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ESCO to achieve the energy savings at the Premises, which shall not increase the GMIC, <br />and; <br />C. All modifications, additions or replacements of the Equipment or revisions <br />to operating or other procedures shall be described in a supplemental Schedule(s) to be <br />provided to the Owner for approval, which shall not be unreasonably withheld, provided <br />that any replacement of the Equipment shall comply with Section 11 (provided that the <br />warranty shall extend for one [1] year from the date of installation) and have equal or better <br />potential to reduce energy consumption at the Premises than the Equipment being replaced. <br />The Owner may elect, at a negotiated rate, to have the ESCO update any and all software <br />to be used in connection with the Equipment in accordance with the provisions of Section <br />19.1 (Ownership of Certain Proprietary Rights). All replacements of and alterations or <br />additions to the Equipment shall become part of the Equipment described in Schedule A <br />(General Description of Project Scope) and shall be covered by the provisions and terms <br />of Section 9 (Construction Schedule and Equipment Installation; Approval). <br />SECTION 15. MATERIAL CHANGES <br />Section 15.1. Material Change Defined. A Material Change shall include any change in <br />or to the Premises, whether structural, operational or otherwise that reasonably could be expected <br />to increase or decrease annual energy consumption to a degree that it would affect the Energy <br />Savings Guarantee, in accordance with the provisions and procedures set forth in Schedule D <br />(Baseline Energy Consumption), Schedule E (Savings Measurement & Calculation <br />Formulae; Methodology to Adjust Baseline) and Schedule B (Energy Savings Guarantee and <br />Projected 25 Year Cost Avoided Energy Savings). <br />During the Guarantee Period, when the effect on energy savings cannot be accurately <br />determined due to changes that may be Material Changes, Projected Energy Savings for that <br />portion of the Premises undergoing change will be used to determine the actual savings and until <br />the effect of the change can be determined by ESCO. <br />Section 15.2. Reported Material Changes: Notice by the Owner. The Owner shall use <br />reasonable efforts to deliver to ESCO a written notice describing all actual or proposed anticipated <br />Material Changes in the Premises or in the operations of the Premises at least thirty (30) days <br />before any actual or proposed anticipated Material Change is implemented or as soon as is <br />practicable after an emergency or other planned or unplanned event. Written notice to ESCO of <br />changes that result because of an emergency or other situation that precludes advance notification <br />and that are likely to be Material Changes shall be deemed sufficient if given within forty-eight <br />(48) hours after actual knowledge that the event constituting the likely Material Change occurred <br />or was discovered. <br />If the Owner elects not to use the Projected Energy Savings applying to the portion of the <br />Premises adversely affected by the Material Change, ESCO has the right to charge for work <br />required to assess the effect on energy savings for any Material Changes, including but not limited <br />to building additions, new buildings (if not separately metered or otherwise distinguishable from <br />the Energy Savings Guarantee), and new or changed HVAC equipment that requires more than <br />sixteen (16) total hours per year to be spent in calculating their effect on the energy savings. Such <br />ESCO (McKinstry)/OWNER/PERFORMANCE CONTRACT 13 <br />