-bs. Utilized Construction Full Air - S-Cam Type 16'A " x-b" 16'A'x6" Wabco 18.0 Cubic Foot per Minute Red Light and Audible Alarm Five-4,750 Cubic Inches of Displacement Type 30 Front Axle Mounted All Four Wheels - Variable Setting - Lever Control Wabco 4 comer Five-4,750 Cubic Inches of Displacement Spring Brake on Front Axle All Four Wheels - Variable Setting - Lever Control Pressed Steel Disc 22.5" Diameter x 12.25' Width 10 Studs - 1 1/8' Diameter Holes - 11 1/4' Bolt Circle Tubeless Type Pressed Steel Disc 22.5' Dia. x 12.25' Width 10 Stud 10 Stud ® 1 1/8" Dia. Holes - 11 1/4" Bolt Circle, Tubeless Type Goodyear G286 Radials 16.5 x 22.5 - 18 Ply Rated Tread - All Season Goodyear G286 Radials 16.5 x 22.5 -18 Ply Rated Tread - All Season EXHIBIT � PAGE-QF S ELECTRICAL TYPE' Alternator SYSTE�.M: MAKE: Delco Remy OUTPUT: 135 AMPS BATTERY: Two (2) 12 Volt Maintenance Free 1850 Cold cranking AMPS total LIGHTS• All Department of Transportation Requirements: FLEE , TANS: QUANTITY; TYPE. One (1) Steef'Reciangular, Left Side Mount CAPACITY.I. 70 Gallons OIL REIMVOIR: TYPE: Steel Rectangular, Right side Mount CAPACITY: 56 Gallons OIL LEVEL & TEWERATURE GAUGE; RearSide of Tank STAIIQI?Al2D ENGINE RADIATOR: 1020 Square inches of Core Area SPECK it:ATIONS; RADIATOR LOCATION. Clear of Cab RADIATOR FAN: 28" "Hydraulic motor,drim CHARGE AIR COOLER: 638 Square Inches, of Core Area CHARGE AIR COOLER LOCATION: Front of Engine CHARGE AIR COOLER FAN.: . 24" $eft Driven AIR CUAM: pry Type: LUBE OIL FILTERS:. FuU.Fkaw CRANKSHAFT ADAPTER: For 1350 Dri*eline,to Rump GOVERNOR: Variable Speed MUFFLER % PARTICULATE; FILTER: Verd* stack BUMFSR: H.D. Front, per with step-npAo#clies BUMPER: High Density with step-up niches HYDRAULIC PUMP: 31 GPM a 1400 RPM - 3000 F.S.I. Pressure Rated HYDRAULIC CONTROL VALVE:: 50 ;GPM Capacity - 3500 PSI Pressure _ Rated OVERALL LENGTH: 28' 6r TRAVEL H81GHT I I' 6" OVERALL WIDTH' 9$ 7/8' TURNING RADIUS: Outside Front Bumper. 320 TURNING RADIUS: Outside Front Tire 27' TAILGATE CLEARANCE: Heights When Open 16120 3- EXHIBIT -A- PAGE , OF CAB STANDARDS: Dual steering with a three (3) position tilt wheel for standup or sit-down drive on the left side. The right steering wheel is in a fixed position for standup drive only. 6,200 Lbs. test roller chain transfer drive. Cab Ventilating Fans Air Horn Hopper Night Light Battery Kill Switch Roof Vent Flip down restraint bars for left and right door openings Low entry 18' step in — step out on both sides Sliding doors (aside) with locks to hold doors open or closed 6642 square inches of tinted flat safety glass (10 windows) Dual sun visors Windshield' Washer (Air Operated) Single electric horn (operates from either steering wheel) Right and left flip up seats (padded undersides) left seat adjustable Dual seat belts Padded headliner Dual recirculating heaters with boosted defrost — 30,000 BTU each Instrument and console panels hinged for serviceability Two flat and one convex mirror on RH side. One flat and convex LH side. Operator storage compartments behind seats Dual electric windshield wipers Glove compartment Audible back up and tailgate alarm Dashboard instruments - speedometer with odometer; tachometer; oil pressure gauge; dual air pressure gauges; water temperature gauge; transmission temperature gauge; hour meter; fuel gauge and voltage gauge. Warning light module - low air; oil pressure; park brake; excessive transmission and engine temperature, tailgate open; neutral indicator. Elevated driving controls (brake and throttle) in addition to floor controls (brake and throttle) on -left side. ELECTRICAL STANDARDS: Dual headlights Directional signals with constant hazard switches — mounted on each steering wheel. Front marker lights Back up lights Tail and stop lights Clearance lights Cab reading light Dome light Rear flashing amber lights 4 EXHIBIT PAGE q OFF BODY STANDARDS: extending NOT Body - 20 cubic yards high compaction w/ vertical patrician, split 60 / 40, and full eject Unloading of both commodities. Hoppers - 1.25 cubic yards total capacity - 50 — 50 Split 23" wide x 48" long x 32" deep 60 — 40 Split <60 side> 26" wide x 48" Iong x 32" deep <40 side> 18" wide x 48" long x 32" deep Each side of body shall have its own independently functioning tailgate with seals Vertically 48" above the body floor. Tailgate will have a single locking hook under the floor and in the center of the tailgate. Tailgate locks shall be interlocked with packing mechanism such that the packer will Function when the locks are open. A manual over ride will be provided to eject Body payload. Packing Cylinders - Dual 2 stage double acting telescope cylinders 3000 PSI rated, compaction stage - 5.25 inch bore x 57.25' stroke-130,0001b platen thrust at 3000 PSI Ejection Stage - 4.25 inch bore x 54.50 inch stroke, 85,000 lb. platen thrust at 3000 PSI hydraulic pressure. Utility Box: 44" wide x 44" long x 6" high ENGINE ASSEMBLY: Complete engine power module assembly on 'slide in end slide out" sub frame. Power module assembly on sub frame complete with hydraulic pump, engine radiator and fan shroud assembly, complete engine, torque convertor and automatic dmsmission. PAINT STANDARDS: Imron Paint White (one color) OPTIONAL EQUIPMENT: Amber Strobe Lights Tailgate Mounted Backup Camera with In -Cab Mounted Adjustable 7-inch Flat Screen Bendix Air Dryer AD-9 Engine Block Heater AM FM Radio Cassette Differential bock Silicone Hoses 5 EXHIBIT PAGE OF Et] FEBRUARY 24, 2015 I LOAM r E?�QUIPMEN'i Prepared Especially For RICHMOND, 1,,N wr i ri Split Body Recycling Truck bodal EVO-MAG 20 FOR $236,945 EACH www.BestEquipnlentC o .way 4MEMiOMAa1731-MMXPUROUSFS:ff#m&,%andDownsmmakepurdusesimmmTwM9o+amx t'Jmpy«icd«+ratlsa9"remroen<ale lyssefaenad>tatm<onaucH,AeasaanyGancewiuiSotopunfiassngb/UxodghnlpsMd* "gscut IEXHIBIT 13 PAGE SOP fo PROPOSAL SHEET One (D Lodal Mag_20 60140 Split Body Recyciing Brand, Year and Model Number: 2015 Lodal Mag 20, 60/40 Split Body_ Price of Unit: $ 236, 945.00 Price firm for How Long? Estimated Delivery Time (after bid awarding/P.O.) • Example of estimate - 3 months... . 30 Days 120-180 days ARO Price to include all shipping, handling and set up charges. To be delivered to Richmond Sanitary District, 2380 Liberty Avenue, Richmond, 1N. 47374 during regular business hours of Monday through Friday from 7:30A.M. to 3:OOP.M. -- excluding holidays Please include ALL WARRANTY inforipation with bid. Mar* Dahlmann, Secretar /Treasurer Best Equipment Co Inc. Company Name 5550 Poindexter Dr. Company Address 317-823-3050 Phone Number February 20, 2015 Date Charles Parsley Contact Person Indianapolis, IN 46235 City, State, Zip 6 EXHIBIT Z PAGE __OF b 9st 1917 /nd/ana: 5550Poindex'erOri /ndianapo /ndlana 46235 0 7) MMO O s fBQp/372237B /ax f317/ B233060 r ❑ Ohlo r /23S9AbbeyRoad North Royalty, Ohio 44/38 f440/237VS13'# fBB293232378s lax f440/237-3765 Pub/ic iYo�ks✓rlfun/c/pa!/ConlraclarEqu�Jvmen! Spec/a//s!s Sa/es •Parts • SWAM • Leas/ng •Flnancing 9/i��Lv1�� f L•/li' �y 11� SeiNnq/nd/ana, Oh/a, Ken/ucky& WeslVig/nia Best Equipment Co., Inc. stands by and will support Lodal's warranty, Best Equipment Co., Inc. guarantees that any defective components discovered within a one year period following the date of equipment acceptance shall be replaced by the -vender at no cost to the city. Yea deserve the BEST / Sarleiftgle 0AWYO11;7_a / S1MO1SW&epe1s / LillerCo17lro/i 01",XSl / Yaro'lyBSteCo/%lioli / Se10erC/easels / ONW&MO0IeB/7ea / Wives: bes/equlpme�/cv. com EXHIBIT PAGE 3 OF b LODAL, INC. PRODUCT`WARRANTY SCHEDULE BASIC PRODUCT WARRANTY: 12 Months or 2;000 Hours, whichever occurs first. FRAME WARRANTY (EVO & EC0 Series Trucks Only): 60 Months or 10,000 Hours, whichever occurs first. LODAL DRIVE TRAIN COMPONENT WARRANTY IN ADDITIONTO BASIC WARRANTY ('EVO & ECO Series Trucks Only): ENGINES: CUMMINS ENGINE (ISLG CNG) Base:, -2 Yrs /6,250'Hrs/250,000 Ml,.whichever occurs first CUMMINS ENGINE (ISL9) Base: 2 Yrs/6,250 Hrs/250,000 MI, Whichever occurs first NAVISTAR ENGINE (MauxForce. DT): Base: 2 Yrs/5,000 Hrs/40 000 Mi I AXLE: Meritor MX 23-160: Two (2) years/unlimited mileage/parts and labor, TRANSFER CASES ROCKWELLTRANSFER CASE (T-2111): One (1) year/unlimited mileage/parts.onlyi. TRANSMISSION: , :Allison transmBsiort (RDS-3500) Three (3) years/unfimited mileage/100% parts and labor. s LObAL, INC. PRODUCT WARRANTY CERTIFICATE:. THIS WARRANTY IS ES. PRESSLY IN LIEU OF ALL OTHER WARRANTIES AND REPRESENTATION, EXPRESSED OR li�lIPU.Eo, iNCLIM" G BUT NOT LIMITED TO, tMPLIED WARRANTY'OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARID OF ALL OTHER OBLIGATIONS ;OR LIABILITIES ON: THE PART OF THE DIrSTRIBUTOR.: 'DISTRIBUTOR NEITHER ASSUMES NOR AUTHORIZES ANY OTHERPERSON TO ASSOMEFORIT ANY OTHER LIABILITY IN CONNECTION WITH SUCH'PRODUCTS LODAL, INC. warrants each new LODAL product sold by them to be free from defects In material and workmanship under normal use and service'fvr the. perlods,: mileage or hours specified. LIMITATIONS; LODAL, ING's 6.11 ligstion: is I{mited to replacanlent or repair,..pt its option, and FOB its factory, of such parts Which are acknowledged by it to be defective. Incase of defective assernblies, factory rebuilt units can be used in eXch nge instead of their repair: The replaced parts or assembl(es shall bect�me the property of LOIJAL. "�farranty repairs performed by the distributor's ship in accordance with the terms -of the warranty set forth ;herein are free of 2 EXHIBIT � PAGE �OF % charge. Warranty repairs don constitute an extension of the original warranty period for the vehicle or a part thereof. NO PAYMENT OR OTHER COMPENSATION WILL BE MADE FOR TRANSPORTATION CHARGES OR COSTS OF INSTALLATION, REPLACEMENT, FIELD REPAIR OR OTHER CHARGES RELATED TO REPLACING PRODUCTS OR RETURNING PRODUCTS TO LODAL, INC.. NO PAYMENT OR OTHER COMPENSATION_ WILL BE MADE FOR INCIDENTAL EXPENSES INCLUDING, BUT NOT LIMITED TO, TOWING, TELEPHONE, TRANSPORTATION, LODGING, OR INDIRECT OR CONSEQUENTIAL DAMAGE INCLUDING, BUT NOT LIMITED TO, DAMAGE OR INJURY TO PERSONS OR PROPERTY OR LOSS OF REVENUE WHICH MIGHT BE PAID, INCURRED OR SUSTAINED BY REASON OF THE FAILURE OF ANY PART OR ASSEMBLY WHICH MAY BE REPLACED IN ACCORDANCE WITH THE TERMS OF THIS WARRANTY. Warranty consideration can only be given if the deficiency is brought to the attention of LODAL, INC., or an authorized LODAL distributor, immediately after discovery. In no event shall the buyer be entitled to incidental or consequential damages of any kind. EXCLUSIONS: The warranty shall not apply to: 1. ENGINE: The engines used In LODAL trucks are warranted by their respective manufacturer. (Refer to the engine manufacturer's warranty statement furnished with every LODAL truck:) 2. TRANSMISSION: The transmission used in LODAL trucks. Is warranted by Its' respective manufacturer. (Refer to the transmission manufacturer's warranty statement furnished with every LODAL truck.) 3. TIRES: Tires are covered by separate warranties of their respective manufacturers. 4. ODOMETER READING: Any. product on which the odometer has been disconnected or the mileage reading has been altered and the product's actual mileage cannot be readily determined. S. HOUR METER READING: Any product on which the hour meter has been disconnected or the hours reading has been altered and the product's actual running hours cannot be readily determined. 6. LOAD WEIGHTS: Defects which are caused by exceeding the maximum permissible loading weights for the product or any of its axles or components. 7. APPLICATION: The responsibility of supplying the correct application or specification information on a product sold to the customer belongs to the sales point. Warranty claims will not be accepted for product application problems such as replacement of incorrect axle or transmission gear ratios, failures of component parts of products being operated In excess of factory rated load capacities, or the use of a product for a purpose for which It was not Intended. 8. DAMAGES: Damages due to accidents, misuse, negligence, improper operation, storage or transport, improper or Insufficient maintenance services. LODAL, INC. Service Procedures must be followed. 9. MAINTENANCE: Normal maintenance services including, but not limited to, adjustments of engine, injection pump, transmission, brakes, wheel balance and alignment, linkage, as well as all adjustments, diagnosis and test time. 10. ALTERATIONS- Any product which shall have been repaired or altered outside of a LODAL, INC. authorized service center in any way so as to adversely affect, in LODAL, INC.'s judgement, its stability or reliability, or which has been subject to misuse, negligence or accident, or to any product which shall have been operated at excessive speed, or loaded beyond the factory rated load capacity. 11. UNAUTHORIZED REPAIR: Any part of the product which fails, malfunctions, or does not perform as a result of misuse, negligence, accident, non -authorized repairs or alterations. 3 EXHiBITB_ PAGE 5-- OF e, 12. IMPROPER REPAIR: Repair work which must be repeated due to improper diagnosis or repairs performed by a distributor (commonly called "come -back"). 13. PARTS: Parts which are subject to consumption during their normal service life and customarily replaced during normal maintenance service, including, but not limited to, oil and fuel filters, light bulbs, brake linings and drums and soft goods such as seals, packing, gaskets, 0-rings and soft metallic elements. 14. NONGENUINE PARTS: Any product which has been repaired by use of parts and accessories, as well as major assemblies and exchange units, which are substandard to genuine LODAL, INC. replacement parts, and which cause a product orsystem to fail, are not covered. 15. OPTIONAL EQUIPMENT: Any part of the product which fails, malfunctions, or does not perform as a result of improper conversion or installation of special products or equipment by other manufacturers or suppliers. 16, ALIGNMENT: Alignment and balancing of tires, or changing of front axle settings. 17. GLASS: Glass breakage or scratches unless positive physical proof of a manufacturing responsibility can be J established. 18. ENVIRONMENTAL DAMAGE: Pans made out of cloth or leather (upholstery, etc.) wood, rubber, synthetics, paint or chrome which have been affected by exposure to the elements or chemical influence Including, but not limited to, road salts, industrial fall -out, or the use of improper cleaners, polishes and/or waxes. 19. DOWN TIME: Loss of product use, loss of time, inconvenience, commercial loss, operator layover expense, or consequential damages of any kind. 20. PREMIUM LABOR: Premiums for overtime or shift differential. 21. MISCELLANEOUS EXPENSE: Road service, towing, meals lodging, telephone calls, travel time, loss of cargo, downtime, shop supplies, tube oil, lubricants, sealers, anti -freeze, filter elements. Labor performed by a non - approved location is not covered by warranty, except where specifically allowed by LODAL, INC. NOISE EMISSION WARRANTY — LODAL, INC. warrants to the first person who purchases this product and to each subsequent purchaser that this product was designed, built and e_ quipped to conform at the time of sale to such first purchaser with all applicable U.S. EPA noise control regulations. This warranty is not limited to any particular part, component or system of the product. Defects in the design, assembly or any part, component or system of the product which at the time of sale to such first purchaser, caused noise emission levels to exceed federal standards are covered by this warranty for the life of the vehicle. Failures which arise as a result of tampering rather than from defects in the design, assembly, or any part, component, or system of the product are not covered by this warranty. The manufacturer, LODAL, INC., has reserved the right to make any changes in design or to make additions to, or upon Its product, without incurring any obligations to install the same on products previously built. 4