2017039 Northeast Bindery

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Project List RMA List Equipment List Representative List Parts Cost Analysis Service Cost Analysis Copy of Northeast Bindery 2017039.xlsm Workorders Folder

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Project Scope: The proposed system consists of a Multifeeder Technology MFT 350 Industrial Performance IP HCP XLD Friction Feeders to feed Pharmaceutical Inserts and other products up to 300mm (11.81") wide onto a Bobst Folder Gluer machine at a rate of up to 500 per minute with a tolerance of +/-1/16” (for speeds up to 70mpm). Each MFT 350 feeder will gently separate your products from a vertical stack of the in feed hopper of the feeder and will transfer them individually onto the 350mm wide (13.77") 600mm (23.64") long discharge of the feeder. The Bobst Machine will feed a base sheet and the MFT 350 IP HCP XLD Friction Feeder will be signaled to feed a product into the pinch point of a Bobst top belt assembly by a Tipping Photo Optic Start Sensor Assembly. Each feeder will be equipped with Dual Vacuum Track Assemblies each consisting of a Vacuum Chamber and a feed belt with holes that travels over the chamber to allow the feeder to best grip the products as they are fed (house vacuum supply). Each feeder will be mounted onto a Multifeeder supplied mounting frame that will allow the position of the feeder to be adjusted quickly and easily in the x, y, and z directions. The Folder Gluer machine will feed a base product, a glue machine shall apply glue to the base sheet, and the MFT 350 IP XLD Friction Feeder will be signaled to feed a product into the pinch point of a customer supplied top belt assembly on the Folder Gluer machine by a Photo Optic Start Sensor. The MFT 350 will be configured with Hard Carcass Discharge Belts, Precise Seiko Counter Height Adjustment knobs, Adjustable Discharge Side Guides with extension, and a Hard Carcass Nose Roller Assembly to allow the end of the discharge to be placed close to the product traveling below. Each feeder will be configured with Continuous Motion Accutipping controls consisting of an encoder with wheel mounted on your base machine to monitor its speed. The computer timing compensation package will vary the speed and timing of the feeder to ensure that the insert is placed accurately on the spot glued surface regardless of the speed of the base machine. This proposal assumes that the customer will mount, install and integrate the feeder with the Bobst. As an option Multifeeder can perform the mounting, installation, and integration of the feeders at our standard rates. Optional discharge upgrades: 1. Upgrade to a 150mm wide 600mm closed frame discharge to best fit between the carrier belts on the Bobst. 2. Upgrade to a 75mm wide 600mm open frame discharge (can feed products wider than the width of the discharge) to best fit between the carrier belts on the Bobst. 3. Upgrade to a 125mm wide 600mm open frame discharge (can feed products wider than the width of the discharge) to best fit between the carrier belts on the Bobst. Options Available: An optional Multifeeder supplied Venturi style vacuum pump with mounting bracket and flow regulator can be used as a vacuum supply. Other options include a Spare Parts Kit, a Low Product Detect Sensor Assembly, and Standard Feeder installation. This proposal consists of an lease to own agreement with 5% load listed below: EQUIPMENT LEASE AGREEMENT This EQUIPMENT LEASE AGREEMENT (“LEASE”) is entered into this ___ day of _____________, 20____, by and between Multifeeder Technology, Inc., a Minnesota corporation having its principal place of business at 4821 White Bear Parkway, St. Paul, MN 55110 (“Lessor”) and Northeast Bindery having its principal place of business at 401 Trumbull Street Elizabeth, NJ 07206(“Lessee”). 1. Lease of Equipment. Lessor hereby leases to Lessee and Lessee leases from Lessor, on the terms and conditions set forth below, the Equipment identified on Exhibit A to this Lease. 2. Term of Lease. The Term of this Lease will commence on ____________, 20____ (the “Effective Date”) and shall expire __ months from the Effective Date. The minimum term of this Lease agreement 2 months. 3. Shipping and Location. Lessor shall be responsible for shipping the Equipment (shipping cost paid by Lessee) to the Lessee at 401 Trumbull Street Elizabeth, NJ 07206(“Lessee”). 3.1 (the “Equipment Location”). Lessee agrees that the Equipment shall remain at the Equipment Location for the Term of the lease and any extensions or renewals thereof unless the Lessor is notified in writing at least thirty (30) days prior to moving the Equipment to a new location. 4. Rent and Deposit. 4.1 As indicated on Exhibit A, the monthly lease payment for the Equipment shall be paid in advance in installments of $__________ each month, beginning on ___________, 20___ and on the first day of each succeeding month throughout the Term of this lease. Any installment payment not made by the tenth (10th) day of the month in which it is due shall be considered overdue and, in addition to Lessor’s other remedies hereunder, Lessor may charge administrative late fees equal to five percent (5%) per month on the overdue amount. In addition, Lessee shall pay interest on overdue payments from thirty (30) days after the due date until paid at the rate of eighteen percent (18%) per annum or the maximum amount permitted by law, whichever is lower. 4.2 Prior to taking possession of the Equipment, Lessee shall pay a damage deposit equal to ten percent 10% of the Lease BASIS of the Equipment, as indicated on Exhibit A (the “Damage Deposit”). The Damage Deposit will be fully refunded to Lessee within sixty (60) days of the expiration of this RENTAL AGREEMENT and RENTER’S performance of all obligations herein. 5. Option to Purchase. Lessor hereby grants to Lessee the option to purchase the Equipment for $ , the LEASE BASIS PRICE indicated on Exhibit A, as follows: 5.1 If Lessee provides written notice to the Lessor of its decision to exercise its option to purchase the Equipment within one hundred twenty (120) days of the Effective Date, Lessee will receive a one-hundred percent (100%) credit for total Rent payments made under this Lease. 5.2 If Lessee provides written notice to the Lessor of its decision to exercise its option to purchase the Equipment at any time after one hundred twenty (120) days following the Effective Date, Lessee will receive a seventy-five percent (75%) credit for total Rent payments made under this Lease. 6. Ownership. The Equipment is, and shall at all times be and remain, the sole and exclusive property of Lessor and the Lessee shall have no right, title or interest therein or thereto except as expressly set forth in this lease agreement. If Lessor requests, Lessee shall execute and deliver to Lessor such documents as Lessor deems necessary or desirable for purposes of recording or filing to protect the interest of Lessor in the Equipment including, but not limited to, a UCC financing statement. 7. Use; Alterations, Modifications and Additions. 7.1 Lessee shall use the Equipment in a careful and proper manner and shall comply with and conform to all national, state, municipal, police and other laws, ordinances and regulations in any way relating to the possession, use or maintenance of the Equipment. 7.2 Lessee shall not permit any alterations or attachments to any Equipment other than attachments or additions which may be necessary for the proper operation, maintenance and repair of the Equipment or which are required to be installed or made to the Equipment because of any law, regulation, rule or requirement imposed by any governmental body or agency that becomes effective after the date of this Lease Agreement. 8. Maintenance and Repair. 8.1 Lessee agrees that any repair or replacement pertaining to the Equipment which requires opening the protective feeder cases is to be performed solely by Lessor or its designated representative. Lessee agrees to be responsible, at its own cost and expense, for the repair and/or replacement of all items on the Equipment that can be repaired and/or replaced without opening the protective feeder cases. If Lessee violates this provision of the Lease agreement, Lessee may, at Lessors option, be required to forfeit the Damage Deposit and an additional $500.00 refurbishment fee. 8.2 Lessor reserves the right to inspect, service, and/or replace the Equipment for purposes of proper performance. 9. Training and Support. Upon Lessee’s request and payment of $_________, Lessor will provide on-site training pertaining to the use of the Equipment. 10. Warranties. Lessor warrants that Lessee has the right to lease the Equipment and that the Equipment will be in good working order at the time it is delivered to Lessee. LESSOR DISCLAIMS ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 11. Taxes and Fees. Lessee shall keep the Equipment free and clear of all levies, liens and encumbrances. Lessee or Lessor at Lessee’s expense, shall report, pay and discharge when due all license and registration fees, assessments, sales, use and property taxes, gross receipts, taxes arising out of receipts from use or operation of the Equipment, and other taxes, fees and governmental charges, together with any penalties or interest thereon, imposed by any state, federal or local government or agency, or department thereof, upon the Equipment or the purchase, use, operation or leasing of the Equipment whether or not the same shall be assessed against or in the name of Lessor or Lessee. 12. Insurance, Loss and Damages. 12.1 Lessee shall procure and continuously maintain and pay for all risk insurance against loss of and damage to the Equipment for not less than the full replacement value of the Equipment, naming Lessor as loss payee. Lessee shall provide Lessor with an original policy or certificate evidencing such insurance. Lessee hereby appoints Lessor as Lessee's attorney in fact with power and authority to do all things, including, but not limited to, making claims, receiving payments and endorsing documents, checks or drafts necessary or advisable to secure payments due under any policy of insurance required under this Lease. 12.2 Lessee assumes and shall bear the entire risk of loss and damage to the Equipment from any and every cause whatsoever. No loss or damage to the Equipment or any part thereof shall impair any obligation of Lessee under this Lease. 12.3 In the event of loss or damage of any kind whatsoever to the Equipment, Lessee, at Lessor's option (i) place the same in good repair, condition and working order; (ii) replace the same with like equipment in good repair, condition and working order; or (iii) pay to Lessor the replacement cost of the Equipment. 13. Events of Default. An event of Default shall occur under this Lease agreement if Lessee: 13.1 Fails to pay any installment of lease or other payment required by this lease agreement within ten (10) days following receipt of written notice of nonpayment by Lessor; 13.2 Without Lessor’s consent, attempts to remove, sell, transfer or encumber the Equipment or to permit a judgment or other claim to become a lien upon any or all of the Equipment; 13.3 Fails to perform or observe any other covenant, condition or agreement to be performed or observed by it under this lease agreement, and such failure or breach continues uncured for a period of thirty (30) days after receipt of written notice from Lessor; provided however, that no default shall occur if Lessee commences the cure of such default within said thirty (30) day period and thereafter diligently attempts to cure the default; or 13.4 Becomes insolvent, makes an assignment for the benefit of creditors, suffers dissolution or the termination of its existence, or if any bankruptcy proceeding started by or against Lessee, which if involuntary, is not dismissed within sixty (60) days. 14. Remedies. Upon the occurrence of any Event of Default and at any time thereafter, Lessor may, with or without terminating this lease, in its sole discretion, do any one or more of the following: 14.1 Declare the entire amount of Rent hereunder immediately due and payable without notice or demand to Lessee; 14.2 Sue for and recover all leaset and other payments then accrued or thereafter accruing; 14.3 Take possession of the Equipment, without demand or notice, wherever same be located, without any court order or process of law. Lessee hereby waives any and all damages occasioned by such taking of possession; 14.4 Terminate the lease agreement; or 14.5 Pursue any other remedy at law or in equity. Notwithstanding any repossession or any other action which Lessor may take, Lessee shall be and remain liable for the full performance of all obligations on the part of the Lessee to be performed under this Lease All of Lessor's remedies are cumulative, and may be exercised concurrently or separately. 15. Indemnity. Lessee shall indemnify and hold Lessor harmless from any and all claims, actions, suits, proceedings, costs, expenses, damages and liabilities, including reasonable attorney’s fees and costs, arising out of, connected with, or resulting from Lessee’s use of the Equipment, including without limitation the manufacture, selection, delivery, possession, use, operation or return of the Equipment. 16. Surrender. Upon the expiration or earlier termination of this Lease, Lessee agrees to return the Equipment to Lessor in good repair, condition and working order, ordinary wear and tear resulting from proper use thereof alone excepted, by delivering the Equipment at Lessee’s cost and expense to Lessor’s principal place of business. 17. Assignment. 17.1 Lessee’s rights or interests under this lease or in the Equipment shall not be transferred or assigned without the prior written consent of Lessor. 17.2 Lessor may transfer all or any part of its right, title or interest in this lease or the Equipment by way of assignment to a third party. 18. Waiver. One or more waivers of any provision of this lease by either party shall not be construed as a waiver of a further breach of the same provision. 19. Notices. All notices, requests, demands, consents, approvals, and other communications hereunder shall be sufficient if in writing and personally delivered or mailed by certified mail, postage prepaid, return receipt requested or by a nationally recognized express delivery service, as follows: OWNER: Multifeeder Technology, Inc. 4821 White Bear Parkway St. Paul, MN 55110-3325 With a copy to: Siegel, Brill, Greupner, Duffy & Foster, P.A. 100 Washington Avenue South Minneapolis, MN 55401 Attn: ____________________ Northeast Bindery 401 Trumbull Street Elizabeth, NJ 07206 With a copy to: 20. Binding Effect. This lease shall be binding on the parties hereto and their respective affiliates, subsidiaries, successors and assigns. 21. Severability. The invalidity or partial invalidity of any portion of this lease shall not invalidate the remainder thereof, and said remainder shall remain in full force and effect. 22. Waiver. One or more waivers of any provision of this lease by either Party shall not be construed as a waiver or further breach of the same provision. 23. Governing Law; Forum Selection. This lease shall be construed and enforced according to the laws of the State of Minnesota. The parties agree that any applicable conflict of law provision that results in the application of the laws a foreign jurisdiction shall be disregarded and this lease will not be subject to or interpreted under the United Nations Convention on Contracts for the International Sale of Goods. The parties further agree that all disputes, claims, controversies and disagreements relating to or arising out of this lease are subject to the exclusive jurisdiction and venue of the state and federal courts of Minnesota and hereby waive any objection to jurisdiction or venue in any proceeding before any such court in Minnesota. The exclusive choice of forum set forth in this section does not prohibit the enforcement of any judgment obtained in that forum or any other forum. 24. Entire Agreement. This lease constitutes the entire agreement between the parties on the subject matter hereof and it shall not be amended, altered, modified or changed except by a further writing signed by both parties. 25. Headings. Headings used in this lease are provided for convenience only and shall not be used to construe meaning or intent. 26. Counterparts. This lease may be executed in counterparts, all of which together shall constitute one document. IN WITNESS WHEREOF, the Parties have executed this lease to be effective as of the date first above written. Lessor: Lessee: Multifeeder Technology, Inc. By: ____________________________ By: __________________________ Its: ____________________________ Its: __________________________ EXHIBIT A EQUIPMENT Model No.: MFT 350 IP3 XLD Industrial Performance Friction Feeder Serial No.: Purchase Price of Equipment $ 35,097.00 Initiation Charge (5%) $ 1,754.85 LEASE BASIS PRICE $ 36,851.85 MONTHLY LEASE PAYMENT $ 5,527.78 DAMAGE DEPOSIT $ 5,527.78 TOTAL DUE AT RENTAL AGREEMENT SIGNING $ 11,055.56 Description: MFT 350 IP3 XLD Industrial Performance Friction Feeder system as per proposal # dated This lease has a 5% load with a 120 day buyout where 100% of the lease payments apply toward the purchase(toward the lease basis).
Notes: Northeast Bindery W.O. 2017039 Commission for RYPAC. $ 66,094.00 X .15 = $ 10,318.50 - half of discount ($ 1,348.00) = $ 8,970.50 7/6: In Integration. Due to be completed 7/7. FAT video to be sent 7/10. 6/29: Moved to Integration today. Integration will begin working on 7/5 6/22: Customer agreed to do PV and FAT with CR80 cards. Will not be sending samples. Pulled and ready for production 6/15: Mark going to process order. In production in early July. 6/8: Kick off meeting was 6/7. Mark will process order. 6/1: Leasing company asking for invoices. Payment coming this week? "4/14/17 Lease approved by leasing company, should have $$ next week or asap. Looking for late May delivery 3/30: Waiting on money 3/23: Waiting for the rest of the down payment. Paid $6K. Lindsay sent down payment reminder to customer 3/23"
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Edit	XID	Part Number	Serial Number	Part Name	Complete	Total Hours	Hours Remaining	Qty	Cost	Price	Discount	Cal Price	On Hand
Edit	28598	9108533	1722-09614	FEEDER 350 XLD HCP3 J MTR STD CFG	Set Complete	14 Standard Production Build 4 Integration and Testing	18 hrs	1		$21,716.00	0.00	$21,716.00	0
Edit	28599	7005190		STACKLIGHT TL50 GRY M12 CBL	Set Complete	2 Standard Production Build	2 hrs	2		$439.00	0.00	$878.00	18
Edit	28600	4291800		VACUUM CHAMBER 30 MM	Set Complete		0 hrs	2		$978.00			8
Edit	28601	9279400		ACCUTIPPING W/ENCODER	Set Complete	8 Integration and Testing	8 hrs	2		$5,345.00	0.00	$10,690.00	1
Edit	28602	7160000		SENS BGS MLV12 PNP 250MM ADJ	Set Complete	2 Standard Production Build	2 hrs	2		$687.00	0.00	$1,374.00	0
Edit	28603	8320000		HIGH PERFORMANCE PACKAGE	Set Complete	2 Standard Production Build	2 hrs	2		$2,140.00	0.00	$4,280.00	0
Edit	28604	4659800		BST STRADDLE FEEDER MOUNT 8020 KIT	Set Complete	8 Standard Production Build	8 hrs	2		$1,742.00	0.00	$3,484.00	0
Edit	28606	9290500		DCC IP STANDARD SPARE PARTS KIT	Set Complete	2 Pre-Production	2 hrs	2		$1,348.00	0.00	$2,696.00	8
Edit	28855			START UP ASSISTANCE (1-2 DAYS)	Set Complete		0 hrs	1		$4,000.00	0.00	$4,000.00
Edit	29385	9108533	1722-09615	FEEDER 350 XLD HCP3 J MTR STD CFG	Set Complete	14 Standard Production Build 4 Integration and Testing	18 hrs	1		$21,716.00	0.00	$21,716.00	0

+ denotes that software settings are available for this piece of equipment.

Labor Hours
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	Department	Quoted Hours	Est. Hours	Hours Remaining	Billed Hours	xid
Edit	Mechanical Eng.	0	0	0	0	1649
Edit	Electrical Eng.	0	0	0	0	1650
Edit	Software Eng.	0	0	0	0	1651
Edit	Integration	24	24	8	16	1652
Edit	Machine Shop	0	0	-0.75	0.75	1653
Edit	Management	0	0	0	0	1654
Edit	Additional Production	0	0	-44.25	44.25	1655

Purchase orders for this Work Order

Edit	XID	Description	PO	Partial	Cost
Edit	3444	MIDWEST CRATING - 68" L X 68" W X 30" H ID,	28018	yes	($248.00)


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			*PRODUCT STACK SHELVES ARE NOT INCLUDED WITH BASE-PICK WHAT IS NEEDED*


			**ALL ITEMS BELOW ARE INCLUDED IN COSTING & PRICING PN 9740001**