EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA Phone: 720-242-8659 FAX: 720-350-4809 Beverage Can Production System Prepared For: Evergreen Packaging Technology Installation Location: Nanning, Guangxi, China Prepared By: Mark Jones Date: 15 January 2013 Revision: - EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA 1. Phone: 720-242-8659 FAX: 720-350-4809 Scope of Engineering Services a. Please see “Engineering Services Scope” document following this page. 2. Engineering Services Pricing a. All pricing is FCA, Incoterms 2010. Engineering Services Package Price for engineering services for One (1) can line. US $500,000.00 On Site Services All on site and installation services for five (5) people for twenty (20) weeks US $500,000.00 Total 3. US $1,000,000.00 Terms of Payment a. The price of the package shall be paid by bank transfer to Evergreen Packaging Technology, LLC. i. 50% - Down Payment with Purchase Order ii. 20% - Payable at Start of Installation Phase iii. 20% - Payable at completion of Start-up Phase (determined when line is connected and cans are on the palletizer ) iv. 10% - Payable upon making the first commercial pallet of cans (no later than 12 months from date contract is signed) EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA Phone: 720-242-8659 FAX: 720-350-4809 ENGINEERINGSERVICESSCOPE 1. Scope of Supply: a) Project management and coordination b) Line Layout c) Utility design d) Piping and scrap system design e) Electrical cable and supports design f) Platform design g) Installation and commissioning ENGINEERINGDESIGN 2. One (1) Project Manager or Start-up Manager to co-ordinate schedule and project activities. 3. Drawings and documents to be issued. All items to consider one (1) additional can line in the existing Hangzhou facility. a) Layout Drawings Line & Ancillary equipment layouts Plan View showing location of all equipment Plan View showing platform outline with location of access stairways Control Panel and sub distribution panel location Reference equipment and foundations to building datum. Services Room – Air, Vac, Cooling Water Print Room Tool Room Quality Laboratory Machine Repair department (M.R.D.) Electrical Workshop Production Offices DI Water Plant area Waste Water Treatment area Coolant filtration area Work station locations Show Truck Routes & Pedestrian Routes EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA Phone: 720-242-8659 FAX: 720-350-4809 b) Ancillary Equipment – Specification and design for Ancillary Equipment Scrap system specification & design Bodymaker oil mist specification & Design Decorator ink mist extract, specification & design Washer Sump Pumps and Stainless Steel Tank Specification & Design Water Treatment Specification & design Effluent Treatment Specification & design Steelwork – Platforms, stairways and supports Specification and design for mezzanine platforms, stairs and step overs. Mezzanine structure design, including stairway access and hand railing – Manufacturing issue Scrap room mezzanine structure design, including stairway access and hand railing – Manufacturing issue Trimmer Supports Special Machine Foundations – Foundations, Trenches and Sumps Cupping Press and coil handling foundations Coil Storage area floor requirement Bodymaker Machine Foundation Washer Machine Foundation Decorator Machine Foundation Basecoater Machine Foundation Coolant Filter Trench & Sump Water Treatment Plinths, Trenches & Sump Effluent Treatment Plinths, Trenches & Sump Bailer Trench & Sump Service Room Trenches c) Exhaust Stack requirements – Specification and Stack Design Scrap system exhaust Bodymaker oil mist exhaust Washer Pre-Rinse Exhaust Washer Dryer Exhaust Decorator Ink Mist Extract Basecoater Ink Mist Extract Decorator Pin Oven Exhaust Basecoater Pin Oven Exhaust Cooler air inlet and exhaust Spray Machine mist extract Internal bake oven exhausts Internal bake oven cooler air inlet and exhaust EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA Phone: 720-242-8659 FAX: 720-350-4809 d) Electrical Engineering – Installation Information Equipment Electrical Specification Installation Electrical Specifications Power Distribution Panel Specification Trunking/conduit layouts Equipment cabling schedules (panel to machine as may be required) Task lighting and power outlet requirements Line control cabling schematic e) Utilities – Utility Requirements Power requirement for individual equipment (Utility Chart) Power requirement total (Utility Chart) Gas requirement individual equipment (Utility Chart) Gas requirement total (Utility Chart) Air requirement individual equipment (Utility Chart) Air requirement total (Utility Chart) Vacuum requirement individual equipment (Utility Chart) Vacuum requirement total (Utility Chart) Process Water requirement individual equipment (Utility Chart) Process Water requirement total (Utility Chart) Chilled water requirement individual equipment (Utility Chart) Chilled water requirement total (Utility Chart) DI plant system requirement and specification Waste Water Treatment Specification f) Utilities – Utility Design Pipework specification Air system and equipment Gas system and equipment Vacuum system and equipment Process Water and DI system and equipment Chilled Water supply and return Coolant system supply and return Waste oil system design Electrical Power Distribution (includes H.V. & L.V) Can Washer Hot Water Supply & Return EVERGREEN PACKAGING TECHNOLOGY, LLC Project Engineering & Integration Solutions 5545 West 56th Ave., Unit F &G, Arvada, CO 80002, USA Phone: 720-242-8659 FAX: 720-350-4809 ENGINEERINGSUPPORTSERVICES 4. 5. a) b) c) d) 6. One (1) Project Manager or Start-up Manager to co-ordinate schedule and project activities (same project manager listed above). Evergreen will provide five (5) engineers for twenty (20) consecutive weeks for equipment installation supervision. The 20 week period begins when the primary production equipment (cupper, bodymakers, trimmers, decorator, sprays, necker-tester, washer and ovens) are on site, followed by the conveying 4-6 weeks after this time. One (1) Electrical / controls engineer. Four (4) on-site mechanical engineers to cover installation, check-out and start-up through the 20 week period. These five (5) people are not necessary the same five (5) people throughout each phase and will be selected at the discretion of Evergreen. Exceeding 20 weeks, if the line is still not in a condition to make acceptance test due to the Seller’s reason, the seller will continue the work to commissioning the line until it reach the contract specification. The seller has the right to adjust the number of on-site engineers after week 20, at the seller’s sole discretion. If, due to any reason not attributable directly to the seller, the Buyer’s reason, the line is not able to be installed on time and carried out successful commercial can production after twenty (20) weeks work (example equipment quality or performance problem, utilities problem or supply shortage problem, material problem, lack of support labor, commercial schedule and plan problem and etc. to cause delay of installation), the buyer shall have to pay the relative extra service cost to allow to continue the service work and line qualification at a rate of $5,000 per week per engineer. Once installation has started and the Buyer has a major work stoppage due to no fault of the seller the man hour clock will continue accruing time towards the 100 man weeks accordingly. Buyer’s Obligations with Performance Qualification and Guarantee a) Equipment will meet the specifications established by Evergreen and agreed upon by Buyer. b) Line control and conveying line layout will be agreed upon and approved by EVERGEEN and Buyer. c) Product and tooling design will be agreed upon and approved by Evergreen and Buyer. d) Materials and tooling will be sourced from Evergreen approved materials and tooling vendor list. Evergreen should provide at least 2 suppliers as options for CPMC to select from. e) Equipment vendor servicemen will be scheduled, directed, and supervised by Evergreen. f) Required maintenance of all equipment and tooling will be performed by Buyer. g) Buyer agrees to run production on a daily and consistence basis, according to the instructions and guidelines set forth by Evergreen, until commercial can production is achieved and is agreed by Buyer and Evergreen.
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