Exhibit 10.1
_________________________
* Indicates that material has been omitted and
confidential treatment has been requested therefor. All such
omitted material has been filed separately with the SEC pursuant to
Rule 24b-2.
MASTER SUPPLY
AGREEMENT
between
ALLIANT ENERGY CORPORATE
SERVICES, INC.,
AS AGENT FOR INTERSTATE POWER AND
LIGHT COMPANY AND
WISCONSIN POWER AND LIGHT
COMPANY,
as Buyer
and
VESTAS-AMERICAN WIND TECHNOLOGY,
INC.
as Supplier
for
WIND TURBINE EQUIPMENT
SUPPLY
for
MULTIPLE WIND ENERGY GENERATION
FACILITIES
Dated as of June 1,
2008
Table of
Contents
Page
|
ARTICLE 1. DEFINITIONS AND RULES OF
INTERPRETATION
|
1
|
|
|
1.2 Recitals, Articles, Sections and
Exhibits
|
19
|
|
|
1.4 Successors and Assigns
|
19
|
|
|
1.7 References to
Documents
|
19
|
|
ARTICLE 2. PURCHASE AND SALE
COMMITMENT
|
20
|
|
|
2.1 Commitment Quantity
|
20
|
|
ARTICLE 3. PROJECTS AND PROJECT
DOCUMENTS
|
20
|
|
|
3.1 Effect
of Execution of Project Documents
|
20
|
|
|
3.2 Equipment Options Notices
|
20
|
|
|
3.5 Installation Services
|
23
|
|
ARTICLE 4. PRICING AND PAYMENT
|
26
|
|
|
4.1 Wind
Turbine Base Price
|
26
|
|
|
4.3 Payments for Wind Turbine Base Price
|
27
|
|
|
4.4 Optional Equipment Payments
|
29
|
|
|
4.5 Application of Payments to Project Contract
Price
|
29
|
|
|
4.12 Supplier MSA Parent Guaranty
|
33
|
|
|
4.13 Buyer
Payment Security
|
33
|
|
ARTICLE 5. TITLE, RISK OF LOSS, CARE, CUSTODY
AND CONTROL
|
34
|
|
ARTICLE 6. DELIVERY AND STORAGE
|
34
|
|
|
6.1 Delivery of Wind Turbines
|
34
|
|
|
6.3 Maintenance During Storage
|
36
|
|
|
6.5 Guaranteed Delivery Dates
|
38
|
|
|
6.7 Standard of Performance
|
39
|
|
|
6.8 Supplier’s Manager
|
39
|
|
|
6.9 Subcontractors and Vendors
|
40
|
|
|
6.12 Manufacturing Facility
|
41
|
|
ARTICLE 7. ADDITIONAL BUYER
OBLIGATIONS
|
42
|
|
|
7.2 Transportation Access
|
42
|
|
|
7.3 Loading, Unloading and Delivery Device
Return
|
42
|
|
|
7.4 Standard of Performance
|
43
|
|
|
7.7 Hazardous Site Conditions
|
44
|
|
|
7.8 Soil
and Subsurface Conditions
|
44
|
|
ARTICLE 8. PROPRIETARY RIGHTS
|
45
|
|
|
8.1 Grant
of and Rights to License
|
45
|
|
|
8.3 Proprietary Notices
|
45
|
|
|
8.4 No
Reverse Engineering
|
45
|
|
|
8.8 Durations and Transfers
|
47
|
|
|
8.9 Government End Users
|
48
|
|
|
8.10 Export Restrictions
|
48
|
|
|
8.11 Reservation of Rights
|
48
|
|
ARTICLE 9. EXCUSABLE EVENTS
|
48
|
|
|
9.2 Change
Order for Excusable Event
|
49
|
|
|
9.3 Procedures upon Excusable Event or Force
Majeure
|
49
|
|
ARTICLE 10. CHANGE ORDERS
|
50
|
|
|
10.2 Change Order Process
|
51
|
|
|
10.3 Default Change Order Pricing
|
51
|
|
|
10.4 Change Order Restrictions
|
51
|
|
|
10.6 Accounting and Auditing
|
52
|
|
ARTICLE 12. LIMITATIONS ON LIABILITY
|
53
|
|
|
12.1 Overall Limitation of Liability
|
53
|
|
|
12.2 Consequential Damages
|
53
|
|
|
12.3 Releases Valid in All Events
|
53
|
|
ARTICLE 13. CONFIDENTIALITY AND
PUBLICITY
|
54
|
|
|
13.1 Confidential Information
|
54
|
|
ARTICLE 14. REPRESENTATIONS AND WARRANTIES OF
SUPPLIER
|
57
|
|
|
14.1 Due
Organization; Valid Existence; Qualified to do Business
|
57
|
|
|
14.2 Due
Authorization
|
57
|
|
|
14.3 Execution and Delivery
|
57
|
|
|
14.4 Governmental Approvals
|
57
|
|
|
14.6 Accuracy of Information
|
57
|
|
|
14.8 Rights to Licensed Materials
|
58
|
|
ARTICLE 15. REPRESENTATIONS AND WARRANTIES OF
BUYER
|
58
|
|
|
15.1 Due
Organization; Valid Existence; Qualified to do Business
|
58
|
|
|
15.2 Due
Authorization
|
58
|
|
|
15.3 Execution and Delivery
|
58
|
|
|
15.4 Governmental Approvals
|
58
|
|
|
15.6 Accuracy of Information
|
58
|
|
|
15.7 Correct Project Commercial
Information
|
58
|
|
ARTICLE 16. DEFAULT AND TERMINATION
|
59
|
|
|
16.1 Supplier Defaults
|
59
|
|
|
16.3 Cure
of an Event of Default
|
60
|
|
|
16.4 Event
of Default Remedies
|
61
|
|
|
16.5 Termination For Buyer Event of
Default
|
62
|
|
|
16.6 Termination For Supplier Event of
Default
|
62
|
|
|
16.7 Termination For Force Majeure Event
|
63
|
|
|
16.8 Limitations on Transfer of Title Upon
Termination
|
64
|
|
|
16.9 Surviving Obligations
|
64
|
|
ARTICLE 17. INDEMNIFICATION
|
64
|
|
|
17.1 Indemnification By Buyer
|
64
|
|
|
17.2 Indemnification By Supplier
|
65
|
|
|
17.3 Comparative Negligence
|
65
|
|
|
17.4 Indemnity from Liens
|
65
|
|
|
17.5 Indemnification Procedure
|
65
|
|
|
17.6 Infringement Indemnification by
Supplier
|
66
|
|
|
17.7 Infringement Indemnification by Buyer
|
67
|
|
ARTICLE 18. DISPUTE RESOLUTION
|
68
|
|
|
18.1 Referral to Senior Management
|
68
|
|
|
18.2 Arbitration Procedure
|
68
|
|
|
18.4 Performance During Dispute
|
69
|
|
|
18.6 Resolution of Project Document
Disputes
|
70
|
|
|
18.7 Independent Engineer
|
70
|
|
ARTICLE 19. GENERAL PROVISIONS
|
71
|
|
|
19.3 Successors and Assigns
|
71
|
|
|
19.6 Consent to Jurisdiction
|
73
|
|
|
19.9 Independent Contractor
|
73
|
|
|
19.11 Further Assurances
|
74
|
|
|
19.13 NO
IMPLIED WARRANTIES
|
74
|
|
|
19.15 No
Rights in Third Parties
|
74
|
|
|
19.19 English Language Documents
|
75
|
|
|
19.20 Notices, Consents and Approvals in
Writing
|
75
|
|
|
19.21 Federal Contractor Requirements
|
75
|
List of
Exhibits
|
Exhibit A
|
Delivery Schedule
|
|
|
A.1
|
Group 1 Wind Turbine Delivery
Schedule
|
|
|
A.2
|
Group 2 Wind Turbine Delivery
Schedule
|
|
|
A.3
|
Group 3 Wind Turbine Delivery
Schedule
|
|
Exhibit B
|
Form of Equipment Options Notice
|
|
Exhibit C
|
Form of Project Notice
|
|
Exhibit D
|
Form of Turbine Supply Agreement
|
|
Exhibit E
|
Form of Turbine Supply and Installation
Agreement
|
|
Exhibit F
|
Form of Service Agreement
|
|
Exhibit G
|
Form of Manufacturing Capacity Allocation
Certificate
|
|
Exhibit H
|
Form of Ex Works Certificate
|
|
Exhibit I
|
Form of Delivery Certificate
|
|
Exhibit J
|
Approved Major Subcontractors
|
|
Exhibit K
|
Storage Requirements
|
|
Exhibit L
|
Storage Instructions
|
|
Exhibit M
|
Delivery Device Storage Fees
|
|
Exhibit N
|
Form of Delayed Project Documents Execution
Certificate
|
|
Exhibit O
|
Form of Delayed Commissioning Completion
Certificate
|
|
Exhibit P
|
Form of Delayed Substantial Completion
Certificate
|
|
Exhibit Q
|
Form of Delayed Final Completion
Certificate
|
|
Exhibit R
|
Form of Delayed SCADA Completion
Certificate
|
|
Exhibit S
|
Site Facilities
|
|
|
S.1
|
Site Facilities Requirements
|
|
|
S.2
|
Site Facilities Lease
|
|
Exhibit T
|
Annual Fee Parameters
|
|
Exhibit U
|
Payment Schedules
|
|
|
U.2
|
Accelerated Payment Schedule
|
|
Exhibit V
|
Form of Application for Payment
|
|
Exhibit W
|
Supplier’s Account Information
|
|
Exhibit X
|
Form of Change Order
|
|
Exhibit Y
|
Form of Escrow Agreement
|
|
Exhibit Z
|
Insurance Requirements
|
|
Exhibit AA
|
Form of Supplier MSA Parent Guaranty
|
|
Exhibit BB
|
Form of Letter of Credit
|
|
Exhibit CC
|
Form of Buyer MSA Parent Guaranty
|
|
Exhibit DD
|
Site Review Criteria
|
|
Exhibit EE
|
Initial Proposed Redactions
|
|
Exhibit FF
|
Supplier’s Standard Rate
Schedule
|
MASTER SUPPLY
AGREEMENT
This MASTER SUPPLY AGREEMENT
(hereinafter this “ Agreement ”) is entered into
this 1 st day of June, 2008 (the “ Effective
Date ”), between Vestas-American Wind Technology, Inc., a
California corporation (hereinafter “ Supplier ”
or “ Vestas ”), and Alliant Energy Corporate
Services, Inc., as agent for Interstate Power and Light Company, an
Iowa corporation, and Wisconsin Power and Light Company, a
Wisconsin corporation (hereinafter “ Buyer ”).
Supplier and Buyer are referred to individually herein as a “
Party ” and collectively as the “ Parties
.”
RECITALS:
|
A.
|
WHEREAS, Supplier, either directly
or through Affiliates, is engaged in the business of manufacturing
and delivering wind power plant equipment and parts and providing
related services.
|
|
B.
|
WHEREAS, Buyer, either directly or
through Owners, is developing wind power generation
facilities.
|
|
C.
|
WHEREAS, Buyer wishes to secure a
firm commitment from Supplier for (a) the supply of designated
quantities of wind turbine generator sets and related equipment to
be installed in various projects Buyer intends to develop and
(b) related services.
|
|
D.
|
WHEREAS, Supplier wishes to secure a
firm commitment from Buyer for the purchase of (a) such
designated quantities of wind turbine generator sets and related
equipment and (b) related services.
|
NOW, THEREFORE, in consideration of
the mutual covenants herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto, intending to be legally bound
hereby, agree as follows:
ARTICLE 1.
DEFINITIONS AND RULES OF
INTERPRETATION
1.1
Definitions . Initially-capitalized terms used in this
Agreement (including the preamble and Recitals hereto) and not
otherwise defined herein shall have the meanings specified
below:
“ AAA ” has the
meaning set forth in Section 18.2 .
“ Acceptable Bank
” shall mean (i) an organization that is a “bank”
within the meaning of Section 9-102(a)(8) of the New York Uniform
Commercial Code, incorporated or otherwise organized and doing
business within the United States, having a Credit Rating on the
date of issuance of the Payment Letter of Credit, and thereafter at
all times until the Payment Letter of Credit is no longer required,
of at least ______ * by Standard & Poor’s and
_____ * by Moody’s (and in each case not on credit
watch for a possible downgrade below such levels), that is
acceptable to the appropriate credit, risk or other approval
committees or officers of Supplier, that is not a wind turbine
manufacturer or an Affiliate of a wind turbine manufacturer and
that is not involved in any litigation, dispute or arbitration
proceeding between Supplier, on the one hand, and such Acceptable
Bank, on the other hand, or (ii) such other Person that is
acceptable to Supplier in its sole discretion.
“ Acceptable Site
Review ” means a Standard Unqualified Site Review, a
Standard Qualified Site Review, or a Conditional Site Review with
Project Document Modifications, as applicable, accepted by the
Designated Owner.
“ Action ” has
the meaning set forth in Section 8.7 .
“ Actual Hedge Rate
” has the meaning set forth in Section 4.6.1
.
“ Actual Hedging Date
” has the meaning set forth in Section 4.6.1
.
“ Adjustable Portion
” has the meaning set forth in Section 4.2
.
“ Advanced Grid Option
” means the integrated turbine system solution that provides
low voltage ride through, as more particularly described in
Exhibit D.1.4 to the form of Supply Agreement.
“ Affiliate ”
means, as to a specified Person, any other Person that directly, or
indirectly through one or more intermediaries, controls or is
controlled by or is under common control with the Person in
question. For the purposes of this definition, the concept of
“control,” when used with respect to any specified
Person, shall signify the possession of the power to direct the
management and policies of such Person, whether through the
ownership of voting securities or partnership or other ownership
interests.
“ Aggregate Base Price
” means the aggregate of the Base Prices for all of the Wind
Turbines, and includes (i) ____ * SCADA System servers
and (ii) ____ * containers of Lifting and Rigging
Equipment, and is set forth in the Payment Schedule.
“ Agreement ” has
the meaning set forth in the preamble hereto.
“ Alternate Delivery
Location ” means a Buyer Alternate Delivery Location or a
Supplier Alternate Delivery Location, as applicable.
“ Annual Fee ”
has the meaning set forth in the applicable Service
Agreement.
“ Annual Fee Parameters
” means the parameters set forth in Exhibit T , as may
be adjusted in accordance with Project Document
Modifications.
” Anticipated Delivery
Date ” means the anticipated date for Delivery of the
Wind Turbines within the applicable Group of Wind Turbines to the
Assumed Delivery Point set forth on Exhibit A.1 ,
A.2 A.3 , as applicable, as the same may be
adjusted pursuant to Section 6.1.1(ii) or Article 10
.
“ Anticipated Hedging
Date ” means (i) with respect to the Group 1 Wind
Turbines and the Group 2 Wind Turbines, the first Business Day
immediately following Supplier’s receipt of the payment due
under Section 4.3.1 , and (ii) with respect to the Group 3
Wind Turbines, the Business Day designated by Buyer as the date on
which Buyer wishes to hedge the Adjustable Portion of the Group 3
Base Price in a written notice delivered to Supplier, which date
shall be no earlier than fourteen (14) days after the date such
notice is delivered to Supplier and no later than twenty one (21)
days before the payment under Section 4.3.3(i) is due for
the Group 3 Wind Turbines.
“ Applicable Laws
” means, with respect to each Party, all laws, codes,
ordinances, statutes, rules, regulations, orders, decrees,
judgments, injunctions, notices or binding agreements promulgated
or entered into by any Governmental Authority having jurisdiction
over such Party, the Project or such Party’s obligations
under this Agreement, as the same may be modified, amended or
repealed from time to time.
“ Application for
Payment ” has the meaning set forth in Section
4.8.1 .
“ Approved Major
Subcontractor ” means a Person identified in Exhibit
J .
“ Arbitration Notice
” has the meaning set forth in Section 18.2
.
“ Assign ” or
“ Assignment ” means (i) an assignment, transfer
or pledge of this Agreement, whether such assignment, transfer or
pledge is by operation of law or otherwise, and (ii) a Change in
Control of a Party.
“ Assignee ”
means (i) the Person to whom this Agreement is transferred, whether
by Assignment, transfer, pledge or succession by operation of law
or otherwise, or (ii) the Person who acquired control of a Party
pursuant to a Change in Control of such Party.
“ Assumed Delivery
Point ” means the location or locations in Franklin
County, Iowa for any Group of Wind Turbines for which IPL is the
Designated Owner and the location or locations in Freeborn County,
Minnesota for any Group of Wind Turbines for which WPL is the
Designated Owner, as designated by Buyer, complying with the
Storage Requirements to allow the Turbine Equipment to be stored in
accordance with the Storage Instructions.
“ Assumed Hedging Rate
” has the meaning set forth in Section 4.3.1
.
“ Availability
Covenants ” means the obligations of Supplier described
in Section 2.3 to the form of Service Agreement and Exhibit D to
the form of Service Agreement.
“ Bank Credit Downgrade
Event ” means that the Credit Rating of an Acceptable
Bank that provided a Payment Letter of Credit falls below the
minimum required levels specified therefor or an Acceptable Bank is
placed on credit watch for a possible downgrade below the minimum
levels specified therefor.
“ Base Price ”
has the meaning set forth in Section 4.1 and is set
forth in the Payment Schedule.
“ Blade Set ”
means a complete set of three (3) blades for a Wind
Turbine.
“ Business Day ”
means every day other than a Saturday, Sunday or a day on which
banks are required or authorized by law or executive order to close
in the State of Oregon, the State of New York, the State in which
the Delivery Point is located, or, with respect to Section
4.6 only, the Kingdom of Denmark.
“ Buyer ” has the
meaning set forth in the preamble to this Agreement.
“ Buyer Alternate Delivery
Location ” means the delivery location selected by Buyer
in accordance with Section 6.1.1 that complies with
Exhibit K (the Storage Requirements) to allow the Turbine
Equipment to be stored in accordance with Exhibit L (the
Storage Instructions) and permits Supplier to Deliver the relevant
Turbine Equipment through the railhead at Calmar, Iowa.
“ Buyer Data ”
has the meaning set forth in Section 8.6.2 .
“ Buyer Event of
Default ” has the meaning set forth in
Section 16.2 .
“ Buyer Indemnified
Party ” has the meaning set forth in Section 17.2
.
“ Buyer Intellectual
Property ” has the meaning set forth in Section
17.7.1 .
“ Buyer MSA Parent
Guaranty ” means a parent guaranty executed by Buyer
Parent for the benefit of Supplier, which parent guaranty shall be
substantially in the form of Exhibit CC .
“ Buyer Parent ”
means Alliant Energy Corporation, a Wisconsin
corporation.
“ Buyer Permits ”
has the meaning set forth in Section 7.6 .
“ Buyer Responsible
Party ” means Buyer, its subcontractors, or any Person or
entity directly employed by any of them, or any Person or entity
for whose acts any of them is liable.
“ Buyer’s Manager
” has the meaning set forth in Section 7.5
.
“ Change in Control
” means, with respect to a Party, a transaction or series of
transactions where the Persons who hold fifty percent (50%) or more
of the equity ownership of a Party or have the power to direct the
management and policies of such Party prior to such transaction or
series of transactions cease to hold fifty percent (50%) or more of
the equity ownership of such Party or have the power to direct the
management and policies of such Party as a result of such
transaction or series of transactions.
“ Change in Law ”
means, (A) after the Effective Date, the enactment, adoption,
promulgation, modification or repeal of any Applicable Law; or (B)
the imposition of any material conditions on the issuance or
renewal of any applicable Permit after the Effective Date
(notwithstanding the general requirements contained in any
applicable Permit at the time of application or issue to comply
with future laws, ordinances, codes, rules, regulations or similar
legislation).
“ Change Order ”
has the meaning set forth in Section 10.1 .
“ Change Order
Information ” has the meaning set forth in Section
10.2 .
“ Climatic Data Sheet
” has the meaning set forth in the applicable Supply
Agreement.
“ Commissioning ”
means the Supplier's performance of certain activities listed on
the applicable commissioning completion checklist under the
applicable Supply Agreement.
“ Component ”
means a Turbine Nacelle, blade, Hub or Tower section, as
applicable.
“ Conditional Site
Review ” has the meaning set forth in
Section 3.4.2 .
“ Confidential
Information ” has the meaning set forth in Section
13.1.1 .
“ Credit Rating ”
means, for any Person, the long-term corporate credit rating or the
unsecured, senior long term and unenhanced debt rating of such
Person, as given by Standard & Poor’s or Moody’s,
as applicable.
“ Delayed Commissioning
Completion Certificate ” means a certificate in the form
of Exhibit O that is delivered in accordance with Section
4.3.3(iv) .
“ Delayed Final Completion
Certificate ” means a certificate in the form of
Exhibit Q that is delivered in accordance with Section
4.3.3(vi) .
“ Delayed Project Documents
Execution Certificate ” means a certificate in the form
of Exhibit N that is delivered in accordance with Section
4.3.3(i) .
“ Delayed SCADA Completion
Certificate ” means a certificate in the form of
Exhibit R that is delivered in accordance with Section
4.3.3(vii) .
“ Delayed Substantial
Completion Certificate ” means a certificate in the form
of Exhibit P that is delivered in accordance with Section
4.3.3(v) .
“ Deliver ”,
“ Delivered ” or “ Delivery ”
means that Supplier has transported the relevant portion of the
Turbine Equipment to the Delivery Point and (i) in the case of
transportation to the Assumed Delivery Point or the Buyer Alternate
Delivery Location, has made such Turbine Equipment available for
offloading or (ii) in the case of transportation to the Supplier
Alternate Delivery Location, has offloaded such Turbine
Equipment.
“ Delivery Certificate
” means a certificate in the form of Exhibit I that is
delivered in accordance with Section 6.1.2 .
“ Delivery Delay Liquidated
Damages ” has the meaning set forth in Section
6.5.2 .
“ Delivery Devices
” means the parts container, the Hub stands, the nootebooms,
the frames and racks for the blades and Turbine Nacelles, Tower
feet, transport stands and such other items listed on Exhibit
M .
“ Delivery Point
” means, as determined in accordance with Section
6.1.1 , (i) the Assumed Delivery Point, (ii) an Alternate
Delivery Location, (iii) a Site Delivery Point or (iv) any other
location mutually agreed to in writing by the Parties after the
Effective Date.
“ Designated Owner
” means the applicable Owner that Buyer has designated in
writing as being the Person that will take title to the applicable
Group of Wind Turbines. As of the Effective Date, IPL is the
Designated Owner of the Group 1 Wind Turbines and WPL is the
Designated Owner of the Group 2 Wind Turbines and the Group 3 Wind
Turbines; provided that Buyer has the right to reallocate the
Groups of Wind Turbines, in whole or in part, among WPL and
IPL.
“ Designated Owner 1
st Credit Downgrade Event ” means the (a)
Credit Rating, by Standard & Poor’s or Moody’s, of
the relevant Designated Owner falls by two ratings below such
Designated Owner’s Credit Rating on the Effective Date but
remains above BBB- by Standard & Poor’s and Baa3 by
Moody’s, or (b) such Designated Owner is placed on credit
watch for a possible downgrade that would result in such Designated
Owner’s Credit Rating falling by two ratings below such
Designated Owner’s Credit Rating on the Effective
Date.
“ Designated Owner 2
nd Credit Downgrade Event ” means the Credit
Rating of the relevant Designated Owner falls such that it is at or
below BBB- by Standard & Poor’s or Baa3 by Moody’s
or such Designated Owner is placed on credit watch for a possible
downgrade below such minimum levels.
“ Disclosing Party
” has the meaning set forth in Section 13.1.1
.
“ Dispute ” has
the meaning set forth in Section 18.1 .
“ Dollar ” or
“ $ ” means a dollar of the U.S.
“ Effective Date
” has the meaning set forth in the preamble
hereto.
“ Environmental Laws
” means all Applicable Laws relating in any way to the
environment, preservation or reclamation of natural resources, the
management, environmental release or threatened environmental
release of any Hazardous Substance or to health and safety matters,
including the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, 42 U.S.C. §§ 9601 et
seq. as amended by the Superfund Amendments and
Reauthorization Act of 1986; the Resource Conservation and Recovery
Act, as the same may be amended from time to time, 42 U.S.C.
§§ 6901 et seq. ; the Federal Water
Pollution Control Act, 33 U.S.C. §§ 1251 et
seq. ; the Toxic Substances Control Act, 15 U.S.C.
§§ 2601 et seq. ; the Clean Air Act, 42
U.S.C. §§ 7401 et seq .; the Clean Water
Act, 33 U.S.C. §1251 et seq. ; the Safe Drinking
Water Act, 42 U.S.C. §§ 3803 et seq. ; the
Oil Pollution Act of 1990, 33 U.S.C. §§ 2701 et
seq. ; the Emergency Planning and the Community
Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et
seq. ; the Hazardous Material Transportation Act, 49 U.S.C.
§§ 1801 et seq .; the Uranium Mill Tailings
Radiation Control Act, 42 U.S.C. §7901 et seq ;
the Federal Insecticide, Fungicide and Rodenticide Act, 7 §
U.S.C. 4901 et seq ; the National Environmental
Policy Act, 42 U.S.C. §4321 et seq; the Noise Control Act, 42
U.S.C. §4901 et seq ; and the Occupational
Safety and Health Act, 29 U.S.C. §§ 651 et
seq. ; and the amendments, regulations, orders, decrees,
permits, licenses or deed restrictions now or hereafter promulgated
thereunder and any state and local counterparts or equivalents, in
each case as amended from time to time.
“ EPT ” means
Eastern Prevailing Time.
“ Equipment Options
Notice ” means a written notice substantially in the form
of Exhibit B that is delivered in accordance with Section
3.2 .
“ Equipment Options Notice
Outside Date ” means (i) with respect to the Group 1 Wind
Turbines, the earlier of (a) the execution date of the Project
Documents for the Group 1 Wind Turbines, or (b) June 2, 2008 and
(ii) with respect to the Group 2 Wind Turbines and the Group 3 Wind
Turbines, the date that is ____ * months prior to the
first Guaranteed Delivery Date for the relevant Group of Wind
Turbines.
“ Equipment Supply
Obligations ” has the meaning set forth in the form of
Turbine Supply Agreement.
“ Escrow Agreement
” means the documentary escrow agreement between and among
Supplier, Buyer, Supplier Parent and Germanischer Lloyd Industrial
Services GmbH or such other escrow agent as is mutually acceptable
to Supplier, Supplier Parent and Buyer, substantially in the form
of Exhibit Y and executed and delivered in accordance with
Section 6.4.2 .
“ Euro ” or
“ € ”means the single lawful currency of
the participating member states of the European Union.
“ Event of Default
” means either a Buyer Event of Default or a Supplier Event
of Default, as applicable.
“ Ex Works ”
means, with respect to any Component of Turbine Equipment, such
Component of Turbine Equipment has been completely manufactured and
assembled (except to the extent further assembly thereof on the
Project Site is contemplated by the Technical Specifications or the
form of Supply Agreement) and loaded for transportation from
Supplier’s or the applicable Vendor’s manufacturing
facilities to the Delivery Point.
“ Ex Works Certificate
” means a certificate in the form of Exhibit H that is
delivered in accordance with Section 4.3.3(ii) .
“ Excusable Event
” has the meaning set forth in Section 9.1
.
“ Existing Master
Agreements ” means those “frame agreements”
and “master purchase agreements” in effect on the
Effective Date between Supplier and any Subcontractor or Vendor
pursuant to which Supplier may purchase all or a portion of the
Turbine Equipment or perform all or a part of Supplier’s
obligations hereunder pursuant to purchase orders, including the
“frame agreement” between Supplier and Supplier Parent
respecting, among other things, an exclusive distribution license
to sell wind turbines in North America.
“ Force Majeure Event
” means any event which is not within the reasonable control
of the Party affected, and with the exercise of due diligence,
could not reasonably be prevented, avoided or removed by such
Party, and does not result from such Party’s negligence or
the negligence of its agents, employees or subcontractors, which
causes the Party claiming that a Force Majeure Event occurred to be
delayed, in whole or in part, or unable, to partially or wholly
perform its obligations under this Agreement (other than a lack of
funds or finances) or that damages (or is reasonably expected to
damage) equipment, including: natural disasters; landslides;
drought; fire; flood; extreme weather conditions, including those
affecting visibility; earthquake; lightning; hail; hurricanes;
tornados; tsunamis; ice and ice storms; perils of sea; volcanic
activity; epidemic; war (whether declared or undeclared) or other
armed conflict; acts of God or the public enemy; riot; explosions;
civil disturbance; sabotage; strikes, lockouts or labor disputes
(except for strikes, lockouts or labor disputes isolated to the
Party claiming a Force Majeure Event); vandalism; terrorism or
documented threats of terrorism; action, ruling, decree or
injunction of a Governmental Authority; seasonal or weather based
road restrictions as issued by any Governmental Authority;
blockades; accidents in shipping or transportation (but solely to
the extent such accident would itself be a Force Majeure Event if
the Person shipping or transporting were a party hereto); and the
closing of or congestion (beyond reasonably foreseeable levels) in
any harbor, dock, port, canal or area adjunct thereto. Force
Majeure Events include the failure of a contractor, subcontractor
or supplier to furnish labor, services, materials or equipment in
accordance with its contractual obligations (but solely to the
extent such failure is itself due to a Force Majeure Event). Force
Majeure Events shall not include (a) a Party’s financial
inability to perform under this Agreement, (b) a failure of
equipment except if caused by a Force Majeure Event, (c)
unavailability of replacement or spare parts except if caused by a
Force Majeure Event, (d) sabotage by employees or any contractors,
subcontractors or suppliers of the Party claiming the Force Majeure
Event, or (e) Buyer’s failure to obtain or maintain a Permit
that impacts Supplier’s obligations hereunder.
“ Fuel Price ”
means the _____ * -day rolling average price of bunker
fuel IFO380 in Rotterdam as published on the web site
www.bunkerworld.com/markets/prices/nl_rtm_____ *
.html (or if such price shall cease to be published, such other
price as may be reasonably agreed by Buyer and
Supplier).
“ Fuel Price _____
* ” means the Fuel Price for the _____
* day period ending on _____ * , being $_____
* per metric ton.
“ Fuel Price ______
* ” means the Fuel Price for the last _____
* -day period for which the Fuel Price is published on
the Business Day immediately preceding _____ *
.
“ Governmental
Authority ” means any federal, state, local, municipal or
other governmental, regulatory, administrative, judicial, public or
statutory instrumentality, court or governmental tribunal, agency,
commission, authority, body or entity, or any political subdivision
thereof, having legal jurisdiction over the matter or Person in
question.
“ Group 1 Base Price
” means the sum of the Base Prices of the Group 1 Wind
Turbines.
“ Group 1 Wind Turbines
” means the one hundred twenty-one (121) Wind Turbines with
the Guaranteed Delivery Dates set forth in Exhibit A.1 , the
one (1) SCADA System associated with such Wind Turbines and one (1)
set of Lifting and Rigging Tools for use with construction of such
Wind Turbines in accordance with a Turbine Supply
Agreement.
“ Group 2 Base Price
” means the sum of the Base Prices of the Group 2 Wind
Turbines.
“ Group 2 Wind Turbines
” means the one hundred twenty-two (122) Wind Turbines with
Guaranteed Delivery Dates set forth in Exhibit A.2 , the one
(1) SCADA System associated with such Wind Turbines and one (1) set
of Lifting and Rigging Tools for use with construction of such Wind
Turbines in accordance with a Turbine Supply Agreement.
“ Group 3 Base Price
” means the sum of the Base Prices of the Group 3 Wind
Turbines.
“ Group 3 Wind Turbines
” means the sixty (60) Wind Turbines with Guaranteed Delivery
Dates set forth in Exhibit A.3 , the one (1) SCADA System
associated with such Wind Turbines and one (1) set of Lifting and
Rigging Tools for use with construction of such Wind Turbines in
accordance with a Turbine Supply Agreement.
“ Group Base Price
” means the Group 1 Base Price, the Group 2 Base Price or the
Group 3 Base Price, as applicable.
“ Group Maximum
Liability ” means the applicable Group Base Price
plus (or minus ) the amount of the fuel and steel
price adjustments described in Section 4.7 plus any
additional amounts payable with respect to any Change Orders issued
for the relevant Group of Wind Turbines plus the price of
any Optional Equipment purchased pursuant to this Agreement for the
relevant Group of Wind Turbines.
“ Group of Wind
Turbines ” means the Group 1 Wind Turbines, the Group 2
Wind Turbines or the Group 3 Wind Turbines, as
applicable.
“ Guaranteed Delivery
Dates ” means the guaranteed dates for Delivery of the
Wind Turbines within the applicable Group of Wind Turbines to the
Assumed Delivery Point set forth on Exhibit A.1 , A.2
A.3 , as applicable, as the same may be adjusted pursuant to
Section 6.1.1(ii) or Article 10 .
“ Hazardous Substances
” means all explosive or radioactive substances and all
hazardous or toxic substances, wastes, emissions, or other
pollutants, including petroleum or petroleum distillates, waste,
product or related materials, asbestos or asbestos containing
materials, polychlorinated biphenyls, radioactive chemicals,
chemicals known or suspected to cause cancer or reproductive
toxicity, radon gas, infectious or medical wastes and all other
substances, pollutants or wastes of any nature regulated pursuant
to any Environmental Law.
“ Hedging Bank ”
means any internationally recognized bank of good reputation, as
may be reasonably selected by Supplier.
“ Hub ” means the
hub of a Wind Turbine to which the blades are attached as described
in Exhibit D of the applicable form of Supply
Agreement.
“ INCOTERMS 2000
” means the International Rules for the Interpretation of
Trade Terms as prepared by the International Chamber of Commerce
and as may be amended, supplemented or replaced from time to
time.
“ Indemnified Party
” has the meaning set forth in Section 17.5
.
“ Indemnifying Party
” has the meaning set forth in Section 17.5
.
“ Independent Engineer
” means Global Energy Concepts or, if Global Energy Concepts
is unavailable, Garrad Hassan, or if neither such Persons are
available, such other independent engineer agreed by the
Parties.
“ Infringement Claim
Costs ” means any and all judgments, damages, fines,
awards, penalties and interest associated with any of the
foregoing, that, in each case, are finally awarded in a claim for
which an Indemnifying Party is obligated to indemnify an
Indemnified Party under Sections 17.6 or 17.7 , and
costs and expenses, including reasonable attorneys’ fees,
court costs and other reasonable costs of bonds, suit, arbitration,
dispute resolution or other similar proceedings associated with
defending such claim.
“ Initial Down Payment
” means the payment made by Buyer pursuant to Section
4.3.1 .
“ Installation Services
” means, for any Project, the assembly, erection and
installation of the Wind Turbines at the Project Site by Supplier
or a subcontractor of Supplier, all as more particularly described
in the form of Turbine Supply and Installation
Agreement.
“ Intellectual Property
” means all (i) recognized protectable intellectual property
existing from time to time under any laws or regulations, including
patents, copyrights, copyrightable works, corporate names, logos,
slogans, trade names, trademarks, trade dress, service marks,
applications for any of the foregoing, software, firmware, trade
secrets, mask works, industrial design rights, rights of priority,
know how, design flows, methodologies and any and all intangible
protectable proprietary information that is legally recognized and
(ii) algorithms, designs, drawings, formulae, know-how, ideas,
concepts, inventions, plans, processes, software, techniques,
tools, trade secrets, hardware, works of authorship, and other
technology, whether or not protectable by any form of intellectual
property rights. Supplier’s Intellectual Property includes
(i) all patents issued to Supplier, Supplier Parent or their
Affiliates, in any country including supplemental protection
certificates that have issued or in the future issue from any of
the foregoing and utility models, design patents and certificates
of invention, (ii) all patent applications filed by Supplier,
Supplier Parent or their Affiliates in any country, (iii) all
divisionals, substitutes, continuations, continuations-in-part,
reissues, re-examination certificates, renewals, extension or
additions to any such patents and patent applications (as
applicable), (iv) any other patents and industrial designs, as well
as applications with respect to the same, developed by Supplier,
Supplier Parent, or their Affiliates, (v) any confidential trade
secrets related to research, development, design, construction,
manufacturing, financing, logistics, erection, running,
maintenance, repair, dismantling of Turbine Equipment and wind
power technology developed by Supplier, Supplier Parent, or their
Affiliates, (vi) any software contained or embedded in the Turbine
Equipment and (vii) any standalone software developed by Supplier,
Supplier Parent or their Affiliates.
“ Interim Service Fee
” has the meaning set forth in the applicable Service
Agreement.
“ IPL ” means
Interstate Power and Light Company, an Affiliate of
Buyer.
“ License ” has
the meaning set forth in Section 8.1 .
“ Licensed Patents
” means, collectively, the following patents that are issued
to Supplier, Supplier Parent or any of their Affiliates and that
would necessarily be infringed by the use, offer, sale,
remanufacture, maintenance, or importation of any part of the
Turbine Equipment, as permitted and contemplated herein: (a) all
patents issued in the Territory as of the Effective Date, (b) any
patents that issue from patent applications in the Territory
pending as of, or filed after, the Effective Date and (c) any
continuations, continuations in part, divisions, reissues, and all
patents issuing therefrom.
“ Licensed Technology
” means, collectively, all of the following owned by
Supplier, Supplier Parent or their Affiliates: (a) training
processes and the contents of any manuals, use instructions and
other documentation relating to the Turbine Equipment provided to
Buyer, (b) the Licensed Patents and the technology defined by the
claims of the Licensed Patents, (c) software and firmware embedded
in or integrated with the Turbine Equipment, including the SCADA
System, (d) the Technical Specifications, (e) any other trade
secrets, proprietary information and know-how provided or disclosed
by Supplier for Buyer’s use under this Agreement and (f) any
improvements of or updates to any of the foregoing provided to
Buyer.
“ Lien ” means,
with respect to any property or asset, any mortgage, deed of trust,
lien, pledge, charge, security interest, or encumbrance of any kind
in respect of such asset, whether or not filed, recorded or
otherwise perfected or effective under Applicable Law, as well as
the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement
relating to such asset.
“ Lift Assist Device
” means a climbing aid for vertical ladders, as more
particularly described in Exhibit D.6.2 to the form of
Supply Agreement.
“ Lifting and Rigging
Equipment ” means the equipment to be set forth on
Exhibit A.5 to the applicable Turbine Supply
Agreement.
“ Local Roads ”
means those roads starting (a) after the end of the last publicly
maintained road with a load bearing capacity of at least 20,000 lbs
per axle that is closest to the relevant Project Site or (b)
immediately before the first intervening, unavoidable bridge, en
route to the Project Site that does not have a load bearing
capacity of at least 20,000 lbs per axle.
“ Losses ” means
claims, judgments, demands, damages, fines, losses, liabilities,
offsets, interest, awards, penalties and costs and expenses,
including reasonable attorneys’ fees, court costs and other
reasonable costs of suit, administrative proceedings,
administrative investigations, litigation, arbitration, dispute
resolution or other similar proceedings.
“ Low Temperature
Package ” means the arctic specification for a Wind
Turbine, as more particularly described in Exhibit D.1.6 to
the form of Supply Agreement.
“ Major Subcontract
” means any agreement with a Subcontractor to perform any
components of Supplier’s obligations hereunder the cost of
which, under the relevant Subcontract, exceeds $_____ *
.
“ Maximum Level ”
has the meaning set forth in Section 4.6.1 .
“ Maximum Liability
” means the Aggregate Base Price plus any additional
amounts payable with respect to any Change Orders issued for the
relevant Group of Wind Turbines plus the price of any
Optional Equipment purchased pursuant to this Agreement for the
relevant Group of Wind Turbines plus (or minus ) the
amount of the fuel and steel price adjustments described in
Section 4.7 less the aggregate of the Project
Contract Prices for the Projects for which Project Documents have
been executed and delivered.
“ Moody’s ”
means Moody's Investor Services Inc.
“ Nominated Wind
Turbines ” has the meaning set forth in Exhibit O
to the applicable Supply Agreement.
“ Operating Manual
” has the meaning set forth in the form of Turbine Supply
Agreement.
“ Optional Equipment
” means the optional equipment for the Turbine Equipment set
forth on Exhibit B .
“ Overpayment ”
has the meaning set forth in Section 6.5.4 .
“ Owner ” means
(i) Wisconsin Power and Light Company, (ii) Interstate Power and
Light Company or (iii) any Person reasonably approved by Supplier
that is an Affiliate of Buyer and owns a Project; provided that in
no event shall Owner be a wind turbine manufacturer or an Affiliate
of a wind turbine manufacturer.
“ Party ” or
“ Parties ” has the meaning set forth in the
preamble hereto.
“ Party Representative
” or “ Parties’ Representatives ”
has the meaning set forth in Section 18.1 .
“ Payment Letter of
Credit ” means one or more standby payment letter(s) of
credit, substantially in the form of Exhibit BB and
otherwise in form and substance reasonably acceptable to Supplier
and Buyer, issued for the benefit of Supplier by an Acceptable Bank
and which (i) permits the beneficiary thereof to assign or
otherwise transfer its interest without the consent of such
Acceptable Bank, (ii) are drawable in full if not renewed or
replaced with a letter of credit in substantially the same form as
the Payment Letter of Credit at least twenty one (21) days prior to
its expiry unless such expiration date is more than twenty one (21)
days after Buyer is scheduled to make its final payment of the
relevant Group Base Price, (iii) have collectively, at all times, a
stated amount of not less than the Payment Security Amount, (iv)
are payable and drawable at an office of such issuing bank in New
York City, or location otherwise reasonably acceptable to Supplier,
(v) are payable in immediately available funds in Dollars and,
unless Supplier hedges the Adjustable Portion in accordance with
Section 4.6 , Euros and (vi) are governed by the Uniform
Customs and Practice for Documentary Credits (2007) Revision
International Chamber of Commerce Publication No. 600, or by
subsequent Uniform Customs and Practice fixed by subsequent
Congresses of the International Chamber of Commerce, and any
amendments or additions thereto, and, to the extent not governed
thereby, the laws of the State of New York.
“ Payment Schedule
” means the payment schedule set forth in Exhibit U.1
or, if the terms and conditions set forth in Section 4.13.1
are applicable, the accelerated payment schedule set forth in
Exhibit U.2 .
“ Payment Security
” means (i) the executed Buyer MSA Parent Guaranty, or (ii)
if Buyer Parent Credit Rating is less than investment grade, the
Payment Letter of Credit.
“ Payment Security
Amount ” means the lesser of (i) the then-outstanding
amount of the applicable Group Base Price plus any amounts past due
for the applicable Group of Wind Turbines under Section 4.7
or (ii) the amount of the applicable Group Base Price payable for
all payments due after Ex Works plus any amounts past due for the
applicable Group of Wind Turbines under Section 4.7
.
“ Permits ” means
any valid waiver, exemption, variance, franchise, permit,
authorization, license or similar order of or from, or filing or
registration with, or notice to, any Governmental Authority having
jurisdiction over the matter in question.
“ Person ” means
any individual, corporation, partnership, limited liability
company, association, joint stock company, trust, unincorporated
organization, joint venture, governmental or political subdivision
or agency thereof.
“ Prime Rate ”
means the base rate on corporate loans posted by at least 75% of
the nation's 30 largest banks, also known as the “prime
rate,” as published in the Wall Street Journal on the
last Business Day of the most recent calendar month.
“ Project ” means
a single wind power generation facility at which Supplier shall
Commission the Turbine Equipment pursuant to a Supply
Agreement.
“ Project Base Price
” has the meaning set forth in Section 4.1
.
“ Project Contract
Price ” means the total contract price to be calculated
for a Project based on the designated Equipment Supply Obligations
or Work, as applicable, for a Project, to include the Project Base
Price, plus , in each of the following cases, if applicable,
(i) the price applicable to Optional Equipment, (ii) the price
applicable to the Installation Services, (iii) the price applicable
to the Transportation Services, (iv) the prices applicable to any
SCADA System in excess of the amounts included in the Aggregate
Base Price, (v) the prices applicable to any Lifting and Rigging
Equipment in excess of the amounts included in the Aggregate Base
Price, and (vi) any amounts payable for Taxes pursuant to
Section 4.11 less , if applicable, any amounts
payable pursuant to Section 6.5 .
“ Project Document
Modifications ” has the meaning set forth in Section
3.4.2 .
“ Project Documents
” means, for each Project, (i) the Turbine Supply Agreement
or the Turbine Supply and Installation Agreement, as applicable,
and (ii) the Service Agreement.
“ Project Documents
Commencement Date ” means, for any Project, (i) if
Supplier will not be providing Installation Services, not less than
_____ * months following execution and delivery by
Supplier and the Designated Owner of the Project Documents and (ii)
if Supplier will be providing Installation Services, not less than
_____ * months following execution and delivery by
Supplier and the Designated Owner of the Project Documents;
provided that if Project Documents for the Proposed Group 1
Project are executed on or before June 30, 2008, the Project
Documents Commencement Date for the Proposed Group 1 Project shall
be the first Guaranteed Delivery Date for the Group 1 Wind Turbines
or such other date as may be agreed by the Parties prior to the
execution of Project Documents.
“ Project Notice
” means a written notice substantially in the form of
Exhibit C that is delivered in accordance with Section
3.3 .
“ Project Site ”
means all those parcels of land subject to the Real Property Rights
in favor of the Designated Owner on which a Project shall be
located, as more particularly described in the applicable Supply
Agreement.
“ Project Site Data
” means all data relating to the Project Site that is
gathered or prepared by or on behalf of Buyer or the Designated
Owner and provided to Supplier, including (a) the information
contemplated in Exhibit H to the applicable form of Supply
Agreement, (b) complete wind resource and relevant site data
(including the topographic characteristics of the Project Site),
(c) a summary of historical climatic conditions at the Project Site
available to Buyer for the Project Site, including a one-year wind
data series with ten (10) minute statistics from a representative
position on the Project Site, (d) a complete set of the data
required for the Climatic Data Sheet, (e) a wind rose and data on
extreme wind and turbulence conditions and (f) any other
information supplied by Buyer and utilized by Supplier in making
its determination with respect to Project Specific Operational
Requirements.
“ Project Specific
Operational Requirements ” means any Wind Turbine
operational requirements or limitations that Buyer would have to
comply with in order for Supplier to provide the Warranties and the
Availability Covenants for the relevant Project determined in
accordance with the Site Review Criteria.
“ Proposed Group 1
Project ” means the proposed project at which all of the
Group 1 Wind Turbines will be erected and installed located in
Franklin County, Iowa and more commonly known as “Whispering
Willow”.
“ Prudent Wind Industry
Practices ” means, in connection with the design,
construction and unloading of components, with respect to Buyer,
and the supply, servicing, transportation, and unloading of
components, with respect to Supplier, for wind power generation
systems of the type and size and having geographical attributes
similar to the Projects contemplated hereunder, those practices,
methods, specifications and standards of safety, performance,
dependability, efficiency and economy generally recognized by
industry members in the U.S. as good and proper, and such other
practices, methods or acts which, in the exercise of reasonable
judgment by those reasonably experienced in the industry in light
of the facts known at the time a decision is made, would be
expected to accomplish the result intended at a reasonable cost and
consistent with Applicable Laws, reliability, safety and
expedition. Prudent Wind Industry Practices are not intended to be
limited to the optimum practices, methods or acts to the exclusion
of all others, but rather to be a spectrum of good and proper
practices, methods and acts.
“ Real Property Rights
” means all rights in or to real property, including leases,
agreements for use or access, Permits, easements, licenses, rights
of way, and utility and railroad crossing rights required to be
obtained or maintained in connection with the Delivery of the
Turbine Equipment to the Assumed Delivery Point or the Buyer
Alternate Delivery Location.
“ Receiving Party
” has the meaning set forth in Section 13.1.1
.
“ Reference Documents
” has the meaning set forth in the form of Service
Agreement.
“ Representative
Agreement ” means any confidentiality, non-disclosure or
similar agreement between Buyer or its Affiliates and any third
party with respect to Confidential Information.
“ Rules ” has the
meaning set forth in Section 18.2 .
“ Sales Taxes ”
means all applicable sales, use, gross receipts, services or
similar taxes (including any and all items of withholding,
deficiency, penalty, interest, or assessment related thereto)
imposed by any Governmental Authority in connection with the
purchase of the Turbine Equipment or the performance of
Supplier’s other obligations under this Agreement.
“ SCADA System ”
means the remote control and monitoring system for the Wind
Turbines, as more particularly described in
Exhibit D.2.1 to the applicable form of Supply
Agreement.
“ Service Agreement
” means a Service and Maintenance Agreement substantially in
the form attached hereto as Exhibit F , as may be adjusted
in accordance with Project Document Modifications.
“ Service Lift ”
means the service lift located inside the Tower of a Wind Turbine,
as more particularly described in Exhibit D.6.1 of the form
of Supply Agreement.
“ Services ” has
the meaning set forth in the Service Agreement.
“ Site Delivery Point
” means the individual Wind Turbine location or other
locations at the Project Site(s) designated by Buyer pursuant to
Section 6.1.1(ii) that permits Supplier to Deliver the
relevant Turbine Equipment through the railhead at Calmar,
Iowa.
“ Site Facilities
” means the site facilities to be constructed by Owner at the
Project Site at the election of Supplier pursuant to Section
3.6 .
“ Site Facilities Lease
” means the lease for the Site Facilities substantially in
the form of Exhibit S.2 .
“ Site Facilities
Requirements ” means the minimum requirements for the
Site Facilities set forth on Exhibit S.1 .
“ Site Review Criteria
” means the then-current criteria utilized by Supplier in
making its determinations regarding acceptance of site plans and
imposition of project specific operational requirements, as more
particularly described in Exhibit DD .
“ Soil or Subsurface
Condition ” means any soil, geotechnical or subsurface
condition including geological conditions, groundwater conditions,
types of surface or subsurface soil, the presence of caverns or
voids, religious artifacts, archaeological items, biological
matter, the presence of Hazardous Substances at the Delivery Point,
and the existence, location or condition of underground pipelines
and conduits or other manmade structures, materials or
equipment.
“ Standard &
Poor’s ” means Standard & Poor’s Rating
Group (a division of McGraw-Hill, Inc.).
“ Standard Qualified Site
Review ” has the meaning set forth in
Section 3.4.2 .
“ Standard Unqualified Site
Review ” has the meaning set forth in
Section 3.4.2 .
“ Steel Price ”
means (i) with respect to the Group 1 Wind Turbines the price
indicated for Hot-Rolled Plates, Asian Carbon Steel Product Prices
($/metric ton), column “Hot Rolled Plate” for the
identified month, as set forth in the MEPS Asian Carbon Steel
Prices published monthly by MEPS (International) LTD, and (ii) with
respect to the Group 2 Wind Turbines and the Group 3 Wind Turbines,
the price indicated for Hot-Rolled Plates, North American Carbon
Steel Product Prices ($/metric ton), column “Hot Rolled
Plate” for the identified month, as set forth in the MEPS
North American Carbon Steel Prices published monthly by MEPS
(International) LTD.
“ Steel Price ____
* ” means the Steel Price _____ * for
the Group 1 Wind Turbines is $_____ * , and for the
Group 2 Wind Turbines and the Group 3 Wind Turbines is $_____
* .
“ Steel Price _____
* ” means the Steel Price for the last period for
which the Steel Price is published on the _____ *
immediately preceding the date that is _____ * days
prior to the scheduled date of _____ * of the first
Tower section in the relevant Group of Wind Turbines.
“ Storage Instructions
” means the instructions set forth in Exhibit L
.
“ Storage Requirements
” means the requirements set forth in Exhibit K
.
“ Subcontract ”
means any contract, agreement, purchase order, arrangement or
understanding between Supplier and a Subcontractor in respect of
any of the obligations of Supplier hereunder.
“ Subcontractors
” means any subcontractor of services to Supplier in
connection with the performance of any of its obligations at the
Delivery Point.
“ Supplier ” has
the meaning set forth in the preamble to this Agreement.
“ Supplier Alternate
Delivery Location ” means the delivery location selected
by Supplier in accordance with Section 6.1.1(iii) that
complies with Exhibit K (the Storage Requirements) to allow
the Turbine Equipment to be stored in accordance with Exhibit
L (the Storage Instructions) and permits Supplier to Deliver
the relevant Turbine Equipment through the railhead at Calmar,
Iowa.
“ Supplier Event of
Default ” has the meaning set forth in
Section 16.1 .
“ Supplier Indemnified
Party ” has the meaning set forth in Section 17.1
.
“ Supplier MSA Parent
Guaranty ” means a parent guaranty executed by Supplier
Parent for the benefit of Buyer, which parent guaranty shall be
substantially in the form of Exhibit AA .
“ Supplier Parent
” means Vestas Wind Systems, A/S, a company organized under
the laws of the Kingdom of Denmark.
“ Supplier Permits
” has the meaning set forth in Section 6.6
.
“ Supplier Responsible
Party ” means Supplier, its Subcontractors or any Person
or entity directly employed by any of them, or any Person or entity
for whose acts any of them are liable during the performance of
Supplier’s obligations under this Agreement.
“ Supplier’s
Manager ” has the meaning set forth in Section 6.8
.
“ Supply Agreement
” means a Turbine Supply Agreement or a Turbine Supply and
Installation Agreement, as applicable.
“ Taxes ” means
any and all forms of applicable taxation, charges, duties, imposts,
levies and rates imposed by the U.S. or any other Governmental
Authority (other than income taxes and Sales Taxes), including
withholding taxes, corporation tax, capital gains tax, capital
transfer tax, inheritance tax, water rates, value added tax,
customs duties, capital duty, excise duties, betterment levy, stamp
duty, stamp duty reserve tax, national insurance, social security
or other similar contributions, and generally any tax, duty,
impost, levy, rate or other amount and any interest, penalty or
fine in connection therewith.
“ Technical
Specifications ” has the meaning set forth in the form of
Supply Agreement.
“ Territory ”
means the U.S.
“ Third Party
Controversy ” has the meaning set forth in
Section 18.5 .
“ Third Party Owner
” has the meaning set forth in Section 3.8.1
.
“ Tower ” means a
steel tubular tower on which a Wind Turbine will be mounted,
including all ladders, platforms, internal lighting, safety
equipment and all parts and assemblies necessary for a complete
turbine tower, all as described in Exhibit D.3 to the form
of Supply Agreement, but specifically excluding anchor bolts, nuts
and washers for the Tower foundations.
“ Transportation
Services ” means, for any Project, transportation of the
Turbine Equipment from the Delivery Point to the Site Delivery
Point, all as more particularly described in the applicable Supply
Agreement.
“ Turbine Equipment
” means the Wind Turbines, Towers and SCADA System and all
other materials and equipment supplied or incorporated into a
Project by Supplier pursuant to the applicable Supply Agreement or
this Agreement, as applicable.
“ Turbine Nacelle
” means the turbine nacelle component of a Wind Turbine,
including gearbox, generator, blade pitch controls and nacelle yaw
controls, and associated control and ancillary equipment as
described in Exhibit D of the applicable form of Supply
Agreement, but excluding the blades, Hubs and Towers.
“ Turbine Supply
Agreement ” means a Wind Turbine Supply Agreement
substantially in the form of Exhibit D attached hereto, as
may be adjusted in accordance with Project Document
Modifications.
“ Turbine Supply and
Installation Agreement ” means a Wind Turbine Supply and
Installation Agreement substantially in the form of Exhibit
E attached hereto, as may be adjusted in accordance with
Project Document Modifications.
“ U.S. ” means
the United States of America.
“ Vendors ” means
any supplier of equipment to Supplier or its Affiliates in
connection with the performance of Supplier’s obligations
hereunder.
“ Warranties ”
has the meaning set forth in the form of Supply
Agreement.
“ Wind Turbine ”
means a Vestas model V82-1.65 MW (Mark V or later) wind turbine
generator conforming to Exhibit D to the applicable
form of Supply Agreement, including the Turbine Nacelle, Tower,
Hub, Blade Set, controller, control panels, anemometers, Full-Load
Power Factor Correction option, Advanced Grid Option, Low
Temperature Package, any Optional Equipment elected in accordance
with Section 3.2 and, as applicable, a Service Lift or Lift
Assist Device.
“ Work ” has the
meaning set forth in the form of Turbine Supply and Installation
Agreement.
“ WPL ” means
Wisconsin Power and Light Company, an Affiliate of
Buyer.
1.2
Recitals, Articles, Sections and Exhibits . References to
Recitals, Articles, Sections and Exhibits are, unless otherwise
indicated, to Recitals of, Articles of, Sections of and Exhibits to
this Agreement. All Exhibits attached to this Agreement are
incorporated herein by this reference and made a part hereof for
all purposes. References to an Exhibit shall mean the referenced
Exhibit and any sub-exhibits, sub-parts, components or attachments
included therewith.
1.3
Gender . As used in this Agreement, the masculine gender
shall include the feminine and neuter and the singular number shall
include the plural, and vice versa .
1.4
Successors and Assigns . Unless expressly stated otherwise,
references to a Person include its successors and permitted assigns
and, in the case of a Governmental Authority, any Person succeeding
to its functions and capacities.
1.5
Day . As used in this Agreement, references to
“days” shall mean calendar days, unless the term
“Business Days” is used. If the time for performing an
obligation under this Agreement expires on a day that is not a
Business Day, the time shall be extended until that time on the
next Business Day.
1.6
Grammatical Forms . As used in this Agreement, where a word
or phrase is specifically defined, other grammatical forms of such
word or phrase have corresponding meanings; the words
“herein,” “hereunder” and
“hereof” refer to this Agreement, taken as a whole, and
not to any particular provision of this Agreement;
“including” means “including, for example and
without limitation,” and other forms of the verb “to
include” are to be interpreted similarly.
1.7
References to Documents . As used in this Agreement, all
references to a given agreement, instrument or other document shall
be a reference to that agreement, instrument or other document as
modified, amended, supplemented and restated through the date as of
which such reference is made. Any term defined or provision
incorporated in this Agreement by reference to another document,
instrument or agreement shall continue to have the meaning or
effect ascribed thereto whether or not such other document,
instrument or agreement is in effect.
ARTICLE 2.
PURCHASE AND SALE
COMMITMENT
|
|
2.1
|
Commitment Quantity
.
|
2.1.1 Buyer
hereby agrees to obtain and purchase from Supplier, and Supplier
hereby agrees to provide and sell to Buyer, three hundred three
(303) Wind Turbines and related Turbine Equipment and certain
warranties with respect to such Wind Turbines, all pursuant to the
terms and conditions of Supply Agreements, which the Parties shall
cause to be completed, executed and delivered according to this
Agreement; and
2.1.2 Buyer
hereby agrees to obtain from Supplier, and Supplier hereby agrees
to provide to Buyer, certain services with respect to the
maintenance, servicing and repair of the Wind Turbines and certain
Availability Covenants, all pursuant to the terms and conditions of
Service Agreements, which the Parties shall cause to be completed,
executed and delivered according to this Agreement.
ARTICLE 3.
PROJECTS AND PROJECT
DOCUMENTS
3.1
Effect of Execution of Project Documents . It is the intent
of the Parties to execute Project Documents for all Turbine
Equipment to be supplied by Supplier and purchased by the
Designated Owner hereunder. Upon execution and delivery of the
Project Documents for a Project in accordance with this Agreement,
each Party’s obligations under this Agreement with respect to
the corresponding Wind Turbines and related Turbine Equipment for
such Project shall be superseded and replaced by the obligations
arising under the relevant Project Documents for each such Project
and neither Party shall have any further liability or obligation
under this Agreement with respect to such Wind Turbines and related
Turbine Equipment; provided that (i) the provisions of Article
13 shall survive the execution of Project Documents with
respect to Confidential Information disclosed hereunder, (ii) the
provisions of Article 5 shall survive the execution of
Project Documents to the extent that Turbine Equipment is Delivered
to the Delivery Point hereunder, and (iii) if the relevant Project
Documents are terminated in accordance with Section 19.12 of the
relevant Supply Agreement, each Parties’ obligations under
this Agreement with respect to the corresponding Wind Turbines
shall be reinstated. From and after the date of execution and
delivery of Project Documents for a Project, Supplier’s and
the Designated Owner’s obligations with respect to the
corresponding Wind Turbines and related Turbine Equipment for such
Project shall be governed by the Project Documents for such
Project.
|
|
3.2
|
Equipment Options
Notices .
|
3.2.1 The
Base Price does not include any Optional Equipment for the Wind
Turbines. Buyer may specify Optional Equipment for the applicable
Group of Wind Turbines on or before the applicable Equipment
Options Notice Outside Date by identifying such Optional Equipment
in an Equipment Options Notice that is executed and delivered to
Supplier.
|
|
3.2.2
|
Each Equipment Options Notice
shall:
|
(i) indicate
the number of Optional Equipment elected for the relevant Wind
Turbines; and
|
|
(ii)
|
specify any other relevant details
with respect to the foregoing.
|
3.3.1 Buyer
shall execute and deliver to Supplier a Project Notice for each of
the proposed Projects.
|
|
3.3.2
|
Each Project Notice
shall:
|
(i) indicate
the name and location of the Project at which the Wind Turbines
will be erected and installed, provided that such location
shall be on land and within the states of Iowa, Minnesota and
Wisconsin;
(ii) indicate
the number of Wind Turbines to be erected and installed at such
Project, provided that Buyer may not designate less than
_____ * Wind Turbines for any single Project,
(iii) indicate
the Wind Turbines with specific Optional Equipment to be erected
and installed at such Project, provided that all such Wind
Turbines must contain the same Optional Equipment;
(iv) indicate
the number of SCADA System servers to be installed at the Project,
provided that Buyer shall not designate less than one (1)
SCADA System server for each Project;
|
|
(v)
|
attach the Project Site Data for
such Project; and
|
|
|
(vi)
|
specify any other relevant details
with respect to the foregoing.
|
3.4.1 Supplier shall
commence reviewing the Project Site Data and other attributes of
the Project Site, including the wind and other climatic conditions
at a proposed Project Site, following receipt of a Project Notice
delivered in accordance with Section 3.3 ;
provided , however , that, Supplier shall have no
obligation to review such conditions with respect to more than two
(2) Project Sites proposed by Buyer within any sixty (60) day
period. Supplier shall perform such review in accordance with the
Site Review Criteria and Prudent Wind Industry Practices. Supplier
shall not be required to perform an analysis of the wind resource
or the Wind Turbine siting for optimization purposes.
Notwithstanding Supplier’s review of the Project Site Data,
it shall be the exclusive responsibility of Buyer and the
Designated Owner to ensure that the design and layout of the
Project Site, wind resource, climatic conditions, topography, grid
connection and Project Site are suitable for the Project and
support the power output projections for the Project.
3.4.2 Within
sixty (60) days following receipt of a complete Project Notice for
a potential Project, Supplier shall notify Buyer whether, based on
the Site Review Criteria and Prudent Wind Industry Practices, the
Project Site Data and other attributes of the Project Site are such
that (i) Supplier would provide the Warranties and the Availability
Covenants for such Project on the terms and conditions set forth in
the forms of Project Documents attached hereto and in accordance
with the Annual Fee Parameters without any Project Specific
Operational Requirements (a “ Standard Unqualified Site
Review ”), (ii) Supplier would provide the Warranties and
the Availability Covenants for such Project on the terms and
conditions set forth in the forms of Project Documents attached
hereto and in accordance with the Annual Fee Parameters with
specified Project Specific Operational Requirements (a “
Standard Qualified Site Review ”), (iii) Supplier
would provide the Warranties and the Availability Covenants for
such Project with specified modifications to the terms and
conditions to the Supply Agreement and/or Service Agreement and/or
any adjustments to the Annual Fee Parameters that would be required
for Supplier to enter into Project Documents for such Project (such
additional terms and conditions and/or adjustments, collectively,
“ Project Document Modifications ”) and, if
applicable, Project Specific Operational Requirements (a “
Conditional Site Review ”) or (iv) Supplier will not
provide the Warranties or the Availability Covenants for such
Project.
3.4.3 If
Supplier provides Project Specific Operational Requirements in
connection with any Standard Qualified Site Review or Conditional
Site Review for any Project in accordance with Section 3.4.2
, and Buyer objects to such Project Specific Operational
Requirements, then either Party may submit the question of whether
Supplier properly applied the Site Review Criteria to the Project
Site Data to the Independent Engineer pursuant to Section
18.7 . If Supplier refuses to provide the Warranties or the
Availability Covenants for a Project, and Buyer disputes such
determination, then either Party may submit the question of whether
Supplier properly applied the Site Review Criteria to the Project
Site Data to the Independent Engineer pursuant to Section
18.7 . Buyer may not submit any other issue concerning
Supplier’s evaluation of the Project Site Data and the
determination of whether Supplier is willing to provide the
Warranties or the Availability Covenants to dispute resolution
pursuant to Article 18 .
3.4.4 Supplier shall not
be required to execute and deliver Project Documents for a Project
until (a) Supplier has determined that it would provide the
Warranties and the Availability Covenants for such Project and
(b) the Project Specific Operational Requirements, if any,
have been determined. If Supplier notifies Buyer of any Project
Document Modifications that are not acceptable to Buyer, Supplier
shall have no obligation to enter into Project Documents for such
Project. If Buyer accepts the Project Document Modifications, the
Parties shall complete the Project Documents with such Project
Document Modifications in accordance with Section 3.7
.
3.4.5 If the
Parties have not entered into Project Documents for a Project
within six (6) months following completion of an Acceptable Site
Review for such Project, then Supplier shall have the option to (i)
require Buyer to provide updated Project Site Data with respect to
such Project and (ii) re-perform the Project Site review in
accordance with the provisions of this Section 3.4 . If
Supplier exercises such option, any Acceptable Site Review
previously provided by Supplier with respect to the applicable
Project shall be null and void and have no further force or
effect.
3.5
Installation Services . Buyer may request Supplier to
provide a proposal for Installation Services at any time prior to
the execution of Project Documents. Following receipt of such a
request, Supplier may request from Buyer, and Buyer shall provide,
such additional information relating to the Project Site and the
proposed schedule for performance of Owner’s obligations
under the Turbine Supply and Installation Agreement that Supplier
deems necessary to determine whether it is reasonably capable of
providing Installation Services for the Project and to prepare a
proposal for such Installation Services. If, based on the
information provided by Buyer, Supplier determines that it is
reasonably capable of providing Installation Services for the
Project, Supplier shall provide to Buyer a proposal for
Installation Services within ____ * month following
receipt of a request from Buyer. Such proposal shall include (i)
the pricing for the Installation Services based on the information
provided by Buyer, (ii) the proposed Guaranteed Facility
Substantial Completion Date for the obligations of Supplier at the
Project Site, and (iii) any items that are not otherwise provided
for in this Agreement but are needed to complete the applicable
Turbine Supply and Installation Agreement to include such
Installation Services. Such proposal shall be valid for a period of
_____ * months from the date of delivery to Buyer
thereof, after which Supplier may revoke the quote by issuing
written notice to Buyer. Buyer shall accept or reject such proposal
in writing prior to the expiration or revocation thereof. If Buyer
accepts such proposal for such Installation Services, Supplier
shall provide such Installation Services for the Project pursuant
to the Turbine Supply and Installation Agreement. Supplier shall
have no obligation to provide Installation Services for any Project
unless and until Supplier and Owner have agreed to the terms of and
executed the Turbine Supply and Installation Agreement for such
Installation Services.
3.6.1 For
each Project other than the Proposed Group 1 Project, Supplier
shall have the right to require Buyer or Owner to construct Site
Facilities in accordance with the Site Facilities Requirements
pursuant to the relevant Project Documents upon notice delivered to
Buyer prior to the execution of Project Documents. Upon receipt of
any such notice, Buyer shall identify the potential location for
the Site Facilities, perform a Phase I environmental study on the
relevant real property, and provide a copy of such study to
Supplier. Supplier shall notify Buyer within one (1) month whether
it will proceed with the Site Facilities Lease at that location. If
such location is unacceptable to Supplier due to the results of the
Phase I environmental study, the Parties shall cooperate, acting
reasonably and in good faith, to identify an alternate location,
mutually acceptable to the Parties, for the Site Facilities. The
Site Facilities Lease shall be executed contemporaneously with the
Project Documents.
3.6.2 If the
Parties are unable to agree to any items required for completion of
the Site Facilities Lease that are not already set forth in the
form of Site Facilities Lease, the Parties shall attempt to resolve
the matter in accordance with Section 18.1 . If the Parties
are unable to resolve the matter in accordance with
Section 18.1 , either Party may submit any pending
items to the dispute resolution procedures set forth in Section
18.2 .
3.7.1 The
Parties shall use diligent, timely, and commercially reasonable and
good faith efforts to agree as promptly as practicable after the
completion of an Acceptable Site Review to all items required for
completion of the Project Documents that have not been agreed to
pursuant to this Agreement or the proposals contemplated in
Sections 3.4 and 3.5 and promptly following such
agreement, shall execute the relevant Project Documents. The
Parties acknowledge and agree that Supplier may revise and update
the exhibits attached to the forms of Project Documents a
reasonable period of time prior to the execution of Project
Documents for any Project to reflect Supplier’s then-current
technical and other specifications for the Turbine Equipment, which
updates are subject to Buyer’s review and approval, which
approval shall not be unreasonably withheld. Any failure by Buyer
to approve such revisions or updates in accordance with this
Section 3.7.1 shall not adversely affect the Warranties
provided under the Supply Agreements or the Services provided under
the Service Agreement.
(i) the
date of commencement of the Work or the Equipment Supply
Obligations, as applicable, at the Project Site shall be the
Project Documents Commencement Date;
(ii) the
coordinates and number of Nominated Wind Turbines shall be selected
in accordance with the methodology set forth in Exhibit O to
the Turbine Supply Agreement.
(iii) the
Annual Fee and the Interim Service Fee to be inserted in the
Service Agreement shall be equal to the amount calculated in
accordance with the Annual Fee Parameters. The Annual Fee and the
Interim Service Fee may be adjusted pursuant to Section
3.4.2 , and the Annual Fee shall be adjusted pursuant to the
Service Agreement.
|
|
(iv)
|
The start of the Local Roads shall
be identified.
|
3.7.3 If the
Parties are unable to agree to any items required for completion of
the Project Documents that have not been agreed to pursuant to this
Agreement (including Section 3.7.2 ) or the proposals
contemplated in Section 3.5 or Section 6.1.1(ii) ,
the Parties shall attempt to resolve the matter in accordance with
Section 18.1 . If the Parties are unable to resolve the
matter in accordance with Section 18.1 , either Party
may submit any pending items to the dispute resolution procedures
set forth in Section 18.6 . Promptly following resolution of
the dispute, the Parties shall execute the relevant Project
Documents.
3.8.1
Selection of Third Party Owner . If after using diligent
efforts the Designated Owner for the relevant Group of Wind
Turbines receives an order from a Governmental Authority that
rejects its request to construct one or more Projects using the
Group 2 Wind Turbines and/or the Group 3 Wind Turbines or such
order contains terms and conditions that are inconsistent with the
past orders of such Governmental Authority and are unacceptable to
such Designated Owner, as solely determined by the Designated
Owner, and an Affiliate of Buyer does not have any potential
Project at which such Wind Turbines can be used, Buyer may
designate a single owner that is not an Affiliate of Buyer (a
“ Third Party Owner ”) for a Project using such
Wind Turbines, subject to the following conditions:
(i) Supplier
shall have approved such Third Party Owner, which approval shall
not be unreasonably withheld, conditioned or delayed provided that
(a) such Third Party Owner or an Affiliate of such Third Party
Owner is not a wind turbine manufacturer or a wind turbine service
provider, (b) such Third Party Owner or an Affiliate of such Third
Party Owner is not in litigation, arbitration or other dispute
resolution proceeding with Supplier or an Affiliate of Supplier,
(c) such Third Party Owner is a creditworthy entity with a Credit
Rating on the date the Third Party Owner Project Documents are
executed at least equal to the Credit Rating of Buyer Parent on the
Effective Date, or such Third Party Owner provides payment security
that satisfies the requirements for the Payment Security required
hereunder, and (d) has not requested that Supplier provide pricing
for wind turbines within the six (6) months preceding the date of
designation of such Third Party Owner;
(ii) the
consideration received by Buyer or the Designated Owner, as
applicable, for the Wind Turbines plus the amount owed to Supplier
with respect to such Wind Turbines as of the date the Project
Documents are executed shall not, without Supplier’s prior
written approval, which approval shall not be unreasonably
withheld, be less than the Base Price for such Wind Turbines set
forth in the Payment Schedule multiplied by the number of Wind
Turbines;
(iii) Buyer
or the Designated Owner, as applicable, shall reimburse Supplier
for Supplier’s reasonable costs and expenses incurred in
connection with executing Project Documents with the Third Party
Owner, provided that Supplier shall promptly and diligently issue
Project Documents for Third Party Owner review and, if requested by
such Third Party Owner, promptly commence and diligently proceed
with good faith negotiations of such Project Documents and
provided, further, that, without limiting Supplier’s other
rights hereunder, Supplier will use reasonable commercial efforts
to cooperate with Buyer in identifying and referring Buyer to
potential Third Party Owners;
(iv) if the
total price to be paid by the Third Party Owner for the Wind
Turbines (including payment to be made to Supplier and payments the
Third Party Owner may make to Buyer or the Designated Owner) less
the costs and expenses reasonably incurred by Buyer and those costs
and expenses for which Supplier is reimbursed pursuant to
Section 3.8.1(iii) exceeds the Base Price for such Wind
Turbines multiplied by the number of Wind Turbines, then, to the
extent that Buyer or the Designated Owner, as applicable, receives
such payments, Buyer or the Designated Owner, as applicable, shall
pay to Supplier _____ * % of such excess amount, on an
after tax basis, as determined by Buyer or the Designated Owner in
accordance with its standard accounting practices.
(v) any
Payment Security established pursuant to Section 4.13 shall
remain in full force and effect until the earlier of (a) the Third
Party Owner provides alternate payment security reasonably
acceptable to Supplier or (b) thirty (30) days after the execution
date of the Third Party Project Documents. Supplier shall notify
Buyer that Project Documents were executed with the Third Party
Owner within three (3) Business Days after execution
thereof.
3.8.2
Effectiveness of Agreement . Notwithstanding the foregoing,
the provisions of this Agreement shall remain in full force and
effect and shall continue to govern the selection of Projects and
the execution of Project Documents until Supplier and such Third
Party Owner have executed Project Documents for such Wind Turbines.
Buyer may, on written notice to Supplier, elect to designate an
alternate Third Party Owner in accordance with this Section
3.8 , and the process described herein may be repeated until
Supplier and such Third Party Owner have executed Project
Documents.
3.8.3
Effect of Execution of Third Party Project Documents . Upon
execution and delivery of the Project Documents with a Third Party
Owner for a Project in accordance with this Agreement, each
Party’s obligations under this Agreement with respect to the
corresponding Wind Turbines and related Turbine Equipment for such
Project shall be superseded and replaced by the obligations arising
under the relevant Project Documents for each such Project and no
Party shall have any further liability or obligation under this
Agreement with respect to such Wind Turbines and related Turbine
Equipment; provided that (i) the provisions of Article 13
shall survive the execution of Project Documents with respect to
Confidential Information disclosed hereunder, and (ii) the
provisions of Article 5 shall survive the execution of
Project Documents to the extent that Turbine Equipment is Delivered
to the Delivery Point hereunder. From and after the date of
execution and delivery of Project Documents with a Third Party
Owner for a Project, Supplier’s and the Third Party
Owner’s obligations with respect to the corresponding Wind
Turbines and related Turbine Equipment for such Project shall be
governed by the Project Documents for such Project.
ARTICLE 4.
PRICING AND
PAYMENT
4.1
Wind Turbine Base Price . The base price per Wind Turbine
for each Wind Turbine supplied pursuant to the terms hereof or a
Supply Agreement executed and delivered in accordance with this
Agreement (the “ Base Price ”) is set forth on
the Payment Schedule. The base price for a Project shall be
determined by multiplying the Base Price by the number of Wind
Turbines for such Project (the “ Project Base Price
”). For the avoidance of doubt, the Project Base Price does
not include the Annual Fee under the Service Agreement.
4.2
Group Base Price . The Group Base Price for each Group of
Wind Turbines is set forth on the Payment Schedule in Dollars and
Euros. If the Euro portion of the applicable Group Base Price (the
“ Adjustable Portion ”) is hedged as
contemplated by Section 4.6 , the Euro portion will be
converted and calculated in Dollars as contemplated by Section
4.6 , such that, from and after the Actual Hedging Date, the
Group Base Price for the applicable Group of Wind Turbines shall be
stated in Dollars only. The Group Base Price and the other amounts
payable hereunder is an all inclusive price for Supplier's
performance under this Agreement with respect to the relevant Group
of Wind Turbines.
|
|
4.3
|
Payments for Wind Turbine Base
Price .
|
4.3.1
Initial Down Payment . Within ____ * after the
Effective Date, the Designated Owner shall pay to Supplier, as a
down payment for the Group 1 Wind Turbines, the amount set forth in
the Payment Schedule designated as the “Initial Down
Payment” for the Group 1 Wind Turbines, with the Adjustable
Portion to be converted, for purposes of making such down payment
only, to Dollars based on the Euros to Dollars exchange rate on
oanda.com on May 28, 2008 at 4 p.m. Eastern Standard Time, which
rate is ____ * Euros per Dollar (the “ Assumed
Hedging Rate ”).
4.3.2
Manufacturing Capacity Allocation Payment . Following
receipt by Buyer of Supplier’s certificate, substantially in
the form of Exhibit G , that it has allocated manufacturing
capacity for the Group 2 Wind Turbines and the Group 3 Wind
Turbines, the Designated Owner shall pay, in accordance with
Section 4.8 , to Supplier the amount set forth in the
Payment Schedule designated as the “Manufacturing Capacity
Allocation Payment” for the Group 2 Wind Turbines and the
Group 3 Wind Turbines, provided, however that Supplier may issue
such certificate no earlier than May 15, 2009.
4.3.3
Delay Payments . Without limiting the provisions of
Section 3.1 , the following provisions of this Section
4.3.3 shall apply only in the event that Project Documents have
not been executed for the relevant Turbine Equipment or Component
thereof:
(i)
Project Documents Payment . On or before the date that is
_____ * days prior to the first Guaranteed Delivery Date
for the relevant Group of Wind Turbines, Buyer shall pay to
Supplier the amount set forth in the Payment Schedule designated as
the “Project Documents Payment” for the relevant Group
of Wind Turbines. Such amounts shall be due upon execution and
delivery of a Delayed Project Documents Execution Certificate and
payable in accordance with Section 4.8 .
(ii)
Ex Works . Upon achievement of Ex Works of the Turbine
Equipment, or any Component thereof, Buyer shall pay to Supplier a
pro rata portion based on the number of Components having achieved
such status equal to the amount set forth in the Payment Schedule
designated as the “Ex Works Payment” for the relevant
Group of Wind Turbines. Such amounts shall be payable in accordance
with Section 4.8 after presentation of (i) an Ex Works
Certificate executed by, or on behalf of, Supplier specifying the
applicable Turbine Equipment that is Ex Works, together with an
invoice for such payment and (ii) a copy of a bill of lading
(or other applicable transport documentation evidencing shipment)
respecting such Turbine Equipment, together with an invoice for
such payment and a list of serial numbers for each Component that
has achieved Ex Works.
(iii)
Delivery . Upon Delivery of the Turbine Equipment, or any
Component thereof to the Delivery Point, Buyer shall pay to
Supplier a pro rata portion based on the number of Components
Delivered to the Delivery Point equal to the amount set forth in
the Payment Schedule designated as the “Delivery
Payment” for the relevant Group of Wind Turbines. Such
amounts shall be payable in accordance with Section 4.8
after the applicable Components are Delivered to the Delivery
Point, as evidenced by a Delivery Certificate executed by, or on
behalf of, Supplier and countersigned or deemed countersigned by
Buyer.
(iv)
Commissioning . On or before the date that is _____
* days following the date of Delivery of the Turbine
Equipment to the Delivery Point, Buyer shall pay to Supplier a pro
rata portion based on the number of Wind Turbines Delivered to the
Delivery Point equal to the amount set forth in the Payment
Schedule designated as the “Commissioning Payment” for
the relevant Group of Wind Turbines. Such amounts shall be due upon
execution and delivery of a Delayed Commissioning Completion
Certificate and payable in accordance with Section 4.8
.
(v)
Substantial Completion . On or before the date that is _____
* days following the date of Delivery of the Turbine
Equipment to the Delivery Point, Buyer shall pay to Supplier a pro
rata portion based on the number of Wind Turbines Delivered to the
Delivery Point equal to the amount set forth in the Payment
Schedule designated as the “Substantial Completion
Payment” for the relevant Group of Wind Turbines. Such
amounts shall be due upon execution and delivery to Buyer of a
Delayed Substantial Completion Certificate and payable in
accordance with Section 4.8 .
(vi)
Final Completion . On or before the date that is _____
* days following the date of Delivery of the Turbine
Equipment to the Delivery Point, Buyer shall pay to Supplier a pro
rata portion based on the number of Wind Turbines Delivered to the
Delivery Point equal to the amount set forth in the Payment
Schedule designated as the “Final Completion Payment”
for the relevant Group of Wind Turbines. Such amounts shall be due
upon execution and delivery to Buyer of a Delayed Final Completion
Certificate and payable in accordance with Section 4.8
.
(vii)
SCADA Completion . On or before the date that is _____
* days following the date of Delivery of the Turbine
Equipment to the Delivery Point, Buyer shall pay to Supplier a pro
rata portion based on the number of Wind Turbines Delivered to the
Delivery Point equal to the amount set forth in the Payment
Schedule designated as the “SCADA Completion Payment”
for the relevant Group of Wind Turbines. Such amounts shall be due
upon execution and delivery to Buyer of a Delayed SCADA Completion
Certificate and payable in accordance with Section 4.8
.
|
|
4.4
|
Optional Equipment
Payments .
|
4.4.1 Concurrently with
delivery to Supplier of an Equipment Options Notice, Buyer shall
pay to Supplier an amount equal to the product of (i) the aggregate
price for the Optional Equipment specified in the Equipment Options
Notice and (ii) the total percentage of the applicable Group Base
Price due from Buyer in all prior payments for the relevant Group
of Wind Turbines.
4.4.2 Together with each
payment set forth in Section 4.2 , Buyer shall pay to
Supplier an amount equal to the product of (i) the aggregate price
for the Optional Equipment specified in the Equipment Options
Notice and (ii) the percentage of the applicable Group Base Price
due from Buyer at the time of such payment.
4.5
Application of Payments to Project Contract Price . For each
Project, an amount equal to the amount of any payments made under
this Agreement for the applicable Turbine Equipment to be included
in such Project shall be applied to the Project Contract Price
under the Supply Agreement for such Project.
4.6.1 Provided that
Supplier has received the Initial Down Payment pursuant to
Section 4.3.1 and subject to the provisions of this
Section 4.6 , Supplier shall enter into hedging arrangements
with the Hedging Bank for the Adjustable Portion of the applicable
Group Base Price on the first Business Day immediately following
the applicable Anticipated Hedging Date. A representative of each
Party shall participate in a conference call commencing at 9:10AM
EPT on the Anticipated Hedging Date. On the day before the
Anticipated Hedging Date, Supplier shall provide dial-in
information for the conference call. On the conference call,
Supplier shall verbally provide an indicative quotation for the
applicable Group Base Price of a “Hedging Rate”
(defined as the amount of Dollars per Euro 100.00 i.e. Euro/Dollar
rate) from a Hedging Bank to Buyer. Buyer shall (a) instruct
Supplier to hedge the applicable Adjustable Portion on or about
10:00AM EPT that same Business Day at the then available Hedging
Rate, (b) instruct Supplier to hedge the applicable Adjustable
Portion on or about 10:00AM EPT that same Business Day at the then
available Hedging Rate, provided such Hedging Rate does not exceed
Buyer’s desired maximum Euro/Dollar level for the Hedging
Rate (the “ Maximum Level ”), which Maximum
Level must be confirmed in writing via email to Supplier prior to
9:30AM EPT or (c) instruct Supplier not to hedge. If Supplier is
instructed to hedge pursuant to clause (a) or (b) above, Supplier
shall obtain quotations from two (2) Hedging Banks selected by
Supplier and shall effect the hedge for the applicable Adjustable
Portion with the Hedging Bank providing the lowest Hedging Rate
(the applicable hedge rate obtained from the Hedging Bank, the
“ Actual Hedge Rate ” and the date of such
arrangement, the “ Actual Hedging Date ”). If
Buyer has communicated a Maximum Level in accordance with clause
(b) above, and the Hedging Rate offered by the 2 Hedging Banks on
or about 10:00AM EPT exceeds the Maximum Level, the hedge shall NOT
be effected. If pursuant to clause (b) or (c) above, the hedge is
not effected, the procedure specified in this Section 4.6.1
may, at Buyer’s written request (in the form of an e-mail),
be repeated on each of the 3 consecutive Business Days immediately
following the Anticipated Hedging Date until Supplier enters into
the hedge at the direction of Buyer or Buyer withdraws its election
to make the payments in Dollars only. All hedging costs incurred in
connection with hedging the applicable Adjustable Portion are to be
paid by Buyer and are incorporated into the Actual Hedge Rate. All
references to the applicable Group Base Price from and after the
Actual Hedging Date shall mean the applicable Group Base Price as
adjusted pursuant to this Section 4.6 .
4.6.2 If
Buyer fails to provide written notice that it wishes to continue
the hedging process after a failure to hedge on the applicable
Anticipated Hedging Date, or instructs Supplier not to hedge on
each of the following three (3) Business Days after the Anticipated
Hedging Date, or the hedge is not effected because a Maximum Level
has been established and exceeded on each of the following three
(3) Business Days, then Buyer shall be deemed to have withdrawn its
election to make payments in Dollars only, and:
(i) with
respect to the Group 2 Wind Turbines and the Group 3 Wind Turbines,
shall pay the applicable Group Base Price and all other amounts
payable with respect to such Group of Wind Turbines in both Dollars
and Euros in the manner described in the Payment
Schedule,
(ii) and
with respect to the Group 1 Wind Turbines, on the first Business
Day after this Section 4.6.2 becomes applicable, Supplier
shall purchase, at the then available spot rate, sufficient Euros
to cover the Adjustable Portion of the Initial Down Payment.
Following such purchase, Supplier shall deliver to Buyer an invoice
for the amount by which the sum of the Dollars spent by Supplier to
purchase Euros pursuant to this Section 4.6.2(ii) plus the
Dollar component of the Initial Down Payment exceeds the amount
paid by Buyer under Section 4.3.1 which amount shall be paid
within seven (7) days following receipt of such invoice;
provided , however , that if the sum of the Dollars
spent by Supplier to purchase Euros pursuant to this Section
4.6.2(ii) plus the Dollar component of the Initial Down Payment
is less than the amount paid by Buyer under Section 4.3.1 ,
Supplier shall refund such amount within seven (7) days following
delivery of such invoice.
4.6.3 If
Supplier enters into the hedging arrangements contemplated in
Section 4.6.1 , for the Group 1 Base Price, then (i) on
the first Business Day after the Actual Hedging Date, Supplier will
submit to Buyer an invoice for an amount equal to the difference
between the Dollar value of the Initial Down Payment paid by Buyer
pursuant to Section 4.3.1 and the Dollar value of the
Initial Down Payment calculated using the Actual Hedging Rate and
(ii) Buyer shall pay to Supplier the amount invoiced pursuant to
clause (i) of this sentence within ____ * Business Days
of receipt of such invoice; provided , however , that
if the Dollar value of the Initial Down Payment calculated using
the Assumed Hedging R