015 H2O - DNWT Litigation Announcement (7.20.20) 1-7.pdf

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DE NORA WATER TECHNOLOGIES TEXAS, LLC

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672 mail dntinfo@denora.com web www.denora.com

ANNOUNCEMENT – FOR IMMEDIATE DISTRIBUTION

De Nora Water Technologies is pleased to announce that it has resolved its litigation with H20, Inc. over claims of patent and trademark infringement, which had been pending in the federal court in Houston, Texas since August 2017. The case involved allegations by De Nora that H20 infringed one of De Nora’s patents for a key part in De Nora’s Omnipure™ line of systems and further made misleading statements about spare and replacement parts sold by H2O to be used with Omnipure systems, claiming that its replacement parts “meet or exceed” De Nora’s parts. De Nora argued, among other things, that H20’s statement was not correct because, under U.S. Coast Guard (USCG) and International Maritime Organization (IMO) regulations, only De Nora parts, as the original equipment manufacturer, could be used as replacement parts in a Type-Approved Omnipure system.

During the litigation, the Coast Guard issued two letters clarifying its stance on this issue. In a letter dated March 13, 2019 to the Omnipure Product Manager, Dana Casbeer of De Nora, the Coast Guard confirmed that:

“If a vessel operator decides to deviate from the certified parts or components specified by the manufacturer, the device is not in all material respects substantially the same as originally tested and certified. Therefore, the equipment on board may be considered uncertified and vessel operators will not be in compliance with the requirements of 33 CFR 159.7(a).”

Bureau Veritas, opining on IMO regulations, issued a comparable letter dated March 22, 2019:

“[U]nder the conditions of the BV and MED certificates of type approval, only DNWT original equipment manufacturer’s (OEM) parts, or those parts DNWT authorizes to be sold by their approved representatives or distributors, should be used as replacement parts…Otherwise the installed equipment/treatment plant is not considered as originally tested, and would be uncertified and not be in compliance to the BV or IMO requirements.”

Shortly thereafter, in a separate letter to H20’s counsel in the Houston case dated April 19, 2019, the Coast Guard made it clear that:

“Any replacement parts must be as specified on the [type approved] parts list. If a vessel operator deviates by installing parts that are not listed, that would invalidate the manufacturer’s label as described in 33 CFR 159.16, and the MDS would no longer be able to be used to comply with 33 CFR 159.7(a).”

Copies of all three letters are public record and attached for your reference.

De Nora is aware that a number of its Omnipure customers have obtained parts from H20 (or other non- OEM sellers) to replace original parts over the course of the life of their systems. It is extremely important that these customers understand, as explained in the letters referenced above, that installing unapproved or non-OEM parts renders an Omnipure system to be out of compliance with Coast Guard (and BV)

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672 mail dntinfo@denora.com web www.denora.com certifications—potentially subjecting the owners/operators of vessels or rigs on which the Omnipure systems operate to be subject to civil and criminal penalties, potential inability to port, or be detained by Port State Control (PSC) inspections . Further, use of unapproved parts voids the warranty for the Omnipure Systems and operates to rescind De Nora’s agreement to indemnify customers that suffer damages as a result.

In order to remedy this situation and as a courtesy to our valued customers, De Nora is pleased to announce that it will provide an additional 12-month warranty for any Omnipure system for customers that previously purchased non-approved parts (by H20 or other suppliers) when those customers replace all of those the uncertified parts with —and continue to use— De Nora-approved replacement parts.

De Nora urges customers to check all replacement parts that have been installed in their Omnipure Systems to determine whether they are approved. A list of H20 products that may have been used as replacement parts include those immediately below. It is easy to identify them: the numbers are prefixed with an “H”:

P/N: Description P/N: Description

H-77030RT

Bipolar Plate, Electrode, non- OEM, for 12MX

H-22267 Seal Plate, Macerator, non-OEM

H-77031RT

Bipolar Plate, Electrode, non- OEM, for 12M, 12MXMP &

15MXMP

H-22223 Cutter Ring, 17-RPH, Macerator, non-OEM

H-77032RT

Bipolar Plate, Electrode, non- OEM, for 4/6/8M

H-22237 Discharge Nozzle, Macerator, non-OEM

H-77040RT

Anode Plate, Electrode, non- OEM, for 12MX

H-22253 Impeller, Macerator, non-OEM

H-77041RT

Anode Plate, Electrode, non- OEM, for 12M, 12MXMP &

15MXMP

H-22268 Pump Volute, for Macerator, non-OEM

H-77042RT

Anode Plate, Electrode, non- OEM, for 4/6/8M

H-022201-4 Macerator pump; same as H- 022201-4, non-OEM

H-77050RM

Cathode Plate, Electrode, non- OEM, for 12MX

H-022201-4SA

Macerator pump; same as H- 022201-4, no oil, non-OEM

H-77051RM

Cathode Plate, Electrode, non- OEM, for 12M, 12MXMP &

15MXMP

H-22260 Oil, Lubricant, Macerator

H-77052RM

Cathode Plate Uncoated, Electrode, non-OEM, for 4/6/8M

H-22219 Radial Cutter, Macerator, non-

OEM

H-81614 Isoplast Plate Screw, Red H-22217 Axial Cutter 17-4, Macerator, non-OEM

H-81601 ½” Brass Nut, non-OEM H-220002 Mechanical Seal Kit, Macerator, non-OEM

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672 mail dntinfo@denora.com web www.denora.com

H-79142 ½” Plastic Washer, non-OEM H-22210 Pump Shaft, Macerator, non-

OEM

H-81605 ½” Brass Washer, non-OEM H-22208 Bearing Cap, Macerator, non-

OEM

H-81606 Bookcell Brass Rod, non-OEM H-22250-2 Standard Rebuild Kit, Macerator, non-OEM

H-91002 Sealant Silicone, non-OEM H-11350-R3 Valve, Elec. Actuated, 1.5, Ball, 3- Way, PVC, Rev.3

H-11350-R2 Valve, Actuated, 1.5, Ball, 3- Way, PVC, Rev.2

H-11351 Valve, Air Actuated, 1.5, Ball, 3- Way, PVC

H-

12MXBCT/REV-

3-NA

12MXMP Bookcell Assembly, Complete cell unit, Non-actuated, Non-OEM

H-15MXBCT-02-

NA

15MXMP Bookcell Assembly, Complete cell unit, Non-actuated, Non-OEM

H-8MBCT-03-

NA

8MC Bookcell Assembly, Complete cell unit, Non-OEM

H-12MBCT-04-

NA

12MC Bookcell Assembly, Complete cell unit, Non-OEM

H-79176 Boss, 1", for Bookcell, No Shoulder

H-99650 O-ring, Cover, 4/6/8M, Bookcell

H-79135 Boss, 1", for Bookcell H-99651 O-ring, Cover, 12M, 12MXMP & 15MXMP Bookcell

H-99650 O-ring, Cover, 4/6/8M, Bookcell H-

SATEMPSWITCH

Switch, temperature, assembly

H-99651 O-ring, Cover, 12M, Bookcell H-79144 O-Ring for Anode & Cathode, non-OEM

PLEASE BE AWARE THAT THERE ARE OTHER SELLERS AS WELL THAT SELL PARTS THAT USE DE NORA PART NUMBERS. CUSTOMERS SHOULD ONLY PURCHASE PARTS FROM DE NORA OR ITS CERTIFIED DISTRIBUTORS

AND RESELLERS, AS LISTED IN THE ATTACHED.

Upon notice that customers have re-installed De Nora parts in place of all non-OEM and non-approved parts, along with evidence that the Omnipure systems are functioning properly, De Nora will renew the warranties on those Omnipure systems for a period of 12 months. De Nora strongly recommends that owners of any Omnipure systems review their purchases of spare and replacement parts and notify De Nora immediately of an interest in bringing the systems back into type-approved status.

De Nora looks forward to re-engaging owners of Omnipure systems that have purchased uncertified, or in some cases, counterfeit parts from other sellers, and regaining the required Certification(s) on their Omnipure equipment. Any questions or concerns about this Announcement, please contact the following De Nora representative at your earliest convenience.

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672 mail dntinfo@denora.com web www.denora.com

Robert Crutchfield, Aftermarket Manager; ph: 281-274-8451, fax: 281-240-6762, (Main De Nora Water Technologies Office) ph: 281-274-6770 -or-robert.crutchfield@denora.com

AUTHORIZED OMNIPURE DISTRIBUTORS AND REPRESENTATIVES

Approved Distributors:

Louisiana Environmental Monitoring (LEM), USA Marine Ventures Ltd, United Kingdom Bayou State Marine & Industrial Supply, Inc., USA Vicel Americas, USA Vicel Participacoes e Investimentos Ltda., Brazil Procom (Process Components Ltd), Trinidad/Tobago Grenada MSI – Marine Systems Inc., USA AER Supply, USA

Approved Reps:

Louisiana Environmental Monitoring (LEM), USA Keepex SPA, Chile Marine Ventures Ltd, United Kingdom Sanitron Ingenieria de Purification y Representaciones Cia.Ltda., Ecuador Promark Services, USA Zar Lynx Sdn Bhd, Malaysia Zine L.J. International Trading Co., Taiwan QTEC Technology, Thailand PT FIS Sejahtera Bersama, Indonesia Hi-Point Services Pvt Ltd, India KKIC (Kyung Kook International Corporation), S. Korea HMA Instrumentation PTY LTD (Formerly POGC Sensor Technology), Australia/New Zealand Arab Development Establishment, UAE Ellabbad for Marine Equipment & Supply, Egypt Valery Lvov, Russian Fed

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672 mail dntinfo@denora.com web www.denora.com

United States Coast Guard Letter Dated March 13, 2019

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672

Bureau Veritas Letter Dated March 22, 2019

1110 Industrial Blvd., Sugar Land, Texas 77478 Ph +1 281 240 6670 Fax +1 281 240 6672

United States Coast Guard Letter Dated April 19, 2019