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<br />6. Cancellation/Termination <br /> In the event this Agreement is cancelled or terminated by a party before completion, MacQueen may charge <br /> a cancellation fee. The following charge schedule based on costs incurred may be applied: (a) 10% of the <br /> Purchase Price after order is accepted and entered by MacQueen; (b) 20% of the Purchase Price after <br /> completion of approval drawings, and; (c) 30% of the Purchase Price upon any material requisition. The <br /> cancellation fee will increase accordingly as costs are incurred as the order progresses through engineering <br /> and into manufacturing. MacQueen endeavors to mitigate any such costs through the sale of such Product to <br /> another purchaser; however, Customer shall remain liable for the difference between the Purchase Price and, <br /> if applicable, the sale price obtained by MacQueen upon sale of the Product to another purchaser, plus any <br /> costs incurred by MacQueen to conduct any such sale. <br /> <br /> <br />7. Delivery, Inspection, and Acceptance <br /> <br /> Delivery <br /> Delivery of the Product is scheduled to be within thirteen and one half (13.5) months of the Effective Date of <br /> 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. <br /> <br />Inspection and Acceptance <br />Upon Delivery, Customer shall have fifteen (15) days within which to inspect the Product for substantial <br />conformance to the material Specifications, and in the event of substantial non-conformance to the material <br />Specifications to furnish MacQueen with written notice sufficient to permit MacQueen to evaluate such non- <br />conformance (“Notice of Defect”). Any Product not in substantial conformance to material Specifications shall <br />be remedied by MacQueen within thirty (30) days from the Notice of Defect. In the event MacQueen does not <br />receive a Notice of Defect within fifteen (15) days of Delivery, Product will be deemed to be in conformance <br />with Specifications and Accepted by Customer. <br /> <br /> <br />8. Notice <br /> Any required or permitted notices hereunder must be given in writing at the address of each party set forth <br /> below, or to such other address as either party may substitute by written notice to the other in the manner <br /> contemplated herein, by one of the following methods: hand delivery; registered, express, or certified mail, <br /> return receipt requested, postage prepaid; or nationally recognized private express courier: <br /> <br />MacQueen Equipment, LLC Customer <br />1125 7th Street East City of Elk River <br />St. Paul, MN 55106 13065 Orono Pkwy <br />Elk River, MN 55330 <br /> <br /> <br />9. Standard Warranty <br /> The equipment sold herein will be manufactured by Pierce Manufacturing, Inc. and any warranties are <br /> attached hereto as Exhibit B and made a part hereof. Any additional warranties must be expressly approved <br /> in writing by Pierce’s authorized representative and MacQueen. <br /> <br /> <br /> Disclaimer <br /> Other than as expressly set forth in this agreement, neither Pierce, its Parent Company, Affiliates, <br /> Subsidiaries, Licensors, suppliers, distributors, dealers, including without limitation, MacQueen Equipment, <br /> LLC, or other respective officers, directors, employees, shareholders, agents or representatives, make any <br />2 <br /> <br />