Introduction of Energy Management Contract (EMC) for LED Lighting 1.2 | Page 4

Operating Procedure

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Procedures :

a) Rough material and equipment purchase

According to the project designing, EMC will do the rough material and equipment purchase and pay for them.

b) Construction EMC will be in charge of the construction of the projects, and usually the construction work is done by EMC or other construction organizations entrusted by EMC. According to the contract, the customers will have to provide the conditions and conveniences if necessary.

c) Operating and maintaining

After the equipment installing and debugging comes the operating testing period. EMC will train the equipment operators for the customers, and be responsible for the maintenances during the operating testing period and pay the concerning fee

d) Guarantee of energy saving and profits

Together with the customers EMC will monitor and confirm the efficiency of the energy conservation during the contract period in order to confirm the amount of energy saving EMC pledges in the contract.

e) Sharing of the profits between EMC and customers

Since all the fund (including energy sources audit, designing, purchase of rough material and equipment, construction, equipment installing and debugging, training and system maintaining) is provided by EMC, EMC will hold all the rights on the projects during the contract period. The customers will pay EMC the project fund in the means of sharing the energy conservation efficiency by season or by year. After the entire fund is paid off, EMC will hand over the projects to the customers and the customers will hold the ownership of the projects.