Gema USA Inc.
4141 West 54th Street
Indianapolis, IN 46254
USA

Terms and Conditions
The following Terms and Conditions shallapply to this proposal and to any resulting
agreement between the parties arising fromthis proposal unless specifically modified
and agreed to by both parties.

b) Gema equipment will be painted inaccordance with Gema standards.
Requirements for special painting is at
Buyer’s expense and may affect Gema’s
ability to meet quoted delivery

1. Purchase Price and Standard System 5. Material and Labor to be Furnished
Payment Terms
by Buyera) The purchase price for this system, as
outlined in this proposal, shall bepayable in the current funds of theUnited States of America, exclusive of
any applicable sales or use taxes, duties
or imposts.
b) Pricing outlined in this proposal issubject to acceptance within thirty (30)days of the date of this proposal.
c) All shipments are Incoterms 2020 CIP,
our factory or other shipping points,
unless otherwise stated in the proposal.
d) All orders are subject to a handling fee
not to exceed one-half percent (½%) of
the purchase price.
e) Payment terms are as outlined in the
proposal.
f) All customers are subject to a credit
approval and a signed Security
Agreement or letter of credit may berequired before the equipment isshipped.
g) Gema reserves the right to temporary
suspend or terminate the contract if its
execution would violate any Trade
Compliance sanctions or Anti-Boycottlaws issued by the United States, by theEU, by Switzerland or by any othercountry. Gema will not be liable to pay
any penalty or damages that derive fromthe suspension or termination of thecontract. In case of termination of thecontract Gema will return the advanced
payments that have been received, after
deducting the expenses that havealready been sustained.

2. Credit Approvala) This proposal and any resulting
agreement between the parties arisingfrom this proposal, is not binding oneither party until final credit approval byGema USA Inc.

3. Deliverya) Current delivery time for this system isoutlined in the proposal.
b) Gema USA Inc. reserves the right toadjust the purchase price to reflectcurrent prices if shipment of theequipment occurs, through no fault ofGema, more than six (6) months after
date of receipt of this proposal.

4. Equipment Supplied by Gemaa) Gema USA Inc. will furnish
documentation for proper installation,
operation, and maintenance. Where
applicable, electrical and pneumatic
schematics required for connection
and/or general layouts will be supplied
for proper connection and installationa) Buyer shall furnish all equipment notlisted in our proposal including, but notlimited to, conveyors, lighting, fire
protection, ventilating equipment, allwiring and pneumatic connections
necessary for the installation andoperation of the equipment.
b) Buyer shall furnish all labor necessary
for the installation of the equipment,
unless otherwise stated in the proposal.
c) Installation supervision, if not listed in
our proposal, is available for additional
cost at prevailing rates.

6. Changes and Delays, Cancellations,and Withdrawal of Proposala) If Buyer causes changes to be made,delays or interrupts the progress of work,
fails to provide necessary drawings orinformation, required labor, materials,
facilities, or apparatus, or does notadequately prepare the job site, he will,at Gema USA Inc.'s request, reimburse
Gema for all reasonable costs andexpenses caused thereby. If any suchacts or omissions of Buyer delay thedelivery of equipment, Buyer will
nevertheless make any payment due as
outlined in agreement payment terms.
"Costs and expense" shall include anynecessary additional costs for travel andlodging, and any necessary overtime
work on Saturdays, Sundays, holidays,or hours in excess of eight per day.
These labor costs will be charged atGema's standard and overtime rates.
b) Buyer may cancel all or any part of hispurchase hereunder by written notice toGema USA Inc and is subject to acancellation fee. Gema may cancel allor any part of its sale hereunder upon
notice to Buyer, if Buyer becomesbankrupt or insolvent or makes anassignment for the benefit of creditors or
if a receiver is appointed with authority totake possession of all or any part of theBuyer's assets. In the event of suchcancellation by Buyer or Gema, all workon the canceled portion of thisagreement will be stopped as promptly
as reasonably possible. If a cancelation
notice is provided one of the following
applies:• Within 60 days of original purchaseorder date, Buyer will pay Gema’s fullcosts incurred in the performance of
this agreement (including engineering,labor, materials, overhead andrestocking) plus a cancellation chargeof 20% of the agreement purchaseprice.

• Beyond 60 days from original
purchase order date and more than
60 days prior to scheduled shipment,
Buyer will forfeit all payments made toGema based upon contract payment
terms up and full costs incurred in theperformance of this agreement(including engineering, labor,materials, overhead and restocking)plus a cancellation charge of 20% of
the agreement purchase price.
• Within 60 days of scheduled
shipment, Buyer will pay Gema the fullcontract price.

7. Installation Supervisiona) Gema USA Inc. installation supervisionand start-up assistance is available toensure the proper placement ofequipment, assembly of components
and connection of fluid, air and electriclines. Please refer to our proposal detailto determine if installation supervision is
included in the base price.
b) Any installation supervision days
included in the proposal are based on
straight time rates (maximum eight (8)hour work days, Monday throughFriday).
c) Unless otherwise specified, installation
days utilizing Saturday, Sunday or
Holidays will be according to theprevailing overtime rates, (i.e.: 1.5 days
for Saturday, 2 days for Sundays and 3days for all National and Gema
recognized holidays). A Purchase Orderor Addendum may be required to coveradditional installation supervision.
d) Depending on Buyer's particularrequirements, additional supervision
and/or overtime, weekend and holiday
supervision is available at additionalcosts. Prevailing rates can beascertained by calling the Gema Service
Department at 1-(800)-628-0648.

8. Fire Detection / Explosion
Suppression
Any approved system is to be determined by"The Authority Having Jurisdiction", andmust be provided by the Buyer. Gema USA
Inc. equipment is designed in accordancewith the national standard, NFPA-33, current
edition. This may include therecommendation to purchase an approved
flame detection system in conjunction withany “fixed” or automatic applicationequipment.
Explosion suppression equipment suitable tothe installation location, the intended use of
the equipment, or any requirements thatmight be imposed by the local authority
having jurisdiction, is the responsibility of thebuyer. Any service agreement required by
explosion suppression equipment OEM
manufacturer is the responsibility of thebuyer. Warranty claims for the explosion
suppression equipment will require proof ofcertification and/or active service agreementwith OEM supplier of explosion suppression
equipment.

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Gema USA Inc.
4141 West 54th Street
Indianapolis, IN 46254
USA

Some approved form of automatic fire
protection, suitable for use in the installation,
MUST be provided. This may be water
sprinklers, CO2, chemical, or any approved
spark detection apparatus, depending on thenature of the installation and the type ofmaterials being handled by the spraying
system and in the area around the spraying
system. The local fire code, plant equipment
standards, and insurance carrier's
recommendations may influence the type ofequipment selected by an individual user.
The Buyer is strongly urged to see N.F.P.A.
Bulletin No. 33 and OSHA Guidelines.
If automatic fire protection is not available,
the spray system should not be operated. If
an Automatic Fire Protection System is not
functioning properly, the Buyer assumes all
responsibility for all injury and/or damage
resulting from operation of the Gema USA
Inc. spray system. Gema will not be liable forany such injury and/or damage.

9. System Interlocks
N.F.P.A. Bulletin No. 33 and OSHA
Guidelines require all fixed electrostatic
apparatus to be interlocked by automaticmeans to rapidly de-energize the highvoltage elements under any of the following
conditions:a) Stoppage of ventilating fans or failure ofventilating equipment from any cause.
b) Stoppage of the conveyor carrying
goods through the high voltage field,
unless stoppage is required by the sprayprocess.
c) Occurrence of excessive current leakage
at any point on the high voltage system.
d) De-energizing the primary voltage input
to the power supply.
The local fire code, local plant equipment
standards and insurance carrier
recommendations may influence how theserules are implemented. The Buyer is strongly
urged to read N.F.P.A Bulletin No. 33 andOSHA Guidelines.
Gema USA Inc. equipment is furnished withsafety interlocks. Electrical connections
should be made as per instructions
contained in the assembly procedure.
IF INTERLOCKS ARE BYPASSED FOR
ANY REASON, BUYER ASSUMES ALLRESPONSIBILITY FOR
ALL INJURY AND/OR DAMAGE
RESULTING FROM OPERATION OF THE
GEMA SPRAY SYSTEM.

10. Warrantya) The warranty terms are defined in the
proposal and begin the date theequipment is shipped. During thewarranty term, Gema USA Inc. will repair
or replace any equipment which is
defective in material or workmanship.
This warranty applies provided that theequipment has been used andmaintained in accordance with Gema's
written safety and operating instructions
and has been used under normal
operating conditions.
b) Excluded from this Warranty is normal
wear and tear or damage caused bymisuse, abrasion, corrosion, negligence,
accident, faulty installation by the Buyer,or tampering which impairs normal
operation. Labor is excluded from thisWarranty.
c) Items such as seals, seats, O-rings,
diaphragms, deflectors, electrodeholders, filters, gun cables, etc., areconsidered normal wear items. The
warranties above only apply if thesecomponents fail due to defects inmaterial or workmanship.
d) Parts returned for warranty repair or
replacement will be examined upon
return. If examination indicates that thedamage is outside of the Warranty
expressed above, repairs or replacement
will be made at a reasonable charge.
e) Other than the obligation of Gema USA
Inc. expressly set forth herein, Gema
disclaims all warranties, expressed or
implied, including but not limited to, any
implied warranties of merchantability or
fitness for a particular purpose.
f) The foregoing constitutes Gema USA
Inc.’s sole obligation with respect todamages, whether direct, incidental orconsequential, resulting from the use or
performance of the equipment.
g) The use of other than Gema approved
parts voids all warranties.
h) Gema USA Inc. assumes noresponsibility for the quality of
performance of coatings or othermaterials used with Gema equipment;
and assumes no liability for injury,
damage to property or for consequential
damage for loss of goodwill, production,or income, which result from use or
misuse of the equipment by purchaser orothers.
i) Gema USA Inc. recommends a suitableapplication environment free of air born
contaminants, dirt, air flow drafts beprovided. Gema USA Inc. assumes noresponsibility for finish performance due
to external circumstances.

j) Operation of Gema USA Inc. supplied
equipment in environmental conditions
exceeding values outlined in technicaldrawings and/or manuals, provided withpurchase, will cause premature failure
and void the warranty.

11. Remedies for Non-Paymenta) Accounts that are more than thirty (30)days overdue shall incur interest charges
at the rate of 1.5% per month, (or thehighest legal rate if less) on the unpaidbalance. Equipment sold hereunder shallremain the property of Gema USA Inc.
until fully paid for and will not become
fixtures by attachment to the premises
where installed. If Buyer fails to makepayments required hereunder, Gemamay, at its option, without demand ornotice, repossess the equipment,
wherever located, such repossession to
be without prejudice to Gema's right topayment of the purchase price or to its
other remedies for breach. In the event
Gema repossesses any equipment,
Buyer will pay Gema’s full cost incurredin the performance of this agreement(including engineering, labor, materials,
overhead and restocking) plus acancellation charge of 20% of such fullcosts.

12. Security Agreementa) Buyer agrees that Gema USA Inc. shallobtain a security interest in theequipment to secure payments of sums
due hereunder.
b) Buyer authorizes Gema USA Inc. to filefinancing statements covering theequipment, signed only by Gema.
c) If a financing statement is filed, then atermination statement shall be
immediately filed by Gema USA Inc.,
upon receipt of the final payment.

13. Force Majeurea) Gema USA Inc. shall not be liable for
failure to furnish equipment and/or
installation supervision because of labor
disturbances, casualties, war or othercauses beyond the control of Gema.

14. Applicable Lawa) Should applicable law confer any rights
or impose any duties inconsistent with,or in addition to, any of the provisions of
this Agreement, the affected provisionsof this Agreement shall be considering
amended to conform to such law, but allother provisions hereof shall remain in
full force and effect without modification.
This Agreement shall be governed by,
and construed in accordance with, thelaws of the State of Indiana.

03/2022

Gema USA Inc.
4141 West 54th Street
Indianapolis, IN 46254
USA

Responsibilities of the Buyer
RESPONSIBILITIES OF THE
BUYER – Unless otherwise
specified, Purchaser shall:• Assume all charges for any changes
made after approval drawings are
returned to Gema.
• Unload equipment from carrier, uncrate(if necessary) and move to indoor
storage and/or installation site. (Note:
Outdoor storage may void warranty.)
All equipment to be moved through an
opening of at least 12’ X 12’. Any
shipping damage to the Gema supplied
equipment must be noted on the freightbill at the time of delivery. Resolution of
all claims and the replacement ofequipment will be the responsibility ofthe buyer.
• Installation, including:a) All labor, materials, tools andrigging for the entire and complete
mechanical and electricalinstallation of the equipment.
b) Site preparation including all
foundation work and any levelingof the floor.
c) All building alterations associatedwith installation of the equipment.
d) All required licenses, permits, andinspection required by any
governmental agency, and assure
conformance in arrangement andlocation to all regulation authority
requirements by Gema.
e) Provide utilities required for
installation of equipment,
including, but not limited to,wiring, piping, and sewer lines.
f)
Provide excavation, drainage,
foundations, masonry, concrete
work, fire and safety devices,
including all materials required inconnection therewith.
g) Assume responsibility for building
alterations, such as holes infloors, walls and roof, required forproper installation.
h) Provide clear access at
installation site, free of obstruction
and hazards.
i)
Provide installation facilities andutilities, including, but not limited
to, compressed air, electrical
power, lighting, water and fuel toaccommodate proper installation.

j)

Assume risk of loss due to fire,theft, or damage from negligent
handling following delivery.
k) Assume all liability for sales use,
process other taxes presently or
hereafter payable.
l)
Building electrical changes tobring electrical supply to thepowder coating area per
specifications.
m) Items which may not be includedin final specification that is
unknown at this time.
n) Provide qualified personnel toinstall the Gema supplied
Equipment.
o) Should it be necessary for Gema
representative to be at the
installation site, the buyer agrees
to pay for the Gema
representative(s) at the prevailingdaily rate (based on 8-hour day)plus expenses (excludes weekend
and Gema holidays), unlessotherwise outlined in the purchaseagreement.
• Provide and install any and all sprinkler
heads and systems, lighting fixtures,conveyors, support steel structures, allwire ways (cable trays), etc. needed forbooth wiring as well as pneumatic tube
runs, and any other equipment notincluded in the Bill of Material.
• Compliance with local, state andnational codes including NFPA Bulletin
33 and 68 and 69 (for cyclone
systems) as well as requirements ofBuyer's insurance carrier.
• Any additional explosion relief venting
to comply with local codes orregulatory agencies.
• Maintain any applicable quarterly
service inspection of explosion
suppression equipment as required byauthority having jurisdiction, National
Fire Protection Agency (NFPA)
guidelines, or explosion suppression
OEM equipment supplier.
• Allocate and provide time andpersonnel for training in the operationand maintenance of the equipment.
• Assume all charges for additional onsite visits caused by Buyer delays.
Additional on-site visits are billed atGema prevailing rates.
• The Gema equipment has been
designed to operate within the air
requirements as specified in our

proposal under normal operations.
Additional use of air blow off guns
and/or the operating of additional
equipment could require the use ofadditional air. The air requirement forcolor change is based on sequential
cleaning operations required only
during the color change process.
• Field electrical wiring (including laborand materials) to connect main power
drop to the Gema supplied equipment.
Purchaser is also responsible for theelectrical interlock (including labor andmaterials) between the Gemaequipment and the conveyor controller.
Purchaser is also responsible for field
electrical wiring (including labor andmaterials) between the equipment andany applicable master control panel,
encoder, part identification station,
explosion suppression system, fire
detection system and/or the safety
monitor panel.
• Pneumatic drops (including labor andmaterials) to all necessary Gemaequipment.
• When Explosion Suppression System
is purchased, one (1) 80-pound tank ofdry nitrogen is required prior to on-sitecommissioning.

SHIPMENT• If shipment occurs more than six (6)months from date of acceptance of
Buyer's order, due to delays caused byBuyer, Gema shall have the right toadjust the sales price.
• Any proposed changes in equipment
shipment schedule must be submitted
to Gema in writing forty-five (45) days
prior to the agreed upon ship date.
Buyer shall assume all shipping and/or
storage charges resulting from suchdelay should this notification not occur.
• If a truck is reserved by Gema andcancelled by Buyer and/or its agent, aper day charge of $500.00 per truck
will apply and be billed to Buyer. If adriver and truck arrive at the Buyers
plant and has to wait to be unloaded
beyond the normal two (2) hours freetime, the Buyer will be billed at a rate of$75.00 per hour until the truck is
unloaded.

03/2022

Gema USA Inc.
4141 West 54th Street
Indianapolis, IN 46254
USA

Recommended Operator Parameters and System Requirements
The following items are to be provided byBuyer unless otherwise stipulated in thecontract. These statements are
guidelines provided by Gema USA Inc. toassist in the evaluation of the existing
facilities and services to assure a
successful installation of the equipment
being purchased. The values indicated areapproximate and will vary somewhat
depending on the type of equipment
purchased.

1. Compressed Aira) Final air volume requirements will be
determined based on equipment
configuration. Estimates may befurnished upon request.
b) Pressure requirements (at drops):• Maximum pressure - 125 psi• Minimum pressure - 95 psic) Each air drop should be equipped with amanual shut-off valve and air regulator.
Each drop should be capable of aminimum air volume requirement shownon the pneumatic installation drawing to
be provided within 90 days of receipt oforder.
d) The pressure dew point of thecompressed air being provided must be
38oF or lower at 100 PSIG (this can beachieved by refrigerant or heatlessregenerative type dryers).
e) The quality of the compressed air being
provided should meet or exceed therequirements of ISO 8573.1:2001 Class
1.4.2 for the maximum amount of solid
particulate, water, and oil allowable.
NOTE: Gema USA Inc. booth systems
contain a 5-micron particulate and a 10
grade, 0.85 ppm, 0.7 micron coalescing
filter placed in front of the main air
manifold on the booth. These filters (witha filter status indicator) are provided assafety should the primary filtration units(supplied by the customer) fail.

2. Electrical Service Requirementsa) The Buyer must provide an electricalservice drop at each spray station withpower dictated by the equipment in use.
The amount of current draw isdependent upon the type of equipment
being operated at the particular station.
b) The Buyer should refer to the drawings
and operating manuals to assure thatthe proper size services are provided.
c) The Buyer will supply adequate earth
grounding for all equipment that isprovided. Please refer to the operating
manuals and drawings for the specificrequirements for grounding of theequipment.
d) Power services required are noted in theequipment manuals or system drawings
as appropriate to the equipment
purchased. Stable incoming power
service is important to the performanceand life of the equipment. As some ofthe equipment supplied may besensitive to fluctuations in service, it is
the responsibility of the Buyer to ensurestable performance + 1% on frequency(Ref. ANSI C84.1, current revision). If
the Buyer is not comfortable with theincoming plant power, then othersuitable protection must be provided by
the Buyer to ensure safe operation of
the equipment. This may include surge
protection or constant voltage
transformers to protect or isolate theequipment.

3. Minimum Clearancesa) The following is the minimum target
distance for powder guns:• Standard Corona 4"
Actual target distances will varydepending on the operating voltage andpart configuration. Please refer tooperating and service manuals fordetails.
b) The following are the recommended
clearances to operate the systemefficiently:• Top of part to conveyor hook point
24" to 27"• Part opening (on each side andtop/bottom) 3" to 6"
Example: Part is 12" x 24";recommended opening is 18" to 24" x
30" to 36".

4. Part Presentationa) The conveyor system is provided byBuyer and must operate smoothly, andfree of erratic motion that would cause
the part to swing more than 1" in any
direction as the parts pass through an
identification zone and/or coating zone.
b) Should the conveyor stop or start during
the painting operation, misidentification
and/or improper coating may occur,
resulting in a coating defect.
c) Excessive swinging of the part during
the coating operation may be a safety
hazard and potentially cause paintdefects or could damage the equipment.
d) The parts must be hung on a stablehanger that engages properly to theconveyor to minimize swinging or
twisting. The parts must be held on thehanger so that they pass through theidentification and/or coating zones withthe face of the parts within 5 degrees ofparallel to the face of the powder guns.
This requirement applies unless statedotherwise in this proposal and analternate hanging method is confirmed
in our lab.
e) If multiple parts are hung on the same
hanger, the face surface of each part tobe coated must be in the same plane as
the part above, below or to the side (atolerance of 1" deflection is allowed). In
the case of part recognition systems, atolerance of .125" is recommended.
f) The hangers must be of adequate rigid
construction to prevent the air flow fromthe powder guns from deflecting theparts more than 1" in any direction. In
the case of part recognition systems, atolerance of .125" is recommended.
g) Hangers for multiple parts should befully loaded to prevent coating build up
on unused hanging points.
h) The hanging contact points from theconveyor and the part must be kept
clean and free of coating buildup toassure adequate ground continuity. A
regular maintenance schedule shouldbe established to clean, adjust and/or
replace hangers on a regular basis.
Inadequate ground causes reject partsdue to poor electrostatic attraction. Also,poor grounding is a safety hazard due toinsulating a charged object.
i) Buyer is responsible for parttemperature and condition as it enters
the coating zone. Part temperature
affects the ability to maintain aconsistent film build. Poor surface
condition (e.g. dirt, oil, water orexcessive temperature) prior to coating
will cause deficiencies in the finish
quality, rejects, or excessive film build
alterations, such as holes in floors, walls
and roof, required for proper installation.

5. Location of Equipmenta) The powder booth should be installed aminimum of 20' from an oven or washer.
Installation closer than this could cause
problems in maintaining finish quality,
equipment performance, and material
usage. Buyer is responsible forcontaining the heat and moisture fromthe oven and washer. Any overflow to
the powder system will adversely affectthe finish quality.
b) It is suggested that the powder system
be installed in a temperature andhumidity controlled environment.
Inconsistencies in environmental
conditions can cause application
problems.
c) The powder coating area should bemaintained free and clear of any
turbulent airflows or drafts that could
adversely affect the booth containment
air.
d) Locations where Gema equipment islocated, the floor is to be level to +/- ¼”over a 10’ x 10’ area.

6. Environmental Recommendationsa) Environmental Room specifications• Temperature - 68F to 76F• Relative humidity - 40% to 60%b) HVAC Specification• HVAC diffusers should be located 6
ft. minimum from any booth opening.
• 60 LFPM maximum room air velocity
created by HVAC or other sources(i.e. Room or building doors andopenings).
• 100-200 LFPM maximum velocity at
the face of the HVAC diffuser(s).
• The HVAC system should bedesigned to positively pressurize theroom. The velocity of the makeup air
through the room openings (conveyor
entrance and exits, etc.) should notexceed 60 LFPM.
• HVAC air inlet should be filtered• Emergency shutoff should be locatedin the environmental roomc) Non-environmental Room Specifications• Temperature - 60F to 80F, Note:temperatures exceeding 90F willcompromise equipment performance,
generate excessive wear, and may
cause premature failure of filters andother components.
• Relative humidity - 40% to 60%

03/2022