EXHIBIT 10.20
[ACTIVE POWER LOGO] [POWERWARE LOGO]
POWERING THE WORLD
Contract No. AP-01-01
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CONTRACT
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DISTRIBUTOR AGREEMENT
BETWEEN
POWERWARE CORPORATION
AND
ACTIVE POWER, INC.
DISTRIBUTOR AGREEMENT
Table of Contents
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Article Description Page No.
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1.0 - Scope of Agreement.......................................................5
1.1 Grant of License and Appointment.............................5
1.2 Agents License...............................................5
2.0 - Term of Agreement........................................................6
2.1 Term.........................................................6
3.0 - Marketing................................................................6
3.1 Joint Marketing Efforts......................................6
4.0 - Orders for Active Power Products.........................................6
4.1 Orders.......................................................6
4.2 Acceptance of Orders.........................................6
4.3 Survival of Orders...........................................7
4.4 No Agent Orders..............................................7
4.5 Preprinted Order Terms.......................................7
4.6 Order Forecast...............................................7
5.0 - Delivery, Installation, Title and Risk of Loss...........................7
5.1 Delivery and Installation....................................7
5.2 Delivery Charges.............................................7
5.3 Title and Risk of Loss.......................................7
6.0 - Prices, Payment, and Discount Rights.....................................8
6.1 Active Power Products Pricing................................8
6.2 Payment of Charges...........................................8
6.3 Discounts....................................................8
6.4 Training Systems.............................................8
7.0 - Active Power Warranties..................................................8
7.1 Active Power Warranties......................................8
7.1.1 License Authority...................................8
7.1.2 No Liens or Claims..................................9
7.1.3 Active Power Products Warranty......................9
7.1.4 Notice of Warranty Period...........................9
7.1.5 Infringement Warranty...............................9
7.1.6 Maintenance Assistance.............................10
7.1.7 Warranty Service...................................10
8.0 - WARRANTIES OF THE PARTIES...............................................10
8.1 Warranties of the Parties...................................10
8.1.1 Obligation Warranty................................10
8.1.2 No Authority.......................................10
8.1.3 No Restrictions....................................10
8.1.4 Valid Agreement....................................11
8.1.5 No Prohibitions....................................11
8.1.6 Corporate Authority................................11
8.1.7 Exclusions.........................................11
Table of Contents (Continued)
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Article Description Page No.
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9.0 - MISCELLANEOUS...........................................................11
9.1 No Partnership..............................................11
9.2 Publicity...................................................11
9.3 Confidential Information....................................11
9.4 Limitation of Liability.....................................12
9.5 Trademarks..................................................12
9.6 Administration of Agreement.................................12
9.7 Default.....................................................12
9.8 Assignment and Subcontracting Prohibited....................12
9.9 Governing Law...............................................13
9.10 Force Majeure...............................................13
9.11 Compliance with Laws........................................13
9.12 Severability................................................13
9.13 Notices.....................................................13
9.14 Dispute Resolution..........................................13
9.15 Rights Upon Orderly Termination.............................13
9.16 Termination of Orders.......................................14
9.17 Entire Agreement............................................14
TABLE OF EXHIBITS
Exhibits Description Page No.
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A Description of Active Power Products 15
B Discount Schedule 16
C Active Power Product Warranties 17
D POWERWARE Marketing Plan 18
E POWERWARE Approved Agents 19
F Active Power Training 22
G Warranty and Post-Warranty Service (Attachments 1-6) 23
Contract No. ES-98-045
DISTRIBUTOR AGREEMENT
THIS DISTRIBUTOR AGREEMENT (hereinafter referred to as the "Agreement")
is entered into by and between Powerware Corporation, with a place of business
at 8609 Six Forks Road, Raleigh North Carolina, 27615 (hereinafter referred to
as "POWERWARE") and ACTIVE POWER, INC, with a place of business at 11525
Stonehollow Drive, Suite 110, Austin, Texas 78758 (hereinafter referred to as
"Active Power"), and is effective on the date it is executed by the latter of
POWERWARE and Active Power.
W I T N E S S E T H
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WHEREAS, POWERWARE desires to obtain a non-exclusive right to market
and distribute standard Active Power Products; and
WHEREAS, Active Power is willing to grant POWERWARE a non-exclusive
right and license to market and distribute its standard products;
NOW THEREFORE, in consideration of the representations and agreements
contained herein, the parties hereby covenant and agree as follows:
ARTICLE 1.0 - SCOPE OF AGREEMENT
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1.1 Grant of License and Appointment. Subject to (and only during the term
of) this Agreement, Active Power hereby appoints and grants to
POWERWARE and its Agents, as defined below, and POWERWARE hereby
accepts from Active Power, a non-transferable, royalty-free, right and
license to: (i) non-exclusively purchase, market, distribute and resell
the Active Power flywheel products described in the attached Exhibit A
(hereinafter referred to as either the "standard CleanSource products
from Active Power" or the "POWERWARE Flywheel Systems" line of Active
Power Products, depending on how they are designated in Exhibit A), to
end-users located world-wide (hereinafter referred to as the "End
Users"); and (iii) incorporate private and/or co-labeling of the Active
Power Products using POWERWARE logos. Such "standard CleanSource
products from Active Power" and the "POWERWARE Flywheel Systems" line
of Active Power Products" may collectively be referred to as "Active
Power Products." During the term of this Agreement, POWERWARE and its
authorized agents may hold themselves out to the public as an
authorized distributor, reseller, and service provider of Active Power
Products. Active Power agrees that upon execution of this Agreement, it
will take the necessary steps to ensure that only POWERWARE, General
Electric Company and Caterpillar Inc. shall have the non-exclusive
rights in North America, granted hereunder, to the standard CleanSource
products from Active Power.
1.2 Agents License. It is understood and agreed that Active Power hereby
grants as a sublicensee to each of the Agents listed in Exhibit E below
the same non-transferable, royalty free right and license granted to
POWERWARE above and that the Agents shall be entitled to all the
licenses, benefits, warranties, discounts, and rights granted to them
only through POWERWARE by Active Power under this Agreement; provided,
however, that the foregoing license is contingent upon and subject to
each Agent being an authorized representative of POWERWARE and bound by
the terms of said Agreement. However, Active Power will have no direct
obligation to any such Agent and POWERWARE will be fully responsible
for performance and compliance by all Agents and all payments and
contact from such Agents to Active Power will be through POWERWARE.
ARTICLE 2.0 - TERM OF AGREEMENT
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2.1 Term. This Agreement shall commence on the effective date of the
Agreement and, except as otherwise provided herein, shall continue for
an initial term through March 31, 2003.. This Agreement will be
extended in additional one (1) year terms, given performance by both
parties as outlined below, except that either party may terminate this
agreement by giving the other written notice of termination not less
than sixty (60) days prior to the expiration of the initial term or any
renewal term.
ARTICLE 3.0 - MARKETING
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3.1 Joint Marketing Efforts. The parties agree to cooperate in the joint
marketing of the Active Power Products as mutually agreed in writing by
the parties (Exhibit D). Each party shall be responsible for its own
travel, living and personnel expenses with respect to the joint
marketing of the Active Power Products. Advertising costs shall be
borne by each party as mutually agreed in advance. POWERWARE makes no
guarantee or commitment as to the success of any marketing effort, and
POWERWARE has no obligation to Active Power whatsoever other than as
provided in this Agreement.
ARTICLE 4.0 - ORDERS FOR ACTIVE POWER PRODUCTS
--------------------------------
4.1 Orders. No Active Power Products shall be provided to POWERWARE, its
Agents or the End-User by virtue of this Agreement alone. Active Power
Products must be requested through issuance of a POWERWARE standard
purchase order (hereinafter referred to as the "Order"). Each Order
shall reference the POWERWARE contract number assigned to this
Agreement and shall include the following minimum information:
A) The date of the Order and the Order number;
B) The complete list of the Active Power Products covered by the
Order, specifying quantity, type, model number and description
for each model number;
C) The purchase price for the Active Power Products and the
applicable discounts available to POWERWARE;
D) The POWERWARE, Agent or End-User location to which the Active
Power Products are to be delivered and, if different, the
location where the Active Power Products are to be initially
installed or used;
E) Any applicable site specifications for the Active Power
Products;
F) The requested delivery date for the Active Power Products;
G) Any non-standard terms and conditions specifically applicable
to the Order only.
4.2 Acceptance of Orders. Within ten (10) business days after Active
Power's receipt of an Order, Active Power shall accept the Order in
writing and shall return a legible copy of the accepted Order to the
POWERWARE; provided, however, that if an Order fails to provide all
required ordering information or incorrectly states prices or other
material information relative to the Order, or if the Order is not
consistent with Active Power's then current lead time requirements,
Active Power may reject the Order by promptly giving written notice of
rejection stating in detail the reasons for rejection and the
modifications necessary to make the Order acceptable to Active Power.
Active Power shall make no changes, amendments, modifications,
additions or deletions to an Order without the prior written consent
POWERWARE. Acceptance of an Order shall bind Active Power to use
reasonable efforts to honor delivery dates, amounts and other ordering
information shown on the Order, including supplemental provisions
contained therein. The effective date of an Order shall be the date on
POWERWARE receives an accepted copy of the Order without modification
or amendment.
4.3 Survival of Orders. Notwithstanding any provision contained herein to
the contrary (and unless otherwise elected by Active Power in the case
of termination of this Agreement for POWERWARE's breach), the terms and
conditions of this Agreement shall remain in full force and effect
(with respect to the applicable Order) until the expiration of the term
of any proper accepted Order under this Agreement which was received
prior to the termination or other expiration of this Agreement,
provided that the delivery date requested is within 90 days of
termination or expiration of this Agreement. It is understood and
agreed to by the parties hereto that the terms and conditions of this
Agreement shall apply to all Orders hereunder with the exception of any
nonstandard terms and conditions specifically applicable to the
particular Order only that are conspicuously outlined on the face of
the Order in variance herewith, subject to Active Power's right to
reject any such Order containing terms and conditions varying from
those contained herein.
4.4 No Agent Orders. This Agreement allows for orders to be issued only by
POWERWARE. Active Power will not be required to accept orders directly
from Agents of POWERWARE.
4.5 Preprinted Order Terms. THE PREPRINTED TERMS AND CONDITIONS APPEARING
ON AN ORDER, ACKNOWLEDGMENT, INVOICE, DELIVERY OR MAINTENANCE FORM
SHALL NOT APPLY TO OR BECOME PART OF THE ORDER REGARDLESS OF ANY
STATEMENT TO THE CONTRARY CONTAINED IN THE ORDER FORM OR OTHER FORM.
4.6 Order Forecast. POWERWARE shall provide to Active Power a mutually
agreed upon rolling 12-month forecast every 90 days. This shall be a
non-binding forecast except that Active Power shall not be obligated to
deliver more than 150% of the preliminary forecasted amount.
ARTICLE 5.0 - DELIVERY, INSTALLATION, TITLE AND RISK OF LOSS
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5.1 Delivery and Installation. Active Power shall use reasonable commercial
effort to deliver the Active Power Products, all applicable manuals and
documentation, to the address specified in an Order no later than the
date set forth on such Order. Equipment shall be shipped F.O.B. Active
Power's facility in Austin, Texas. Unless POWERWARE designates a
carrier in the Order, Active Power shall select the carrier, provided,
however, that the carrier shall not be construed to be an agent of
Active Power. Active Power shall provide POWERWARE not less than ten
(10) days prior written notice as to the scheduled delivery date for
the Active Power Products. Active Power shall notify POWERWARE
immediately in writing in advance of any delay in delivery when such
delay first becomes apparent to Active Power.
5.2 Delivery Charges. Prices provided from Active Power do not include
installation, freight and handling charges unless specifically listed.
Unless Active Power is furnished with a proper exemption certificate,
there shall be added to the amounts shown on the Quotation a charge for
all taxes, however designated, levied or based on this Agreement or the
Equipment.
5.3 Title and Risk of Loss. Risk of loss for the Active Power Products
shall pass to POWERWARE upon shipment of the Active Power Products.
Title to the Active Power Products shall pass to POWERWARE, free and
clear of any lien, claim and/or encumbrances upon payment in full of
the purchase price for the Active Power Products.
ARTICLE 6.0 - PRICES, PAYMENT, AND DISCOUNT RIGHTS
------------------------------------
6.1 Active Power Products Pricing. The prices for the Active Power Products
are listed on the attached Exhibit A and will be restated on any Order
issued hereunder Each 12-month period POWERWARE shall receive a
specific discount from the list price based on the annual volume
forecast (entered by POWERWARE on the Effective Date of this Agreement
and its respective anniversaries). That discount shall apply to all
POWERWARE purchases made during that specific 12-month period. In the
event actual purchases made (and payments received) during the year do
not meet the forecasted amounts by the anniversary of the Effective
Date, Active Power shall adjust the discount for the following 12-month
period to reflect the miss in volume in the preceding 12-month period.
Below is an example operation of Active Power's discount pricing
schedule:
Example:
[****]
6.2 Payment of Charges. The charges for the Active Power Products ordered
hereunder shall be invoiced directly to POWERWARE, upon shipment of the
Active Power Products to installation address indicated in such Order.
Payment of the invoice for the Active Power Products shall be due
within forty-five (45) days after of the invoice. POWERWARE shall be
solely responsible and liable for payment of any Active Power Products
ordered hereunder. Unless otherwise agreed in writing, all payments due
hereunder shall be made within 30 days of the date of shipment of
Equipment or performance of Services. Late payments shall accrue
interest at the lower of (a) 1 1/2% per month or (b) the lawful maximum
rate on the unpaid balance in the state in which the Equipment is
located. POWERWARE hereby guarantees Active Power a security interest
in Equipment to secure full payment hereunder.
6.3 Discounts. Purchases made (as evidenced by payments received) in a
particular year apply only to the annual volume for that particular
year and shall not carry over nor apply to a different year's volumes.
6.4 Training Systems. Active Power will sell a sufficient number of systems
at cost to Powerware if and when Powerware determines it is necessary
to establish service training capability at Powerware Global Services
training centers,
ARTICLE 7.0 - ACTIVE POWER WARRANTIES
-----------------------
7.1 Active Power Warranties. In addition to any other warranties and
representations contained herein, Active Power shall provide the
warranties set forth below with respect to the Active Power Products:
7.1.1 License Authority. Active Power represents and warrants that
it has the absolute right to grant the license and sublicense
rights granted herein to POWERWARE and to allow POWERWARE to
market and re-sell the Active Power Products hereunder to
End-Users in accordance with the provisions of this Agreement.
**Confidential treatment has been requested for the portions of this agreement
marked by asterisks. Omitted material for which confidential treatment has been
requested has been filed separately with the Securities and Exchange
Commission.**
7.1.2 No Liens or Claims. Active Power warrants and represents that
the Active Power Products are not subject to any lien, claim
or encumbrance inconsistent with the license rights granted
herein and that POWERWARE and the End-User shall be entitled
to possess and use the Active Power Products, without any
interruption by Active Power or any party claiming by or
through Active Power, provided that POWERWARE and the End-User
shall duly perform its obligations hereunder.
7.1.3 Active Power Products Warranty. It is understood and agreed
that all Active Power Equipment sold to End-Users pursuant to
this Agreement shall be warranted in accordance with the
Active Power Equipment warranty set-forth on the attached
Exhibit C, which shall be passed through and assigned to the
End-User, provided that in no event will the warranty extend
more than 18 months after shipment from Active Power.
Notwithstanding anything to the contrary in this Agreement, it
is understood and agreed that POWERWARE shall have no
liability or responsibility what-so-ever with respect to the
warranties for the Active Power Equipment and Active Power
Software and that Active Power shall either directly or
through POWERWARE, support the End-Users with the respective
warranty services set-forth therein. POWERWARE shall not
expand, modify, or amend the warranties without the prior
written consent of Active Power.
7.1.4 Notice of Warranty Period. When POWERWARE passes through
Active Power's warranty to an End-User as provided above,
POWERWARE agrees to notify the End-User of the actual warranty
period available to the End-User and the level of warranty
service and other details of warranty on any Active Power
Products sold by POWERWARE to and End-User, POWERWARE will
also notify an End-User if no Active Power warranty is passed
through.
7.1.5 Infringement Warranty. Active Power warrants and represents
that the Active Power Products, including without limitation
each component and any unit or part thereof, are not subject
to any claim of infringement under any U.S. patent, trademark,
tradename, service mark, copyright, trade secret or other
proprietary right of any third party. In the event of a third
party claim against POWERWARE and/or the End-User asserting a
such a patent, copyright, trade secret or other proprietary
right violation involving the Active Power Products, Active
Power shall defend or settle the claim, at its expense, and
shall indemnify POWERWARE and/or the End-User against any
loss, cost, expense of liability resulting from or arising out
of payments to third parties due to the claim, whether or not
the claim is successful, provided that POWERWARE and/or the
End-User notifies Active Power in writing within sixty (60)
days after POWERWARE and/or the End-User first receives
written notice of the claim and gives Active Power necessary
authority, available information, and reasonable assistance
for the defense or settlement of the claim, over which Active
Power will have sole control. If the Active Power Products are
in Active Power's opinion likely to or do become the subject
of a claim of infringement or violation of a patent,
copyright, trade secret or other proprietary right of a third
party, Active Power shall have the option to, at its expense
and without diminishing its foregoing obligations, either
procure for POWERWARE and/or the End-User the right to
continue using the Active Power Products or accept the return
of the Active Power Products and promptly refund to POWERWARE
and/or the End-User the original amount paid for the equipment
by POWERWARE and/or the End-User to Active Power with respect
to the Active Power Products so effected. Each party shall in
all events be
required to mitigate its damages. These warranties and
indemnities will survive the termination or expiration of this
Agreement and such indemnity is POWERWARE's sole remedy for
the types of issues referred to in this section. In the event
of any claim, demand or suit based upon an alleged breach of
any of Active Power's warranties under this 7.1.5 but subject
to the foregoing, POWERWARE will have the right to participate
in the defense of the same through counsel of POWERWARE'
choosing at its own expense, but no settlement will be
affected without Active Power's prior written consent, which
consent Active Power will not unreasonably withhold or delay.
Active Power and POWERWARE agree to notify each other promptly
of any third party claim, and further agree to fully cooperate
in the defense thereof.
7.1.6 Maintenance Assistance. Active Power will provide
documentation to POWERWARE for purposes of providing
maintenance on Active Power products. Active Power will
provide this documentation in both written and electronic form
as well grant copyright reproduction of materials to POWERWARE
for said maintenance purposes. Active Power will also provide
free maintenance training classes to POWERWARE as set forth in
Exhibit F, and additional classes may be provided as requested
by POWERWARE at the then published training courses prices.
7.1.7 Warranty Service. POWERWARE service personnel or
Powerware-authorized service providers shall provide all
warranty service for the Active Power Products sold by
POWERWARE. Active Power shall reimburse POWERWARE for agreed
upon expenses for labor, and Active Power's warranty shall
govern costs related to parts. Warranty service terms and
conditions are set forth in Exhibit G.
ARTICLE 8.0 - WARRANTIES OF THE PARTIES
-------------------------
8.1 Warranties of the Parties. In addition to any other warranties and
representations contained herein, each party hereby makes the following
representations and warranties:
8.1.1 Obligation Warranty. Each party warrants and represents that
it will perform its obligations hereunder in a good,
professional, workmanlike and competent manner, in accordance
with applicable professional standards.
8.1.2 No Authority. Except as otherwise provided herein, it is
expressly understood and agreed that neither party has any
right or authority to nor shall either party directly or
indirectly incur any obligation or responsibilities on behalf
of the other party or commit the other party to any matter or
understanding or make any warranties or representations with
respect to the Active Power Products or other activities
hereunder, each party being deemed to be independent. This
Agreement shall not create any agency or other similar
relationship between the parties.
8.1.3 No Restrictions. Neither the execution and delivery of this
Agreement nor the consummation of the transactions
contemplated hereby nor the fulfillment of or compliance with
the provisions of this Agreement will violate any corporate
restriction to which said party is subject or conflict with or
result in a breach of or constitute a default under any of the
terms, conditions or provisions of any agreement or instrument
to which said party is a party or by which said party is
bound.
8.1.4 Valid Agreement. This Agreement is a legal, valid and binding
agreement of said party and, assuming that it is enforceable
against each party hereto, is enforceable against the other
party in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws relating to or affecting the
enforcement of creditors' rights generally or by general
equitable principles, regardless of whether such
enforceability is considered in a proceeding in equity or at
law.
8.1.5 No Prohibitions. To each parties best knowledge, there is no
pending or threatened action, suit or other proceeding or, any
investigation before or by any governmental agency which might
materially and adversely affect the financial condition or
business prospects of said party or which questions the
validity of any action taken or to be taken by said party
pursuant to or in the pursuit of this Agreement.
8.1.6 Corporate Authority. Each party hereto is a corporation duly
incorporated and validly existing under the laws of a state in
The United States of America, and has full legal right, power
and authority to enter into this Agreement and to consummate
the transactions provided for herein; and this Agreement has
been duly authorized, executed and delivered by said party.
8.1.7 Exclusions. THE WARRANTIES EXPRESSED HEREIN ARE IN LIEU OF ALL
OTHER WARRANTIES EXPRESSED OR IMPLIED, INCLUDING BUT NOT
LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE.
ARTICLE 9.0 - MISCELLANEOUS
-------------
9.1 No Partnership. Nothing contained herein shall constitute a partnership
or joint venture nor make either party the agent or representative of
the other. Except as otherwise provided herein, neither party has
authority to bind the other, incur any liabilities on behalf of the
other, nor to direct the employees of the other. Neither party shall
have the authority to vary, alter or enlarge any of the other party's
obligations hereunder or, except as otherwise provided herein, make
representations, warranties or guarantees on behalf of the other.
9.2 Publicity. Each party shall use its best efforts not to disclose to any
third party without the prior written consent of the other, the terms
of this Agreement except as required by law or by governmental
regulations, requirements or orders, or as may be necessary to
establish or assert its rights hereunder and except on a confidential
basis to a party's professional advisors and potential
investors/acquirers. POWERWARE agrees to cooperate with Active Power in
selective, mutually agreed upon advertisements or press releases of
installations to further marketing efforts. POWERWARE and Active Power
also agree to cooperate on a press release to announce this agreement
as well as the CleanSource2 POWERWARE Line of Active Power Products.
9.3 Confidential Information. Each party agrees that if any confidential or
proprietary information, which is clearly marked as being confidential
or proprietary of the other party which comes into its possession, any
such material and information will be held in confidence, and such
party will not make any use thereof other than for the performance of
this Agreement, will release it only to employees requiring such
information, and will not release or disclose it to any other party.
The foregoing will not apply to any information which is already known
to or in the possession of the receiving party without restriction on
disclosure at the time of disclosure by the disclosing party, is
independently developed by the receiving party without reference to the
confidential information of the disclosing party, or is or becomes
public knowledge through no fault of the receiving party. If either
party is required by applicable law, rule, regulation or lawful order
or ruling of any court, government agency or regulatory commission to
disclose any confidential information of the other party, then the
receiving party agrees that it will provide the disclosing party with
prompt written notice of such request(s) to enable the disclosing party
to seek an appropriate protective order or take steps to protect the
confidentiality of such confidential information.
9.4 Limitation of Liability. Neither party shall be liable to the other for
any indirect, incidental, consequential or special damages, including,
without limitation, any loss of revenues or loss of profits (other than
payments under this Agreement) or for cost of procurement of substitute
goods or services.
9.5 Trademarks. Active Power hereby grants to POWERWARE the non-exclusive
right and license to market the Active Power Products under Active
Power's existing trademarks for the applicable Active Power Products in
any manner approved by Active Power.
9.6 Administration of Agreement. Each party hereby designates its employees
identified below as its contract administrator for this Agreement. The
contract administrator(s) shall be responsible for representing their
respective employers in contractual and commercial matters relative to
the administration of this Agreement. Each party may change its
designated administrator(s) by giving not less than ten (10) days prior
written notice of its new contract administrator to the other party.
POWERWARE Administrator: Active Power Administrator:
------------------------ ---------------------------
Barry J Needle Bruce Akins
Powerware Corporation Active Power Incorporated
8609 Six Forks Road 11525 Stonehollow Drive
Raleigh, N.C. 27615 Suite 119
Austin, TX 78758
Ph: 919-870-3045 804-530-8457
Fax: 919-870-3450 804-530-3314
Email: Barry.Needle@psd.invensys.com Email: Bakins@activepower.com
9.7 Default. If either party shall default in the performance of its
obligations under this Agreement, including but not limited to
non-delivery and nonpayment, and such default continues for a period of
thirty (30) calendar days after the defaulting party receives written
notice of the default from the non-defaulting party, then the
non-defaulting party may terminate this Agreement and/or exercise any
right or remedy provided by law or equity.
9.8 Assignment and Subcontracting Prohibited. Except as provided herein,
either party shall not assign this Agreement or its obligations
subcontracted without the prior written consent of the other party,
except to an acquirer of substantially all its business or assets. Any
assignment or subcontracting in violation of this provision shall be
deemed null and void.
9.9 Governing Law. This Agreement shall be governed by, subject to, and
construed in all respects in accordance with the laws of the State of
Texas, United States of America.
9.10 Force Majeure. Neither party shall be deemed to be in default of any
provision of this Agreement, or for failures in performance, resulting
from acts or events beyond the reasonable control of such party. Such
acts shall include but not be limited to acts of God, civil or military
authority, civil disturbance, war, strikes, fires, other catastrophes,
or other events beyond the party's reasonable control.
9.11 Compliance with Laws. The parties shall comply with, and agree that
this Agreement is subject to, all applicable federal, state, and local
laws, rules and regulations, and all amendments thereto, now enacted or
hereafter promulgated in force during the term of this Agreement.
9.12 Severability. If any of the provisions hereof shall be deemed invalid
or unenforceable by any tribunal with competent jurisdiction, the
remaining provisions of the Agreement, and the application of such
invalid or unenforceable provisions to persons and circumstances other
than to those to which they were held invalid, shall not be affected
thereby.
9.13 Notices. All notices and Orders permitted or required to be given under
this Agreement shall be in writing and shall be deemed duly given upon
personal delivery or transmitted by facsimile machine to the address or
facsimile numbers set-forth below. All notices shall be delivered or
sent to the other party at the address or facsimile numbers shown below
or to any other facsimile number as the party may designate by ten (10)
days prior written notice given in accordance with this provision.
If to POWERWARE: If to Active Power:
---------------- -------------------
Barry J Needle VP Sales
Powerware Corporation Active Power Incorporated
8609 Six Forks Road 11525 Stonehollow Drive
Raleigh, N.C. 27615 Suite 110
Austin, TX 78758
Ph: 919-870-3045 512 836-6464
Fax: 919-870-3450 512 836-4511
Email: Barry.Needle@psd.invensys.com Email: Bott@activepower.com
9.14 Dispute Resolution. All disputes arising in connection with this
Agreement shall be settled if possible through friendly consultation
between the parties. If no settlement can be reached within thirty (30)
days after a dispute arises, either party shall have the right and
option to submit the dispute to binding arbitration. The arbitration
shall take place in the Austin, Texas metropolitan area, and be
conducted pursuant to the rules of the Arbitration Rules of the
American Arbitration Association. The cost of the arbitration shall be
borne equally by the parties. The decision of the arbitrators shall be
final and binding on both parties and shall be enforceable in the
courts of Texas.
9.15 Rights Upon Orderly Termination. Upon termination of this Agreement,
POWERWARE and all of its agents shall discontinue demonstrating,
marketing and distributing the Active Power Products; provided,
however, that any End-User who previously acquired the right to use any
Active Power Products under the terms of a Support Agreement granted
hereunder, shall have
the continuing right to use such Active Power Products and to receive
maintenance support services from Active Power as set-forth in the
Support Agreement. Neither termination of this Agreement nor waiver of
any right to terminate shall impair or limit any additional rights or
remedies that either POWERWARE or Active Power may have in law or in
equity.
9.16 Termination of Orders. Any Order may be terminated by POWERWARE at (and
only at) any time more than 60 days prior to the scheduled delivery
date on the Order by written notice to Active Power. No orders will be
canceled by POWERWARE inside the 60 day scheduled delivery window
without accompanying evidence of cancellation by POWERWARE's end user
customer. Active Power will be entitled to the pro-rata share (based on
total order value) of cancellation charges awarded to POWERWARE
including all handling and restocking fees.
9.17 Entire Agreement. This Agreement and the exhibits hereto constitute the
entire agreement between the parties concerning the subject matter
hereof, superseding all prior negotiations and discussions.
IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed in duplicate originals by its duly authorized representative on the
respective dates entered below.
Active Power, Inc. Powerware
("Active Power") ("POWERWARE")
By: /s/ By: /s/
---------------------------------- ----------------------------
(Signature) (Signature)
Title: Title:
Date: October 28, 2001 Date: October 28, 2001
---------------------------------- --------------------------
Contract No. AP-01-01 EXHIBIT A
DESCRIPTION OF ACTIVE POWER PRODUCTS
Standard CleanSource2(TM) Products
CleanSource Model No. Product Description List Price
CS2-250 250 kW Flywheel Energy Storage System - Single Flywheel $[****]
CS2-500 500 kW Flywheel Energy Storage System - Dual Flywheel $[****]
DSC-250 OPTION, DISCONNECT SWITCH, CS2-250 $[****]
DSC-500 OPTION, DISCONNECT SWITCH, CS2-500 $[****]
CSView-2S CleanSource Monitoring and Display Software - Single User $[****]
CSView-2M CleanSource Monitoring and Display Software - 5 User $[****]
SNMP-2 OPTION, SNMP, CS2 $[****]
MBUS-2 OPTION, MODBUS, CS2 TCP version $[****]
MDM-2-115 OPTION, MODEM, EXT I/F,115V,FACTORY,CS2 $[****]
MDM-2-230 OPTION, MODEM, EXT I/F, 230V,FACTORY,CS2 $[****]
MDMF-2-115 OPTION, MODEM, EXT I/F, 115V, FIELD, CS2 $[****]
MDMF-2-230 OPTION, MODEM, EXT I/F, 230V, FIELD, CS2 $[****]
NET-2 OPTION, ETHERNET CS2 $[****]
ESD-2-R OPTION, REMOTE ESD, CS2 $[****]
SEIS-2 OPTION, SEISMIC TIE-DOWN, CS2 not including template $[****]
SEIS-2-T OPTION, SEISMIC TIE-DOWN TEMPLATE, CS2 $[****]
ACV-2-120 OPTION, PROTECTED AC SOURCE, 120 VAC $[****]
15
**Confidential treatment has been requested for the portions of this agreement
marked by asterisks. Omitted material for which confidential treatment has been
requested has been filed separately with the Securities and Exchange
Commission.**
Contract No. AP-01-0 Discount Schedule EXHIBIT B
Supplier Products, Pricing, and Volume Discounts
CleanSource2 Pricing
--------------------------------------------------------------------
Active Power
--------------------------------------------------------------------
[****]
POWERWARE's mutually agreed upon annual forecasted volume for the 12-month
period beginning on the Effective Date is [****].
16
**Confidential treatment has been requested for the portions of this agreement
marked by asterisks. Omitted material for which confidential treatment has been
requested has been filed separately with the Securities and Exchange
Commission.**
Contract No. AP-01-01 EXHIBIT C
ACTIVE POWER PRODUCT WARRANTIES
LIMITED WARRANTY. Active Power warrants that, under normal use and service
pursuant to the applicable Product Manual, Equipment is free from defects in
parts and workmanship for a period of one (1) year from the date of shipment. If
in Active Power's opinion, Equipment fails to perform in accordance with
specifications set forth in the applicable Product Manual and such failure is
properly reported in writing to Active Power within the term of this warranty,
the defective part(s) will be repaired or replaced at the option of Active Power
with no charge for replacement parts. The cost for replacement equipment,
replacement equipment installation, and on site Active Power representative will
be provided at no charge by Active Power. Equipment repaired or replaced
pursuant to this Limited Warranty will be warranted for the unexpired portion of
the original warranty subject to all terms thereof. This Warranty applies to
Product installed world-wide. The coverage times in the United States are 8:00am
CST to 5:00pm CST Monday through Friday, excluding company paid holidays (a list
of company holidays will be provided upon request). The coverage times outside
of the United States are 8:00am to 5:00pm local time, Monday through Friday,
excluding company paid holidays (a list of company holidays will be provided
upon request).
THE WARRANTIES SET FORTH HEREIN ARE CONTINGENT UPON THE PROPER USE OF THE
EQUIPMENT IN ACCORDANCE WITH THE APPLICABLE PRODUCT MANUAL AND SPECIFICATIONS
FURNISHED IN WRITING BY ACTIVE POWER, AND DO NOT APPLY TO EQUIPMENT WHICH HAS
BEEN subject to neglect, accident, abuse, misuse, misapplication, incorrect
connection or WHICH has been REPAIRED OR MODIFIED BY PERSONS OTHER THAN THE
AUTHORIZED REPRESENTATIVES OF ACTIVE POWER.
Active Power's obligations under this Limited Warranty are conditioned upon
Purchaser's payment of all amounts due, and its obligations hereunder shall be
suspended for any period of time in which such amounts are past due. Any such
suspension of Active Power's warranty obligations shall not operate to extend
the term of the original warranty period specified herein.
Purchaser shall be exclusively responsible for, and ACTIVE POWER MAKES NO
WARRANTY OR REPRESENTATION WITH RESPECT TO, (a) determining whether the
Equipment will achieve the results desired by Purchaser or any third person, (b)
selecting, procuring, installing, operating and maintaining complementary
equipment to insure correct operation of the Equipment, (c) training Purchaser's
personnel in operation of the Equipment, (d) ensuring the accuracy of any
configuration design or implementation that utilizes the Equipment, and (e)
establishing adequate safety procedures for operation of the Equipment. In the
event of any alteration or attachment to the Equipment not authorized by Active
Power, Active Power shall have no liability or responsibility for: (a) any
hardware, software, equipment, or services provided by any persons other than
Active Power; (b) the proper functioning of the Equipment; or (c) damage caused
by any malfunction of the Equipment.
ACTIVE POWER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY
PURPOSE. ACTIVE POWER SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT,
OR CONSEQUENTIAL DAMAGES OR FOR THE LOSS OF PROFIT, REVENUE, OR DATA OR COSTS OF
PROCUREMENT OF SUBSTITUTE PRODUCTS OR SERVICES ARISING OUT OF THE SUBJECT MATTER
OF THIS AGREEMENT.
Contract No. AP-01-01 EXHIBIT D
[****]
18
**Confidential treatment has been requested for the portions of this agreement
marked by asterisks. Omitted material for which confidential treatment has been
requested has been filed separately with the Securities and Exchange
Commission.**
Contract No. AP-01-01 EXHIBIT E
POWERWARE Approved Agents
- -------------------------------------------------------------------------------------------------------------------------
Company Name Code Rep Code Address Contact Name Phone Fax
- -------------------------------------------------------------------------------------------------------------------------
Alcan Electrical & IPM M59 6670 Arctic Spur Chris Mues (970)563-3737
Engineering Co. Road
Anchorage, AK 99518
- -------------------------------------------------------------------------------------------------------------------------
Applied Power Systems PW/S 6AR 2300 Mill Park Drive Suite Larry Boyd (314) (314)
114 427-5100 427-1080
Maryland Heights, MO 63043
- -------------------------------------------------------------------------------------------------------------------------
Arthur N. Ulrich Company IPM L21 PO Box 11 Arthur Ulrich (740) (740)
Etna, OH 43018 927-8244 927-6017
10340 Palmer Road, SW
Pataskala, OH 43062 (courier)
- -------------------------------------------------------------------------------------------------------------------------
Bates & Associates, Inc. PW 80C 16 Jeep Pl. PO Box 934 Kenneth Bates (508) (508)
Mashpee, MA 02649 477-3311 477-3561
- -------------------------------------------------------------------------------------------------------------------------
Bates & Associates, Inc. PW 80C 927 Temple Street Steve May (781) (781)
Whitman, MA 02382 857-3600 857-2287
- -------------------------------------------------------------------------------------------------------------------------
Blackmon Agency PW/IPM M47 4 Office Park Circle, Ste. Fred Blackmon (205) (205)
304 Birmingham, AL 35223 879-0100 879-0102
Box 531312
Birmingham, AL 35253
- -------------------------------------------------------------------------------------------------------------------------
Capitol Power PW/S 7BW 46859 Harry Byrd Hwy. Bob (703) (703)
Suite 301 Wilkens 433-2000 433-2128
Sterling, VA 20164 Kevin McGaughey
- -------------------------------------------------------------------------------------------------------------------------
Circa, Inc. PW/S 9CI 709 Glenlake Dr. John Taylor (405) (405)
Edmund, OK 73013 751-8806 749-9322
- -------------------------------------------------------------------------------------------------------------------------
Computer Enviroments PW/S 4HI 92-123 Lei Papa Way Mark Sumstine (808) (808)
Kapolei, HI 96707 722-1815 672-6582
- -------------------------------------------------------------------------------------------------------------------------
Computer Enviromental Systems PW/S 70F 1700 Water Pl.,NW, Suite 311 Don Hamilton (770) (770)
Atlanta, GA 30339 956-0091 953-6449
- -------------------------------------------------------------------------------------------------------------------------
Computer Power Technology IPM/PW/S 4CP 3949 S 200 E, Suite A-1 Max I. Carrigan (801) (801)
Salt Lake 263-8333 263-8380
City, UT 84107-1589
- -------------------------------------------------------------------------------------------------------------------------
Connecticut Power Solutions PW 8AA 10 Lamplighter Ln. Joe Pagano (860) (860)
New Milford, CT 06776-2458 354-6505 355-4065
- -------------------------------------------------------------------------------------------------------------------------
Core Power PW/S 8CP 1717 Swede Road, Ste. 202 Jim Davis (610) (610)
Blue Bell, PA 19422 (ext.101) 279-0700 279-7404
Scott Stilley
(ext.109)
- -------------------------------------------------------------------------------------------------------------------------
Critical Power Resource, LLC PW 6AG 6070 Six Forks Road, Suite F Ken Agee (919) (919)
Raleigh, NC 844-6447 844-9845
27609
- -------------------------------------------------------------------------------------------------------------------------
Cunningham Company, Inc. IPM M57 310 Fernando Street, Ste. Jack Schaefer (949) (949)
105 Newport Beach, 723-7020 723-7022
CA 92661
- -------------------------------------------------------------------------------------------------------------------------
Datatec, Inc. PW/S 81G 1100 Goffle Rd. Sal Picheria (973) (973)
Hawthorne, NJ 07506 423-0005 423-5702
- -------------------------------------------------------------------------------------------------------------------------
Datatec, Inc. PW/S 81H 1100 Goffle Rd. Sal Picheria (973) (973)
New York Hawthorne, NJ 07506 423-0005 423-5702
Burroughs
- -------------------------------------------------------------------------------------------------------------------------
David G.Leggett Co. PW 6OL 909 King Ave. Ste. 200 David G. Leggett (614) (614)
Columbus, OH 43212 299-0202 299-0303
- -------------------------------------------------------------------------------------------------------------------------
Devices, Inc. IPM M55 10300 N. Central Ron Barrier (972) (972)
Expressway 250-2093 250-6870
Suite 330
Dallas, TX 75231
- -------------------------------------------------------------------------------------------------------------------------
E Technologies, Inc. PW/S 6ET 806 Sun Ridge Ln. John Englhardt (440) (440)
Chargin Falls, OH 44022 338-6184 338-6186
- -------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------
Company Name Code Rep Code Address Contact Name Phone Fax
- -------------------------------------------------------------------------------------------------------------------------
E & T Equipment, Inc. IPM M54 15200 E. Girard Dennis A. (303) (303)
Avenue Edwardson 617-6068 617-6117
Suite 2100
Aurora, CO 80014
- -------------------------------------------------------------------------------------------------------------------------
Electrorep-Energy Products IPM 2121 Schuetz Road Tim Supranowich (314) (314)
PO Box 460200 991-2600 991-3852
St. Louis, MO 63146
- -------------------------------------------------------------------------------------------------------------------------
Electrorep-Energy Products IPM 5897 Raytown Road, Ste. 100 Cliff Niederbremer (800) ( 816)
Raytown, MO 64133 678-2606 358-9292
- -------------------------------------------------------------------------------------------------------------------------
Electrorep-Energy Products IPM 208 South Grand East Ray Sitki (217) (217)
Springfield, IL 62704 789-4504 789-0302
- -------------------------------------------------------------------------------------------------------------------------
EMR Associates PW/S 7EM 9080 Barbee Lane #100 Alex Campen (865) (865)
Knoxville, TN 37923 769-1998 769-2227
- -------------------------------------------------------------------------------------------------------------------------
EMR Associates PW/S 7EM PO Box 32741 Alex Campen (865) (865)
Knoxville, TN 37930-0741 769-1998 769-2227
- -------------------------------------------------------------------------------------------------------------------------
EMR Associates PW/S 7EM 603 W. Iris Ave. Mike Hughes (615) (615)
Nashville, TN 37204 292-1977 292-1560
- -------------------------------------------------------------------------------------------------------------------------
EMR Associates PW/S 7EM PO Box 40741 Mike Hughes (615) (615)
Nashville, Tn 37204-0747 292-1977 292-1560
- -------------------------------------------------------------------------------------------------------------------------
Grant Goodrich, Inc. IPM M24 1343 Wentworth Ave. Grant Goodrich (904) (904)
Jacksonville, FL 33259 287-0254 287-3614
(courier)
PO Box 24846
Jacksonville, FL 32241
- -------------------------------------------------------------------------------------------------------------------------
H.M. Cragg Co. PW/S 6OR 9201 Penn Ave., Suite 25 Ben Platter, (952) (952)
Bloomington, MN 55431-2328 Sr. 884-7775 884-7739
Dale Jones
- -------------------------------------------------------------------------------------------------------------------------
IndCom Systems IPM M27 616 Papworth Ave. Walter Case, Sr. (504) (504)
Metarie, LA 70005 (coourier) 833-3833 833-3389
PO Box 24358
New Orleans, LA 70184
- -------------------------------------------------------------------------------------------------------------------------
Innovative Electrical IPM/PW/S M28 PO Box Sandra Serbousek (319) (319)
Technology 10 Larry Serbousek 662-9876 662-9877
1855 P Avenue
Conroy, IA 52220
- -------------------------------------------------------------------------------------------------------------------------
Jones Engineering Sales PW/S 7GE 1114 State St. Gene Jones (803) (803)
Cayce, SC 29033 796-2920 791-8154
- -------------------------------------------------------------------------------------------------------------------------
Kramer Datapower, Inc. PW/S 61K 5410 Newport Dr., Unit 38 Bill Kramer (847) (847)
Rolling Meadows, IL 60008 255-3140 255-3893
- -------------------------------------------------------------------------------------------------------------------------
Kramer Datapower, Inc. WI PW/S 61K 2223 N. 66th St. Tom McCaughn (414) (414)
Wauwatosa, WI 53213 443-6476 443-6478
- -------------------------------------------------------------------------------------------------------------------------
LDP Associates, Inc. IPM 10221 North 32nd Street, Lyle Porter (602) (602)
Ste. N Phoenix, AZ 85028 494-7220 494-7170
- -------------------------------------------------------------------------------------------------------------------------
Lynn Associates, Inc. IPM/PW/S 81F 125 Wolf Road Bob (518) (518)
Albany, NY 12205 Lynn 459-1239 459-4810
Wendy Snyder
- -------------------------------------------------------------------------------------------------------------------------
Lynn Associates, Inc. IPM/PW/S 82F 6622 Main St., Suite 4 Richard Lynn (716) (716)
Buffalo, NY 14221 631-0054 631-0101
- -------------------------------------------------------------------------------------------------------------------------
Lynn Associates, Inc. IPM/PW/S 8FF 2593 Wexford-Bayne Road David Johnson (724) (724)
Ste. 303 933-8970 933-8980
Sewickley, PA 15143
- -------------------------------------------------------------------------------------------------------------------------
Metro Power Associates, Inc. IPM/S 8MP 3327 Jackson Avenue Ed Bombeck (516) (516)
Wantagh, NY 11793 781-0623 781-0624
- -------------------------------------------------------------------------------------------------------------------------
Metro Power Associates, Inc. IPM/S 8MP 39 Valley Pond Road Tony Ianello (914) (914)
Katonah, NY 10536 248-6808 248-7438
- -------------------------------------------------------------------------------------------------------------------------
Nolan Power Group PW/S 7NB 6141 River Road Bobby Nolan (504) (504)
Harahan, LA 733-4300 733-2650
70123
Payments to: PO Box
54986 New Orleans,
LA 70154-4986
- -------------------------------------------------------------------------------------------------------------------------
Northern Power Technologies PW/S 6OJ 712 Columbus Street Gary Johnson (605) (605)
Rapid City, SD 57701 342-2520 343-9688
- -------------------------------------------------------------------------------------------------------------------------
Performance Power Concepts IPM/PW/S 4PG 14865 SW 74th Street, Ste. Gary Lukas (503) (503)
260 672-9400 672-9300
Tigard, OR 97223
- -------------------------------------------------------------------------------------------------------------------------
20
- -------------------------------------------------------------------------------------------------------------------------
Company Name Code Rep Code Address Contact Name Phone Fax
- -------------------------------------------------------------------------------------------------------------------------
Performance Power Concepts IPM/PW/S 4PH 11000 NE 10th Street, Suite C Gary Lukas (425) (425)
Bellevue, WA 98004 John Hessen 638-0340 638-0341
- -------------------------------------------------------------------------------------------------------------------------
Power Source PW/S 4SY 1150 South Bascom Ave., Ste. Craig Waterman (408) (408)
29 279-7500 279-7501
San Jose, CA 95128
- -------------------------------------------------------------------------------------------------------------------------
Precise Power PW/S 7PP 1714 E. Franklin Street Steve Olson (804) (804)
Richmond, VA 23223 225-5573 225-5574
- -------------------------------------------------------------------------------------------------------------------------
Precise Power PW/S 7PP 1309 Simms Ray Cruz (757) (757)
Arch 482-4550 482-4571
Chesapeake, VA 23322
- -------------------------------------------------------------------------------------------------------------------------
Precision Environment, Inc. PW/S 7OU 1644 First Avenue, North Robin Singh (727) (727)
St. Petersburg, FL 33713 894-8200 822-7164
- -------------------------------------------------------------------------------------------------------------------------
Precision Environment, Inc. PW/S 7OU 692 Vistawilla Drive Patrick Henry (407) (407)
Winter Springs, FL 32708 971-2223 971-2225
- -------------------------------------------------------------------------------------------------------------------------
Precision Environment, PW/S 7UU 3015-7 Hartley Rd. Tom Naylor (904) (904)
Inc.-North Jacksonville, FL 32257 886-4292 886-0144
- -------------------------------------------------------------------------------------------------------------------------
Precision Environment, PW/S 7UM Commercial Place 1-Ste. 160 Tony Rizzo (954) (954)
Inc.-South 3230 W. Commercial Blvd. Chad 497-3115 497-3119
Oakland Park, FL 33309 Tyree
Joyce Kaeser
- -------------------------------------------------------------------------------------------------------------------------
Process Sales IPM M52 743 Annoreno Bill Esposito (630) (630)
Drive 543-7400 543-7411
Addison, IL 60101
- -------------------------------------------------------------------------------------------------------------------------
Pure Power IPM/PW/S 3PP PO Box 255 Garry Luerssen (631) (631)
407 E. Main St., Suite 474-7886 474-7957
2 Port Jefferson,
NY 11777
- -------------------------------------------------------------------------------------------------------------------------
Quality Power Systems, Inc. IPM M38 45000F Underwood Ln. Dan Toland (703) (703)
Sterling, VA 20166 709-2224 709-0524
- -------------------------------------------------------------------------------------------------------------------------
Ramtek, LLC PW/S 4RT 18011 Sky Park Circle Kurt Richard (949) (949)
SuiteA Dean Miles 798-1480 798-1485
Irvine, CA 92614
- -------------------------------------------------------------------------------------------------------------------------
RC Merchant and Co., Inc. PW/S 6RC 23735 Research Dr. John Merchant (248) (248)
Farmington Hills, MI 48335 476-4600 476-3162
- -------------------------------------------------------------------------------------------------------------------------
Sobek Enterprises, Inc. PW/S 6SE 1432 Sadlier Circle East Bob Sobek (317)351-8145 (317)
Drive 351-8149
Indianapolis, IN 46239
- -------------------------------------------------------------------------------------------------------------------------
Sun Sales Co. PW/S 94F 3949 Corrales Rd., Suite Paul Hardy (505) (505)
200 Corrales, NM 922-0000 899-7674
87048
- -------------------------------------------------------------------------------------------------------------------------
SupporTek PW/S 4AB 425 Santa Fe Drive Tom Ebner (303) (303)892-6100
Denver, CO 80204 892-6500
- -------------------------------------------------------------------------------------------------------------------------
SWM Co. PW/S 9SW 11926 Radium St. Steve McKim (210) (210)
San Antonio, TX 78216 308-7390 308-7391
- -------------------------------------------------------------------------------------------------------------------------
T.S. Williams & Associates IPM M50 102 Amos Drive Sky Williams (678) (678)
Cumming, GA 30040 947-1400 947-1444
- -------------------------------------------------------------------------------------------------------------------------
Tubbesing Sales Corporation PW/S 6TD 1771 International Pkwy., Jim Tubbesing (972) (972)
Suite 115 234-3855 234-8865
Richardson, TX 75081
- -------------------------------------------------------------------------------------------------------------------------
Tubbesing Sales Corporation PW/S 6TH 15621 Blue Ash, Suite 100 Mike (281) (281)
Houston, TX 77090 Watts 876-0341 876-2912
- -------------------------------------------------------------------------------------------------------------------------
Weisler & Associates, Inc. IPM M60 10235 West Little Thomas Barnett (713) (713)
York 849-3799 849-3755
Houston, TX 77040
- -------------------------------------------------------------------------------------------------------------------------
WW Enterprises PW/S 9WW Wagon Wheel Trade Center Jack Dobbins (918) (918)
10912 E. 2nd 438-6100 438-5434
Tulsa, OK 74128
- -------------------------------------------------------------------------------------------------------------------------
21
Contract No. AP-01-01 EXHIBIT F
Active Power Training
ACTIVE POWER shall offer POWERWARE designated representative(s) training on
installation, operation, maintenance and repair of the Active Power Products.
Factory Training
ACTIVE POWER offers to provide 1 free training class per year for POWERWARE's
training staff and technical support personnel, such training class shall be for
up to seven people.
Active Power also agrees to provide, upon request by POWERWARE, training classes
at ACTIVE POWER's published training rates. These rates are currently set at
$4,000 per class of up to seven people. POWERWARE shall be responsible for its
own travel and living arrangements during these sessions.
As required, ACTIVE POWER agrees to work with POWERWARE to arrange and support
specific training requirements.
Contract No. AP-01-01 EXHIBIT G
Warranty and Post-Warranty Service
Buyer's service personnel must successfully complete Supplier's certified
training course (administered by either Supplier or a certified CleanSource
Buyer trainer) in order to provide warranty support for the Product.
Supplier will reimburse Buyer at the following rates for warranty repair
performed on Supplier's Product. These rates assume Supplier's normal warranty
support, which is 8am CDT to 5pm CDT Monday through Friday, excluding holidays.
Travel Time and On-Site Labor- $90/hr Monday through Friday 8:00 am to 5:00 pm
local time excluding holidays; $110/hr all other times.
Supplier will also reimburse Buyer for documented, customary and reasonable
expense incurred by Buyer on behalf of Supplier. Any disputed charges will be
resolved by the VP of Sales or Director of Field Services for Active Power and
the VP, Global Services or Director of Field Services for POWERWARE (this
Agreement assumes that typical travel labor would average less than 4 hours and
not include an overnight stay).
Warranty Parts -Supplier will provide warranty replacement Spare Parts at no
charge to Buyer during the warranty period. These Spare Parts will replace the
spare parts inventory purchased by Buyer per the attached Spare Parts list.
Buyer will purchase the initial stock of spare parts inventory at Supplier's
published list price less 35%. These Spare Parts should cover 95% of expected
repairs to all CleanSource models. Subsequent spare parts purchases will be
available to Buyer at Supplier's published list price less the discount granted
buyer on their hardware purchases. Upon receiving a Spare Part covered under
warranty and accompanied by the supporting documentation, (See attachment 1),
Supplier will provide a repaired, remanufactured or a Supplier approved Spare
Part to replace the Buyer's inventoried Spare Part. Buyer will be responsible
for the shipping of the affected Spare Part to the approved Supplier Parts
Center. Supplier will be responsible for the freight cost of the replacement
Spare Part to the Buyer logistic support center designated by Buyer. In warranty
cases requiring express shipping, Supplier will be responsible for the express
freight charges.
Warranty Service Escalation Plan- For any system down more than 48 hours and
being covered by the Supplier's Service Escalation Plan, Supplier technical
support coverage will be expanded to 24 hours per day 7 days per week for the
specific event. (See Attachment 2)
Supporting Warranty Documentation - summary of Field Activity Reports (attached
hereto as Exhibit G - Attachment 5) will be provided by Buyer's affiliate,
Buyer's global services unit to Supplier for its actual cost for providing
Supplier warranty services to Buyer Customers. Buyer's global services unit will
invoice Supplier for such costs. This must include documentation of specific
failures and summary information on the causes of such failures.
At any time during the warranty period with respect to each Product, Supplier
reserves the right to meet and confer, upon ten (10) days prior written notice
regarding the Buyer provided warranty service on each such Product if: in any
three (3) month period an uncorrected (i) repetitive problem occurs, (ii)
Buyer repair has been repeatedly done incorrectly and/or (iii) the expenses
incurred by Buyer to resolve or correct problems has been materially higher than
the average expense for the applicable problem. If, after meeting and
conferring, the parties are unable to reach a mutually acceptable resolution of
the foregoing issues, then, upon ten (10) days prior written notice, Supplier
may assume future warranty obligations.
Contract No. AP-01-01 EXHIBIT G - Attachment 1
Spare Parts Seller's List Price
Effective 8/24/01
Buyer's Logistics & Support Center Inventory
CleanSource2 CS250KW or CS500KW with DC Disconnect Option
- -------------------------------------------------------------------------------------------------------
Item P/N DESCRIPTION QTY UM Unit Price Extended List Price
--- ----------- --- -- ---------- -------------------
- -------------------------------------------------------------------------------------------------------
*1 30538-1 PWA, APC Controller 1 Each $2,970.00 $2,970.00
- -------------------------------------------------------------------------------------------------------
*2 85793-1 Field Coil Driver 1 Each $1,549.68 $1,549.68
- -------------------------------------------------------------------------------------------------------
3 85595-02 Vacuum Pump 1 Each $1,857.02 $1,857.02
- -------------------------------------------------------------------------------------------------------
4 85503 Vacuum Pump Oil 1 Each $37.44 $37.44
- -------------------------------------------------------------------------------------------------------
5 86088-1 Left SkiiP 3 Each $1,975.60 $5,926.80
- -------------------------------------------------------------------------------------------------------
6 85648 Fan Module 1 Each $342.34 $342.34
- -------------------------------------------------------------------------------------------------------
7 86064-2 Armature Fuse 1 Each $843.81 $843.81
- -------------------------------------------------------------------------------------------------------
8 85799 Upper Bearing Cartridge 1 Each $1,122.00 $1,122.00
- -------------------------------------------------------------------------------------------------------
9 85885-1 Lower Bearing Cartridge 1 Each $2,395.80 $2,395.80
- -------------------------------------------------------------------------------------------------------
*10 30114 PWA, SIO 1 Each $858.00 $858.00
- -------------------------------------------------------------------------------------------------------
*11 30038-1 PWA. CTI 1 Each $462.00 $462.00
- -------------------------------------------------------------------------------------------------------
*12 30158 PWA, Fan Monitor 1 Each $233.44 $233.44
- -------------------------------------------------------------------------------------------------------
*13 30160 PWA, PWD 1 Each $347.71 $347.71
- -------------------------------------------------------------------------------------------------------
*14 30166-1 PWA, FWI 1 Each $509.30 $509.30
- -------------------------------------------------------------------------------------------------------
*15 30188 PWA, SKI 1 Each $105.31 $105.31
- -------------------------------------------------------------------------------------------------------
*16 85593 Assy, Com Accel 1 Each $586.26 $586.26
- -------------------------------------------------------------------------------------------------------
*17 85792-2 Assy, Users Interface 1 Each $1,286.43 $1,286.43
- -------------------------------------------------------------------------------------------------------
**18 86087-1 Assy, SKiiP, Right 1 Each $1,975.60 $1,975.60
- -------------------------------------------------------------------------------------------------------
19 11200 Hose, Vacuum 11 FT $2.57 $28.27
- -------------------------------------------------------------------------------------------------------
20 25808-15 Fuse, 15 AMP 5 Each $5.50 $27.50
- -------------------------------------------------------------------------------------------------------
21 25808-8 Fuse, 8 AMP 5 Each $5.50 $27.50
- -------------------------------------------------------------------------------------------------------
22 25837-03 Fuse, 3 AMP 5 Each $8.32 $41.60
- -------------------------------------------------------------------------------------------------------
23 25834-30 Fuse, 30 AMP 5 Each $10.38 $51.90
- -------------------------------------------------------------------------------------------------------
24 25834-10 Fuse, 10 Amp 5 Each $9.72 $48.60
- -------------------------------------------------------------------------------------------------------
25 25809-10 Fuse, 10 Amp 5 Each $5.60 $28.00
- -------------------------------------------------------------------------------------------------------
26 25809-12 Fuse, 12 Amp 5 Each $5.60 $28.00
- -------------------------------------------------------------------------------------------------------
27 25809-01 Fuse, 1 Amp 5 Each $5.60 $28.00
- -------------------------------------------------------------------------------------------------------
28 25809-20 Fuse, 20 Amp 5 Each $5.60 $28.00
- -------------------------------------------------------------------------------------------------------
Total $23,746.31
- -------------------------------------------------------------------------------------------------------
Pricing is subject to change. Always consult with the factory for the most
current pricing. If purchased as a kit, take a 10% discount from the "Total
Price."
*This part may be subject to an up-revision charge from time to time.
**Required only on CS500KW system.
Contract No. AP-01-01 EXHIBIT G - Attachment 2
Typical Service Escalation Chart
--------------------------------
o The escalation chart below is to be used as the maximum allowable time
from identification of warranty issue before the next responsible party
is notified and has an obligation to provide service response. These
times are not to be considered the minimum time allowed prior to
notifying a responsible party. Buyer may contact Supplier anytime for
technical assistance after showing a responsible effort on Buyer's
party to resolve the related issue.
Chart: 1
Typical Service Escalation
Responsible Parties
- ----------------------------------------------------------------------------------
Elapsed Buyer Buyer Technical Active Active Active *Active
Time Field Parts Support Power Power Power Power
Service & Help Parts Service On-site
Logistics Desk & Austin, Service
Logistics TX
- ----------------------------------------------------------------------------------
T + 24Hrs. X
- ----------------------------------------------------------------------------------
T + 48Hrs. X X X X
- ----------------------------------------------------------------------------------
T + 72 Hrs. X X X X X X
- ----------------------------------------------------------------------------------
T + 96 Hrs. X X X X X X X
- ----------------------------------------------------------------------------------
Contract No. AP-01-01 EXHIBIT G - Attachment 3
Supplier's Warranty And Post Warranty Return Material Authorization Procedures
------------------------------------------------------------------------------
Before returning a Product for repair or replacement, Buyer must first contact
Supplier and obtain a Return Material Authorization (RMA) number. The following
information must be supplied in order to obtain an RMA number:
1. Name of the Buyer's Customer
2. Serial number of the original Product
3. Shipment or delivery date
4. Description of the problem
5. Offsetting Order for replacement Product (if the Product is
approved for replacement)
Upon receipt of the RMA number, which will be supplied by Supplier before the
end of the next business day, Buyer or Buyer's Customer will return the Product
to Supplier or an authorized service center at Buyer's or Buyer's Customer's
expense. The RMA and Product serial number must be referenced on all
correspondence regarding the returned Product, as well as on the shipping
container or package and all shipping documents. Products returned without RMA
numbers or actual RMA authorization will not be accepted. All returned Products
must be properly and commercially reasonably packed. Supplier is not responsible
for damage to Products incurred in shipment or due to inadequate or improper
packaging. Supplier will promptly repair or replace any defective Product and
return the replacement or repaired Product to Buyer or Buyer's Customer (with
notice to Buyer) at Supplier's expense.
Contract No. AP-01-01 EXHIBIT G - Attachment 4
Return Goods Documentation*
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Active Power RMA# :
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Date:
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CleanSource Model Number:
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CleanSource Serial Number:
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Part Number:
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OLD Part Serial Number:
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New Part Serial Number:
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Technician:
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Location:
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Problem Description:
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Frequency of Problem: Hard Failure Hot
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Charging Cold
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Discharging Other:
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Explain Other:
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Signature:
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*The attached procedure applies to all returned goods
Contract No. AP-01-01 EXHIBIT G - Attachment 5
POWERWARE Field Activity Report
Request ID:
Place ID:
Place Name:
Place Address:
Phone:
Contact: Technician:
P.O.: Arrival Date/Time:
Completion Date/Time:
Problem Description:
Service Notes:
Code: Text:
Products Serviced:
Model ID: Revision:
Serial ID: Contract ID / Version:
Services:
Model ID: Service Description Quantity
Non-Product Part and Non-Part Usage
Part Need Details
Contract No. AP-01-01 EXHIBIT G - Attachment 6
Post-Warranty Support
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Buyer's service personnel must successfully complete Supplier's certified
training course (administered by either Supplier or a certified CleanSource
Buyer trainer) in order to provide warranty support for the Product.
Buyer will inventory and maintain appropriate Spare Parts to provide its
standard level of service. The attached Spare Parts list reflects 95% coverage
of all expected repairs.
CS2 - 250 & CS2 - 500 Spares Parts List
Upon Buyer obtaining a RMA number from Supplier for a returning part, Supplier
will ship the replacement part to Buyer's Logistics facility designated by
Buyer. In the event express shipping is required, Buyer will be responsible for
the freight charges.
Field Service Support - Supplier will make available after market Field Service
Support to Buyer
Technical Communications - Supplier Field Service will provide Buyer any
notifications of technical changes and enhancements for the CleanSource product
line through a Field Engineering Advisory (FEA). This will include changes to
the fit, form and function of the CleanSource product line. Buyer will assign a
delegate to receive and distribute the information to its staff.
Service Escalation Plan - Buyer will, upon receiving a service call, follow the
typical escalation plan as shown in Chart C-1, Typical Escalation Chart. In
response Supplier will offer assistance via telephone support and, if required,
on-site service at the expense of Buyer in cases of non-warranty coverage.