Document:

ANNUAL PURCHASE AGREEMENT
                               FOR THE PURCHASE OF

                             PERFORMANCE CONTROLLERS

                             ("Purchase Agreement")

1.      DATE AND TERM

        This Purchase Agreement is made December 1, 1998, and shall apply to
        orders made according to this Purchase Agreement, from December 1, 1998
        and shall continue valid until December 1, 2000.

2.      PARTIES

<TABLE>
<CAPTION>
<S>     <C>
        (a)    Montgomery KONE Inc.,               (the Purchaser)

               One Montgomery Court
               Moline, Illinois, 61265 U.S.A.      (the Purchaser's primary place of business)

        (b)    Performance Control, L.L.C.,        (the Supplier)

               4220 Varsity Drive, Suite E
               Ann Arbor, Michigan 48108           (the Supplier's primary place of business)
</TABLE>

        Orders applicable to this Purchase Agreement may be made directly by the
        Purchaser or any of the companies listed in Appendix 7 ("Participating
        Units"), or subsequently added to the list by the Parties. Any
        Participating Unit shall establish its own ordering procedures with the
        Supplier.

        The Participating Unit and the Supplier shall always communicate
        directly regarding any specific Order.

3.      APPLICABLE TERMS

        The General Terms and Conditions of Purchase, attached as Appendix 5
        ("GTC"), shall apply and the application of any other general terms and
        conditions is specifically excluded.

Annual Purchase Agreement     Date:  December 1, 1998       Page 1 of 5

<PAGE>

13.     CONTRACT DOCUMENTS

        In the event of any conflict between the provisions of this document and
        any Appendix to this Purchase Agreement listed below, or between any two
        Appendices, this document shall govern and the Appendices shall be
        interpreted in their numbered order.

<TABLE>
<CAPTION>
<S>              <C>                       <C>                    <C>
        Appendix 1    Specification - NEMA 1       Dated  October 1, 1998
                      Specification - NEMA 12      Dated  October 1, 1998

        Appendix 2    Technical Specification
                      - "The Performance Control User's Guide"                      Dated 1998
                      - Wall Bracket mounting Instructions for Escalators        Dated 10/1/98
                      - Floor/Wall Bracket Mounting Instructions for Escalators  Dated 10/1/98
                      - Field Installation of Remote L.E.D. Indicator Light Kit  Dated 10/1/98
                      - Three Circuits to Guarantee Adequate Voltage to Motor
                           During Regenerative Power Mode                        Dated 10/1/98
                      - Drawing Numbers:     - 3134E01                           Dated 1/14/98
                                             -       DET 00, 10, 20, 30, 40, 50,
                                                     60, 70, 80, 90, 100 All
                                                     Dated 1/14/98
                                             - 05251N50.00                       Dated 7/16/98
                                             - 05251N57.00                       Dated 7/16/98
                                             - 05251N58.00                       Dated 7/16/98
                                             - 05251N59.00                       Dated 7/16/98

        Appendix 3    Testing
                      - Testing Procedures for Three Phase                       Dated 11/1/97
                      - Cold Test Procedures for Performance Controller          Dated 10/1/98
                      - Final Test Procedure for Performance Controller          Dated 10/1/98

        Appendix 4    Performance Bond - Not Required

        Appendix 5    General Terms and Conditions of the Purchase
                                                     Dated:  April 1, 1998    Pages:  12

        Appendix 6    Price List

        Appendix 7    Participating Units

        Appendix 8    Example of Purchase Order Form

        Appendix 9    Warranty

        Appendix 10   Special Conditions

14      PARTIES REPRESENTATIVES (GTC 7.2)

        For the Purchaser:         David J. Wells, Purchasing Manager, Branch Support

        For the Supplier:          Stephen L. Schulman, Managing Director
</TABLE>

Annual Purchase Agreement     Date:  December 1, 1998       Page 4 of 5

<PAGE>

15.     OTHER PROVISIONS

        The following additional clauses to the General Terms and Conditions may
        apply, as directed by the Purchase Order.

        [      Buy America Act (41 U.S.C. 10)                           ]
        [      U.S. Steel Act                                           ]
        [      Federal Acquisition Regulations                          ]
        [      Minority Business Utilization (MBE/WBE/DBE)              ]
        [      Special requirements per State and Local jurisdictions.  ]

Except as modified herein, the Purchase Agreement between the parties is hereby
ratified, approved and confirmed.

An instrument in writing, signed by the parties hereto, as amended, may only
further amend this Purchase Agreement.

IN WITNESS WHEREOF, the undersigned have executed this Annual Purchase Agreement
as of the day and year first above written. The parties have executed this
Purchase Agreement in two identical copies, one for each party.

SIGNED: "SUPPLIER"                      SIGNED: "PURCHASER"
PERFORMANCE CONTROL, L.L.C.             MONTGOMERY KONE INC.
a Michigan limited liability company    a corporation

/s/ Stephen L. Shulman                      /s/ David J. Wells
Stephen L. Shulman                          David J. Wells
Managing Member                             Purchasing Manager, Branch Support

DATE: December 7, 1998                      DATE: 12/9/98

WITNESSES:

/s/ [illegible signature]                   /s/ Sandra L. Young

/s/ [illegible signature]                   /s/ James A. Robinson

Annual Purchase Agreement     Date:  December 1, 1998       Page 5 of 5ACORD      CERTIFICATE OF LIABILITY INSURANCE
                                                     CSR KC    Date 08/23/00
                                                     PERFO-3

PRODUCER
Dobson-McOmber Agency, Inc.
P.O. Box 1348
301 N. Main Street
Ann Arbor MI 48106-1348
Phone: 734-741-0044     Fax: 734-741-9059           INSURERS AFFORDING COVERAGE

INSURED
Power Efficiency Corporation          Insurer A:  Chubb Group of Insurance Cos.
Performance Control, LLC              Insurer B:  The Fremont Indemnity Company
Mr. Stephen Shulman
4220 Varsity Drive, Suite E
Ann Arbor MI 48108

COVERAGES

<TABLE>
<CAPTION>
INSR    TYPE OF              POLICY         POLICY EFFECTIVE          POLICY EXPIRATION
LTR     INSURANCE            NUMBER         DATE (MM/DD/YY)           DATE (MM/DD/YY)         LIMITS

<S>                          <C>            <C>   <C>                 <C>   <C>                                    <C>
A       GENERAL              35383844       08/11/00                  08/11/01       EACH OCCURRENCE               $1,000,000
        LIABILITY                                                                    FIRE DAMAGE (Any one fire)    included
                                                                                     MED EXP (Any one person)      $10,000
        Commercial General Liability                                                 PERSONAL & ADV INJURY         $1,000,000
        Occur                                                                        GENERAL AGGREGATE             $2,000,000
                                                                                     PRODUCTS-COMP/OP AGG          $2,000,000
        Genl Aggregate Limit Applies Per: Policy

A       Hired Autos          35383844       08/11/00                  08/11/01       COMBINED SINGLE LIMIT         $1,000,000
        Non-Hired Autos                                                              (Ea accident)

B                            Binder 13466   07/26/00                  07/06/01       WC Statutory Limits
                                                                                     E.L. Each Accident            $1,000,000
                                                                                     E.L. Disease - Ea Employee    $1,000,000
                                                                                     E.L. Disease - Policy Limit   $1,000,000

DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/EXCLUSIONS ADDED BY ENDORSEMENT/SPCIAL PROVISIONS
re:  leased space at 4220 Varsity Drive
Additional Insured on General Liability:  Highland Industrial Properties
(landlord)

CERTIFICATE HOLDER           Y                                        CANCELLATION
ADDITIONAL INSURED; INSURER LETTER: A

                             HIGHL-9                                  SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE
        Highland Industrial Properties                                CANCELLED BEFORE THE EXPIRATION DATE THEREOF,
        28777 Northwestern, Suite 100                                 THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS
        Southfield MI 48034                                           WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED
                                                                      TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO
                                                                      OBLIGATION OR LIABILITY OF ANY KIND UPON THE
                                                                      INSURER, ITS AGENTS OR REPRESENTATIVES.

                                                                      AUTHORIZED REPRESENTATIVE
                                                                      Dobson-McOmber Agency

</TABLE>[BAR CODE]
                                  US005821726A

<TABLE>
<CAPTION>
United States Patent [19]                  [11]      Patent Number:                 5,821,726
Anderson   [45]                            Date of Patent:                      Oct. 13, 1998

<S>               <C>                <C>
[54]       BALANCED AND SYNCHRONIZED PHASE DETECTOR FOR AN AC INDUCTION MOTOR CONTROLLER

[75]       Inventor:       Nicholas Anderson, Queen, N.Y.

[73]       Assignee:       Power Efficiency Corp., Hackensack, N.J.

[21]       Appl. No.:      786,787

[22]       Filed:          Jan. 21, 1997

[51]       Int. Cl.6                H02P 7/628
[52]       U.S. Cl.                 318/809; 318/427; 318/811
[58]       Field of Search          318/437, 438, 318/718, 798-801, 805, 807, 809, 810, 811

[56]       References Cited

           U.S. PATENT DOCUMENTS

           3,913,002           10/1975              Steigerwald et al.
           4,052,648           10/1977              Nola
           4,379,258           4/1983               Sugimoto
           4,384,243           5/1983               Muskovac
           4,388,578           6/1983               Green et al.
           4,404,511           9/1983               Nola
           4,459,528           7/1984               Nola
           4,618,805           10/1986              Homung              318/432 X
           4,939,632           7/1990               Plagge et al.
           5,017,855           5/1991               Byers et al.                   318/811
           5,140,243           8/1992               Lyons et al.                   318/701
           5,241,256           8/1993               Hatanaka et al.

           FOREIGN PATENT DOCUMENTS

           04-351492           12/1992              Japan
           05-227795           9/1993               Japan
           8002895             12/1980              WIPO

Primary Examiner - Bentsu Ro
</TABLE>

[57]       ABSTRACT

           A balanced and synchronized phased detector circuit is provided for a
           three phase power controller for AC induction motors. The power
           controller includes a thyristor or switching element for each motor
           phase winding between a line phase terminal of a three power line and
           the motor's input terminals, and decides the sequence for firing the
           thyristors. The phase detector includes a dividing resistor network
           between each phase's line terminal and the front-end operational
           amplifiers used in the phase detector, and an adjustable dividing
           resistor network between each motor terminal and the front-end
           operational amplifiers. The resistor networks allow a differential
           voltage to be set between the phase line terminal and the motor
           terminal for each phase, to a voltage appropriate for firing the
           respective thyristor. By allowing control over the front-end
           differential voltage, the phase detector virtually elements
           vibrations encountered during operation of the motor.

           7 Claims, 2 Drawing Sheets

[SCHEMATIC DIAGRAM OMITTED]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]