Common use of Proposed Services Clause in Contracts

Proposed Services. TCS-1 System Maintenance: Technical and Market Support The Company requires all of its TCS-1 System purchasers to agree to enter into a Maintenance and Technical and Market Support Agreement (the "Proposed Maintenance Agreements"). In connection therewith the Company intends to provide timely, high quality technical support to insure that the TCS-1 System will perform in conformance with its specifications. Until the test phase of the first production sized model of the TCS-1 System is completed, the Company will be unable to finalize the definitive parameters of the services which it intends to offer under the Proposed Maintenance Agreements. Currently proposed plans call for the Company, or the Company's designated service provider, to provide, or be responsible for, all technical and other labor necessary for the maintenance of the TCS-1 System at a performance level capable of disintegrating the equivalent of one million automobile tires per year on a twenty-four hour per day, three hundred sixty-five day per year basis, in accordance with an operations and performance specifications manual to be furnished to the customer. The Proposed Maintenance Agreements are expected to require the Company to provide (i) regularly scheduled on-site preventive maintenance including but not be limited to inspection and assessment of wear factors affecting all constituent components of the System and determination and effectuation of replacement and/or recalibration requirements and (ii) unscheduled remedial maintenance, on an as needed basis. Other responsibilities which the Company, or its authorized service provider, are intended to assume under the Proposed Maintenance Agreements will include: (i) providing and maintaining computerized equipment to monitor and document the performance by the operator of the TCS-1 System of all routine maintenance procedures; (ii) reviewing the data retrieved thereby on a monthly, or more frequent, basis; (iii) immediately advising the operator of any improper performance of any of such Procedures; (iv) providing remedial instructions to the Operator's personnel with respect to the proper performance of certain routine maintenance procedures to be performed by the TCS-1 System Operator, and; (v) upon request of the Operator, re-training its personnel. The Proposed Maintenance Agreements are intended also to provide that the Company, or its authorized service provider, will provide an initial training period for the operator's personnel as well as continuing training, seminars and updates, on an as needed basis. The Proposed Maintenance Agreements are also intended to provide for additional technical and market support including Pre-Operational Support by way of, among other things: (i) assistance to the Operator with respect to procedures and requirements related to obtaining all licenses, permits, and other requirements for the establishment and operation of a TCS-1 System Plant, including the development, documentation, and furnishing of all required technical, environmental, operational, and other information and data; (ii) instructions and assistance with respect to all applicable federal, state, and local regulations and requirements respecting the preparation of the site and the installation and operation of a TCS-1 System at the site. In addition, the Proposed Maintenance Agreements will require that the Company, or its authorized service provider establish and maintain laboratory facilities at which they shall: