Attached files
Exhibit 10.2
Energy Audit and Proposal for Precision Medical Products, Inc.
Sales Agreement
Purchaser: Precision Medical Products, Inc.
Facility Address: 44 Denver Road
City: Denver State PA Zip: 17517
Energy Edge Technologies (hereafter referred to as the Company) agrees to furnish and install, to the above named Purchaser, a multi-product energy conservation system and all associated hardware as designed and submitted to Purchaser in the Company proposal An Insured Savings Guarantee certificate will be issued upon completion
Capital Purchase Payment Terms
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Total Purchase Price
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50% at Signing
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25% at Installation
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25% Upon Completion
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Sales Tax
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$90,282
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$45,141
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$22.570
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$22,571
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$0
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OR
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Lease Payment
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Term
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Sales Tax
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$2,031
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60 Months
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Included
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Remarks:
Installation work to be done at: address above
Annual Maintenance Contract:
An annual maintenance contract is available at the end of the Return of Investment (ROI) period; which is 35 months. The Company will inspect all equipment on an annual basis and replace or repair any equipment as needed. The cost of the service contract is $4,514 paid annually at the start of each contract year. Alternatively, the Company offers to waive the service contract fee and offers a lifetime warranty on all equipment provided Purchaser agrees to act as a written and verbal reference for the Company (provided the guaranteed savings are realized).
Purchaser accepts__________or rejects____X______the maintenance contract at an annual fee of $ 4,514
Purchaser accepts _____X___or rejects___________to be a reference for the Company and receive a lifetime warranty at no cost to the Purchaser.
Guarantee of Savings
The Purchaser is guaranteed the following savings in average monthly kWh consumption and average monthly utility cost:
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Average Monthly Bill
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$ | 29,250 | ||
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Guaranteed Savings
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8.82 | % | ||
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Average Amount Saved Monthly
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$ | 2,580 | ||
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Project Cost Before EPAct 2005 Tax Deduction
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$ | 90,282 | ||
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Payback Before EPAct 2005 Tax Deduction
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35 Months | |||
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Project Cost After EPAct 2005 Tax Deduction
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$ | 77,510 | ||
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Payback After EPAct 2005 Tax Deduction
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30 Months | |||
Energy Audit and Proposal for Precision Medical Products, Inc.
Verification
The Company will coordinate with the Purchaser to verify savings utilizing the methods stipulated by the International Performance Measurement and Verification Protocol, Option C. The standards may be reviewed at www.ipmvp orq,
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Verification Method
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Verification Period
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Electrical Meter readings at each treated load before and after installation or project to verify installation and operation
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At Installation
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Comparison of electrical costs and consumption to baseline for savings verification
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Quarterly after installation for 35 months
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The variables Known to affect the electric bills and therefore to be used for verification purposes are stated as discussed by both parties. These variables include but are not necessarily limited to the following:
• Hours of operation
• Temperature
• Production Levels
In the event of an apparent savings shortfall, the Purchaser will allow Company representatives access to the facility, and will cooperate with the Company by providing all pertinent data required to find the cause of such discrepancies. This may include, but is not limited to, current and baseline production records, employee work hours, hours of operation, equipment added but not covered in the original survey or treatment installation, comparison of NOAA degree days (both current and through the baseline period), and any other variables that may be deemed to affect electrical usage. Use of this data will only be used to determine if the perceived shortfall is from the installed equipment not fulfilling the guaranteed performance: or from other factors outside the scope of the written guarantee.
Three Year Limited Warranty
All equipment comprising the system are warranted by the manufacturers against defects in materials or workmanship for at least three (3) years from date of purchase of the product from the company. The warranty covers all product costs associated with the replacement or repair of defective equipment. With the exception of light bulbs and ballasts, the Company extends the manufacturers warranties to include labor during this three (3) year period and also extends this warranty for the length of the ROI period if longer than the three (3) year manufacturer warranty.
