Document:

General Conditions of the Contract

			
	SCS Contract No. SCS-28699	 	Exhibit 10.46(b)

  

 GENERAL CONDITIONS OF THE CONTRACT 
 FOR THE PURCHASE OF CHEMICAL AND/OR GAS PRODUCTS 
 TABLE OF CONTENTS 

 

					
	   1.0
	  	DEFINITIONS	  	1
	   2.0
	  	SCOPE	  	2
	   3.0
	  	EXECUTION AND INTERPRETATION	  	2
	   4.0
	  	PROPRIETARY INFORMATION	  	3
	   5.0
	  	WARRANTY	  	3
	   6.0
	  	PROPRIETARY INTEREST INDEMNIFICATION	  	3
	   7.0
	  	FORCE MAJEURE	  	4
	   8.0
	  	ALLOCATION OF RESPONSIBILITY	  	5
	   9.0
	  	INSURANCE	  	5
	 10.0
	  	INDEMNITY	  	6
	 11.0
	  	TAXES	  	9
	 12.0
	  	RESPONSIBILITY FOR FOREIGN MANUFACTURE	  	9
	 13.0
	  	RATE OF EXCHANGE	  	9
	 14.0
	  	LANGUAGE AND MEASUREMENT SYSTEM	  	9
	 15.0
	  	SUBCONTRACTS	  	9
	 16.0
	  	ASSIGNMENT OF CONTRACT	  	9
	 17.0
	  	COMPLIANCE WITH LAWS AND REGULATIONS	  	10
	 18.0
	  	COMPLIANCE AND ETHICS.	  	10
	 19.0
	  	GENERAL SERVICES ADMINISTRATION	  	11
	 20.0
	  	GOVERNMENTAL HEARINGS	  	11
	 21.0
	  	CANCELLATION BY THE PURCHASER FOR BREACH	  	12
	 22.0
	  	SUPPLIER LIMITATION OF LIABILITY	  	12
	 23.0
	  	SUPPLIER’S RIGHTS UPON BREACH BY COMPANY	  	12
	 24.0
	  	DELIVERY	  	12
	 25.0
	  	INVOICING AND PAYMENT	  	12
	 26.0
	  	AUDIT	  	13
	 27.0
	  	TITLE	  	13
	 28.0
	  	INDEPENDENT CONTRACTOR	  	13
	 29.0
	  	SURVIVAL OF REPRESENTATIONS	  	13
	 30.0
	  	SUPPLIER REPRESENTATIVE	  	13
	 31.0
	  	POLICIES AND PROCEDURES	  	14
	 32.0
	  	TIME OF THE ESSENCE	  	14
	 33.0
	  	NOTICES	  	14
	 34.0
	  	MISCELLANEOUS	  	14

  

 i 

 SCS Contract No. SCS-28699 
  

 GENERAL CONDITIONS THE CONTRACT 
 FOR THE PURCHASE OF CHEMICAL AND/OR GAS PRODUCTS 
  

	1.0	DEFINITIONS 

 1.1 The term “Affiliate” as used herein
shall mean any present and future corporation, partnership, association, joint stock company, joint venture, limited liability company, limited liability partnership, or trust directly or indirectly controlling, controlled by or under common control
with SCS. Control as used herein shall mean ownership. The Southern Company is the Parent Company of Southern Company Services, Inc. (“SCS”) and some of SCS’s present Affiliates are Alabama Power Company, Georgia Power Company, Gulf
Power Company, Mississippi Power Company, Savannah Electric Power Company, and Southern Power Company. 
 1.2 The term “Bid” is hereby
defined as meaning any and all pricing, specifications, and other documents transmitted by the Supplier to Purchaser in response to the written Request for Quote from Purchaser. 
 1.3 The term “Contract Price” means collectively the agreed upon price or prices of the Product. The term “Supplier” is defined as meaning the entity responsible for furnishing the chemical
and/or gas Product(s) specified in the Contract. 
 1.4 The term “Contract Time” is defined as the period of time, including authorized
adjustments, if any, allotted for furnishing and delivering the Product. 
 1.5 The “Contract” shall consist of: the Master Agreement
(“Master Agreement”); a Purchase Order issued by Purchaser in accordance with the terms of the Master Agreement; these General Conditions of the Contract for the Purchase of Chemical and/or Gas Products; any Special Conditions; Technical
Specifications; The Bid as may be revised and finally accepted in writing; any Modification, and; such other documents as the parties may agree to in writing. 
 1.6 The “Master Agreement” is a document which, upon execution by SCS and Supplier, establishes the terms and conditions of the Contract under which Supplier shall furnish and Purchaser shall purchase the Products.

 1.7 The term “Modification” is hereby defined as meaning a written (i) amendment to the Contract signed by the authorized
representatives of the parties, (ii) addendum to the Contract signed by the authorized representatives of the parties; or (iii) change in the Contract evidenced by a change order, memorandum of change or other document effecting such
change. Supplier’s execution or acceptance of a Modification, or performance thereunder shall constitute a change in or to the Contract. 
  

	1.8	

 The “Persons Indemnified” are the
Purchaser, the Affiliates, the Southern Company and the directors, officers, representatives, agents and employees of each of them. In addition, for all work to be performed under the Contract at Purchaser’s generating facility known as Plant
Wansley, the “Persons Indemnified” shall include the co-owners of Plant Wansley, and for all work to be performed under the Contract at Purchaser’s generating facility known as Plant Scherer, the “Persons Indemnified” shall
include the co-owners of Plant Scherer, and the directors, officers, representatives, agents and employees of each of them. The co-owners of Plant Wansley are Oglethorpe Power Corporation (“OPC”), Municipal Electric Authority of Georgia
(“MEAG”), and City of Dalton, Georgia (“Dalton”). The co-owners of Plant Scherer are OPC, MEAG, Dalton, Jacksonville Electric Authority (“JEA”) and Florida Power and Light (“FPL”) 
  

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 1.9 The term “Product” means collectively, any and all chemical and/or gas products to be furnished by
Supplier under the Contract. 
 1.10 The term “Purchaser” is defined as meaning the company named in the applicable Purchase Order, which
may be any of the present and future affiliates (collectively the “Affiliates” and individually an “Affiliate”) of The Southern Company (“Parent Company”); provided, however, that the Purchaser shall be solely
responsible for its own contractual obligations and liabilities, and no provision of the Contract shall be construed as making any Affiliate or the Parent Company liable for any obligations or other liabilities of the Purchaser. SCS will execute the
Master Agreement and may otherwise act as Purchaser’s agent for soliciting bids and for certain administrative matters under the Contract. 
 1.11 The
“Purchase Order” is a document of purchase of the Product that is issued by Purchaser pursuant to the Contract. The Purchase Order constitutes Purchaser’s specific authorization of Supplier’s furnishing of such Product.

 1.12 The term “Request for Quote” is defined as meaning any and all instructions, Master Agreement, General Conditions of the Contract,
Special Conditions, if any, Technical Specifications, and other documents submitted by Purchaser to Supplier in a request for Supplier to submit a Bid to furnish the Product. 
 1.13 The term “Supplier” is defined as meaning the entity responsible for furnishing the chemical and/or gas Product(s) specified in the Contract. 
 1.14 The term “Technical Specifications” is that portion of the Contract consisting of Purchaser’s written requirements for the Product to be
provided by Supplier. 
  

	2.0	SCOPE 

 It is the object and intent of these General Conditions of the
Contract along with the other Contract Documents to establish the technical and commercial terms and conditions of the Contract under which Supplier shall provide the material, labor, supervision, and equipment necessary to sell and supply the
Product to Purchaser and under which Purchaser shall purchase the Product. 
  

	3.0	EXECUTION AND INTERPRETATION 

 3.1 The Supplier shall enter into the
Contract with the Purchaser for the furnishing of the Product. By entering into the Contract, the Supplier represents that it: 
 3.1.1 has read and studied
the Contract Documents and understands same; 
 3.1.2 has familiarized itself with the terms and conditions under which the Contract is to be performed;

 3.1.3 has correlated its observations with the requirements of the Contract Documents; and, 
 3.1.4 is fully able to perform the Contract. 
 3.2 The Contract Documents are complementary, and any portion or part thereof
shall be as binding as if called for in all Contract Documents. Words that have a well-known technical or trade meaning are used throughout the Contract Documents in accordance with such recognized or well-known meaning unless specifically defined
otherwise. 
 3.3 If there is any conflict in the Contract Documents, the priority shall be as follows in descending order: any Modifications, the Purchase
Order exclusive of any preprinted terms thereon, the Master Agreement, any Special Conditions, these General Conditions, the Technical Specifications, and the Supplier’s Bid. Any preprinted terms and conditions on Supplier’s
acknowledgment, invoice, delivery form or other Supplier documents are hereby deleted and declared null and void. The preprinted terms and conditions on any Purchase Order issued to Supplier are hereby deleted and declared null and void.
Supplier’s written acknowledgment of any Purchase Order or performance by shipment or otherwise 

  

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pursuant to any Purchase Order shall constitute acceptance of all of the terms and conditions of the Contract. 
  

	4.0	PROPRIETARY INFORMATION 

 4.1 In the performance of the obligations of the
parties under the Contract or in the contemplation thereof, each party, its Affiliates and its and its Affiliates’ personnel may have access to private or confidential information, including but not limited to information concerning costs,
charges, operating procedures and methods of doing business which may be owned or controlled by the other party. The receiving party agrees that any such information which is disclosed to it in a document or other media clearly indicated to be
proprietary and confidential by a label, legend or other notice included in or placed upon the document or other media at all times shall remain the exclusive property of the disclosing party and shall be used by the receiving party solely for the
purpose of performing its obligations under the Contract. The receiving party also agrees to exercise reasonable efforts, consistent with the efforts that the receiving party exercises to protect information of its own that it regards as
confidential, to keep such information in confidence and not to copy or permit others to copy the information or disclose the same to unauthorized persons. The receiving party is authorized to disclose such information only to personnel of receiving
party and its Affiliates who require the information in the course of performance under the Contract. Notwithstanding the foregoing, the confidential information of the disclosing party shall not be deemed to include the following: 
 4.1.1 Information that was in the public domain prior to disclosure to the receiving party hereunder or that subsequently becomes part of the public domain through no
wrongful act of the receiving party; 
 4.1.2 Information that was in the receiving party’s possession free of any obligation of secrecy prior to the
disclosure to the receiving party by the disclosing party; 
 4.1.3 Information that was disclosed to the receiving party by a third party which the
receiving party reasonably believes has no obligation of secrecy with respect thereto; and 
 4.1.4 Information that was developed by or for the receiving
party independently of and without reference to the confidential information of the disclosing party. 
 4.2 If the receiving party is required to disclose
the confidential information of the disclosing party pursuant to any legal proceeding, the receiving party shall notify the disclosing party in writing of the request for disclosure and allow the disclosing party to seek an appropriate protective
order in connection with the disclosure. The receiving party shall not intentionally remove from the confidential information of the disclosing party any labels, legends or other notices indicating the confidential and proprietary nature of such
information. 
  

	5.0	WARRANTY 

 5.1 Supplier warrants that all Products sold and delivered to
Purchaser under the Contract shall conform strictly to the Technical Specifications. 
 5.2 THE WARRANTY SET FORTH IN PARAGRAPH 5.1 ABOVE IS IN LIEU OF ALL
OTHER WARRANTIES, REPRESENTATIONS OR CONDITIONS OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, IN FACT OR BY LAW, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

  

	6.0	PROPRIETARY INTEREST INDEMNIFICATION 

 Supplier shall indemnify and hold
Purchaser harmless from any suit or proceeding brought against Purchaser which is based on a claim that the Product furnished under the Contract constitutes an infringement of any patent of the United States or any foreign nation or a breach of any
trade secret, copyright, trademark, or other proprietary right of any kind whatsoever of any third party either in the United States or in a foreign nation. Supplier shall pay all costs and expenses of investigation and defense, and pay any
settlement or judgment arising out of any such claim, suit or proceeding. In case 

  

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the Product is in any such suit held to constitute infringement or breach and Purchaser’s use of said Product or part is enjoined, Supplier shall, at
its expense, either (i) procure for Purchaser the right to continue using said Product, (ii) replace said Product with non-infringing product which is equivalent in function or (iii) modify said Product so it becomes non-infringing
yet equivalent in function. In the event it is impossible for Supplier to comply with any of the alternatives set forth above, or if Supplier has for any reason failed to comply with any of said alternatives within thirty (30) days of
Purchaser’s use of such Product being enjoined, then Supplier shall, if requested by Purchaser, and upon terms and conditions satisfactory to Purchaser, remove said Product and refund the Contract Price applicable to the quantity of Product
removed, the transportation costs thereof, and all other amounts including, but not limited to, any sales and use taxes paid by Purchaser in connection with said Product. Without limiting the generality of the above, Without limiting the generality
of the above, Supplier warrants that it has no knowledge or notice of any claim or instance where the combination of Product provided by Supplier with other equipment, components, materials, apparatus, items or processes (regardless of whether such
other equipment, components, materials, apparatus, items or processes were furnished by Supplier) are or would be the basis for a claim of such infringement or breach. (“Combination of Product Claim”) In the event Supplier becomes aware
any such Combination of Product Claim, Supplier shall immediately notify Purchaser in writing, providing all relevant details. Failure promptly to provide prompt notice of such Combination of Equipment Claim shall expand the above described
indemnification and hold harmless obligation to such Combination of Equipment Claim(s). The indemnification provided in this Section entitled, PROPRIETARY INTEREST INDEMNIFICATION, shall survive the cancellation, termination or expiration of the
Contract. 
  

	7.0	FORCE MAJEURE 

 7.1 Definition of Force Majeure 
 “Force Majeure” shall mean an event or condition that prevents or delays the performance by a Party of its obligations under this Agreement to the extent
beyond the reasonable control, and without the fault or negligence, of the party claiming relief, and which by the reasonable exercise of due diligence such claiming Party is unable to prevent or overcome. Force Majeure, includes, but is not limited
to, Acts of God, fires, floods, explosions, electrical storms, windstorms, extremes of temperature, earthquakes, enactment of new Applicable Law or changes in Applicable Law, landslides, cave-ins, war, riot, terrorism, embargoes, acts of the public
enemy or sabotage, and boycotts. For the sake of clarity, new Applicable Law or Change in Applicable Law will include, without limitation, such changes in Applicable Law that eliminate or materially change the need for injection of carbon at
Purchaser’s power plants. Force Majeure does not include events of labor unrest, strike or work stoppage. In no event shall an Event of Force Majeure excuse or delay the payment of any amount owed by one Party to the other Party under this
Agreement. 
 7.2 Effect of Force Majeure 
 If Force Majeure
prevents a Party from performing any of its obligations under this Agreement, and if such Party gives to the other Party Notice of the Force Majeure (which Notice (i) shall identify the event of Force Majeure and, to the extent known, the
expected length of time during which the event of Force Majeure will be in effect and the plan of the Party experiencing the Force Majeure to correct or remove it and (ii) be delivered promptly), then the obligations of the Party giving such
Notice are excused to the extent made necessary by the Force Majeure and during its continuance, which time period shall be called the “Force Majeure Period.” However, an event of Force Majeure shall excuse the obligations of the
notifying Party only to the extent that such Party takes all commercially reasonable actions necessary to overcome the Force Majeure with all reasonable dispatch. Only the Party suffering a Force Majeure may claim Force Majeure relief; however, the
other Party shall be excused from its obligations which depend upon the performance of the obligations excused by the Force Majeure. An attempt by the Party suffering an event of Force Majeure to perform its obligations notwithstanding the Force
Majeure shall not constitute a waiver of the right to claim Force Majeure if such attempt proves unsuccessful. The Party affected by Force Majeure shall not be required to submit to unreasonable conditions or restrictions 

  

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imposed by any governmental authority or contract counterparty to overcome the Force Majeure. To the extent that Supplier is unable to deliver Carbon due to
Force Majeure, Purchaser’s Carbon Purchase Commitment shall be reduced by the amount of Carbon that Supplier was scheduled to deliver during the Force Majeure Period as indicated in the Annual Nomination/monthly delivery schedule provided
however, that Purchaser will accept the delivery of such amount of Carbon at the end of the Term over a period equal to the duration of the Force Majeure if Purchaser still has need for delivery of Carbon. In the even that new Applicable Law or
Changes in Applicable Law eliminate the need for injection of carbon at Purchaser’s power plants (i.e. changes in Applicable Law reduce Mercury control obligations such that Purchaser’s plant(s) could comply with such new Law by operating
as configured prior to the injection of Carbon), then Pruchaser may terminate this Agreement without further obligation. 
  

	8.0	ALLOCATION OF RESPONSIBILITY 

 8.1 Risk of loss with respect to all Product
delivered by Supplier under the Contract shall pass to Purchaser when the Product enters Purchaser’s storage facilities or when the Product enters Purchaser’s pipelines if, under the Contract, Supplier rents to, leases to, or otherwise
provides to Purchaser the storage facility or supply system to which the Product is delivered and to which Purchaser’s pipelines are attached. 
 8.2
Purchaser acknowledges that there are hazards associated with the use of Product. Supplier will provide Purchaser with Material Safety Data Sheets setting forth the general hazards and safety information relating to Product. Purchaser hereby assumes
all responsibility for warning its employees and independent contractors exposed to Product of all such hazards and shall hold harmless and indemnify Supplier from and against all liability arising from any failure to make such warnings. Supplier
shall promptly notify Purchaser of any additional hazards of which Supplier may, from time to time, become aware. 
 8.3 Final determination of the
suitability of the Product for any use contemplated by Purchaser is the sole responsibility of Purchaser, and Supplier shall have no responsibility in connection therewith. Purchaser shall avail itself of testing devices to determine the purity of
Product before Purchaser uses it at Purchaser’s discretion, but no error in, or failure to make, any such test shall impair any right on the part of Purchaser to obtain a refund or replacement Product. 
  

	9.0	INSURANCE 

 9.1 Supplier, at its expense, shall procure and maintain and
shall require its subcontractors to procure and maintain in effect without interruption during the term of this Contract policies of insurance providing, at a minimum, the coverages and limits specified, and complying with the other requirements
stated below: 
  

	9.1.1	Commercial General Liability insurance (or equivalent) on an occurrence (not claims made) basis, in an amount not less than $2,000,000 (two million dollars) for any one occurrence
including broad form contractual liability coverage, product liability, and at least two years completed operations, broad form property damage and severability of interest for each insured. 

  

	9.1.2	Business Auto Liability insurance covering owned, non-owned, and hired vehicles in an amount not less than $2,000,000 (two million dollars) combined single limit for bodily injury
and property damage for any one occurrence. 

  

	9.1.3	Statutory Workers’ Compensation covering the legal liability of Supplier under the applicable worker compensation or occupational disease laws of the State or Federal
Government for claims for personal injuries and death resulting therefrom to Supplier in amounts required by statute. Supplier shall have Employer’s Liability insurance covering Supplier in an amount not less than $1,000,000 (one million
dollars). 

  

	9.1.4	Excess liability or umbrella liability insurance in an amount not less than $3,000,000 (three million dollars) for any one occurrence. Any excess liability or umbrella policy shall
be applicable to the general liability, auto liability and employer’s liability policies that are required. 

  

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	9.1.5	Subrogation. Supplier and its subcontractors hereby waive and relinquish and agree to require its insurer(s) to waive and relinquish any right of subrogation against the Purchaser
it might possess for any policy of insurance required under this Agreement or under any State or Federal Workers’ Compensation or Employers’ Liability Act. 

  

	9.1.6	Additional Insured. The coverages required in paragraphs 9.1.1, 9.1.2 and 9.1.4 shall name the Purchaser and Persons Indemnified as an additional insured with respect to liability
arising out of products, ongoing operations, work (including completed operations), and Services performed by or on behalf of the Supplier for Purchaser or the Persons Indemnified under this Agreement. 

  

	9.1.7	Written Certificate of Insurance. Supplier shall require its insurer to notify Purchaser thirty (30) days prior to the Effective Date of any cancellation or material change in
any of the required policies. Prior to beginning any Services and annually (by the policy renewal date of each year) thereafter for every year that this Contract is in force, Supplier shall submit to Purchaser, Certificates of Insurance evidencing
the coverage prescribed by this Contract and certifying the amount and nature of such coverage, the expiration date(s) of each applicable policy and that such policies have been endorsed as required by this Contract. All such Certificates of
Insurance shall be submitted to Purchaser at the address for deliver of such as indicated in the Purchase Order. Supplier shall furnish to Purchaser such additional information concerning its insurance coverage as Purchaser shall reasonably request
in writing. 

  

	9.1.8	Deductibles. To the extent that Supplier or its subcontractors utilize deductibles in conjunction with the insurance required by this Contract, all deductible expenses will be
assumed by Supplier or its subcontractors and will be considered as Supplier expenses and not part of the normal expenses associated with this Contract. 

  

	9.1.9	Non-Limitation on Supplier Liability. The obligations for Supplier to procure and maintain insurance shall not be construed to waive or restrict other obligations of Supplier or
limit the liability of Supplier whether or not same is covered by insurance. 

  

	9.1.10	Additional Insurance Requirements. At any time during the life of this Contract, Purchaser may require Supplier to obtain and maintain additional insurance with coverage or limits
in addition to those above described. 

  

	9.1.11	Insurance Providers. Insurance is to be placed with insurers with a Best’s rating of no less than A VII or equivalent. 

  

	9.1.12	Primary Insurance. The Supplier or its subcontractors’ insurance shall be primary insurance with respect to the Services for Purchaser, its employees and agents, parent and
affiliates, directors and officers. Any insurance or self insurance maintained by Purchaser or any Affiliate shall be excess of the Supplier’s and subcontractors’ insurance and shall not contribute with it. 

  

	9.1.13	Except as otherwise provided herein, Supplier shall be responsible for and shall bear the risk of loss of or damage to any property of Supplier and any property for which it is
responsible, wherever located, and any insurance provided for such property shall be at Supplier’s expense. 

  

	10.0	INDEMNITY 

 10.1 Applicable in Alabama. Supplier shall indemnify and
hold harmless any person or entity of Persons Indemnified from and against any and all loss, damage or liability resulting from demands, claims, suits, or actions of any character presented or brought for any injuries (including death) to persons
and for damages to property to the extent caused by or arising out of any negligent (including strict liability), wanton or intentional act or omission of Supplier, any of its subcontractors, anyone directly or indirectly employed by any of them or
anyone for whose acts any one of them may be liable, or in any way associated with or connected with the performance of any work or obligations under the Contract. The indemnity provided in this Section shall include, but not be limited to court
costs, attorney’s fees, costs of investigation, costs of defense, settlements, and judgments associated with such demands, claims, suits or actions. The indemnity provided in this Section is intended for the benefit of Purchaser and also for
the benefit of any other person or entity of Persons Indemnified. Supplier’s indemnification obligations under the Contract shall in no way be limited by the limitation on amount or type of damages, or by any compensation or benefits payable by
or for Supplier, or any of its subcontractors, under any 

  

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worker’s compensation act, employer liability act, disability act or other employee benefit act. The Contractor shall pay any and all attorneys’
fees, expenses, and costs incurred by the Indemnified Parties which relate to the enforcement of the indemnity conditions and obligations of the Contractor, including without limitation the additional insured protection and other obligations of the
Contractor, under the Contract. The indemnification obligation stated in this Agreement shall be independent of and shall not be limited by or limit the obligations of Contractor under the Paragraph above entitled “Insurance”. The
indemnification provided in this Section shall survive the cancellation, termination or expiration of the Contract. Supplier hereby waives any right Supplier may have under governing law to assert the contributory negligence of any person or entity
of Persons Indemnified as a complete defense to Supplier’s foregoing indemnity obligation(s) and as an absolute bar to such person’s or entity’s foregoing indemnity rights. 
 10.2 Applicable in Florida. LIABILITY: 
  

	10.2.1	Indemnity: In consideration for 1% of all sums paid by Persons Indemnified to Supplier, Supplier hereby agrees to indemnify, defend and hold any person or entity of
Persons Indemnified harmless from any and all claims, damages, costs (including attorneys’ fees and court costs), suits or actions of any character for damages to persons and/or property to the extent arising out of, related to, or in any way
associated or connected with (1) the performance of any work covered by this Contract, or any work on the project to which this Contract relates., and (2) any wrongful or negligent act, omission, misconduct, or violation of employment laws
by the Supplier or by any agent, servant, employee, contractor, subcontractor, sub-subcontractor, or materialman of Supplier. Notwithstanding the foregoing, Supplier shall not be obligated to indemnify any person or entity of Persons Indemnified for
any claim of, or damages resulting from, gross negligence or willful, wanton or intentional misconduct of any person or entity of Persons Indemnified, or for statutory violation(s) or punitive damages except and to the extent the statutory
violation(s) or punitive damages are caused by or result from the acts or omissions of Supplier or any of Supplier’s contractors, subcontractors, sub-subcontractors, materialman, or agents of any tier or their respective employees. The
Contractor shall pay any and all reasonable attorneys’ fees, expenses, and costs incurred by the Indemnified Parties which relate to the enforcement of the indemnity conditions and obligations of the Contractor, including without limitation the
additional insured protection and other obligations of the Contractor, under the Contract. The indemnification obligation stated in this Agreement shall be independent of and shall not be limited by or limit the obligations of Contractor under the
Paragraph above entitled “Insurance”. The indemnity provided in this Section shall survive the cancellation, termination or expiration of the Contract. 

  

	10.2.2	Waiver of Worker’s Compensation Defense: In the event of any suit, claim or action of any character (including without limitation any action for indemnity and/or
contribution) by Persons Indemnified against Supplier for or in any way relating to injuries to Supplier’s employees, Supplier hereby agrees to waive any defense and/or claim of worker’s compensation immunity or any other immunity defense
as provided in Chapter 440, Florida Statutes. Supplier understands, agrees and acknowledges that the waiver described in this paragraph b. includes a waiver of any defense to any action by Persons Indemnified for contribution against Supplier in
which Supplier would or could otherwise assert that there is no common liability between Persons Indemnified and Supplier for injuries to Supplier’s employees. The term “employees” as used herein includes but is not limited to any and
all leased employees, temporary employees and/or independent contractors. 

  

	10.2.3	 Monetary Limitation on Indemnification (construction contracts only): This paragraph applies only to this agreement to the extent that this agreement
is subject to the provisions of §725.06 of the Florida Statutes. In such case, Supplier’s obligations to Persons Indemnified as set forth in subparagraph a. above solely with regard to liability for damages to persons or property caused in
whole or in part by any act, omission, or default of Persons Indemnified arising from this agreement or its performance, per occurrence, shall be limited to $10,000,000.00 which amount Supplier understands, agrees and acknowledges bears a reasonable
commercial relationship to this Contract and was made part of the Contract Documents, if any, that preceded this 

  

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agreement. To the extent that any Technical Specifications and/or other Contract Documents are applicable to the scope of Supplier’s work under this
contract, the terms of this paragraph (including, without limitation, this subparagraph c.) are hereby incorporated into such Technical Specifications and/or other Contract Documents. In the event that the amount specified above in this paragraph c.
is deemed to be unenforceable pursuant to §725.06 of the Florida Statutes, the monetary limitation specified by this paragraph shall not be less than $1 million per occurrence. 

 10.3 Applicable in Georgia. To the fullest extent permitted by law, Supplier shall and does hereby agrees to indemnify, hold harmless and defend any person or
entity of Persons Indemnified from and against any and all claims, losses, damages, expenses and all other liabilities to the extent arising out of or resulting from Supplier’s, or any of its agents’, employees’ or
subcontractors’, performance or failure to perform under the Contract, including, without limitation, demands, claims, suits, or actions of any character presented or brought for any injuries (including death) to persons and for damages to
property to the extent caused by or arising out of any negligent (including strict liability), wanton or intentional act or omission of Supplier, any of its subcontractors, anyone directly or indirectly employed by any of them or anyone for whose
acts any one of them may be liable, or when such acts or omissions are in any way associated or connected with the performance of any work or obligations under the Contract in whatever manner the same may be caused The foregoing indemnity shall
include, but not be limited to, court costs, reasonable attorney’s fees, costs of defense, settlements, and judgments associated with such demands, claims, suits or actions. The indemnity provided in this Section is intended for the benefit of
Purchaser and also for the benefit of any other person or entity of Persons Indemnified. Supplier’s indemnification obligations under the Contract shall in no way be limited by the limitation on amount or type of damages, compensation or
benefits payable by or for Supplier, or any of its subcontractors, under any workers’ compensation act, employer liability act, disability act or other employee benefit act. Supplier shall pay any and all reasonable attorney’s fees,
expenses and other costs incurred by Persons Indemnified, which relate to the enforcement of the indemnity conditions and obligations of Supplier under the Contract. The Contractor shall pay any and all reasonable attorneys’ fees, expenses, and
costs incurred by the Indemnified Parties which relate to the enforcement of the indemnity conditions and obligations of the Contractor, including without limitation the additional insured protection and other obligations of the Contractor, under
the Contract. The indemnification obligation stated in this Agreement shall be independent of and shall not be limited by or limit the obligations of Contractor under the Paragraph above entitled “Insurance”. The indemnity provided in this
Section shall survive the cancellation, termination or expiration of the Contract. 
 10.4 Applicable in Mississippi. Supplier shall indemnify, hold
harmless and defend any person or entity of Persons Indemnified from and against any and all loss, damage or liability resulting from demands, claims, suits, or actions of any character presented or brought for any injuries (including death) to
persons and for damages to property to the extent arising out of, related to, or in anyway associated or connected with any wanton or intentional or negligent act or omission of Supplier in performance of the work obligations under the Contract. In
the event such losses, damages or liabilities are caused by or arise out of the joint, concurrent or contributory negligence of any person or entity of Persons Indemnified, the loss shall be borne by Supplier and Purchaser proportionally to their
degree of negligence. In no event shall Supplier’s obligation to indemnify hereunder exceed Supplier’s proportionate share of negligence. Supplier will be responsible for all damages and injury to property of any character during its
prosecution of the work under the Contract which may result from any act, omission, negligence, or misconduct in the manner or method of executing the work, or from any failure to perform it satisfactorily, or resulting from the non-execution of the
work at any time, or any defective work or materials. The responsibility of Supplier to indemnify for all damages and injury to property shall extend to damages caused by acts or omissions of any of the subcontractors of Supplier, or the agents,
servants, or employees, of any such subcontractor. The indemnity provided in this Section shall include, but not be limited to court costs, reasonable attorney’s fees, costs of investigation, costs of defense, settlements, and judgments
associated with such demands, claims, suits or actions. The indemnity provided in this Section is intended for the benefit of Purchaser and also for the benefit of any other person or entity of Persons Indemnified. Supplier’s indemnification
obligations under the Contract shall in no way be limited by the limitation on amount or type of damages, compensation or benefits payable by or for 

  

 8 

 
Supplier, or any of its subcontractors, under any workers’ compensation act, employer liability act, disability act or other employee benefit act.
Supplier shall pay any and all attorney’s fees, expenses and other costs incurred by Persons Indemnified which relate to the enforcement of the indemnity conditions and obligations of Supplier under this Section. The Contractor shall pay any
and all attorneys’ fees, expenses, and costs incurred by the Indemnified Parties which relate to the enforcement of the indemnity conditions and obligations of the Contractor, including without limitation the additional insured protection and
other obligations of the Contractor, under the Contract. The indemnification obligation stated in this Agreement shall be independent of and shall not be limited by or limit the obligations of Contractor under the Paragraph above entitled
“Insurance”. The indemnity provided in this Section shall survive the cancellation, termination or expiration of the Contract. 
  

	11.0	TAXES 

 Except for domestic sales and use taxes, all applicable Federal,
State and other governmental division taxes (or, if applicable, all foreign taxes) levied against the Supplier and/or the Product shall be included in the Contract Price. In addition, all taxes or contributions for unemployment compensation, social
security, labor and any other laws with respect to Supplier and its employees, now or hereafter effective shall also be included in the Contract Price. Domestic taxes levied on sales or use of the Product sold hereunder shall not be included in the
Contract Price and will be compensated for or paid by Purchaser separately to the extent of legal requirements only. 
  

	12.0	RESPONSIBILITY FOR FOREIGN MANUFACTURE 

 Supplier shall make or provide for
the payment of all taxes and import duties, charges, assessments, deposits, bonds or security to governmental authorities (both United States and foreign) necessary to import and to deliver the Product to Purchaser’s designated destination
point within the Contract Time. Supplier understands that Purchaser has no responsibility whatsoever for any of such import duties, charges, assessments, deposits, bonds or security. 
  

	13.0	RATE OF EXCHANGE 

 The Contract Price shall not be adjusted due to changes
in the rate of exchange of currency between the United States and any foreign country, and Supplier shall be solely liable and responsible for any additional cost associated with foreign manufacture. 
  

	14.0	LANGUAGE AND MEASUREMENT SYSTEM 

 Supplier shall furnish all
specifications, documentation, etc. in the English language, and if capacities or quantities are prepared using the Metric System of measurement, they shall be modified by Supplier to also include measurements in the United States customary system
of measurement. 
  

	15.0	SUBCONTRACTS 

 Supplier shall bind all subcontractors to the applicable
terms of the Contract Documents. Purchaser may require a list of subcontractors. Supplier shall obtain each subcontractor’s written acceptance of such terms and conditions and shall require each subcontractor to assume toward Supplier all of
the obligations and responsibilities that Supplier, by the Contract, assumes toward Purchaser. Should Supplier fail to obtain the written acceptance of such terms and conditions by each subcontractor or fail to require each subcontractor to assume
toward Supplier all the said obligations and responsibilities that Supplier assumes toward Purchaser, and should such failure cause or contribute to a loss or damage to any person or entity of the Persons Indemnified, then, in such event Supplier
shall indemnify and hold such person or entity harmless from any and all losses or damages, and claims or suits so incurred, including expenses and reasonable attorneys fees with respect thereto. The indemnity provided in this Section entitled,
SUBCONTRACTS, is intended for the benefit of Purchaser and also for the benefit of Persons Indemnified. Supplier shall be as fully responsible to Purchaser for the acts and omissions of its subcontractors and of the persons either directly or
indirectly employed by its subcontractors as Supplier is for the acts of the persons directly or indirectly employed by itself. 
  

	16.0	ASSIGNMENT OF CONTRACT 

 The Contract shall be binding upon the parties,
their partners, successors, assigns and legal representatives. Supplier shall not assign or transfer, directly or indirectly, the whole or any part of the 

  

 9 

 
Contract, the Product, or any of Supplier’s rights or obligations or any moneys at any time payable to Supplier under the Contract, without the prior
written consent of Purchaser. Any attempted assignment without Purchaser’s prior written consent shall be null and void and of no effect. Purchaser reserves the right to assign the Contract and all related rights (with respect to all or part of
the Product) to any one or more of the Affiliates upon written notice to, but without the consent of, Supplier. 
  

	17.0	COMPLIANCE WITH LAWS AND REGULATIONS 

 17.1 Supplier shall comply, and
shall require its employees, agents, representatives, subcontractors and subcontractors’ employees to comply, at all times with all applicable Federal, state, county, and municipal laws, regulations, rules, codes, ordinances, policies,
guidance, directives, orders and decrees which in any manner affect the Contract or its performance. Without limiting the generality of the foregoing statement, such laws and regulations shall include, but are not limited to, all such laws and
regulations with respect to labor laws, including, without limitation, use of U. S. citizens or properly documented alien workers under the Immigration Act of 1990 and the Immigration and Nationality Act of 1952, as amended, and observance of
applicable occupational safety and health standards promulgated pursuant to the Occupational Safety and Health Act of l970. 
 17.2 To the fullest extent
permitted by law, Supplier agrees to and shall indemnify, release and hold harmless each person or entity of the Purchaser, its affiliates, its parent, and the directors, officers, representatives, agents, employees and assigns of each of them, and
all parties claiming through them (“Persons Indemnified”) from and against all claims, demands, suits or actions of every kind and nature presented or brought for any claim or liability and for all damages and costs incurred by the Persons
Indemnified, including, without limitation, reasonable attorneys’ fees and costs, arising from or related to the violation of any such law, regulation, rule, code, ordinance, policy, guidance, directive, order or decree by Supplier or its
employees, agents, representatives, subcontractors or subcontractors’ employees. 
 17.3 Supplier shall maintain complete documentation and records
concerning compliance with all applicable legal requirements. Throughout the term of this Contract, and for the longer of: (a) six years after termination of the Contract; or (b) as required by applicable legal requirements, Supplier shall
maintain and permit Purchaser representatives, during normal business hours, to examine, audit and make copies of all documentation and records of Supplier (and, if applicable, its parent, affiliates and subsidiaries) relating to compliance with
applicable legal requirements. 
  

	18.0	COMPLIANCE AND ETHICS. 

 18.1 Electronic Communications. Supplier
and its directors, officers, employees, sub-contractors, suppliers, or agents (all of whom, including Supplier, are collectively referred to in this Article as “Supplier Representatives”) who access any computer system of Purchaser or any
of its affiliates (collectively referred to in this Article as “Purchaser”) while on Purchaser’s premises or by remote access shall comply with Purchaser’s electronic communications, e-mail, and internet use policies. 

18.2 On-Site Activities. If any Supplier Representative is to be on the premises of or under the control of Purchaser the following provisions shall apply:

  

	18.2.1	Site Rules and Regulations/ Drug and Alcohol Screening / Eligibility Guidelines. Supplier represents and warrants that it and its Supplier Representatives will comply with
all site rules, regulations, policies and guidelines including, but not limited to, the Purchaser policies which may require certain personnel to undergo drug and alcohol screening, background screening and to meet certain eligibility guidelines.
Without limitation, if any Supplier Representative fails to comply with Purchaser site rules, regulations, policies and guidelines including, but not limited to, those related to electronic communications, e-mail, internet use, drug and alcohol
screening, background screening and eligibility, the Purchaser reserves the right, in its sole discretion, to refuse site entry to or remove from the site any or all Supplier Representatives. 

  

	18.2.2	 No Toleration of Unacceptable Behaviors (Ethics). Supplier Representatives shall at all times conduct their business activities pursuant to this Contract in
a highly ethical manner and in compliance with all laws and regulations. It shall not, at any time, exhibit the following behaviors 

  

 10 

	 	 
(collectively, the “Behavior Standards”): (a) Harassment or discrimination of any kind or character, including but not limited to conduct or
language derogatory to any individual on the basis of race, gender, color, religion, age, national origin, disability, veteran status or sexual orientation that creates an intimidating, hostile, or offensive working environment. Specific examples
include, but are not limited to jokes, pranks, epithets, written or graphic material, or hostility or aversion toward any individual or group; (b) Any conduct or acts such as threats or violence that creates a hostile, abusive, or intimidating
work environment. Examples of such inappropriate behaviors include, but are not limited to fighting, abusive language, inappropriate signage, use or possession of firearms on Purchaser property, and destruction of Purchaser or Purchaser’s
employee property or the threat of any of the foregoing; (c) Work practices that are unsafe or harmful to the environment; (d) Use of Purchaser’s computers, email, telephone or voice-mail system that in any way involves material that
is obscene, pornographic, sexually oriented, threatening, or otherwise derogatory or offensive to any individual on the basis of race, gender, color, religion, age, national origin, disability, veteran status or sexual orientation; (e) The use
of, being under the influence of, or possession of alcoholic beverages or unlawful drugs on Purchaser property; or, (f) Engagement in any activity that creates a conflict of interest or appearance of the same, including but not limited to
providing gifts and gratuities to Purchaser’s employees. Supplier is responsible for communicating the Behavior Standards to Supplier Representatives who enter the Purchaser’s facility or facilities. 

  

	18.2.3	Termination From Non-Compliance With Behavior Standards. Notwithstanding anything in this Contract to the contrary, in the event that Purchaser shall at any time in its sole
discretion conclude that any Supplier Representative shall have breached its obligations under this section, Purchaser shall have the right, in addition to all remedies which may be available at law or equity, to immediately cancel this Contract. If
a Supplier Representative observes a Purchaser employee doing, or is ever asked by a Purchaser employee to do, something the Supplier Representative considers to be unethical, illegal, or in violation of these behavior standards, Purchaser expects
the Supplier Representative to notify Purchaser’s management immediately or call Workplace Ethics at (1-800-754-9452). 

  

	19.0	GENERAL SERVICES ADMINISTRATION 

 General Services Administration: The
Purchaser is a government contractor under an Areawide Public Utility Contract with the General Services Administration of the United States Government. Supplier agrees that each of the clauses contained in the Federal Acquisition Regulations
referred to below shall, as if set forth herein in full text, be incorporated into and form a part of the Contract, and Supplier shall comply therewith if the amount of the Contract and the circumstances surrounding its performance require Purchaser
to include such clause in contracts between Purchaser and others: 
  

					
		 	(1) 52.203-6	 	Restrictions on Subcontractor Sales to the Government (JUL 1985);
			
		 	(2) 52.203-7	 	Anti-Kickback Procedures (OCT 1988);
			
		 	(3) 52.219-8	 	Utilization of Small, Small Disadvantaged and Women-Owned Small business concerns (OCT 1995);
			
		 	(4) 52.219-9	 	Small, Small Disadvantaged and Women-Owned Small Business Subcontracting Plan (OCT 1995);
			
		 	(5) 52.222-26	 	Equal Opportunity (APR 1984); and
			
		 	(6) 52.223-14	 	Toxic Chemical Release Reporting.

 Upon written request, Purchaser will provide the full text of any of the above clauses incorporated
herein by reference. 
 Supplier hereby represents and warrants that Supplier is not debarred, suspended or proposed for debarment as a contractor or
subcontractor to any department, agency or other division of the United States Government. 
  

	20.0	GOVERNMENTAL HEARINGS 

 20.1 Supplier understands and acknowledges that as
a result of its performance of the Contract and the special knowledge it possesses, and in order to defend and explain the decisions, procedures and 

  

 11 

 
standards applicable to its furnishing of the Product, Supplier may be called upon to appear as an expert witness at governmental and other hearings.
Supplier agrees that it shall appear in such hearings when required by Purchaser. Supplier shall also participate in the preparation of testimony; reports or other documents required in any lawsuits or governmental or other hearings when called upon
to do so by Purchaser. All reasonable and actual costs incurred by Supplier for the foregoing shall be reimbursed to Supplier by Purchaser. 
  

	21.0	CANCELLATION BY THE PURCHASER FOR BREACH 

 Purchaser may cancel the
Contract or any part thereof for breach in the event of any default, or notification of Purchaser by Supplier of Supplier’s intent to default or if the Supplier fails to comply with any of the provisions of the Contract. Failure to provide
Product within the time specified, supply of defective or non-conforming Product and failure to provide Purchaser, upon request, with reasonable assurance of future performance shall be causes allowing Purchaser to terminate the Contract. In the
event of such cancellation Supplier shall be liable to Purchaser for any and all damages as may be provided by law or equity. If it should be determined that Purchaser has improperly canceled the Contract, for breach, Purchaser’s action shall
be deemed to have constituted a termination of the Contract pursuant to the Section above, entitled TERMINATION BY THE COMPANY FOR CONVENIENCE. 
  

	22.0	SUPPLIER LIMITATION OF LIABILITY 

 Neither Party shall be liable to the
other Party for consequential damages, including but not limited to, (i) loss of profit or revenue resulting from the failure of Supplier to make delivery as specified herein or resulting from its failure to meet the Technical Specifications
herein in regard to the Product, (ii) damages suffered by Purchaser as a result of the loss of the use of its power system or production facilities, (iii) cost of purchased or replacement power, (iv) damages suffered by customers of
Purchaser for service interruptions or (v) cost of capital, whether such liability is based on contract, warranty, tort (including negligence and strict liability) or otherwise. 
 With the exception of third party claims for which Supplier is obligated to Purchaser under paragraphs 10.1, 10.2, 10.3 and 10.4 (Indemnity), or Supplier’s obligations to Purchaser under paragraph 6 (Proprietary
Interest Indemnification),or Supplier’s obligations under Article 27 (Title), the total cumulative liability of a Party to the other Party and/or its Affiliates under a Purchase Order, as defined herein, shall not exceed one and a quarter
(1.25) times the amount of the applicable Purchase Order. 
  

	23.0	SUPPLIER’S RIGHTS UPON BREACH BY COMPANY 

 23.1 Supplier agrees that
it can absolutely be compensated by money damages for any breach of the Contract which may be committed by Purchaser, and Supplier agrees that no default, act or omission of Purchaser shall constitute a material breach of the Contract entitling
Supplier to cancel or rescind the Contract or to suspend or abandon performance. Supplier further waives any and all rights and remedies to which it might otherwise be entitled because of any act or omission of the Purchaser, saving only its rights
to money damages. 
 23.2 Supplier shall have no right to consequential damages by reason of Purchaser’s breach of the Contract or any acts of Purchaser
under the Contract, and Supplier hereby waives any and all rights to consequential damages. 
  

	24.0	DELIVERY 

 Unless agreed otherwise, the Product shall be shipped F.O.B.
destination, freight pre-paid and added as a separate line item to the applicable invoice. Title and risk of loss to the Product shall pass to Purchaser upon delivery at the destination point designated in the Section entitled, ALLOCATION OF
RESPONSIBILITY. Supplier shall file claims for loss or damage, if any. 
  

 12 

	25.0	INVOICING AND PAYMENT 

 25.1 Purchaser shall pay to Supplier, within thirty
(30) days after receipt of an accurate and properly substantiated invoice or acceptance of the Products by Purchaser, whichever is later, one hundred percent (100%) of the undisputed invoice amount of the Contract Price for the Products.

 25.2 Supplier must submit all invoices to the Purchaser address and to the attention of the Purchaser representative designated in the Contract. Purchaser
shall not be responsible for any delays in payment or failure to pay any invoices which are improperly addressed. 
 25.3 Any terms and conditions included
in an invoice shall be deemed solely for the information of Purchaser and no such term or condition shall be binding upon Purchaser, and no action by Purchaser, including without limitation the payment of any invoice in whole or in part, shall be
construed as binding or estopping Purchaser with respect to any such term or condition unless the invoice term or condition has been agreed to by Purchaser in, and is binding upon Purchaser with respect to such invoice by virtue of the Contract or a
binding Modification thereto. 
  

	26.0	AUDIT 

 Supplier shall maintain books and records, in accordance with
generally accepted accounting principles and practices. The accounting records shall be adequately safeguarded and protected at their source locations for the longer of three (3) years after final payment or as may be required by law.
Purchaser, its auditors and other authorized representatives have the right to review and audit, and shall be afforded access to, Supplier’s pertinent books, accounts, ledgers, bank records, receipts, vouchers, purchase orders and other records
to verify amounts, deposits, disbursements and accounting in order to determine whether Supplier has properly computed the amounts and charges invoiced to Purchaser. Information obtained by Purchaser in examining Supplier’s accounting books and
records shall not be disclosed to third parties without Supplier’s consent, unless such disclosure is ordered by a governmental agency or a court of competent jurisdiction with respect to any litigation or other proceeding involving the
Contract. 
  

	27.0	TITLE 

 27.1 Supplier warrants that title to the Product shall pass to
Purchaser free and clear of all liens, claims, security interests or encumbrances. 
 27.2 Supplier shall, whenever requested to do so, furnish Purchaser, in
such detail as may be required by Purchaser, statements in writing of all sums owed by Supplier or subcontractors for services rendered, labor performed, or equipment, materials, provisions, supplies, tools, or equipment furnished or used, or to be
used in the performance of the Contract. If at any time there shall appear to be any claim, lien, garnishment, attachment, or suit (collectively “a Lien”) chargeable to Supplier or any of its subcontractors for which, if established,
Purchaser might become liable, or Purchaser’s property, including the Product, might become affected. Purchaser shall have the right to retain out of any payments then due or thereafter to become due, an amount sufficient to completely
indemnify it against such Lien, including reasonable attorneys’ fees and other expenses in connection therewith. If any such Lien is filed or remains unsatisfied after all Contract payments are made, Supplier shall indemnify and hold harmless
Purchaser for all moneys that Purchaser may be compelled to pay in discharging such Lien, including all expenses and reasonable attorneys’ fees. 
  

	28.0	INDEPENDENT CONTRACTOR 

 Supplier shall be deemed an independent contractor
in the performance of the Contract and shall not be considered or permitted to be an agent, servant, joint venturer or partner of Purchaser. All persons furnished, used, retained or hired by or on behalf of Supplier shall be considered to be solely
the employees or agents of Supplier and Supplier at all times shall maintain such supervision and control over its employees and agents as is necessary to preserve its independent contractor status. Supplier shall be responsible for payment of any
and all unemployment, social security, and other payroll taxes for its employees and agents, as applicable, including any related assessments and contributions required by law. 
  

 13 

	29.0	SURVIVAL OF REPRESENTATIONS 

 The rights and responsibilities of the
parties under such Sections that by their sense and context are intended to survive shall be effective notwithstanding any other provisions of the Contract and shall survive the completion, expiration, termination or cancellation of the Contract or
final acceptance of the work. 
  

	30.0	SUPPLIER REPRESENTATIVE 

 Supplier shall designate in writing a
representative who shall have full authority to execute any and all instruments requiring the signature of Supplier, and to otherwise act on behalf of Supplier with respect to all matters arising out of the Contract. 
  

	31.0	POLICIES AND PROCEDURES 

 Any of Supplier’s personnel who perform any
work at Purchaser’s plants or offices shall comply with the security, drug and alcohol, and other policies and procedures in effect at said plants or offices. Supplier’s personnel may be required to attend specific indoctrination prior to
their admission to said plants or offices. Purchaser reserves the right to refuse plant entry to any or all Supplier personnel. 
  

	32.0	TIME OF THE ESSENCE 

 Time is of the essence for performance under the
Contract and all obligations of Supplier must be performed in a prompt and timely manner and in accordance with any schedules agreed to under the Contract. The acceptance of any late performance with or without objection or reservation by Purchaser
shall not waive any rights of Purchaser nor constitute a waiver of the requirement of timely performance of any obligation of Supplier remaining to be performed. 
  

	33.0	NOTICES 

 All notices permitted or required to be given under the Contract
shall be in writing and shall be deemed duly given upon personal delivery or on the fourth day following the date on which each such notice is deposited postage prepaid in the United States Mail, registered or certified, return receipt requested or
on the next business day after being sent by a nationally recognized overnight courier service which provides proof of receipt. All notices shall be delivered or sent to the other Party at the address(es) shown in the applicable Purchase Order or to
any other address(es) as a Party may designate by ten (l0) days prior written notice given in accordance with this provision. 
  

	34.0	MISCELLANEOUS 

  

	34.1	No Waiver 

 No waiver by Purchaser, either by act or
failure to act, of any default by or obligation of Supplier in the performance of its obligations under the Contract shall be deemed or construed to be a waiver, whether prior or subsequent, of the same or any other default by or obligation of
Supplier. 
  

	34.2	Amendment 

 Except as provided herein, the Contract may be
changed only by a written instrument duly executed by authorized personnel of the parties. 
  

	34.3	Governing Law, Cumulative Remedies 

 By choice of the
parties, all disputes relating to the execution, interpretation, construction, performance, or enforcement of the Contract and the rights and obligations of the parties hereto shall be governed by the laws of, and resolved in the State or Federal
courts in, the state of the principal place of business of Purchaser; and, Supplier hereby consents to and waives any objection to venue and jurisdiction in such courts. Subject to any applicable limitation of liability set forth herein, the rights
and remedies of Purchaser herein are cumulative and in addition to any and all rights and remedies which may be provided by law or equity. 
  

	34.4	Captions 

  

 14 

 The Section and Section headings in each of the Contract Documents are for ease of reference only and
shall not be used to interpret the meaning thereof. 
  

	34.5	Severability 

 The Contract is made subject to all laws,
regulations and orders of the State and Federal Governments and their duly constituted agencies and boards having jurisdiction over the subject matter thereof. In the event that the Contract or the performance thereof shall violate any existing or
future such law, regulation or order, or in the event that such existing or future law, regulation or order materially hinders or interferes with Purchaser’s intended utilization of the Product, then, in either event the Contract shall
terminate and Purchaser and Supplier shall adjust their accounts, effective as of such termination. The unenforceability or invalidity of any provision of any of the Contract Documents shall not affect the validity or enforceability of the remaining
provisions thereof, but such remaining provisions shall be construed and interpreted in such a manner as to carry out fully the intent of the parties; provided, however, that should any judicial body interpreting any of the Contract Documents deem
any provision thereof to be unreasonably broad in time, scope or otherwise, it is the intent and desire of the parties hereto that such judicial body, to the greatest extent possible, reduce the breadth of such provision to the maximum legally
allowable parameters rather than deeming such provision totally unenforceable or invalid. 
  

	34.6	Publicity 

 Supplier shall submit to Purchaser all
advertising, sales promotion or other publicity matter relating to the Contract wherein the Purchaser’s name or the name of its Parent Company or of any of its Affiliates is mentioned, and Supplier shall not use or publish such advertising,
sales promotion or publicity matter without the prior written consent of Purchaser. 
  

	34.7	Successors and Assigns 

 The Contract shall inure to the
benefit of and be binding upon the respective successors and permitted assigns, if any, of the parties, provided that this Section entitled, Successors and Assigns, shall not be construed to permit any attempted assignment which would be
unauthorized or void pursuant to any other provision of the Contract. 
  

	34.8	Conditions to Close 

 This contract is contingent upon the
Financial Close of the debt financing for Red River Environmental Products, LLC’s. LLC’s first production line prior to December 31, 2008, and Supplier shall so advise Purchaser when such financing closes, identifying the lead bank.
In the event that Supplier fails to close the Financing then this Contract shall terminate and the Parties shall have no further obligation whatsoever to each other. 
  

 15Special Supplemental Conditions Contract

 Exhibit 10.46(c) 
  
  
 SPECIAL SUPPLEMENTAL CONDITIONS 
 FOR THE PURCHASE OF 
 ACTIVATED CARBON 
  
 Dated as of April 24,
2008 
  

	*	indicates portions of the exhibit that have been omitted pursuant to a request for confidential information and filed separately with the Commission. 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	SECTION 1 DEFINED TERMS	  	1 - 3
		
	SECTION 2. CONTRACT TERM	  	3
			
	2.1	  	Effective Date	  	3
			
	2.2	  	Starting Delivery Date	  	3
			
	2.3	  	Term	  	3
			
	2.4	  	Term Extensions	  	3
		
	SECTION 3. OUTLINE OF THE OBLIGATIONS OF THE PARTIES	  	3
			
	3.1	  	Purpose	  	3
			
	3.2	  	Obligations of Seller or Seller’s Affiliate(s)	  	4
			
	3.3	  	Obligations of Buyer	  	4
		
	SECTION 4. CARBON QUANTITIES AND DELIVERY SCHEDULES	  	4
			
	4.1	  	Quantity Obligations	  	4
			
	4.2	  	Annual Nominations	  	5
			
	4.3	  	Poundage Variations	  	5
			
	4.4	  	Additional Pounds	  	5
		
	SECTION 5. PRODUCT WARRANTY	  	5
			
	5.1	  	Warranty.	  	5
		
	SECTION 6. SOURCE OF CARBON	  	6
			
	6.1	  	Source of Carbon	  	6
		
	SECTION 7. DELIVERY OF CARBON	  	6
			
	7.1	  	Point of Delivery	  	6
			
	7.2	  	Title and Risk of Loss	  	6

  

 Page i 

					
	 SECTION 8. TRANSPORTATION OBLIGATIONS
	  	6
			
	 8.1
	  	 Transport
	  	6
		
	 SECTION 9. PRICE OF CARBON
	  	6
			
	 9.1
	  	 Contract Price
	  	6
			
	 9.2
	  	 Calculation of Billing Price
	  	6
		
	    9.2.1 Base Price	  	7
		
	    9.2.2 Inflation Adjustment	  	7
		
	    9.2.3 Billing Price	  	7
		
	    9.2.4 Notice of Calculations	  	7
			
	 9.3
	  	 Taxes, Fees and Royalties
	  	7
			
	 9.5
	  	 Rounding
	  	8
			
	 9.6
	  	 END OF TERM RECONCILIATION CONTRACT, SELLER SHALL WAIVE THE DEFICIT PAYMENT.
	  	8
		
	 SECTION 10. INVOICING AND PAYMENT
	  	DELETED
			
	 10.1
	  	 Invoicing Procedures
	  	DELETED
			
	 10.2
	  	 Payment Procedures
	  	DELETED
			
	 10.3
	  	 Disputed Invoices
	  	DELETED
		
	 SECTION 11. COMPLIANCE WITH LAWS
	  	DELETED
			
	 11.1
	  	 Construction
	  	DELETED
			
	 11.2
	  	 Severability
	  	DELETED
		
	 SECTION 12. WEIGHING, SAMPLING, AND ANALYSIS
	  	8
			
	 12.1
	  	 Procedures
	  	8
			
	 12.2
	  	 Duties to Sample Carbon
	  	8
			
	 12.3
	  	 Duties of Seller to Weigh Carbon.
	  	9
		
	     12.3.1 Duty to Weigh; Use of Weighing Data
	  	9
		
	     12.3.2 Inspection and Certification of Scales
	  	9

  

 Page ii 

					
	     12.3.3 Seller’s Certification of Scales and Weights; Correction of Errors
	  	9
			
	 12.4
	  	 Failure of Weighing, Sampling or Analytical Procedures.
	  	9
		
	     12.4.1 Substitute Procedures
	  	9
		
	     12.4.2 Inaccurate or Unreliable Sample or Final Analysis
	  	9
			
	 12.5
	  	 Rights of Buyer and Seller in Weighing, Sampling and Analysis.
	  	9
		
	     12.5.1 Results of Sampling and Analysis Binding
	  	9
		
	     12.5.2 Independent Analysis of Samples
	  	10
		
	     12.5.3 Referee Analysis
	  	10
		
	     12.5.4 Observation of Sampling and Analysis
	  	10
		
	 SECTION 13. RECORDS AND AUDITS
	  	DELETED
			
	 13.1
	  	 Record Review.
	  	DELETED
		
	     13.1.1 Records of Seller
	  	DELETED
		
	     13.1.2 Records of Buyer
	  	DELETED
		
	     13.1.3 Overpayment or Underpayment
	  	DELETED
			
	 13.2
	  	 Timing of Record Review
	  	DELETED
		
	 SECTION 14. FORCE MAJEURE
	  	DELETED
			
	 14.1
	  	 Definition of Force Majeure
	  	DELETED
			
	 14.2
	  	 Effect of Force Majeure
	  	DELETED
		
	 SECTION 15. EVENTS OF DEFAULT; REMEDIES
	  	10
			
	 15.1
	  	 Event of Default
	  	10
		
	     15.1.1 Payment Default
	  	10
		
	     15.1.2 Failure to Perform Material Provisions
	  	10
			
	 15.2
	  	 Remedies for Default and Event(s) of Default
	  	10
			
	 15.3
	  	 Specific Performance and Injunctive Relief
	  	11
			
	 15.4
	  	 Waiver of Breach
	  	DELETED

  

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	 15.5
	  	 Seller’s Right to Suspend Deliveries
	  	11
			
	 15.6
	  	 Limitation of Liabilities
	  	DELETED
		
	 SECTION 16. CHOICE OF LAW; DISPUTE RESOLUTION
	  	DELETED
			
	 16.1
	  	 Choice of Law
	  	DELETED
			
	 16.2
	  	 Arbitration
	  	DELETED
			
	 16.3
	  	 AAA Exceptions
	  	DELETED
		
	     16.3.1 Selection of Arbitration Panel
	  	DELETED
		
	     16.3.2 Arbitration Process
	  	DELETED
		
	     16.3.3 Arbitration Award
	  	DELETED
		
	     16.3.4 Arbitration Costs
	  	DELETED
		
	     16.3.5 Enforcement of Award
	  	DELETED
			
	 16.4
	  	 Remedies
	  	DELETED
			
	 16.5
	  	 No Consolidation
	  	11
		
	 SECTION 17. ASSIGNMENTS AND COOPERATION WITH FINANCING
	  	11
			
	 17.1
	  	 Assignment Not Allowed
	  	DELETED
			
	 17.2
	  	 Assignment to Affiliate
	  	DELETED
			
	 17.3
	  	 Assignment By Seller
	  	DELETED
			
	 17.4
	  	 Assignment By Buyer
	  	DELETED
			
	 17.5
	  	 Successors and Assigns
	  	DELETED
		
	 SECTION 18. CONFIDENTIALITY
	  	DELETED
		
	 SECTION 19. NOTICES
	  	DELETED
			
	 19.1
	  	 General Notices
	  	DELETED
			
	 19.2
	  	 Effectiveness
	  	DELETED
			
	 19.3
	  	 Changes in Persons and Addresses
	  	DELETED
		
	 SECTION 20. WAIVERS
	  	DELETED

  

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	 SECTION 21. HEADINGS AND SECTION NUMBERS - CONSTRUCTION
	  	DELETED
		
	 21.1 Headings Not to Affect Construction
	  	DELETED
		
	 21.2 References to Section Numbers
	  	DELETED
		
	 SECTION 22. AMENDMENTS
	  	DELETED
		
	 SECTION 23. COMPLETE AGREEMENT
	  	DELETED
		
	 SECTION 24. COUNTERPARTS
	  	DELETED

  

			
	EXHIBIT A Red River Environmental Products Revised Proposal Pricing
	
	EXHIBIT B Activated Carbon Purchase Commitment
	
	EXHIBIT C Treated Activated Carbon Product Specification

  

 Page v 

 Special Supplemental Conditions 
 THIS ACTIVATED CARBON (“Master Agreement”) is entered into by SOUTHERN COMPANY SERVICES, INC., an Alabama corporation with offices located at
241 Ralph McGill Boulevard, Atlanta, Georgia 30308, acting on its own behalf and as authorized agent for its Affiliates, (hereinafter referred to as “Purchaser”) and ADA-ES, Incorporated, a Colorado corporation and Red River Environmental
Products, LLC, a Delaware corporation with its primary office located at 8100 SouthPark Way, Unit B, Littleton, CO 80120 (hereinafter referred to as “Supplier”). This Master Agreement shall become effective on the date it is executed by
the later of Purchaser and Supplier (“Effective Date”). WHEREAS, Seller is developing an activated carbon manufacturing facility in Coushatta, Louisiana which is targeted for commercial operation by the end of the 1st quarter of 2010;

 WHEREAS, Seller desires to fulfill its obligations under this Agreement (i) by manufacturing Carbon at its Louisiana facility and
(ii) by selling such Carbon to Buyer in accordance with the terms, and subject to the conditions, of this Agreement; 
 WHEREAS, Buyer
desires to purchase from Seller, and Seller desires to sell to Buyer, Carbon in the amounts and upon the terms and conditions set forth in this Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants and obligations stated in this Agreement, the receipt and sufficiency of which the Parties acknowledge, Seller and Buyer hereby agree as follows: 
 SECTION 1. DEFINED TERMS 
 The words and phrases
listed in Section 1 shall have the meanings ascribed to them in Section 1 wherever they appear in this Agreement as defined terms, which shall be indicated by initial capital letters on each word. Capitalized words and phrases contained in
this Agreement that are not listed in Section 1 of this Agreement shall be defined in the particular Section(s) in which they are used or if defined elsewhere in the Contract then shall have such meaning. 
 “Additional Pounds” shall have the meaning given in Section 4.4. 
 “Adjustment Index” means the United States Consumer Price Index. 
 “Agreement” means this Activated Carbon Supply Agreement and all modifications and supplements hereto implemented in
accordance with this Agreement. 
 “Annual Nomination” refers to the total number of Pounds of Carbon that
Buyer instructs Seller to deliver during each Contract Year, in accordance with Section 4.2 of this Agreement. 
 “Base Price” shall have the meaning given in Section 9.2.1. 
 “Billing
Price” shall have the meaning given in Section 9.2.3. 
  

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 “Business Day” shall mean any Day other than a Legal Holiday.

 “Buyer” shall have the meaning set forth in the Preamble to this Agreement and includes Buyer’s
successors and permitted assigns under this Agreement. 
 “Carbon” shall mean the activated carbon supplied
by Seller to Buyer hereunder, which shall have the specifications and quality characteristics set forth in Exhibit C and the Technical Specifications for Activated Carbon 
 “Contract Price” shall have the meaning given in Section 9.1. 
 “Carbon Purchase Commitment” shall be the minimum purchase commitment set forth in Exhibit B 
 “Contract Year” means (i) the period beginning on the Effective Date and ending on December 31 of such
calendar year for the first Contract Year, and (ii) for each other calendar year during the Term, the annual period beginning on January 1 and ending on December 31 of such calendar year except that if the Agreement is terminated in
accordance with the terms hereof in the middle of the year, the last Contract Year ends on the effective date of termination. 
 “Day” shall mean calendar day unless the context in which the term “day” is used clearly indicates that a Business Day is indicated. The word day shall have such meaning whether or not the initial letter is
capitalized. 
 “Effective Date” shall have the meaning given in Section 2.1. 
 “Event of Default” shall have the meaning given in Section 15.1. 
 “Event of Force Majeure” shall have the meaning given in Section 14.1. 
 “Excuse Event” shall have the meaning given in Section 4.1 
 “Extension Period” shall have the meaning given in Section 2.4. 
 “First Year” shall have the meaning given in Section 4.2. 
 “Force Majeure” shall have the meaning given as defined in the General Conditions of the Contract for the Purchase of
Chemical and/or Gas Products. 
 “Force Majeure Period” shall have the meaning given in as defined in the
General Conditions of the Contract for the Purchase of Chemical and/or Gas Products. 
 “Governmental
Authority” shall mean any nation or government (including, without limitation, the government of the United States), any state, county, municipal or other political subdivision thereof and any Person exercising legislative, judicial,
regulatory or administrative functions of or pertaining to the government. 
  

 Page 2 

 “Legal Holiday” shall mean Saturday, Sunday or any Day on which banking
institutions in New York, New York are authorized by law, regulation or executive order to remain closed. 
 “Notice” shall mean a notice given in accordance with and complying with the requirements of Section 19. 
 “Party” shall mean either Buyer or Seller and “Parties” means both Buyer and Seller. 
 “Person” shall mean any individual, limited liability company, partnership, corporation, association, business trust, or other entity or Governmental Authority. 
 “Point of Delivery” means F.O.B. Buyer’s Facility. 
 “Seller” shall have the meaning set forth in the Preamble to this Agreement and includes Seller’s successors and
permitted assigns under this Agreement. 
 “Seller’s Facility” means Seller’s carbon production
facility located in Coushatta, Louisiana 
 “Starting Delivery Date” shall have the meaning given in
Section 2.2. 
 “Term” shall have the meaning given in Section 2.3. 
 “Poundage Variations” shall have the meaning given in Section 4.3. 
 SECTION 2. CONTRACT TERM 
 2.1 Effective Date. The
“Effective Date” shall be April 24, 2008. 
 2.2 Starting Delivery Date. At least sixty (60) days before the May 1,
2009, Buyer shall provide Notice to Seller of the date on which Carbon deliveries will commence under this Agreement (the “Starting Delivery Date”) which date shall be a Business Day. 
 2.3 Initial Term. The “Initial Term” of this Agreement shall begin on the Effective Date
and shall continue thereafter to and including December 31 of the Contract Year in which the fifth (5th) anniversary of the Starting
Delivery Date occurs, unless earlier terminated in accordance with this Agreement, or unless extended pursuant to Section 2.4. 
 2.4 Term
Extensions. The Initial Term may be extended for up to two (2) additional five (5) year extension periods (each an “Extension Period” and collectively with the Initial Term, the “Term”) if on or before
January 1 of the last Contract Year of the Initial Term and January 1 of the last Contract Year of the first Extension Period, provided that Seller provides Notice to Buyer of the pricing and escalation methodology offered for the next
Extension Period, and provided that Buyer accepts such pricing and escalation in writing by April 1 of the same Contract Year. 
 SECTION 3. OUTLINE
OF THE OBLIGATIONS OF THE PARTIES 
 3.1 Purpose. The purpose of this Section 3 is to state in brief form a summary of the obligations of the
Parties under this Agreement. Notwithstanding this Section 3, Buyer and Seller expressly intend that all the promises, covenants and other obligations contained in any 

  

 Page 3 

 
portion of this Agreement shall be performed as fully and faithfully as the obligations stated in this Section 3. 
 3.2 Obligations of Seller or Seller’s Affiliate(s). Subject to the terms and conditions of this Agreement, Seller or Seller’s Affiliate(s) shall perform
the following obligations: 
 3.2.1 Provide Carbon to the Buyer of the quality specified in Exhibit A and the Technical Specification
for Activated Carbon and in the quantities specified in Exhibit B in accordance with the schedules established pursuant to this Agreement. 
 3.2.2 Issue invoices for Carbon as specified by this Agreement. 
 3.2.3 Maintain adequate books and records with
respect to its obligations and performance under this Agreement and provide various reports as mutually defined and agreed to 
 3.2.4
Seller may perform its obligations hereunder directly or cause such obligations to be performed by any of its Affiliates, contractors or other designees provided that Seller shall at all times remain responsible to Buyer for the full and timely
performance of its obligations hereunder. 
 3.3 Obligations of Buyer. Subject to the terms and conditions of this Agreement, Buyer shall perform the
following obligations: 
 3.3.1 Except in connection with an Excuse Event, purchase the full Carbon Purchase Commitment set forth in
Exhibit B of this Agreement and accept delivery of such Carbon in accordance with the schedules established pursuant to this Agreement. 
 3.3.2 Pay the applicable Contract Price for Carbon delivered and accepted in accordance with this Agreement and any other amounts owed by it hereunder as and when due in accordance with this Agreement. 
 SECTION 4. CARBON QUANTITIES AND DELIVERY SCHEDULES 
 4.1 Quantity
Obligations. Buyer shall purchase the minimum quantities specified in Exhibit B (the “Carbon Purchase Commitment”) from Seller pursuant to this Agreement except to the extent (a) Seller is unable to deliver all required Carbon for
the Carbon Purchase Commitment in accordance with this Agreement, (b) Seller is in an Event of Default, (c) Force Majeure prevents Seller from supplying Buyer with sufficient Carbon to fulfill the Carbon Purchase Commitment, or
(d) Buyer is unable to accept Carbon due to Force Majeure (each an “Excuse Event”). In the case of an Excuse Event, Buyer’s Carbon Purchase Commitment shall be equitably reduced to account for such event provided
however, that in the event an Excuse Event leads to termination of this Agreement in accordance with its terms, the Carbon Purchase Commitment will terminate upon such termination. Subject to the Carbon Purchase Commitment and terms and conditions
of this Agreement, during each Contract Year, Seller shall tender to Buyer at the Point of Delivery and Buyer shall purchase from Seller, the total quantity of Carbon specified in Buyer’s Annual Nomination pursuant to Section 4.2, as such
Annual Nomination may be revised from time to time in accordance with Section 4.3 and other applicable provisions 

  

 Page 4 

 
of this Agreement; provided that Buyer’s Annual Nomination shall at all times be consistent with achieving Buyer’s full Carbon Purchase Commitment
during the Term of this Agreement except to the extent that Buyer is not obligated to purchase such full Carbon Purchase Commitment due to an Excuse Event. 
 4.2 Annual Nominations. At least sixty (60) Days prior to the Starting Delivery Date the Parties shall mutually agree on a start-up schedule and the amount of Carbon to be delivered on a monthly basis through the remainder
of the Contract Year in which deliveries start (the “First Year”). On or before November 1 of the First Year and each succeeding Contract Year, Buyer shall nominate the Poundage to be delivered in the following Contract
Year, broken down into monthly amounts. Each such Annual Nomination shall be no less than a minimum of Pounds (the “Annual Minimum”) as specified in Exhibit B and not greater than 1.2 times (120%) the Annual Minimum (the “Annual
Maximum”) Pounds as specified in Exhibit B. Buyer may revise the Annual Nomination within the foregoing limits, and in accordance with the notification requirements, for Poundage Variations specified in Section 4.3. The term
“Annual Nomination” as used in this Agreement shall reflect the actual nomination amount in effect from time to time. Notwithstanding anything in this Agreement to the contrary, in no event shall any Annual Nomination exceed the
Annual Maximum. 
 4.3 Poundage Variations. Buyer may, at its sole discretion and for any reason, increase or decrease any monthly quantity to reflect
its revised expectation of its Carbon needs upon at least thirty (30) Days prior Notice to Seller (“Poundage Variations”); provided that such an increase or decrease shall not cause the Annual Nomination to be less than
the Annual Minimum or exceed the Annual Maximum Pounds. The Parties acknowledge that Buyer shall have the right to reduce the monthly quantity to as low as zero if necessary to accommodate an outage at a facility. 
 4.4 Additional Pounds. In the event that the Buyer desires and/or needs to purchase Carbon in excess of the Annual Maximum for any Contract Year, upon request of
Buyer, Seller shall, in good faith, determine whether the additional Pounds (the “Additional Pounds”) can be supplied by Seller. If the Additional Pounds are not available for supply to Buyer (the “Declined
Pounds”), then it shall promptly (and, in any event, within ten (10) Days) provide Notice thereof to Buyer. 
 SECTION 5. PRODUCT
WARRANTY 
 5.1 Supplier warrants that all Carbon delivered to Purchaser under this Agreement shall conform strictly to the quality specifications
set forth in Exhibit C and the Technical Specification for Activated Carbon. Carbon shall be tested in accordance with the testing protocols set forth in Exhibit C. In the event that any Carbon delivered hereunder does not conform to the foregoing
warranty, Seller shall promptly provide, at Seller’s sole expense, replacement Carbon in a quantity to replace any unused quantity of out of specification Carbon and Seller shall remove, any out of specification and contaminated carbon at
Buyers request and option. To the extent out of specification Carbon is used by Buyer, Seller shall compensate Buyer for the diminished value of the out of specification carbon by providing a credit to Seller’s invoice for the difference in
value of the out of specification Carbon, and to the extent, if any, that the out of specification carbon has damaged the carbon injection equipment or any other 

  

 Page 5 

 
equipment at Buyer’s plant Seller shall repair such damage promptly or reimburse Buyer for the reasonable cost of such repair. The foregoing remedies
shall be the sole remedies for breach of the foregoing warranty. 
 SECTION 6. SOURCE OF CARBON 
 6.1 Source of Carbon. The Carbon delivered pursuant to this Agreement shall be manufactured by the Seller at Seller’s Facility provided however, that upon
notice to Buyer, Seller may provide Carbon from other sources for interim periods or if other events not reasonably foreseeable cause a temporary outage or significant production reduction at the Seller’s Facility. Seller shall be obligated to
make all commercially reasonable efforts to minimize the period of such interim supply period, and except for disruptions caused by Force Majeure, Seller shall be responsible for any additional transportation/shipping costs due to the alternative
source location. 
 SECTION 7. DELIVERY OF CARBON 
 7.1
Point of Delivery. The “Point of Delivery” shall be Buyer’s Facility. 
 7.2 Title and Risk of Loss. Title and risk
of loss and damage to Carbon shall pass to Buyer when Carbon passes Buyer’s Carbon unloading valve. Seller warrants that it has and will pass to Buyer full title to such Carbon free and clear of all liens and encumbrances. Seller assumes no
liability for the Carbon after title and risk of loss pass to Buyer, except for out of specification Carbon and/or as otherwise specifically provided in this Agreement. 
 SECTION 8. TRANSPORTATION OBLIGATIONS 
 8.1 Transport. Unless otherwise agreed Seller shall arrange for the
Carbon’s transport by truck to and the offloading at the Point of Delivery. Such trucks shall be of sufficient capacity to accommodate the transport of the Annual Nominations made (and adjusted) pursuant to this Agreement. Buyer shall pay all
of the documented and reasonable costs for such shipment from Seller’s Facility to the Point of Delivery, which costs shall be directly billed to Buyer by the shipping companies to the extent possible. Seller shall at all times comply with
Buyer’s reasonable requests regarding selection and management of shipping and shall provide Buyer access to all of Seller’s documents and records regarding shipment costs and expenses. Seller shall be responsible for unloading of trucks
at Buyer’s facility. Seller shall use or cause to be used trucks that are in good condition, suitable for activated carbon transport, and ready to load. 
 SECTION 9. PRICE OF CARBON 
 9.1 Contract Price. The Contract Price for any calendar month after the Starting Delivery Date is an
amount equal to (without duplication) (i) the Billing Price (determined as provided in Section 9.2), multiplied by (ii) the number of Pounds of Carbon delivered during the month. 
 9.2 Calculation of Billing Price. 
  

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 9.2.1 Base Price. The Base Price for Carbon sold by Seller to Buyer in accordance with this
Agreement (exclusive of shipping costs covered by section 8 above) shall be determined in accordance with Exhibit A. 
 9.2.2 Inflation
Adjustment. The Base Prices shall be adjusted annually as set forth in Exhibit A to reflect inflation. The Inflation Adjustment will be the increase in the United States Consumer Price Index, as published from time to time by the United States
Department of Labor, Bureau of Labor Statistics (the "CPI-U”-All Urban Consumers) To allow early budgeting for Contract Year 2011, the Billing Price shall be the Base Price adjusted for each percentage point of change, or proportionately for
fractional parts of a percentage point of change, to reflect cumulative changes in the CPI between May 2009 and May 2010 (minimum 0%—maximum 5%). This new price will become effective January 1, 2011 and this methodology will be used
for all subsequent periods 
 9.2.3 Billing Price. The Billing Price for any year shall be the Base Price as adjusted for inflation
under section 9.2.2. 
 9.2.4 Notice of Calculations. Seller shall calculate the Inflation Adjustment to the Base Billing Price
pursuant to Section 9.2.2 for each Contract Year and provide Notice to Buyer of the Billing Price to be applicable for such Contract Year prior to January 15 of such year. Seller’s Notice shall provide sufficient detail regarding how
such calculations were made. 
 9.3 Taxes, Fees and Royalties. Except for domestic sales and use taxes, all applicable Federal, State and other
governmental division taxes (or, if applicable, all foreign taxes) levied against the Seller and/or the Carbon shall be included in the Contract Price. In addition, all taxes or contributions for unemployment compensation, social security, labor and
any other laws with respect to Seller and its employees, now or hereafter effective shall also be included in the Contract Price. Domestic taxes levied on sales or use of the Carbon sold hereunder shall not be included in the Contract Price and will
be compensated for or paid by Buyer separately to the extent of legal requirements only. 
 9.4 Annual Reconciliation of Carbon Purchase Quantity.
Within sixty (60) days of the end of each Contract Year, the Seller shall total all deliveries of Carbon to Buyer and determine the annual quantity of Carbon actually delivered (“Annual Delivered Amount”). If the Annual Delivered
Amount is less than the Annual Minimum, then Buyer shall pay to Seller the amount calculated by taking the difference between the Annual Minimum and the Annual Delivered Amount (the “Annual Shortfall”) and multiplying that by the Billing
Price for the year, and Seller shall deliver to Buyer an amount of Carbon equal to the Annual Shortfall such delivery to be completed as soon as reasonably practical depending on the quantity of the Annual Shortfall and Seller’s then available
production capacity. In the case that the first Contract Year after commencement of deliveries is not a full calendar year, the determination of the Annual Minimum shall be appropriately prorated to reflect the actual period of deliveries (e.g. if
deliveries commence on June 1 then Annual Minimum would be one half the Annual Minimum specified in 4.2). 
  

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 9.5 Rounding. Unless otherwise specifically provided by this Agreement, the values used to perform the
calculations prescribed by this Agreement shall be rounded to three decimal places. For invoicing purposes, the dollar amounts of charges and credits shall be rounded to the nearest cent. For purposes of adjusting values in accordance with this
Section 9, the Adjustment Index shall be rounded to the nearest hundredth of an index point. The annual percentage changes for the Adjustment Index shall be rounded to the nearest hundredth of a percentage point. The Base Price adjusted
pursuant to Section 9 shall be rounded to two (2) decimal places. 
  

	9.6	End of Initial Term Reconciliation of Carbon Purchased versus Carbon Purchase Commitment: At the end of the Initial Term of the Agreement, the actual quantity of Carbon
delivered to Buyer (the “Actual Carbon Purchase”) plus the quantity, if any, of Annual Shortfalls paid for by Buyer and delivered by Seller pursuant to 9.4 above for failure to meet Annual Minimums (collectively the Actual Carbon Purchase
plus the quantity of all paid for Annual Shortfalls total the “Purchased Carbon”) shall be reconciled against the quantity of the Carbon Purchase Commitment given by Buyer. If the Purchased Carbon quantity is less than the Carbon Purchase
Commitment ( a “Purchase Deficit”), Buyer shall pay to Seller an amount equal to the Billing Price times the Purchase Deficit ( the “Deficit Payment”) and Seller shall deliver to Buyer an amount of Carbon equal to the Purchase
Deficit such delivery to be completed as soon as reasonably practical depending on the quantity of the Purchase deficit and the Seller’s then available production capacity. Such payment and delivery shall be Seller’s sole and exclusive
remedy for Buyer’s failure to meet its Carbon Purchase Commitment, and Seller’s consequent loss of revenues. In the event that the Purchased Carbon exceeds the Carbon Purchase Commitment, the parties shall have no further obligations to
each other hereunder. 

 shall not affect the validity or the enforceability of the remainder of this Agreement. 
 SECTION 12. WEIGHING, SAMPLING, AND ANALYSIS 
 12.1 Procedures.
Weighing, sampling, and analysis of the Carbon tendered for delivery shall be carried out in accordance with the provisions of this Section 12. 
 12.2 Duties to Sample Carbon. Seller shall collect samples at Seller’s Facility in accordance with the testing protocol set forth in Exhibit 1. The sampling shall be conducted at the Seller's Facility and in a statistically
reliable method that is in compliance with procedures approved by the American Society for Testing and Materials (“ASTM”). Seller shall, subject to the protocols set forth in Exhibit 1, perform or cause to be performed an analysis
of each lot or batch of Carbon produced by Seller to determine the characteristics of the Carbon (the “Analysis”). The methods and procedures to be used in the sampling process and laboratory analysis shall be in compliance with
those approved by Buyer and the ASTM, or such other methods and procedures mutually agreed to in writing by the Parties. Unless Buyer requests an independent laboratory analysis pursuant to Section 12.5.3, the results of each Analysis shall be
deemed the final analysis, be binding as the analysis for all quality specifications. The foregoing notwithstanding, the Buyer has the right at any time to conduct sampling and analysis 

  

 Page 8 

 
of Carbon delivered to Buyer and if such testing reveals a discrepancy with the results obtained by Seller, the Parties shall confer and resolve any issues
in good faith. 
 12.3 Duties of Seller to Weigh Carbon. 
 12.3.1 Duty to Weigh; Use of Weighing Data. Seller shall weigh or cause to be weighed all Carbon at Seller’s Facility by using truck scales to obtain the inbound unloaded weight of such trucks delivering
Carbon and then using the same truck scales to obtain the outbound loaded weight of such trucks delivering Carbon. A representative of Buyer may be present at each weighing. The weight of Carbon thus determined shall be accepted as the Poundage to
be used in determining the quantity of Carbon for which invoices are to be rendered and payments made in accordance with Section 10, subject to Buyer’s right to dispute such determinations. 
 12.3.2 Inspection and Certification of Scales. Seller will have an independent scale inspector inspect, test, calibrate and certify the truck
scales annually at its cost. A representative of Buyer may be present at the annual inspection, test and calibration. Buyer has the right at its cost to have an independent testing agency confirm the accuracy of Seller’s scales at reasonable
intervals more frequently than annually, but not to exceed monthly unless the scales are found repeatedly to be out of calibration, in which case the scales may be tested as repeatedly requested by Buyer. 
 12.3.3 Seller’s Certification of Scales and Weights; Correction of Errors. Buyer shall certify the scale readings and the weights indicated
thereon shall be used for all Poundage’s under this Agreement. If as a result of any inspection by an independent scale inspector as provided for in Section 12.3.2, the scales are found to be in error in excess of normal scale tolerance,
which is understood to be +/-0.5%, the scales shall be corrected and the Poundage for the period since the last scale inspection shall be adjusted either up or down, as the case may be, for 50% of any correction made to the scales and an
appropriate credit or debit line item shall be included in the next regularly scheduled invoice. 
 12.4 Failure of Weighing, Sampling or Analytical
Procedures. 
 12.4.1 Substitute Procedures. In the event Seller is unable for any reason to perform the Analyses or Seller is
unable to perform the weighing required by this Agreement, the Parties shall act in good faith to agree on reasonable substitute procedures to be followed by the Parties. 
 12.4.2 Inaccurate or Unreliable Sample or Final Analysis. In the event that the sampling or analysis of Carbon by Seller in the amount of one or more truckloads was inaccurate or unreliable for any reason,
Seller shall certify the average for the preceding and succeeding truckloads which are reliable and accurate and use this average in lieu of the data for any unit delivered determined to be unreliable or inaccurate, provided that all such truckloads
of Carbon were manufactured during the same time period from raw materials from the same source. 
 12.5 Rights of Buyer and Seller in Weighing, Sampling
and Analysis. 
 12.5.1 Results of Sampling and Analysis Binding. Subject to Section 12.5.3 below, the reports of sampling
and analysis made by Seller shall be binding on the Parties for all 

  

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purposes under this Agreement and the performances of the Parties under this Agreement shall be based on such reports, subject to Buyer’s right to
dispute such determinations. A copy of the results of each Analysis of Carbon shall be sent by Seller to Buyer with each monthly invoice. 
 12.5.2 Independent Analysis of Samples. Each representative unit sample collected for analysis shall be divided into three parts, and two of these parts shall be stored in suitable containers at the testing facility for a period of
at least sixty (60) Days. Seller shall deliver to Buyer one part of such sample for purposes of independently evaluating the performance or verifying the analysis of Seller. 
 12.5.3 Referee Analysis. If Buyer’s analysis of a sample it has received pursuant to Section 12.5.2 differs from the analysis that
Seller performs pursuant to Section 12.2 by more than the ASTM standard for reproducibility, Seller shall have the right to have the quality of the lot or batch of Carbon in question determined by an independent laboratory chosen jointly by
Buyer and Seller. Seller shall exercise this right, if at all, within sixty (60) Days after it receives the part sample referenced in Section 12.5.2. The cost of the independent laboratory analysis shall be borne equally by the Parties.
Such determination shall be deemed the Final Analysis. 
 12.5.4 Observation of Sampling and Analysis. Each Party shall have the right
to have a representative present at any and all weighing, sampling, and analysis procedures. Buyer or Seller and their representatives shall also have the right to inspect and examine the performance of any equipment employed in these procedures at
all reasonable times. 
 SECTION 15. EVENTS OF DEFAULT; REMEDIES 
 15.1 Event of Default. An event of default (“Event of Default”) under this Agreement shall be deemed to exist upon the occurrence of any one or more of the following events: 
 15.1.1 Payment Default. Failure by either Party to pay or cause to be paid any undisputed amount that is due and payable under this Agreement and
such failure continues for a period of ten (10) Days after Notice of such nonpayment is delivered to the defaulting Party. 
 15.1.2
Failure to Perform Material Provisions. Material failure by either Party to perform any provision of this Agreement other than as described in Sections 15.1.1 and (a) such failure continues for a period of thirty (30) Days after
Notice of such failure is delivered to such Party or (b) if such failure cannot reasonably be cured within such thirty (30) days and such Party commences within such thirty (30) Days and shall thereafter continuously proceed with all
due diligence to cure such failure, such failure is not cured within such longer period (not to exceed ninety (90) Days) as shall be necessary for such Party to cure the same with all due diligence. 
 15.2 Remedies for Default and Event(s) of Default. Upon the occurrence and during the continuation of any Event of Default hereunder, the Party not in default
shall have the right, at its option, to terminate this Agreement upon ten (10) Days’ advance Notice to the defaulting Party, unless the Event of Default is cured within such ten (10) Day period, and to pursue any other remedies
provided under this Agreement or now or hereafter existing at law or in equity or otherwise. Without limiting the foregoing, the non-defaulting Party shall be entitled to recover 

  

 Page 10 

 
from the defaulting Party its “cover costs” associated with a failure to perform or Event of Default or a termination due to an Event of Default.
As used above “cover costs” means (i) with respect to Buyer, (a) the additional cost above what would have been paid to Seller for Buyer’s procuring and transporting equivalent replacement Carbon due to a failure to
perform or Event of Default by Seller (and a reduction in the Carbon Purchase Commitment equivalent to the cover quantities purchased) and (ii) with respect to Seller, costs of procuring and lost revenues resulting from the sale to a
replacement purchaser for the same quantity of equivalent Carbon due to a failure to perform or Event of Default by Buyer. 
 15.3 Specific Performance
and Injunctive Relief. Each of the Parties shall have and retain under this Agreement all rights and remedies existing in their favor, at law or in equity, including (without limitation) the right to bring actions for specific performance and
injunctive and other equitable relief to enforce or prevent a breach or violation of this Agreement. All such rights and remedies shall be cumulative to the extent permitted by law. 
 15.5 Seller’s Right to Suspend Deliveries. If at any time during the continuation of a payment-related Event of Default as described in Section 15.1.1 on the part of Buyer has occurred and is
continuing, then until the date the Event of Default is cured Seller may suspend deliveries of Carbon hereunder upon two (10) Business Days’ prior Notice to Buyer. If the payment-related Event of Default described above continues after
such two (10) Business Day period, Seller’s suspension will become effective. If the suspension continues for more than ten (10) Days, then notwithstanding the subsequent remedy of such Event of Default, Seller shall not be required
to resume deliveries of Carbon hereunder for a reasonable period of time taking into account alternative supply arrangements and operational considerations that Seller may have undertaken as a result of such Buyer non-performance; provided, however
that in no event shall Seller take longer than ten (10) Days following the date such Event of Default is cured to resume deliveries. 
 16.2 No
Consolidation. Unless the Parties otherwise agree, no dispute, controversy or claim hereunder shall be consolidated with any other proceeding involving any third party. 
 SECTION 17. COOPERATION WITH FINANCING 
 17.6 Cooperation with Financing. Seller contemplates obtaining debt
financing for all or part of the cost of Seller’s Facility consisting of one or more construction or permanent loans to be secured by all or a portion of Seller’s Facility and its rights under this Agreement and certain equity
contributions from the shareholders of Seller (together the “Financing”). 
  

 Page 11 

 Exhibit A 
 Red River Environmental Products 
 Revised Proposal Pricing 
  

							
	Term:	  	Five (5) years
		
	Annual Commitment:	  	Usage schedule to be determined based on total commitment and planned consumption. Should regulations require additional volume commitments, we would be available to modify this
agreement to accommodate these changes.
		
	Pricing:	  	Firm Pricing for Carbon delivered in 2009 and 2010 will be $ * per pound based Southern Company’s total contract commitment through 2013. The table below represents
the pricing for the Total Contracted Pounds.

					
	 Total Volume
	  	Treated PAC	  	PAC
	30,000,000	  	$*	  	$*
	20,000,000	  	$*	  	$*
	10,000,000	  	$*	  	$*

							
		
	Pricing Terms:	  	Net 30 Days
		
	Price Escalation:	  	2011 Carbon Pricing will be calculated and based on previous year CPI (2010 CPI) Utilizing CPI-U – All Items (CPI – All Urban Consumers) percent movement with a cap of
+/- 5% for each year beginning in 2011. This is available mid-January each year http://www.bls.gov/cpi/)
		
	Call Option:	  	Option to increase purchased amount up to an additional 50% of committed annual volume per the above price schedule
		
	Call Option Period:	  	Call Option to be exercised prior to *
		
	Delivery:	  	Product will be sold DESTP&A Southern Company Plant
		
	Delivery Cost:	  	Red River Environmental Products, LLC will manage third party logistics.
		
		  	Direct pass through of costs to Southern Company
		
		  	Prepaid and Added to Invoice
		
	Product Specification:	  	Exhibit C

  

 D-1 

 EXHIBIT B 
 ACTIVATED CARBON PURCHASE COMMITMENT 
 [REQUIREMENTS OR MINIMUM QUANTITY] 
 Southern Company Generation 
 Annual
Estimated ACI Useage 
 As of 4/24/2008 
 Capacity Factors based on the October version of the 2008 Energy Budget 
 PAC injection to stop if alternate technology is used in
conjunction with scrubber. So 0% PAC after scrubbers come online 
 Scherer will continue to use ACI in the baghouse over the entire period

 Capacity Factors are Forecast Baghouse and Pac capacity factors not unit capacity factors 
 Scherer U1 and U4 will not have baghouse online in 2009 therefor 0 put as capacity factor 
 EFOR rate=        1.00% 
  

																												
	 	  	Assumed	  	Capacity Factor	 	 	 	  	Annual ACI Use (tons)
	 Unit
	  	ACI Rate (lb/hr)	  	2009	 	 	2010	 	 	2011	 	 	2012	 	 	2013	 	 	2009	  	2010	  	2011	  	2012	  	2013
	 Scherer 1
	  	333	  	0	%	 	87	%	 	74	%	 	87	%	 	74	%	 	*	  	*	  	*	  	*	  	*
	 Scherer 2
	  	333	  	58	%	 	87	%	 	74	%	 	87	%	 	74	%	 	*	  	*	  	*	  	*	  	*
	 Scherer 3
	  	333	  	58	%	 	65	%	 	87	%	 	80	%	 	0	%	 	*	  	*	  	*	  	*	  	*
	 Scherer 4
	  	333	  	0	%	 	51	%	 	88	%	 	80	%	 	88	%	 	*	  	*	  	*	  	*	  	*
											
		  		  			 			 	Total (Tons)	 	 			 	*	  	*	  	*	  	*	  	*
											
		  		  			 			 	Total (Pounds)	 	 			 	*	  	*	  	*	  	*	  	*
		  		  			 			 			 			 			 		  		  		  		  	37,892,869

  

 D-2 

 

 
 EXHIBIT C 
 TREATED ACTIVATED CARBON PRODUCT SPECIFICATION 
 Exhibit C 
 Treated Powdered Activated Carbon 
 Powdered Activated Carbons Designed for Mercury Control Applications 
 ADA-ES 
 ADA-ES’ provides a chemically enhanced powdered activated carbon that has been manufactured specifically for removing mercury
emissions from the flue gases of coal-fired power plants. This carbon is produced from low ranking lignite or sub bituminous coals, the feedstock’s that have shown to produce the most effective activated carbons in full scale testing at power
plants. 
 Product Name Treated Powdered Activated Carbon 
 Description Chemically enhanced powdered activated carbon 
 Product Specifications 
 Moisture 12% Maximum as packed 
 Size 95% minus 325 mesh 
 Typical Properties 
 Bulk Density Tamped g/ml 0.57 - 0.64 Pounds/ft.3 36 - 40 
 Surface Area 450 - 700M2/gm 
 Iodine Number 400-650 
 Percent Active Chemical 4-6% 
 Ignition Temperature Greater than 400 C 
 Packaging and Delivery 
 ADA-ES carbon can be purchased in 1,000 lb. super
sacks or delivered to the plant site by 40,000 lb. bulk pneumatic trailer trucks. 
 Safety Warning 
 If powdered activated carbon becomes wet while in a confined or closed space, it may deplete the oxygen levels from the air. The oxygen
content of the air in the confined space should be determined before workers are allowed to enter such a space. All applicable low oxygen work rules and procedures should be followed. 
 Avoid excessive inhalation of activated carbon dust. Appropriate protective equipment should be worn when working with activated carbon,
including eyewear and respiratory protection. 
 © ADA Environmental Solutions, 2008 [002-3/08] 
 D-3

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