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(b) COVERED EQUIPMENT means the equipment for which services are to be provided under this Services <br />Schedule and installed under Schedule 1 and any other Covered Equipment Lists attached to this Services <br />Schedule. <br />(c) EQUIPMENT FAILURE means the sudden and accidental failure of moving parts or electric or electronic <br />components that are part of the Covered Equipment and that are necessary for its operation. <br />(d) EXTENDED SERVICE includes extended service for repairs and is available only if Customer has PREMIUM <br />or PRIME coverage. The price for Extended Service, if chosen by South Bend, is part of the total price South <br />Bend will pay. Should a defect be found during an Extended Service visit that JCI is not responsible for under <br />this Services Schedule; South Bend agrees to pay JCI's standard fee for any services rendered. Should <br />Repair Labor or Repair Materials be performed in periods beyond the Extended Service period, South Bend <br />agrees to pay JCI's standard fee for any services rendered beyond the Extended Service period. PRIME <br />LEVEL COVERAGE includes BASIC COVERAGE as well as Repair Labor, plus Repair Materials if otherwise <br />set forth in this Services Schedule, for Covered Equipment consisting of centrifugal, absorption, or screw. <br />chillers. PRIME LEVEL COVERAGE also includes Repair Labor, and Repair Materials if otherwise set forth in <br />this Services Schedule, for diagnosed imminent equipment failure as well as actual equipment Failure, and the <br />following: <br />(i) JCI will analyze diagnostic tests including Pre?Vue Vibration Analysis and spectrochemical oil analysis <br />megohm readings. All diagnostic tests must be performed at JCl-prescribed frequencies and to JCI- <br />specified test standards. Coverage will include Repair Labor and Repair Material for heat exchanger <br />tubes if an Eddy Current Analysis, acceptable to JCI, has been performed in the three years prior to <br />this Services Agreement Schedule and is provided to JCI, or such a test will be performed as part of <br />this Services Agreement Schedule. <br />(ii) Should JCI's analysis suggest the existence or the possibility of equipment deterioration outside <br />anticipated or acceptable conditions, JCI may at its option take corrective steps necessary to prevent <br />further deterioration or breakdown of the Covered Equipment. JCI retains sole judgment over whether <br />equipment conditions are considered acceptable, whether corrective steps should be taken, or what <br />steps, if any, need to be taken. Performance of any corrective steps under this PRIME coverage is not <br />a guarantee that equipment failure or downtime will not occur. <br />(e) PREMIUM LEVEL COVERAGE includes BASIC COVERAGE as well as Repair Labor, plus Repair Material if <br />otherwise noted in this Services Schedule, for Covered Equipment. <br />(f) REPAIR LABOR includes labor necessary to restore Covered Equipment to working condition following an <br />equipment failure and excludes total equipment replacement due to obsolescence or unavailability of parts. <br />(g) REPAIR MATERIALS include materials necessary to restore Covered Equipment to working condition <br />following an equipment failure and excludes total equipment replacement due to obsolescence or <br />unavailability of parts. At JCI's option, Repair Materials may be new, used, or reconditioned. All Repair <br />Materials are covered by the warranty as described below. <br />(h) SCHEDULED SERVICE MATERIALS include materials required to perform Scheduled Service Visits on <br />Covered Equipment. <br />(i) SCHEDULED SERVICE VISITS include labor required to perform inspections and preventive maintenance on <br />Covered Equipment. <br />4. INITIAL EQUIPMENT INSPECTION FOR PREMIUM OR PRIME COVERAGES. JCI will inspect the Covered <br />Equipment within 45 days of the date of this Services Schedule or as seasonal or operational conditions permit. JCI <br />will advise South Bend if JCI finds any Covered Equipment not in working order or in need of repair. With South <br />Bend's approval, JCI will perform the work necessary to put the Covered Equipment in proper working condition. To <br />the extent that Covered Equipment is not subject to warranty or other obligation of JCI for its repair, this work will be <br />done at JCI's standard fee for parts and labor in effect at that time. If South Bend does not want JCI to do the work <br />identified by JCI, or if South Bend does not have the work done, the Covered Equipment will be removed from the list <br />of Covered Equipment and the price of this Services Schedule will then be adjusted. <br />Page 16 of 20 <br />Performance Contract (Rev 14) <br />SB LED Contract_15June 2007_FINAL(ver7) <br />