AEM Energized and De-Energized Services



AEM PREFERRED TEGG SERVICE

A FULL SERVICE

ASSURED ELECTRICAL MAINTENANCE

PROGRAM

For the Consideration of:

|[Contact Name] |

|[Contact Title] |

|[Company Name] |

|[City and State] |

Prepared By

|[CTR Name] |

|[TSC] |

|[City and State] |

Solution No.: [Solution #]

Agreement No.: [Agrmnt #]

     

By and Between:

|[Customer Name] | |[TSC] |

|[Customer Address] |and |[TSC Adress] |

|[City, State and Zip] | |[City, State and Zip] |

For Services Provided at:

|[Customer Service Location] |

|[Customer Service Address] |

|[City, State and Zip] |

Definitions:

You should note the following words have special meaning throughout the Agreement:

1. “You” and “Your” mean [Customer Name] and all of its internal and external representatives.

2. “We”, “Our”, “Ours” and “Us” mean [TSC] and all of its internal and external representatives.

3. “Labor” means our normal workday labor hours, overtime labor hours (time-and-one-half), premium labor hours (double-time), travel labor hours and all out-of-pocket travel expenses associated with labor.

Our Gratitude:

Thank you for the opportunity to serve you. Our business has continued to thrive on satisfied Customers and their enthusiastic recommendations to our future Customers. Because we are an Authorized TEGG Service Contractor, you can be assured that we will earn your business by remaining extremely competitive while maintaining the highest standards of professionalism, integrity, safety and workmanship.

I am privileged to offer this proprietary solution to you for your internal use only. This proposal is valid for 45 days.

Your Satisfaction Is Assured,

[CTR Name]

Electrical Service Specialist

Overview of Our Professional Services:

Your Customized AEM Preferred Full Service Electrical Maintenance Program is designed to:

• Repair or replace any failed electrical component covered by this program.

• Minimize the risk of electrical problems that cause internal electrical outages that result in loss of productivity.

• Substantially reduce the growing risk of electrical safety hazards and fire.

• Identify potential power quality concerns to minimize the risk of disruption or damage to microelectronic business and production equipment.

• Provide certification for your insurance company to demonstrate your improved risk and provide certification for any accrediting organization inspections.

• Assure the proper preventive maintenance services to improve electrical system efficiency to minimize electric utility waste.

• Assist you in developing a Capital Asset Management Plan for your electrical distribution system that facilitates maximum life from your installed electrical equipment and planned reinvestment for the future.

• Conform to applicable standards for ongoing maintenance to extend the life of the electrical distribution system components.

• Provide temporary emergency power (temporary wire or generation) in the event that a covered electrical component failure results in extended repair or replacement. This temporary power will be provided at no cost until the failed component can be repaired or replaced.

Our Guarantee to You:

In the unlikely event any electrical distribution component covered under this AEM Preferred TEGG Service Agreement should fail while this agreement is in effect, we will repair or replace, at our discretion, the failed component at no charge to you. If as a direct result of the component failure there is any additional damage to your electrical distribution system, which was caused directly by the component failure, we will repair or replace, at our discretion, the additional damaged electrical distribution equipment at no charge to you. This guarantee is subject to a $5,000,000 Limit of Loss.

Further, if such failure occurs, we will provide 24X7 emergency response and reasonable expediting services, such as overtime, express shipment, temporary repairs, etc. and provide emergency temporary power if necessary, subject to a $100,000 sub-limit of loss. This Guarantee is subject to all General Provisions and Conditions of this Agreement and remains in effect for thirty-six (36) months or until the Agreement expires or is canceled, which ever comes first.

Our Responsibilities Include:

• Provide a continuing managed process of professional Predictive and Proactive Services.

• Provide consultative input for developing your Capital Asset Management Plan for your electrical distribution system.

• Develop and implement TEGGTask(, a customized, task-oriented, computer-based service management program based upon the recommendations of the National Fire Protection Association (NFPA), applicable OSHA and IEEE industry standards, TEGG Corporation engineers, as well as the experiences of the industry and TEGG Service Customers.

• Tag and assign a unique identification (ID) number to each component to be serviced.

• Make appropriate notations and corrections on your existing one-line electrical drawings (if available).

• Assure that only Certified TEGG Technicians and/or Certified TEGG Electricians (as appropriate) perform the services provided in this Agreement.

• Assure that our staff always check-in and check-out with your designated representative and provide you with a copy of the detailed TEGG Service Report at the conclusion of each visit.

• Assign a Lead Technician to have Primary Responsibility for work to be performed within your facility. As appropriate, other personnel will also become familiar with your facility to assure adequate back-up experience is available in the event of an Emergency Situation when the Lead Technician is not available.

• Coordinate all work with your staff to assure safety and minimal disruption of your operations.

• Redeem all commitments made to you in a professional and timely manner, in compliance with both the applicable electric code and TEGG Corporation’s Standards of Performance.

• Provide you with our Privileged Service Agreement Customer Discount for any electrical labor requirements above and beyond the scope of this Agreement.

• Assist you in coordinating the de-energizing of your electrical system, as required, with the appropriate utility company and your designated representative.

1. Repair or replace any failed electrical component that is included in the scope of this Agreement at no additional cost to you for labor, material or equipment, provided that the component(s) has been determined by us to be serviceable after our initial predictive and proactive service visit.

Your Responsibilities Include:

• Assign a Primary Contact with whom we should work to assure the proper coordination of our work.

• Provide us with a copy, if available, of any electrical one-line drawings or prints.

• Assign, if required, an escort to provide our Certified TEGG Technician or Electrician with appropriate access to electrical components and/or areas.

• Provide us with your protocols and regulations regarding working within your facility, such as: parking, sign-in/sign-out and security procedures, emergency contacts, and other appropriate information during our first predictive and proactive service visit.

2. Permit only our representatives to perform work on the covered electrical components, as we can only guarantee our work and not the work of other parties.

• Assure that the applicable electrical components are under load when energized service and/or predictive and proactive services take place.

• When de-energized work is scheduled within your facility, assure that the necessary tenants and/or personnel are provided with advance notification of the electrical outage.

• Coordinate the de-energizing of your electrical system, as required, with the appropriate utility company and your designated representative.

3. Bear the initial cost to repair or replace any covered component deemed by us to be not maintainable during our initial predictive and proactive service visit. Should you choose to not do this initial repair or replacement, if required, the component(s) will be removed from the repair or replacement warranty provisions of this Agreement.

4. Work with us to help you develop a Capital Asset Management Plan for your electrical distribution system.

• Provide us with your critique of our services and suggestions for on-going improvements as part of our Customer Assurance Review and Evaluation program.

Energized Testing and Inspection:

We will provide the safety equipment, service instruments, and labor to conduct, interpret, and document the results of the applicable comprehensive diagnostic services and inspections that can be safely performed on the electrical component(s) and/or connection(s) identified in the “System Components and Planned Service Interval” section of this Agreement. These services will be performed annually, at a minimum, and while your electrical distribution system is energized. The following testing and inspection services, as appropriate, will be conducted:

1. True RMS Voltage and Current Testing: Capture and record the square root of the average square of the instantaneous magnitude of the voltage and current. This service is used to determine if the correct voltage and current is present to properly operate your equipment and optimize its life cycle.

2. Voltage Drop: Measure and record the difference of voltages at the two terminals of passive impedance. This service is used to determine if your electrical components, e.g., circuit breakers, contact surfaces, etc., are operating properly to reduce hazards and equipment destruction.

3. Infrared Thermographic Imaging Service: Measure and record to identify temperatures that exceed NFPA Standard 70B recommendations, e.g., high resistance electrical connections, current overload, defective circuit breakers and/or defective insulator conditions. This service is used to reduce the risk of brown-outs and black-outs, as well as safety and fire hazards.

4. Ultrasonic Testing: Measure and record sound waves and/or vibrations that are above audible sound

(16-18 KHZ). This service is used to complement the thermographic imaging service and determine if corona discharge, tracking, arcing and vibration are present and to assure the quality and integrity of your electrical system.

5. Voltage and Current Harmonics Testing: Capture and record Total Harmonic Distortion-Voltage (THDV) and Total Harmonic Distortion-Current (THDC) that exceed IEEE recommendations. This service is used to determine if your harmonic contamination is within tolerance levels. In addition, this service is designed to assure accurate power (kW) charges and to minimize the risk of damage to microelectronic equipment, transformers, circuit breakers, motors, etc.

6. Power Factor Testing: Measure and record the ratio of the circuit power (watts) to the circuit volt-amperes.

This service is used to determine if you are paying increased costs to your utility company because your power factor is in a higher rate schedule. In addition, correcting a poor power factor situation may allow you to expand your electrical system’s capacity without costly system additions.

7. Visual and Mechanical Inspections: Interior and exterior of all components will be inspected to ascertain, and if necessary, make certain adjustments to ensure that its performance remains within specified limits. We will also identify corrosion, rust and discoloration, leaks, safety hazards, applicable electric code violations, grounding, physical damage and the general condition of components.

8. Phase-Balance Measurments: Assure that the phases in your electrical system are balanced. This service is used to address unbalanced components that increase power-quality problems, total harmonic distortion as well as increased temperature rise of devices and current-carrying conductors.

De-Energized Service and Inspection:

We will provide the safety equipment, service instruments and labor to conduct, interpret, and document the results of the applicable comprehensive diagnostic services and inspections that can be safely performed on the electrical component(s) and/or connection(s) identified in the “System Components and Planned Service Interval” section of this Agreement. These services will be performed at a mutually agreed schedule, while your electrical distribution system and/or electrical component(s) is de-energized and include, as appropriate, the following:

1. Insulation Resistance: Measure and record the resistance of insulation under specified conditions set forth by applicable standards such as NFPA Standard 70B. This service is designed to assure that your electrical system and components’ insulation values are at an acceptable level, reducing the risk of explosions, fires and catastrophic breakdowns.

2. Winding Resistance Service: Measure, record and compare the winding resistance of components. This service will assure that components are operating to applicable specifications, extending useful life, and reducing the risk of catastrophic failure.

3. Contact Resistance Service: Measure and record the resistance between contact surfaces. This service addresses poor contact surfaces that would cause increased voltage drop, increased heat and reduced life expectancy, causing brown-outs, black-outs, explosions, fires and catastrophic failures.

4. Ground Resistance Testing: Measure and record the resistance of conductors, connections and devices. This service will reduce the risk of power quality, harmonic and safety issues.

5. Transformer Service: Measure, record and monitor all appropriate services and inspection to applicable standards such as NFPA Standard 70B. This service and inspection is performed to reduce the risk of transformer failure, which could result in fire, and/or catastrophic failure.

6. Motor Service: Measure, record and monitor all appropriate services and inspection to applicable standards such as NFPA Standard 70B. This service and inspection is performed to monitor and trend the motor and to reduce the risk of failure.

7. Visual and Mechanical Inspection: Interior and exterior of all components will be inspected to ascertain and, if necessary, make certain adjustments to ensure that its performance remains within specified limits. We will also identify corrosion, rust and discoloration, leaks, safety hazards, applicable electric code violations, grounding, physical damage and the general condition of components.

Predictive and Proactive Service:

We will provide the safety equipment, service instruments, and labor to perform the predictive and proactive services tasks that can be safely performed, as appropriate, in either an energized or de-energized state. These predictive and proactive service tasks will be performed on the electrical component(s) and/or connection(s) identified in the “System Components and Planned Service Interval” section of this Agreement. The following tasks, as appropriate, will be conducted:

1. Compare equipment nameplate data with drawings and specifications.

2. Inspect physical, electrical, and mechanical condition.

3. Torque all connections and terminations to applicable specifications.

4. Verify appropriate anchorage, required area clearances, physical damage, and correct alignment.

5. Exercise all active components (when applicable).

6. Inspect all mechanical indicating devices for correct operation and indication.

7. Clean interior and exterior of equipment, including vacuuming or blowing out as required.

8. Lubricate, as appropriate, to assure proper mechanical function(s).

9. Perform minor repairs (e.g., replace missing knockouts).

10. Compare service results and trends in order to determine appropriate actions to minimize the likelihood of an unscheduled business interruption or safety hazard.

Electrical Systems Analysis Report:

Any immediate safety or hazard concern that is identified during any visit will be shared with your authorized representative while on-site.

At the completion of our initial predictive and proactive service visit, we will compile the results of all inspections, measurements, surveys and predictive and proactive service activities. We will then analyze these results to ascertain the condition of the electrical devices and/or components. The initial analysis will be documented in the form of a TEGG Service Electrical Systems Analysis Report, which will be shared only with your authorized representative(s) within sixty (60) days of Agreement Effective Date.

The Electrical Systems Analysis Report will be reviewed with you and, if appropriate, include any recommended repairs, solutions and/or opportunities for improved electrical system efficiency, reduced electrical utility costs and/or improving safety conditions and/or minimizing the risk of downtime. If any component covered under the terms of this Agreement is found to be in a non-maintainable condition, you will be provided with the options and associated costs to either:

1. repair or replace the doubtful component; or

1. remove the doubtful component from the repair or replacement provisions of this Agreement.

C.A.R.E. Interviews:

We will seek your on-going critique in the form of our exclusive TEGG Service Customer Assurance Review and Evaluation (C.A.R.E.) interviews to assure your satisfaction with our services and to continually improve our performance in meeting your needs.

Priority Emergency Response:

The intent of this Full Service Electrical Maintenance Agreement is to avoid emergency electrical outages and business interruptions. In the event that the need ever arises for emergency electrical service, you will be provided with Priority Emergency Response, including special protocols on how to arrange for dispatching on a 24-hour basis.

If an electrical emergency occurs as a direct result of the failure of any electrical component(s) covered under the terms of this Agreement, you will not be charged for any labor (including overtime or travel and living expenses) or material costs to diagnose the problem and repair or replace the failed component(s). In addition, this Agreement provides for temporary emergency power in the event that a failed covered component results in extended repair or replacement.

Certification of Services:

Upon your request and at no additional charge, we will provide you with written certification of all services performed by us. It is strongly recommended that you provide a copy of this certificate to your insurer for the purpose of potential risk rating improvement. In addition, your appropriate representative should retain a copy pertaining to any safety or accrediting inspection.

System Components and Planned Service Interval

| | |FIRST YEAR |SECOND YEAR |THIRD YEAR |

| |ELECTRICAL |Full |Full |I/R Image |Full |Full |I/R Image |Full |Full |I/R Image |

| |DISTRIBUTION |AEM |AEM |and/or |AEM |AEM |and/or |AEM |AEM |and/or |

| |SYSTEM |Ener-gized|De-Ener-gi|Ultra- |Ener-gized|De-Ener-gi|Ultra- |Ener-gized|De-Ener-gi|Ultra- |

|QTY. |COMPONENT | |zed |sonic | |zed |sonic | |zed |sonic |

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NOTES:

1. At our discretion the minimum service interval frequency may be increased at no additional charge to you.

2. You will be provided a detailed inventory of all components during the initial review of the Electrical Systems Analysis.

     

1. ACCESSABILITY: In order for us to perform the required services for you in a cost-effective manner and for the price guaranteed in this Agreement, you agree to permit us free and timely access to areas, electrical system(s), circuit(s) and/or equipment, and allow us to energize and de-energize the electrical system and/or circuits and to start and stop the equipment as necessary. No equipment will be turned off without your prior approval. All planned work under this Agreement will be performed during our normal working hours unless otherwise stipulated elsewhere in this Agreement.

2. TAXES: You agree to be responsible for all applicable taxes on the services and/or materials provided.

3. PAYMENT TERMS: You agree to promptly pay invoices within ten (10) days of receipt. Should a payment become thirty (30) days’ or more delinquent, we may stop all work under this Agreement without notice and/or cancel this Agreement. If this happens, the entire Agreement price (less prior payments) will become due and payable immediately upon demand.

In the event we must commence third party collection or arbitration in order to recover any amount payable under this Agreement, you agree to reimburse us for all costs and attorneys’ fees when incurred by us.

4. ACCEPTANCE OF EQUIPMENT: The annual Agreement price is conditioned upon the covered components being in a maintainable condition. If the initial predictive and proactive maintenance visit and the resulting Electrical Systems Analysis indicate that a repair or replacement is required, a firm quotation for this repair or replacement will be submitted to you for approval. Should you not authorize the repair or replacement, the non-maintainable component(s) are automatically removed from the repair or replacement provisions of this agreement.

5. EXTRA WORK: If you require any alteration to or deviation from this Agreement involving extra work, you agree that the cost of material and/or labor will be an extra charge (fixed-price amount to be negotiated or on a time-and-material basis at our rates then in effect) over the sum stated in this Agreement.

6. STRUCTURES & BUILDINGS: Unless otherwise stated elsewhere in this Agreement, we will not be required to move, replace or alter any part of the building or structures in the performance of this Agreement.

7. WORK PERFORMED BY OTHERS: Unless otherwise stated elsewhere in this Agreement, we will not be responsible for work that is performed by personnel other than ours. Therefore, you agree to permit only our personnel or agent(s) to perform the work included in the scope of this Agreement. Should anyone other than our personnel perform such work, we may, at our option, cancel this Agreement or eliminate the involved item(s) of equipment from the repair or replacement provision of this Agreement.

8. URGENT CALL OUT: If an urgent service call is made at your request and inspection indicates a condition, which is not covered under this Agreement, we may charge you for our services at the rate then in effect.

9. TEMPORARY POWER: Unless stated elsewhere in this Agreement, we do not include the provision of temporary power. If requested, these services will be charged to you at the rate then in effect.

10. RESPONSIBILITY FOR TOOLS & EQUIPMENT: If you request a multi-day power quality monitoring, we may have to store materials, tools, instruments, and/or equipment at your premises, and you agree to be responsible for any loss or damage to our materials, tools, instruments, and/or equipment while stored on your premises. You also agree to bear the risk of any loss or damage to the work that has been completed by us.

11. HOLD HARMLESS: In the unlikely event that there is a claim, damage, loss or expense that is caused in whole or in part by any active or passive act or omission by you, anyone directly or indirectly employed by you or for anyone for whose act you may be liable, then, to the fullest extent permitted by law, you will defend, indemnify and hold harmless our agents, employees and us from and against these claims, damages, losses and expenses including but not limited to attorneys’ fees arising out of or resulting from the performance of our work under this Agreement.

12. HAZARDOUS COMMUNICATIONS: In order to comply with OSHA Hazard Communication Standard Regulations, you agree to make available to our personnel all pertinent Material Safety Data Sheets (MSDS) if required.

13. HAZARDOUS SUBSTANCES: Our obligations under this proposal and any Agreements do not include the identification, abatement or removal of any asbestos products or other hazardous substances. In the event such products or substances are encountered, our sole obligation will be to notify you of the existence of such products and materials. We will have the right thereafter to suspend our work until such products or materials and resultant hazards are removed. The time for completion of the work under this Agreement shall be extended to the extent caused by the suspension of work, and the Agreement Price will be equitably adjusted.

14. DELAYS OUTSIDE OUR CONTROL: In the unlikely event that there is a delay, loss, damage or detention caused by unavailability of machinery, equipment or materials, delay of carriers, strikes (including those by our employees) lockouts, civil or military authority, priority regulations, insurrection or riot, action of the elements, forces of nature, or by any cause beyond our control, you agree that we will not be liable for this delay, loss, damage or detention.

15. LOSS OF PROFITS: Under no circumstances, whether arising in contract, tort (including negligence), equity or otherwise, will we be responsible for loss of use, loss of profit, increased operating or maintenance expenses, claims of your tenants or clients, or any special, indirect or consequential damages.

16. FAILURE TO PERFORM: In case of any failure to perform any of our obligations under this Agreement, our liability is limited to repair or replacement at our option, and such repair or replacement will be your sole remedy. This warranty is conditioned upon proper operation and maintenance by you and will not apply if the failure is caused or contributed to by accident, alteration, abuse or misuse, and will not extend beyond the term of this Agreement.

17. INSTALLATIONS & REPAIRS: We guarantee that our workmanship shall be free from defects for one (1) year from date of any installation or repair. If any replacement part or item of equipment installed by us is defective, we will extend to you the benefits of any warranty we have received from the manufacturer.

18. LIMITS OF LIABILITY: We guarantee that our performance of services under this Agreement will be in accordance with generally accepted trade practices for similar services. In no event will our liability exceed the total amount of compensation we receive for the services rendered, except for the cost to repair or replacement of equipment covered under the Repair or Replacement Guarantee provision of this agreement. Said Repair or Replacement Guarantee shall be limited to a maximum $5,000,000 Limit of Loss with a $100,000 Sub Limit for Overtime, Express shipments and Temporary Power.

19. EXCLUSIONS: This Agreement does not include responsibility for the design of the system; obsolescence of equipment or parts; repair(s) or replacement necessitated by action of the elements or forces of nature (such as lightning and electrical storms), vandalism, fire, misuse or abuse of the system(s); work performed on the system(s) by anyone other than Contractor’s personnel; negligence of others (including Customer); failure of Customer to properly operate the system (such as overloading of circuits); requirements of governmental, regulatory or insurance agencies; electrical utility power deficiencies (such as surges, phase loss or power loss); ); the depletion of a battery charge or the inability of batteries to hold a charge; or other causes beyond the control of the Contractor.

20. DISPUTE RESOLUTION: Should a dispute arise between Contractor and Customer that remains unresolved, then either party may seek exclusive relief through the procedures of the American Arbitration Association (AAA), Commercial Arbitration and Mediation Center for the Americas (CAMCA), or any equivalent recognized independent arbitrating organization. There shall be three arbitrators, one (1) appointed by each party, and the third impartial arbitrator appointed by the Arbitrating authority. Each arbitrator shall have one (1) vote. The hearing shall be conducted in accordance with the Arbitrating authority’s rules. (A majority decision of the panel shall be final and binding on the parties.) We both agree that any action through arbitration against either of us relating to any breach of this Agreement must be commenced within one (1) year from the date of the work.

21. PURCHASE ORDERS: The Customer acknowledges and agrees that any purchase order issued by Customer, in accordance with this Agreement, is intended only to establish payment authority for the Customer’s internal accounting purposes. No purchase order shall be considered to be a counteroffer, amendment, modification, or other revision to the terms of this Agreement. No term or condition included in the Customer’s purchase order will have any force or effect.

22. CHANGES: This Agreement shall not be subject to change or modification other than by a writing to which both parties are signatories.

23. EARLY TERMINATION: In the event you terminate or cancel this Agreement for any reason other than our breach before its intended expiration date, you agree to pay the entire stated price for the year of cancellation or reimburse all costs for the work performed to date, whichever is greater.

24. ELECTRICAL DISTRIBUTION SYSTEM: For the purpose of this Agreement, the electrical distribution system is defined as all wiring, cables, bus structure, conductors and components within the Customer’s premises used for the distribution of electricity from the point of attachment to the utility to the connection at the line side of any final installed load and includes all of the Customer’s switchgear, breakers, disconnects, auto transfer devices, batteries, power conditioners, capacitors, power distribution centers, relays, motor control centers, and motor controllers that are used to distribute power within the Customer’s facility, but does not include any rotating electrical equipment. If rotating electrical equipment is included in the Agreement, the scope of this Agreement applies only to the electrical components of such rotating equipment and does not include any prime mover or driven equipment, such as an engine, turbine, compressor, pump or machine.

Agreement Effective Date:

     

Agreement Renewal Date:

          

Agreement Price and Payment Terms:

Your annual Agreement price based upon the work detailed previously is as follows:

|First Year AEM Preferred |      |

|Second Year AEM Preferred |      |

|Third Year AEM Preferred |      |

Payment for these services will be made: Annually; Semiannually; Quarterly. Payment will be made in accordance with Item 4 of the General Provisions and Conditions section.

Your and Our Acceptance:

This Agreement will become effective only after acceptance as evidenced by the respective signatures of the parties authorized representatives. This Agreement includes all of your and our obligations. No person has authority to make any claim, representation, promise or condition on our behalf that is not documented within this Agreement.

Authorized For: Authorized For:

|[Customer Company Name] |[TSC Name] |

___________________________________ _____________________________________

Date Date

___________________________________ _____________________________________

Signature Signature

|[Contact Name] |[TSC Gen. Mgr. Name] |

|[Contact Title] |[TSC Gen. Mgr. Title] |

| |TEGG Service Division |

TO ORDER SERVICES UNDER THIS AGREEMENT WITH A PURCHASE ORDER, PLEASE PROVIDE THE FOLLOWING:

PO Number: ____________ Date of Issue: ___________ Customer Signature: _________________________

Note: When issuing a purchase order for this Agreement the services, responsibilities, terms and conditions for both parties remain as detailed in this Agreement.

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AEM PREFERRED GENERAL PROVISIONS AND CONDITIONS

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