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<br /> <br />1 <br /> <br />PURCHASE AGREEMENT <br />SINGLE UNIT <br /> <br />This Purchase Agreement (together with all attachments referenced herein, the “Agreement”), made and entered into by and <br />between MacQueen Equipment, Inc., a Minnesota corporation d/b/a MacQueen Emergency Group (“MacQueen”), and the <br />City of Elk River, a municipal entity (“Customer”) is effective as of the date specified in Section 3 hereof. <br /> <br />1. Definitions. <br />a. “Product” means the fire apparatus and any associated equipment furnished for the Customer by MacQueen pursuant <br />to the Specifications. <br />a. “Specifications” means the general specifications, technical specifications, training, and testing requirements for the <br />Product contained in the MacQueen Proposal for the Product prepared in response to the Customer’s request for <br />proposal. <br />b. “MacQueen Proposal” means the proposal provided by MacQueen attached as Exhibit C prepared in response to the <br />Customer’s request for proposal. <br />c. “Delivery” means the date MacQueen is prepared to make physical possession of the Product available to the Customer. <br /> <br />2. Purpose. This Agreement sets forth the terms and conditions of MacQueen’s sale of the Product to the Customer. <br /> <br />3. Term of Agreement. This Agreement will become effective on the date it is signed and approved by MacQueen’s authorized <br />representative pursuant to Section 20 hereof (“Effective Date”) and, unless earlier terminated pursuant to the terms of this <br />Agreement, it will terminate upon the Customer’s Acceptance and payment in full of the Purchase Price. <br /> <br />4. Purchase and Payment. The Customer agrees to purchase the Product specified on Exhibit A for the total purchase price of <br />$585,993 (“Purchase Price”). Prices are in U.S. funds. <br /> <br />5. Agreement Changes. The Customer may request that MacQueen incorporate a change to the Products or the Specifications <br />for the Products by delivering a change order to MacQueen; provided, however, that any such change order must be in writing <br />and include a description of the proposed change sufficient to permit MacQueen to evaluate the feasibility of such change <br />(“Change Order”). Within seven (7) business days of receipt of a Change Order, MacQueen will inform the Customer in writing <br />of the feasibility of the Change Order, the earliest possible implementation date for the Change Order, of any increase or de crease <br />in the Purchase Price resulting from such Change Order, and of any effect on production scheduling or Delivery resulting from <br />such Change Order. MacQueen shall not be liable to the Customer for any delay in performance or Delivery arising from any <br />such Change Order. A Change Order is only effective when counter-signed by MacQueen’s authorized representative. <br /> <br />6. Cancellation/Termination. In the event this Agreement is cancelled or terminated by a party before completion, MacQueen <br />may charge a cancellation fee. The following charge schedule based on costs incurred may be applied: (a) 10% of the Purchase <br />Price after order is accepted and entered by MacQueen; (b) 20% of the Purchase Price after completion of approval drawings, <br />and; (c) 30% of the Purchase Price upon any material requisition. The cancellation fee will increase accordingly as costs are <br />incurred as the order progresses through engineering and into manufacturing. MacQueen endeavors to mitigate any such costs <br />through the sale of such Product to another purchaser; however Customer shall remain liable for the difference between the <br />Purchase Price and, if applicable, the sale price obtained by MacQueen upon sale of the Product to another purchaser, plus an y <br />costs incurred by MacQueen to conduct any such sale. <br /> <br />7. Delivery, Inspection and Acceptance. (a) Delivery. Delivery of the Product is scheduled to be within 1 (One) month of the <br />Effective Date of this Agreement. Risk of loss shall pass to Customer upon Delivery. Delivery shall be made and title shall pass <br />upon Customer’s complete fulfillment of its obligations arising under Section 4 hereof. (b) Inspection and Acceptance. Upon <br />Delivery, Customer shall have fifteen (15) days within which to inspect the Product for substantial conformance to the material <br />Specifications, and in the event of substantial non-conformance to the material Specifications to furnish MacQueen with wr itten <br />notice sufficient to permit MacQueen to evaluate such non -conformance (“Notice of Defect”). Any Product not in substantial <br />conformance to material Specifications shall be remedied by MacQueen within thirty (30) days from the Notice of Defect. In