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1.5. Authorized Work: The work authorized by the Commission for the Program, set <br />forth in the Local Government Energy Action Resources ("LGEAR") attached hereto and <br />incorporated herein as Attachment A. <br />1.6. Business Day: The period from one midnight to the following midnight, <br />excluding Saturdays, Sundays, and holidays. <br />1.7. Calendar Day: The period from one midnight to the following midnight, <br />including Saturdays, Sundays, and holidays. Unless otherwise specified, all days in this <br />Agreement are Calendar Days. <br />1.8. Contractor: An entity contracting directly or indirectly with a Party to furnish <br />services or materials as part of or directly related to such Party's Authorized Work <br />obligations. <br />1.9. Eligible Customers or Customers: Customers eligible for Program services are <br />SCE customers. <br />1.10. Energy Efficiency Measure (or Measure): As used in the Commission's Energy <br />Efficiency Policy Manual, Version 3, August 2005. <br />1.11. Program Expenditures: Actual (i.e., no mark-up for profit, administrative or other <br />indirect costs), reasonable expenditures that are directly identifiable to and required for the <br />Authorized Work, up to the amounts budgeted in the Program Implementation Plans' <br />budget worksheets for such Authorized Work. <br />1.12. Public Goods Charge (PGC): The funds collected from electric utility ratepayers <br />pursuant to Section 381 of the California Public Utilities Code for public purposes <br />programs, including energy efficiency programs approved by the Commission. <br />1.13. Subcontractor: An entity contracting directly or indirectly with a Party to furnish <br />services or materials as part of or direct]y related to such Party's Authorized Work <br />obligations, provided however, that any potential subcontractors shall be approved by <br />SCE prior to performing any service or providing any materials. SCE may in its sole <br />discretion deny approval of any subcontractor for any reason. <br />2. PURPOSE <br />The Program is funded by California utility ratepayers, and is administered by SCE under the <br />auspices of the Commission. The purpose of this Agreement is to set forth the terms and <br />conditions under which the Parties will jointly implement the Program. The work authorized <br />pursuant to this Agreement is not to be performed for profit. <br />This Agreement is not intended to and does not form any "partnership" within the meaning <br />of the California Uniform Partnership Act of 1994 or otherwise. <br />3 <br />