Document:

ex10-2.htm

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

 

 

	

Total Purchase Price

	

50% at Signing

	

25% at Installation

	

25% Upon Completion

	

Sales Tax

	

$90,282

	

$45,141

	

$22.570

	

$22,571

	

$0

 

 

OR

 

 

	

Lease Payment

	

Term

	

Sales Tax

	

$2,031

	

60 Months

	

Included

	  	  	  

 

 

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:

 

 

	
Average Monthly Bill

	 	$	29,250	 
	 	 	 	 	 
	
Guaranteed Savings

	 	 	8.82	%
	 	 	 	 	 
	
Average Amount Saved Monthly

	 	$	2,580	 
	 	 	 	 	 
	
Project Cost Before EPAct 2005 Tax Deduction

	 	$	90,282	 
	 	 	 	 	 
	
Payback Before EPAct 2005 Tax Deduction

	 	35 Months	 
	 	 	 	 	 
	
Project Cost After EPAct 2005 Tax Deduction

	 	$	77,510	 
	 	 	 	 	 
	
Payback After EPAct 2005 Tax Deduction

	 	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,

 

 

	

Verification Method

	

Verification Period

	

Electrical Meter readings at each treated load before and after installation or project to verify installation and operation

	

At Installation

	

Comparison of electrical costs and consumption to baseline for savings verification

	

Quarterly after installation for 35 months

 

 

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.ex10-3.htm

Exhibit 10.3

 

YUENGLING BREWING CO. OF TAMPA, INC.

11111 North 30th Street

Tampa, Florida 33612

 

 

	
Telephone: 813-972-8500

	
Fax: 813-972-8583

	
Purchase Order

	
Date: 

12/21/09

	
P.O.# 

15748

	
Order From:

	
Ship To:

	
Energy Edge Technologies Corp.

	
YUENGLING BREWING CO. OF TAMPA

	
33 Chestnut Trail

	
11111 North 30th Street

	
Flemington, New Jersey 08822

	
Tampa, FL 33612

	
Attn: Bill Poulos

	  

	
Phone:

	
888-729-5722

	
Fax:

	
866-302-2255

	
Att:

	
Santo Lazzara

	
[ ] Shipping Point-Frt. Paid by Buyer

	
Date Wanted:

	
Ship Via [ ] Prepaid   [ ] Collect

	
[ ] Dest-Frt. Paid by Seller

	  	  
	
[ ] Other-See Below

	
Sales Tax

	
Terms: Net 30 Days

	  	
[ ] Yes   [ ] No    Cert. No.

	  

	
Item :

	
Qty

	
Description

	
Price

	
Unit

	
Total

	
1

	
1

	
Provide all engineering, project management,

	
$405,700.00

	
Lot

	
$405,700.00

	  	  	
Procurement and installation as a “turnkey project”

	  	  	  
	  	  	
To reduce and improve the electrical usage for the

	  	  	  
	  	  	
Yuengling Brewery in Tampa by a range of of accepted

	  	  	  
	  	  	
Electrical engineering and contracting practices:

	  	  	  
	  	  	
i.e.; electrical sine wave modification, power factor

	  	  	  
	  	  	
correction capacitance, voltage regulation, polarized

	  	  	  
	  	  	
molecular bonding oil supplement, harmonics filtering,

	  	  	  
	  	  	
HVAC/R controls and lighting retrofits.

	  	  	  
	  	  	
Refer to attachd Edcutive Summary for details of

	  	  	  
	  	  	
Project and payment schedule.

 

 

	  	  	  

	
Acct. No.

	  	
For Use By:

	
Estimated Cost

	
$405,700.00

	
Proj. No.

	  	
Energy Reduction Project – Plant Wide

	  	  
	
Remarks

	  	  	  	  

	
Proposal based on engineering study and project analysis; Refer to ATTACHED Sales Agreement for details.

	
Requester’s Name

	
Date

	
Reason For Vendor Selection

	
Santo Lazzara

	
12/21/09

	  
	  	  	
[ ] Low Bid   [ ] Sole Source   [ ] Delivery   [ ] Other

	
Approval Signatures

	  	
Bid Summary / Comments:

	
Santo Lazzara /s/ Santo Lazzara

	
12/21/09

	  
	
/s/ James S. Helmke

	  	  
	
For Accounting Use Only

	  	  

	
Date

	  	
INV. No.

	  	
AMOUNT

	  
	
Please Make Copies:  Requester (1)  Receiving / Payables (1)  Accounting (1)

 

	
12/21/2009

	
po15748 Energy Edge_Energy Savings Project_12_21_09.xls

 

 

  

  

  

 

 

 

		
Energy Edge Technologies Corp.

33 Chestnut Trail

Flemington, New Jersey 08822

 

Phone: (888) 729-5722

Fax: (866) 302-2255

www.EnergyET.com

 

 

Sales Agreement

 

	
Purchaser:  Yuengling Brewing Co.

	
Facility Address:  11111 30th Street North

	
City: Tampa

	
State: FL            

	
Zip: 33612              

 

Savings Guaranteed

 

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

 

	
Total Purchase Price

	
50% at Signing

	
25% at Installation

	
25% Upon Completion

	
Sales Tax

	
$405,700

	
$202,850

	
$101,425

	
$101,425

	
$8,042.39

 

 

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 24.6 months (18 months after rebate & tax benefit).  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 $20,285 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).

 

 

/s/SL

Purchaser accepts _____ or rejects __X__ the maintenance contract at an annual fee of $20,285.

 

/s/SL

Purchaser accepts __X__ or rejects _____ to be a reference for the Company and receive a lifetime warranty at no cost to the Purchaser.

 

 

 

  

  

  

 

 

Verfication

 

The Company will coordinate with the Purchaser to verify savings utilizing the methods stipulated by the International Performance Measurement Protocols Option C.  The standards may be reviewed at www.ipmvp.org.

 

	
Verification Method

	
Verification Period

	
Electrical Meter readings at each treated load before and after installation or project to verify installation and operation.

	
At Installation

	
Comparison of electrical costs and consumption to baseline for savings verification.

	
Quarterly after installation for 25 months.

 

 

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.  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.

 

Signatures

 

	
Purchaser: /s/ Santo Lazzara                                                 

	
Title: Yuengling Brewing Co. Plant Engineering Mgr.

	
Printed Name: Santo Lazzara                                                 

	
Date: 12/21/09                                                       

	
Company: ___________________________________________

	
Title:_______________________________________

	
Printed Name:________________________________________

	
Date:______________________________________ 

 

 

  

  

  

Energy Cost Reduction Project Summary 9-22-09

 

Executive Summary – Whole Facility Approach

 

	
  

	
●

	
Project Analysis – Guaranteed Survey Results (Includes Lighting Retrofit)

 

	
Average Monthly Bill

	
$125,036.27

	
Guaranteed Savings

	
13.18%

	
Average Amount Saved Monthly

	
$16,479.78

	
Annual Save

	
$197,757.36

	
20 Year Save

	
$3,955,147.29

	
TECO Rebate

	
$10,500.00

	
EPAct 2005 Net Tax Benefit

	
$91,200.00

	
Project Cost After EPAct and Rebate

	
$304,000.00 (PO amount $405,700)

	
Payback 18 months

	  
	
ROI based on payback 67%

	  

 

	
  

	
●

	
The project cost represents a turnkey project for which Energy Edge takes responsibility for engineering, equipment purchase, installation, waste removal, rebate paperwork, EPAct 2005 certification, baseline measurements and on-going savings verification.  Installation willb e managed around the operation of the facility such that there will be no impact on production.

 

	
  

	
●

	
Cost Avoidance – This project will increase the plant’s electrical capacity by an average of 12% and will allow Yuengling to avoid up to $800,000 in new costs for adding new transformers, substations, disconnects, etc.

 

	
● Consumption Breakdown -

	
Load

	
Cost

	
Savings

	
Lighting

	
3.18%

	
5.74%

	
3.80%

	
Air Conditioning

	
0.67%

	
0.76%

	
0.14%

	
Refrigeration

	
29.98%

	
33.25%

	
5.27%

	
Resistive

	
1.72%

	
0.80%

	
- %

	
Equipment

	
64.45%

	
59.45%

	
3.96%

	
Total

	
100.0%

	
100.0%

	
13.17%

 

	
  

	
●

	
Savings Guarantee – The above stated savings of 13.17% or $197,757.36 annually is eligible to be uninsured by Energy Protection Assurance Corporation underwritten by Lloyds of London.  With this insurance, the price of which is currently included in the project cost, you are guaranteed a minimum savings of $405,700 over 24.6 months.

 

	
  

	
●

	
Environmental Benefits – Based on the annual energy savings of 1,807,655 kWh, Yuengling will be saving every year:

 

	
  

	
●

	
2,819,941 pounds of carbon dioxide

	
  

	
●

	
1,048 barrels of oil

	
  

	
●

	
796 tons of coal

	
  

	
●

	
21,267 pounds of sulfur dioxide

 

 

  

  

  

 

Executive Summary (Cont’d)

 

	
  

	
●

	
Additional benefits not included in the guaranteed savings:

 

Extended bulb and ballast life

Lower maintenance costs related to lighting

Extra capacity in current electrical distribution system

Lower refrigeration and A/C costs (lower wattage lighting contributes less hear)

Reduced harmonics

Cooler panels, wiring and circuit breakers

Reduced downtime (equipment and production)

Reduced maintenance costs due to cooler running equipment

 

Whole Facility approach vs. Lighting Retrofit only

There are several differences between the projects, some of them being:

 

	
  

	
-

	
The savings for the entire project as proposed is 13.17% ($197,757 annually) off of your electric bills, for the Lighting retro fit it is 3.8% ($57,016 annually).

 

	
  

	
-

	
The entire project as proposed = 18 month payback.  The lighting retrofit only = 20 month payback.

 

	
  

	
-

	
The entire project as proposed = 67% ROI.  The lighting retrofit only = 58% ROI.

 

	
  

	
-

	
The savings, project cost, payback, ROI, etc for the entire project as proposed are guaranteed and backed by a surety bond underwritten by Lloyds of London.  The numbers for the Lighting retrofit only are not backed by a surety bond.

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