GRINDER PUMP LOAN AGREEMENT

THIS GRINDER PUMP LOAN AGREEMENT made this _______ day of ________________________, 20__, by and between WARWICK TOWNSHIP MUNICIPAL AUTHORITY, a municipality authority organized and existing under the laws of the Commonwealth of Pennsylvania and specifically organized under the Municipality Authorities Act of 1945, as amended, having its principal office at 315 Clay Road, Lititz, Pennsylvania 17543 (hereinafter called the "Authority"), and ____________________________________________,of ________________________________________________________, Pennsylvania (hereinafter whether one or more collectively called the "Landowner").

WITNESSETH:

WHEREAS, Authority owns and operates municipal sewerage facilities within Warwick Township, Lancaster County, Pennsylvania; and
WHEREAS, Landowner is a customer of the Authority and owns and utilizes a sewage grinder pump to service his property located at _________________________________ Warwick Township, Lancaster County, Pennsylvania (the "Property"); and
WHEREAS, Landowner has an ongoing duty to maintain and replace, if necessary, the grinder pump servicing the Property; and
WHEREAS, Authority holds in reserve certain spare grinder pumps which the Authority makes available for loan to customers of the Authority who experience grinder pump failure; and
WHEREAS, the grinder pump servicing the Property has failed and Landowner desires to borrow a spare grinder pump from the Authority upon the terms contained in this Agreement.

NOW, THEREFORE, in consideration of the promises, terms and conditions of this Agreement more fully hereinbelow set forth, and intending to be legally bound hereby, the parties agree as follows:
        1. Authority loans to Landowner and Landowner borrows from Authority the grinder pump described as follows: Serial No. ______________________Model # _________________ (hereinafter the "Spare Grinder Pump").
        2. In no event shall Landowner be permitted to use the Spare Grinder Pump for more than ________ days from the date of this Agreement (the "Loan Period"). Landowner shall obtain a replacement grinder pump and install said replacement grinder pump to service the Property within the Loan Period.
        3. Any replacement grinder pump must comply with the Technical Specifications which are attached as Exhibit "A" to Authority Resolution No. 10-05-93-1.
        4. Landowner agrees to return the Spare Grinder Pump to the Authority in good order promptly at the expiration of the Loan Period. Prior to its return, Landowner, at Landowner's sole cost and expense, agrees to have the Spare Grinder Pump reconditioned and certified as such by one of the following certified Hydromatic grinder pump dealers:

        5. Landowner and Authority agree that, during the Loan Period, Landowner has the option of retaining the Spare Grinder Pump and providing the Authority with another grinder pump of equal or greater value (the "Substituted Grinder Pump"). The Substituted Grinder Pump must comply with the Technical Specifications which are attached as Exhibit "A" to Authority Resolution No. 10-05-93-1 and must be acceptable to the Authority.
        6. In the event that Landowner does not return the Spare Grinder Pump to the Authority promptly at the expiration of the Loan Period, Landowner agrees that he has elected to purchase the Spare Grinder Pump and will pay Authority the sum of $ _____________________ for the Spare Grinder Pump promptly upon expiration of the Loan Period.
        7. Landowner shall not use or permit the use of the Spare Grinder Pump in a negligent or improper manner or in violation of any law, or permit the Spare Grinder Pump to become subject to any lien, charge, or encumbrance.
        8. Landowner agrees to pay for any damage that may accrue to the Spare Grinder Pump during the Loan Period.
        9. It is understood between the parties that Authority is not the manufacturer of the Spare Grinder Pump, nor the agent of the manufacturer of the Spare Grinder Pump, and that no warranty against patent or latent defects in material or quality is made by Authority. Landowner agrees to indemnify and hold Authority harmless against all claims, losses, causes of action, liability and expenses, including attorneys' fees, legal expenses and costs of investigation, arising from the use, maintenance, and operation of the Spare Grinder Pump.
        10. In the event of any default by Landowner, Landowner does hereby empower any attorney or any court of record to appear for Landowner to confess money judgement against Landowner and in favor of Authority for any sum than due with costs of suit and an attorneys' commission of ten (10%) percent for collection and to issue execution thereon with release of all errors and without stay of execution.
        11. In the event of any default by Landowner, the Authority, in its sole discretion, shall be permitted to file a municipal claim against Landowner for any sum then due with costs of suit and an attorneys' commission of ten (10%) percent. The Authority shall have the right to take all actions authorized by law to enforce its municipal claim.
        12. The Authority maintains and may distribute to Landowner a list of contractors who have attended a grinder pump installation, repair and maintenance seminar (the "Seminar" conducted by J. T. Seeley & Co., a Hydromatic grinder pump service center. Landowner acknowledges that the Authority does not make any warranty or representations regarding the quality or const of work or services performed by any of the contractors who have attended the Seminar. Landowner further acknowledges that the Authority does not recommend any particular contractor and that the Landowner may chose any contractor, including but not limited to a contractor who has attended the Seminar, to perform grinder pump installation, repair or maintenance services. Landowner agrees to indemnify and hold harmless against all claims, losses, causes of action, liability and expenses, including attorneys' fees, legal expenses and costs of investigation, arising from Landowner's selection of any contractor, including any contractor who has attended the Seminar, and the performance by said contractor of any grinder pump installation, repair or other services.

The parties hereto agree that the foregoing constitutes the entire Agreement between them and that there exist no other agreements, oral or written, between them relating to any matters covered by this Agreement, whether or not within the knowledge or contemplation of either or both of the parties hereto at the time of the execution of this Agreement.
        13. This Agreement may be amended only by written instrument signed on behalf of the Authority and Landowner.
        14. This Agreement will be construed, performed and enforced in accordance with the laws of the Commonwealth of Pennsylvania.
        15. When sense so requires, words of any gender used in this Agreement shall be held to include any other gender, and the words in the singular number shall be held to include the plural and vice versa.
        16. This Agreement shall be binding upon and shall inure to the benefit of the parties and respective personal representatives, heirs, successors and assigns.

        IN WITNESS THEREOF, the parties have executed or caused this Agreement to be executed the day and year first above written.

                                                                            LANDOWNER

Witness:

__________________________________         __________________________________(SEAL)

                                                                            WARWICK TOWNSHIP MUNICIPAL AUTHORITY

                                                                            By:_______________________________________