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Whole cucumbers

for the separation of:

Foreign Material

Odenberg Quotation 00001134 AH

SentineSentineSentineSentinel Sorter l Sorter l Sorter l Sorter

September 28, 2012September 28, 2012September 28, 2012September 28, 2012

Bay View Foods,2628 N Huron Road

Pinconning, MI 48650

Boost ProductivityBoost ProductivityBoost ProductivityBoost Productivity

Boost Control



Sept. 28, 2012

Sentinel Sorter

Quotation 00001134 AH 1 Odenberg, Inc.

CONTACTS

Bay View Foods

Contact:

Phone no:

Fax no.

E-Mail:

Contact:

Phone no:

Fax no.

E-Mail:

:

Odenberg, Inc.

President: Ashley Hunter

Phone No: 916-371-0700 or 916 869 8484 ( mobile)

E-Mail: [email protected]

Sales Manager :Grant Ruggles

Phone No:


Project Manager: Doug Elmquist

Phone No: 916 869 1064




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Sentinel Sorter


1.0 APPROVALS

Proposal generated by Odenberg, Inc.

Raised by Position

Date

APPROVED BYAshley Hunter Position President

Signed Date

On behalf of Company

Attention of Position

Signed Date

Attention of Position

Signed Date



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Sentinel Sorter


TABLE OF CONTENTS

1.0 Approvals 2

2.0 INTRODUCTION 4

2.1 PROJECT 5

2.2 Sorting criteria / capacity 5

2.3 general specifications 6

2.3.1 Mechanical/Optical 6

2.3.2 Electronic/Software/User Interface 7

2.3.3 SCOPE OF SUPPLY 7

2.4

Operational Benefits: 9 2.5 FEATURES 9

2.6 Customer REsponsibilities 11

3.0 Commercial Details 11

TRAINING & COMMISSIONING 11

4.0 Odenberg Service 12

4.1 Commercial Terms and Conditions 12

4.1.1 Payment Terms 12

4.1.2 Pricing 12

4.1.3 Delivery 13

4.1.4

Warranty 13 4.1.5 Intellectual Property 13

4.1.7 Exclusions 13

4.1.8 CONDITIONS OF SALE 13

4.2 Site Services 13

4.2.1 Installation 13

4.2.2 Commissioning 14

4.2.3 Training 14

Attachment: Odenberg General Conditions of Sale



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Sentinel Sorter


2.0 INTRODUCTIONThe Odenberg Sentinel Sorter is the latest offering in a long line of proven multi-wavelength pulsed LED sortingmachines developed, manufactured and supported by Odenberg over the last 20 years.

The Sentinel Sorter uses its patented pulsed LED product illumination and the latest technology available inmicroprocessor hardware, multiple parallel DSP image processing and application specific software to produce aconsistent high efficiency sort. Sentinel Sorter features one or more high speed and powerful pneumatic rejectionsystem(s). The combination of purpose built illumination, optics, electronics and rejection systems coupled with productfeed system provides for a highly stable, user friendly and consistent performing sorting package with excellent sortingefficiencies. As with all Odenberg sorting designs, this product has also been designed and priced to offer a goodReturn on Investment (ROI).

Sorter OperationProduct to be sorted is fed from the customer supplied feed conveyor on to the Odenberg supplied feed conveyor.Product is spread and conveyed on a rugged PVC conveyor belt that ensures an even mono layer flow and uniform beltfill. At the discharge point of the conveyor the product cascades into the “viewing zone”.

The vision system inspects each object in flight, organic and inorganic through the use of high speed pulsed LEDlighting that illuminates the product in selected visible and Infra Red wavelengths of light. Reflected light returning fromthe falling product is captured by highly sensitive photo detectors. State of the art multiple parallel DSP imageprocessing and application specific software then processes the captured data producing a mapped (pixel) image ofeach piece of product in flight. Using Odenberg software, a matrix of pixels identifying product/defect is classified aseither organic or inorganic to separate good product from defective product and foreign material.

A simple intuitive touch screen interface allows the operator to simply raise or lower sensitivity to specific defect typeswith a single slider control while defect size can be also be set by pixel count o through a separate slider. Sortparameters can be saved to Program files that the operator can easily select as needed.

Calibration/normalization of the optical system is unnecessary for up to 6 months of operation.

Sentinel’s rejection system utilizes rugged high speed solenoid driven pneumatic valves and cylinders to control foodgrade plastic “fingers” so as to positively reject undesirable object(s) down one of the supplied rejection chute. TheSentinel Sorter is configured with one bank of rejecter fingers so as to create a two way sort (two discreet productstreams). Customer supplies the take away conveyor.

Accept stream product lands on the customer supplied “Accept” take away conveyor or chute.

The sorter, its feed system and necessary control and services panels are offered as a turn-key package.

The Sentinel Sorter is configured to generally remove 90%+ of a common population of foreign material diameter 6mm(1/4”) and greater with good in the bad of approximately 10% of reject stream depending on incoming defect level.Smaller pieces of foreign material can be rejected however sorting efficiencies vary by defect type. Note that with dirtyproduct contaminated with high levels of trash, the level of good product found in the reject stream could be as higher.



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2.1 PROJECT

This proposal concerns the conditions for purchase of a Sentinel Sorter. The Sorter can be used for sorting ofcucumbers so as to separate Foreign Material (FM). The Sentinel Sorter is configured to provide a two waysort.

Left to Right the above views show (left) Sentinel Sorter vision module and wiper system, (right) view of Touch

Screen interface. Bottom pictures show examples of rejected Foreign Material.

2.2 SORTING CRITERIA / CAPACITY

The Sentinel Sorter is configured to remove high percentages of gross defective product and foreign material.Sorter performance can vary by product variety, condition and cleanliness of the incoming product stream.Additionally, please note that specific (customer set) sort criteria may adversely affect sorter performance.Product must be adequately washed prior to optical sorting. The presence of excessive amounts of standingwater, steam, slurry or extraneous material can and will negatively impact sorter performance. Certain types offoreign material may be difficult to detect and/or reject. Consideration should be made for these conditions.

Product capacity is calculated using product weight per unit area. The capacity of the sorter is dependent on the

product size. An example of machine capacity is shown. Weigh per square foot should be confirmed forcustomers product.

CapacityBelt Speed: 350 fpmBelt Fill: 25%Bulk Density: 4.84 lbs/sq ft.A 60” Sentinel can then run 120,000 lbs/hr. pickles.



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* An uniform feed is required so as to provide an even feed one layer deep across the sorting conveyor.

Remove standing water as this can cause adverse sorting conditions.

Capacity of sorter can vary based on;Product sizeProduct varietySorter belt utilizationQuality of feed to the sorting conveyor

It is important to note that the actual belt fill achieved is dependent on the customers supply to the SentinelSorter conveyor and optimum sorting is achieved when product is layered one piece deep on the belt and isevenly distributed across the belt width.

Please note: When choosing the correct sized sorter for your application please keep in mind that the quoted“lbs./hour max.”, is based off extensive testing where different volumes of product and foreign material “persquare foot” have been tested to see what [if any] effect is seen on sorting efficiency. At a certain point toomuch product per square foot can “hide” or obliterate smaller pieces of FM making the sorter ineffective atdetecting/rejecting FM. The maximum “safe” lbs/square foot of product is then used to calculate the lbs/hourthroughput potential of a given sorter taking the belt width and belt speed into consideration. While this is anaccurate method of “sizing” a machine for an application it is still reliant upon the customer providing an even,uniform feed of product one layer deep across the full width of the sorting conveyor. Any stacking of product or“bottlenecking” caused by poorly sized or poor performing feed shaker can and will cause the lbs./square foot toexceed the calculated safe limit thus resulting in a drop in sorting performance and potentially missed reject[FM] material

2.3 GENERAL SPECIFICATIONS

The Sorter comprises a double sided vision system, a 40/60 channel rejection system, a 40”/60” flat beltconveyor and the systems panels. The following is a brief explanation of the major components.

2.3.1 MECHANICAL/OPTICAL

• Vision HardwareUsing a patented optical system the vision module is housed ina stainless enclosure. A multi-wavelength illumination sourceis

designed for high reliability and automatic calibration. Theoptical system is easily installed/removed.

• ConveyorThe Conveyor is a simple open design incorporating PVCbelting.

• Wiper SystemThis design incorporates a positive pneumatic-driven wiper system on each vision module. The wiperincorporates a water spray and its cleaning cycle is user programmable.



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• RejecterThe rejector assembly is pneumatically powered with individualrejection devices on 1 inch centres. This design is highlypositive and highly accurate. Individual rejection devices arereplaceable in less than 10 minutes. The newest generation ofelectro pneumatic valves are incorporated into the designensuring minimum cycle times for the rejection devices.

• System PanelsThe operator colour touch screen interface and various power supplies are enclosed in conveyormounted enclosures requiring minimum space and allowing excellent access for maintenance.

2.3.2 ELECTRONIC/SOFTWARE/USER INTERFACE

• Image Processing S/WUsing state of the art DSP technology in parallel with application specific image processingsoftware analyses each individual object for defective characteristics, area and size.

• Operator InterfaceKeeping user operation of this sorter as simple as possible extensive use is made of a colourtouch screen operator interface.

2.3.3 SCOPE OF SUPPLY

• ConveyorStainless steel frame containing a PVC 40“/60” wide conveyor running at up to 350ft./min. Conveyorsupplied with mounting locations for customer supplied support frame.

• SorterSingle vision module with a vision field of view of 40”/60” horizontally and an active backlight moduleare housed in stainless enclosures, rated to NEMA 4. A wiper system on each window is also supplied.

• Single Rejecter

One 40/60 -channel rejecter assembly mounts directly to conveyor frame.

• Services PanelTwo conveyor mounted services panels, rated to NEMA 4, houses various power supplies, touchscreen display and electrical control circuitry.



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Item Sentinel 40”/60”In-feed sorter feed conveyor 1x 40”/60” feed conveyorVision Module 1x 40”/60” wide with front and

view capabilityRejecter module(s) 1x 40/60 channel (2 way sort)Reject chute(s) 1xDivider 1x suppliedTouch Screen Interface 1x unit, removable.Power Panel 1x suppliedServices Panel 1x suppliedCalibration Plate 1x suppliedOdenberg oil (pneumatic, food

grade)

2x gallons supplied

Technical Manual 1x supplied. Electronic copiesavailable

Electrical Schematics Supplied. Located in PowerPanel

Lifting web strapping andshackles

Supplied attached to unit.

Customer training Provided during thecommissioning period. To bearranged with customer.

OPTIONAL SCOPE OF SUPPLYItem Sentinel 40”/60”

Spare Rejecter Module 1x 40/60” RejecterSpare Parts Kit Options include:

Basic: (conveyor essentials andbasic sorter consumables)

Detailed: Same as above +replacement panel, rejecter, wiperand vision system hardware.

Complete: Same as all the above+ a selection of PCB andprocessor boards.



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2.4 OPERATIONAL BENEFITS:

2.5 FEATURES

FeatureSentinel(40”/60”)

FeatureSpecification

SpecialNote

Sorter feedconveyor

40”/60” useable width All Stainless Steel constructionfeaturing endless PVC belt, a veryeffective belt tracking system, lowcontact slider bed. Internalconveyor belt spray bar is providedas standard. Drive is via dischargeroller shaft mountedmotor/gearbox.

Note: Suitable machineaccess must be providedfor in the line layout inorder to permit normalsanitation and

maintenance activities.*

Vision Module 40”/60” wide front viewsystem contained in a singlemodule. providing a true

optical resolution of 1/8” x1/8” (3mm x 3mm).Enhanced lighting systemhighlights dark objects.

Stainless Steel enclosure withLexan™ windows. Enclosure ispressurized to reduce

condensation build up

Rejecter 40”/60” wide featuring 40/60x high speed solenoid drivenpneumatic valves and 40/60x pneumatic cylinders.

Stainless Steel and Nylonconstructed Rejection fingermaterial is food grade Nylon.Rejecter body and covers are ofStainless construction. Valvebodies (non food contact) are ofBrass construction. Cylinderclevises are of corrosion resistantmaterials where appropriate.

Note: Suitable rejecteraccess must be providedfor in the line layout inorder to permit normalsanitation andmaintenance activities.*

• Increased Productivity – better control and flexibility

• Easier to use and operate

• Reduce sorting labor - typically 80% +

• Product sort performance information and analysis• Reduced Training

BENEFITS



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2.5 FEATURES continued…

Reject Chutes 40”/60” width Stainless Steel construction Part of sorter supportstructure.

Accept Streamdivider

40”/60” width divider withhorizontal adjustment.

All Stainless Steel construction Note: Final and idealdivider locationdetermined duringmachine commissioning.Correct position is basedon product size andshape and belt speed(fixed).

OperatorInterface

Touch screen interface. Multilanguage support capability.

Stainless Steel NEMA 4Xenclosure.

Enclosure is mounted ona lockable swivel mountallowing for positioningadjustment in two planes.Interface and mountingbracket may be located invarious locations on thesorter framework.

Power Panel Mounted on side of the supportframework. Orientation to beagreed upon with customer.

Stainless Steel NEMA 4X panelfeaturing Sorter On/Off,Conveyor Run/Stop, maindisconnect and E-Stop controls.Panel contains mains poweredpower supplies and voltageconditioners.

Customer may choosethe specific side locationof each of the Control andServices panels(mounted on either sideof the conveyorframework) at time of

order.Services Panel Mounted on one side of the

support framework. Orientationto be agreed upon withcustomer.

Stainless Steel Panel withLexan™ front viewing window.Panel contains air filtration,regulation and lubricationassemblies controlling varioussorter functions.

Panel contains pneumaticcontrols that handlerejecter and wiperfunctions as well aselectronic module drypressurization systemand pneumatic wiperdrive regulation andvalves. Additionally, thepanel contains watervalves utilized in thewindow wiper operation.

An externally mountedwater filter is alsosupplied.

Window Wipers Pneumatic system with integralspray bar.

Stainless Steel constructionwith pneumatic rod-lesscylinder drive and springtensioned wiper arm. Windowwetting achieved with asupplied Stainless Steel spraybar that spans the windowswidth.

Soft water supply stronglyrecommended for usewith this system.*

* Customer responsibility.



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2.6 CUSTOMER RESPONSIBILITIES

Item SentinelFeed conveyor to sorter feedbelt

Provide and install suitably sized Shaker with dewatering capability andnecessary transitions to sorter conveyor.

Reject take away conveyor Provide and install suitably sized and positioned Reject take awayconveyor and necessary transitions.

Accept take away conveyor Provide and install suitably sized and positioned Accept take awayconveyors and necessary transitions.

Sorter installation Install and level the sorting unit per Odenberg provided generalarrangement drawing.

Decking and Access Provide and install decking with adequate access to allow for sanitation

access and routine maintenance and repair to the sorter and its feedconveyor system. Provide and install (as required) drip pans anddrains.

Services Supply and connect required electrical, air and water connections priorto the arrival of commissioning technician.

Training Schedule staff training sessions in advance of Odenberg technicianarrival and indicate to Odenberg group size etc.

3.0 COMMERCIAL DETAILS

Sentinel 60” Sorter US$169,770

IncludesPulp GuardPowered roller dividerSize Sorting

Basic level Spare Parts kit (Contains essential conveyor spare parts). US $ 11,637

Note: Odenberg offers a range of spare parts packages to suit specific needs.

TRAINING & COMMISSIONING

Odenberg will provide an applications engineer for machine start up for up to 3 days at a cost of$2,520 labor and travel time. During this time, the engineer will commission the unit and conductcustomer training. Customer is expected to have all equipment installed, all utility services hooked upand product available for full production testing prior to arrival of the Odenberg engineer. Time delaysdue to customer not having completed above will be billed on an hourly basis. Air and groundtransportation, accommodation and subsistence will be for the customer’s account.

Approx 2 to 4 weeks later an applications engineer will make an additional visit at no charge for thetravel and labor costs to ensure machine operation is optimum and refresher training etc.



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For work outside the scope of the commissioning process (including future service calls) the followingOdenberg standard rates apply:

Travel (minimum one hour) @ US$65.00 round tripOn site time (minimum one hour) @ US$105.00

4.0 ODENBERG SERVICE

ODENBERG is dedicated to customer service & support. Our equipment is designed to meet the highestperformance and reliability standards – a key philosophy at Odenberg. We pride ourselves on our commitmentto the customer and in offering the highest quality and most reliable solutions. Our team of trained, intelligent,supportive and knowledge staff ensure you will maximize the value form your investmentService Rates are subject to change without notice.

The expenses for hotel accommodation, meals and local transport are to be borne by the customer, unlessotherwise noted. The customer is required to settle such expenses directly with the provider of the service(s),or, the customer will be invoiced at cost (in which case copy of vouchers will be attached to final invoice).

4.1 COMMERCIAL TERMS AND CONDITIONS

4.1.1 PAYMENT TERMS

Odenberg, Inc. agrees with the following payment terms:35% Down payment upon receipt of purchase order55% On readiness, prior to dispatch from the factory

10% On delivery

Remit Payment to: Odenberg, Inc.4038 Seaport BlvdWest Sacramento, CA 95691

4.1.2 PRICING

Prices are quoted EXW West Sacramento, California and are valid for 30 days. Sales tax is the responsibility ofthe customer and is to be paid at the time of installment for the purchase amount(s). The risk of loss of thegoods shall pass the Buyer as soon as goods are properly loaded on the carrier. The risk of loss shall not bealtered by the fact that the conduct of either party may constitute a default or breach.

Services Sentinel 40” Sentinel 60”

Voltage 3 Phase 460 VAC/ 60HZ/ 6 AMPS 460 VAC/ 60HZ/ 10 AMPS

Voltage Single Phase 110 VAC/ 60 HZ/ 15 AMPS 110 VAC/ 60 HZ/ 17 AMPS

Air Pressure 10 SCFM @ 90 psi dryinstrument quality air

15 SCFM @ 90 psi dryinstrument quality air

Water 0.25 gal. /min max @ 30 psiintermittent window andconveyor belt cleaning.

0.37 gal. /min max @ 30 psiintermittent window andconveyor belt cleaning.

Weight 2500 lbs. 3000 lbs.



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Prices are quoted in U.S. Dollars ($). All prices quoted exclude Duties, Value Added Taxes, Import Costs orRelated Taxes.

4.1.3 DELIVERY

Normal delivery is 18 - 20 weeks from receipt of written order date and assuming available production slotduring the requested time period. Delivery is EXW Odenberg West Sacramento.

4.1.4 WARRANTY

Six months warranty is included on all items except consumables and normal wear and tear parts. Odenbergwill replace components (if faulty) during the warranty period free of charge excluding labor and travelling costs.Customer caused failures or using the equipment in a manner which it was not designed for will negatewarranty on any items that fail as a consequence of same.

4.1.5 INTELLECTUAL PROPERTY

At all times Odenberg, Inc. will retain the full intellectual property rights on the equipment and the relateddocumentation. No technical documentation or information under any form will be given to a third party withoutwritten authorization of Odenberg, Inc.

4.1.7 EXCLUSIONS

Standard

• Connection or commissioning to any SCADA or similar package unless stated.• Erection / Installation• Civil structure• Supply and running of all mains services• All the counter flanges to connect the apparatus, Steam and condensate pipe connections•

Compressed air connection, Water drain connection, All valves not mentioned• Electric and pneumatic cross connections not specified within this offer• All builders work, including making good• Any item not specified within this offer

The specifications contained in this proposal are subject to change based on the customer’s final equipmentselection and the available installation and process information. Final equipment specifications will be ascontained in the supplied drawing package and equipment manuals.

4.1.8 CONDITIONS OF SALE

Odenberg’s Condition of General Sale applies and is attached. This quotation / terms and conditions becomethe exclusive agreement between the parties for the goods and/or services quoted herein, when buyer’s order isreceived and accepted by seller. Seller hereby expressly rejects any and all terms in any purchase order orother document of purchaser which are in addition to, different from, or inconsistent with the terms andconditions in this quotation. Additional and/or different terms and conditions proposed by buyer shall not beapplicable unless accepted in writing by seller.

4.2 SITE SERVICES

4.2.1 INSTALLATION

The customer needs to ensure safe access to sorter for installation, operation and maintenance (Health &Safety guidelines)



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4.2.2 COMMISSIONING

Start-Up, Calibration and Specialised Technical TrainingCustomer will insure that the machine is installed correctly according to the Odenberg specifications.

4.2.3 TRAINING

Product / Process and Operator TrainingOnce the sorter is fully operational, the on-site engineer will train the local staff in operating the machine, and tocarry out comprehensive product/process training.



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ODENBERG, INC. - GENERAL CONDITIONS OF SALE

Unless Otherwise Specifically Provided:

1. PRICE

As shown on proposal (attached), subject to these General Conditions of sale.

2. DEFINITIONS

(a) Odenberg. – Odenberg, Inc.

(b) User -The Company named on the Odenberg proposal: (attached)

(c) Machine- The equipment described in the proposal (attached)

3. SALE AND DELIVERY

Unless otherwise stated EXW. Sacramento, California. User to pay all freight and insurance charges from EXW point, and al l demurrage,

rigging and unloading charges at destination point.

4. TAXESAll applicable taxes and assessments are to be paid by User, except income taxes of Odenberg.

5. WARRANTY

Odenberg. warrants equipment of its "own manufacture" to be free from defects in materials, and workmanship for a period of six (6)

months from shipment. THIS WARRANTY EXTENDS ONLY TO USER, AND IN NO EVENT SHALL ODENBERG. BE LIABLE FOR

PROPERTY DAMAGE SUSTAINED BY A PERSON DESIGNATED BY THE LAW OF ANY JURISDICTION AS A THIRD PARTY

BENEFICIARY OF THIS WARRANTY OR ANY OTHER WARRANTY HELD TO SURVIVE ODENBERG. DISCLAIMER. Replacement

parts provided under the terms of this warranty are warranted for the remainder of the warranty period applicable to the Machine, as if

such parts were original components of the Machine. With respect to equipment, materials, parts and accessories manufactured by

others. Odenberg will undertake to obtain for User the full benefits of the manufacturer's warranties. BUT IN NO EVENT SHALL USER

OR ANY OTHER PERSON HAVE ANY REMEDY AGAINST Odenberg. FOR BREACH OF A MANUFACTURER'S WARRANTY. A

defect in a part shall not condemn the whole Machine. THE WARRANTY DESCRIBED IN THIS PARAGRAPH SHALL BE IN LIEU OFALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO ANY IMPLIED WARRANTY OR

MERCHANT, ABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

6. EXCLUSIVE REMEDY

Upon written notification received by Odenberg within the above stated warranty period of any failure to conform to the above warranty,

upon return prepaid to Odenberg to verify said nonconformity, Odenberg shall repair or replace said original part or component without

charge to User. Odenberg shall ship the repaired or replaced part or component at User's expense. Correction of non-conformities, in the

manner and for the period of time provided above, shall constitute fulfillment of all liabilities of Odenberg. to User or any other person

whether based upon contract, tort (including negligence), strict liability or otherwise.

7. LIMITATION OF LIABILITY

IN NO EVENT SHALL Odenberg BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES NOR

SHALL Odenberg BE LIABLE FOR ANY LOSS OF PROFIT, LOSS BY REASON OF PLANT SHUTDOWN, NON-OPERATION OR

INCREASED EXPENSE OF OPERATION, LOSS OF PRODUCT OR MATERIALS WITH RESPECT TO THIS CONTRACT OR

ANYTHING DONE IN CONNECTION THEREWITH (INCLUDING WITHOUT LIMITATION, SERVICES PROVIDED PURSUANT TO

PARAGRAPH 8 BELOW). WHETHER BASED UPON CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY OR

OTHERWISE.

8. INSTALLATION

Unless otherwise specifically agreed buyer assumes full responsibility for the installation and start up of the equipment and for any loss

or damage of whatever nature to persons or property.

9. ACCELERATION



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If the terms of payment for the equipment allow for installment payments. Buyer agrees that Odenberg. at its discretion may accelerate

and make due and payable all remaining installments if (a) Buyer shall fail to make one or more installments when due or (b) any of the

events constituting cause for automatic cancellation under paragraph 13 (b) below shall have occurred before or after delivery of theequipment.

10. SHIPMENTS

Shipment dates are not guaranteed. Odenberg. shall not be liable for delayed delivery or non-delivery for any reason. Where shipment is

deferred at User's request for more than thirty (30) days beyond the originally scheduled date of shipment, the order will be subject to

invoicing, payment and storage charges from scheduled date of shipment, or in lieu thereof, interest on any unpaid balance at 1 1/2% per

month.

11. ACCEPTANCE

This proposal shall not be a binding contract on either party until payment of the advance with order and acceptance by an officer or an

authorized employee of Odenberg.

12. THIRD PARTY LEASES

If User elects that Odenberg. sell the machine to a third party who will lease the Machine to the User, Odenberg must have an

acceptable purchase order from that third party lessor prior to shipment.

13. CANCELLATION

(a) Odenberg. may cancel this order before shipment if User refuses to authorize shipment within thirty (30) days after notice that the

Machine is ready, or fails to make any payments or execute any documents required prior to shipment, (b) This proposal and any order

are automatically cancelled if user has become insolvent or bankrupt or admits in writing its inability to pay its debts as they mature, or if

proceedings are commenced by Odenberg. against user in any jurisdiction under a provision or chapter of any bankruptcy act, or if User

suffers the appointment of a receiver or trustee or makes and assignment for the benefit of creditors. (c) User may not cancel except

upon payment of twenty percent (20%) of the total price of the machine, plus Odenberg non-recoverable costs (including incidental and

consequential damages) attributable to this order, plus restocking charges to be determined by Odenberg.

THE REMEDIES SET FORTH HEREIN ARE EXCLUSIVE WITHOUT REGARD TO WHETHER ANY DEFECT WAS DISCOVERABLE

OR LATENT AT THE TIME OF DELIVERY OF THE MACHINE TO THE USER. The essential purpose of this exclusive remedy shall beto provide User with repair to or replacement of parts or components that prove to be defective within the period and under the conditions

previously set forth. This exclusive remedy shall not have failed of its essential purpose (as that term is used in the Uniform Commercial

Code) provided Odenberg. remains willing to repair or replace defective parts or components within a commercially responsible time after

it obtains actual knowledge of the existence of a particular defect.

14. SECURITY INTEREST

User represents that the Machine is equipment to be used for business, and shall remain personally. User grants Odenberg. security

interest in the Machine to secure the payment of the purchase price. User will not sell, lease, transfer, or encumber the Machine and will

keep it free from any and all liens and security interests until Odenberg. has been paid in fu ll. If User does not purchase from Odenberg.

but elects to lease the Machine from a third party, Odenberg. security interest herein granted shall be fully discharged upon receipt by

Odenberg. of the unpaid balance of the purchase price from the third party. Upon default Odenberg. shall have all the remedies available

to it under the Uniform Commercial Code and other applicable laws of the State in which the Machine is located and shall be entitled to

all legal costs, reasonable attorney's fees, and all other reasonable expenses and costs permitted by law which are incurred byOdenberg. in enforcing its remedies. In addition to its other remedies, Odenberg., may require User to make the Machine available at a

place designated by Odenberg. which is reasonably convenient to both parties. User agrees: (a) to sign all financing statements and

other instruments or documents that Odenberg. may reasonably believe are necessary to protect this security interest: (b) if movement of

the Machine to another location is allowed under any other documents relating to this Proposal, to give Odenberg. at least thirty (30)

days advance written notice of any such changes in location: (c) to inform Odenberg. at any change in the law of the jurisdiction in which

the Machine is located, whether such change is statutory or otherwise,

which change could affect the continued status of the Machine as personalty; and (d) to procure and maintain insurance on the Machine

for its full purchase price, the policy to name Odenberg. as loss payee.

15. PATENTS

Odenberg. agrees to indemnify and hold harmless User from any and all costs, expenses and damages resulting from any claim of

infringement of a United States patent by reason of its use of the Machine (of Odenberg. own designs and in condition supplied and



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Sentinel Sorter


manner contemplated by Odenberg.) or from any suit resulting from any such claim, provided that User promptly notifies Odenberg. of

any such claim or the institution of any such suit. User shall offer Odenberg full and exclusive right of defense in any such suit to the

extent the Machine is involved therein.In the event of any such claim or suit, Odenberg. shall have the right to modify or replace the Machine or to remove it and refund to User

the purchase price thereof less fifteen percent (15%) for each full year from the date of shipment of the Machine. NOTWITHSTANDING

THE FOREGOING ODENBERG.'S CUMULATIVE LIABILITY FOR INDEMNIFICATION UNDER THIS PROVISION SHALL NOT

EXCEED THE PURCHASE PRICE OF THE MACHINE. This paragraph.

16. OSHA LAWS

The Williams-Steiger Occupation Safety and Health Act of 1970 (OSHA) and like state and local laws and all regulations issued under

such laws, are designed to assure a safe place to work and apply primarily to the employer, not the equipment manufacturer Odenberg.

will work with User to find technically feasible answers to compliance problems. Odenberg. has taken OSHA and similar laws into

account in the design of its equipment with the objective that when such equipment is placed in an appropriate environment it will enable

operator User to comply with the applicable OSHA and similar requirements. However, because compliance is significantly affected by

many factors over which Odenberg. has little control (such as installation, plant layout, building acoustics, material processed, processing

procedures and supervision and training of Employees). Odenberg. does not represent or warrant that equipment sold by it complies with

OSHA or any like state or local law or regulation, and the cost of modifications and responsibility for compliance are User's responsibility.

17. MODIFICATION OR WAIVER OR PROVISIONS

This proposal cannot be modified except by agreement in writing signed by Odenberg. A waiver or repeated waiver by Odenberg. of any

provisions or the breach of any provision shall not constitute a further waiver of such provision or breach.

18. MERGER CLAUSE

These General Conditions of Sale, including the proposal and Machine specifications attached hereto, constitutes the final written

expression of the terms of this proposal and is complete and exclusive statement of those terms, and any and all representations,

promises, warranties or statements by Odenberg. agent or representative or distributor that differ in any way from the terms of this written

Proposal shall be given no force or effect.

19. INTEREST

Overdue accounts are subject to monthly charge of 1-1/2% if invoice terms are not followed.

20. EXPENSES OF DISPUTE

If any dispute areas as to this contract following payment and acceptance in the manner provided for in paragraph 11, in addition to such

other relief to which any party may be entitled, whether or not a lawsuit is commenced, the prevailing party to such dispute shall be

entitled to recover its reasonable expenses, including attorney's fees and costs, arising from such dispute.

21. LAW

The construction and performance of this contract, of which this document is a part shall

be governed by the law of the State of California).

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