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Sensus AMI System Performance Warranty <br />Definitions. <br />Any terms used in this Performance Warranty as defiled terms, and which are not defined <br />herein, shall have the meanings given to those terms in the Terms of Sale, as defiled above. <br />A "AMI System" identifies the Sensus FlexNet Advanced Meter Infrastructure <br />System deployed by the Customer, comprised of the SmarlPoint Modules, RF Field <br />Equipment, regional network interface (RNI), software, FCC licenses, and other <br />Sensus equipment provided to Customer and/or to the Utility Customer. The AMI <br />System only includes the foregoing, as provided by Sensus to the Utility Customer, <br />either directly or through a Sensus authorized distributor. The AMI System does not <br />include goods, equipment, software, licenses or rights provided by a third party(ies). <br />B. "Available Meter means an installed Sensus FlexNet meter (with a SmartPoint <br />Module installed) or a Sensus SmarlPoint Module which has been installed on a <br />third party meter, and which, in either case, is not an Unavailable Meter (or on an <br />Unavailable Meter in the case of SmarlPoint Modules on third party meters) and <br />Mich satisfies all of the following criteria: (i) it functions properly, is powered, and is <br />not a damaged or failed meter; (ii) if applicable, it is in a deployment area of meters <br />such that a sufficient number of two-way meters are in range of each other, (ii) it <br />is serviced by RF Field Equipment that has not been subjected to a power failure <br />greater than eight (8) total tours; (iv) neither it nor the RF Field Equipment that serves <br />that meter has been affected by a Force Majeure event; (v) jamming of the radio <br />spectrum is not preventing or interfering with radio communication to or from the <br />meter; (vi) it is installed in the Service Territory; (vii) it has not been reported to Utility <br />Customer under Sensus' or Ufility Customer's preventative maintenance; (viii) its <br />functioning or performance has not been adversely affected by a failure of Customer <br />and/ or Utility Customer to perform its obligations or tasks for which it is responsible, <br />including without limitation, testing and confirming that the socket to which the meter <br />will be/is connected is in safe operating condition, is fully functional, is not corroded, <br />does not contain improperly installed jaws or other deficiencies, complies with ANSI <br />standards, and is not "hot, damaged, or otherwise in need of maintenance or repair; <br />(Ix) its functioning or performance has not been adversely affected by a failure or <br />insufficiency ofthe back haul telecommunications network for communications among <br />the components of the SensusAMI System; and (x) it has been installed incompliance <br />with the procedures and specifications approved by Customer and Sensus. <br />C. "Billing WindmV for a meter means the four day period commencing one day prior to <br />the relevant billing day for such meter and ending two days after such billing day. The <br />Billing Window for testing purposes shall be agreed by Customer and Sensus. <br />D. "Customer" means the entity that purchases goods and/or services directly from <br />Sensus. <br />E. "Effective Date" means the date the Ufility Customer signs the Spectrum Lease <br />Agreement between Utility Customer and Sensus. <br />F. "End User' means any end user of electricity, water, and/or gas (as applicable) <br />that pays Ufility Customer for the consumption of electricity, water, and/or gas, as <br />applicable. <br />G. "Endpoints" mean both (a) Sensus FlexNet meters (with a SmartPoint Module <br />installed); and (b) Sensus SmartPoint Modules which have been installed on a third <br />party meter <br />H. "Force M*urd means an event beyond a party's reasonable control, including <br />without limitation, acts of God, hurricane, flood, volcano, tsunami, tomado, storm, <br />tempest, mudslide, vandalism, illegal or unauthorized radio frequency interference, <br />strikes, lockouts, or other industrial disturbances, unavailability of component parts of <br />any goods provided hereunder, acts of public enemies, wars, blockades, insurrections, <br />riots, epidemics, earthquakes, fires, restraints or prohibitions by any court, board, <br />department commission or agency of the United States or any States, any arrests <br />and restraints, civil disturbances and explosion. <br />I. "INOut Costs" means any costs and expenses incurred in transporting goods <br />between to and from End User's premises and any costs and expenses incurred in <br />installing, uninstalling and removing goods. <br />J. "Meter Data' means the specific metering information, including without limitation, <br />locations and antenna heights, provided to Sensus by Utility Customer in writing prior <br />to the earlier of the; @ Effective Date; and (ii) the date set forth on the propagation <br />study (collectively the "Data Date"). The parties recognize and agree that the RF <br />Field Equipment site design and build is based on the specific Meter Data provided to <br />Sensus. For clarity, the Meter Data only contains the information specifically provided <br />to Sensus by the Utility Customer in writing prior to the Data Date. By way of example <br />only (and not as an exhaustive list), the "Meter Data" includes the latitudes and <br />longitudes of each meter, the location of each module either inside or outside (outside <br />is assumed), and, for meters in pits, whether the radio is installed through or under <br />the lid (the assumption is through the lids). New or different metering locations and/ <br />or antenna heights provided after the Data Date are not included as part of the Meter <br />Data. <br />K. "Ongoing fees" means any reoccurring monthly or annual fees, including without <br />limitation, fees for software and spectrum leases. <br />L. "Recurrent RF Field Equipment Fees" means any and all costs, fees, and expenses <br />required to; (i) warrant the RF Field Equipment; and (ii) install and keep the RF Field <br />Equipment located in the field, including without limitation, site procurement and <br />preparation fees, fees related to building poles or towers, tower lease fees, costs of <br />electricity supply, and any local, state, or federal government taxes or charges. <br />M. "Remote Transceiver' identifies the Sensus standalone, mounted relay device that <br />takes the radio frequency readings from the SmartPoint Modules and relays them <br />directly to the RNI by TCP/IP backhaul communication. <br />N. "Required RF Field Equipment" means the number, location, and height of the RF <br />Field Equipment setforth in the Certified Propagation Study. <br />0. "RF Field Equipment" means the FlexNet Base Stations, Echo Transceivers, and <br />Remote Transceivers. <br />P. "Service Territory' identifies the geographic area where Ufility Customer provides <br />electricity, water, and/or gas (as applicable) services to End Users as of the Effective <br />Date. This area will be described in Utility Customer and Sensus'spectrum lease fling <br />with the FCC. <br />Q. "Spectrum Lease Agreement" means a written, signed agreement between <br />Sensus and Utility Customer whereby the Ufility Customer leases certain spectrum <br />fmm Sensus. The Spectrum Lease Agreement may be included as part of a larger <br />agreement, such as an AMI Agreement or a Software License and Spectrum Lease <br />Agreement. <br />R. "Success percentage" means, of the covered meters in the propagation study, <br />98.5%, <br />S. "Test Equipment' means the number of RF Field Equipment and production RNIs <br />set forth in the Certified Propagation Study. The Test Equipment specifically does not <br />include test RNIs or backup RNIs; it only includes production RNIs. <br />T "Test Units" means Endpoints that are both; (i) Available Meters throughout the entire <br />test period; and (ii) are covered meters, as depicted on the Certified Propagation <br />Study. <br />U. "Unavailable Meters" include meters with sockets with power cut at the pole, meters <br />that are booted on the line side, sockets that are not provided power due to a power <br />delivery system failure, meters with tamper, theft or other human induced failures <br />that render the meter or SmartPoint Module incapable of providing a read, a Force <br />Majeure event induced failures of the power delivery system, socket or meter, and/ <br />or any system or meter maintenance issue that precludes the meter from transmitting <br />its message to the network. Examples of Unavailable Meters include: (i) Cut At Pole: <br />a meter for which power has been turned off to the socket by Ufility Customer; (ii) <br />Booted on Line Side: nominally a meter for which power has been turned off by <br />placing "boots" in the socket from which the power to the meter has effectively been <br />turned off, (iii) Failed or flawed power delivery to the meter socket: Utility Customer <br />pourer generation, distribution or delivery system failure that has effectively turned <br />off power to the socket and/or meter; (iv) Tampered Meters: sockets, meters or <br />distribution assets that have been modified by unauthorized personnel rendering the <br />meter incapable of providing accurate usage readings from that meter; (v) Broken <br />TouchCoupler unit: the TouchCoupler unit is damaged by intentional or unintentional <br />acts;(vi) Broken Clip: the clip that holds the TouchCoupler unit into the radio package <br />housing is broken and the unit cannot complete the inductive electrical connection; <br />(vii) Improper installation of the TouchCoupler unit: the TouchCoupler unit is not <br />pushed all the way into the housing clip causing the unit to not be able to complete <br />the inductive electrical connection; (viii) Unit not installed through the pit lid: the unit <br />is not installed with the antenna positioned through the pit lid and properly secured <br />with the retaining nut. The radio unit must also be securely attached to the antenna <br />section; (x) Radio unit not securely attached to the Antenna unit The water -proof <br />SmartPoint Module housing is not properly installed and secured to the antenna unit; <br />(x) Damaged antenna: the units antenna is damaged by intentional or unintentional <br />acts; (xi) Damaged radio package: the unit's water -proof radio package is damaged <br />by intentional or unintentional acts; (xii) Data Base errors: the unit is removed from the <br />system but not updated in the database. The unit is still shown as in the system when <br />in fact has been removed; (xiii) Phantom Units: the unit is removed from the system <br />but is still transmitting and being heard by the system; and (xiv) Other Installabon <br />Defect the unit is otherwise installed improperly so that it does not communicate with <br />the FlexNet Base Station. <br />V. "Utility Customer' means the utility customer that uses the Sensus goods and <br />services in its AMI System regardless of whether such goods and services are <br />purchased directly from Sensus or from a Sensus authorized distributor. For clarity, <br />the Utility Customer is also the Customer if the Utility Customer purchases directly <br />from Sensus. <br />W. "Warranty End Date" means the earlier of, (i) the third anniversary of the Effective <br />Date; (ii) successful completion of the applicable Performance Test Standards; or <br />(iii) the termination or expiration of the Spectrum Lease Agreement between Utility <br />Customer and Sensus. <br />8601 Six Forks Road, Suite 700 2 5 H -146 <br />Raleigh, 27615 SEPRSU5 <br />1-800-638-8-3748 <br />