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Elster AMCO Water LLC General Terms and Conditions of Sale Page 3 of 6 Equipment (excluding Software, Spare Parts and Refurbished or Repaired Parts) shall end twelve (12) months after installation or eighteen (18) months after date of shipment, whichever first occurs. The War-r-anty=Reined-y=P-er-iod=for=new-spare parts shall end twelve (12) months-after_date_of_shipment. Th.e_._ _ __ Warranty Remedy Period for refurbished or repaired parts shall end ninety (90) days after date of shipment. The Warranty Remedy Period for Services shall end ninety (90) days after the date of completion of Services. (b) Equipment and Services Remedy. If a nonconformity to the foregoing warranty is discovered in the Equipment or Services during the applicable Warranty Remedy Period, as specified above, under normal and proper use and provided the Equipment has been properly stored, installed, operated and maintained and written notice of such nonconformity is provided to Elster AMCO Water LLC promptly after such discovery and within the applicable Warranty Remedy Period, Elster AMCO Water LLC shall, at its option, either (i) repair or replace the nonconforming portion of the Equipment or re -perform the nonconforming Services or (ii) refund the portion of the price applicable to the nonconforming portion of Equipment or Services. If any portion of the Equipment or Services so repaired, replaced or re -performed fails to conform to the foregoing warranty, and written notice of such nonconformity is provided to Elster AMCO Water LLC promptly after discovery and within the original Warranty Remedy Period applicable to such Equipment or Services or 30 days from completion of such repair, replacement or re -performance, whichever is later, Elster AMCO Water LLC will repair or replace such nonconforming Equipment or re -perform the nonconforming Services. The original Warranty Remedy Period shall not otherwise be extended. (c) Exceptions. Elster AMCO Water LLC shall not be responsible for providing working access to the nonconforming Equipment, including disassembly and re -assembly of non-Elster AMCO Water LLC supplied equipment, or for providing transportation to or from any repair facility, all of which shall be at Purchaser's risk and expense. Elster AMCO Water LLC shall have no obligation hereunder with respect to any Equipment which (i) has been improperly repaired or altered; (ii) has been subjected to misuse, negligence or accident; (iii) has been used in a manner contrary to Elster AMCO Water LLC's instructions; (iv) is comprised of materials provided by or a design specified by Purchaser; or (v) has failed as a result of ordinary wear and tear. Equipment supplied by Elster AMCO Water LLC but manufactured by others is warranted only to the extent of the manufacturer's warranty, and only the remedies, if any, provided by the (W manufacturer will be allowed. (d) Software Warranty and Remedies. Elster AMCO Water LLC warrants that, except as specified below, the Software will, when properly installed, execute in accordance with Elster AMCO Water LLC's published specification. If a nonconformity to the foregoing warranty is discovered during the period ending one (1) year after the date of shipment and written notice of such nonconformity is provided to Elster AMCO Water LLC promptly after such discovery and within that period, including a description of the nonconformity and complete information about the manner of its discovery, Elster AMCO Water LLC shall correct the nonconformity by, at its option, either (i) modifying or making available to the Purchaser instructions for modifying the Software; or (ii) making available at Elster AMCO Water LLC's facility necessary corrected or replacement programs. Elster AMCO Water LLC shall have no obligation with respect to any nonconformities resulting from (i) unauthorized modification of the Software or (ii) Purchaser- supplied software or interfacing. Elster AMCO Water LLC does not warrant that the functions contained in the software will operate in combinations which may be selected for use by the Purchaser, or that the software products are free from errors in the nature of what is commonly categorized by the computer industry as "bugs". (e) THE FOREGOING WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF QUALITY AND PERFORMANCE, WHETHER WRITTEN, ORAL OR IMPLIED, AND ALL OTHER WARRANTIES INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USAGE OF TRADE ARE HEREBY DISCLAIMED. THE REMEDIES STATED HEREIN CONSTITUTE PURCHASER'S EXCLUSIVE REMEDIES AND Elster AMCO Water LLC'S ENTIRE LIABILITY FOR ANY BREACH OF WARRANTY. 9. Certificate of Conformity Elster AMCO Water LLC hereby certifies that the order described heron has been processed to conform with all the applicable specifications called for on the purchase order. 10. Patent Indemnity. (a) Elster AMCO Water LLC shall defend at its own expense any action brought against Purchaser alleging that the Equipment or the use of the Equipment to practice any process for which such Equipment is specified by Elster AMCO Water LLC (a "Process") directly infringes any claim of a patent of the United States of America and to pay all damages and costs finally awarded in any such action, provided that Purchaser has given Elster AMCO Water LLC prompt written notice of such action, all necessary assistance in the defense thereof and the right to control all aspects of the defense thereof including the right to settle or otherwise terminate such action in behalf of Purchaser. FR722-A Issue: 01 10/23/12 DCR12-040 ester �. d