Document:

exhibit10-1.htm

    ASSET PURCHASE AGREEMENT

     

    

     

    by
and among

     

    

     

    RELIANT ENERGY WHOLESALE GENERATION, LLC and

     

    RELIANT
ENERGY ASSET MANAGEMENT, LLC,

     

    as
Sellers,

     

    

     

    and

     

    

     

    NEVADA
POWER COMPANY,

     

    as
Purchaser

     

    

     

    APRIL
21, 2008

     

    

     

    BIGHORN
POWER PLANT

     

    Clark
County, Nevada

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    

    Page

     

    
      	
              ARTICLE
      I DEFINITIONS; USAGE[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      1.1Definitions[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      1.2Rules as
      to Usage[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      1.3Schedules
      and Exhibits[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      II SALE AND PURCHASE; PRICE; CLOSING[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.1Sale and
      Purchase; Definition of Purchased Assets; Excluded
      Liability[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.2Purchase
      Price[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.3Allocation
      of Purchase Price[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.4The
      Closing[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.5Closing
      Deliveries.[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      2.6Further
      Assurances; Post-Closing Cooperation[INSERT PAGE
      NUMBER]

            

    

     

    
      	
              ARTICLE
      III REPRESENTATIONS AND WARRANTIES OF THE SELLERS[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.1Existence[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.2Authority[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.3Binding
      Agreement[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.4No
      Conflicts[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.5Approvals
      and Filings[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.6No
      Material Adverse Effect[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.7Legal
      Proceedings[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.8Compliance
      with Laws[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.9Title to
      Personal Property[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.10Real
      Property.[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.11Condition
      of Purchased Assets[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.12Warranty
      Matters[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.13Contracts.[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.14Permits.[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.15Insurance[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.16Environmental
      Matters.[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.17Labor
      Matters[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.18Employee
      Matters[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.19Brokers[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      3.20Intellectual
      Property[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      IV REPRESENTATIONS
      AND WARRANTIES OF PURCHASER[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.1Existence[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.2Authority[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.3Binding
      Agreement[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.4No
      Conflicts[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.5Approvals
      and Filings[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.6Legal
      Proceedings[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.7Brokers[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.8Financial
      Resources[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      4.9Opportunity
      for Independent Investigation[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      V COVENANTS[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.1Efforts
      to Close and Fulfillment of Conditions[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.2Operation and
      Maintenance of Purchased Assets[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.3Purchaser's
      Inspection Right[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.4Cooperation
      with Facility Takeover and
      Transition of Operations[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.5Employee
      and Benefit Matters[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.6Risk of
      Loss[INSERT
      PAGE NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.7Interim
      Reports[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.8Update
      of Schedules[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.9No
      Solicitation
      of Competing Transaction[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.10Use of
      Certain Names[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.11Support
      Obligations.[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      5.12Termination
      of Certain Services and Contracts[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      VI CONDITIONS TO CLOSING[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      6.1Purchaser's
      Conditions Precedent[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      6.2Sellers'
      Conditions Precedent[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      VII TERMINATION[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      7.1Termination
      Prior to Closing[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      7.2Effect
      of Termination or Breach Prior to Closing[INSERT PAGE
      NUMBER]

            

    

     

    
      	
              ARTICLE
      VIII INDEMNIFICATION[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      8.1Indemnification
      by Sellers[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      8.2Indemnification
      by Purchaser[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      8.3Method
      of Asserting Claims[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      8.4Limitations
      of Liability.[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      8.5Indemnification
      in Case of Strict Liability or Indemnitee Negligence[INSERT PAGE
      NUMBER]

            

    

     

    
      	
              ARTICLE
      IX TAX MATTERS[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.1Representations
      and Warranties[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.2Transfer
      Taxes[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.3Property
      Taxes[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.4Sellers'
      Tax Indemnification[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.5Purchaser
      Tax Indemnification[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.6Refunds[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.7Contests[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.8Assistance
      and Cooperation[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.9Information[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.10Tax
      Returns[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.11Survival
      of Obligations[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      9.12Adjustments
      to Purchase Price[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      X SURVIVAL; NO OTHER REPRESENTATIONS[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      10.1Survival
      of Representations, Warranties, Covenants and
      Agreements[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      10.2No Other
      Representations[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      XI DISPUTE RESOLUTION[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      11.1Dispute
      Resolution[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      11.2Venue[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      11.3Waiver
      of Trial by Jury[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      11.4Service
      of Process[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      XII LIMITED REMEDIES AND DAMAGES[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      12.1Exclusive
      Remedies[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      12.2Limitation
      of Liability[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      12.3Specific
      Performance[INSERT PAGE
  NUMBER]

            

    

     

    
      	
              ARTICLE
      XIII MISCELLANEOUS[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.1REI
      Guaranty[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.2Notices[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.3Payments[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.4Entire
      Agreement[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.5Expenses[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.6Public
      Announcements[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.7Confidentiality[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.8Waivers[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.9Amendment[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.10No
      Construction Against Drafting Party[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.11No Third
      Party Beneficiary[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.12Headings[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.13Invalid
      Provisions[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.14Governing
      Law[INSERT
      PAGE NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.15No
      Assignment; Binding Effect[INSERT PAGE
  NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.16Counterparts[INSERT PAGE
      NUMBER]

            

    

     

    
      	
               
      

            	
              Section
      13.17Time of
      Essence[INSERT PAGE
  NUMBER]

            

    

     

     

    
      
        
           

          Bighorn
Generating Facility

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULES:

    

    
      	
              Schedule 1.1(a)

            	
              Assigned Facility
  Agreements

            
	
              Schedule 1.1(b), Part A

            	
              Materials and Equipment

            
	
              Schedule 1.1(b), Part B

            	
              Stores and Inventory

            
	
              Schedule 1.1(c)

            	
              Requested Consents

            
	
              Schedule 1.1(d)

              Schedule 1.1(e)

              Schedule 1.1(f)

              Schedule 1.1(g)

              Schedule 1.1(h)

              Schedule 1.1(i)

            	
              Easements

              Permitted Liens

              Transferred Intellectual
      Property

              Project Employees

              Stores and Inventory
      Methodology

              Transferred Permits

            
	
              Schedule 2.1.3

            	
              Excluded Assets

            
	
              Schedule 5.2(b)(iii)

            	
              Material Assigned Facility
      Agreements

            
	
              Schedule 5.2(d)

            	
              Permitted Actions

            
	
               

              Sellers' Disclosure
Schedule

            	
               

              Section
      1.1(a):                                           Sellers'
      Knowledge Persons

              Section
      3.4:                                           Consents
      and Actions

              Section
      3.5:                                           Approvals
      and Filings

              Section
      3.7:                                           Sellers'
      Legal Proceedings

              Section
      3.10(d)Real
      Property - Material Liens

              Section
      3.10(f):Real
      Property – Commitments to or Agreements with any Governmental Authority
      Affecting the Use or Ownership of the Real
      Property

              Section
      3.10(g):Real
      Property – Agreements for the Sale, Exchange, Encumbrance, Lease or
      Transfer of Any of the Real Property or Any Portion of the Same by
      Sellers

              Section
      3.10(h):Real
      Property – Notices of Non-Compliance with Applicable Material Conditions,
      Covenants and Restrictions that Encumber the Real
      Property

              Section
      3.11:Materials and Equipment and
      Tangible Personal Property

              Section
      3.12:Warranty
      Matters

              Section 3.14(a):Facility Permits

              Section
      3.14(b)(i):Permit
      Parties

              Section
      3.14(b)(ii):Compliance
      with and Status of Facility Permits

              Section
      3.15:List of Insurance
      Policies

              Section
      3.16:Environmental
      Matters

              Section 3.16(d):Material Environmental
      Permits

              Section
      3.18(b):Seller
      Plans

              Section
      3.20(a):Intellectual
      Property

              Section
      3.20(b):Infringement of Intellectual
      Property

              Section
      5.11(a):Support
      Obligations

              Section
      9.1:Tax Matters
      Exceptions

               

            
	
              Purchaser's Disclosure
      Schedule

            	
              Section
      1.1(a): Purchaser's Knowledge
      Persons

              Section
      4.5:Approvals
      and Filings

              Section
      4.6: Purchaser's Legal
      Proceedings

               

            

    

     

    EXHIBITS:

     

    
      	
              Exhibit
      A

              Exhibit
      B

              Exhibit
      C

            	
              Form
      of Bill of Sale and Assignment

              Form
      of Easement and Lease Assignment and Assumption Agreement

              Form
      of Assignment Agreement

            
	
              Exhibit
      D

            	
              Form
      of Requested Consent

            

    

    
      
        
           

          Bighorn
Generating Facility

          

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ASSET
PURCHASE AGREEMENT

     

    

     

    THIS
ASSET PURCHASE AGREEMENT (the "Agreement") is made
and entered into effective as of April 21, 2008 (the "Effective Date"), by
and among RELIANT ENERGY WHOLESALE GENERATION, LLC, a Delaware limited liability
company ("REWG"), RELIANT
ENERGY ASSET MANAGEMENT, LLC, a Delaware limited liability company ("REAM"), and NEVADA
POWER COMPANY, an electric utility organized under the laws of the State of
Nevada ("Purchaser").  REWG
and REAM are also each referred to herein individually as a "Seller" and
collectively as the "Sellers."  REWG
and REAM, on the one hand, and Purchaser, on the other hand, are also each
referred to herein as a "Party" and
collectively as the "Parties."

     

    RECITALS

     

    A.           REWG
wholly owns an operating natural gas-fired combined-cycle electric generation
plant known as the "Bighorn Generating
Facility" that is nominally rated approximately 598 MW and is
located 35 miles south of Las Vegas, Nevada in southern Clark County, Nevada,
near Primm, Nevada, on land leased by REWG.  REAM owns certain assets
used in the operation of the Bighorn Generating Facility.

     

    B.           REWG
and REAM are subsidiaries of, and indirectly wholly owned by, Reliant Energy,
Inc., a Delaware corporation ("REI").

     

    C.           Purchaser
desires to purchase all of the assets of, and used in connection with, the
Bighorn Generating Facility.

     

    D.           The
Parties have determined to set forth in this Agreement the terms and conditions
of their agreements regarding the foregoing.

     

    

     

    AGREEMENTS

     

    For and
in consideration of the Recitals set forth above, the respective covenants and
agreements of the Parties herein set forth and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the Parties, the Parties, intending to be legally bound, do hereby agree as
follows:

    

    

    ARTICLE
I                                

     

    

     

    DEFINITIONS;
USAGE

     

    Section
1.1 Definitions

     

     Unless the context shall otherwise require, capitalized terms used
in this Agreement shall have the meanings assigned to them in this Section
1.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "2002 Settlement
Agreement" means the Settlement Agreement, dated as of December 18, 2002,
among Reliant Energy Services, Inc., REWG (as successor-in-interest to Reliant
Energy Bighorn, LLC), Reliant Energy Arrow Canyon, LLC and
Purchaser.

     

    "2003 Settlement
Agreement" means the Settlement Agreement, dated as of January 31, 2003,
among Purchaser, SCE, Duke Energy Moapa, LLC, GenWest, LLC, Las Vegas
Cogeneration II, Mirant Las Vegas, LLC and REWG (as successor-in-interest to
Reliant Energy Bighorn, LLC), by which they resolved issues set for hearing in
FERC Docket No. ER02-2344-000 and certain SCE-related issues set for hearing in
FERC Docket Nos. ER02-1741-000 and ER02-1742-000.

     

    "2005 Settlement
Agreement" means the settlement agreement filed with FERC on May 23, 2005
among Purchaser, Purchaser's Chuck Lenzie Generating Station, Valley Electric
Association, Inc., SCE, GenWest, LLC, Las Vegas Cogeneration II, Mirant Las
Vegas, LLC, REWG and Southern Nevada Water Authority, which attached the Amended
and Restated 2003 Settlement Agreement and resolved the issues set for hearing
in FERC Docket Nos. ER02-1741-000 and ER02-1742-000 that were not resolved in
the 2003 Settlement Agreement, among other issues.

     

    "Acquisition Proposal"
shall mean any proposal or offer made by any Person other than Purchaser to
acquire all or a substantial part of the Project.

     

    "Action" means any
suit, claim, proceeding, arbitration, audit or investigation by or before any
Governmental Authority or arbitral tribunal.

     

    "Adjustment
Amount" has the meaning given to it in Section
2.2.4(a) of this
Agreement.

     

    "Adjustment
Statement" has the meaning given to it in Section
2.2.4(a) of this
Agreement.

     

    "Affiliate" of any
Person means any other Person directly or indirectly Controlling, directly or
indirectly Controlled by or under direct or indirect common Control with such
Person.

     

    "Agreement" has the
meaning given to it in the Preamble of this Agreement.

     

    "Amended and Restated 2003
Settlement Agreement" means the amendment and restatement of the 2003
Settlement Agreement, entered into among Purchaser, Purchaser's Chuck Lenzie
Generating Station, SCE, GenWest, LLC, Las Vegas Cogeneration II, Mirant Las
Vegas, LLC, REWG and Southern Nevada Water Authority, which is attached to the
2005 Settlement Agreement and was filed with FERC on May 23, 2005.

     

    "Amended Transmission
Services Agreement” has the meaning given to it in Section
5.1(k).

     

    "Amended TSA
FERC Order" has the meaning given to it in Section
5.1(k) of this
Agreement.

     

    "Assigned Facility
Agreements" means the Contracts which are listed on Schedule 1.1(a) of
this Agreement.

     

    "Assignment
Agreements" has the meaning given to it in Section
2.5.1(b)(viii) of this Agreement.

     

    "Assumed
Liabilities" has the meaning given to it in Section
2.1.4(b) of this
Agreement.

     

    "Bighorn Generating
Facility" has the meaning given to it in the Recitals.

     

    "Bill of Sale
and Assignment" has the meaning given to it in Section
2.5.1(b)(i) of
this Agreement.

     

    "Books and Records"
means books, records, files, documents, instruments, papers, correspondence that
can be reasonably and practically provided, journals, deeds, licenses, supplier,
contractor and subcontractor lists, supplier design interface information,
computer files and programs (other than Sellers' enterprise-wide computer
programs), retrieval programs, environmental studies prepared by third parties,
environmental reports prepared by third parties, construction reports, annual
operating plans, monthly operating reports, operating logs, operations and
maintenance records, purchase orders, safety and maintenance manuals, incident
reports, injury reports, engineering design plans, blue prints and as-built
plans, records drawings, drawings, specifications, test reports, quality
documentation and reports, hazardous waste disposal records, personnel records,
training records, procedures and similar items, in each case, in all formats in
which they are reasonably and practically available, including electronic, where
applicable; in each case, in the possession of Sellers or their Affiliates and
to the extent relating to the Project; provided, however, that any
such data currently contained in computer systems shall be provided in
electronic format as either fixed form or character delimited data and shall
include record descriptions, to the extent the computer systems of Purchaser and
the Sellers are compatible in allowing such data provision; in each case
excluding (a) documents subject to attorney-client privilege or information from
third parties subject to confidentiality restrictions binding on Sellers or
their Affiliates; provided that Sellers have used commercially reasonable
efforts to procure waivers of such confidentiality provisions, (b) documents
relating to the sale process of the Project, and (c) price curves, power curves
or other proprietary information of Sellers or their Affiliates.

     

    "Business Day" means
any day except Saturday, Sunday or a weekday that banks in Las Vegas,
Nevada or New York, New York are closed.

     

    "Claim
Threshold" has the meaning given to it in Section
8.4.1 of this Agreement.

     

    "Closing" has the
meaning given to it in Section
2.4 of this Agreement.

     

    "Closing
Date" has the meaning given to it in Section
2.4 of this
Agreement.

     

    "Code" means the
Internal Revenue Code of 1986, as amended.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Continuing
Support Obligation" has the meaning given to it in Section
5.11(b) of this
Agreement.

     

    "Contract" means any
agreement, lease, license (other than a Permit), note, bond, evidence of
indebtedness, mortgage, indenture, security agreement, instrument or other
contract.

     

    "Control" of any
Person means the possession, directly or indirectly, of the power either to
(a) vote fifty percent (50%) or more of the securities or interests having
ordinary voting power for the election of directors (or other comparable
controlling body) of such Person or (b) direct or cause the direction of
management or policies of such Person, whether through the ownership of voting
securities or interests, by contract or otherwise, excluding in each case, any
secured lender of such Person.

     

    "Default
Rate" has the meaning given to it in Section
2.2.4(c) of this
Agreement.

     

    "Easements" means
those easements, licenses, rights-of-way and other real property rights set
forth on Schedule
1.1(d).

     

    "Easement and
Lease Assignment and Assumption Agreement" has the meaning given to it in
Section
2.5.1(b)(ii) of this Agreement.

     

    "Effective Date" has
the meaning given to it in the Preamble of this Agreement.

     

    "Environmental
Condition" means the presence or Release to the environment of Hazardous
Materials, including any migration of Hazardous Materials through air, soil or
water.

     

    "Environmental Law"
means any applicable statute, law, rule, regulation, ordinance, order or other
legally enforceable directive of any Governmental Authority having lawful
jurisdiction over the assets in question, that is in effect as of the Closing
Date and relates to pollution, safety or protection of human health (to the
extent relating to exposure to Hazardous Materials) or the environment,
including (a) the Comprehensive Environmental Response, Compensation and
Liability Act, 42 U.S.C. § 9601 et seq. ("CERCLA"), (b) the Resource
Conservation and Recovery Act, 42 U.S.C. § 6901 et seq., (c) the Federal Water
Pollution Control Act, 33 U.S.C. § 1251 et seq., (d) the Clean Air Act, 42
U.S.C. § 7401 et seq., (e) the Hazardous Materials Transportation Authorization
Act of 1994, 49 U.S.C. § 5101 et seq., (f) the Occupational Safety and Health
Act, 29 U.S.C. § 651 et seq., (g) the Toxic Substances Control Act, 15 U.S.C. §§
2601 through 2629, (h) the Oil Pollution Act, 33 U.S.C. § 2701 et seq., (i) the
Emergency Planning and Community Right-to-Know Act, 42 U.S.C. § 11001 et seq.,
and (j) the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j, each as
amended and in effect on the Closing Date.

     

    "Environmental
Permits" means any Permits required by Environmental Law.

     

    "ERISA" means the
Employee Retirement Income Security Act of 1974, as amended.

     

    "ERISA Affiliate"
means any entity that, together with any Seller, would be deemed a single
employer within the meaning of Code Section 414 or ERISA
Section 4001(b).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Estimated
Closing Statement" has the meaning given to it in Section
2.2.3 of this
Agreement.

     

    "Estimated
Purchase Price" has the meaning given to it in Section
2.2.2 of this
Agreement.

     

    "Estimated
Stores and Inventory Amount" has the meaning given to it in Section
2.2.3 of this
Agreement.

     

    "Excluded
Assets" has the meaning given to it in Section
2.1.3 of this
Agreement.

     

    "Excluded
Liabilities" has the meaning given to it in Section
2.1.4(a) of this
Agreement.

     

    "Facility"
means the Bighorn Generating Facility consisting of an operating natural
gas-fired, combined-cycle, electric generation plant and the pipeline
interconnections, electrical interconnections and all other related equipment
and other associated property located within the Site as described in Schedule
1.1(b), Part
A.

     

    "Facility
Permits" has the meaning given to it in Section
3.14(a) of this
Agreement.

     

    "Federal Power Act"
means the Federal Power Act of 1935, as amended.

     

    "FERC" means the
Federal Energy Regulatory Commission.

     

    "FERC Approval" means
the final approval to be issued by FERC under Section 203 of the Federal Power
Act with respect to the transactions contemplated hereby.

     

    "Financing Liens"
means (a) that certain Deed of Trust, recorded April 2, 2003 as Instrument No.
02400 in Book 20030402 of the Official Records of Clark County, Nevada, as
assigned by that certain Assignment, recorded July 8, 2003 as Instrument No.
00629 in Book 20030708 of said Official Records, as modified by agreements
recorded July 8, 2003 as Instrument No. 00630 in Book 20030708 of said Official
Records, December 22, 2004 as Instrument No. 0003580 in Book 20041222 of said
Official Records, November 2, 2005 as Instrument No. 0002253 in Book 20051102,
and December 7, 2006 as Instrument No. 0005432 in Book 20061207 and (b) that
certain Assignment recorded April 2, 2003 as Instrument No. 02401 in Book
20030402 of said Official Records, as assigned by that certain Assignment,
recorded July 8, 2003 as Instrument No. 00629 in Book 20030708 of said Official
Records, as modified by agreement recorded July 8, 2003 as Instrument No. 00631
in Book 20030708 of said Official Records.

     

    "GAAP" means generally
accepted accounting principles in the United States of America applied on a
consistent basis.

     

    "Good Operating
Practices" means, with respect to the Facility, the practices, methods
and acts generally engaged in or approved by a significant portion of the
independent electric power industry in the United States for similarly situated
facilities in the United States during a particular period, or any of such
practices, methods and acts, which, in the exercise of reasonable judgment in
light of the facts known at the time a decision is made, would be expected to
accomplish the desired result in a manner consistent with applicable Law, safety
and economy, and taking into consideration the requirements of this Agreement,
the Assigned Facility Agreements and the other Contracts affecting the operation
of the Facility.  "Good Operating Practices" are not intended to be
limited to the optimum practices, methods or acts, to the exclusion of all
others, but rather to include a spectrum of possible practices, methods or acts
generally acceptable in the region during the relevant period in light of the
circumstances.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Governmental
Authority" means any federal, state or local governmental entity,
authority or agency, court, tribunal, regulatory commission or other body,
whether legislative, judicial or executive (or a combination or permutation
thereof).

     

    "Hazardous Materials"
means (a) any substance, emission or material defined as or listed in any
Environmental Law as a "regulated substance," "hazardous substance," "toxic
substance," "pesticide," "hazardous waste," "hazardous material," "waste,"
"pollutant," "contaminant" or words of similar import in any Environmental Law;
or (b) any products or substances containing petroleum, friable asbestos,
polychlorinated biphenyls or radioactive materials.

     

    "HSR Act" means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     

    "Improvements" has the
meaning given to it in Section 1.1 of the Lease.

     

    "Indemnified
Party" has the meaning given to it in Section
8.3.1 of this
Agreement.

     

    "Indemnifying
Party" has the meaning given to it in Section
8.3.1 of this
Agreement.

     

    "Independent
Accounting Firm" means such nationally recognized, independent accounting
firm as is mutually appointed by Purchaser and Sellers for purposes of this
Agreement.

     

    "Intellectual
Property" means (a) patents and industrial designs (including any
continuations, divisionals, continuations-in-part, renewals, reissues and
applications for any of the foregoing), (b) copyrights (including any
registrations and applications for any of the foregoing), (c) trademarks,
service marks, trade names, logos, slogans, trade dress and applications for
registration of the foregoing, and (d) trade secrets and confidential
information, including confidential know-how, processes, formulae, algorithms,
models or methodologies.

     

    "Interconnection
Contracts" means (a) that certain Interconnection and Operation Agreement
between Nevada Power Company and Reliant Energy Wholesale Generation, LLC, as
successor in interest to Reliant Energy Bighorn, LLC, dated March 6, 2002 as
amended by the First Revised Service Agreement No. 109, which is attached to the
compliance filing with FERC by Nevada Power Company on June 26, 2002, accepted
by FERC for filing effective as of March 6, 2002, (b) WSCC Reliability
Management System Agreement dated March 6, 2002 between Purchaser and REWG (as
successor-in-interest to Reliant Energy Bighorn, LLC), (c) the 2002 Settlement
Agreement, the 2003 Settlement Agreement, the Amended and Restated 2003
Settlement Agreement, the 2005 Settlement Agreement and the Western Settlement
Agreement, (d) Revised MOU I and MOU II, and (e) the SCE Tax
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Law" means any
statute, law, treaty, rule, code, common law, ordinance, regulation, certificate
or order of any Governmental Authority, or any judgment, decision, decree,
injunction, writ, order or like action of any court, arbitrator or other
Governmental Authority, including each Environmental Law.

     

    "Lease" means that
certain Lease Agreement dated August 31, 2001, between Primm120 Limited
Partnership, a Nevada limited partnership, as lessor, and Reliant Energy
Bighorn, LLC, a Delaware limited liability company, predecessor-in-interest to
REWG, as lessee, pursuant to which REWG leases certain real property located in
Clark County, Nevada, as more particularly described in the Lease Agreement, as
amended by First Amendment to Lease dated November 28, 2007, which, among other
things, amended the description of the real property covered by the Lease
Agreement.  The Lease is evidenced by that certain Memorandum of Lease
recorded September 12, 2001, as Instrument No. 00229, Book 20010912, of the
Official Records of Clark County, Nevada, as amended by Amendment of Memorandum
of Lease recorded November 29, 2007, as Instrument No. 0001706, Book 20071129,
of the Official Records of Clark County, Nevada.

     

    "Liability" means any
indebtedness and other obligations of a Person (whether absolute, accrued,
contingent, fixed or otherwise, or whether due or to become due).

     

    "Lien" shall mean any
mortgage, pledge, deed of trust, hypothecation, assignment, deposit arrangement,
charge, security interest, encumbrance, lien (statutory or other) or preference,
priority or other security agreement of any kind or nature whatsoever, including
without limitation any conditional sale or other title retention agreement, any
financing lease having substantially the same effect as any of the foregoing or
the filing of any financing statement or similar instrument under the Uniform
Commercial Code as in effect in any relevant jurisdiction or comparable Law of
any jurisdiction, domestic or foreign.

     

    "Loss" means any
damage, fine, penalty, deficiency, Liability, loss or expense (including
interest, court costs, reasonable fees of attorneys, accountants and other
experts or other reasonable expenses of litigation or other proceedings or of
any claim, default or assessment).

     

    “Master Equipment
Lease” means the Master Equipment Lease (including any amendments
thereto) dated as of March 1, 2004 by and between REAM (as successor-in-interest
to Reliant Energy Equipment Company, LLC) and REWG (as successor-in-interest to
Reliant Energy Bighorn, LLC), relating to the lease of the Equipment (as defined
therein).

     

    "Material Adverse
Effect" means a material adverse effect on (a) the Facility or the
Purchased Assets, taken as a whole, or the operation or condition thereof or
(b) the ability of Sellers to perform their obligations under this
Agreement or any of the other Transaction Agreements to which any Seller is a
party, provided, however, that the
term Material Adverse Effect shall not include (i) any change resulting from
changes in general international, national, regional or local economic,
financial or market conditions, (ii) changes in general regulatory or political
conditions, including any acts of war or terrorist activities not directed at
the Project, (iii) strikes, work stoppages or other labor disturbances other
than those involving only the Project workforce, (iv) increases in costs of
commodities or supplies, including fuel, (v) weather or meteorological events
(other than short-term events such as tornados and storms), (vi) any change of
Laws that does not disproportionately affect the Project relative to
similarly-situated projects, or (vii) any effect having a disproportionate
impact on the Facility compared to other generating facilities in Purchaser's
control area, to the extent resulting from the voluntary action of Purchaser
relating to the transmission of power from the Facility.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Materials and
Equipment" means the equipment, machinery, apparatus, furniture, computer
hardware, vehicles, Stores and Inventory, tools (including special tools), dies,
construction in progress and other tangible personal property used, or to be
used, by Sellers for or in the operation or maintenance of the Facility, including the Materials
and Equipment listed in Schedule 1.1(b),
Part A, which
schedule does not include Stores and Inventory.

     

    "MOU II" means the
RRSU Western Memorandum of Understanding, dated March 24, 2005, between
Purchaser and REWG, attached to the Western Settlement Agreement and approved by
FERC on June 1, 2005.

     

    "Objectionable Title and
Survey Matters" has the meaning given to it in Section 5.1(f) of
this Agreement.

     

    "Overlap Period" means
any taxable period beginning on or before and ending after the Closing
Date.

     

    "Overlap Period Taxes"
means any Taxes (other than Seller Income Taxes) imposed on or with respect to
the Purchased Assets or any of the Sellers for an Overlap Period.

     

    "Party" or "Parties" has the
meaning given to it in the Preamble of this Agreement.

     

    "Permits" means
permits, licenses, approvals, certificates, letter rulings, orders, decrees,
judgments, writs, injunctions or similar actions of any Governmental
Authority.

     

    "Permitted
Encumbrances" has the meaning given to it in Section 5.1(f) of
this Agreement.

     

    "Permitted Liens"
means (a) those Liens set forth on Schedule 1.1(e),
(b) zoning, entitlement, conservation restriction and other land use and
environmental regulations by any Governmental Authority, (c) Liens for
Taxes not yet delinquent, (d) mechanics', carriers', workers', repairers' and
other similar Liens arising or incurred under Assigned Facility Agreements in
the ordinary course of business which are not yet due and payable or which do
not exceed $500,000
in the aggregate and the validity of which is being contested in good faith by
appropriate proceedings, (e) Liens expressly granted under the Assigned Facility
Agreements, (f) prior to Closing, the Financing Liens, and (g) such other
charges, easements, restrictions and encumbrances which do not materially
detract from the value of, or materially interfere with the present use of, the
Purchased Assets in the aggregate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Person" means any
individual, corporation, partnership, joint venture, association, joint stock
company, trust, limited liability company, unincorporated organization,
Governmental Authority or any other form of entity.

     

    "Pre-Closing
Books and Records" has the meaning given to it in Section
2.6.2(a) of this
Agreement.

     

    "Pre-Closing
Taxes" has the meaning given to it in Section
9.4 of this
Agreement.

     

    "Pre-Closing
Tax Period" shall mean any taxable period ending on or before the Closing
Date, or with respect to any taxable period that begins on or before the Closing
Date and ends after the Closing Date, the portion of such taxable period ending
on the Closing Date.

     

    “Primm
Easements” has the meaning given to it in Section
5.1(f) of this Agreement.

     

    "Project"
means the Facility and all Real Property Interests, Materials and Equipment,
Books and Records, Assigned Facility Agreements, Transferred Permits,
Transferred Intellectual Property and, to the extent transferable without
consent or requisite consent has been obtained, all third-party warranties and
related assignments and, to the extent owned by REWG or its Affiliates, other
assets currently used for the Facility.

     

    "Project
Employees" means those individuals listed on Schedule
1.1(g) of this Agreement.

     

    "Property
Taxes" has the meaning given to it in Section
9.3 of this
Agreement.

     

    "PUCN" means the
Public Utilities Commission of Nevada.

     

    "PUCN Approval" means
a final order issued by the PUCN pursuant to NAC 704.9518 approving an amendment
to Purchaser's 3-year action plan, which order (a) approves Purchaser's
acquisition of the Purchased Assets, (b) does not contain conditions or terms
that adversely and materially affect Purchaser's preferred supply side plan, and
(c) is not the subject of (i) a petition for reconsideration or rehearing filed
pursuant to NAC 703.801 or (ii) motion for a preliminary injunction filed
pursuant to NRS 703.374.

     

    "Purchase
Price" has the meaning given to it in Section
2.2.1 of this
Agreement.

     

    "Purchase Price
Allocation" has the meaning given to it in Section
2.3 of this
Agreement.

     

    "Purchased
Assets" has the meaning given to it in Section
2.1.1 of this
Agreement.

     

    "Purchaser"
has the meaning given to it in the Preamble of this Agreement.

     

    "Purchaser
Consent Representative" means the person appointed by Purchaser and
notified to Sellers with appropriate contact information for the purpose of
giving consents and receiving notices required pursuant to Section
5.2(c) of this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Purchaser
Indemnified Party" has the meaning given to it in Section
8.1 of this
Agreement.

     

    “Purchaser Process
Agent” has the meaning given to it in Section 11.4(b) of
this Agreement.

     

    "Purchaser Savings
Plan" has the meaning given to it in Section 5.5(e) of
this Agreement.

     

    "Purchaser's Disclosure
Schedule" means the schedule delivered to Sellers by Purchaser herewith
and dated as of the Effective Date, containing all lists, descriptions,
exceptions and other information and materials as are required to be included
therein by Purchaser pursuant to this Agreement.

     

    "Purchaser's
Knowledge" means the actual knowledge of the Persons listed on Section 1.1(a)
of the Purchaser's Disclosure Schedule; provided, however, that each
such Person shall be deemed to have knowledge of a matter of which such Person
has received written notice.

     

    "Real Property" means
the Site, the Improvements, and the Easements.

     

    "Real Property
Documents" is defined in Section 3.10(d) of
this Agreement.

     

    "Real Property
Interests" means the leasehold interest in the Site, the interest in the
Improvements created by Section 3.8 of the Lease, and the easement interest in
the Easements.

     

    "Real Property
Transfer Taxes" has the meaning given to it in Section
9.2 of this
Agreement.

     

    "REAM"
has the meaning given to it in the Preamble.

     

    "RECS" means Reliant
Energy Corporate Services, LLC.

     

    "REI" has the meaning
given to it in the Recitals.

     

    "Related Person" means
with respect to Sellers and Purchaser, their respective Affiliates, and the
employees, officers and directors of Sellers, Purchaser and their respective
Affiliates.

     

    "Release" shall have
the same meaning as the word "Release" as defined under Section 101(22) of
CERCLA, 42 U.S.C. § 9601(22); provided, that the
exclusions from such statutory definition of "Release" set forth in CERCLA §
101(22)(A)-(D) inclusive shall not apply to the definition of "Release" in this
Agreement.

     

    "Remediation" means
actions required under Environmental Laws or by a Governmental Authority, or a
claim by a third party against a Purchaser Indemnified Party where remediation
in connection with such claim would be in accordance with Good Operating
Practices, in each case to address a Release of Hazardous Materials, including
any monitoring, investigation, assessment, treatment, cleanup, containment,
removal, mitigation, response or restoration work.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Requested Consents"
means the consents set forth on Schedule 1.1(c) of
this Agreement.

     

    "Retained
Information" has the meaning given to it in Section
2.6.2(b) of this
Agreement.

     

    "Revised MOU
I" means the Revised RRSU Memorandum of Understanding between Purchaser
and REWG (as successor-in-interest to Reliant Energy Bighorn, LLC) filed as
Attachment E to the 2003 Settlement Agreement ("MOU
I"), as amended by the revised memorandum of understanding between
Purchaser and REWG entered into pursuant to the 2005 Settlement Agreement and
the Amended and Restated 2003 Settlement Agreement, conforming MOU I with the
revisions agreed to in the 2005 Settlement Agreement and the Amended and
Restated 2003 Settlement Agreement.

     

    "REWG"
has the meaning given to it in the Preamble.

     

    "RRSU"
means Regional Required System Upgrades.

     

    "Sales
Taxes" has the meaning given to it in Section
9.2 of this
Agreement.

     

    "SCE"
means Southern California Edison Company.

     

    "SCE RRSU
Refund" means any service credits and cash refunds provided by SCE with
respect to the payments made under the Revised MOU I and SCE Tax Agreement
relating to the Bighorn Generating Facility, pursuant to paragraphs 26 through
33 of the 2003 Settlement Agreement and the Amended and Restated 2003 Settlement
Agreement.

     

    "SCE Tax
Agreement" means the Tax Agreement, dated effective January 31, 2003,
among REWG (as successor-in-interest to Reliant Energy Bighorn, LLC), SCE and
Purchaser, as such is modified by the revised SCE Tax Agreement included as
Attachment C to the Amended and Restated 2003 Settlement Agreement.

     

    "Seller"
and "Sellers"
each has the meaning given to it in the Preamble to this Agreement.

     

    "Seller Income
Taxes" means any franchise or similar Taxes imposed on, or Taxes imposed
on, or measured by reference to, the net income or net worth of, Sellers or
Affiliates of Sellers.

     

    "Seller
Marks" has the meaning given to it in Section
5.10 of this
Agreement.

     

    "Seller
Plans" has the meaning given to it in Section
3.18(b) of this
Agreement.

     

    “Seller Process
Agent” has the meaning given to it in Section
11.4(c) of this Agreement.

     

    "Seller Savings
Plan" means Reliant Energy, Inc. Savings Plan.

     

    "Seller's
Title/Survey Objection Response" has the meaning given to it in Section
5.1(f) of this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Sellers'
Disclosure Schedule" means the schedule delivered to Purchaser by Sellers
herewith and dated as of the Effective Date, containing all lists, descriptions,
exceptions and other information and materials as are required to be included
therein by Sellers pursuant to this Agreement.

     

    "Sellers'
Indemnified Party" has the meaning given to it in Section
8.2 of this
Agreement.

     

    "Sellers'
Knowledge" means the actual knowledge of the Persons listed on Section
1.1(a) of the Sellers' Disclosure Schedule; provided,
however,
each such Person shall be deemed to have knowledge of a matter of which such
Person received written notice.

     

    "Severance
Plan" means the Reliant Energy, Inc. 2003 Involuntary Severance Benefits
Plan for Employees With Annual Base Pay Less Than $150,000 or, as applicable,
the Reliant Energy, Inc. 2003 Involuntary Severance Benefits Plan for Employees
with Annual Base Pay At Least $150,000 But Less Than $200,000, both As Amended
and Restated Effective June 1, 2004.

     

    "Site"
means the real property located in Clark County, Nevada, covered by and
described in the Lease.

     

    "Stores and
Inventory" means supplies, inventories, materials, lubricants, chemicals,
filters, fittings, connectors, seals, gaskets, repair and replacement parts,
which are located at the Site or in transit to the Site or deliverable to
Sellers at the Facility pursuant to the Assigned Facility Agreements, as of the
Closing Date, and used, or to be used, in connection with the operation and
maintenance of the Facility.  Certain items of Stores and Inventory as
of the Effective Date are listed on Schedule 1.1(b),
Part
B.

     

    "Stores and
Inventory Amount" means an amount equal to the value of Stores and
Inventory, which amount shall not exceed the Stores and Inventory Cap
Amount.  For purposes of determining value, new Stores and Inventory
shall be valued at the original delivered cost, while used Stores and Inventory
shall be valued by the Stores and Inventory Methodology at a portion of the
original delivered costs based on the remaining useable life of such Stores and
Inventory.

     

    "Stores and
Inventory Cap Amount" means an amount equal to $8,000,000.

     

    "Stores and
Inventory Methodology" means the methodology described on Schedule
1.1(h) for inventorying and valuing the Stores and
Inventory.

     

    "Support
Obligations" has the meaning given to it in Section
5.11(a) of this
Agreement.

     

    "Survey"
has the meaning given to it in Section
5.1(f) of this Agreement.

     

    "Surveyor"
means Finley Engineering Company, Inc., with an address of Twin Oaks, Suite
B-250, 1800 NW 169th
Place, Beaverton, Oregon 97006.

     

    "Tax" or
"Taxes"
means any and all taxes, including any interest, penalties or other additions to
tax that may become payable in respect thereof, imposed by any foreign, federal,
state or local government or any agency or political subdivision of any such
government, which taxes shall include all income taxes, profits taxes, taxes on
gains, alternative minimum taxes, estimated taxes, payroll and employee
withholding taxes, unemployment insurance taxes, social security taxes, welfare
taxes, disability taxes, severance taxes, license charges, taxes on stock, sales
and use taxes, ad valorem taxes, value added taxes, excise taxes, franchise
taxes, gross receipts taxes, business license taxes, occupation taxes, real or
personal property taxes, stamp taxes, environmental taxes, transfer taxes,
workers' compensation taxes and other taxes, fees, duties, levies, customs,
tariffs, imposts, assessments, obligations and charges of the same or of a
similar nature to any of the foregoing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Tax
Claim" has the meaning given to it in Section
9.7 of this
Agreement.

     

    "Tax
Returns" means any return, report, rendition, information return, claim
for refund or other document (including any related or supporting information)
supplied to or required to be supplied to any Taxing Authority with respect to
Taxes, including any attachments, amendments and supplements
thereto.

     

    "Taxing
Authority" means, with respect to any Tax, the governmental entity or
political subdivision thereof that imposes such Tax and the agency (if any)
charged with the collection of such Tax for such entity or
subdivision.

     

    "Title and
Survey Objection Notice" has the meaning given to it in Section
5.1(f) of this Agreement.

     

    "Title
Company" means Fidelity National Title Agency of Nevada, Inc., with an
address of 500 N. Rainbow, Suite 100, Las Vegas, Nevada 89107, Attention: Mark
Harper.

     

    "Title
Insurance Commitment" has the meaning given to it in Section
5.1(f) of this Agreement.

     

    "Title
Insurance Policy" has the meaning given to it in Section
5.1(f) of this Agreement.

     

    "Transaction
Agreements" has the meaning given to it in Section
3.2 of this
Agreement.

     

    "Transaction
Documents" has the meaning given to it in Section
3.2 of this
Agreement.

     

    "Transfer
Taxes" has the meaning given to it in Section
9.2 of this
Agreement.

     

    "Transferred
Employees" means Project Employees to whom Purchaser offers employment
and who accept such employment effective on the Closing in accordance with
Section
5.5 of this
Agreement.

     

    "Transferred
Intellectual Property" means the Intellectual Property and licenses to
use such owned by the Sellers and used exclusively in the Project to the extent
identified on Schedule
1.1(f).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Transferred
Permits" means those Permits set forth on Schedule
1.1(i), and any Permits obtained by Sellers after the Effective Date that
are transferable to Purchaser and designated as Transferred Permits by
Purchaser, interests in which are to be conveyed by the Sellers to Purchaser as
part of the Purchased Assets.

     

    "Transmission
Services Agreement" means that certain Service Agreement for Long-Term
Firm Point-to-Point Transmission Service, designated as Service Agreement No.
90, dated July 5, 2001, between Purchaser and Reliant Energy Services,
Inc.

     

    "Welfare
Benefits" has the meaning given to it in Section
5.5(c) of this
Agreement.

     

    "Western Settlement
Agreement" means the Settlement Agreement, dated as of March 21, 2005,
entered into among Purchaser, Valley Electric Association, Inc., Purchaser's
Chuck Lenzie Generating Station, GenWest, LLC, Las Vegas Cogeneration II, LLC,
Mirant Las Vegas, LLC, REWG, and Southern Nevada Water Authority, which resolves
issues in FERC Docket No. ER04-152-000.

     

    

    Section
1.2 Rules as to
Usage

     

    Except as
otherwise expressly provided herein, the following rules shall apply to the
usage of terms in this Agreement:

     

                (a) The terms
defined above have the meanings set forth above for all purposes, and such
meanings are equally applicable to both the singular and plural forms of the
terms defined.  If a term is defined as one part of speech (such as a
noun), it shall have a corresponding meaning when used as another part of speech
(such as a verb).

                

                (b) "Include,"
"includes" and "including" shall be deemed to be followed by "without
limitation" whether or not they are in fact followed by such words or words of
like import.

     

                (c) "Writing,"
"written" and comparable terms refer to printing, typing, and other means of
reproducing in a visible form.

     

                (d) Any Law
defined or referred to herein means such Law as from time to time amended,
modified or supplemented, including by succession of comparable successor Law
and any rules and regulations promulgated thereunder.

     

                (e) References
to a Person are also to its permitted successors and
assigns.

     

                (f) "Hereof,"
"herein," "hereunder" and comparable terms refer, unless otherwise expressly
indicated, to the entire agreement or instrument in which such terms are used
and not to any particular article, section or other subdivision thereof or
exhibit or schedule or other attachment thereto.  References in an
instrument to "Article," "Section" or another subdivision or to an exhibit,
schedule or other attachment are, unless the context otherwise requires, to an
article, section, subsection or subdivision of or an exhibit or schedule or
other attachment to such agreement or instrument.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                (g) Pronouns,
whenever used in any agreement or instrument that is governed by this Agreement
and of whatever gender, shall include all Persons.  References to any
gender include, unless the context otherwise requires, references to all
genders.

     

                (h) The word
"or" will have the inclusive meaning represented by the phrase
"and/or."  "Shall" and "will" have equal force and
effect.

     

                (i) Whenever
the consent or approval of any Party is required pursuant to this Agreement,
unless expressly stated that such consent or approval is to be given in the sole
discretion of such Party, such consent or approval shall not be unreasonably
withheld or delayed.

     

                (j) Whenever
this Agreement refers to a number of days, such number shall refer to calendar
days unless Business Days are specified. Whenever any action must be taken
hereunder on or by a day that is not a Business Day, then such action may be
validly taken on or by the next day that is a Business Day.

     

                (k) All
accounting terms used herein and not expressly defined herein shall have the
meanings given to them under GAAP.

     

    Section
1.3 Schedules and
Exhibits

     

    This
Agreement consists of the Articles contained herein and the Schedules and
Exhibits attached hereto, all of which comprise part of one and the same
agreement with equal force and effect.

     

    ARTICLE
II                                

    
SALE AND
PURCHASE; PRICE; CLOSING

     

        Section
2.1 Sale and Purchase;
Definition of Purchased Assets; Excluded Liability

     

        Section
2.1.1 Purchased
Property.  On the terms and subject to the conditions set forth
in this Agreement, at the Closing, the Sellers shall, or shall cause Reliant
Energy Services, Inc. (with respect to the Transmission Services Agreement) to,
sell, transfer, convey, assign and deliver to Purchaser, free and clear of all
Liens (other than Permitted Liens and Permitted Encumbrances), and Purchaser
will purchase and pay for, all of Seller’s right, title and interest in and to
the Project, excluding the Excluded Assets (the "Purchased
Assets").

     

               Section
2.1.2 Assignment and Assumption of
Assigned Facility Agreements.  On the terms and subject to the
conditions set forth in this Agreement, effective as of the Closing, Sellers
shall assign to Purchaser and Purchaser shall assume all of Sellers' rights
under the Assigned Facility Agreements and (a) in the case of Assigned Facility
Agreements other than the Interconnection Contracts and the Transmission
Services Agreement, all of Sellers' obligations arising after the Closing under
such Assigned Facility Agreements, and (b) in the case of Interconnection
Contracts and the Transmission Services Agreement, all of Sellers' obligations
under the Interconnection Contracts and all of the obligations of Reliant Energy
Services, Inc. under the Transmission Services Agreement, other than any refund
liability of REWG to SCE pursuant to paragraph 31 of the 2003 Settlement
Agreement and the Amended and Restated 2003 Settlement Agreement, with respect
to refunds received by REWG.  As of Closing, Purchaser hereby
releases, and agrees to cause its Affiliates to release Sellers and their
Affiliates, unconditionally and irrevocably, from any and all claims, demands,
causes of action, suits, damages, attorneys’ fees, and costs or expenses of any
type, whether known or unknown, fixed or contingent, liquidated or unliquidated
of any kind or character arising from or relating in any way to the
Interconnection Contracts and the Transmission Services Agreement, other than
any refund liability of REWG to SCE pursuant to paragraph 31 of the 2003
Settlement Agreement and the Amended and Restated 2003 Settlement Agreement,
with respect to refunds received by REWG.  For the avoidance of doubt,
with respect to indemnity obligations under the Assigned Facility Agreements
(other than the Interconnection Contracts and the Transmission Services
Agreement), Purchaser shall assume liability only for events that occur after
the Closing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
2.1.3 Retention of Certain
Assets.  Sellers shall have no obligation to transfer any
interest or rights in those agreements, assets and properties described in Schedule 2.1.3 attached hereto
(the "Excluded
Assets"), and Purchaser shall have no Liability with respect
thereto.  The Parties acknowledge and agree that Sellers shall have
the right on or prior to the Closing Date to retain or to transfer and assign to
one or more of Sellers' Affiliates their interests in the Excluded
Assets.

     

    Section
2.1.4 Excluded Liabilities;
Assumed Liabilities.  

     

                (a) Excluded
Liabilities.  On and after the Closing, and without further
Liability of Purchaser, Sellers or their Affiliates, as the case may be, shall
retain the following duties and Liabilities, direct or indirect, known or
unknown, absolute or contingent (the "Excluded
Liabilities"):

     

    (i) all
Liabilities arising from any violation of applicable Environmental Law (A) by
Sellers or their Affiliates or (B) to the extent of Sellers’ Knowledge, any
other Person acting on behalf of the Sellers or their Affiliates, in each case
in connection with the construction, operation or maintenance of the Facility or
the Real Property prior to the Closing;

     

    (ii) all
Liabilities arising from any Environmental Condition on the Real Property to the
extent existing prior to the Closing, including Liabilities related to
Remediation, natural resource damages, bodily injury or property damage, but
only to the extent caused by (A) Sellers or their Affiliates or (B) to the
extent of Sellers’ Knowledge, caused by any other Person;

     

    (iii) all
Liabilities arising from the off-site transportation, disposal, recycling or
storage, or arrangement for same, of Hazardous Materials, from the Site prior to
the Closing, including Liabilities related to Remediation, natural resource
damages, bodily injury or property damage, to the extent resulting from the
actions of (a) Sellers or their Affiliates or (b) to the extent of Sellers’
Knowledge, any other Person acting on behalf of the Sellers or their
Affiliates;

     

    (iv) all
Liabilities that have arisen or may arise with respect to (A) any Seller Plan
including, but not limited to, the Severance Plans, (B) any Project Employee,
employee of RECS, REWG or REAM or former employee of any of the foregoing, who
is not a Transferred Employee, and (C) any Transferred Employee to the extent
attributable to events or circumstances occurring or existing on or prior to the
Closing Date, except as provided in Section 5.5(f);
and

     

    (v) all
Liabilities of Sellers and their Affiliates under the Assigned Facility
Agreements not expressly assumed by Purchaser pursuant to Section 2.1.2 and all
Liabilities under Contracts relating to the Project which are not Assigned
Facility Agreements.

     

                (b) Assumed
Liabilities.  On and after the Closing and without further
Liability of Sellers or their Affiliates, Purchaser shall assume, and Purchaser
hereby agrees to pay, satisfy and discharge when due, the following duties and
liabilities of Sellers and their Affiliates (the "Assumed
Liabilities"):

     

    (i) all
Liabilities of Sellers and their Affiliates under the Assigned Facility
Agreements expressly assumed by Purchaser pursuant to Section
2.1.2;

     

    (ii) all
liabilities and obligations of Sellers and their Affiliates under the Permits
arising after the Closing, except to the extent Sellers have an indemnification
obligation to Purchaser attributable to Section
3.14;

     

    (iii) all liabilities and obligations of Sellers and their Affiliates to be
assumed by Purchaser pursuant to Section
5.5; and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) all
liabilities and obligations relating to or arising from the ownership or
operation of the Purchased Assets and the Facility after the Closing, except to
the extent Sellers have an indemnification obligation to Purchaser
hereunder.

        

        Section
2.2 Purchase
Price

     

        Section
2.2.1 Amount.  In
consideration of the sale, assignment, conveyance, transfer and delivery to
Purchaser as of the Closing of the Purchased Assets, Purchaser shall pay to REWG
for the benefit of the Sellers an amount equal to the sum of (a) $500,000,000,
which amount shall be allocated $343,762,500 to the Purchased Assets held by
REWG, and $156,237,500 to the Purchased Assets held by REAM, with applicable
Nevada sales and use Taxes being included in the amount allocated to the
Purchased Assets held by REAM, and (b) the Stores and Inventory Amount
(collectively, and subject to adjustment in Section 5.6, the
"Purchase
Price").

     

    Section
2.2.2 Payment of Estimated
Purchase Price.  At the Closing, Purchaser shall pay or cause
to be paid to REWG for the benefit of the Sellers an amount which shall be the
sum of the following (the "Estimated Purchase
Price"):  (a) $500,000,000 and (b) the undisputed portions of
the Estimated Stores and Inventory Amount less (c) any downward adjustment to
the Purchase Price pursuant to Section 5.6.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
2.2.3 Estimated
Adjustment.  At least ten (10) Business Days prior to the
Closing Date, Sellers, in consultation with Purchaser, shall conduct an
inventory survey, which (a) will be conducted pursuant to the Stores and
Inventory Methodology and (b) may be observed by Purchaser, and prepare and
deliver to Purchaser an estimated closing statement certified to be a good faith
estimate by a duly authorized officer of REWG (the "Estimated Closing
Statement").  The Estimated Closing Statement shall set forth
in reasonable detail Sellers' best estimate of the Stores and Inventory Amount
(the "Estimated Stores
and Inventory Amount"), which statement shall include a description, part
number, quantity on hand, average unit cost (adjusted for remaining useable
life, if used) and extended value (quantity times average unit cost) with
respect to each class of inventory, including the assumptions and calculations
used by Sellers in such estimate.  Within five (5) Business Days
following the delivery of the Estimated Closing Statement by Sellers to
Purchaser, Purchaser may object in good faith to the Estimated Stores and
Inventory Amount in writing.  If Purchaser objects to the Estimated
Stores and Inventory Amount, the Parties shall attempt to resolve their
differences by negotiation.  If the Parties are unable to do so within
two (2) Business Days prior to the Closing Date (or if Purchaser does not object
to the Estimated Stores and Inventory Amount), the amount of the Estimated
Stores and Inventory Amount not in dispute shall be included in the Estimated
Purchase Price.  The disputed portion shall be paid as a post-Closing
adjustment to the extent required by Section
2.2.4.

     

    Section
2.2.4 Purchase Price
Adjustment.

     

    (a) Within
sixty (60) days after the Closing, Purchaser, in consultation with Sellers,
shall prepare and deliver to the Sellers a statement (the "Adjustment
Statement"), which reflects the difference between (i) the Stores and
Inventory Amount as of the Closing Date, based on an inventory survey conducted
by Purchaser within fifteen (15) days after the Closing Date, which (A) will be
conducted pursuant to the Stores and Inventory Methodology and (B) may be
observed by Sellers, and (ii) the undisputed Estimated Stores and Inventory
Amount (such difference, the "Adjustment
Amount").  The Adjustment Statement shall be prepared using the
Stores and Inventory Methodology and, to the extent such Stores and Inventory
Methodology is incomplete, GAAP, which statement shall include a description,
part number, quantity on hand, average unit cost (adjusted for remaining useable
life, if used) and extended value (quantity times average unit cost) with
respect to each class of inventory, including the assumptions and calculations
used by Purchaser in such statement.  The Parties agree to cooperate
in connection with the preparation of the Adjustment Statement and related
information and shall provide each other with such books, records and
information as may be reasonably requested from time to time in connection
therewith and in connection with Sellers' review thereof.

     

    (b) Sellers
may dispute the Adjustment Amount; provided, however, that Sellers
shall notify Purchaser in writing of the disputed amount, and the basis of such
dispute, within ten (10) Business Days of Sellers' receipt of the Adjustment
Statement.  In the event of a dispute with respect to any part of the
Adjustment Amount, Purchaser and Sellers shall attempt to reconcile their
differences and any resolution by them as to any disputed amounts shall be
final, binding and conclusive on the Parties.  If Purchaser and
Sellers are unable to reach a resolution of such differences within thirty (30)
days of receipt of Sellers' written notice of dispute to Purchaser, Purchaser
and Sellers shall submit the amounts remaining in dispute for determination and
resolution to the Independent Accounting Firm, which shall be instructed to
determine such disputed amounts, based on the Stores and Inventory Methodology
and, to the extent such Stores and Inventory Methodology is incomplete, based on
GAAP, and report to the Parties, within thirty (30) days after such submission,
and such report shall be final, binding and conclusive on the Parties hereto
with respect to the amounts disputed.  The fees and disbursements of
the Independent Accounting Firm shall be shared equally by Purchaser and
Sellers.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Within
ten (10) Business Days after Sellers' receipt of the Adjustment Statement, the
Party owing the Adjustment Amount shall pay all undisputed
amounts.  If there is a dispute with respect to any amount of the
Adjustment Statement, within five (5) Business Days after the final
determination of any amounts on the Adjustment Statement, the Party owing the
Adjustment Amount shall pay to the other Party an amount equal to the disputed
Adjustment Amount as finally determined to be payable with respect to the
Adjustment Statement.  Any amount paid under this Section
2.2.4 shall be paid with
interest for the period from, and including, the Closing Date to, but excluding,
the date of payment, calculated at the lesser of (i) the prime rate under
"Money Rates" as reported in the Wall Street Journal on the first Business Day
of the month during which interest is payable plus two percent (2%) or
(ii) the maximum rate of interest permitted to be charged by applicable Law
(such lesser rate, the "Default
Rate").

     

    Section
2.2.5 Amounts in Respect of
Mechanics' Liens.  Notwithstanding anything in this Section
2.2.5 or Section
2.5 to the contrary, Purchaser may
withhold from the Estimated Purchase Price an amount equal to the value of all
mechanics', carriers', workers', repairers' and other similar Liens in existence
at Closing on the Purchased Assets, other than those arising or incurred under
Assigned Facility Agreements in the ordinary course of business, relating to
obligations which are not yet due and payable.  To the extent such
Liens are not remedied by Sellers within ninety (90) days after Closing or such
earlier date notified at least ten (10) Business Days in advance by Purchaser to
Seller as is reasonably necessary, Purchaser shall be entitled to apply the
portion of the Estimated Purchase Price so withheld to remedy any such Liens, in
satisfaction of payment to Sellers of such portion of the Purchase
Price.  Upon all such Liens having been remedied by Sellers or by
Purchaser pursuant to the preceding sentence, Purchaser shall pay to REWG any
remaining amounts of the Purchase Price retained by Purchaser under this
Section
2.2.5.

     

    Section
2.2.6 Method of Payment of
Purchase Price.  Payment of the Estimated Purchase Price and
the Adjustment Amount shall be made in United States Dollars, by wire transfer
of immediately available federal funds to an account located in the United
States as REWG or, if applicable, Purchaser may specify by
notice.

     

    Section
2.2.7 Proration.

     

    Purchaser
and Sellers agree that the following items relating to the Purchased Assets
shall be prorated without duplication of any such items as of the Closing Date,
with Sellers liable to the extent such items relate to any time period through
the Closing Date, and Purchaser liable to the extent such items relate to
periods commencing after the Closing Date (measured in the same units used to
compute the item in question, otherwise measured by calendar days):

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (i) any real
and personal property ad valorem taxes imposed on tangible or intangible
property with respect to the Purchased Assets as provided in Section
9.3, Section
9.4 and Section
9.5;

     

    (ii) any rent
payments or fees made or paid prior to the Closing in respect of the Real
Property;

     

    (iii) any
charges for water, telephone, electricity and other utilities and any other
payment for goods and services; and

     

    (iv) (A) any
annual Permit, license and registration fees associated with the Purchased
Assets and (B) any prepayments under the Assigned Facility
Agreements.

     

    In connection with the prorations referred to in this Section
2.2.7, in the event that actual figures
are not available at the Closing Date, the proration shall be based upon the
amounts accrued through the Closing Date or paid for the most recent year (or
other appropriate period) for which actual amounts paid are
available.  Such prorated amounts shall be re-prorated and paid to the
appropriate Party within sixty (60) days of the date that the previously
unavailable actual figures become available.  Sellers and Purchaser
agree to furnish each other with such documents and other records as may be
reasonably requested in order to confirm all adjustment and proration
calculations made pursuant to this Section
2.2.7.

     

    Section
2.3 Allocation of Purchase
Price

     

    .  Not later than forty-five (45) days after the Closing,
Purchaser shall provide Sellers with an allocation of the Purchase Price, plus
any liabilities deemed assumed for U.S. federal income Tax purposes, among the
Purchased Assets as of the Closing Date using the allocation method provided by
Section 1060 of the Code and the Treasury regulations thereunder (the "Purchase Price
Allocation").  The Purchase Price Allocation shall be subject
to the consent of Sellers, which shall not be unreasonably withheld, conditioned
or delayed.  The Parties shall cooperate to comply with all
substantive and procedural requirements of Section 1060 of the Code and the
regulations thereunder, and except for any adjustment to the Purchase Price, the
Purchase Price Allocation shall be adjusted only if and to the extent necessary
to comply with such requirements.  Purchaser and Sellers agree that
they will not take nor will they permit any Affiliate to take, for Tax purposes,
any position inconsistent with such Purchase Price Allocation; provided, however, that (a)
Purchaser's cost may differ from the total amount allocated hereunder to reflect
the inclusion in the total cost of items (for example, capitalized acquisition
costs) not included in the total amount so allocated, and (b) the amount
realized by Sellers may differ from the amount allocated to reflect transaction
costs that reduce the amount realized for federal income Tax
purposes.  Each of the Sellers, on the one hand, or Purchaser, on the
other hand, shall notify Purchaser or the Sellers, respectively, within twenty
(20) days after notice or commencement of an examination, audit or other
proceeding regarding the allocation determined under this Section
2.3.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
2.4 The
Closing

     

    .  The closing of the transactions contemplated herein (the
"Closing") will
take place at the offices of Skadden, Arps, Slate, Meagher & Flom LLP at
Four Times Square, New York, New York 10036, at 10:00 a.m. local time on the
date as soon as practicable (but in no event longer than ten (10) Business Days,
subject to an additional ten (10) Business Day extension at the election of
Purchaser in the event of an amendment or update to the Sellers' Disclosure
Schedule pursuant to Section
5.8 which occurs less than 10 days
prior to the Closing Date) after the conditions to the Closing set forth in
Section
6.1 and Section
6.2 have been
satisfied or waived, or at such other place, time or date as Purchaser and
Sellers mutually agree (the "Closing
Date").  The Closing shall be deemed effective as of 12:01 A.M.
Las Vegas time on the day after the Estimated Purchase Price has been paid to
REWG and the Easement and Lease Assignment and Assumption Agreement, the Bill of
Sale and Assignment and the Assignment Agreements have been executed and
delivered to Purchaser.

     

    Section
2.5 Closing
Deliveries.

     

    Section
2.5.1 Purchaser's Closing
Deliveries.  At the Closing, Purchaser will

     

    (a) pay to
REWG the Estimated Purchase Price in accordance with Section
2.2.2 and

     

    (b) execute
and deliver or pay (as applicable) the following items to
Sellers:

     

    (i) A
counterpart executed by Purchaser of a bill of sale, assignment and assumption
agreement in the form of Exhibit A (the
"Bill of Sale and
Assignment");

     

    (ii) A
counterpart executed by Purchaser of an easement, sublicense and lease
assignment and assumption agreement in the form of Exhibit B (the
"Easement and Lease
Assignment and Assumption Agreement");

     

    (iii) A
Certificate of Good Standing with respect to Purchaser, as of a recent date,
issued by the Secretary of State of the State of Nevada;

     

    (iv) Copies,
certified by the Secretary or Assistant Secretary of Purchaser, of corporate
resolutions authorizing the execution and delivery of this Agreement and all of
the other agreements and instruments, in each case, to be executed and delivered
by Purchaser in connection herewith;

     

    (v) A
certificate of the Secretary or Assistant Secretary of Purchaser identifying the
name and title and bearing the signatures of the officers of Purchaser
authorized to execute and deliver this Agreement and the other agreements and
instruments contemplated hereby;

     

    (vi) A
certificate addressed to Sellers dated the Closing Date executed by a duly
authorized officer of Purchaser to the effect that the conditions set forth in
Section
6.2.1 and Section
6.2.2 have been satisfied by
Purchaser;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (vii) Any
amounts for which Purchaser is liable pursuant to Section
2.2.7 of this Agreement; and

     

    (viii) Agreements
(collectively, the "Assignment
Agreements"), substantially in the applicable form attached hereto in
Exhibit C,
assigning to Purchaser all of the Assigned Facility Agreements (except to the
extent assigned by the Bill of Sale and Assignment) and executed by
Purchaser.

     

    Section
2.5.2 Sellers' Closing
Deliveries.  At the Closing, Sellers will execute and deliver
(as applicable) to Purchaser the following items:

     

    (a) A
counterpart executed by the Sellers of the Bill of Sale and
Assignment;

     

    (b) A
counterpart executed by REWG of the Easement and Lease Assignment and Assumption
Agreement;

     

    (c) A
certification of non-foreign status of Reliant Energy Power Generation, Inc., as
the owner of REWG and REAM, in the form and manner which complies with the
requirements of Section 1445(b)(2) of the Code and Treasury Regulation Section
1.1445-2(b)(2) and in form and substance reasonably satisfactory to
Purchaser;

     

    (d) A
Certificate of Good Standing with respect to each Seller, as of a recent date,
issued by the Secretary of State of the State of Delaware;

     

    (e) Copies,
certified by the Secretary or Assistant Secretary of each Seller, of resolutions
authorizing the execution and delivery of this Agreement and all of the other
agreements and instruments, in each case, to be executed and delivered by such
Seller in connection herewith;

     

    (f) A
certificate of the Secretary or Assistant Secretary of each Seller identifying
the name and title and bearing the signatures of the officers of such Seller
authorized to execute and deliver this Agreement and the other agreements and
instruments contemplated hereby;

     

    (g) A
certificate addressed to Purchaser dated the Closing Date executed by a duly
authorized officer of each Seller to the effect that the conditions set forth in
Section
6.1.1 and Section
6.1.2 have been satisfied by Sellers;

     

    (h) Record
drawings in Sellers’ possession that include the as-built drawings reflecting
the design of the Facility;

     

    (i) Any
amounts for which the Sellers are liable pursuant to Section
2.2.7 of this
Agreement;

     

    (j) The
Assignment Agreements executed by all of the parties thereto except Purchaser;
and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (k) Documents
suitable for recording releasing the Financing Liens and a copy of a UCC-3
Termination Statement terminating that certain UCC-1 Financing Statement
recorded April 2, 2003 as Instrument No. 02402 in Book 20030402 of the Official
Records of Clark County, Nevada, as assigned by UCC Assignment recorded July 8,
2003 as Instrument No. 00632 in Book 20030708 of said Official Records, as
amended by UCC Amendment recorded July 8, 2003 as Instrument No. 00633 in Book
20030708 of said Official Records.

     

    Section
2.5.3 Escrow
Holder.  If requested by Purchaser or Sellers, the Closing
shall be consummated through an escrow with the Title Company acting as escrow
holder, which may include delivery to the Title Company of the items in Section 2.5.1 and Section 2.5.2 of this
Agreement and payment to the Title Company of the Estimated Purchase Price,
Transfer Taxes and any amounts owing under Section
2.2.7 and Section
5.1(f), notwithstanding other
provisions in this Agreement to the contrary.  Escrow shall close once
all conditions to Closing have been satisfied or waived.

     

    Section
2.6 Further Assurances;
Post-Closing Cooperation

     

        Section
2.6.1 Further
Assurances.  Subject to the terms and conditions of this
Agreement, at any time or from time to time after the Closing, at either Party's
request and without further consideration, the other Party shall execute and
deliver to such Party such other instruments of sale, transfer, conveyance,
assignment and confirmation, provide such materials and information and take
such other actions as such Party may reasonably deem necessary or desirable in
order more effectively (a) to transfer, convey and assign to Purchaser, and
to confirm Purchaser's title to, the Purchased Assets, (b) to effectuate the
assumption by Purchaser of the Assigned Facility Agreements, and
(c) otherwise to consummate the transactions contemplated by this
Agreement.  Purchaser shall provide to Sellers all invoices and
supporting documentation received with respect to Assigned Agreements, which
relate to any obligations arising thereunder prior to the Closing Date or any
other obligation that remains with Sellers.

     

    Section
2.6.2 Pre-Closing Books and
Records.

     

    (a) Following
Closing, each Party and its Affiliates will afford each other Party, its counsel
and its accountants, during normal business hours, reasonable access to the
Books and Records with respect to periods prior to Closing (the "Pre-Closing Books and
Records") and the right to make copies and extracts therefrom, to the
extent that such access may be reasonably required by the requesting Party in
connection with (i) the preparation of Tax Returns, (ii) compliance
with the requirements of any Governmental Authority, (iii) any Excluded
Liabilities or (iv) any rights and obligations arising under Article VIII, Article IX or Article XI
hereof.  Each Party shall maintain Pre-Closing Books and Records
reasonably expected to be required in connection with the matters described in
items (i) through (iv) of the preceding sentence in accordance with the ordinary
course document retention policies of such Party; provided, however, that nothing
in this Agreement shall be deemed to obligate either Party to maintain the
Pre-Closing Books and Records for longer than two (2) years after
Closing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Purchaser
acknowledges and consents to the retention by Sellers of information made
available to Purchaser relating to the Purchased Assets (the "Retained
Information").  From and after the Closing Date, Sellers shall,
and shall cause their representatives to, treat the Retained Information as
strictly confidential (except to the extent compelled to disclose by judicial or
administrative process or by other requirements of Law, any stock exchange or
any other self-regulatory organization or as reasonably required by any Seller
in connection with the matters described in clauses (i) through (iv) of Section
2.6.2(a)).

     

    Section
2.6.3 Delivery of Books and
Records.  No later than the Closing Date (or in the case of
Books and Records not immediately required for the operation and maintenance of
the Facility that cannot be reasonably and practicably delivered at the Closing,
as soon as reasonably practicable thereafter, but no later than forty-five (45)
days after the Closing Date), Sellers shall deliver any Books and Records (to
the extent providing such to Purchaser does not violate any Law) that are not
located at the Site to Purchaser at Purchaser's offices in Las Vegas, Nevada,
the Site or another location as designated by Purchaser in or near Las Vegas,
Nevada.

     

    Section
2.6.4 RRSU Payments
Refunds.  At
any time after Closing, Sellers shall be entitled to receive any SCE RRSU Refund
pursuant to the 2003 Settlement Agreement and the Amended and Restated 2003
Settlement Agreement and any refunds from overpayments made by Sellers into the
trust accounts established under Revised MOU I and MOU II and Sellers’ share of
any interest earned on the balance of such accounts, net of Sellers’ share of
any trustee fees and out-of-pocket expenses deducted by trustee prior to
distribution.

     

    ARTICLE
III                                

     

    REPRESENTATIONS
AND WARRANTIES OF THE SELLERS

     

    Except as
set forth in the Sellers' Disclosure Schedule, each of the Sellers, jointly and
severally, represents and warrants to Purchaser that all of the statements
contained in this Article III with respect to
the Sellers are true and correct as of the Effective Date (unless another date
is expressly indicated) and will be true and correct as of the Closing Date as
though made on and as of the Closing Date.  Each exception and other
response to this Agreement set forth in the Sellers' Disclosure Schedule is
identified by reference to, or has been grouped under a heading referring to, a
specific individual section of this Agreement, and, except as otherwise
specifically stated with respect to such exception, relates only to such section
and to other sections to the extent that the application of such exception or
other response to such other sections is reasonably apparent on its face without
further investigation.

     

    Section
3.1 Existence

     

    REWG is a
limited liability company duly formed, validly existing and in good standing
under the Laws of the State of Delaware.  REAM is a limited liability
company duly formed, validly existing and in good standing under the Laws of the
State of Delaware.  Each of the Sellers has the requisite limited
liability company power and authority to own, operate and lease its properties
and assets and to carry on its business as now being conducted.  Each
of the Sellers is duly qualified or licensed to do business and is in good
standing in all jurisdictions in which the character of the properties owned or
held under lease by it or the nature of the business transacted by it makes
qualification necessary, except where the failure to be so qualified, licensed
or in good standing would not be reasonably expected to have a Material Adverse
Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
3.2 Authority

     

    Each
Seller has full limited liability company power and authority to execute and
deliver this Agreement and all other agreements (the "Transaction
Agreements") to be executed by Seller at Closing and all other
instruments to which it is or will be a party in connection with the
transactions contemplated hereby (together with the Transaction Agreements, the
"Transaction
Documents"), to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated hereby and thereby.  The
execution and delivery by each Seller of this Agreement and the Transaction
Documents, and the performance by such Seller of its obligations hereunder and
thereunder, have been duly and validly authorized by all necessary limited
liability company action.

     

    Section
3.3 Binding
Agreement

     

    This
Agreement and the Transaction Agreements to which each Seller is or will be a
party have been or will be when delivered duly executed and delivered by each
Seller and, assuming due and valid authorization, execution and delivery thereof
by Purchaser and each other party thereto, this Agreement and the Transaction
Agreements to which it is or will be a party are or will be when delivered valid
and binding obligations of such Seller enforceable against such Seller in
accordance with their terms, except (a) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and
other similar Laws of general application affecting enforcement of creditors'
rights generally, and (b) general equitable principles, including that the
availability of the remedy of specific performance or injunctive or other forms
of equitable relief may be subject to equitable defenses and would be subject to
the discretion of the court before which any proceeding therefor may be
brought.

     

    Section
3.4 No
Conflicts

     

    Subject to the receipt of the Requested Consents, FERC Approval, the
expiration or early termination of the waiting period under the HSR Act and
receipt of the other consents and actions listed in Section
3.4 of Sellers'
Disclosure Schedule, the execution and delivery by each Seller of this Agreement
do not, and the execution and delivery by such Seller of the Transaction
Agreements to which it is or will be a party, the performance by such Seller of
its obligations under this Agreement and such Transaction Agreements and the
consummation of the transactions contemplated hereby and thereby shall
not:

     

    (a) conflict
with or result in a violation or breach of any of the terms, conditions or
provisions of such Sellers' organizational documents;

     

    (b) result in
a default (or give rise to any right of termination, cancellation or
acceleration) under any of the terms, conditions or provisions of any Assigned
Facility Agreement, material Contract or other material obligation (with or
without notice or lapse of time or both) with respect to the Purchased Assets to
which such Seller or any of its Affiliates is a party or by which such Seller,
any of its Affiliates or any of the Purchased Assets may be bound, except for
such defaults (or rights of termination, cancellation or acceleration) as to
which requisite waivers or consents have been obtained in writing (true and
correct copies of which waivers or consents have been furnished to
Purchaser);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) conflict
with or result in a violation or breach in any material respect of any term or
provision of any Law applicable to such Seller or the Purchased Assets;
or

     

    (d) result in
the imposition or creation of any Lien (other than a Permitted Lien) upon any of
the Purchased Assets, other than in favor of Purchaser;

     

    Section
3.5 Approvals and
Filings

     

    Except for the Requested Consents, FERC Approval and expiration or early
termination of the waiting period under the HSR Act and as set forth in
Section
3.5 of Sellers'
Disclosure Schedule, no material consent or approval of, filing with or notice
to, any Governmental Authority or other Person by any Seller is required in
connection with the execution, delivery and performance by any Seller of this
Agreement or any of the Transaction Agreements to which it is or will be a party
or the consummation of the transactions contemplated hereby or
thereby.

     

    Section
3.6 No Material Adverse
Effect

     

    To
Sellers' Knowledge, none of the Sellers has any Liability that has, or could be
reasonably likely to have, a Material Adverse Effect.

     

    Section
3.7 Legal
Proceedings

     

    Except as set forth in Section
3.7 of Sellers'
Disclosure Schedule, there are no Actions (a) outstanding or pending to which a
Seller is a party or (b) to Sellers' Knowledge, threatened against a Seller or
any of its assets and properties, in each case which would be reasonably
expected to (i) result in the issuance of an order restraining, enjoining
or otherwise prohibiting or making illegal the consummation of the transactions
contemplated by this Agreement or any of the Transaction Agreements,
(ii) adversely affect the ownership, operation, maintenance or use of the
Project or the Purchased Assets, or (iii) individually or in the aggregate,
have a Material Adverse Effect.

     

    Section
3.8 Compliance with
Laws

     

    Each of
the Sellers is not in violation of or in default under any Law applicable to it
(excluding any Environmental Laws which are addressed in Section 3.16), the
Project or the Purchased Assets in any material respect.  None of the
Sellers has received notification alleging that it is in violation of any Law
(excluding any Environmental Laws which are addressed in Section 3.16) in any
material respect in regard to the Project or the Purchased Assets.

     

    Section
3.9 Title to Personal
Property

     

    REWG and
REAM own, possess and will be conveying good and valid title to all of the
Project (excluding the Excluded Assets) constituting personal property, free and
clear of all Liens except Permitted Liens (excluding Assigned Facility
Agreements which are addressed in Section 3.13,
Intellectual Property which is addressed in Section 3.20 and
Transferred Permits which are addressed in Section
3.14).

     

    Section
3.10 Real Property. 

     

    (a) REWG is
the current owner and holder of the leasehold estate created by the Lease, free
and clear of all Liens other than Permitted Liens, but subject to Permitted
Encumbrances and other matters of record.  To Seller’s Knowledge, the
Lease is in full force and effect and is enforceable against the lessor
thereunder in accordance with its terms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) REWG is
the current holder of the interest in the Improvements created by Section 3.8 of
the Lease, free and clear of all Liens other than Permitted Liens, but subject
to the terms and conditions of the Lease, Permitted Encumbrances and other
matters of record.

     

    (c) REWG is
the current owner and holder of the easement rights created by the Easements,
free and clear of all Liens other than Permitted Liens, but subject to Permitted
Encumbrances and other matters of record.  To Seller’s Knowledge, each
Easement is in full force and effect and enforceable against the grantor thereof
in accordance with its terms.

     

    (d) Seller
has provided to Purchaser true and complete copies of the Lease, the Easements,
and Liens thereon (except for Permitted Liens and Permitted Encumbrances),
including those listed in Section 3.10(d) of
the Sellers' Disclosure Schedule (together with all amendments, supplements,
schedules and exhibits thereto) (collectively, the "Real Property
Documents").   

     

    (e) Sellers
have not received any notice that the whole or any portion of the Real Property
is subject to any governmental decree or order to be sold or is being condemned,
expropriated or otherwise taken by any Governmental Authority with or without
payment of compensation therefor, nor, to Sellers' Knowledge, has any such
condemnation, expropriation or taking been proposed.  None of the
Sellers is a party to any lease, assignment or similar arrangement affecting or
relating to any portion of the Real Property except for the Real Property
Documents and as may be disclosed in the Title Insurance
Commitment.  To Sellers' Knowledge, no security deposit or portion
thereof with respect to any Real Property Document has been applied in respect
of a breach or default under such Real Property Document that has not been
re-deposited in full.  The Sellers do not owe any brokerage
commissions or finder's fees with respect to such Real Property
Documents.  None of the Sellers has received any notice of any
material requirements or recommendations by any insurance company that has
issued a policy covering any part of the Real Property or by any board of fire
underwriters or other body exercising similar functions, requiring or
recommending any repairs or work to be done on any part of the Real Property,
which repair or work has not been completed and accepted.

     

    (f) Other
than Permitted Liens and as set forth in Section
3.10(f) of
Sellers' Disclosure Schedule and as may be reflected in the Title Insurance
Commitment, there are no commitments to or agreements by Sellers with any
Governmental Authority affecting the use or ownership of the Real Property and,
to Sellers' Knowledge, there are no commitments to or agreements with any
Governmental Authority by any other party affecting the use or ownership of the
Real Property.

     

    (g) Except as set forth in Section
3.10(g) of Sellers' Disclosure
Schedule, none of the Sellers is a party to any agreement for the sale,
exchange, encumbrance, lease or transfer of any of the Real Property, the Real
Property Interests or any portion of the Real Property or the Real Property
Interests by Sellers.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (h) Except as
set forth in Section
3.10(h) of
Sellers' Disclosure Schedule, Sellers, to their Knowledge, are in compliance
with applicable material conditions, covenants and restrictions that encumber
the Real Property or the Real Property Interests.

     

    Section
3.11 Condition of Purchased
Assets

     

    .  Except as set forth in Section
3.11 of
Sellers' Disclosure Schedule, all Materials and Equipment are currently located
on the Real Property and no Materials and Equipment intended for the Facility
are being held by third parties pending payment by Sellers.  To
Sellers’ Knowledge, Sellers have not failed to disclose to Purchaser any fact
relating to the operation or condition of the Facility or the Real Property that
could reasonably be likely to have a Material Adverse Effect.  The
Facility has been operated in accordance with Good Operating Practices except
matters that would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.  Except as set forth on Section 3.11 of
Sellers' Disclosure Schedule, the Purchased Assets are sufficient to operate the
business of the Facility as historically owned, operated and maintained for the
last 24 months by Sellers, except for the Excluded Assets.

     

    Section
3.12 Warranty
Matters

     

     Section
3.12 of the
Sellers' Disclosure Schedule identifies all currently effective warranties by
any vendor, materialman, supplier, contractor or subcontractor relating to the
Purchased Asset or any component thereof with a value of $50,000 or
more.  To Sellers' Knowledge, there are no events that have occurred
or conditions applicable that constitute or may constitute a defense to the
continuing effectiveness of each such warranty.

     

    Section
3.13 Contracts.

     

    (a) Excluding
the Assigned Facility Agreements, any Seller Plans and any Contracts with
respect to which none of the Purchased Assets will be bound or have Liability
after the Closing, there are no Contracts of the following types by which the
Purchased Assets may be bound or relating to the employment at the Project of
any Project Employee:

     

    (i) Contracts
for the future purchase, exchange or sale of electric power or ancillary
services or fuel;

     

    (ii) Contracts
for the future transmission of electric power or fuel or for the storage of
fuel;

     

    (iii) interconnection
Contracts;

     

    (iv) other
than Contracts of the nature addressed by Section
3.13(a)(i) and Section
3.13(a)(ii), Contracts for the
future provision of goods or services requiring payments in excess of $500,000
for each individual Contract;

     

    (v) outstanding
agreements of guaranty, surety or indemnification, direct or indirect, by
Sellers or any of their Affiliates for the benefit of the Purchased
Assets;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (vi) Contracts
with Sellers or any of their Affiliates relating to the future provision of
goods or services;

     

    (vii) employment
and consulting Contracts;

     

    (viii) Contracts
providing severance benefits in excess of $100,000;

     

    (ix) any
collective bargaining agreement;

     

    (x) outstanding
futures, swap, collar, put, call, floor, cap, option or other Contracts that are
intended to benefit from or reduce or eliminate the risk of fluctuations in the
price of commodities, including electric power, fuel or
securities;

     

    (xi) partnership,
joint venture or limited liability company agreements;

     

    (xii) Contracts
relating to indebtedness;

     

    (xiii) Contracts
relating to the use of the Site; and

     

    (xiv) Contracts
relating to the use of Intellectual Property used in the operation of the
Facility.

     

    (b) Sellers
have provided Purchaser with, or access to, true and complete copies of all
Assigned Facility Agreements, including all amendments, supplements, schedules
and exhibits thereto.  No written waiver or, to Sellers' Knowledge,
verbal waiver of any term or condition of any Assigned Facility Agreement is
currently in effect.  Neither REWG nor Reliant Energy Services, Inc.
has assigned any of its interest in the Assigned Facility Agreements and its
respective interests in the Assigned Facility Agreements are not subject to any
Liens (other than Permitted Liens).

     

    (c) Neither
Seller, and to Sellers' Knowledge, no counterparty, is in default in any
material respect in the performance or observance of any term or provision of,
and no event has occurred which, with lapse of time or action by a third party,
would result in such a default under, any Assigned Facility
Agreement.  To Sellers’ Knowledge, each Assigned Facility Agreement is
in full force and effect.  Each Assigned Facility Agreement (other
than the Real Property Documents), and to Sellers’ Knowledge each of the Real
Property Documents, constitutes a legal, valid and binding agreement of the
applicable Seller and, to Sellers' Knowledge, of each other party thereto,
enforceable in accordance with its terms (subject to applicable bankruptcy,
insolvency or other similar Laws relating to or affecting the enforcement of
creditors' rights generally and to general principles of
equity).

     

    Section
3.14 Permits.

     

    (a) Except
for those Permits required under Environmental Law, Sellers' representations and
warranties for which are set forth exclusively under Section 3.16 of this
Agreement, Section
3.14(a) of the Sellers' Disclosure Schedule sets forth all material
Permits (but excluding those Permits related to environmental matters which are
addressed in Section
3.16) that Sellers are required to obtain under applicable Law in
connection with the ownership, operation, maintenance or use of the Facility
(the "Facility
Permits").

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Except as
set forth in Section
3.14(b)(i) of
Sellers' Disclosure Schedule, all Facility Permits are properly in the name of
the Facility or a Seller.  Except as set forth in Section
3.14(b)(ii) of Sellers' Disclosure Schedule, each of
the Sellers is in compliance in all material respects with each Facility Permit,
and each Facility Permit is in full force and effect.

     

    Section
3.15 Insurance

     

    Section
3.15 of Sellers' Disclosure Schedule sets forth a true
and complete list and description of all material insurance policies in force on
the Effective Date with respect to the Purchased Assets, together with a
statement of the aggregate amount of claims paid out and claims pending, under
each such insurance policy, in each case relating to the Purchased
Assets.  All policies are in full force and effect in all material
respects, all premiums due thereon have been paid and the Sellers are otherwise
in compliance in all material respects with the terms and provisions of such
policies.  Furthermore, as they relate to the Purchased Assets, to
Sellers’ Knowledge, (a) Sellers have not received any notice of cancellation or
non-renewal of any such policy nor is the termination of any such policies
threatened, (b) there is no claim pending under any of such policies as to which
coverage has been questioned, denied or disputed by the underwriters of such
policies, (c) Sellers have not received any notice from any of its insurance
carriers that any insurance premiums in respect of such policies will be
increased in the future or that any insurance coverage presently provided for
will not be available to the Sellers in the future on substantially the same
terms as now in effect, and (d) Sellers have not received notice that the
Facility or any Materials and Equipment or the operation thereof will not be
insurable or will be subject to exclusions arising from actual or potential
defects in the Purchased Assets.

     

    Section
3.16 Environmental
Matters.

     

    Except as set forth in Section
3.16 of Sellers'
Disclosure Schedule:

     

    (a) Sellers
have made available to Purchaser all of the material environmental site
assessment reports and studies that were in the possession of Sellers, which
relate to environmental matters in connection with ownership, construction,
operation or maintenance of the Facility.  

     

    (b) None of
the Sellers (i) has entered into or agreed to any judicial or administrative
consent decree or order or (ii) is subject to any judgment, decree, or judicial
or administrative order, relating to compliance with any Environmental Law or to
investigation or cleanup of Hazardous Materials under any Environmental Law, in
each case relating to the Facility or the Real Property, except for any such
consent decree, order, or the like under which Sellers' obligations have been
fully completed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) There are
no Actions pending nor, to Sellers' Knowledge, are there any Actions threatened,
of which Sellers have received written notice, to which any Seller is a party
under any Environmental Law relating to the Facility or the Real Property,
except for such claims or Actions which have been fully
resolved.

     

    (d) All
material Environmental Permits issued to any Seller and in effect with respect
to the Facility or the Real Property are set forth in Section 3.16(d) of
the Sellers' Disclosure Schedule.  All material Environmental Permits
required for the ownership, construction, or operation of the Facility (i) are
in effect to the extent required under any Environmental Law or (ii) a complete
and timely application has been submitted such that an application shield would
apply.  No appeal or any other action is pending, or to Seller's
Knowledge, threatened, to revoke any such Environmental Permits, except for such
appeal or other action, which has been fully resolved.

     

    (e) Sellers
are and have been in compliance with all applicable Environmental Laws in all
material respects with respect to the Facility or the Real
Property.

     

    (f) None of
the Sellers has Released Hazardous Materials on, beneath or from the Real
Property, except for Releases of Hazardous Materials that would not reasonably
be expected to result in a claim by a Governmental Authority or other Person not
affiliated with Purchaser or a requirement to engage in a material
Remediation.

     

    (g) To
Sellers' Knowledge, there are no facts, circumstances or conditions related to
Sellers' operation of the Facility that currently exist that would make it
reasonably likely that the Facility is in violation in any material respect with
applicable Environmental Law.

     

    Notwithstanding any other provision of this Agreement to the contrary
(except for Environmental Permits that may require filing with, or approval by,
Governmental Authorities under Section
3.5), this Section 3.16 contains
the sole and exclusive representations and warranties of Sellers with respect to
compliance with Environmental Laws, Environmental Permits, Hazardous Materials
and Remediation.

     

    Section
3.17 Labor
Matters

     

                         (a) All of
the Project Employees are employees of RECS.

     

                            
(b) RECS is
neither party to, nor bound by, any labor agreement, collective bargaining
agreement, work rules or practices or any other labor-related agreements or
arrangements with any labor union or labor organization pertaining to the
Project Employees.  There are no labor agreements, collective
bargaining agreements, work rules or practices or any other labor-related
agreements or arrangements with any labor union or labor organization that
pertain to any Project Employee's employment with RECS.

     

    (c) No labor
union, labor organization or Project Employee has made a pending demand for
recognition or certification to Sellers or RECS with respect to the Facility or
Project Employees.  To Sellers’ Knowledge and to the knowledge of
RECS, there are no representation or certification proceedings or petitions
seeking a representation proceeding presently pending or threatened in writing
to be brought or filed with the National Labor Relations Board or any other
labor relations tribunal or authority with respect to Project
Employees.  To the knowledge of RECS and to Sellers' Knowledge, there
have been no labor union organizing activities with respect to any Project
Employees.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) From
January 1, 2005, there has been no actual or, to the knowledge of RECS and to
Sellers' Knowledge, threatened arbitrations, grievances, labor disputes,
strikes, lockouts, slowdowns or work stoppages against or affecting the
Project.

     

    (e) With
respect to the Project Employees, none of RECS or its respective employees,
agents or representatives has committed any material unfair labor practice as
defined in the National Labor Relations Act.

     

    (f) RECS and
Sellers, with respect to the Project Employees, are in compliance in all
material respects with all applicable Laws relating to employment and employment
practices, including, without limitation, all Laws respecting terms and
conditions of employment, health and safety, wages and hours, child labor,
immigration, employment discrimination, worker classification, disability rights
or benefits, equal opportunity, plant closures and layoffs, affirmative action,
workers compensation, labor relations, employee leave issues and unemployment
insurance.

     

    Section
3.18 Employee
Matters

     

    (a) Neither
Purchaser nor any of its Affiliates will incur any Liability under or otherwise
in respect of any employee compensation or benefit plan, program, agreement or
arrangement, providing retirement, incentive compensation, health, disability,
severance, life, or equity compensation or benefits (including any employee
benefit plan within the meaning of ERISA Section 3(3)), established or
maintained by Sellers or their ERISA Affiliates.  Each such plan,
program, agreement or arrangement maintained in respect of any individual
performing services in respect of the Facility or otherwise in respect of the
Purchased Assets has been maintained in material compliance with its terms and
applicable Law, including ERISA and the Code.

     

    (b) Section
3.18(b) of Sellers' Disclosure
Schedule sets forth a complete list of each deferred compensation and each
incentive compensation, stock purchase, equity compensation plan, program,
agreement or arrangement; each "welfare" plan, fund or program that is within
the meaning of Section 3(1) of ERISA; each "pension" plan, fund or program that
is within the meaning of Section 3(2) of ERISA; each employment, termination or
severance agreement; and each other employee benefit plan, fund, program,
agreement or arrangement, in each case, maintained or contributed to for the
benefit of any Project Employee (the "Seller
Plans").  With respect to each Seller Plan, Sellers have
heretofore delivered or made available to Purchaser, a summary plan description,
if applicable, or such other plan summary and the most recent determination
letter received from the Internal Revenue Service with respect to each Seller
Plan intended to qualify under Section 401(a) of the Code.  No Seller
Plan is a “defined benefit plan” within the meaning of Section 414(j) of the
Code.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
3.19 Brokers

     

    All
negotiations relative to this Agreement and the transactions contemplated hereby
have been carried out by Sellers directly with Purchaser without the
intervention of any Person on behalf of Sellers in such manner as to give rise
to any valid claim by any Person against Purchaser for a finder's fee, brokerage
commission or similar payment.

     

    Section
3.20 Intellectual
Property

     

    (a) Section
3.20(a) of
Sellers' Disclosure Schedule sets forth a complete list of all issued patents,
registered trademarks, registered copyrights and applications for any of the
foregoing owned by REWG and exclusively used in the Facility.  Except
as set forth on Section
3.20(a) of
Sellers' Disclosure Schedules, REWG has the right to use the Transferred
Intellectual Property.

     

    (b) Except as set forth on Section
3.20(b) of the Sellers' Disclosure Schedule, (i)
REWG owns or has the right to use all material Intellectual Property used in the
operations of the Facility as historically owned, operated and maintained for
the last 24 months by Sellers, and (ii) to Sellers' Knowledge, no Person has or
is infringing or misappropriating (whether directly or indirectly) any
Transferred Intellectual Property.  No Person has asserted against
REWG a claim in writing that the operation of the Facility as historically
owned, operated and maintained for the last 24 months by Sellers infringes or
misappropriates the Intellectual Property of such Person and, to Sellers’
Knowledge, there is no valid basis for any such claim.

     

    ARTICLE
IV

     

    REPRESENTATIONS
AND WARRANTIES OF PURCHASER

     

    Except as
set forth in the Purchaser's Disclosure Schedule, Purchaser hereby represents
and warrants to Sellers that all of the statements contained in this Article IV are true and
correct as of the Effective Date (unless another date is expressly indicated)
and will be true and correct as of the Closing Date as though made on and as of
the Closing Date.  Each exception and other response to this Agreement
set forth in the Purchaser's Disclosure Schedule is identified by reference to,
or has been grouped under a heading referring to, a specific individual section
of this Agreement, and, except as otherwise specifically stated with respect to
such exception, relates only to such section and to other sections to the extent
that the application of such exception or other response to such other sections
is reasonably apparent on its face without further investigation.

     

    Section
4.1 Existence

     

    Purchaser
is a corporation, duly formed, validly existing and in good standing under the
Laws of the State of Nevada and has full corporate power and authority to
conduct its business as it is now being conducted and to own, lease and operate
its assets and properties.  Purchaser is duly qualified or licensed to
do business and is in good standing in all jurisdictions in which the character
of the properties owned or held under lease by it or the nature of the business
transacted by it makes qualification necessary, except where the failure to be
so qualified, licensed or in good standing would not be reasonably expected to
have a Material Adverse Effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
4.2 Authority

     

    Purchaser
has full corporate power and authority to execute and deliver this Agreement and
all other agreements or instruments to which it is or will be a party in
connection with the transactions contemplated hereby, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby
and thereby.  The execution and delivery by Purchaser of this
Agreement and all other agreements or instruments to which it is or will be a
party in connection with the transactions contemplated hereby, and the
performance by Purchaser of its obligations hereunder and thereunder, have been
duly and validly authorized by all necessary corporate action.

     

    Section
4.3 Binding
Agreement

     

    This
Agreement and the Transaction Agreements to which Purchaser is or will be a
party have been or will be when delivered duly and validly executed and
delivered by Purchaser and, assuming due and valid authorization, execution and
delivery thereof by Sellers and each other party thereto, this Agreement and the
Transaction Agreements to which Purchaser is or will be a party are or will be
when delivered valid and binding obligations of Purchaser enforceable against
Purchaser in accordance with their terms, except (a) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance and other similar Laws of general application affecting enforcement
of creditors' rights generally, and (b) general equitable principles,
including that the availability of the remedy of specific performance or
injunctive or other forms of equitable relief may be subject to equitable
defenses and would be subject to the discretion of the court before which any
proceeding therefor may be brought.

     

    Section
4.4 No
Conflicts

     

    Subject
to the receipt of the Requested Consents, PUCN Approval, FERC Approval and the
expiration or early termination of the waiting period under the HSR Act, the
execution and delivery by Purchaser of this Agreement do not, and the execution
and delivery by Purchaser of the Transaction Agreements to which Purchaser is or
will be a party, the performance by Purchaser of its obligations under this
Agreement and such Transaction Agreements and the consummation of the
transactions contemplated hereby and thereby shall not:

     

    (a) conflict
with or result in a violation or breach of any of the terms, conditions or
provisions of Purchaser's articles of incorporation and
by-laws;

     

    (b) result in
a default (or give rise to any right of termination, cancellation or
acceleration) under any of the terms, conditions or provisions of any material
Contract or other material obligation (with or without notice or lapse of time
or both) to which Purchaser or any of its Affiliates is a party or by which any
of their respective assets and properties may be bound, except for such defaults
(or rights of termination, cancellation or acceleration) as to which requisite
waivers or consents have been obtained in writing (true and correct copies of
which waivers and consents have been furnished to Sellers);
or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) conflict
with or result in a violation or breach in any material respect of any term or
provision of any Law applicable to Purchaser or any of its Affiliates or any of
their respective assets and properties.

     

    Section
4.5 Approvals and
Filings

     

    Except
for the Requested Consents, PUCN Approval, FERC Approval, the Amended TSA FERC
Order, the expiration or early termination of the waiting period under the HSR
Act and as set forth in Section 4.5 of Purchaser’s Disclosure Schedule, no
material consent or approval of, filing with or notice to, any Governmental
Authority or other Person is required in connection with the execution, delivery
and performance by Purchaser of this Agreement or any of the Transaction
Agreements to which Purchaser is or will be a party or the consummation by
Purchaser of the transactions contemplated hereby or thereby.

     

    Section
4.6 Legal
Proceedings

     

    Except as
set forth in Section
4.6 of Purchaser's Disclosure Schedule, there are no Actions (a)
outstanding or pending to which Purchaser is a party or (b) to Purchaser's
Knowledge, threatened against Purchaser or any of its assets and properties,
which would be reasonably expected to result in the issuance of an order
restraining, enjoining or otherwise prohibiting or making illegal the
consummation of the transactions contemplated by this Agreement or any of the
Transaction Agreements.

     

    Section
4.7 Brokers

     

    All
negotiations relative to this Agreement and the transactions contemplated hereby
have been carried out by Purchaser directly with Sellers without the
intervention of any Person on behalf of Purchaser in such manner as to give rise
to any valid claim by any Person against Sellers for a finder's fee, brokerage
commission or similar payment.

     

    Section
4.8 Financial
Resources

     

    Purchaser
will, at Closing, have unrestricted cash sufficient to satisfy its obligations
required to be performed at Closing.

     

    Section
4.9 Opportunity for Independent
Investigation

     

    Prior to
its execution of this Agreement, Purchaser has conducted to its satisfaction an
independent investigation and verification of the current condition and affairs
of the Facility and the Purchased Assets without reliance on Sellers; provided, that such
independent investigation and verification shall not affect the express
representations, warranties, covenants or other obligations of Seller contained
in this Agreement.  Purchaser has had reasonable and sufficient access
to documents, other information and materials as it considers appropriate to
make its evaluations.

     

                                   
ARTICLE
V                                

     

    COVENANTS

     

    Section
5.1 Efforts to Close and Fulfillment of
Conditions

     

    After the
Effective Date and prior to Closing:

     

    (a) Each
Party shall use commercially reasonable efforts to take, or cause to be taken,
all actions, and to do, or cause to be done, all things necessary, proper or
advisable under Law to consummate and make effective the transactions
contemplated by this Agreement.  Such actions shall include each Party
using its commercially reasonable efforts to ensure satisfaction of the
conditions precedent to its obligations hereunder, as soon as practicable after
the Effective Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Each
Party shall provide reasonable cooperation to the other Party in obtaining
consents, approvals or actions of, making all filings with and giving all
notices to Governmental Authorities or other Persons required of the other Party
to consummate the transactions contemplated hereby and by the Transaction
Agreements.  The Parties shall use their commercially reasonable
efforts to respond promptly and accurately to any requests for additional
information made by any such Governmental Authority.  The Parties
agree that they shall consult with each other with respect to the transfer to
Purchaser or the obtaining by Purchaser or the Sellers of FERC Approval, PUCN
Approval and applicable Permits, consents, approvals and authorizations of all
third parties and Governmental Authorities, including the HSR Act filing; provided, that for
the avoidance of doubt, the HSR Act and PUCN filings and attachments thereto
need not be exchanged or preapproved by the non-filing
Parties.  Purchaser shall file with the PUCN, within 30 days after the
Effective Date, an amendment to Purchaser's 3-year action plan pursuant to NAC
704.9503, which amendment includes the Facility.  The Purchaser shall
not terminate such amendment or amend such amendment to remove the
Facility.  Each Party shall cooperate in good faith with the
Governmental Authorities and undertake promptly any and all commercially
reasonable action required to complete lawfully the transactions contemplated by
this Agreement including agreeing to terms and conditions of approvals from
Governmental Authorities that do not adversely affect the other
Party.

     

    (c) As
promptly as practicable and, in any event, within thirty (30) days after the
Effective Date, Purchaser shall file with the PUCN all documents reasonably
required to obtain the PUCN Approval.  Purchaser shall use its
commercially reasonable efforts to respond promptly and accurately to any
requests for additional information made by the PUCN, and Sellers shall use
their commercially reasonable efforts to cooperate with Purchaser in connection
therewith.  Purchaser shall consult with Sellers on all principal
filings submitted by Purchaser to the PUCN in connection with the PUCN Approval;
provided, that
such PUCN filings and attachments thereto need not be exchanged with, or
preapproved by, Sellers.  For the avoidance of doubt, Sellers shall
not be entitled to receive any proprietary data related to current and
forecasted operations of Purchaser, including production models, operating costs
and other similar information in connection with the preparation of the filing
to the PUCN.  Each Party shall bear its own costs and expenses of the
preparation of such filing. 

     

    (d) Each
Party shall prepare, as soon as is practical following the execution of this
Agreement, all necessary filings in connection with the transactions
contemplated by this Agreement that may be required by FERC, under the HSR Act
or under any other federal, state or local Laws.  Each Party shall use
commercially reasonable efforts to submit such filings within thirty (30) days
after the execution hereof for filings with the FERC and for filings under the
HSR Act.  The Parties shall request expedited treatment of any such
filings, shall promptly furnish each other with copies of any notices,
correspondence or other written communication from the relevant Governmental
Authority, shall promptly make any appropriate or necessary subsequent or
supplemental filings and shall cooperate in the preparation of such filings as
is reasonably necessary and appropriate (provided that HSR Act
filings and attachments need not be exchanged or preapproved by the other party
and provided that any exchange of information between Seller and Purchaser in
connection with any filings shall be done in a manner that complies with
applicable antitrust laws).  Purchaser shall be responsible for all
filing fees in connection with submissions by the Parties pursuant to the HSR
Act.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) As
provided in Section
5.1(d), the Parties shall file or
cause to be filed with the Federal Trade Commission and the United States
Department of Justice all notifications required to be filed under the HSR Act
and the rules and regulations promulgated thereunder, as amended from time to
time, with respect to the transactions contemplated hereby.  Each
Party will bear its own costs and expenses of the preparation of such
filing.

     

    (f) Purchaser,
at the cost and expense of the Sellers in an amount not to exceed $350,000,
shall use commercially reasonable efforts to obtain and provide to Sellers, (i)
on or before sixty (60) days before the Closing Date, a commitment for title
insurance issued by the Title Company, endorsed with a CLTA Form 107.5 or
107.5-06 “Leasehold Improvements” endorsement, to insure Purchaser's leasehold
interest in the Site, interests in the Improvements, and easement interests in
the easements  (the “Primm Easements”)
appurtenant to the Property created by Easement Agreement dated
August 31, 2001, between Primm South Real Estate Company, Primm 120
Limited Partnership, and Reliant Energy Bighorn, LLC., (the "Title Insurance
Commitment") and a current or updated ALTA/ACSM survey (the "Survey") of the Site
prepared by the Surveyor, and (ii) on the Closing Date, a commitment to issue a
title insurance policy, endorsed with a CLTA Form 107.5 or 107.5-06 “Leasehold
Improvements” endorsement, reasonably insuring Purchaser's leasehold interest in
the Site, interests in the Improvements, and easement interests in the Primm
Easements subject only to the Permitted Encumbrances and the Permitted Liens
(the "Title Insurance
Policy").  The premium for the Title Insurance Policy shall be
paid at Closing.  Purchaser shall be responsible for all costs of the
Title Insurance Commitment, resulting Title Insurance Policy and the Survey in
excess of the amount specified above to be paid by Sellers.  Purchaser
may object to any matters shown on the Title Insurance Commitment and/or the
Survey, other than Permitted Liens and the standard pre-printed exceptions that
appear in the Title Insurance Commitment, by delivering written notice (the
"Title and Survey
Objection Notice") to Sellers no later than ten (10) days after receipt
by the Purchaser of the later of the Title Insurance Commitment and the
Survey.  If Purchaser does not deliver the Title and Survey Objection
Notice within the prescribed 10-day period, all matters reflected on the Title
Insurance Commitment and Survey shall be "Permitted
Encumbrances", and all matters reflected on the Title Insurance
Commitment and the Survey to which Purchaser does not object in the Title and
Survey Objection Notice shall be Permitted Encumbrances.  Sellers may,
but shall have no obligation to, remove or rectify prior to Closing any matters
identified as objections in the Title and Survey Objection Notice (the "Objectionable Title and
Survey Matters").  Within ten (10) days after receipt of
Purchaser's Title and Survey Objection Notice, Seller shall provide Purchaser
notice ("Seller's
Title/Survey Objection Response") of those Objectionable Title and Survey
Matters that Seller will remove or rectify and those that Seller elects not to
remove or rectify.  If Seller elects not to remove or rectify any of
the Objectionable Title and Survey Matters, Purchaser shall have the right to
terminate this Agreement by delivering written notice to Sellers within ten (10)
days following Purchaser's receipt of Seller's Title/Survey Objection
Response.  If Purchaser does not deliver to Sellers such a notice of
termination within the prescribed 10-day period, then Purchaser shall be deemed
to have accepted the Objectionable Title and Survey Matters and they shall be
deemed to be Permitted Encumbrances.  Sellers agree to provide an
indemnity in favor of the Title Company for any Liens first appearing in public
record and attaching to the Real Property or Liens attaching to the Real
Property subsequent to the effective date of the Title Insurance Commitment
which are caused by Sellers or which are within Sellers' Knowledge and not
caused by either Seller or Purchaser.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g) Sellers
shall request the Requested Consents substantially in the form of Exhibit D attached
hereto or other form acceptable to the Parties from the applicable
counterparties to the Assigned Facility Agreements; provided that these forms
shall not be required for purposes of Sections 6.1.5 and
6.2.5.

     

    (h) Each
Party shall use good faith efforts to give notice to the other promptly after it
obtains Sellers’ Knowledge or Purchaser’s Knowledge, as the case may be, of
(i) the occurrence or non-occurrence of any event whose occurrence or
non-occurrence would be likely to cause any representation or warranty contained
in this Agreement made by it to be untrue or inaccurate in any material respect
at any time from the Effective Date to the Closing Date and (ii) any
failure of a Party to comply with or satisfy any covenant, condition or
agreement to be complied with or satisfied by it hereunder.

     

    (i) Each of
the Sellers and Purchaser agree to use commercially reasonable endeavors to
refrain from taking any action which could reasonably be expected to materially
delay the consummation of the transactions contemplated by this Agreement; provided, however, that Sellers
filing of a petition for leave to intervene or notice of intent to comment in
any proceeding initiated by Purchaser pursuant to PUCN Docket No. 08-03034 or
otherwise shall not be deemed to be an action which could reasonably be expected
to materially delay the consummation of the transactions contemplated by this
Agreement and shall not be an action with which Purchaser has any obligation to
assist Sellers; provided further,
that Purchaser's inclusion in its application for PUCN Approval requests or
action plan items unrelated to the Purchased Assets shall not be deemed to be an
action which could reasonably be expected to materially delay the consummation
of the transactions contemplated by this Agreement.  REWG shall timely
file a petition for leave to intervene in the PUCN proceeding(s) related to the
approval of an amendment to Purchaser’s 3-year action plan that includes the
Facility, retain counsel to represent REWG in such proceeding(s) in accordance
with NAC 703.510, as amended, and actively support the regulatory approval
process.

     

    (j) No
separate consent by Purchaser under any agreement to which Purchaser and any
Seller is party that is required to consummate the transactions contemplated by
this Agreement and the assignment and assumption of the Assigned Facility
Agreements shall be required from Purchaser, and by its execution and delivery
of this Agreement Purchaser hereby grants each such consent.  To the
extent that at the Closing Purchaser assumes obligations of Sellers to Purchaser
under Assigned Facility Agreements to which Purchaser is a counterparty,
Purchaser hereby releases Sellers from such obligations effective as of the
Closing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (k) Prior to
the Closing Date, Purchaser shall (1) enter into a transmission service
agreement ("Amended
Transmission Services Agreement") reflecting the same terms and
conditions as the Transmission Services Agreement except that the Amended
Transmission Service Agreement shall reflect the assignment of the Transmission
Service Agreement to Purchaser, shall supersede the Transmission Service
Agreement, and shall eliminate all future rights and obligations of Reliant
Energy Services, Inc. under the existing Transmission Service Agreement,
effective as of the Closing Date and (2) post the assignment on its Open Access
Same Time Information System to the extent that such posting is required under
Purchaser's open access transmission tariff and/or any other applicable FERC
requirement.  Further, Purchaser shall file the Amended Transmission
Service Agreement with FERC pursuant to Section 205 of the Federal Power Act and
request an effective date as of the Closing Date, and FERC shall have issued an
order accepting such filing (the "Amended TSA FERC
Order").

     

    Section
5.2 Operation and Maintenance of
Purchased Assets

     

    (a) After the
Effective Date and prior to Closing, the Sellers shall operate and maintain the
Facility in accordance with Good Operating Practices, in all material respects,
in compliance with Law and otherwise in the ordinary course of business
consistent with past practices.  Sellers shall provide notice to
Purchaser if the expenditures for maintenance and capital improvements for the
Project shall vary materially more or less than from the amounts set forth in
the budget therefore and shall provide information related thereto reasonably
requested by Purchaser.  Sellers shall provide Purchaser with a
detailed budget of maintenance and capital expenditures through December 31,
2008 within two weeks of the date hereof.

     

    (b) After the
Effective Date and prior to Closing, the Sellers shall not, without the written
consent of Purchaser:

     

    (i) dispose
of or assign any of the Purchased Assets except for obsolete and unneeded assets
in the ordinary course of business and in accordance with Good Operating
Practices; provided, that the
original value of such Purchased Assets, other than such Purchased Assets
suffering loss, damage, other casualty or breakage, to which Section
5.6 applies, and other than
assets replaced as part of routine maintenance by assets of comparable or
superior quality and value, does not exceed $6,000,000 in the
aggregate;

     

    (ii) incur or
permit to exist any Lien on any of the Purchased Assets, other than the
Permitted Liens;

     

    (iii) enter
into, amend, modify, terminate, grant any waiver under, give any consent or
settle or compromise any claim with respect to; (A) any Assigned Facility
Agreement listed on Schedule 5.2(b)(iii);
(B) any other Assigned Facility Agreement and Contracts entered into after the
Effective Date, except in the case of this clause (B) for any
Contracts, amendments, modifications, terminations, waivers, consents,
settlements or compromises entered into or made in the ordinary course of
business, consistent with past practices, and without any cost to or Liability
of Purchaser or adverse effect on the Purchased Assets, other than post-Closing
Liability not in excess of $200,000 individually or $2,000,000 in the aggregate
and which does not have a term beyond twelve months after Closing; or (C) any
other Contracts, except in the case of this clause (C) for any
agreements, amendments, modifications, terminations, waivers, consents,
settlements or compromises without any cost to or Liability of Purchaser or
adverse effect on the Purchased Assets.  At the election of
Sellers, Contracts entered into in accordance with Section
5.2(b)(iii)(B) shall become Assigned Facility
Agreements;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iv) permit to
lapse any rights to any Transferred Intellectual Property, except to the extent
such rights are not required to fulfill Sellers' obligations pursuant to this Section
5.2;

     

    (v) make any
material modification to the Facility or the Real Property;

     

    (vi) settle or
compromise any litigation which could result in any cost to or Liability of
Purchaser;

     

    (vii) make any
material change in the levels of Stores and Inventory maintained at the Facility
for the applicable time of the year, except in the ordinary course of business,
consistent with past practices and Good Operating Practices; provided, however, that nothing
in this provision shall require Sellers to maintain Stores and Inventory with a
cost in excess of the Stores and Inventory Cap Amount;

     

    (viii) apply for
or obtain any Permit without prior written notice to Purchaser, or modify or
amend in any material respect any Permit associated with the Purchased Assets;
or

     

    (ix) enter
into any agreement to do or engage in any of the foregoing.

     

    (c) All notices of Sellers and requests by Sellers for consent or other
action by Purchaser pursuant to this Section
5.2, and all responses of Purchaser
pursuant thereto, shall be made in writing to or by a Purchaser Consent
Representative.

     

    (d) Notwithstanding
anything to the contrary in Sections 5.2(b)(ii),
(viii) and
(ix), Sellers
may, without the consent of Purchaser, take the actions described on Schedule 5.2(d);
provided that any Liens created or Contracts entered into in connection
therewith are removed or terminated as of Closing without any cost or Liability
of Purchaser or adverse effect on the Purchased Assets.

     

    Section
5.3 Purchaser's Inspection
Right

     

    After the
Effective Date and prior to Closing, Purchaser, its Related Persons and its and
their agents and representatives shall have reasonable access, upon reasonable
prior notice, to the Site and, if requested, to the Books and Records, all for
purposes of inspection and review; provided, however, that (a) any
investigation shall be conducted in such manner as not to interfere unreasonably
with the operation of the Purchased Assets and with reasonable advance notice to
Sellers, (b) Purchaser shall require each Person conducting or participating in
any such investigation to comply with Sellers' reasonably adopted procedures
relating to safety and security, (c) Purchaser shall indemnify Sellers for any
damage to property or persons resulting from any such investigation that is the
result of the negligence or willful misconduct of Purchaser, its Related Person
or its or their agents or representatives and is not covered by insurance,
(d) the Sellers shall be entitled to have a representative present during
the course of any such investigation, (e) the Sellers shall not be required to
take any action that would constitute a waiver of the attorney-client privilege
and (f) Purchaser shall reimburse the Sellers for the reasonable out-of-pocket
costs pre-approved by Purchaser and demonstrated to Purchaser's reasonable
satisfaction that are incurred by the Sellers in providing such
assistance.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
5.4 Cooperation with Facility
Takeover and Transition of Operations

     

    Within
thirty (30) days after the Effective Date, Purchaser shall deliver to the
Sellers a list of its proposed representatives to the joint transition
team.  The Sellers will add its representatives to such team within
five (5) Business Days after receipt of Purchaser's list.  Such team
will be responsible for preparing as soon as reasonably practicable after the
Effective Date, and timely implementing, a transition plan which will identify
and describe substantially all of the various transition activities that the
Parties will cause to occur before and after the Closing and any other transfer
of control matters that any Party reasonably believes should be addressed in
such transition plan.  Purchaser and the Sellers shall use
commercially reasonable efforts to cause their representatives on such
transition team to cooperate in good faith and take all reasonable steps
necessary to develop a mutually acceptable transition plan no later than sixty
(60) days after the Effective Date.

     

    Section
5.5 Employee and Benefit
Matters

     

    (a) Within
seven (7) days of the date hereof, Sellers or their Affiliates shall provide
Purchaser with copies of the resumes, job applications or other relevant data
containing a summary of each Project Employee’s employment history with the
Sellers or their Affiliates.  Within twenty-one (21) days of the date
hereof, but effective as of the Closing Date, Purchaser or an Affiliate of
Purchaser, in its good faith discretion, shall offer employment (which shall be
contingent on the occurrence of the Closing) to any or all of the Project
Employees who are actively at work or absent due to a vacation or authorized
absence or due to sick leave of less than ten (10) working days.  Each
such offer of employment shall be consistent with the provisions of this Section 5.5 and shall
remain open for a period of at least ten (10) days.  For a period of
at least one (1) year beginning on the Closing Date and subject to the remaining
paragraphs of this Section 5.5 and an
individual's continued employment with Purchaser, Purchaser shall cause each
Transferred Employee to be provided with (i) compensation, including base pay
and annual incentive compensation opportunity (excluding equity compensation)
equivalent to that paid to similarly situated employees of the Purchaser and at
least ninety percent (90%) of such compensation provided to such employee by
Seller and its Affiliates immediately prior to the Closing, and (ii) benefits
(including severance benefits) on a basis substantially similar to those
provided to similarly situated employees of Purchaser.  If Sellers or
their Affiliates incur cash severance payment obligations under the Severance
Plan on or within sixty (60) days after Closing with respect to any Project
Employee(s) who do not receive offers of employment consistent with Section
5.5(a), then Purchaser will reimburse Sellers or their Affiliates (following
receipt of documentation substantiating such payments), for such cash severance
equal to fifty percent (50%) of the amount, if any, in excess of
$200,000.00.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Purchaser
shall cause each Transferred Employee and his or her eligible dependents
(including all such Transferred Employee's dependents covered immediately prior
to the Closing by a Seller Plan that is a group health plan) to be covered under
a group health plan maintained by Purchaser or an Affiliate of Purchaser that
(i) provides medical and dental benefits to the Transferred Employee and such
eligible dependents effective immediately upon the Closing and (ii) credits such
Transferred Employee, for the year during which such coverage under such group
health plan begins, with any deductibles and co-payments already incurred during
such year under a Seller Plan that is a group health plan.  Purchaser
shall cause each employee welfare benefit plan or program sponsored by Purchaser
or one of its Affiliates that a Transferred Employee may be eligible to
participate in on or after the Closing to waive any preexisting condition
exclusion (provided such Transferred Employee was covered by Seller’s group
health plan) with respect to participation and coverage requirements applicable
to such Transferred Employee.

     

    (c) Claims of
Transferred Employees and their eligible beneficiaries and dependents for
medical, dental, prescription drug, severance, life insurance and/or other
welfare benefits ("Welfare Benefits")
(other than disability benefits) that are incurred on or prior to the Closing
Date shall be the sole responsibility of the Seller Plans.  Claims of
Transferred Employees and their eligible beneficiaries and dependents for
Welfare Benefits (other than disability benefits) that are incurred after the
Closing Date shall be the sole responsibility of Purchaser.  For
purposes of the preceding provisions of this paragraph, a medical/dental claim
shall be considered incurred on the date when the medical/dental services are
rendered or medical/dental supplies are provided and not when the condition
arose or when the course of treatment began, provided, however, that claims
relating to a hospital confinement that commences on or prior to the Closing
Date but continues thereafter shall be treated as incurred prior to the Closing
Date.  A disability claim shall be treated as incurred on or prior to
the Closing Date if the injury or condition giving rise to the claim occurs on
or prior to the Closing Date; claims of individuals receiving long-term
disability benefits under a Seller Plan as of the Closing shall be the sole
responsibility of the Seller Plan.  Except as provided in the
preceding sentence, claims of Transferred Employees and their eligible
beneficiaries and dependents for short-term or long-term disability benefits
from and after the Closing, made on account of injuries or conditions giving
rise to such claims which occur after the Closing Date, shall be the sole
responsibility of Purchaser.  Seller shall be solely responsible for
claims relating to “COBRA” coverage attributable to “qualifying events”
occurring on or prior to the Closing Date with respect to any Project Employees
and their beneficiaries and dependants.

     

    (d) Purchaser
shall cause the employee benefit plans and programs maintained after the Closing
by Purchaser and the Affiliates of Purchaser to recognize each Transferred
Employee's years of service and level of seniority prior to the Closing with
Sellers and their Affiliates (including service with any other employer that was
recognized by Sellers or their Affiliates) for purposes of (i) terms of
employment, (ii) seniority, (iii) eligibility, vesting and benefit accrual under
all employee benefit plans (other than benefit accrual under a defined benefit
plan), and (iv) benefit determination under Purchaser's paid time-off and
vacation policies.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (e) Sellers
shall cause each Transferred Employee to be permitted to elect on the Closing
Date (or as soon thereafter as reasonably practicable) a direct rollover of his
or her account balance under a Sellers Savings Plan eligible to be rolled over
to a defined contribution plan designated by Purchaser (the "Purchaser Savings
Plan"), and Sellers shall cause the applicable Sellers Savings Plan to
deliver to the Purchaser Savings Plan as soon as reasonably practicable after
such date the promissory notes and other loan documentation, if any, of each
Transferred Employee who has elected such a direct rollover in accordance with
the procedures to be agreed to between Sellers and
Purchaser.  Purchaser and Sellers shall cooperate and take such
actions, if any, as are necessary to permit the continuation of loan repayments
by Transferred Employees to the Sellers Savings Plan by payroll deductions
during the ninety (90) day period beginning on the Closing Date; provided,
however, that if a Transferred Employee makes a direct rollover election as
described in this Section 5.5(e) within
such 90-day period, then the Seller Savings Plan shall continue to accept loan
repayments from such Transferred Employee by payroll deduction until the date of
such direct rollover.  Purchaser shall cause the Purchaser Savings
Plan to accept the direct rollover of electing Transferred Employees' benefits
in cash and, if applicable, promissory notes that are not accelerated from the
Seller Savings Plan.  From and after the date of such transfer, and to
the extent of the amount transferred, Purchaser shall cause the Purchaser
Savings Plan to assume the obligations of the Seller Savings Plan with respect
to benefits contributed to the account of the Transferred Employees under the
Seller Savings Plan, and the Seller Savings Plan shall cease to be responsible
therefore.  Purchaser and Sellers shall cooperate in making all
appropriate arrangements and filings, if any, in connection with the transfer
described in this paragraph.  Sellers represent, covenant and agree
with respect to the Seller Savings Plan, and Purchaser represents, covenants and
agrees with respect to the Purchaser Savings Plan, that, as of the date of the
transfer described in this paragraph, such plan will satisfy the requirements of
Sections 401(a), (k), and (m) of the Code and will have received, or a pending
application has been timely filed for, a favorable determination letter from the
IRS regarding such qualified status and covering amendments required to have
been adopted prior to the expiration of the applicable remedial amendment
period.

     

    (f) Sellers
shall provide each Transferred Employee with payment, within thirty (30) days
following the Closing Date, of any annual bonus award that such Transferred
Employee would have earned under Sellers’ or their Affiliates’ bonus program for
the fiscal year in which the Closing Date occurs, assuming performance at
“target” levels was achieved, but prorated to reflect the portion of the year
actually worked for Sellers.  Except to the extent required by
applicable Law, Sellers and their Affiliates will not pay Transferred Employees
their accrued and unused current, annual vacation, and Purchaser or an Affiliate
of Purchaser shall provide, without duplication of benefits, all such
Transferred Employees with paid vacation time rather than cash in lieu of
vacation time for all such accrued and unused current, annual vacation through
the Closing Date.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g) If,
within the one-year period beginning on the Closing Date, (i) a Transferred
Employee voluntarily terminates his or her employment with Purchaser and its
Affiliates within thirty (30) days after the date upon which he or she is
notified that the principal place of his or her employment is changing to a
location that is fifty (50) miles or more from the location of such employee's
principal place of employment immediately prior to the Closing Date, or (ii) the
employment of a Transferred Employee is terminated by Purchaser or an Affiliate
of Purchaser for a reason other than cause (as that term is defined in the
Severance Plan as of the Closing, but based on the terms of the plan as in
effect on the Effective Date), then, in any such case, Purchaser shall provide
such Transferred Employee with severance benefits (conditioned upon the
Transferred Employee's timely execution of a full waiver and release of claims)
at least equal to the severance benefits which such Transferred Employee would
have received under the Severance Plan had the employment of such Transferred
Employee been terminated under circumstances entitling him or her to benefits
under such plan.  Such severance benefits shall be determined based on
the terms of the Severance Plan in effect on the Effective Date, but Purchaser
shall take into account such Transferred Employee's aggregate service with
Purchaser and its Affiliates and his or her pre-Closing Date service recognized
pursuant to this Section
5.5.

     

    (h) Notwithstanding
anything in this Section 5.5 to the contrary, to the extent any Transferred
Employees are covered by a collective bargaining agreement on or after the
Closing, the terms of such collective bargaining agreement shall
govern.

     

    (i) The
provisions of this Section 5.5 are
solely for the benefit of the respective parties to this Agreement and nothing
in this Section
5.5, express or implied, shall confer upon any Transferred Employees, or
legal representative or beneficiary thereof, any rights or remedies, including
any right to employment or continued employment for any specified period, or
compensation or benefits of any nature or kind whatsoever under this
Agreement.  Nothing in this Section 5.5, express
or implied, shall be construed to prevent Purchaser from terminating or
modifying to any extent or in any respect any benefit plan that Purchaser may
establish or maintain.

     

    Section
5.6 Risk of
Loss

     

    .In the
event of loss, damage or other casualty to the Purchased Assets, Sellers shall
repair prior to the Closing Date to the previous condition of the Purchased
Assets any such damage, loss or casualty to the Purchased Assets, or breakage of
any component or components of the Purchased Assets up to an aggregate amount up
to $20,000,000.  In the event the cost of repairs exceeds $20,000,000,
Purchaser shall have the right to terminate this Agreement upon notice to
Sellers, which right must be exercised within fifteen (15) Business Days after
notice from Sellers estimating the cost of repairs; provided, that if
Purchaser does not so terminate this Agreement, the Purchase Price shall be
reduced by $20,000,000.  Sellers shall promptly notify Purchaser of
any loss, damage or casualty to the Purchased Assets.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
5.7 Interim
Reports

     

    In
connection with the continuing operation of the Facility, the Sellers shall use
commercially reasonable endeavors between the Effective Date and Closing to
provide the Purchaser copies of operational reports regularly prepared by
Sellers.

     

    Section
5.8 Update of
Schedules

     

    Sellers and Purchaser each shall use good faith efforts to notify the
other if it obtains Sellers’ Knowledge or Purchaser’s Knowledge, as the case may
be, at any time before the Closing Date that a Sellers' Disclosure Schedule
previously delivered by Sellers was inaccurate or incomplete when delivered or
has become inaccurate or incomplete as a result of subsequent events and shall
provide related information and documents.  If such events arise after
the Effective Date and are expressly permitted to occur under Section
5.2(b), Sellers shall promptly deliver to
Purchaser no later than ten (10) Business Days after such discovery by Sellers
an amendment or supplement to such schedule, which amendment or supplement shall
be given effect for the purposes of determining the fulfillment of the condition
precedent set forth in Section
6.1.1 or determining liability as set
forth in Section
8.1(a) and Section
8.1(b) and the
Sellers' Disclosure Schedule shall be read for all purposes as so amended or
supplemented.

     

    Section
5.9 No Solicitation of Competing
Transaction

     

    After the
Effective Date and prior to Closing, Sellers shall not, directly or indirectly,
solicit, initiate or participate in discussions or negotiations with any Person
or group (other than Purchaser, any of its Affiliates or representatives)
concerning any Acquisition Proposal.  The Sellers shall not, and shall
cause each Affiliate not to, enter into any agreement with respect to any
Acquisition Proposal.  The Sellers shall immediately notify, and shall
cause their Affiliates to notify, Purchaser of any unsolicited proposal or
inquiry, or amendment to any existing proposal or inquiry, received by Sellers,
and the Sellers shall immediately communicate to Purchaser, or cause their
Affiliates to communicate to Purchaser, the terms of any such unsolicited
proposal or inquiry, or amendment to any existing proposal or inquiry, which any
of them may receive in connection with such unsolicited proposal or inquiry or
amendment to such existing proposal or inquiry.

     

    Section
5.10 Use of Certain
Names

     

    Within
forty-five (45) days following the Closing, Purchaser shall cause the Facility
and the Purchased Assets to cease using the word "Reliant" and any word or
expression similar thereto or constituting an abbreviation or extension thereof
(the "Seller
Marks"), including eliminating the Seller Marks from all the Purchased
Assets and disposing of any unused stationery and literature of the Facility and
the Purchased Assets bearing the Seller Marks; and thereafter, Purchaser shall
not, and shall cause the Facility and the Purchased Assets not to use the Seller
Marks or any logos, trademarks, trade names, patents or other Intellectual
Property rights belonging to Seller or any of its Affiliates, and Purchaser
acknowledges that it, its Affiliates, the Facility and the Purchased Assets have
no rights whatsoever to use such Intellectual Property.

     

    Without
limiting the foregoing:

     

    (a) Within
fifteen (15) days after the Closing Date, Purchaser shall cause the Facility to
change its name to a name that does not contain any of the Seller
Marks.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) Within
thirty (30) days after the Closing Date, Purchaser shall provide notice to all
applicable Governmental Authorities and all counterparties to the Assigned
Facility Agreements regarding the sale of the Purchased Assets to Purchaser and
the new addresses for notice purposes.  Purchaser shall deliver to
Sellers a copy of such notices.

     

    Section
5.11 Support
Obligations.

     

    (a) Prior to
Closing, Purchaser shall use commercially reasonable efforts to effect the full
and unconditional release, effective as of the Closing, of the Sellers and their
Affiliates from the credit support obligations listed on Section
5.11(a) of
Sellers' Disclosure Schedule (collectively, the "Support
Obligations"), including by offering within thirty (30) days following
the Effective Date replacement bonds, guaranties, letters of credit, cash
collateral and/or escrow arrangements, as needed, to effect the replacement of
such Support Obligations.

     

    (b) If Purchaser is not successful, following the use of commercially
reasonable efforts, in obtaining the complete and unconditional release of
Sellers and their Affiliates from any Support Obligations as of Closing (each
such Support Obligation, until such time as such Support Obligation is released
in accordance with Section
5.11(b)(i), a "Continuing Support
Obligation"), then Sellers shall have the right to waive the condition to
Closing set forth in Section
6.2.7 and:

     

    (i) from and
after the Closing, Purchaser shall continue to use commercially reasonable
efforts to obtain promptly the full and unconditional release of Sellers and
their Affiliates from each Continuing Support Obligation;

     

    (ii) Purchaser
shall indemnify Sellers and their Affiliates for any liabilities, losses, costs
or expenses incurred by Sellers or their Affiliates in connection with each
Continuing Support Obligation; and

     

    (iii) Purchaser
shall not, and shall cause its Affiliates not to, effect any amendments or
modifications or any other changes to the obligations to which any of the
Continuing Support Obligations relate, or to otherwise take any action that
could increase, extend or accelerate the liability of Sellers or their
Affiliates under any Continuing Support Obligation, without Sellers' prior
written consent not to be unreasonably withheld.

     

    (c) If any
Continuing Support Obligations are outstanding after Closing, Purchaser shall
deliver to Sellers at the Closing and maintain at all times thereafter an
undertaking to perform Purchaser's obligations hereunder with respect to the
Continuing Support Obligations.

     

    Section
5.12 Termination of Certain
Services and Contracts

     

    Notwithstanding
anything in this Agreement to the contrary, during the period between the date
hereof and Closing Sellers may take such actions as may be necessary to
terminate or sever as to the Facility (with appropriate mutual releases) upon
the Closing any services provided by Sellers or any of their Affiliates, joint
Tax services and joint legal services.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                
ARTICLE
VI                                

     

    CONDITIONS
TO CLOSING

     

    Section
6.1 Purchaser's Conditions
Precedent

     

    .  The obligations of Purchaser hereunder to execute or
deliver the items it is required to deliver pursuant to Section
2.5.1 are
subject to the fulfillment to the reasonable satisfaction of Purchaser, at or
before the Closing, of each of the following conditions (all or any of which may
be waived in whole or in part by Purchaser in its sole
discretion):

     

    Section
6.1.1 Representations and
Warranties.  Each of the representations and warranties made by
Sellers in this Agreement and qualified by materiality shall be true and correct
on and as of the Closing Date as though made on and as of the Closing Date,
except to the extent such representations and warranties expressly relate to an
earlier date (in which case as of such earlier date).  Each of the
representations and warranties made by Sellers in this Agreement and not
qualified by materiality shall be true and correct on and as of the Closing Date
as though made on and as of the Closing Date, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case as of such earlier date), except for failures to be true and correct that
would not reasonably be expected to have, in the aggregate, a Material Adverse
Effect.

     

    Section
6.1.2 Performance.  Sellers
shall have performed and complied in all material respects with the agreements,
covenants and obligations required by this Agreement to be so performed or
complied with by Sellers at or before the Closing.

     

    Section
6.1.3 Law.  There
shall not be in effect on the Closing Date any Law restraining, enjoining or
otherwise prohibiting or making illegal the consummation of the transactions
contemplated by this Agreement.

     

    Section
6.1.4 PUCN Approval; FERC
Approval; HSR Act Filing.  The PUCN Approval, the FERC
Approval, and the Amended TSA FERC Order shall have been duly obtained, made or
given and shall be in full force and effect and all terminations or expirations
of the waiting period under the HSR Act necessary for the consummation of the
transactions contemplated by this Agreement shall have occurred; provided,
however, that if a party of record files, pursuant to NRS 703.373, a petition
for judicial review of an order issued by the PUCN pursuant to NAC 704.9518
approving an amendment to Purchaser's 3-year action plan, which order approves,
without any conditions or terms that adversely and materially affect Purchaser’s
preferred supply side plan, Purchaser's acquisition of the Purchased Assets on
terms consistent with this Agreement, but does not obtain a stay of such order
pursuant to NRS 703.374(1), then this Section 6.1.4 shall
be deemed to be satisfied with respect to the PUCN Approval.

     

    Section
6.1.5 Requested
Consents.  The Requested Consents shall have been duly
obtained, made or given and shall be in full force and
effect.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
6.1.6 Deliveries.  Sellers
shall have executed and delivered to Purchaser, or shall be standing ready to
execute and deliver to Purchaser at the Closing, the items set forth in Section
2.5.2 of this
Agreement.

     

    Section
6.1.7 Material Adverse
Effect.  No Material Adverse Effect shall have occurred, which
has not been cured by Sellers prior to the Closing Date to Purchaser's
reasonable satisfaction.

     

    Section
6.1.8 Title Insurance, Survey and
Title Insurance Policy.  Purchaser shall have received the
Title Insurance Commitment and the Survey, and the Title Company shall be in a
position, upon Closing, to issue the Title Insurance Policy as contemplated by
Section 5.1(f),
subject only to the Permitted Encumbrances (including those Objectionable Title
and Survey Matters that are deemed to be Permitted Encumbrances as provided in
Section 5.1(f),
the Permitted Liens, and the pre-printed exceptions set out in the Title
Insurance Commitment.

     

    Section
6.1.9 Transferred
Permits.  Sellers shall have taken all actions necessary to be
taken by Sellers to properly transfer to Purchaser their interest in the
Transferred Permits and the Transferred Permits required to be transferred as of
Closing or other Permits required to be issued to Purchaser as of Closing in
each case under applicable Law shall have been so transferred or issued;
provided that Purchaser shall have taken all actions necessary to be taken by
Purchaser to properly transfer to Purchaser Seller’s interest in such
Transferred Permits or to have such other Permits issued.

     

    Section
6.2 Sellers' Conditions
Precedent

     

    The obligations of Sellers hereunder to execute or deliver the items
they are required to deliver pursuant to Section
2.5.2 of this
Agreement are subject to the fulfillment, to the reasonable satisfaction of
Sellers at or before the Closing, of each of the following conditions (all or
any of which may be waived in whole or in part by Sellers in their sole
discretion):

     

    Section
6.2.1 Representations and
Warranties.  Each of the representations and warranties made by
Purchaser in this Agreement and qualified by materiality shall be true and
correct on and as of the Closing Date as though made on and as of the Closing
Date, except to the extent such representations and warranties expressly relate
to an earlier date (in which case as of such earlier date).  Each of
the representations and warranties made by Purchaser in this Agreement and not
qualified by materiality shall be true and correct on and as of the Closing Date
as though made on and as of the Closing Date, except to the extent such
representations and warranties expressly relate to an earlier date (in which
case as of such earlier date), except for failures to be true and correct that
would not reasonably be expected to have, in the aggregate, a material adverse
effect on Purchaser's ability to perform its obligations
hereunder.

     

    Section
6.2.2 Performance.  Purchaser
shall have performed and complied in all material respects with the agreements,
covenants and obligations required by this Agreement to be so performed or
complied with by Purchaser at or before the Closing.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
6.2.3 Law.  There
shall not be in effect on the Closing Date any Law restraining, enjoining or
otherwise prohibiting or making illegal the consummation of the transactions
contemplated by this Agreement.

     

    Section
6.2.4 PUCN Approval; FERC
Approval; HSR Act Filing.  The PUCN Approval, the FERC
Approval, and the Amended TSA FERC Order shall have been duly obtained, made or
given and shall be in full force and effect, and all terminations or expirations
of the waiting period imposed under the HSR Act necessary for the consummation
of the transactions contemplated by this Agreement shall have
occurred.

     

    Section
6.2.5 Requested
Consents.  The Requested Consents shall have been duly
obtained, made or given and shall be in full force and
effect.

     

    Section
6.2.6 Deliveries.  Purchaser
shall have executed and delivered to Sellers, or shall be standing ready to
execute and deliver to Sellers at the Closing, the items set forth in Section
2.5.1 of this Agreement and
shall be standing ready to pay the Estimated Purchase Price.

     

    Section
6.2.7 Release of Support
Obligations.  Sellers shall have received the complete and
unconditional release of Sellers and its Affiliates from the Support
Obligations.

     

                                     
ARTICLE
VII                                

     

    TERMINATION

     

    Section
7.1 Termination Prior to
Closing

     

    This
Agreement may be terminated, and the transactions contemplated hereby may be
abandoned:

     

    (a) at any
time before the Closing, by Sellers or Purchaser upon notice to the other Party,
in the event that any non-appealable Law becomes effective restraining,
enjoining or otherwise prohibiting or making illegal the consummation of the
transactions contemplated by this Agreement;

     

    (b) at any
time before Closing as provided in Section 5.1(f) or
Section 5.6;

     

    (c) at any
time before the Closing, by Sellers or Purchaser upon notice to the other Party,
in the event (i) of a breach hereof by the non-terminating Party which
gives rise to (A) a Material Adverse Effect or (B) a material adverse effect on
(1) the ability of Purchaser to perform its obligations under this Agreement or
(2) the validity or enforceability of the rights and remedies of any Seller
under this Agreement or under any of the other Transaction Documents if, in the
case of both clauses (A) and (B), the non-terminating Party fails to cure such
breach within thirty (30) days following notification thereof by the terminating
Party; provided, however, that if, at
the end of such 30-day period, the non-terminating Party is endeavoring in good
faith, and proceeding diligently, to cure such breach, the non-terminating Party
shall have an additional thirty (30) days in which to effect such cure; or
(ii) that any condition to such Party's obligations under this Agreement
(other than the payment of money to the other Party) becomes impossible or
impracticable to satisfy with the use of commercially reasonable efforts if such
impossibility or impracticability is not caused by a breach hereof by such
Party; provided, however, that if it
is reasonably possible that the circumstances giving rise to the impossibility
or impracticality may be removed prior to the expiration of the time period
provided in this Section
7.1(c), then such notification may
not be given until such time as the removal of such circumstances is no longer
reasonably possible within such time period; or

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d) At any
time following December 31, 2008, by Sellers or Purchaser upon notice to the
other Party if the Closing shall not have occurred on or before such date and
such failure to consummate is not caused by a breach of this Agreement by the
terminating Party.

     

    Section
7.2 Effect of Termination or
Breach Prior to Closing

     

    (a) If this
Agreement is validly terminated pursuant to Section 7.1(a), Section 7.1(b), Section 7.1(c)(ii) or Section 7.1(d), there shall
be no liability or obligation on the part of Sellers or Purchaser (or any of
their respective Related Persons), except that the provisions of Section 3.19
(Brokers – Sellers), Section 4.7 (Brokers –
Purchaser) Section 5.3(c)
(Purchaser's Inspection Rights), Article XI (Dispute
Resolution), Article
XII
(Limited Remedies and Damages), Section 13.2 (Notices), Section 13.3 (Payments),
Section 13.4 (Entire
Agreement), Section 13.5 (Expenses),
Section 13.6 (Public
Announcements), Section 13.7
(Confidentiality), Section 13.10 (No
Construction Against Drafting Party), Section 13.11 (No Third Party
Beneficiary), Section
13.12
(Headings), Section
13.13
(Invalid Provisions), Section 13.14 (Governing
Law), Section
13.15
(No Assignment; Binding Effect), and this Section 7.2 shall continue to
apply following any such termination.

     

    (b) If this
Agreement is validly terminated pursuant to Section
7.1(c)(i), by Purchaser or Sellers as a
result of a breach by the non-terminating Party, then subject to Section
12.2 and notwithstanding any
other provision of this Agreement to the contrary, the terminating Party shall
be entitled to all rights and remedies available to it with respect to such
breach.

     

                                    
ARTICLE
VIII                                

     

    INDEMNIFICATION

     

    Section
8.1 Indemnification by
Sellers

     

    Subject to the limitations set forth in Section
8.4 (Limitations of Liability),
Section
9.4 (Sellers' Tax Indemnification),
Section
10.1 (Survival) and Article XII (Limited Remedies
and Damages) of this Agreement, if the Closing occurs, Sellers agree to
indemnify and hold Purchaser and its Related Persons (each, a "Purchaser Indemnified
Party"), harmless from and against (and to reimburse each Purchaser
Indemnified Party as the same are incurred for) any and all Losses incurred by
any Purchaser Indemnified Party resulting from any of the
following:

     

    (a) any
breach of a representation or warranty made by Sellers in this
Agreement;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b) the
breach by Sellers of, or default in the performance by Sellers of, any covenant,
agreement or obligation to be performed by Sellers pursuant to this Agreement or
any of the other Transaction Documents; or

     

    (c) the
Excluded Assets or the Excluded Liabilities, provided, that any
Purchaser Indemnified Party shall have the right at such party's sole discretion
to elect to pursue recovery for any such Losses under either Section 8.1(a) (with
respect to Section
3.16 (Environmental Matters)) or Section 8.1(c) (with
respect to Section
2.1.4(a)(i)-(iii) inclusive (Excluded Liabilities)) hereof regardless of
whether remedies for such Losses may also be available pursuant to any provision
of this Agreement other than the one so elected by Purchaser Indemnified
Party.

     

    Section
8.2 Indemnification by
Purchaser

     

    .  Subject to the limitations set forth in Section
8.4 (Limitations of Liability),
Section
9.5 (Purchaser's Tax
Indemnification), Section
10.1 (Survival)
and Article XII
(Limited Remedies and Damages) of this Agreement, if the Closing occurs,
Purchaser hereby agrees to indemnify and hold Sellers and their Related Persons
(each, a "Sellers'
Indemnified Party"), harmless from and against (and to reimburse each
Sellers' Indemnified Party as the same are incurred for) any and all Losses
incurred by any Sellers' Indemnified Party resulting from any of the
following:

     

    (a) any
breach of a representation or warranty made by Purchaser in this
Agreement;

     

    (b) the
breach by Purchaser of, or default in the performance by Purchaser of, any
covenant, agreement or obligation to be performed by Purchaser pursuant to this
Agreement or any of the other agreements or instruments to which Purchaser is a
party and which is being delivered in connection with this Agreement;
or

     

    (c) the
Assumed Liabilities.

     

    Section
8.3 Method of Asserting
Claims

     

    Section
8.3.1 Notification of
Claims.  If any Purchaser Indemnified Party or Sellers'
Indemnified Party (each, an "Indemnified Party")
asserts that a Party has become obligated to the Indemnified Party pursuant to
this Agreement other than pursuant to Article IX (as
so obligated, an "Indemnifying Party"),
or if any suit, action, investigation, claim or proceeding is begun, made or
instituted as a result of which the Indemnifying Party may become obligated to
the Indemnified Party hereunder, the Indemnified Party shall notify the
Indemnifying Party promptly and shall cooperate with the Indemnifying Party, at
the Indemnifying Party's expense, to the extent reasonably necessary for the
resolution of such claim or in the defense of such suit, action or proceeding,
including making available any information, documents and things in the
possession of the Indemnified Party.  Notwithstanding the foregoing
notice requirement, the right to indemnification hereunder shall not be affected
by any failure to give, or delay in giving, notice, unless, and only to the
extent that, the rights and remedies of the Indemnifying Party shall have been
prejudiced as a result of such failure or delay.  Any assertion by an
Indemnified Party that an Indemnifying Party is liable to the Indemnified Party
for indemnification pursuant to Section 8.1 or Section 8.2 above must be
delivered to the Indemnifying Party prior to the expiration date (if applicable)
of the representation, warranty, covenant or agreement giving rise to such
indemnification obligation, as provided in Section
10.1.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
        Section
8.3.2 Defense of
Claims.  In fulfilling its obligations under this Section
8.3, after the Indemnifying Party
has provided each Indemnified Party with a written notice of its agreement to
indemnify each Indemnified Party under this Section 8.3, as
between such Indemnified Party and the Indemnifying Party, the Indemnifying
Party shall have the right to investigate, defend, settle or otherwise handle,
with the aforesaid cooperation, any claim, suit, action or proceeding brought by
a third party in such manner as the Indemnifying Party may reasonably deem
appropriate; provided, that
(a)  the Indemnifying Party will not consent to any settlement or entry of
judgment imposing any obligations on any Indemnified Parties, other than
financial obligations for which such Person will be indemnified hereunder,
unless such Person has consented in writing to such settlement or judgment
(which consent may be given or withheld in its sole discretion), and
(b) the Indemnifying Party will not consent to any settlement or entry of
judgment unless, in connection therewith, the Indemnifying Party obtains a full
and unconditional release of the Indemnified Party from all liability with
respect to such suit, action, investigation, claim or
proceeding.  Notwithstanding the Indemnifying Party's election to
assume the defense or investigation of such claim, action or proceeding, the
Indemnified Party shall have the right to employ separate counsel (at its own
cost except as provided below) and to reasonably participate in the defense or
investigation of such claim, action or proceeding, which participation shall be
at the expense of the Indemnifying Party, (a) if on the advice of counsel to the
Indemnified Party use of counsel of the Indemnifying Party's choice could
reasonably be expected to give rise to a material conflict of interest, (b) if
the Indemnifying Party shall authorize the Indemnified Party to employ separate
counsel at the Indemnifying Party's expense, or (c) if separate counsel is
retained to represent the Indemnifying Party in any action which seeks relief
other than monetary damages against the Indemnified Party to the extent such
representation is related to such relief.

    

     

    Section
8.3.3 Real Property Title
Claims.  Notwithstanding anything to the contrary contained in
this Agreement, Purchaser shall seek recourse and make claims solely from and
against the title company issuing the Title Insurance Policy with respect to
claims regarding title to the Real Property or Real Property
Interests.  For the avoidance of doubt, the preceding sentence shall
not affect any claims of Purchaser pursuant to Section 8.1(a) relating to
Article III.

     

    Section
8.4 Limitations of
Liability.  

     

    Section
8.4.1 Claim
Threshold.  Notwithstanding anything to the contrary contained
in this Agreement, (a) Sellers shall have no liability for their obligations
under Section
8.1 until the aggregate amount of all
Losses incurred by the Purchaser Indemnified Parties equals or exceeds
$3,750,000 (the "Claim
Threshold"), in which event Sellers shall be liable for all such Losses
in excess of the Claim Threshold; it being understood and agreed that the Claim
Threshold shall not apply in the event of fraud or to claims for indemnification
relating to Section
2.1.1 (Purchased Property), Excluded Liabilities under Section
2.1.4(a)(iv) and Section
2.1.4(a)(v), Excluded Assets, Section
2.2 (Purchase Price), Section
3.1 (Existence), Section
3.2 (Authority), Section
3.3 (Binding Agreement), Section 3.5
(Approvals and Filings), Section 3.9 (Title to
Personal Property), Sections 3.10(a),
(b) and (c) (Real Property),
the last sentence of Section 3.13(b)
(Contracts), the last sentence of Section 3.20(a)
(Intellectual Property), Section 3.19
(Brokers) or Article
IX (Tax Matters), in each case for which Sellers shall be responsible
from dollar one, whether or not the Claim Threshold has been reached, and (b)
Purchaser shall have no liability for its obligations under Section 8.2 until the
aggregate amount of all Losses incurred by the Sellers' Indemnified Parties
equals or exceeds the Claim Threshold, in which event Purchaser shall be liable
for all such Losses in excess of the Claim Threshold; it being understood and
agreed that the foregoing Claim Threshold shall not apply in the event of fraud
or to claims for indemnification relating to Assumed Liabilities, Section 2.2 (Purchase
Price), Section
4.1 (Existence), Section 4.2
(Authority), Section
4.3 (Binding Agreement), Section 4.5 (Approvals and Filings), Section 4.7 (Brokers)
or Article IX
(Tax Matters), in each case for which Purchaser shall be responsible from dollar
one, whether or not the Claim Threshold has been reached.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
8.4.2 Cap
Amount.  In no event shall (a) Sellers' aggregate liability
arising out of their indemnification obligations under Section
8.1 or otherwise in any respect of or
relating to this Agreement, exceed 30% of the Purchase Price; it being
understood and agreed that the foregoing limitation shall not apply in the event
of fraud or to claims for indemnification relating to Section
2.1.1 (Purchased Property), Excluded Liabilities under Section
2.1.4(a)(iv) and Section
2.1.4(a)(v), Excluded Assets, Section
2.2 (Purchase Price), Section
3.1 (Existence), Section
3.2 (Authority), Section
3.3 (Binding Agreement), Section
3.9 (Title to Personal Property), Sections
3.10(a), (b) and
(c)
(Real Property), the last sentence of Section
3.13(b) (Contracts), the last sentence of Section
3.20(a) (Intellectual Property), Section
3.19 (Brokers) or Article
IX (Tax Matters), and any such excluded indemnifiable Losses shall not be
deemed to count against or otherwise reduce such limitation on Sellers'
aggregate liability; and (b) Purchaser's aggregate liability arising out of its
indemnification obligations under Section
8.2 exceed 30% of the Purchase Price; it being understood and agreed that
the foregoing limitation shall not apply in the event of fraud or to claims for
indemnification relating to Assumed Liabilities or arising under any of Section
2.2 (Purchase Price), Section
4.1 (Existence), Section
4.2 (Authority), Section
4.3 (Binding Agreement), Section
4.7 (Brokers) or Article
IX (Tax Matters), and any such excluded indemnifiable Losses shall not be
deemed to count against or otherwise reduce such limitation on Purchaser's
aggregate liability.  For the avoidance of doubt, Sellers' aggregate
obligations under Section
5.6 shall not exceed
$20,000,000.  Notwithstanding any of the foregoing, neither Sellers'
nor Purchaser's aggregate liability under this Agreement shall exceed the
Purchase Price (excluding Purchaser’s obligation to pay the Purchase
Price).

     

    Section
8.4.3 Environmental
Matters.  Sellers and Purchaser agree that any remedial action,
Remediation, correction of noncompliance, or other action required by this
Agreement to be undertaken or for which indemnification is provided in this
Article VIII,
(i) shall be the most commercially reasonable method under the
circumstances and based upon the understanding that the Facility and the Real
Property are and will continue to be used for industrial purposes, (ii) shall
not exceed the least stringent requirements of any applicable Environmental Law
or any clean-up standards set forth, established, published, proposed or
promulgated under, pursuant to or by an Environmental Law or Governmental
Authority having jurisdiction over such remedial action, correction of
noncompliance, or action, in each case as in effect on the date of such remedial
action, correction of noncompliance, or other action or any requirement or order
of any Governmental Authority having jurisdiction over such remedial action,
correction of noncompliance, or action, and (iii) shall be conducted in
compliance with all Environmental Laws.  To the extent necessary to
achieve the purposes set forth in the preceding sentence, Purchaser shall agree
to a deed restriction or other institutional controls on the Facility or the
Real Property that is subject to such action, provided, that such
deed restriction or other institutional controls shall not restrict or limit the
industrial activities currently being performed at the Facility or the Real
Property.  Purchaser agrees that it shall, in good faith, seek to
enter, when necessary, into an agreement with the Governmental Authority having
jurisdiction over the remedial action, correction of noncompliance or other
action, to allow Purchaser to use the most commercially reasonable method and
least stringent standard in connection with remedial action, correction of
noncompliance, or other action under such circumstances and
use.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
8.5 Indemnification in Case of
Strict Liability or Indemnitee Negligence

     

    .  THE INDEMNIFICATION PROVISIONS IN ARTICLE
V, THIS ARTICLE
VIII AND ARTICLE
IX SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE
LIABILITY IS BASED ON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LAWS (INCLUDING
ANY PAST, PRESENT OR FUTURE ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT,
OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER
LAW), AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM
INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, JOINT, CONCURRENT,
CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR
THE SOLE, JOINT, OR CONCURRENT STRICT LIABILITY IMPOSED ON THE PERSON SEEKING
INDEMNIFICATION.

     

                                
ARTICLE
IX                                

     

    TAX
MATTERS

     

    Section
9.1 Representations and
Warranties

     

    Sellers represent and warrant to Purchaser, except as set forth in
Section
9.1 of Sellers'
Disclosure Schedule that:

     

    (a) (i) REAM
and REWG have timely filed or will timely file when due with the proper Taxing
Authority all Tax Returns that are required to be filed on or before the Closing
Date (including all Tax Returns with respect to the Purchased Assets) and have
timely paid or will timely pay in full all Taxes (whether or not due on such Tax
Returns) required to be paid by REAM and REWG (including all Taxes with respect
to the Purchased Assets except for property taxes that are the responsibility of
Purchaser pursuant to Section
9.3); and (ii) such Tax Returns were
prepared or will be prepared in the manner required by applicable Laws and were
or will be true and complete in all material respects at the time of
filing.  With respect to the Purchased Assets, neither REAM nor
REWG has received any notice that any Taxes relating to any period prior to
Closing are owing or delinquent that have not been paid.

     

    (b) True and
complete copies of all sales and use and property Tax Returns, relating to the
Purchased Assets, and copies of all material written communications to or from
any Taxing Authority relating to the Purchased Assets, for taxable years from
2004 through 2007 for sales and use Taxes and from 2004 through 2007 for
property Taxes have been made available to Purchaser for
inspection.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c) Since the
date of its inception, REWG has been treated as a disregarded entity for United
States federal income Tax purposes.  Effective July 1, 2007, REAM
elected to be treated as a disregarded entity for United States federal income
Tax purposes and has been treated as a disregarded entity since its
election.

     

    (d) Neither
REAM nor REWG has extended or waived the application of any statute of
limitations of any jurisdiction regarding the assessment or collection of any
Tax with respect to the Purchased Assets.

     

    (e) There are
no audits, claims, assessments, levies, administrative or judicial proceedings
pending, or to Sellers' Knowledge, threatened, proposed or contemplated with
respect to the Purchased Assets by any Taxing Authority.

     

    (f) Each of
REAM and REWG, with respect to the Purchased Assets, has withheld and paid all
Taxes required to have been withheld and paid in connection with amounts paid or
owing to any employee, independent contractor, creditor, member or other third
party.

     

    (g) Neither
REAM nor REWG, with respect to the Purchased Assets, is a party to any joint
venture, partnership or other arrangement or contract which is or has been
qualified as, and treated as, a partnership for United States federal and state
income Tax purposes.

     

    (h) No claim
has ever been made by a Taxing Authority in a jurisdiction where a Tax Return is
not filed by, or with respect to, the Sellers or the Purchased Assets, that
either the Sellers (with respect to the Purchased Assets) or any of the
Purchased Assets is or may be subject to Tax in that
jurisdiction.

     

    (i) None of
the Purchased Assets (i) has been depreciated under the "alternative
depreciation system" within the meaning of Section 168(g)(2) of the Code or (ii)
has been treated as (A) subject to the provisions of Section 168(f) of the Code
or (B) subject to a tax benefit transfer lease subject to the provisions of
former Section 168(f)(8) of the Code.

     

    (j) No Sales
Taxes will be due in connection with the sale of the Purchased Assets by Sellers
pursuant to this Agreement (including any Sales Taxes due as a result of the
Master Equipment Lease, whether as a result of its cancellation, termination,
expiration or otherwise) other the Sales Taxes that are included in the Purchase
Price as provided in Section
2.2.1.

     

    Section
9.2 Transfer
Taxes

     

    The Tax
on transfers of real property under chapter 375 of the Nevada Revenue and
Taxation Code ("Real
Property Transfer Taxes"), if any, shall be borne fifty percent (50%) by
Purchaser and fifty percent (50%) by Sellers.  All applicable Nevada
sales and use taxes arising out of or in connection with the sale of the
Purchased Assets by Sellers pursuant to this Agreement ("Sales Taxes") are
included in the Purchase Price in accordance with Nevada Administrative Code
Section 372.760.5 and as provided in Section 2.2.1 of this
Agreement, and Sellers shall remit such Sales Tax included in the Purchase Price
to the relevant Taxing Authority.  Sellers shall file all necessary
documentation and Tax Returns with respect to the Sales Taxes and the Real
Property Transfer Taxes (collectively, the "Transfer Taxes") and
cause such Taxes, if any, to be paid to the relevant Taxing Authorities on a
timely basis.  The Parties shall cooperate to comply with all Tax
Return requirements for any and all Transfer Taxes and shall provide such
documentation and take such other reasonable actions as may be necessary to
minimize the amount of any Transfer Taxes.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
9.3 Property
Taxes

     

    Real and
personal property ad valorem taxes with respect to the Purchased Assets ("Property Taxes") for
the taxable period that includes the Closing Date shall be prorated on a daily
basis to the Closing Date.  Sellers shall be liable only for the
portion of such Property Taxes attributable to the portion of such taxable
period ending on the Closing Date.  Following the Closing, Sellers and
Purchaser shall cooperate and consult with each other with respect to the
determination of such Property Taxes and Sellers shall have the right to
participate (at their own expense) in any proceedings or disputes with the
applicable Taxing Authority concerning the determination of the amount of such
Property Taxes (including the determination of the value of the property with
respect to which such Property Taxes are assessed).

     

    Section
9.4 Sellers' Tax
Indemnification

     

    Sellers shall indemnify and hold harmless Purchaser from and against (a)
any and all Seller Income Taxes, (b) any and all Taxes (other than Seller Income
Taxes) imposed on or with respect to the Purchased Assets or any of the Sellers
attributable to any Pre-Closing Tax Period ("Pre-Closing Taxes"),
(c) any and all Transfer Taxes (including any Sales Taxes) for which Sellers are
responsible pursuant to Section
9.2 of this Agreement, and (d) any
Taxes arising from a breach by Sellers of their representations, warranties and
covenants in this Article
IX.  For purposes of determining the amount of Taxes
attributable to the period deemed to end on the Closing Date for an Overlap
Period:  (y) in the case of Taxes imposed on a periodic basis, such
amount shall be equal to the product of such Taxes for the entire period (or, in
the case of such Taxes determined on an arrears basis, the amount of such Taxes
for the immediately preceding period), multiplied by a fraction the numerator of
which is the number of days in the Pre-Closing Tax Period and the denominator of
which is the number of days in the entire taxable period; and (z) in the case of
all other Taxes, shall be the amount of such Taxes that would be payable if the
taxable year ended on the Closing Date. Notwithstanding anything to the contrary
in this Agreement, no claim for Taxes shall be permitted under this Article
IX unless such claim is first made not later than ninety (90) days after
the expiration of the applicable statute of limitations (including extensions or
waivers) with respect to such Taxes.  For the avoidance of doubt, the
limitations of liability contained in Section
8.4 shall not apply with respect to
any indemnification claim under this Section
9.4.

     

    Section
9.5 Purchaser Tax
Indemnification

     

    Purchaser shall indemnify and hold harmless Sellers from and against (a)
any Taxes with respect to the Purchased Assets attributable to the time period
after the Closing Date, (b) any and all Transfer Taxes for which Purchaser
is responsible pursuant to Section
9.2 and
(c) any liability arising from a breach by Purchaser of its
covenants set forth in this Article IX.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
9.6 Refunds

     

    If, after
the Closing Date, Purchaser actually receives a refund or actually utilizes a
credit of any Tax attributable to a Pre-Closing Tax Period, Purchaser shall pay
to REWG within fifteen (15) Business Days after such receipt or utilization an
amount equal to such refund actually received or credit actually utilized (with
respect to any Overlap Period, only so much of such refund or credit as relates
to the portion of the taxable period ending on or before Closing Date), together
with any interest actually received or actually credited
thereon.  Purchaser shall take such action to obtain a refund or
credit attributable to a Pre-Closing Tax Period or to mitigate, reduce or
eliminate any Taxes that could be imposed for a Pre-Closing Tax Period
(including with respect to the transactions contemplated hereby) as is
reasonably requested by Sellers.  Sellers shall reimburse Purchaser
for any reasonable, out-of-pocket costs that are incurred by Purchaser in
providing such assistance.

     

    Section
9.7 Contests

     

    In the event Purchaser or Sellers receive written notice of any
examination, claim, settlement, proposed adjustment, administrative or judicial
proceeding or other matter ("Tax Claim") related
to any Pre-Closing Taxes (other than entity-level Taxes, such as employment or
wage Taxes or sales Taxes that are not material in amount) or Transfer Taxes,
Purchaser or Sellers, as the case may be, shall notify the other Parties in
writing as soon as reasonably practical (but in no event more than fifteen (15)
Business Days) after receipt of such notice.  In the case of any Tax
Claim relating to any Pre-Closing Taxes or Transfer Taxes that, if determined
adversely to Sellers would be grounds for a claim for indemnity pursuant to
Section
9.4 hereof,
Sellers (at their sole cost and expense) shall have the right to control the
conduct of such Tax Claim and shall have the right to settle such Tax Claim;
provided, however, that (a) Purchaser may participate in the dispute of such Tax
Claim at its own expense, (b) Sellers shall not settle, compromise or dispose of
any Tax Claim in a manner that would reasonably be expected to adversely affect
Purchaser (or any of its respective Affiliates) without the consent of
Purchaser, which consent shall not be unreasonably withheld, conditioned or
delayed, and (c) Sellers shall keep Purchaser reasonably informed with respect
to the commencement, status and nature of any such Tax Claim.  In the
case of any Tax Claim relating to any Overlap Period Taxes, Purchaser and
Sellers may each participate, at their own expense, in the Tax Claim, and the
Tax Claim shall be controlled by Purchaser or Sellers according to whichever
would bear the burden of the greatest portion of the adjustment; provided,
however, that the Party controlling the Overlap Period Tax Claim (1) shall not
settle such Tax Claim without the consent of each other Party, which consent
shall not be unreasonably withheld, conditioned or delayed, and (2) shall keep
each other Party timely informed with respect to the commencement, status and
nature of any such Tax Claim.

     

    Section
9.8 Assistance and
Cooperation

     

    After the
Closing Date, each of Sellers and Purchaser shall (and shall cause their
respective Affiliates to) (a) assist the other Party in preparing any Tax
Returns which such other Party is responsible for preparing and filing in
accordance with the terms of this Agreement, and (b) cooperate fully in
preparing for any audits of, or disputes with any Taxing Authority regarding,
any Tax Returns of Sellers with respect to the Purchased Assets.

     

    Section
9.9 Information

     

    After the
Closing, Sellers and Purchaser will make available to each other as reasonably
requested all information, records or documents relating to liability or
potential liability for Pre-Closing Taxes, Overlap Period Taxes and Transfer
Taxes and will preserve such information, records or documents until thirty (30)
days after the expiration of the applicable statute of limitations (including
extensions or waivers thereof) with respect to the particular Tax to which the
information, records or documents relate.  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
9.10 Tax
Returns

     

    Sellers
shall be responsible for preparing and timely filing all Tax Returns with the
appropriate Taxing Authority with respect to the Purchased Assets relating to
Tax periods ending on or prior to the Closing Date.  Purchaser shall
be responsible for preparing and filing all other Tax Returns with respect to
the Purchased Assets.

     

    Section
9.11 Survival of
Obligations

     

    The
representations, warranties and obligations of the Parties set forth in this
Article IX shall remain in
effect until ninety (90) days after expiration of the applicable statutes of
limitation (giving effect to any extensions or waivers thereof) relating to the
Tax or Tax Return in question.

     

    Section
9.12 Adjustments to Purchase
Price

     

    The
Parties hereby agree that any and all indemnity payments made pursuant to this
Agreement shall, to the maximum extent permitted by applicable Law, be treated
for all Tax purposes as an adjustment to the Purchase Price.

     

                                
ARTICLE
X                                

     

    SURVIVAL;
NO OTHER REPRESENTATIONS

     

    Section
10.1 Survival of Representations,
Warranties, Covenants and Agreements

     

    The representations, warranties, covenants and agreements of Sellers and
Purchaser contained in this Agreement shall survive the Closing and shall expire
one (1) year from the Closing Date.  Notwithstanding the preceding
sentence, (a) the representations and warranties contained in Section 3.1 (Existence),
Section 3.2 (Authority),
Section 3.3 (Binding
Agreement), Section
3.19 (Brokers), Section 4.1 (Existence),
Section 4.2 (Authority),
Section 4.3 (Binding
Agreement), Section
4.4 (No
Conflicts), Section
4.5
(Approvals and Filings) and Section 4.7 (Brokers), the
covenants in Section
2.1.2
(Assignment and Assumption of Assigned Facility Agreements), Section 2.1.4(b)(i) (Assumed
Liabilities), Section
2.6.2(a)
(Pre-Closing Books and Records), Article X (Survival,
No Other Representations), Article XI (Dispute
Resolution) and Article XII (Limited
Remedies and Damages) shall survive indefinitely after the Closing, (b)
Section
2.6.2(b) (Pre-Closing Books and
Records) with respect to Retained Information, shall survive for so long as
Sellers retain the Retained Information, (c) the covenants in Section
2.6.4 (RRSU Payment Refunds), with
respect to SCE RRSU Refunds and refunds for overpayments in trust accounts under
Revised MOU I and MOU II, shall survive until all such refunds have been paid,
(d) the survival of representations, warranties, covenants and agreements
contained in Article
IX (Tax
Matters) and Section
13.7 (Confidentiality) shall be governed solely by the
terms therein, (e) the covenants in Sections
2.1.4(b)(ii), (iii) and (iv) (Assumed
Liabilities) and the covenants in Section 2.1.4(a)
(Excluded Liabilities) shall survive the Closing and shall expire on the date
that is three (3) years after the Closing Date, and (f) Article VIII shall
survive Closing in accordance with its terms.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
10.2 No Other
Representations

     

    (a) NOTWITHSTANDING
ANYTHING IN THIS AGREEMENT TO THE CONTRARY, IT IS THE EXPLICIT INTENT OF EACH
PARTY HERETO, AND THE PARTIES HEREBY AGREE, THAT NONE OF THE PARTIES OR ANY OF
THEIR AFFILIATES OR REPRESENTATIVES HAS MADE OR IS MAKING ANY REPRESENTATION OR
WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, WRITTEN OR ORAL, INCLUDING ANY IMPLIED
REPRESENTATION OR WARRANTY AS TO THE CONDITION, MERCHANTABILITY, USAGE,
SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO ANY OF THE
PURCHASED ASSETS, OR ANY PART THEREOF, EXCEPT THOSE EXPRESS REPRESENTATIONS AND
WARRANTIES CONTAINED IN ARTICLE
III, ARTICLE
IV AND ARTICLE
V.  IN PARTICULAR, AND WITHOUT IN ANY WAY LIMITING THE
FOREGOING, (i) SELLERS MAKE NO REPRESENTATION OR WARRANTY REGARDING ANY
ENVIRONMENTAL MATTERS EXCEPT AS EXPRESSLY SET FORTH IN SECTION
3.16, (ii) SELLERS MAKE NO REPRESENTATION OR WARRANTY TO PURCHASER WITH
RESPECT TO ANY FINANCIAL PROJECTIONS OR FORECASTS RELATING TO THE PURCHASED
ASSETS, AND (iii) SELLERS MAKE NO REPRESENTATION OR WARRANTY TO PURCHASER WITH
RESPECT TO INFORMATION PROVIDED TO PURCHASER IN RESPONSE TO QUESTIONS PRESENTED
BY PURCHASER OR OTHER INFORMATION PROVIDED TO PURCHASER RELATING TO THE
PURCHASED ASSETS; PROVIDED,
THAT THIS SENTENCE SHALL NOT LIMIT THE EXPRESS REPRESENTATIONS AND WARRANTIES
CONTAINED IN ARTICLE
III AND ARTICLE
IX.

     

    (b) EXCEPT
FOR THOSE EXPRESS REPRESENTATIONS AND WARRANTIES CONTAINED IN ARTICLE
III, THE PURCHASED ASSETS ARE BEING
TRANSFERRED "AS IS, WHERE IS, WITH ALL FAULTS."

     

                                   
ARTICLE
XI                                

     

    DISPUTE
RESOLUTION

     

    Section
11.1 Dispute
Resolution

     

    Any dispute or claim arising under this Agreement which is not resolved
in the ordinary course of business shall be referred to a panel consisting of a
senior executive (President or a Vice President) of each of Purchaser and REWG,
with authority to decide or resolve the matter in dispute, for review and
resolution.  Such senior executives shall meet and in good faith
attempt to resolve the dispute within thirty (30) days.  If the
Parties are unable to resolve a dispute pursuant to this Section
11.1, such dispute shall be resolved in
accordance with Section
11.2.

     

    Section
11.2 Venue

     

    Each of the Parties hereby irrevocably and unconditionally submits to
the exclusive jurisdiction of any court of the State of New York and any federal
court located in New York County, New York (or if no such court will accept
jurisdiction, in any state or federal court of general jurisdiction in the State
of New York, or if no such court will accept jurisdiction, in any court of
competent jurisdiction in the United States) with respect to any proceeding
relating to this Agreement, other than for any disputes relating to Purchase
Price adjustments covered by Section
2.2.4 (which shall be resolved
pursuant to Section
2.2.4).  Further, each of the Parties hereby
irrevocably and unconditionally waives any objection or defense that it may have
based on improper venue or forum non conveniens to the conduct
of any such proceeding in any such courts.  The Parties agree that any
or all of them may file a copy of this paragraph with any court as written
evidence of the knowing, voluntary and bargained agreement among the Parties
irrevocably to waive any objections to venue or to convenience of
forum.  Each of the Parties (on behalf of itself and its Affiliates)
agrees that a final judgment in any such action or proceeding will be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by applicable Law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
11.3 Waiver of Trial by
Jury

     

      EACH
PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
11.4 Service of
Process

     

    (a) Each
Party irrevocably
consents to service of process in any such proceeding by the mailing thereof by
certified mail, return receipt requested, addressed as provided in Section
13.2.1.

     

    (b) Purchaser
also irrevocably appoints CT Corporation System (the "Purchaser Process
Agent"), with an office on the date hereof at 111 Eighth Avenue, New
York, NY 10011, as its agent to receive on behalf of Purchaser and its property
service of copies of the summons and complaint and any other process which may
be served by Sellers in any such proceeding.  Such service to
Purchaser may be made by mailing or delivering a copy of such process to
Purchaser in care of the Purchaser Process Agent, and Purchaser hereby
irrevocably authorizes and directs the Purchaser Process Agent to accept such
service on its behalf.  If for any reason the Purchaser Process Agent
ceases to be available to act as Purchaser Process Agent, Purchaser agrees
immediately to appoint a replacement process agent satisfactory to
Sellers.

     

    (c) Each
Seller also irrevocably appoints CT Corporation System (the "Seller Process
Agent"), with an office on the date hereof at 111 Eighth Avenue, New York
10011, as its agent to receive on behalf of such Seller and its property service
of copies of the summons and complaint and any other process which may be served
by Purchaser in any such proceeding.  Such service to Sellers may be
made by mailing or delivering a copy of such process to Sellers in care of the
Seller Process Agent, and each Seller hereby irrevocably authorizes and directs
the Seller Process Agent to accept such service on its behalf.  If for
any reason the Seller Process Agent ceases to be available to act as Seller
Process Agent, Sellers agree immediately to appoint a replacement process agent
satisfactory to Purchaser.

     

    (d) Nothing
in this Agreement will affect the right of any Party to serve process in any
other manner permitted by applicable Law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                              
ARTICLE
XII                                

     

    LIMITED
REMEDIES AND DAMAGES

     

    Section
12.1 Exclusive
Remedies

     

    THE
EXPRESS REMEDIES SET FORTH IN SECTION 7.2(b) AND IN
SECTION 12.3
AND THE INDEMNITIES SET FORTH IN ARTICLES V, VIII AND IX ARE THE SOLE AND
EXCLUSIVE REMEDIES FOR A PARTY UNDER OR RELATING TO THIS AGREEMENT, WHETHER
BASED ON STATUTE, IN TORT, COMMON LAW, STRICT LIABILITY, CONTRACT OR OTHERWISE,
AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR IN EQUITY ARE HEREBY WAIVED BY EACH
PARTY.

     

    Section
12.2 Limitation of
Liability

     

    NOTWITHSTANDING
ANY PROVISION OF THIS AGREEMENT, NO PARTY SHALL, UNDER ANY CIRCUMSTANCES, BE
LIABLE FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY
DAMAGES, LOST PROFITS OR LOSS OF REVENUE, WHETHER BY STATUTE, IN TORT, COMMON
LAW, STRICT LIABILITY OR CONTRACT OR OTHERWISE.  THE LIMITATIONS
HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF DAMAGES SHALL BE WITHOUT REGARD TO
THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE, GROSS NEGLIGENCE,
STRICT LIABILITY OR OTHER FAULT OF ANY PARTY, AND WHETHER LIABILITY IS BASED ON
CONTRACT, TORT, STATUTE, COMMON LAW, STRICT LIABILITY OR
OTHERWISE.  THIS PROVISION SHALL SURVIVE ANY TERMINATION, CANCELLATION
OR SUSPENSION OF THIS AGREEMENT.

     

    Section
12.3 Specific
Performance

     

    EACH
PARTY AGREES THAT DAMAGE REMEDIES SET FORTH IN THIS AGREEMENT MAY BE DIFFICULT
OR IMPOSSIBLE TO CALCULATE OR OTHERWISE INADEQUATE TO PROTECT ITS INTERESTS AND
THAT IRREPARABLE DAMAGE MAY OCCUR IN THE EVENT THAT PROVISIONS OF THIS AGREEMENT
ARE NOT PERFORMED BY THE PARTIES IN ACCORDANCE WITH THE SPECIFIC TERMS OF THIS
AGREEMENT.  ANY PARTY MAY SEEK TO REQUIRE THE PERFORMANCE OF ANY OTHER
PARTY'S OBLIGATIONS UNDER THIS AGREEMENT THROUGH AN ORDER OF SPECIFIC
PERFORMANCE RENDERED BY THE FEDERAL COURT IN THE STATE OF NEVADA OR THE STATE
COURTS IN THE STATE OF NEVADA AS PROVIDED IN SECTION 11.2 OF THIS
AGREEMENT.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                 
ARTICLE
XIII                                

     

    MISCELLANEOUS

     

    Section
13.1 REI
Guaranty

     

    Concurrent
with the execution of this Agreement, REI has delivered to Purchaser a guaranty
whereby REI guarantees all obligations of Sellers under this
Agreement.

     

    Section
13.2 Notices

     

    Section
13.2.1 Notice
Addresses.  Unless this Agreement specifically requires
otherwise, any notice, demand or request provided for in this Agreement, or
served, given or made in connection with it, shall be in writing and shall be
deemed properly served, given or made if delivered in person or sent by fax, by
registered or certified mail, postage prepaid, or by a nationally recognized
overnight courier service that provides a receipt of delivery, in each case, to
a Party at its address specified below:

     

    If to
Purchaser, to:

    

    Nevada
Power

    P.O. Box
98910, Las Vegas, NV  89151

    Facsimile
No.:  (702) 367-5869

    Attn:  Corporate
Senior Vice President,

    Energy
Supply

    

    with a
copy to:

    

    Nevada
Power

    P.O. Box
98910, Las Vegas, NV  89151

    Facsimile
No.:  (702) 367-5869

    Attn:  General
Counsel

    

    If to
Sellers, to:

    

    Reliant
Energy Wholesale Generation, LLC

    Reliant
Energy Asset Management, LLC

    1000 Main
Street, Suite 1200

    Houston,
Texas 77002

    Facsimile
No.: (713) 497-9190

    Attn:
Brandon Blossman

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    with a
copy to:

    

    Reliant
Energy, Inc.

    1000 Main
Street, Suite 1200

    Houston,
Texas 77002

    Facsimile
No.: (713) 537-5987

    Attn:
General Counsel

    

    Section
13.2.2 Effective
Time.  Notice given by personal delivery, mail or overnight
courier pursuant to this Section
13.2.2 shall be effective upon
physical receipt.  Notice given by fax pursuant to this Section
13.2.2 shall be effective as
of (a) the date of confirmed delivery if delivered before 5:00 p.m.
local time on any Business Day, or (b) the next succeeding Business Day if
confirmed delivery is after 5:00 p.m. local time on any Business Day or
during any non-Business Day.

     

    Section
13.3 Payments

     

    Except
for Payments due at Closing, if either Party is required to make any payment
under this Agreement on a day other than a Business Day, the date of payment
shall be extended to the next Business Day.  In the event a Party does
not make any payment required or approved by the Parties under this Agreement on
or before the due date, interest on the unpaid amount shall be due and paid at
the Default Rate from the date such payment is due until the date such payment
is made in full.  Any payment of such interest at the Default Rate
pursuant to this Agreement shall not excuse or cure any default
hereunder.  All payments shall first be applied to the payment of
accrued but unpaid interest.

     

    Section
13.4 Entire
Agreement

     

    This
Agreement and the Transaction Agreements supersede all prior discussions and
agreements between the Parties with respect to the subject matter hereof and
thereof, including, in each case, all schedules and exhibits thereto and that
certain Offer Letter, dated April 1, 2008, between Purchaser and REI, and
contain the sole and entire agreement between the Parties hereto with respect to
the subject matter hereof and thereof.

     

    Section
13.5 Expenses

     

    Except as
otherwise expressly provided in this Agreement, whether or not the transactions
contemplated hereby are consummated, each Party will pay its own costs and
expenses incurred in connection with the negotiation, execution and performance
under this Agreement and the Transaction Agreements and the transactions
contemplated hereby and thereby.

     

    Section
13.6 Public
Announcements

     

    Prior to
the Closing, Sellers and Purchaser will not issue or make any press releases or
similar public announcements concerning the transactions contemplated hereby
without the consent of the other.  If either Party is unable to obtain
the approval of its press release or similar public statement from the other
Party and such press release or similar public statement is, in the opinion of
legal counsel to such Party, required by Law in order to discharge such Party's
disclosure obligations, then such Party may make or issue the legally required
press release or similar public statement and promptly furnish the other Party
with a copy thereof.  Sellers and Purchaser will also obtain the other
Party's prior approval of any press release to be issued immediately following
the execution of this Agreement or the Closing announcing either the execution
of this Agreement or the consummation of the transactions contemplated by this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
13.7 Confidentiality

     

    Each Party hereto will hold, and will use commercially reasonable
efforts to cause its Related Persons, agents, representatives, licensees,
invitees, lenders, advisors and subcontractors to hold, in strict confidence
from any Person (other than any such Related Persons, agents, representatives,
licensees, invitees, lenders, advisors and subcontractors), unless
(a) compelled to disclose by judicial or administrative process (including
in connection with obtaining the necessary approvals of this Agreement and the
transactions contemplated hereby of Governmental Authorities) or by other
requirements of Law or as necessary or desirable to disclose in order to obtain
the PUCN Approval, the FERC Approval or in connection with the HSR Act filing or
(b) disclosed in an action or proceeding brought by a Party in pursuit of
its rights or in the exercise of its remedies hereunder, all documents and
information concerning any other Party or any of its Related Persons, agents,
representatives, licensees, invitees, lenders, advisors and subcontractors
furnished to it by any other Party or such other Party's Related Persons,
agents, representatives, licensees, invitees, lenders, advisors and
subcontractors in connection with this Agreement or the transactions
contemplated hereby and, in the case of Purchaser prior to Closing and the
Sellers after Closing, any information relating to the Purchased Assets, except
to the extent that such documents or information can be shown to have been
(i) previously known by the Party receiving such documents or information
(except in the case of Sellers with respect to the Purchased Assets and after
Closing), (ii) in the public domain (either prior to or after the
furnishing of such documents or information hereunder) through no fault of such
receiving Party or (iii) later acquired by the receiving Party from another
source if the receiving Party is not aware after reasonable inquiry that such
source is under an obligation to another Party hereto to keep such documents and
information confidential.  In the event this Agreement is terminated,
upon the request of any Party, each other Party will, and will use commercially
reasonable efforts to cause its Related Persons, agents, representatives,
licensees, invitees, lenders, advisors and subcontractors to, promptly (and in
no event later than five (5) Business Days after such request) destroy or cause
to be destroyed all copies of confidential documents and information furnished
by the other Party in connection with this Agreement or the transactions
contemplated hereby and destroy or cause to be destroyed all notes, memoranda,
summaries, analyses, compilations and other writings related thereto or based
thereon prepared by the Party furnished such documents and information or its
Related Persons, agents, representatives, licensees, invitees, lenders, advisors
and subcontractors.  The obligations contained in this Section
13.7 shall survive Closing or, if
this Agreement is terminated pursuant to Article
VII,
such obligations shall survive for one (1) year following the termination of
this Agreement.  The obligations in this Section
13.7 shall
supersede the provisions of the Confidentiality Agreement, dated March 2, 2007,
between Purchaser and REI.

     

    Section
13.8 Waivers

     

    Section
13.8.1 Grant of
Waivers.  Any term or condition of this Agreement may be waived
at any time by the Party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the Party waiving such term or condition. No waiver by any
Party of any term or condition of this Agreement, in any one or more instances,
shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion. All remedies, either under
this Agreement or by Law or otherwise afforded, will be cumulative and not
alternative.

     

    Section
13.8.2 Exercise of
Remedies.  No failure or delay of any Party, in any one or more
instances, (a) in exercising any power, right or remedy (other than failure
or unreasonable delay in giving notice of default) under this Agreement or
(b) in insisting upon the strict performance by the other Party of such
other Party's covenants, obligations or agreements under this Agreement, shall
operate as a waiver, discharge or invalidation thereof, nor shall any single or
partial exercise of any such right, power or remedy or insistence on strict
performance, or any abandonment or discontinuance of steps to enforce such a
right, power or remedy or to enforce strict performance, preclude any other or
future exercise thereof or insistence thereupon or the exercise of any other
right, power or remedy.  Subject to Section
10.1, the covenants, obligations
and agreements of a defaulting Party and the rights and remedies of the other
Party upon a default shall continue and remain in full force and effect with
respect to any subsequent breach, act or omission.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
13.9 Amendment

     

    This
Agreement may be amended, supplemented or modified only by a written instrument
duly executed by or on behalf of each Party hereto.

     

    Section
13.10 No Construction Against
Drafting Party

     

    The
language used in this Agreement is the product of both Parties' efforts and each
Party hereby irrevocably waives the benefits of any rule of contract
construction that disfavors the drafter of a contract or the drafter of specific
words in a contract.

     

    Section
13.11 No Third Party
Beneficiary

     

    The terms
and provisions of this Agreement are intended solely for the benefit of each
Party hereto and their respective successors or permitted assigns, and it is not
the intention of the Parties to confer third-party beneficiary rights upon any
other Person.

     

    Section
13.12 Headings

     

    The
headings used in this Agreement have been inserted for convenience of reference
only and do not define or limit the provisions hereof.

     

    Section
13.13 Invalid
Provisions

     

    If any
provision of this Agreement is held to be illegal, invalid or unenforceable
under any present or future Law, and if the rights or obligations of any Party
hereto under this Agreement will not be materially and adversely affected
thereby, (a) such provision will be fully severable, (b) this
Agreement will be construed and enforced as if such illegal, invalid or
unenforceable provision had never comprised a part hereof, (c) the
remaining provisions of this Agreement will remain in full force and effect and
will not be affected by the illegal, invalid or unenforceable provision or by
its severance herefrom and (d) Purchaser and Sellers shall negotiate an
equitable adjustment in the provisions of the Agreement with a view toward
effecting the purposes of the Agreement, and the validity and enforceability of
the remaining provisions, or portions or applications thereof, shall not be
affected thereby.

     

    Section
13.14 Governing
Law

     

    THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, ENFORCED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
13.15 No Assignment; Binding
Effect

     

    Neither
this Agreement nor any right, interest or obligation hereunder may be assigned
by any Party hereto without the prior written consent of the other Party hereto
and any attempt to do so will be void, except for assignments and transfers by
operation of Law.  This Agreement is binding upon, inures to the
benefit of and is enforceable by the Parties and their respective successors and
permitted assigns.

     

    Section
13.16 Counterparts

     

    This
Agreement may be executed in any number of counterparts, each of which will be
deemed an original, but all of which together will constitute one and the same
instrument.

     

    Section
13.17 Time of
Essence

     

    Time is
of the essence with respect to all obligations of the Parties
hereunder.

     

    

    [Signature Page
Follows.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, this Purchase Agreement has been executed by the Parties as of
the Effective Date.

     

    RELIANT
ENERGY WHOLESALE GENERATION, LLC

    

    

    By:

    Name:

    Title:

    

    

    RELIANT
ENERGY ASSET MANAGEMENT, LLC

    

    

    By:

    Name:

    Title:

    

    

    NEVADA
POWER COMPANY

    

    

    By:

    Name:

    Title:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBITS

     

    TO
THE

     

    ASSET
PURCHASE AGREEMENT

     

    by
and among

     

    RELIANT
ENERGY WHOLESALE GENERATION, LLC

     

    AND

     

    RELIANT
ENERGY ASSET MANAGEMENT, LLC

     

    as
Sellers,

     

    and

     

    NEVADA
POWER COMPANY

     

    as
Purchaser

     

    April
21, 2008

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              Exhibit
      A

            	
              Form of Bill of Sale
      and Assignment

            

    

    
      	
              Exhibit
      B

            	
              Form of Easement and
      Lease Assignment and Assumption
Agreement

            

    

    
      	
              Exhibit
      C

            	
              Form of
      Assignment

            

    

    
      	
              Exhibit
      D

            	
              Form of Requested
      Consent

            

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    FORM
OF BILL OF SALE AND ASSIGNMENT 

    

    THIS BILL OF SALE AND
ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is
entered into as of _____________, 2008 by and among Reliant Energy Wholesale
Generation, LLC, a Delaware limited liability company ("REWG") and Reliant
Energy Asset
Management, LLC, a _________ ("REAM", and collectively with REWG, the "Sellers") and Nevada
Power Company, an electric utility organized under the laws of the State of
Nevada ("Purchaser").  Each
of Sellers and Purchaser may be referred to individually herein as a "Party" and
collectively as the "Parties".

    

    RECITALS

    

    A.           Reference
is made to the Asset Purchase Agreement ("Purchase Agreement")
dated as of April ___, 2008, by and among Sellers and Purchaser.  All
capitalized terms herein not otherwise defined shall have the same meaning as
set forth in the Purchase Agreement.

    

    B.           Sellers
and Purchaser desire to carry out, in part, the intent and purpose of the
Purchase Agreement by the Sellers' execution and delivery to Purchaser of this
Assignment evidencing the vesting in Purchaser of all of Sellers' right, title
and interest in the Purchased Assets.

    

    C.           Sellers
and Purchaser desire to carry out, in part, the intent and purpose of the
Purchase Agreement by Purchaser's execution and delivery to Sellers of this
Assignment evidencing Purchaser's assumption of all duties and obligations under
the Assigned Facility Agreements as set forth below.

    

    AGREEMENT

    

    NOW, THEREFORE, for good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties agree as follows:

    

    Section 1.    Bill of
Sale.

    

    (a)  Sellers
do hereby assign, transfer, convey and deliver to Purchaser all of Sellers'
right, title and interest in the Purchased Assets.

    

    (b)  Sellers
do hereby recognize the receipt of that portion of the Purchase Price payable at
the Closing for the assignment and transfer of the Purchased
Assets.

    

    Section 2.    Assignment
and Assumption of Assigned Facility Agreements and Assumed
Liabilities.  Sellers hereby assign to Purchaser all of
Sellers' right, title and interest in and to the Assigned Facility Agreements.
 Purchaser hereby
assumes and agrees to perform Sellers' obligations under the Assigned Facility
Agreements to the extent set forth in the Purchase
Agreement.  Purchaser assumes and hereby agrees to perform the Assumed
Liabilities.  Nothing in this Assignment shall alter the rights and
remedies of the Parties in the Purchase Agreement, including with respect to
indemnification.  In the event of any inconsistency between this
Assignment and the Purchase Agreement, the Purchase Agreement shall
govern.

    

    Section 3.    Successors
and Assigns.  This Assignment shall be binding upon and shall
inure to the benefit of Sellers and Purchaser and their respective successors
and permitted assigns.

    

    Section
4.    Governing
Law.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, ENFORCED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

    

    Section 5.    Severability.  If any term or
provision of this Assignment shall be held invalid or unenforceable, the
remainder of this Assignment shall not be affected.

    

    Section 6.    Construction. Headings are solely for
the Parties' convenience, are not a part of this Assignment, and shall not be
used to interpret this Assignment.  This Assignment shall not be
construed as if it had been prepared by one of the Parties, but rather as if all
Parties have prepared it.

    

    Section 7.    Counterparts. This Assignment may be
executed in one or more counterparts, each of which shall be deemed an original
and all of which taken together shall constitute one and the same
instrument.

    

    Section 8.    Amendment. This Assignment may not
be amended or altered except by a written instrument executed by Sellers and
Purchaser.

    

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
        
          Exhibit
A-

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties have executed this Assignment as of the date first
set forth above.

    

    
      	
               
      

            	
              Sellers:

            	
              RELIANT
      ENERGY WHOLESALE GENERATION, LLC, a Delaware limited liability
      company

            

    

    

    By:_______________________

    

    By:  ________________________________________

    Name:

    Title:

    

    RELIANT
ENERGY ASSET MANAGEMENT, LLC, a ______________

    

    By:  ________________________________________

    Name:

    Title:

    

    
      	
               
      

            	
              Purchaser:

            	
              NEVADA
      POWER COMPANY, a Nevada corporation

            

    

    

    
      	
               
      

            	
              By:  ________________________________________

            

    

    
      	
               
      

            	
              Name:

            

    

    
      	
               
      

            	
              Title:

            

    

    

    
      
        
          Exhibit
A-

          

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
B

    

    A.P.N.:

    A.P.N.:     _______________

    R.P.T.T.:  $

    

    Recorded
at the Request of:

    Nevada
Title Company

    Escrow
No. _______________

    

    

    Mail tax
bill to and

    When
recorded mail to:

    Nevada
Power Company

    P.O. Box
98910

    Las
Vegas, NV  89151-0001

    Attn:  ____________________

    

    

    FORM
OF EASEMENT AND LEASE ASSIGNMENT AND ASSUMPTION AGREEMENT

    

    THIS EASEMENT AND LEASE
ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is
entered into as of _____, 2008 by and between Reliant Energy Wholesale
Generation, LLC, a Delaware limited liability company ("Assignor"), and
Nevada Power Company, an electric utility organized under the laws of the State
of Nevada ("Assignee").  Assignor
and Assignee collectively are referred to herein as the "Parties" and each,
individually, as a "Party".

    

    RECITALS

    

    A.           Assignor
is the current holder of the leasehold estate created by the Lease Agreement (as
amended, the “Lease”) evidenced by
Memorandum of Lease recorded September 12, 2001, as Instrument No.
00229, Book 20010912, of the Official Records of Clark County, Nevada, as
amended by Amendment of Memorandum of Lease recorded
___________________, 200__, as Instrument No. ________, Book ________, of
the Official Records of Clark County, Nevada.

    

    B.           Subject
to the terms and conditions of the Lease, Assignor is the current holder of the
tenant’s interest created by Section 3.8 of the Lease in the Improvements (as
defined in the Lease) constructed by Assignor pursuant to the
Lease.

    

    C.           Assignor
is the current holder of the easement interests created by those certain
easements described on Exhibit A attached hereto (the "Easements").

    

    D.           Assignor
desires to assign to Assignee all of Assignor's right, title and interest in the
Lease (including, subject to the terms and conditions of the Lease, Assignor’s
right, title and interest in the Improvements constructed by Assignor pursuant
to the Lease), and the Easements, and Assignee desires to assume all duties and
obligations of Assignor under the Lease and the Easements arising after the date
hereof.

    

    AGREEMENT

    

    NOW, THEREFORE, for good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties agree as follows:

    

    Section 1.    Assignment
and Assumption.  Assignor hereby grants, conveys and assigns to
Assignee all of Assignor's right, title and interest in and to the Lease
(including subject to the terms and conditions of the Lease, Assignor’s right,
title and interest in and to the Improvements) and the Easements.  Assignee hereby assumes
and agrees to perform any and all of the obligations of Assignor arising after
the date hereof under the Easements and the Lease.

    

    Section
2.            Successors
and Assigns.  This Assignment shall be binding upon and shall
inure to the benefit of Assignor and Assignee and their respective successors
and permitted assigns.

    

    Section
3.            Governing
Law.  THIS ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEVADA (WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PRINCIPLES THEREOF).

    

    Section
4.            Severability.  If any term or
provision of this Assignment shall be held invalid or unenforceable, the
remainder of this Assignment shall not be affected.

    

    Section
5.            Construction. Headings are solely for
the Parties' convenience, are not a part of this Assignment, and shall not be
used to interpret this Assignment.  This Assignment shall not be
construed as if it had been prepared by one of the Parties, but rather as if
both Parties have prepared it.

    

    Section
6.            Counterparts. This Assignment may be
executed in one or more counterparts, each of which shall be deemed an original
and all of which taken together shall constitute one and the same
instrument.

    

    Section
7.            Amendment. This Assignment may not
be amended or altered except by a written instrument executed by Assignor and
Assignee.

    

    Section
8.            Further
Assurances. 
Whenever requested to do so by the other Party, each Party shall execute,
acknowledge and deliver any further conveyances, assignments, confirmations,
satisfactions, releases, powers of attorney, instruments of further assurance,
approvals, consents and any further instruments or documents that are necessary,
expedient or proper to complete any conveyances, transfers, sales and
assignments contemplated by this Assignment.  In addition, each Party
shall do any other acts and execute, acknowledge and deliver any requested
documents in order to carry out the intent and purpose of this
Assignment.

    

    

    [SIGNATURE
PAGE FOLLOWS]

    

    
      
        
          Exhibit
B-

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the Parties have executed this Assignment as of the date first
set forth above.

    

    
      	
               
      

            	
              Assignor:

            	
              RELIANT
      ENERGY WHOLESALE GENERATION, LLC, a Delaware limited liability
      company

            

    

    

    
      	
               
      

            	
              By:  _________________________________________

            

    

    
      	
               
      

            	
              Name:  ______________________________________

            

    

    
      	
               
      

            	
              Title:  _______________________________________

            

    

    

    

    
      	
               
      

            	
              Assignee:

            	
              NEVADA
      POWER COMPANY, an electric utility organized under the laws of the State
      of Nevada

            

    

    

    
      	
               
      

            	
              By:  _________________________________________

            

    

    
      	
               
      

            	
              Name:  ______________________________________

            

    

    
      	
               
      

            	
              Title:  _______________________________________

            

    

    

    

    State of
__________________ )

                                                       )
ss:

    County of
_________________)

    

    This
instrument was acknowledged before me on ___________, 2008, by
___________________________________________________ the ______________________
of Reliant Energy Wholesale Generation, LLC, a Delaware limited liability
company.

    

    

    ________________________________

    Notary
Public

    My Commission Expires:
____________

    

    (Seal/Stamp)

    

    

    

    State of
__________________ )

                                                       )
ss:

    County of
_________________)

    

    This
instrument was acknowledged before me on ___________, 2008, by
___________________________________________________ the ______________________
of Nevada Power Company, a Nevada corporation.

    

    

    ________________________________

    Notary
Public

    My Commission Expires:
____________

    

    (Seal/Stamp)

    

    
      
        
          Exhibit
B-

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    

    EASEMENTS

     

    
      	
              1.  

            	
              Private
      Road Crossing Easement Agreement, dated December 12, 2002, between Reliant
      Energy Wholesale Generation, LLC (f/k/a Reliant Energy Bighorn, LLC) and
      Union Pacific Railroad Company, recorded as Instrument No.
      ________________, Book _________, in the Official Records of Clark County,
      Nevada.

            

    

     

    
      	
              2.  

            	
              Wireline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company, recorded as Instrument No.
      ________________, Book _________, in the Official Records of Clark County,
      Nevada.

            

    

     

    
      	
              3.  

            	
              Pipeline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company, recorded as Instrument No.
      ________________, Book _________, in the Official Records of Clark County,
      Nevada.

            

    

     

    
      	
              4.  

            	
              Easement
      Agreement B-2, dated November 28, 2007, by and among Primm 120 Limited
      Partnership, Reliant Energy Wholesale Generation, LLC and Nevada Power
      Company (as amended by the side letter, dated November 28, 2007), recorded
      as Instrument No. ________________, Book _________, in the Official
      Records of Clark County, Nevada.

            

    

     

    
      	
              5.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15, 2004, recorded as
      Instrument No. ________________, Book _________, in the Official Records
      of Clark County, Nevada.

            

    

     

    

    
      
        
          Exhibit
B-

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
C

    

    FORM
OF ASSIGNMENT

    

    THIS ASSIGNMENT AND
ASSUMPTION AGREEMENT (this "Assignment") is
entered into as of _____, 2008 by and between Reliant Energy Services, Inc., a
Delaware corporation ("Assignor") and Nevada
Power Company, an electric utility organized under the laws of the State of
Nevada ("Assignee").  Assignor
and Assignee collectively are referred to herein as the "Parties" and each,
individually, as a "Party".

    

    RECITALS

    

    A.           Reference
is made to the Asset Purchase Agreement ("Purchase Agreement")
dated as of April ____, 2008, by and among Reliant Energy Wholesale Generation,
LLC and Reliant Energy Asset Management, LLC, as Sellers, and Assignee, as
Purchaser.  All capitalized terms herein not otherwise defined shall
have the same meaning as set forth in the Purchase Agreement.

    

    B.           The
Parties desire to carry out, in part, the intent and purpose of the Purchase
Agreement by Assignor's execution and delivery to Assignee of this Assignment
evidencing the assignment to the Assignee of all of Assignor's right, title and
interest in the Service Agreement for Long-Term Firm Point-To-Point Transmission
Service, Service Agreement No. 90, dated as of July 5, 2001 by and between
Assignee and/or Sierra Pacific Power Company and Assignor (the "TSA").

    

    C.           The
Parties desire to carry out, in part, the intent and purpose of the Purchase
Agreement by Assignee's execution and delivery to Assignor of this Assignment
evidencing Assignee's assumption of all duties and obligations arising after the
date hereof under the TSA, as set forth in the Purchase Agreement.

    

    AGREEMENT

    

    NOW, THEREFORE, for good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties agree as follows:

    

    Section 1.    Assignment
and Assumption of TSA.  Assignor hereby assigns to Assignee all
of Assignor's right, title and interest in and to the TSA.  Assignee hereby assumes
and agrees to perform any and all of the obligations of Assignor under the TSA,
arising after the date hereof.  Each Party hereby releases the other
from all obligations arising under the TSA.

    

    Section
2.           Representations
and Warranties.  Assignor represents and warrants
that:

    

    (a) Existence.  Assignor
is a corporation duly formed, validly existing and in good standing under the
Laws of the State of Delaware and is licensed to do business as a corporation in
the State of Nevada.

    

    (b) Authority.  Assignor
has full corporate power and authority to execute and deliver this Assignment
and the TSA and to perform its obligations hereunder and
thereunder.  The execution and delivery by Assignor of this Assignment
and the performance by Assignor of its obligations hereunder have been duly and
validly authorized by all necessary corporate action.

    

    (c) Binding
Agreement.  Each of this Assignment and the TSA is in full
force and effect and constitutes the legal, valid and binding obligation of
Assignor, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights or by equitable
principles.  Assignor is not in violation or breach of or default
under, or with notice or lapse of time or both, would be in violation or breach
of or default under, the TSA.

    

    (d) No
Conflicts.  The execution and delivery by Assignor of this
Assignment does not and the performance by Assignor of its obligations under
this Assignment shall not: (i) conflict with or result in a violation or breach
of any of the terms, conditions or provisions of Assignor's organizational
documents; (ii) result in a default (or give rise to any right of termination,
cancellation or acceleration) under any of the terms, conditions or provisions
of the TSA or any note, bond, deed of trust, indenture, license, agreement,
lease or other instrument or obligation to which Assignor is party or by which
Assignor may be bound, except for such defaults (or rights of termination,
cancellation or acceleration) as to which requisite waivers or consents have
been obtained in writing (true and correct copies of which waivers or consents
have been furnished to Assignee); or (iii) conflict with or result in a
violation or breach of any term or provision of any Law applicable to
Assignor.

    

    (e) No Prior
Transfer.  Assignor has not assigned or otherwise transferred
the TSA or any interest therein to any party.

    

    Section
3.           Successors
and Assigns.  This Assignment shall be binding upon and shall
inure to the benefit of Assignor and Assignee and their respective successors
and assigns.

    

    Section
4.           Governing
Law.  THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THE
TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, ENFORCED AND INTERPRETED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK).

    

    Section
5.           Severability.  If any term or
provision of this Assignment shall be held invalid or unenforceable, the
remainder of this Assignment shall not be affected.

    

    Section
6.           Construction. Headings are solely for
the Parties' convenience, are not a part of this Assignment, and shall not be
used to interpret this Assignment.  This Assignment shall not be
construed as if it had been prepared by one of the Parties, but rather as if
both Parties have prepared it.

    

    Section
7.           Counterparts. This Assignment may be
executed in one or more counterparts, each of which shall be deemed an original
and all of which taken together shall constitute one and the same
instrument.

    

    Section
8.           Amendment. This Assignment may not
be amended or altered except by a written instrument executed by Assignor and
Assignee.

    

    Section
9.           Further
Assurances. 
Whenever requested to do so by the other Party, each Party shall execute,
acknowledge and deliver any further conveyances, assignments, confirmations,
satisfactions, releases, powers of attorney, instruments of further assurance,
approvals, consents and any further instruments or documents that are necessary,
expedient or proper to complete any conveyances, transfers, sales and
assignments contemplated by this Assignment.  In addition, each Party
shall do any other acts and execute, acknowledge and deliver any requested
documents in order to carry out the intent and purpose of this
Assignment.

    

    

    

    

    [SIGNATURE
PAGE FOLLOWS]

    
      
        
          Exhibit
C-

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
WITNESS WHEREOF, the Parties have executed this Assignment as of the date first
set forth above.

    

    
      	
               
      

            	
              Assignor:

            	
              RELIANT
      ENERGY SERVICES, INC., a Delaware
corporation

            

    

    

    
      	
               
      

            	
              By:  _________________________________________

            

    

    
      	
               
      

            	
              Name:  ______________________________________

            

    

    
      	
               
      

            	
              Title:  _______________________________________

            

    

    

    
      	
               
      

            	
              Assignee:

            	
              NEVADA
      POWER COMPANY, an electric utility organized under the laws of the State
      of Nevada

            

    

    

    
      	
               
      

            	
              By:  _________________________________________

            

    

    
      	
               
      

            	
              Name:  ______________________________________

            

    

    
      	
               
      

            	
              Title:  _______________________________________

            

    

    

    

    

    

    
      
        
          Exhibit
C-

        

         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
D

    FORM
OF REQUESTED CONSENT

    

    This CONSENT AGREEMENT
(this "Agreement") is
entered  into as of _____________, 2008, among Reliant Energy
Wholesale Generation, LLC, a Delaware limited liability company (with its
successors and assigns, "Seller"), Nevada
Power Company, an electric utility organized under the laws of Nevada (with its
successors and assigns, "Purchaser"), and
_______, a ______ (with its successors and assigns, "Company").  Purchaser,
Seller and Company may be referred to individually herein as a "Party" and
collectively as the "Parties".

    

    RECITALS

    

    WHEREAS,
Seller and Company have entered into that certain _______, dated as of ____ (the "Assigned
Agreement");

    

    WHEREAS, Purchaser,
Seller and Reliant Energy Asset Management, LLC have entered into that certain
Asset Purchase Agreement, dated as of April _____, 2008 (the "Purchase Agreement"),
pursuant to which Seller has agreed to assign all of its rights, title and
interest under the Assigned Agreement to Purchaser, and Purchaser has agreed to
assume all of Seller's obligations arising under the Assigned Agreement after
the closing of the transactions under the Purchase Agreement (the "Transaction Closing
Date"); and

    

    WHEREAS, Seller requests
consent from Company to transfer its rights, title, interest and obligations
under the Assigned Agreement to Purchaser.

    

    NOW, THEREFORE, in
consideration of the foregoing, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowl­edged, and intending to
be legally bound, the Parties hereby agree as follows:

    

    1.           Consent
and Agreement.  Company hereby
consents to the assignment of all of Seller's right, title and interest in the
Assigned Agreement to Purchaser.

    

    2.           Assumption
by Purchaser.  Purchaser
acknowledges that it will assume all of the obligations of Seller arising under
the Assigned Agreement after the Transaction Closing Date.

    

    3.           Novation
of Assigned Agreement.  Effective as of
the Transaction Closing Date, Company hereby fully and unconditionally releases
Seller and its affiliates from all liabilities (whether known or unknown,
accrued or contingent, fixed or otherwise) under the Assigned Agreement arising
after the Transaction Closing Date.

    

    4.           Representations.

    

    Company
represents and warrants that: (i) to Company's knowledge, the Assigned Agreement
is in full force and effect and constitutes the legal, valid and binding
obligation of Company, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, or other similar laws affecting creditors' rights or
by equitable principles; (ii) neither Company nor, to Company's knowledge,
Seller is in default of any obligation under the Assigned Agreement and neither
has any existing counterclaims, offsets or defenses against the other; (iii) to
Company's knowledge, no event or condition exists which would either immediately
or with the passage of any applicable grace period or giving of notice, or both,
enable Company or Seller to terminate or suspend its obligations under the
Assigned Agreement; (iv) to Company's knowledge, no event or condition exists or
has occurred which would give rise to any obligation of Seller to indemnify
Company pursuant to the Assigned Agreement; (v) neither Company nor Seller has
any payment amount under the Assigned Agreement outstanding or overdue and there
are no pending claims for any payment amount related to the Assigned Agreement;
(vi) the Assigned Agreement has not been amended or otherwise modified except as
set out on Exhibit ___; (vii) Company is a ____ duly formed and validly
existing under the laws of the State of ____; (viii) Company has power
and authority to execute and deliver this Agreement, the execution and delivery
of which by Company has been duly and validly authorized; and (ix) this
Agreement constitutes the legal, valid and binding obligation of Company, except
as enforceability may be limited by bankruptcy, insolvency, reorganization, or
other similar laws affecting creditors’ rights or by equitable
principles.

    

    5.           Purchaser's
address for notice under the Assigned Agreement is:

    

    ___________________

    ___________________

    Attn:
_______________

    

    6.           Miscellaneous.

    

    (i) This Agreement shall
be binding upon the Parties and their respective successors and assigns, and may
be executed in counterparts, each of which shall be an original, but all of
which shall together constitute one and the same instrument.

    

    (ii) In case any
provision of this Agreement shall be invalid or unenforceable, the validity or
enforceability of the remaining provisions shall not in any way be impaired
thereby.  In the event of a conflict between this Agreement and the
Assigned Agreement, the terms of this Agreement shall
control.

    

    (iii) THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEVADA APPLICABLE TO A CONTRACT EXECUTED AND PERFORMED IN SUCH STATE,
WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

    

    (iv) This Agreement
embodies the complete agreement among the Parties with respect to the subject
matter hereof and supersedes all other oral or written understandings or
agreements.

    

    (v)
Company agrees to execute and deliver such instruments and take such further
actions as may be reasonably necessary to effectuate the purposes of this
Agreement.

    

    (vi) No change,
amendment, modification, cancellation, discharge or waiver of any provision
hereof shall be valid unless in writing and signed by all
Parties.

    
      
        
          Exhibit
C-

        

         

      

      
         

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
Parties have caused their duly authorized officers to execute and deliver this
Agreement as of the date first above written.

    

    [COMPANY]

    

    

    
      	
               
      

            	
              By:_______________________

            

    

    
      	
               
      

            	 	
              Name:

            	 

    

    
      	
               
      

            	 	
              Title:

            	 

    

    

    

    
      	
               
      

            	
              [SELLER]

            

    

    

    

    
      	
              By:

            	 

    

    
      	 	
              Name:

            	 

    

    
      	 	
              Title:

            	 

    

    

    

    PURCHASER:

    NEVADA POWER
COMPANY

    

    

    By:                                                      

    Name:                                                                

    Title:                                                                

    

    
      
        
          Exhibit
C-

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULES

     

    TO
THE

     

    ASSET
PURCHASE AGREEMENT

     

    by
and among

     

    RELIANT
ENERGY WHOLESALE GENERATION, LLC

     

    AND

     

    RELIANT
ENERGY ASSET MANAGEMENT, LLC

     

    as
Sellers,

     

    and

     

    NEVADA
POWER COMPANY

     

    as
Purchaser

     

    April
21, 2008

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Capitalized
terms used and not defined herein shall have the meaning assigned to them in the
Asset Purchase Agreement.

     

    

    
      	
              Schedule 1.1(a), Part A

            	
              Assigned Facility
  Agreements

            
	
              Schedule 1.1(a), Part B

            	
              Stores and Inventory

            
	
              Schedule 1.1(b)

            	
              Materials and Equipment

            
	
              Schedule 1.1(c)

            	
              Requested Consents

            
	
              Schedule 1.1(d)

            	
              Easements

            
	
              Schedule 1.1(e)

            	
              Permitted Liens

            
	
              Schedule 1.1(f)

            	
              Transferred Intellectual
      Property

            
	
              Schedule 1.1(g)

            	
              Project Employees

            
	
              Schedule 1.1(h)

            	
              Stores and Inventory
      Methodology

            
	
              Schedule 1.1(i)

            	
              Transferred Permits

            
	
              Schedule 2.1.3

            	
              Excluded Assets

            
	
              Schedule 5.2(b)(iii)

            	
              Material Assigned Facility
      Agreements

            
	
              Schedule 5.2(d)

            	
              Permitted Actions

            
	
               

              Sellers' Disclosure
Schedule

            	
               

              Section 1.1(a): Sellers'
      Knowledge Persons

              Section
      3.4:  Consents and Action

              Section
      3.5:  Approvals and Filings

              Section
      3.7:  Sellers' Legal Proceedings

              Section 3.10(d):Real Property
      – Material Liens

              Section 3.10(f):Real Property
      – Commitments to or Agreements with Any Governmental Authority Affecting
      the Use or Ownership of the Real Property

              Section 3.10(g):Real Property
      – Agreements for the Sale, Exchange, Encumbrance, Lease or Transfer of Any
      of the Real Property or Any Portion of the Same by
      Sellers

              Section 3.10(h):Real Property
      – Notices of Non-Compliance with Applicable Material Conditions, Covenants
      and Restrictions that Encumber the Real Property

              Section 3.11:Materials and
      Equipment; Tangible Personal Property

              Section 3.12:Warranty
      Matters

              Section 3.14(a):List of
      Facility Permits

              Section 3.14(b)(i):Permit
      Parties

              Section
      3.14(b)(ii):Compliance with and Status of Facility
      Permits

              Section 3.15:List of
      Insurance Policies

              Section 3.16:Environmental
      Matters

              Section 3.16(d):Material
      Environmental Permits

              Section
      3.18(b):  Seller Plans

              Section
      3.20(a):   Intellectual Property

              Section
      3.20(b):   Infringement of Intellectual
      Property

              Section
      5.11(a):    Support
      Obligations

              Section 9.1:Tax Matters
      Exceptions

               

            
	
              Purchaser's Disclosure
    Schedule

            	
              Section
      1.1(a):  Purchaser's Knowledge
Persons

              Section
      4.5        Approvals and
      Filings

              Section
      4.6:       Purchaser's Legal
      Proceedings

            

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(a)

     

    ASSIGNED FACILITY
AGREEMENTS

     

    
      	
              1.  

            	
              Interconnection
      and Operation Agreement between Nevada Power Company and Reliant Energy
      Wholesale Generation, LLC, as successor in interest to Reliant Energy
      Bighorn, LLC, dated March 6, 2002 as amended by the First Revised Service
      Agreement No. 109, which is attached to the compliance filing with FERC by
      Nevada Power Company on June 26, 2002, accepted by FERC for filing
      effective as of March 6, 2002

            

    

     

    
      	
              2.  

            	
              Regional
      Required System Upgrades Memorandum of Understanding between Reliant
      Energy Wholesale Generation, LLC, as successor in interest to Reliant
      Energy Bighorn, LLC, and Nevada Power Company, dated July 8,
      2002

            

    

     

    
      	
              3.  

            	
              Agreement
      for Large Standby Electric Service between Nevada Power Company and
      Reliant Energy Wholesale Generation, LLC, dated April 5,
    2005

            

    

     

    
      	
              4.  

            	
              Service
      Agreement for Long-Term Firm Point-to-Point Transmission Service, Service
      Agreement No. 90, between Sierra Pacific Power Company and/or Nevada Power
      Company and Reliant Energy Services, Inc., dated July 5,
    2001

            

    

     

    
      	
              5.  

            	
              Settlement
      Agreement among Reliant Energy Services, Inc., Reliant Energy Wholesale
      Generation, LLC, as successor in interest to Reliant Energy Bighorn, LLC,
      Reliant Energy Arrow Canyon, LLC and Nevada Power Company, dated December
      18, 2002 (only as to assignment of rights and obligations under
      §4(d))

            

    

     

    
      	
              6.  

            	
              Amendment
      and Restatement of the 2003 Settlement Agreement, among Nevada Power
      Company, Nevada Power Company's Chuck Lenzie Generating Station, Southern
      California Edison Company, GenWest, LLC, Las Vegas Cogeneration II, Mirant
      Las Vegas, LLC, Reliant Energy Wholesale Generation, LLC and Southern
      Nevada Water Authority, which is attached to the 2005 Settlement Agreement
      and was filed with FERC on May 23,
2005

            

    

     

    
      	
              7.  

            	
              Settlement
      Agreement (for 2005) among Nevada Power Company, Nevada Power Company's
      Chuck Lenzie Generating Station, Valley Electric Association, Inc.,
      Southern California Edison Company, GenWest, LLC, Las Vegas Cogeneration
      II, Mirant Las Vegas, LLC, Reliant Energy Wholesale Generation, LLC and
      Southern Nevada Water Authority, filed with FERC on May 23,
      2005

            

    

     

    
      	
              8.  

            	
              Revised
      Regional Required System Upgrades Memorandum of Understanding between
      Nevada Power Company and Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn, LLC, filed as Attachment
      E to the 2003 Settlement Agreement, as amended by the revised memorandum
      of understanding between Nevada Power Company and Reliant Energy Wholesale
      Generation, LLC entered into pursuant to the 2005 Settlement Agreement and
      the Amended and Restated 2003 Settlement Agreement, conforming MOU I with
      the revisions agreed to in the 2005 Settlement Agreement and the Amended
      and Restated 2003 Settlement
Agreement

            

    

     

    
      	
              9.  

            	
              Amended
      and Restated Regional Required System Upgrades Western Memorandum of
      Understanding, dated March 24, 2005, between Reliant Energy Wholesale
      Generation, LLC and Nevada Power
Company

            

    

     

    
      	
              10.  

            	
              Settlement
      Agreement among Nevada Power Company, Valley Electric Association, Inc.,
      Nevada Power Company's Chuck Lenzie Generating Station, GenWest, LLC, Las
      Vegas Cogeneration II, LLC, Mirant Las Vegas, LLC, Reliant Energy
      Wholesale Generation, LLC, and Southern Nevada Water Authority, dated as
      of March 21, 2005

            

    

     

    
      	
              11.  

            	
              Tax
      Agreement among Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn, LLC, Southern California
      Edison Company and Nevada Power Company, dated effective January 31,
      2003

            

    

     

    
      	
              12.  

            	
              WSCC
      Reliability Management System Agreement, dated March 6, 2002, between
      Reliant Energy Wholesale Generation, LLC, as successor-in-interest to
      Reliant Energy Bighorn, LLC, and Nevada Power
  Company

            

    

     

    
      	
              13.  

            	
              Reliant
      Energy Wholesale Generation, LLC Rate Schedule FERC No. 6, dated May 31,
      2006 and approved July 20, 2006, between Reliant Energy Wholesale
      Generation LLC and Nevada Power
Corporation

            

    

     

    
      	
              14.  

            	
              Settlement
      Agreement, dated May 31, 2006 and approved by FERC on July 20, 2006, by
      and among Reliant Wholesale Energy Generation, LLC and Nevada Power
      Company

            

    

     

    
      	
              15.  

            	
              Lease
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm 120 Limited Partnership, as amended by that First Amendment to
      Lease, dated November 28, 2007

            

    

     

    
      	
              16.  

            	
              Amendment
      of Memorandum of Lease, dated November 28, 2007, between Primm 120 Limited
      Partnership and Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn,
  LLC

            

    

     

    
      	
              17.  

            	
              Agreement
      Regarding Water, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Primadonna Company, LLC

            

    

     

    
      	
              18.  

            	
              Stipulation
      and Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      The Primadonna Company, LLC, Primm South Real Estate Company and Primm 120
      Limited Partnership

            

    

     

    
      	
              19.  

            	
              Letter
      Update to Stipulation and Agreement, dated September 14, 2004, between
      Reliant Energy Wholesale Generation, LLC, as successor-in-interest to
      Reliant Energy Bighorn, LLC, The Primadonna Company, LLC, Primm South Real
      Estate Company and Primm 120 Limited
Partnership

            

    

     

    
      	
              20.  

            	
              Easement
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm South Real Estate Company, Primm 120 Limited Partnership, as
      amended by that First Amendment, dated November 28,
  2007

            

    

     

    
      	
              21.  

            	
              Easement
      Agreement B-2, dated November 28, 2007, by and among Primm 120 Limited
      Partnership, Reliant Energy Wholesale Generation, LLC and Nevada Power
      Company, as amended by the side letter, dated November 28,
      2007

            

    

     

    
      	
              22.  

            	
              Private
      Road Crossing Easement Agreement, dated December 12, 2002, between Reliant
      Energy Wholesale Generation, LLC, as successor-in-interest to Reliant
      Energy Bighorn, LLC, and Union Pacific Railroad
  Company

            

    

     

    
      	
              23.  

            	
              Wireline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              24.  

            	
              Pipeline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              25.  

            	
              Delivery
      Meter Station Facility Lease, dated July 31, 2002, between Reliant Energy
      Wholesale Generation, LLC, as successor-in-interest to Reliant Energy
      Bighorn, LLC, and Kern River Gas Transmission
  Company

            

    

     

    
      	
              26.  

            	
              Signal
      Letter Agreement, dated October 2, 2002, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Kern River Gas Transmission
Company

            

    

     

    
      	
              27.  

            	
              Facilities
      Agreement, dated July 31, 2002, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Kern River Gas Transmission
Company

            

    

     

    
      	
              28.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15,
  2004

            

    

     

    
      	
              29.  

            	
              Cost
      Recovery Agreement, dated March 29, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management

            

    

     

    
      	
              30.  

            	
              Program
      Parts, Shop Repairs and Scheduled Outage Services Contract, dated
      September 30, 2002, between Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn, LLC, and Siemens
      Westinghouse Power Corporation, as amended by Amendment No. 1, dated June
      17, 2005 and Amendment No. 2, dated October 1,
  2006

            

    

     

    
      	
              31.  

            	
              Meteorological
      Data Agreement CBE 419, dated February 21, 2006, between Reliant Energy
      Wholesale Generation, LLC and Clark County,
  Nevada

            

    

     

    
      	
              32.  

            	
              Settlement
      and Mutual Release Agreement, dated as of February 1, 2007, between
      Reliant Energy Wholesale Generation, LLC and Alstom Power
    Inc.

            

    

     

    
      	
              33.  

            	
              Purchase
      Order Number 4501168957, dated March 25, 2008, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Cormetech,
      Inc.

            

    

     

    
      	
              34.  

            	
              Purchase
      Order Number 4501172990, dated April 15, 2008, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and A-1 National Fire Co.,
      Inc.

            

    

     

    
      	
              35.  

            	
              Purchase
      Order Number 4501170131, dated March 31, 2008, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and United Anco
      Services

            

    

     

    
      	
              36.  

            	
              Purchase
      Order Number 4501114486, dated May 29, 2007, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Univar USA
      Inc.

            

    

     

    
      	
              37.  

            	
              Purchase
      Order Number 4500808860, dated March 26, 2003, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Enco Southwest,
      Inc.

            

    

     

    
      	
              38.  

            	
              Contract
      Number 4600017299, dated February 3, 2003, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and GE Mobil Water
      Inc

            

    

     

    
      	
              39.  

            	
              Contract
      Number 4600017899, dated August 25, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Viper Cleaning
    Systems

            

    

     

    
      	
              40.  

            	
              Contract
      Number 4600017952, dated September 2, 2003, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Lawson Products,
      Inc.

            

    

     

    
      	
              41.  

            	
              Contract
      Number 4600017436, dated April 1, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Nalco
  Company

            

    

     

    
      	
              42.  

            	
              Contract
      Number 4600020452, dated June 13, 2007, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Total-Western
  Inc.

            

    

     

    
      	
              43.  

            	
              Contract
      Number 4600019872, dated December 7, 2005, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Pall Advanced Separation
      Systems

            

    

     

    
      	
              44.  

            	
              Contract
      Number 4600019951, dated January 1, 2006, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Siemens Power Generation
      Inc.

            

    

     

    
      	
              45.  

            	
              Contract
      Number 4600018180, dated November 10, 2003, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and A-1 National Fire Co.,
      Inc.

            

    

     

    
      	
              46.  

            	
              Contract
      Number 4600017346, dated March 20, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Enco Southwest,
  Inc.

            

    

     

    
      	
              47.  

            	
              Contract
      Number 4600017913, dated July 25, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Terminix
    International

            

    

     

    
      	
              48.  

            	
              Contract
      Number 4600018071, dated October 6, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Republic Services of Southern
      Nevada

            

    

     

    
      	
              49.  

            	
              Contract
      Number 4600018073, dated October 6, 2003, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Cool
  Reflections

            

    

     

    
      	
              50.  

            	
              Contract
      Number 4600018155, dated October 31, 2003, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Arizona Valve &
      Fitting

            

    

     

    
      	
              51.  

            	
              Contract
      Number 4600018544, dated March 30, 2004, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and H&E Equipment Services
      LLC

            

    

     

    
      	
              52.  

            	
              Contract
      Number 4600019733, dated October 18, 2005, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Anytime Plumbing
      Inc.

            

    

     

    
      	
              53.  

            	
              Software
      License Agreements

            

    

     

    
      	
              a.  

            	
              CEMS
      (Continuous Emissions Monitoring System) Data loggers, server(s) and ESC
      Stackvision software license

            

    

    
      	
              b.  

            	
              REDTag
      (tag & lock out system) PC and software
  license

            

    

    
      	
              c.  

            	
              OSIsoft PI System & interfaces – Server and software1

            

    

    
      	
              d.  

            	
              ABB
      Optimax

            

    

    

     

     

    

     

    

      

    

      
      
        	
                 
      

              	
                1
      SW license for OSI is
      assignable contingent on Purchaser agreeing to 1 year of software
      maintenance with
OSIsoft.

              

      

       

    

    
      
        
          Schedule 1.1(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(b), PART A

     

    MATERIALS AND
EQUIPMENT

     

    2x1 configured
combined-cycle facility consisting of:

     

    

    Major Equipment

     

    Two (2)
Siemens 501 FD2 dry NOx combustion turbines with TXP Control System

    Two (2)
combustion turbine generators

    Two (2)
Alstom three pressure, natural circulation, water-tube heat recovery steam
generators

    One (1)
Alstom steam turbine controlled by an Alstom P320-TGC and hydrogen cooled
generator

    Hamon 40
cell air cooled condenser

    Two (2)
100 percent capacity Flowserve boiler-feed pumps (two per unit, total of
four)

    three 40
percent capacity Flowserve condensate pumps

    ABB
Bailey integrated control system

    

    Balance of
Plant

     

    One (1)
auxiliary boiler and system

    Ammonia
System

    Cooling
Water System

    Water
Treatment System

    Service
Water System

    Data
collection system

    

    Interconnection

     

    Transformers

    Switchyard
Equipment

    Switchgear

    

    Site

    Control
Room Building and Equipment (including office equipment such as office
furniture, computers, printers, etc.)

    Potable
Water System

    Site
Draining System

    Service
Equipment (crane, forklift, pressure washer, four-wheel carts and other
vehicles, tools, maintenance equipment, etc.)

    Power/Lighting
System

    Fire
Protection/Detection Equipment

    Lab
Equipment

    Septic
System

    Security
System

    

    

     

    
      
        
          Schedule 1.1(b) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(b), PART B

     

    STORES AND
INVENTORY

     

    Inventory
list as of March 31, 2008 attached.

    

    
      
        
          Schedule 1.1(b) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(c)

     

    REQUESTED
CONSENTS

     

    
      	
              1.  

            	
              Delivery
      Meter Station Facility Lease, dated July 31, 2002, between Reliant Energy
      Wholesale Generation, LLC, as successor-in-interest to Reliant Energy
      Bighorn, LLC, and Kern River Gas Transmission
  Company

            

    

     

    
      	
              2.  

            	
              Lease
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm 120 Limited Partnership, as amended by that First Amendment to
      Lease, dated November 28, 2007

            

    

     

    
      	
              3.  

            	
              Stipulation
      and Agreement, dated August 13, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      The Primadonna Company, LLC, Primm South Real Estate Company and Primm 120
      Limited Partnership

            

    

     

    
      	
              4.  

            	
              Private
      Road Crossing Easement Agreement, dated December 12, 2002, between Reliant
      Energy Wholesale Generation, LLC, as successor-in-interest to Reliant
      Energy Bighorn, LLC, and Union Pacific Railroad
  Company

            

    

     

    
      	
              5.  

            	
              Wireline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              6.  

            	
              Pipeline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              7.  

            	
              Program
      Parts, Shop Repairs and Scheduled Outage Services Contract, dated
      September 30, 2002, between Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn, LLC, and Siemens
      Westinghouse Power Corporation, as amended by Amendment No. 1, dated June
      17, 2005 and Amendment No. 2, dated October 1,
  2006

            

    

     

    

     

    

     

    
      
        
          Schedule 1.1(c) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(d)

     

    EASEMENTS

     

    
      	
              1.  

            	
              Easement
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm South Real Estate Company, Primm 120 Limited Partnership, as
      amended by that First Amendment, dated November 28,
  2007

            

    

     

    
      	
              2.  

            	
              Private
      Road Crossing Easement Agreement, dated December 12, 2002, between Reliant
      Energy Wholesale Generation, LLC as successor-in-interest to Reliant
      Energy Bighorn, LLC and Union Pacific Railroad
  Company

            

    

     

    
      	
              3.  

            	
              Wireline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              4.  

            	
              Pipeline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              5.  

            	
              Easement
      Agreement B-2, dated November 28, 2007, by and among Primm 120 Limited
      Partnership, Reliant Energy Wholesale Generation, LLC and Nevada Power
      Company, as amended by the side letter, dated November 28,
      2007

            

    

     

    
      	
              6.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15,
  2004

            

    

     

    

     

    
      
        
          Schedule 1.1(d) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(e)

     

    PERMITTED
LIENS

     

    None

     

    

     

    
      
        
          Schedule 1.1(e) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(f)

     

    TRANSFERRED INTELLECTUAL
PROPERTY

     

    
      	
              1.  

            	
              Software
      License Agreements

            

    

     

    
      	
              a.  

            	
              CEMS
      (Continuous Emissions Monitoring System) Data loggers, server(s) and ESC
      Stackvision software license

            

    

    
      	
              b.  

            	
              REDTag
      (tag & lock out system) PC and software
  license

            

    

    
      	
              c.  

            	
              OSIsoft PI System & interfaces – Server and software2

            

    

    
      	
              d.  

            	
              ABB
      Optimax

            

    

     

    

     

    

      

    

      
      
        	
                 
      

              	
                2
      SW license for OSI is
      assignable contingent on Purchaser agreeing to 1 year of software
      maintenance with
OSIsoft.

              

      

       

    

    
      
        
          Schedule 1.1(f) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(g)

     

    PROJECT
EMPLOYEES

     

    

    
      	
              1.  

            	
              Brothers,
      Derek A.

            

    

    
      	
              2.  

            	
              Cairns,
      David James

            

    

    
      	
              3.  

            	
              Canillo,
      Jason John

            

    

    
      	
              4.  

            	
              Comella,
      Patricia Susan

            

    

    
      	
              5.  

            	
              Cooper,
      Randal J.

            

    

    
      	
              6.  

            	
              Fuentes,
      Felix Armando

            

    

    
      	
              7.  

            	
              Gillespie,
      Martin E.

            

    

    
      	
              8.  

            	
              Guadarrama,
      Anthony

            

    

    
      	
              9.  

            	
              Hankins,
      Adam Michael

            

    

    
      	
              10.  

            	
              Jackson,
      Christopher S.

            

    

    
      	
              11.  

            	
              Lubbe,
      Toni Ann

            

    

    
      	
              12.  

            	
              McCallum,
      Ronald

            

    

    
      	
              13.  

            	
              Millett,
      Thomas S.

            

    

    
      	
              14.  

            	
              Newcomb,
      Kevin

            

    

    
      	
              15.  

            	
              Olsen,
      Richard Warren

            

    

    
      	
              16.  

            	
              Otero,
      Jose A., Jr.

            

    

    
      	
              17.  

            	
              Poelma,
      John F.

            

    

    
      	
              18.  

            	
              Reitz,
      Gregory Joseph

            

    

    
      	
              19.  

            	
              Rettke,
      David J.

            

    

    
      	
              20.  

            	
              Schmitt,
      Sean

            

    

    
      	
              21.  

            	
              Seymour,
      Jimmy L.

            

    

    

    

     

    
      
        
          Schedule 1.1(g) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(h)

     

    STORES AND INVENTORY
METHODOLOGY

     

    

    New
inventory parts are valued at cost.  Used parts follow a split
valuation procedure in which parts that have been refurbished or repaired are
separately identified/tagged and valued by the plant as a percentage (75%, 50%
or 25%) of new part value based on the remaining usable life of such used
parts.

    

     

    
      
        
          Schedule 1.1(h) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
1.1(i)

     

    TRANSFERRED
PERMITS

     

    
      	
              1.  

            	
              Items
      1 – 5 and 8 (if transferable) set forth on Section 3.14(a)
      of Sellers’ Disclosure Schedule

            

    

     

    
      	
              2.  

            	
              Those
      Permits set forth on Section 3.16(d)
      of Sellers’ Disclosure Schedule

            

    

     

    

     

    
      
        
          Schedule 1.1(i) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
2.1.3

     

    EXCLUDED
ASSETS

     

    
      	
              1.  

            	
              All
      trade names, trademarks, service marks or logos owned by Sellers or their
      Affiliates but excluding the name “Bighorn,” which will be transferred to
      Nevada Power Company

            

    

     

    
      	
              2.  

            	
              Cash,
      cash equivalents, bank deposits, accounts and notes receivable (trade or
      otherwise) of Sellers, whether or not related to the
    Facility

            

    

     

    
      	
              3.  

            	
              All
      certificates of deposit, shares of stock, securities, evidences of
      indebtedness, interest in joint ventures, partnerships, limited liability
      companies and other entities

            

    

     

    
      	
              4.  

            	
              Contracts
      that are not Assigned Facility
Agreements

            

    

     

    
      	
              5.  

            	
              Any
      and all temporary structures and items of personal property owned by
      contractors and vendors providing services on or materials to the Site or
      for the Project (and any and all property of easement holders located on
      the easements)

            

    

     

    
      	
              6.  

            	
              Books
      and Records not being transferred comprising solely of records of
      employees not hired by Purchaser, financial statements of Sellers, and
      records relating to Excluded Assets

            

    

     

    
      	
              7.  

            	
              Any
      SCE RRSU Refund pursuant to the 2003 Settlement Agreement and the Amended
      and Restated 2003 Settlement Agreement and any refunds from overpayments
      made by Sellers into the trust accounts established under Revised MOU I
      and MOU II and Sellers’ share of any interest earned on the balance of
      such accounts, net of Sellers’ share of any trustee fees and out-of-pocket
      expenses deducted by trustee prior to
  distribution.

            

    

     

    
      	
              8.  

            	
              Embarq
      local phone service

            

    

     

    
      	
              9.  

            	
              Qwest
      long distance service

            

    

     

    
      	
              10.  

            	
              PBX
      / VM maintenance from Shared
Technologies

            

    

     

    
      	
              11.  

            	
              Wide
      Area Network / ATT service

            

    

     

    
      	
              12.  

            	
              Software
      License Agreements

            

    

     

    
      	
              a.  

            	
              ABB
      Ranger

            

    

    
      	
              b.  

            	
              SAP
      (FI - Financial, MM- Materials Management, WM - Work Management, HR- Human
      Resources)

            

    

    
      	
              c.  

            	
              PowerGADS
      - Generation Performance and
Reliability

            

    

    
      	
              d.  

            	
              SharePoint
      Document Management System

            

    

    
      	
              e.  

            	
              Reason
      - Root Cause Analysis

            

    

    
      	
              f.  

            	
              Primavera

            

    

    
      	
              g.  

            	
              nMarket

            

    

    
      	
              h.  

            	
              GenTrader

            

    

    
      	
              i.  

            	
              ENotify
      (PI Notification Tool)

            

    

    
      	
              j.  

            	
              OSI
      ActiveView

            

    

    
      	
              k.  

            	
              OSI
      RTPortal

            

    

    
      	
              l.  

            	
              MS
      Office

            

    

    
      	
              m.  

            	
              MS
      Exchange

            

    

    
      	
              n.  

            	
              All
      corporately licensed Desktop and Server
software

            

    

    
      	
              o.  

            	
              LAN
      Server Operating System

            

    

    
      	
              p.  

            	
              Trend
      Micro Virus Protection

            

    

    
      	
              q.  

            	
              Tape
      Backup software

            

    

    
      	
              r.  

            	
              Altiris
      Client Service software

            

    

    
      	
              s.  

            	
              SmartSignal3

            

    

     

    
      	
              13.  

            	
              Internally-Developed
      Owned Software

            

    

     

    
      	
              a.  

            	
              Trader.ems

            

    

    
      	
              b.  

            	
              Air
      Bulk Sampling System

            

    

    
      	
              c.  

            	
              ATRisk

            

    

    
      	
              d.  

            	
              CAMS
      "Comprehensive Allowance Management
System”

            

    

    
      	
              e.  

            	
              Drawings
      Index

            

    

    
      	
              f.  

            	
              EGIS

            

    

    
      	
              g.  

            	
              Power
      Generation Web

            

    

    
      	
              h.  

            	
              Outage
      Scheduling System

            

    

    
      	
              i.  

            	
              CMET
      - Contractor Time and Material

            

    

    
      	
              j.  

            	
              Employee
      Training & Certification System

            

    

    
      	
              k.  

            	
              Mobile
      Maintenance Services System

            

    

    
      	
              l.  

            	
              Fuelworks
      System

            

    

    
      	
              m.  

            	
              Welders
      Qualification System (WQS)

            

    

    
      	
              n.  

            	
              ISO
      Bid Tools

            

    

    
      	
              o.  

            	
              Scheduling
      & Settlements

            

    

    
      	
              p.  

            	
              Commercial
      Systems

            

    

    

     

    
      	
              14.  

            	
              Firm
      Transportation Service Agreement Contract No. 1716, dated May 29, 2001,
      between Kern River Gas Transmission Company and Reliant Energy Services,
      Inc., as amended by the First Amendment, dated July 13,
    2001

            

    

     

    

     

    

      

    

      
      3 Sellers will use commercially
reasonable efforts to obtain the licensor's agreement to transfer divisibly to
Purchaser the license to the software that is currently used at the
Facility

       

    

    
      
        
          Schedule 2.1.3 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.2(b)(iii)

     

    MATERIAL ASSIGNED FACILITY
AGREEMENTS

     

    

     

    
      	
              1.  

            	
              Lease
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm 120 Limited Partnership, as amended by that First Amendment to
      Lease, dated November 28, 2007

            

    

     

    
      	
              2.  

            	
              Amendment
      of Memorandum of Lease, dated November 28, 2007, between Primm 120 Limited
      Partnership and Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn,
  LLC

            

    

     

    
      	
              3.  

            	
              Agreement
      Regarding Water, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Primadonna Company, LLC

            

    

     

    
      	
              4.  

            	
              Stipulation
      and Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      The Primadonna Company, LLC, Primm South Real Estate Company and Primm 120
      Limited Partnership

            

    

     

    
      	
              5.  

            	
              Letter
      Update to Stipulation and Agreement, dated September 14, 2004, between
      Reliant Energy Wholesale Generation, LLC, as successor-in-interest to
      Reliant Energy Bighorn, LLC, The Primadonna Company, LLC, Primm South Real
      Estate Company and Primm 120 Limited
Partnership

            

    

     

    
      	
              6.  

            	
              Easement
      Agreement, dated August 31, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Primm South Real Estate Company, Primm 120 Limited Partnership, as
      amended by that First Amendment, dated November 28,
  2007

            

    

     

    
      	
              7.  

            	
              Easement
      Agreement B-2, dated November 28, 2007, by and among Primm 120 Limited
      Partnership, Reliant Energy Wholesale Generation, LLC and Nevada Power
      Company, as amended by the side letter, dated November 28,
      2007

            

    

     

    
      	
              8.  

            	
              Private
      Road Crossing Easement Agreement, dated December 12, 2002, between Reliant
      Energy Wholesale Generation, LLC, as successor-in-interest to Reliant
      Energy Bighorn, LLC, and Union Pacific Railroad
  Company

            

    

     

    
      	
              9.  

            	
              Pipeline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              10.  

            	
              Wireline
      Crossing Agreement, dated July 26, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Union Pacific Railroad Company

            

    

     

    
      	
              11.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15,
  2004

            

    

     

    
      	
              12.  

            	
              Cost
      Recovery Agreement, dated March 29, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management

            

    

     

    
      	
              13.  

            	
              Facilities
      Agreement, dated July 31, 2002, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and Kern River Gas Transmission
Company

            

    

     

    
      	
              14.  

            	
              Delivery
      Meter Station Facility Lease, dated July 31, 2002, between Reliant Energy
      Wholesale Generation, LLC, as successor-in-interest to Reliant Energy
      Bighorn, LLC, and Kern River Gas Transmission
  Company

            

    

     

    
      	
              15.  

            	
              Settlement
      and Mutual Release Agreement, dated as of February 1, 2007, between
      Reliant Energy Wholesale Generation, LLC and Alstom Power
    Inc.

            

    

     

    

     

    
      
        
          Schedule 5.2.(b)(iii)
- 

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
5.2(d)

     

    PERMITTED
ACTIONS

     

    

     

    
      	
              1.  

            	
              UEPA
      Application Permit to Construct the Reliant Energy Bighorn Electric
      Generating Station to El Dorado Substation Interconnect Project, dated
      January 22, 2007, before the Public Utilities Commission of
      Nevada

            

    

     

    
      	
              2.  

            	
              Application
      with Bureau of Land Management Seeking a Right-of-Way Grant in connection
      with the El Dorado Substation Interconnect Project, dated November 6,
      2006

            

    

     

    
      	
              3.  

            	
              Any
      other matter reasonably necessary to the UEPA filing for the Eldorado
      connection.

            

    

     

    

     

    
      
        
          Schedule 5.2(d) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    SELLERS’ DISCLOSURE
SCHEDULE

     

    Section
1.1(a):  Sellers’ Knowledge Persons

     

    

    
      	
              1.  

            	
              Dick
      Dusenbury

            

    

    
      	
              2.  

            	
              Matt
      Greek

            

    

    
      	
              3.  

            	
              Rogers
      Herndon

            

    

    
      	
              4.  

            	
              Mark
      Jacobs

            

    

    
      	
              5.  

            	
              Bill
      Oldham

            

    

    
      	
              6.  

            	
              Tamera
      Plocheck

            

    

    
      	
              7.  

            	
              David
      Sladic; provided, however, that the inclusion of David Sladic herein shall
      not constitute a waiver of the attorney client privilege or the work
      product doctrine.

            

    

    

     

    

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 1.1(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.4:  Consents and Actions

     

    
      	
              1.  

            	
              Tax
      Agreement among Reliant Energy Wholesale Generation, LLC, as a
      successor-in-interest to Reliant Energy Bighorn, LLC, Southern California
      Edison Company and Nevada Power Company, dated effective January 31,
      2003

            

    

     

    
      	
              2.  

            	
              Settlement
      Agreement among Reliant Energy Services, Inc., Reliant Energy Wholesale
      Generation, LLC, as a successor in interest to Reliant Energy Bighorn,
      LLC, Reliant Energy Arrow Canyon, LLC and Nevada Power Company, dated
      December 18, 2002 (only as to assignment of rights and obligations under
      §4(d))

            

    

     

    
      	
              3.  

            	
              Contract
      Number 4600019951, dated January 1, 2006, between Reliant Energy Wholesale
      Generation, LLC – Bighorn Station and Siemens Power Generation
      Inc.

            

    

     

    
      	
              4.  

            	
              Software
      License Agreements

            

    

    
      	
              a.  

            	
              OSIsoft
      PI System & interfaces – Server and
software

            

    

    
      	
              b.  

            	
              ABB
      Optimax

            

    

    

     

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.4 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.5:  Approvals and Filings

    

    
      	
              1.  

            	
              Federal
      Communications Commission Wireless Telecommunications Bureau Radio Station
      Authorization dated February 18,
2003

            

    

    
      	
              2.  

            	
              Administrative
      permit amendment approval from Clark County Department of Air Quality and
      Environmental Management with respect to
  transfer:

            

    

    
      	
              a.  

            	
              Title
      V, Part 70 Operating Permit No.
1550;

            

    

    
      	
              b.  

            	
              Title
      IV Operating Permit No. 1550; and

            

    

    
      	
              c.  

            	
              Site
      Air Permit - Authority to Construct/Operating Permit No. ATC/OP1550,
      Modification 2, Amendment 1

            

    

    
      	
              3.  

            	
              Approval
      from Clark County Department of Air Quality and Environmental Management
      with respect to:

            

    

    
      	
               
      

            	
              a.

            	
              Pending
      Application for Modification to Title V, Part 70 Operating Permit
      submitted May 2007

            

    

    
      	
              4.  

            	
              Approval
      of administrative modification from Nevada Division of Environmental
      Protection with respect to transfer
of:

            

    

    
      	
               
      

            	
              a.

            	
              Stormwater
      General Permit No. NVR 050000 (Notice of Termination and Notice of
      Intent)

            

    

    
      	
              5.  

            	
              Notification
      to Nevada Division of Water Resources with respect to Evaporation Pond
      Permit – Dam Permit No. J-547

            

    

    
      	
              6.  

            	
              Notification
      to USEPA with respect to Risk Management Program filings for ammonia
      storage and handling.

            

    

    
      	
              7.  

            	
              Notification
      to Nevada Division of Environmental Protection with respect to Chemical
      Accident Prevention Program Plan
filings.

            

    

    
      	
              8.  

            	
              Consent
      to assign from The Bureau of Land Management with respect
    to:

            

    

    
      	
              a.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15,
  2004

            

    

    
      	
              9.  

            	
              Notification
      by REWG to WECC and NERC (a) of transfer of ownership of Bighorn
      Generating Facility to Purchaser effective as of the Closing Date and (b)
      that effective as of the Closing Date, REWG is de-registered with WECC and
      NERC as a Generation Owner and Generation Operator for the Bighorn
      Generation Facility

            

    

    
      	
              10.  

            	
              Those
      items listed on Section 3.4 of Sellers’ Disclosure
  Schedule

            

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.5 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.7:  Sellers' Legal Proceedings

     

    None

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.7 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Section
      3.10(d):  Real Property – Material
  Liens

            

    

    

    None

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.10(d) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.10(f):  Real Property – Commitments to or Agreements with any
Governmental Authority Affecting the Use or Ownership of the Real
Property

    

    
      	
              1.  

            	
              Right-of-Way
      Grant N-74555, dated October 22, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management, as amended by that Partial
      Relinquishment and Amendment, dated September 15,
  2004

            

    

     

    
      	
              2.  

            	
              Cost
      Recovery Agreement, dated March 29, 2001, between Reliant Energy Wholesale
      Generation, LLC, as successor-in-interest to Reliant Energy Bighorn, LLC,
      and The Bureau of Land Management

            

    

     

    
      	
              3.  

            	
              Meteorological
      Data Agreement CBE 419, dated February 21, 2006, between Reliant Energy
      Wholesale Generation, LLC and Clark County,
  Nevada

            

    

     

    
      	
              4.  

            	
              Fire
      Suppression Water Quality Assurance Plan, dated June 5, 2003, between
      Clark County, Nevada Fire Department Fire Prevention Bureau and Reliant
      Energy Wholesale Generation, LLC

            

    

     

    
      	
              5.  

            	
              Rate
      Schedule FERC No. 6, dated May 31, 2006 and approved July 20, 2006,
      between Reliant Energy Wholesale Generation, LLC and Nevada Power
      Corporation

            

    

     

    
      	
              6.  

            	
              Settlement
      Agreement, dated May 31, 2006 and approved by FERC on July 20, 2006, by
      and among Reliant Wholesale Energy Generation, LLC and Nevada Power
      Company

            

    

     

    
      	
              7.  

            	
              Perpetual
      Avigation Easement Grant of Easement between Primm 120 Limited Partnership
      and Clark County Nevada

            

    

     

    
      	
              8.  

            	
              Risk
      Management Program for Bighorn Generating 100000182759 between Reliant
      Energy Wholesale Generation, LLC and United States Environmental
      Protection Agency

            

    

     

    
      	
              9.  

            	
              Chemical
      Accident Prevention Program Plan for Aqueous Ammonia Storage and Use for
      Bighorn Generating Station between Reliant Energy Wholesale Generation,
      LLC and Nevada Division of Environmental
  Protection

            

    

     

    
      	
              10.  

            	
              All
      Environmental Permits listed on Section 3.16(d) of Sellers’ Disclosure
      Schedule

            

    

     

    
      	
              11.  

            	
              The
      Facility Permits listed on Section 3.14(a) of Sellers' Disclosure
      Schedule

            

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.10(f) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.10(g):  Real Property – Agreements for the Sale, Exchange,
Encumbrance, Lease or Transfer of any of the Real Property or any Portion of the
Same by Sellers

    

    None

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.10(g) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.10(h):  Real Property – Notices of Non-Compliance with Applicable
Material Conditions, Covenants and Restrictions that Encumber the Real
Property

    

    None

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.10(h) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.11:  Materials and Equipment; Tangible Personal
Property

    

    Materials and
Equipment:

    

    None

     

    

    Tangible Personal
Property

    

    None

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.11 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.12:  Warranty Matters

    

    
      	
              1.  

            	
              Program
      Parts, Shop Repairs and Scheduled Outage Services Contract, dated
      September 30, 2002, between Reliant Energy Wholesale Generation, LLC, as
      successor-in-interest to Reliant Energy Bighorn, LLC, and Siemens
      Westinghouse Power Corporation, as amended by Amendment No. 1, dated June
      17, 2005 and Amendment No. 2, dated October 1,
  2006

            

    

     

    
      	
              2.  

            	
              Settlement
      and Mutual Release Agreement, dated as of February 1, 2007, between
      Reliant Energy Wholesale Generation, LLC and Alstom Power
    Inc.

            

    

     

    
      	
              3.  

            	
              Contract
      Number 4600019872, dated December 7, 2005, between Reliant Energy
      Wholesale Generation, LLC – Bighorn Station and Pall Advanced Separation
      Systems

            

    

     

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.12 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.14(a):  List of Facility Permits

     

    
      	
              1.  

            	
              Federal
      Communications Commission Wireless Telecommunications Bureau Radio Station
      Authorization dated February 18,
2003

            

    

    
      	
              2.  

            	
              Clark
      County Fire Department permits:

            

    

    
      	
               
      

            	
              a.

            	
              Permit
      for Storage of Hazardous Materials No.
  C-03443-1-2007;

            

    

    
      	
               
      

            	
              b.

            	
              Welding
      and hot work Permit No.
C-05292-3-2004;

            

    

    
      	
               
      

            	
              c.

            	
              Compressed
      Gases and Medical Gas Permit No. C-10825-1-2007;
  and

            

    

    
      	
               
      

            	
              d.

            	
              Flammable
      Combustible Permit No.
C-10826-1-2007.

            

    

    
      	
              3.  

            	
              Nevada
      State Fire Marshall: Hazardous Material Storage Permit No.
      51455-53266

            

    

    
      	
              4.  

            	
              Fire
      Suppression Water Quality Assurance Plan, dated June 5, 2003, between
      Clark County, Nevada Fire Department Fire Prevention Bureau and Reliant
      Energy Wholesale Generation, LLC

            

    

    
      	
              5.  

            	
              Nevada
      Department of Business &
Industry:

            

    

    
      	
              a.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0243

            

    

    
      	
              b.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0244

            

    

    
      	
              c.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0695

            

    

    
      	
              6.  

            	
              Clark
      County Business License No. 2000116-345, first licensed on July 20, 2004,
      issued to Reliant Energy Asset Management, LLC [Equipment Rental
      License]

            

    

    
      	
              7.  

            	
              Clark
      County Business License No. 2000004.935, first licensed on January 11,
      2006, issued to Reliant Energy Bighorn, LLC [Electric & Power
      License]

            

    

    
      	
              8.  

            	
              Clark
      County Department of Development Services Certificate of Occupancy, Permit
      No. 02-12442, issued September 20,
2003

            

    

    
      	
              9.  

            	
              [Fire protection water loop]4

            

    

    

    

      

    

      
      
        	
                 
      

              	
                4
      Page will be replaced when
      proper name of permit is
received.

              

      

       

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.14(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.14(b)(i):  Permit Parties

    

    None

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.14(b)(i) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.14(b)(ii):  Compliance with and Status of Facility
Permits

    

    
      	
               
      

            	
              Fees paid, awaiting
      renewal:

            

    

    
      	
              1.  

            	
              Nevada
      State Fire Marshall: Hazardous Material Storage Permit No.
      51455-53266

            

    

    
      	
              2.  

            	
              Nevada
      Division of Environmental Protection Stormwater General Permit No.
      NVR 050000

            

    

    

    Certificate
will not be issued until units have been observed
running:

    
      	
              1.  

            	
              Nevada
      Department of Business &
Industry

            

    

    
      	
              a.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0243

            

    

    
      	
              b.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0244

            

    

    
      	
              c.  

            	
              Boiler/Pressure
      Vessel Operating Permit No. 02-0695

            

    

    

    

    

     

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.14(b)(ii) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Section
      3.15  List of Insurance
Policies

            

    

    

    
      	
              Type
      of Policy

            	
              Coverage

            	
              Limits

            	
              Deductible

            	
              Policy
      Begin

            	
              Policy
      End

            
	
              Auto
      Liability (NO CLAIMS)

            	
              Fronting
      policy - auto liability

            	
              $2,000,000

            	
              $2,000,000

            	
              1/1/2008

            	
              1/1/2009

            
	
              Workers'
      Compensation

              (3
      Total claims; 1 still open; total paid out $19,492.81 with $14,722 reserve
      outstanding on one open claim)

            	
              Workers'
      Compensation coverage including Employer's Liability, USL&H, OCS,
      FELA

              Large
      Deductible Program

            	
              Workers'
      Compensation – statutory

              Employer's
      Liability -- $1,000,000 each accident, bodily injury by disease; policy
      limit bodily injury by disease; each person

            	
              $500,000
      each accident

            	
              1/1/2008

            	
              1/1/2009

            
	
              Commercial
      Crime

              (NO
      CLAIMS)

            	
              Insuring
      Agreement 1 - Employee Theft

              Insuring
      Agreement 2 - Forgery or Alteration

              Insuring
      Agreement 2 - Forgery or Alteration

              Insuring
      Agreement 3 - Inside Premises - Money and Securities

              Insuring
      Agreement 4 - Inside Premises - Robbery and Safe Burglary

              insuring
      Agreement 5 - Outside the Premise

            	
              $15,000,000
      per occurrence

            	
              $1,000,000
      each wrongful act

            	
              3/15/2008

            	
              3/15/2009

            
	
              Excess
      Liability

              (NO
      CLAIMS)

            	
              Third
      party liability including bodily injury, property damage, or personal
      injury caused by an occurrence.  CLAIMS FIRST MADE
      POLICY.

              Includes
      Terrorism Coverage for first $35 Million only

            	
              $150,000,000
      Per occurrence, except

              $150,000,000
      aggregate limit of liability for product/completed operations, failure to
      supply hazard, and pollution hazard

            	
              $2,000,000
      any one occurrence

            	
              3/15/2008

            	
              3/15/2009

            
	
              Fiduciary
      & Employee Benefits Liability

              (NO
      CLAIMS)

            	
              Coverage
      for alleged wrongful acts, errors and/or omissions related to
      administration or handling of employee benefit plans.

            	
              $25,000,000
      each wrongful act

              $25,000,000
      aggregate limit of liability

            	
              $0
      for each natural person who is an insured: and $0 annual aggregate for
      individuals

              $1,000,000
      aggregate for Sponsor Organization and all Employee Benefit Programs with
      respect to each Wrongful Act

              $2,500,000
      aggregate for any Claim in whole or in part

            	
              3/15/2008

            	
              3/15/2009

            
	
              Boiler
      & Machinery – Jurisdictional (NO CLAIMS)

               

            	
              Boiler
      & Machinery - jurisdictional loss control inspections

            	
              $5,000

            	
              $5,000

            	
              3/1/2008

            	
              3/1/2009

            
	
              Property/Business
      Interruption

              (NO
      CLAIMS)

            	
              Operational
      Property, Boiler & Machinery and Business Interruption

            	
              For
      Physical Damage (PD) --  $450 Million total except California
      quake = $300 Million total

              For
      Business Interruption (BI) -- $200 Million total except California quake =
      $50 Million total

              Unscheduled
      Locations/Offsite Storage - $25 Million sublimit

            	
              Physical
      Damage -- $10 Million PD each occurrence

              5%
      effected property values as respects CA earthquake ($10 MM minimum ) and
      2% effective property values a

            	
              5/1/2007

            	
              5/1/2008

            

    

    

    NOTE:
There are no specific policies on individual plants.  Coverage is
placed at a corporate level and assets sold are eliminated from policies in
force at the time of the sale

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.15 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.16:  Environmental Matters

    

    None

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.16 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.16(d):  Material Environmental Permits

    

    
      	
              1.  

            	
              Clark
      County Department of Air Quality and Environmental
    Management:

            

    

    
      	
              a.  

            	
              Title
      V, Part 70 Operating Permit No.
1550;

            

    

    
      	
              b.  

            	
              Title
      IV Operating Permit No. 1550;

            

    

    
      	
              c.  

            	
              Site
      Air Permit - Authority to Construct/Operating Permit No. ATC/OP1550,
      Modification 2, Amendment 1; and

            

    

    
      	
              d.  

            	
              Pending
      Application for Modification to Title V, Part 70 Operating Permit
      submitted May 2007

            

    

    
      	
              2.  

            	
              Nevada
      Division of Environmental
Protection:

            

    

    
      	
              a.  

            	
              Authorization
      to Discharge Permit No. NEV2002500;

            

    

    
      	
              b.  

            	
              Stormwater
      General Permit No. NVR 050000; and

            

    

    
      	
              c.  

            	
              Hazardous
      Waste Storage ID

            

    

    
      	
              3.  

            	
              Nevada
      Division of Water Resources: Evaporation Pond Permit – Dam Permit No.
      J-547

            

    

    
      	
              4.  

            	
              Clark
      County Health District: Septic System Permit No.
    SM045-ZZZ-00

            

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.16(d) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              Section
      3.18(b):  Seller Plans

            

    

    

    
      	
              1.  

            	
              Reliant
      Energy, Inc. Savings Plan

            

    

    
      	
              2.  

            	
              Reliant
      Energy, Inc. Group Welfare Benefits
Plan

            

    

    
      	
              3.  

            	
              Reliant
      Energy, Inc. Employee Stock Purchase
Plan

            

    

    
      	
              4.  

            	
              Reliant
      Energy, Inc. 2002 Stock Plan

            

    

    
      	
              5.  

            	
              Reliant
      Energy, Inc. Annual Incentive Compensation
Plan

            

    

    
      	
              6.  

            	
              Reliant
      Energy, Inc. Deferral Plan

            

    

    
      	
              7.  

            	
              Reliant
      Energy, Inc. 2003 Involuntary Severance Benefits Plan for Employees with
      Annual Base Pay Less than $150,000

            

    

    
      	
              8.  

            	
              Reliant
      Energy, Inc. 2003 Involuntary Severance Benefits Plan for Employees with
      Annual Base Pay At Least $150,000 But Less Than
  $200,000

            

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.18(b) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.20(a):  Intellectual Property

    

    None

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.20(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
3.20(b):  Infringement of Intellectual Property

    

    None

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 3.20(b) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
5.11(a):  Support Obligations

    

    
      	
              1.  

            	
              Guaranty
      Agreement, dated August 31, 2001, from Reliant Energy Power Generation for
      the benefit of Primm 120 Limited
Partnership

            

    

     

    
      	
              2.  

            	
              Amended
      and Restated Guaranty for $49,380,000, dated July 6, 2001, from Reliant
      Energy, Inc. for the benefit of Nevada Power
  Company

            

    

     

    
      	
              3.  

            	
              Prepayments/cash
      collateral and deposit posted by Reliant Energy Services, Inc. to Nevada
      Power Company in connection with the Service Agreement No. 90 for
      Long-Term Firm Point-to-Point Transmission Service, dated July 5,
      2001

            

    

     

    
      	
              4.  

            	
              Guaranty
      for $10,298,550, dated July 31, 2002, from Reliant Energy, Inc. for the
      benefit of Kern River Gas Transmission
Company

            

    

     

    
      	
              5.  

            	
              Letter
      of Credit for $3,297,181 by Reliant Energy Wholesale Generation, LLC for
      the benefit of Kern River Gas Transmission
  Company

            

    

     

    
      	
              6.  

            	
              Guaranty
      Agreement dated as of September 30, 2002 by Reliant Energy Power
      Generation, Inc. for the benefit of Siemens Westinghouse Power
      Corporation, to the extent such guaranty covers obligations of Reliant
      Energy Wholesale Generation, LLC under the Program Parts, Shop Repairs and
      Scheduled Outage Services Contract, dated September 30, 2002, between
      Reliant Energy Wholesale Generation, LLC, as successor-in-interest to
      Reliant Energy Bighorn, LLC, and Siemens Westinghouse Power Corporation,
      as amended

            

    

     

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 5.11(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
9.1:  Tax Matters Exceptions

    

    Section (e):
Tax Audits or Examinations.

     

    For
federal income tax purposes Sellers are disregarded entities of Reliant Energy
Power Generation, Inc. (“REPG”). The federal consolidated income tax return of
which REPG is a member is the consolidated return of REI.  REI is
currently under audit by the IRS as the result of a Form 1139 filed to carryback
an NOL from its October 1, 2002 to December 31, 2002 short tax year to the
consolidated December 31, 1998 tax year of its former parent company,
CenterPoint Energy, Inc.  This audit resulted in proposed adjustments
to this NOL and those adjustments have been protested.  That protest
is currently under review by the IRS Appellate Conferee in Houston,
TX.

     

    REI is
currently under audit by the IRS for the tax periods ended December 31, 2003 and
December 31, 2004.  This audit has been concluded and a Revenue
Agent’s Report proposing certain adjustments was issued on April 30,
2007.  The proposed adjustments have been protested by
REI.  That protest is currently under review by the IRS Appellate
Conferee in Houston, TX.

    

    REI is
currently under audit by the IRS for the tax periods ended December 31, 2005 and
December 31, 2006.  These audits are currently ongoing at the IRS
Examination level and no adjustments have yet been proposed by the
IRS.

    

    CenterPoint
Energy, Inc. (“CNP”) is currently under audit by the IRS for its consolidated
tax year ending December 31, 2002, for part of which REPG was a member of that
consolidated group (for the period from January 1, 2002 to September 30,
2002).  That audit has been concluded and a Revenue Agent’s Report
proposing certain adjustments was issued on January 30, 2006.  The
proposed adjustments have been protested by CNP.  That protest is
currently under review by the IRS Appellate Conferee in Houston,
TX.

    

    

    
      
        
          Sellers’ Disclosure
Schedule

          Section 9.1 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    PURCHASER’S DISCLOSURE
SCHEDULE

     

    Section
1.1(a):  Purchaser’s Knowledge Persons

     

    

     

    
      	
              1.  

            	
              William
      D. Rogers

            

    

    
      	
              2.  

            	
              Naveed
      Mughal

            

    

    
      	
              3.  

            	
              Jason
      Menzel

            

    

    
      	
              4.  

            	
              Roberto
      Denis

            

    

    
      	
              5.  

            	
              Colleen
      Rice; provided, however, that the inclusion of Colleen Rice herein shall
      not constitute a waiver of the attorney client privilege or the work
      product doctrine.

            

    

    

     

    
      
        
          Purchaser’s
Disclosure Schedule

          Section 1.1(a) -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
4.5:  Approvals and Filings

     

    
      	
              1.  

            	
              Registration
      by Purchaser with WECC and NERC as the Generation Owner and Generation
      Operator for the Bighorn Generation Facility effective as of the Closing
      Date.

            

    

     

    

     

    
      
        
          Purchaser’s
Disclosure Schedule

          Section 4.5 -

        

         

      

      
         

        
          

        

      

      
         

      

    

    Section
4.6:  Purchaser’s Legal Proceedings

     

    None

     

    
      
        
          Purchaser’s
Disclosure Schedule

          Section 4.5 -exhibit10-01.htm

    
       

       

      
         

        
          Execution
Version                                                     
 Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

    Execution
Version

     

     

    ENGINEERING,
PROCUREMENT AND CONSTRUCTION

     

    AGREEMENT

     

     

     

    BETWEEN

     

     

     

    SOUTH
CAROLINA ELECTRIC & GAS COMPANY, FOR ITSELF AND

     

    AS
AGENT FOR THE SOUTH CAROLINA PUBLIC SERVICE

     

    AUTHORITY,
AS OWNER

     

     

     

    AND

     

     

     

    A
CONSORTIUM CONSISTING OF WESTINGHOUSE ELECTRIC

     

    COMPANY
LLC AND STONE & WEBSTER, INC., AS CONTRACTOR

     

     

     

    FOR

     

     

     

    AP1000
NUCLEAR POWER PLANTS

     

    DATED
AS OF MAY 23, 2008

     

     

     

     

     

     

     

     

     

     

    
      
        
          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                        
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

          TABLE
OF CONTENTS

           

          Page

           

        

      

    

    
      	
              ARTICLE
      1

            	
              –
      DEFINITIONS 

            	
              2

            

    

     

    
      	
              ARTICLE
      2

            	
              –
      INTERPRETATION 

            	
              16

            

    

     

    
      	
              ARTICLE
      3

            	
              –
      SCOPE OF WORK 

            	
              17

            

    

     

    
      	
               
      

            	
              3.1

            	
              General 

            	
              17

            

    

     

    
      	
               
      

            	
              3.2

            	
              Phases
      of the Work 

            	
              17

            

    

     

    
      	
               
      

            	
              3.3

            	
              Project
      Schedule 

            	
              18

            

    

     

    
      	
               
      

            	
              3.4

            	
              Not
      Used 

            	
              18

            

    

     

    
      	
               
      

            	
              3.5

            	
              Contractor
      Responsibilities 

            	
              19

            

    

     

    
      	
               
      

            	
              3.6

            	
              Owner's
      Responsibilities 

            	
              21

            

    

     

    
      	
               
      

            	
              3.7

            	
              Subcontractors 

            	
              23

            

    

     

    
      	
              ARTICLE
      4

            	
              –
      FACILITY LICENSES, PERMITS AND
APPROVALS27

            

    

     

    
      	
               
      

            	
              4.1

            	
              Owner
      Permits 

            	
              27

            

    

     

    
      	
               
      

            	
              4.2

            	
              Contractor
      Permits 

            	
              28

            

    

     

    
      	
               
      

            	
              4.3

            	
              ITAACs 

            	
              28

            

    

     

    
      	
              ARTICLE
      5

            	
              –
      QUALITY ASSURANCE 

            	
              28

            

    

     

    
      	
               
      

            	
              5.1

            	
              Quality
      Assurance 

            	
              28

            

    

     

    
      	
               
      

            	
              5.2

            	
              Reporting
      of Defects, Noncompliance, Failures and Breakdowns of QA
      Programs 

            	
              29

            

    

     

    
      	
               
      

            	
              5.3

            	
              Quality
      Control and Inspection Activities 

            	
              30

            

    

     

    
      	
               
      

            	
              5.4

            	
              Access
      and Auditing at Contractor Facilities 

            	
              30

            

    

     

    
      	
               
      

            	
              5.5

            	
              Access
      and Audits at Subcontractors' Facilities 

            	
              30

            

    

     

    
      	
               
      

            	
              5.6

            	
              Witness
      and Hold Points 

            	
              31

            

    

     

    
      	
               
      

            	
              5.7

            	
              Owner's
      Right to Inspect and Stop Work 

            	
              32

            

    

     

    
      	
              ARTICLE
      6

            	
              –
      CONTRACT PRICE 

            	
              32

            

    

     

    
      	
               
      

            	
              6.1

            	
              Components
      of the Contract Price 

            	
              32

            

    

     

    
      	
               
      

            	
              6.2

            	
              [**] 

            	
              32

            

    

     

    
      	
               
      

            	
              6.3

            	
              [**] 

            	
              33

            

    

     

    
      	
              ARTICLE
      7

            	
              –
      PRICE ADJUSTMENT PROVISIONS 

            	
              34

            

    

     

    
      	
              ARTICLE
      8

            	
              –
      PAYMENTS 

            	
              34

            

    

     

    
      	
               
      

            	
              8.1

            	
              [**] 

            	
              34

            

    

     

    
      
        
          
            	 
      	
                    -i-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                 
                      
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

          TABLE
OF CONTENTS

          (continued)

          Page

           

        

      

    

    
      	
               
      

            	
              8.2

            	
              Milestone
      Payments 

            	
              35

            

    

     

    
      	
               
      

            	
              8.3

            	
              Final
      Payment 

            	
              35

            

    

     

    
      	
               
      

            	
              8.4

            	
              Supporting
      Documentation; Payment Disputes 

            	
              36

            

    

     

    
      	
               
      

            	
              8.5

            	
              No
      Acceptance by Payment 

            	
              37

            

    

     

    
      	
               
      

            	
              8.6

            	
              Security
      for Payment and Performance 

            	
              37

            

    

     

    
      	
               
      

            	
              8.7

            	
              Separate
      Payments for Consortium Members 

            	
              38

            

    

     

    
      	
              ARTICLE
      9

            	
              –
      CHANGES IN THE WORK 

            	
              38

            

    

     

    
      	
               
      

            	
              9.1

            	
              Entitlement
      to Change Order 

            	
              38

            

    

     

    
      	
               
      

            	
              9.2

            	
              Owner-Directed
      Changes 

            	
              39

            

    

     

    
      	
               
      

            	
              9.3

            	
              Effect
      of Changes 

            	
              39

            

    

     

    
      	
               
      

            	
              9.4

            	
              Change
      Orders 

            	
              40

            

    

     

    
      	
               
      

            	
              9.5

            	
              Disputes
      over Changes 

            	
              41

            

    

     

    
      	
               
      

            	
              9.6

            	
              Changes
      for Contractor's Convenience 

            	
              41

            

    

     

    
      	
               
      

            	
              9.7

            	
              Optional
      Services and Equipment 

            	
              42

            

    

     

    
      	
               
      

            	
              9.8

            	
              [**] 

            	
              42

            

    

     

    
      	
              ARTICLE
      10

            	
              –
      UNCONTROLLABLE CIRCUMSTANCES 

            	
              42

            

    

     

    
      	
               
      

            	
              10.1

            	
              Performance
      Excused 

            	
              42

            

    

     

    
      	
               
      

            	
              10.2

            	
              Notice 

            	
              42

            

    

     

    
      	
              ARTICLE
      11

            	
              –
      TESTING 

            	
              43

            

    

     

    
      	
               
      

            	
              11.1

            	
              Scope
      and Objective of Testing 

            	
              43

            

    

     

    
      	
               
      

            	
              11.2

            	
              Construction
      and Installation Tests 

            	
              43

            

    

     

    
      	
               
      

            	
              11.3

            	
              Preoperational
      System Tests 

            	
              44

            

    

     

    
      	
               
      

            	
              11.4

            	
              Startup
      Tests Objectives and Protocol 

            	
              45

            

    

     

    
      	
               
      

            	
              11.5

            	
              Performance
      Tests 

            	
              47

            

    

     

    
      	
               
      

            	
              11.6

            	
              Net
      Unit Electrical Output Guarantee 

            	
              49

            

    

     

    
      	
              ARTICLE
      12

            	
              –
      STAGES OF COMPLETION 

            	
              51

            

    

     

    
      	
               
      

            	
              12.1

            	
              Turnover 

            	
              51

            

    

     

    
      	
               
      

            	
              12.2

            	
              Preoperational
      Test Completion 

            	
              52

            

    

     

    
      	
               
      

            	
              12.3

            	
              Startup
      Test Completion 

            	
              52

            

    

     

    
      	
               
      

            	
              12.4

            	
              Substantial
      Completion 

            	
              53

            

    

     

    
      
        
          
            	 
      	
                    -ii-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commision.

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                        
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

          TABLE
OF CONTENTS

          (continued)

          Page

           

        

      

    

    
      	
               
      

            	
              12.5

            	
              Punch
      List 

            	
              53

            

    

     

    
      	
               
      

            	
              12.6

            	
              Final
      Completion 

            	
              53

            

    

     

    
      	
              ARTICLE
      13

            	
              –
      [**] 

            	
              54

            

    

     

    
      	
               
      

            	
              13.1

            	
              [**] 

            	
              54

            

    

     

    
      	
               
      

            	
              13.2

            	
              [**] 

            	
              55

            

    

     

    
      	
               
      

            	
              13.3

            	
              [**] 

            	
              55

            

    

     

    
      	
               
      

            	
              13.4

            	
              [**] 

            	
              55

            

    

     

    
      	
              ARTICLE
      14

            	
              –
      WARRANTY 

            	
              56

            

    

     

    
      	
               
      

            	
              14.1

            	
              Equipment 

            	
              56

            

    

     

    
      	
               
      

            	
              14.2

            	
              Services
      Warranty 

            	
              60

            

    

     

    
      	
               
      

            	
              14.3

            	
              Warranty
      of Title 

            	
              60

            

    

     

    
      	
               
      

            	
              14.4

            	
              [**] 

            	
              61

            

    

     

    
      	
               
      

            	
              14.5

            	
              [**] 

            	
              62

            

    

     

    
      	
               
      

            	
              14.6

            	
              [**] 

            	
              62

            

    

     

    
      	
              ARTICLE
      15

            	
              –
      INDEMNITY 

            	
              62

            

    

     

    
      	
               
      

            	
              15.1

            	
              Contractor
      Indemnity 

            	
              62

            

    

     

    
      	
               
      

            	
              15.2

            	
              Owner's
      Indemnity 

            	
              63

            

    

     

    
      	
               
      

            	
              15.3

            	
              [**] 

            	
              63

            

    

     

    
      	
               
      

            	
              15.4

            	
              [**] 

            	
              64

            

    

     

    
      	
               
      

            	
              15.5

            	
              [**] 

            	
              65

            

    

     

    
      	
              ARTICLE
      16

            	
              –
      INSURANCE 

            	
              66

            

    

     

    
      	
               
      

            	
              16.1

            	
              Phase
      I Insurance Requirements 

            	
              66

            

    

     

    
      	
               
      

            	
              16.2

            	
              Phase
      II Insurance Requirements 

            	
              67

            

    

     

    
      	
               
      

            	
              16.3

            	
              Provisions
      Applicable to all Coverages 

            	
              69

            

    

     

    
      	
              ARTICLE
      17

            	
              –
      [**] 

            	
              70

            

    

     

    
      	
               
      

            	
              17.1

            	
              [**] 

            	
              70

            

    

     

    
      	
               
      

            	
              17.2

            	
              [**] 

            	
              70

            

    

     

    
      	
               
      

            	
              17.3

            	
              [**] 

            	
              71

            

    

     

    
      	
              ARTICLE
      18

            	
              –
      LIENS 

            	
              71

            

    

     

    
      	
               
      

            	
              18.1

            	
              Liens 

            	
              71

            

    

     

    
      
        
          
            	 
      	
                    -iii-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commision.

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                        
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

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OF CONTENTS

          (continued)

          Page

           

        

      

    

    
      	
               
      

            	
              18.2

            	
              Discharge
      or Bond 

            	
              71

            

    

     

    
      	
              ARTICLE
      19

            	
              –
      PROPRIETARY DATA 

            	
              72

            

    

     

    
      	
               
      

            	
              19.1

            	
              Protection
      of Owner Proprietary Data 

            	
              72

            

    

     

    
      	
               
      

            	
              19.2

            	
              Protection
      of Contractor's Proprietary Data 

            	
              73

            

    

     

    
      	
               
      

            	
              19.3

            	
              Special
      Procedures Pertaining to Contractor's Proprietary
  Data75

            

    

     

    
      	
               
      

            	
              19.4

            	
              Ownership
      of Rights in Documentation 

            	
              79

            

    

     

    
      	
               
      

            	
              19.5

            	
              Ownership
      of Invention Rights 

            	
              79

            

    

     

    
      	
               
      

            	
              19.6

            	
              Software 

            	
              80

            

    

     

    
      	
               
      

            	
              19.7

            	
              Publicity 

            	
              80

            

    

     

    
      	
              ARTICLE
      20

            	
              –
      ENVIRONMENTAL; HAZARDOUS MATERIALS 

            	
              80

            

    

     

    
      	
               
      

            	
              20.1

            	
              Material
      Safety Data Sheets 

            	
              80

            

    

     

    
      	
               
      

            	
              20.2

            	
              Facility
      Use, Storage Removal 

            	
              80

            

    

     

    
      	
               
      

            	
              20.3

            	
              Handling,
      Collection, Removal Transportation and Disposal 

            	
              80

            

    

     

    
      	
               
      

            	
              20.4

            	
              Notice
      of Discovery 

            	
              81

            

    

     

    
      	
              ARTICLE
      21

            	
              –
      TITLE; RISK OF LOSS 

            	
              81

            

    

     

    
      	
               
      

            	
              21.1

            	
              Transfer
      of Title 

            	
              81

            

    

     

    
      	
               
      

            	
              21.2

            	
              Risk
      of Loss 

            	
              81

            

    

     

    
      	
               
      

            	
              21.3

            	
              [**] 

            	
              82

            

    

     

    
      	
              ARTICLE
      22

            	
              –
      SUSPENSION AND TERMINATION 

            	
              82

            

    

     

    
      	
               
      

            	
              22.1

            	
              Suspension
      by the Owner for Convenience 

            	
              82

            

    

     

    
      	
               
      

            	
              22.2

            	
              Termination
      by Owner for Cause 

            	
              83

            

    

     

    
      	
               
      

            	
              22.3

            	
              Termination
      by Owner for Convenience 

            	
              84

            

    

     

    
      	
               
      

            	
              22.4

            	
              Suspension
      and Termination Due to Other Circumstances 

            	
              84

            

    

     

    
      	
               
      

            	
              22.5

            	
              Termination
      by Contractor 

            	
              86

            

    

     

    
      	
               
      

            	
              22.6

            	
              Actions
      Required of Contractor upon Termination 

            	
              87

            

    

     

    
      	
              ARTICLE
      23

            	
              –
      SAFETY; INCIDENT REPORTING 

            	
              87

            

    

     

    
      	
               
      

            	
              23.1

            	
              Environmental,
      Health and Safety Programs 

            	
              87

            

    

     

    
      	
               
      

            	
              23.2

            	
              Designated
      Contractor Safety Representative 

            	
              87

            

    

     

    
      	
               
      

            	
              23.3

            	
              OSHA
      and Other Laws 

            	
              88

            

    

     

    
      	
               
      

            	
              23.4

            	
              Worksite
      Safety 

            	
              89

            

    

     

    
      
        
          
            	 
      	
                    -iv-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commision.

        

         

      

      
         

        
        

      

      
         

        
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              23.5

            	
              Dangerous
      Materials 

            	
              89

            

    

     

    
      	
               
      

            	
              23.6

            	
              Cooperation
      in Governmental Investigations and Inspections 

            	
              89

            

    

     

    
      	
               
      

            	
              23.7

            	
              Audit 

            	
              89

            

    

     

    
      	
              ARTICLE
      24

            	
              –
      QUALIFICATIONS AND PROTECTION OF ASSIGNED PERSONNEL 

            	
              90

            

    

     

    
      	
               
      

            	
              24.1

            	
              Screening
      Measures 

            	
              90

            

    

     

    
      	
               
      

            	
              24.2

            	
              Contractor's
      Personnel 

            	
              90

            

    

     

    
      	
               
      

            	
              24.3

            	
              Training
      of Employees 

            	
              91

            

    

     

    
      	
               
      

            	
              24.4

            	
              NRC
      Whistleblower Provision 

            	
              91

            

    

     

    
      	
               
      

            	
              24.5

            	
              Respirator
      Protection 

            	
              91

            

    

     

    
      	
              ARTICLE
      25

            	
              –
      RECORDS AND AUDIT 

            	
              91

            

    

     

    
      	
               
      

            	
              25.1

            	
              Technical
      Documentation 

            	
              91

            

    

     

    
      	
               
      

            	
              25.2

            	
              Accounting
      Records 

            	
              92

            

    

     

    
      	
               
      

            	
              25.3

            	
              Maintenance
      of Records Generally 

            	
              92

            

    

     

    
      	
               
      

            	
              25.4

            	
              Right
      to Audit 

            	
              92

            

    

     

    
      	
               
      

            	
              25.5

            	
              Sales
      Tax Records 

            	
              92

            

    

     

    
      	
              ARTICLE
      26

            	
              –
      TAXES 

            	
              93

            

    

     

    
      	
               
      

            	
              26.1

            	
              Employment
      Taxes 

            	
              93

            

    

     

    
      	
               
      

            	
              26.2

            	
              Sales
      and Use Taxes on Contractor Tools 

            	
              93

            

    

     

    
      	
               
      

            	
              26.3

            	
              Sales
      and Use Tax on Equipment 

            	
              93

            

    

     

    
      	
               
      

            	
              26.4

            	
              State
      Property Taxes 

            	
              93

            

    

     

    
      	
               
      

            	
              26.5

            	
              Tax
      Indemnification 

            	
              94

            

    

     

    
      	
               
      

            	
              26.6

            	
              Pollution
      Control Equipment Information 

            	
              94

            

    

     

    
      	
               
      

            	
              26.7

            	
              Non-resident
      Contractor 

            	
              94

            

    

     

    
      	
              ARTICLE
      27

            	
              –
      DISPUTE RESOLUTION 

            	
              94

            

    

     

    
      	
               
      

            	
              27.1

            	
              Claims 

            	
              94

            

    

     

    
      	
               
      

            	
              27.2

            	
              Change
      Dispute 

            	
              95

            

    

     

    
      	
               
      

            	
              27.3

            	
              Resolution
      by Negotiation 

            	
              95

            

    

     

    
      	
               
      

            	
              27.4

            	
              Mediation 

            	
              96

            

    

     

    
      	
               
      

            	
              27.5

            	
              Arbitration
      of Claims[**] 

            	
              96

            

    

     

    
      
        
          
            	 
      	
                    -v-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commision.

        

         

      

      
         

        
        

      

      
         

        
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              27.6

            	
              Exclusive
      Resolution Procedures; Equitable Remedies 

            	
              98

            

    

     

    
      	
               
      

            	
              27.7

            	
              Consent
      to Jurisdiction 

            	
              98

            

    

     

    
      	
               
      

            	
              27.8

            	
              Continuation
      of Work 

            	
              99

            

    

     

    
      	
              ARTICLE
      28

            	
              –
      NOTICES 

            	
              99

            

    

     

    
      	
              ARTICLE
      29

            	
              –
      ASSIGNMENT 

            	
              101

            

    

     

    
      	
              ARTICLE
      30

            	
              –
      WAIVER 

            	
              101

            

    

     

    
      	
              ARTICLE
      31

            	
              –
      MODIFICATION 

            	
              101

            

    

     

    
      	
              ARTICLE
      32

            	
              –
      SURVIVAL 

            	
              101

            

    

     

    
      	
              ARTICLE
      33

            	
              –
      TRANSFER 

            	
              101

            

    

     

    
      	
              ARTICLE
      34

            	
              –
      GOVERNING LAW; WAIVER OF JURY TRIAL; CERTAIN FEDERAL
      LAWS 

            	
              102

            

    

     

    
      	
               
      

            	
              34.1

            	
              Governing
      Law 

            	
              102

            

    

     

    
      	
               
      

            	
              34.2

            	
              Waiver
      of Jury Trial 

            	
              102

            

    

     

    
      	
               
      

            	
              34.3

            	
              Certain
      Federal Laws 

            	
              102

            

    

     

    
      	
              ARTICLE
      35

            	
              –
      RELATIONSHIP OF OWNER AND
CONTRACTOR102

            

    

     

    
      	
              ARTICLE
      36

            	
              –
      THIRD PARTY BENEFICIARIES 

            	
              102

            

    

     

    
      	
              ARTICLE
      37

            	
              –
      REPRESENTATIONS AND WARRANTIES 

            	
              103

            

    

     

    
      	
               
      

            	
              37.1

            	
              Representations
      and Warranties of Contractor 

            	
              103

            

    

     

    
      	
               
      

            	
              37.2

            	
              Representations
      and Warranties of SCE&G and Santee
Cooper103

            

    

     

    
      	
              ARTICLE
      38

            	
              –
      MISCELLANEOUS PROVISIONS 

            	
              104

            

    

     

    
      	
               
      

            	
              38.1

            	
              Rights
      Exclusive 

            	
              104

            

    

     

    
      	
               
      

            	
              38.2

            	
              Severability 

            	
              104

            

    

     

    
      	
               
      

            	
              38.3

            	
              Entire
      Agreement 

            	
              105

            

    

     

    
      	
               
      

            	
              38.4

            	
              Counterparts 

            	
              105

            

    

     

     

     

     

    
      
        
          
            	 
      	
                    -vi-

                  	 
      

          

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commision.

        

         

      

      
         

        
        

      

      
         

        
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    EXHIBITS

     

    
      	
              Exhibit

            	
              Description of
      Exhibit

            
	
              A

            	
              Scope
      of Work/Supply and Division of Responsibilities

            
	
              B

            	
              Contractor
      Organization Chart

            
	
              C

            	
              Owner
      and Contractor Permits

            
	
              D

            	
              Project
      Execution Plan Processes

            
	
              E

            	
              Project
      Schedule

            
	
              F-1

            	
              Milestone
      Payment Schedule

            
	
              F-2

            	
              Payment
      Plan

            
	
              G

            	
              [**]

            
	
              H

            	
              Pricing

            
	
              I-1

            	
              Toshiba
      Parent Guaranty

            
	
              I-2

            	
              Shaw
      Parent Guaranty

            
	
              J

            	
              Price
      Adjustment Provisions

            
	
              K

            	
              Costs

            
	
              L

            	
              Net
      Electric Guarantee Conditions and Load List

            
	
              M-1

            	
              Software
      License

            
	
              M-2

            	
              AP1000
      Intellectual Property License (WEC)

            
	
              M-3

            	
              AP1000
      Intellectual Property License (S&W)

            
	
              N

            	
              Industry
      Codes and Standards

            
	
              O-1

            	
              Proprietary
      Data Agreement

            
	
              O-2

            	
              List
      of Intellectual Property Subject to Third Party License
    Terms

            
	
              P-1

            	
              Major
      Subcontractors

            
	
              P-2

            	
              Subcontractors
      for Site Construction and Related Field Services

            
	
              Q

            	
              Equipment
      with Owner-Designated Witness and Hold Points

            
	
              R

            	
              Description
      of Site

            
	
              S

            	
              EEO
      and Small Business Regulations

            
	
              T

            	
              [Not
      Used]

            
	
              U

            	
              OCIP
      Description

            
	
              V

            	
              Limited
      Agency Agreement

            
	
              W

            	
              [**]
      Special Terms

            
	 
      	 
      

    

    
      
        
                                       
-vii-

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    ENGINEERING,
PROCUREMENT AND CONSTRUCTION AGREEMENT

     

    This
ENGINEERING, PROCUREMENT AND CONSTRUCTION AGREEMENT (the "Agreement") is entered
into as of the 23rd day of May, 2008 (the "Effective Date"), by and between
SOUTH CAROLINA ELECTRIC & GAS COMPANY ("SCE&G"), for itself and as agent
for the South Carolina Public Service Authority, a body corporate and politic
created by the laws of South Carolina ("Santee Cooper") pursuant to the Limited
Agency Agreement between SCE&G and Santee Cooper dated May 23, 2008 attached
hereto as Exhibit
V (the "Limited Agency Agreement"); and a consortium consisting of
WESTINGHOUSE ELECTRIC COMPANY LLC, a Delaware limited liability company having a
place of business in Monroeville, Pennsylvania ("Westinghouse"), and STONE &
WEBSTER, INC., a Louisiana corporation having a place of business in Charlotte,
North Carolina ("Stone & Webster"). Except where the context otherwise
requires, Westinghouse and Stone & Webster hereinafter are individually
referred to as a "Consortium Member" and collectively as "Contractor". Without
limiting the authority of SCE&G to act as agent on behalf of Santee Cooper
as provided in Section 3.6(a) hereof, references herein to "Owner" shall mean
each of SCE&G and Santee Cooper. Owner and Contractor may be referred to
individually as a "Party" and collectively as the "Parties".

     

    RECITALS

     

    WHEREAS,
Owner desires to develop, license, procure and have constructed a nuclear-fueled
electricity generation facility;

     

    WHEREAS,
Westinghouse is engaged in the business of designing, developing and supplying
commercial nuclear facilities and has developed a pressurized water Nuclear
Power Plant known as the AP1000 (the "AP1000 Nuclear Power Plant") for which the
U.S. Nuclear Regulatory Commission has issued a Standard Design Certification in
the form of a rule set forth in Appendix D to 10 C.F.R. Part
52;

     

    WHEREAS,
Stone & Webster is engaged in the business of designing and constructing
industrial and power generation facilities;

     

    WHEREAS,
Westinghouse and Stone & Webster desire to assist Owner in the licensing of
and to design, engineer, procure, construct, and test one or two AP1000 Nuclear
Power Plants and related facilities, structures and improvements at the V.C.
Summer station;

     

    WHEREAS,
Owner and Contractor now desire to enter into this Agreement to provide for,
among other things, the design, engineering, procurement and installation of
equipment and materials, and construction and testing of the
Facility;

     

    NOW,
THEREFORE, in consideration of the recitals, the mutual promises herein
and other good and valuable consideration, the receipt and sufficiency of which
the Parties acknowledge, the Parties, intending to be legally bound, stipulate
and agree as follows:

     

    
      
        
          -1-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    ARTICLE
1 – DEFINITIONS

     

    For
purposes of this Agreement, the following words and expressions shall have the
meanings hereby assigned to them, except where the context clearly indicates a
different meaning is intended. These definitions may be supplemented by any
definitions contained in any of the documents incorporated by reference herein,
but in case of any conflict or inconsistencies, the definitions set forth below
shall prevail:

     

    "AAA"
means the American Arbitration Association.

     

    [**]

     

    "AEA"
means the Atomic Energy Act of 1954, as amended, 42 U.S.C. § 2011 et
seq.

     

    "Affiliate"
means, with respect to any Party, any other Person that (a) owns or controls,
directly or indirectly, the Party, (b) is owned or controlled by the Party, or
(c) is under common ownership or control with the Party, where "own" means
ownership of fifty percent (50%) or more of the equity interests or rights to
distributions on account of equity of the Party and "control"
means the power to direct the management or policies of the Party, whether
through the ownership of voting securities, by contract, or
otherwise.

     

    "Agreement"
has the meaning set forth in the first paragraph above and shall include all
Exhibits, and amendments hereto (including Change Orders).

     

    "Ancillary
Facilities" means the facilities, structures and improvements at the Site that
are within Contractor's Scope of Work as provided in Exhibit
A but are not part of a Unit.

     

    "AP1000
Facility Information" means the information within Contractor's Scope of Work,
in the form of electronic databases, documents, and drawings that pertain to
Facility design, engineering, licensing, analysis, installation, performance,
testing, operation and maintenance and shall be maintained by Contractor.
Collectively, this information, either directly or by reference, shall reflect
the current approved AP1000 Nuclear Power Plant associated with Contractor's
Scope of Work at any point in time. A portion of this information, as defined in
Exhibit
A, shall be provided to Owner via an Information Management System
(IMS).

     

    "AP1000
Nuclear Power Plant" has the meaning set forth in the Recitals.

     

    "Arbitral
Panel" has the meaning set forth in Section 27.5(b).

     

    [**]

     

    "Business
Day" means every calendar day other than Saturday, Sunday or a legal holiday
recognized by the State of South Carolina.

     

    "CCIP"
has the meaning set forth in Section 16.2(a).

     

    "Chairman"
has the meaning set forth in Section 27.5(b).

     

    "Change"
has the meaning set forth in Section 9.1.

     

    "Change
Dispute" has the meaning set forth in Section 27.2.

     

    

      
        
          
            -2-

             

            “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

          

           

        

        
           

          
          

        

        
           

          
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    "Change
Dispute Notice" has the meaning set forth in Section 27.2.

     

    "Change
in Law" means (a) any adoption or change, after the Effective Date, of or in the
judicial or administrative interpretation of any Laws (excluding any Laws
relating to net income Taxes), which is inconsistent or at variance with any
Laws in effect on the Effective Date, (b) the imposition after the Effective
Date of any requirement for a new Governmental Approval or (c) the imposition
after the Effective Date of any condition or requirement (except for any
conditions or requirements which result from the acts or omissions of Contractor
or any Subcontractor) not required as of the Effective Date affecting the
issuance, renewal or extension of any Government Approval; that, in each case,
is germane to the obligations of the Parties set forth in this
Agreement.

     

    "Change
Order" means the written agreement regarding a Change contemplated by Section
9.4.

     

    "Claim"
has the meaning set forth in Section 27.1.

     

    "Combined
License" or "COL" means the combined construction and operating license issued
pursuant to 10 C.F.R. Part 52 for the Facility.

     

    "Combined
License Application" or "COLA" means the COL application for the Facility at the
Site that has been submitted to the NRC, as such application may be updated or
changed from time to time.

     

    "Consortium
Member" has the meaning set forth in the opening paragraph of this
Agreement.

     

    "Construction
and Installation Tests" means the tests conducted as provided in Section
11.2.

     

    "Construction
Equipment" means equipment, machinery, materials and/or test equipment used in
the excavation, civil work, mechanical/electrical installation and/or testing of
the Facility, until such equipment is no longer needed for tasks associated with
Contractor's Scope of Work, and which shall not become a permanent part of the
Facility.

     

    "Contract
Price" means [**].

     

    "Contractor"
has the meaning set forth in the opening paragraph of this
Agreement.

     

    "Contractor
Disclosable Information" has the meaning set forth in Section
19.3(a).

     

    "Contractor
Interests" means Contractor and its (or their) members, and its (or their)
respective Affiliates, successors and assigns, including any tier of the
foregoing, its (or their) Subcontractors (including suppliers) of any tier, and
employees of all the foregoing, this being limited to any activity connected in
any way with this Agreement.

     

    "Contractor
Non-Disclosable Information" has the meaning set forth in Section
19.3(a).

     

    "Contractor
Permits" means the Governmental Approvals identified as Contractor Permits in
Exhibit C.

     

    "Contractor's
Project Director" means the Person whom Contractor designates in writing to
administer this Agreement on behalf of Contractor.

     

    [**]

     

    [**]

     

    

      
        
          
            -3-

             

            “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

          

           

        

        
           

          
          

        

        
           

          
            Execution
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    "Day" as
used in the Agreement means a calendar day and includes Saturdays, Sundays and
legal holidays.

     

    [**]

     

    "Design
Control Document" or "DCD" means the revision of the AP1000 Nuclear Power Plant
Design Control Document, APP-GW-GL-700, that is in effect as of the Effective
Date.

     

    "Documentation"
means the documents that Contractor has agreed to provide in its Scope of Work
as set forth in Exhibit
A.

     

    "DOE"
means the U.S. Department of Energy and its staff.

     

    "Effective
Date" means the date of this Agreement first above written.

     

    "Employment
Taxes" has the meaning set forth in Section 26.1.

     

    "Equipment"
means machinery, computer hardware and its associated software, apparatus,
components, articles, materials, systems and structures, and items of any kind
that shall become a permanent part of the Facility to be provided by Contractor
to Owner under this Agreement, but excluding the Nuclear Fuel.

     

    "Equipment
Warranty" has the meaning set forth in Section 14.1(a)(i).

     

    "Exhibit"
means each one of the documents Exhibit
A through W
annexed to this Agreement.

     

    "Existing
Confidentiality Agreement" has the meaning set forth in Section
19.2(c)(i).

     

    [**]

     

    [**]

     

    "Facility"
means the Unit or Units and the Ancillary Facilities, and is more fully
described in Exhibit
A.

     

    "Facility Documentation" means the Documentation of the
applicable Consortium Member plus,
if not included within the Documentation, material and information within the
possession or control of such Consortium Member or its Subcontractors and that
Consortium Member has the right to transfer, sublicense or pass-through[**].
Facility Documentation does not
include software or its associated documentation that is the subject of
Exhibit
M-1, Software
License.

     

    "Facility
Manuals" means those manuals provided by Contractor for use by the Operator in
connection with the operation and maintenance of the Facility.

     

    "Facility
Purposes" has the meaning set forth in Section 19.2(b)(i).

     

    [**]

     

    "Final
Completion" means that a Unit has achieved all the conditions set forth in
Section 12.6.

     

    "Final
Completion Punch List" has the meaning set forth in Section 12.5.

     

    "Final
Payment Invoice" has the meaning set forth in Section 8.3.

     

    [**]

     

    

      
        
          
            -4-

             

            “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

          

           

        

        
           

          
          

        

        
           

          
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    [**]

     

    [**]

     

    "Full
Notice to Proceed" means the written notice that Owner gives to Contractor
authorizing Contractor to proceed with the remainder of the Work, subject to the
limitations set forth in Section 3.2(b).

     

    [**]

     

    "Good
Industry Practices" means any of the practices, methods, standards and acts
engaged in and generally acceptable to the nuclear power industry in the United
States that, at a particular time, in the exercise of reasonable judgment in
light of the facts known at the time a decision

     

    
      
        
          -5-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    was made
could have been expected to accomplish the desired result consistent with good
business practices, reliability, economy and safety.

     

    "Government
Approval" means any authorization, consent, approval, clearance, license,
ruling, permit, tariff, certification, exemption, filing, variance, order,
judgment, no-action or no-objection certificate, certificate, decree, decision,
declaration or publication of, notices to, confirmation or exemption from, or
registration by or with any Government Authority relating to the design,
engineering, procurement, construction, testing, financing, completion,
ownership or operation of the Facility.

     

    "Government
Authority" means any federal, state, county, city, local, municipal, foreign or
other government or quasi-governmental authority or any department, agency,
subdivision, court or other tribunal of any of the foregoing that has
jurisdiction over Owner, Contractor, the Facility or the activities that are the
subject of this Agreement.

     

    "Guaranteed
Substantial Completion Date" for a Unit means the date set forth for such event
in the Project Schedule as such date may be extended due to a Change or
otherwise pursuant to the terms hereof.

     

    "Hazardous Materials"
means any substance or material regulated or governed by any Governmental
Authority, or any substance, emission or material now or hereafter deemed by any
court or Government Authority having jurisdiction to be a "regulated substance",
"hazardous substance", "toxic substance", "pesticide", "hazardous
waste", or any similar classification, including by reason of deleterious
properties, ignitability, corrosivity, reactivity, carcinogenicity, or
reproductive toxicity, and shall include those substances defined as a "source",
"special nuclear" or "by-product" material pursuant to Section 11 of the AEA (42
U.S.C. Section 2014 et
seq.) and those substances defined as "residual radioactive material" in
Section 101 of the Uranium Mill Tailings Radiation Control Act of 1978 (42
U.S.C. Sections 7901 et
seq.).

     

    "Hold
Point" means a critical step in a manufacturing or testing process beyond which
Contractor or a Subcontractor cannot proceed except pursuant to the
provisions in Section 5.6.

     

    [**]

     

    "Industry
Codes and Standards" means the codes and standards set forth in Exhibit
N.

     

    "Insolvent"
means, with respect to a Person, that such Person (i) makes any general
assignment or any general arrangement for the benefit of creditors, (ii) files a
petition or otherwise commences, authorizes, defaults as to or acquiesces in the
commencement of a case, petition, proceeding or cause of action under any
bankruptcy, insolvency or similar law for the protection of debtors or
creditors, or has such a case, petition, proceeding or cause of action
involuntarily filed or commenced against it and such case, petition, proceeding
or cause of action is not withdrawn or dismissed within sixty (60) Days after
such filing, (iii) otherwise becomes adjudicated a debtor in bankruptcy or
insolvent (however evidenced), (iv) is unable (or admits in writing its
inability) generally to pay its debts as they become due, (v) is dissolved
(other than pursuant to a consolidation, acquisition, amalgamation or merger),
(vi) has a resolution passed

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, acquisition, amalgamation or merger), (vii) seeks, or becomes
subject to the appointment of an administrator, provisional liquidator,
conservator, assignee, receiver, trustee, custodian or other similar entity or
official for all or substantially all of its assets, (viii) has a secured party
take possession of all or substantially all of its assets or has a distress,
levy, execution, attachment, sequestration or other legal process levied,
enforced or sued on or against all or substantially all of its assets and such
secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within sixty (60) Days
thereafter, (ix) causes or is subject to any event with respect to which, under
the applicable laws of any jurisdiction, said event has an analogous effect to
any of the events specified in clauses (i) to (viii) (inclusive); or (x) takes
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts.

     

    "Invitees"
means, with respect to a Person, such personnel or other Persons as have been
permitted entry onto the Site by such Person.

     

    "ITAAC"
means the NRC inspections, tests and analyses and their associated acceptance
criteria which are approved and issued for the Facility pursuant to 10 C.F.R. §
52.97(b)(1).

     

    "Joint
Test Working Group" has the meaning set forth in Section 11.1(b).

     

    [**]

     

    "Law"
means (a) any constitution, statute, law, rule, regulation, code, treaty,
ordinance, judgment, decree, writ, order, concession, grant, franchise, license,
agreement, directive, requirement, or other governmental restriction or any
similar form of decision of or determination by, or any binding interpretation
or administration of any of the foregoing by, any Government Authority, whether
now or hereafter in effect or (b) any requirements or conditions on or with
respect to the issuance, maintenance or renewal of any Government Approval or
applications therefore, whether now or hereafter in effect.

     

    "Licensing
Basis" means the NRC requirements applicable to the Facility as set forth in,
until such time as the COL is issued, the DCD and, upon its issuance, the
COL.

     

    "Lien"
means any lien, mortgage, pledge, encumbrance, charge, security interest,
option, right of first refusal, other defect in title or other restriction of
any kind or nature.

     

    "Limited
Agency Agreement" has the meaning set forth in the opening paragraph of this
Agreement.

     

    "Limited
Notice to Proceed" means the written notice that Owner gives to Contractor
authorizing Contractor to proceed with the Work in a limited manner in
accordance with Section 3.2(a).

     

    [**]

     

    [**]

     

    "Maintenance
Procedures" means the procedures, written or electronic, required to perform
predictive, corrective, and preventive maintenance of the Facility systems,
components and structures, and those procedures required for calibration and
testing of instrumentation and measurement systems and other components that are
required for operation and maintenance of the Facility.

     

    "Major
Equipment" means the following equipment: steam generators, reactor vessel and
reactor vessel head, control rod drive mechanisms, main turbine, main turbine
generator, turbine deaerator, reactor coolant pumps, containment vessel, cooling
towers, main turbine condenser, reactor internals, main step-up transformers,
pressurizer, diesel generators, feedwater pumps, circulating 

    

      
        
          
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

          

           

        

        
           

          
          

        

        
           

          
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    water
pumps, polar crane, core makeup tanks, moisture separator reheaters, and any
other equipment for which the contract(s) with the Subcontractor is for an
amount in excess of [**] or that Owner and Contractor agree shall be designated
as Major Equipment.

     

    “Major
Equipment Purchase Order” has the meaning set forth in Section
3.7(c)(i).

     

    “Major
Equipment Vendor” has the meaning set forth in Section 3.7(c)(i).

     

    "Major
Subcontract" means a contract with a Major Subcontractor.

     

    "Major
Subcontractor" means the Subcontractors (or category of Subcontractors)
identified on Exhibit
P-1. For the avoidance of doubt, Major Subcontractors may include, but
are not limited to, suppliers of Major Equipment.

     

    "Mandatory
Spare Parts" means those items to be identified in Exhibit
A as Mandatory Spare Parts and required to support initial plant startup
and to perform routine maintenance of the Equipment during the first two (2)
years of plant operation.

     

    [**]

     

    "Member"
has the meaning set forth in Section 27.5(b).

     

    "Milestone"
means an event or series of events in the execution of the Work as set forth in
Exhibit
F-1.

     

    "Milestone
Payment" means the payment due with respect to a completed
Milestone.

     

    "Milestone
Payment Schedule" means the Milestone Payment Schedule set forth in Exhibit
F-1.

     

    "Net Unit
Electrical Output" means the electrical power of the Unit measured at the high
side of the step-up transformer, with the conditions as stated in Exhibit
L.

     

    "Net Unit
Electrical Output Guarantee" has the meaning set forth in Section
11.6.

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Net Unit
Electrical Output Test" has the meaning set forth in Section
11.5(b).

     

    "NRC"
means the U.S. Nuclear Regulatory Commission and its staff.

     

    [**]

     

    "Nuclear
Fuel" means fabricated nuclear fuel and services meeting the principal design
requirements referenced in the DCD.

     

    "Nuclear
Incident" means any occurrence that causes bodily injury, sickness, disease or
death, or loss of or damage to property, or loss of use of property, arising out
of or resulting from the radioactive, toxic, explosive, or other hazardous
properties of source material, special nuclear material, or by-product material
which is used in connection with the operation of the Facility. "Source
material", "special nuclear material", and "by-product material", as applicable
to this Agreement shall have those meanings assigned by the AEA.

     

    "NuStart"
means NuStart Energy Development, LLC.

     

    "OCIP"
has the meaning set forth in Section 16.2(a).

     

    "Operating
Procedures" means the procedures, written or electronic, required to operate the
AP1000 Nuclear Power Plant under normal, abnormal, emergency, shutdown, or
startup conditions.

     

    [**]

     

    "Operator"
means Operator of a Unit and/or the Facility, it being understood that
Contractor shall not be deemed to be the Operator of a Unit and/or the Facility
under any circumstances.

     

    "Optional
Spare Parts" means those items that may be required to perform major maintenance
of the Equipment, such as periodic overhaul, or that could fail based on
industry experience and for which replacement parts may require longer lead
times to obtain from the original equipment manufacturers.

     

    "OSHA"
has the meaning set forth in Section 23.3.

     

    "OSHA
Standards" has the meaning set forth in Section 23.3(b).

     

    [**]

     

    "Owner"
has the meaning set forth in the opening paragraph of this
Agreement.

     

    [**]

     

    [**]

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Owner
Permits" means the Government Approvals identified as Owner Permits in Exhibit
C.

     

    [**]

     

    "Owner's
Project Director" means the Person who Owner designates in writing to act on
behalf of Owner under this Agreement.

     

    [**]

     

    "Party"
and "Parties" has the meaning set forth in the opening paragraph of this
Agreement.

     

    "Payment
Plan" has the meaning set forth in Section 8.1(a).

     

    [**]

     

    [**]

     

    [**]

     

    "Performance
Test" means the tests conducted as provided in Section 11.5.

     

    "Person"
means any individual, corporation, company, partnership, joint venture,
association, trust, unincorporated organization or Government
Authority.

     

    "Personnel"
means, with respect to a Person, such Person's employees, officers, directors,
agents, personnel, representatives, subcontractors of any tier (including, for
Contractor, its Subcontractors), vendors and any other third party independent
contractors with whom such Person has contracted.

     

    "Phase I"
means the portion of the Work described in Section 3.2(a).

     

    "Phase
II" means the portion of the Work described in Section 3.2(b).

     

    "PQAP"
has the meaning set forth in Section 5.1(a).

     

    "PQAPIP"
has the meaning set forth in Section 5.1(a).

     

    "Preoperational
Test Completion" has the meaning set forth in Section 12.2(b).

     

    "Preoperational
Test Group" has the meaning set forth in Section 11.3(b).

     

    
      
        
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this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Preoperational
Tests" means the tests conducted as provided in Section 11.3.

     

    "Price
Adjustment Provisions" means the terms set forth in Article 7 and Exhibit
J.

     

    [**]

     

    [**]

     

    [**]

     

    "Project
Execution Plan" means the plan to be developed by Contractor and approved by
Owner as provided in Section 3.5(h) setting forth the processes and procedures
that shall enable the Work to be managed in an effective and efficient manner
and in accordance with the requirements of this Agreement.

     

    "Project
Schedule" means the schedule of key dates for completion of the Work as set
forth in Exhibit
E.

     

    "Proprietary
Data" means the terms of this Agreement and any and all information, data,
software, matter or thing of a secret, confidential or private nature relating
to the business of the disclosing Party or its Affiliates, including matters of
a technical nature (such as know-how, processes, data and techniques), matters
of a business nature (such as information about costs, profits, markets, sales,
customers, suppliers, the Parties' contractual dealings with each other and the
projects that are the subject-matter thereof), matters of a proprietary nature
(such as information about patents, patent applications, copyrights, trade
secrets and trademarks), other information of a similar nature, and any other
information which has been derived from the foregoing information by the
receiving Party; provided, however, that Proprietary Data shall not include
information which: (a) is legally in possession of the receiving Party prior to
receipt thereof from the other Party; (b) the receiving Party can show by
suitable evidence to have been independently developed by the receiving Party or
its employees, consultants, affiliates or agents; (c) enters the public domain
through no fault of the receiving Party or others within its control; (d) is
disclosed to the receiving Party, without restriction or breach of an obligation
of confidentiality to the disclosing Party or (e) is legally required to be
disclosed; provided that the receiving Party subject to such a requirement uses
its reasonable best efforts to notify the other Party of any request or subpoena
for the production of any Proprietary Data and provides such Party with an
opportunity to resist such a request or subpoena.

     

    [**]

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Quality
Assurance Program" has the meaning set forth in Section 5.1(a).

     

    "Ready
for Performance Test Date" has the meaning set forth in Section
11.5(c).

     

    "Ready
for Startup Test Date" has the meaning set forth in Section
11.4(c).

     

    "Recipient"
has the meaning set forth in Section 19.2(c)(i).

     

    [**]

     

    "Sales
Tax" means any sales, use or similar tax imposed on Contractor, any
Subcontractor or Owner with respect to the Work by any Government
Authority.

     

    "Santee
Cooper" has the meaning set forth in the opening paragraph of this
Agreement.

     

    "SCE&G"
has the meaning set forth in the opening paragraph of this
Agreement.

     

    "Scope of
Work" means the scope of work and supply and division of responsibilities
between Owner and Contractor set forth in Exhibit
A.

     

    "Screening
Measures" has the meaning set forth in Section 24.1.

     

    "Services"
means all labor, transportation, packaging, storage, designing, drawing,
creating, engineering, demolition, Site preparation, manufacturing,
construction, commissioning, installation, testing, equipping, verification,
training, procurement, Documentation, licenses to intellectual property or
otherwise and other work, services and actions (including pursuant to any
warranty obligations) to be performed by Contractor hereunder (whether at the
Site or otherwise) in connection with, or relating to, the Facility (or any
component thereof, including any Equipment).

     

    "Services
Warranty" has the meaning set forth in Section 14.2.

     

    "Services
Warranty Period" has the meaning set forth in Section 14.2.

     

    [**]

     

    "Shaw"
means The Shaw Group, Inc.

     

    "Site"
means the premises (or portion thereof) owned or leased by Owner on which the
Facility shall be located, and including any construction laydown areas, as more
specifically described in Exhibit
R.

     

    "Software"
has the meaning set forth in Exhibit
M.

     

    "Specifications"
means the design specifications and drawings, and changes thereto, prepared by
Contractor or its Subcontractors for the design, engineering and construction of
the Facility.

     

    
      
        
          -12-

           

          “[**]” in
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "SSDs"
has the meaning set forth in Section 19.3(b)(viii).

     

    "Standard
Equipment Warranty Period" has the meaning set forth in Section
14.1(a)(ii).

     

    "Standard
Plant" means the plant design features and buildings or structures in the scope
of the AP1000 Nuclear Power Plant certification as shown in the DCD Site Plan,
Figure 1.2-2.

     

    "Startup
Test Completion" has the meaning set forth in Section 12.3(b).

     

    "Startup
Test Group" has the meaning set forth in Section 11.4(b).

     

    "Startup
Tests" means the tests conducted as provided in Section 11.4.

     

    "Stone
& Webster" has the meaning set forth in the opening paragraph of this
Agreement.

     

    [**]

     

    "Subcontract"
means any contract, purchase order or other writing between Contractor and any
Subcontractor under which the Subcontractor performs or provides any portion of
the Work.

     

    "Subcontractor"
means (a) any Person other than Contractor performing or providing any portion
of the Work, whether hired directly by Contractor or by a Person hired by
Contractor and including every tier of subcontractors, sub-subcontractors and so
forth, and (b) any Person providing or supplying all or a portion of the
equipment or materials and supplies required by any Person performing or
providing any portion of the Work to perform or provide the Work, whether or not
incorporated into the Facility, including, any materialman, vendor or supplier,
whether hired directly by Contractor or by a Person hired by Contractor and
including every tier of subcontractors, sub-subcontractors and so
forth.

     

    "Substantial
Completion" means that a Unit shall have achieved all the conditions set forth
in Section 12.4.

     

    "Substantial
Completion Date" means the date on which Substantial Completion has
occurred.

     

    [**]

     

    [**]

     

    [**]

     

    "Taxes"
means all present and future license, documentation, recording and registration
fees, all taxes (including income, gross receipts, unincorporated business
income, payroll, sales, use, personal property (tangible and intangible), real
estate, excise and stamp taxes), levies, imports, duties, assessments, fees
(customs or otherwise), charges and withholdings of any nature whatsoever, and
all penalties, fines, additions to tax, and interest imposed by any Government
Authority.

     

    
      
        
          -13-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Technical
Support" includes providing qualified manpower and furnishing of technical
guidance, advice and counsel with respect to Owner or its Personnel at the Site,
and includes recommending a course of action with respect to Owner's operation
of a Unit or the Facility based upon current design, engineering, construction
and testing practices, but does not include or require any supervision,
regulation, control, arbitration or measurement of Owner's
Personnel.

     

    [**]

     

    "Third
Party Claim" means any claim, demand or cause of action of every kind and
character by any Person other than Owner or Contractor.

     

    [**]

     

    [**]

     

    [**]

     

    [**]

     

    "Toshiba"
means Toshiba Corporation.

     

    "Turnover"
has the meaning set forth in Section 12.1(a).

     

    
      
        
          -14-

           

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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Uncontrollable
Circumstance" means any event or condition beyond the reasonable control of a
Party despite its reasonable efforts to prevent, avoid, delay or mitigate such
acts, events or occurrences, which prevents, impacts or delays a Party from
performing its obligations under this Agreement, including but not limited to
the following:

     

    (a) An act of
God, including landslide, lightning, earthquake, fire, explosion, storm, flood,
unusual or severe weather conditions, including hurricanes, tornadoes; and any
precautionary actions taken in connection therewith;

     

    (b) Acts of a
public enemy, war, blockade, embargo, insurrection, riot or civil disturbance,
sabotage or similar occurrence or any exercise of the power of eminent domain,
police power, any act of terrorism, epidemic, condemnation or other taking by or
on behalf of any public, quasi-public or private entity; any strike or other
concerted labor actions; and any precautionary action or evacuation taken in
connection with any of the foregoing;

     

    (c) The
suspension, termination, interruption, denial, delay in obtaining or failure of
renewal or issuance of any Government Approval relating in any way to the Work
or operation of the Facility that is not the result of willful or negligent
action by the Party claiming the Uncontrollable
Circumstance;

     

    (d) An order
or other action by a Government Authority[**];

     

    (e) [**];
or

     

    (f) [**].

     

    [**]

     

    "Unit"
means each AP1000 Nuclear Power Plant to be constructed hereunder at the Site.
"First Unit" or "Unit 2" refers to the first such Unit to be constructed and
"Second Unit" or "Unit 3" refers to the second such Unit to be
constructed.

     

    [**]

     

    "Unit
Mechanical Completion" has the meaning set forth in Section
12.2(a).

     

    "Warranties"
means the obligations of Contractor under Article 14.

     

    
      
        
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          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    "Warranty"
refers to either the Equipment Warranty or the Services Warranty, as the case
may be.

     

    "Warranty
Period" means [**].

     

    "Westinghouse"
has the meaning set forth in the opening paragraph of this
Agreement.

     

    [**]

     

    "Whistleblower
Provisions" has the meaning set forth in Section 24.4.

     

    "Witness
Point" means a critical step in a manufacturing or testing process that is
subject to witnessing by Owner or its authorized representative in accordance
with the procedures set forth in Section 5.6.

     

    "Work"
means the supervision, labor, Services, material, equipment, tools, vehicles,
transportation, storage, design, engineering, procurement, site preparation,
construction, installation, equipping, testing, and other things and actions to
be supplied by or through Contractor necessary to furnish and install the
Facility at the Site consistent with Contractor's Scope of Work and necessary to
bring the Unit(s) to Final Completion subject to and in accordance with the
terms of this Agreement.

     

    ARTICLE
2 – INTERPRETATION

     

    A. Titles,
headings, and subheadings of the various articles and paragraphs of this
Agreement are used for convenience only and shall not be deemed to be a part
thereof or be taken into consideration in the interpretation or construction of
this Agreement.

     

    B. Words
importing the singular only shall also include the plural and vice versa
where the context requires. Words in the masculine gender shall be deemed to
include the feminine gender and vice
versa.

     

    C. Unless
the context otherwise requires, any reference to a document shall mean such
document as amended, supplemented or otherwise modified and in effect from time
to time.

     

    D. Unless
otherwise stated, any reference to a party shall include its successors and
permitted assigns, and any reference to a Government Authority shall include any
entity succeeding to its functions.

     

    E. Wherever
a provision is made in this Agreement for the giving of notice, consent or
approval by any person, such notice, consent or approval shall be in writing,
and the word "notify" shall be construed accordingly.

     

    F. This
Agreement and the documentation to be supplied hereunder shall be in the English
language.

     

    
      
        
          -16-

           

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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    G. Unless
the context requires otherwise, with regard to general oversight of the Work,
review of the drawings and Specifications and other documents, access to the
Site and Work and other similar rights of Owner, the term Owner shall mean the
Owner's Project Director or his designee. Unless the context requires otherwise
any reference contained herein to this Agreement or any other agreement or any
schedule, Exhibit or attachment hereto or thereto shall mean this Agreement or
such other agreement or such schedules, Exhibits and attachments, as they may be
amended or supplemented, unless otherwise stated.

     

    H. Words and
abbreviations not otherwise defined in this Agreement which have well-known
nuclear industry meanings in the United States are used in this Agreement in
accordance with those recognized meanings.

     

    I. Neither
Contractor nor Owner shall assert or claim a presumption disfavoring the other
by virtue of the fact that this Agreement was drafted primarily by legal counsel
for the other, and this Agreement shall be construed as if drafted jointly by
Owner and Contractor and no presumption or burden of proof shall arise favoring
or disfavoring any Party by virtue of the authorship of any of the provisions of
this Agreement.

     

    J. In the
event the due date for any payment falls on a day that is not a Business Day,
payment shall be due on the next Business Day.

     

    ARTICLE
3 – SCOPE OF WORK

     

    3.1 General.
Contractor shall perform the Work identified as Contractor's responsibility in
the Scope of Work (Exhibit
A). The Work shall be performed in two phases, as more fully described in
Section 3.2. Owner, as licensee under the COL, shall be ultimately responsible
for the execution of all obligations and responsibilities under such COL;
provided, however, that the Parties agree and acknowledge that Owner’s
responsibility under the COL does not relieve Contractor of any its
obligations and responsibilities in the performance of Contractor’s Work under
the Agreement as described more fully herein.

     

    3.2 Phases of
the Work.

     

    (a) Phase
I. Phase I of the Work shall consist of Contractor's engineering support
and other services required by Owner to support Owner's licensing efforts for
the Facility (including receipt of approvals from the Public Service Commission
of the State of South Carolina), continuation of design work (other than design
work performed under the NuStart program), project management, engineering and
administrative support to procure long lead time Equipment, the procurement of
long lead time Equipment, construction mobilization and Site preparation work,
all as more specifically described in Exhibit
A. Phase I shall commence upon the Effective Date and shall continue
until the earlier of issuance of the Full Notice to Proceed or termination of
this Agreement in accordance with Article 22; provided, however, that Phase I
Site Work must be authorized by Owner pursuant to one or more Limited Notices to
Proceed. By mutual agreement of the Parties as set forth in a Change Order
issued pursuant to Article 9, additional Site Work identified as part of Phase
II in the Scope of Work may be moved to Phase I and authorized by Owner to
proceed by means of an additional Limited Notice to Proceed. In the event that
any Phase I Work that was commenced under separate

     

    
      
        
          -17-

           

          “[**]” in
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    purchase
orders between Owner and one or both of the Consortium Members (the "Purchase
Orders") remains to be completed as of the Effective Date, then as of June 1,
2008, the Purchase Orders shall be terminated and the remaining work thereunder
will be subsumed by this Agreement.

     

    (b) Phase
II. Phase II of the Work shall consist of the remainder of the Work as
described in Exhibit
A, to commence upon issuance of a notice (the "Full Notice to Proceed")
and to continue until Final Completion unless the Agreement is earlier
terminated in accordance with Article 22. The Parties acknowledge that the Full
Notice to Proceed will not be issued unless and until the COL is
received.

     

    3.3 Project
Schedule.

     

    (a) A Project
Schedule is attached to this Agreement as Exhibit
E. The Project Schedule includes milestones for key activities, such as
the placement of orders for long lead-time Equipment. Contractor shall update
the Project Schedule quarterly prior to the commencement of on-Site construction
work and monthly thereafter to reflect the most current information concerning
the scheduled Milestones and provide the updated Project Schedule to Owner for
its review and comment. [**] Subject to the preceding sentences, Changes to the
Guaranteed Substantial Completion date(s) shall be in accordance with Article 9
of this Agreement.

     

    (b) If Owner
desires to cancel the Second Unit, it shall provide written notice of such
intent to Contractor on or before[**]. The Guaranteed Substantial Completion
Dates of the First Unit and Second Unit are [**]. The nuclear island concrete
basemat shall be poured prior to [**] on both Units. The Guaranteed Substantial
Completion Dates are based on a Full Notice to Proceed being received no later
than [**] the Guaranteed Substantial Completion Date for the First Unit, at
which time first safety-related concrete must be placed. Prior to placing the
first safety-related concrete, preparatory work, including the mud mat and rebar
placement must be performed. Should the NRC review schedule for the COLA not
support this schedule, Contractor shall be entitled to a Change Order pursuant
to Article 9. In preparing such Change Order, the Parties will work toward the
goal of maintaining the Guaranteed Substantial Completion Dates as stated
above.

     

    3.4 Not
Used.

     

    
      
        
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    3.5 Contractor
Responsibilities.

     

    (a) Industry
Standards. Subject to Article 9, Contractor shall perform and complete
its obligations under this Agreement in accordance with applicable Laws, this
Agreement, Industry Codes and Standards, and Good Industry Practices. In the
event of any conflict between any of the authorities in the foregoing sentence,
applicable Laws shall control over the terms of this Agreement, Good Industry
Practices and Industry Codes and Standards; the terms of this Agreement shall
control over Good Industry Practices and Industry Codes and Standards; and
Industry Codes and Standards shall control over Good Industry
Practices.

     

    (b) Contractor's
Key Personnel. Exhibit
B contains a chart of Contractor's intended organization for its
performance under this Agreement, including those positions to be designated as
"key" management for the performance of the Work. For such key management
positions, Contractor shall provide Owner with the resumes of the persons
filling such positions for Owner's approval, which shall not be unreasonably
withheld. Once Owner has approved any such person, Contractor shall not remove
such person for its key management position described in Exhibit
B without Owner's consent, which shall not be unreasonably withheld. If
at any time during the performance of the Work, any of Contractor's personnel
becomes, for any reason, unacceptable to Owner, then, upon notice from Owner,
Contractor shall replace such unacceptable individual with an individual
reasonably acceptable to Owner. Contractor's Project Director shall act as
Contractor's liaison with Owner and shall have the authority to administer and
manage this Agreement on behalf of Contractor, subject to any limitations on
such authority notified by Contractor to Owner in writing.

     

    (c) AP1000
Facility Information. The AP1000 Facility Information shall be controlled
and maintained by Contractor for such period of time as is required pursuant to
Contractor's Quality Assurance Program or, for information not covered by such
Quality Assurance Program in accordance with Contractor’s document retention
procedures. The AP1000 Facility Information shall contain Facility deliverable
documents and information, either directly or by reference. A means to access
and print out documentation and information in the AP1000 Facility Information
shall be made available to Owner through an information management system.
Documentation required to be provided to Owner as set forth in Exhibit
A shall be provided in accordance with the Project
Schedule.

     

    (d) Control of
Work. Contractor shall be solely responsible for all construction means,
methods, techniques, sequences, procedures, safety and quality assurance, and
quality control programs in connection with the performance of Contractor's
Work. Under the conditions stated in Section 3.1 of this Agreement, Owner, as
licensee under the COL, shall be ultimately responsible for the execution of all
obligations and responsibilities under such COL. As such and under this
Agreement, Owner has delegated to Contractor the overall control and
implementation of all aspects of the Work. Accordingly, Contractor will develop
a Project Execution Plan as provided in Section 3.5(h) which will identify all
necessary interfaces between Contractor and Owner to assure that each Party can
adequately fulfill its respective responsibilities under this Agreement and the
applicable regulatory requirements.

     

    (e) Emergencies.
In the event of any emergency endangering life or property, Contractor shall
take all actions as may be reasonable and necessary to prevent, avoid or
mitigate

     

    
      
        
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    injury,
damage or loss and shall promptly report each such emergency, and Contractor's
responses thereto, to Owner. In any event, Contractor shall use commercially
reasonable efforts to report an emergency to Owner in sufficient time to allow
Owner to make any required reports to any Government Authority in accordance
with applicable Laws.

     

    (f) Office
Facilities. During construction, Contractor shall provide Owner with
office facilities on the Site as specified in Exhibit
A.

     

    (g) Periodic
Reports and Meetings.

     

    (i) Status
Report. On a monthly basis, Contractor shall submit to Owner a written
status report covering the prior month. The report shall be prepared in a format
reasonably acceptable to Owner[**]. The report also shall include (w) a
description of the progress of the Work, (x) a statement of any significant
issues which remain unresolved and Contractor's recommendations for resolving
the same, (y) a summary of any significant Facility events which are scheduled
or expected to occur during the following interval, and (z) additional
information reasonably requested by Owner. The monthly report may be delivered
electronically.

     

    (ii) Attendance
and Participation. From the Effective Date until Final Completion,
Contractor shall attend and participate in regular meetings with Owner which
shall occur monthly (or upon such other interval as the Parties agree) for the
purpose of discussing the status of the Work and anticipating and resolving any
problems. Such meetings may be held by conference call or video conference.
Contractor shall prepare and promptly deliver to Owner written minutes of each
meeting, to which Owner shall respond in writing within a reasonable time if it
has any comments.

     

    (iii) Schedule
Requirements; Updates. Contractor shall prepare and make available to
Owner following the Effective Date, at the Site or such other location mutually
agreed upon by the Parties, a current Project Schedule depicting critical path
activities and illustrating the progress which has been made on the Work against
such schedule, including critical path activities interconnected by schedule
logistics, for Owner's review and comment. Unless otherwise mutually agreed upon
by the Parties, Contractor shall revise and update the Project Schedule
quarterly prior to the commencement of on-Site construction work and monthly
thereafter and shall provide a copy to Owner, which may be provided
electronically; provided, however, that the Guaranteed Substantial Completion
Dates for the Units shall not be revised other than pursuant to Article 9.
Portions of the schedule may be updated weekly to provide information necessary
to support weekly invoices (if applicable). Such partial updates shall not be
deemed to imply an update to the entire Project Schedule.

     

    (h) Within
sixty (60) Days following the Effective Date, Contractor shall provide a Project
Execution Plan as described in Exhibit
D to Owner for its review and approval.

     

    (i) Contractor
shall provide Owner with documentation to support Owner's compliance with
Federal Energy Regulatory Commission and South Carolina Public
Service

     

    
      
        
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    Commission
cost reporting requirements. The detailed process to provide this documentation
shall be included in the Project Execution Plan, using the guidelines provided
in Exhibit
H.

     

    3.6 Owner's
Responsibilities. Owner shall perform the responsibilities set forth in
this Article and elsewhere in this Agreement, including Exhibit
A, at its own expense and at those times as may be required by this
Agreement for the successful completion of the Work in accordance with the
Project Schedule.

     

    (a) Appointment
of Agent. Santee Cooper has appointed SCE&G as its agent pursuant to
the Limited Agency Agreement, which is attached hereto as Exhibit
V, for all purposes under this Agreement, with the power and authority to
bind Santee Cooper to its obligations herein, subject to the limitations
specifically set forth in the Limited Agency Agreement. Owner shall notify
Contractor promptly in writing if there is any change in the limits of
SCE&G's authority set forth in the Limited Agency Agreement. Contractor
shall have the right to rely on any representation by SCE&G that it has the
authority to act on behalf of Santee Cooper with respect to any and all matters
pertaining to this Agreement, except with respect to those matters where Santee
Cooper’s prior written consent is required under the Limited Agency Agreement.
With respect to those matters set forth in the Limited Agency Agreement, where
Santee Cooper’s prior written consent is required, SCE&G shall provide
Contractor with evidence of Santee Cooper's written consent to any actions taken
by SCE&G in connection with such matters.

     

    (b) Owner's
Representative. Owner shall appoint Owner's Project Director (and shall
have the right to appoint any successor or replacement Project Director) with
whom Contractor may consult at all reasonable times, and whose instructions,
requests and decisions shall be binding upon Owner as to all matters pertaining
to this Agreement.

     

    (c) Access.
From and after the time the Project Schedule indicates that Contractor is
required to have access to the Site, Owner shall provide Contractor, at no
additional cost to Contractor, rights of access to such portions of the Site as
Contractor may reasonably require for the construction of the Facility and for
Contractor's office, warehouse, shop buildings, welding facilities, Contractor's
equipment storage, laydown area, and employee parking. Owner shall cooperate
with Contractor so as to minimize disruption by Owner of Contractor's
performance of the Work, and Contractor shall cooperate with Owner so as to
minimize disruption of operation of the Units and the existing unit at the
Site.

     

    (d) Site
Conditions and Site Parameters. Owner is responsible for all
investigations required to determine the suitability of the Site for the
Facility. This information has been furnished to Contractor. [**] Any subsurface
or other site conditions subsequently discovered at the Site or changes in the
Site parameters that do not conform to the information provided by Owner or were
not evident or readily discernible upon Contractor's inspection shall entitle
Contractor to a Change Order pursuant to Article 9.

     

    
      
        
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    (e) Utilities,
Consumables and Services. Owner shall provide the electrical interconnect
for power to be exported from the Facility at the interconnection points
identified or to be identified in Exhibit
A. The Scope of Work specifies the division of responsibilities between
Owner and Contractor for utilities during construction and for the supply of
certain consumables and services by Owner during construction and testing of the
Facility. All such items to be supplied by Owner shall be supplied at the times
required pursuant to the Project Schedule. Owner shall provide all Nuclear
Fuel.

     

    (f) Spare
Parts.

     

    (i) Mandatory
Spare Parts. Within eighteen (18) months after finalization of the AP1000
Nuclear Power Plant design as specified in the then current Project Schedule,
Contractor shall provide Owner with a list of spare parts for the Facility
referred to as "Mandatory Spare Parts." The Parties shall determine a mutually
agreeable price for such Mandatory Spare Parts, an estimate for which has been
provided in Exhibit
H. Mandatory Spare Parts will be provided on a [**] unless otherwise
agreed by the Parties. As part of Contractor's Scope of Work, Contractor shall
provide such Mandatory Spare Parts to Owner by the completion of the Startup
Tests or as otherwise agreed to in the Project Schedule. All of the foregoing
spare parts shall be considered to be parts supplied to Owner under this
Agreement, and title thereto shall pass to Owner in accordance with Section
21.1. During the Warranty Period, Owner shall use commercially reasonable
efforts to maintain an inventory of spare parts equivalent to the Mandatory
Spare Parts and shall make such spare parts available to
Contractor.

     

    (ii) Optional
Spare Parts. Within eighteen (18) months after finalization of the AP1000
Nuclear Power Plant design as specified in the then current Project Schedule,
Contractor shall provide Owner with a list of Optional Spare Parts that are
recommended by Contractor and vendors of Equipment comprising the Facility. At
least two (2) years prior to the scheduled completion of the Startup Tests or as
otherwise agreed to in the Project Schedule, Owner shall identify to Contractor
the Optional Spare Parts which Owner wants Contractor to
procure. Contractor shall be entitled to a Change Order pursuant to Article
9 to cover the additional costs of such Optional Spare Parts. Owner shall make
such procured Optional Spare Parts available to Contractor for use during its
performance of the Work (as supplements for the Mandatory Spare Parts procured
by Contractor pursuant to Section 3.6(f)(i)).

     

    (iii) Use and
Replacement of Spare Parts. Contractor shall have the right to use spare
parts that are in Owner's inventory specifically during the performance of the
Work or to remedy a Warranty item[**]. Contractor shall coordinate with Owner
concerning the delivery and storage of spare parts.

     

    (g) Operation
and Maintenance Staff. For those activities supported and/or conducted by
Owner under Articles 11 "Testing" and 12 "Stages of Completion", Owner shall
provide fully trained and qualified operation and maintenance personnel for
testing and operation

     

    
      
        
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    and
maintenance of a Unit or the Facility consistent with Contractor's requirements
as determined during Phase I and as set forth upon such determination in Exhibit
A. If as a result of circumstances encountered during testing, Contractor
determines that additional operation and maintenance personnel are needed (and
provided that such determination has been made in accordance with Good Industry
Practices), Contractor shall have the right to require that additional operation
and maintenance personnel be provided by Owner upon reasonable advance notice
to, and following discussions with, Owner.

     

    (h) Job Site
Rules. From the Effective Date until Final Completion of the Second Unit
(or if there is no Second Unit, the First Unit), each Party, its representatives
and agents shall abide by the Site safety rules promulgated by the other
Party.

     

    3.7 Subcontractors.

     

    (a) Selection
of Subcontractors. Contractor shall have the right to have portions of
the Work performed by Subcontractors. Subcontractors designated as Major
Subcontractors are identified in Exhibit
P-1. After the Effective Date, Contractor shall provide periodic updates
to the Exhibit
P-1 list and shall submit the updated list to Owner for review. Owner
shall identify to Contractor any added Major Subcontractors that are
unacceptable to Owner and provide to Contractor a reasonable basis for Owner's
rejection of any such added Major Subcontractors. Exhibit
P-2 contains a list of potential Subcontractors that may be used for Site
construction and related field services. Contractor shall work proactively with
Owner to choose acceptable Subcontractors for performance of the Work that is
not part of the Standard Plant. In the event Contractor desires to use any
Subcontractors that are not listed in Exhibit
P-2 to conduct its Scope of Work on Owner's property with respect to both
the Standard Plant and on work that is not part of the Standard Plant,
Contractor shall notify Owner and, within five (5) Business Days of such notice,
Owner shall notify Contractor if such proposed Subcontractor is not acceptable
to Owner (such acceptance not to be unreasonably withheld). If Owner rejects any
such selected Subcontractor and the use of a different Subcontractor would
affect Contractor's costs for performance of the Work or the Project Schedule,
Contractor shall be entitled to a Change Order pursuant to Article 9. If,
however, Owner fails to provide such notice to Contractor within the five (5)
Business Day period, then Owner shall be deemed to have approved such proposed
Subcontractor. Subject to the prior provisions of this Section 3.7(a) with
respect to Major Subcontractors, Contractor is not obligated to consult with
Owner on its selection of Subcontractors not working on Owner's property. Owner
shall have the right to recommend additions to Exhibit
P-1 and P-2
from time to time, subject to Contractor's approval. Contractor shall be
responsible for the actions and omissions of all
Subcontractors.

     

    (b) [**]

     

    
      
        
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    [**]

     

    (c) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    
      
        
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    [**]

     

    (d) [**]

     

    (i) [**]

     

    (ii) [**]

     

    
      
        
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    [**]

     

    (e) [**]

     

    (f) Subcontract
Terms. Contractor shall use commercially reasonable efforts to include in
each Major Equipment Purchase Order provisions in substantially the following
form for the protection of Owner. If Contractor is unable to obtain such
agreement in advance from a Major Equipment Vendor, it shall promptly notify
Owner; however, in the event that this Agreement is terminated, Contractor shall
work cooperatively with Owner to obtain the agreement of the Major Equipment
Vendor to assignment of its Subcontract or the relevant portion thereof at that
time. [**]

     

    (i) [**]

     

    (ii) [**]

     

    
      
        
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    [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    ARTICLE
4 – FACILITY LICENSES, PERMITS AND APPROVALS

     

    4.1 Owner
Permits. Owner shall be responsible for obtaining, maintaining and paying
for Owner Permits (including the COL) and for all communications with any
Government Authorities regarding such Government Approvals. Contractor shall
provide support to Owner in connection with such Government Approvals, including
making personnel available to testify at formal and informal government
proceedings, and providing all documents and information reasonably requested by
Owner, including review and comment to sections prepared by others, and any
amendments thereto, to address formal NRC licensing questions on a schedule that
supports the Project Schedule and licensing support services. Contractor shall
be compensated for such services on a [**]. Owner shall provide as much advance
notice as practical for the testimony of Contractor's Personnel at proceedings
before

     

    
      
        
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    Government
Authorities. Contractor provides no assurance or guarantee that the COL or any
other Owner Permit required to be obtained by Owner shall be obtained by
Owner.

     

    4.2 Contractor
Permits. Contractor shall be responsible for obtaining, maintaining and
paying for the Contractor Permits. Owner shall provide Contractor reasonable
cooperation and assistance in obtaining and maintaining Contractor
Permits.

     

    4.3 ITAACs.

     

    (a) Contractor
shall be responsible for those ITAACs associated with each Unit as are set forth
in the Design Control Document. Any new or additional ITAAC, or any changes or
modification to the ITAAC contained in the Design Control Document that Owner
proposes be added to Contractor's Scope of Work shall be subject to agreement by
Contractor and Owner pursuant to Section 9.1(a) and, upon such agreement, shall
entitle Contractor to a Change Order pursuant to Article 9.

     

    (b) Contractor
shall be responsible for conducting, or causing to be conducted the inspections,
tests and analyses associated with each Unit's ITAAC within Contractor's Scope
of Work. Upon completion of such inspections, tests and analyses, Contractor
shall be responsible for preparing and delivering to Owner the Documentation or
other deliverables to demonstrate and confirm that the related acceptance
criteria associated with such inspections, tests and analyses as applicable to
each Unit within Contractor's Scope of Work have been met.

     

    ARTICLE
5 – QUALITY ASSURANCE

     

    5.1 Quality
Assurance.

     

    (a) Contractor
has sole responsibility for the quality assurance and quality control of the
Work. Contractor has provided to Owner its quality assurance program consisting
of each Consortium Member’s Quality Assurance Program that has been approved by
the NRC (“Quality Assurance Program”). The Quality Assurance Program and any
changes thereto shall meet the requirement of 10 C.F.R. Part 50, Appendix B and
ASME NQA-1 – 1994 and be accepted by the NRC and accepted by
Owner. Contractor’s Quality Assurance Program is subject to review and
audit by Owner for compliance with 10 C.F.R. Part 50 Appendix B and ASME NQA-1 -
1994. Contractor has prepared AP1000 Project-specific clarifications and
modifications with respect to the Quality Assurance Program and has set forth
such items in the Project Quality Assurance Program Interface Plan
(“PQAPIP”). The PQAPIP will be included in the Project Execution Plan and
shall be delivered to Owner for its review and approval. Owner's review and
acceptance of the PQAPIP shall not relieve Contractor from its obligations to
comply with the requirements of this Agreement and 10 C.F.R. Part 50, Appendix
B. The Quality Assurance Program and the PQAPIP will collectively be the
“Project Quality Assurance Program” or “PQAP”. Contractor shall provide
Owner with five (5) copies of the PQAP and Quality Assurance Program or make
them available electronically. Contractor shall follow the PQAP throughout its
performance of the Work. The PQAP and associated policies and procedures
shall address Contractor’s Scope of Work, including, without limitation,
systems, structures and components in a manner consistent with their
classification with respect to their importance to nuclear safety (i.e., safety
related, important to safety, non-safety related) or their

     

    
      
        
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    importance
to the capacity, operability and reliability of the Facility as classified in
the DCD. The PQAP shall support Owner's compliance with 10 C.F.R. Part 50,
Appendix B and ASME NQA-1 – 1994 and shall be subject to review and audit by the
Owner at the Owner's request. For purposes of the American Society of
Mechanical Engineers (ASME) Code, Contractor shall be designated as Owner’s
agent.

     

    (b) Subcontractor
Quality Assurance. In accordance with the PQAP, Contractor shall also
require Major Subcontractors to establish, implement and maintain appropriate
quality assurance programs (which may either be the PQAP or such other quality
assurance program capable of being audited to the requirements of the PQAP) for
their respective portions of the Work consistent with the nuclear safety quality
classification of their portion of the Work. Such programs shall be made
available for review by Owner. Major Subcontractor audit reports shall be made
available for review by Owner or its authorized representative. At its own cost,
Owner or its authorized representative may participate in scheduled audits of
Subcontractors performed by Contractor.

     

    5.2 Reporting
of Defects, Noncompliance, Failures and Breakdowns of QA Programs.
Contractor shall comply with the provisions of 10 C.F.R. Part 21, "Reporting of
Defects and Noncompliance," and 10 C.F.R. Part 50.55, "Conditions of
construction permits, early site permits, combined license, and manufacturing
licenses," in the performance of its obligations under this Agreement. Without
limiting the foregoing, Contractor shall act as the "dedicating entity," as
defined in 10 C.F.R. § 21.3 and 10 C.F.R. § 50.55(e)(1), and comply with the
requirements of 10 C.F.R. § 21.21(c) and 10 C.F.R. § 50.55(e)(4). Contractor
shall comply with the posting requirements of 10 C.F.R. § 21.6 and 10 C.F.R. §
50.55 at the Site and shall permit, and cause each Subcontractor to permit, the
NRC to inspect records, premises, activities and basic components as necessary
to accomplish the purposes of 10 C.F.R. Part 21, including permitting the NRC
the opportunity to inspect records pertaining to basic components that relate to
the identification and evaluation of deviations, and the reporting of defects
and failures to comply, including any advice given to purchasers or licensees on
the placement, erection, installation, operation, maintenance, modification, or
inspection of a basic component. Contractor shall comply with the provisions of
10 C.F.R. § 50.55(e)(1)(iii)(C) for reporting any significant breakdown in any
portion of the Contractor's or Subcontractor's quality assurance program
conducted under the requirements of Appendix B to 10 C.F.R. Part 50 which could
have produced a defect in a basic component. Contractor shall require in each
contract with its first tier Subcontractors to perform any of the Services or to
furnish any Equipment, at the Site or elsewhere, and that are subject to the
provisions of 10 C.F.R. Part 21 and 10 C.F.R. 50.55, that such Subcontractor
shall comply with the provisions of 10 C.F.R. Part 21 and 10 C.F.R. Part 50.55.
Additionally, Contractor shall require that each Subcontractor include in each
contract with its first tier Subcontractors to perform any of the Services or to
furnish any Equipment, at the Site or elsewhere, and that are subject to the
provisions of 10 C.F.R. Part 21 and 10 C.F.R. Part 50.55 a provision stating
that such Subcontractor shall comply with the provisions of 10 C.F.R. Part 21
and 10 C.F.R. Part 50.55. Contractor shall, and shall require that each of its
first tier Subcontractors, provide Owner with copies of all notices and other
documentation that Contractor or such Subcontractor, as applicable, may disclose
to the NRC pursuant to 10 C.F.R. Part 21 or 10 C.F.R. Part 50.55 concurrently
with such disclosure to the NRC (or, if concurrent disclosure is not practical,
as soon as reasonably practicable following such
disclosure).

     

    
      
        
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    Additionally,
each Subcontractor shall require that each of its first tier Subcontractors
provide Owner with copies of all notices and other documentation that such
Subcontractor or its Subcontractors, as applicable, may disclose to the NRC
pursuant to 10 C.F.R. Part 21 or 10 C.F.R. Part 50.55 concurrently with such
disclosure to the NRC (or, if concurrent disclosure is not practical, as soon as
reasonably practicable following such disclosure).

     

    5.3 Quality
Control and Inspection Activities. Contractor shall be responsible to
perform the quality control and inspection activities in accordance with the
PQAP. The quality control and inspection activities shall be consistent with the
nuclear safety quality classification of the system, structure or component
under evaluation. The Persons performing quality assurance and control functions
for Contractor shall have sufficient authority and organizational freedom to
identify quality problems; to initiate, recommend, or provide solutions; and to
verify implementation of solutions. Such Persons performing quality assurance
and control functions shall report to a management level such that this required
authority and organizational freedom, including sufficient independence from
cost and schedule when opposed to safety considerations, are
provided.

     

    5.4 Access and
Auditing at Contractor Facilities. Contractor shall provide Owner and its
authorized representatives with reasonable access during normal working hours to
the Work at Contractor's facilities, and all pertinent documentation relating to
the Work, for observation and inspection, including auditing of activities for
conformance with the requirements of the PQAP and all requirements of this
Agreement. Inspections and audits of Contractor shall be coordinated with
Contractor.

     

    5.5 Access and
Audits at Subcontractors' Facilities. Contractor shall include in its
Subcontracts with Major Subcontractors the right of Owner to have access to such
Subcontractors' facilities as follows. During working hours, Owner and its
authorized representatives shall have the right of access to Contractor's and
Major Subcontractors' premises and working facilities for quality assurance and
quality control activities. Contractor shall provide Owner and its authorized
representatives with necessary information and assistance to carry out Owner's
quality assurance and quality control activities. Quality assurance and quality
control activities at Major Subcontractors shall be limited to participation in
scheduled audits and execution of Witness Points identified as the Witness
Points and Hold Points in the manufacturing and fabrication plans for the
Equipment, such as in-process testing and final product review for acceptance.
Quality assurance and quality control activities at Major Subcontractors include
activities necessary to address quality issues which may arise at sub-suppliers.
In cases where Contractor incurs additional cost or delay in the Project
Schedule from its Major Subcontractors due to Owner's request to perform
additional quality assurance and quality control activities beyond these
activities, Contractor shall be entitled to a Change pursuant to Article 9.
Contractor shall implement, and require its Major Subcontractors to implement
measures necessary to be taken to ensure compliance with this Agreement where
such measures are identified as a result of a quality assurance audit or
surveillance carried out by Owner's authorized representatives. The rights of
access described above are subject to restrictions which may be identified by a
Major Subcontractor related to access to proprietary information, additional
costs for access beyond routine audits and Witness Points, reasons of national
security or access by foreign nationals.

     

    
      
        
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    5.6 Witness and
Hold Points.

     

    (a) Following
the selection of a specific vendor for Equipment identified in Exhibit
Q that is part of the Standard Plant and for which there are contractual
Witness Points and Hold Points, Contractor shall identify the associated Witness
Points and Hold Points via inclusion of the Witness Points and Hold Points in
the manufacturing and fabrication plans for the Equipment. After review, Owner
may identify additional Witness Points and Hold Points and Owner shall notify
Contractor of any Owner-designated Witness Points or Hold Points that they shall
attend. In cases where Contractor incurs additional cost or delay in the Project
Schedule from its Major Subcontractors due to Owner's request to add additional
Witness Points and/or Hold Points beyond those identified by Contractor,
Contractor shall be entitled to a Change Order pursuant to Article 9. Contractor
shall provide Owner access to or copies of these manufacturing and fabrication
schedules for Equipment identified in Exhibit
Q and the regular updates to these schedules, such that Owner has advance
notice of approaching scheduled Witness Points and Hold Points. Owner shall be
notified in writing by Contractor of Owner-designated Witness Points and Hold
Points as soon as practicable but no later than [**] Business Days prior to the
scheduled activity. Owner shall acknowledge the notification of Owner-designated
Hold Points within [**] Business Days and indicate whether or not it intends to
attend the activity that is the subject of the Hold Point.

     

    (b) Work may
proceed with and beyond Owner-designated Witness Points in the absence of
Owner's or its authorized representative's participation without a written
waiver. Work may not proceed with or beyond Owner-designated Hold Points without
a written waiver from Owner. If proper notification has been given and Owner has
responded that it intends to attend the activity that is the subject of the
Owner-designated Hold Point, but Owner or its authorized representative is
unavailable at the designated time, or Owner does not respond as to whether or
not it intends to attend the activity that is the subject of the
Owner-designated Hold Point, the work shall not proceed, Contractor shall be
entitled to a Change Order pursuant to Article 9. Requests by Owner to witness
tests or conduct surveillance after the scheduled point in time designated for a
Witness Point or Hold Point shall be accommodated by Contractor only if
technically feasible, shall entitle Contractor to a Change Order pursuant to
Article 9.

     

    (c) Witnessing
of tests or other surveillance by Owner shall be at Owner's expense. If Owner
performs the surveillance or elects not to perform a surveillance, such
surveillance or waiver shall not relieve Contractor of its obligations under
this Agreement.

     

    (d) Any
nonconformance or deviation from design requirements for the Equipment listed in
Exhibit
Q which results in "repair" or "accept as is" dispositions to design
requirements shall be submitted to Owner for its written approval, which shall
not be unreasonably withheld. Repaired and reworked items shall be re-inspected
to verify conformance to the requirements specified by the disposition. A
nonconformance which represents significant conditions adverse to quality
submitted for Owner's approval shall include the identification of the cause of
the nonconformance and the corrective action to prevent
recurrence.

     

    
      
        
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    5.7 Owner's
Right to Inspect and Stop Work.

     

    (a) Owner's
Right to Inspect. Owner shall have the right to have its authorized
representatives inspect the Work in order to assure that the Work complies with
the requirements of this Agreement, including Contractor's PQAP. Inspection by
Owner shall not be deemed to be supervision by Owner of Contractor and shall not
relieve Contractor of any responsibility for performing the Work in accordance
with this Agreement. Any acceptance or approval by Owner shall not be deemed to
constitute final acceptance of same by Owner, but shall be only for the purpose
of assuring that the Work complies with this Agreement. Owner may report to
Contractor any unsafe or improper conditions or practices observed at the Site
for action by Contractor in correction or enforcement.

     

    (b) Defective
Work. If Owner's inspection reveals any non-compliance or any other
defects in any portion of Work, then Contractor shall, promptly upon its receipt
of notice from Owner, take such actions as are required with respect to such
defective Work in accordance with its Quality Assurance Program. If Contractor
is not taking the actions required with respect to defective Work in accordance
with the PQAP, Owner shall have the right to cause Contractor to take corrective
action.

     

    (c) Right to
Stop Work for Cause. If Contractor fails to take corrective action for
defective Work as required under Section 5.7(b), then Owner, by written order,
may order Contractor to stop performance of the portion of the Work affected
thereby, until the cause of such order has been eliminated. In addition, Owner,
by written order, may order Contractor to stop performance if the activities of
Contractor at the Site reasonably appear to Owner to cause or threaten to cause
danger to life or damage to property. Contractor shall not be entitled to a
Change Order for stop Work orders properly issued pursuant to the terms of this
Section 5.7(c).

     

    (d) Uncovering
of Work. Prior to the commencement of the Warranty Period, in the event
Owner requests that any Work be uncovered to determine whether it is deficient,
Contractor shall be entitled to a Change Order pursuant to Article 9 unless the
Work is found to be deficient. If the Work is found to be deficient, Contractor
shall repair or replace it or take other appropriate corrective action. During
the Warranty Period, the provisions of Article 14 shall apply to any Work that
does not conform to the Warranties.

     

    ARTICLE
6 – CONTRACT PRICE

     

    6.1 Components
of the Contract Price. The Contract Price is divided by Unit and by
Consortium Member, as further described in Exhibit
H. [**]

     

    6.2 [**]

     

    
      
        
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    [**]

     

    6.3 [**]

     

    (a) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    
      
        
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    (b)           [**]

     

    ARTICLE
7 – PRICE ADJUSTMENT PROVISIONS

     

    The
amounts payable to Contractor under this Agreement (other than the Fixed Price
portion of the Contract Price) shall be subject to the Price Adjustment
Provisions described in Exhibit
J. [**] [**]

     

    ARTICLE
8 – PAYMENTS

     

    8.1 [**]
Payments.

     

    (a) Payment for
[**]. Prior to the commencement of any [**], Contractor shall provide to
Owner a projected payment plan[**] (the "Payment Plan", to be appended to this
Agreement as Exhibit
F-2). [**]Contractor shall deliver to Owner an invoice (in electronic
form) [**]based on costs invoiced to Contractor or incurred by Contractor due to
hours worked or otherwise during [**]. Payment shall be due in the form of an
electronic transfer of funds from Owner to Contractor's account by [**]. [**]the
Parties shall review the Payment Plan and the actual documented costs incurred
to determine whether changes are required to the Payment Plan to account for any
amounts over or under invoiced by Contractor. The Payment Plan shall be revised
and resubmitted to Owner by Contractor as a result of such review. In addition,
cost and schedule performance shall be evaluated on a monthly basis, the results
of which shall be provided to Owner, and corrective actions shall be developed
to remedy deficiencies identified by this review.

     

    (b) Payment for
[**]. Unless otherwise agreed by the Parties, billings for [**] shall be
subject to the same procedures and payment processes as set forth in Section
8.1(a). [**] shall be set forth in separate invoices from invoices for the [**].
In addition, cost and schedule performance shall be evaluated on a [**], the
results of which shall be provided to

     

    
      
        
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    Owner,
and corrective actions shall be developed to remedy deficiencies identified by
this review.

     

    8.2 Milestone
Payments. Contractor shall be paid for the portion of the Contract Price
constituting the [**] in accordance with the Milestone Payment Schedule in Exhibit
F-1. The applicable portion of the [**] shall be invoiced by Contractor
upon the completion (or substantial completion as provided below) of each
Milestone. Invoices for Milestone Payments for Major Equipment shall be issued
separately from invoices for other Milestone Payments. [**] Submittal of each
invoice by Contractor for a Milestone Payment shall constitute a representation
by Contractor that it has performed and provided the Work required for such
payment in accordance with this Agreement or otherwise covered by such invoice.
Payment shall be due from Owner within [**], in each case, following receipt of
the invoice. [**]

     

    8.3 Final
Payment. Upon achievement of Final Completion for each Unit, Contractor
shall submit to Owner an invoice for the final Milestone Payment for such Unit
and other payments due under this Agreement (the "Final Payment Invoice") which
shall set forth the remaining amounts due to Contractor pursuant to this
Agreement (minus any amounts that are still being held for Final Completion
Punch List items for such Unit that cannot be completed until the next Nuclear
Fuel re-load, as provided in Section 12.5). Payment of the Final Payment Invoice
shall be due from Owner within [**] of its submission to Owner. When submitting
the Final Payment Invoice for a Unit, Contractor shall: (i) submit a written
discharge, in form and substance reasonably satisfactory to both Parties,
confirming that the total of the

     

    
      
        
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    Final
Payment Invoice (minus any such Final Completion Punch List items) represents
full and final settlement of the monies due to Contractor for the performance of
the Work under this Agreement with respect to such Unit, (ii) include a waiver
against any mechanic's and materialman's liens; provided that the waiver shall
be conditioned on Contractor receiving payment pursuant to the Final Payment
Invoice and (iii) with the Final Payment Invoice for the Second Unit, return all
Sales Tax exemption certificates issued to Contractor and Subcontractors to
Owner or provide a statement that all such certificates have been destroyed or
have expired.

     

    8.4 Supporting
Documentation; Payment Disputes.

     

    (a) Contractor
shall submit invoices in a format agreed to by Owner. Contractor shall make
available such documentation and materials as Owner may reasonably require
substantiating Contractor's right to payment of any invoice. If any invoice is
deficient in any material respect, Contractor may be required by Owner to
resubmit that invoice in proper form; provided, however, that Owner shall pay
any portion of it that is not deficient or subject to dispute. Owner shall
review each invoice and shall make exceptions, if any, by providing Contractor
with written notice by the earlier of (i) such date the invoice is paid by Owner
or (ii) [**] after Owner receives the invoice along with evidence which
reasonably documents the contractual basis of such exceptions. If Owner provides
no exceptions within such time, Owner shall pay Contractor within the time
specified for payment above.

     

    (b) Payment
shall not waive Owner's right to dispute an invoice. Any amount of an invoice
that Owner disputes shall be resolved in accordance with Article
27.

     

    (i) Should
such dispute not be settled within [**] of the due date, Owner shall
pay[**].

     

    (ii) Once the
dispute is resolved, Owner shall pay any additional amount due or Contractor
shall refund any amount by which it was overpaid, as applicable, within [**]
after the date of the final resolution[**].

     

    (c) If for
any reason Owner fails to pay Contractor for all undisputed sums due and owing
by the due date or, for disputed amounts, by the date required as set forth in
(b)(i) above, Contractor shall notify Owner of the overdue payment[**]. If Owner
fails to make payment of any undisputed amount due within [**] following the due
date or fails to make payment of any disputed amount within [**] following the
date set forth in (b)(i) above, Contractor shall provide a second notice to
Owner in writing. If Owner fails to make payment of the undisputed amount due
within [**] following its receipt of this second notice[**].

     

    
      
        
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    (d) Owner may
take advantage of any discount identified in Contractor's invoice for prompt
payment.

     

    8.5 No
Acceptance by Payment. Owner's payment of any invoice does not constitute
approval or acceptance of any item or cost in that invoice nor shall Owner's
payment be construed to relieve Contractor of any of its obligations under this
Agreement.

     

    8.6 Security
for Payment and Performance.

     

    (a) Simultaneously
with the execution of this Agreement, (i) Westinghouse agrees to supply to Owner
a parent company guaranty from Toshiba in the form set forth as Exhibit
I-1 and (ii) Stone & Webster agrees to supply to Owner a parent
company guaranty from Shaw in the form set forth as Exhibit
I-2.

     

    (b) [**]

     

    (c) [**]

     

    
      
        
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    [**]

     

    (d) [**]

     

    8.7 Separate
Payments for Consortium Members. Each Contractor invoice shall designate
the amount of the payment due to each Consortium Member. Owner shall make
payment to each Consortium Member as indicated.

     

    ARTICLE
9 – CHANGES IN THE WORK

     

    9.1 Entitlement
to Change Order. The following, to the extent that they impact the
obligations of Contractor under this Agreement (each, a "Change"), shall entitle
Contractor to a Change Order in accordance with the provisions of this Article
9:

     

    (a) any
addition to, deletion from, or modification of the Facility or any change in the
Work, that is agreed by the Parties or that arises as a result of the issuance
of the COL;

     

    
      
        
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    (b) an
Uncontrollable Circumstance;

     

    (c) a Change
in Law;

     

    (d) issuance
of new ITAAC or revisions to ITAAC in existence as of the Effective
Date;

     

    (e) Contractor
encountering conditions at or affecting the Site not made known to Contractor or
are not evident or readily discernible upon Contractor's inspection of the Site
as provided in Section 3.6(d) and/or encountering Hazardous Materials for which
it is not responsible;

     

    (f) the
circumstances that entitle Contractor to a Change Order as provided for in
Section 5.6;

     

    (g) uncovering
of the Work (unless the Work is found to be deficient) as provided for in
Section 5.7(d);

     

    (h) any
breach of this Agreement by Owner of its obligations under this Agreement
(including, without limitation, the obligations under Section 3.6) or delay or
other demonstrable adverse impact on Contractor's or a Subcontractor's
activities under this Agreement resulting from delay by Owner in giving any
required approvals or in performing any of Owner's responsibilities under
Section 3.6 (other than any delay for which Contractor is responsible) or
interference by Owner or Owner's Personnel or Invitees (other than Contractor or
its Subcontractors or their Personnel or Invitees);

     

    (i) suspension
of the Work pursuant to Article 22 except to the extent that it arises as a
result of Contractor's act, omission or default;

     

    (j) failure
of Owner to issue the Full Notice to Proceed or Limited Notices to Proceed in
time to support Contractor's required activities to maintain the Project
Schedule as further described in Section 3.3;

     

    (k) an
instruction by Owner to Contractor to accelerate the performance of the Work
accepted by Contractor; or

     

    (l) any other
event or circumstance specifically identified in this Agreement as constituting
a Change or entitling Contractor to a Change Order.

     

    9.2 Owner-Directed
Changes. It is the intent of the Parties to preserve the design of the
Standard Plant, including the approach to the supply chain, construction,
licensing, operation and maintenance. However, Owner may request any Change,
provided it is technically feasible, with the understanding that such Change may
cause the Facility to no longer qualify as a Standard Plant, subject again to
Sections 9.3 through 9.5.

     

    9.3 Effect of
Changes. To the extent that a Change adversely affects Contractor's or
its Subcontractors' ability to perform the Work, increases the costs for the
Work, affects

     

    
      
        
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    Contractor's
ability to achieve the Net Unit Electrical Output Guarantee or Warranties or its
other obligations under this Agreement, or causes a delay in the Project
Schedule, Contractor shall be entitled to an equitable adjustment as appropriate
to the Contract Price, the Project Schedule, the Milestone Payment Schedule, the
Guaranteed Substantial Completion Dates, the Scope of Work and/or such other
parts of this Agreement as may be affected by such Change. Similarly, to the
extent that a Change enhances Contractor's or its Subcontractors' ability to
perform the Work, reduces the cost of the Work or its other obligations under
this Agreement, or shortens the Project Schedule, Owner shall be entitled to an
equitable adjustment as appropriate to the Contract Price, the Project Schedule,
the Milestone Payment Schedule, the Guaranteed Substantial Completion Dates, the
Scope of Work and/or such other parts of this Agreement as may be affected by
such Change. Any increase or decrease in the Contract Price resulting from a
Change shall be determined and shall be payable as follows:

     

    (i) [**]

     

    (ii) [**]

     

    9.4 Change
Orders. Contractor shall submit written notice of a Change to Owner as
soon as reasonably practicable under the circumstances after becoming aware of
the Change. Such notice shall include (or where not possible, be followed by)
notice of the following as such information becomes
available:

     

    (a) details
of the effect of the Change on the provisions of the
Agreement;

     

    (b) options
to mitigate the costs or delays or enhance the savings associated with the
Change;

     

    (c) an
evaluation of the impact on the Licensing Basis as of the date of the
Change;

     

    (d) a written
proposal for executing the Work insofar as it has changed;
and

     

    (e) changes
that are needed to the Milestone Payment Schedule so that it reflects the
changes to the Project Schedule.

     

    Change
Orders shall be agreed to in writing by the Parties. Each Change Order shall
show the adjustments agreed to by the Parties. If Owner requests a proposal for
a Change in the Work from Contractor or should Contractor submit a notice for a
Change under Section 9.1, a Change Order shall be issued to reimburse Contractor
for any charges incurred, or to compensate Owner for any resulting savings,
including but not limited to charges for or savings in estimating services,
design services or preparation of proposed revisions to the Agreement. Any
changed

     

    
      
        
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    Work
performed by Contractor prior to the execution of a Change Order shall be at
Contractor's risk.

     

    9.5 Disputes
over Changes. In the event the Parties are unable to agree on any aspect
of a Change Order, the dispute shall be resolved in accordance with the
provisions of Article 27.

     

    9.6 Changes for
Contractor's Convenience.

     

    (a) Contractor
shall have the right to take any action at its own expense that is generally
consistent with this Agreement and that is reasonably necessary to meet the
requirements of this Agreement, including performing its obligations in
accordance with Good Industry Practices.[**]

     

    (b) [**]

     

    (c) [**].

     

    (d) [**]

     

    (e) [**]

     

    (f) [**]

     

    
      
        
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    9.7 Optional
Services and Equipment. The Parties acknowledge and agree that Exhibit
A sets forth certain additional Services and Equipment, one or more of
which, at the option of Owner, shall be included in the Work. If Owner desires
to exercise such option, it shall provide Contractor written notice thereof, in
which case such item shall be included in the Work[**]

     

    9.8 [**]

     

    ARTICLE
10 – UNCONTROLLABLE CIRCUMSTANCES

     

    10.1 Performance
Excused. No Party shall be considered to be in default or in breach of
its obligations under this Agreement to the extent that performance of such
obligations is prevented, impacted or delayed by any Uncontrollable Circumstance
which arises.[**] Contractor shall provide information to Owner to explain its
determination of the manner in which the Uncontrollable Circumstance has
affected Owner[**].

     

    10.2 Notice.
If a Party's performance of its obligations under this Agreement is prevented,
impacted or delayed by an Uncontrollable Circumstance, then it shall notify the
other Party of the obligations, the performance of which is prevented, impacted
or delayed, and the nature and cause of the event in writing within [**]after
the notifying Party or its Project Director becomes aware of the Uncontrollable
Circumstance. The Party affected by an Uncontrollable Circumstance shall provide
the other Party with weekly updates (i) estimating its expected duration, the
cost of any remedial action, and the probable impact on the performance of its
obligations hereunder, (ii) of the actions taken to remove or overcome the
Uncontrollable Circumstance and (iii) of the efforts taken to mitigate or limit
damages to the other Party. The Party affected by an Uncontrollable Circumstance
shall also provide written notice to the other Party when it ceases to be so
affected.

     

    
      
        
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    ARTICLE
11 – TESTING

     

    11.1 Scope and
Objective of Testing.

     

    (a) The scope
of testing associated with this Article covers that testing which takes place
for each Unit at the Site. The testing that shall be performed on-Site consists
of Construction and Installation Tests, Preoperational Tests, Startup Tests and
the Performance Test, each as described in this Article 11. Contractor shall
provide on a [**] the assistance to Owner during the Preoperational Tests, the
Startup Tests and the Performance Test (including without limitation Technical
Support) required hereunder.

     

    (b) The
"Joint Test Working Group" consists of an organizational group of representative
personnel from each Party performing testing services, technical supervision
and/or field support working with Owner's operating organization. The Joint Test
Working Group shall oversee the implementation of the Preoperational Tests
program and the Startup Tests program, including planning, scheduling and
performance of all Preoperational Tests and Startup Tests. Owner shall delegate
to Contractor the implementation and direction of the Joint Test Working Group.
Contractor shall have overall responsibility and authority for technical
direction of the initial test program, consisting of the Construction and
Installation Tests, and Preoperational Tests for conducting those tests in
accordance with the Project Schedule, and will act as the chairman of the Joint
Test Working Group. Upon Unit Mechanical Completion, the Joint Test Working
Group chairman will continue to have overall responsibility and authority for
the technical direction of the Start-up Test program, but operation and control
of the Unit shall reside entirely with Owner. Owner shall be responsible for
conducting the Startup Tests and the Performance Tests in accordance with the
Project Schedule and any delay in performance of the tests not due to the fault
of Contractor or its Personnel shall entitle Contractor to a Change Order
pursuant to Article 9. The Joint Test Working Group shall review and evaluate
Construction and Installation Tests, Preoperational Tests and Startup Tests
results and test turnover packages and recommend acceptance of the Turnover to
Owner. Owner is responsible for a startup administrative manual and
administrative procedures that provide detailed requirements and govern the
execution of activities associated with the conduct of the test program,
including the organization, structure and functional relationships of the Joint
Test Working Group and the startup organization. The startup administrative
manual shall provide direction for interface control of the internal and
external transfer of information, design data, test results and other documents
from one organization to another and the Turnover of systems and Equipment from
Contractor to Owner. The startup administrative manual shall be prepared by
Contractor for Owner on a [**].

     

    11.2 Construction
and Installation Tests.

     

    (a) The
adequacy of construction and installation of components and systems shall be
verified by construction inspection and installation tests. During the
construction period, Contractor erects the structure, installs plant equipment
and performs construction verification and inspection tests. All of these
activities are executed, controlled, and documented in accordance with
Contractor's approved procedures.

     

    
      
        
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    During construction, Contractor completes the
Construction and Installation Test program in which various electrical and
mechanical tests are performed including
but not limited to the following:

     

    
      	
              ·  

            	
              Cleaning
      and flushing

            

    

     

    
      	
              ·  

            	
              Hydrostatic
      testing

            

    

     

    
      	
              ·  

            	
              Checks
      of electrical wiring

            

    

     

    
      	
              ·  

            	
              Valve
      testing

            

    

     

    
      	
              ·  

            	
              Energization
      and operation of equipment

            

    

     

    
      	
              ·  

            	
              Calibration
      of instrumentation

            

    

     

    (b) During
construction, Contractor completes the building of components associated with
the various systems. The associated piping, wiring, equipment, and controls are
verified to be installed in accordance with approved final design drawings.
Construction and Installation Tests are performed and all appropriate
documentation and exceptions to construction verification or tests, or
incomplete tests shall be recorded as Turnover exceptions. On a system basis,
completion of this program demonstrates that the system is ready for
preoperational testing. The system shall be turned over to the Joint Test
Working Group.

     

    11.3 Preoperational
System Tests. Following the Construction and Installation Tests of the
particular components and systems, the preoperational system tests are
conducted. Activities during the Preoperational Tests are conducted in
accordance with a Startup Administrative Manual as provided in the Project
Execution Plan. Initially, the Joint Test Working Group prepares the
system/components for dynamic testing. Systems are flushed, tuned, and prepared
for preoperational and acceptance testing. The Joint Test Working Group, while
coordinating any remaining functional testing, shall typically direct Owner's
operations personnel in the initial starting and operation of the various
systems.

     

    (a) Preoperational
Tests shall be performed to demonstrate that the components and systems perform
in accordance with selected design requirements so that initial Nuclear Fuel
loading, initial criticality, and subsequent power operation can be safely
undertaken in accordance with Law and applicable Government Approvals.
Preoperational Tests at elevated pressure and temperature are referred to as hot
functional tests. Contractor shall provide [**] advance notice to Owner of the
scheduled testing dates via updates to the Project Schedule.

     

    The
general objectives of the Preoperational Test program are the
following:

     

    
      	
              ·  

            	
              Demonstrate
      that essential plant components and systems, including alarms and
      indications, meet appropriate requirements based on the
      design.

            

    

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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              ·  

            	
              Provide
      documentation of the performance and condition of the components and
      systems.

            

    

     

    
      	
              ·  

            	
              Provide
      baseline test and operating data on equipment and systems for future use
      and reference.

            

    

     

    
      	
              ·  

            	
              Operate
      Equipment for a sufficient period to demonstrate performance in accordance
      with the Preoperational Test
procedures.

            

    

     

    
      	
              ·  

            	
              Demonstrate
      that the systems operate on an integrated
basis.

            

    

     

    Abstracts
for the Preoperational Tests for portions of systems/components that perform
safety-related functions; perform defense-in-depth functions; contain,
transport, or isolate radioactive material; and for other applicable systems are
specified in Chapter 14 of the Design Control Document.

     

    (b) Contractor
shall develop the Preoperational Test procedures consistent with its procedures
for the Standard Plant and shall provide the Preoperational Test procedures to
Owner in advance of the testing. A team referred to as the "Preoperational Test
Group" shall be established by the Joint Test Working Group and be manned by
each Party's personnel as mutually agreed by the Parties. The Preoperational
Test Group shall consist of engineering test leads and test personnel. The
Preoperational Test Group is responsible for conducting the Preoperational Tests
in accordance with the Project Schedule.

     

    (c) Facility
equipment used in the performance of Preoperational Tests shall be operated by
Owner in accordance with appropriate operating procedures, thereby giving
Owner's operating staff an opportunity to gain experience in using these
procedures and demonstrating their adequacy prior to plant initial
criticality.

     

    (d) Contractor
shall review the results of the Preoperational Tests with the Preoperational
Test Group and notify Owner when it may proceed with the Startup Test
program.

     

    11.4 Startup
Tests Objectives and Protocol.

     

    (a) The
Startup Test program begins with initial Nuclear Fuel loading after the
Preoperational Tests necessary for Nuclear Fuel loading have been successfully
completed. Startup Tests can be grouped into four broad
categories:

     

    
      	
              ·  

            	
              Tests
      related to initial Nuclear Fuel
loading.

            

    

     

    
      	
              ·  

            	
              Tests
      performed after initial Nuclear Fuel loading but prior to initial
      criticality.

            

    

     

    
      	
              ·  

            	
              Tests
      related to initial criticality and those performed at low power (less than
      five percent (5%)).

            

    

     

    
      	
              ·  

            	
              Tests
      performed at power levels greater than five percent
  (5%)

            

    

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    During
performance of the Startup Test program, Owner's operating staff shall have the
opportunity to obtain practical experience in the use of appropriate operating
procedures while a Unit progresses through heatup, criticality, and power
operations.

     

    (b) The
general objectives of the Startup Test program are to:

     

    
      	
              ·  

            	
              Install
      the Nuclear Fuel in the Unit reactor vessel in a controlled and safe
      manner.

            

    

     

    
      	
              ·  

            	
              Verify
      that the Unit reactor core and components, equipment, and systems required
      for control and shutdown have been assembled according to design and meet
      specified performance requirements.

            

    

     

    
      	
              ·  

            	
              Achieve
      initial criticality and operation at power in a controlled and safe
      manner.

            

    

     

    
      	
              ·  

            	
              Verify
      that the operating characteristics of the Unit reactor core and associated
      control and protection equipment are consistent with design requirements
      and accident analysis assumptions.

            

    

     

    
      	
              ·  

            	
              Obtain
      the required data and calibrate equipment used to control and protect the
      Facility.

            

    

     

    
      	
              ·  

            	
              Verify
      that the Unit responds to the transient tests as described in the Design
      Control Document.

            

    

     

    
      	
              ·  

            	
              Verify
      the operating characteristics of the Unit secondary plant equipment
      (turbine, generator, isophase bus duct and main power transformer, heater
      balance, main steam, extraction steam, steam dump, condenser, condensate,
      feedwater, make-up water, cooling tower, main feedwater pumps, etc.) and
      associated control equipment.

            

    

     

    Abstracts
of the Startup Tests are provided in Chapter 14 of the Design Control Document.
Contractor shall develop the Startup Test procedures per the guidelines
documented in Chapter 14 of the Design Control Document, in accordance with its
procedures for the Standard Plant and shall provide the Startup Test procedures
to Owner in advance of the testing. A team referred to as the "Startup Test
Group" shall be established by the Joint Test Working Group and be manned by
each Party's personnel as mutually agreed by the Parties. The Startup Test Group
shall consist of engineering test leads and test personnel. The Startup Test
Group is responsible for conducting the Startup Tests in accordance with the
agreed upon Project Schedule. Contractor shall provide Technical Support to
Owner during these tests.

     

    (c) Contractor
shall give notice to Owner of the date (the "Ready for Startup Test Date") when
the Unit is ready, or would have been ready [**] except for a delay caused by
Owner or its Personnel or resulting from an Uncontrollable Circumstance, for the
Startup Tests on such Unit to begin; provided, however, that such notice shall
not be given until the Construction and Installation Tests are completed and
the

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    Preoperational
Tests are underway such that the Unit will be ready for Startup Tests within
ninety (90) Days from such notice.

     

    (i) In the
event of any such delay, the provisions of Article 9 shall apply. If the Work is
suspended as a result of the delay, the Parties shall determine as part of the
Change Order process such matters as (A) maintenance procedures for the Unit to
be followed by Owner until the Startup Test can occur, (B) whether or not
Contractor should demobilize its forces for the duration of the suspension, (C)
if demobilization is to occur, Contractor Personnel that shall either remain on
the Site and/or be permitted to examine the Unit and Owner's maintenance records
on a routine basis to determine whether the agreed maintenance procedures are
being followed and (D) validation procedures to be undertaken on the Unit to
re-determine its readiness for the Startup Test prior to conducting the Startup
Test.

     

    (ii) To the
extent that a delay caused by Owner or its Personnel or resulting from an
Uncontrollable Circumstance delays any Startup Test by more than [**] from the
Ready for Startup Test Date, Contractor shall be entitled to the Milestone
Payments that would be due upon or prior to Startup Test Completion, minus the
direct costs attributable to the Technical Support to have been provided by
Contractor for such Startup Test(s).

     

    (iii) At such
time as Owner is ready for the Startup Test to be conducted, Contractor shall
(if applicable) re-mobilize at the Site on a mutually agreed date and shall
proceed to provide the Technical Support required for the Startup Test, followed
by the Performance Test and the other activities required to achieve Substantial
Completion and Final Completion. Prior to initiating the Startup Test,
Contractor shall have the right, pursuant to the agreed validation procedures
determined as described in clause (i) above, to determine whether any
degradation of the Unit has occurred. If degradation of the Unit has occurred,
Contractor shall be entitled to a Change Order pursuant to Article 9 for the
costs and time required to perform corrections to the Unit to return it to a
state ready for the Startup Test.

     

    (iv) If the
delay caused by Owner or its Personnel or resulting from an Uncontrollable
Circumstance delays any Startup Test by more than [**] from the Ready for
Startup Test Date, then (x) the Startup Test shall be deemed to have been
completed and Substantial Completion shall be deemed to have occurred for
purposes of the Warranties, Section 22.2 and any other provisions of the
Agreement pertaining to the Guaranteed Substantial Completion Date; (y)
Contractor shall be entitled to the remaining Milestone Payments; and (z) Final
Completion shall be deemed to have occurred provided that Contractor completes
such other Work that can be completed notwithstanding the inability to conduct
the Startup Test and Performance Test. At such time, if any, as Owner is ready
for the Startup Test to be conducted, Contractor's sole responsibility hereunder
with respect to such Startup Test shall be to provide Technical Support for the
testing on a Time and Materials Basis.

     

    11.5 Performance
Tests.

     

    (a) Contractor
shall develop the Performance Test procedures consistent with its procedures for
the Standard Plant and shall provide the Performance Test procedures to Owner
six (6) months in advance of the testing for review. Performance Test procedures
must

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
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    be
approved by Owner, such approval not to be unreasonably withheld. Owner shall
provide all consumables, semi-skilled and skilled labor, fully trained and
licensed operators and any other material or services required for the tests.
Contractor shall maintain a minimal construction staff and labor on Site to
support the testing process.

     

    (b) A test
(the "Net Unit Electrical Output Test") shall be run to determine whether the
Unit meets the Net Unit Electrical Output Guarantee. The Net Unit Electrical
Output Test for the Unit shall be conducted in general compliance with Power
Test Code 46 (PTC-46) with the NSSS power no less than [**] of rated power
measured using the Secondary Calorimetric Methodology and for the periods and
duration discussed below. The test shall consist of [**] in duration. If upon
evaluation of the data more than [**] of the test runs are found unacceptable
for reasons of equipment failure or environmental instability, additional runs
will be made. Test run duration may be extended if necessary to reduce the
random uncertainty in the test results to less than [**]. Data collected within
each test run will be averaged and the results corrected to guarantee reference
conditions. The final Net Unit Electrical Output shall be the average of the
corrected net electrical output for all of the successful test
runs.

     

    [**]

     

    The Net
Unit Electrical Output Test for the Unit shall be determined during a period of
continuous operation of [**]. Such Net Unit Electric Output Test shall be
satisfactorily completed when the Unit has demonstrated its capability of
meeting the Net Unit Electrical Output Guarantee as described above. The
measurement frequency shall be in compliance with PTC-46 throughout the
test.

     

    (c) Contractor
shall give notice to Owner of the date (the "Ready for Performance Test Date")
when the Unit is ready, or would have been ready [**] except for a delay caused
by Owner or its Personnel or resulting from an Uncontrollable Circumstance, for
the Performance Test on such Unit to begin; provided, however, that such notice
shall not be given until the Construction and Installation Tests and the
Preoperational Tests are completed and the Startup Tests are underway and would
be completed within [**] [**] unless there has been a delay as described in
Section 11.4(c). In the event that there has been a delay in conducting the
Startup Test due to a delay caused by Owner or its Personnel or resulting from
an Uncontrollable Circumstance, then the Ready for Performance Test Date shall
be [**] after the Ready for Startup Test Date [**].

     

    (i) In the
event of any such delay, the provisions of Article 9 shall apply. If the Work is
suspended as a result of the delay, the Parties shall determine as part of the
Change Order process such matters as (A) maintenance procedures for the Unit to
be followed by Owner until the Performance Test can occur, (B) whether or not
Contractor should

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    demobilize
its forces for the duration of the suspension, (C) if demobilization is to
occur, Contractor Personnel that shall either remain on the Site and/or be
permitted to examine the Unit and Owner's maintenance records on a routine basis
to determine whether the agreed maintenance procedures are being followed and
(D) validation procedures to be undertaken on the Unit to re-determine its
readiness for the Performance Test prior to conducting the Performance
Test.

     

    (ii) To the
extent that a delay caused by Owner or its Personnel or resulting from an
Uncontrollable Circumstance delays any Performance Test by more than [**] from
the Ready for Performance Test Date, Contractor shall be entitled to the
Milestone Payment that would be due upon Substantial Completion, minus the
direct costs attributable to the Technical Support to have been provided by
Contractor for such Performance Test.

     

    (iii) At such
time as Owner is ready for the Performance Test to be conducted, Contractor
shall (if applicable) re-mobilize at the Site on a mutually agreed date and
shall proceed to conduct the Performance Test, followed by the other activities
required to achieve Substantial Completion and Final Completion of the Unit.
Prior to initiating the Performance Test, Contractor shall have the right,
pursuant to the agreed validation procedures determined as described in clause
(i) above, to determine whether any degradation of the Unit has occurred. If
degradation of the Unit has occurred, Contractor shall (without duplication of
Changes to which Contractor is entitled under Section 11.4(c)(iii)) be entitled
to a Change Order pursuant to Article 9 for the costs and time required to
perform corrections to the Unit to return it to a state ready for the
Performance Test.

     

    (iv) If the
delay caused by Owner or its Personnel or resulting from an Uncontrollable
Circumstance delays the Performance Test by more than [**] from the Ready for
Performance Test Date, then (x) the Performance Test shall be deemed to have
been completed and Substantial Completion shall be deemed to have occurred for
purposes of the Warranties, Section 22.2 and any other provisions of the
Agreement pertaining to the Guaranteed Substantial Completion Date and the Net
Unit Electrical Output Guarantee; (y) Contractor shall be entitled to the
remaining Milestone Payments; and (z) Final Completion will be deemed to have
occurred provided that Contractor completes such other Work that can be
completed notwithstanding the inability to conduct the Performance Test. At such
time, if any, as Owner is ready for the Performance Test to be conducted,
Contractor's sole responsibility hereunder with respect to such Performance Test
and the Net Unit Electrical Output Guarantee shall be to provide Technical
Support for the testing on a Time and Materials Basis.

     

    (v) Except as
provided in Section 11.5(c)(iv), should a Unit when tested be assessed to have
not fully met the Net Unit Electrical Output Guarantee, Contractor shall proceed
as provided below in Section 11.6. Contractor shall promptly notify Owner of the
Unit's readiness for any required retest, specifying the time and date of such
test, such date being not less than seven (7) Days from the date of
notification.

     

    11.6 Net Unit
Electrical Output Guarantee. Subject to the limits of liability set forth
in Section 13.2, and subject to the provisions of this Agreement and in
accordance with the Operating Procedures and Maintenance Procedures and Facility
Manuals, Contractor guarantees

     

    
      
        
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    that the
Net Unit Electrical Guarantee for a Unit, when loaded with the Nuclear Fuel,
shall be [**] (the "Net Unit Electrical Output Guarantee") determined using the
conditions and calculation as set forth in Exhibit
L [**] pursuant to Exhibit
L, as evidenced by the Net Unit Electrical Output Test.
[**].

     

    (a) In the
event a Unit does not meet the Net Unit Electrical Output Guarantee as of the
Guaranteed Substantial Completion Date[**]. [**].

     

    (b) The Net
Unit Electrical Output Guarantee is subject to the conditions stated in Section
14.4(c) and to the following:

     

    (i) Owner has
provided access to the electrical grid and sufficient electrical load to perform
the test; and

     

    
      
        
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    (ii) The Net
Unit Electrical Output Guarantee is based upon the conditions specified in Exhibit
L. If conditions during the test differ from those specified, adjustments
shall be made accordingly to the Net Unit Electrical Output using graphs, tables
and other data as prepared by Contractor, after consultation with Owner, to
establish the Net Unit Electrical Output to compare to the Net Electric Output
Guarantee.

     

    (c) Necessary
auxiliary equipment for producing the Net Unit Electrical Output shall include
only the Equipment loads provided in Exhibit
L.

     

    (d) The Net
Unit Electrical Output Guarantee shall be demonstrated by the Net Unit
Electrical Output Test to be conducted at the times and subject to the
conditions set forth herein. Satisfactory completion of such test or re-test, or
the payment of [**] to Owner shall relieve Contractor of any further obligation
with respect to the Net Unit Electrical Output Guarantee.

     

    ARTICLE
12 – STAGES OF COMPLETION

     

    12.1 Turnover.

     

    (a) Turnover
refers to the sequential mechanical completion of each system and structure of a
Unit. "Turnover" of a system or structure shall occur upon the satisfaction of
the following conditions:

     

    (i) Such
system, structure or component (A) shall be mechanically and electrically sound;
(B) shall have been cleaned out as necessary to perform the Construction and
Installation Tests for such system or structure; and (C) the subsystems
comprising such system, structure or component shall have been checked for
alignment, lubrication, and electrical continuity and hydrostatic and pneumatic
pressure integrity; and

     

    (ii) the
Construction and Installation Tests for such system or structure shall have been
completed such that Owner can confirm that the criteria for the Construction and
Installation Tests have been met; and

     

    (iii) Structures,
systems and components or portions thereof shall be completed, necessary
coatings applied, and the area cleaned; and

     

    (iv) The
Preoperational Test has validated compliance with the design specifications to
the extent permitted under the Unit's configuration status. (For example, some
design requirements cannot be validated until after Nuclear Fuel
loading.)

     

    (b) Notice and
Acceptance of Turnover. When Contractor believes the provisions of
Section 12.1(a) have been satisfied with respect to each system or structure,
Contractor shall deliver a written notice of such determination through the
Joint Test Working Group to Owner with sufficient detail to enable Owner to
determine whether Contractor has achieved such requirements. Turnover of such
system or structure shall be deemed to have occurred within [**] following
delivery of such determination to Owner, unless within such [**] period, Owner
has notified Contractor in writing of

     

    
      
        
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    why it
disagrees that Turnover has occurred, in which case (and without prejudice to
Contractor's right to submit a Claim) Contractor shall take such corrective
actions as are necessary and resubmit its written notice of determination to
Owner in accordance with this Section 12.1(b). Upon Turnover of a system or
structure, Contractor shall turn over risk of loss and care, custody, control
and operation of such system, structure or component to Owner in accordance with
Section 21.2.

     

    12.2 Preoperational
Test Completion.

     

    (a) Unit
Mechanical Completion. “Unit Mechanical Completion” shall be achieved
when the conditions as stated in Section 11.4(a) for the commencement of Nuclear
Fuel loading the Unit have been achieved. When submitting its written notice of
determination for such Unit Mechanical Completion, Contractor shall include
notice that Turnover has occurred.

     

    (b) "Preoperational
Test Completion" for a Unit shall be deemed to have occurred upon satisfactory
completion of the Preoperational Tests for the Unit.

     

    (c) Contractor
shall notify Owner when the provisions of Section 12.2(b) have been satisfied.
Owner shall accept such Unit as having achieved Preoperational Test Completion,
by delivering to Contractor notice of that acceptance within [**] following
receipt of Contractor's notice that Preoperational Test Completion has occurred;
alternatively, Owner may disagree that Preoperational Test Completion has
occurred by notifying Contractor in writing of why it disagrees that
Preoperational Test Completion has occurred. If no notice is issued by Owner
within the required time period, Owner shall be deemed to have accepted that
Preoperational Test Completion has occurred. The date of Preoperational Test
Completion shall be the date the Unit has achieved Preoperational Test
Completion and not the date of Owner's acceptance.

     

    12.3 Startup
Test Completion.

     

    (a) Prior to
commencing the Startup Tests, the Parties shall have jointly determined and
agreed upon a punch list of the remaining Work for each Unit. The items on the
punch list that are required to be completed before the commencement of the
Startup Tests for reasons of safety or compliance with applicable Laws shall
have been completed prior to the commencement of the Startup
Tests.

     

    (b) "Startup
Test Completion" for a Unit shall be deemed to have occurred upon satisfactory
completion of the Startup Test for the Unit or the deemed completion of a
Startup Test pursuant to Section 11.4(c)(iv).

     

    (c) Contractor
shall notify Owner when the provisions of Section 12.3(b) have been satisfied.
Owner shall accept such Unit as having achieved Startup Test Completion, by
delivering to Contractor notice of that acceptance within [**] following receipt
of Contractor's notice that Startup Test Completion has occurred; alternatively,
Owner may disagree that Startup Test Completion has occurred by notifying
Contractor in writing of why it disagrees that Startup Test Completion has
occurred. If no notice is issued by Owner within the required time period, Owner
shall be deemed to have accepted that Startup Test Completion
has

     

    
      
        
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    occurred.
The date of Startup Test Completion shall be the date the Unit has achieved
Startup Test Completion and not the date of Owner's acceptance.

     

    12.4 Substantial
Completion.

     

    (a) "Substantial
Completion" for a Unit shall have occurred upon satisfactory completion of a
Performance Test, the deemed completion of a Performance Test pursuant to
Section 11.5(c)(iv), or the payment of [**] by Contractor.

     

    (b) Contractor
shall notify Owner when the provisions of Section 12.4(a) have been satisfied.
Owner shall accept such Unit as having achieved Substantial Completion, by
delivering to Contractor notice of that acceptance within [**] following receipt
of Contractor's notice that Substantial Completion has occurred; alternatively,
Owner may disagree that Substantial Completion has occurred by notifying
Contractor in writing of why it disagrees that Substantial Completion has
occurred. If no notice is issued by Owner within the required time period, Owner
shall be deemed to have accepted that Substantial Completion has occurred. The
date of Substantial Completion shall be the date the Unit has achieved
Substantial Completion and not the date of Owner's
acceptance.

     

    12.5 Punch
List. Prior to Substantial Completion of a Unit, the Parties shall
jointly determine and agree upon a comprehensive list of remaining Work, which
shall be of a minor nature and not prevent commercial operation of the Unit (the
"Final Completion Punch List"). [**] In the event that any items on the Final
Completion Punch List cannot be performed until the next Nuclear Fuel re-load,
Final Completion of a Unit shall be deemed to have been achieved for purposes of
this Agreement provided that Contractor agrees in writing with Owner to return
to complete such Work at the time of the next Nuclear Fuel
re-load[**]

     

    12.6 Final
Completion.

     

    (a) Subject
to 12.5, "Final Completion" of a Unit shall be deemed to have occurred upon the
completion of the Final Completion Punch List and the other Work required under
the Agreement with the exception of obligations under the
Warranties.

     

    (b) Contractor
shall notify Owner when the provisions of Section 12.6(a) have been satisfied.
Owner shall accept the Unit as having achieved Final Completion by delivering to
Contractor notice of that acceptance within [**] following receipt of
Contractor's notice that Final Completion has occurred; alternatively, Owner may
reject the Unit as having

     

    
      
        
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request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    achieved
Final Completion by notifying Contractor in writing of why it disagrees that
Final Completion has occurred. If no notice is issued by Owner within the
required time period, Owner shall be deemed to have accepted that Final
Completion has occurred. The date of Final Completion shall be the date the Unit
has achieved Final Completion and not the date of Owner's
acceptance.

     

    (c) In the
event that Contractor is unable to achieve Final Completion within [**]
following Substantial Completion of the Second Unit (or if there is no Second
Unit, the First Unit) due to the fact that Owner limits Contractor's access to
the Facility or otherwise does not allow Contractor to take the necessary
actions to achieve Final Completion, Final Completion shall be deemed to have
occurred; provided that the foregoing shall not apply with respect to Final
Completion Punch List items that cannot be completed until the next Nuclear Fuel
re-load as provided in Section 12.5.

     

    ARTICLE
13 – [**]

     

    13.1 [**]

     

    
      	
              [**]

            	
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    [**]

     

    
      
        
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    [**]

     

    13.2 [**]

     

    13.3 [**]

     

    13.4 [**]

     

    
      
        
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    [**]

     

    ARTICLE
14 – WARRANTY

     

    14.1 Equipment.

     

    (a) Equipment
Warranty.

     

    (i) Contractor
warrants that the Equipment and each Unit [**] (the "Equipment
Warranty").

     

    (ii) The
Equipment Warranty shall commence upon [**] and shall expire on [**] (the
"Standard Equipment Warranty Period")[**].

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    
      
        
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    [**]

     

    (b) Remedy.
If, for non-conforming Equipment discovered during the applicable Warranty
Period, Owner promptly notifies Contractor, Contractor shall perform such repair
or replacement as required to meet the Equipment Warranty.
[**]

     

    (c) Warranty
Work Deferral. At Owner's option, Warranty Work that impacts operation of
the Facility may be deferred until the time of the Unit's next regularly
scheduled maintenance outage and the Warranty provisions hereunder shall apply
notwithstanding that such outage occurs after the end of the Standard Equipment
Warranty Period. If Contractor advises Owner that deferral of the Warranty Work
can reasonably be expected to result in damage to the Unit and/or Equipment
which occurs after Contractor's advice and results from deferral of such
Warranty Work, Owner may elect to use the Unit and/or Equipment at its risk. In
no event may Owner defer the Warranty Work beyond [**] from the date it would
have been performed by Contractor without Owner's deferral.

     

    (d) Additional
Owner Obligations. As long as any Equipment supplied hereunder is subject
to warranty, Owner shall:

     

    (i) Afford
Contractor an opportunity to review Owner's system of developing and recording
data related to Facility performance;

     

    (ii) Provide,
without cost to Contractor, any required decontamination to reasonable limits
that shall allow Contractor to perform its obligations under this Article
14

     

    
      
        
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    and all
necessary personnel and facilities for the removal, reinstallation, repair and
other Site activities that may be occasioned by the presence of radioactive
contamination;

     

    (iii) Provide
authorized personnel of Contractor and its Subcontractors reasonable access to
the Facility should Contractor decide to observe the manner in which the
Facility is operated and maintained;

     

    (iv) Provide
authorized personnel of Contractor and its Subcontractors reasonable access to
operation and maintenance records of Owner; and

     

    (v) Afford
Contractor at its expense the opportunity to attend and be heard during the
presentations to any Government Authority relating to the Facility and Equipment
performance.

     

    Should
Owner not provide such of the foregoing as are required by Contractor, such
action shall cause Contractor's obligations to terminate with respect to the
particular claimed defect to the extent that Owner's failure caused prejudice to
Contractor.

     

    (e) Working
Access to Equipment and Plant Support Activities to be Provided by Owner.
The plant support personnel and facilities to be provided by Owner in accordance
with Section 14.1(b) are as follows:

     

    (i) operations
support to establish the required plant conditions for the
repairs;

     

    (ii) make the
plant systems, structures, and components available and placed in the proper
configuration;

     

    (iii) provide
the valve clearances and tag-outs necessary;

     

    (iv) provide
the necessary licensed operators in the control room and containment as required
by the COL;

     

    (v) establish
and maintain appropriate and acceptable industrial safety conditions in
accordance with Laws, Good Industry Practices, and utility policy such that
reasonably unencumbered access to the required work areas is enabled for all
personnel;

     

    (vi) as
appropriate, provide body harnesses and/or personal flotation devices in
sufficient quantities such that reasonably unencumbered access to the required
work areas is enabled for all personnel;

     

    (vii) provide
safe scaffolding meeting applicable OSHA standards (as
required);

     

    (viii) provide
suitable ambient lighting;

     

    
      
        
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    (ix) provide
free and unobstructed access to the Site, including maintained storage areas and
roadways. Floor conditions shall be suitable for crane and truck
operation;

     

    (x) provide
access such as remove/reinstall cubicle plugs and other related plant
facilities, such as piping, ductwork, cable trays, platforms, insulation,
etc.;

     

    (xi) provide
logistics support and labor for moving equipment/materials into and out of the
plant and shipping;

     

    (xii) provide
lay down area(s) for equipment storage, set-up, staging and operation. Area
requirements shall depend on the scope of services
performed;

     

    (xiii) provide
areas for storage of low specific activity and clean equipment boxes and/or
cargo containers. The area(s) shall vary depending on storage configurations and
scope of services;

     

    (xiv) establish
and maintain appropriate and acceptable radiological conditions in accordance
with Laws, Good Industry Practices, and utility policy such that reasonably
unencumbered access to the required work areas is enabled for all
personnel;

     

    (xv) provide
anti-contamination clothing, lockers, change area, dosimetry, health physics and
radiation protection service and badging for Site access as typically
required;

     

    (xvi) provide
official whole body exposure data for Contractor personnel upon personnel
departure from the Site;

     

    (xvii) provide
Gamma isotopic analysis to determine radioactivity of waste;

     

    (xviii) provide
breathing air and respiratory protection as necessary;

     

    (xix) provide
plant compressed air as required;

     

    (xx) provide
air for ventilation;

     

    (xxi) provide
110V, 220V and 480V power as required;

     

    (xxii) provide
plant and deionized water;

     

    (xxiii) make
available to Contractor, and maintain in an operable condition those hand tools,
special tools, and calibrated equipment necessary;

     

    (xxiv) allow
access to machine shop and welding facilities, and hot tool crib access, as
required;

     

    
      
        
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    (xxv) provide
crane operators, including polar crane availability on an as scheduled basis,
and any other personnel necessary to complete the tasks outside of Contractor
scope;

     

    (xxvi) provide
for consumables such as wipes and rags, and disposal of all contaminated
materials;

     

    (xxvii) provide
QA/QC coverage as required in the Site approved procedures;
and

     

    (xxviii) provide
outside phone lines, sanitation facilities and drinking
water.

     

    (f) Conditions.
Such repair or replacement shall constitute complete fulfillment of Contractor
obligation under the Equipment Warranty, and upon the expiration of the
applicable Warranty Period, all such obligations shall
terminate.

     

    14.2 Services
Warranty. Contractor warrants that the Services [**] (the "Services
Warranty"). If any portion of the Services fails to comply with this Services
Warranty and Owner promptly notifies Contractor of such non-conformance along
with evidence which reasonably demonstrates Contractor's culpability, Contractor
shall [**]. The Services Warranty Period shall be [**] (the "Services Warranty
Period").

     

    At
Owner's option, Warranty Work may be deferred until the time of the Unit's next
regularly scheduled maintenance outage and the Warranty provisions hereunder
shall apply notwithstanding that such outage occurs after the end of the
Services Warranty Period. If Contractor advises Owner that deferral of the
Warranty Work can reasonably be expected to result in damage to the Unit and/or
Equipment which occurs after Contractor's advice and results from deferral of
such Warranty Work, Owner may elect to use the Unit and/or Equipment at its
risk. In no event may Owner defer the Warranty Work beyond [**] from the date it
would have been performed by Contractor without Owner's deferral.

     

    14.3 Warranty of
Title. Contractor represents and warrants that the Work, including the
Equipment furnished by it and its Subcontractors that become part of the
Facility or are furnished to Owner as spare parts shall be legally and
beneficially owned by Owner free from any Liens (other than Liens created by the
actions of Owner, including non-payment). In the event of any nonconformity with
this warranty, Contractor, at its own expense, upon written notice of such
failure, shall indemnify, defend and hold harmless Owner from the consequences
of such defect in title and such obligations shall survive the expiration,
cancellation or termination of this Agreement.

     

    
      
        
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    14.4 [**]

     

    (a) [**]

     

    (b) [**]

     

    (c) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    (d) [**]

     

    (i) [**]

     

    (ii) [**]

     

    
      
        
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    14.5 [**]

     

    14.6 [**]

     

    ARTICLE
15 – INDEMNITY

     

    15.1 Contractor
Indemnity. Except with respect to a Nuclear Incident, Contractor shall
indemnify, defend and hold harmless Owner, its Affiliates, and their respective
partners, shareholders, officers, directors, and lenders from and against Third
Party Claims and costs and expenses associated therewith (including attorneys'
fees) [**]

     

    
      
        
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    [**]

     

    15.2 Owner's
Indemnity. Except with respect to a Nuclear Incident, and subject to
limitations on Santee Cooper's obligations as a matter of South Carolina law,
Owner shall indemnify, defend and hold harmless Contractor and Contractor
Interests from and against Third Party Claims and costs and expenses associated
therewith (including attorneys' fees) [**]

     

    15.3 [**]

     

    
      
        
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    [**]

     

    [**]

     

    15.4 [**]

     

    (a) [**]

     

    (b) [**]

     

    (c) [**]

     

    
      
        
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    [**]

     

    (d) [**]

     

    (e) [**]

     

    15.5 [**]

     

    (a) [**]

     

    (b) [**]

     

    
      
        
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    [**]

     

    (c) [**]

     

    (d) [**]

     

    ARTICLE
16 – INSURANCE

     

    16.1 Phase I
Insurance Requirements.

     

    (a) Except as
otherwise provided hereunder, Contractor agrees to furnish and maintain at all
times during the course of the Phase I Work to be performed hereunder, Worker's
Compensation, liability and other insurance coverage required hereunder and in
the amounts as follows:

     

    (i) Worker's
Compensation – Statutory. Coverage shall include U.S. Longshoremen's and Harbor
Workers Act coverage where applicable. The insurance purchased pursuant to this
Section 16.1(a)(i) shall include an "All States"
endorsement.

     

    (ii) Employer's
Liability, including an "All States" endorsement – [**]. Coverage shall include
U.S. Longshoremen's and Harbor Workers Act coverage where
applicable.

     

    (iii) Commercial
General Liability, (excluding professional liability) including Contractual,
Independent Contractors, - Bodily Injury and Property Damage Combined Single
Limit – [**] Each Occurrence, [**] Aggregate, Personal Injury – [**]. Products
and Completed Operations – [**].

     

    
      
        
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    (iv) Automobile
Liability coverage including owned, hired, and non-owned automotive equipment
used in connection with the insured operation - Bodily Injury and Property
Damage Combined – [**] Each Occurrence. Owner shall provide similar coverage for
any of its owned, hired and non-owned automotive equipment.

     

    (v) Contractor's
Equipment Coverage – in the amount of the value of the equipment through
insurance or self insurance.

     

    (vi) Pollution
Liability on a project basis, which includes the sudden or accidental release of
any material that may be considered a pollutant at or around the Site, as a
result of the Work done by Contractor or any tier Subcontractor – [**] Each
Occurrence, [**] Aggregate. Notwithstanding the foregoing, this coverage shall
be taken out within [**] after the Effective Date.

     

    (vii) Open
Cargo Insurance must be obtained on materials and equipment to be transported to
the Site.

     

    (viii) Umbrella
Form Excess Liability Insurance with a coverage limit of
[**].

     

    (ix) [**]

     

    (b) Builder's
Risk Insurance, [**] shall be purchased by Owner at limits and coverages and
other provisions as enumerated in Section 16.2(a)(ii), naming Owner, Contractor,
and Subcontractors as additional insureds. The liability of Contractor for any
loss or damage to any equipment or materials, Work, completed Facility and
surrounding Owner property shall be as provided in Section 16.2(a)(ii). Should
Owner decide not to procure such coverage until the commencement of Phase II,
Contractor’s liability for any loss or damage during Phase I, whether based on
contract, tort (including fault, negligence and strict liability) or otherwise,
shall not exceed [**] for any occurrence as if Owner had procured a standard
Builder’s Risk policy subject to the limitations in Section 16.2(a)(ii). [**]
Owner shall reimburse Contractor on a [**] to remedy such loss or damage that
exceed such amount, whether based on contract, tort (including fault, negligence
and strict liability) or otherwise.

     

    16.2 Phase II
Insurance Requirements.

     

    (a) For Phase
II, Owner shall have the option of implementing an Owner Controlled Insurance
Program (“OCIP”), as set forth in Exhibit
U. If Owner decides not to implement the OCIP, Contractor will have the
right to implement a Contractor-Controlled Insurance Program (“CCIP”),
implementing the provisions of Exhibit
U. Contractor shall be reimbursed for the CCIP by Owner on a [**].
The Parties recognize that Exhibit
U is written for an OCIP, and will need to be modified accordingly if a
CCIP is to be

     

    
      
        
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    implemented.
If neither an OCIP or a CCIP is implemented, each of Owner and Contractor, as
applicable, shall maintain the coverages specified in Section 16.1, with the
following exceptions, such coverages to be reimbursed by Owner on a
[**]:

     

    (i) the
coverage limit for the Umbrella Excess Liability shall be increased to [**] per
occurrence and aggregate.

     

    (ii) Builder's
Risk Insurance, if not already obtained, shall be obtained at limits determined
appropriate by the Parties. Such Builder's Risk policy shall (A) name Contractor
and all Subcontractors as additional insureds (without having any liability for
the payment of premiums); (B) cover all risks of loss or damage to the Facility
(I) during construction, and (II) if not covered by the Open Cargo Insurance,
during transportation of any materials and equipment, and (III) during storage,
(IV) during the Work, and (V) until replaced by Owner's Operating Property
coverages, and (VI) with limits of coverage [**] as agreed to by the Parties;
and (C) provide coverage for resultant damage due to any error in design,
defects in equipment or material or faulty workmanship; and (D) provide delay in
start-up coverage [**]Any recovery under the delay in start-up coverage
resulting from an event that gives rise to a covered claim under this policy
shall reduce [**] by the same amount. Notwithstanding any other provision to the
contrary, Owner on behalf of itself and the insurer hereby waives all rights of
recovery and subrogation against Contractor and its Subcontractors, and their
Affiliates and Personnel, including any losses within the deductibles and any
excess losses; provided that Contractor shall be liable for Owner's deductible
under its property insurance policy(ies); provided further, and notwithstanding
any other provision to the contrary, that the liability of Contractor and
Contractor Interests for any loss or damage to any equipment, materials, Work,
completed Facility and surrounding Owner property shall be limited to claims
arising to the extent of Contractor's negligence and shall in no event exceed
[**] for any occurrence. Contractor’s liability for the payment of such amount
shall not be reimbursable hereunder. Owner shall reimburse Contractor on a [**]
to remedy such loss or damage that exceed such amount, whether based on
contract, tort (including fault, negligence and strict liability) or
otherwise[**]. [**] The foregoing provisions are for the sole benefit of Owner,
and the Parties do not intend such provisions to be for the benefit of any third
party, including without limitation any insurer.

     

    (b) Regardless
of whether Owner or Contractor adopts an OCIP or CCIP, as applicable, Contractor
shall be responsible for maintaining the following insurance coverages during
Phase II:

     

    
      
        
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    (i) [**]

     

    (ii) Pollution
Liability: Contractor shall continue to carry Pollution Liability
Insurance described under Section 16.1(a)(vi) with an increased coverage limit
[**] per occurrence and [**] in the aggregate.

     

    (iii) Employment
Practices Liability: Contractor shall carry Employment Practices
Liability [**] with a coverage limit of [**] per occurrence and in the
aggregate.

     

    16.3 Provisions
Applicable to all Coverages.

     

    (a) After the
execution of this Agreement and prior to the commencement of any Work, each
Party shall have on file with the other party (and in the case of Owner, Owner's
Supplier Relations Department) the applicable insurance certificate(s). Such
certificate(s) shall provide that [**] written notice be given to the other
Party prior to any material change or cancellation of the insurance. Other than
the OCIP or CCIP, as applicable, the Builder’s Risk Insurance and Owner’s
Operating Property coverages, each Party shall name the other Party, its
subsidiaries and their successors and assigns, as additional insured (except for
Worker's Compensation and Professional Liability and Pollution Liability
coverage) for their vicarious liability arising out of such Party’s negligent
operations or such Party shall be covered under the omnibus provisions thereof.
For the OCIP or CCIP, as applicable, and Owner’s Operating Property coverage,
each Party and Contractor Interests shall be named as an additional insured
thereon, at no cost to Contractor. All policies shall be written to include a
waiver of subrogation in favor of the other Party and its Affiliates and
Contractor Interests during the performance of the Work and
thereafter.[**]

     

    (b) All such
insurance shall be with sound insurance companies which have an AM Best Rating
of A- VII as the minimum and authorized to do business in the state where the
Work is to be performed. None of the liability policies shall have any "other
insurance" clause or language which would jeopardize the primacy of Contractor’s
insurance with respect to Owner’s self-insured retention or excess insurance.
The above Contractor requirements may be met by both Consortium Members
providing separate certificates. Any such limits of coverages may be met in one
or more layers of coverage.

     

    (c) Neither a
failure of a Party to provide the required certificate of insurance nor such
Party's submission of a certificate of insurance not in conformance with the
insurance requirements stated herein shall relieve such Party from the
obligation to have in force the required insurance
coverages.

     

    
      
        
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    (d) Each
Party is responsible for any deductibles associated with its policies of
insurance or its self-insured retentions, except as otherwise provided
hereunder.

     

    (e) Contractor
understands that Owner may have an administrator on-Site at all times in which
Contractor or its Personnel are at the Site. Contractor shall interface and
cooperate with Owner's administrator. Additionally, Contractor shall follow any
recommendations made by the NRC, Nuclear Electric Insurance Limited ("NEIL"),
the Institute of Nuclear Power Operators ("INPO") and American Nuclear Insurers
("ANI").

     

    ARTICLE
17 –
[**]

     

    17.1 [**]

     

    17.2 [**]

     

    
      
        
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    [**]

     

    17.3 [**]

     

    (a) [**]

     

    (b) [**].
[**]

     

    ARTICLE
18 – LIENS

     

    18.1 Liens.
Contractor shall keep the Facility, the Site and the Equipment free from Liens
(other than liens arising from acts of Owner or Owner's failure to pay amounts
due to Contractor), and shall promptly notify Owner of any known Liens filed
against the Facility, the Site, or the Equipment and any structures comprising
the Facility or located on the Site. If Owner seeks Contractor's indemnification
for any Lien, Owner shall:

     

    (a) Give
Contractor prompt written notice of any Lien of which it has knowledge; and
applicable documentation regarding the Lien;

     

    (b) Cooperate
in the defense of litigation relating to the Lien; and

     

    (c) Give
Contractor sole control of the defense and settlement, to the extent of
Contractor's liability, for the Lien if Contractor confirms in writing an
obligation to indemnify Owner with respect to the Lien.

     

    18.2 Discharge
or Bond. Contractor shall take prompt steps to discharge or bond any Lien
filed against the Facility, any Equipment, and any structures comprising the
Facility or located on the Site by any Subcontractor based on a claim for
payment by Contractor in connection with the Work. Contractor shall have the
option of providing an indemnity to Owner

     

    
      
        
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    in lieu
of discharging or providing a bond, for up to a [**] period to allow Contractor
a reasonable time to resolve the cause of the filing of the Lien. If Contractor
fails to indemnify, discharge or promptly bond any Lien, Owner shall have the
right, upon notifying Contractor in writing and providing Contractor reasonable
time to indemnify, discharge or bond the Lien, to take any and all reasonable
actions and steps to satisfy, defend settle or otherwise remove the Lien at
Contractor's expense, including reasonable attorneys' fees, costs and expenses.
Owner shall have the right to recover these expenses from Contractor. Contractor
shall have the right to contest any Lien, provided it first provides to Owner
the indemnity provided for above or it may provide the lien holder, a court or
other third Person, as applicable, a bond or other assurances of payment
necessary to remove the Lien related to the Work from the Site and the Facility
in accordance with the Laws of the State of South Carolina.

     

    ARTICLE
19 – PROPRIETARY DATA

     

    19.1 Protection
of Owner Proprietary Data.

     

    (a) [**]

     

    (b) [**]

     

    (c)           [**]

     

    
      
        
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    [**]

     

    (d)           [**]

     

    19.2 Protection
of Contractor's Proprietary Data.

     

    (a) [**]

     

    (b) [**]

     

    (i) [**]

     

    (ii) [**]

     

    
      
        
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    [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (c) [**]

     

    (i) [**]

     

    
      
        
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    [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    (d) [**]

     

    19.3 [**]

     

    (a) [**]

     

    
      
        
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    (b) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    (vi) [**]

     

    (vii) [**]

     

    (viii) [**]

     

    (1)           [**]

     

    (2)           [**]

     

    (3)           [**]

     

    (4)           [**]

     

    (5)           [**]

     

    (6)           [**]

     

    (7)           [**]

     

    
      
        
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    (8)           [**]

     

    (9)           [**]

     

    (c) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (d) [**]

     

    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (v) [**]

     

    (vi) [**]

     

    (vii) [**]

     

    
      
        
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    (viii) [**]

     

    (e) [**]

     

    (f) [**]

     

    
      
        
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    (i) [**]

     

    (ii) [**]

     

    (iii) [**]

     

    (iv) [**]

     

    (g) [**]

     

    19.4 [**]

     

    19.5 [**]

     

    
      
        
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    [**]

     

    19.6 [**]

     

    19.7 [**]

     

    ARTICLE
20 – ENVIRONMENTAL; HAZARDOUS MATERIALS

     

    20.1 Material
Safety Data Sheets. To the extent required by applicable Law, Contractor
shall provide to Owner Material Safety Data Sheets covering Hazardous Materials
to be furnished, used, applied, or stored by Contractor, or any of its
Subcontractors, at the Site in connection with the Work. Contractor shall
coordinate with Owner's Project Director to provide a listing of such Hazardous
Materials and their quantities at the Site for purposes of chemical inventory
reporting pursuant to 40 C.F.R. Part 370 and similar state
regulations.

     

    20.2 Facility
Use, Storage Removal. When the use or storage of explosives or other
Hazardous Materials or equipment is necessary for the performance of the Work,
Contractor shall exercise the utmost care and shall carry on its activities
under the supervision of properly qualified personnel in accordance with
applicable Laws. Before Unit Mechanical Completion of the Second Unit (or if
there is no Second Unit, the First Unit), Contractor shall remove from the Site
in accordance with applicable Laws any explosives and other Hazardous Materials
that Contractor or its Subcontractors used, stored or located at the Site or any
neighboring property, unless the same have been permanently incorporated into
the Facility, provided that, if any such explosives and other Hazardous
Materials are necessary for completion of the Work, Contractor shall be
permitted to retain such explosives and other Hazardous Materials at the Site or
any neighboring property but only if, and to the extent, in compliance with the
COL and applicable Laws.

     

    20.3 Handling,
Collection, Removal Transportation and Disposal.

     

    (a) Unless
otherwise agreed by the Parties, Contractor shall be responsible for the proper
handling, treatment, collection, containerizing and removal of Hazardous
Materials brought onto the Site or created by Contractor or Subcontractors or
spilled or introduced into or at the Site by Contractor or any Subcontractor,
including any such Hazardous Materials furnished, used, applied or stored at the
Site by Contractor or any Subcontractor, including used oils, greases, and
solvents from flushing and cleaning processes performed under the Agreement.
Prior to Unit Mechanical Completion of a Unit, Contractor shall be responsible
for the proper handling, storage, transportation, and disposal of any Hazardous
Materials brought onto the Site or created by Contractor or Subcontractors.
Contractor shall be liable for any fines or penalties imposed for its or its
Subcontractors' failure to comply with applicable Laws with respect to Hazardous
Materials for which it is responsible pursuant to this Section
20.3(a).

     

    
      
        
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    (b) At all
times during the performance of the Work, Owner shall be responsible for the
prompt and proper handling, storage, transportation and disposal of Hazardous
Materials existing at, on or under the Site that were not brought onto the Site
or created by Contractor or Subcontractors. After Unit Mechanical Completion of
a Unit, Owner shall be responsible for the prompt and proper handling, storage,
transportation and disposal of Hazardous Materials used or generated with
respect to such Unit or remaining at the Site (after proper handling, collection
and containerizing by Contractor). As between the Parties, Owner shall be
considered the generator for Hazardous Materials existing at, on or under the
Site that were not brought onto the Site or created by Contractor or
Subcontractors, and shall retain all responsibility and liability with respect
to such Hazardous Materials. Subject to limitations on Santee Cooper's
obligations as a matter of South Carolina law and subject to Contractor's
obligations under Section 20.3(a), Owner shall indemnify Contractor against any
penalties levied by any Government Authority for allowing any collected and
containerized waste remaining in storage for more than the period allowed by
applicable Laws without permit.

     

    (c) Activities
performed by each Party in connection with the handling, storage, collection,
containerizing, transportation and disposal of Hazardous Materials shall be
performed in accordance with the requirements of all Government Authorities and
all applicable Laws.

     

    20.4 Notice of
Discovery. Contractor shall provide prompt written notice to Owner of any
suspected Hazardous Materials that Contractor finds during performance of the
Work not previously identified by Owner to Contractor. Owner shall be
responsible for any further action required after the discovery. To the extent
any such action causes an increase in Contractor's costs or a delay in the
performance of the Work, Contractor shall be entitled to a Change Order pursuant
to Article 9.

     

    ARTICLE
21 – TITLE; RISK OF LOSS

     

    21.1 Transfer of
Title. Except as otherwise expressly provided in this Agreement, title to
an item of Equipment shall pass to Owner upon payment in full by Owner to
Contractor for such item of Equipment. The passage of title to Owner shall not
be deemed an acceptance or approval of such Equipment (or any Work), affect the
allocation of risk of loss, or otherwise relieve Contractor or Owner of any
obligation under this Agreement to provide and pay for transportation and
storage in connection with the Equipment.

     

    21.2 Risk of
Loss.

     

    (a) Whether
or not title has passed to Owner, the risk of loss for each system or structure
of a Unit shall remain with Contractor until, and shall pass to Owner upon [**].
[**]

     

    
      
        
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    [**]

     

    (b) [**].

     

    21.3 [**]

     

    ARTICLE
22 – SUSPENSION AND TERMINATION

     

    22.1 Suspension
by the Owner for Convenience.

     

    (a) Owner
may, without cause, order Contractor in writing to suspend, delay or interrupt
the Work in whole or in part for such period of time as Owner may determine. Any
such suspension of the Work shall entitle Contractor to a Change Order pursuant
to Article 9.

     

    (b) Owner
shall continue to meet the payment obligations to Contractor during any
suspension, delay or interruption for Work actually
performed.

     

    (c) During
any suspension, Contractor shall take reasonable precautions to protect, store
and secure the Equipment against deterioration, loss or damage and to minimize
the charges for the suspension.

     

    (d) Contractor
shall resume any suspended Work promptly following receipt of notice from Owner
to do so.

     

    
      
        
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    22.2 Termination
by Owner for Cause.

     

    (a) Without
limiting any other rights that it may have hereunder, Owner may terminate the
Agreement upon notice to Contractor if:

     

    (i) Contractor
is in breach of a material provision of this Agreement and fails to cure the
breach within [**] following written notice of such breach or, if such breach is
not capable of being cured within such [**] period, such longer period as is
reasonably necessary so long as Contractor has commenced the cure within such
[**] period and thereafter diligently pursues the cure;

     

    (ii) [**];

     

    (iii) [**];
or

     

    (iv) a
Consortium Member is Insolvent.

     

    (b) When
Owner terminates the Agreement for one of the reasons stated in Section 22.2(a),
Contractor shall not be entitled to receive further payment until the Work is
finished subject to the provisions set forth in Section
22.2(c)(iii).

     

    (c) Upon any
termination pursuant to this Section 22.2, Owner may at its option elect to: (i)
assume responsibility for and take title to and possession of the Facility and
Work and Equipment remaining at the Site and Equipment located outside the Site
for which payment in full or in part has been made by Owner; (ii) succeed
automatically, without the necessity of any further action by Contractor, to the
interests of Contractor in any or all Subcontracts entered into by Contractor
with respect to the Work (if such Subcontracts permit), and shall be required to
compensate such Subcontractors if acceptable to such Subcontractors only for
compensation becoming due and payable to such parties for goods and services
provided under the terms of their Subcontracts with Contractor from and after
the date Owner elects to succeed to the interests of Contractor in such
Subcontracts and (iii) request that Contractor continue to perform the Work or
any portion thereof pursuant to a separate agreement. In the event of any
termination pursuant to this Section 22.2, Owner may, at its option, finish the
Work and other work by whatever method Owner may deem
expedient.

     

    (d) If the
unpaid balance of [**] exceeds the costs of finishing [**] the Work (including
all reasonable administrative and other direct costs incurred as a result of
such termination), such excess shall be paid to Contractor. If the cost of
finishing [**] the Work

     

    
      
        
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    (including
all reasonable direct costs for Owner to administer the completion of the Work
and other direct costs incurred by Owner as a result of such termination)
exceeds the unpaid balance of [**], Contractor shall pay the difference to
Owner.

     

    (e) [**]

     

    22.3 Termination
by Owner for Convenience.

     

    (a) Owner
may, at any time, terminate the Agreement for Owner's convenience and without
cause.

     

    (b) In the
event of termination for Owner's convenience prior to [**], Contractor shall be
entitled to receive payment for [**].

     

    (c) If Owner
terminates for its convenience after [**], Contractor shall be entitled to
receive payment for [**]

     

    (d) Upon such
termination and payment, the Parties shall have no further liability to one
another other than any liability that arose prior to the termination of this
Agreement pursuant to this Section 22.3 and the Parties' obligations under
Section 22.6.

     

    22.4 Suspension
and Termination Due to Other Circumstances.

     

    (a) In the
event that Owner does not issue the Full Notice to Proceed as established in
Section 3.3(b), Contractor shall have the right to suspend its Work, demobilize
its forces and take such other actions as are reasonably needed to address the
consequences of a delay in the Work, including the suspension or cancellation,
as applicable of the Work being performed under Subcontracts. Prior to
initiating such suspension, Contractor shall issue a notice

     

    
      
        
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    to Owner
stating the basis for such suspension. Once the event that allowed Contractor to
suspend Work under this Section 22.4(a) has occurred, Owner and Contractor shall
negotiate a Change in the Contract Price, Project Schedule (including the
Guaranteed Substantial Completion Date(s)), and such other applicable terms and
conditions of this Agreement to reflect the effect of such event, including,
without limitation, the suspension of the Work, and the demobilization and
remobilization of Contractor's and the Subcontractors' forces, as applicable.
Contractor shall incorporate agreed upon changes in a Change Order[**].
[**]

     

    (b) [**]

     

    (c) [**]

     

    
      
        
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    (d) [**]

     

    (e) In the
event of termination pursuant to this Section 22.4, Contractor shall be entitled
to receive payment for [**].

     

    22.5 Termination
by Contractor.

     

    (a) Contractor
may terminate this Agreement for any of the following
reasons:

     

    (i) Owner
fails to make payment to Contractor in accordance with the Agreement for a
period exceeding [**] after an undisputed invoice has become due, or Owner fails
to make payment to Contractor of disputed amounts in accordance with the
provisions of Section 8.4(b)(i) for a period exceeding [**] following the date
provided for in Section 8.4(b)(i), provided, in either case, that Contractor has
provided the notices of overdue payment as required under Section
8.4(c);

     

    (ii) Owner is
in breach of a material provision of this Agreement and fails to cure the breach
within [**] following written notice of such breach or, if such breach is not
capable of being cured within such [**] period, such longer period as is
reasonably necessary so long as Owner has commenced the cure within such [**]
period and thereafter diligently pursues the cure; or

     

    (iii) Either
SCE&G or Santee Cooper is Insolvent unless the other of SCE&G or Santee
Cooper has provided security for payments that would be due from such Insolvent
Person in accordance with Section 8.6 and no other changes to this Agreement
have resulted from proceedings involving the Person that is
Insolvent.

     

    (b) Upon
termination of this Agreement pursuant to this Section 22.5, Contractor shall be
entitled to receive payment from Owner as if it were a termination for Owner's
convenience under Section 22.3.

     

    
      
        
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    22.6 Actions
Required of Contractor upon Termination. Upon receipt of a notice of
termination from Owner or the issuance of a notice of termination by Contractor,
Contractor shall:

     

    (a) in an
orderly manner and consistent with safety considerations, cease operations as
directed by Owner in the notice;

     

    (b) take
actions necessary, or that Owner may direct, for the protection and preservation
of the Work (wherever located); and

     

    (c) except
for Work directed to be performed prior to the effective date of termination
stated in the notice, enter into no further contracts and purchase
orders.

     

    [**].
[**].

     

    ARTICLE
23– SAFETY; INCIDENT REPORTING

     

    23.1 Environmental,
Health and Safety Programs. Contractor shall be responsible for
initiating, maintaining and supervising the safety precautions and programs in
connection with its performance of its Work under the Agreement, including
necessary precautions and programs for the Site and any areas adjacent to the
Site under its supervision and/or control. Contractor shall comply with
applicable workplace safety Laws governing the Work and/or
Site.

     

    23.2 Designated
Contractor Safety Representative. Contractor shall designate a
responsible, qualified person in Contractor's organization at the Site whose
duty shall be the prevention of incidents and injuries and addressing unsafe and
undesirable conditions and behavior for each of the following three (3) areas:
environmental matters (U.S. Environmental Protection Agency and any applicable
state agency), health matters (industrial hygiene and

     

    
      
        
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    employee
health hazard prevention/mitigation) and safety matters, as each area relates to
construction activities generally and the Work specifically. One individual may
be designated for more than one of these three areas if the individual is
qualified in the relevant areas.

     

    23.3 OSHA and
Other Laws. Contractor shall provide notices and comply with applicable
workplace safety Laws, including the Occupational Safety and Health Act ("OSHA")
and provisions of the Americans with Disabilities Act relevant to workplace
safety. Contractor shall maintain the logs required under
OSHA.

     

    (a) Contractor
represents that it is familiar with the Site, the Work to be performed, the
Equipment to be provided, the hazards of the Work, and, if applicable, the
Material Safety Data Sheets for, and the hazards of, the Hazardous Materials
that Contractor is expected to provide. Contractor represents that it is
familiar with the labeling system used in the workplace.

     

    (b) Contractor
acknowledges that OSHA and regulatory standards or state plan equivalent
(collectively, the "OSHA Standards") require that its employees be trained in
various subjects, such as, but not limited to, the hazards of, and standards
applicable to, the Work (29 C.F.R. § 1926.21(b)(2)) (applicable to construction
work), lockout/tagout (29 C.F.R. § 1910.147), confined space entry (29
C.F.R. §§ 1926.21(b)(6) or 1910.146), and asbestos (29 C.F.R. §§ 1910.1001 or
1926.1101). Prior to performing Work on the Site, Contractor's employees and
their supervisors shall, as required, have been trained in accordance with all
applicable OSHA Standards relating to the duties they perform or supervise, and
they shall have been trained to recognize and avoid any hazards related to the
Work, and to perform the Work safely and without danger to any employee or to
any property.

     

    (c) Contractor
represents that its employees are or shall be equipped with the personal
protective equipment required by applicable OSHA Standards in 29 C.F.R. Parts
1926 and 1910, and with the personal protective equipment required to protect
its employees against other serious health or safety hazards. Contractor agrees
that it shall discipline its employees who violate any OSHA Standards or
applicable Laws in accordance with its own policies and
procedures.

     

    (d) Contractor
shall comply with all OSHA Standards applicable to the Work, including those
requiring pre-employment testing of employees, such as, but not limited to,
pulmonary testing, blood testing, urine testing, hearing testing, respirator fit
testing, drug screening, and/or applicable medical surveillance
testing.

     

    (e) Contractor
shall comply with its safety programs and/or any Site specific safety plans
which Owner has reviewed and accepted.

     

    (f) Within a
reasonable time following a specific request by Owner, and to the extent
permitted by applicable Law, Contractor shall provide to Owner copies of
training materials for its employees concerning a particular safety and health
standard and/or particular substantive or technical training requirement of the
job.

     

    
      
        
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    23.4 Worksite
Safety.

     

    (a) Contractor
shall take reasonable precautions for the safety of, and shall provide
reasonable protection to prevent damage, injury or loss to Persons and property
resulting from the Work, including:

     

    (i) Contractor
or Subcontractor employees and other Persons performing the Work and any Persons
who may be affected by the performance of the Work;

     

    (ii) the
Equipment to be incorporated into the Facility, whether in storage on or off the
Site or under the care, custody or control of Contractor or Subcontractors;
and

     

    (iii) other
property at or adjacent to the Site, including trees, shrubs, lawns, walks,
pavements, roadways, structures and utilities.

     

    (iv) Contractor
shall erect, maintain or undertake, as required by existing conditions and the
performance of the Agreement, reasonable safeguards for the safety and
protection of Persons and property, including posting danger signs and other
warnings against hazards, promulgating safety regulations, and notifying Owner
and users of adjacent sites and utilities. Those precautions may include
providing security guards.

     

    (v) Contractor
agrees to provide to Owner the name, title, and phone number of its emergency
contact person prior to the commencement of the Work.

     

    23.5 Dangerous
Materials. When the use or storage of explosives or other dangerous
materials or equipment or unusual methods are necessary for the Work, Contractor
shall exercise utmost care and carry on its activities only under the
supervision of properly qualified personnel. Contractor shall notify Owner's
Project Director prior to bringing any explosives onto the
Site.

     

    23.6 Cooperation
in Governmental Investigations and Inspections. Contractor and its
Subcontractors shall provide reasonable assistance to Owner in responding to
requests and inspections by any Government Authority for information in
connection with the Work involving Contractor or its Subcontractors. Contractor
shall provide the NRC the facilities, furnishings, conveniences and access set
forth in 10 C.F.R. § 50.70 and shall take good faith efforts to keep
confidential the presence of any representative of the NRC at the Site as
provided in 10 C.F.R. § 50.70(b)(4).

     

    23.7 Audit.
To the extent permitted by applicable Law, and in response to specific and
identifiable concerns, Contractor shall permit Owner to review and copy
Contractor's documents related to those specific and identifiable safety and
health concerns at the Site.

     

    
      
        
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    ARTICLE
24 – QUALIFICATIONS AND PROTECTION OF ASSIGNED PERSONNEL

     

    24.1 Screening
Measures. A fitness for duty and security screening program ("Screening
Measures") shall be established for all Contractor and Subcontractor employees
for the Work. This program shall comply with the regulations set forth in the
Laws governing new nuclear build construction. This program shall
contain:

     

    
      	
              ·  

            	
              Prohibition
      of the use, transportation, sale, or possession of illegal
      drugs

            

    

     

    
      	
              ·  

            	
              Prohibition
      of the use or possession of alcohol beverages on the
  Site

            

    

     

    
      	
              ·  

            	
              Requirement
      that employees be fit for duty at all times while on the
    Site

            

    

     

    
      	
              ·  

            	
              Requirement
      that employees submit to drug and alcohol testing during preaccess
      screening, for-cause testing, and post event testing, as
      necessary

            

    

     

    
      	
              ·  

            	
              Requirement
      that all employees must immediately report known, suspected, or potential
      violations of this policy to supervisory personnel or
      management

            

    

     

    
      	
              ·  

            	
              Requirement
      that a subset of workers who perform important safety functions be subject
      to random testing

            

    

     

    
      	
              ·  

            	
              Protection
      of information and records to assure
  confidentiality

            

    

     

    
      	
              ·  

            	
              Requirement
      that employees consent to a search or inspection of the individual's
      property while on the Site.

            

    

     

    In
addition to pre-access screening for drugs and alcohol an identity check and
screening for criminal history shall be performed. A law enforcement criminal
records check on all potential employees that shall include:

     

    
      	
              ·  

            	
              Verification
      of identity

            

    

     

    
      	
              ·  

            	
              A
      criminal history check of the individual shall be
  performed

            

    

     

    
      	
              ·  

            	
              Prior
      to a final adverse determination, the applicant shall be informed of the
      basis for potential denial of access to the Site to assure the accuracy of
      the basis for such denial.

            

    

     

    During
preaccess screening a probationary period of not to exceed thirty (30) Days
shall be granted to allow for the testing and prescreening to be performed while
the employee is put to work.

     

    24.2 Contractor's
Personnel. Contractor shall comply with applicable labor and immigration
Laws that may impact Contractor's Work under this Agreement, including the
Immigration Reform and Control Act of 1986 and Form I-9 requirements. Contractor
shall perform the required employment eligibility and verification checks and
maintain the required employment records. Contractor acknowledges and agrees
that it is responsible for conducting

     

    
      
        
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    adequate
screening of its employees and agents prior to starting the Work. By providing
an employee or Subcontractor under this Agreement, Contractor warrants and
represents that the Screening Measures with respect to such employee or
Subcontractor have been completed and that such Screening Measures did not
reveal any information that could adversely affect such employee's or
Subcontractor's suitability for employment or engagement by Contractor or
competence or ability to perform duties under this Agreement. If in doubt
whether a suitability, competence or ability concern exists, Contractor shall
discuss with Owner the relevant facts and Owner shall determine, in its sole
discretion, whether such Person should be allowed to perform the Work. Owner, in
its sole discretion, shall have the option of barring from the Site any person
whom Owner determines does not meet the qualification requirements set forth
above. In all circumstances, Contractor shall ensure that the substance and
manner of any and all Screening Measures performed by Contractor pursuant to
this Section conform fully to applicable Law. Contractor shall submit to Owner
for approval a set of work rules that applies to all Contractor and
Subcontractor employees. This set of work rules shall establish Contractor's and
Subcontractor's disciplinary action policy and hiring and termination policy.
This policy shall detail the actions to be taken by Contractor and
Subcontractors for acts of misconduct, negligence and incompetence of their
employees. The disciplinary action program shall be progressive up to
termination and the barring of employee from future employment.

     

    24.3 Training of
Employees. Contractor represents that all Contractor and Subcontractor
personnel shall as required be trained regarding environmental, OSHA and NRC
requirements and any other matters required by applicable Laws and relevant to
the Work.

     

    24.4 NRC
Whistleblower Provision. Contractor and its Major Subcontractors shall
comply with the requirements of Section 211, "Employee Protection," of the
Energy Reorganization Act of 1974, 42 U.S.C. § 5851, as amended; 10 C.F.R. §
50.7, "Protection of Employees Who Provide Information" and 29 C.F.R. § 24
(collectively, the "Whistleblower Provisions"). Contractor shall implement a
program and develop procedures to advise all of Contractor's and the Major
Subcontractors' personnel that they are entitled and encouraged to raise safety
concerns to Contractor's management, to Owner, and to the NRC, without fear of
discharge or other discrimination.

     

    24.5 Respirator
Protection. For any Work at the Site that shall expose any of
Contractor's or any Subcontractor's employees or representatives to sources of
radiation or require them to wear respiratory protection, Contractor shall
require each of these employees or other representatives, prior to entering any
radiation area or wearing respiratory protection, to undergo a physical
examination to determine if occupational radiation exposure or the wearing of
respiratory protection should be avoided because of any medical condition or
other circumstance, and in addition, to undergo such physical examination as may
be required by applicable Law or by any Government Authority having
jurisdiction. Contractor shall keep a record of the physical examination
available for inspection by Owner. Owner shall assist Contractor in defining the
applicable requirements, if requested.

     

    ARTICLE
25 – RECORDS AND AUDIT

     

    25.1 Technical
Documentation. Except to the extent applicable Laws require a longer
retention, Contractor shall maintain and shall cause its Major Subcontractors to
maintain all

     

    
      
        
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    technical
documentation relative to the Equipment for a period of [**] after Final
Completion.

     

    25.2 Accounting
Records. Except to the extent applicable Laws require a longer retention,
Contractor shall maintain and shall cause its Subcontractors to maintain
complete accounting records relating to the Work performed or provided under
this Agreement [**], or other reimbursable basis in accordance with generally
accepted accounting principles in the United States, as set forth in
pronouncements of the Financial Accounting Standards Board (and its
predecessors) and the American Institute of Certified Public Accountants, for a
period of [**] after Final Completion of a Unit, except that records relating to
Sales Taxes for such items must be retained for [**] as specified in
Section 25.5.

     

    25.3 Maintenance
of Records Generally. Notwithstanding anything in Section 25.1 or 25.2 to
the contrary, Contractor shall ensure that its maintenance of records complies
with the applicable provisions of 10 C.F.R. § 50.71.

     

    25.4 Right to
Audit. If Owner requests verification of [**] or for any Work performed
or provided [**], Owner or its authorized representative shall be permitted to
examine and audit Contractor's records and books, and Subcontractors' where
permitted by contract, related to those costs. The right to initiate any audit
shall expire, with respect to any such cost, [**] after the cost was incurred.
Such audit shall provide Owner with a reasonable opportunity to verify that all
costs and charges have been properly invoiced in accordance with the terms of
this Agreement. Owner shall not be entitled to any information that would enable
Owner to determine [**] unless access to this information is needed to support a
request made by Owner or Contractor for [**]. If any audit by the auditor
reveals charges to or paid by Owner as charges or fees which are incorrectly
charged, then Owner shall be entitled upon demand for a refund from Contractor
of such amounts[**]. Likewise, if any audit or if any examination by any state
or local taxing agency reveals additional Sales Tax to be imposed upon
Contractor for under collection of tax from Owner on a taxable sale, then
Contractor shall be entitled, upon demand, to a payment from Owner of all such
amounts, together with any interest and penalties imposed by any state or local
taxing agency. Notwithstanding anything in this Section 25.4 to the contrary,
Owner shall not be restricted from any audit rights, including any right to
conduct audits directly without any intermediary, which it is required to have
in order to comply with applicable Laws, including the regulations of the
NRC.

     

    25.5 Sales Tax
Records. Contractor shall provide or provide access to the information,
documents, receipts, invoices, and data to Owner on a monthly basis, or as Owner
may from time to time reasonably request and as may be specifically required by
the South Carolina state tax regulations for non-tax exempt items, and otherwise
fully cooperate with Owner in connection with the reporting of (a) any Sales
Taxes payable with respect to the Work and (b) any

     

    
      
        
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    assessment,
refund claim or proceeding relating to Taxes payable with respect to the
Work. This may include a monthly assessment visit from the South Carolina
state tax department to review this information. Contractor shall require
its Major Subcontractors to provide to Contractor all information and data
Contractor may reasonably request for purposes of complying with this Article
and otherwise fully cooperate with Owner. Contractor shall retain, and shall
require Major Subcontractors to retain, copies of such documentation and all
documentation relating to purchases relating to the Work or the payment of Sales
Taxes, if any, for a period of not less than [**]. Contractor shall ensure
that its contracts with all Major Subcontractors effectuate the provision of
this Section 25.5. Contractor's obligations under this Section shall
survive the termination, cancellation or expiration of this Agreement for any
reason and shall last so long as is necessary to resolve any and all matters
regarding Taxes attributable to the Work. This information is intended
solely for the use of tax compliance.

     

    ARTICLE
26 – TAXES

     

    26.1 Employment
Taxes. Contractor shall be responsible for payroll or employment
compensation taxes, Social Security taxes, or for labor-related withholding
taxes for Contractor and its Subcontractors or any of their employees
("Employment Taxes").

     

    26.2 Sales and
Use Taxes on Contractor Tools. Contractor shall pay the taxes on
Contractor's purchases of goods, tools, equipment, supplies and other
consumables which are not permanently incorporated into the Facility and which
remain the property of Contractor. Contractor shall also pay the taxes
attributable to Contractor's Construction Equipment, temporary buildings and
other property used by Contractor in its performance of this Agreement. [**].
Contractor shall impose a similar obligation on all Subcontractors and shall
ensure that no Subcontractor [**].

     

    26.3 Sales and
Use Tax on Equipment. [**] Contractor shall consult with Owner on
Equipment purchases and work with Owner to obtain the most favorable sales and
use tax benefits for Owner.

     

    26.4 State
Property Taxes. Contractor and Owner agree that Owner shall be
responsible for the filing requirements and payment obligations for all state
and local taxes on the Site and the Equipment incorporated (and to be
incorporated) into the Facility, provided that Contractor shall be responsible
for the filing of property tax returns and the payment of state and local
property taxes on Construction Equipment, tools and material which are not
incorporated into the Facility and which are owned, used or leased by Contractor
to perform the Work.

     

    
      
        
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    26.5 Tax
Indemnification.

     

    (a) Except in
cases where the imposition of any Tax is the result of the negligence or willful
or wanton misconduct by Contractor, Owner shall defend, reimburse, indemnify and
hold Contractor harmless for the costs and expenses (including any resulting
Taxes, interests and penalties) incurred by Contractor as a result of (i)
Owner's formal protest to any Government Authority of any Employment Taxes or
Sales Taxes paid or assessed or any property taxes paid or assessed by
Government Authorities on the Site or the Equipment, or any other similar Tax,
whether local, state or federal, including any litigation expenses in the event
Owner decides to protest any such Taxes or (ii) an audit or other investigation
by any Government Authority, including the defense and any resulting Tax
liability in connection therewith. Owner shall not be responsible for any costs
incurred by Contractor necessary to substantiate or verify information for any
Tax audit conducted by any Government Authority in the normal course of
business.

     

    (b) Except in
cases where the imposition of any Tax is the result of the negligence or willful
or wanton misconduct by Owner, Contractor shall defend, reimburse, indemnify and
hold Owner harmless for the costs and expenses (including any resulting Taxes)
incurred by Owner as a result of (i) Contractor's formal protest to any
Government Authority of any Employment Taxes, or any Sales Tax or any property
tax paid or assessed by any Government Authority on Contractor's Construction
Equipment, tools and materials that are not incorporated into the Facility, or
any other similar Tax, whether local, state or federal, including any litigation
expenses in the event Contractor decides to protest any such Taxes or (ii) an
audit or other investigation by any Government Authority, including the defense
and any resulting Tax liability in connection therewith. Contractor shall not be
responsible for any costs incurred by Owner necessary to substantiate or verify
information for any Tax audit or investigation conducted by any Government
Authority in the normal course of business.

     

    26.6 Pollution
Control Equipment Information. Contractor shall supply Owner with all
reasonable information requested by Owner for qualifying air, water or noise
pollution control and other equipment for exemption from sales and use taxes,
property taxes and any other tax credits, refunds or exemptions available to
Owner. Owner shall supply Contractor with all reasonable information and cost
analyses requested by Contractor for qualifying air, water or noise pollution
control equipment for exemption from sales and use taxes, property taxes and any
other credits, refunds or exemptions available to
Contractor.

     

    26.7 Non-resident
Contractor. Contractor shall comply with Section 12-8-550 of the Code of
Laws of South Carolina (1976), as amended, which requires any nonresident
contractor providing labor in the State of South Carolina to register with the
South Carolina Department of Revenue or Secretary of State to avoid the
withholding of two percent (2%) of each payment made to the nonresident
contractor.

     

    ARTICLE
27 – DISPUTE RESOLUTION

     

    27.1 Claims.
A "Claim" is any claim, dispute or other controversy arising out of or relating
to this Agreement, including Change Disputes. Claims must be initiated by
written notice. The responsibility to substantiate Claims shall rest with the
Party making the Claim. The

     

    
      
        
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    other
Party shall provide reasonable cooperation in making available non privileged
information in its possession or control that is relevant for purposes of
substantiating the Claim.

     

    27.2 Change
Dispute. A Party shall provide written notice to the other Party of any
dispute or disagreement that such Party may have regarding a request for a
Change or a notice of a Change given by either Party ("Change Dispute"), which
notice shall contain such Party's position with respect to such Change Dispute
(the "Change Dispute Notice"). Such Party shall provide the Change Dispute
Notice to the other Party no earlier than [**] after such Party (a) submitted a
notice of Change without having received either (i) a written response from the
other Party or (ii) a response from the other Party regarding a notice of Change
that is unsatisfactory to such Party or (b), in the case of Section 9.2,
Contractor has received from Owner a request for a Change that Contractor does
not believe conforms to the requirements of Section 9.2, or a dispute otherwise
arises out of Section 9.2.

     

    27.3 Resolution
by Negotiation.

     

    (a) As an
express condition precedent to commencement of any further proceedings with
respect to a Claim (except as may be provided under any applicable lien
statute), the Party making such Claim shall notify the other Party's Project
Director in writing of such Claim. The Contractor's Project Director and the
Owner's Project Director shall meet within [**] of receipt of the written notice
of such Claim for the purpose of attempting to resolve the
Claim.

     

    (b) If, after
the Contractor's Project Director and the Owner's Project Director meet, the
Claim remains unresolved or if no such meeting takes place for any reason within
such [**] period, then an executive vice president (or equivalent) of (i), in
the case of Contractor, each Consortium Member (unless otherwise agreed by the
Consortium Members) and (ii), in the case of Owner, each of SCE&G and Santee
Cooper (unless otherwise agreed by them) shall meet to attempt to resolve such
Claim, as applicable, within [**] from the end of such [**]
period.

     

    (c) If the
Claim remains unresolved after the [**] period described in Section 27.3(b) and
the Parties have not mutually agreed in writing to mediate such Claim,
then:

     

    (i) [**];
and

     

    (ii) [**]

     

    (d) The
Parties agree to make a diligent, good faith attempt to resolve a Claim as
expeditiously as reasonably possible as provided in this Section
27.3.

     

    
      
        
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    27.4 Mediation.

     

    (a) The
Parties may mutually agree in writing to endeavor to resolve a Claim by
mediation which, unless the Parties mutually agree otherwise, shall be in
accordance with the Construction Industry Mediation Procedures of the AAA in
effect at the time of the mediation. A request for mediation shall be mutually
filed in writing by the Parties with the AAA. If the mediation has not concluded
within [**] after its commencement, then, as applicable:

     

    (i) [**];
and

     

    (ii) [**]

     

    (b) The
Parties shall share the mediator's fee and any AAA filing fees equally. The
mediation shall be held in Charlotte, North Carolina, unless another location is
mutually agreed upon. Agreements reached in mediation shall be enforceable as
settlement agreements pursuant to Section 27.7.

     

    27.5 Arbitration
of Claims[**].

     

    (a) The
Parties agree that any Claim [**] ("Arbitrable Claim") that is not resolved
pursuant to Section 27.3 or 27.4 shall be submitted to final and binding
arbitration for resolution pursuant to this Section 27.5 and in accordance with
the Construction Industry Arbitration Rules of the AAA in effect at the time of
the arbitration, except as modified by this Section 27.5 or otherwise agreed by
the Parties.

     

    (b) Unless
the Parties otherwise mutually agree in writing, the arbitral panel ("Arbitral
Panel") shall consist of three (3) people. Within [**] after the expiration of
the [**] period described in Section 27.3(b), each Party shall give written
notice of its selection of a person to serve as a member of the Arbitral Panel
("Member"), who shall have no less than [**] of experience in the litigation of
complex disputes including preferably experience in the power plant construction
industry. If a Party fails to notify the other Party of the selection of its
Member within such [**] period, then such Member shall be appointed by the AAA.
Within [**] after the selection of the Members of the Arbitral Panel, the
Members shall mutually agree in writing on their nomination of two (2) persons
to serve as the chairman of the Arbitral Panel, who shall be practicing
attorneys validly licensed to practice law in a jurisdiction in the United
States and/or retired judges, and who shall have no less than [**] of experience
in the litigation of complex disputes including preferably experience in the
power plant construction industry (the "Chairman"). (References herein to
"Member" shall include the Chairman unless the context otherwise requires.) The
Members shall then select one of such nominated persons to serve as the
Chairman. In the event that the Members do not mutually agree on the person to
serve as the Chairman within such [**] period, each Member shall submit its
nominated person to AAA, and the AAA shall decide the nominee to serve as the
Chairman.

     

    
      
        
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    (c) It being
imperative that all Members of the Arbitral Panel be neutral, act impartially,
and be free from any conflict of interest, the Parties shall select such persons
on the basis that the Members and the Chairman shall:

     

    (i) have no
interest financial or otherwise in either Party nor any financial interest in
this Agreement except for payment of its fees and expenses as provided
herein;

     

    (ii) not
previously have been employed as a consultant or otherwise by either Party,
unless any such relationship has been disclosed in writing and approved by the
Parties;

     

    (iii) have
disclosed in writing to the Parties and each other Member and the Chairman as
applicable, before being selected and to his or her best knowledge and
recollection, any professional or personal relationships with any director,
officer or employee of either Party;

     

    (iv) not, for
the duration of the Arbitral Panel, be employed as a consultant or otherwise by
either Party, except as may be agreed in writing by the Parties, the other
Members and the Chairman;

     

    (v) not give
advice to either Party or its Personnel concerning the conduct of this
Agreement, other than in accordance with this Agreement;

     

    (vi) not have
any ex-parte communications with either Party at any time after their selection
pursuant to Section 27.5(b);

     

    (vii) not,
while a Member or Chairman, as applicable, enter into discussions or make any
agreement with either Party regarding employment by any of them, whether as a
consultant or otherwise, after ceasing to act as a Member or Chairman, as
applicable; and

     

    (viii) treat the
details of this Agreement and all the Arbitral Panel's activities and hearings
as private and confidential, and not publish or disclose them without the prior
written consent of the Parties.

     

    (d) Each
Party shall be responsible for one-half of the fees and expenses of the Arbitral
Panel, unless the Arbitral Panel includes an award of fees and expenses in the
award. Contractor shall not include such fees and expenses in any amounts
invoiced to Owner under this Agreement.

     

    (e) Either
Party shall be entitled to have any third party join into any proceedings
hereunder as a party thereto under this Section 27.5. A Party may fully defend
against any proceedings hereunder, provided that a Party shall not be entitled
to make a counterclaim against the other Party unless the counterclaim arises
out of the occurrence that is the subject of the pending Arbitrable
Claim.

     

    
      
        
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    (f) The
Arbitral Panel shall be governed by the provisions of this Agreement and the
governing Law, and shall not be entitled to award any punitive, special,
indirect, penal, incidental or consequential loss or
damages.

     

    (g) The
Parties shall promptly provide the Arbitral Panel with such additional
information and access to such facilities and Personnel as the Arbitral Panel
may require for purposes of resolving any submitted Arbitrable Claim. The
Arbitral Panel shall use reasonable efforts to resolve any submitted Arbitrable
Claim as promptly as reasonably practicable and in any event within [**] of the
appointment of the Chairman of an Arbitral Panel [**]. Notwithstanding the
foregoing, if the Parties mutually agree to a deadline extension or the Chairman
determines that it is not feasible to resolve the Arbitrable Claim within the
above listed deadlines, then a deadline may be extended to provide additional
time to resolve such Arbitrable Claim; provided, that the duration of any such
extension shall be set taking into account the agreed upon principle that
disputes are to be resolved as expeditiously as possible. The Parties expressly
agree that the Arbitral Panel shall have no power to consider or award any form
of damages or remedies barred by this Agreement.

     

    (h) The
decision of the Arbitral Panel shall be issued in a writing that sets forth the
Arbitral Panel's reasoned decision. The Arbitral Panel shall not be entitled to
deviate from the construct, procedures or requirements of this Agreement. In the
absence of bias, fraud, or willful misconduct by an arbitrator, any decision
rendered by the Arbitral Panel in any arbitration shall be final and binding
upon the Parties under the United States Arbitration Act 9 U.S.C. §§ 1 et
seq.,
and judgment thereon may be entered in the court described in Section
27.7.

     

    27.6 Exclusive
Resolution Procedures; Equitable Remedies. The procedures specified in
this Article shall be the sole and exclusive procedures for the resolution of
Claims (except for lien claims which are governed by statute); provided,
however, that, notwithstanding anything in this Article to the contrary, a Party
may file a complaint in the court described in Section 27.7 to seek injunctive
relief, sequestration, garnishment, attachment, or an appointment of a receiver.
Despite such actions, the Parties shall continue to participate in good faith in
and be bound by the dispute resolution procedures specified in this
Article.

     

    27.7 Consent to
Jurisdiction. The Parties agree to the exclusive jurisdiction of the
United States District Court for the Southern District of New York or, if such
court does not have jurisdiction of the matter, the courts of the State of New
York located in the City and County of New York, for any legal proceedings that
may be brought by a Party arising out of or in connection with this Agreement or
for recognition or enforcement of any judgment or settlement agreement. By
execution and delivery of this Agreement, each Party accepts, generally
and

     

    
      
        
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    unconditionally,
the jurisdiction of the aforesaid court for legal proceedings arising out of or
in connection with this Agreement. Each Party hereby waives any right to stay or
dismiss any action or proceeding under or in connection with this Agreement
brought before the foregoing court on the basis of forum non-conveniens or
improper venue.

     

    27.8 Continuation
of Work. Pending the final resolution of any Claim, Contractor shall
proceed diligently with the performance or provision of the Work and its other
duties and obligations and Owner shall continue to compensate Contractor as set
forth under this Agreement without diminution of effort; provided that
Contractor is being compensated for the Work pursuant to the terms of this
Agreement, including but not limited to the provisions of Article 8 and provided
that the Parties agree that such duties and obligations can be safely and
prudently performed.

     

    ARTICLE
28 – NOTICES

     

    All
notices, communications, and approvals required or permitted to be given
hereunder shall be in writing and shall be valid and sufficient if delivered in
person or dispatched by certified mail (return receipt requested), postage
prepaid, in any post office in the United States or by any national overnight
express mail services (return receipt requested), and addressed as
follows:

     

    If to
Owner:

     

    South
Carolina Electric & Gas Company

    Attn:
President

    Mail Code
190

    Columbia,
SC 29218

    Telephone
No.: 803-217-8097

    Facsimile
No.: 803-217-9336

     

    South
Carolina Public Service Authority

     

    Attn:
Chief Operating Officer (M602)

     

    One
Riverwood Drive

     

    P.O. Box
2946101

     

    Moncks
Corner, SC 29461-6101

     

    Telephone
No.: 843-761-4087

     

    Facsimile
No.: 843-761-7037

     

    With a
copy to:

     

    South
Carolina Electric & Gas Company

     

    Attn:
General Counsel

     

    Mail Code
190

     

    Columbia,
SC 29218

     

    Telephone
No.: 803-217-8634

     

    Facsimile
No.: 803-217-9336

     

    
      
        
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    South
Carolina Public Service Authority

     

    Attn:
General Counsel (M603)

     

    One
Riverwood Drive

     

    P.O. Box
2946101

     

    Moncks
Corner, SC 29461-6101

     

    Telephone
No.: 843-761-7007

     

    Facsimile
No.: 843-761-7037

     

    If to
Westinghouse:

     

    Westinghouse
Electric Company, LLC

    Attn:
Daniel Lipman

    4350
Northern Pike

    Monroeville,
PA 15146

    Telephone
No.: (412) 374-6920

    Facsimile
No.: (412) 374-6677

     

    With a
copy to:

     

    Westinghouse
Electric Company, LLC

     

    Attn:
General Counsel

     

    4350
Northern Pike

     

    Monroeville,
PA 15146

     

    Telephone
No.: (412) 374-6177

     

    Facsimile
No.: (412) 374-6122

     

    If to
Stone & Webster:

     

    Stone
& Webster, Inc.

    Attn: Ed
Hubner

    3
Executive Campus

    Cherry
Hill, NJ 08002

    Telephone
No.: (856) 482-4178

    Facsimile
No.: (856) 482-3155

    with a
copy to:

     

    Stone
& Webster, Inc.

    Attn:
E.K. Jenkins

    E&C
Division Counsel

    100
Technology Center Drive

    Stoughton,
MA 02072

    Facsimile
No.: (617) 589-1322

     

    
      
        
          -100-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    or to
such other address, attention or facsimile number as such Party to whom such
notice is to be addressed shall have hereafter furnished to the other Party in
writing as provided in this Article.

     

    Notwithstanding
the foregoing, any routine correspondence (as further defined in the Project
Execution Plan) shall be sent to the appropriate project management and
personnel that may be agreed upon by the Parties. Copies of such routine
correspondence shall not be routed to the persons listed above.

     

    ARTICLE
29 – ASSIGNMENT

     

    Neither
Party shall assign this Agreement in whole or in part without the prior written
consent of the other Party. If any assignment by any Party of this Agreement or
any right, interest or obligation therein requires the consent of, or notice to,
any Government Authority, including the NRC, then such Party shall not effect
such assignment without such consent of, or notice to, such Government
Authority.

     

    ARTICLE
30 – WAIVER

     

    The
failure of either Party to enforce at any time any of the provisions of this
Agreement shall not be construed as a waiver of such provision nor shall not in
any way affect the validity of this Agreement or the right of either Party to
enforce each and every provision.

     

    ARTICLE
31 – MODIFICATION

     

    No
waiver, modification, or amendment of any of the provisions of this Agreement
shall be binding unless it is in writing and signed by duly authorized
representatives of both Parties.

     

    ARTICLE
32 – SURVIVAL

     

    The
Parties agree that the provisions of Article 15 – Indemnity, Article 17 – [**],
Article 19 – Proprietary Data, Article 27 – Dispute Resolution, Section 22.2(e)
[**], and Section 25.4 –Right to Audit, this Article and any other terms and
conditions of this Agreement that are expressly stated to survive or limiting
the liability of Contractor shall survive termination, cancellation or
expiration of this Agreement. Any liability and insurance protections afforded a
Party hereunder shall apply during the Work and thereafter, and shall survive
termination, cancellation or expiration of this Agreement, subject to time
limitations provided for in this Agreement.

     

    ARTICLE
33 – TRANSFER

     

    Prior to
the removal of any Equipment furnished hereunder from the Facility, except
temporarily for repair or permanently for disposal, Owner shall provide
Contractor with written assurances from the transferee of limitation of and
protection against liability following the proposed removal or transfer at least
equivalent to that afforded Contractor and Contractor Interests under the
provisions of this Agreement. Removal or transfer contrary to the provisions of
this Article shall, in addition to any other legal or equitable rights of
Contractor, make Owner the indemnitor

     

    
      
        
          -101-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    of
Contractor and Contractor Interests against any liabilities incurred by
Contractor and Contractor Interests in excess of those that would have been
incurred had no such transfer taken place.

     

    ARTICLE
34 – GOVERNING LAW; WAIVER OF JURY TRIAL; CERTAIN FEDERAL LAWS

     

    34.1 Governing
Law. The validity, construction, and performance of this Agreement shall
be governed by and interpreted in accordance with the laws of the State of New
York, without giving effect to the principles thereof relating to conflicts of
laws except Section 5-1401 of the New York General Obligations Law; provided,
however, that nothing in this Agreement shall seek to alter the rights,
responsibilities and limitations applicable to Santee Cooper under the laws of
the State of South Carolina.

     

    34.2 Waiver of
Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT.

     

    34.3 Certain
Federal Laws. In the performance of Work under this Agreement, Contractor
and its Subcontractors shall comply with applicable Law, including provisions of
Executive Order 11246, as amended, relating to equal opportunity and
nonsegregated facilities, the Fair Labor Standards Act of 1933, the Occupational
Safety and Health Act of 1970, and the requirements of the rules, regulations,
orders, bulletins and interpretations of the NRC, and with the Laws as set forth
in Exhibit
S, to the extent applicable to Contractor or Subcontractors. Contractor
further agrees to comply with, and agrees to require Subcontractors that are
subject to such requirements to comply with, Owner's Government Contracting
Programs requirements as specified in 13 CFR 125, 48 CFR 52.219-8, and 48 CFR
52.219-9.

     

    ARTICLE
35 – RELATIONSHIP OF OWNER AND CONTRACTOR

     

    Contractor
is an independent contractor and nothing contained herein shall be construed as
creating (i) any relationship between Owner and Contractor other than that of
owner and independent contractor, (ii) any relationship whatsoever between Owner
and Contractor's employees or Subcontractors or (iii) a fiduciary relationship
between Contractor and Owner. Neither Contractor, nor any of its employees, are
or shall be deemed to be employees of Owner.

     

    ARTICLE
36 – THIRD PARTY BENEFICIARIES

     

    Except as
expressly set forth in this Agreement, the provisions of this Agreement are
intended for the sole benefit of Owner and Contractor and each Consortium
Member, and the Parties do not intend to create any other third party
beneficiaries or otherwise create privity of contract with any other
Person.

     

    
      
        
          -102-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    ARTICLE
37 – REPRESENTATIONS AND WARRANTIES

     

    37.1 Representations
and Warranties of Contractor. Each Consortium Member hereby represents
and warrants to Owner as follows:

     

    (a) Due
Organization of Consortium Member.

     

    (i) Stone
& Webster represents and warrants that it is duly organized, validly
existing and in good standing under the laws of the State of Louisiana and has
the requisite power and authority to own and operate its business and properties
and to carry on its business as such business is now being conducted and is duly
qualified to do business in the State of South Carolina and in any other
jurisdiction in which the transaction of its business makes such qualification
necessary.

     

    (ii) Westinghouse
represents and warrants that it is duly organized, validly existing and in good
standing under the laws of the State of Delaware and has the requisite power and
authority to own and operate its business and properties and to carry on its
business as such business is now being conducted and is duly qualified to do
business in the State of South Carolina and in any other jurisdiction in which
the transaction of its business makes such qualification
necessary.

     

    (b) Due
Authorization of Consortium Member; Binding Obligation. Consortium Member
has full power and authority to execute and deliver this Agreement and to
perform its obligations hereunder, and the execution, delivery and performance
of this Agreement by Consortium Member has been duly authorized by the necessary
action on the part of such Consortium Member; this Agreement has been duly
executed and delivered by such Consortium Member and is the valid and binding
obligation of such Consortium Member enforceable in accordance with its
terms.

     

    (c) Non-Contravention.
The execution, delivery and performance of this Agreement by Consortium Member
and the consummation of the transactions contemplated hereby do not and shall
not contravene any applicable Law or the organizational documents of such
Consortium Member and do not and shall not conflict with or result in a breach
of or default under any indenture, mortgage, lease, agreement, instrument,
judgment, decree, order or ruling to which such Consortium Member is a party or
by which it or any of its properties is bound or affected.

     

    (d) Consortium
Agreement. The Consortium Members have entered into an agreement setting
forth their consortium arrangements for the performance of this Agreement and
their sharing of liabilities with respect thereto.

     

    37.2 Representations
and Warranties of SCE&G and Santee Cooper. Each of SCE&G and
Santee Cooper hereby represents, warrants and covenants to Contractor as
follows:

     

    (a) Due
Organization of Owner. It is duly organized, validly existing and in good
standing under the laws of the State of South Carolina and has the requisite
power and authority to own and operate its business and properties and to carry
on its business as such

     

    
      
        
          -103-

           

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this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    business
is now being conducted and is duly qualified to do business in State of South
Carolina and in any other jurisdiction in which the transaction of its business
makes such qualification necessary.

     

    (b) Due
Authorization of Owner; Binding Obligation. Its execution, delivery and
performance of this Agreement has been duly and effectively authorized by the
requisite action on the part of its governing board. This Agreement constitutes
its legal, valid and binding obligations, enforceable against it in accordance
with its terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other Laws affecting the rights of creditors
generally and by general principles of equity.

     

    (c) Non-Contravention.
Its execution, delivery and performance of this Agreement and the consummation
of the transactions contemplated hereby do not and shall not contravene any
applicable Law or organizational documents or do not and shall not conflict with
or result in a breach of or default under any indenture, mortgage, lease,
agreement, instrument, judgment, decree, order or ruling to which it is a party
or by which it or any of its properties is bound or
affected.

     

    On the
Effective Date, Santee Cooper shall provide a letter to Contractor making each
of the representations set forth in this Section 37.2 on its own behalf as well
as a representation that Santee Cooper has appointed SCE&G as its agent
pursuant to the Limited Agency Agreement, which is attached hereto Exhibit
V, for all purposes under this Agreement, with the power and authority to
bind Santee Cooper to its obligations herein, subject to the limitations
specifically set forth in the Limited Agency Agreement. In such letter, Santee
Cooper shall also agree to notify Contractor promptly in writing if there is any
change in the limits of SCE&G's authority set forth in such Limited Agency
Agreement.

     

    ARTICLE
38 – MISCELLANEOUS PROVISIONS

     

    38.1 Rights
Exclusive. The rights and remedies of Owner or Contractor as set forth in
this Agreement shall be the exclusive rights or remedies of the Parties. The
limitations of liability, waivers, indemnities, extension of insurances and
other liability protection provided herein for the benefit of Contractor shall
also apply for the benefit of Contractor Interests and shall apply irrespective
of the basis of such claim, whether arising at contract (including breach
warranty, indemnity, etc.), tort or otherwise, and regardless of fault,
negligence or strict liability.

     

    38.2 Severability.
If any provision of this Agreement or the application of this Agreement to any
Person or circumstance shall to any extent be held invalid or unenforceable by a
court of competent jurisdiction or arbitrator under Article 27, then (i)
the remainder of this Agreement and the application of that provision to Persons
or circumstances other than those as to which it is specifically held invalid or
unenforceable shall not be affected, and every remaining provision of this
Agreement shall be valid and binding to the fullest extent permitted by Laws,
and (ii) a suitable and equitable provision shall be substituted for such
invalid or unenforceable provision in order to carry out, so far as may be valid
and enforceable, the intent and purpose of such invalid or unenforceable
provision.

     

    
      
        
          -104-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    38.3 Entire
Agreement. This Agreement contains the entire agreement and understanding
between the parties as to the subject matter of this Agreement, and merges and
supersedes all prior agreements, commitments, representations, writings and
discussions between them other than the Existing Confidentiality Agreement,
which shall remain in effect for the purposes set forth in Section 19.2(c)(i).
Neither of the Parties shall be bound by any prior obligations, conditions,
warranties, or representations with respect to the subject matter of this
Agreement.

     

    38.4 Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

     

    
      
        
          -105-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

        
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    IN WITNESS
WHEREOF, the Parties have duly executed this Agreement as of the date
first above written.

     

    
      	
              SOUTH
      CAROLINA ELECTRIC & GAS COMPANY, for itself and as agent for South
      Carolina Public Service Authority

              By:/s/ William B.
      Timmerman

              Name: William B.
      Timmerman

              Title: President and
      CEO

            	 
      
	
              STONE
      & WEBSTER, INC.

              By: /s/ David P.
      Barry

              Name:David P. Barry

              Title: Executive Vice
      President

            	
              WESTINGHOUSE
      ELECTRIC COMPANY LLC

              By:/s/ Aris
      Candris

              Name: Aris
      Candris

              Title: Senior Vice
      President

            

    

     

    
      
        
          -106-

           

          “[**]” in
this Exhibit 10.01 indicates material that has been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.

        

         

      

      
         

        
        

      

      
         

      

    

    
       

      
         

        
        

      

      
         

        
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        EXHIBIT A

        Scope
of Work / Supply

        And
Division of Responsibility

         

        [**This
entire 62-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

        
          
             

          

          
             

            
            

          

          
             

          

        

       

       

      EXHIBIT
B

    

    Contractor’s
Organization

    
      
        
           

        

         

      

      
         

        
        

      

      
         

        
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            EXHIBIT
C

            Permits

             

          

        

      

    

    

    X =
CONTRACTOR RESPONSIBILITY

    O = OWNER
RESPONSIBILITY

    (Where
both are listed, the Party first listed has the lead responsibility and the
second one has the responsibility to support)

     

    
      	
              Listing
      of Required Permits and Licenses

            
	
              PERMITS,
      PLANS, & DETERMINATIONS NEEDED

            	
              PERMIT
TYPE

            	
              DESIGN DATA NEEDED
      (Y/N)

            	
              DEVELOP
    PERMIT

            	
              OWNER
      /  HOLDER

            	
              IMPLEMENT
      PERMIT

            
	
              Well
      Permit (Groundwater Wells)

              (SC
      R61-71)

            	
               

              State
      DHEC

            	
              Y

            	
              X

            	
              X

            	
              X

            
	
              Negative
      declaration on cultural resources from the State Historic Preservation
      Officer (SHPO)

              (36
      CFR Part 800)

            	
               

              State

            	
              N

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Negative
      declaration on endangered species from the U.S. Fish and Wildlife Services
      (USFWS)

              (50
      CFR Parts 13, 17, 222, 226, 227, 402, 424, 450-453)

            	
              Federal

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Negative
      declaration on endangered species from South Carolina Department of
      Natural Resources (SCDNR)

              (50
      CFR Parts 13, 17, 222, 226, 227, 402, 424, 450-453)

            	
              State

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Wetlands
      404 Permit from U.S. Army Corps of Engineers (COE)

              (33
      CFR 328)

            	
              Federal

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Floodplain
      Assessment

              (E.O.
      11988)

            	
              Federal

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Federal
      Aviation Administration § 77.15 Permit

              (14
      CFR 77)

            	
              Federal

            	
              Y

            	
              X

            	
              X

            	
              X

            
	
              PERMITS,
      PLANS, & DETERMINATIONS NEEDED FOR ANY CONSTRUCTION

            
	
              Air
      Quality Protection Permitting

            
	
              DOE
      Spent Fuel Agreement/Contract (NWPA 1982)

            	
              Federal

            	
              N

            	
              O

            	
              O

            	
              O

            
	
              Bureau
      of Air Quality Construction Permit

              (May
      include contractor small sources)

              (SC
      R. 61-62)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Concrete
      Batch Plant BAQ Permit (Form IIF)

              (May
      be part of BAQ Construction Permit)

              (SC
      R. 61-62)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Surface
      Water Protection Permitting

            
	
              Dam
      Repair/Alterations Permit

              (SC
      R. 72-1 through R. 72-9)

            	
              State
      DHEC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Water
      Use Permit (Water withdrawal from Broad River)

            	
              Federal

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Sec
      401 Water Quality Certification (SCDHEC)

              (SC
      R61-101)

            	
              State

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Public
      Water Supply System (Potable Water)

              (SC
      R. 61-58.)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Sec
      404 Dredge & Fill Permit (Corps of Engineers)

              Dredging
      of Ponds and River (33 CFR 323)

              Construction
      in Wetlands (33 CFR 330)

              Wetland
      and/or stream fill

              Construction
      of Intake/Discharge Structures (33 CFR 322/Section 10 Rivers and Harbors
      Act)and Impact to Navigable Waters (33 USC 403)

            	
              Federal/

              State

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              County
      Septic Tank Permit

            	
              County

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              NPDES
      Permit to Construct

              Sanitary
      Wastewater

              Wastewater
      Treatment

              Intake
      Structure (33 CFR 322)

              Discharge
      structure

               

              (SC
      R. 61-9)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              NPDES
      Permit - Concrete Batch Plant

              (SC
      R. 61-9)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              NPDES
      Stormwater Permit

              Construction
      Storm Water Pollution Prevention Plan (SWPPP)

              Erosion
      Control Plan

              Grading
      Permit

              Notice
      of Intent (NOI)

              (SC
      R. 61-9)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              CZMA
      Approval / Waiver

            	
              State/Federal

            	
              Y

            	
              O

            	
              O

            	
              O

            
	
              Facility
      Response Plan for Oil Spills

              (40
      CFR 112, SC R. 61-9 BMP)

            	
              State

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Groundwater/Drinking
      Water Protection Permitting

            
	
              Diesel
      Fuel Storage Tank (UST) Installation Permit (Potentially not required for
      above ground tanks)

              (SC
      R. 61-92)

            	
              State
      DHEC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Waste
      Management Permitting

            
	
              Construction
      & Demolition Landfill

              (SC
      R. 61-71, R. 61-107.258, R. 61-107.11, and R. 61-107.13)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Pollution
      Prevention and Waste Minimization Plan (RCRA)

              (SC
      R. 61-79, and SC R. 61-104)

            	
              State
      DHEC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Process
      Waste Disposal/RCRA ID Number

              (SC
      R. 61-79, and SC R. 61-104)

            	
              State
      DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              X

            
	
              Used
      Oil Disposal

              (SC
      R. 61-79, and SC R. 61-104)

            	
              State

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Miscellaneous
      Permits

            
	
              NRC
      COL

            	
              NRC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              FERC
      License Revision (Project 1894)

               

            	
              FERC
      License

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              ASME
      Owners Certification (NCA-3230)

            	
              ASME

            	
              N/A

            	
              O

            	
              O

            	
              O

            
	
              Parr/FFPS
      and Railroad Easements

            	
              SCE&G

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              SC
      Business License

            	
              State

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Release
      from “Land Application” status for areas in and around
L50.

            	
              State
      DHEC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Engineering
      Report [International Building Codes, Sec 1704)

              (Fairfield
      Co Building Safety)

            	
              County

            	
              Y

            	
              X

            	
              X

            	
              X

            
	
              Building
      Permit [Offices & warehouses only]

              (Fairfield
      Co Building Safety)

            	
              County

            	
              Y

            	
              X

            	
              X

            	
              X

            
	
              DOT
      Highway Encroachment/Modifications

            	
              State

              DOT

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              Blasting
      Permit

            	
              State

            	
              N

            	
              X

            	
              X

            	
              X

            
	
              Certificate
      of Public Convenience and Necessity

              (SC
      Public Service Commission)

            	
              State

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              PERMITS,
      PLANS, & DETERMINATIONS NEEDED FOR OPERATION

            
	
              Air
      Quality Protection Permitting

            
	
              Title
      V Air Operating Permit or Conditional Major Source Permit

              (SC
      R. 61-62)

            	
              State

              DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              O

            

    

    

    
      
        
          
          

           

        

        
           

          
          

        

        
           

          
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Confidential Trade Secret Information—Subject to Restricted
Procedures

             

            EXHIBIT
C

            Permits

             

          

        

      

    

    

     

    
      	
              Listing
      of Required Permits and Licenses

            
	
              PERMITS,
      PLANS, & DETERMINATIONS NEEDED

            	
              PERMIT
TYPE

            	
              DESIGN DATA NEEDED
      (Y/N)

            	
              DEVELOP
    PERMIT

            	
              OWNER
      /  HOLDER

            	
              IMPLEMENT
      PERMIT

            
	
              Surface
      Water Protection Permitting

            
	
              NPDES
      Permit

              Sanitary
      Wastewater Discharge

              Wastewater
      Treatment Discharge

              Cooling
      Tower Blowdown Discharge

              (SC
      R. 61-9)

            	
              State

              DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              Operations
      SPCC Plan

              (40
      CFR 112, SC R. 61-9)

            	
              State

            	
              Y

            	
              N/A

            	
              N/A

            	
              N/A

            
	
              NPDES
      Operations Stormwater Permit

              Operations
      Storm Water Pollution Prevention Plan (SWPPP)

              (SC
      R. 61-9)

            	
              State

              DHEC

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              Groundwater/Drinking
      Water Protection Permitting

            
	
              Diesel
      Fuel Storage Tank (UST) Operating Permit (Potentially not required for
      above ground tanks)

              (SC
      R. 61-92)

            	
              State

              DHEC

            	
              N/A

            	
              N/A

            	
              N/A

            	
              N/A

            

    

    

    
      
        
          
          

           

        

        
           

          
          

        

        
           

          
            Execution
Version                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

             

            EXHIBIT
C

            Permits

             

          

        

      

    

    

     

    
      	
              Listing
      of Required Permits and Licenses

            
	
              PERMITS,
      PLANS, & DETERMINATIONS NEEDED

            	
              PERMIT
TYPE

            	
              DESIGN DATA NEEDED
      (Y/N)

            	
              DEVELOP
    PERMIT

            	
              OWNER
      /  HOLDER

            	
              IMPLEMENT
      PERMIT

            
	
              Waste
      Management Permitting

            
	
              Process
      Waste Disposal/RCRA ID Number

              (SC
      R. 61-79, and SC R. 61-104)

            	
              State

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              Pollution
      Prevention and Waste Minimization Plan

              (SC
      R. 61-79, and SC R. 61-104)

            	
              State

            	
              Y

            	
              O/X

            	
              O

            	
              O

            
	
              Radioactive
      Materials/Transport License

              (SC
      R 61-63 and R 61-83)

            	
              State
      DHEC

            	
              N

            	
              O

            	
              O

            	
              O

            
	
              SNM
      License

              10
      CFR 30, 40 and 70

            	
              Federal

              NRC

            	
              N

            	
              O

            	
              O

            	
              O

            
	
              Certificate
      to Transport Hazardous Materials

              (40
      CFR and SC R 61-79)

            	
              Federal/

              DOT

            	
              N

            	
              O

            	
              O

            	
              O

            

    

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    

    EXHIBIT
D

    AP1000—Project
Execution Plan Processes

     

    [**This
entire four-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    

    
      
        
           

        

        
           

          
          

        

        
           

        

      

    

    

    EXHIBIT
E

    Project
Schedule

     

    [**This
entire 25-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    

    
      
        
           

        

        
           

          
          

        

        
           

        

      

    

    
 

    EXHIBIT
F-1

    Milestone
Payment Schedule

     

    [**This
entire 46-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    

    
      
        
           

        

        
           

          
          

        

        
           

        

      

    

    

 

    
      EXHIBIT
F-2

      Payment
Plan

       

      [**This
entire 13-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
G

       

      [**This
entire five-page exhibit and the exhibit’s title have been omitted pursuant to a
request for confidential treatment and filed separately with the Securities and
Exchange Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
H

      Pricing

       

      [**This
entire 14-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

    
      EXHIBIT
I-1

      Toshiba
Parent Guaranty

       

      [**This
entire six-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
I-2

      Shaw
Parent Guaranty

       

      [**This
entire six-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
J

      Price
Adjustment Provisions

      And
Division of Responsibility

       

      [**This
entire 16-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

        

        
           

        

      

      EXHIBIT
K

      Costs

       

      [**This
entire eight-page exhibit has been omitted pursuant to a request for
confidential treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
L

      Net
Electric Guarantee Conditions and Load List

       

      [**This
entire 20-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
M-1

      Software
License

       

      [**This
entire 10-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
M-2

      AP1000
Intellectual Property License (WEC)

      

      [**This
entire seven-page exhibit has been omitted pursuant to a request for
confidential treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
M-3

      AP1000
Intellectual Property License (S&W)

       

      [**This
entire seven-page exhibit has been omitted pursuant to a request for
confidential treatment and filed separately with the Securities and Exchange
Commission.]

    
      
         

      

      
         

        
        

      

      
         

        
          Execution
Version Confidential Trade Secret Information—Subject to Restricted
Procedures

           

        

      

    

    EXHIBIT
N

    Industry
Codes And Standards

     

    Table of
Contents

     

    Introduction                                                                                                                                                                                          
3

     

    Codes and
Standards

     

    ACI -
American Concrete
Institute                                                                                                                                          
 5

     

    AISC -
American Institute of Steel
Construction                                                                                                                       
5

     

    AISI -
American Iron and Steel
Institute                                                                                                                                   
5

     

    AMCA -
Air Movement and Control Association,
Inc.                                                                                                              5

     

    ANS –
American Nuclear
Society                                                                                                                                            
6

     

    ANSI –
American National Standards
Institute                                                                                                                         
7

     

    API –
American Petroleum
Institute                                                                                                                                         
 9

     

    ARI – Air
Conditioning and Refrigeration
Institute                                                                                                                      9

     

    ASCE –
American Society of Civil
Engineers                                                                                                                          
 10

     

    
                 
ASHRAE – American Society of Heating, Refrigeration, and Air Conditioning
Engineers                                                          
10

    

     

               
ASME – American Society of Mechanical
Engineers                                                                                                                10

     

    ASTM –
American Society of Testing and
Materials                                                                                                                
14

     

    AWS –
American Welding
Society                                                                                                                                          15

     

    AWWA –
American Water Works
Association                                                                                                                    
  15

     

    CMAA –
Crane Manufacturers Association of
America                                                                                                           15

     

    FEMA –
Federal Emergency Management
Agency                                                                                                                 
16

     

    IEEE –
Institute of Electrical and Electronics
Engineers                                                                                                             16

     

    ISA –
Instrumentation, Systems and Automation
Society                                                                                                          20

     

    MIL –
Military Standards and
Specifications                                                                                                                           
20

     

    NEMA –
National Electrical Manufacturers
Association                                                                                                           20

     

    NFPA –
National Fire Protection
Association                                                                                                                         
20

     

    
      	
               
      

            	
              SMACNA
      – Sheet Metal and Air Conditioning Contractors National
      Association                                                                    22

            

    

     

    
      	
                          
      UBC – Uniform Building Code

            	
                                                                                               
       22

            

    

     

     UL
– Underwriters Laboratories,
Inc.                                                                                                                       
          
  22

     

     

     

     

     

     

     

    AP1000
Nuclear Power Plant Codes and Standards Introduction

     

     

     

    This
document provides the listing of industry codes and standards that are
applicable to the AP1000 Nuclear Power Plant design (the “Industry Codes and
Standards”). The attached listing of the Industry Codes and Standards is derived
from the AP1000 Design Certification Document (DCD). This list therefore is a
listing of codes and standards that the AP1000 Nuclear Power Plant design is
committed to by the licensing process. The revision or date of each code and
standard is also included in the attached table.  For codes and
standards that were provided in the DCD without revision or date, the revision
or date in effect, March 2002 (submittal date of the AP1000 Nuclear Power Plant
design to NRC) was used.  The revisions reflect the DCD licensing
commitment. Changes to the standard or revision may require a licensing
submittal by the Owner. Contractor will notify Owner of any proposed changes to
the listing of Industry Codes and Standards to ensure that they are reflected in
future licensing submittals.

     

    Except as
provided below, regarding ASME application, the edition and addenda of the ASME
code applied in the design and manufacture of each component is the edition and
addenda established by the requirements of the DCD. The use of editions and
addenda issued subsequent to the DCD is permitted, however any change to ASME
code edition will require NRC approval. In the event the DCD does not specify
the edition and addenda of the code applicable to an activity required under the
Agreement, the activity will be performed in compliance with the code edition
and addenda required under 10 CFR 50.55a. The baseline used for the evaluations
done to support this Design Control Document and the DCD is the
1998 Edition, 2000 Addenda, except as follows:

     

    The 1989
Edition, 1989 Addenda is used for Articles NB-3200 (Design by Analysis),
NB-3600, NC-3600, and ND-3600 (Piping Design) in lieu of later editions and
addenda.

     

    Guidance
for ASME code year and addenda to use in mechanical equipment and valve
specifications:

     

    CASE 1:
ASME Section III Safety Related Equipment in Support of the Design
Certification

     

    If the
principal construction code for the equipment is ASME Section III as defined in
Table 3.2-3 of the DCD, then the year and addenda shall be in accordance with
paragraphs 5.2.1.1 and 6.1.1 of the DCD (i.e., 1998 year with 2000 addenda),
except as follows:

     

    “The 1989
Edition, 1989 Addenda is used for Articles NB-3200 (Design by Analysis),
NB-3600, NC-3600, and ND-3600 (Piping Design) in lieu of later editions and
addenda.”

     

    Any other
ASME BP&V Code Sections listed within the equipment specification for this
equipment (e.g., II, V, IX, and XI) shall have the same 1998 year and 2000
addenda.

     

    In
addition to AP1000 Nuclear Power Plant codes A, B, and C, the above applies to
code D non-safety equipment being built to ASME Section III as the principal
construction code defined in Table 3.2-3 of the DCD.

     

     

    CASE 2:
Non-ASME Section III Equipment (Non-Safety Related
Equipment)

     

    If the
equipment principal construction code is ASME but NOT Section III as defined in
Table 3.2-3 in the DCD (e.g., ASME Section VIII for pressure tanks/vessels),
then the ASME 2001 year and 2003 addenda shall be used, unless otherwise
specified in the DCD.  ASME Section III will NOT be included in the
specifications and standards list in the equipment specification.

     

    If any
other ASME Sections are listed within the equipment specification (e.g., ASME
Section IX for welding requirements), then the 2001 year with 2003 addenda shall
be used for them as well.

     

    Additional
codes and standards may be applied to the final AP1000 Nuclear Power Plant
design at the sole discretion of Contractor. These additional codes and
standards will then be requirements for the AP1000 Nuclear Power Plant design,
however they will not be required by licensing and therefore the date and
application is subject to change as determined by Contractor in its sole
discretion.

     

    The
attached table, Table 1, only list industry codes and
standards.  Regulatory standards (Regulatory Guides, NUREGs, etc.) are
not included in the attachment; these standards are referenced in the
DCD.

     

    Table 2
identifies codes and standards that are not included in the Licensing Basis but
are pertinent to the Facility.  Since they are not included as part of
the Licensing Basis, revisions may be used as determined by Contractor in its
sole discretion.

     

     

     

     

     

     

    
      
        
        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

                                                        
Table 1

          AP1000
Codes and Standards (Licensing Basis)

           

          Title
                                                                                                           
DCD
Section 

        

      

    

    
      	
              ACI
      - American Concrete Institute

            	 
      
	
              ACI
      117, “Standard Specification for Tolerances for Concrete Construction and
      Materials,” 1990

            	
              3.8

            
	
              ACI
      211.1, “Standard Practice for Selecting Proportions for Normal, Heavy
      Weight, and Mass Concrete,” 1991

            	
              3.8

            
	
              ACI
      304R, “Guide for Measuring, Mixing, Transporting, and Placing Concrete,”
      2000

            	
              3.8

            
	
              ACI
      318, “Building Code Requirements for Reinforced Concrete,”
      2002

            	
              2.5

            
	
              ACI
      349.3R, “Evaluation of Existing Nuclear Safety-Related Concrete
      Structures,” 1996

            	
              3.8

            
	
              ACI
      349, “Code Requirements for Nuclear Safety Related Concrete Structures,”
      2001

            	
              1A,
      3.8, 3H

            
	
              AISC
      - American Institute of Steel Construction

            	 
      
	
              AISC
      N690, “Specification for the Design, Fabrication, and Erection of Steel
      Safety-Related Structures for Nuclear Facilities,” 1994

            	
              3A,
      3F, 3H

            
	
              AISC
      S335, “Specification for Structural Steel Buildings, Allowable Stress
      Design and Plastic Design,” 1989

            	
              3.3

            
	
              Seismic
      Provisions for Structural Steel Buildings, American Institute of Steel
      Construction, April 1977 including Supplement 2, November
    2000

            	
              3.7

            
	
              AISI
      - American Iron and Steel Institute

            	 
      
	
              AISI,
      “Specification for the Design of Cold Formed Steel Structural Members,”
      1996 Edition and Supplement No. 1, July 30, 1999

            	
              3A,
      3F

            
	
              AMCA
      - Air Movement and Control Association, Inc.

            	 
      
	
              AMCA
      210, “Laboratory Method of Testing Fans for Rotating Purposes,”
      1985

            	
              9.4

            
	
              AMCA
      211, “Certified Ratings Program Air Performance,” 1987

            	
              9.4

            
	
              AMCA
      300, “Reverberant Room Method for Sound Testing of Fans,”
    1985

            	
              9.4

            
	
              AMCA
      500, “Test Method for Louvers, Dampers, and Shutters,”1989

            	
              9.4

            
	
              ANS
      – American Nuclear Society

            	 
      
	
              ANS
      5.1, “Decay Heat Power in Light Water Reactors,” 1994

            	
              5.4

            
	
              ANS
      5.1, “Decay Heat Power in Light Water Reactor,” 1979

            	
              1.9,
      15.2

            
	
              ANS
      5.4, “American National Standard Method for Calculating the Fractional
      Release of Volatile Fission Products From Oxide Fuel,”
1982

            	
              1A

            
	
              ANS
      6.1, “Guidelines on the Nuclear Analysis and Design of Concrete Radiation
      Shielding for Nuclear Power Plants,” 1989

            	
              12.3

            
	
              ANS
      6.4, “Guidelines on the Nuclear Analysis and Design of Concrete Radiation
      Shielding for Nuclear Power Plants,” 1997

            	
              1A,
      12.3

            
	
              ANS
      15.8, “Nuclear Material Control Systems for Nuclear Power Plants,”
      1974

            	
              13

            
	
              ANS
      18.1, “Radioactive Source Term for Normal Operation of Light Water
      Reactors,” 1999

            	
              1A,
      11.1

            
	
              ANS
      51.1, “Nuclear Safety Criteria for the Design of Stationary Pressurized
      Water Reactor Plants,” 1983

            	
              3.2,
      3.9, 5.4, 9.3

            
	
              ANS
      55.6, “Liquid Radioactive Waste Processing Systems for Light Water Reactor
      Plants,” 1993

            	
              11.2

            
	
              ANS
      56.2, “Containment Isolation Provisions for Fluid Systems,”
      1984

            	
              1A

            
	
              ANS
      56.11, “Design Criteria for Protection Against the Effects of Compartment
      Flooding in Light Water Reactor Plants,” 1988

            	
              3.4

            
	
              ANS
      57.1, “Design Requirements for Light Water Reactor Fuel Handling Systems,”
      1992

            	
              9.1

            
	
              ANS
      57.2, “Design Requirements for Light Water Reactor Spent Fuel Storage
      Facilities at Nuclear Power Plants,” 1983

            	
              4.3,
      9.1

            
	
              ANS
      57.3, “Design Requirements for New Fuel Storage Facilities at LWR Plants,”
      1983

            	
              4.3

            
	
              ANS
      58.2, “Design Bases for Protection of Light Water Nuclear Power Plants
      Against Effects of Postulated Pipe Rupture,” 1988

            	
              3.6

            
	
              ANS
      58.8, “Time Response Design Criteria for Nuclear Safety Related Operator
      Actions,” 1984

            	
              1.9

            
	
              ANS
      C-2, “National Electrical Safety Codes,” 1997

            	
              8.2

            
	
              ANSI
      – American National Standards Institute

            	 
      
	
              ANSI
      16.1, “Nuclear Criticality Safety in Operations with Fissionable Materials
      Outside Reactors,” 1975

            	
              9.1

            
	
              ANSI
      56.5, “PWR and BWR Containment Spray System Design Criteria,”
      1979

            	
              1.9

            
	
              ANSI
      56.8, “Containment System Leakage Testing Requirements,”
    1994

            	
              6.2

            
	
              ANSI
      58.6, “Criteria for Remote Shutdown for Light Water Reactors,”
      1996

            	
              7.4

            
	
              ANSI
      B16.34, “Valves – Flanged and Buttwelding End,” 1996

            	
              3.2

            
	
              ANSI
      B16.41, “Functional Operational Requirement for Power Operated Valves,”
      1983

            	
              1.9

            
	
              ANSI
      B30.2, “Overhead and Gantry Cranes,” 1990

            	
              9.1

            
	
              ANSI
      B30.9, “Slings,” 1996

            	
              9.1

            
	
              ANSI
      B31.1, “Power Piping, ASME Code for Pressure Piping,” 1989

            	
              3.2,
      3.6, 9.2

            
	
              ANSI
      B96.1, “Welded Aluminum-Alloy Storage Tanks,” 1981

            	
              3.2

            
	
              ANSI
      HFS-100, “American Standard for Human Factors Engineering of Visual
      Display Terminal Workstations,” 1988

            	
              18.8

            
	
              ANSI
      N14.6, "Special Lifting Devices for Shipping Containers Weighing 10,000
      pounds (4500 kg) or More,” 1993

            	
              3.9,
      9.1

            
	
              ANSI
      N16.1, “Nuclear Criticality Safety in Operations with Fissionable
      Materials Outside Reactors,” 1975

            	
              9.1

            
	
              ANSI
      N16.9, “Validation of Calculational Methods for Nuclear Criticality
      Safety,” 1975

            	
              9.1

            
	
              ANSI
      N18.2, “Nuclear Safety Criteria for the Design of Stationary Pressurized
      Water Reactor Plants,” 1973

            	
              15.0

            
	
              ANSI
      N18.2a, “Nuclear Safety Criteria for the Design of Stationary Pressurized
      Water Reactor Plants,” 1975.

            	
              3.2

            
	
              ANSI
      N101.6, “Atomic Industry Facility Design, Construction, and Operation
      Criteria,” 1972

            	
              1A

            
	
              ANSI
      N210, “Design Objectives for Light Water Reactor Spent Fuel Storage
      Facilities at Nuclear Power Stations,” 1976

            	
              9.1

            
	
              ANSI
      N237, “Source Term Specification,” 1976

            	
              1A

            
	
              ANSI
      N271, “Containment Isolation Provisions for Fluid Systems,”
      1976

            	
              1A

            
	
              ANSI
      N278.1, “Self-Operated and Power-Operated Safety-Relief Valves Functional
      Specification Standard,” 1975

            	
              5.4

            
	
              API
      – American Petroleum Institute

            	 
      
	
              API
      610, “Centrifugal Pumps for General Refinery Services,”
    1981

            	
              3.2

            
	
              API-620,
      “Recommended Rules for Design and Construction of Large, Welded,
      Low-Pressure Storage Tanks,” Revision 1, April 1985.

            	
              3.2

            
	
              API-650,
      “Welded Steel Tanks for Oil Storage,” Revision 1, February
      1984.

            	
              3.2

            
	
              ARI
      410, “Forced Circulation Air Cooling and Air Heating Coils”,
      1991

            	
              9.4

            
	
              ARI
      – Air Conditioning and Refrigeration Institute

            	 
      
	
              ARI
      620, “Self-Contained Humidifiers for Residential Applications,”
      1996

            	
              9.4

            
	
              ASCE
      – American Society of Civil Engineers

            	 
      
	
              ASCE
      4, “Seismic Analysis of Safety-Related Nuclear Structures and Commentary,”
      1989

            	
              3.7

            
	
              ASCE
      7, “Minimum Design Loads for Buildings and Other Structures,”
      1998

            	
              3.7

            
	
              ASCE
      8, “Specification for the Design of Cold Formed Stainless Steel Structural
      Members,” 1990

            	
              6.2

            
	
              ASCE
      Paper No. 3269 “Wind Forces on Structures” Transactions of the American
      Society of Civil Engineers, Vol. 126, Part II (1961)

            	
              3

            
	
              ASHRAE
      – American Society of Heating, Refrigeration, and Air Conditioning
      Engineers

            	 
      
	
              ASHRAE
      33, “Methods of Testing for Rating Forced Circulation Air Cooling and Air
      Heating Coils,” 1978

            	
              9.4

            
	
              ASHRAE
      52.1 “Gravimetric and Dust Spot Procedures for Testing Air-Cleaning
      Devices Used in General Ventilation for Removing Particulate Matter,”
      1992

            	
              9.4

            
	
              ASHRAE
      62, “Ventilation for Acceptable Indoor Air Quality,” 1999

            	
              9.4

            
	
              ASHRAE
      62, “Ventilation for Acceptable Indoor Air Quality,” 1989

            	
              6.4

            
	
              ASHRAE
      126, “Method of Testing HVAC Air Ducts,” 2000

            	
              9.4

            
	
              ASME
      – American Society of Mechanical Engineers

            	 
      
	
              ASME
      OM Code, “Code for Operation and Maintenance of Nuclear Power Plants,”
      1995 Edition, 1996 Addenda

            	
              3.9

            
	
              ASME/ANSI
      AG-1, “Code on Nuclear Air and Gas Treatment,” 1997

            	
              1A,
      3.2, 3A, 9.4

            
	
              ASME
      B16.34, “Valves – Flanged and Buttwelding End,” 1996

            	
              5.4

            
	
              ASME
      B30.2, “Overhead & Gantry Cranes,” 1990

            	
              9.1

            
	
              ASME
      B31.1, “Code for Power Piping,” 1989 Edition, 1989 Addenda

            	
              5.2

            
	
              ASME
      Boiler and Pressure Vessel Code, Section II, “Metal Specifications”, 1989
      Edition, 1989Addenda, (Class 1, 2, 3 Piping and
Components)

            	
              5.2,
      5.4

            
	
              ASME
      Boiler and Pressure Vessel Code, Section III, Rules for Construction of
      Nuclear Power Plant Components, (The baseline used for the evaluations
      done to support this safety analysis report and the Design Certification
      is the 1998 Edition, 2000 Addenda, except as follows:  the 1989
      Edition, 1989 Addenda is used for Articles NB-3200, NB-3600, NC-3600, and
      ND-3600 in lieu of later editions and addenda.), (Class 1, 2, 3 Piping and
      Components)

            	
              3.9,
      5.2, 5.3, 5.4

            
	
              Code
      Case N-4-11, “Special Type 403 Modified Forgings or Bars, Section III,
      Division 1, Class 1 and Class CS”

            	
              5.2

            
	
              Code
      Case N-20-4, “SB-163 Nickel-Chromium-Iron Tubing (Alloys 600 and 690) and
      Nickel-Iron-Chromium Alloy 800 at a Specified Minimum Yield Strength
      of 40.0 ksi and Cold Worked Alloy 800 at Yield Strength of 47.0 ksi,
      Section III, Division 1, Class 1”

            	
              5.2

            
	
              Code Case N-60-5, “Material for Core Support
      Structures, Section III, Division 1”

            	
              5.2

            
	
              Code
      Case N-71-18, “ Additional Material for Subsection NF, Class 1, 2, 3 and
      MC Component Supports Fabricated by Welding, Section III Division
      1”

            	
              5.2

            
	
              Code
      Case N-122-2 “Stress Indices for Integral Structural Attachments Section
      III, Division 1, Class 1” 1994

            	
              5.2

            
	
              Code
      Case N-249-14, “Additional Materials for Subsection NF, Class 1, 2, 3, and
      MC Supports Fabricated Without Welding, Section III, Division
      1”

            	
              5.2

            
	
              Code
      Case N-284-1, “Metal Containment Shell Buckling Design Methods, Section
      III, Division 1 Class MC”

            	
              5.2

            
	
              Code
      Case N-318-5, “Procedure for Evaluation of the Design of Rectangular Cross
      Section Attachments on Class 2 or 3 Piping Section III,
      Division”

            	
              5.2

            
	
              Code
      Case N-391-2, “Procedure for Evaluation of the Design of Hollow Circular
      Cross Section Welded Attachments on Class 1 Piping Section III, Division
      1”

            	
              5.2

            
	
              Code
      Case N-319-3,  “Procedure for Evaluation of Stresses in Butt
      Welding Elbows in Class 1 Piping, Section III, Division 1”

            	
              5.2

            
	
              Code
      Case N-392-3, “Procedure for Valuation of the Design of Hollow Circular
      Cross Section Welded Attachments on Class 2 and 3 Piping Section III,
      Division 1”

            	
              5.2

            
	
              Code  Case-N-474-2,
      “Design Stress Intensities and Yield Strength Values for UNS06690 With a
      Minimum Yield Strength of 35 ksi, Class 1 Components, Section III,
      Division 1”

            	
              5.2

            
	
              ASME
      Boiler and Pressure Vessel Code, Section IV, “Non-destructive
      Examination,” 1998 Edition, 2000 Addenda, (Class 1, 2, 3 Piping and
      Components)

            	
              5.2

            
	
              ASME
      Boiler and Pressure Vessel Code, Section V, “Non-destructive Examination,”
      1998 Edition, 2000 Addenda, (Class 1, 2, 3 Piping and
      Components)

            	
              5.4

            
	
              ASME
      Boiler and Pressure Vessel Code, Section VIII, Division 1, “Pressure
      Vessels,” 1998 Edition, 2000 Addenda, (Class 1, 2, 3 Piping and
      Components)

            	
              5.2,
      9.3

            
	
              ASME
      Boiler and Pressure Vessel Code, Section IX, “Welding and Brazing
      Qualifications,” 1998 Edition, 2000 Addenda, (Class 1, 2, 3 Piping and
      Components)

            	
              5.2

            
	
              Code
      Case 2142-1, “F-Number Grouping for Ni-Cr-Fe, Classification UNS N06052
      Filler Metal, Section IX”

            	
              5.2

            
	
              Code
      Case 2143-1, “F-Number Grouping for Ni-Cr-Fe, Classification UNS W86152
      Welding Electrode, Section IX”

            	
              5.2

            
	
              ASME
      Code Section XI (1998 Edition) and mandatory
      appendices.  (Design provisions, in accordance with Section XI,
      Article IWA-1500, are incorporated in the design processes for
      Class 1 components.) , (Class 1, 2, 3 Piping and
      Components)

            	
              3.9,
      5.2, 5.4

            
	
              ASME
      Code Section XI (1996 Edition) Appendix G

            	
              5.3

            
	
              ASME
      N509 (R1996), “Nuclear Power Plant Air Cleaning Units and Components,”
      1989

            	
              1A,
      3A, 9.4

            
	
              ASME
      N510, “Testing of Nuclear Air Cleaning Systems,” 1989

            	
              1A,
      9.4

            
	
              ASME
      NOG-1, “Rules for Construction of Overhead and Gantry Cranes (Top Running
      Bridge, Multiple Girder),” ASME Code, Section IV, Pt. HWL,
      1998.

            	
              9.1

            
	
              ASME  NQA-1,
      “Quality Management System,” 1989 edition through NQA-1b-1991,
      Addenda

              (DCD
      identifies NQA-1 1b 1991 Addenda, however NRC has accepted NQA-1 through
      NQA-1c-1992, Addenda as acceptable via Reg Guide
      1.28.  NQA-1-1c-1992 is to be specified to be consistent with
      the ASME Section III Code and Addenda specified in the
    DCD.)

            	
              17.0

            
	
              ASME
      Performance Test Code 19.11, 1970

            	
              10.4

            
	
              ASTM
      – American Society of Testing and Materials

            	 
      
	
              ASTM
      A 580, “Specification for Stainless and Heat-resisting Steel Wire,”
      1990

            	
              4.2

            
	
              ASTM
      A 609, “Standard Specification for Longitudinal Beam Ultrasonic Inspection
      of Carbon and Low Alloy Steel Castings,” 1991

            	 
      
	
              ASTM
      A 615, “Deformed and Plain Billet Steel Bars for Concrete Reinforcement,”
      2001

            	
              3.8

            
	
              ASTM
      A 706, “Low Alloy Steel Deformed Bars for Concrete Reinforcement,”
      2001

            	
              3.8

            
	
              ASTM
      A 970, “Specification for Welded Headed Bars for Concrete Reinforcement,”
      1998

            	
              3.8

            
	
              ASTM
      C 33, “Specification for Concrete Aggregates,” 2002

            	
              3.8

            
	
              ASTM
      C 94, “Specifications for Ready-Mixed Concrete,” 2000

            	
              3.8

            
	
              ASTM
      C 131, “Resistance to Abrasion of Small Size Coarse Aggregate by Use of
      the Los Angeles Machine,” 2001

            	
              3.8

            
	
              ASTM
      C 150, “Specification for Portland Cement,” 2002

            	
              3.8

            
	
              ASTM
      C 260, “Air Entraining Admixtures for Concrete,” 2001

            	
              3.8

            
	
              ASTM
      C 311, “Sampling and Testing Fly Ash or Natural Pozzolans for Use as
      Mineral Admixture in Portland Cement Concrete,” 2002

            	
              3.8

            
	
              ASTM
      C 494, “Chemical Admixtures for Concrete,” 1999

            	
              3.8

            
	
              ASTM
      C 535, “Test Method for Resistance to Degradation of Large-Size Coarse
      Aggregate by Abrasion and Impact in the Los Angeles Machine,”
      2001

            	
              3.8

            
	
              ASTM
      C 618, “Fly Ash and Raw or Calcined Natural Pozzolans for Use in Portland
      Cement Concrete,” 2001

            	
              3.8

            
	
              ASTM
      D 512, “Chloride Ion in Industrial Water,” 1999

            	
              3.8

            
	
              ASTM
      D 1888, "Particulate and Dissolved Matter in Industrial
      Water."

            	
              3.8

            
	
              ASTM
      E 142, “Methods for Controlling Quality of Radiographic Testing,”
      1986

            	
              4.2

            
	
              ASTM
      E 165, “Practice for Liquid Penetrant Inspection Method,”
    1995

            	
              5.4

            
	
              ASTM
      E 185, “Standard Practice for Conducting Surveillance Tests for
      Light-Water Cooled Nuclear Power Reactor Vessels,” 1982

            	
              5.3

            
	
              ASTM
      E 741, “Standard Test Methods for Determining Air Change in a Single Zone
      by Means of a Tracer Gas Dilution,” 2000

            	
              6.4,
      9.4

            
	
              AWWA
      – American Water Works Association

            	 
      
	
              AWWA
      D100, “Welded Steel Tanks for Water Storage,” 1984

            	
              3.2

            
	
              AWS
      – American Welding Society

              AWS
      D1.1 Structural Welding Code – 2000 - Steel

              Covers
      the design, welding and examination of welded structural steel 1/8" and
      thicker. It allows for both pre-qualified and non prequalified welding
      procedures.

              AWS D
      1.4-98 Reinforcing Steel Welding
      Code,

            	
              3.8.3.2

            
	
              CMAA
      – Crane Manufacturers Association of America

            	 
      
	
              CMAA
      Specifications, “Specification for Electric Overhead Traveling Cranes,”
      1999

            	
              9.1

            
	
              FEMA
      – Federal Emergency Management Agency

            	 
      
	
              FEMA
      356, “Prestandard and Commentary for the Seismic Rehabilitation of
      Buildings,” 2000

            	
              3.7

            
	
              IEEE
      – Institute of Electrical and Electronics Engineers

            	 
      
	
              IEEE
      Standard 7-4.3.2, “IEEE Standard Criteria for Digital Computers in Safety
      Systems of Nuclear Power Generating Stations,” 1993

            	
              1A,
      7.1

            
	
              IEEE
      Standard 98, “IEEE Standard for the Preparation of Test Procedures for the
      Thermal Evaluation of Solid Electrical Insulating Materials,”
      1984

            	
              3D

            
	
              IEEE
      Standard 100, “IEEE Standard Dictionary of Electrical and Electronic
      Terms,” 1996

            	
              3D

            
	
              IEEE
      Standard 141, “IEEE Recommended Practice for Electric Power Distribution
      for Industrial Plants,” (IEEE Red Book), 1993

            	
              8.3

            
	
              IEEE
      Standard 242, “IEEE Recommended Practice for Protection and Coordination
      of Industrial and Commercial Power Systems” (IEEE Buff Book),
      1986

            	
              8.3

            
	
              IEEE
      Standard 279, “IEEE Standard Criteria for Protection Systems for Nuclear
      Power Generating Stations,” 1971

            	
              1A

            
	
              IEEE
      Standard 281, “IEEE Standard Service Conditions for Power System
      Communication Equipment,” 1984

            	
              9.5

            
	
              IEEE
      Standard 308, “IEEE Standard Criteria for Class 1E Power Systems for
      Nuclear Power Generating Stations,” 1991

            	
              1A,
      8.1, 8.3

            
	
              IEEE
      Standard 317, “IEEE Standard for Electric Penetrations Assemblies in
      Containment Structures for Nuclear Power Generating Stations,”
      1983

            	
              1.9,
      1A, 8.1, 8.3

            
	
              IEEE
      Standard 323, “IEEE Standard for Qualifying Class 1E Equipment for Nuclear
      Power Generating Stations,” 1974

            	
              1.9,
      1A, 3.2, 8.1

            
	
              IEEE
      Standard 338, “IEEE Standard Criteria for the Periodic Surveillance
      Testing of Nuclear Power Generating Stations Safety Systems,”
      1987

            	
              1.9,
      1A, 8.1

            
	
              IEEE
      Standard 344, “IEEE Recommended Practice for Seismic Qualification of
      Class 1E Equipment for Nuclear Power Generating Stations,”
      1987

            	
              3.2,
      3F, 8.1

            
	
              IEEE
      Standard 379, “IEEE Standard Application of the Single-Failure Criterion
      to Nuclear Power Generating Station Safety Systems,” 2000

            	
              1A,
      8.1

            
	
              IEEE
      Standard 381, “IEEE Standard Criteria for Type Test of Class 1E Modules
      used in Nuclear Power Generating Stations,” 1977

            	
              3D

            
	
              IEEE
      Standard 382, “IEEE Standard for Qualification of Actuators for
      Power-Operated Valve Assemblies with Safety-Related Functions for Nuclear
      Power Plants,” 1996

            	
              1A,
      8.1

            
	
              IEEE
      Standard 383, “IEEE Standard for Type Test of Class 1E Electric Cables,
      Field Splices, and Connections for Nuclear Power Generating Stations,”
      1974

            	
              8.1,
      9.5

            
	
              IEEE
      Standard 384, “IEEE Standard Criteria for Independence of Class 1E
      Equipment and Circuits,” 1981

            	
              1A,
      1.9, 8.1, 8.3

            
	
              IEEE
      Standard 420, “IEEE Standard for the Design and Qualification of Class 1E
      Control Boards, Panels, and Racks Used in Nuclear Power Generating
      Stations,” 1982

            	
              7.1

            
	
              IEEE
      Standard 422, “Guide for the Design and Installation of Cable Systems in
      Power Generating Stations,” 1986

            	
              8.3

            
	
              IEEE
      Standard 450, “IEEE Recommended Practice for Maintenance, Testing, and
      Replacement of Vented Lead-Acid Batteries for Stationary Applications,”
      1995

            	
              8.1,
      8.3

            
	
              IEEE
      Standard 484, “IEEE Recommended Practice for Installation Design and
      Installation of Vented Lead-Acid Batteries for Stationary Applications,”
      1996

            	
              1A,
      8.1

            
	
              IEEE
      Standard 485, “IEEE Recommended Practice for Sizing Lead-Acid Batteries
      for Stationary Applications,” 1997

            	
              8.3

            
	
              IEEE
      Standard 494, “IEEE Standard Method for Identification of Documents
      Related to Class 1E Equipment and Systems for Nuclear Power Generating
      Stations,” 1974

            	
              3D

            
	
              IEEE
      Standard 535, “IEEE Standard for Qualification of Class 1E Lead Storage
      Batteries for Nuclear Power Generating Stations,” 1986

            	
              1A

            
	
              IEEE
      Standard 572, “IEEE Standard for Qualification of Class 1E Connection
      Assemblies for Nuclear Power Generating Stations,” 1985

            	
              3D

            
	
              IEEE
      Standard 603, “IEEE Standard Criteria for Safety Systems for Nuclear Power
      Generating Stations,” 1991

            	
              1A,
      7.1

            
	
              IEEE
      Standard 627, “IEEE Standard for Design Qualification of Safety System
      Equipment Used in Nuclear Power Generating Stations,” 1980

            	
              7.1

            
	
              IEEE
      Standard 649, “IEEE Standard for Qualifying Class 1E Motor Control Centers
      for Nuclear Power Generating Stations,” 1991

            	
              3D

            
	
              IEEE
      Standard 650, “IEEE Standard for Qualification of Class 1E Static Battery
      Chargers and Inverters for Nuclear Power Generating Stations,”
      1990

            	
              3D

            
	
              IEEE
      Standard 665, “IEEE Guide for Generating Station Grounding,”
      1995

            	
              8.3

            
	
              IEEE
      Standard 741, “IEEE Standard Criteria for the Protection of Class 1E Power
      Systems and Equipment in Nuclear Power Generating Stations,”
      1997

            	
              1A,
      8.1, 8.3

            
	
              IEEE
      Standard 828, “IEEE Standard for Software Configuration Management Plans,”
      1990

            	
              7.1

            
	
              IEEE
      Standard 829, “IEEE Standard for Software Test Configuration,”
      1983

            	
              7.1

            
	
              IEEE
      Standard 830, “Recommended Practice for Software Requirements
      Specifications,” 1993

            	
              7.1

            
	
              IEEE
      Standard 946, “IEEE Recommended Practice for the Design of DC Auxiliary
      Power Systems for Generating Stations,” 1992

            	
              8.3

            
	
              IEEE
      Standard 1012, “IEEE Standard for Software Verification and Validation
      Plans,” 1986

            	
              7.1

            
	
              IEEE
      Std 1023-2004, “IEEE Recommended Practice for the Application of Human
      Factors Engineering to Systems, Equipment and Facilities of Nuclear Power
      Generating Stations and Other Nuclear Facilities.”

            	
              18.8

            
	
              IEEE
      Standard 1028, “IEEE Standard for Software Reviews and Audits,”
      1988

            	
              7.1

            
	
              IEEE
      Standard 1042, “IEEE Guide to Software Configuration Management,”
      1987

            	
              7.1

            
	
              IEEE
      Standard 1050, “IEEE Guide for Instrumentation and Control Equipment
      Grounding in Generating Stations,” 1996

            	
              8.3,
      7.1

            
	
              IEEE
      Standard 1074, “Standard for Developing Software Life Cycle Processes,”
      1995

            	
              7.1

            
	
              IEEE
      Standard 1202, “IEEE Standard for Flame Testing of Cables for Use in Cable
      Tray in Industrial and Commercial Occupancies,” 1991

            	
              8.1,
      1A, 9.5

            
	
              IEEE
      Std 1289-1998, “IEEE Guide for the Application of Human Factors
      Engineering in the Design of Computer-Based Monitoring and Control
      Displays for Nuclear Power Generating Stations.”

            	
              18.8

            
	
              IEEE
      Standard C37.98, “IEEE Standard for Seismic Testing of Relays,”
      1987

            	
              3D

            
	
              ISA
      – Instrumentation, Systems and Automation Society

            	 
      
	
              ISA
      S7.3, “Quality Standard for Instrument Air,” 1981

            	
              9.3

            
	
              MIL
      – Military Standards and Specifications

            	 
      
	
              MIL-HDBK-759C,
      “Human Engineering Design Guidelines,” 1995

            	
              6.4

            
	
              MIL-STD
      1472E, “Human Engineering,” 1996

            	
              6.4

            
	
              NEMA
      – National Electrical Manufacturers Association

            	 
      
	
              NEMA
      MG-1, “Motors and Generators,” Revision 1, 1998

            	
              3.2

            
	
              NEMA
      Standard Publication No. VE 1-1998, Metallic Cable Tray
      Systems

            	
              3F

            
	
              NFPA
      – National Fire Protection Association

            	 
      
	
              NFPA
      10, “Standard for Portable Fire Extinguishers,” 1998

            	
              9.5

            
	
              NFPA
      13, “Standard for the Installation of Sprinkler Systems,”
    1999

            	
              9.5

            
	
              NFPA
      14, “Standard for Installation of Standpipe, Private Hydrants, and Hose
      Systems,” 2000

            	
              9.5

            
	
              NFPA
      15, “Standard for Water Spray Fixed Systems for Fire Protection,”
      2001

            	
              9.5

            
	
              NFPA
      20, “Standard for the Installation of Stationary Pumps for Fire
      Protection,” 1999

            	
              9.5

            
	
              NFPA
      22, “Standard for Water Tanks for Private Fire Protection,”
      1998

            	
              9.5

            
	
              NFPA
      24, “Standard for Installation of Private Fire Service Mains and Fire
      Protection,” 1995

            	
              9.5

            
	
              NFPA
      30, “Flammable and Combustible Liquids Code,” 2000

            	
              9.5

            
	
              NFPA
      50A, “Standard for Gaseous Hydrogen Systems at Consumer Sites,”
      1999

            	
              9.5

            
	
              NFPA
      50B, “Standard for Liquefied Hydrogen Systems at Consumer Sites,”
      1999

            	
              9.5

            
	
              NFPA
      70, “National Electrical Code (NEC),” 1999

            	
              8.3,
      9.5

            
	
              NFPA
      72, “National Fire Alarm Code,” 1999

            	
              9.5

            
	
              NFPA
      90A, “Installation of Air-Conditioning and Ventilation Systems,”
      1999

            	
              9.4

            
	
              NFPA
      92A, “Recommended Practice for Smoke Control Systems,”
2000

            	
              9.4,
      9A

            
	
              NFPA
      780, “Standard for the Installation of Lighting Protection Systems,”
      2000

            	
              8.3,
      9.5

            
	
              NFPA
      804, “Standard for Fire Protection for Advanced Light Water Reactor
      Electric Generating Plants,” 2001

            	
              9.5

            
	
              SMACNA
      – Sheet Metal and Air Conditioning Contractors National
      Association

            	 
      
	
              SMACNA,
      “HVAC Duct Construction Standards - Metal and Flexible,” Second Edition
      1995

            	
              3A,
      9.4

            
	
              SMACNA,
      “HVAC Systems – Testing, Adjusting, and Balancing,” 1993

            	
              9.4

            
	
              SMACNA,
      “Rectangular Industrial Duct Construction Standards,” 1980

            	
              9.4

            
	
              SMACNA,
      “HVAC Duct Construction Standards - Metal and Flexible,”
    1985

            	
              3.2

            
	
              SMACNA,
      “Round Industrial Duct Construction Standard,” 1999

            	
              9.4

            
	
              SMACNA,
      “HVAC Duct Leakage Test Manual,” 1985

            	
              9.4

            
	
              UBC
      – Uniform Building Code

            	 
      
	
              UBC,
      “Uniform Building Code,” 1997

            	
              3.2

            
	
              UL
      – Underwriters Laboratories, Inc.

            	 
      
	
              UL
      555, “Safety Fire Dampers,” 1999

            	
              9.4

            
	
              UL
      555S, “Leakage Rated Dampers for Use in Smoke Control Systems,”
      1999

            	
              9.4

            
	
              UL
      586, “High-Efficiency, Particulate, Air-Filter Units,”
1996

            	
              9.4

            
	
              UL
      900, “Test Performance of Air-Filter Unit,” 1994

            	
              9.4

            
	
              UL
      1995, “Heating and Cooling Equipment,” 1995

            	
              9.4

            
	
              UL
      1996, “Electric Duct Heating,” 1996

            	
              9.4

            

    

     

    
      
        
        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

           

          Table
2 

          AP1000
Codes and Standards (not found in Licensing Basis)

           

          Title
                                                                                                    
Reference

        

      

    

    
      	
              ASME
      NQA-2 Quality Assurance Requirements for Nuclear Power Plants 1989
      Edition, through NQA-1c-1992, Addenda

            	
              None

            
	
              American
      Society for Nondestructive Testing SNT-TC-1A, “Recommended Practice for
      Non-Destructive Testing 1992 Edition.

            	
              None

            
	
              CP-189  Qualification
      and Certification of Nondestructive Testing Personnel  1995
      Edition

            	
              None

            

    

     

     

    

    
      
        
           

        

        
           

          
          

        

        
           

        

      

    

    

    EXHIBIT
O-1

    Proprietary
Data Agreement

     

    [**This
entire five-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    

    
      
        
           

        

        
           

          
          

        

        
           

        

      

    

    

    EXHIBIT
O-2

    List
of Intellectual Property Subject to Third-Party License Terms

     

    [**This
entire one-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

     

    

      
        
           

        

        
           

          
          

        

        
           

        

      

    
      EXHIBIT
P-1

      AP1000—Major
Subcontractors / Suppliers

       

      [**This
entire two-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

      
        
           

        

        
           

          
          

        

        
           

        

      

      EXHIBIT
P-2

      Subcontractors
For

      Site
Construction And Related Field Services

       

      [**This
entire four-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission

    

    
      
        
           

        

        
           

          
          

        

        
           

          
            Execution
Version                                                        
Confidential Trade Secret Information—Subject to Restricted
Procedures

          

        

      

    

    

     

    EXHIBIT
Q

    Equipment
With Owner-Designated Witness And Hold Points

     

          

     

    
      	
              Potential
      Components to be Supplied

            	
              Supplier

            
	
              Steam
      Generators

            	
              Doosan
      Heavy Industries & Construction Co., Ltd.

            
	
              Reactor
      Vessel

            	
              Doosan
      Heavy Industries & Construction Co., Ltd.

            
	
              Reactor
      Vessel Head

            	
              Doosan
      Heavy Industries & Construction Co., Ltd.

            
	
              Main
      Turbine and Generator

            	
              Toshiba

            
	
              Pressurizer

            	
              Ansaldo
      Camozzi

            
	
              Reactor
      Coolant Pumps

            	
              Curtiss-Wright
      Electro-Mechanical Division

            
	
              Control
      Rod Drive Mechanisms

            	
              Curtiss-Wright
      Electro-Mechanical Division

            
	
              Reactor
      Coolant Piping

            	
              Tioga
      Pipe Supply

            
	
              Core
      Makeup Tanks

            	
              IHI
      Corporation

            

    

     

     

    
      
         

      

      
         

        
        

      

      
         

        
          Execution
Version Confidential Trade Secret Information—Subject to Restricted
Procedures

           

           

        

      

    

    EXHIBIT
R

    Description
Of Site

     

     

     

    The Units
will be located on the property owned by SCE&G south of the existing VC
Summer Unit 1. The Site is located in Jenkinsville, South Carolina.

     

    The Site
Boundary and Site plan drawings are provided in Figures attached.

     

    V.C.
Summer Unit 2 and 3 Site Boundary

     

     

    
      
        
           

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                     
   Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

    
      

    

    
 

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

     

     

    

    
      
         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

     

    EXHIBIT
S

    EEO
and Small Business Regulations

     

    To the
extent required by applicable Laws, all government regulations concerning equal
employment, affirmative action and the utilization of small, small disadvantaged
and women-owned businesses are incorporated into this Agreement by reference,
including but not limited to, the following federal regulations, executive
orders, and the statutory authority for these regulations as referenced in the
regulations:

     

    
      	
               
      

            	
              If
      this Agreement (together with other contracts with Contractor) is in the
      amount of $10,000.00 or more and not otherwise
  exempt:

            

    

     

    
      	
              1.  

            	
              41
      C.F.R. § 60-1.4(a), Equal Opportunity Clause, 48 C.F.R. § 52.222-26; 48
      C.F.R. § 52.222-21, Prohibition of Segregated
  Facilities.

            

    

    
      	
              2.  

            	
              41
      C.F.R. § 60-741.4, Section 503 of the Rehabilitation Act of 1973 and 41
      C.F.R. § 60-741.5(a), Equal Opportunity for Workers with Disabilities; 48
      C.F.R. § 52.222-36.

            

    

     

    If
this Agreement (together with other contracts with Contractor) is in the amount
of $25,000 or more and not otherwise exempt:

     

    
      	
              1.  

            	
              41
      C.F.R. § 60-250.5(a), Equal Opportunity for Special Disabled Veterans,
      Veterans of the Vietnam Era, Recently Separated Veterans, and Other
      Protected Veterans; 48 C.F.R. §
52.222-35.

            

    

     

    If
Contractor has 50 or more employees and if this Agreement is an amount of
$50,000 or more and is not otherwise exempt:

     

    
      	
              1.

            	
              48
      C.F.R. § 22.804-1, Affirmative Action Programs; 48 C.F.R. § 52.222-25,
      Affirmative Action Compliance.

            

    

     

    If
this Agreement is in an amount that may exceed $550,000.00 and is not otherwise
exempt:

     

    
      	
              1.  

            	
              48
      C.F.R. § 52.219-8, Utilization of Small Business
  Concerns.

            

    

    
      	
              2.  

            	
              48
      C.F.R. § 52.219-9, Small Business and Small Disadvantaged and Women-Owned
      Small Business Subcontracting Plan
Clause.

            

    

    
      	
              3.  

            	
              Contractor
      shall provide Owner with an aggressive Commercial Plan that meets both the
      spirit and intent of Title 48 of the C.F.R., while saving Owner some of
      the administrative costs associated with the full implementation of a
      Small Business Subcontracting Plan per 48 C.F.R. §
    52.219.9.

            

    

     

    
      	
               
      

            	
              To the extent
      required by law, executive order or
  regulation:

            

    

     

    
      	
              1.

            	
              29
      C.F.R. Part 1625, Executive Order 11141 (Discrimination on the Basis of
      Age), Public Law 90-202 (Age Discrimination in Employment Act of 1967) and
      the Age Discrimination in Employment
Act.

            

    

     

    Contractor
and its Subcontractors hereunder by virtue of any or all of the above-referenced
statutory, regulatory, or executive order requirement, or other requirements,
may be required to comply with certain record keeping, reporting or affirmative
action requirements, and those requirements are incorporated herein by
reference.  It shall be the obligation of Contractor and its
Subcontractors to make themselves aware of and to understand the legislative,
executive, and regulatory requirements that apply to their performance of
obligations under this Agreement.  Failure to do so shall not excuse
their application to this Agreement.

     

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

    EXHIBIT
T

    [Not
Used]

    
      
         

      

      
         

        
        

      

      
         

      

    

    EXHIBIT
U

    Owner
Controlled Insurance Program (OCIP) Description and Terms

     

    [**This
entire nine-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.]

    
      
         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                        
Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

     

     

     

    EXHIBIT
V

    Limited
Agency Agreement

     

    THIS
LIMITED AGENCY AGREEMENT (“Agreement”), dated as of __________, is entered into
by and between SOUTH CAROLINA PUBLIC SERVICE AUTHORITY (“Principal”), a public
power system owned by the State of South Carolina, and SOUTH CAROLINA ELECTRIC
& GAS COMPANY (“Agent”), a corporation duly organized under the laws of the
State of South Carolina, (Principal and Agent may be referred to individually as
a “Party” and collectively as the “Parties”).

     

    WHEREAS,
Principal and Agent wish to collaborate jointly in the financing, design,
construction, operation, and decommissioning of a new advanced design light
water nuclear-powered electric generating facility (the
“Project”);

     

    WHEREAS, in
connection with the Project, the Parties intend to enter into a Permanent Design
and Construction Agreement and a Permanent Operating and Decommissioning
Agreement that shall set forth the terms and conditions that shall govern the
Parties’ participation in the Project; and

     

    WHEREAS,
until such time as the Permanent Design and Construction Agreement and Permanent
Operating and Decommissioning Agreement are negotiated, executed and delivered
by the Parties, the rights and obligations of the Parties to each other in
connection with the Project shall be governed by that certain Bridge Agreement
between Principal and Agent, dated October 30, 2006, and as further amended from
time to time (the “Bridge Agreement”);

     

    WHEREAS,
Sections 6.1 and 8.3 of the Bridge Agreement contemplate that the Parties may
enter into one or more limited agency agreements in connection with certain
Project-related third party agreements, including but not limited to the
Engineering, Procurement and Construction Agreement (the “EPC Contract”) for up
to two AP1000 nuclear power plant with Westinghouse Electric Company LLC and
Stone & Webster, Inc. (collectively, “Westinghouse”), attached hereto as
Exhibit A; and

     

    WHEREAS,
Principal and Agent desire to enter into such a limited agency agreement and
Principal wishes to appoint Agent to act as agent on Principal’s behalf in
connection with the negotiation, execution and performance of the EPC Contract,
subject to certain limitations set forth herein, and Agent is willing to accept
such limited agency appointment;

     

    NOW,
THEREFORE, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, the parties hereto agree as follows:

     

    1.           Limited
Agency Appointment.  Pursuant to the terms of this Agreement
and subject to the limitations set forth in Paragraph 2 of this Agreement,
Principal hereby appoints and grants a limited agency authorization to Agent,
and Agent hereby accepts such limited agency appointment and agrees to act on
behalf of the Principal, with regard to the negotiation, execution and
performance of the EPC Contract.

     

    2.             Limitations
on Agency Appointment.  Agent’s authorization to act on behalf
of Principal with respect to the EPC Contract shall be limited to the
negotiation, execution and performance of the obligations of the Owner (as such
term is defined in the EPC Contract) and enforcement of the rights of such Owner
under the EPC Contract; provided,
however,
that Agent shall not, without the prior written consent of Principal, which
consent may be withheld in Principal’s sole discretion, do or permit to be done
any of the following:

     

     

    
      	 
      	
              Agency
      Limitation

            	
              EPC
      Contract Section Reference

            
	
              (a)

            	
              Agree
      upon a definitive contract price

               

            	
              N/A

            
	
              (b)

            	
              Execute
      the EPC Contract

               

            	
              N/A

            
	
              (c)

            	
              Issue
      a Full Notice to Proceed

               

            	
              3.2(b)

            
	
              (d)

            	
              Terminate
      Second Unit

               

            	
              3.3(b)

            
	
              (e)

            	
              With
      respect to any Major Subcontract under Section 3.7, Agent shall not (i)
      participate in any claim, action or proceeding; (ii) cure any default;
      (iii) consent to termination, assignment or modification; or (iv) assume
      or enter into any Major Subcontract in the event of Contractor’s
      bankruptcy or insolvency

               

            	
              3.7

            
	
              (f)

               

            	
              Substantial
      Completion

            	
              8.2

            
	
              (g)

               

            	
              Approve
      payment of Final Payment

            	
              8.3

            
	
              (h)

            	
              Approve
      substitute form of security or lower bond amount for Stone & Webster
      and/or Westinghouse

               

            	
              8.6(b)
      and 8.6(c)

            
	
              (i)

            	
              Agree
      to any Change Order that increases the overall costs incurred under the
      EPC Contract by
      $1M or more, or along with all prior Change Orders issued under the EPC
      extends the Project Schedule for 3 months or more beyond the Substantial
      Completion Date.

               

            	
              9.2,
      9.4

            
	
              (j)

            	
              Suspend
      the EPC Contract for Owner’s Convenience

               

            	
              22.1

            
	
              (k)

            	
              Terminate
      the EPC Contract for Cause

               

            	
              22.2

            
	
              (l)

            	
              Elect
      to take over the Project upon Owner’s Termination for Cause

               

            	
              22.2(c)

            
	
              (m)

            	
              Terminate
      the EPC Contract for Owner’s Convenience

               

            	
              22.3

            
	
              (n)

            	
              Terminate
      for failure to obtain regulatory approvals

               

            	
              22.4

            
	
              (o)

            	
              File
      a Claim, initiate the dispute resolution process, or initiate or defend a
      lawsuit involving a third party in connection with the EPC
      Contract

               

            	
              27

            
	
              (p)

            	
              Consent
      to entry of any judgment or award in a disputed matter in connection with
      the EPC Contract or enter into any settlement or compromise of a dispute
      in connection with the EPC Contract

               

            	
              N/A

            
	
              (q)

            	
              Consent
      to an assignment of the EPC Contract

               

            	
              29

            
	
              (r)

            	
              Materially
      amend, modify or supplement the EPC Contract

               

            	
              31

            

    

     

    3.           Term and
Termination.

    (a)           This
Agreement shall remain in full force and effect beginning on the first date
specified above and continuing thereafter until February 1, 2019, unless renewed
by the Parties in writing on a year-to-year basis no less than thirty (30) days
prior to the expiration of the initial term or any subsequent renewal term, or
upon the occurrence of one of the following: (i) the Project begins commercial
operations; (ii) the Principal or Agent terminate their participation in the
Project, with or without cause; provided,
however,
that each Party must provide to the other Party written notice at least sixty
(60) days prior to any such abandonment of the Project and, in the event that
the Project is abandoned by one Party but not the other, the abandoning Party
shall use commercially reasonable efforts to facilitate the transfer of its
obligations hereunder to the other Party or to any other entity designated or
appointed by the other Party to assume the abandoning Party’s obligations
hereunder; or (iii) by written mutual agreement of the
Parties.

     

    (b)           The
rights and obligations of the Parties for indemnification for acts or omissions
occurring prior to the termination shall survive any termination of this
Agreement.

     

    (c)           Agent’s
obligations under any third party agreements entered into prior to the
termination of this Agreement would survive such termination and remain binding
on Agent.

     

    
      
        
          
            	 
      	
                  	 
      

          

           

        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

    4.           Representations
and Warranties.  Each Party represents and warrants to the
other Party that, as of the date first stated above:

     

    (a)           It
is duly organized, validly existing and in good standing under the applicable
laws of the jurisdiction of its organization and is qualified to do business in
all jurisdictions necessary to perform this Agreement;

     

    (b)           It
has the power and authority to execute and deliver this Agreement and to perform
its obligations under this Agreement and has taken all necessary corporate
and/or other actions to authorize such execution, delivery and
performance;

     

    (c)           Its
execution and delivery and performance of its obligations under this Agreement
do not violate or conflict with: (i) any laws applicable to it; (ii) any
provision of its charter or by-laws or comparable constituent documents
Agreement; (iii) any order or judgment of any court of governmental authority
applicable to it or any of its assets; or (iv) any contractual restriction
binding on or affecting it or any of its assets;

     

    (d)           This
Agreement has been duly executed and delivered by the Party and constitutes its
legal, valid, and binding obligation, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, insolvency,
moratorium or similar laws affecting creditors’ rights generally and subject, as
to enforceability, to equitable principles of general application (regardless of
whether enforcement is sought in a proceeding in equity or at law);
and

     

    (e)           Except
as otherwise permitted herein, it has neither initiated nor received written
notice of any pending action, proceeding, or investigation, nor to its knowledge
is any such action, proceeding, or investigation threatened (or any basis
therefore known to it), which questions the validity of this Agreement, or which
would materially or adversely affect its rights or obligations under this
Agreement.

     

    5.           Expenses
and Audit Rights.  Expenses of the Parties and audits rights in
connection with this Agreement (including without limitation, funding required
under the EPC Contract) shall be handled in accordance with Article V of the
Bridge Agreement.

     

    6.           Access to
Information; Reporting Obligations.

    (a)           No
less frequently than monthly (or more frequently as circumstances reasonably
warrant), Agent, to the best of its knowledge, shall inform Principal of the
status of the Project, including but not limited to any activities or decisions
that the Agent has made or expects to make with regard to the EPC
Contract.  Further, as provided in Section 4.2(a) of the Bridge
Agreement, Agent and Principal shall hold periodic meetings with (1) the
Executive Steering Committee at the request of either member of the Executive
Steering Committee and (2) other Project employees and contractors as either
Party deems appropriate or at the request of either member of the Executive
Steering Committee.

     

    (b)           Agent
will make available to Principal all documentation related to the Project, which
can be done by providing original documents, providing copies of documents or
allowing Principal’s representatives to review the relevant files and business
records as kept in the ordinary course of business at the Agent’s offices or
with another representative of the Agent.  Agent shall also make its
personnel available to Principal for consultation.

     

    (c)           Principal
shall provide Agent access to information in its possession reasonably necessary
for Agent to perform its obligations under this Agreement; provided,
however,
that Principal may restrict access to information to the extent that it is
subject to third party confidentiality restrictions and Principal has been
unsuccessful in having such restrictions waived.

     

    7.           Indemnity.

    (a)           Agent
agrees to indemnify, defend and hold harmless the Principal, its affiliates and
any of their members, officers, directors and employees, agents and
representatives against and in respect of all claims, liabilities, obligations,
judgments, liens, injunctions, charges, orders, decrees, rulings, damages, dues,
assessments, taxes, losses, fines, penalties, damages, expenses, fees, costs and
amounts paid in settlement (including reasonable attorneys’ fees, expert witness
fees and disbursements in connection with investigating, defending or settling
any action or threatened action), arising out of any claim, complaint, demand,
cause of action, action, suit or other proceeding asserted or initiated or
otherwise existing in respect of any matter (collectively, the “Losses”) arising
out of Agent’s activities undertaken on behalf of Principal under this
Agreement; provided
that Principal shall be liable, and shall not be indemnified by Agent, for any
Losses directly resulting from the untruth, inaccuracy or incompleteness of any
representation or warranty made expressly by Principal in this Agreement, and
Principal shall indemnify Agent, its affiliates and any of their officers,
directors and employees, agents and representatives, for Losses that result from
any such breach by Principal.

     

    (b)           Principal
agrees to indemnify, defend and hold harmless the Agent, its affiliates and any
of their members, officers, directors and employees, agents and representatives
against and in respect of all claims, liabilities, obligations, judgments,
liens, injunctions, charges, orders, decrees, rulings, damages, dues,
assessments, taxes, losses, fines, penalties, damages, expenses, fees, costs and
amounts paid in settlement (including reasonable attorneys’ fees, expert witness
fees and disbursements in connection with investigating, defending or settling
any action or threatened action), arising out of any claim, complaint, demand,
cause of action, action, suit or other proceeding asserted or initiated or
otherwise existing in respect of any matter (collectively, the “Losses”) arising
out of Principal’s activities under this Agreement; provided
that Agent shall be liable, and shall not be indemnified by Principal, for any
Losses directly resulting from the untruth, inaccuracy or incompleteness of any
representation or warranty made expressly by Agent in this Agreement, and Agent
shall indemnify Principal, its affiliates and any of their officers, directors
and employees, agents and representatives, for Losses that result from any such
breach by Agent.

     

    8.           Specific
Performance.  Each of the Parties acknowledges and agrees that
the other Party would be damaged irreparably in the event any of the provisions
of this Agreement are not performed in accordance with their specific terms or
otherwise are breached.  Accordingly, each of the Parties agrees that
the other Party shall be entitled to an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the
Parties and the matter in addition to any other remedy to which it may be
entitled, at law or in equity.

     

    9.           Waivers.  No
waiver by either Principal or Agent of the performance of any obligation under
this Agreement, or with respect to any default or any other matter arising in
connection with this Agreement, shall be deemed a waiver with respect to any
subsequent performance, default or matter, whether of a like or different
character.

     

    10.           Notices.  Any
notice, demand or request relative to this Agreement to be given to any of the
Principal, or the Agent shall be in writing, and shall be delivered by U. S.
mail, facsimile or hand delivery to the authorized representative of the
Principal or Agent at the address specified below, or a successor designated in
any notice given pursuant to this paragraph.

     

    If to the
Agent:

     

    South
Carolina Electric & Gas Company

    Attention: President

    Mail Code
190

    Columbia,
SC 29218

    Facsimile: (803) 217-9336

     

    If to the
Principal:

    South
Carolina Public Service Authority

    Attention:
President and Chief Executive Officer

    One
Riverwood Drive

    Moncks
Corner, SC 29461

    Facsimile:
(843) 761-7037

     

    11.           Miscellaneous.

    (a)           Entire
Agreement.  This Agreement embodies the entire understanding
and agreement among the Parties pertaining to the subject matter hereof and
supersedes any and all prior negotiations, understandings or agreements with
respect thereto.

     

    (b)           Counterparts.  This
Agreement may be executed in any number of counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute
one and the same document.

     

    (c)           Assignment.  No
party to this Agreement shall assign any of its rights or obligations under this
Agreement without first receiving the written consent of all other parties,
which consent shall not be unreasonably withheld.

    (d)           No Third
Party Beneficiaries.  This Agreement is binding upon and
intended solely for the benefit of the parties hereto and their respective
successors and permitted assigns and, unless expressly stated herein, is not
intended to and shall not confer any rights or benefits to any third party
(other than successors and permitted assigns) not a signatory
hereto.

     

    (e)           Amendment.  Neither
this Agreement nor any terms hereof may be changed, waived, discharged or
terminated except by an instrument in writing signed by each of the parties
hereto.

     

    (f)           Headings.  The
headings in this Agreement are for convenience of reference only and shall not
be defined or limit the terms hereof.

     

    (g)           Governing
Law.  This Agreement and all questions with respect to the
rights and obligations of the Parties and the construction, enforcement and
interpretation hereof shall be governed by the laws of the State of South
Carolina, without reference to the choice of law principles that require
application of the laws of a different jurisdiction.

     

    (h)           Jurisdiction.  Any
dispute arising from this Agreement shall be subject to the jurisdiction of the
courts in South Carolina.

     

    (i)           Severability.  Any
provision of this Agreement this prohibited or unenforceable in any
jurisdiction, as to that jurisdiction, shall be ineffective to the extent of
that prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of that provision
in any other jurisdiction.

     

    (j)           Good Faith
Covenant.  The Parties agree that their actions and dealings
with each other shall be subject to an express covenant of good faith and fair
dealing and that each Party shall act in a commercially reasonable manner in
fulfilling its obligations under this Agreement.

     

    (k)           Confidentiality.  The
Parties acknowledge and agree that this Agreement is subject to the
Confidentiality Agreement between the Parties dated as of June 8,
2006.

     

    
      
        
        

         

      

      
         

        
        

      

      
         

        
          Execution
Version                                                         
Confidential Trade Secret Information—Subject to Restricted
Procedures

        

      

    

    IN
WITNESS WHEREOF, the Parties hereto, each acting through its respective duly
authorized representative, have executed this Agreement, made as of the date
first above written.

     

     

    SOUTH
CAROLINA PUBLIC SERVICE AUTHORITY

    _____________________________________________

    By:

    Title:

     

     

     

    SOUTH
CAROLINA ELECTRIC & GAS COMPANY

    _____________________________________________

    By:

    Title:

     

    
      
        
        

      

      
        
        

        
        

      

      
        
        

      

    

     

    
      EXHIBIT
W

      [**Material
omitted pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission] Special Terms

       

      [**This
entire one-page exhibit has been omitted pursuant to a request for confidential
treatment and filed separately with the Securities and Exchange
Commission.

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