Chestertown Foods Mark Fisher
Contents
1. QUOTATION SFT BoneScan X Ray Inspection System Cooked Quote Prepared for Chestertown Foods Mark Fisher Quotation Number 011001242002CT nag Chestertown Foods i Quotation No 011001242002CT QUOTATION SFT BoneScan X Ray Inspection System 1 0 Introduction The SFT BoneScan system is a state of the art X Ray inspection system designed to automatically inspect cooked poultry meat containing bone fragments and other foreign body contaminants including metal glass stones and some plastics The system comprises four main components Please refer to drawings which will show the likely installation dimensions of the BoneScan system The system dimensions given are for guidance only as the system for Chestertown Foods will be designed as far as possible to suit your specific requirements a The product infeed conveyor unit b SFT BoneScan machine which detects the existence of bone fragments c The product rejection unit and conveyors including two inspection stations The BoneScan system is designed to meet all relevant USDA food machinery and CEC machinery directives The system is manufactured from food grade stainless steel and is sealed to IP66 standard Items a and c will be manufactured in the USA by D amp F Equipment Inc Crossville Alabama and their technical specifications are detailed in the D amp F documentation The total price for all the units detailed in this quotation includes all w2. considered to be Monday through Friday inclusive normally between the hours of 8 00 a m And 5 00 p m With one 1 hour for lunch Any deviation see the paragraphs on chargeable services included in this policy 6 Please confirm with IMS 2 weeks in advance an installation service date when the service representative s presence will be required 7 IMS Waives all responsibilities for the performance of or the subsequent service to machinery redesigned or in any way improperly altered or installed by the customer In such instances we would reserve the right to revoke our normal terms of purchase of the machine 8 Terms of this service policy apply not only to new equipment being installed but also to existing equipment being serviced 9 All inquiries or requests for service shall be made direct to IMS 1005 Union Center Drive Suite A Alpharetta Georgia telephone 770 751 6009 Prices subject to change without notice All prices are in US Funds N a ADDITIONAL TERMS AND CONDITIONS Chestertown Foods Quotation No 011001242002CT 10 Chestertown Foods i Quotation No 011001242002CT 10 11 12 13 Chestertown Foods CUSTOMER S ACCEPTANCE OF ALL OR A PORTION OF PRODUCT S ORDERED BY CUSTOMER SHALL CONSTITUTE CUSTOMER S ACKNOWLEDGMENT AND AGREEMENT TO THE ADDITIONAL TERMS AND CONDITIONS SET FORTH BELOW IMS LLC s price quotations are subject to Customer s prompt acceptance IMS LLC reserves the rig
3. sale than as set forth herein There shall be no deletion or modification of any of the terms and conditions of this sale without the express written consent of IMS LLC No agent employee or representative of IMS LLC has authority to bind IMS LLC to any affirmative representation warranty modification or waiver of terms and conditions of this sale unless the same is in writing signed by an authorized representative of IMS LLC This agreement shall be construed and governed by the laws of the State of Georgia Customer agrees that venue for any arbitration or litigation arising out of or concerning in any way the product s or safe set forth herein shall lie exclusively within Forsyth County Georgia CUSTOMER AGREES THAT ANY LAWSUIT BASED UPON A CLAIM OF ANY NONCONFORMITY OF THE GOODS OR CLAIM OF INFRINGEMENT OF PATENTS OR TRADEMARKS SHALL BE COMMENCED WITHIN ONE YEAR FROM THE DATE OF DELIVERY OF SUCH PRODUCT S In the event IMS LLC hired the services of an attorney to enforce any term or provision of this Agreement Customer agrees to pay IMS LLC such attorney fees and costs so incurred including those incurred prior to actual litigation Signed by Customer Signed by IMS Agent A Dated ofasp gt Dated Chestertown Foods Quotation No 011001242002CT 12
4. this contract exceed the purchase of the equipment The warranty will cease to apply if in the opinion of SFT the equipment is not being used and maintained by the customer or a third party in accordance with the instructions given in the Operator and Maintenance manuals SFT and its agents also offer a range of service contracts the details of which can be given on request 10 0 General SFT reserves the right to change manufacturer origin or design specification of any of the listed items in this proposal due to availability or to improve the performance of the system without deviation from the overall specification of the customer s requirements or quality SFT s policy is one of continued product development and we will provide free of charge any software upgrade and at cost any hardware upgrade for one year from customer acceptance For and on behalf of Intelligent Manufacturing Systems LLC Ken Libby Chestertown Foods Quotation No 011001242002CT Chestertown Foods Quotation No 011001242002CT REVIEW OF RESPONSIBILITIES Preparation IMS LLC CUSTOMER RESPONSIBILIT 1 BoneScan CIF Fredericksburg PA 2 Installation Drawings and Instructions Supplied to Customer 3 Transportation To Installation Site 4 Unpacking and Equipment a Inspection 6 Start Up and Commissioning charged IMS LLC standard rate See Attachment 7 Primary Air Supply to the BoneScan 8 Primary Ele
5. which time if the system cannot demonstrate compliance with the parameters Chestertown Foods may at it s discretion receive a full refund of all money paid to SFT up to that point and the machine will be returned at SFT expense In the event of successful achievement of the performance parameters by the BoneScan within the agreed time frame the balance of the outstanding account to SFT shall immediately fall due for payment These guarantees are subject to the following conditions 1 Based on cooked stripped chicken meat correctly loaded into the machine i e in a monolayer format in the trays to be supplied by SFT 2 Bone is defined as fully ossified material Cartilage gristle and soft bone is not considered detectable Bones that are not fully ossified for example but not limited to floating rib bones from young 38 42 day birds may not be detected reliably and in some cases may not be detected at all Chestertown Foods Quotation No 011001242002CT 2 ty Chestertown Foods Quotation No 011001242002CT 6 0 Price and Delivery 6 1 Price Prices are in US Dollars unless otherwise specified Price for one custom SFT BoneScan Machine 370 000 Product infeed rejection carry away units plus three rework stations 65 000 500 SFT X Ray product trays 15ea 7 500 500 SFT single code bar code plates 6ea 3 000 Shipping and installation costs 4 000 Total system price delivered and installed 449 50
6. 0 Excluding import duties and taxes if applicable Seafreight cost Airfreight cost can be quoted at customer preference Options SFT can supply approved product trays and bar code plates Details and quotations are available on request 6 2 Payment Terms 40 payable with order 50 payable on shipment of the equipment from the UK premises 10 payable on completion of acceptance Title to the goods shall remain with the seller until the full purchase price of the goods has been received 6 3 Delivery The BoneScan System will be shipped 14 weeks from placement of order and payment of deposit Chestertown Foods Quotation No 011001242002CT j Chestertown Foods Quotation No 011001242002CT 6 4 Validity This quotation remains valid for 90 days from the date of this quotation 7 0 Installation and Commissioning The space requirement for the BoneScan system will be clear from the schematic diagram supplied The purchaser will be responsible for siting of the equipment and the provision of services to the machine as detailed below Electrical power 3 phase neutral 415v 60Hz 40 Amps 240v Phase to neutral 5 core cable to be provided 3ph Neutral Ground Load between phases is unbalanced Pneumatic Requirements Clean dry air 4 bar pressure Water For belt wash if required Dedicated telephone line For optional remote modem link The Chestertown Foods BoneScan unit will be equipped with in bui
7. ctric Supply to the Control Panel 415V 3 Phase Ground 30 Amps incl 5 core 9 Floor Construction must allow BoneScan to function without vibration 10 Installation Tools Forklift 4000 b Cap Electrical Extensions And Supply 11 Test Product Delivered To IMS LLC Intelligent Manufacturing Systems LLC STANDARD DOMESTIC FOREIGN SERVICE POLICY Intelligent Manufacturing Systems LLC to be referred to as IMS LLC Service Representative s duty is to assist the customer with any or all of the following to create an environment where the customer is completely satisfied with their equipment 1 INSTALLATION The act of placing equipment in a Chestertown Foods Quotation No 011001242002CT Chestertown F oods Quotation No 011001242002CT permanent position 2 START UP The act of connecting power and operating the equipment to test condition 3 COMMISSIONING The act of running product until performance specifications are met In a normal routine the service representative may perform but not be limited to Inspect and recommend any required installation changes Make minor adjustments or modifications to assure Satisfactory production and performance Start Up and adjust equipment operation Test and adjust equipment to meet stated performance objectives Provide training regarding safety operation and maintenance of the equipment to be installed P newn rior to the service represe
8. e is subsistence air travel auto rental taxi service or any other necessary transportation 2 The chargeable rate for a service representative is 80 00 per hour to include the total time that the service representative is at your location available for service and has not been released In the event that a service representative is required to work the weekend Saturdays are 120 00 per hour and Sundays and holidays are 160 00 per hour Layover days are charged at 640 00 per day If for any reason beyond our control a serviceman is prevented from performing his job the per diem rate will still be charged 3 The overtime rate which is defined as daily hours worked over a basic eight 8 hours is 120 00 per hour and approval for overtime must be agreed upon by both the customer and a IMS factory representative We reserve the right to change the service representative s charges without prior written notification For verification of present charges please contact IMS 4 On any multiple or extended installations or general service requiring extensive service time the service representative shall return to his home base for one 1 weekend at the customer s expense travel on regular work days The maximum time atlowed for one 1 trip is two 2 weeks 5 All services performed by IMS Service representatives whether for the installation of new equipment or for service on existing equipment shall be performed on normal work days which are
9. e to force majeure Such causes include but are not limited to natural disaster fire labor disputes failure of vendors to deliver material as scheduled delays in transportation or other causes beyond seller s control whether or not these causes are foreseeable to IMS LLC Customer agrees that it must pay all IMS LLC invoices when due and that prompt payment is of the essence in Customer s contract with IMS LLC In the event Customer fails to make payments in accordance with the terms and conditions of Customer s invoice IMS LLC may defer further shipments until such payments are made or may at its option elect to cancel all of Customer s uncompleted contracts Shipment of Customer s order s shall be subject to approval of IMS LLC s credit department In the event IMS LLC has doubts regarding Customer s financial responsibility IMS LLC may decline to make any shipments to Customer until Customer provides satisfactory security or cash payment before shipment In the event IMS LLC elects to suspend delivery of ordered product s or terminate its contract with Customer IMS LLC s election shall not be a waiver of its right to maintain a claim for damages against Customer Customer hereby grants IMS LLC a security interest in product s delivered and proceeds thereof to secure payment of the price of product s and any interest thereon If requested IMS LLC will execute all necessary Financing Statements and other documents deemed nece
10. ht to adjust its prices until a written order confirmation is received from Customer All quotations orders and agreements made between Customer and IMS LLC s agent s shall be subject to the acceptance and approval of IMS LLC s home office Once IMS LLC begins manufacturing product s for Customer no order may be changed or cancelled without written agreement of IMS LLC If the delivery date of Customer s order is subsequently delayed at Customer s request IMS LLC may add to original purchase price of product s ordered any increased labor materials or holding costs which IMS LLC incurs as a result of Customer s delay Once IMS LLC notifies Customer product s are ready to ship and Customer delays shipment for more than thirty 30 days from date of such notification Customer shall pay a fee of one percent 1 per month on the unpaid balance due on Customer s order On all shipments made F O B shipping point title to and risk of loss of product s pass to Customer upon delivery to carrier for shipment to Customer Any delivery schedule indicated is based upon IMS LLC s best estimate IMS LLC shalt not be liable for any delay in delivery beyond schedule date On all shipments made F O B our plant Customer s claim must be made against carrier of product s No discount is allowed on transportation charges On all sales made subject to freight allowance Customer bears risk of any increase in freight rate costs before delive
11. l carry an infeed bar code reader 5 0 System Performance Chestertown Foods Quotation No 011001242002CT gii Chestertown Foods Quotation No 011001242002CT The BoneScan performance on the Chestertown Foods production line is guaranteed to achieve the following parameters Contaminant Size Detection Wish Bone 2mm x 2mm x 4mm 95 Wish Bone plate 2mm x 2mm x 4mm 95 Rib Bone fully ossified 2mm x 2mm x 4mm 95 Rib Bone other 2mm x 2mm x 10mm 80 Bone fragments fully ossified from other parts of the carcase 2mm x 2mm x 4mm 95 Metal 1 5mm x 1 5mm x 1 5mm 95 Glass 3mm x 3mm x 3mm 95 Stone 2 5mm x 2 5mm x 2 5mm 95 Overall false reject rate Target 0 Maximum permitted range 0 7 5 The system will be tested and verified to meet these performance parameters on installation Testing procedures will comprise the introduction to the production line of test piece contaminants agreed by SFT and Chestertown Foods to be representative of the above contaminants Each test piece will be inserted 100 times and the overall detection percentages will be recorded The false reject rate test will comprise The passing of product known to be clear of any contaminants through the machine 500 times The rejection percentage rate will be recorded If any of the recorded results are outside the performance parameters set out above then SFT shall be allowed a period of not longer than 4 weeks to achieve the agreed parameters after
12. lt climate control and air conditioning systems designed to work with ambient temperature no higher than 77 degrees fahrenheit No other cooling provisions are required The BoneScan system will be installed and commissioned by qualified SFT and D amp F Equipment Inc engineers 8 0 Training and Documentation Operator and maintenance manuals will be provided in accordance with CEC directives These manuals will describe how to use the equipment on a daily basis and how to perform routine scheduled maintenance The maintenance manual will also include a recommended spares parts list SFT will provide a one day operator training course and a one day maintenance course to be given at the SFT Coleshill facility A further one day general course will be given at the customer s facility following installation and commissioning 9 0 Warranty and Service Chestertown Foods Quotation No 011001242002CT Chestertown Foods Quotation No 011001242002CT The equipment supplied will carry a 12 month warranty to commence on acceptance of the equipment at the customer s facility This warranty shall be limited to the warranty carried by any bought in component used in the system and also shall not include damage caused by miss use or failure to maintain the unit in accordance with SFT requirements SFT shall not be liable for any consequential loss or loss of production howsoever caused Under no circumstances shall any seller liability under
13. ntative arriving the customer is expected to Inspect and report any damage to the equipment within twenty four 24 hours of receiving With the aid of the plant layout user s manual installation drawings and other data supplied the equipment should be a Bolted together b Leveled c Electrical power connected throughout machine as well as to the machine d Air supply connected throughout machine as well as to the machine e Product delivery and outfeed conveyors installed as required 3 Upon the arrival of the service representative the work crew should be available at all times The work crew should normally consist of operators mechanics electricians and pipe fitters 4 Any tools or equipment required for installation and start up should be available at all times with the exception of minor hand tools such as screwdrivers pliers etc 5 Provide an ample supply of product for final testing when necessary f 6 Ifthe requirements listed above are not complete and satisfactory IMS reserves the right to reassign it s service representative until all requirements are met This will result in additional travel living and labor expense that will be billed to the customer CHARGEABLE SERVICE CALLS 1 Time chargeable for travel is 40 00 per hour for weekday travel 60 00 per hour for Saturday an 80 00 per hour for Sunday and or holiday travel These charges are for travel to and from the customer s location Also chargeabl
14. ork by D amp F Inc 2 0 SET BoneScan Machine The SFT BoneScan machine configured for cooked chicken meat presented in a bar coded tray format In this configuration BoneScan is designed to run at an optimal belt speed of 20 meters per minute 65ft min This equates to a maximum of 25 trays per minute Each tray will contain up to 1 8kg of product giving a maximum capacity of 2 7 tons per hour Chestertown Foods Quotation No 011001242002CT Py Chestertown Foods Quotation No 01100 1242002CT 2 1 X Ray System The X Ray system comprises a high voltage power supply an X Ray tube and a solid state diode array sensor The sensor will be a SFT SpectraLine design featuring 1250 active sensor elements Giving a total available sensing width of 500 mm and therefore a belt width of 450mm The power supply generates a low ripple highly stable supply which feeds the X Ray tube via a shielded EHT cable The control of the X Ray power supply settings is handled automatically from the controlling computer The X Ray tube is a minifocus high quality water cooled tube specifically designed to match the energy and wavelength requirements of the X Ray sensor The SpectraLine X Ray sensor is a solid state diode array having high quantum efficiency with an input phosphor screen designed to suit the wavelength of the X Ray energy required to penetrate the product being inspected The output is a digital signal which will be anal
15. ry If freight costs decrease Customer shall receive the benefit of any such decrease No freight allowance in excess of actuat shipment weight shall be made Customer agrees to inspect product s delivered within twenty 20 days of receipt Customer s rejection of any product s shall not be effective unless made and written notice thereof given to IMS LLC within twenty 20 days of delivery or before product s are altered in any way whichever is shorter It shall be deemed conclusively that Customer has accepted product s thereafter Customer s revocation of acceptance shall not be effective unless it is made and written notice thereof is given within twenty 20 days after Customer has discovered a material nonconformity in product s or within thirty 30 days after acceptance whichever comes first Customer agrees to return all product s or parts thereof Customer believes to be non conforming to IMS LLC s headquarters at Alpharetta Georgia postage or freight pre paid within thirty 30 days from date of delivery Customer shall identify all returned item s by date of purchase and provide IMS LLC with all information necessary to support Customer s claim that returned item s are non conforming If IMS LLC determines after inspection that returned item s are non conforming it will ship replacement s FOB Customer s plant IMS LLC shall not be responsible or deemed to be in default as a result of IMS LLC s non performance du
16. ssary by IMS LLC to perfect IMS LLC s security interest Customer shall pay all sales and or excise taxes required by any government agency Customer agrees to pay any increase in price due to any increase in sales and or excise taxes between time of IMS LLC s price quotation and date of delivery IMS LLC warrants to Customer that non wear product s delivered are free from defects in materials and workmanship for a period of one 1 year from date of delivery or 2400 hours of commercial operation whichever occurs first under normal use and service and will conform to their description and specifications subject to the customary tolerances and variations Purchased parts are warranted for ninety 90 days or the period within the designated vendor warranty whichever is greater Manufactured parts are warranted for ninety 90 days IMS LLC shall have no liability for unauthorized repair work or expenses and such unauthorized work will void IMS LLC s warranty EXCEPT FOR THE FOREGOING THERE ARE NOT EXPRESS OR IMPLIED WARRANTIES INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY FITNESS FORA PARTICULAR PURPOSE OR AGAINST THIRD PARTY CLAIM OF INFRINGEMENT OF PATENTS OR TRADEMARKS 11 Quotation No 011001242002CT Chestertown Foods _ Quotation No 011001242002CT 14 15 16 17 18 19 20 IMS LLC s warranty shall be void in the event Customer modifies or alters IMS LLC s product s subsequen
17. ssing of the tray containing detected contaminants 2 4 System Operation The BoneScan machine is fully automatic and only requires operator intervention on power up and initial system set up The user interface comprises a colour monitor keyboard and manual control panel and it is simple and clear such that the system can be set up by a non technical user following a short training course 3 0 Product Reject Conveyor unit The product reject conveyor is a separate unit designed to be installed immediately after the main BoneScan conveyor The BoneScan unit will control the rejection conveyor The rejection mechanism will be of a tray deflector type with the rejected trays being deflected onto a separate conveyor line which leads to the product rework stations This unit requires a supply of pneumatic air to be available from the customer factory Good product trays will continue on to the carry away conveyor Power requirements to be advised The product rework stations will include bar code readers large screen monitors and yes no buttons The operator will call up the image for each rejected tray and will manually remove the contaminant using the visual clues given by BoneScan on the screen image 4 0 Feed System The system can be specifically designed to suit the production line at Chestertown Foods Approximate tray dimensions are 350mm x 450mm x 50mm The infeed design will be of a flighted intralox belt type and wil
18. t to initial installation without the express written consent of IMS LLC Customer agrees to indemnify and hold IMS LLC harmless from any claim which arises out of Customer s use or resale of delivered goods by way of any claim of patent or trademark infringement by third parties f Customer s sole and exclusive remedy for any nonconformity in product s shall be at IMS LLC s option a repair or replacement of any nonconforming product s or b return of price paid for any such product s The foregoing remedies shall constitute the sole recourse of Customer against IMS LLC for defect in any product s breach of warranty negligence or any other claim based upon any assertion that product s do not conform in any way IMS LLC SHALL NOT BE LIABLE FOR CUSTOMER S INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO LOSS OF BUSINESS LOSS OF ECONOMIC ADVANTAGE LOSS OF LABOR LOSS OF PROFITS OR LOSS OF GOODWILL Equipment purchased from IMS LLC has been provided to Customer with various safety features Any actions taken by Customer or their agent to alter remove or fail to maintain such safety precautions will void Customer s warranty with IMS LLC Furthermore Customer shall indemnify IMS LLC from all actions causes or claim from any party that results from Customer s failure to comply with this section of the contract This document sets forth the entire conditions of this sale There are no other conditions of
19. ysed by the machine image processing system The machine has a series of interlocks and emergency stops in accordance with CEC safety directives and these will ensure that the power is immediately switched off in the event of any part of the machine being opened or a failure of the cooling system Each BoneScan machine is independently certified to be X ray safe for continuous use in a processing environment Copies of the certification will be found in the master user manual supplied with the machine Badging of system operators is not required 2 2 Intelligent Image Processing System The Intelligent Image Processing System is a proprietary SFT design specifically created for this type of application It consists of two state of the art computer systems The first the image processing computer takes the image of the product and performs a series of calculations with a processing power of 40 nano seconds per pixel The second computer a parallel processing DSP network takes information from the processed image and identifies contaminants using neural network strategies 2 3 Control System Chestertown Foods Quotation No 011001242002CT Chestertown Foods i Quotation No 011001242002CT The control system comprises a number of circuit boards specifically designed for and controlled by the BoneScan computer system The system will automatically control the timing of the product rejection unit to coincide with the pa
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