Loading...
HomeMy WebLinkAboutOrdinance 6592113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Ordinance: 6592 File Number: 2022-0667 J.A. RIGGS TRACTOR COMPANY D/B/A RIGGS CAT: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND ACCEPT A QUOTE IN THE AMOUNT OF $251,509.00 PLUS APPLICABLE TAXES AND FREIGHT CHARGES, FROM J.A. RIGGS TRACTOR COMPANY D/B/A RIGGS CAT FOR THE REBUILD OF A GENERATOR FOR THE NOLAND WATER RESOURCE RECOVERY FACILITY, TO APPROVE THE PURCHASE OF A 5-YEAR WARRANTY IN THE AMOUNT OF $15,181.00, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $50,301.80 WHEREAS, on July 8, 2022, the 2,000kw generator at the Noland Water Resource Recovery Facility failed; and WHEREAS, J.A. Riggs Tractor Company d/b/a Riggs Cat is the region's sole certified Caterpillar distributor and maintenance provider for our area. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and accepts the quote of $251,509.00 (plus any applicable taxes and freight charges) from J.A. Riggs Tractor Company d/b/a Riggs Cat for the rebuild of a generator for the Noland Water Resource Recovery Facility, approves the purchase of a 5-year warranty in the amount of $15,181.00, and further approves a project contingency in the amount of $50,301.80. PASSED and APPROVED on 8/2/2022 Page 1 Printed on 813122 Ordinance: 6592 File Number. 2022-0667 Appra� d: Attest: R-K.xa��+�, �. ioneld Jorda/,a yorKara Paxton City Clerk Treasurer 7';.p_ Page 2 Printed on 813122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0667 Agenda Date: 8/2/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Ordinance Agenda Number: C.6 J.A. RIGGS TRACTOR COMPANY DB/A RIGGS CAT: AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND ACCEPT A QUOTE IN THE AMOUNT OF $251,509.00 PLUS APPLICABLE TAXES AND FREIGHT CHARGES, FROM J.A. RIGGS TRACTOR COMPANY D/B/A RIGGS CAT FOR THE REBUILD OF A GENERATOR FOR THE NOLAND WATER RESOURCE RECOVERY FACILITY, TO APPROVE THE PURCHASE OF A 5-YEAR WARRANTY IN THE AMOUNT OF $15,181.00, AND TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $50,301.80 WHEREAS, on July 8, 2022, the 2,000kw generator at the Noland Water Resource Recovery Facility failed; and WHEREAS, J.A. Riggs Tractor Company d/b/a Riggs Cat is the region's sole certified Caterpillar distributor and maintenance provider for our area. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and accepts the quote of $251,509.00 (plus any applicable taxes and freight charges) from J.A. Riggs Tractor Company d/b/a Riggs Cat for the rebuild of a generator for the Noland Water Resource Recovery Facility, approves the purchase of a 5-year warranty in the amount of $15,181.00, and further approves a project contingency in the amount of $50,301.80. City of Fayetteville, Arkansas Page 1 Printed on 81312022 City of Fayetteville Staff Review Form 2022-0667 Legistar File ID 8/2/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 7/15/2022 WASTEWATER TREATMENT (730) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of a generator rebuild from Riggs Cat in the amount of $251,509.00 plus applicable taxes to rebuild a 2,000kW generator for the Noland Water Resource Recovery Facility, approval of the purchase of a 5-year warranty in the amount of $15,181.00, and to approve a contingency in the amount of $50,301.80. Budget Impact: 5400.730.5800-5400.00 Water and Sewer Account Number Fund 02032.1 WWTP Building Improvements Project Number Project Title Budgeted Item? Yes Current Budget $ 3,792,448.00 Funds Obligated $ 483,763.22 Current Balance $ 3,308,684.78 Does item have a cost? Yes Item Cost $ 341,513.93 Budget Adjustment Attached? No Budget Adjustment $ - Remaining Budget 2,967,170.85 V20210527 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Approval Date: Comments: Taxes are estimated at $24,522.13 and the 5-year warranty cost is $15,181.00 for a total estimated cost of $291,212.13. A contingency is also requested in the amount of $50,301.80. CITY OF FAYETTEVILLE ARKANSAS MEETING OF AUGUST 2, 2022 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: July 15, 2022 CITY COUNCIL MEMO SUBJECT: Riggs Cat — Rebuild of 2,0001kW Generator for Noland WRRF RECOMMENDATION: Staff recommends approval of a generator rebuild from J.A. Riggs Tractor Company d/b/a Riggs Cat in the amount of $251,509.00 plus applicable taxes to rebuild a 2,000kW generator for the Noland Water Resource Recovery Facility, approval of the purchase of a 5-year warranty in the amount of $15,181.00, and to approve a contingency in the amount of $50,301.80. BACKGROUND: On July 8, 2022, the 2,000kW generator at the Noland Water Resource Recovery Facility failed. The engine's wet sleeve cylinder inserts failed, which introduced engine coolant into the crankcase. The engine and generator will need to be rebuilt. DISCUSSION: A rental generator is currently in operating in place of the failed generator. Riggs Cat provided a rebuild quote in the amount of $251,509.00 plus applicable taxes which will fully rebuild the generator and its engine. Riggs is currently offering a 5-year Platinum Plus warranty in the amount of $15,181.00 which will cover almost all generator faults and will also cover rental costs and travel fees in the event the rebuilt generator fails within 5 years. Riggs is the only authorized and certified Caterpillar distributor and maintenance provider for our area. For reference, a new generator with this capacity is $2.2M with a lead time of one year or more. The City would endure the cost of rental for the entire year. Staff recommends approving the rebuild of the failed generator and the purchase of the 5-year warranty to get the failed generator fully operational for the Noland facility. Staff also recommends a contingency in the amount of $50,301.80. BUDGET/STAFF IMPACT: Funds are available in the WWTP Building Improvements account within the Water & Sewer fund. Attachments: Quote from Riggs Cat for Generator Rebuild and 5-year Warranty Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Biggs Quote Number ........:QOW09634-01 Prepared By ..........:CHRISTOPHER SEARS We are pleased to provide the following proposal PREPARED FOR Customer Name ...... :CITY OF FAYETTEVILLE Address ..............:113 W MOUNTAIN ST FAYETTEVILLE Make Model Serial Number Cat 3516 PKGL OFDNO1774 Riggs Cat Service Repair Quotation QOW09634-01 Quote Date ..... :2022-07-14 Valid Until ...... :2022-08-13 Unit Number WORK TO BE PERFORMED SegType '- 01 TRAVEL TO/FROM ELECTRIC POWER GENERATOR Est. Misc 1,500.00 TRAVEL TO/FROM GENERATOR. 02 REMOVE & INSTALL ELECTRIC POWER GENERATOR Firm Labor 20,000.00 Est.Misc 1,250.00 PARTS AND LABOR TO REMOVE/INSTALL GENERATOR PACKAGE FROM ENCLOSURE ENGINE/GENERATOR RECONDITIONING. INCLUDES: DRAIN COOLING SYSTEM, DISCONNECT/RECONNECT ALL RELATED PLUMBING AND WIRING, REMOVE/INSTALL GENERATOR AND SKID ASSEMBLY, REFILL COOLING SYSTEM. 04 SEPARATE & CONNECT ELECTRIC POWER GENERATOR Firm Labor 1,038.00 Est.Misc 250.00 LABOR TO REMOVE GENERATOR END FROM ENGINE TO SEND OUT FOR CLEAN, DIP, BAKE AND REAR BEARING REPLACMENT. RE -INSTALL AFTER REPAIRS 06 RECONDITION ENGINE Firm Labor 32,175.00 Est.Parts 143,151.00 PARTS AND LABOR TO RECONDITION ENGINE. INCLUDES: RECONDITION ENGINE USING GENUINE CAT PARTS PARTS AND PRICE MAY VARY BASED ON THE EXISTING PARTS MEETING CATERPILLARS ACCEPTABLE REUSABLE GUIDELINES. INCLUDES: GASKETS, SEALS, MAIN, AND ROD BEARINGS REMAN WHEN AVAILABLE; TURBO, HEAD, INJECTORS ENGINE OIL COOLER, AND INJECTOR WIRING HARNESS ALSO INCLUDES OIL PUMP, FUEL ,OIL, AND AIR FILTERS AND THERMOSTAT ALSO INCLUDES REPLACE WITH REMAN IF AVAILABLE OTHERWISE RECONDITION OR REPLACE CYLINDER PACKS, FUEL TRANSFER PUMP, REMAN INJECTION PUMP OR HUEI, CLEAN AFTERCOOLER AND TEST. AVAILABLE AT EXTRA COST ANY PARTS OR LABOR OPERATIONS, MACHINING, OR WELDING NOT SPECIFIED ABOVE. Created on July 14 , 2022 at 09:14:56 Page 1 Biggs Riggs Cat Service Repair Quotation QOW09634-01 Segment Description Type Amount • DAMAGED, MISSING, OR OTHERWISE UNUSEABLE PARTS. • ADDITIONAL CHARGES FOR REPAIR OR REPLACEMENT OF HOUSINGS, CASTINGS, SHAFTS, GEARS, OR OTHER MAJOR ACCESORY PARTS NOT LISTED ABOVE. PARTS DOC: OOQ067074 08 POLISH CRANKSHAFT MACHINE SHOP LABOR TO POLISH CRANKSHAFT TO SPEC. 10 POLISH CAMSHAFT MACHINE SHOP LABOR TO POLISH ALL 4 CAMSHAFT SEGMENTS TO SPEC. 12 MACHINE/GRIND/MILL CYLINDER BLOCK MACHINE SHOP LABOR TO INSPECT/GRIND CYLINDER BLOCK DECK TO SPEC. INCLUDES CHECK/MEASURE/INSPECT MAIN BEARING LINE BORE.SHIPPING INCLUDED. 14 DYNAMOMETER TEST ENGINE LABOR TO PERFORM DYNAMOMETER TESTING OF RECONDITIONED ENGINE. TEST ALL PARAMETERS FOR CORRECT OPERATION, VERIFICATION OF CORRECT HORSEPOWER. TEST FOR LEAKS. OBTAIN BASELINE SOS AND CUT OPEN OIL FILTER AND INSPECT. FULL LOAD OPERATION. 16 LOAD BANK TEST ELECTRIC POWER GENERATOR PERFORM LOAD BANK TESTING OF GENERATOR TO TEST ALL OPERATING PARAMETERS AFTER REPAIR TO ENGINE AND GENERATOR END. 18 RECONDITION ELECTRIC POWER GENERATOR MACHINE SHOP LABOR TO CLEAN/INSPECT, DIP/BAKE AND REPLACE REAR BEARING AND HEAT SYNC ON GENERATOR END. INCLUDES DELIVERY. 20 FURNISH MECHANICS FURNISH OF ELECTRICIANS TO ASSIST IN REMOVAL/DISCONNECT AND RECONNECT OF GENERATOR WIRING FOR THE PURPOSE OF GENERATOR PACKAGE REMOVAL TO RECONDITION. 22 FURNISH HOISTS/CRANES FURNISH OF CRANE AND DELIVERY TO REMOVE/INSTALL/SET GENERATOR PACKAGE FOR THE PURPOSE OF RECONDITIONING. INCLUDES SHIPPING OF GENERATOR PACKAGE TO RIGGS LITTLE ROCK SHOP AND BACK TO FAYETTEVILLE AT COMPLETION OF PROJECT. Created on July 14 , 2022 at 09:14:56 Page 2 Est. Misc Est. Misc Est. Misc Firm Labor Est. Parts, M isc Firm Labor Est.Misc Firm Labor Est.Misc Est. Misc Est. Misc 2,278.00 3,475.00 7,638.00 2,574.00 325.00 1,384.00 350.00 346.00 21,275.00 4,250.00 8,250.00 Riggs 0 Riggs Cat Service Repair Quotation QOW09634-01 Total of Firm Price Items 57,517.00 Total of Estimated Items 193,992.00 Pre -Tax SubTotal 251,509.00 Ark Sales Tax 16,348.09 Washington County 3,143.86 Fayetteville 5,030.18 Total (including tax) 276,031.13 0% Financing for 12 months 23,002.59 "Must have credit approval through Cat Commercial to qualify for financing options' Prices quoted include the specific services listed and do not include freight, handling charges, applicable taxes or additional services. Riggs will cover our workmanship for 90 days unless otherwise noted. Riggs Cat warranty covers 12 months new parts warranty from date of sale to the first user and 12 months labor if the part was installed by Riggs Cat. The quoted amount includes an Environmental Fee of $25. This environmental fee is for disposal of used materials and hazardous wastes such as batteries, fuel, oil and cleaning solutions. If the invoice is for parts only, an environmental fee will not be charged. Your dealer contact: CHRISTOPHER SEARS PSSR Phone: 501-570-3315 Cell: 501-850-6094 E-mail: ChrisS@jariggs.co Customer Signature: r Date: Customer Email: I / Purchase Order: Created on July 14 , 2022 at 09:14:56 Page 3 Extended Coverage Quote Confirmation k I L k Quote Number: 1657895022347 Customer Quote Extended Coverage Quote Provider: Caterpillar Quote Status: Draft -NOT ACCEPTED Quote Date : 07/15/2022 Price Expiration Date : 08/14/2022 Customer Information CITY OF FAYETTEVILLE WATER AND SEWER 113 W MOUNTAIN ST FAYETTEVILLE ARKANSAS 72701 UNITED STATES 479 575 8388 Product Information : Model: 3516B Serial# : FDNO1774 Type: Published Emissions Control Indicator: NONE Original Delivery Date: 07/26/2005 Product Status : No Delayed Coverage Start Current Usage : 2,000 Hours Dealer Information J.A. RIGGS 9125 INTERSTATE 30 PO BOX 1399 LITTLE ROCK ARKANSAS 72209-3703 UNITED STATES OVH GENSET PARTS AND 12 Months 500 Hours 0.00 2,040.00 MAJOR PLATINUM LABOR OVH GENSET PARTS AND 24 Months 1000 Hours 0.00 4,352.00 MAJOR PLATINUM LABOR OVH GENSET PARTS AND 36 Months 1500 Hours 0.00 6,961.50 MAJOR PLATINUM LABOR OVH GENSET PARTS AND 48 Months 2000 Hours 0.00 9,919.50 MAJOR PLATINUM LABOR OVH GENSET PARTS AND 60 Months 2500 Hours 0.00 13,277.00 MAJOR PLATINUM LABOR OVH GENSET PARTS AND 12 Months 500 Hours 0.00 2,337.50 MAJOR PLATINUM LABOR PLUS OVH GENSET PARTS AND 24 Months 1000 Hours 0.00 4,972.50 MAJOR PLATINUM LABOR PLUS OVH GENSET PARTS AND 36 Months 1500 Hours 0.00 7,956.00 MAJOR PLATINUM LABOR PLUS OVH GENSET PARTS AND 48 Months 2000 Hours 0.00 11,339.00 MAJOR PLATINUM LABOR PLUS OVH GENSET PARTS AND 60 Months 2500 Hours 0.00 15,181.00 MAJOR PLATINUM LABOR PLUS Other: Administration Fee Late Fee Tax Total Customer Amount 0.00 Page : 1 Extended Coverage Quote Confirmation Customer Quote Additional Comments : Quote Number: 1657895022347 Currency USD Notes: 1. This quote is a non -binding price indication. 2. Dealers may refer to Equipment Protection Plan Administrative Manual or Engine Extended ESC coverage for covered component details. 3. Late Fees may apply to Engine Extended Coverage Cost(s) at the time of Enrollment. 4. All deductibles displayed in USD. 5. GST Not Included 6. Caterpillar branded machine product quotes do not include Year 1 — Labor Only coverage within the Year 2 & Beyond coverages (except for limited EPP programs, which include both Year 1 — Labor Only and Year 2 & Beyond coverage) Customer Sire Date Dealer Signature Date Thank you for your business! 2120 West End Avenue, Nashville, TN 37203 Email. EquipmentProtectionPlan@cat.com or EngineESC@cat.com Page: 2 Extended Coverage Quote Confirmation Customer Quote Additional Comments Notes: Quote Nw"her : I65"N95022347 Currency USA 1. This quote is a non -binding price indication. 2. Dealers may refer to Equipment Protection Plan Administrative Manual Or Engine Extended ESC coverage for covered component details. 3. Late Fees may apply to Engine Extended Coverage Cost(s) at the time ofEnroliment. 4. All deductibles displayed in USD. S. GST Not Included 6. Caterpillar branded machine product quotes do not Include Year 1 — Labor Only coverage within the Yeor 2 & Beyond coverages (except for limited EPP programs, which include both Year 1 — Labor Only and Year 2 & Beyond coverage) Date healer Signature Date Tban lr you for your business! 2120 West End Avenue, Nashvilte, TN 37203 Email: EquipmentProtcetionPlan@cat.com or EngineESC@cat.com Page : 2 TERMS AND CONDITIONS These Terms and Conditions are specifically for Caterpillar commercial engines and/or generator sets and are an important part of Provider's continuing effort to provide Customer with superior value and product support. These Terms and Conditions govern the terms of coverage outlined in the Registration Certificate and taken together constitute the Extended Service Coverage Contract (Contract). I. DECLARATIONS This Contract defines coverage for the Cost, less any applicable Deductible, per visit, of a Mechanical Breakdown under normal use during the Coverage Period due to a defect in material, factory workmanship or Authorized Dealer workmanship of Covered Components. This Contract is subject to the applicable exclusions listed under Section VI. EXCLUSIONS AND LIMITATIONS. The Registration Certificate must be completed in its entirety on the date of registration. Customer should purchase this Contract on the Covered Equipment's original purchase date from an Authorized Dealer. Certain fees, penalties and coverage availability limits may apply for Extended Service Coverage (ESC) Contracts requested after the original purchase date. Customer must contact an Authorized Dealer for complete details. Coverage under this Contract starts at the earliest of: • The date of overhaul for engines or generator sets not awaiting resale, or engines or generator sets not in inventory; • The transfer date of coverage from an Authorized Dealer to Customer; or • Within twelve (12) months from the original date of the overhaul for engines or generator sets awaiting resale or for engines or generator sets placed in inventory. Under this Contract, coverage Upgrade or Coverage Continuation for overhaul (OVH) ESC starts at the date of registration of the changed coverage for claims reimbursement. Pre-existing claims, prior to the registration of the coverage Upgrade or Coverage Continuation, that would not have been paid under the original coverage, will not be paid. In the event a pre- existing claim is paid in error, Provider will recover the full amount paid and assess an Administrative Fee of ten percent (10%) of the amount paid in error. II. DEFINITIONS "Aftertreatment" is a general term for a reduction device or system installed to reduce regulated engine exhaust emissions. The systems may or may not be mounted on the engine. Aftertreatment is comprised of the following: "DPF" means "Diesel Particulate Filter", which is an Aftertreatment component included in the Technical Marketing Information (TMI) as shipped consist or Order Invoice with Engineering Breakdown. The DPF and related systems are designed to reduce Particulate Matter (PM) emissions levels. DPF coverage must be ordered with engine coverage and can be ordered in combination with SCR coverage. "SCR" means "Selective Catalytic Reduction" system, which is an Aftertreatment component included in the Technical Marketing Information (TMI) as -shipped consist or Order Invoice with Engineering Breakdown. The SCR and related urea -based diesel exhaust fluid systems are used to reduce Oxides of Nitrogen (NOx) emissions levels in engines. SCR coverage must be ordered with engine coverage and can be ordered in combination with DPF coverage. "DOC" means "Diesel Oxidation Catalysts", which is an Aftertreatment component designed to convert carbon monoxide (CO) and hydrocarbons into carbon dioxide (CO2) and water. The DOC can be used as a standalone component or in conjunction with a SCR and/or DPF. "Authorized Dealer" means a dealer authorized by the Manufacturer to sell, service and repair the Covered Equipment. "Authorized Dealer workmanship" means labor performed for the installation or inspection of required and optional replacement of Covered Components during the overhaul. "Caterpillar" means Caterpillar Inc. and any of its direct or indirect subsidiaries. "Cost(s)" means the usual and customary charges as determined by the Manufacturer for parts and labor only necessary Page 12 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 3 to repair or replace the Covered Components as specified in Section XIV. COVERED COMPONENTS. Replacement parts will be genuine Caterpillar manufactured parts when performing repairs. Genuine Caterpillar parts include new, remanufactured or Caterpillar approved repaired components. "Coverage Period" means the period that commences with the Coverage Start Date and expires when the duration or usage hours, as specified on the Registration Certificate, are reached, whichever occurs first. "Covered Component" means the components listed and identified for the appropriate level of coverage in Section XIII. COVERED COMPONENTS. "Covered Equipment" means the equipment identified by serial number for this Contract as recorded on the Registration Certificate and accepted by Provider. "Customer" means Customer name on the Contract. "Deductible" is the amount Customer agrees to pay per visit for a Mechanical Breakdown. "ESC" means extended service coverage, which provides protection for Customer against unexpected repair Costs for Covered Components, as further described in this Contract. "Manufacturer" means Caterpillar Inc. or any of its subsidiaries that manufacture Covered Equipment. "Mechanical Breakdown" means the failure, due to a defect in material or workmanship, of any original or replacement Covered Component to work as it was designed to work in normal service, provided it has received customary maintenance as recommended in the Manufacturer's Operation and Maintenance Manual (OMM). "Pre -Existing Claim" is a claim filed for a failure which occurred prior to the execution of this Contract and prior to registration of ESC for the Covered Equipment. "Provider" means the entity issuing this Contract and further defined in Section XV. PROVIDER. "Repairer(s)" means a business entity approved or authorized as a repair facility by Manufacturer or an Authorized Dealer. "Registration Certificate" means page one (1) of this Contract, or as generated by the Contract administrator's quoting and registration platform. "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of Treasury or by the U.S. Department of State; or (b) the United Nations Security Council, the European Union (EU), or Her Majesty's Treasury of the United Kingdom. "Sanctioned Person" means, at any time, (1) a person listed in any sanctions -related list of designated persons maintained by the U.S. Department of the Treasury, the U.S. Department of Commerce, the U.S. Department of State, or by the United Nations Security Council, the EU or any EU member state, or (II) any person owned or controlled by any such person. "Upgrade" or "Coverage Continuation" is a change to one or more of the existing Contract terms that results in a higher price for the coverage. "Warranty" means the Manufacturer's standard warranty or a Repairer's guarantee or warranty. III. PROVIDER RESPONSIBILITIES When a Mechanical Breakdown occurs, Provider will reimburse the Cost, less any applicable Deductible, to repair, replace or rebuild the Covered Component, and to the extent such Mechanical Breakdown causes damage to the Covered Equipment, Provider will reimburse the Cost, less the Deductible, to repair, replace or rebuild the Covered Equipment, this Cost not to exceed Caterpillar's list price for the equivalent Covered Equipment. This work will be reimbursed at normal working hour labor rates at a Repairer's place of business. Provider will provide, at Provider's choice, new, remanufactured or repaired components when replacing or repairing Page13 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page: 4 any Covered Components. Further, Provider will also reimburse for any component with a Caterpillar part number that is rendered unserviceable by a Covered Component and/or Mechanical Breakdown and reasonable labor to complete the repair. • Provider will restore the Covered Equipment to its operating condition immediately prior to the Mechanical Breakdown by repairing and/or replacing only the required Covered Components and any component with a Caterpillar part number that was rendered unserviceable as a consequence of the Mechanical Breakdown, which would be necessary to correct the defect in the Covered Equipment. • Provider will reimburse the reasonable labor to disconnect and reconnect the Covered Equipment to its attached equipment, mounting, and support systems, if required. Other parts or components removed in the process of the repair will be reinstalled as is, unless Customer authorizes and pays the additional expense to repair or replace the other parts. • Provider will also pay the reasonable Costs of any consumables made unusable as a result of a Mechanical Breakdown. • Provider will reimburse applicable transportation and importation Costs at standard factory warranty approved levels. IV. CUSTOMER RESPONSIBILITIES • Customer shall operate, repair, and perform all recommended maintenance for the Covered Equipment according to the guidelines and recommendations as specified in the Manufacturer's OMM. • Customer shall utilize an Authorized Dealer for all Scheduled Oil Sampling (S.O.S.) as specified in the Manufacturer's OMM, by submitting samples promptly with necessary sample information at the specified service intervals, and take the appropriate action as recommended by Authorized Dealer based on the S.O.S. results. • Customer shall be responsible for labor and material costs for the removal and reinstallation of Covered Equipment, except as stated in Section III. PROVIDER RESPONSIBILITIES, or in Section XIV. ADDITIONAL COVERAGE, if applicable. • Customer shall be responsible for all Costs not covered by this Contract. • Customer shall be responsible for maintaining reasonable documentation of all scheduled maintenance and repairs of the Covered Equipment, such as receipts or copies of work orders or invoices from Repairers or Authorized Dealers showing the maintenance and services performed pursuant to the Manufacturer's OMM recommendations. In the event of a Mechanical Breakdown, Customer may be required to present documentation of scheduled maintenance and repairs. • Customer shall only use the Covered Equipment for its intended application and shall follow guidelines of the Manufacturer's OMM. • Customer shall ensure operators have training on proper operation of the Covered Equipment and follow guidelines of the Manufacturer's OMM. • In the event of a failure of the Covered Equipment, Customer shall: • Take all reasonable steps to protect and safeguard the Covered Equipment. • Report the failure promptly to Provider or a Repairer. • Promptly make the Covered Equipment available to a Repairer for examination and repairs and provide proof of this Contract by presenting Customer's copy of the Registration Certificate. • Furnish Provider or a Repairer with such information as may be reasonably required to assess the failure. • Provide needed documentation or information upon request. • Customer shall confirm that neither Customer, nor any of Customer's respective directors, officers or employees, or any guarantor of this Contract, or to Customer's knowledge, any agent or subsidiary of Customer's that will act in any capacity in connection with or benefit from this Contract and the services hereunder, is at any time identified as a Sanctioned Person. • Customer assumes full responsibility for any damages and associated repair Costs attributable to any failure associated with operating a generator set in Emergency Override System (EOS) mode. Further, Customer will defend, indemnify and hold harmless Caterpillar and the Dealer and their respective parents, affiliates, subsidiaries, successors, directors, officers, employees, and agents from and against all third -party claims, actions, demands, damages and liabilities of any kind arising out of or related to operation of the generator set in ESO mode. V. COVERAGE TERRITORY This Contract applies to the Covered Equipment worldwide except when coverage provided by this Contract would be in violation of Sanctions. In such case, this Contract shall be null and void. Similarly, any coverage relating to or referred to in any certificates or other evidence of coverage or any claim that would be in violation of Sanctions shall be null and Page14 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 5 void VI. EXCLUSIONS AND LIMITATIONS This Contract does not cover a Mechanical Breakdown failure caused by: • Wear -out and normal deterioration in performance, including oil consumption and gasket or seal leaks; • Wear -out or failure of components due to (i) operation beyond the design and/or capacity of the product, (ii) operator abuse, (iii) improper operation technique, or (iv) application not approved by Caterpillar; • Corrosion and physical or mechanical erosion; • Operating equipment with improper, contaminated, or improper levels of fuel, fluids, coolants, lubricants, or the use of improper filters; • Repairer workmanship on subsequent repairs to the initial overhaul of the engine or generator set; • Modifications, unless the modifications were authorized at the request of Manufacturer and performed at an approved repair facility; • Abuse, neglect, or any failure to inspect, observe and comply with maintenance and servicing practices, specifications, intervals and requirements recommended or directed by the Manufacturer or us; • Any failure to test oil samples according to an oil sampling program or analysis (including infrared analysis) as recommended or directed by the Manufacturer; • Failure of a component which is not a Covered Component; • Resultant damage caused by a component, which is not a Covered Component; this to include filter failures, clogging, or blockage; • Use or establishment of fuel settings for Covered Equipment which are inconsistent with settings recommended by Provider or the Manufacturer; • Operating the product at performance settings other than the standard Manufacturer specification. This Contract also does not pay for the Costs arising from: • Acts of God, acts of nature, acts of war, vermin, collision, fire, theft, vandalism, riot, or explosion; • Performance -related complaints, including, but not limited to, adjustments to fuel settings or fuel injectors/nozzles; • The supply or consumption of lube oils, grease, coolant or air conditioner refrigerant, unless otherwise provided in this Contract or agreed by Provider; • Any Costs incurred to improve operation performance; • Any Costs for load or performance testing, even when Caterpillar guidelines call for such testing following a covered repair; • Work associated with performing a Product Improvement Program (PIP) or Product Support Program (PSP); • Any loss of or damage to a Covered Component occurring or arising outside the coverage territory, as stated in Section V. COVERAGE TERRITORY; • Routine maintenance items, normally scheduled preventive maintenance or maintenance services as explained in the Manufacturer's OMM, including but not limited to, valve lash adjustments or replacements of filters, fuel nozzles, fuel injectors, thermostats, seals, gaskets, hoses, vee-belts, batteries, and clutches; • Storage of Covered Equipment; • Miscellaneous shop supplies; • Steel shims and cast-iron block inserts; • Clamps and other fasteners not specified in Section XIII. COVERED COMPONENTS; • Any Costs associated with Mechanical Breakdowns covered under any Warranty whether enforceable or not; including Emissions Warranty or Repairer's guarantee regardless of whether the Warranty or Repairer's guarantee is honored; • Parts shipping charges and service charges unless provided by coverage type as described in Section XIV. ADDITIONAL COVERAGE; • Any and all taxes; • Any Costs associated with loss of time, inconvenience, downtime or downtime -related expenses or other incidental or consequential loss; • Physical damage not related to Mechanical Failure; • Any repairs if the service meter has been stopped or altered or misrepresents the Covered Equipment's actual usage; Page15 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 6 • Reimbursement for meals or overnight lodging; • Failures associated with enclosures, containers, undercarriage, ladders, lights, wheels, axles, brakes, tires, sound attenuation, sound reduction material, insulation, stabilizing jacks, fire suppression, and fire extinguishers; • For Marine coverage only: Additional Marine Control displays, and associated controls and display wiring are excluded; • Contingent damage to component(s) which were not part of the original factory consist; • Failure of or damage to the generator set incurred as a result of operating the generator set in Emergency Shutdown Override (ESO); • Additional Cat components installed by the Original Equipment Manufacturer (OEM), any Cat dealer, any authorized second level dealer or Customer after the in-service date of the engine or generator set, except where specified under Section XV. Covered Components; or • OEM components made a part of the Caterpillar factory 'as -shipped' consist of the generator set through the Design to Order (DTO) process are not covered unless Caterpillar has given prior written approval to include the OEM components in the coverage. Failure to provide reasonable documentation of required maintenance, as required in Section IV. CUSTOMER RESPONSIBILITIES may result in partial or non-payment of claim. Coverage may be discontinued if an overhaul to the Covered Equipment becomes necessary as defined by key measures explained in the Manufacturer's OMM for the model and application, as indicated on the Registration Certificate. These key measures include, but are not limited to, valve recession, oil consumption, blow by, S.O.S. recommendations, total fuel consumed or service hours. VII. UPGRADE OR COVERAGE CONTINUATION Subject to the limitations outlined in this Section, Customer may Upgrade or extend the following terms of coverage indicated on Customer's Registration Certificate: • Coverage months (Duration), • Coverage hours (Usage), or • Deductible level. Eligibility Guidelines for a coverage upgrade are as follows: 1. Upgrades in coverage level are not permitted. 2. An increase to the coverage months or hours (Coverage Continuation) or a decrease in Deductible amount is eligible any time during the active OVH ESC up to specified limits. Restrictions apply. Changes to the existing Contract terms may require Provider approval, may result in additional testing requirements, and will result in an adjustment in price for the program coverage. Provider reserves the right to deny an Upgrade request based on the claim's history of the Covered Equipment. This Contract's terms cannot be reduced once enrolled. VIII. TRANSFER OR ASSIGNMENT OF ESC CONTRACT The remaining coverage of this Contract may be transferred or assigned to subsequent owners other than an Authorized Dealer at Provider's sole discretion during the Coverage Period and at no extra charge provided the usage application is not different and the transfer or assignment would not violate Sanctions. The new owner of the Covered Equipment must present a copy of the current Registration Certificate to Provider within thirty (30) days of the transfer of the Covered Equipment's title and Provider must approve the transfer or assignment of the coverage. IX. TERMINATIONS AND REFUNDS • Customer may cancel this Contract by providing written notice of intent to cancel and returning this Contract to the Contract administrator. Cancellation will be effective on the date the Contract administrator receives the written Page16 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 7 cancellation notice. • Refund and Administration Fee. If Provider receives Customer's written cancellation notice and returned this Contract within ten (10) days of the registration signature date as indicated on the bottom of the Registration Certificate, Provider will provide a refund in the amount of the Coverage Fees, less any claims paid and less a $125.00 administration fee. • If Provider receives Customer's written cancellation notice and returned this Contract more than ten (10) days after the registration signature date, as indicated on the bottom of the Registration Certificate, the pro -rated refund will be based on the lesser of months or hours of unused coverage less any claims paid and less a $125.00 administration fee. If Provider receives Customer's written cancellation notice and returned this Contract more than thirty (30) days after the registration signature date, as indicated on the bottom of the Registration Certificate, Customer's refund will be reduced a further ten percent (10%). • No refund is available if coverage is transferred or assigned to a subsequent owner. • Provider may cancel this Contract without notice for the following reasons: o The Coverage Fee for this Contract has not been paid by Customer; o The standard factory warranty has been cancelled or voided; o Customer has substantially breached Customer's duties relating to the Covered Equipment or its use; or o Caterpillar or Provider determine that continuing this Contract would result in a violation of Sanctions. • If there is a material misrepresentation in the Registration Certificate, Provider may void this Contract without written notice and Customer will not be charged the Coverage Fee. • Provider may cancel this Contract without notice if the condition of an overhaul occurs. In the case of an overhaul occurring, Customer may receive residual Contract value as calculated above and applied to the continuation of coverage under the OVH ESC Contract for Caterpillar Commercial Engines. The new term of coverage under the OVH ESC program may be selected per available terms if OVH ESC eligibility requirements have been met. In the event Provider cancels this Contract, Provider will return any pro -rated refund, if applicable, based on the lesser of months or hours of unused coverage, less any claims paid, and less a $125.00 administration fee. X. DISCLAIMERS • Provider responsibilities and Customer remedies under this Contract are limited to the provisions as specified herein. • Provider disclaims any expressed or implied warranties in connection herewith including any warranty of merchantability or fitness for a particular purpose. • Provider is not responsible for incidental or consequential damages, except as stated in Section III. PROVIDER RESPONSIBILITIES. • Replacement parts furnished under the terms of this Contract are covered under the applicable replacement parts warranty. • This Contract does not supersede the Emissions Warranty for emissions -related components. • Misrepresentation of the Covered Equipment's eligibility for ESC or the actual accumulated miles, kilometers, hours, fuel burn or age shall result in cancellation of this Contract by Provider or non-payment of a claim, as determined by Provider. • Provider shall be entitled to all other remedies. XI. CUSTOMER ASSISTANCE For the U.S. and Canada, when a problem arises concerning the operation of Customer's Covered Equipment or concerning the service of Customer's Covered Equipment, the problem will normally be managed by the Authorized Dealer in Customer's area. Customer satisfaction is a primary concern of Caterpillar and Provider's Authorized Dealers. If a problem has not been handled to Customer's complete satisfaction, follow these steps: 1) Discuss the problem with a manager from Provider's Authorized Dealer. 2) If the problem cannot be resolved at the Authorized Dealer level without additional assistance, contact a service representative with the Contract administrator (Service Representative) at 1-888-614-4328. Outside the U.S. and Canada, if a problem arises concerning the operation of Customer's Covered Equipment or the service Page17 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 8 of Customer's Covered Equipment, Customer should contact the nearest Authorized Dealer or Service Representative. XII. PRIVACY NOTICE Provider or its Authorized Representative may collect Customer's name, address, phone number, payment information, product data (including geolocation and operational data) and email address ("Personal Data") from Customer to complete and process the Registration Certificate and to administer this Contract. Provider may collect non-public Personal Data and other data necessary for Customer's Contract coverage from the following sources: 1) Information that Provider receives from Customer on registrations, applications or other forms, such as Customer's name, address, assets and income; 2) Information about Customer transactions with Provider, Provider's subsidiaries, Provider's affiliates (received only with Customer's express consent), Authorized Representative; and 3) Information from a Consumer reporting agency. Provider processes Personal Data for the following purposes: 1) To execute and administer this Contract, including processing of claims; 2) To administer additional services requested in conjunction with this Contract; 3) To respond to Customer inquiries and provide customer support; 4) To enforce Provider's rights in the case of Customer default under this Contract or a breach by Customer of any of its responsibilities or obligations; 5) To comply with legal and regulatory obligations; 6) To conduct surveys, including through electronic means, to ascertain Customer satisfaction with Provider's coverage and services; 7) To contact Customer with details of Customer's existing or expiring coverage; 8) To contact Customer with details of products and services offered by Provider and other parties. In addition to the purposes outlined above, data may be de -identified, in which case it is no longer Personal Data, and may be processed for other purposes. In order to process Personal Data, Provider may rely on different legal basis, including: 1) The necessity for completion of pre -contractual measures, executing and administering a contract, and exercising Provider's rights thereunder; 2) The necessity for Provider to comply with legal obligations; 3) The necessity to pursue legitimate interests, including to improve the products and services we offer to Customer and to provide Customer with information about the products and services that Provider offers; and 4) Customer consent. If Provider relies on Customer consent as a legal basis for processing Customer data, Customer may withdraw consent at any time. Provider will share Personal Data with third -parties, including the Contract administrator, located in the U.S.A., who acts as a data controller and may process Customer Personal Data for any of the above referenced purposes. Customer may obtain additional details on the specific measures the Contract administrator uses to ensure compliance with applicable data protection requirements, and to maintain the security and protection of Customer data, by accessing the Contract administrator's global privacy notice(htti)s://www.caterr)illar.com/datai)rivacy). The failure to provide Personal Data would in some cases have the consequence that this Contract is not concluded, including: 1) Where processing is necessary to the administration of this Contract or the conducting of pre -contractual measures; and 2) Where processing is necessary to fulfil Provider's legal and regulatory obligations or to exercise Provider's legal rights. Page18 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 9 XIII. COVERED COMPONENTS Engine Component Extended Service Coverage Matrix Explained: Components covered by the Basic and Individual Component levels of ESC are listed in the table (matrix) at the end of this Contract. For Basic and Individual Component levels, if a component is not specifically listed in the matrix, it is not covered. Basic Coverage: Please refer to the Overhaul ESC Engine or Generator Set Component Extended Service Coverage Matrix for a complete listing of Covered Components. Basic Coverage provides protection only on components listed within the Engine or Generator Set Component Extended Service Coverage Matrix. Covered components must be replaced at the time of overhaul. Caterpillar Reuse Guidelines are not allowed for Basic Coverage. Individual Component Coverage: Component coverage is only available with the purchase of Basic Coverage. Individual Component Coverage is only available on parts that have been replaced. Caterpillar Reuse Guidelines are not allowed for Individual Component Coverage. Please refer to the coverage matrix at the end of this Contract for a complete listing of individual components available for coverage under OVH ESC. Platinum Level Covered Components: All as -shipped consist from the factory with Caterpillar part numbers, including DOC (when DOC is not part of a DPF) are Covered Components with the exception of the following: DPF and SCR, filters, fluids, vee-belts, hoses, power take -offs, paint, batteries, and clutches. New replacement EMCP control panels with Cat part numbers installed on electric power generator sets by an authorized dealer are covered components. Platinum Plus Level Coverage Components: All as -shipped consist from the factory with Caterpillar part numbers including DOC (when DOC is not part of a DPF) are Covered Components with the exception of the following: filters, fluids, vee-belts, hoses, power take -offs, paint, batteries and clutches. New replacement EMCP control panels with Cat part numbers installed on electric power generator sets by an authorized dealer are covered components. It is the responsibility of the Authorized Dealer to provide the following documents to Caterpillar: 1) A copy of the ESC Registration form; and 2) A copy of the Work Order for the overhaul 3) The completed OVH ESC Checklist These documents will become part of the permanent history of the Covered Equipment. XIV. ADDITIONAL COVERAGE Travel Time & Mileage Limitations, per claim where applicable by industry and coverage: Displacement Silver, Gold & Platinum Platinum Plus 4 liters or less Up to 2 hours and 100 miles / Up to 2 hours and 100 miles / 1 162 kilometers travel allowance 162 kilometers travel allowance Greater than 4 liters and up to Up to 4 hours and 200 miles / 7.5 liters 325 kilometers travel allowance Up to 10 hours and 500 miles / Greater than 7.5 liters Up to 8 hours and 320 miles / 802 kilometers travel allowance 515 kilometers travel allowance Emergency Freight: Emergency freight reimbursement up to $500.00 is available with all coverage levels of ESC when a dealer is unable to obtain the Covered Component replacement part(s) required to complete a repair through the normal regional distribution channel. The following items are included as additional coverage under Platinum Plus level ESC only, subject to the limitations outlined herein. Page19 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page: 10 Remote Troubleshooting: Remote Troubleshooting Fees, up to a maximum of $50.00 per claim, will be covered under Platinum Plus coverage only when a failed component is identified and repaired as part of the report. Overtime Allowance: For Covered Equipment registered in Platinum Plus level coverage up to $1,500.00 in overtime labor may be claimed for the incremental Cost of performing the repair outside of normal business hours, subject to the review and agreement by the Contract administrator, in its sole discretion, of the plausibility that the work could not be done within normal business hours. Incremental labor Cost hours must be in consecutive shifts to standard labor hours. This allowance modifies Section III. PROVIDER RESPONSIBILITIES, regarding repairs being done during normal business hours. This allowance is payable when it is not reasonably practical for the covered repair to be completed during normal business hours. Refer to industry addendum for incremental Costs reimbursement allowed. XV. PROVIDER In the United States and its territories of Guam, America Samoa, the Northern Mariana Islands and U.S.A. Minor Outlying Islands: The Provider of this service contract is Caterpillar Inc. In Canada excluding Alberta: The Provider of this service contract is the Cat dealer. In Alberta, Canada: The Provider of this service contract is Caterpillar of Canada. In All Other Countries and the U.S.A. territories of Puerto Rico and the U.S. Virgin Islands: The Provider of this service contract is the Cat dealer. XVI. NOTICE FOR U.S. CONTRACTS ONLY Obligations of the Provider under this Contract are backed only by the full faith and credit of the Provider (issuer) and are not guaranteed under a service contract reimbursement insurance policy. XVII. ENDORSEMENTS, APPLICABLE TO U.S.A. ISSUED CONTRACTS ONLY In Georgia: Paragraph IX. Terminations and Refunds the subparagraphs Refund and Administration Fee and Cancellation by Provider are replaced by the following: Refund and Administration Fee. If Customer cancels this Contract, the pro -rated refund will be based upon the lesser of months, miles or hours of unused coverage provided. Cancellation by Provider. Provider may only cancel this Contract for fraud, material misrepresentation or non- payment. If Provider cancels this Contract, Provider will give written notice of cancellation at least: o Ten (10) days before the effective date of cancellation if Provider cancel for non-payment of Coverage Fees or, o Thirty (30) days before the effective date of cancellation if Provider cancel for any other reason. The pro -rated refund will be based upon the lesser of months, miles or hours of unused coverage provided. In Hawaii: Paragraph IX. Terminations and Refunds, the subparagraph Cancellation by Provider is replaced by the following: Cancellation by Provider. Upon cancellation of a service contract by Provider, Provider, at least five (5) days prior to cancellation, shall mail to the contract holder at the contract holder's last known address, a written prior notice of cancellation that states the effective date of the cancellation; provided that prior notice under this subsection shall not be required if cancellation is for: o Non-payment of the Provider's fee for the service provided under the service contract; o A material misrepresentation by the contract holder to the Provider; or o A substantial breach of duties of the contract holder under the service contract, relating to a covered product or its use. Page110 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page: 11 In Hawaii and Wyoming: Paragraph IX. Terminations and Refunds, the subparagraph Refund and Administration Fee is replaced by the following: Refund and Administration Fee. If no claims have been made under the Contract delivered at the time of sale and Customer cancels this Contract by returning it to Provider within twenty (20) days of purchase, Customer's refund shall be the Coverage Fees, or between twenty (20) and thirty (30) days of purchase, Customer's refund shall be the Coverage Fees less a $25.00 administration fee. If Customer cancels this Contract by returning it to Provider after thirty (30) days from purchase, the pro -rated refund will be based on the lesser of months, miles or hours of unused coverage provided less any claims paid and a $25.00 administration fee. No refund is available if coverage is transferred or assigned to a subsequent owner. A ten percent (10%) penalty shall be added to the refund if not paid within thirty (30) days from the time this Contract was returned to Provider. In Wisconsin: paragraph IX. Termination and Refunds the subparagraphs Refund and Administration Fee and Cancellation by Provider are replaced by the following: Refund and Administration Fee. If Customer cancels this Contract by returning it to Provider within fifteen (15) days after Customer receives this Contract, Customer's refund shall be the Coverage Fees less a $35.00 administration fee. If Customer cancels this Contract by returning it to Provider after fifteen (15) days from the date Customer receives the Contract, the pro -rated refund will be based on the lesser of months, miles or hours of unused coverage provided less a $35.00 administration fee. If Provider cancels this Contract, Provider will provide Customer with written notice and Provider will not deduct any claims paid from Customer's refund. A ten percent (10%) penalty shall be added to the refund if not paid within thirty (30) days from the time this Contract was returned to Provider. All other terms and conditions apply. Cancellation by Provider. Provider may cancel this Contract with written notice to Customer and return to Customer the pro -rated refund based on the lesser of months, miles or hours of unused coverage provided and a $25.00 administration fee for the following reasons: the Coverage Fee for this Contract has not been paid by Customer, the Manufacturer's warranty has been canceled or voided, or a substantial breach of duties by Customer relating to the Covered Equipment or its use. If there is a material misrepresentation with intent to deceive by Customer in the Registration Certificate, Provider may void this Contract with written notice and Customer will not be charged the Coverage Fee. "THIS WARRANTY IS SUBJECT TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER OF INSURANCE." Page111 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 12 Engine Basic Coverage Extended Service Coverage Matrix January 1, 2021 Engine -Overhaul ESCBasicandBasicwithOptional Covered Components Covered Components Top -End Major Covered Components Cooling System Short Bloc Top -End Major Thermostat X X Connecting Rod Bearings X Seawater Aftercooler Core - (Marine Only) X X Crankshaft Seals X Crankshaft Thrust Washers X Separate Circuit Temperature Regulator - (Gas Only) X Crankshaft Vibration Damper X Gear Train Bearings X Fuel System Gear Train Bushings X Fuel Nozzles (if equipped) X X Main Bearings X Fuel Priming Pump (C175) X X Piston Rings X Fuel Regulator (Gas only) X Wrist Pin Bearings X Fuel Transfer Pump X X Miscellaneous Items Non-metallic Fuel Lines X Condensate Drain Valve - (Marine) X X High Pressure Fuel Pump(3500, C1 75) X X Optional Individual Coverage Components -Available for purchase with Basic Coverage only. Fuel Injectors X X Cylinder Head(s) Z Z Air Induction System Turbocharger(s) - (complete) Z Z Aftercooler Core - (Rail 3500) Turbo Cartridge -(Rail 3500) X X Jacket Water Pump Z Z "X"- Covered by Basic Top -End or Major Overhaul ESC as indicated. Replacement required when overhauled. "Z" -Covered by Basic Plus Optional Individual Covered Component Coverage. Replacement required and additional coverage charges apply. Lubrication System Oil Temperature Regulators - (if equipped) X componentsA number of non -covered o be inspected. Failed inspected componentsrepaired or d although they are not covered. Overhaul Components.Inspection Page112 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 13 Generator Set Basic Coverage Extended Service Coverage Matrix January 1, 2021 Generator Set - Overhaul ESC Basic and Basic with Optional Covered Components Covered Components Top- Major'i Covered Components Top- Major (Cooling System (Miscellaneous Items Thermostat X X Condensate Drain Valve - X X Seawater Aftercooler Core - (Marine X X (Marine) Only) I Lubrication System Separate Circuit Temperature X Oil Temperature Regulators X Regulator- (Gas Only) - (if equipped) Jacket Water Heater Element X Generator End Components and Thermostat Radiator Core X Rotating Diodes and Varistor X X Fuel System Space Heaters X X Fuel Nozzles (if equipped) X X EMCP Panel Fuses X Fuel Priming Pump (C175) X X Flexible Coupling X Automatic Voltage Regulator Fuel Regulator (Gas only) X (replace only upon testing X failure or obsolescence) Fuel Transfer Pump X X Coupling Elements (replace X rubber element) Non-metallic Fuel Lines X Generator Bearings and X Sleeves - Operating in all High Pressure Fuel Generator Bearings and Pump (3500 & C175) X X Sleeves - If operating in a X harsh/humid environment Fuel Injectors X X Optional Individual Coverage Components - Available for purchase with Basic Coverage (Short Block Cylinder Head(s) Z Z Connecting Rod Bearings X Turbocharger(s) - (complete) Z Z Crankshaft Seals X Jacket Water Pump Z Z Crankshaft Thrust Washers X "X" - Covered by Basic Top -End or Major Overhaul ESC as indicated. Replacement Crankshaft Vibration Damper X required when overhauled. Gear Train Bearings X Gear Train Bushings X Main Bearings X Piston Rings X Wrist Pin Bearings X componentsA number of non -covered o be inspected. Failed inspection components either repaired or replaced although they are not covered by Basic coverage. Refer to the Overhaul Components.be ESC checklists for the full list of Required Inspection Page113 Distribution: Original Copy to Cat Dealer LEHQ00008-04 Supersedes LEH000008-03 January 1, 2021 Caterpillar: Confidential Green Page : 14 Cat' Extended Service Coverage (ESC) 4 EASY STEPS TO PROTECT YOUR STANDBY GENERATOR SET Your operation depends on reliable power. That's why you trust Cat° generator sets. With Extended Service Coverage (ESC), you get additional protection that's just as durable and long-lasting. ESC for new, used and overhauled standby generator sets protects your investment and your peace of mind. Choosing coverage is as easy as following these four steps. 1 IDENTIFY YOUR COVERAGE NEEDS Identify your required years of coverage and preferred deductible to choose the best ESC terms to fit your needs. Electric power standby generator sets have a limit of coverage of 500 hours per year. For generator sets outside of their original factory warranty, identify the age and current operating hours since delivery. 2CHOOSE FROM A VARIETY OF COVERAGE OPTIONS Next, extend your protection beyond the original factory warranty by choosing the coverage option that's right for your situation. NEW ESC Coverage for electric power standby generator sets is available in 36- to 120- month terms, in 12-month increments, if purchased before the end of your original factory warranty. Coverage is available after the end of the original factory warranty in 12- to 60- month terms, in 12-month increments. Your genset: ADVANTAGE ESC Can be covered for up to 25 years from its delivery date Must pass a qualifying inspection performed by an authorized Cat dealer Can be covered for one to five years after each inspection May not require an inspection if it is less than 10 years since its build date and is either a) currently covered by ESC or b) currently covered by a Customer Value Agreement (CVA). Coverage is available in 12- to 60- month terms, in 12-month increments. Your genset is eligible OVERHAUL ESC once a qualifying overhaul has been completed by an authorized Cat dealer in accordance with the Overhaul ESC Checklist. CAT® Financial I SELECT YOUR COVERAGE LEVY' Then, choose from our Silver, Gold, Platinum or Platinum Plus coverage levels (New and Advantage ESC only) to get the exact amount of protection you need based on the Coverage Matrix' and Additional Allowances. Overhaul ESC options are also available. Contact your local Cat dealer ford eta ils. r.nvFRAr,F MATRIX Cooling System Silver Gold Platinum' Air Induction & Exhaust � Silver Gold Platinum' Thermostat Housing ✓ ✓ ✓ Exhaust Manifolds, Studs & Gaskets Water Manifold Housing ✓ ✓ ✓ Inlet Air Heater Relay ✓ Jacket Water Precooler ✓ ✓ ✓ Intake Manifold ✓ Jacket Water Pump ✓ ✓ Turbocharger(s) ✓ ✓ Thermostat 4—✓ ✓ Air -to -Air Aftercooler Cores J ✓ Radiator & Fan Muffler/Exhaust System ✓ Fuel System Exhaust Guards ✓ Steel Fuel Lines J ✓ ✓ Diesel Oxidation Catalyst Fuel Shutoff Solenoid ✓ Lihor Fuel Injectors + ✓ ✓ Cylinder Block Casting_ ✓ ✓ ✓ ✓ Fuel Transfer Pump & Housing _ ✓ _ Crankshaft ✓ ✓ ✓ Fuel Priming Pump ✓ Connecting Rod Assembly ✓ ✓ J Fuel Transfer Pump ✓ Piston, Wrist Pin, Retainer Clip & Piston Rings_ ✓ ✓ J Lubrication System Idler and Timing Gears Pan, Pump Cooler J ✓ ✓ Accessory Drive J Crankcase Breather ✓ Cylinder Head Engine Oil Pump Drive ✓ Cylinder Head ✓ ✓ ✓ ✓ Prelubrication Pump ✓ Intake & Exhaust Valves ✓ ✓ ✓ Electric System Valve Mechanism ✓ ✓ ✓ Control Module (ECM) ✓ ✓ ✓ Camshaft, Camshaft Bearings, Key, Gear ✓ ✓ Sensors: All Engine Sensors ✓ J ✓ Front & Rear Covers Wiring Harness & Connectors ✓ Front Cover/Plate/Housing/Gears & Gaskets ✓ J ✓ ✓ Starter ✓ Vibration Damper ✓ J J Engine Alternator ✓ Flywheel Housing & Gasket ✓ J Alternator End Crankshaft Front & Rear Seal ✓ Alternator, including Rotor, Stator and Exciter ✓ ✓ ✓ Diesel Particulate Filter ✓3 J3 J3 Generator Controls ✓ ✓ Selective Catalytic Reduction ✓3 J3 J3 Power Center ✓ ✓ 1 This Coverage Matrix is for reference only and does not represent a complete list of covered components. For additional information, please reference the appropriate ESC contract. 2 Platinum level covers the as -shipped consist from the factory with Cat part numbers. Some exclusions may apply. 3 Recent emissions -compliant engines may be equipped with a Diesel Particulate Filter (DPF) and/or a Selective Catalytic Reduction (SCR). We offer coverage at an additional cost on these emissions components. Silver, Gold, Platinum or Platinum Plus base level coverage is required. Platinum Plus goes beyond Platinum coverage to include Cat components installed by an authorized dealer. Such components must be approved. See your Cat dealer for details. Platinum Plus also offers more Additional Allowances and remote troubleshooting fees, up to a maximum of $50.00 per claim. ADDITIONAL ALLOWANCES Travel/Mileage Limitations Emergency Freight Rental' Crane & Riggings Overtim?"1111110P Engine Displacement' Silver, Gold, Platinum Platinum Plus Only All Coverage Levels Platinum Only Platinum Plus Only Platinum Plus Only Platinum Plus Only Up to 4 liters 2 hr/100 mi 10 hr/500 mi $500 USD $2,500 USD $5,000 USD $1,000 USD $3,000 USD Over 4 liters up to 7.5 liters 4 hr/200 mi 10 hr/500 mi $500 USD $5,000 USD $10,000 USD $1,000 USD $3,000 USD Over 7.5 liters up to 34 liters 8 hr/320 mi 10 hr/500 mi $500 USD $10,000 USD $20,000 USD $5,000 USD $3,000 USD Over 34 liters 8 hr/320 mi 10 hr/500 mi $500 USD $15,000 USD $40,000 USD $12,500 USD $3,000 USD 4 Please refer to the generator set spec sheets for particular engine displacement. 5 Allowance is granted if covered failure repairs cannot be completed within 96 hours (for Platinum) or 48 hours (for Platinum Plus) of the authorized dealer technician's initial visit. 6 Allowance is granted if covered failure repairs cannot be completed within 48 hours of the authorized dealer technician's initial visit. 4PURCHASE AND REGISTER YOUR ESP Finally, work with your local Cat dealer to complete the process —and get the protection and peace of mind you deserve. This marketing tool does not represent a contractor obligation of any kind between Cat Financial Insurance Services, its parent or affiliates, and the equipment owner. For details on any dealer agreement, including a complete description of the terms, conditions, and/or exclusions, contact your local Cat dealer. All graphics and lists in this marketing tool are provided solely for general information purposes and are not intended to be a solicitation or an offer to sell any product or service. Subject to change without notice. In case of conflict, the ESC contractwill govern. .AT PEHJ0380-01 02020 Caterpillar I All Rights Reserved Financial CAT, CATERPILLAR, LET'S DO THE WORK, their respective logos, -Caterpillar Yellow", the "Power Edge" and Cat "Modern Hex" trade dress as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.