2201 Old Sterlington Road P. O. Box 4150 (71211)

Monroe, Louisiana 71203

Letter of Understanding between

Poly Processing Company and its Lined Steel Tank Customer

  1. This letter is written to communicate, confirm, and record the understanding between Poly Processing Company, LLC(PPC)and (Customer) regarding linedsteeltanks.ThisletterofunderstandingmustbeinplacepriortoPPCacceptingandprocessingordersforlinedsteel tanks.

Descriptionofoverallprocess:Usingrotationalmolding,PPCwillmoldapolyethyleneliningintoCustomer ownedsteeltankortanks.Inmostbutnotallcases,theCustomerwillthenusethelinedsteeltankasa componentinamoreextensivepieceofequipment.ThesteeltankwillbesuppliedbyCustomerandwill remain the property of the Customer during the lining process. The polyethylene lining material will be suppliedbyandprocessedbyPPC.

  1. Customerresponsibilitiesforlinedsteeltanksincludebutarenotlimitedto
  • Fitnessofsteeltankdesign,composition,andconstructionforitsintendeduseandlikelyabuse
  • Compliance of steel tank design to any legal, regulatory, safety, or industry requirements for its intendeduse
  • Inclusionofdesignfeaturesinthesteeltankneededforsuccessfulrotationalmoldingoftheliningper PPC“SpecificationsforSteelTankLiningUsingMRSP010”.
  • ProvisionoftanktoPPC,Monroe,Louisiana,USA,withinteriorandopenings“whiteblasted”andall openingssealedperPPC“SpecificationsforSteelTankLiningUsingMRSP010”.
  1. PolyProcessingresponsibilitiesforlinedsteeltanksincludebutarenotlimitedto
  • Immediatereceivinginspectiontoconfirmsteeltankissuitableformoldingoflining
  • Designandapplicationofmountingforsteeltankforrotationalmoldingprocess
  • Designandapplicationofrotationalmoldingtoolingforthesteeltankopeningsandflanges
  • Rotational molding of tanklining
  • Performingpostmoldingfinishworkoftankliningatopeningsandflangefaces
  1. PolyethyleneliningspecificationsareperPPC“SpecificationsforSteelTankLiningUsingMRSP010”.
  1. Allproductionschedulingforliningsteeltanksoriginateswithreceiptofproperlypreparedsteeltanksat PPCfacilityandissubjecttoexistingproductionbacklog.Productionschedulingdoesnotoriginatewith receipt of Customer purchase order. PPC will make every effort to meet production schedule provided by Customer. However, delays will occur should a lining fail to mold properly or a steel tank is damaged duringthemoldingprocess.CustomerwillnotholdPPCresponsibleforanylossduetodelays.

If a lining fails to mold properly during the rotational molding process, PPC assumes responsibility for removaloftheunacceptableliningandnormallywillmakeasecondattempttomoldalining.However, PPC reserves the right not to make any subsequent attempts at molding the lining should the initial attempt beunsuccessful.

AtnotimeandundernocircumstancesdoesPPCassumeresponsibilityforrepairorreplacementofthe steeltankorassociatedmetalwork.

  1. PPC pricing for steel tank lining will be provided as a formal quotation separate from this letter of understanding.
  1. CustomeracceptanceofPPC’squoteforsteeltankliningwillbebyformalpurchaseordertoPPC.
  1. Paymentterms
  • Domesticaccounts:Paymentduewithin30daysofinvoicewithapprovedcredit
  • Internationalaccounts:Paymentduepriortoshipmentofcompletedtank(s)
  1. The relationship between PPC and Customer is neither a joint venture nor a partnership. PPC and CustomershallremainasSellerandBuyerorasindependentcontractors.
  1. Fitnessofallproductdesign,compositionandspecificationforitsintendeduseissolelytheresponsibility of theCustomer.

11.PPCWarrantyforsteeltanklinings

PPC warrants its polyethylene lining for steel tanks against defects in material and workmanship for a period of ONE (1) YEAR.

Thepurposeofthiswarrantyistoensureusefulservicefromthepolyethylenelining.Intheeventalining failsbeforetheexpirationofthewarrantyperiod,PPCwill,atitsoption,repairorreplacetheliningone timeatnochargeorrefundtheoriginalcosttotheCustomer.Anysteeltankrequiringliningreplacement mustbeprovidedfreightpre-paidtoPPC,Monroe,Louisiana,USA,withtheoldliningremovedandtheinteriorof thetanksandblastedto a “white blast” finish.

ThiswarrantyperiodcommencestorunondateofshipmentfromPPC’scustomer(normallyanoriginal equipmentmanufacturer)totheowner/user.Intheeventofawarrantyclaim,PPC’scustomerwillprovide PPC the date of shipment. Should PPC’s customer be the steel tank owner/user and not an original equipmentmanufacturer,thewarrantywillbeginonthedateofshipmentfromPPC’sfacility.

Limitations of Liability

Underitswarranty,PPC’sliabilityislimitedtorepairorreplacementofthepolyethyleneliningorrefunding the original cost of the lining. In order to determine if the lining is defective, PPC shall have the right to conductaninvestigationintothematter,includinganinspectionoftheliningorportionsoftheliningand the steel tank before, during, and after the lining is removed from the steel tank. As a condition to the warranty,PPC’scustomerortheowner/userarerequiredtofirstprovideacleanedportionofthelining and/orphotographsforevaluation.PPCisnotresponsibleforthedisposalofanyliningmaterial.

This warranty is void if any of the following occurs:

  • Polyethylenelininghasbeenusedinchemicalserviceotherthanitsoriginallydeclaredpurpose.
  • Polyethylenelininghasbeensubjectedtotemperaturesinexcessof170F.
  • Polyethylenelininghasbeenalteredorrepairedbyunauthorizedpersonnel.
  • Polyethylenelininghasbeensubjectedtomisuse,negligence,fire,accident,actofwar,oractofGod.
  • Notification of the defect in the polyethylene lining has not been made in writing to PPC within the warrantyperiod.
  • Invoiceforpolyethylenelininghasnotbeenpaid.
  • The customer or owner/user refuses to provide PPC proof of date of shipment to the owner/user, refusestoallowPPCtoconductaninvestigationintothematter,refusestoallowatimelyinspection oftheliningorliningmaterialandsteeltank,orfailstoprovideacleanedportionoftheliningand/or photographs,allasoutlinedabove.

Withacceptanceofthiswarrantyforthepolyethylenelining,customerwaivesanyclaimagainstPPCfor incidentalorconsequentialdamagesarisingfromliningfailureincludingbutnotlimitedto,damagetothe steel tank, damages for lost profits and/or lost sales, damage caused by leaking products, or injury or death to persons or damage to property. PPC’s liability is limited to repair or replacement of the polyethyleneliningorrefundoftheoriginalcostoftheliningduringthewarrantyperiod.

ThelimitedwarrantydescribedhereinisPPC’ssolewarrantyandthecomplete,finalandexclusive statementofthetermsofthewarranty.NeitherPPC’scustomernortheowner/usermayrelyonany earlieror

subsequent oral statement(s) or representation(s). This warranty is neither assignable nor transferable.

  1. ThisLetterofUnderstandingisagreedtobyPPCanditsCustomerasevidencedbythesignaturesbelow. ThisLetterofUnderstandingbecomeseffectiveonthelastdateshownbelowandappliestoanyandall steeltankslinedbyPPCforCustomer.ThisLetterofUnderstandingremainsineffectfromacceptance dateforwardunlessreplacedbyarevisedletterofunderstanding

For PolyProcessingCompanyFor

Customer



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DateofacceptanceDate ofacceptance