(2021 Rev A) - (Always Keep For Version Control)

April 28, 2023

Mr. Jeremiah Johnson

International Paper Co.
1785 Weyerhaeuser Road
New Bern, NC 28563

Project: Innovation AC Drive Capacitor Replacement – Pulp Machine

Proposal: DFM-230428-1

Jeremiah,

On behalf of ABB, I am pleased to present this proposal to International Paper for capacitor
replacements for the Innovation drives on the pulp machine.

ABB has provided a detailed proposal for this effort in the sections that follow this cover letter.

If you have any questions concerning this proposal, please contact me at (843)-270-8243 or
[email protected].

Sincerely,

ABB Inc.

Daniel J. Osthoff
Sr. Account Manager
Proposal #: DFM-230428-1

Scope of Supply
The capacitor replacements are for the following Innovation AC drives currently in operation at the New
Bern, NC site.

Equipment List

Drives
• IPN Frame Size 92 Frame version A 11 drives; each qty. 2 Capacitor’s 4200 uf
• IPN Frame Size 620 Frame version A 2 drives; each qty. 12 Capacitor’s 4200 uf
• IPN Frame Size 250 Frame version A 2 drives; each qty. 8 Capacitor’s 4200 uf
• IPN Frame Size 65 Frame version A 1 drive; each qty. 2 Capacitor’s 4200 uf

Sources
• 1000 frame 1 drive; each qty. 24 Capacitor’s 4200 uf
• 375 frame 1 drive; each qty. 12 Capacitor’s 4200 uf

A. Capacitor(s) Bill of Material

Qty Description Lead Time

100 Capacitor Replacements for AC Innovation Drives 16 to 20 weeks

B. Field Engineering
Work scope detailed below will include technical direction to customer provided craft labor for the
capacitor replacement. The work scope is estimated as five (5) consecutive days, including travel,
during standard weekday hours.

Outage Services
• Perform capacitor replacements on all drive equipment listed above
• Perform motor/drive connection checks at the drive

Post Outage Services – System On-Line Check Out

• Confirm drives are functioning properly
• Run Cell Tests on all drives
• Visually check drive display readouts
• Review any findings with maintenance
• Provide follow-up test report the week following outage

ABB will provide one (1) field engineer for the outage tentatively scheduled for the last week of
September, 2023. The pricing is based on 5 days, 12 hours per day + travel time in and out and is based
on performing the services during normal weekdays.

IP-New Bern is to provide the craft labor for replacing the capacitors for the entire outage.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

Additional services can be provided per the ABB US Services Rate Sheet for 2023 at the end of this
quote.

Pricing Summary

Description of Services List Price

Item A: Capacitor Replacements for the AC

$73,503.00
innovation Drives on the Pulp – qty 100
Item B: Field Support/technical direction for Install of
Capacitors:

• Local Field Engineering Travel & Living

Expenses (less than 4 hours driving time) are
$49,785.00
included in this proposal.
• Any extraordinary expenses from non-local
field support, such as air travel and car rental
will be billed at cost plus a 10%

Order Placement

If this proposal meets with your approval, please submit your purchase order referencing proposal
number DFM-230428-1 either VIA fax 440-585-5081 or e-mail it to [email protected] with
attention of:

Alison Hernandez Martinez

Business Administrator
23000 Harvard Road
Cleveland, OH 44122
Phone: 440-585-5133

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

Additional Services
Should the Buyer desire to have ABB perform additional services beyond the scope of services
described in this proposal, a change order request will be submitted for the additional associated
costs. No additional services shall proceed without written authorization from the Buyer. Additional
services will be performed per our published rates for Service, applicable at the time that worked is
performed, including work that extends through the weekend / holiday. The current rates for Service
can be found in Attachment “A”.

Buyer’s Responsibilities
The Buyer’s responsibilities shall include, but are not limited to, the following:
• Issue switching orders, schedule outages, and de-energize the electrical apparatus, including
Lock-Out Tag-Out (LOTO) of all systems associated with ABB’s work scope involved in the
project. LOTO procedures shall meet or exceed Contractor or ABB’s requirements, whichever
are more stringent.
• Prior to the start of the on-site work, Buyer shall familiarize ABB personnel with their safety
practices, regulations in effect at jobsite, and any chemical and physical hazards, including
process safety issues associated with the work environment. ABB shall be under no obligation
to commence work unless safety practices are acceptable to ABB. As a safety precaution, prior
to the commencement of work, access to a nearby telephone with the ability to call outside the
facility will be provided by Buyer, as well as telephone numbers for local emergency services.
• Buyer will dispose of all wastes generated at the work site. Buyer will be responsible for
environmental conditions and will keep the equipment free of contaminants that would be
detrimental to the performance of the equipment.
• Buyer shall be responsible for the removal and replacement of any obstructions that may
interfere with access to or removal of the existing equipment
• Buyer will provide an experienced electrician or electrical supervisor familiar with the power
distribution system and trained in electrical safety and emergency response procedures
including CPR, AED, and first aid for purposes of:
- Directing ABB personnel in identifying and isolating the proper electrical equipment.
- Shutting down electrical equipment in an emergency and providing emergency response
during high risk operations including electrical work when a single ABB representative is
dispatched. This person must be visually present during all electrical work and high risk
operations. If not present then ABB will stop work and notify the Buyer.
- Complying with OSHA 1910.269(l)(1) and 1910.269(b)
• Buyer shall provide one (1) copy of existing system schematics, drawings and other information
regarding the equipment/site that is needed and be responsible for the accuracy of same and
verbal information concerning existing conditions and wiring.
• All communication between, including meetings, all documents, notes on drawings, and
submissions required under contract, shall be in the English language. Any language
translation, of required, will be the responsibility of the Buyer.
• Buyer must supply minimum power supply of 120V, 1-Phase, power source, if necessary.
• Buyer will provide/operate/maintain services for drinking water, sanitary facilities, parking,
trash containers, and lighting.
• Buyer to provide craft labor with tools and equipment to assist field engineer working on site, if
necessary.
• Buyer to supply, operate, and maintain all standard services to the site facility, such as electric
power, lighting, water, air, etc., if required. Backup for these systems is not included in this

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

proposal. These services are to be made available to ABB, including a suitable source of 60Hz
120/240 volts AC, unless otherwise provided herein.
• Buyer to provide, and be responsible for, applicable codes, standard, laws, regulatory
requirements, etc. required for the development of functional specification and system design
and operation.
• Buyer shall be responsible for the review of the installation to assure compliance with
applicable codes. It is the intention of ABB to comply with the applicable codes, standards,
laws, regulatory requirements, etc.; however, by law it is the responsibility of the Buyer for
compliance of the total installation. ABB would be pleased to quote any additional features or
equipment that the Buyer deems necessary to meet these requirements

Assumptions and Clarifications

• Work scope does not include testing of motors or cables. Customer to advise if this work scope needs to
be added so motor connectivity and disconnects available can be reviewed and proposal revised to
include this work scope.
• All equipment being serviced is to be deenergized before performing work.
• All communication shall be in the English language. Any language translation, if required, will be
the responsibility of the customer.
• This proposal assumes no hazardous materials are present, nor will be encountered, or require
disposal during the performance of this project.
• For any delays, additional mobilizations (due to cancelled or delayed outages, or delays
preventing ABB from completing planned work scope), or extra work incurred while the quoted
work is being performed as a result of standby time or access to customer-provided
equipment, malfunction or deficiencies encountered with equipment, other than that furnished
by ABB under this work scope, a change order will be submitted for the costs relating to the
additional work scope. Defective parts found while work is being performed will be
documented in a follow-up change order proposal to customer which will include replacement
parts price and services, as applicable.
• Any items or services not specifically outlined herein are not included.
• For equipment and/or material being shipped to the Customer’s site: receiving, inspection,
offloading and storage will be the responsibility of others, unless specifically identified in this
proposal as being included by ABB.
• Coordination of outages with Utilities and any/all necessary permitting will be the
responsibility of others.
• If Onsite Customer Training is included within this proposal, no audio / video recording of the
training will be allowed.
• Only the equipment and services listed above in included in this workscope.
• ABB assumes and is relying on the fact that any information furnished by Buyer is accurate and
complete. To the extent that ABB obtains actual knowledge of any conditions with the
equipment and/or the conditions at site are in addition to and/or different from those
indicated in the Buyer’s furnished documentation / information and/or there is a previously
unknown physical condition that is found with the equipment and/or at the site, ABB shall
notify the Buyer. If such condition(s) exist and this causes an increase in ABB's cost of and/or
the time required for the performance of any part of the work under a contract, an equitable
adjustment may be made, including without limitation, to the price and/or schedule.
• With the exception of delays beyond the control of ABB, no additional work scope shall proceed
without the written authorization of the Buyer.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

• Should any unforeseen work delays beyond the control of ABB occur, including those as a result
of malfunctions or deficiencies encountered with the equipment (unless caused by ABB) or
should the Buyer desire to have ABB perform work beyond the scope of work described in this
proposal, that work will be billed at the published rates in effect at the time of performance of
that the work scope and will apply to all ABB project management, field engineers, field
engineering service technicians and/or craftsmen.
• ABB expressly objects to any requirements, methods or conditions contained in any Buyer
request that are not specifically addressed in this document, and such requirements, methods
and conditions, if any, are outside the scope of this proposal.
• Schedule: Unless otherwise stated in the scope, all work will be performed on a straight time
basis. All work is to be performed on a mutually agreeable schedule. The foregoing work as
described under work scope shall be performed during normal working hours Monday through
Friday, Holidays excepted. If work is performed on an overtime basis, the premium for the time
spent and other applicable cost will be billed in addition to the price quoted and will be billed at
our published rates in effect at the time work is performed. Time and expense of ABB
employees' travel from their headquarters to work site and return, shall be considered as time
worked. ABB requires a minimum two (2) weeks advance notice to ensure availability of
resources.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

Appendix A

Terms and Conditions

This offer is subject to the Master Terms and Conditions for Purchase of Equipment and/or Services
MSTABB0918, dated December 11, 2013 and Amendment 20 dated March 27th, 2023. Limitation of liability
not to exceed the contract price for projects over $5,000,000. Other than the additional terms set forth
below which are required by the specific services to be included, no other terms and conditions shall
apply.

Corona virus (COVID 19) Sales Contract Clause

Both ABB and the customer are aware of the outbreak of a Coronavirus (commonly known as COVID-19)
or any mutation of such virus which is impacting or may impact normal business. ABB hereby reserves
the right to amend the delivery, the price, the scope and the terms and conditions of contract set out in
this offer. Notwithstanding anything to the contrary, the forgoing paragraph is deemed to be
incorporated into any subsequent concluded contract.

Raw Material, Commodities, Transportation and Other Critical Components

The Parties hereby recognize the existence of a global severe shortage of electronic components
(including, but not limited to, semiconductors), as well of market volatility in the availability and cost
of other raw materials, commodities, transportation, and other critical components and/or elements,
for an unpredictable period of time, which may impact normal business and the execution of the
scope of delivery in a way and with a timing beyond ABB’s control (hereinafter “Excusable Event”).
Notwithstanding anything in the contract/terms and conditions/purchase order to the contrary,
if after the date of ABB’s proposal or order confirmation or during the term of the performance of the
contract/purchase order/confirmed purchase order an Excusable Event occurs, so that the costs of
the ABB's performance increase or ABB's performance obligations are materially adversely affected,
temporarily or permanently prevented or delayed, and the Parties shall negotiate in good faith
equitable adjustments of ABB’s obligations in terms of:
a. reasonable extensions of the original date of delivery or completion.
b. equitable adjustments in the price, to compensate ABB for any documented increase in
components, raw materials, commodity and/or transportation costs.
c. possible reductions of the contractually owed quantity of the goods to be delivered to the
Customer, with a view to employing reasonable efforts to ensure that the contract/purchase
order/confirmed purchase order can at least be filled in part.

Agreed liquidated damages, any actual damages, penalties or other fines, otherwise payable by ABB
shall not apply for delays directly or indirectly caused by the Excusable Event. Customer cannot invoke
such a delay as a cause for termination/cancellation of the Contract/Order, unless otherwise agreed
between the Parties.

In case of termination/cancellation of the contract/purchase order/confirmed purchase order directly

or indirectly caused by the Excusable Event, each Party waives any claim against the other Party either
for direct damages and/or loss of profits and/or indirect and/or intermediate damages, penalties
and/or liquidated damages. If any dispute or difference arises between the Parties, the Parties hereto
shall endeavor to settle such dispute amicably. Any contract, order acceptance or order confirmation
by ABB is entered into and made subject and conditioned to the above terms, which the Parties
recognize as fundamental conditions of any such agreement within the Parties.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

Delivery
The delivery of this upgrade will be determined at the project kick off meeting, which will be supported
via teleconference or e-mail. Typical lead time is sixteen to twenty weeks from acceptance of order.

ABB Service
All services are provided per the terms in ABB’s Standard Rate Sheet (attached). If International Paper ,
has a pricing agreement/service contract in place with ABB Inc., those terms/rates will be used.

Payment Terms
ABB’s proposal is based on the following payment terms, net 30. If International Paper , has a payment
term agreement in place with ABB Inc., those terms will be used.

Hardware
• 50% Upon receipt and acceptance of customers purchase order for hardware
• 50% Upon shipment of equipment

On-Site Service
• 100% Upon completion of on-site services

Shipping
The pricing for this proposal is based on shipment FOB Factory, Louisville, KY. Domestic Packing is
included; freight prepaid and add.

Proposal Validity
This Proposal is subject to acceptance within thirty (30) days from the date of proposal. All prices,
schedules, and technical descriptions are valid throughout this period.

Confidentiality
The information contained in this proposal is proprietary to ABB Inc. and may not be disclosed to any
third party or company without the written consent of ABB Inc. – Cleveland, Ohio USA.

NOTE: ABB is not licensed to resell/transfer software and/or license keys. Without this license, we are
legally unable to purchase on behalf of the end user and deliver Windows and VMWare physical media
and license keys. ABB’s licensing agreement only allows ABB to purchase and use these products as a
deployed solution to end user. ABB retains ownership of these licenses as part of the deployed
solution. End users whom want ownership of the Windows physical media/license keys will need to
purchase these items directly and supply to ABB for system installation.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

ABB US Service Standard Rate Sheet – 2023

Primary Work Hours

The following labor rates are applicable during Primary Working Hours (PWH) defined as an 8-hour period
beginning between 7:00 A.M. and 10: 00 A.M. Monday through Friday, excluding national and ABB recognized
holidays. The primary work hours include a one half-hour non-paid lunch period and two 15-minute breaks
during the day.
Base Service Labor Rates
Technology Service Type Hourly Rate
Drives and Motors Field Services $365
Control systems Field Services $351
(OCS/DCS) Process Application Engineering Services $395
Paper Quality Control Field Services $351
Systems & Web Imaging Sensor Specialist Services $392
Systems (QCS &WIS) Systems Engineering Services $392
Process Application Engineering Services $395
Lorentzen & Wettre Engineering Services $373
Lorentzen & Wettre Specialist Service $424
Power Generation Turbine Control Systems Services $384
Specialist Flame Scanner Services $384
Power Plant Tuning $384

All Project Management Services $387

Process Control Tuning Services $388
Regional Technical Advisor, Network & Security $395
Services
Process Optimization Services $412
Overtime Hours
For billing purposes ABB Inc. defines overtime as those hours worked outside the Primary Working Hours or in
excess of eight (8) hours in one day. The standard charges for overtime are defined as follows:
• All work performed outside the PWH or over 8 hours in one day is charged at one and one half times the labor
rate (Base Service Labor Rate X 1.5).
• All work performed on Saturday is charged at one and one half times the labor rate (Base Service Labor Rate
X 1.5).
• All work performed on Sunday is charged at two times the labor rate (Base Service Labor Rate X 2).
• All work performed on national or an ABB holiday is charged at three times the labor rate (Base Service Labor
Rate X 3).
Field Engineer Stand-By
• Engineer Stand-By support occurs when a customer requests an engineer to perform “stand-by” duty where
that engineer is specifically reserved for that Customer and cannot be dispatched to another Customer job
site. The customer reserving the engineer in stand-by readiness mode shall be charged for Stand-By service.
• Field Engineer Stand-By Service is charged at 4 PWH per day. If the “reserved” Field Engineer is called to this
site, then 2 PWH will be credited to the customer. Overtime hours, travel expenses, travel time and other
conditions of service per this rate sheet shall apply.

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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Proposal #: DFM-230428-1

Telephone Support .................................................................................................. $400.00 per hour

• A minimum of one (1) hour is charged per request.
• Additional charges are in one-hour increments beyond the first one (1) hour period.
Travel Costs
• Travel expenses are charged at 62.5 cents / mile or actual public transportation costs plus 10%.
• Living expenses are charged at actual costs incurred plus 10%.
• Completed Travel Time, to and from the Customer Site, will be charged at rates listed under this rate sheet.
Conditions of Service
• Scheduled Field Service visits may be cancelled subject to the following limitations:
• Scheduled work of 0 to 7-day duration may be cancelled with no cancellation fee up to 48 hours prior to
scheduled field engineer arrival.
• Scheduled work of greater than 7-day duration may be cancelled with no cancellation fee up to 2 weeks
prior to scheduled field engineer arrival
• Scheduled work canceled outside these limitations will be subject to a cancellation fee equal to actual
expenses incurred including but not limited to travel, travel time, and material shipment plus usage of
prepaid field hours equivalent to 50% of the scheduled work duration.
• Service provided per this rate sheet is approved by the customer in the form of a purchase order or written
authorization for additional hours prior to dispatching field personal to site.
• Other chargeable time will be invoiced which may include additional PWH and/or overtime spent at the
customer’s facility, round trip travel to and from site, time spent preparing written service reports, and time
for other customer requested activities.
• A minimum of four (4) hours is charged for any service call to a client’s facility.
• All information contained herein is proprietary data of ABB Inc. and that no disclosure, reproduction or use
by third parties may be made without written permission of ABB.

2023 Holiday Schedule (Tentative and subject to change)

Monday, Jan. 16 – Martin Luther King Holiday Friday, Nov. 10 – Veterans Day (substitute)
Monday, Feb. 20 – Presidents Day Thursday, Nov. 23 –Thanksgiving Day
Monday, May 29 - Memorial Day Friday, Nov. 24 –Thanksgiving Day (Day After)
Monday, July 3 – Independence Day (day before) Friday, Dec. 22 – Day Before Christmas Eve
Tuesday, July 4 – Independence Day Monday, Dec. 25 – Christmas Day
Monday Sept. 4 - Labor Day

23000 Harvard Road Tel: 1 800 HELP 365 (1 800 435 7365)
Cleveland, OH 44122 USA Fax: 440 585 5081
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