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Elster AMCO Water LLC <br /> General Terms and Conditions of Sale <br /> Page 4 of 6 <br /> (b) Elster AMCO Water LLC shall have no obligation hereunder and this provision shall not apply to : (1 ) <br /> any <br /> other equipment or processes, including Equipment or Processes which have been modified or combined with <br /> other equipment or process not supplied by Elster AMCO Water LLC ; ( ii ) any Equipment or Process supplied <br /> according to a design , other than an Elster AMCO Water LLC design , required by Purchaser , ( iii ) any products <br /> manufactured by the Equipment or Process ; ( iv) any patent issued after the date hereof; or (v ) any <br /> action <br /> settled or otherwise terminated without the prior written consent of Elster AMCO Water LLC . <br /> (c) If, in any such action , the Equipment Is held to constitute an Infringement, or the practice of any Process <br /> using the Equipment is finally enjoined , Elster AMCO Water LLC shall , at Its option and its own <br /> expense, <br /> procure for Purchaser the right to continue using said Equipment, or modify or replace it with non - infringing <br /> equipment or, with Purchaser' s assistance, modify the Process so that it becomes non- infringing ; or remove it <br /> and refund the portion of the price allocable to the infringing Equipment . THE FOREGOING PARAGRAPHS STATE <br /> THE ENTIRE LIABILITY OF Elster AMCO Water LLC AND EQUIPMENT MANUFACTURER FOR ANY PATENT <br /> INFRINGEMENT. <br /> (d) To the extent that said Equipment or any part thereof is modified by Purchaser, or combined by Purchaser <br /> with equipment or processes not furnished hereunder ( except to the extent that Elster AMCO Water LLC is a <br /> contributory infringer) or said Equipment or any part thereof is used by Purchaser to perform a process <br /> not <br /> furnished hereunder by Elster AMCO Water LLC or to produce an article, and by reason of said modification , <br /> combination , performance or production , an action is brought against Elster AMCO Water LLC , Purchaser <br /> shall defend and Indemnify Elster AMCO Water LLC In the same manner and to the same extent that Elster <br /> AMCO Water LLC would be obligated to indemnify Purchaser under this " Patent Indemnity" provision . <br /> 11 . Limitation of Liability . <br /> (a ) In no event shall Elster AMCO Water LLC , its suppliers or subcontractors be liable for special <br />, <br /> indirect, Incidental or consequential damages , whether in contract, warranty , tort, negligence, strict liability <br /> or otherwise, including , but not limited to , loss of profits or revenue, loss of use of the Equipment <br /> or any <br /> associated equipment, cost of capital , cost of substitute equipment, facilities or services, downtime costs, <br /> delays, and claims of customers of the Purchaser or other third parties for any damages . Elster AMCO Water <br /> LLC's liability for any claim whether in contract, warranty, tort, negligence, strict liability, or otherwise for any <br /> loss or damage arising out of, connected with, <br /> ( b) or resulting from this Agreement or the performance or breach thereof, or from the design, manufacture, <br /> sale, delivery, resale, repair, replacement, installation , technical direction of installation , inspection , operation <br /> or use of any equipment covered by or furnished under this Agreement, or from any services rendered <br /> in <br /> connection therewith , shall in no case (except as provided In the section entitled " Patent Indemnity" ) exceed <br /> one- half ( 1/2 ) of the purchase price allocable to the Equipment or part thereof or Services which gives rise to <br /> the claim . <br /> (c) All causes of action against Elster AMCO Water LLC arising out of or relating to this Agreement or the <br /> performance or breach hereof shall expire unless brought within one year of the time of accrual thereof. <br /> (d ) In no event, regardless of cause, shall Elster AMCO Water LLC be liable for penalties or penalty clauses of any <br /> description or for Indemnification of Purchaser or others for costs, damages, or expenses arising out of or <br /> related to the Equipment and/Services . <br /> 12 . Laws and Regulations. Elster AMCO Water LLC does not assume any responsibility for compliance with <br /> federal , state or local laws and regulations, except as expressly set forth herein , and compliance with any laws <br /> and regulations relating to the operation or use of the Equipment or Software is the sole responsibility of the <br /> Purchaser . All laws and regulations referenced herein shall be those in effect as of the Proposal date . In the <br /> event of any subsequent revisions or changes thereto, Elster AMCO Water LLC assumes no responsibility for <br /> compliance therewith . If Purchaser desires a modification as a result of any such change or revision , it shall be <br /> treated as a change per Article 4 . Nothing contained herein shall be construed as Imposing responsibility or <br /> liability upon Elster AMCO Water LLC for obtaining any permits, licenses or approvals from any <br /> agency <br /> required in connection with the supply, erection or operation of the Equipment . This Agreement shall <br /> be <br /> governed by the laws of the State of New York, but excluding the provisions of the United Nations Convention <br /> on Contracts for the International Sale of Goods and excluding New York law with respect to conflicts of law . <br /> Purchaser agrees that all causes of action against Elster AMCO Water LLC under this Agreement shall be <br /> brought in the State Courts of the State of New York, or the U . S . District Court for the Southern District <br />of <br /> New York . If any provision hereof, partly or completely , shall be held invalid or unenforceable , such invalidity <br /> or unenforceability shall not affect any other provision or portion hereof and these terms shall be construed <br /> as if such invalid or unenforceable provision or portion thereof had never existed . <br /> FR7224 Issue : 01 10/23/ 12 DCR12 -040 <br /> • <br /> elster <br />