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HomeMy WebLinkAboutPR 19642: 5 YEAR CONTRACT WITH FARO TECHNOLOGIES, INC. LEASE OF A FOCUS 3D LASER SCANNER MEMORANDUM Port Arthur Police Department TO: Brian McDougal, City Manager FROM: Patrick Melvin, Police Administrator DATE: 1/24/17 Re: Proposed Resolution #19642 RECOMMENDATION The Police Department recommends the City Council approve the contract with Faro Technologies, Inc. of Lake Mary, Florida to provide a Focus 3D laser scanner along with corresponding software and accessories. It is further recommended that the City Council approves the operating lease agreement for this equipment through Lease Corporation of America of Troy, Michigan in the amount of$17,970.59 per year for a period of 5 years. BACKGROUND The Police Department currently utilizes a Nikon DTM-520 Total Station surveying tool and handheld evidence recorder when investigating major accident scenes. The processes used with this equipment and software are outdated and time consuming. This older technology limits the Police Department in trying to keep up with the current demands of courts and juries for information from the latest advancements in technology. FARO Technologies, Inc. is the sole developer and manufacturer of the FOCUS series of Laser Scanners and FARO crime/crash scene software. The Laser Scanner will allow for quick and accurate three-dimensional reconstruction of crime scenes as well as crash scenes, expanding the police department's current investigative capabilities. By going through an operating lease plan, the City will receive the latest software upgrades and will be able to automatically upgrade to the newest technology in the next five years. BUDGET/FISCAL EFFECT Funds are available for this project in account #001-1101-521.92-00. STAFF/EMPLOYEE EFFECT None SUMMARY The Police Department recommends the City Council approve the contract with Faro Technologies, Inc. of Lake Mary, Florida to provide a Focus 3D laser scanner along with corresponding software and accessories. It is further recommended that the City Council approves the operating lease agreement for this equipment through Lease Corporation of America of Troy, Michigan in the amount of$17,970.59 per year for a period of 5 years. PR 19642 1/24/17 mjf RESOLUTION NO. A RESOLUTION AUTHORIZING A FIVE (5) YEAR CONTRACT WITH FARO TECHNOLOGIES, INC. OF LAKE MARY, FLORIDA, THROUGH LEASE CORPORATION OF AMERICA FOR THE LEASE OF A FOCUS 3D LASER SCANNER AND ACCESSORIES FOR THE POLICE DEPARTMENT IN THE AMOUNT OF $17, 970 . 59 PER YEAR; FUNDING IS AVAILABLE IN ACCOUNT NO. 001- 1101-521. 92 . 00 . WHEREAS, the Police Department is in need of updating older technology to assist with investigations of fatality accidents and crime scenes; and WHEREAS, FARO Technologies, Inc . offers a contract through Lease Corporation of America where financing is available at a rate of $17, 970 . 59 per year for a duration of (five) 5 years; and WHEREAS, a copy of the contract pricing worksheet for this equipment is attached as Exhibit A; and WHEREAS, a brochure of the product description is attached as Exhibit B; WHEREAS, funds for this lease are available in account number 001- 1101-521 . 92-00; and NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct . Section 2 . That the Police Department is hereby authorized and directed to enter into a five (5) year contract with FARO Technologies Inc . , of Lake Mary, Florida, through Lease Corporation of America at a rate of $17, 970 . 59 per year for the lease of a Focus 3D Laser Scanner and accessories . Section 3 . That a copy of the caption of this resolution shall be spread upon the Minutes of the City Council . PR 19642 1/24/17 mjf READ, ADOPTED AND APPROVED on this day of , A.D. , 201 , at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES : Mayor: Councilmember: NOES: Derrick Freeman, Mayor ATTEST: Sherri Bellard, City Secretary APPROV • AS TO FORM: \1 / / • Val Ti e Ey Attorney APPROVED FOR ADMINISTRATION: Brian McDougal, City Manager Ala job. 60-wf 111-- Pat ick Melvi , Police Administrator PR 19642 1/24/17 mjf APPROVED AS TO AVAILABILITY OF FUNDS: • 4%! Interim Director of Finance r Clifton Williams, Acting Purchasing Manager P.R. No. 19642 1/24/17 mf EXHIBIT "A" Lease Corporation of America January 24,2017 F ORMAL PROPOSAL OBLIGOR: CITY OF PORT ARTHUR,TEXAS ✓ This is a finance/ownership contract.No residual value. I Fixed interest rate for the five(5)year term. EQUIPMENT: NEW BODY CAMERAS(OPTION 1)AND FARO EQUIPMENT(OPTION 2) OPTION 1 Acquisition Cost: $689,796.00 Term: Five(5)years First Payment Due: At Closing Down Payment: $0.00 Payment Mode: Annual in Advance Payment Amount: $146,618.87 Trade In: $0.00 Interest Rate: 3.140% Principal Balance: $689,796.00 Rate Factor: 0.212554 OPTION 2 Acquisition Cost: $84,614.04 Term: Five(5)years First Payment Due: At Closing Down Payment: $0.00 Payment Mode: Annual in Advance Payment Amount: $17,985.05 Trade In: $0.00 Interest Rate: 3.140% Principal Balance: $84,614.04 Rate Factor: 0.212554 * This proposal is subject to proper execution of mutually acceptable documentation. * This transaction must be properly executed and returned to Lease Corporation of America and the transaction funded on ALL proposals on or before February 15,2017. If funding does not occur within that time-frame,or there is a change of circumstance which adversely affects the expectations,rights,or security of Obligee or its assignees,then Obligee or its assignees reserve the right to adjust and determine a new interest rate factor and payment amount,or withdraw this proposal in its entirety. * This transaction must be designated as tax-exempt under Section 103 of the Internal Revenue Code of 1986 as amended. * OBLIGOR'S TOTAL AMOUNT OF TAX-EXEMPT DEBT TO BE ISSUED IN THIS CALENDAR YEAR WILL NOT EXCEED THE$10,000,000 LIMIT,OR THE INTEREST RATE IS SUBJECT TO CHANGE. 11 CITY OF PORT ARTHUR,TEXAS Signature: Lease Corporation of America Typed Name&Title Date: Page: 1 F WU FARO Technologies Inc Remit to: Quotation No: 20071095 250 Technology Park FARO Technologies, Inc. Quote Date: 07/19/2016 Lake Mary FL 32746-7115 P.O. Box 116908 Expiration Date: 02/20/2017 Phone No: (407)333-9911X1319 Atlanta, GA 30368-6908 Fax No: Regional Manager: Kelly Watt Email: rick.ajdain@faro.com Account Manager: Oscar Cruz Sales Support: Tariq Ajdain Ship: 2 Day Bill To : Ship To : Payment Terms: Net due in 30 days Port Arthur Police Port Arthur Police with approved credit Department(TX) Department(TX) Delivery Terms: EXW Origin 645 4th St Jason Miles Delivery Date: 2-6 Weeks Port Arthur TX 77640-6455 645 4th St US Port Arthur TX 77640-6455 US Qty Item No. Description Unit Price Discount Ext. Price 1 S-7-X330 3D_HW LS_Focus3D X330 55,490.00 5,549.00 49,941.00 Focus3D X 330 Laser Scanner. Ships with: 1 Focus3D X 330, with GPS, compass, altimeter (barometer), dual-axis compensator and WLAN, 1-Year Standard Warranty , 1 PowerBlock Battery, 1 32GB SD Card, 1 SD Card Reader, 1 SD Card Cover, 1 Power Dock, 1 Quick Charge Power Supply, 1 Car Power Supply, 1 Rugged Transport Case with Wheels, 1 Ruggedized Protection and Transport Cover(in aluminum), 1 Panorama Quick Release, 1 Optical Cleaning Set, Training at FARO facility. SCENE Software licenses are purchased separately. NOTE: lead-time may take 6 weeks or more after receipt of written order. PURCHASE AGREEMENT AND CONDITIONS OF SALE Customer will pay any federal,state and local taxes.All conditions of sale,service and warranty as described in FARO standard purchase conditions currently on file with FARO are made as part of this Quotation and are incorporated herein by reference(f/contro1/04/ref198-012).DR12 PLEASE REFERENCE FARO QUOTE NUMBER ON ALL DOCUMENTS.BY REFERENCING FARO QUOTE,CUSTOMER AGREES TO SAID TERMS AND CONDITIONS AS LISTED ON FARO QUOTATION. FARO Technologies GSA Contract#GS24F0044M Page: 2 FAO Quote no. 20071095 Qty Item No. Description Unit Price Discount Ext. Price 1 TR-SCN-POS Laser Scanner Tr. - FARO Fac. - 0.00 0.00 0.00 Inc Three-day course for two(2) trainee at an approved FARO training facility that discusses LS operation, setup, and basic measurements. NOTE: Classroom trainings are limited to six(6) trainees and are scheduled on a first come, first served basis. Classes can be canceled within two weeks of the scheduled date if sufficient enrollment is not met. NOTE: Training will expire if not taken within 90-days of receipt of equipment. No charge item applicable only with purchase of laser scanner. 1 SOFTS0369 3D_SW_SC_SCENE Dongle 190.00 19.00 171.00 Hard lock (USB Dongle)for one SCENE single user license. SCENE SCENE licenses purchased separately. PAN) 1 SOFTS0302 3D_SW SC_SCENE 5,990.00 599.00 5,391.00 SCENE version 6.N. Software and license to process data of FARO 3D Laser Scanners. Includes 1-year of software maintenance. 1 TR-SCN-POS-FOR-O OnSite Forensics Cust-Site Upg. 8,140.00 0.00 8,140.00 5 Day Additional travel and lodging fees may be required for travel outside the US and Canada.# 1 SMA-SC-1Y 3D_MA_SC_SCENE 990.00 99.00 891.00 Maintenance 1Y STAND Maintenance for SCENE software. Includes SCENE software upgrades during the term of the contract. Duration: one (1)year. Scope of service according to the conditions of the SCENE maintenance contract. Page: 3 A Quote no. 20071095 Qty Item No. Description Unit Price Discount Ext. Price 1 SWS-FCX-1Y 3D_WA_LS_Focus3DX 4,720.00 472.00 4,248.00 Warranty_1 Y_STAND One (1) year Standard Warranty for FARO Focus3D X Series includes annual certification and recalibration. Parts, labor and return shipping charges covered. Goal is to have service completed within 10 business days from date of receipt. 1 SMA-SC-3Y 3D_MA_SC_SCENE 2,490.00 249.00 2,241.00 Maintenance 3Y STAND Maintenance for SCENE software. Includes SCENE software upgrades during the term of the contract. Duration: Three (3)year. Scope of service according to the conditions of the SCENE maintenance contract. 1 SWS-FCX-3Y 3D_WA_LS_Focus3DX 11,670.00 1,167.00 10,503.00 Warranty_3Y_STAND Three (3)year Standard Warranty for FARO Focus3D X includes annual certification and recalibration. Parts, labor and return shipping charges covered. Goal is to have service completed within 10 business days from date of receipt. 1 ACCSS6005 3D_AC_LS_Carbon Fiber 1,070.60 1,070.60 0.00 Compact Tripod High-level carbon fiber tripod for Focus3D X 330 and Focus 3D X 130. 1 SOFTS0334 3D_SW_SC_SCENE Extension 2,000.00 200.00 1,800.00 Forensic Extension of FARO SCENE software with additional features SCENE for forensic applications. Page: 4 FARO Quote no. 20071095 Qty Item No. Description Unit Price Discount Ext. Price 1 ACCSS6008 3D_AC_LS_Compact Dolly for 445.20 445.20 0.00 Tripod Tripod dolly for carbon fibre tripod ACCSS6005 0'1\464****".1 1 ACCSS0299 80Mm Koppa Target Set W/ 1,335.60 133.56 1,202.04 Trajectory Rods A combination set of 12 80mm targets-6 magnetic base targets, 6 trajectory mount. Includes 6 1/4" x 10"aluminum, magnetic base stand-off rods. All shipped in a plastic storage crate. Order Total: 94,531.40 Discount Amount: -10,003.36 Shipping Total: 86.00 Total in USD: 84,614.04 Page: 5 �•ItU% Quote no. 20071095 Additional Information QUOTE TERMS To accurately and promptly process your order,the following information is required with your Purchase Order. 1. Purchase Order Number(PO#) 2. Bill To AND Ship To Address(even if they are the same) 3. Net 30 or Sooner Payment Terms 4. Prepay and Add Freight Charges OR Collect(with your shippers Account#) 5. Method of Shipment(Best Way,Ground,Overnight,2DAY) 6. FOB Origin or Destination(for GSA and Warranty ONLY Customers) 7. FARO Quote Number 8. PO Signed and Dated 9. Ship To State Tax Exemption Certificate OR acknowledgement to charge tax 10. Signed Credit Application(New Customers ONLY) Quoted delivery terms are contingent upon timely receipt of all above listed items. CALIBRATION CAPABILITIES FARO meets the calibration requirements of ISO 17025. If another calibration standard is required please discuss with your sales contact. FARO follows the recommendation of the ASME B89.4.22-2004,Appendix J,in the application of the decision rule to testing results. This appendix states"B89 standards that adopt standards referencing ISO 14253-1 as a normative standard shall explicitly state a different default decision rule,where the 4:1 simple acceptance and rejection rule from B89.7.3.1 shall be the default rule unless a different rule is specified." Page: 6 Quote no. 20071095 STANDARD TERMS AND CONDITIONS OF SALE These standard terms and conditions of sale are the only terms and conditions,oral or written,applying to the sale of equipment,Software,other products or services('Product')to Purchaser except for additional terms consistent with these standard terms and conditions on prices,quantities,delivery schedules,and the description of the Products as set forth in an order issued by FARO or approved by FARO(each,an'Order'). FARO hereby objects to and rejects any other terms or conditions appearing on,incorporated by reference in or attached to any purchase order,acceptance, acknowledgement,invoice,transmittal or other document and FARO's acceptance of any Order is expressly made conditional on Purchaser's acceptance of these standard terms and conditions. FARO's failure to object to any provision contained in a document or communication from Purchaser shall not be a waiver of these standard terms and conditions. Acceptance of these standard terms and conditions and any Order,both or either of which may be delivered to Purchaser in electronic form by FARO shall be deemed to have occurred upon the earlier of(i)executing or accepting these standard terms and conditions,(ii)executing or accepting any Order,(iii)when Purchaser is aware that FARO has commenced performance thereunder or(iv)taking delivery of any Products. All capitalized terms used but not defined in the body of this document are defined in Section 10.00. 1.00 Payment of Purchase Price 1.01 Subject to credit approval by FARO and except as otherwise expressly set forth in an Order,the Purchase Price for Product shall be paid to FARO within thirty(30)days from the date of FARO's invoice.If FARO determines not to extend credit to Purchaser,FARO reserves the right to require Purchaser to pay for Product by wire transfer prior to shipment. FARO shall be entitled to issue an invoice upon shipment of Product. FARO has the right to charge interest on late Purchase Price payments at a rate of 1.5%per month(18%per annum). 1.02 Purchaser shall also pay FARO for any and all governmental taxes,charges or duties of every kind(excluding any tax based upon FARO's income)that FARO may be required to pay with respect to the production,transportation,export,import,storage,delivery,purchase,sale or use of Product.Purchaser shall provide FARO,on request,with properly completed exemption certificates for any tax or duty from which Purchaser claims an exemption. 1.03 Purchaser grants to FARO a security interest in all Product sold pursuant to the Order,which FARO may perfect by filing a UCC Financing Statement or by other filings,registrations or notices as may be required.Any such security interest will remain in effect until FARO has received payment in full of the Purchase Price together with interest on any late Purchase Price payments. 1.04 If Purchaser fails to make full payment of the Purchase Price in accordance with the terms set forth in the Order,FARO shall,at its sole option,have the right to the following remedies,which shall be cumulative and not alternative and which are not exclusive: a)the right to cancel the Order and enter Purchasers premises to re-take possession of Product,in which event Purchaser agrees that any down payment or deposit for Product shall be forfeited to FARO as liquidated damages and not as a penalty,and all costs incurred by FARO in connection with the removal and subsequent transportation of Product shall be payable by Purchaser upon written demand; b)the right to enter Purchasers premises and remove any Software,components of Product or other items necessary to render Product inoperative; c)the right to withhold all services which would otherwise be required to be provided by FARO pursuant to the Warranties set out in Section 4.00 hereof; d)the right to terminate any existing Software license agreement with Purchaser;and e)the right to pursue any other available remedy,including without limitation suing to collect any remaining balance of the Purchase Price(i.e.,accelerate the payment of the Purchase Price, causing the entire balance to immediately become due and payable in full). 1.05 Except as expressly set forth in Section 4.06,FARO does not permit returns on any Products shipped. 1.06 No waiver by FARO of its rights under these terms and conditions shall be deemed to constitute a waiver of subsequent breaches or defaults by Purchaser.In the event more than one Product is being purchased pursuant to the Order,unless otherwise set forth herein,each payment received by FARO from Purchaser shall be applied pro rata against the cost of each Product rather than being applied to the Purchase Price of any Product 1.07 Purchaser shall pay FARO all costs and expenses of collection,suit,or other legal action to enforce the Order,including,but not limited to,all actual attorneys'and paralegal fees and collection costs FARO may assign any cause of action that it has against Purchaser without Purchaser's consent 2.00 Delivery and Transportation 2.01 Delivery dates set forth in the Order are estimates and not guarantees,and are based upon conditions at the time such estimate is given. 2.02 FARO shall not be liable for any loss or damage,whether direct,indirect or consequential,resulting from delivery of Product past the estimated delivery date.If Product is not delivered within 90 days of the estimated delivery date,Purchaser's sole remedy shall be to cancel the Order and to recover from FARO,without interest or penalty,the amount of the down payment or deposit and any other part of the Purchase Price which has been paid by Purchaser.Notwithstanding the foregoing,such right of cancellation shall not extend to situations where delayed delivery is due to a Force Majeure Event(as defined in Section 9.01).Any delays resulting from a Force Majeure Event shall extend estimated delivery dates by the length of such delay. 2.03 If there is a shortage of Product,excessive demand for Product or any other reason for which FARO is unable to supply the full amount of Product specified in Purchaser's Order,FARO reserves the right to allocate its available supply of Product among its customers and distributors.The allocation of Product shall be in such a manner and in such amounts as FARO determines in its sole discretion. 2.04 Responsibility for all costs and risks in any way connected with the storage,transportation and installation of Product shall be borne entirely by Purchaser.If any disagreement arises as to whether or not damage to Product was in fact caused in storage,in transit or on installation,the opinion of FARO's technical advisors,acting reasonably,shall be conclusive. 2.05 Unless otherwise agreed to by FARO in an Order,Product shall be delivered by FARO at FARO's premises EXW(Ex Works)as defined in Incoterms 2010. 3.00 Installation,Operator Training and Maintenance 3.01 Purchaser shall be responsible for installation of Product,including,without limitation,the preparation of its premises,the uncrating of Product and setting up of Product for operation. 3.02 Subject to Section 4.00,Purchaser shall be responsible for all maintenance of Product 4.00 Warranties and Exclusions;Exclusive Remedies and Disclaimers 4.01 Subject to Section 4.05,FARO warrants that any Product(but excluding Software and services)shall be free from material defects in workmanship or material affecting the fitness of Product for its usual purpose under normal conditions of use,service and maintenance.FARO makes no warranty that any Product will operate in an uninterrupted or error free manner. 4.02 Subject to Section 4.05,FARO warrants that any Software shall operate substantially according to written user documentation provided by FARO. FARO makes no warranty that any Software will operate in an uninterrupted or error free manner. 4.03 The warranties set out in paragraphs 4.01 and 4.02 above(together,the'Warranties')shall expire at the end of the twelve(12)month period commencing on the last day of the calendar month in which Product was delivered to Purchaser(the'Warranty Period'). 4.04 To properly make a claim under the Warranties,Purchaser must deliver written notice to FARO during the Warranty Period,at FARO's contact information set forth on the Order,of a breach of the Warranties,together with a description of such breach in reasonable detail.Within a reasonable time following receipt of such proper notice FARO shall have Product diagnosed by its service personnel.Nothing herein contained shall be construed as obligating FARO to make service,parts,or repairs available for any breach reported after the expiration of the Warranty Period. If Product is determined by FARO,in its reasonable opinion,to be covered by and in breach of the Warranties,FARO will,as Purchaser's sole and exclusive remedy,repair or adjust Product to the extent determined by FARO to be necessary or,at the option of FARO,will replace Product with replacement Product or parts therefor at no cost to Purchaser,other than the cost of shipping Product to FARO pursuant to Section 4.06.If Product is determined by FARO,in its reasonable opinion,not to be covered by or not to be in breach of the Warranties,Purchaser shall pay the cost of service,which shall be the amount that FARO would otherwise charge for an evaluation under a non-warranty service evaluation. 4.05 The Warranties shall not apply to or cover a)Any defects in any component of a Product if,in the reasonable opinion of FARO,(i)Product has been improperly stored,installed,operated,or maintained;(ii)the defect was caused by or relates to misuse or extraordinary use of Product,or to use of Product outside the purpose for which Product was designed and manufactured;(iii)Purchaser has permitted unauthorized modifications, additions,deletions,adjustments and/or repair to any Software,hard drive structure or content,or any other part of Product,or which might otherwise affect Product;or(iv)the defect was caused by,or repairs are required as a result of,causes external to FARO workmanship or the materials used by FARO.As used herein,'unauthorized'means that which has not been approved and authorized by FARO in writing. b)Any replacement of expendable items,including,but not limited to,fuses,diskettes,printer paper,printer ink,printing heads,disk cleaning materials,or similar cleaning items. c)Minor preventive and corrective maintenance,including,but not limited to,replacement of fuses,disk drive head cleaning,fan filter cleaning and system clock battery replacement. d)Any Product or component which was sold or transferred to any party other than the original Purchaser unless transferred in accordance with section 4.11 or prior express written consent is obtained. e)Any defect in or related to Product which FARO cannot duplicate with reasonable effort. f)Any defect in or related Product caused by materials,including hardware,software or data not supplied by FARO. g)Any defect caused or resulting from accident,physical,electrical or magnetic stress,failure of electric power,air condition or environmental controls,use in or with defective or noncompatible equipment,hardware,software or data. h)Any defect or problem caused by changes in the operating characteristics of computer systems,hardware or software developed after Product is delivered. i)Any Product exported by Purchaser outside of the United States or Canada. j)Any demonstration or used Product k)Any services of FARO. ALL SERVICES OF FARO ARE PROVIDED TO PURCHASER'AS IS'WITHOUT WARRANTY OF ANY KIND. I)Any Third Party Product sold or included with the Products. Such Third Party Products are provided with the manufacturer's warranties,if any,which FARO is permitted to pass on to Purchaser. OTHERWISE,SUCH THIRD PARTY PRODUCTS ARE PROVIDED TO PURCHASER'AS IS'WITHOUT WARRANTY OF ANY KIND. 4.06 Factory Repairs a) IF PRODUCT IS UNDER WARRANTY:Purchaser agrees to ship Product to FARO in the original packing container at Purchaser's sole cost and expense.FARO will return the repaired or replacement Product to Purchaser at FARO's sole cost and expense. IF PRODUCT IS UNDER A SEPARATE PREMIUM SERVICE PLAN:Men practical,as determined by FARO in its sole discretion,and subject to availability, FARO will make available to Purchaser substitute component parts or substitute Product('Temporary Replacements')as appropriate while Purchaser's Product is undergoing repair. Shipping charges for these Temporary Replacements will be the responsibility of FARO. b) IF PRODUCT IS NOT UNDER WARRANTY:Purchaser shall be responsible for the cost of any repair or replacement of any part,Software or Product,together with all shipping charges related to such repair or replacement.All charges shall be estimated and prepaid by Purchaser to FARO prior to commencement of repairs. 4.07 FARO may authorize the manufacturer of a component of Product to perform any Warranty service. 4.08 Purchasers sole and exclusive remedy,and FARO's sole and exclusive liability hereunder,with respect to breach of warranty relating to any Product,consists of the obligation to repair, adjust or replace Product as provided in Section 4.04. 4.09 DISCLAIMER OF WARRANTIES. THE WARRANTIES SPECIFIED IN THIS SECTION 4.00 ARE THE COMPLETE WARRANTIES BETWEEN FARO AND PURCHASER.THEY SUPERSEDE ALL PROPOSALS,PROMOTIONS,ADVERTISEMENTS,REPRESENTATIONS OR PRIOR WARRANTIES,VERBAL OR WRITTEN,AND ANY COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE SUBJECT MATTER OF THESE WARRANTIES. EXCEPT FOR THE EXPRESS WARRANTIES SPECIFIED IN THIS SECTION 4.00,FARO EXPRESSLY DISCLAIMS ALL WARRANTIES,EXPRESS OR IMPLIED,ARISING FROM COURSE OF DEALING OR USAGE OF TRADE,STATUTORY OR OTHERWISE,INCLUDING BUT NOT LIMITED TO IMPLIED CONDITIONS AND WARRANTIES OF MERCHANTABILITY,QUALITY,FITNESS FOR A PATICULAR PURPOSE,CORRESPONDENCE WITH DESCRIPTION OR QUALITY,AND NON-INFRINGEMENT. Page: 7 Quote no. 20071095 4.10 FARO does not authorize any person(whether natural or corporate)to assume for FARO any liability in connection with or with respect to Product.No agent or employee of FARO has any authority to make any representation or promise on behalf of FARO,except as expressly set forth herein or in the Order,or to modify the terms or limitations of the Warranties.No verbal statements shall be binding upon FARO. 4.11 The Warranties extend only to Purchaser and are transferable by Purchaser only under the following conditions: 1.Product is currently within the Warranty Period; 2.The new owner is,or becomes,a Certified User; 3.A FARO warranty transfer form is completed and submitted to FARO Customer Service. 4.12 All claims under the Warranties must originate with Purchaser,or any subsequent owner that becomes a Certified User,and Purchaser will indemnify,defend and hold FARO harmless from any and all claims,liabilities,damages,costs and expenses for breach of warranty asserted against FARO by any third party. 4.13 PURCHASER ACKNOWLEDGES THAT IT HAS PURCHASED PRODUCT BASED UPON ITS OWN KNOWLEDGE OF THE USES TO WHICH PRODUCT WILL BE PUT. FARO SPECIFICALLY DISCLAIMS ANY WARRANTY OR LIABILITY RELATED TO THE FITNESS OF PRODUCT FOR ANY PARTICULAR PURPOSE OR ARISING FROM THE INABILITY OF PURCHASER TO USE PRODUCT FOR ANY PARTICULAR PURPOSE. 4.14 FARO is an equal opportunity employer. All candidates for employment will be considered without regard to race,color,religion,sex,national origin,physical or mental disability,veteran status,or any other basis protected by applicable federal,state or local law. 5.00 Limitations of Liability 5.01. In no case shall FARO be liable for any indirect,special,incidental,punitive or consequential damages arising from any cause whatsoever,whether based in contract,tort(including without limitation negligence),strict product liability or any other theory of law(including without limitation theories of equitable relief),including,but not limited to,injury to or death of any operator or other person,damage or loss resulting from inability to use Product,increased operating costs,loss of production,loss of profits or revenues,loss of software or data,any cost or expense of providing substitute product or software during periods of,or resulting from,malfunction,non-use or maintenance or repair(except as provided in Section 4.06(b)),or damage to property.The disclaimer of liability for indirect,special,incidental,punitive and consequential damages extends to any damages which may be suffered by third parties,including without limitation,caused directly or indirectly resulting from test results or data produced by Product or any component thereof,and Purchaser agrees to indemnify and save FARO harmless from any such claims made by third parties. 5.02 FARO's maximum aggregate liability arising out of or relating to any Product from any cause whatsoever,whether based in contract,tort(including without limitation negligence),strict product liability or any other theory of law shall not exceed the Purchase Price received by FARO for the Product to which such liability relates.In all cases,FARO's maximum aggregate liability arising out of or relating to an Order shall not exceed the aggregate amounts paid by Purchaser to FARO under such Order. 5.03. The limitations of liability in this Section apply even if FARO had notice of the possibility of damages and even if any exclusive remedies fail of their essential purpose.Purchaser acknowledges that FARO has set its pricing in reliance upon the limitations of liability and the disclaimers of warranties and damages set forth in these terms and conditions,and that the same form an essential basis of the bargain between the parties. 6.00 Design Changes 6.01 Product is subject to changes in design,manufacture and programming between the date of the Order and the actual delivery date. 6.02 FARO reserves the right to implement such changes without Purchasers consent.Notwithstanding the foregoing,nothing contained herein shall be construed as obligating FARO to include such changes in Product provided to Purchaser. 7.00 Intellectual Property 7.01 As between FARO and Purchaser,FARO owns all ownership in all FARO Intellectual Property,and Purchaser shall not own or acquire any right,title or interest in any FARO Intellectual Property. FARO grants Purchaser only a limited,non-exclusive,non-transferable license to use any Software in object code form only and,unless otherwise set forth in an Order or approved in writing by FARO,only with Product in which such Software is installed or embedded. 7.02 Purchaser acknowledges and agrees that the Software contains trade secrets,and confidential and proprietary information,of FARO,and shall maintain all Software as confidential and proprietary information of FARO,and shall use no less than the same degree of care to avoid misuse or improper disclosure of the trade secrets,and confidential and proprietary information,than Purchaser uses with respect to its own similar information,which shall be no less than a reasonable degree of care.Purchaser shall not,in whole or in part,reproduce or duplicate(other than that which is necessary and incidental to the ordinary use of the Software in compliance with these terms and conditions,or for purpose of making one(1)archival or back-up copy of the Software),alter,modify, disassemble,reverse assemble,decompile,reverse compile,reverse engineer,sell,transfer,assign,sublicense,lease,rent or use in connection with a service bureau or to provide services to others,in any manner the Software,in whole or in part,or permit access to or use thereof by any third party. 7.03 Purchaser acknowledges that any unauthorized use of the Software,or any right therein,will result in irreparable harm to FARO,and that FARO shall be entitled to damages,lost profits, attorney's fees,costs,expenses,and injunctive relief,including without limitation temporary restraining orders,preliminary injunctions and permanent injunctions from any such unauthorized use. 7.04 Purchaser shall forthwith execute any further assurances in the form of non-disclosure or licensing agreements which may reasonably be required by FARO in connection with the Software. 8.00 Indemnification Purchaser will defend,indemnify and hold harmless FARO against all 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P.R. No. 19642 1/24/17 mf EXHIBIT " B " FARO Laser Scanner Focus3D X 330 Features, Benefits & Technical Specifications FAR°__. „,„, iii INI No1 ( ) -, Ilik i t I Liiiiii g.37... CUS � - t 4yrs Via.. ............ ,.yk is PIILI (f ) sairairi / : (0 i , .0 \,,v, r \.\ "tr.,.y , „q� C r!!'r ..+ I.L r • Focus3D X 330E-;uNiit Ci r � • The Perfect Instrument for 3D Documentation and Land Surveying Building on the success of the Focus3D, the new Focus3D X 330 surpasses previous models in functionality and performance. With a range almost three times greater than previous models, the Focus3D X 330 can scan objects up to 330 meters away and in direct sunlight. With its integrated GPS receiver, the laser scanner is able to correlate individual scans in post- processing making it ideal for surveying based applications. In addition, the Focus3D X 330 scan quality has been increased and noise has been reduced, providing precise three dimensional models in a photo-realistic style.These advances in performance did not come at the expense of safety as the Focus3D X 330 includes a Class 1 "eye safe" laser. With its increased range and scan quality,the Focus3DX 330 considerably reduces the effort involved in measuring and post- processing.The 3D scan data can easily be imported into all commonly used software solutions for accident reconstruction, architecture, civil engineering, construction, forensics, industrial manufacturing and land surveying. Distance dimensions, area and volume calculations,analysis and inspection tasks and documentation can thus be carried out quickly, precisely and reliably. How the Focus3D X 330 Works The technology behind the Focus3D X 330 is simple. First,the laser scanner emits a laser beam from a rotating mirror out towards the area being scanned. Then the unit distributes the laser beam at a vertical range of 300°and a horizontal range of 360°. The laser beam is then reflected back to the scanner by objects in its path. The fi distance to the objects defining an area is calculated as well as their relative vertical 414 # . and horizontal angles.The data is captured and transmitted via WLAN for calculating '".. precise 3D renderings. d Focus3D X 330 FAL rao ... . ., Features of the Focus3°X 330 i s Extended Scanning-330m Range Z.rtM. .. The FOCUs3D X 330 can scan objects up to 330 meters i x ,. - C4, r r - away.Large buildings, land-site excavations and i -t.101001W01;;--.7 . r4 vast terrains can be surveyed with fewer scans,thus j " resulting in quicker project scanning completion. o Easy Positioning-Integrated GPS Receiver (_v With its integrated GPS receiver,the laser ' scanner is able to correlate individual scans in post-processing making it ideal for surveying based applications. '-'�- CI Outdoor Scanning Capability The Focus3D X 330 now is able to perform fast and , i 7.147 highly precise scanning in direct sunlight. IF in Low Noise Performance ,•••„•,•,,,,,, q,y,A,y,•r..,%mr•oral 1,ct 0491 The Focus.'”X 330 delivers extraordinary scan data II ! quality with very low noise. �� z_ w;. Compass ,j *, ® An electronic compass is included within the unit to associate directional data to your scans and > t facilitate the auto-registration process. dy ® Height Sensor(Altimeter) Each scan includes height information which can be used to scan different floor levels in a building. The data can then be used to differentiate the floors. sos Dual Axis Compensator 0 To minimize the number of targets needed,the dual � x ' � •, ,-; e axis compensator enables every scan to have a• integrated level information. -',,,;:-.1,. .-' .'.:•,...:-'" -., WLAN(WiFi) arr ,z. WLAN remote control allows starting,stopping, • t " I h "' _ viewing or downloading of scans at a distance. 1 h,], '' t , s, Benefits to the End User Benefits to the Company • 330m scanning range reduces the number of • Provides long term investment for future scans per project projects • Portability allows user to scan complex • Dedicated users can act as general scanning objects and environments providers within organization • GPS receiver helps correlate individual scans • Real world environments are preserved in a during post-processing virtual 3D world • Touch-screen interface makes the scanner • Unsurpassed cost-value proposition make easy for anyone to use every scanning project economical SCENE Redefining productivity for laser scanning workflows F w R0 r w INTUITIVE USER INTERFACE SCENE features an enhanced intuitive user interface 4 , that offers guidance and support for complex tasks. In addition,with improved and automated workflows, target based registration can now be accomplished �`1w.. efficiently for the usage of survey control data. • 4 , 4'4 i , POWERFUL SOLID 3D SURFACES RENDERING The solid surfaces rendering engine presents point cloud data with unmatched clarity and detail. Intelligent algorithms reduce gaps in the point clouds to a minimum.The new full color detail functionality ''1r provides best color detail,including scan data collected at low resolution. J, HDR MAPPING The fully automatic HDR mapping function preserves realistic image details and true color appearances within the scan data captured with a Focus3D HDR Laser Scanner even in challenging lighting conditions. 3D MESHING SCENE provides a powerful new meshing tool for automatic modeling of free form shapes,such as statues,equipment,industrial components and buildings.Meshes can be calculated,viewed and exported into various standard formats all within SCENE, • ' ' " ''" ` thus eliminating the need for 3rd party software. SCENE software is specifically designed for all FARO Focus3D and Freestyle BENEFITS Laser Scanners and third party sensors. SCENE processes and manages scan data efficiently and easily by using automatic object recognition,scan ► Automated standard workflows reduce registration and positioning.Offering full color images SCENE also provides tools overall data processing cost for automated targetless and target-based scan positioning while generating ► Verification steps in scan registration ensure high-quality data quickly and conveniently. confidence in data and project quality Once SCENE has prepared the scan data the user can begin the evaluation Increased project efficiency by incorporating and processing right away, from simple measuring to 3D visualization to survey control registration results exporting into various point cloud and CAD formats.Scan projects can now be ► Minimized training effort through intuitive and published on the Internet with the push of a button. efficient user-guidance ► Customized and expandable deliverables SCENE WebShare Cloud is a cloud-based hosting service from FARO for easy with SCENE's integrated plug-in apps and secure sharing of scan project data and collaborating worldwide via the Internet.With SCENE WebShare Cloud,FARO offers a comprehensive service to provide users with simple access to 3D scan data every time,everywhere. FARO Focus3DX 330 FAO www.faro.com/focus Performance Specifications ISUMI BeEAEAl1VERITAS CenA talion ® Contract Holder Ranging Unit Unambiguity Interval:By 122 to 488 Kpts/sec at 614m;by 976 Kpts/sec at 307m Range Focus3D X 330:0.6m-330m indoor or outdoor with upright incidence to a 90%reflective surface Measurement Speed(pts/sec): 122,000/244,000/488,000/976,000 Ranging Error':±2mm Ranging noise2 @10m @l0m-noise compressed3 ©25m @25m-noise compressed' @ 90%refl. 0.3mm 0.15mm 0.3mm 0.15mm @ 10%refl. 0.4mm 0.20mm 0.5mm 0.25mm Color Unit Resolution:Up to 70 megapixel color Dynamic Color Feature:Automatic adaption of brightness Parallax:Co-axial design Deflection Unit Vertical Field of View(vertical/horizontal):300°/360° Step Size(vertical/horizontal):0.009°(40,960 3D-Pixel on 360°) /0.009°(40,960 3D-Pixel on 360°) _ Max.Vertical Scan Speed:5,820rpm or 97Hz Laser(Optical Transmitter) Laser Class:Laser class 1 Wavelength: 1550nm Beam Divergence:Typical 0.19mrad (0.011°) (1/e,halfangle) Beam Diameter at Exit Typical 2.25mm (l/e) Data Handling and Control Data Storage:SD,SDHCTM,SDXCTM;32GB card included - Scanner Control:Via touch-screen display and WLAN New WLAN Access:Remote control,scan visualization are possible on mobile devices with Flash® Multi-Sensor Dual Axis Compensator:Levels each scan with an accuracy of 0.015°and a range of±5° Height Sensor:Via an electronic barometer the height relative to a fixed point can be detected and added to a scan Compass:Electronic compass gives the scan an orientation.A calibration feature is included. GPS:Integrated GPS receiver 'Ranging error is defined as a systematic measurement error at around tom and 25m,one sigma.'Ranging noise n defined as CLASS 1 a standard deviation of valves about the best-fit plane for measurement speed of 122,000 points/sec.'A noise-ccrnpression LASER PRODUCT algorithm may be activated thereby compressing raw data noise by a factor of 2 or 4.Subject to change without prior notice. Ferromagnetic objects can disturb the earth magnetic field and lead to inaccurate measurements. • Hardware Specifications Power Supply Voltage: 19V(external supply), 14.4V(internal battery) Cable Connector:Located in scanner mount Power Consumption:40W and 80W (while battery charges) Weight:5.2kg Battery Life:4.5 hours Size:240 x 200 x 100mm Ambient Temperature:5°-40°C Maintenance Calibration:Annual Humidity:Non-condensing OPE For more information call 800.736.0234 pr` or visit www.faro.com/focus ©2013 FARO I FARO and the FARO Logo are registered trademarks of FARO Technologies Inc. SFDC_04MKT 0357 Created:10/10/13 SCENE a:I' SPECIFICATIONS Processing Scan Data Creating Workspaces -Automatic search for reference spheres and black and white - Project Point Cloud for efficient navigation in 3D data reference targets -Object fitting with visual quality indicators for spheres/tubes/planes -Targetless scan placement by TopView based registration or cloud-to-cloud (including automatic border detection) registration methods.Alternatively,automatic identification of edges,corner -The ability to take measurements points and fast plane detection - Intuitive user interface with structure view - Improved registration results through intelligent fine registration and - Documentation objects to add notes and attach external documents via additive verification hyperlink technology -Object markers for the manual identification of spheres,black and white -Creation of virtual scans reference targets,circular reference targets,planes,and slabs -Online correspondence search for the automatic assignment of reference Analysis points.Now even faster through parallelization - Distance measurements -Automatic coloring of the scans with the high-resolution color photographs of - Additional capabilities using plugins the FARO color option - HDR coloring of scan points with the aid of imported color photos Views -Editing of multiple scans at once in 3D View -Solid 3D surfaces rendering with full color detail -Generation of new scan files of selected areas -3D View,Planar View&Quick View -Filters(including"dark points",and"stray points") -Stereoscopic visualization with suitable graphics board and 3D capable device -Optional Edge Artifact filter for additional noise reduction -Scans are shown either in color or black&white -Create and view watertight meshes from 3d selections and clip boxes - CAD object display - Correspondence view to control scan placement on the screen Data Management of Extensive Projects -Multiple clipping boxes to control the visualization in 3D View -Project database with multi user interface and project history -Hierarchical structure System Requirement -Graphical project view to manage all existing scan projects -Bundling of an unlimited number of scans to one project Speimal Recommended Specifications" Specifications -Printable registration reports(PDF) Processor 64-bit(x64)with at least Quad-core x64 Navigation 2-gigahertz(GHz)(For Intel Core i7/Xeon,8 physical - Displaying of scan positions for viewpoint selection and changing to other example,Intel Core i7) cores scans by clicking Graphics Card OpenGL 4.1,or higher Dedicated graphics card -3D navigation supports 3Dconnexion Space Mouse devices At least 2 GB Memory At least 4 GB Memory -Predefined views(front view,side view,top view) OpenGL 4.1 WebShare CloudNvidia Quadro(required for stereo rendering) - Fully integrates with the SCENE WebShare Cloud service and SCENE WebShare 2Go 2.0 Main Memory At least 16 GB 64 GB -Displays multi-overview maps exported from SCENE Hard Disk 256 GB Solid State Drive 512 GB Solid State Drive+ -Automatically creates overview maps&panoramic scan images Regular HDD - Enables simple measurements and the ability to add infomation,documents, Display 1366 x 768 1920 x 1080 hyperlinks,categories and tags - Intuitive web-based adminstration tools to manage projects,users and Operating System 64-bit Windows 7 64-bit Windows 7 sharing of information 64-bit Windows 8,8.1 or higher Import&Export Accessories Mouse with 2 buttons and a scroll wheel -Control points for geo-referencing(.cor,.csv) Network card as it is required for licensing SCENE -Scan points(FARO Scan,FARO Cloud,ASTM E57,.dxf,VRML,.igs,.txt,.xyz, xyb,.pts,.ptx,.ptz,.pod) "Good for projects where the laser scanner resolution does not exceed 1/4,or the project size is less than 10 scans,and you are not using stereo rendering. -CAD objects(.wrl,.igs and.dxf) Exceeding this may cause slow processing speed -Import digital photos(.(pg,.png,.bmp,.tif) - Export panoramic images(.jpg),export orthophotos(.tiff) Areas of Application - Export meshes in standard formats(.stl,.obj,.ply and.wrl(VRML)) -Archeology and Historic Preservation - Direct data transfer to:AutoCAD®,Autodesk®ReCapTM,Revit,Microstation®, -Architecture Geomagic®,Polyworks®,Rapidform,PointoolsTM,JRC 3D Reconstructor®, -Civil Engineering AVEVA®,Intergraph®,LFMTM,FARO PointSense,PointCabTM,Carlson and -Construction more than 100 others -Digital Factory -Factory Automation/Planning -Forensics and Accident Reconstruction -Process and Power Industry -Safety Engineering o"°, (�� -Surveying BUREAU VERITAS Contract Holder -Virtual Effects/Movies/Games fenilic.ition Global Offices: Australia • Brazil • China • France • Germany www.faro.com 0',I India • Italy • Japan • Malaysia • Mexico • Netherlands ` Freecall 00 800 3276 7253 r : Philippines•Poland•Portugal•Singapore•Spain•Switzerland �- Thailand•Turkey•United Kingdom•USA•Vietnam info@faroeurope.com Dlr I% 5/25/2016 To whom it may concern, This letter identifies FARO Technologies, Inc.,a Florida corporation("FARO Technologies" or"FARO"),as the sole developer and manufacturer of the FOCUS3DX Series of Laser Scanners,SCENE'TM, FARO CAD Zone and FARO Reality'' (formally ARAS360)software. FARO is also the sole provider of hardware service,warranty, maintenance, annual calibration,and FARO Certified train the trainer programs. FARO is the sole developer of our software suite. FARO recently acquired FARO CAD Zone'" and FARO RealityTM (ARAS360)crime/crash scene diagramming software companies. FARO CAD Zone' and FARO RealityTM both have direct integration to open FARO Focus point cloud data from scans into a simple to use diagramming program for full scene documentation,animations and other reconstruction(2D/3D). FARO CAD Zone'"and FARO RealityTM and FARO SCENETM development teams are in direct communication as they are owned both by FARO. Unique to FARO as a hardware scanning company, FARO is the sole developer of our Forensic Plugin which includes a blood spatter program for forensic analysis. To-date, FARO is not aware of any other hardware manufacture that manufactures both a comparable laser scanner and forensic blood spatter tool for crime scene forensic analysis that works directly in the point cloud registration software(FARO SCENE'") FARO's competitive advantage is the lightweight,affordable, precise technology delivered with each 3D laser scanning product and developing the primary forensic diagramming programs in the market today.With FARO Technologies products,our customers are making an investment for future projects with unsurpassed cost-value, a major advantage when looking for the most cutting-edge technology that gets you the right results in an age of limited resources. With hundreds of thousands of units sold worldwide and customers around the globe,our products have been reliably measuring success throughout the world. Our forensic customers include the Department of Defense,the federal government,various intelligence organizations,the military,and thousands of law enforcement divisions. Please feel free to contact us with any questions. Kind Regards, Kelly Watt Regional Manager Law Enforcement Sales Kelly.Watt@faro.com (604)290.3801 Mobile 250 Technology Drive Lake Mary, FL 32746 Tel:407.333.9911 Fax:407.562.5262 Tax ID:59-3157093• DUNS:61-730-8929•CAGE:OVGY2 ISO Certified •GSA