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Remedy Agreement <br /> Between Indian River County Utilities (IRCU) <br /> and Elster AMCO Water, LLC (Elster) <br /> lster agreeso provide IRCU w1--- 9 evoQ4 meters-consisting ofl=86 two-i-n—c- m-eters=2-three <br /> inch meters and 1 four inch meter in accordance with the following schedule: <br /> 72 new meters by August 1, 2013 <br /> 72 new meters by August 15, 2013 <br /> 45 new meters by August 31, 2013 <br /> Elster will supply the new meters using the change to the manufacturing process that will address <br /> the carbon heat tinting in the weld zones of the 304 stainless steel body components. IRCU will <br /> detach the sacrificial anodes from the existing meters, remove the existing meters, attach the <br /> sacrificial anodes to the new meters per the Elster supplied instructions, and install the new <br /> meters. Barring unforeseen events, weather issues, etc., IRCU anticipates that it will be able to <br /> install the new meters over a period of approximately 30 days. During the sacrificial anodes <br /> installation process, Elster will periodically inspect IRCU's installation of the sacrificial anodes. <br /> Unless Elster notifies IRCU of sacrificial anodes installation defects in writing within ten <br /> business days of an inspection, it shall not be a defense to any warranty claims thereafter that the <br /> sacrificial anodes were initially installed incorrectly. If Elster notifies IRCU of any installation <br /> defects, IRCU shall have the option of correcting the alleged installation defect, and Elster shall <br /> have the option of inspecting the corrective work. If IRCU performs the corrective work, it shall <br /> notify Elster of such fact in writing. Unless Elster notifies IRCU of defects in the corrective <br /> work in writing within ten business days after receipt of such notice, the initial installation of the <br /> sacrificial anode shall be deemed to be correct. Both parties shall exercise good faith in the <br /> implementation of this process. <br /> IRCU agrees to install the new meters with insulating bolts furnished by Elster. <br /> Elster agrees to equip the 189 new meters with the evoQ4 encoder modules. <br /> IRCU agrees to purchase the 189 encoder modules at Elster's cost of$202.00/ module and the <br /> following will apply: <br /> • IRCU will pay half of the total cost for the modules 60 days after the first new meter is <br /> installed. This equates to a$19,089 initial payment. <br /> • IRCU will pay the remaining$19,089 on the twelve month anniversary date of the last <br /> meter installation provided that no more than three meters do not conform to applicable <br /> warranties prior to the twelve month anniversary date of the last meter installation, due to <br /> a breach of the standard meter warranty terms set forth in and attached hereto as Exhibit <br /> A("Meter Warranty"). If four or more meters do not conform to applicable warranties <br /> during such time period due to a breach of the Meter Warranty, IRCU will have no <br /> obligation to pay the remaining $19,089. <br /> Attachment#1 / � <br />