HomeMy WebLinkAboutTelamon Energy, LLC/UTL/$3,500/Operation & Maintenance ASA09/26/24
Telamon Energy LLC
City OfCarmel
Exhibit A
OPERATION AND MAINTENANCE
O&M)
AGREEMENT
between
TELAMON ENERGY LLC
and
CITY OF CARMEL
dated as of
O&M AGREEMENT
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Telamon Energy LLC
City OfCarmel
Contents
OPERATION AND MAINTENANCE AGREEMENT .................................................................................. 4
RECITALS............................................................................................................................................... 4
ARTICLE 1 – SCOPE OFSERVICES ...................................................................................................... 4
1.1Engagement ofthe O&MContractor. ............................................................................................. 4
1.2Relationship. .................................................................................................................................. 4
ARTICLE 2 – TERM ANDRENEWAL ...................................................................................................... 5
2.1Term. ............................................................................................................................................. 5
ARTICLE 3 – O&MCONTRACTOR RESPONSIBILITIES ........................................................................ 5
3.1General. ........................................................................................................................................ 5
3.2O&MContractor toActasIndependent Contractor. ........................................................................ 5
3.3Exclusions from Services. .............................................................................................................. 5
3.4Cooperation and Coordination with EPCContractor and Manager. ................................................. 6
3.5Standard for Performance ofObligations. ....................................................................................... 6
3.6Government Approvals. ................................................................................................................. 6
3.7Liens. ............................................................................................................................................ 7
3.8Qualification toO&MContractor’sObligations. ............................................................................... 7
ARTICLE 4 – RESPONSIBILITIES AND RIGHTS OFOWNER ................................................................ 7
4.1DutytoCooperate. ......................................................................................................................... 7
4.2Site Access. ................................................................................................................................... 8
4.3Representative ofOwner. .............................................................................................................. 8
4.4Force Majeure Events. ................................................................................................................... 8
ARTICLE 5 – O&MEMPLOYEES AND REPRESENTATIVES OF PARTIES ........................................... 8
5.1O&MEmployees; Subcontractors. ................................................................................................. 8
5.2Employee Compliance with Regulations. ........................................................................................ 8
5.3Representative ofO&MContractor................................................................................................. 8
5.4Representative ofOwner. .............................................................................................................. 9
5.5Designation ofRepresentatives...................................................................................................... 9
5.6Cooperation with Other Contractors ............................................................................................... 9
5.7O&MContractor Employment of O&MEmployees........................................................................ 10
Article 6 - INFORMATION, REPORTS, AUDITS, RECORDS ................................................................. 10
6.1Information; Project Contracts. ..................................................................................................... 10
6.2Reports and Written Notices. ....................................................................................................... 10
6.3Notice ofCertain Matters. ............................................................................................................ 11
O&M AGREEMENT
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Telamon Energy LLC
City OfCarmel
6.4Notice ofOther Matters. ............................................................................................................... 11
6.5Books and Records ..................................................................................................................... 11
7 – RESPONSIBILITY FOR COSTS AND EXPENSES ......................................................................... 11
7.1Owner and O&MContractor Responsibility. ................................................................................. 11
7.2Operating Expenses. ................................................................................................................... 11
7.3Limitations. .................................................................................................................................. 12
7.5Billing Reports; Invoices. .............................................................................................................. 12
7.7Taxes. ......................................................................................................................................... 12
ARTICLE 8 – FORCE MAJEURE .......................................................................................................... 13
8.1Effect ofForce Majeure Event. ..................................................................................................... 13
ARTICLE 9 – EVENTS OFDEFAULT AND REMEDIES ........................................................................ 13
9.1O&M Contractor Events ofDefault. .............................................................................................. 13
9.2Owner Events of Default. ............................................................................................................. 14
9.3Remedies. ................................................................................................................................... 14
9.4Termination Procedure. ............................................................................................................... 14
9.5Successor toO&MContractor. ..................................................................................................... 14
ARTICLE 10 – INDEMNIFICATION ....................................................................................................... 15
10.1Loss orDamage totheFacility. .................................................................................................. 15
10.2O&M Services Indemnity. ........................................................................................................... 16
10.3Owner Indemnity. ....................................................................................................................... 16
10.4Other Indemnity Rules. .............................................................................................................. 16
ARTICLE 11 – LIMITATION OFLIABILITY ............................................................................................ 17
11.1Limitation ofLiability. .................................................................................................................. 17
11.2Consequential Damages. ........................................................................................................... 17
ARTICLE 13 – CONFIDENTIALITY ....................................................................................................... 17
13.1Confidential Information. ............................................................................................................ 17
13.2Permitted Disclosure. ................................................................................................................. 18
13.3Additional Undertakings ofO&MContractor. .............................................................................. 18
13.4Public Announcements. ............................................................................................................. 18
ARTICLE 14 – DISPUTE RESOLUTION ................................................................................................ 18
14.1Negotiation. ............................................................................................................................... 18
14.2Continuation ofWork During Dispute.......................................................................................... 19
ARTICLE 15 – REPRESENTATION AND WARRANTIES ...................................................................... 19
15.1Representations and Warranties byEachParty. ........................................................................ 19
EXHIBIT A – DESCRIPTION OF SERVICES ......................................................................................... 21
O&M AGREEMENT
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Telamon Energy LLC
City OfCarmel
OPERATION ANDMAINTENANCE AGREEMENT
This OPERATION AND MAINTENANCE AGREEMENT (this “Agreement”), isdated asof
Effective Date”) between City OfCarmel, (“Owner”), and Telamon Energy LLC
O&MContractor”).
RECITALS
A. Owner isundertaking tocontract fortheoperation andmaintenance oftheFacility (as hereinafter
defined) located at:
Location City State Zip
3400 WEST 131ST STREET CARMEL IN 46032
The total size ofthesolar array isapproximately 451.72kW dc / 375 kW ac
B. O&MContractor desires to provide operation andmaintenance services to theFacility onthe
terms and conditions setforth inthis Agreement.
C. Owner desires toappoint O&MContractor tooperate andmaintain the Facility onthe terms and
conditions of thisAgreement including thestandards of performance established bythis
Agreement.
NOW, THEREFORE, theParties agree asfollows:
ARTICLE 1 – SCOPE OFSERVICES
1.1 Engagement of the O&M Contractor.
Owner hereby engages O&MContractor asanindependent contractor tooperate, maintain andrepairthe
Facility, toperform certain administration andmanagement services, and toperform certain other duties,
all assetforth inthisAgreement. O&MContractor accepts such engagement andagrees toperform in
accordance withtheterms andconditions hereof.
1.2Relationship.
O&MContractor isanindependent contractor ofOwner withrespect totheperformance ofits obligations
hereunder. Neither O&MContractor noritsAffiliates, employees, Subcontractors, vendors orsuppliers, or
theemployees ofanysuchparties employed inconnection with thisAgreement shall bedeemed tobe
agents, representatives, employees, orservants ofOwner. O&MContractor shall nothave the rightor
authority toassume, create orincur anyliability orobligation, express orimplied, against, inthe name of,
O&M AGREEMENT
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City OfCarmel
oronbehalf ofOwner. This Agreement isnot intended tocreate, andshall notbeconstrued tocreate, a
relationship ofpartnership oranassociation ofprofit between Owner and O&MContractor.
ARTICLE 2 – TERMANDRENEWAL
2.1 Term.
stThetermofthisAgreementshallcommenceonJan1 2025 andunless sooner terminated asprovided
herein, shall continue in fullforce andeffect forthree (3) years.
ARTICLE 3 – O&MCONTRACTOR RESPONSIBILITIES
3.1 General.
O&MContractor shall, operate andmaintain theFacility andperform theServices inaccordance with the
provisions ofthis Agreement. O&MContractor shall provide O&MServices with thepersonnel required to
beprovided byO&MContractor under Exhibit A.
3.2 O&M Contractor to Act as Independent Contractor.
O&M Contractor herby agrees tocarry outthefunctions of, andto actas, anindependent contractor in
theperformance oftheServices under thisAgreement.
3.3 Exclusions from Services.
Except asexpressly provided inthisAgreement orasauthorized by Owner from time totime, O&M
Contractor shall not:
a) describe itself asagent orrepresentative ofOwner;
b) pledge thecredit ofOwner inanyway inrespect of anycommitments forwhich ithasnot
received written authorization from Owner;
c) make anywarranty orrepresentation relating toOwner
d) sell, lease, pledge, mortgage, encumber, convey, license, exchange, ormake anyother transfer,
assignment, ordisposition oftheFacility or anyotherproperty or assets of Owner, otherthan the
removal anddisposal ofwaste material from theSite;
e) except forDisputes between O&MContractor and Owner arising underthisAgreement, settle,
compromise, assign, pledge, transfer, release, waive, orconsent to thecompromise, assignment,
settlement, pledge, transfer, waiver, orrelease of, anyclaim, suit, debt, demand, or judgment
against ordue byOwner, orsubmit anysuch claim, dispute, orcontroversy toarbitration or
judicial process, orstipulate toajudgment orconsent with respect thereto;
f) make, enter into, execute, amend, modify, orsupplement anyProject Contract oranyother
contract or agreement onbehalf of, or inthename of, Owner;
g) engage inanyother transaction onbehalf of, orinthename of, Owner which is notexpressly
permitted by thisAgreement;
h) provide administrative, financial, taxorother commercial services with respect tothebusiness of
Owner except totheextent they relate solely totheoperation andmaintenance oftheFacility; or
O&M AGREEMENT
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City OfCarmel
i) exercise anyoftheRetained Rights.
3.4 Cooperation and Coordination with EPC Contractor and Manager.
O&MContractor acknowledges that theEPC Contractor shall beincontrol oftheFacility to theextent
provided intheEPC Contract, andO&MContractor agrees thatitshall cooperate withallreasonable
requests made byOwner and theEPC Contractor. Where O&MContractor isnotrequired toperform
certain services fortheoperation andmaintenance oftheFacility andsuch services areprovided bythe
EPC Contractor, O&MContractor shall coordinate withtheEPC Contractor totheextent required forthe
performance of itsobligations hereunder andtheefficient operation ofthe Facility.
3.5 Standard for Performance of Obligations.
Intheperformance ofServices hereunder, O&MContractor shall notuseanytangible assets ofOwner for
O&MContractor'sown benefit (except intheexercise of itsrights andobligations under thisAgreement)
orforthebenefit ofO&MContractor'sAffiliates without thewritten consent ofOwner which consent will
notbeunreasonably withheld.
O&MContractor shall operate and maintain theFacility and perform alltheServices hereunder in
accordance with:
a) allApplicable Laws;
b) allGovernment Approvals,
c) theProject Contracts;
d) theterms ofthisAgreement; and
e) the applicable Approved Operating Plan, Approved Budget, and Approved Maintenance Program
IfO&MContractor isaware ofaconflict between anyoftheabove requirements, O&MContractor shall
inform Owner, and Owner shall promptly resolve the conflict. Prior tosuch resolution byOwner, O&M
Contractor shall give precedence totheobligations inthe priority setforth above.
Notwithstanding anything herein tothecontrary, innoevent shall O&MContractor berequired to operate
theFacility ifitdetermines initsreasonable opinion that todosowould violate themutually agreed upon
safety orenvironmental standards asdetermined byOwner and O&MContractor.
3.6 Government Approvals.
O&MContractor shall procure, obtain, maintain andcomply with allGovernment Approvals, including all
modifications, amendments andrenewals ofGovernmental Approvals which mayberequired under any
Applicable Laws forthe operation and maintenance ofthe Facility andtheperformance ofitsobligations
hereunder and which need tobeprocured and maintained byorinthename ofO&MContractor. Owner
shall provide O&MContractor with such assistance andcooperation as may reasonably be required in
order toobtain andmaintain all such Government Approvals. O&MContractor shall provide Owner and
anyother Person nominated byOwner with such assistance and co-operation asmay bereasonably
required inorder to obtain andmaintain allnecessary Government Approvals fortheoperation and
maintenance of theFacility. O&MContractor shall perform the Services, including the operation and
maintenance oftheFacility inaccordance with theterms andconditions ofallGovernment Approvals
applicable totheoperation andmaintenance ofthe Facility.
O&M AGREEMENT
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Telamon Energy LLC
City OfCarmel
3.7 Liens.
O&MContractor shall notpermit anyLien tobefiled orotherwise imposed onanypart oftheFacility or
Site asaresult oftheperformance oftheServices oritsengagement oremployment ofany
Subcontractor fortheperformance of theServices. IfanyLien is filed asaresult ofO&MContractor's
breach ofitsresponsibilities hereunder, andifO&MContractor does not withinthirty (30) days ofthefiling
ofthe Lien cause such Lien tobereleased anddischarged, orfileabond satisfactory toOwner inlieu
thereof, Owner shall have theright topayallsums necessary toobtain such release anddischarge such
Lien. O&MContractor shall reimburse Owner forallsuch costs, including reasonable attorneys' fees,
within thirty (30) days ofOwner'swritten demand therefor. Notwithstanding theforegoing, O&M
Contractor shall notberesponsible foranyLien filed ontheFacility orSite thatwas permitted by, orthat
arises outoforwas caused bytheactions of, Owner.
3.8 Qualification to O&M Contractor’sObligations.
O&MContractor shall: (i) notbeliable toOwner for anyLoss suffered orincurred by Owner oranythird
Person and (ii) beindemnified andheld harmless byOwner foranyLoss suffered orincurred by O&M
Contractor orin respect oftheclaims ofanythird Person totheextent ineach suchcase that such Loss
isasadirect result of:
a) O&MContractor'scompliance with theterms ofthisAgreement oranyother Project Contract;
b) O&MContractor'scompliance withanyinstruction ordirection given byOwner or anyconstraint
imposed byOwner atanytime upon O&MContractor which isdifferent from those otherwise
provided by thisAgreement;
c) Owner'sfailure tocomply with itsobligations under thisAgreement, including failure tomake
timely payment ofOperating Expenses included intheApproved Operating Plan orotherwise
payable in accordance with thisAgreement, oranyother Project Contract (unless anysuch
obligation was tobeperformed byO&MContractor pursuant tothe terms ofthisAgreement or
anyother Project Contract), which failure has anadverse effect onO&MContractor'sability to
perform theServices except totheextent thatsuch failure isaresultofany negligence, willful
misconduct orbreach ofthisAgreement byO&MContractor;
d) adesign, manufacturing orconstruction defect intheFacility or anycomponent incorporated
therein;
e) theabsence orlapse ofanyGovernment Approval, other thananyabsence or lapseresulting
from O&MContractor'sfailure tocomply with itsobligations under Section 3.7;
f) aContractor'sfailure to comply with itsobligations under anyProject Contract oranyother
contract between aContractor andOwner relating totheFacility, which failure results in O&M
Contractor'sinability toperform itsobligations hereunder, except totheextent thatsuch failure is
aresult ofanynegligence, willful misconduct orbreach ofthis Agreement byO&MContractor; or
g) lack ofspare parts except totheextent thatitistheresult ofanynegligence, willful misconduct or
breach ofthisAgreement byO&MContractor.
ARTICLE 4 – RESPONSIBILITIES ANDRIGHTS OFOWNER
4.1 Duty to Cooperate.
Owner shall, throughout the performance ofthe Services, cooperate withO&MContractor andperform its
responsibilities, obligations andservices inatimely manner tofacilitate O&MContractor’stimely and
O&M AGREEMENT
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City OfCarmel
efficient performance oftheServices andso asnotto delay orinterfere with O&MContractor’s
performance ofitsobligations under theContract Documents.
4.2 Site Access.
Throughout theperiod of O&MContractor’sperformance of theServices, Owner shall afford O&M
Contractor, andits Sub Operators, consultants andsuppliers uninterrupted access tothe Site inorder to
timely andefficiently perform theServices. Owner shall provide sufficient space attheSite forthe
performance oftheServices andstorage ofEquipment andmaterials.
4.3 Representative of Owner.
Owner’sRepresentative shall beresponsible forproviding Owner-supplied information andapprovals ina
timely manner topermit O&MContractor to fulfill itsobligations under theContract Documents. Owner’s
Representative shallbe vested withtheauthority toacton behalf ofOwner andO&MContractor shall be
entitled torelyon written communication from Owner’sRepresentative with respect toaService matter.
4.4 Force Majeure Events.
IfaForce Majeure Eventcauses damage toalloraportion oftheFacility, Owner shall procure andpay
forreplacement partsandmaterials torepair the damage caused bythe Force Majeure Event. Upon
Owner’srequest, O&MContractor shall assist Owner with procuring replacement parts andmaterials to
repair damage caused byaForce Majeure Event.
ARTICLE 5 – O&MEMPLOYEES ANDREPRESENTATIVES OFPARTIES
5.1 O&M Employees; Subcontractors.
O&MContractor shall identify, recruit, interview, and, subject toOwner'sapproval, hireor engage the
O&M Employees andanySubcontractors. O&MContractor shall ensure that allpersons providing
services through Subcontractors are, qualified (andifrequired, licensed) intheduties towhich they are
assigned. The working hours, ratesof compensation, andall other matters relating tothe engagement of
theO&M Employees andanySubcontractors shallbe determined inaccordance with anyApproved
Budget.
5.2 Employee Compliance with Regulations.
O&MContractor shall ensure thateach O&MEmployee andperson providing services through a
Subcontractor shall atall times comply with Applicable Laws andGovernmental Approvals applicable to
the Site andthe regulations and safety requirements ofOwner atthe Site.
5.3 Representative of O&M Contractor.
O&MContractor shall appoint, subject toOwner'sprior approval, aproperly qualified individual toactas
therepresentative ofO&M Contractor (the “O&M Contractor'sRepresentative”). O&M Contractor's
Representative shall advise Owner onissues regarding theoperation andmaintenance oftheFacility.
O&M Contractor'sRepresentative is authorized andempowered toactforandonbehalf of O&M
Contractor onallmatters concerning thisAgreement andits obligations hereunder, otherthan any
amendments toorwaivers under thisAgreement. Inallsuch matters, O&MContractor shallbe bound by
O&M AGREEMENT
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City OfCarmel
thewritten communications, directions, requests, anddecisions givenor madebyO&MContractor's
Representative (oritsdesignee) within thescope ofitsresponsibilities.
5.4 Representative of Owner.
Owner shall appoint anindividual (“Owner'sRepresentative”) to actastherepresentative of Owner in
connection withtheoperation andmaintenance of theFacility. Owner shall notify O&MContractor ofthe
identity ofOwner'sRepresentative andanyindividual appointed in replacement thereof. Owner's
Representative shall have fullauthority toactonbehalf ofOwner inallmatters concerning theoperation
andmaintenance ofthe Facility and theperformance ofOwner'sobligations under this Agreement, other
than authority toagree to anyamendments, modifications, orwaivers ofthisAgreement, andexcept in
relation tomatters which Owner may from time totime byNotice to O&MContractor reserve to itself.
Owner shall, subject totheforegoing, bebound bythe written communications, directions, requests, and
decisions given ormade byOwner'sRepresentative within thescope ofitsresponsibilities.
5.5 Designation of Representatives
Owner andO&MContractor designate theindividuals listed belowastheir representatives, each of which
hastheauthority andresponsibility setforth inthisAgreement andshall bevested with fullauthority toact
astheParties’ respective agent inallrespects with regards totheobligations and rightssetforth herein:
Owners Representative:
Name:
Address:
Phone:
Email:
O&M Contractor’s Representative:
Name: Tommy Mitchell
thAddress:1000E. 116 St. Carmel, IN 46032
Phone: 317-818-6817
Email: Tommy.Mitchell@telamon.com
5.6 Cooperation with Other Contractors
O&MContractor acknowledges thatOwner may, from time totime, retain other contractors toprovide
administrative andmanagement services forOwner in connection with theFacility andagrees, atno cost
orexpense toO&MContractor, toreasonably cooperate andcoordinate itsactivities hereunder with such
contractors. O&MContractor shall notbeheld liable orresponsible fortheactions ornegligence ofsuch
other parties retained byOwner. During thelast90Days oftheTerm, O&MContractor shall provide
reasonable assistance toOwner totransition theoperation oftheFacility toOwner oritsdesignee.
O&M AGREEMENT
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City OfCarmel
5.7 O&M Contractor Employment of O&M Employees.
O&M Contractor acknowledges andagrees that all O&MEmployees shallbe employed by O&M
Contractor oranAffiliate ofO&MContractor. O&MContractor willberesponsible for, orarrange for,
paying thesalaries andallbenefits ofsuch employees, meeting allgovernmental liabilities withrespect to
such employees, andsupervising anddetermining alljobclassifications, staffing levels, duties, andother
terms of employment fortheO&M Employees in accordance with Applicable Laws. O&M Contractor shall
have fullsupervision andcontrol over theO&MEmployees andshall useallreasonable efforts to
maintain appropriate order anddiscipline among its personnel andshall cause each Subcontractor to
maintain similar standards withrespect tosuchSubcontractor'spersonnel.
Article6 - INFORMATION, REPORTS, AUDITS, RECORDS
6.1 Information; Project Contracts.
Owners shall provide O&MContractor with allinformation inOwner'spossession reasonably necessary
forO&MContractor tocarry out itsduties hereunder.
Owner shall deliver toO&MContractor (a) acopy ofeach oftheProject Contracts which is currently in
effect toO&MContractor promptly after theexecution ofthisAgreement and (b) acopy ofeach of the
Project Contracts which areexecuted after thedate hereof promptly after their execution. Before
executing anyamendment, modification or supplement toaProject Contract, oranyother agreements
which may affect theperformance oftheServices byO&M Contractor (each an “Additional Agreement”),
Owner shall totheextent reasonably practicable consult withO&M Contractor todetermine theimpact (if
any) ofsuch Additional Agreement onanythen-effective Approved Operating Plan, Approved
Maintenance Program, Approved Budget, thisAgreement or O&MContractor'sperformance ofthe
Services hereunder.
6.2 Reports and Written Notices.
O&M Contractor shallprovide Owner with such reports asarerequired or reasonably requested from time
to timeby Owner, andshall comply with those reporting requirements prescribed by Applicable Laws or
setoutintheProject Contracts, theApproved Operating Plan, Approved Maintenance Program, the
Standing Procedures, or anyGovernment Approval, which aredefined therein asbeing O&MContractor
responsibilities. IfOwner requests anyreport, contract, agreement, arrangement, document or other
information relating toorin connection with theFacility ortheServices (including anySubcontracts, other
third party contracts andanyagreements orarrangements related thereto), O&MContractor shall use
reasonable efforts (subject totheprovisions ofanyconfidentiality orsimilar agreement towhich O&M
Contractor is aparty) toattain such report, contract, agreement, arrangement, document or other
information attherequest of Owner andshallsubmit such report, contract, agreement, arrangement
document orother information toOwner assoonasreasonably practicable following such request.
Owner may from time totime specify anychanges to bemadeto anyoftheformats foranyreport orplan
including anyOperating Plan, Budget or Maintenance Program) required hereunder. Therelevant
revised format shall beadopted byO&MContractor with effect from thedate ofsuch revision andshall be
applied inrelation to thefirstperiod towhich such report orplan relates commencing after receipt of
Owner'sNotice specifying such changes.
O&M AGREEMENT
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6.3 Notice of Certain Matters.
Upon obtaining knowledge thereof, O&MContractor shall submit toOwner prompt Notice of:
a) anylitigation orclaims, disputes, oractions, pending orthreatened, concerning theFacility, any
Project Contract, ortheServices tobe performed hereunder;
b) anylapse ortermination ofanyGovernment Approval, oranyrefusal orthreatened refusal to
grant, renew, orextend, oranyaction pending orthreatened that might affect thegranting,
renewal, or extension of anyGovernment Approval;
c) anydispute with, ornotice ofviolation orpenalty issued by, anyGovernment Authority; or
d) anyother material information regarding theFacility.
6.4 Notice of Other Matters.
O&M Contractor shallprovide Notice toOwner ofthematters described below within thetime period
specified foreach matter:
a) O&M Contractor shallprovide Notice toOwner assoon aspossible intheevent ofanyequipment
failure which willrequire acapital expenditure;
b) O&MContractor willprovide prompt Notice toOwner regarding anymaterial deviations from the
Approved Operating Plan;
c) With respect to anyequipment procured byO&MContractor onbehalf ofOwner, O&MContractor
shall deliver acopy ofanyrelevant Manufacturer'sRecommendations or other industry
information toOwner as soonasreasonably practicable following receipt thereof byO&M
Contractor;
d) O&MContractor shall provide Notice assoon aspossible oftheviolation ofanyGovernment
Approval orApplicable Law inthe operation andmaintenance oftheFacility; and
e) O&MContractor shall provide Owner with safety incident reports within ten (10) Days ofthe
occurrence ofanysafety incident.
6.5 Books and Records
O&MContractor shall maintain complete, accurate, andup-to-date service records, relating tothe
operation and maintenance oftheFacility, andasnecessary toverify safety and performance.
7 – RESPONSIBILITY FOR COSTS ANDEXPENSES
7.1 Owner and O&M Contractor Responsibility.
Procurement ofMaterials andServices. Owner shall pay, orreimburse O&M Contractor for, allOperating
Expenses.
7.2 Operating Expenses.
Operating Expenses” shallmeantheaggregate of allcosts andexpenses incurred (andsubstantiated by
copies of receipts orotherevidence acceptable to Owner) byO&MContractor which aredirectly related
totheperformance oftheServices orin connection with theoperation andmaintenance oftheFacility
less allsales anduseTax rebates relating totheFacility andtheconstruction thereof thatanymember of
the O&MContractor Group receives andthat have not been paid toOwner, shall include:
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a) LaborCosts;
b) thecost of spares, tools, equipment, consumables, materials, chemicals, catalysts, andsupplies
other than Natural Gas) procured inaccordance with theprovisions ofthisAgreement;
c) thecost ofSubcontract laboror services procured inaccordance with theprovisions ofthis
Agreement;
d) capital expenditures andmaintenance expenses incurred inaccordance withtheprovisions of
this Agreement;
e) allTaxes chargeable with respect totheoperation andmaintenance oftheFacility;
f) allother costs reasonably incurred intheperformance of O&MContractor'sduties underthis
Agreement.
7.3 Limitations.
Except asprovided inthefollowing sentence, O&MContractor shall have noauthority toundertake any
transaction or incuranyexpenditure inthename ofor onbehalf ofOwner orotherwise, which isnot
approved bytheowner. O&MContractor shall beentitled to incuranyexpenditure which is necessary to
remedy anEmergency;
7.5 Billing Reports; Invoices.
Assoon aspracticable aftertheend ofeach Month, butinanycase within thirty (30) days after theendof
each Month, O&MContractor shall provide Owner with aBilling Report fortheFacility setting forth the
Services provided totheFacility, theActual Operating Expenses incurred during such Month, with
reasonable detail regarding thenature andamount ofeach such Actual Operating Expense, Each Billing
Report shall only bewith respect tothisAgreement andthe Actual Operating Expenses hereunder (and
shall exclude anycostsand expenses related toanyother operation and maintenance agreement orany
management service orsimilar agreement orarrangement) andshallbe accompanied byreasonable
detail toverify theActual Operating Expenses were properly incurred, including appropriate timerecords,
receipts, andother information asOwner may reasonably request. Concurrently with each Billing Report,
O&MContractor shall also provide Owner with aninvoice, payable byOwner within thirty (30) days of
receipt.
7.7 Taxes.
a) Notwithstanding anything in thisAgreement to thecontrary, O&MContractor shall beresponsible
forthepayment of anyincome, franchise orsimilar tax assessed or based upon thegross ornet
income ofO&MContractor andOwner shall beresponsible forthepayment ofanyincome,
franchise orsimilar taxassessed orbased upon thegross ornetincome ofOwner.
b) IfanyTax (other than payroll orother employee-related Taxes) ischargeable to O&MContractor
in respect ofOperating Expenses, including thesupply of goods andservices hereunder toor by
O&MContractor, Owner shall paysuch Tax directly totheappropriate Government Authority, or,
atOwner'selection reimburse O&MContractor forsuch Tax. O&M Contractor andO&MServices
shall, following consultation with Owner'sRepresentative, apply foranyexemption available toit
inrespect ofanyTax payable byO&M Contractor orO&MServices.
O&M AGREEMENT
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ARTICLE 8 – FORCE MAJEURE
8.1 Effect of Force Majeure Event.
Neither Party shall beconsidered in default intheperformance ofanyoftheobligations contained inthe
Contract Documents whenandto theextent thefailure of performance shall becaused byaForce
Majeure Event. Ifeither Party isrendered wholly orpartly unable toperform itsobligations under the
Contract Documents because of aForce Majeure Event, such Party shallbeexcused from performance
affected bytheForce Majeure Event totheextent andfortheperiod oftime soaffected, provided that:
a. The nonperforming Party, within fourteen (14) Days after thenonperforming Party
actually becomes aware oftheoccurrence andimpact oftheForce Majeure Event, shall
give theother Party notice describing theevent orcircumstance indetail, including an
estimation of itsexpected duration andprobable impact ontheperformance of the
affected Party’sobligations hereunder andcontinues to furnish timely regular reports with
respect thereto during thecontinuation ofandupon thetermination of theForce Majeure
Event;
b. thesuspension of performance shall beofno greater scope andof nolonger duration
than isreasonably required bytheForce Majeure Event;
c. theobligations ofeither Partythat arose before theoccurrence causing thesuspension of
performance andtheperformance thatis notprevented bytheoccurrence, shallnotbe
excused as aresult ofsuch occurrence, including Owner’sorO&M Contractor’s
obligations to paymoney (including, butnotlimited to, milestone payments which
become dueandpayable with respect totheperiod prior totheoccurrence of theForce
Majeure Event);
d. thenonperforming Party shall usecommercially reasonable efforts toremedy itsinability
toperform andmitigate theeffectofsuch event andresume itsperformance atthe
earliest practical time after cessation of such occurrence oruntil such time that
performance ispracticable;
e. when thenonperforming Party isable toresume performance of itsobligations under the
Contract Documents, that Party shall give theother Party notice tothat effect; and
f. O&MContractor shall beentitled toatime extension foranyForce Majeure Event tothe
extent theoccurrence of such event delayed O&MContractor’sperformance ofits
obligations under thisAgreement.
ARTICLE 9 – EVENTS OFDEFAULTANDREMEDIES
9.1 O&M Contractor Events of Default.
The following circumstances shall constitute events ofdefault onthepart ofO&MContractor (“O&M
Contractor Events ofDefault”) under thisAgreement:
a) thebankruptcy, insolvency, dissolution, orcessation ofthebusiness ofO&MContractor;
b) O&MContractor assigns itsrights under thisAgreement except aspermitted hereunder;
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c) amaterial failure byO&MContractor toperform itsobligations hereunder (including the
performing ofServices) which continues forthirty (30) Days after O&MContractor'sreceipt of
Notice ofsuch failure from Owner which Notice shall include Owner'srecommendation foracure
ofsuch failure, unless O&MContractor commences tocure such failure within said thirty (30)
Days andcures such failure within seventy-five (75) Days after itsreceipt oftheaforesaid Notice.
9.2 Owner Events of Default.
The following circumstances shall constitute events ofdefault onthepart ofOwner (“Owner Events of
Default”) under thisAgreement:
a) thebankruptcy, insolvency, dissolution, orcessation ofthebusiness ofOwner;
b) amaterial failure byOwner toperform itsobligations hereunder which continues forthirty (30)
Days afterOwner'sreceipt of Notice ofsuch failure, unless Owner commences to cure such
failure within said thirty (30) Days and either cures orcontinues todiligently attempt thecure of
such failure; or
c) adefault byOwner inits payment obligations to O&MContractor, unless Owner hascuredsuch
breach within thirty (30) days from receipt ofNotice from O&MContractor.
9.3 Remedies.
Upon theoccurrence andduring thecontinuance ofanO&M Contractor Event of Default, Owner shall
have theright, in itssoleandabsolute discretion, todoanyorallofthefollowing: (a) terminate this
Agreement pursuant toSection 9.4; (b) obtain specific performance ofO&MContractor'sobligations
hereunder; (c) perform (or engage athird party toperform) O&MContractor'sobligations hereunder in
exchange for (i) areduction in theOperating Expenses included in theApproved Operating Plan
associated with suchobligations equal tothereasonable costs of, orincidental to, performing (or
engaging athird party toperform) such obligations and (ii) to theextent such costsexceed such
Operating Expenses included intheApproved Operating Plan, areduction intheO&M Feepaid or
payable for theapplicable year equal tosuch excess); and (d) pursue anyandall otherremedies
available at laworinequity. Upon theoccurrence andduring thecontinuance of anOwner Event of
Default, O&MContractor shall havetheright, initssole and absolute discretion, todoanyor allofthe
following: (A) terminate thisAgreement; and (B) pursue anyandallother remedies available atlaworin
equity.
9.4 Termination Procedure.
Intheevent ofanO&MContractor Event ofDefault orOwner Event ofDefault, thenon-defaulting Party
may give aNotice of termination totheother Party (a “Termination Notice”) which shall specify in
reasonable detail thecircumstances giving riseto theTermination Notice. ThisAgreement shall terminate
onthedate specified intheTermination Notice (“Termination Date”), which date shall notbeearlier than
thedate upon which theapplicable Party isentitled toeffect such termination asprovided herein.
9.5 Successor to O&M Contractor.
Upon receipt ofaTermination Notice from Owner:
a) O&MContractor shall useallreasonable efforts to facilitate theappointment andcommencement
ofduties of anyPerson tobeappointed byOwner to provide administrative andadvisory services
inconnection with the operation andmaintenance oftheFacility (the “Successor O&M
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Contractor”) soasnottodisrupt thenormal operation andmaintenance oftheFacility andshall
provide fullaccess totheFacility and toallrelevant information, data, and records relating thereto
totheSuccessor O&MContractor anditsrepresentatives, andaccede toallreasonable requests
made bysuch Persons in connection with preparing for taking over theoperation and
maintenance oftheFacility
b) Promptly after termination, O&MContractor shall deliver to (and shall, with effect from
termination, holdintrust forandtotheorder of) Owner ortotheSuccessor O&MContractor all
property initspossession orunder itscontrol owned byOwner orleased orlicensed toOwner. All
spares, supplies, consumables, special tools, operating logs, books, records, operation and
maintenance manuals, andanyother items furnished aspart oftheServices hereunder orat
direct cost toOwner shall be leftattheSite.
c) O&M Contractor, totheextent allowed by suchagreements andapprovals, shall transfer tothe
Successor O&M Contractor, as fromthedate oftermination, itsrights as O&MContractor under
allcontracts entered intobyit, andallGovernment Approvals obtained andmaintained byit, in
theperformance of itsobligations under thisAgreement orrelating totheoperation and
maintenance oftheFacility. Pending such transfer, O&MContractor shall holditsrights and
interests thereunder fortheaccount and totheorder ofOwner, Successor O&MContractor, or
Owner'sdesignee. Owner shall indemnify O&M Contractor forallliabilities incurred byO&M
Contractor undersuch contracts totheextent that suchliabilities arecaused byOwner, the
Successor O&MContractor, orOwner'sdesignee during thecontinuation andperformance of
such contracts byOwner, theSuccessor O&MContractor, orOwner'sdesignee, asapplicable.
O&MContractor shall execute alldocuments andtake allother commercially reasonable actions
toassign andvest inOwner allrights, benefits, interest, andtitleinconnection with such
contracts.
d) Upon Notice from Owner toO&M Contractor onorprior totheTermination Date, foraperiod of
uptoninety (90) days following theTermination Date, O&MContractor shall provide theservices
of itsO&M Employees as may berequired or reasonably requested by Owner to enable Owner to
operate andmaintain Facility andtrain anySuccessor O&MContractor. The Notice invoking this
provision may beincluded intheTermination Notice, andshall provide Owner'sgood faith
estimate ofhow many days O&MContractor'sservices willberequired post-Termination Date, up
totheninety (90) days specified herein. Subject to anylimitations setforth herein, O&M
Contractor'sOperating Expenses, assetforth inthethen-current Approved Operating Budget or
as otherwise reasonably incurred andagreed bythe Parties inconnection with thetransition,
shall bepaid byOwner andadditionally, Owner shall payO&MContractor, fortheperiod for
which Owner requests O&MContractor toprovide Services hereunder, thePre- Operating Fee or
theO&M Fee, as applicable, prorated foranypartial Month, based uponthenumber of days
elapsed insuchMonth.
ARTICLE 10 – INDEMNIFICATION
10.1 Loss or Damage to the Facility.
O&MServices shall beresponsible foranyphysical loss ordamage to theFacility resulting from O&M
Contractor'sorO&MServices' gross negligence orwillful misconduct inthecourse of theperformance of
itsobligations under thisAgreement ortheSecondment Agreement to theextent related thereto, inan
amount nottoexceed thefees paidto O&MContractor forsuch Yearplus awithholding of anyfees
remaining tobepaid for such Year.
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10.2 O&M Services Indemnity.
TOTHE FULLEST EXTENT PERMITTED BYLAW, O&MSERVICES SHALL DEFEND, INDEMNIFY
AND HOLD HARMLESS THE OWNER GROUP FROM AND AGAINST ALLDAMAGES, LOSSES,
COSTS ANDEXPENSES (INCLUDING ALL REASONABLE ATTORNEYS' FEES, AND LITIGATION OR
ARBITRATION EXPENSES) ARISING OUT OFORRESULTING FROM ORRELATED TO (I) INJURY
TOORDEATH OFANY MEMBER OFTHE O&MCONTRACTOR GROUP OR (II) DAMAGE TOOR
DESTRUCTION OFPROPERTY OFANY MEMBER OFTHE O&MCONTRACTOR GROUP
OCCURRING IN CONNECTION WITH THE SERVICES, REGARDLESS OF THE CAUSE OFSUCH
INJURY, DEATH, PHYSICAL DAMAGE ORDESTRUCTION, INCLUDING THE SOLE ORJOINT
NEGLIGENCE, BREACH OFCONTRACT OROTHER BASIS OFLIABILITY OFANY MEMBER OFTHE
OWNER GROUP.
Tothefullest extent permitted bylaw, O&MServices shall indemnify, defend, andhold harmless the
Owner Group against anyandallLosses ofwhatever kind andnature, including all related costs and
expenses incurred inconnection therewith, inrespect ofpersonal injury toordeath ofthird parties andin
respect ofloss ofordamage toany third party property totheextent that the same arises outof:
a) without duplication, anybreach byO&MContractor of itsobligations hereunder orO&M Services
ofitsobligations under theSecondment Agreement;
b) anynegligent actoromission onthepart ofO&MContractor orO&MServices; and
c) anygross negligence orwillful misconduct ofO&MContractor orO&MServices.
10.3 Owner Indemnity.
TOTHE FULLEST EXTENT PERMITTED BYLAW, OWNER SHALL DEFEND, INDEMNIFY AND HOLD
HARMLESS THE O&MCONTRACTOR GROUP FROM AND AGAINST ALL DAMAGES, LOSSES,
COSTS ANDEXPENSES (INCLUDING ALL REASONABLE ATTORNEYS' FEES, AND LITIGATION OR
ARBITRATION EXPENSES) ARISING OUT OFORRESULTING FROM ORRELATED TO (I) INJURY
TOORDEATH OFANY MEMBER OFTHE OWNER GROUP OR (II) DAMAGE TOORDESTRUCTION
OFPROPERTY OFOWNER GROUP (EXCLUDING THE FACILITY) OCCURRING INCONNECTION
WITH THE SERVICES, REGARDLESS OFTHE CAUSE OFSUCH INJURY, DEATH, PHYSICAL
DAMAGE ORDESTRUCTION, INCLUDING THE SOLE ORJOINT NEGLIGENCE, BREACH OF
CONTRACT OROTHER BASIS OFLIABILITY OFANY MEMBER OFTHE O&MCONTRACTOR
GROUP.
Tothefullest extent permitted bylaw, Owner shall indemnify, defend, andhold harmless O&M Contractor
against anyandallclaims forLosses of whatever kind andnature, including allrelated costsand
expenses incurred inconnection therewith, inrespect ofpersonal injury toordeath ofthird parties andin
respect ofloss ofordamage toany third party property totheextent that the same arises outof:
a) anybreach byOwner ofitsobligations hereunder;
b) any negligent actoromission onthepart ofOwner; and
c) anygross negligence orwillful misconduct ofOwner.
10.4 Other Indemnity Rules.
IfanyLosses arise, directly orindirectly, in whole orinpart, outofthejointor concurrent negligence of
theParties, each Party'sliability therefor shall belimited tosuch Party'sproportionate degree offault.
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Payments required tobe paidby O&MServices orO&M Contractor toOwner or duetobreach ofthis
Agreement shall not constitute an Operating Expense or otherwise be reimbursable toO&M Contractor,
orO&MServices from Owner.
ARTICLE 11 – LIMITATION OFLIABILITY
11.1 Limitation of Liability.
The aggregate amount ofdamages, compensation, orother such liabilities payable byOwner underthis
Agreement foranydamages, compensation orliabilities incurred inanyYear shall belimited to, andshall
innoevent exceed, anamount equal tothe feepayable toO&MContractor under Article 10 plus
reimbursable Operating Expenses forthat Year; provided however, theforegoing limitation ondamages,
compensation orliabilities shall notapply toanintentional breach ofthis Agreement byOwner.
The aggregate amount of damages, compensation, orother suchliabilities (other than (i) with respect to
thelosses ordamages described inSection 10.1, totheextent such losses ordamages exceed the
limitation setforth inclause (ii) ofSection 10.1butonly toextent ofthe limitation setforth inclause (i) of
Section 10.1, and
ii) theindemnity provided in thefirstparagraph ofSection 10.2) payable by O&MServices orO&M
Contractor under thisAgreement for anydamages, compensation orliabilities incurred inanyYear shall
belimited to, and shall inno eventexceed, thefees payable toO&MContractor underArticle 10 insuch
Year.
11.2 Consequential Damages.
NOPARTY SHALL BELIABLE UNDER THIS AGREEMENT ORUNDER ANYCAUSE OFACTION
RELATED TOTHE SUBJECT MATTER OFTHIS AGREEMENT, WHETHER INCONTRACT,
WARRANTY, TORT INCLUDING NEGLIGENCE, STRICT LIABILITY, PROFESSIONAL LIABILITY,
PRODUCT LIABILITY, CONTRIBUTION, ORANY OTHER CAUSE OF ACTION FOR SPECIAL,
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL ORCONSEQUENTIAL LOSSES ORDAMAGES,
INCLUDING LOSS OFPROFIT, LOSS OFUSE, LOSS OFOPPORTUNITY, LOSS OFREVENUES, OR
LOSS OFGOOD WILL; PROVIDED THAT THE FOREGOING SHALL NOT APPLY TOINDEMNITIES
EXPRESSLY PROVIDED INTHIS AGREEMENT.
ARTICLE 13 – CONFIDENTIALITY
13.1 Confidential Information.
O&MContractor shall keep confidential allmatters relating totheServices, theFacility, theProject
Contracts, andthisAgreement, andwillnotdisclose toanyPerson, anyinformation, data, experience,
know-how, documents, manuals, policies or procedures, computer software, secrets, dealings,
transactions, oraffairs ofor relating toOwner, theFacility, theProject Contracts, or thisAgreement (the
Confidential Information”).
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13.2 Permitted Disclosure.
The restrictions ondisclosure ofConfidential Information byO&MContractor shall notapply tothe
following:
a) anymatter which isalready generally available andinthepublic domain other than through
unauthorized disclosure byO&M Contractor or isotherwise known to O&MContractor from a
source that is notinviolation of aconfidentiality obligation to Owner;
b) anydisclosure which may reasonably berequired fortheperformance of O&MContractor's
obligations under thisAgreement; or
c) anydisclosure which may berequired forthecompliance byO&MContractor with Applicable
Laws orforthepurposes of legalproceedings, ifO&MContractor hasnotified Owner prior toany
such disclosure.
13.3 Additional Undertakings of O&M Contractor.
O&MContractor further undertakes:
a) tolimit access toConfidential Information toO&MEmployees, O&MContractor'sofficers,
directors, attorneys, agents, employees, or other representatives who reasonably require the
Confidential Information toensure thesatisfactory performance of theServices;
b) toinform each ofitsSubcontractors officers, directors, attorneys, agents, employees andother
representatives towhom Confidential Information is disclosed oftherestrictions ondisclosure of
such information assetforth herein andtousereasonable efforts toensure that allsuch Persons
comply with suchinstructions; and
c) upon receipt ofawritten request from Owner and, inanyevent, upon completion oftheServices
orearlier termination ofthisAgreement to return toOwner alldocuments, papers, computer
programs, software orrecords containing Confidential Information, ifsorequested byOwner.
13.4 Public Announcements.
O&M Contractor shall not, andO&MContractor shall usereasonable efforts to ensure that its
Subcontractors andtheir respective officers, directors, attorneys, agents, employees andother
representatives shall not, issue ormake anypublic announcement orstatement regarding theFacility,
thisAgreement orO&MContractor'sengagement hereunder unless, prior thereto, Owner hasbeen
furnished with acopy thereof andhasapproved the same, which approval willnotbeunreasonably
withheld. O&MContractor further warrants andundertakes that itshall referall media inquiries with
respect tothisAgreement orthematters covered bythisAgreement toOwner orOwner'sRepresentative.
ARTICLE 14 – DISPUTE RESOLUTION
14.1Negotiation.
Intheevent thatanyDispute cannot beresolved informally within thirty (30) daysafter theDispute arises,
either Party maygive written notice of theDispute (a “Dispute Notice”) totheother Parties requesting that
arepresentative of Owner'ssenior management, O&MContractor'ssenior management andO&M
Services' senior management meet inanattempt toresolve theDispute. Each such management
representative shall meet at amutually agreeable time andplace within thirty (30) days after receipt by
thenon- notifying Party ofsuch Dispute Notice, andthereafter asoften asthey deem reasonably
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necessary toexchange relevant information andtoattempt toresolve theDispute. Inno event shallthis
Section 14.1be construed tolimit anyParty'sright totake anyaction under thisAgreement. TheParties
agree that ifanyDispute isnotresolved within ninety (90) days after receipt of theDispute Notice given in
thisSection 14.1, then anyParty maybynotice to theother Parties refer theDispute to bedecided by
final andbinding arbitration.
14.2 Continuation of Work During Dispute.
Notwithstanding anyDispute, itshallbetheresponsibility ofeach Party tocontinue toperform its
obligations under thisAgreement pending resolution ofDisputes.
ARTICLE 15 – REPRESENTATION ANDWARRANTIES
15.1 Representations and Warranties by Each Party.
Each Party represents andwarrants totheother Party astoitself, that, asofthedate hereof:
a) itisdulyorganized andvalidly existing under thelaws ofitsjurisdiction of itsorganization andhas
all requisite partnership power andauthority toown itsproperty andassets andconduct its
business aspresently conducted orproposed tobeconducted under thisAgreement;
b) ithasthepartnership orlimited liability company power andauthority, asthecase maybe, to
execute anddeliver thisAgreement, to consummate thetransactions contemplated hereby andto
perform itsobligations hereunder;
c) ithastaken all necessary action toauthorize its execution, delivery andperformance of this
Agreement, andthisAgreement constitutes thevalid, legal andbinding obligation of such Party
enforceable against itinaccordance with itsterms except assuch enforcement maybelimited by
bankruptcy, insolvency, moratorium or similar laws affecting therights ofcreditors orbygeneral
equitable principles (whether considered inaproceeding inequity oratlaw);
d) noGovernment Approval isrequired for (i) thevalid execution anddelivery ofthisAgreement or
ii) theperformance bysuchParty ofitsobligations under thisAgreement, except such as (A)
have beenduly obtained ormade or (B) canreasonably beexpected tobe obtained or made
when needed;
e) none oftheexecution or delivery ofthisAgreement, theperformance bysuch Party ofits
obligations inconnection with thetransactions contemplated hereby, orthefulfillment oftheterms
andconditions hereof shall: (i) conflict with orviolate any provision ofitsorganizational
documents, (ii) conflict with, violate orresultin abreach of, anyApplicable Law currently ineffect,
or (iii) conflict with, violate orresult inabreach of, orconstitute adefault under orresult inthe
imposition orcreation of, anysecurity under anyagreement orinstrument towhich itisaParty or
bywhich itoranyofitsproperties orassets arebound;
f) nomeeting hasbeen convened foritsdissolution orwinding-up, nosuch step isintended byit
and, sofarasitisaware, nopetition, application orthelikeis outstanding orthreatened forits
dissolution orwinding-up; and
g) itis notaparty toanylegal, administrative, arbitral orother proceeding, investigation or
controversy pending, or, tothebest knowledge of suchParty, threatened, thatwould materially
adversely affectsuch Party'sability toperform its obligations under thisAgreement.
SIGNATURE PAGE FOLLOWS\]
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INWITNESS WHEREOF, theduly authorized officers oftheParties have executed thisAgreement on
behalf of theParties, allas ofthedate firstinSection 1.3.
Owner:
CITY OF CARMEL
Signature:
Name:
Title:
O&M Contractor:
TELAMON ENERGY LLC
Signature:
Name:
Title:
O&M AGREEMENT
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EXHIBIT A – DESCRIPTION OFSERVICES
O&MScope: O&MContractor shall beresponsible forthefollowing:
1. Asset Management
2. Preventative Maintenance
1. Asset Management
Remote Monitoring
o Routine surveillance ofthesystem; client tobenotified when system isdown within 2
business days
Quarterly
o Performance Reports (4peryear)
Annually
o Annual presentation ofperformance
2. Preventative Maintenance
A. 2onsite inspections annually:
a. Module Visual Inspection:
i. Inspect 100% ofglass side forcleanliness andobvious defects (cracked glass,
delamination, buss-barseparation, moisture intrusion)
ii. Site condition inspection (heat cracks, tears, andsigns ofseparation)
iii. Inspect 10% ofmodule clamps forlooseness
b. Racking Inspection
i. Visually inspect torque marks
ii. Inspect forsigns ofstress ordeformation
iii. Inspect forsigns ofcorrosion
iv. Check for section movement
c. String Inverters
i. Inspect forcorrosion, labeling andbasic condition ofhousing
ii. Verify functionality ofdisplay andoperation of PVsystem
iii. Inspect base ofinverter andconduit entry points
iv. Clean inverter interior andinspect for moisture intrusion
v. Check string fuse functionality
vi. Check ground straps and ensure allgrounds areintact and tight totheenclosure
vii. Clean heat sinks andfilters (replace filters ifnecessary)
viii. Thermal imaging review for heatanomalies
d. AC/DCDisconnects, ACCombiners and PanelBoards:
i. IRscan allstring terminations
ii. Ensure allterminations arefully seated withintermination points with nomixed
damage orcorrosion towires
e. DAS and MET Stations
i. Inspect cabinet forlabeling, corrosion, moisture intrusion andbasic condition of
device
ii. Ensure allconductors and wiresarerouted inaneat and cleanmanner
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iii. Verify data terminations tomanufacturers specs
iv. Clean reference celland/orpyranometer (Replace desiccant)
v. Verify functionality ofall DASComponents
vi. Schedule ofPeriodic Maintenance
AllCorrective Maintenance activities arenotpart ofthebase O&Mscope and willbebilled onTime and
Material. Also there will beaservice fee foranyonsite trouble shooting.
Payment Schedule:
a. The annual Service Fee fortheFacility is $3,500/Year. The annual Service Fee willbe
invoiced infour equal installments onaquarterly basisatthebeginning ofeach quarter,
andallpayments under thisagreement willbedueandpayable within 30days ofdate of
invoice (i.e. Net30). After thefirstyear a2.5% escalation oftheAnnual Service Fee will
beapplied.
O&M AGREEMENT
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