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Powerhouse Exhaust Gas Waste Heat to Energy Project

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Powerhouse Exhaust Gas Waste Heat to Energy Project ( powerhouse-exhaust-gas-waste-heat-energy-project )

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McKINLEY SERVICE & EQUIPMENT INC. 43687 Kalifornsky Beach Road Soldotna, Alaska 99669 (907) 262-2685 | FAX (907) 260-1984 ____________________________________________________________________________________ October 4, 2012 Proposal/Quotes: #3232 #3233 #3234 #3235: ElectraTherm Series 4000 Green Machine - Water Condenser Project: City of Unalaska: Dutch Harbor Power Plant Heat: Engine Jacket Water - with closed loop fresh water condensing City of Unalaska Dutch Harbor Power Plant Dear City of Unalaska, Find in the following proposal McKinley Service & Equipment, Inc.’s (MSE) Quote and updated PEF Assessment for the first of 3 Series 4000 Green Machines for installation at Dutch Harbor in the City of Unalaska. In accepting this Quote, please affix your Purchase Order Number to the box and your signature to the space at the bottom left of the second page following this letter. Please email the signed Quote to me for review. Upon acceptance I will return a signed copy to you. This Quote contains a number of special terms and conditions worthy of highlighting here:  The shipping estimate includes shipping the first of three Series 4000 Green Machines and 700lbs. of refrigerant in a single 20ft. shipping container. o MSE is currently awaiting approval from Honeywell to ship the refrigerant in the same container as the Green Machine. If they cannot be shipped together there will be an addition shipping cost for the refrigerant.  Acceptance Period shall follow 90 days of ‘run time’ as determined solely by MSE staff. Full payment shall then be immediately due and payable. o The offer of this “demonstration” is predicated on the End User Customer’s purchase of the second and third machines per upcoming quote #3234 and #3235 should the Acceptance Period for the first machine be deemed successful. o Shipment of machine #1 from ElectraTherm’s place of manufacture on or before December 31, 2012.  We are including Quote #3234 and #3235 for Machines #2 and #3, should the City wish to employ the “demo” terms, with one possible exception: o The single shipment of 2 machines plus 1400lbs. of R245fa will likely require use of a single 40ft. shipping container, so the price of shipping machines 2 & 3 will likely be less than the per machine shipping costs in this Quote #3232.  MSE is confirming the price of R245fa and these shipping arrangements with Honeywell, and is awaiting their comeback since EPS confirmed that ElectraTherm/McKinley is to supply refrigerant.  The cost of the return of the cylinders to Honeywell shall be the responsibility of the City of Unalaska and is not included in this quote.  City of Unalaska must supply internet access, (see Exhibit D), to comply with the warranty. Cellular or Satellite internet available at an additional cost. Feel free to contact me directly with questions pertaining to the project and quote by email or by telephone at 907-262-2685. Sincerely, Matt McKinley - Business Manager McKinley Service & Equipment, Inc. matt@mckinleyservice.com Page 1 of 31

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