Document:

Engineering, Procurement and Construction Agreement, dated as of May 5, 2008

 Exhibit 10.3 
  

					
		  	PORTIONS OF THIS EXHIBIT MARKED BY * * * HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
	  	FOIA CONFIDENTIAL TREATMENT REQUESTED

 Final Execution 
 ENGINEERING AND CONSTRUCTION AGREEMENT 
 between 
 DUKE ENERGY CAROLINAS, LLC, as Owner 
 and 
 SHAW NORTH CAROLINA, INC, as Contractor 
 for the 
 CONSTRUCTION OF A COMBUSTION TURBINE COMBINED CYCLE ELECTRICAL
GENERATION FACILITY AT THE BUCK GENERATING FACILITY IN ROWAN COUNTY, NORTH CAROLINA 
 Dated May 5, 2008 
 Confidential 

 Table of Contents 
  

							
	 	  	 	  	 	  	Page
	 1.
	  	DEFINITIONS	  	1
			
	 2.
	  	GENERAL PROVISIONS	  	14
				
		  	 2.1
	  	Intent of Contract Documents	  	14
		  	 2.2
	  	Independent Contractor	  	14
		  	 2.3
	  	Subcontracting; Approved Subcontractors	  	14
		  	 2.4
	  	Assignment of Subcontracts	  	15
		  	 2.5
	  	Interpretation	  	15
		  	 2.6
	  	Inclusion; Order of Precedence	  	16
		  	 2.7
	  	Days	  	17
			
	 3.
	  	CONTRACTOR RESPONSIBILITIES	  	17
				
		  	 3.1
	  	Performance of the Services; Commencement of Work	  	17
		  	 3.2
	  	Professional Standards	  	19
		  	 3.3
	  	Sufficient Personnel	  	20
		  	 3.4
	  	Supervision and Discipline	  	20
		  	 3.5
	  	Contractor’s Key Personnel	  	20
		  	 3.6
	  	Design and Engineering	  	20
		  	 3.7
	  	Quality Assurance Plan	  	21
		  	 3.8
	  	Safety Management Plan	  	21
		  	 3.9
	  	Training	  	21
		  	 3.10
	  	Utility Use	  	21
		  	 3.11
	  	Spare Parts	  	22
		  	 3.12
	  	Subcontractor Presence	  	22
		  	 3.13
	  	Current Records; Record Drawings	  	23
		  	 3.14
	  	Transportation Costs	  	23
		  	 3.15
	  	Facility Manuals	  	23
		  	 3.16
	  	Control of Work	  	23
		  	 3.17
	  	Emergencies	  	24
		  	 3.18
	  	Local Conditions	  	24
		  	 3.19
	  	Use of Site; Owner Access	  	24
		  	 3.20
	  	Compliance with Laws	  	24
		  	 3.21
	  	Permits and Approvals	  	25
		  	 3.22
	  	Periodic Reports and Meetings	  	25
		  	 3.23
	  	Signage	  	26
		  	 3.24
	  	Interference with Traffic	  	26
		  	 3.25
	  	Supply of Water and Disposal of Sewage	  	26
		  	 3.26
	  	Housekeeping	  	26
			
	 4.
	  	OWNER RESPONSIBILITIES	  	26
				
		  	 4.1
	  	Owner’s Representative	  	26

  

 i 

							
		  	 4.2
	  	Access	  	27
		  	 4.3
	  	Permits	  	27
		  	 4.4
	  	Owner Equipment	  	27
		  	 4.5
	  	Fuel and Utilities	  	27
		  	 4.6
	  	Operation and Maintenance Staff	  	27
		  	 4.7
	  	Job Site Rules	  	28
		  	 4.8
	  	Payment	  	28
			
	 5.
	  	EQUIPMENT AND WORKMANSHIP	  	28
				
		  	 5.1
	  	Quality of Equipment and Workmanship	  	28
		  	 5.2
	  	Cost of Tests	  	28
		  	 5.3
	  	Samples	  	28
		  	 5.4
	  	Inspection of Operations	  	28
		  	 5.5
	  	Examination of Work before Covering	  	29
		  	 5.6
	  	Uncovering and Making Openings	  	29
			
	 6.
	  	SCHEDULE	  	29
				
		  	 6.1
	  	Commencement of Work	  	29
		  	 6.2
	  	Schedule Requirements; Updates	  	29
		  	 6.3
	  	 [*]
	  	29
			
	 7.
	  	CONTRACT PRICE; COMPENSATION AND PAYMENT	  	30
				
		  	 7.1
	  	 [*]
	  	30
		  	 7.2
	  	 [*]
	  	32
		  	 7.3
	  	 [*]
	  	34
		  	 7.4
	  	Deficient Invoices and Payments	  	34
		  	 7.5
	  	 [*]
	  	35
		  	 7.6
	  	Final Payment	  	36
		  	 7.7
	  	Certification by Contractor	  	36
		  	 7.8
	  	No Acceptance by Payment	  	36
		  	 7.9
	  	Revenue from Use of Facility	  	37
			
	 8.
	  	CHANGE ORDERS	  	37
				
		  	 8.1
	  	Changes	  	37
		  	 8.2
	  	Change Proposals	  	37
		  	 8.3
	  	Change Orders	  	38
		  	 8.4
	  	Owner Caused Changes	  	38
		  	 8.5
	  	Contractor Proposed Changes	  	38
			
	 9.
	  	FORCE MAJEURE	  	38
				
		  	 9.1
	  	Event of Force Majeure	  	38
		  	 9.2
	  	Notice	  	39
		  	 9.3
	  	Suspension; Termination Due to Force Majeure	  	39

  

 ii 

							
	 10.
	  	MECHANICAL COMPLETION; PERFORMANCE TESTING; SUBSTANTIAL COMPLETION; FINAL COMPLETION	  	39
				
		  	 10.1
	  	Mechanical Completion Inspection	  	39
		  	 10.2
	  	Simple Cycle Mechanical Completion	  	39
		  	 10.3
	  	Performance Testing	  	40
		  	 10.4
	  	Satisfaction of Performance Testing	  	41
		  	 10.5
	  	Substantial Completion Punch List	  	41
		  	 10.6
	  	Simple Cycle Substantial Completion	  	41
		  	 10.7
	  	Combined Cycle Mechanical Completion	  	42
		  	 10.8
	  	Combined Cycle Substantial Completion	  	43
		  	 10.9
	  	Final Completion	  	44
			
	 11.
	  	OWNER’S RIGHT TO OPERATE	  	45
				
		  	 11.1
	  	Owner Operation and Combined Cycle Tie-In Access Date	  	45
		  	 11.2
	  	Owner’s Right to Operate Prior to Satisfaction of Performance Guarantees	  	45
			
	 12.
	  	 [*]
	  	46
				
		  	 12.1
	  	 [*]
	  	46
		  	 12.2
	  	 [*]
	  	47
		  	 12.3
	  	 [*]
	  	48
		  	 12.4
	  	Payment	  	48
			
	 13.
	  	WARRANTY	  	48
				
		  	 13.1
	  	Services Warranty Period	  	48
		  	 13.2
	  	Equipment Warranty Period	  	49
		  	 13.3
	  	Extension of Warranty Periods	  	49
		  	 13.4
	  	Defects	  	49
		  	 13.5
	  	Responsibility for Warranty Work	  	49
		  	 13.6
	  	Title Warranty	  	50
		  	 13.7
	  	Intellectual Property Warranty	  	50
		  	 13.8
	  	Warranty Assistance	  	50
		  	 13.9
	  	Conditions of Warranty	  	50
		  	 13.10
	  	Exclusive Warranties	  	50
			
	 14.
	  	INDEMNIFICATION	  	51
				
		  	 14.1
	  	Contractor’s Indemnity	  	51
		  	 14.2
	  	Owner’s Indemnity	  	51
		  	 14.3
	  	Intellectual Property Indemnity	  	52
		  	 14.4
	  	Indemnity Procedures for Third Party Claims	  	52
			
	 15.
	  	INSURANCE	  	53
				
		  	 15.1
	  	[*] Builder’s Risk	  	53

  

 iii 

							
		  	 15.2
	  	 [*]
	  	54
		  	 15.3
	  	Contractor’s and Subcontractor’s Standard Insurance Requirements	  	56
		  	 15.4
	  	General Insurance Requirements	  	58
		  	 15.5
	  	Insurance Pricing Assumptions	  	59
			
	 16.
	  	PROJECT CREDIT SUPPORT	  	60
				
		  	 16.1
	  	Financial Information	  	60
		  	 16.2
	  	 [*]
	  	60
		  	 16.3
	  	 [*]
	  	60
			
	 17.
	  	LIMITATION OF LIABILITY	  	62
				
		  	 17.1
	  	 [*]
	  	62
		  	 17.2
	  	 [*]
	  	62
			
	 18.
	  	LIENS	  	63
				
		  	 18.1
	  	Liens	  	63
		  	 18.2
	  	Discharge or Bond	  	63
			
	 19.
	  	INTELLECTUAL PROPERTY	  	63
				
		  	 19.1
	  	Delivery of Documentation	  	63
		  	 19.2
	  	Ownership of Rights in Documentation	  	63
		  	 19.3
	  	Ownership of Invention Rights	  	63
		  	 19.4
	  	Disclosure of Documentation	  	64
		  	 19.5
	  	Other Licenses	  	64
			
	 20.
	  	CONFIDENTIAL INFORMATION	  	64
				
		  	 20.1
	  	Confidentiality Obligations	  	64
		  	 20.2
	  	Permitted Disclosures	  	64
		  	 20.3
	  	Publicity	  	65
			
	 21.
	  	ENVIRONMENTAL; HAZARDOUS MATERIALS	  	65
				
		  	 21.1
	  	Material Safety Data Sheets	  	65
		  	 21.2
	  	Facility Use, Storage Removal	  	65
		  	 21.3
	  	Notice of Presence	  	65
		  	 21.4
	  	Labeling; Training	  	65
		  	 21.5
	  	Handling, Collection, Removal Transportation and Disposal	  	65
		  	 21.6
	  	Notice of Discovery	  	66
		  	 21.7
	  	Policies and Procedures	  	66
		  	 21.8
	  	Asbestos Containing Products	  	66
		  	 21.9
	  	Pre-Existing Hazardous Material	  	66

  

 iv 

							
	 22.
	  	TITLE; RISK OF LOSS	  	67
				
		  	 22.1
	  	Transfer of Title; Security Interest	  	67
		  	 22.2
	  	Risk of Loss	  	67
		  	 22.3
	  	Contractor Tools	  	67
			
	 23.
	  	SUSPENSION; DEFAULT; TERMINATION	  	67
				
		  	 23.1
	  	Suspension	  	67
		  	 23.2
	  	Contractor Events of Default	  	68
		  	 23.3
	  	Owner Remedies	  	69
		  	 23.4
	  	Owner Event of Default	  	69
		  	 23.5
	  	Contractor Remedies	  	70
		  	 23.6
	  	Termination for Convenience	  	70
		  	 23.7
	  	Termination for Force Majeure	  	71
		  	 23.8
	  	Effect of Termination	  	71
			
	 24.
	  	SAFETY; INCIDENT REPORTING	  	71
				
		  	 24.1
	  	Environmental, Health and Safety Programs	  	71
		  	 24.2
	  	OSHA and Other Laws	  	72
		  	 24.3
	  	Worksite Safety	  	72
		  	 24.4
	  	Dangerous Materials	  	73
		  	 24.5
	  	Loading	  	74
		  	 24.6
	  	Cooperation in Governmental Investigation	  	74
		  	 24.7
	  	Audit	  	74
			
	 25.
	  	QUALIFICATIONS AND PROTECTION OF ASSIGNED PERSONNEL	  	74
				
		  	 25.1
	  	Contractor’s Personnel	  	74
		  	 25.2
	  	Drug and Alcohol Testing	  	75
		  	 25.3
	  	Training of Employees	  	75
		  	 25.4
	  	Compliance with Employment Laws; Policies	  	75
		  	 25.5
	  	Substitution	  	75
			
	 26.
	  	RECORDS AND AUDIT	  	76
				
		  	 26.1
	  	Technical Documentation	  	76
		  	 26.2
	  	Accounting Records	  	76
		  	 26.3
	  	Owner’s Right to Audit	  	76
		  	 26.4
	  	Sales Tax and Privilege Tax Records	  	76
			
	 27.
	  	TAXES	  	77
				
		  	 27.1
	  	Employment Taxes	  	77
		  	 27.2
	  	Sales and Use Taxes on Contractor Tools	  	77
		  	 27.3
	  	Sales and Use Tax on Equipment; Privilege Tax	  	77
		  	 27.4
	  	State Property Taxes	  	78

  

 v 

							
		  	 27.5
	  	Tax Indemnification	  	79
		  	 27.6
	  	Pollution Control Equipment Information	  	79
			
	 28.
	  	DISPUTE RESOLUTION	  	79
				
		  	 28.1
	  	Resolution by the Parties	  	79
		  	 28.2
	  	Arbitration Proceedings	  	79
		  	 28.3
	  	Continuation of Work	  	80
		  	 28.4
	  	Confidentiality	  	80
			
	 29.
	  	MISCELLANEOUS PROVISIONS	  	80
				
		  	 29.1
	  	Governing Laws	  	80
		  	 29.2
	  	Entire Agreement	  	80
		  	 29.3
	  	Successors and Assigns	  	81
		  	 29.4
	  	No Third Party Beneficiaries	  	81
		  	 29.5
	  	Rights Exclusive	  	81
		  	 29.6
	  	No Waiver	  	81
		  	 29.7
	  	Crisis Response	  	81
		  	 29.8
	  	Survival	  	82
		  	 29.9
	  	Severability	  	82
		  	 29.10
	  	Notices	  	82
		  	 29.11
	  	Vienna Convention	  	83
		  	 29.12
	  	Counterparts	  	83

  

 vi 

 EXHIBITS 
  

	
	Exhibit A     Technical Documentation
	
	 Exhibit A-1     Specifications, Scope of Work and Drawings

	
	 Exhibit A-2     Performance Test Procedures and Guarantees

	
	 Exhibit A-3     Schedule of Drawings (SORVD)

	
	 Exhibit A-4     Site Description

	
	Exhibit B     Schedule (Including Key Contractor Schedule Milestones)
	
	Exhibit C     [*]
	
	Exhibit D     List of Contractor Supplied Permits
	
	Exhibit E     List of Owner Supplied Permits
	
	Exhibit F     List of Contractor Key Personnel
	
	Exhibit G
	
	 Exhibit G-1     List of Approved Subcontractors

	
	 Exhibit G-2     List of Subcontracts under [*]

	
	Exhibit H     Credit Support
	
	 Exhibit H-1     [*]

	
	 Exhibit H-2     [*]

	
	Exhibit I     [*]
	
	 Attachment 1     [*]

	
	 Attachment 2     [*]

	
	 Attachment 3     [*]

	
	 Attachment 4     [*]

	
	 Attachment 5     [*]

	
	Exhibit J     Contractor’s T&M Rate Sheet
	
	Exhibit K    Owner’s Drug and Alcohol Testing Policy

  

 vii 
 Duke:         
 Shaw:        

 ENGINEERING AND CONSTRUCTION AGREEMENT 
 This ENGINEERING AND CONSTRUCTION AGREEMENT (the “Agreement”) is entered into as of the 5th day of May, 2008 (the “Effective
Date”), between DUKE ENERGY CAROLINAS, LLC, a North Carolina limited liability company having its principal place of business in Charlotte, North Carolina (“Owner”), and SHAW NORTH CAROLINA, INC., a North Carolina
corporation having its principal place of business in Charlotte, North Carolina (“Contractor” and, together with Owner, collectively the “Parties” and individually a “Party”). 
 RECITALS 
 WHEREAS, Owner has
announced its intent to procure, construct, install and commission a new nominally rated 620 MW combustion turbine combined cycle electric power plant at the Buck Generating Facility (the “Facility”) in Rowan County, North Carolina,
which will consist of (i) two combustion turbine generators, (ii) two natural circulation, duct fired, heat recovery steam generators and (iii) one reheat condensing steam turbine generator (the “Project”);

 WHEREAS, Contractor is engaged in the business of designing, engineering, constructing and commissioning power generating
facilities; and 
 WHEREAS, Owner has entered into the Owner Equipment Contracts for the supply of the Owner Equipment, which
is intended to be installed and commissioned by Contractor; 
 NOW, THEREFORE, in consideration of the recitals, the mutual promises
herein and other good and valuable consideration, the receipt and sufficiency of which the Parties acknowledge, the Parties, intending to be legally bound, stipulate and agree as follows: 
 1. DEFINITIONS 
 The following capitalized words and
phrases used in this Agreement shall have the following meanings unless otherwise noted: 
 “Affiliate” shall mean, with respect to any
Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with such first Person at such time, where “Control” shall mean (a) the
possession, directly or indirectly, of the power to direct or cause the direction of management and policies of a Person, whether through the ownership of voting securities, as a trustee or executor, by contract or credit arrangement, or otherwise,
or (b) the ownership, directly or indirectly, of fifty percent (50%) or more of the equity interest in a Person. 
 “Business Day”
shall mean every Day other than Saturday, Sunday or a legal holiday recognized by the State. 
 “[*]” shall have the meaning set forth in
Section 7.5(a). 
 “Change” shall have the meaning set forth in Section 8.1. 
  

 1 

 “Change in Law” shall mean a change to a Law, or a change in the binding interpretation or application
of a Law after the Effective Date that results in an increase in [*] for Contractor to perform the Work, which increase in [*] Contractor would not have incurred but for this Agreement; provided, however, that a “Change in
Law” shall not include any change to a Law that is enacted by any Government Authority prior to the Effective Date but, by its terms, does not come into effect until after the Effective Date. 
 “Change Order” shall have the meaning set forth in Section 8.3. 
 “[*]” shall have the meaning set forth in Section 12.1(b). 
 “Combined Cycle
Facility” shall mean that portion of the Facility that will be “tied into” the Simple Cycle Facility in order to complete the Facility, as described in the Specifications. 
 “Combined Cycle Mechanical Completion” shall mean that the Combined Cycle Facility shall have achieved all of the conditions set forth in
Section 10.7. 
 “Combined Cycle Substantial Completion” shall mean that the Combined Cycle Facility shall have achieved all of
the conditions set forth in Section 10.8. 
 “Combined Cycle Substantial Completion Date” shall mean the date on which Combined
Cycle Substantial Completion actually occurs. 
 “Combined Cycle Tie-In” shall mean the process required to connect the Combined Cycle
Facility to the interface points of the Simple Cycle Facility. 
 “Combined Cycle Tie-In Access Date” shall mean the date upon which Owner
makes the Simple Cycle Facility available to Contractor for the Combined Cycle Tie-In. 
 “Commissioning” shall mean, with respect to each
of the Simple Cycle Facility and the Combined Cycle Facility, the activities required to be conducted by Contractor pursuant to the terms of this Agreement in order to bring the Simple Cycle Facility or the Combined Cycle Facility (as applicable)
from an inactive condition, when construction is essentially complete, to a state where the Simple Cycle Facility or the Combined Cycle Facility (as applicable) is ready for the commencement of operation, including pre-commissioning, start-up,
individual system and integrated, functional verification and synchronization of all equipment within the Simple Cycle Facility or the Combined Cycle Facility (as applicable). 
 “Confidential Information” shall mean, with respect to any Party, all written, verbal, electronic and other information and documents such Party provides or makes available to the other Party relating
in any way to this Agreement which are marked as being “Proprietary” to such Party at the time of disclosure, or for verbal information reduced to a writing and marked or designated as being “Proprietary” to a such Party within
seven (7) Days after such verbal disclosure. “Confidential Information” shall not include any Documentation or any other information that: (a) was already known to the other Party at the time it was disclosed by such Party;
(b) was available to the public at the time it was disclosed by such Party; (c) becomes available to the public after being disclosed by such Party through no wrongful act of, or breach of this Agreement by, the other Party; (d) is
received by the other Party without restriction as to use or disclosure from a third party; or (e) is 

  

 2 
 Duke:         
 Shaw:        

 
independently developed by the other Party without benefit of any disclosure of information by such Party. 
 [*] 
 [*] 
 “Contract Price” shall mean [*] 
 “Contractor” shall have the meaning set forth in
the first paragraph above and shall include respective successors and permitted assigns. 
 “Contractor Default” shall have the meaning set
forth in Section 23.2. 
 “Contractor Permits” shall have the meaning set forth in Section 3.21. 
 “Contractor’s T&M Rate Sheet” shall mean Contractor’s T&M Rate Sheet attached hereto as Exhibit J. 
 “Contractor’s Project Manager” shall mean the Person whom Contractor designates in Exhibit F to issue and receive communications on
Contractor’s behalf under this Agreement. 
 “Contractor’s Site Representative” shall mean the Person whom Contractor designates
in Exhibit F to represent Contractor at the Site. 
 [*] 
 “Cost Comparison Report” shall mean either, as the context may require: 
 (a) a report for a specified period
which compares the [*] during such period against the [*] or such period, including a breakdown of [*] 
  

 3 
 Duke:         
 Shaw:        

 (b) a report for a specified period which compares the [*] such date against the [*], 
 in each case, together with evidence reasonably required in order for Owner to [*] 
 “Day” shall mean a calendar day, including Saturdays, Sundays, and holidays. 
 “Defects” shall have the meaning
set forth in Section 13.4. 
 “[*]” shall mean the [*] and the [*]. 
 “[*]” shall mean: 
 (a) For Simple Cycle
[*] of the Contract Price; 
 (b) For Combined Cycle [*] of the Contract Price; and 
 (c) For the combined aggregate of the [*] and [*] of the Contract Price. 
 “Design Documents” shall have the meaning set forth in Section 3.6. 
 “Dispute” shall have the meaning set forth in Section 28.1. 
 “Documentation” shall mean such
materials in printed or electronic format that are or are to be delivered hereunder or otherwise agreed by the Parties to be delivered by Contractor to Owner, including Design Documents, specifications (including the Specifications), schedules
(including the Schedule), schematics, drawings (including Final Completion “as built” drawings as specified in Exhibit A-3), blueprints, memoranda, letters, notes, isometrics, computer programs and software, flow charts, logic
diagrams, graphs, studies, system descriptions, lists, charts, diagrams, standards, criteria, assumptions, measurements, procedures (including the Testing Procedure), instructions, reports, test data and results, analyses, calculations, formulas,
computations, plans, empirical and other correlations, models, manuals (including software manuals and Facility Manuals) and training materials, that are necessary for the design, Commissioning, operation, maintenance, modification or
decommissioning of the Facility. 
 “Effective Date” shall mean the date set forth in the first paragraph of this Agreement. 
 “Electrical Output” shall mean the net electrical power, as measured at the high side of the main step-up transformer, that is produced by the Simple
Cycle Facility or the Combined Cycle Facility, as the case may be, in kilowatts (kW) during the Performance Testing, at the test specified operating conditions, and corrected to the base performance conditions set forth herein and in Exhibit
A-2. 
 [*] 
  

 4 
 Duke:         
 Shaw:        

 [*] 
 “[*]
Payments” shall mean those payments which have been made or that are due and payable by Owner to Contractor prior to the Effective Date for those Services as more fully described in the [*]. 
 “Equipment” shall mean any and all material, structure, buildings, apparatus, equipment, spare parts, hardware, goods, tools, supplies, and other
personal property, all as intended to become a permanent part of the Facility, that Contractor furnishes, or is required to furnish, hereunder in accordance with this Agreement, including the Specifications, or otherwise for the Facility.
“Equipment” includes all of the foregoing items that Contractor furnishes through a Subcontractor. For the purposes of this Agreement, “Equipment” shall not include any Owner Equipment. 
 “Equipment Warranty Period” shall have the meaning set forth in Section 13.2. 
 [*] 
 “Facility” shall have the meaning set forth in the Recitals, provided that, as the context may
require where the combustion turbine combined cycle electric power plant described in the Specifications has not been completed, “Facility” shall mean only the combustion turbine simple cycle electric power plant, as described in
the Specifications. 
 “Facility Manuals” shall mean those manuals prepared by or on behalf of Contractor for use by Owner or its designated
Facility operator in connection with the operation, maintenance of and training on the Facility that conform to the requirements of Exhibit A-1. 
 [*] 
 “Final Completion” shall mean that the Facility shall have achieved all of the conditions set forth in
Section 10.9. 
 “Final Completion Date” shall mean the date on which Final Completion of the Facility occurs. 
 “Final Payment Invoice” shall have the meaning set forth in Section 7.6. 
 [*] 
  

 5 
 Duke:         
 Shaw:        

 “Force Majeure” shall mean an unforeseeable event or cause that is beyond the reasonable control of a
Party, including by way of example, but not limited to: 
 (a) acts of God, war, riots, insurrection, terrorism, rebellion, floods,
hurricanes, tornadoes, earthquakes, lightning, pandemic, epidemics, and other natural calamities; 
 (b) explosions or fires; 
 (c) strikes, lockouts, or other labor disputes, but excluding strikes, lockouts or work stoppages involving only employees of Contractor; 
 (d) a Change in Law, but only to the extent such Change in Law delays a Party or increases its cost, as demonstrated by credible evidence, in its
performance of its obligations under this Agreement; 
 (e) actions or inactions of any Government Authority; and 
 (f) delays in obtaining goods or services from any Subcontractor caused by the occurrence of any Force Majeure event; 
 provided, however, that an event or cause shall not be an event of Force Majeure unless it: (i) directly impacts the Work under this Agreement,
(ii) is not attributable to an act or omission of, including a breach of this Agreement by, such Party, or its employees, officers, agents or Subcontractors, unless such act or omission is itself a result of Force Majeure, and (iii) cannot
be cured, remedied, avoided, offset, or otherwise overcome by the prompt exercise of reasonable diligence by such Party (or any Person over whom such Party has control). For the avoidance of doubt, “Force Majeure” shall not include
(i) changes in general economic conditions such as inflation, interest rates or other factors of general application, and Contractor shall not be entitled to equitable relief therefor, and (ii) Owner’s inability to meet any of its
payment obligations for whatever reason when due, and Owner shall not be excused from such obligation. 
 “Full Notice to Proceed” shall
mean the written notice that Owner gives to Contractor fully authorizing Contractor to proceed with the Work hereunder, which is anticipated to be given no later than [*] 
 “Government Authority” shall mean any federal, state, county, city, local, municipal, foreign or other government or quasi-governmental authority or any department, agency, subdivision, court or other
tribunal of any of the foregoing. 
 “Government Approvals” shall mean all permits, licenses, authorizations, consents, decrees, waivers,
privileges and approvals from and filings with any Government Authority required for or material to the development, financing, ownership, construction, operation or maintenance of the Facility in accordance with this Agreement, including the CPCN
and other work permits, environmental permits, licenses and construction permits. 
 “Gross Negligence” shall mean a conscious and voluntary
disregard of the need to use reasonable care, which is likely to cause foreseeable grave injury or harm to persons, property or both.  
 “Guaranteed Combined Cycle Substantial Completion Date” shall mean the date of [*] (as such date may be adjusted by Change Order), provided that such date shall be extended on a 

  

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day- for-day basis to the extent Owner fails to issue a Full Notice to Proceed on [*] until such Day Owner issues such Full Notice to Proceed. 
 “Guaranteed Final Completion Date” shall mean the date of [*] (as such date may be adjusted by Change Order), provided that such date shall be extended
on a day-for-day basis to the extent Owner fails to issue a Full Notice to Proceed on [*] until such Day Owner issues such Full Notice to Proceed. 
 “Guaranteed Simple Cycle Substantial Completion Date” shall mean the date of [*] (as such date may be adjusted by Change Order), provided that such date shall be extended on a day-for-day basis to the extent Owner fails to
issue a Full Notice to Proceed on [*] until such Day Owner issues such Full Notice to Proceed. 
 “Guarantor” shall mean [*] 
 “Hazardous Materials” shall mean substances defined as “hazardous substances” pursuant to Section 101(14) Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C. Sections 9601 et seq.); those substances defined as “hazardous waste” pursuant to
Section 1004(5) of the Resource, Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); those substances designated as a “hazardous substance” pursuant to Section 311 (b )(2)(A) or as a “toxic
pollutant” pursuant to Section 307(a)(1) of the Clean Water Act (33 U.S.C. Sections 1251 et seq.); those substances defined as “hazardous materials” pursuant to Section 103 of the Hazardous Materials Transportation Act
(49) U.S.C. Sections 1801 et seq.); those substances regulated as a “chemical substance or mixture” or as an “imminently hazardous chemical substance or mixture” pursuant to Section 6 or 7 of the Toxic
Substances Control Act (15 U.S.C. Sections 2601 et seq.); those substances defined as “contaminants” pursuant to Section 1401 of the Safe Drinking Water Act (42 U.S.C. Sections 300f et seq.), if present in excess of
permissible levels; those substances regulated pursuant to the Oil Pollution Act of 1990 (33 U.S.C. Sections 2701 et seq.); those substances defined as a “pesticide” pursuant to Section 2(u) of the Federal Insecticide,
Fungicide, and Rodenticide Act as amended by the Federal Environmental Pesticide Control Act of 1972 and by the Federal Pesticide Act of 1978 (7 U.S.C. Sections 136 et seq.); those substances defined as “toxic materials” or
“harmful physical agents” pursuant to Section 6 of the Occupational Safety and Health Act (29 U.S.C. Section 651 et seq.); those substances defined as “hazardous air pollutants” pursuant to
Section 112(a)(6), or “regulated substance” pursuant to Section 112(a)(2)(B) of the Clean Air Act (42 U.S.C. Sections 7401 et seq.); those substances defined as “extremely hazardous substances” pursuant to
Section 302(a)(2) of the Emergency Planning & Community Right-to-Know Act of 1986 (42 U.S.C. Sections 11001 et seq.); and those other hazardous substances, hazardous wastes, toxic pollutants, hazardous materials, chemical
substances or mixtures, imminently hazardous chemical substances or mixtures, contaminants, pesticides, by-product materials, toxic materials, harmful physical agents, air pollutants, regulated substances, or extremely hazardous substances defined
in any regulations promulgated pursuant to any of the foregoing environmental Laws, and all other contaminants, toxins, pollutants, hazardous substances, substances, materials and contaminants, polluted, toxic and hazardous materials, the use,
disposition, possession or control of which is regulated by one or more Laws. 
 “Heat Rate” shall mean the test calculated net heat rate in
BTU/kW-hr in HHV for the Simple Cycle Facility or the Combined Cycle Facility, as the case may be, during the Performance Testing at the 

  

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test specified operating conditions and corrected to the base performance conditions set forth in Exhibit A-2. 
 [*] 
 [*] 
 “Insolvent” shall mean, with respect to either Party, that such Party becomes insolvent, or fails generally to pay its debts as they become due, or admits in writing its inability to pay its debts as
they become due, or makes a general assignment for the benefit of creditors; commences any case, proceeding or other action seeking reorganization, arrangement, adjustment, liquidation, dissolution or composition of itself or its debts or assets, or
adopts an arrangement with creditors, under any bankruptcy, moratorium, rearrangement, insolvency, reorganization or similar law of the United States or any state thereof for the relief of creditors or affecting the rights or remedies of creditors
generally. 
 “Key Contractor Schedule Milestone” shall mean a Milestone set forth in Exhibit B that is identified as a “Key
Contractor Schedule Milestone.” 
 “Laws” shall mean, at any date of determination, all statutes, laws, codes, ordinances, orders,
judgments, decrees, injunctions, licenses, rules, permits, approvals, agreements, and regulations, including all applicable codes, standards, rules and regulations of the State, in effect on such date, including all Government Approvals. 

“Lien” shall mean any lien, mortgage, pledge, encumbrance, charge, security interest, defect in title, or other claim filed or asserted in connection
with the Project by or through Contractor, a Subcontractor or any other third party under the control or supervision of Contractor or any Subcontractor against the Facility, the Site, the Equipment, the Owner Equipment or any other structure or
equipment at the Site. 
 “[*]” shall mean the [*] and the [*]. 
 “Limited Notice to Proceed” shall mean a written notice that Owner gives to Contractor authorizing Contractor to proceed with the Work hereunder in a limited manner. 
 “Major Subcontractor” shall mean any Subcontractor who is engaged by Contractor: (i) to perform any Services or provide any Equipment that exceeds
or is expected to exceed, in the aggregate with all prior provision of Services or Equipment by that Subcontractor, $[*] or (ii) that, although not exceeding $[*] in the aggregate for Equipment or Services, is performing Services or providing
Equipment that is expressly listed in the table attached hereto as Exhibit G-2. 
  

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 “Make Right Performance Guarantees” shall mean those Performance Guarantees designated as such in
Exhibit A-2 for which the payment of a Performance Liquidated damage as a remedy shall not be an option for Contractor, which shall include the Simple Cycle Performance Guarantees and the Permitted Emission Limits. 
 “Milestone” shall mean an event or series of events in the execution of the Work as set forth in Exhibit B. 
 “Minimum Performance Guarantees” shall mean: 
 (a) with respect to [*] the achievement by the [*] under the performance conditions set forth in Exhibit A-2 of (i) a [*] not exceeding [*] of the applicable Performance Guarantees (or [*]BTU/kW-hr HHV) and (ii) an [*]
not less than [*] of the applicable Performance Guarantees (or [*]W) (both of which are achieved while meeting the Permitted Emission Limits); and 
 (b) with respect to [*], the achievement by the [*] under the performance conditions set forth in Exhibit A-2 of (i) a [*] not exceeding [*] of the applicable Performance Guarantees (or [*]BTU/kW-hr
HHV), and (ii) an [*] not less than [*] of the applicable Performance Guarantees (or [*]W) (both of which are achieved while meeting the Permitted Emission Limits). 
 The Parties recognize and agree that the above guarantee values shall be [*] 
 “[*]” shall
have the meaning set forth in Section 7.5(a). 
 “[*] Payment Invoice” shall have the meaning set forth in Section
7.2(a). 
 “Monthly Progress and Cost Report” shall mean the written report Contractor delivers to Owner each month describing the total
amount of progress in the Work achieved during the prior month, as provided in Section 3.22(a). 
 “OSHA” shall have the meaning
set forth in Section 24.2. 
 “OSHA Standards” shall have the meaning set forth in Section 24.2(a). 
 “Owner” shall have the meaning set forth in the first paragraph above and shall include its successors and assigns. 
 “[*]” shall mean the [*] including specifically the following items: 
 (a) [*] and features from the [*]; 
 (b) [*]; 
  

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 (c) [*] from the [*]; and 
 (d) [*]. 
 “Owner Equipment Contracts” shall mean, collectively, the [*] and any other contract executed
between Owner and a third-party supplier of equipment, including the Owner Equipment, for the Project, as each contract may be updated and amended from time to time. 
 “Owner Permits” shall have the meaning set forth in Section 4.3. 
 “Owner’s
Project Director” shall mean the Person that Owner designates in writing to issue and receive communications on Owner’s behalf under this Agreement. 
 “Performance Guarantees” shall mean: 
 (a) with respect to the [*], the achievement by the [*] under the
applicable performance conditions set forth in Exhibit A-2 of (i) a [*] not exceeding [*] and (ii) an [*] not less than [*] (both of which are achieved while meeting the Permitted Emission Limits); and 
 (b) with respect to the [*], the achievement by the [*] under the applicable performance conditions set forth in Exhibit A-2 of (i) a [*] not
exceeding [*] and (ii) an [*] not less than [*]kW (both of which are achieved while meeting the Permitted Emission Limits). 
 The Parties recognize and
agree that the above guarantee values shall be [*] 
 “[*]” shall mean, with respect to Combined Cycle operations, (a) [*] per each [*]
measured as [*] over the applicable [*] for [*] and (b) [*] per each kW under the applicable [*] for [*] 
 “[*]” shall mean
[*] of the Contract Price. 
 “Performance Testing” shall mean the tests, conducted in accordance with this Agreement, including the
Testing Procedures, by which Contractor demonstrates that the Facility meets, for Simple Cycle Substantial Completion or Combined Cycle Substantial Completion, the applicable Minimum Performance Guarantees, or for Final Completion, the Performance
Guarantees. 
 “Permitted Emission Limits” shall mean those specific emission limits for each regulated pollutant set forth in the
Prevention of Significant Deterioration (PSD) construction permit issued by the North Carolina Department of Environment and Natural Resources (NCDENR) Division of Air Quality authorizing the construction and operation of the Facility and which
specifies the methods of measurement, recordation, and compliance and which are designated as such and set forth in Exhibit A-2. 
  

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 “Person” shall mean any individual, company, corporation, partnership, joint venture, association, joint
stock company, limited liability company, trust, estate, unincorporated organization, Government Authority or other entity having legal capacity. 
 “[*]” shall mean [*]. 
 [*] shall have the meaning set forth in Section 7.1. 
 “[*]” shall have the meaning set forth in Section 7.1. 
 “Prime Interest Rate” shall mean, as of a particular date, the prime rate of interest as published on that date in The Wall Street Journal, and generally defined therein as “the base rate on corporate loans
posted by at least 75% of the nation’s 30 largest banks.” If The Wall Street Journal is not published on a date for which the interest rate must be determined, the prime interest rate shall be the prime rate published in The Wall
Street Journal on the nearest-preceding date on which The Wall Street Journal was published. If The Wall Street Journal discontinues publishing a prime rate, the prime interest rate shall be the prime rate announced publicly from
time to time by Bank of America, N.A. or its successor. 
 “Progress Meetings” shall have the meaning set forth in
Section 3.22(b). 
 “Project” shall have the meaning set forth in the Recitals. 
 “Prudent Industry Practice” shall mean those practices, methods, equipment, specifications and standards of safety and performance, as the same may
change from time to time, as are commonly used, or are generally accepted, in construction or operations of electric power generation facilities similar to the Facility, which in the exercise of reasonable judgment and in light of the facts known at
the time the decision was made, after due and diligent inquiry, are considered good, safe and prudent practices in connection with the engineering, design, construction, commissioning, testing, operation and maintenance of facilities similar to the
Facility with commensurate standards of safety, performance, dependability, efficiency, and economy, and as are in accordance with generally accepted standards of professional care, skill, diligence, and competence applicable to engineering, design,
construction, commissioning, testing, operation, maintenance and construction practices in the United States. 
 “Quality Assurance Plan”
shall have the meaning as set forth in Section 3.7. 
 [*] 
 [*] 
  

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 [*] 
 [*] 
 [*] 
 [*] 
 “Sales Tax” shall mean any current or future sales, use or similar tax imposed on Contractor, any Subcontractor or Owner with respect to the Work by the State or any other Government Authority.

 “Schedule” shall mean the critical schedule of key dates and Milestones, including the Key Contractor Schedule Milestones, for completion
of the Work, as set forth in Exhibit B, as modified or updated from time to time in accordance with the terms of this Agreement. 
 “Scope of
Work” shall mean all Work on the Project as set forth in Exhibit A-1. 
 “Screening Measures” shall mean all applicable
immigration checks (including compliance with the Immigration Reform Control Act of 1986 and I-9 requirements), drug and alcohol tests in compliance with MICCS, a terrorist watch database search, a social security trace, criminal background checks
(including but not limited to checks for any felony convictions for the past seven years) and such other screening measures as a reasonably prudent employer would deem appropriate; provided that, nothing shall require Contractor to perform
any screening activities that violate the federal Fair Credit Reporting Act, Title VII of the Civil Rights Act of 1964 or any other applicable Law. 
 “Services” shall mean all labor, transportation, packaging, storage, designing, drawing, engineering, demolition, Site preparation, manufacturing, construction, commissioning, installation, testing, equipping, verification,
training, procurement (whether procurement of Equipment, Documentation, licenses to intellectual property granted herein or otherwise) and other work, services and actions (including pursuant to any warranty obligations) to be performed by
Contractor under this Agreement [*] (whether at the Site or otherwise) in connection with, or relating to, the Facility (or any component thereof, including any Equipment and any Owner Equipment). “Services” includes (a) all of the
foregoing items that Contractor provides through a Subcontractor and (b) the services that Contractor provides with respect to Owner Equipment pursuant to Section 3.1(a)(ii). 
 “Services Warranty Period” shall have the meaning set forth in Section 13.1. 
 “[*]” shall have the meaning set forth in Section 12.1(a). 
 “Simple Cycle
Facility” shall mean that portion of the Facility necessary or prudent for the operation of a combustion turbine simple cycle electric power plant, as described in the Specifications. 
 “Simple Cycle Mechanical Completion” shall mean that the Simple Cycle Facility shall have achieved all of the conditions set forth in
Section 10.2. 
  

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 “Simple Cycle Substantial Completion” shall mean that the Simple Cycle Facility shall have achieved all
of the conditions set forth in Section 10.6. 
 “Simple Cycle Substantial Completion Date” shall mean the date on which Simple
Cycle Substantial Completion actually occurs. 
 “Site” shall mean the physical location as described in Exhibit A-4 upon which
Contractor shall construct the Facility and perform related Work. 
 “Specifications” shall mean the Facility specifications in Exhibit
A-1. 
 “[*]” shall have the meaning set forth in Section 16.3. 
 “State” shall mean the State of North Carolina. 
 “Subcontractor” shall mean a Person,
including any vendor, materialman or supplier, who has a contract (whether written or oral, a purchase order or otherwise) with Contractor or a contract with any Person hired by Contractor or with a Person of any lower tier to Contractor (e.g., a
second- or third-tier subcontractor) to perform any of the Services or to furnish any Equipment, at the Site or elsewhere. 
 “Substantial Completion
Punch List” shall mean the written list of items of Work (which Contractor prepares and with which Owner agrees prior to Simple Cycle Substantial Completion or Combined Cycle Substantial Completion (as applicable)) that remain to be
completed by Contractor after Simple Cycle Substantial Completion or Combined Cycle Substantial Completion (as applicable) but prior to Final Completion and which shall not affect the safety, reliability, operability or mechanical or electrical
integrity of the Facility. 
 “[*] Combined Cycle Substantial Completion Date” shall mean the date of [*] (as such date may be adjusted by
Change Order), provided that such date shall be extended on a day-for-day basis to the extent Owner fails to issue a Full Notice to Proceed on [*] until such Days Owner issues such Full Notice to Proceed. 
 “[*] Simple Cycle Substantial Completion Date” shall mean the date of [*] (as such date may be adjusted by Change Order), provided that such date shall
be extended on a day-for-day basis to the extent Owner fails to issue a Full Notice to Proceed on [*] until such Days Owner issues such Full Notice to Proceed. 
 [*] 
 “Taxes” shall mean all present and future license, documentation, recording and registration fees, all taxes (including
income, gross receipts, unincorporated business income, payroll, sales, use, privilege, personal property (tangible and intangible), real estate, excise and stamp taxes), levies, imports, duties, assessments, fees (customs or otherwise), charges and
withholdings of any nature whatsoever, and all penalties, fines, additions to tax, and interest imposed by any Government Authority. 
  

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 “Testing Procedures” shall mean those procedures prepared for the Performance Testing by Contractor in
accordance with Exhibit A-2 and reasonably acceptable to Owner. 
 “Third Party Claim” shall mean any claim, demand or cause of
action of every kind and character by any Person other than Owner or Contractor. For the avoidance of doubt, a claim, demand or cause of action by an employee of Owner or Contractor (unless made on behalf of Owner or Contractor) shall be considered
a Third Party Claim hereunder. 
 “Warranty Period” shall mean, as the context may require, the Services Warranty Period or the Equipment
Warranty Period, as each may be extended from time to time with respect to any Service or Equipment as provided in Section 13.3. 
 “Work” shall mean, as the context may require, either (a) the Equipment and the Services or (b) the Equipment or the Services. 
 2. GENERAL PROVISIONS 
 2.1 Intent of Contract Documents. It is the intent of the Parties that Contractor provide the Equipment and
perform the Services and all of its other obligations under this Agreement for the Contract Price, [*] which shall not be increased, except in accordance with Article 7, Article 8 or as otherwise expressly set forth herein. 

2.2 Independent Contractor. Contractor shall perform and execute the provisions of this Agreement as an independent contractor to Owner and shall not in any
respect be deemed or act, or hold itself out, as an agent of Owner for any purpose or reason whatsoever, except as contemplated in Section 3.1(a)(ii). 
 2.3 Subcontracting; Approved Subcontractors. 
 (a) The Parties have agreed upon the list of approved Subcontractors set
forth in Exhibit G-1 for the Services and Equipment listed in Exhibit G-1. Contractor shall have the right to have that portion of the Services identified in Exhibit G-1 performed by the approved Subcontractor for such Service,
and the right to purchase Equipment identified in Exhibit G-1 from the approved Subcontractor for such Equipment. For all Major Subcontractors that are listed in Exhibit G-1 and for the scope of Services and Equipment that are listed
in Exhibit G-2, Contractor shall provide Owner with an opportunity to participate in Contractor’s bid process, including but not limited to, review of Contractor’s bid proposals, participation in vendor presentations and meetings,
review of proposed subcontractor’s bid responses, review and participation in Contractor’s technical and commercial evaluations of bid responses, and participation in Contractor’s meetings to discuss bid selection. In addition, not
less than [*] prior to such time as Contractor desires to award or execute a subcontract with a proposed Major Subcontractor, Contractor shall provide notice to Owner of such intention. If, prior to execution of a subcontract with such Major
Subcontractor, Owner desires that Contractor engage an alternative Major Subcontractor in lieu of the Major Subcontractor that is preferred by Contractor, Owner shall consult in good faith with Contractor on the difference in value, if any, between
the bid price of the Major Subcontractor desired by Owner and the Major Subcontractor preferred by Contractor, plus any additional impacts to Schedule or warranties attributable to selecting the alternative Major Subcontractor in lieu of the
preferred Major Subcontractor. If desired by Owner, Contractor shall engage such alternative approved Major 

  

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Subcontractor but shall be entitled to a Change Order for the schedule, cost, warranty or other impacts in selecting the alternative Major Subcontractor.

 (b) If Contractor desires to engage a Subcontractor that is not identified in Exhibit G-1 as an approved Subcontractor that will be
providing Equipment or Services, then Contractor shall provide Owner with an opportunity to participate in Contractor’s bid process, including but not limited to, review of Contractor’s bid proposals, participation in vendor presentations
and meetings, review of proposed subcontractor’s bid responses, review and participation in Contractor’s technical and commercial evaluations of bid responses, and participation in Contractor’s meetings to discuss bid selection.
Before Contractor enters into any contract with, or otherwise engages, such Subcontractor to perform such Services, Contractor shall deliver to Owner for Owner’s review and approval (w) the name of the Subcontractor that Contractor
proposes to use in the performance of such on-Site Services, (x) a statement in reasonable detail of the reasons why the proposed Subcontractor is preferred over any approved Subcontractor, (y) a description of any impacts to Schedule,
warranties, interconnection with other Equipment or otherwise attributable to selecting the Subcontractor and (z) the information (and any additional information as Owner may reasonably request) on which Contractor is basing its desire to
engage such Subcontractor. Owner shall have the right to reject any such Subcontractor; provided that Owner’s rejection shall be reasonable and shall occur within ten (10) Business Days after Contractor submits to Owner all of the
information noted in clauses (w) through (z) above. 
 (c) Contractor shall not allow any Subcontractor that Owner rejects to
perform any portion of the Services. Unless otherwise mutually agreed in writing, no contractual relationship shall exist between Owner and any Subcontractor with respect to any of the Services or the Equipment. Contractor shall be fully responsible
for all acts, omissions, failures and faults of all Subcontractors as fully as if they were the acts, omissions, failures and faults of Contractor. The exercise of this right by Contractor to subcontract shall not in any way increase the costs,
expenses or liabilities of Owner. 
 2.4 Assignment of Subcontracts. All subcontracts between Contractor and its Subcontractors shall be in writing
and shall, to the extent commercially reasonable, contain provisions, which Contractor shall not waive, release, modify or impair (a) obligating each Subcontractor that may receive access to any Owner Confidential Information, to protect such
Owner Confidential Information in accordance with the provisions of this Agreement; (b) as applicable, sufficient to ensure that Contractor has the right to grant the intellectual property licenses and assignments that are granted to Owner
herein; and (c) giving Contractor an unrestricted right to assign the subcontract and all benefits, interests, rights and causes of action arising under it to Owner, an Affiliate of Owner or an operator of the Facility, as designated by Owner.
At the request of Owner, Contractor shall provide Owner with copies of all warranties of each Subcontractor relating to any of the Work, and Contractor shall comply with any request by Owner upon the termination of this Agreement pursuant to
Article 23 or prior to the expiration of the Warranty Period to assign the benefit of any Subcontractor warranty to Owner, an Affiliate of Owner or an operator of the Facility, as designated by Owner; provided that, unless otherwise
agreed, Contractor shall not be required to assign any rights to claims that Contractor may have against such Subcontractor at the time of the assignment of such benefit. 
 2.5 Interpretation. 
  

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 (a) Headings. The titles and headings in this Agreement are inserted for convenience only and
shall not be used for the purposes of construing or interpreting this Agreement. 
 (b) References. References to natural persons
include Persons. References to “Articles” and “Sections” are references to Articles and Sections of this Agreement. References to “Exhibits” are references to the Exhibits attached to this Agreement, including all
attachments to and documents and information incorporated therein, and all Exhibits are incorporated into this Agreement by reference. 
 (c)
Gender. Words importing one gender include the other gender. 
 (d) Without Limitation. The words “include” and
“including” are not words of limitation and shall be deemed to be followed by the words “without limitation.” 
 (e)
Amendments. All references in this Agreement to contracts, agreements or other documents shall be deemed to mean those contracts, agreements or documents as the same may be modified, supplemented or amended from time to time. 
 (f) Industry Meanings. Words and abbreviations not otherwise defined in this Agreement which have well-known technical or design, engineering or
construction industry meanings in the United States are used in this Agreement in accordance with those recognized meanings. 
 (g)
Agreement. Provisions including the word “agree”, “agreed” or “agreement” require the agreement to be recorded in writing. 
 (h) Written. Provisions including the word “written” or “in writing” mean hand-written, type-written, printed or electronically made and resulting in a permanent record. 
 (i) Drafting. Neither Contractor nor Owner shall assert or claim a presumption disfavoring the other by virtue of the fact that this Agreement was
drafted primarily by legal counsel for the other, and this Agreement shall be construed as if drafted jointly by Owner and Contractor and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of
any of the provisions of this Agreement. 
 (j) [*] 
 2.6 Inclusion; Order of Precedence. This Agreement (excluding the Exhibits) and the Exhibits shall be considered complementary, and what is required by one shall be binding as if required by all. The Parties
shall attempt to give effect to all provisions. The failure to list a requirement specifically in one document, once that requirement is specifically listed in another, shall not imply the inapplicability of that requirement, and Contractor shall
provide as part of its obligations hereunder all items required to conform the Work to the Specifications and the other standards in this Agreement. In the event of a conflict between this Agreement (excluding the Exhibits) and the 

  

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Exhibits, this Agreement (excluding the Exhibits) shall control and the conflicting provisions shall be interpreted so as to accord with the provisions of
this Agreement (excluding the Exhibits). Notwithstanding the foregoing, conflicts regarding Scope of Work matters shall be governed by Exhibit A-1. Later dated amendments, Exhibits or Change Orders shall take precedence over earlier dated
amendments, Exhibits or Change Orders. 
 2.7 Days. If a payment obligation falls due on a Day other than a Business Day, the obligation shall be
deemed to be due on the next Business Day. 
 3. CONTRACTOR RESPONSIBILITIES 
 3.1 Performance of the Services; Commencement of Work. 
 (a) Performance of the Services.

 (i) Scope of Services for Work. With respect to all Work, Contractor shall diligently, duly and properly perform and
complete the Services in accordance with this Agreement; procure, provide and pay for all items (other than Owner Equipment) and services necessary for the proper execution and completion of the Services, whether temporary or permanent and whether
or not incorporated or to be incorporated into the Facility, including all procurement, design and engineering services (except for such services for the Owner Equipment), all installation and construction services, administration, management,
training and coordination, all Commissioning and verification services, and all labor, Equipment, construction aids, furnishings, equipment, supplies, insurance (other than Owner insurance), permits (other than Owner Permits), licenses, inspections,
storage and transportation, Facility Manuals, and all other items, facilities and services necessary to perform or provide the Work and complete the Facility. Contractor shall design, construct and install the Equipment on an engineering and
construction basis pursuant to this Agreement, including providing all necessary civil, structural, mechanical, and electrical engineering services, all control equipment necessary for the design, construction and operation of the Equipment, all
interconnections set forth in the Specifications, and all equipment not specifically described in the Specifications (other than Owner Equipment) which is customary and necessary to meet the requirements of the Specifications and the Performance
Guarantees. Work not specifically delineated in this Section or elsewhere shall be performed and provided by Contractor to the extent customary and necessary to complete the Facility (other than procurement, supply and provision of Owner Equipment)
in accordance with Prudent Industry Practices. [*] Contractor shall execute the entire Services in a manner that will enable Contractor to achieve Simple Cycle Substantial Completion by the Guaranteed Simple Cycle Substantial Completion Date,
Combined Cycle Substantial Completion by the Guaranteed Combined Cycle Substantial Completion Date and Final Completion by the Guaranteed Final Completion Date. 
 (ii) Scope of Services Relating to Owner Equipment. Owner shall be responsible for procuring, supplying and providing the Owner
Equipment by the dates set forth in the Schedule. The Owner Equipment shall be provided pursuant to contracts between Owner and the suppliers of such Owner Equipment (collectively, the “Owner Equipment Contracts”). Owner shall
provide Contractor with the relevant portions of the Owner Equipment Contract 

  

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in order for Contractor to perform its obligations under this Section. With respect to such Owner Equipment, the Parties hereby agree as follows: 

(A) Owner hereby authorizes Contractor to, and Contractor hereby agrees to, act as Owner’s agent for the purpose of generally
administering the Owner Equipment Contracts on behalf of Owner and assuring compliance by Owner and suppliers with the terms thereof. Contractor shall perform such services in the manner that a reasonably prudent contractor experienced in the design
and construction of combined cycle electric-generating facilities would perform if such contractor, instead of Owner, were a party to such Owner Equipment Contracts. Such agency services shall include but shall not be limited to reviewing design
documents, obtaining design interface and delivery schedule information, coordinating and expediting delivery of such Owner Equipment, diligently asserting Owner’s rights, maintaining appropriate records, providing to Owner any notices
delivered to Contractor by the supplier of the Owner Equipment, regularly updating Owner with respect to the status of the performance of the suppliers of the Owner Equipment, assisting Owner in pursuing available remedies against the suppliers of
the Owner Equipment, including assistance to Owner in the administration and coordination of warranty claims for such Owner Equipment and enforcing the repair, replacement or refurbishment of such Owner Equipment as necessary, consulting with Owner
with respect to any material issues, attending meetings and otherwise interfacing with the suppliers of the Owner Equipment, and carrying out the directions of Owner, all as necessary in order to ensure performance by the respective suppliers under
the Owner Equipment Contracts in accordance with the terms and condition set forth in such Owner Equipment Contracts. Notwithstanding the foregoing, Contractor shall have no authority to, and shall not, take any of the following actions under or
with respect to the Owner Equipment Contracts absent prior direction from Owner: (1) consent to any change order; (2) agree to or permit any amendment, modification, or supplement; (3) waive any of Owner’s rights or the
obligations of the suppliers of the Owner Equipment; (4) increase any of Owner’s obligations or the rights of the suppliers of the Owner Equipment; (5) initiate or conduct any litigation or other similar proceedings; (6) take any
action that would cause a default or breach by Owner of an Owner Equipment Contract; or (7) agree to or consent to termination or suspension of work or activities thereunder. Owner shall consult with Contractor on any performance or schedule
concerns before making payments to the suppliers of the Owner Equipment after the Effective Date. 
 (B) In addition to the
agency services set forth in Section 3.1(a)(ii)(A), Contractor shall also provide timely review and response to all Owner Equipment designs, specifications and drawings, provide all on-site storage and transportation, provide on-site
administration and coordination and reasonable office space, provide installation and integration services with respect to the Owner Equipment in accordance with the Schedule, perform inspections of such Owner Equipment, perform all installation,
commissioning and Performance Testing for all such Owner Equipment, conduct quality surveillance and start-up of such Owner Equipment to the extent permitted under the Owner Equipment Contracts, coordinate training, incorporate Owner Equipment
manuals into the Facility Manual, and provide other related services reasonably necessary to install and interconnect such Owner 

  

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Equipment to the Equipment and the Facility as contemplated by Contractor’s Scope of Work. 
 (C) For the avoidance of doubt, notwithstanding anything to the contrary, Contractor shall have no liability to Owner for payment of any
performance liquidated damages specified within the Owner Equipment Contracts for any shortfall in the performance of such Owner Equipment (including failure to meet performance guarantees) or for the payment of any delay liquidated damages
specified within the Owner Equipment Contracts for the late delivery of such Owner Equipment. Contractor shall be entitled to a Change Order granting equitable relief from any impact on Contractor’s cost or schedule of performance under this
Agreement attributable to a breach by the suppliers of the Owner Equipment of the terms of the Owner Equipment Contracts, except to the extent that such breach is caused by Contractor failing to fulfill its obligations under this Agreement.

 (D) Owner and Contractor hereby acknowledge that the Work is only a portion of the work required for the completion of the
entire Project and that the successful and timely completion of the Project will require the good faith, prompt and courteous coordination and collaboration among many contractors, subcontractors and other Persons, including Owner and the suppliers
of Owner Equipment. Owner and Contractor also acknowledge that both parties are entering into this Agreement in material reliance on the agreement by each other to provide such good faith, prompt and courteous coordination and collaboration and to
perform the Work in accordance with the terms and conditions set forth herein in order to achieve the successful and timely completion of the Project. 
 (b) Work Under Limited Notices to Proceed. From the Effective Date until such time that Owner issues a Full Notice to Proceed with respect to the Facility, Owner shall from time to time issue Limited Notices to
Proceed for Contractor to perform certain portions of the Work with respect to the Facility as set forth in each such Limited Notice to Proceed. Such portions of the Work shall be performed for the price and in the manner set forth in such Limited
Notice to Proceed. Each Limited Notice to Proceed shall expire upon the earlier of (i) the date set forth in such Limited Notice to Proceed, (ii) issuance of the Full Notice to Proceed or (iii) termination of this Agreement in
accordance with Article 23. 
 (c) Work After Full Notice to Proceed. Upon the issuance by Owner of the Full Notice to Proceed,
such notice shall be deemed to be authorization for Contractor to commence the remainder of the Work relating to the Facility on the date set forth in such Full Notice to Proceed, which shall continue until such Work is completed unless this
Agreement is earlier terminated in accordance with Article 23. The Parties acknowledge that this Agreement sets forth a specific date for the anticipated delivery of the Full Notice to Proceed for the Facility. The failure by Owner to issue
the Full Notice to Proceed by the date set forth in this Agreement will constitute a Change, with respect to which Article 8 shall apply. Contractor shall perform its obligations under this Agreement in accordance with the agreed upon
Schedule, as such Schedule may be modified or updated from time to time in accordance with the terms of this Agreement. 
 3.2 Professional Standards.
Contractor shall perform and complete the Services and its other obligations under this Agreement, and all Equipment shall be, in accordance with all applicable Laws, this Agreement and Prudent Industry Practices. In the event of any conflict
between any of the 

  

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authorities in the foregoing sentence, all applicable Laws shall control over the terms of this Agreement and Prudent Industry Practices, and the terms of
this Agreement shall control over Prudent Industry Practices. 
 3.3 Sufficient Personnel. At all times during the term of this Agreement, Contractor
shall employ a sufficient number of qualified Persons, who shall be licensed if required by applicable Laws, so that Contractor may complete the Services and Contractor’s other obligations under this Agreement in an efficient, prompt,
economical and professional manner and in accordance with the Schedule. Without in any way limiting the foregoing, Contractor shall, for example, employ a sufficient number of qualified buyers, inspectors, and expediters necessary to provide all
equipment, materials and supplies to be provided by Contractor hereunder in a timely manner consistent with the Schedule. Contractor shall provide all technical services and supervision for Commissioning and verification. Contractor shall also
provide all construction services and craft personnel as required for system adjustments during Commissioning and verification. Owner shall provide and pay for its own operations and maintenance staff during Commissioning and verification.

 3.4 Supervision and Discipline. Contractor shall supervise, coordinate and direct the Services using Contractor’s best skill, judgment and
attention. Contractor shall enforce strict discipline and good order among Contractor’s employees, Subcontractors’ employees and all other Persons carrying out the Services. Contractor shall at all times take all necessary reasonable
precautions to prevent any unlawful or disorderly conduct by or among its employees, employees of Subcontractors and other Persons performing the Services and for the preservation of the peace and the protection of Persons and property at, or in the
immediate vicinity of, the Site. Contractor shall only permit the employment of Persons who are fit at the time they are employed and on each Day they perform the Services, who are skilled in the tasks assigned to them, and who are qualified to
perform the tasks assigned to them. Contractor shall be responsible for labor peace on the Site and Contractor shall at all times implement policies and practices designed to avoid work stoppages, slowdowns, disputes and strikes where reasonably
possible and practical under the circumstances. 
 3.5 Contractor’s Key Personnel. Exhibit F contains a list of Contractor’s key
personnel who shall be responsible for supervising the performance of Contractor’s obligations under this Agreement. That list includes the designation of Contractor’s Project Manager and Contractor’s Site Representative. Any
replacement of the key personnel listed in Exhibit F shall be subject to the prior written approval of Owner, which consent Owner shall not unreasonably withhold or delay. Contractor’s Project Manager shall act as Contractor’s
liaison with Owner and shall have the authority (a) to administer this Agreement on behalf of Contractor, (b) to perform the responsibilities of Contractor under this Agreement, and (c) to bind Contractor as to the day-to-day project
management operations under the Agreement. Contractor’s Site Representative or other Contractor supervisory personnel shall be present at the Site at all times when the Services are being performed at the Site. 
 3.6 Design and Engineering. Prior to the Effective Date, Contractor shall have scrutinized, and satisfied itself as to the adequacy of, the Specifications
(including design criteria and calculations, if any) for completion of the Facility. Contractor shall be responsible for the design of the Facility and for the accuracy of the Specifications. Any data or information received by Contractor, from
Owner or otherwise, shall not relieve Contractor from its responsibility for the design of the Facility and execution of the Services. Contractor shall engage all supervisors, engineers, designers, draftsmen and other Persons necessary for the
preparation of all Documentation required for the Work. In connection with the Documentation, Contractor shall prepare working drawings and specifications 

  

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setting forth in detail the requirements for the construction of the Facility in accordance with this Agreement (the “Design Documents”).
Contractor shall submit those Design Documents identified in Exhibit A-3 for Owner’s review, and Owner shall complete its review of, and provide any comments to Contractor with respect to, the Design Documents within ten [*] of receiving
such Design Documents from Contractor (and such Design Documents shall be deemed reviewed without comment if Contractor does not receive any comments from Owner within such time period). If Owner notifies Contractor that the Design Documents fail to
comply with this Agreement, Contractor shall correct such Design Documents and shall resubmit them for Owner’s prompt review within five (5) Business Days in accordance herewith. Owner shall be entitled, but not obligated, to review and
comment on all other Design Documents not identified in Exhibit A-3. Any review by Owner of any Design Documents pursuant to this Section shall not relieve Contractor from any obligation or responsibility under this Agreement. If errors,
omissions, ambiguities, inconsistencies, inadequacies or other defects are found in the Design Documents, they and the Work shall be corrected as part of the [*] notwithstanding any prior consent or approval of Owner of any such Design Documents or
Work. 
 3.7 Quality Assurance Plan. Contractor shall develop, implement and maintain a written plan for quality assurance of the Services (the
“Quality Assurance Plan”), which shall include: work safety; security at the Site; fitness for duty; management and control of the design, engineering, and construction services; management and control of Subcontractors; and such
other matters as Owner may reasonably request. Such plan shall meet Owner’s corporate and Site-specific policies and requirements and the requirements of all applicable Laws. Contractor shall deliver the plan to Owner within [*] after the
Effective Date for Owner’s review and comment, and Contractor shall thereafter incorporate Owner’s reasonable comments therein. Following Owner’s review of and comment to such plan, Contractor shall have the right to rely on such plan
in performing the Services. Contractor shall also require all Subcontractors to establish, implement and maintain appropriate quality control and safety programs with respect to their respective portions of the Services. Contractor shall provide
Owner and its employees, agents, representatives and invitees with reasonable access to the Work wherever located for observation and inspection, including but not limited to auditing of all activities for conformance with the requirements of the
plan and all requirements of the Agreement. Inspections and audits of Contractor’s Subcontractors will be coordinated with Contractor. 
 3.8 Safety
Management Plan. Contractor shall develop, implement and maintain a written safety management plan that complies with the requirements set forth in Article 24. Contractor shall deliver such plan to Owner for its review and approval (which
approval shall not be unreasonably withheld or delayed) at least [*] prior to the date Contractor mobilizes to the Site. 
 3.9 Training. Contractor
shall develop and implement a program to instruct and train Owner’s personnel adequately in accordance with the provisions of Exhibit A-1. Contractor shall deliver to Owner in accordance with Section 3.15 substantially
complete versions of the Facility Manuals that are sufficient for training Owner’s maintenance and operating personnel, and Contractor shall thereafter use the Facility Manuals to train such Owner personnel. The training, together with the
Facility Materials and the training that any supplier of Owner Equipment is required to provide, will be sufficient, once provided, to enable Owner to develop operating procedures compliant with the requirements of Government Authorities.

 3.10 Utility Use. Subject to Section 4.5, from the Effective Date until Final Completion, Contractor shall be responsible in connection
with its scope of Work and as part of the [*] 

  

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to maintain and pay for all temporary construction utilities required to perform the Services, including electricity (from the designated Owner tie-in
points), fuel (other than gas fuel used for Commissioning, Performance Testing and operation), communication systems for Contractor’s temporary office facilities (including telephones for Owner’s staff), water (potable and raw),
construction waste disposal and wastewater disposal. 
 3.11 Spare Parts. 
 (a) Erection, Start-up and Commissioning Spare Parts. Owner and Contractor shall consult in good faith on an ‘open book’ basis to
determine the nature and quantity of spare parts required for installation, erection, start-up, commissioning and performance testing for the Equipment for each of the Simple Cycle Facility and the Combined Cycle Facility, including all gases,
gaskets, fuses, instruments, etc. and other consumable, expendable and engineered items that may be required during construction, start-up, commissioning or performance testing of such Equipment. Contractor shall recommend to Owner for approval the
spare parts to be purchased by Contractor for such installation, erection, start-up and commissioning, with such Owner approval not to be unreasonably withheld or delayed. Owner shall own all such spare parts for which it has made payment, and,
prior to Simple Cycle Substantial Completion or Combined Cycle Substantial Completion (as applicable), Contractor shall provide Owner with a complete list of all such spare parts (including manufacturer name and part number and other descriptive
information) that were not used during construction, start-up, commissioning or performance testing of such Equipment. 
 (b) Recommended
Operation and Maintenance (O&M) Spare Parts. At least ninety-days Days prior to Simple Cycle Substantial Completion, Contractor shall provide a list of spare parts that Contractor (or its Subcontractors) recommends as necessary for Owner to
have on hand to maintain operability of the Equipment (taking into account the length of time required to obtain such spare parts) to enable prompt repair of the Equipment for the Simple Cycle Facility for a period of [*] following Simple Cycle
Substantial Completion and to enable prompt repair of the Equipment for the Combined Cycle Facility for a period of [*] following Combined Cycle Substantial Completion. Summary and detailed information on each spare part shall be listed by
Contractor in a format as reasonably requested by Owner. Each spare part listed shall include all items for which the spare part is intended to support. All spare parts shall comply with the requirements of the Specifications and shall be identical
or equivalent to the original specified, including documentation identical in kind and format to that required for the original equipment or material. Pricing, delivery lead times and any limitations on shelf life shall be included for each spare
part. Owner shall procure such spare parts as it determines in its sole discretion. 
 (c) Owner Equipment Spare Parts. Acting as
Owner’s agent pursuant to Section 3.1(a)(ii)(A), Contractor shall coordinate, expedite and manage delivery from each supplier of Owner Equipment a recommended list of spare parts required for Commissioning and start-up of such Owner
Equipment at such times as shall be necessary to permit Contractor to remain in compliance with the Schedule. Owner shall timely acquire, pay and deliver for all such spare parts. Owner shall make available at no cost to Contractor to utilize for
Owner Equipment during start-up and testing, spare parts acquired by Owner for the Owner Equipment. 
 3.12 Subcontractor Presence. Contractor shall
be responsible for notifying and paying any Subcontractor representative that it deems necessary to be present for technical assistance at (a) any training session, (b) erection supervision, (c) Commissioning, or (d) the
Performance Testing. Similarly, Owner, at its cost, shall ensure that an adequate number of qualified representatives from 

  

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those suppliers supplying Owner Equipment are present for technical assistance at the above-listed events. 
 3.13 Current Records; Record Drawings. Contractor shall maintain in good order and make available to Owner, for inspection at the Site at all times, at least one
record copy of the Documentation marked currently to record all material changes made during construction. Before, and as a condition to, Final Completion of the Facility, Contractor shall deliver to Owner the Documentation, including one set of
reproducible as-built drawings listed in Exhibit A-3 (in hard copy and electronic formats (non-native files) reasonably requested by Owner), showing all material changes made during construction with respect to the Facility. 
 3.14 Transportation Costs. Contractor shall arrange and pay for all transportation, storage and transfer costs incurred in connection with the Work, except for
the transportation and storage costs attributable to Owner Equipment, which transportation and storage costs shall be paid by Owner. 
 3.15 Facility
Manuals. Contractor shall deliver to Owner substantially complete versions of the Facility Manuals relating to the Simple Cycle Facility no less than one hundred and twenty (120) Days prior to the Simple Cycle Substantial Completion Date in
accordance with the requirements of this Agreement, with such first draft containing sufficient operational and technical information to allow Owner to develop Simple Cycle Facility operating and maintenance procedures in order for Contractor to
provide operator training. Contractor shall deliver to Owner substantially complete versions of the Facility Manuals relating to the entire Facility no less than one hundred and twenty (120) Days prior to the Combined Cycle Substantial
Completion Date in accordance with the requirements of this Agreement, with such first draft containing sufficient operational and technical information to allow Owner to develop Facility operating and maintenance procedures in order for Contractor
to provide operator training. Contractor shall deliver to Owner the final version of the Facility Manuals, in hard copy and electronic format, prior to Final Completion of the Facility. 
 3.16 Control of Work. Contractor shall have care, custody and control over that portion of the Site at which it performs construction Work and shall be solely responsible for all construction means, methods,
techniques, sequences, procedures, safety and quality assurance, and quality control programs in connection with the performance of the Services. Contractor shall, [*] provide all necessary security at that portion of the Site under
Contractor’s care, custody and control, including a suitable fence around such portion of the Site, and the prohibition and prevention of access and entrance to such portion of the Site by all unnecessary and unauthorized Persons. Contractor
shall strictly control the admission of Persons to such portion of the Site and no such Person (other than the employees, officers or directors of the Parties or their Affiliates) who is not required for the performance or supervision of the
Services shall be admitted without the prior approval of Owner (such approval not to be unreasonably withheld or delayed). To the extent any damages to the Site or property thereon, including the Facility, are covered by Owner’s Builder’s
Risk policy or other property insurance [*]. To the extent any damages to the Site or property thereon, including the Facility, are not covered by Owner’s Builder’s Risk policy or other property insurance and if such damages arise from
theft or vandalism due to Contractor’s or its Subcontractor’s negligence, then Contractor shall be liable for such damages up to the amount of the loss incurred, which shall be included [*] 

  

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 [*] 
 3.17
Emergencies. In the event of any emergency endangering life or property, Contractor shall take all actions as may be reasonable and necessary to prevent, avoid or mitigate injury, damage or loss and shall promptly report each such emergency,
and Contractor’s responses thereto, to Owner. 
 3.18 Local Conditions. Contractor has reviewed the Site and the access to the Site, all as
described in Exhibit A-4, and acknowledges that they are sufficient for the performance of the Services. Contractor warrants that it has taken all steps necessary to ascertain the nature and location of the Services and that it has
investigated and satisfied itself as to the general and local conditions that can affect the Facility, the Site or the performance of the Services, including: (a) conditions bearing on access, egress, transportation, waste disposal, handling,
lay down, parking and storage of materials; (b) the availability of labor, water, electric power, other utilities and roads needed for construction; (c) uncertainties of normal weather or other observable physical conditions at the Site;
and (d) the character of equipment and facilities needed before and during the performance of the Services. For the avoidance of doubt, Contractor acknowledges that Contractor has included reasonable estimates in the [*] to account for the
sub-surface Site conditions identified within the [*]. 
 3.19 Use of Site; Owner Access. Contractor shall confine its operations at the Site to areas
permitted by applicable Laws, this Agreement and the Exhibits hereto. Contractor shall prepare, implement and enforce written Site rules necessary for the safe, efficient and proper prosecution of the Work. Those rules shall, at a minimum, comply
with Owner Environmental Health and Safety manual and all applicable Laws. Contractor shall provide Owner, the suppliers of the Owner Equipment, and their respective employees, agents, representatives and invitees with reasonable access to the Work
wherever located for observation and inspection; provided, that Contractor may provide, and Owner, the suppliers of the Owner Equipment and shall accept, an escort or other safety measures that Contractor, in its reasonable discretion, deems
necessary or advisable. As a [*] and as part of the [*] Contractor shall provide Owner and its Owner Equipment vendors with [*] office spaces on the Site which shall be outfitted in a customary manner (including a conference room) as more fully
described in Exhibit A-1. Those office facilities shall be connected to and serviced by the usual utilities, subject to Sections 3.10 and 4.5. 
 3.20 Compliance with Laws. Contractor shall comply, and shall cause all Subcontractors to comply, with all applicable Laws and Change Orders that relate to Changes in Law relating to the Work or the Facility, and Contractor shall
give all applicable notices with respect to, and in accordance with, any applicable Laws. Contractor shall ensure that the Facility, as designed and constructed, complies, and, when operated in accordance with Prudent Industry Practices, shall
comply with all applicable Laws. Notwithstanding the foregoing, or anything else in this Agreement to the contrary, Contractor’s obligation with respect to water, air and other emissions of the Facility shall be limited to the requirements set
forth in the Specifications. If not otherwise exempted by Title 48 and to the extent applicable, Contractor will make a good faith effort to comply with 48 CFR §52.219-8, Utilization of Small, Small Disadvantaged, and Women-Owned Small Business

  

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Concerns, and 48 CFR §52.219-9, Small, Small Disadvantaged, and Women-Owned Small Business Subcontracting Plan. 
 3.21 Permits and Approvals. Contractor shall be responsible for obtaining, renewing and maintaining all permits, licenses, approvals and certifications customary
and necessary for Contractor to demolish, Site prepare, engineer, detail, fabricate, furnish, deliver, unload, store, erect, install, commission (but only those permits exclusively used for commissioning) and inspect the Work, all as described in
Exhibit D (collectively, the “Contractor Permits”). Contractor shall provide reasonable assistance and documents to Owner in connection with Owner’s efforts to obtain the Owner Permits. Contractor represents that, to the
best of its knowledge, the Contractor Permits listed in Exhibit D are the customary permits, approvals and certifications required to be obtained by Contractor for its performance of the Services. Upon Contractor’s request, Owner shall
provide Contractor reasonable cooperation and assistance in obtaining and maintaining Contractor Permits. 
 3.22 Periodic Reports and Meetings.

 (a) Monthly Progress and Cost Report. Prior to or concurrently with the delivery of each Monthly Payment Invoice provided in
accordance with Section 7.2(a), Contractor shall prepare and submit to Owner a written status report covering the previous calendar month, which report shall be prepared in a manner and format (hard copy and electronic) reasonably
acceptable to Owner and shall include (i) a detailed description of the progress of the Work, including an up-to-date Work Schedule depicting all critical path activities and Key Contractor Schedule Milestones and illustrating the progress
which has been made against such activities and Key Contractor Schedule Milestones, (ii) if the description of the progress of the Work indicates that the Work does not comply with the Schedule, a brief description of the steps and actions that
Contractor proposes to take in order to comply with the Schedule, (iii) a statement of any significant issues which remain unresolved and Contractor’s recommendations for resolving the same, (iv) a summary of any significant Facility
events which are scheduled or expected to occur during the following thirty (30) Days, (v) a Cost Comparison Report for the previous calendar month and as of the end of such month and (vi) all additional information reasonably
requested by Owner (the “Monthly Progress and Cost Report”). Contractor shall provide copies of such documentation and materials as Owner may reasonably require to substantiate the amounts claimed by Contractor in such Cost
Comparison Report. 
 (b) Attendance and Participation at Meetings. From the Effective Date until the Final Completion Date,
Contractor shall attend and participate in regular meetings with Owner which shall occur monthly (or upon such other interval as the Parties agree in writing) for the purpose of discussing the status of the Work and anticipating and resolving any
problems (“Progress Meetings”). The Progress Meetings may also include, at the request of Owner, consultants and other Persons. Contractor shall prepare and promptly deliver to Owner written minutes of each meeting; provided,
that the publication or distribution of such minutes shall not constitute a permitted basis for providing notice, or otherwise asserting claims, under this Agreement by any Party. No implication whatsoever shall be drawn as consequence of a failure
by any Party to comment on or object to any minutes prepared or distributed by Contractor. Unless otherwise mutually agreed, Contractor’s Site Representative shall attend all Progress Meetings after Contractor mobilizes to the Site. In addition
to the above monthly Progress Meetings, Contractor shall hold regularly scheduled (but not less frequently than weekly during construction) status or scheduling meetings with its Subcontractors as appropriate, and Owner shall have the right but not
the obligation to attend and participate in such weekly status meetings; provided, that, if Contractor determines in its reasonable discretion that 

  

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Owner’s attendance at the meeting would prohibit Contractor from effectively addressing confidential or sensitive issues, Contractor shall have the
right to bar Owner from that portion of such meetings. 
 3.23 Signage. Neither Contractor nor its Subcontractors shall display, install, erect or
maintain any advertising or other signage at the Site without Owner’s prior written approval, other than signs and notices required by applicable Laws, related safety or work rules, site identification, or used to solicit employees for the
performance of the Services. 
 3.24 Interference with Traffic. Contractor shall carry out the Services so as not to interfere unnecessarily or
improperly with (a) Owner’s operations at or in the vicinity of the Site, including the existing Buck coal facility located adjacent to the Site, (after Owner has assumed custody and control of the Simple Cycle Facility) or (b) access
to, use of or occupation of public or private roads, footpaths or properties in the possession of Owner or any other Person. Contractor shall communicate with, and ascertain the requirements of, all Government Authorities in relation to vehicular
access to and egress from the Site and shall comply with any such requirements. Contractor shall be deemed to have satisfied itself as to, and shall be fully responsible for, the routing for delivery of heavy or large loads to the Site so as to
satisfy any requirements of Government Authorities with respect thereto. 
 3.25 Supply of Water and Disposal of Sewage. Contractor shall provide,
within the Site, an adequate supply of drinking and other water for the use of those Persons working on the Site. Contractor shall dispose of, either off-Site or through the Facility’s septic system or other approved method, all on-Site sewage
effluent during performance of the Services. 
 3.26 Housekeeping. At all times during the term of this Agreement, Contractor shall keep the Site and
surrounding area adjacent to where the Services are actually being performed, free from waste materials, equipment, rubbish, debris and other garbage, and liquid and non-liquid materials whether spilled, dropped, discharged, blown out or leaked.
Contractor shall employ adequate dust control measures. To the extent practicable, Contractor and all Subcontractors shall utilize reasonable waste reduction and recycling techniques at the Site. Before the Final Completion Date, Contractor shall
remove from the Site all tools, trailers, surplus and waste materials, and rubbish, and shall otherwise leave the Facility and the Site in a neat and clean condition. If Contractor fails to perform such housekeeping services, Owner, following notice
and a reasonable opportunity for Contractor to cure, may perform such services, and all reasonable and necessary costs incurred in connection therewith shall be assessed against the [*]. 
 4. OWNER RESPONSIBILITIES 
 Owner shall perform the responsibilities set forth in this Article at its own expense and
at those reasonable times as may be required by Contractor for the successful completion of the Work in accordance with the Schedule. 
 4.1 Owner’s
Representative. Owner shall appoint Owner’s Project Director with whom Contractor may consult at all reasonable times, and whose instructions, requests and decisions shall be binding upon Owner as to all matters pertaining to this Agreement
and the performance of the Parties under this Agreement; provided, that no amendment or modification of this Agreement shall be effected except by an Amendment, and no Change shall be effected except as provided in Article 8.

  

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 4.2 Access. Subject to Section 11.1, from the time of the issuance of the Full Notice to Proceed
hereunder until the Combined Cycle Substantial Completion Date, Owner shall provide Contractor, at no additional cost to Contractor, unrestricted right of access to such portion of the Site as Contractor may reasonably require for the construction
of the Facility and for Contractor’s office, warehouse, shop buildings, welding facilities, Contractor’s equipment storage, lay down area, and employee parking. After the Combined Cycle Substantial Completion Date, Owner shall allow
Contractor reasonable access to the applicable portion of the Site in order to achieve Final Completion. 
 4.3 Permits. Owner shall be responsible
for obtaining, renewing and maintaining the permits, licenses, approvals and certifications necessary for the operation, maintenance, use and ownership of the Facility, including the permits listed in Exhibit E (collectively, the
“Owner Permits”). Contractor shall provide Owner with all reasonably necessary information, documents, data, criteria and performance characteristics of the Facility requested or required by Owner to assist Owner in obtaining Owner
Permits. 
 4.4 Owner Equipment. Owner shall procure and provide Owner Equipment by the dates set forth in the Schedule to prevent delay. Except to
the extent that the failure of any Owner Equipment to be provided by the dates set forth in the Schedule or to perform in accordance with its manufacturer’s specifications is caused by Contractor’s failure to perform its obligations in
accordance with this Agreement, any impact to Contractor from the delay (or re-sequence) in delivery or performance of Owner Equipment shall give rise to a Change. 
 4.5 Fuel and Utilities. Owner shall provide, at no cost to Contractor, the electrical interconnect for power export from the Facility at the interconnection points identified in Exhibit A-1, and all fuel necessary for
Commissioning and Performance Testing when requested by Contractor and as required in accordance with the Schedule. Commencing on the Simple Cycle Substantial Completion Date, [*] for the operation of the Simple Cycle Facility. Commencing on the
Combined Cycle Substantial Completion Date, [*] 
 4.6 Operation and Maintenance Staff. Not less than [*] prior to the [*] Date as set forth in the
Schedule, Owner shall provide, under the direction of Contractor through Simple Cycle Substantial Completion, at no cost to Contractor, the complement of qualified operation and maintenance personnel for applicable Commissioning, Performance Testing
and operation of the Simple Cycle Facility. At the earlier of: (a) six months prior to the [*] Completion Date as set forth in the Schedule, or (b) the actual date of Combined Cycle Mechanical Completion, Owner shall provide, under the
direction of Contractor through Combined Cycle Substantial Completion, at no cost to Contractor, the complement of qualified operation and maintenance personnel for applicable Commissioning, Performance Testing and operation of the Combined Cycle
Facility. In addition, Owner, at its cost, shall ensure that an adequate number of qualified representatives from those suppliers supplying Owner Equipment are present at Commissioning or Performance Testing as necessary for technical assistance.

  

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 4.7 Job Site Rules. From the date on which Owner provides Contractor access to the Site to perform the Work until
the Simple Cycle Substantial Completion Date and from the Combined Cycle Tie-In Access Date until the Combined Cycle Substantial Completion Date, Owner, its representatives and agents shall abide by all reasonable Site safety rules promulgated by
Contractor. 
 4.8 Payment. In accordance with the terms and conditions of this Agreement, Owner shall pay Contractor the Contract Price. Owner shall
make all payments promptly when due. 
 5. EQUIPMENT AND WORKMANSHIP 
 5.1 Quality of Equipment and Workmanship. All Equipment and workmanship shall be subject to such tests as Owner may reasonably require at the place of manufacture, fabrication or preparation, or at the Site or
at such other place or places as may be mutually agreed upon by the Parties, including any place of an independent third party. Contractor shall provide such assistance, labor, electricity, fuels, stores, apparatus and instruments as are reasonably
required for examining, measuring and testing any Equipment and Owner Equipment (other than specialty tools as listed in Owner Equipment Contracts) and workmanship, before incorporation into the Facility. 
 5.2 Cost of Tests. 
 (a) Subject to the last sentence
of Section 10.4, the cost of conducting any test related to the Work shall be [*] 
 (b) If the results of any such test indicate
that the applicable Equipment or workmanship do not conform to the requirements of this Agreement (including the Specifications and Prudent Industry Practices) and Owner has reasonable grounds to suspect that any other similar Equipment or
workmanship may not conform to the requirements of this Agreement (including the Specifications and Prudent Industry Practices), Owner may require Contractor to carry out further tests, which in the reasonable opinion of Owner are necessary to
verify that such other similar Equipment or workmanship conforms to the requirements of this Agreement (including the Specifications and Prudent Industry Practices). The costs of any such tests shall be borne by [*] and shall be borne by [*]

 5.3 Samples. At the reasonable request of Owner and at Owner’s cost, Contractor shall supply Owner with samples of Equipment (for which
samples can reasonably be provided). The manufacturer’s standard samples (with relevant information) and any additional samples shall be labeled as to origin and intended use in the Facility. 
 5.4 Inspection of Operations. Owner (and its representatives) shall at all reasonable times have access to the Site and to all workshops and places where
Equipment or Owner Equipment is being manufactured, fabricated or prepared for the Facility. Contractor shall provide Owner a reasonable opportunity to be present for any tests of any Equipment or Owner Equipment. 
  

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 5.5 Examination of Work before Covering. For certain agreed parts of the Work as set forth in Exhibit A-1,
Contractor shall give notice to Owner whenever any such part of the Equipment or Owner Equipment, as applicable, or foundations is or are ready or about to be ready for examination and Owner shall, without unreasonable delay, attend (or inform
Contractor that it is unnecessary for it to attend) for the purpose of examining and measuring such part of the Equipment or Owner Equipment, as applicable, or of examining such Work. No part of such Equipment or Owner Equipment shall be covered up
or put out of view without affording Owner a reasonable opportunity to examine and measure any such part of the Equipment or Owner Equipment. 
 5.6
Uncovering and Making Openings. If, following discovery of defective workmanship or materials in any part of the Work, Owner has reasonable grounds to suspect that further parts of the Work may be similarly defective, Contractor shall, upon
the reasonable request of Owner, provide Owner clear evidence that such other parts are not defective to the reasonable satisfaction of Owner or shall uncover such further parts of the Work or make further openings, in or through the same, and
Contractor shall inspect and repair, if necessary, any such parts. The costs of such work carried out by Contractor under this Section shall be part of the [*] unless the parts of the Work so uncovered turn out to be not defective, in which case
Owner shall bear such costs. 
 6. SCHEDULE 
 6.1
Commencement of Work. Upon receipt of the Limited Notice to Proceed, Contractor shall commence the performance of the Work described in such Limited Notice to Proceed, or, if no Limited Notice to Proceed is given, Contractor shall commence
the performance of the Work upon its receipt of the Full Notice to Proceed, and thereafter continuously and diligently fulfill its obligations under this Agreement. Contractor shall perform its obligations under this Agreement in accordance with the
Schedule set forth in Exhibit B, as such may be modified and updated from time to time in accordance with the terms of this Agreement. 
 6.2
Schedule Requirements; Updates. A true and correct copy of a summary level Schedule, along with Key Contractor Schedule Milestones, is attached as Exhibit B. The Parties agree that the Schedule and the Key Contractor Schedule
Milestones within the Schedule reflect dates for completion of Work activities by Contractor in order to meet the Targeted Simple Cycle Substantial Completion Date and the Targeted Combined Cycle Substantial Completion Date. In addition, Contractor
shall prepare and make available to Owner at all times at the Site, or such other location mutually agreed upon by the Parties, a current, working copy of the detailed Schedule depicting all critical path activities and illustrating the progress
which has been made on the Work against the Schedule (in hard copy and electronic format), including critical path activities interconnected by schedule logics, for Owner’s review and comment. Unless otherwise mutually agreed upon by the
Parties, Contractor shall update the working copy of the Schedule monthly and shall provide a copy to Owner at the Progress Meeting; provided, however, that no update of or revisions to the working copy of the Schedule shall be deemed
to alter, revise or otherwise change the date for any Key Contractor Schedule Milestones, the Guaranteed Simple Cycle Substantial Completion Date, the Guaranteed Combined Cycle Substantial Completion Date or the Guaranteed Final Completion Date, all
of which shall be amended only by a duly executed Change Order or amendment hereto. 
 6.3 [*] 
 (a) [*] 

  

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 [*] 
 (b)
[*] 
 (c) [*] 
 7. CONTRACT PRICE;
COMPENSATION AND PAYMENT 
 7.1 [*] 
 (a) [*] 

  

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 [*] 
 (b)
Limited Notice to Proceed Work. Upon receipt of a Limited Notice to Proceed from Owner, Contractor shall commence the performance of the Services as agreed in such Limited Notice to Proceed and shall continuously and diligently perform such
Services pursuant to this Agreement as outlined in such Limited Notice to Proceed until such time as Owner issues a Full Notice to Proceed. Contractor hereby acknowledges and agrees that a portion of the Work includes Work performed by Contractor
under the [*], which Work has already been paid by Owner thereunder and is not included as part of the [*] or [*]. 
 (c) Full Notice to
Proceed Work. Each Party shall, in good faith, cooperate with the other and use all commercially reasonable efforts to expeditiously update, in accordance with the 

  

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[*], the [*] in order to [*] Upon issuance of the Full Notice to Proceed by Owner, Contractor shall commence the performance of all Services and shall
continuously and diligently perform all Services and its other obligations under this Agreement. 
 (d) [*] 
 (e) [*] 
 7.2 Determination of Monthly Payments of
Contract Price. 
  

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 (a) [*] Payment Invoice. [*] shall submit
to Owner [*] for payment of the amount set forth in the Cash Flow Plan for such month and any other additions or deductions that may have become due, and subject to any limitations, under this Agreement, including those under Sections 7.2(b),
7.3(a), 7.3(b) and 7.5. Submittal of each Monthly Payment Invoice shall constitute a representation by Contractor that (x) Contractor has performed and completed all Work included in each Cost Comparison Report previously
provided hereunder, (y) [*] previously provided hereunder have been calculated and determined in accordance with the requirements of this Agreement, and (z) the amounts included in such [*] Payment Invoice for the current month are the
correct amounts due and owing to Contactor in accordance with this Article 7 and [*] 
 (b) [*] 
 (c) [*] 

  

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 [*] 
 7.3 [*]

 7.4 Deficient Invoices and Payments. 
  

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 (a) If any [*] is deficient, Contractor shall be required to resubmit that [*] in proper form;
provided, however, that Owner shall pay any portion of it that is not deficient or subject to dispute. Owner shall review each [*] and shall endeavor to make exceptions, if any, by providing Contractor with written notice by the
earlier of (i) such date the Monthly Payment Invoice is paid by Owner or (ii) [*] Days after Owner receives the [*]. Notwithstanding anything in this Article to the contrary, the failure of Owner to raise an exception shall not
preclude Owner from subsequently seeking, and Contractor from paying, a refund of any amounts to which Contractor was not entitled under this Agreement, and Owner may, by any payment pursuant to Section 7.2, make any correction or
modification that should properly be made to any amount previously considered due. 
 (b) If Owner provides no exceptions within such time
period, Owner shall pay Contractor, within [*] Days of its receipt of such [*] and such substantiating documentation and materials as Owner may have reasonably required, in U.S. dollars the amounts designated in such [*], plus any additions and
less any deductions which may have become due under this Agreement, as reflected in such [*]. Any amount of a [*] that Owner disputes shall be resolved promptly in accordance with Article 28. Once the dispute is resolved, Owner or Contractor,
as applicable, shall pay any amount owing promptly after the date of the final resolution. If for any reason Owner fails to pay Contractor for all sums due and owing (other than sums that are the subject of a good faith dispute or permitted to be
withheld pursuant to this Section 7.4(b)) within [*] Days after receipt of a substantiated [*] which complies with the requirements of this Article, interest shall thereafter accrue on such sums due and owing at the [*] until
paid. 
 (c) If any Services performed or Equipment supplied by Contractor for which payment has been made hereunder is not in accordance
with this Agreement, Owner may withhold from any Monthly Payment Invoice the cost of rectification or replacement until such rectification or replacement has been completed, and, if Contractor is failing to perform any Services or provide any
Equipment in accordance with this Agreement and Owner has so notified Contractor in writing, Owner may withhold from any Monthly Payment Invoice the estimated value of such Work until it has been performed or provided in accordance with this
Agreement. 
 7.5 [*] 
 (a) [*] 

  

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Contractor in prior [*] and the amount of such [*] that exceeds the [*] threshold, together with the total cumulative amounts for all prior Monthly
Payment Invoices, will not cause the Contractor to exceed the total cumulative value of the Cash Flow Plan through such month, then Owner shall pay such Monthly Payment Invoice in full. [*] 
 (b) The Parties acknowledge that nothing in this Section limits, and the Parties shall not construe this Section as limiting, Contractor’s ability
to accelerate Key Contractor Schedule Milestones, provided that Owner shall not be obligated to pay more than the [*] Amount for any given month. The Parties also acknowledge and agree that nothing in this Section limits, and the Parties shall not
construe this Section as limiting, Contractor’s ability to update the Schedule, other than delaying the Key Contractor Schedule Milestones, in accordance with Section 6.2. 
 7.6 Final Payment. Upon achievement of Final Completion, Contractor shall submit to Owner an invoice for the final payment and other payments due under this
Agreement (the “Final Payment Invoice”) which shall set forth all remaining amounts due to it pursuant to this Agreement. When submitting the Final Payment Invoice, Contractor shall submit a written notice, reasonably satisfactory
to Owner, confirming that the total of the applicable Final Payment Invoice represents full and final settlement of all monies due to Contractor under this Agreement. If requested by Owner, the Final Payment Invoice shall also include a waiver (or a
bond if a Lien exists to indemnify Owner against such Lien) of any Liens; provided, that the waiver or bond may contain a requirement that Owner pay such Final Payment Invoice. The procedures set forth in Section 7.2(b) (including
application of any late payment charge) shall be followed for payment of the applicable Final Payment Invoice, and Owner shall be entitled to offset against any Monthly Payment Invoice or Final Payment Invoice any amounts owing by Contractor to
Owner under this Agreement, including any Liquidated Damages owed after application of the cost sharing provisions in Section 7.3. 
 7.7
Certification by Contractor. In each Monthly Payment Invoice and in the Final Payment Invoice, Contractor shall certify as follows: 
 “There are no known Liens (or such Liens are bonded over) outstanding at the date of this invoice, all amounts that are due and payable to any third party (including Subcontractors) with respect to the Work as of the date of this
invoice have been paid or are included in the amount requested in this invoice, and, except for those bills not paid but so included and amounts disputed between Owner and Contractor, there is no known basis for the creation of any Liens, except in
respect to payments to any Subcontractor withheld for proper reasons in accordance with the contract with such Subcontractor. Contractor hereby waives and releases, to the extent of the receipt of payment requested in this invoice, any right to any
Lien with respect to payment for such portion of the Work included in this invoice.” 
 7.8 No Acceptance by Payment. Owner’s payment of any
invoice, including a Final Payment Invoice, does not constitute approval or acceptance of any item or cost in that invoice nor shall be construed to relieve Contractor of any of its obligations under this Agreement. 
  

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 7.9 Revenue from Use of Facility. Owner shall be entitled to all revenue derived from or in connection with
operation or use of the Facility before and after each of the Simple Cycle Substantial Completion Date and the Combined Cycle Substantial Completion Date. 
 8. CHANGE ORDERS 
 8.1 Changes. Without invalidating this Agreement, Owner may order changes in the Specifications or the Work
consisting of additions, deletions or other revisions (each, a “Change”), provided, that Owner may not delete all Work through this Article. 
 8.2 Change Proposals. If Owner desires to make a Change, it shall submit a written proposal to Contractor describing the Change requested. Contractor shall promptly review Owner’s proposal and submit to
Owner an estimate of the cost to develop a Change Order for such Change, such development costs to be determined [*] the estimated costs to develop the Change Order are reasonably acceptable to Owner, Owner shall promptly provide notice thereof to
Contractor in writing. Upon receipt of such notice, Contractor’s Project Manager shall promptly notify Owner in writing, as soon as practicable, either by giving reasons why Contractor, either directly or indirectly through a Subcontractor,
could not effect such Change (if this is the case) or by submitting a proposed Change Order, which shall include in reasonable detail: 
 (a)
the effect and impact, if any, that the Change would have, in Contractor’s reasonable judgment, on the Work, [*] the Schedule, any warranties herein and the operation or maintenance of the Facility, 
 (b) Contractor’s proposal for any necessary modifications to Work, [*] the Schedule or any warranties herein, and 
 (c) Contractor’s proposal for any necessary modifications to any other provisions of this Agreement, including the Specifications, the Milestones,
the Cash Flow Plan or the Performance Guarantees. 
 Contractor shall provide Owner such supporting documentation for the foregoing as Owner may reasonably
request. Notwithstanding the foregoing, Contractor shall not, as a result thereof, be entitled to any payment hereunder or any extension of the Schedule if such Change was necessary as a result of the fault of Contractor, including any breach by
Contractor of this Agreement. For all proposed Change Orders to the scope of Work which occur after the [*] the Parties agree that the Contractor shall apply or deduct, as applicable, [*] to implement or remove such scope of Work, as applicable.
Owner shall, as soon as practicable after receipt of such submittal and supporting documentation, respond with any comments or questions. Contractor shall not delay any Work while awaiting a response. If Owner responds with comments or questions,
Contractor shall endeavor to address such comments or answer such questions as soon as practicable. If Owner decides not to proceed with a Change, it shall reimburse Contractor for its efforts in developing the estimates and other information
regarding the potential Change, [*] (such reimbursement to be either outside the Contract Price or through 

  

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a separate Change Order); provided, that Owner shall only be required to reimburse Contractor if Contractor has complied with the cost proposal
requirements set forth above. 
 8.3 Change Orders. If Owner wishes to proceed with the Change, Owner shall issue a written order to Contractor
authorizing the Change and setting forth any revisions to this Agreement that it deems, in good faith, necessary or appropriate to effect the Change (the “Change Order”). If Contractor refuses to accept such revisions in the Change
Order, Contractor shall provide Owner written notice thereof within ten (10) Business Day of its receipt of the Change Order, describing in reasonable detail its objections to the Change Order. Owner shall be entitled, despite such notice from
Contractor, to require Contractor to continue to perform its obligations hereunder as would be modified by the Change Order; provided, that, if Owner requires Contractor to so perform and Contractor has provided Owner timely notice objecting to such
Change Order, (x) the Parties shall resolve the Dispute over the necessary or appropriate revisions in accordance with the dispute resolution procedures set forth in Article 28 and (y) if the Change involves additional or disputed
Work, Owner shall continue to pay Contractor pursuant to the payment terms hereof based, subject to resolution of the Dispute pursuant to Article 28 (Owner may require any dispute over price to be resolved pursuant to an “open book”
process), on the [*] Once the Dispute is resolved, any amount owing will be paid within thirty (30) Days after the date of resolution. Contractor shall furnish to Owner such receipts or other vouchers as may be necessary to prove the amounts
paid and labor performed [*] and, before ordering materials, shall submit to Owner quotations for the same for Owner’s approval (such approval not to be unreasonably delayed or withheld). Promptly after the end of each month, Contractor shall
deliver to Owner a priced statement of the labor and materials used during such month associated with such Change performed on a [*] basis. 
 8.4 Owner
Caused Changes. If Contractor experiences an increase in costs or a delay in Contractor’s ability to perform the Work due to Owner or due to a delay in the delivery of any Owner Equipment or a delay resulting from a defect in any Owner
Equipment or a breach of the Owner Equipment Contracts by the suppliers of the Owner Equipment, and such delay or defect is not the result of Contractor’s failure to comply with the requirements of this Agreement, Contractor shall be entitled
to a Change and an equitable adjustment in the [*] and/or the Schedule. 
 8.5 Contractor Proposed Changes. Contractor shall have the right to request
a Change but shall have no right to require a Change which is not contemplated by this Agreement without the prior written consent of Owner; however, nothing herein shall be construed to restrict Contractor’s right to request an equitable
adjustment in the [*] and Schedule to mitigate impacts caused by events such as, but not limited to, Force Majeure and Change in Law. 
 9. FORCE
MAJEURE 
 9.1 Event of Force Majeure. The performance by Owner or Contractor under this Agreement shall be excused to the extent that such
Party’s performance is delayed or prevented by reason of an event of Force Majeure. If a Party is or will be reasonably prevented from performing its obligations under this Agreement by an event of Force Majeure, such Party shall use all
commercially reasonable efforts to remove the cause affecting such non-performance and to minimize and mitigate any delay in or impact upon the performance of this Agreement or any damage to or other impact upon the Equipment or the Owner Equipment.
If an event of Force Majeure occurs, the Parties shall [*] to: (a) [*] for a period of time reasonably necessary to overcome 

  

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the effect of the delay, and (b) the Contract Price, [*] provided, that Contractor shall [*] on Change Orders which result from an event of Force
Majeure. 
 9.2 Notice. If a Party is or will be reasonably prevented from performing its obligations under this Agreement by an event of Force
Majeure, then it shall notify the other Party of the obligations, the performance of which is or will be prevented, and the nature and cause of the event in writing within [*] after the notifying Party or its Project Manager becomes aware, through
the exercise of reasonable diligence, of the event of Force Majeure. The Party affected by an event of Force Majeure shall provide the other Party with weekly updates (a) estimating its expected duration, the cost of any remedial action, and
the probable impact on the performance of its obligations hereunder, (b) of the actions taken to remove or overcome the event of Force Majeure and (c) of the efforts taken to mitigate or limit damages to the other Party. The Party affected
by an event of Force Majeure shall also provide written notice to the other Party when it ceases to be so affected. 
 9.3 Suspension; Termination Due to
Force Majeure. If any event of Force Majeure claimed by Contractor delays Contractor’s performance for an aggregate time period greater than [*] consecutive Days, then Owner, in its sole and absolute discretion, shall have the right to
terminate this Agreement (or the affected portion of the Work) without penalty in accordance with Section 23.7. If any event of Force Majeure claimed by Owner delays Contractor’s performance of substantially all of the Work for an
aggregate time period greater than [*] consecutive Days, then Contractor, in its sole and absolute discretion, shall have the right to suspend performance and demobilize under this Agreement without penalty in accordance with
Section 23.7. If any event of Force Majeure claimed by Owner delays Contractor’s performance of substantially all of the Work in any [*] time period for an aggregate time period greater than [*] Days, then Contractor, in its
sole and absolute discretion, shall have the right to terminate this Agreement without penalty in accordance with Section 23.7. 
 10.
MECHANICAL COMPLETION; PERFORMANCE TESTING; SUBSTANTIAL COMPLETION; FINAL COMPLETION 
 10.1 Mechanical Completion Inspection. At least thirty
(30) Days prior to the date upon which Contractor expects Simple Cycle Mechanical Completion and Combined Cycle Mechanical Completion, respectively, Contractor shall notify Owner in writing thereof and shall take necessary measures to allow a
preliminary inspection of the Simple Cycle Facility or the Combined Cycle Facility (as applicable) to be conducted by Owner and its representatives. Contractor shall include with such notice documents and information prudent or convenient for Owner
to determine whether Simple Cycle Mechanical Completion or Combined Cycle Mechanical Completion, respectively, is achieved. If Owner notifies Contractor of any deficiencies in the Work, Contractor shall immediately remedy such deficiencies as part
of the [*] and provide Owner with the relevant documentary evidence of the correction. 
 10.2 Simple Cycle Mechanical Completion. “Simple
Cycle Mechanical Completion” shall be deemed to have occurred upon satisfaction of all of the following conditions: 
 (a) All
materials, equipment and systems related to the safe start-up and testing of the Simple Cycle Facility shall have been constructed and installed in accordance with this Agreement, including the Specifications and applicable Laws, and in a manner
that does not void any warranties, and the Equipment and Owner Equipment for the Simple Cycle Facility shall be mechanically and 

  

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electrically sound, all required pre-operational testing for the Simple Cycle Facility shall have been satisfactorily completed, and all systems for the
Simple Cycle Facility shall have been checked for alignment, lubrication, rotation and hydrostatic and pneumatic pressure integrity; 
 (b)
All systems and components for the Simple Cycle Facility shall have been flushed and cleaned out as necessary, and the Equipment and Owner Equipment for the Simple Cycle Facility shall be ready to support the commencement of Performance Testing for
the Simple Cycle Facility; 
 (c) The Parties shall have agreed upon the Testing Procedures for the Simple Cycle Facility; 
 (d) The Equipment and Owner Equipment for the Simple Cycle Facility shall be capable of being tested in accordance with Exhibit A-2 without damage
thereto or any other portion of the Facility or to any property or injury to any Person and in compliance with all applicable Laws and all permits and licenses required by such Laws; 
 (e) Contractor shall have provided the applicable Documentation that is needed to start-up, operate and maintain the Simple Cycle Facility (including the
Facility Manuals), which Documentation shall have been approved, in the reasonable determination of Owner, as adequate for the start-up, operation and maintenance of the Simple Cycle Facility (such approval not to be unreasonably withheld or
delayed); 
 (f) Contractor shall have provided the training of Owner’s personnel and representatives as required by Exhibit A-1
for operation of the Simple Cycle Facility; and 
 (g) Contractor shall have delivered to Owner a certificate signed by Contractor certifying
that all of the preceding conditions in this Section 10.2 have been satisfied. 
 Contractor shall not commence Performance Testing for the Simple
Cycle Facility until all of the above conditions for Simple Cycle Mechanical Completion have been satisfied and Contractor shall have provided the required prior notice to Owner of the applicable Performance Testing and given Owner an opportunity to
attend. 
 10.3 Performance Testing. As soon as reasonably practicable following each of Simple Cycle Mechanical Completion and Combined Cycle
Mechanical Completion and after providing Owner at least five (5) Business Days prior written notice (unless Owner agrees to a shorter notice period or regulatory requirements necessitate a longer notice period), Contractor shall commence
Performance Testing of the Simple Cycle Facility or the Combined Cycle Facility, as applicable. Owner and its agents, representatives and invitees, including any independent third party inspector and any of its other contractors for the Project or
their respective agents, representatives and invitees, shall have the right to attend and witness the Performance Testing. After the completion of each Performance Testing for each of the Simple Cycle Facility and the Combined Cycle Facility,
Contractor shall determine and submit to Owner, in writing and electronically, the raw data and completed results of such Performance Testing, together with a comparison of such results to the applicable Performance Guarantees and a statement
whether such results satisfy the applicable Performance Guarantees. By submitting such raw data and completed results, Contractor represents that such raw data, and the conversion of such raw data into the test results, is accurate. 
  

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 10.4 Satisfaction of Performance Testing. Within [*] Days after it receives the results for all of the Performance
Testing for each of the Simple Cycle Facility and the Combined Cycle Facility, including the underlying raw data and other information required by Section 10.3, Owner shall respond in writing to Contractor stating whether (a) such
Performance Testing was performed according to the Testing Procedures, and (b) the results of such Performance Testing satisfied the applicable Performance Guarantees, or, if Owner does not believe that is the case, Owner shall provide its
reasons. Upon its receipt of any such response from Owner that is not in the affirmative, Contractor shall promptly take whatever action shall be necessary to cure the defect in such Performance Testing, adjust or modify any of the Equipment, or
require adjustment or modification of Owner Equipment in accordance with Section 3.1(a)(ii), or otherwise in order to satisfy the applicable Performance Guarantees so noted by Owner and shall promptly repeat such Performance Testing in
accordance with Section 10.3 and this Section. If, following such Performance Testing, either: (a) Owner agrees that the applicable Performance Guarantees have been satisfied and that such Performance Testing was performed according
to the Testing Procedures, (b) the failure to meet any applicable Performance Guarantee is attributable to the performance of Owner Equipment (other than due to Contractor’s failure to fulfill its obligations set forth in
Section 3.1(a)), or (c) Owner fails to respond within the time period set forth above, then the applicable Performance Guarantees shall be deemed to have been satisfied on the date of completion of such Performance Testing for the
purposes of calculating the applicable Delay Liquidated Damages. Notwithstanding anything in this Article to the contrary, no agreement, confirmation, statement or otherwise of, or the lack thereof from, Owner relating to whether such Performance
Testing was performed according to the Testing Procedures or whether the results of such Performance Testing satisfied the applicable Performance Guarantees shall relieve Contractor of any of its obligations under this Agreement. All costs that
Contractor incurs in satisfying its obligations under this Article are part of the [*] except that Contractor shall be reimbursed through a Change Order for additional costs it may incur due to defects in Owner Equipment that are not the result of
Contractor’s failure to comply with the requirements set forth in this Agreement or damage to Equipment included in the Simple Cycle Facility that was not the fault of Contractor or any Subcontractor, including for any repeat Performance
Testing and the consumables and spare parts associated therewith. 
 10.5 Substantial Completion Punch List. Prior to each of Simple Cycle Substantial
Completion and Combined Cycle Substantial Completion, Contractor shall submit to Owner, for Owner’s review and approval (not to be unreasonably withheld or delayed), the Substantial Completion Punch List. Following review and approval of such
Substantial Completion Punch List, Contractor shall work diligently to complete all items contained thereon in a timely manner in accordance with this Agreement. 
 10.6 Simple Cycle Substantial Completion. “Simple Cycle Substantial Completion” shall be deemed to have occurred upon satisfaction of all of the following conditions: 
 (a) Simple Cycle Mechanical Completion shall have been achieved; 
 (b) The Simple Cycle Facility shall be capable of being operated in accordance with the Specifications without damage thereto or to any property or injury to any Person and in compliance with all Owner Permits, Laws
and orders of all Government Authorities then in effect; 
 (c) Contractor shall have completed the Performance Testing for the Simple Cycle
Facility and the results of such Performance Testing shall have satisfied the applicable Minimum 

  

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Performance Guarantees, all according to the applicable Testing Procedures and the requirements of this Article 10; 
 (d) Contractor shall have completed the performance of the Services for the Simple Cycle Facility according to all of the provisions of this Agreement,
with the exception of those items specified in the Substantial Completion Punch List, which Contractor shall have prepared and for which Contractor shall have received approval from Owner (such approval not to be unreasonably withheld or delayed);

 (e) Contractor shall have delivered to Owner all Documentation for the Simple Cycle Facility that Contractor is required to deliver to
Owner pursuant to Exhibit A-3; and 
 (f) Contractor shall have delivered to Owner a certificate signed by Contractor certifying that
all of the preceding conditions in this Section have been satisfied. 
 Upon satisfaction of all of the foregoing conditions for Simple Cycle Substantial
Completion, Owner shall accept the Simple Cycle Facility, subject to Combined Cycle Substantial Completion and Final Completion according to this Article 10, by delivering to Contractor notice of that acceptance promptly, and Contractor shall
turn over risk of loss and care, custody, control and operation of the Simple Cycle Facility to Owner. For the purposes of calculating Simple Cycle Liquidated Damages, the date upon which Contractor submits the certifying notice required by this
Section 10.6 (if such notice is accurate) shall be deemed the Simple Cycle Substantial Completion Date. 
 To the extent that Simple Cycle
Substantial Completion is not achieved by the Guaranteed Simple Cycle Substantial Completion Date as a result of the improper performance of any Owner Equipment or any other fault of any supplier of any Owner Equipment and Contractor has complied
with its obligations relating to such Owner Equipment in accordance with Section 3.1(a)(ii), Contractor shall be entitled to a Change Order providing, in addition to reimbursement of any increased costs incurred by Contractor, for an
equitable extension to the Guaranteed Simple Cycle Substantial Completion Date. 
 10.7 Combined Cycle Mechanical Completion. “Combined Cycle
Mechanical Completion” shall be deemed to have occurred upon satisfaction of all of the following conditions: 
 (a) All materials,
equipment and systems related to the safe start-up and testing of the Facility shall have been constructed and installed in accordance with this Agreement, including the Specifications and applicable Laws, and in a manner that does not void any
warranties, and the Equipment and Owner Equipment for the Combined Cycle Facility shall be mechanically and electrically sound, all required pre-operational testing for the Combined Cycle Facility shall have been satisfactorily completed, and all
systems for the Combined Cycle Facility shall have been checked for alignment, lubrication, rotation and hydrostatic and pneumatic pressure integrity; 
 (b) All systems and components for the Combined Cycle Facility shall have been flushed and cleaned out as necessary, and the Equipment and Owner Equipment for the Combined Cycle Facility shall be ready to support the
Combined Cycle Tie-In and the commencement of Performance Testing for the Combined Cycle Facility; 
 (c) The Parties shall have agreed upon
the Testing Procedures for the Combined Cycle Facility; 
  

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 (d) The Equipment and Owner Equipment for the Combined Cycle Facility shall be capable of being tested in
accordance with Exhibit A-2 without damage thereto or any other portion of the Facility or to any property or injury to any Person and in compliance with all applicable Laws and all permits and licenses required by such Laws; 
 (e) Contractor shall have provided the applicable Documentation that is needed to start-up, operate and maintain the Facility (including the Facility
Manuals), which Documentation shall have been approved, in the reasonable determination of Owner, as adequate for the start-up, operation and maintenance of the Facility (such approval not to be unreasonably withheld or delayed); 
 (f) Contractor shall have provided the training of Owner’s personnel and representatives as required by Exhibit A-1 for operation of the
Facility; and 
 (g) Contractor shall have delivered to Owner a certificate signed by Contractor certifying that all of the preceding
conditions in this Section 10.7 have been satisfied. 
 Contractor shall not commence Performance Testing for the Combined Cycle Facility until
all of the above conditions for Combined Cycle Mechanical Completion have been satisfied and Contractor shall have provided the required prior notice to Owner of the applicable Performance Testing and given Owner an opportunity to attend.

 If Contractor is unable to satisfy any of the foregoing conditions as a result of any event or circumstance for which neither Contractor nor any
Subcontractor is responsible that occurs during the period between the Simple Cycle Substantial Completion Date and the Combined Cycle Tie-In Access Date or as a result of the improper performance of any Owner Equipment or any other fault of any
supplier of any Owner Equipment, and Contractor has complied with its obligations relating to such Owner Equipment in accordance with Section 3.1(a)(ii), Contractor shall be entitled to a Change Order providing, at Owner’s election,
that such condition is deemed to have been satisfied (but only to the extent Contractor is unable to satisfy such condition) or for an equitable adjustment to the Work, the [*] and the Schedule or otherwise as may be reasonable under the
circumstances. 
 10.8 Combined Cycle Substantial Completion. “Combined Cycle Substantial Completion” shall be deemed to have
occurred upon satisfaction of all of the following conditions: 
 (a) Combined Cycle Mechanical Completion and Combined Cycle Tie-In shall
have been achieved; 
 (b) The Combined Cycle Facility shall be capable of being operated in accordance with the Specifications without
damage thereto or to any property or injury to any Person and in compliance with all Owner Permits, Laws and orders of all Government Authorities then in effect; 
 (c) Contractor shall have performed Performance Testing for the Combined Cycle Facility and the results of such Performance Testing shall have satisfied the applicable Minimum Performance Guarantees, all according to
the applicable Testing Procedures and the requirements of Article 10; 
  

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 (d) Contractor shall have completed the performance of the Services according to all of the provisions of
this Agreement, with the exception of those items specified in the Substantial Completion Punch List, which Contractor shall have prepared and for which Contractor shall have received approval from Owner (such approval not to be unreasonably
withheld or delayed); 
 (e) Contractor shall have delivered to Owner all Documentation that Contractor is required to deliver to Owner
pursuant to Exhibit A-3; and 
 (f) Contractor shall have delivered to Owner a certificate signed by Contractor certifying that all of
the preceding conditions in this Section have been satisfied. 
 Upon satisfaction of all of the foregoing conditions for Combined Cycle Substantial
Completion, Owner shall accept the Combined Cycle Facility, subject to Final Completion according to this Article 10, by delivering to Contractor notice of that acceptance promptly, and Contractor shall turn over risk of loss and care,
custody, control and operation of the Combined Cycle Facility to Owner. For the purposes of calculating Combined Cycle Liquidated Damages, the date upon which Contractor submits the certifying notice required by this Section 10.8 (if
such notice is accurate) shall be deemed the Combined Cycle Substantial Completion Date. 
 If Contractor is unable to satisfy any of the foregoing
conditions as a result of any event or circumstance for which neither Contractor nor any Subcontractor is responsible or as a result of the improper performance of any Owner Equipment or any other fault of any supplier of any Owner Equipment and
Contractor has complied with its obligations relating to such Owner Equipment in accordance with Section 3.1(a)(ii), Contractor shall be entitled to a Change Order providing, at Owner’s election, that such condition is deemed to
have been satisfied (but only to the extent Contractor is unable to satisfy such condition) or for an equitable adjustment to the Work, the [*] or otherwise as may be reasonable under the circumstances. 
 10.9 Final Completion. “Final Completion” shall be deemed to have occurred upon satisfaction of all of the following conditions: 
 (a) Contractor shall have achieved all conditions for Simple Cycle Substantial Completion and Combined Cycle Substantial Completion; 
 (b) Contractor shall have completed all Performance Testing and either (i) all Performance Guarantees shall have been satisfied according to the
Testing Procedures, or (ii) Contractor shall have satisfied all of the Make Right Performance Guarantees and shall have satisfied its Performance Liquidated Damage obligations as required by Section 12.2 for those Performance
Guarantees that allow a performance buy-down; 
 (c) The performance of the Services (except for Services relating to any warranty Work)
shall be one hundred percent (100%) complete, including the completion (or buying down) by Contractor of all items on the Substantial Completion Punch List in accordance with this Agreement; 
 (d) Contractor shall have delivered to Owner the Documentation that Contractor is required to deliver to Owner pursuant to Exhibit A-3 dated as of
the Final Completion Date; 
  

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 (e) There shall exist no Contractor Default and no event which, with the passage of time or the giving of
notice or both, would be a Contractor Default; and 
 (f) Contractor shall have delivered to Owner a certificate signed by Contractor
certifying that all of the preceding conditions in this Section have been satisfied. 
 11. OWNER’S RIGHT TO OPERATE 
 11.1 [*] Upon the Simple Cycle Substantial Completion Date, Owner shall take care, custody and
control of the Simple Cycle Facility and shall have the right, in its sole and absolute discretion, to operate the Simple Cycle Facility without interference from the Work for up to [*] Days, provided that Owner shall continue to
provide Contractor reasonable access to the Site, in order for Contractor to complete the Work listed on the Substantial Completion Punch List and to complete the Work necessary in order to complete the Combined Cycle portion of the Work. Owner
shall notify Contractor of the Combined Cycle Tie-In Access Date, which shall occur no later than such [*] Day, at which time Contractor
shall, as expeditiously as reasonably practicable, effect the Combined Cycle Tie-In. Notwithstanding the foregoing, if Contractor is not ready to effect the Combined Cycle Tie-In by such [*] Day, Owner shall have the right to continue to
operate the Simple Cycle Facility until such date as Contractor is, and has notified Owner that it is, prepared to effect the Combined Cycle Tie-In. If Owner elects to operate the Simple Cycle Facility without permitting the Combined Cycle Tie-In
for a period in excess of [*] Days or otherwise notifies Contractor in writing that it is not ready for Contractor to effect the Combined Cycle Tie-In by such [*] Day, Contractor shall be entitled to a Change Order providing for an
equitable extension to the Guaranteed Combined Cycle Substantial Completion Date. 
 11.2 Owner’s Right to Operate Prior to Satisfaction of
Performance Guarantees. If the Simple Cycle Facility or the Combined Cycle Facility fails to satisfy the applicable Performance Guarantees during the applicable Performance Testing or fails to achieve Simple Cycle Substantial Completion by the
Guaranteed Simple Cycle Substantial Completion Date or Combined Cycle Substantial Completion by the Guaranteed Combined Cycle Substantial Completion Date and the Simple Cycle Facility or the Combined Cycle Facility can be operated in compliance with
applicable Laws, Owner, in its sole discretion, shall have the right nonetheless to operate the Simple Cycle Facility or the Combined Cycle Facility and shall give Contractor written notice of its decision. If Owner elects to operate the Simple
Cycle Facility or the Combined Cycle Facility and, during such time, does not permit Contractor to cure the Defects necessary to satisfy the applicable Minimum Performance Guarantees, then the Guaranteed Simple Cycle Substantial Completion Date,
Guaranteed Combined Cycle Substantial Completion Date and Guaranteed Final Completion Date (if such dates have not passed) shall be extended on an equitable basis until such time as Owner tenders the Simple Cycle Facility or the Combined Cycle
Facility to Contractor for further Services and Performance Testing, and Contractor shall be entitled to a Change Order for equitable schedule and/or price adjustment. Owner shall bear the risk of loss during such time as it operates the Simple
Cycle Facility or the Combined Cycle Facility. Owner’s operation of the Simple Cycle Facility or the Combined Cycle Facility under this Section shall not reduce Contractor’s obligations under this Agreement, including Contractor’s
obligation to cause each of the Simple Cycle Facility and the Combined Cycle Facility to satisfy the Specifications and applicable Performance Guarantees, except for normal wear and tear and operation not in accordance with the Specifications or
Prudent Industry Practices. Notwithstanding anything to the contrary, if Owner elects to operate the Facility for more than [*] as contemplated in this Section 11.2, and such election to operate 
 [*] Redacted type. 
  

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prevents Contractor from proceeding timely with curing any Defects during such operating time, then the degradation curves set forth in Exhibit A-2
shall apply. 
 12. [*] 
 12.1 [*]

 [*] Redacted type. 
  

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 [*] 
 12.2 [*] 
 [*] Redacted type. 
  

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 [*] 
 12.3 [*] 
 12.4 Payment. The [*] specified in Sections 12.1 and 12.2, if owing following the application
of the provision of Section 12.3, shall be due and payable [*] after written demand by Owner. [*] that remain unpaid after the expiration of such ten-Day period shall bear interest at the Prime Interest Rate plus
4% per annum or the highest rate allowed by applicable Law, whichever is less. Any [*] disputed by Contractor and determined to be payable pursuant to the resolution of such dispute in accordance with this Agreement shall also bear
interest from the expiration of the ten-Day period referred to above at the Prime Interest Rate plus 4% per annum or the highest rate allowed by applicable Law, whichever is less. Notwithstanding the assessment of interest, and in addition to
its other rights and remedies, Owner shall have the right to offset the amount of any [*] plus interest against any amounts due or that may become due to Contractor under this Agreement. Any amounts of [*] determined to be wrongfully
assessed against Contractor by Owner shall bear interest, from the time such amounts were paid by Contractor or offset by Owner, at the Prime Interest Rate plus 4% per annum or the highest rate allowed by applicable Law, whichever is less.

 13. WARRANTY 
 13.1 Services Warranty Period.
Contractor warrants that all Services will be performed in a professional and workmanlike manner, will conform to the requirements of this Agreement, including the requirements set forth in Section 3.1(a)(ii), and will reflect competent
professional knowledge and judgment for a period commencing on the date such Service was performed and ending [*] after the Combined Cycle Substantial Completion Date (the “Services Warranty Period”), provided that the
Services Warranty Period for each Service performed with respect to the Substantial Completion Punch List shall commence upon Contractor’s completion of, and Owner’s acceptance of, such Service and shall continue for a period of [*]
thereafter or after the Combined Cycle Substantial Completion Date, whichever is later. 
 [*] Redacted type. 
  

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 13.2 Equipment Warranty Period. Contractor warrants that the following Equipment furnished to Owner will be free
from Defects in workmanship and material and will conform to this Agreement, including the Specifications: 
 (a) for Equipment to be turned
over at Simple Cycle Substantial Completion, a period of [*] from Simple Cycle Substantial Completion; and 
 (b) for Equipment to be
turned over at Combined Cycle Substantial Completion, a period of [*] from Combined Cycle Substantial Completion 
 (collectively, the
“Equipment Warranty Period”), provided that the Equipment Warranty Period for each item on the Substantial Completion Punch List shall commence upon Contractor’s completion of, and Owner’s acceptance of, the particular
Substantial Completion Punch List item and shall continue for a period of [*] thereafter or after the Combined Cycle Substantial Completion Date, whichever is later. In addition, to the extent the Owner and Contractor negotiate an equipment
warranty period with a Subcontractor that exceeds the time periods set forth herein, Contractor shall assign for the benefit of the Owner any such warranty period that exceeds the [*] period. 
 13.3 Extension of Warranty Periods. If a Defect (as defined in Section 13.4) is discovered within the applicable Warranty Period and such Defect is
not cured to the reasonable satisfaction of Owner, then the applicable Warranty Period shall be extended to the [*] of the date such Defect was corrected, but only with respect to the Equipment or Service that was the subject of such Defect.
In no event shall any Services Warranty Period or Equipment Warranty Period extend beyond [*] from the Combined Cycle Substantial Completion Date. 
 13.4 Defects. If, within the Services Warranty Period or Equipment Warranty Period, as applicable, breaches or failures of the foregoing warranties (“Defects”) are discovered by Owner or Contractor, Contractor shall
commence, within a timely manner upon being discovered or upon notice from Owner, to correct, and diligently and continually prosecute measures which are reasonably calculated to correct, such Defects, including re-performance or re-provision of any
affected portion of the Work and repair of any resulting damage, and shall demonstrate to Owner’s reasonable satisfaction that such Defects have been properly corrected. The Parties shall use commercially reasonable efforts to coordinate
performance of warranty Work at a time responsive to and consistent with Owner’s interest in the efficient operation of its business and so as to minimize revenue loss to Owner and to avoid disruption of Owner’s operations at the Facility.
Contractor shall be responsible for all inspection, removal, packaging, transportation, installation, and consulting for the correction of Defects. Owner shall provide Contractor with reasonable access at the Site to correct Defects. All costs of
correcting Warranty Defects shall be treated as [*]. All such Warranty costs shall be [*] 
 13.5 Responsibility for Warranty Work.
Contractor shall have primary liability with respect to the warranties in this Agreement other than for the Owner Equipment, whether or not any Defect or other matter is also covered by a warranty of a Subcontractor, and Owner need only look to
Contractor for corrective action. In addition, Contractor’s warranties shall not be restricted in any manner by any warranty of a Subcontractor, and the refusal of a Subcontractor to provide or honor a warranty or to correct defective,
deficient or nonconforming Work shall not excuse Contractor from its liability on 
 [*] Redacted type. 
  

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its warranties to Owner. Contractor shall have no responsibility to perform any warranty Work with respect to Owner Equipment unless any Defect with respect
to such Owner Equipment is attributable to Contractor’s failure to comply with the requirements set forth in Section 3.1(a). 
 13.6
Title Warranty. Contractor warrants that it shall provide to, and, effective as of the applicable date set forth in Section 22.1, hereby assigns and transfers to, Owner good, marketable and exclusive title to the paid-up
Equipment, free and clear of all Liens; provided, however, that Contractor shall not be required to assign and transfer to Owner good, marketable and exclusive title to certain intellectual property to be licensed to Owner as provided
in Article 19. Contractor represents and warrants that it has the right to grant the license rights granted by Contractor herein. In the event of any nonconformity with or breach of this Section, Contractor shall, at its own expense,
promptly, and in any event within thirty (30) Days thereof, remove any Lien on any of such Equipment or otherwise provide Owner good, marketable and exclusive title to such Equipment, free and clear of all Liens, or, as the case may be, provide
Owner the license rights purported to be granted by Contractor herein; provided, that, if Contractor is unable within such thirty (30) Day period to remove such Lien, Contractor may post a bond in an amount (and otherwise in form and
substance) reasonably acceptable to Owner so long as Contractor continues to use all commercially reasonable efforts to remove such Lien as promptly as practicable. This Section shall survive the expiration, cancellation or termination of this
Agreement. 
 13.7 Intellectual Property Warranty. Contactor represents and warrants that the Services performed by Contractor or its Subcontractors,
the Equipment and the Documentation, or any part of any of the foregoing, will not infringe or constitute a misappropriation of any right of any third party, including any copyrights, mask work rights, patent rights, trademark rights, trade secret
rights or confidentiality rights. 
 13.8 Warranty Assistance. During the Warranty Periods, Owner shall, without cost to Contractor: (a) provide
Contractor reasonable working access (subject to such restrictions and conditions as Owner may have instituted generally for its contractors) to the Site to remove, disassemble, replace and reinstall any Equipment with respect to which a Defect
exists; (b) remove any material or structures not provided or installed by Contractor; and (c) provide Contractor reasonable access to Facility personnel as are reasonably necessary to assist Contractor in the performance of its warranty
obligations. 
 13.9 Conditions of Warranty. To the extent that Contractor shows that any failure by Contractor to meet the foregoing warranties is
the result of (a) Owner’s failure to maintain the Equipment furnished in a reasonable manner or in accordance with any reasonable Contractor requirements conveyed to Owner, (b) Owner’s failure to operate the Equipment within its
rating or to operate and maintain the Equipment in a reasonable manner consistent with equipment vendors’ instructions, (c) Owner subjecting the Equipment to abuse or misuse, or (d) normal wear and tear or corrosion inherent in the
operation of the Facility, then, to that extent, Contractor shall be excused for said failure. 
 13.10 Exclusive Warranties. THE WARRANTIES SET FORTH
IN THIS AGREEMENT ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES WHETHER STATUTORY, EXPRESS, OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR
USAGE OF TRADE). Correction of Defects in the manner and within the period of time provided herein shall constitute complete fulfillment of all of the liabilities of 

  

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Contractor with respect to such Defect, whether the claims by Owner are based in contract, in tort (including negligence and strict liability), or otherwise.

 14. INDEMNIFICATION 
 14.1 Contractor’s
Indemnity. Contractor shall indemnify and hold harmless Owner, its parents and Affiliates, and their respective partners, shareholders, members, agents, employees, officers, directors and lenders (collectively, the “Owner
Indemnitees”) from and against: 
 (a) any and all Third Party Claims and all damages, liabilities, losses, costs and expenses
associated therewith (including attorneys’ fees and other professionals’ fees) for any injury of or death to persons, damage to or destruction of third party property, contamination of the environment or injury to natural resources,
whether contractual, in tort, or as a matter of strict liability or liability imposed by Law, to the extent any of the foregoing arise out of the negligent or willful or wanton acts or omissions of Contractor, any Subcontractor or any of their
respective employees, agents or third parties over which either has reasonable control during the performance of the Services, and 
 (b) any
and all claims, demands or causes of action of every kind and character by any Person and all damages, liabilities, losses, costs and expenses associated therewith (including attorneys’ fees and other professionals’ fees) for: 

(i) any violation or alleged violation of Laws by Contractor, any Subcontractor or any of their respective employees, agents or third
parties over which either has reasonable control (unless caused by Owner, any of Owner’s Affiliates or subcontractors, or any of their respective employees or agents or third parties over which any of them has control); 
 (ii) any action taken by Contractor, any Subcontractor or any of their respective employees, agents or third parties over which either has
reasonable control, which action results directly in Owner violating any Law; or 
 (iii) any prohibited assignment by
Contractor of this Agreement. 
 14.2 Owner’s Indemnity. Owner shall indemnify and hold harmless Contractor, its parents and Affiliates and their
respective partners, shareholders, members, agents, employees, officers, directors, and lenders (collectively, the “Contractor Indemnitees” and, together with the Owner Indemnitees, collectively the “Indemnified
Parties” and individually an “Indemnified Party”) from and against: 
 (a) any and all Third Party Claims and all
damages, liabilities, losses, costs and expenses associated therewith (including attorneys’ fees and other professionals’ fees) for any injury of or death to persons, damage to or destruction of third party property, contamination of the
environment or injury to natural resources, whether contractual, in tort, or as a matter of strict liability or liability imposed by Law, to the extent any of the foregoing arise out of the negligent or willful or wanton acts or omissions of Owner
or any of its employees, agents or third parties over which it has reasonable control during the performance of the Services; and 
 (b) any
and all claims, demands or causes of action of every kind and character by any Person and all damages, liabilities, losses, costs and expenses associated therewith (including attorneys’ fees and other professionals’ fees) for: 

 

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 (i) any violation or alleged violation of Laws by Owner, its employees or agents or third
parties over which it has control (unless directly caused by Contractor, any of Contractor’s Affiliates, any Subcontractor, or any of their respective employees or agents or third parties over which any of them has control); 
 (ii) any prohibited assignment of this Agreement by Owner; or 
 (iii) any pre-existing Hazardous Materials. 
 14.3 Intellectual Property Indemnity. Contractor shall, at its own non-reimbursable expense, defend, indemnify and hold harmless Owner Indemnitees against any and all damages, liabilities, losses, costs and expenses (including
attorneys’ fees and other professionals’ fees) associated with any claims, suits or proceedings brought against any of the Owner Indemnitees based on an allegation that any Services performed by Contractor or its Subcontractors, the
Facility, the Documentation or the Equipment, or any part thereof, or use thereof, constitutes an infringement or misappropriation of any right of any third party, including any copyrights, mask work rights, United States patent rights, trademark
rights, trade secret rights, confidentiality rights or other property rights, if Contractor is notified promptly in writing and given authority, information, and assistance for the defense or settlement of such claim suit or proceeding. Contractor
will not be responsible for any settlement of such suit or proceeding made without its written consent. Contractor shall obtain Owner’s written consent, which may be withheld in Owner’s sole discretion, prior to entering into any
settlement of any such claim suit or proceeding that does not include a complete liability release for all Owner Indemnitees or that would prohibit or restrict use of any part of the Facility, the Documentation or the Equipment by any Owner
Indemnitees. If the use of the Facility, the Documentation or the Equipment, or any part thereof, as a result of any such claim, suit or proceeding is held to constitute infringement, and its use by any of the Owner Indemnitees is enjoined,
Contractor shall, at its option and its own non-reimbursable expense, either: (i) procure for such Owner Indemnitees the right to continue using the Facility, the Documentation or the Equipment, or any part thereof to the full extent provided
herein; (ii) replace same with substantially equivalent non-infringing Facility, Documentation or Equipment or parts thereof acceptable to Owner; or (iii) modify same in a manner acceptable to Owner and in conformance with the functional
requirements of this Agreement so it becomes non-infringing. Contractor shall flow down the requirements of this Section 14.3 and make Owner direct beneficiary of the indemnification obligation in its subcontracts with all Major
Subcontractors. Notwithstanding anything to the contrary, Contractor’s obligations under this Section 14.3 shall not apply to the Owner Equipment or any manuals or other documentation provided by the supplier of the Owner Equipment.

 14.4 Indemnity Procedures for Third Party Claims. 
 (a) In the event of a Third Party Claim with respect to which an Indemnified Party has a claim for indemnification under this Article, then the Indemnified Party must notify the indemnifying Party thereof in writing
of the existence of such Third Party Claim and must deliver copies of any documents served on the Indemnified Party with respect to such Third Party Claim; provided, however, that any failure to notify the indemnifying Party or deliver
such copies will not relieve the indemnifying Party from any obligation hereunder unless (and then solely to the extent that) the indemnifying Party is materially prejudiced by such failure. 
 (b) The indemnifying Party shall have the right to conduct and control, through counsel of its own choosing, reasonably acceptable to the Indemnified
Party, any Third Party Claim; 

  

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provided, however, that (i) if requested by the Indemnified Party, the indemnifying Party provides the Indemnified Party with evidence
reasonably acceptable to the Indemnified Party that the indemnifying Party will have the financial resources to defend against the Third Party Claim and fulfill its indemnification obligations hereunder, (ii) the Indemnified Party may, at its
election, participate in the defense thereof at its sole cost and expense and (iii) if (A) the indemnifying Party shall fail to defend any Third Party Claim, (B) the Parties mutually agree in writing to allow the Indemnified Party to
assume the defense of such Third Party Claim and forego any indemnity claimed under this Article, (C) in the reasonable opinion of legal counsel for the Indemnified Party, such Third Party Claim involves the potential imposition of criminal
liability on the Indemnified Party, its directors, officers, employees or agents, (D) in the reasonable opinion of legal counsel for the Indemnified Party, the Third Party Claim involves, or is likely to involve, any claim by any Government
Authority or (E) in the reasonable opinion of legal counsel for the Indemnified Party, an actual or potential conflict of interest exists where it is advisable for such Indemnified Party to be represented by separate counsel, then the
Indemnified Party shall be entitled to control and assume responsibility for the defense of such Third Party Claim, at the cost and expense of the indemnified Party. The indemnifying Party may, in any event, participate in such proceedings at its
own cost and expense. 
 (c) The indemnifying Party, in the defense of any such litigation, other proceeding or other claim, shall have the
right in its sole discretion to settle such Third Party Claim only if (i) such settlement involves only the payment of money and execution of appropriate releases of the Indemnified Party and its Affiliates, (ii) there is no finding or
admission of any violation of Law, and (iii) the Indemnified Party or its Affiliates will have no liability with respect to such compromise or settlement. Otherwise, no such Third Party Claim shall be settled or agreed to without the prior
written consent of the Indemnified Party. The Indemnified Party and the indemnifying Party shall fully cooperate in good faith in connection with such defense and shall cause their legal counsel, accountants and affiliates to do so, and shall make
available to the other Party all relevant books, records, and information (in such Party’s control) during normal business hours, and shall furnish to each other such other assistance as the other Party may reasonably require in connection with
such defense, including making employees of the Indemnified Party available to testify and assist others in testifying in any such proceedings. 
 15.
INSURANCE 
 15.1 [*] 
 [*] Redacted type.

  

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 (b) [*] 
 (c) [*] shall be in the name of the Owner. Contractor, its Affiliates and its Subcontractors [*] shall be included as an additional insured. 
 (d) [*], Contractor (and its Subcontractors) shall be responsible for deductibles up to [*] per occurrence for all other real property and
tangible personal property (except up to [*] per occurrence for start-up and testing of all Equipment) at the Site [*]. 
 (e)
[*] shall, and shall cause its underwriters to, waive subrogation against [*] and its [*] on such [*] insurance policy except for any claims or matters in which the Equipment warranty or the Services warranty provided by
[*] hereunder are involved. It is further agreed that [*] may elect to [*]. In the event that [*] elects to self-insure [*] shall waive its right to recover the cost to repair or replace such loss or damage from
[*] in excess of the deductible and to the extent that coverage would have been available had Owner obtained the foregoing [*] insurance policy. Should a loss be sustained at the Site and in the course of construction to property that
is to be incorporated into the Project, [*] shall replace or repair such loss or damage in accordance with the terms of this Agreement, and [*] shall be reimbursed for all such costs plus the cost of extended overhead (including for
home office costs and procurement costs). [*] shall act on behalf of [*] for the purpose of adjusting any loss [*]. 
 15.2 [*]. 

 (a) [*] until Combined Cycle Final Completion, [*], and without limiting its indemnity obligations under this Agreement,
Contractor shall establish a [*], and shall, for all tiers who have enrolled or shall enroll in the [*] procure, maintain and pay the premiums for [*] 
 [*] Redacted type. 
  

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	 Type
	  	 Coverage Amount

	 (a)    Workers’ Compensation including U.S. Longshoremen’s and Harbor Workers Act Coverage or other required
coverage as appropriate and including b) below
	  	Statutory
		
	 (b)    Employers Liability
	  	[*] each accident; [*] each employee disease; [*] policy limit disease
		
	 (c)    Commercial General Liability Insurance shall be written ISO occurrence Form (CG
00 01 10 01) or equivalent and must include the following:
  
 •     Products Liability/Completed Operations for [*]beyond Final Completion
  
 •     Coverage for all premises and operations. The policy shall be endorsed to provide the
Designated Construction Project(s) General Aggregate Limit Endorsement (ISO CG 2503, Ed 03/97)
  
 •     If Work to be performed includes construction or demolition operations within 50 feet of any
railroad property and affecting any railroad bridge or trestle, tracks, road-beds, tunnel, underpass or crossing, then such policy will include a Railroad’s Contractual Liability Endorsement (ISO CG 2417, Ed 01/96);
  
 •     Coverage for demolition
and removal of any building or structure, collapse, explosion, blasting, excavation and damage to property below the surface of the ground (XCU coverage).
  
 •     Hazard and Personal Injury, with Employee Exclusion and Contractual Exclusion
Deleted
	  	[*] per occurrence with [*] aggregate project specific (with dedicated coverage amounts fully available to any obligation under this Agreement)

 [*] Redacted type. 
  

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	 Type
	  	 Coverage Amount

	 (d)    Umbrella/Excess Liability Insurance following form and excess of coverages in
sections a, b and c above.
  
 Hired and Non-Owned automobile coverage
added via endorsement for Owner and Contractor
	  	[*] project specific per occurrence and aggregate (with dedicated coverage amounts that are fully available to any obligations under this Agreement)

 (b) [*] Owner shall have authority to exclude any Subcontractor [*], such
decision not to be unreasonably delayed or withheld. Until (a) [*] and (b) [*] for all such Subcontractors who [*] but who are engaged to perform any Service under this Agreement, Contractor shall itself obtain and maintain and
shall obtain and maintain a certificate of insurance from such Subcontractor evidencing that its Subcontractors have obtained and will maintain and keep in full force and effect, as part of the [*], Workers Compensation, Employers Liability,
General Liability and Excess Liability insurance in the amounts and per the requirements listed in Section 15.2(a) above and that meet the requirements of Section 15.2(c) and Section 15.4 below. Such insurance
will defend and indemnify Contractor, such Subcontractor, and Owner and their respective trustees, directors, officers, partners, agents, representatives, and employees from claims of the type and minimum limits as set forth in
Section 15.2(a) above. 
 (c) [*] All of the above-referenced insurance coverages in (a) and (b) above and the
additional insurance coverages as required from time to time as noted in Section 15.3 below (which are for loss exposure other than Workers Compensation, General Liability, Employers Liability and Excess Liability) shall be in forms
approved by Owner (which approval evaluation shall not be unreasonably withheld or delayed) and with insurance companies approved to do business in the State that have (and shall maintain during the applicable policy period) a minimum A.M. Best
rating of A-VII. The insurance shall be maintained until the [*] except for Products Liability/Completed Operations coverage, which shall be maintained for [*] beyond such date. [*]. Liability insurance coverage limits set forth
herein are minimums, and dedicated to Services performed for Owner related to the Project. 
 15.3 Contractor’s and Subcontractor’s Standard
Insurance Requirements. [*] of any tier, and whether [*] shall comply with all insurance requirements in subsections (a) through (g) below [*] 
 [*] Redacted type. 
  

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	 Type
	  	 Coverage Amount

	 (a)    Automobile, Bodily Injury and Property Damage Liability insurance on ISO form (CA 00 01 10 01) or equivalent. Must
include coverage for the following: (1) owned motor vehicles; (2) hired motor vehicles; (3) other non-owned vehicles; and (4) coverage for certain railroad operations CA2070 10/01.
	  	[*] per occurrence
		
	 (b)    All Risk Contractor’s Equipment Insurance covering owned, used, and leased equipment required to perform the
Work. Contractors or Subcontractors may elect to self insure such exposure if approved in writing by Owner, which approval shall not be unreasonably withheld or delayed.
	  	
		
	 (c)    Workers Compensation and Employers Liability Insurance covering Off-Site Activities Only (if enrolled in the CCIP,
otherwise no site limitation), and having North Carolina Statutory Limits with All States coverage including U.S. Longshoremen’s and Harbor Workers Act Coverage as appropriate and Employer’s Liability Limits.
	  	 [*] Each Accident Bodily Injury by Disease
  
 [*] Policy Limit Bodily Injury by Disease.
  
 [*] Each Disease Bodily Injury by Disease.

		
	 (d)    Commercial General Liability Insurance covering Off-Site Activities Only (if enrolled in the CCIP, otherwise no
site limitation).
	  	[*] per occurrence, [*] Annual Aggregate.
		
	 (e)    If aircraft are used in performance of the Services, Contractor shall provide or cause the operators of Aircraft to
provide Aircraft Liability Insurance
	  	[*] combined single limit
		
	 (f)     If Ocean Cargo Shipments are made, Contractor shall provide Open Cargo Insurance
	  	The maximum value of shipment, including packing, freight duties, and fees
		
	 (g)    If performing any design, engineering or architectural Services, Professional Liability Insurance (also known as
errors and omissions insurance), which shall insure Contractor’s/Subcontractor’s liability arising out of or relating to any design, engineering or architectural Services.
	  	[*] project specific limit with reporting requirements for claims made forms of [*] after Final Completion.

 Prior to beginning Work at the Site, Contractor shall obtain from each Subcontractor of every tier industry
standard ACORD (or other Owner approved form) certificates evidencing the above coverages and shall make available such certificates to Owner’s designated insurance administrator 
 [*] Redacted type. 
  

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upon request. All coverages and certificates further shall show Owner as an additional insured (except Worker’s Compensation). All insurance coverage
(except Professional Liability, if any) shall include a waiver of subrogation rights by the insurer against Owner. 
 15.4 General Insurance
Requirements. 
 (a) The provisions of Section 15.2 and Section 15.3 above do not modify or change any
responsibility of Contractor or its Subcontractors as stated elsewhere in this Agreement. Owner assumes no responsibility for the solvency of any insurer to settle any claim. The insurance requirements herein are separate and apart from and in no
way limit Contractor’s Indemnity as stated in Section 14 of this Agreement. Anything herein to the contrary notwithstanding, the liabilities of Contractor under this Agreement shall survive and not be terminated, reduced or
otherwise limited by any expiration or termination of insurance coverages. Neither approval nor failure to disapprove insurance furnished by Contractor shall relieve Contractor from responsibility to provide insurance as required by this Agreement.
No policy shall contain an exclusion that it would not respond to cover losses for damages to any Owner pre-existing property. All policies of insurance required in Section 15.2 and Section 15.3 above shall be endorsed or
shall otherwise provide that Contractor’s insurance shall be primary with respect to Contractor’s acts or omissions and not be in excess of, or contributing with, any insurance maintained by Owner (other than any Builders Risk as provided
in this Agreement). Owner and its successors and assigns shall be named as additional insureds for their imputed liability as a result of Contractor’s negligent operations hereunder, using ISO additional insured (CG 20 10) or equivalent, under
all policies of liability insurance to be maintained by Contractor (except Worker’s Compensation Insurance and Professional Liability). The liability policies of insurance shall be endorsed or shall otherwise include a severability of interest.
The policies set forth in this Article shall each contain a provision that coverages afforded under the policies will not be cancelled, renewed or materially modified [*] via certified United States mail has been given to Contractor and Owner
or to any other entities as herein or hereinafter required, at the address so provided to the insurance company. All insurance required by this Article shall be provided by companies reasonably acceptable to Owner and that have (and shall maintain
during the applicable policy period) an AM Best Rating of A- VII or higher. Certificates shall be provided to Owner on industry standard ACORD or Owner approved form showing such coverage in full force and effect shall be delivered to Owner
[*] of the Effective Date, [*] of each policy renewal or change and from time to time thereafter, as may be requested by Owner. All policies shall include waivers of any right of subrogation of the insurers there under against Owner
and its successors and assigns using standard ISO forms or equivalent. The existence of any self-insured retentions (SIRS) over which the required policies apply must be disclosed to and approved by Owner, such approval not to be unreasonably
withheld or delayed. Contractor shall provide copies of CCIP placement and renewal policies and all endorsements to the Owner not later than [*] following placement or renewal. 
 (b) Contractor shall comply with the conditions stipulated in each of the insurance policies. None of the insurance coverage required hereunder shall be
on “claims-made” forms, except Professional Liability. Coverage amounts must be fully available to any obligations under this Agreement (not eroded by any other project or agreement) and apply on an annual basis. CCIP provisions for
excluding Subcontractors must be disclosed and approved by Owner in writing prior to CCIP effective date. 
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 (c) If any of the Project specific insurance required under this Article shall be directly or indirectly
depleted by [*] or more (whether due to payment of insurance proceeds, creation of a reserve or otherwise) prior to Combined Cycle Final Completion, Contractor shall obtain from the insurer a reinstatement option, if commercially
available at a cost comparable to the original policy cost, to each such policy at least equal to the depleted amount. [*] shall bear the cost of such option (including the cost associated with the reinstatement). Contractor shall cause such
insurer to send to Owner a notice of such reinstatement and a copy of the reinstated policy related thereto upon Owner exercising and payment for the reinstatement. 
 (d) The insurance policies required by this Article shall allow for occupancy and utilization of the Facility, the Equipment and the Site by Owner, its Affiliates and any person reasonably permitted access thereto by
Owner. 
 (e) During the time any Subcontractor is engaged to perform any Service under this Agreement, Contractor shall obtain a certificate
of insurance from such Subcontractor evidencing that such Subcontractor has obtained, and will maintain and keep in full force and effect (required only for off-Site Work [*] otherwise for all Work performed by any Subcontractor),
Worker’s Compensation in statutory amounts, Employer’s Liability, Commercial General Liability, Automobile Insurance and all other policies reasonably necessary to perform such Service with adequate coverages and in such amounts in
accordance with Contractor’s normal practices and consistent with Good Industry Practices, and provide Owner with evidence acceptable to Owner of such coverage, or Contractor shall maintain such coverage under its own insurance policies
[*]. Contractor shall ensure that all Subcontractors obtain and maintain prudent insurance coverages. All Subcontractor coverages shall waive subrogation rights against Owner and Contractor. All Subcontractor coverages shall name Owner and
Contractor as additional insureds (except Workers Compensation and Professional Liability). 
 (f) Any certificates of renewal with respect
to any insurance policy required to be maintained by Contractor hereunder shall be delivered to Owner promptly after renewal. Contractor shall insure that the insurer shall submit a copy of all receipts for premiums paid to Contractor promptly after
payment of such premiums. Contractor shall be solely responsible for the timely payment in full of premiums for all insurance required of it hereunder. Should Contractor fail to provide or maintain any insurance required hereunder, Owner shall have
the right, but not the obligation, to provide or maintain any such insurance, and to deduct the cost thereof from any amounts due and payable to Contractor, or, in the event there are no such amounts due and payable, Contractor shall reimburse Owner
for such costs on demand. Contractor shall not unreasonably refuse to cooperate or to take any actions requested or necessary to prosecute any claims under any insurance policy required to be maintained by Contractor hereunder. 
 (g) With respect to ocean marine shipments, Contractor shall obtain at [*] prior to any such shipment, cargo insurance covering “all
risks” of loss or damage to property shipped, components of property shipped, or items contained in or shipped in or with the property shipped. This coverage is to be written on a replacement cost basis and in the full insurable value of these
items, including packing and freight charges plus duties and fees. The coverage required by this paragraph shall continue in effect until appropriate coverage commences at the Site. 
 15.5 Insurance Pricing Assumptions. The Parties hereto hereby acknowledge and agree that the insurance requirements set forth herein are part of [*] and are based upon the following base assumptions
relating to such requirements: (a) Contractor’s Site 
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payroll and site Work hours provided are based upon the terms and conditions set forth herein; (b) the total Site Work hours provided includes all
appropriate hours applicable to a “wrap-up” type insurance program, including direct craft hours, subcontract hours (including F&E hours), field non-manual hours, start up hours and all applicable indirect, productivity and escalation
adjustments; (c) total Site Work hours excludes hours not applicable to a “wrap-up” type insurance program, including home office, overtime and overtime related productivity, bonuses and per diem; (d) total Site payroll is
calculated using bare labor rates and contains no markups, including burdens and benefits; (e) [*]; (f) any additional costs to Owner associated with the “wrap-up” program for any reason, including changes in market premiums,
claims, losses, deductibles or retentions shall be [*]; (g) [*] will remain in place until Final Completion of the project unless agreed to by Owner and (h) allowance of Owner representative(s) to attend any appropriate [*]
including claims status reviews. 
 16. PROJECT CREDIT SUPPORT 
 16.1 Financial Information. From the Effective Date until Final Completion, the Guarantor shall deliver to Owner (a) within [*] Days following the end of each fiscal year, a copy of its annual report (or, if there is
no such report, a copy of such report for its parent company) containing audited, consolidated financial statements for such fiscal year, and (b) within [*] Days after the end of each of its first three fiscal quarters of each
fiscal year, a copy of its quarterly report (or, if there is no such report, a copy of such report for its parent company) containing unaudited consolidated financial statements for such fiscal quarter. In all cases, the statements shall be prepared
in accordance with generally accepted accounting principles. To the extent such quarterly reports are not available, upon the reasonable request of Owner in response to a credit event in the marketplace, Guarantor shall provide unaudited management
financial information for such fiscal quarter. 
 16.2 [*] 
 16.3 [*] 
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 [*] 
 17. LIMITATION OF
LIABILITY 
 17.1 No Consequential Damages. [*]THEREOF, LOSS OF PROFITS OR REVENUES OR THE LOSS OF USE THEREOF, OR COST OF PURCHASED OR
REPLACEMENT POWER. 
 17.2 [*]. CONTRACTOR’S AND ITS AFFILIATES’ AND SUBCONTRACTORS’ TOTAL AGGREGATE LIABILITY TO OWNER UNDER THIS
AGREEMENT, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE), GUARANTEE, WARRANTY OR OTHERWISE, SHALL NOT EXCEED [*](THE “MAXIMUM LIABILITY AMOUNT”); PROVIDED, HOWEVER, THE MAXIMUM
LIABILITY AMOUNT SHALL NOT APPLY TO, AND NO CREDIT SHALL BE ISSUED AGAINST THAT LIMITATION FOR (A) A PARTY’S INDEMNITY OBLIGATIONS HEREUNDER FOR THIRD PARTY CLAIMS FOR PERSONAL INJURY OR PROPERTY DAMAGE, (B) THE PROCEEDS THAT WOULD BE
AVAILABLE, BUT FOR THIS SECTION, 
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FROM INSURANCE THAT A PARTY IS REQUIRED TO MAINTAIN IN ACCORDANCE WITH THIS AGREEMENT, OR (C) CLAIMS WHICH ARISE FROM A BREACH OF OBLIGATIONS UNDER
ARTICLE 18 OR ARTICLE 19. 
 18. LIENS 
 18.1 Liens. Contractor shall keep the Facility, the Site, the Equipment, the Owner Equipment and all other structures and equipment at the Site free from all Liens (unless such Lien is due to the non-payment by Owner of a Monthly
Payment Invoice which is not the subject of a good faith dispute), and shall promptly notify Owner of any such Liens. 
 18.2 Discharge or Bond.
Without limiting Contractor’s obligations under Section 14.1(a), Contractor shall take prompt steps to discharge or bond any Lien (unless such Lien is due to the non-payment by Owner of a Monthly Payment Invoice which is not the
subject of a good faith dispute). If Contractor fails to so discharge or promptly bond any such Lien, Owner shall have the right, upon notifying Contractor in writing and providing Contractor reasonable time to discharge or bond the Lien, to take
any and all reasonable actions and steps to satisfy, defend, settle or otherwise remove the Lien and consider all associated costs as [*]. Contractor shall have the right to contest any Lien, provided that it first must provide to the
lienholder, a court or other third Person, as applicable, a bond or other assurances of payment necessary to remove such Lien in accordance with the Laws of the State. 
 19. INTELLECTUAL PROPERTY 
 19.1 Delivery of Documentation. Prior to Final Completion, Contractor shall supply
to Owner physical and electronic copies of all Documentation. All such Documentation shall include any corrections, improvements, and enhancements to such Documentation that were incorporated during the construction of the Facility and shall be on
an “as-built” basis as of Final Completion. Contractor shall provide Owner, during the Warranty Period and at no additional cost, any corrections to errors discovered by Contractor or Owner in the Documentation subsequent to Final
Completion. Contractor shall promptly notify Owner of the discovery of any such errors. 
 19.2 Ownership of Rights in Documentation. All rights,
title and interests in and to the paid-up Documentation shall be owned by Owner; provided, that all rights, title and interests in and to Contractor Confidential Information within the Documentation shall remain with Contractor or its
licensors. For such Contractor Confidential Information, Contractor hereby grants to Owner a non-transferable (except only as part of the sale or transfer of the Facility), royalty-free, fully paid up, irrevocable, sub-licensable, nonexclusive
license to use and copy such Contractor Confidential Information, but only for the purposes of Facility maintenance, operation, training, modification, consultation, repair, decommissioning and compliance with Laws, and subject to the restrictions
on Contractor Confidential Information set forth in Section 20.1. 
 19.3 Ownership of Invention Rights. Contractor shall retain the
ownership rights in any and all discoveries and inventions (patentable or un-patentable) that Contractor makes, creates, develops, discovers or produces in connection with the performance of the Services; provided, however, that
Contractor hereby grants to Owner a non-transferable (except only as part of the sale or transfer of the Facility), royalty-free, fully paid up, irrevocable, sub-licensable, nonexclusive license to use and copy such discoveries and inventions for
the purposes of Facility maintenance, operation, training, modification, consultation, repair, decommissioning and compliance with Laws. 
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 19.4 Disclosure of Documentation. Owner may disclose or otherwise make available Documentation to a third party
with whom Owner contracts for maintenance, operation, training, modification, repair, consultation or decommissioning or other activities relating to the Facility in order to comply with applicable Laws; provided, that, if such Documentation
contains Contractor’s Confidential Information, the provisions of Section 20.1 shall apply. In the event of a Contractor Default and Owner termination, in addition to the rights above and notwithstanding anything in this Agreement
to the contrary, Owner shall have the right to disclose the Documentation to third parties with whom Owner contracts for engineering, construction, commissioning or testing of the Project, provided that, prior to such disclosure, such third parties
shall execute a confidentiality agreement at least as strict as the requirements set forth herein. 
 19.5 Other Licenses. To the extent that a
license may be required under any patent, trade secret right or other proprietary right of Contractor or any Subcontractor to maintain, operate, conduct training, modify, repair, or decommission the Facility or comply with applicable Laws,
Contractor hereby grants to Owner a non-transferable (except only as part of the sale or transfer of the Facility), royalty-free, fully paid up, irrevocable, nonexclusive license under such patent, trade secret and other proprietary right for such
purposes. 
 20. CONFIDENTIAL INFORMATION 
 20.1
Confidentiality Obligations. Each Party agrees: (a) to treat the other Party’s Confidential Information as confidential and to take reasonable precautions to prevent unauthorized disclosure or use of the other Party’s
Confidential Information, such precautions taken being at least as great as the precautions taken by such Party to protect its own Confidential Information (but in no case less than reasonable care); (b) not to disclose the other Party’s
Confidential Information to any third party other than as provided in Section 20.2 or with the other Party’s prior written authorization; and (c) not to use the other Party’s Confidential Information except for performance
of this Agreement, compliance with applicable Laws, or maintenance, operation, training, modification, repair, consultation or decommissioning of the Facility. 
 20.2 Permitted Disclosures. A Party may disclose the other Party’s Confidential Information to third parties as follows: 
 (a) A Party may disclose the other Party’s Confidential Information to any Government Authority if required to do so, in which case the Party from whom such disclosure is required shall (i) give the other Party all reasonably
possible notice so as to facilitate such other Party being able, should it so desire, to seek a protective order or similar protection, and (ii) fully cooperate with the other Party’s efforts, at the other Party’s expense, to obtain
such protection. 
 (b) Contractor may disclose Owner’s Confidential Information to a Subcontractor if (i) such disclosure is
necessary for Subcontractor’s performance of its subcontract with Contractor and (ii) such Subcontractor first executes a written confidentiality agreement with Contractor (unless a confidentiality obligation is already included in the
Subcontract) in substance reasonably acceptable to Owner. 
 (c) Subject to the requirements of Section 19.4, Owner may disclose
Contractor’s Confidential Information to (i) potential investors; (ii) third parties engaged by Owner to provide consultation regarding the Facility; (iii) third parties with which Owner contracts for engineering, construction,
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consultation or decommissioning of the Facility or other activities relating to the Facility undertaken in order to comply with applicable Laws or request of
Governmental Authorities having jurisdiction over the Facility or Owner; and (iv) purchasers and prospective purchasers of the Facility, provided, that in any of the foregoing instances the third parties to which disclosure is made first
execute a written confidentiality agreement with Owner which provides Contractor protections which are at least as strict as the requirements set forth herein. 
 20.3 Publicity. Unless required by law or securities practice and regulations, Contractor shall not make any announcement, give any photographs, or release any information concerning all or a portion of the Work, this Agreement, or
the Facility, to any member of the public, press, Person, or any official body, without Owner’s prior written consent; provided, that Contractor may, at any time after Owner’s first public announcement of the Project or this
Agreement, include the Project (but not the details of this Agreement) in its regular experience lists. 
 21. ENVIRONMENTAL; HAZARDOUS MATERIALS

 21.1 Material Safety Data Sheets. Contractor shall provide to Owner all Material Safety Data Sheets covering all Hazardous Materials and hazardous
chemicals to be furnished, used, applied, or stored by Contractor, or any of its Subcontractors, at the Site in connection with the Services. Contractor shall provide Owner’s Project Director with copies of any such Material Safety Data Sheets
prior to entry at the Site or with a document certifying that no Hazardous Materials or hazardous chemicals will be brought onto the Site by Contractor, or any of its Subcontractors, during the performance of the Services. Contractor shall
coordinate with Owner’s Project Director to provide a listing of all of Contractor’s hazardous chemicals and their quantities at the Site for purposes of chemical inventory reporting pursuant to 40 C.F.R. Part 370 and similar State
regulations. 
 21.2 Facility Use, Storage Removal. When the use or storage of explosives or other Hazardous Materials or equipment is necessary for
the performance of the Services, Contractor shall exercise the utmost care and shall conduct its activities under the supervision of properly qualified personnel in accordance with all applicable Laws. Before the Simple Cycle Substantial Completion
Date and before the Combined Cycle Substantial Completion Date, Contractor shall collect (for removal by Owner from the Site) in accordance with all applicable Laws all explosives and other Hazardous Materials that Contractor or its Subcontractors
brought onto the Site or hazardous chemicals and equipment Contractor or its Subcontractors used, stored or located at the Site or any neighboring property, unless the same have been permanently incorporated into the Facility. All such equipment and
materials shall be collected, containerized and stored in accordance with all applicable Laws, and Contractor shall so certify in writing to Owner. 
 21.3
Notice of Presence. Prior to bringing any Hazardous Material or other hazardous chemicals to the Site, Contractor shall provide written notice to Owner identifying any such Hazardous Materials or hazardous chemicals that Contractor, or its
Subcontractors, proposes to bring onto the Site. 
 21.4 Labeling; Training. Contractor shall label all Hazardous Materials that Contractor or its
Subcontractors bring to the Site and train all employees and other Persons, as necessary, in the safe use of such Hazardous Materials as required by all applicable Laws. 
 21.5 Handling, Collection, Removal Transportation and Disposal. 
  

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 (a) Unless otherwise agreed by the Parties, Contractor shall be responsible for the proper handling,
collection, and containerizing of all Hazardous Materials generated or brought onto the Site by Contractor or any Subcontractor or spilled or introduced into or at the Site by Contractor or any Subcontractor, including any Hazardous Materials
furnished, used, applied or stored at the Site by Contractor, including, used oils, greases, and solvents from flushing and cleaning processes performed under the Agreement. Such Hazardous Materials will then be delivered to Owner for proper
storage, transportation and disposal. All activities performed by Contractor in connection with the handling, collection and containerizing of such Hazardous Materials shall be performed in accordance with the requirements of all Government
Authorities and all applicable Laws. For the avoidance of doubt, Contractor has no obligations with respect to the handling, collection, removal, disposal or containerizing of any pre-existing Hazardous Materials except to the extent the Gross
Negligence or willful misconduct or wanton acts of Contractor or its Subcontractors caused the release of such pre-existing Hazardous Materials in which case Contractor shall remediate the released contamination. 
 (b) Contractor has included time in the Schedule for satisfying its obligations as to all Hazardous Materials that it is responsible for under this
Agreement by virtue of such Hazardous Materials being brought onto the Site by Contractor or its Subcontractors. Contractor shall not seek, and shall not be entitled to receive, any payment hereunder or extension of time in the Schedule as a result
of satisfying its obligations with respect as to any such Hazardous Materials brought onto the Site by Contractor or its Subcontractors, including the handling, collection, or containerizing of such Hazardous Materials. 
 21.6 Notice of Discovery. Contractor shall provide prompt written notice to Owner of all suspected Hazardous Materials that Contractor finds during performance of
the Services. 
 21.7 Policies and Procedures. Contractor shall adhere to all Site policies and procedures for environmental compliance, including
Owner’s Environmental Work Practices Manual and Hazardous Material safety programs. If no such Site policies or procedures exist, Contractor shall develop, implement and enforce effective written policies and procedures applicable to the
Services, within the framework of all applicable Laws, for general Site safety and the proper labeling, handling, collection and containerizing of any Hazardous Materials at the Site in order to ensure the highest standards of prudent practice at
the Site for the safety of all employees, agents and representatives of Contractor and any of its Subcontractors. 
 21.8 Asbestos Containing
Products. Except as otherwise authorized by Owner in writing, all Equipment or Owner Equipment furnished, delivered or installed by Contractor and all materials and tools used by Contractor in the performance of the Services at the Site shall
contain zero percent asbestos or refractory ceramic fibers. If Owner authorizes in writing such delivery or use, Contractor shall clearly mark all containers or other materials containing asbestos or refractory ceramic fibers, and such containers or
materials shall be sealed to prevent any leakage of asbestos or ceramic fibers. Contractor shall indemnify, defend and hold harmless Owner from and against any and all claims, demands and damages incurred from any unauthorized asbestos or refractory
ceramic furnished or delivered to or installed at the Site by Contractor or any Subcontractor. 
 21.9 Pre-Existing Hazardous Material. Owner shall
indemnify Contractor and its Subcontractors from any liability in connection with any pre-existing Hazardous Material, except to the extent such liability was caused by the Gross Negligence or willful misconduct or wanton acts or omissions of
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responsible Party for all pre-existing Hazardous Material and its remediation. Any assistance provided by Contractor shall be pursuant to a mutually agreed
Change Order, and Contractor shall be entitled to a Change Order for equitable price and/or schedule adjustment if its cost or performance is impacted by the discovery of any pre-existing Hazardous Materials. 
 22. TITLE; RISK OF LOSS 
 22.1 Transfer of Title; Security
Interest. Except as otherwise expressly provided in this Agreement, good, exclusive and marketable title, free and clear of all Liens (other than Liens created by the non-payment by Owner of a Monthly Payment Invoice which is not the subject of
a good faith dispute), to the Equipment and to each of the constituent parts thereof shall pass to Owner upon the (i) delivery of such Equipment or constituent part thereof to the Site and (ii) payment of the amount then due under a
Monthly Payment Invoice covering such Equipment or constituent part of such Equipment, notwithstanding any disputed amounts withheld or offset by Owner against any payment sought by Contractor in accordance with the terms of this Agreement. The
passage of title to Owner shall not be deemed an acceptance or approval of such Equipment (or any Service), affect the allocation of risk of loss, affect any security interest in favor of Owner therein or otherwise relieve Contractor of any
obligation under this Agreement to provide and pay for transportation and storage in connection with the Equipment. Further, upon the passage of title, the Equipment, the constituent parts thereof and the unused spare parts shall be specifically
excluded from the bankruptcy estate of Contractor in the event of any bankruptcy or insolvency proceeding involving Contractor. 
 22.2 Risk of Loss.
Whether or not title has passed to Owner, the risk of loss for all Equipment to be installed as a component of the Simple Cycle Facility shall remain with Contractor until, and shall pass to Owner upon, Simple Cycle Substantial Completion. Risk of
loss for all Owner Equipment to be installed as a component of the Simple Cycle Facility shall pass to Contractor upon its arrival at the Site and shall remain with Contractor until, and shall pass to Owner upon, Simple Cycle Substantial Completion.
Risk of loss for all Equipment to be installed as a component of the Combined Cycle Facility shall remain with Contractor until, and shall pass to Owner upon, Combined Cycle Substantial Completion. Risk of loss for all Owner Equipment to be
installed as a component of the Combined Cycle Facility (which has not previously been installed as part of the Simple Cycle Facility) shall pass to Contractor upon its arrival at the Site and shall remain with Contractor until, and shall pass to
Owner upon, Combined Cycle Substantial Completion. Contractor shall be obligated to replace, repair or reconstruct the Equipment or the Owner Equipment that is lost, damaged, or destroyed during the period in which Contractor has risk of loss. For
Equipment or Materials that are removed from the Site for repair, replacement or refurbishment under the Warranty, the risk of loss to such Equipment or Materials shall pass to Contractor once moved from the location at which it was installed. Owner
will resume the risk of loss of such Equipment or Materials upon completion of re-installation of the repaired, replaced or refurbished Equipment at the Facility. 
 22.3 Contractor Tools. Risk of loss or damage to the equipment or tools of Contractor, all Subcontractors, and their respective employees and agents shall at all times remain with those parties, and Owner shall have no responsibility
for such equipment or tools. 
 23. SUSPENSION; DEFAULT; TERMINATION 
 23.1 Suspension. 
  

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 (a) Owner may, in its sole discretion, order Contractor to suspend all or any portion of the Work for a
period of time as Owner may request. Contractor shall comply with such order. The suspension shall commence on the Day specified in Owner’s written notice to Contractor which shall be at least [*] after Owner gives Contractor such
notice. 
 (b) Contractor may suspend the Work without liability as if Owner had ordered a suspension in accordance with
Section 23.1(a) upon written notice to Owner after the occurrence of any of the following: 
 (i)
Nonpayment. Owner fails to pay or cause to be paid any amount that that is not subject to a good faith dispute and has become due and payable by it to Contractor under this Agreement [*] after receipt of written notice that such
amounts are past due; 
 (ii) Insurance. Owner fails to obtain and maintain insurance as required by this Agreement;
and 
 (iii) Breach. Owner breaches any of its material obligations under this Agreement (other than those obligations
relating to the matters set forth in Section 23.1(b)(i) or (ii)) and for which no other remedy is specified in this Agreement and, if such breach is capable of being cured, Owner fails to cure such breach within [*] after
written notice of such breach, provided that such cure period shall be extended to [*] after written notice of such breach if such breach is capable of being cured but not within [*] and Owner immediately commences to cure such breach
and diligently and continually prosecutes measures which are reasonably calculated to cure such breach within such [*] period. 
 (c)
During any such suspension: (i) Contractor shall take reasonable precautions to protect, store and secure the Equipment and Owner Equipment against deterioration, loss or damage, and (ii) Owner shall reimburse Contractor on a current time
and material basis for all its costs, including those incurred in connection with the foregoing and for its (including its Subcontractors’) stand-by charges as well as demobilization and remobilization charges. Contractor shall resume any
suspended Services promptly, but in no event later than fifteen (15) Days after Owner gives Contractor written notice to do so, or, for other provisions of this Agreement that allow Contractor to treat an action or inaction by Owner as a
suspension, promptly following the reason for such suspension ceasing and, in each case, shall use its best efforts to fully resume the Services as soon as reasonably possible. Upon any suspension of all or any portion of the Services in accordance
with this Section 23.1, Contractor shall be entitled to an equitable adjustment in the [*] and the Schedule in accordance with Article 8. 
 23.2 Contractor Events of Default. Contractor shall be in default of its obligations pursuant to this Agreement upon the occurrence of any one or more of the following circumstances (each, a “Contractor Default”):

 (a) Nonpayment. Contractor fails to pay or cause to be paid any amount that is not subject to a good faith dispute and has become
due and payable by it to Owner under this Agreement within [*] after receipt of written notice that such amounts are past due; 
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 (b) Insolvency. Contractor or its Guarantor becomes Insolvent; 
 (c) Assignment. Contractor assigns or transfers, or attempts to assign or transfer, this Agreement or any right or interest herein, except as
expressly permitted by this Agreement; 
 (d) Insurance. Contractor fails to obtain and maintain insurance as required under this
Agreement; 
 (e) Performance Guarantees. Contractor fails to satisfy the Minimum Performance Guarantees by the Guaranteed Final
Completion Date; 
 (f) Breach. Contractor breaches any of its material obligations under this Agreement other than those obligations
relating to the matters set forth in Section 23.2(a) through (e) above and for which no other remedy is specified in the Agreement and, if such breach is capable of being cured, Contractor fails to [*]; and 

(g) Delay in Schedule. It is forecasted that Contractor will fail to meet Simple Cycle Substantial Completion or will fail to meet Combined
Cycle Substantial Completion by the Guaranteed Final Completion Date as set forth in Section 6.3(c) hereof and, if such forecasted delay is capable of being cured, Contractor fails to cure such forecasted Schedule delay within [*]
after written notice of such breach, provided that the above cure period shall be extended to [*] after written notice of such breach if such forecasted delay is capable of being cured within such [*] period and Contractor is
demonstrating continuous and diligent efforts to cure such breach and the forecasted Schedule is not slipping further behind. 
 23.3 Owner Remedies.
In the event of a Contractor Default, Owner shall have any or all of the following rights and remedies: 
 (a) Termination. Subject to
the limitations on Contractor’s liability, Owner, without prejudice to any of its other rights or remedies under this Agreement, may terminate this Agreement or remove any portion of the Work from Contractor’s scope hereunder immediately
by delivery of a notice of termination to Contractor; 
 (b) Equitable Remedies. Subject to the limitations on liability set forth in
this Agreement, Owner may seek equitable relief, including injunctive relief, to cause Contractor to take action, or to refrain from taking action, pursuant to this Agreement, or to make restitution of amounts improperly retained or received under
this Agreement; and 
 (c) Damages. Subject to Article 17, Section 7.3 and the other exclusive remedies set forth
in this Agreement, Owner shall be entitled to seek all other remedies at law or in equity. 
 23.4 Owner Event of Default. Owner shall be in default
of its obligations pursuant to this Agreement upon the occurrence of any one or more of the following circumstances (each, an “Owner Default”): 
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 (a) Nonpayment. Owner fails to pay or cause to be paid any amount that is not subject to a good
faith dispute and has become due and payable by it to Contractor under this Agreement within [*] after receipt of written notice that such amounts are past due; and 
 (b) Insolvency. Owner becomes Insolvent. 
 23.5
Contractor Remedies. In the event of an Owner Default, Contractor shall have any or all of the following rights and remedies: 
 (a)
Termination/Suspension. Contractor, without prejudice to any of its other rights or remedies under this Agreement, may terminate this Agreement or suspend performance of the Work immediately by delivery of written notice thereof to Owner, and
such termination/suspension shall be deemed as if done for convenience of Owner under Section 23.6(a) or 23.1 (as applicable); 
 (b) Equitable Remedies. Subject to the limitations on liability set forth in this Agreement, Contractor may seek equitable relief, including injunctive relief or specific performance, to cause Owner to take action, or to refrain from
taking action, pursuant to this Agreement, or to make restitution of amounts improperly retained or received under this Agreement; and 
 (c)
Damages. Subject to Article 17, Contractor shall be entitled to seek all other remedies or damages available in equity or at law. 
 23.6
Termination for Convenience. 
 (a) Termination Rights. Owner may terminate this Agreement at its convenience and in its
entirety upon prior written notice to Contractor, in which event Owner shall pay the cancellation charges set forth in Section 23.6(b). 
 (b) Cancellation Charges. 
 (i) If Owner terminates this Agreement under Section 23.6(a) at any
time on or prior to the issuance of the Full Notice to Proceed, the sole termination charges payable to Contractor, as Contractor’s exclusive remedy, shall be the amounts billed (but unpaid) or currently billable (including for in-progress
work) and the reasonable and necessary out-of-pocket costs including demobilization costs actually incurred by Contractor as a result thereof, provided that the amount of termination charges payable under this Section 23.6(b)(i) shall
not exceed the aggregate amount of the funding authorizations contained in all Limited Notices to Proceed issued prior to the date of termination and the vendor cancellation charges. 
 (ii) If Owner terminates this Agreement under Section 23.6(a) at any time after the issuance of the Full Notice to Proceed,
Owner shall pay termination charges to Contractor, as Contractor’s exclusive remedy, which termination charges shall consist of all amounts billed or currently billable by Contractor and due and owing under this Agreement for Equipment
delivered (or being fabricated for delivery) and Services performed in accordance with this Agreement prior to such termination (including in-progress work) and all unavoidable and reasonably incurred termination charges, such as those incurred
through demobilization and storage or through cancellation charges paid to Subcontractors. The total amount payable by Owner as a termination charge shall be reduced by (A) any rebates, 
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credits or refunds obtained, (B) the reasonable salvage value for undelivered and unpaid for Equipment, or (C) the sale of such Equipment to a
third party, with the understanding that Owner, at its exclusive preference, may accept delivery of complete or incomplete Equipment included in the termination charges. 
 23.7 Termination for Force Majeure. Owner or Contractor may terminate this Agreement in its entirety, and without liability, due to Force Majeure in accordance with the terms of Article 9. 
 23.8 Effect of Termination. Upon termination of this Agreement or removal of any portion of the Work pursuant to this Article, Contractor shall immediately:

 (a) stop the performance of all Services (or the Services included in the removed portion of the Work) except as may be necessary to
preserve the Equipment and Owner Equipment as requested by Owner; 
 (b) issue no further purchase orders and enter into no further contracts
relating to the Work (or the removed portion of the Work) except with the prior written consent of Owner; 
 (c) assign to Owner, upon
Owner’s request, all rights of Contractor under contracts or purchase orders entered into by Contractor in connection with this Agreement (or the removed portion of the Work); 
 (d) to the extent possible, upon Owner’s request, terminate existing contracts and purchase orders entered into by Contractor in connection with
this Agreement (or the removed portion of the Work); 
 (e) deliver all then existing Documentation (or the Documentation relating to the
removed portion of the Work), including drafts thereof (subject to Article 19), to Owner in hard copy and electronic formats reasonably requested by Owner; and 
 (f) turn over care, custody and control at the Site of all Equipment (to the extent that Owner does not refuse to accept any such Equipment) and Owner Equipment (or to the extent relating to the removed portion of the
Work). 
 24. SAFETY; INCIDENT REPORTING. 
 24.1
Environmental, Health and Safety Programs. Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with its performance of the Agreement, including appropriate precautions
and programs for areas in and around the Site. Without limiting the generality of the foregoing, Contractor shall comply with all applicable Laws and meet the requirements of all of Owner’s environmental, health, safety, and security policies
and manuals as amended from time to time, including the Duke Energy Safe Work Practices Manual, the Duke Energy Scaffold Manual, the Duke Energy Lifting Program, the Duke Energy Environment, Health, and Safety Manual and the Duke Energy Contractor
EHS Compliance Program. A copy of any policies and manuals of Owner shall be provided to Contractor upon request. Contractor shall designate a responsible, qualified full-time member of Contractor’s organization at the Site whose duty shall be
the prevention of incidents and injuries and addressing unsafe and undesirable behavior for each of the following three (3) areas: environmental matters (U.S. Environmental Protection Agency and any applicable State agency), health matters
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hazard prevention/mitigation) and safety matters, as each area relates to construction activities generally and the Work specifically. One individual may be
designated for more than one of these three areas if the individual is qualified in all such areas. 
 24.2 OSHA and Other Laws. Contractor shall give
notices and comply with all applicable Laws bearing on the safety of Persons or property or their protection from damage, injury or loss, including the Occupational Safety and Health Act (“OSHA”) and the Americans with Disabilities
Act. 
 (a) Contractor represents that it is familiar with the Site, the Services to be performed, the Equipment to be provided, the Facility
to which the Equipment will be a part, the hazards of the Work, and, if applicable, the Material Safety Data Sheets for, and the hazards of, the Hazardous Materials or hazardous chemicals that Contractor is expected to provide. Contractor
acknowledges that Material Safety Data Sheets of all chemicals located at the Site are available to Contractor’s employees upon a request made to Owner’s Project Director, or other safety representative of Owner at the Site. Contractor
also represents that it is familiar with the labeling system used in the workplace. 
 (b) Contractor acknowledges that OSHA and regulatory
standards or State plan equivalent (collectively, the “OSHA Standards”) require that its employees be trained in various subjects, such as, but not limited to, the hazards of, and standards applicable to, the Work (29 C.F.R. §
1926.21(b)(2)) (applicable to construction work), lockout/tagout (29 C.F.R. § 1910.147), confined space entry (29 C.F.R. §§ 1926.21(b)(6) or 1910.146), and asbestos (29 C.F.R. §§ 1910.1001 or 1926.1101). Contractor warrants
that its employees and their supervisors have been trained in accordance with all applicable OSHA Standards, and that they have been trained to recognize and avoid any hazards related to the Work, and to perform the Services safely and without
danger to any employee or to any property. 
 (c) Contractor represents that its employees are or will be equipped with the personal
protective equipment required by applicable OSHA Standards in 29 C.F.R. Parts 1926 and 1910, and with the personal protective equipment required to protect its employees against other serious health or safety hazards. Contractor agrees that it shall
discipline its employees who violate any OSHA Standards or applicable Laws in accordance with its own policies and procedures. 
 (d)
Contractor represents that it will comply with all OSHA Standards applicable to the Work, including those requiring pre-employment testing of employees, such as but not limited to, pulmonary testing, blood testing, urine testing, hearing testing,
respirator fit testing, drug screening, and/or applicable medical surveillance testing. 
 (e) Contractor shall fully comply with its safety
programs and/or any Site specific safety plans which Owner has reviewed and accepted. 
 (f) Within twenty four (24) hours of a request,
or as soon as possible, and to the extent permitted by applicable Law, Contractor shall provide copies of any and a11 training for its employees concerning any safety and health standard, any substantive or technical training requirement of the job
or the results of any occupational testing to Owner. 
 24.3 Worksite Safety. 
  

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 (a) Contractor shall take all reasonable precautions for the safety of, and shall provide reasonable
protection to prevent damage, injury or loss to Persons and property resulting from the Work, including: 
 (i) Contractor
employees, Subcontractors and other Persons performing the Services and all Persons who may be affected by the performance of the Services; 
 (ii) the Equipment and Owner Equipment to be incorporated into the Facility, whether in storage on or off the Site or under the care, custody or control of Contractor or Subcontractors; and 
 (iii) other property at or adjacent to the Site, including trees, shrubs, lawns, walks, pavements, roadways, structures and utilities.

 (b) Contractor shall give notices and shall comply with applicable Laws bearing on safety of persons or property or their protection from
damage, injury or loss. 
 (c) Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and
programs in connection with the Work. Contractor shall erect, maintain or undertake, as required by existing conditions and the performance of the Agreement, all reasonable safeguards for the safety and protection of Persons and property, including
posting danger signs and other warnings against hazards, promulgating safety regulations, and notifying owners and users of adjacent sites and utilities. Those precautions may include providing security guards. 
 (d) Contractor agrees to provide to Owner the name, title, and phone number of its emergency contact person prior to the commencement of the Services.

 (e) Within twenty four (24) hours of its occurrence and in addition to reporting to Government Authorities as required by applicable
Law, Contractor shall notify Owner in writing of any incident, injury or illness experienced by a Contractor employee in the performance of any of the Services or on any part of Owner’s premises or lands, and shall provide copies of the OSHA
101 and OSHA 200 or 300 log entry for such incident, injury or illness. Within one week of the incident, injury or illness, Contractor shall provide a preliminary written report of the incident, injury or illness and the measures to prevent a
similar occurrence in the future. Owner has the right to request a final report, which Contractor shall provide within one week of Owner’s request. All such reports shall be in accordance with Owner’s policies and procedures. For all
accidents which cause, or nearly cause, death, serious bodily injury or property damage, Contractor shall immediately notify Owner’s Project Director and Owner’s health and safety representative by telephone or messenger, giving full
details and statements of any witnesses. 
 (f) Upon request from Owner, Contractor shall provide an OSHA log listing injuries or illnesses
sustained by Contractor employees during the five (5) years preceding the request in any of Owner’s process areas subject to Owner’s process safety management standard, 29 C.F.R. § 1910.119, as provided to Contractor. 

24.4 Dangerous Materials. When the use or storage of explosives or other dangerous materials or equipment or unusual methods are necessary for the Work,
Contractor shall exercise utmost care and carryon its activities only under the supervision of properly qualified personnel. Contractor shall notify Owner’s Project Director prior to bringing any explosives onto the Site. 
  

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 24.5 Loading. Contractor shall not load or permit any part of the Equipment or Owner Equipment to be loaded at the
Site so as to endanger the safety of Persons or property. 
 24.6 Cooperation in Governmental Investigation. Contractor and its Subcontractors of
whatever tier shall assist Owner in responding to requests by any Government Authority for information in connection with inspections or investigations of Owner relating to the Work involving Contractor or its Subcontractors of whatever tier
performed for Owner, on Owner’s property, involving Owner’s employees, equipment or processes. Within one (1) Day of the request, or upon such other reasonable time as agreed by the Parties, Contractor shall make its employees
available at the Site for interviews and shall produce copies of any documents relevant to the investigation to Owner. Except as prohibited by Law, Contractor shall promptly inform Owner of inspections and investigations on Contractor’s
property, and of subpoenas, document requests, requests for information, deposition notices, discovery requests, or similar requests by any Government Authority, concerning Owner, the Work, or any accidents, injuries, illnesses or claims resulting
from the Work. 
 24.7 Audit. To the extent permitted by applicable Law, Owner shall have the right to review and copy all of Contractor’s
documents that relate to safety and health at the Site, including Contractor’s safety and health programs, safety and health training records, OSHA recordkeeping forms (such as 101, 200, 300 and 301), any incident report or first report of
injuries form and any industrial hygiene monitoring test results. 
 25. QUALIFICATIONS AND PROTECTION OF ASSIGNED PERSONNEL 
 25.1 Contractor’s Personnel. Contractor shall comply in all respects with all applicable labor and immigration Laws that may impact Contractor’s Work
under this Agreement, including the Immigration Reform and Control Act of 1986 and Form I-9 requirements. Without limiting the generality of the foregoing, Contractor shall perform all required employment eligibility and verification checks and
maintain all required employment records. Contractor acknowledges and agrees that it is responsible for conducting adequate screening of its employees and agents prior to starting the Work. By providing an employee or Subcontractor under this
Agreement, Contractor warrants and represents that it has completed the Screening Measures with respect to such employee or Subcontractor and that such Screening Measures did not reveal any information that could adversely affect such
employee’s or Subcontractor’s suitability for employment or engagement by Contractor or competence or ability to perform duties under this Agreement. If in doubt whether a suitability, competence or ability concern exists, Contractor shall
discuss with Owner the relevant facts and Owner will determine, in its sole discretion, whether such Person should be allowed to perform the Work. Owner, in its sole discretion, shall have the option of barring from the Site any person whom Owner
determines does not meet the qualification requirements set forth above. In all circumstances, Contractor shall ensure that the substance and manner of any and all Screening Measures performed by Contractor pursuant to this Section conform fully to
applicable Law. Contractor shall supervise, coordinate and direct the Work using Contractor’s best skill, judgment and attention. Owner shall have the right to bar from the Site any Person employed or engaged by Contractor or Subcontractor who
engages in misconduct or is incompetent or negligent while on the Site or while performing the Services, or whom Owner has previously terminated for cause or otherwise dismissed or barred from the Site. Upon request of Owner, Contractor shall
immediately remove those Persons to whom Owner objects from the Site and shall not allow the further performance of the Services by those Persons. In addition, if Contractor learns of any such misconduct, incompetence or negligence independent of
Owner’s objection, Contractor shall remove such Persons from the Site, shall not allow any further performance of the Services by such Persons 

  

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and shall promptly notify Owner of such misconduct, incompetence or negligence and the actions taken by Contractor as a result thereof. In either such event,
any cost for replacement of such Persons shall be at Contractor’s expense. 
 25.2 Drug and Alcohol Testing. Neither Contractor nor its
Subcontractors shall in any way use, possess, or be under the influence of illegal drugs or controlled substances or consume or be under the influence of alcoholic beverages during the performance of the Services. Any person (whether employed or
retained by Contractor or any Subcontractor or otherwise) under the influence, or in possession of, alcohol, any illegal drug, or any controlled substance, will be removed from the Site and, subject to Owner’s fitness for duty program
requirements, shall be prevented from performing any future Services at the Site or elsewhere related to the Project. Contractor shall have in place a drug testing program meeting the requirements of all applicable Laws and Owner’s Drug and
Alcohol Testing Policy (MICCS Substance Abuse Program, dated as of July, 2007) attached hereto as Exhibit K, as such policy may be updated by Owner from time to time generally for its contractors, and shall furnish to Owner proof of
compliance with such regulations and policies, including a copy of Contractor’s drug and alcohol testing plan and an affidavit stating that Contractor is in compliance, and will remain in compliance, with such regulations and policies for the
duration of this Agreement. Upon request, and to the extent permitted by law, Contractor will furnish Owner copies of the records of employee drug and alcohol test results required to be kept by Law. Contractor will indemnify and hold harmless Owner
from any and all liability for (a) Contractor’s or any Subcontractor’s personnel who fail a drug or alcohol test given under any Government Authority regulations, and (b) any claims made by a Contractor’s or
Subcontractor’s employee resulting from removal from the Site as provided in this Article. If Contractor fails to comply with these regulations while performing under this Agreement, such noncompliance will be deemed a breach of this Agreement,
and Contractor shall be liable for such breach, as well as for all direct damages arising out of such noncompliance. 
 25.3 Training of Employees.
Contractor represents that all Contractor and Subcontractor personnel have received all necessary training regarding environmental, OSHA and any other matters required by applicable Laws and relevant to the Work. Training on implementation of any
additional environmental mitigation measures appropriate for the Work will be specified by Owner before commencement of the Services. 
 25.4 Compliance
with Employment Laws; Policies. All Services shall be performed in accordance with all applicable Laws, including worker’s compensation Laws, minimum and maximum salary and wage statutes and regulations, and licensing Laws and regulations.
Contractor shall fully reimburse Owner for any and all fines or penalties of whatever kind or type that Owner may incur as the result of and to the extent caused by Contractor’s failure to fully comply with and fulfill any of the provisions of
this Article. Contractor shall adopt and utilize a subcontracting plan with its first-tier Subcontractors that complies with 48 C.F.R. 52-219-9 for Small Diverse Suppliers (“SDS”). In addition, Contractor shall (a) utilize SDS
as required by law; (b) provide Owner with a quarterly status report in the format set forth on Owner’s website at www.duke-energy.com, or in such other format as is reasonably acceptable to Owner; (c) enter the SDS data in any report
on Owner’s website at www.duke-energy.com and (d) provide Owner, its designated auditors and any applicable government agency the right of access during normal business hours to inspect any records related to SDS and compliance with this
section. 
 25.5 Substitution. Contractor reserves the right to change any of its personnel performing Services. In such event, Contractor shall
provide replacement personnel meeting the requisite 
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qualifications and who have equal or better capabilities and shall bear any additional travel and living expenses associated with providing such replacement
personnel. 
 26. RECORDS AND AUDIT 
 26.1 Technical
Documentation. Except to the extent applicable Laws require a longer retention, Contractor shall maintain and shall cause its Subcontractors to maintain all technical documentation relative to the Equipment and the Owner Equipment for a period
of three (3) years after the Final Completion Date. Contractor shall give Owner thirty (30) Days prior written notice before destroying or disposing of any such documentation or records and a reasonable opportunity for Owner during such
period to make copies of any such documentation. 
 26.2 Accounting Records. Except to the extent applicable Laws require a longer retention,
Contractor shall maintain and shall cause its Subcontractors to maintain complete accounting records relating to all Work performed or provided under this Agreement (which records shall include an estimate of installed costs per component in
accordance with FERC accounting requirements) on a time and material, or reimbursement, basis in accordance with generally accepted accounting principles in the United States, as set forth in pronouncements of the Financial Accounting Standards
Board (and its predecessors) and the American Institute of Certified Public Accountants, for a period of three (3) years after the Final Completion Date, except that records relating to Sales Taxes for such items must be retained for four
(4) years as specified in Section 26.4. Contractor shall give Owner thirty (30) Days prior written notice before destroying or disposing of any such accounting records and a reasonable opportunity for Owner during such period
to make copies of any such documentation. 
 26.3 Owner’s Right to Audit. For verification of [*] claimed by Contractor [*] or for
any Work performed or provided on a time and material basis or for any suspended, terminated, delayed or accelerated Services, Owner or a third party auditor selected by Owner and reasonably acceptable to Contractor (which acceptance shall not be
unreasonably withheld or delayed) shall have the right and access at reasonable times during normal business hours to examine and audit Contractor’s records and books related to all those costs as is reasonably necessary for Owner to verify
such costs. As part of any such audit, Contractor shall provide data in the appropriate electronic native file format (i.e. Microsoft Word, Excel, Primavera, etc.) such that the data may be effectively sorted, summed, and evaluated
However, Owner or Owner’s representative shall have no right to audit records or books concerning the make-up of any agreed upon lump sum amounts or fixed rates or multipliers. If any audit by the auditor reveals charges or costs charged to or
paid by Owner as costs or fees which are not proper or exceed the rates or amounts permitted hereunder for any such matters, then Owner shall be entitled upon demand for a refund from Contractor of all such amounts, plus interest thereon from the
date of payment by Owner until the date of refund by Contractor at a rate of the lesser of (a) the Prime Interest Rate plus 1% or (b) the maximum rate allowed by applicable law. Likewise, if any audit or if any examination by any state or
local taxing agency reveals additional Sales Tax to be imposed upon Contractor for under collection of tax from Owner on a taxable sale to Owner, then Contractor shall be entitled, upon demand, for a refund from Owner of all such amounts, plus
interest at the foregoing rate. 
 26.4 Sales Tax and Privilege Tax Records. Contractor shall provide to Owner all information and data Owner may from
time to time reasonably request and otherwise fully cooperate with Owner in connection with the reporting of (a) any Sales Taxes and Privilege Taxes payable with respect to the Work and (b) any assessment, refund claim or proceeding
relating to Taxes payable with respect to 
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the Work. Contractor shall require its Subcontractors to provide to Contractor all information and data Contractor may reasonably request for purposes of
complying with the preceding sentence and otherwise fully cooperate with Owner. Contractor shall retain, and shall require Subcontractors to retain, copies of such documentation and all documentation relating to purchases relating to the Work or the
payment of Sales Taxes and Privilege Taxes, if any, for a period of not less than four (4) years from the Final Completion Date. Contractor shall ensure that its contracts with all Subcontractors effectuate the provision of this Section.
Contractor’s and Owner’s obligations under this Section shall survive the termination, cancellation or expiration of this Agreement for any reason and shall last so long as is necessary to resolve any and all matters regarding Taxes
attributable to the Work; provided, that if Owner requires Contractor to take action under this Section at any time after the later of (i) two (2) years after delivery of the piece of Equipment or (ii) two (2) years after
completion of the particular item of Work, Owner shall reimburse Contractor for all actual and reasonable expenses Contractor incurs in taking those actions. 
 27. TAXES 
 27.1 Employment Taxes. Neither Owner nor its officers, employees, agents, consultants or other representatives shall have
any liability for any payroll or employment compensation taxes, for Social Security taxes, or for labor-related withholding taxes, for Contractor and its Subcontractors (including manufacturers); or any of their employees; and Contractor agrees to
hold Owner, his Consultants, and his other contractors harmless against any claim or liability therefore. 
 27.2 Sales and Use Taxes on Contractor
Tools. Contractor shall pay all taxes on Contractor’s purchases of goods, tools, equipment, supplies and other consumables which are not permanently incorporated into the Facility and which remain the property of Contractor. Contractor
shall also pay all taxes attributable to Contractor’s construction equipment, temporary buildings and other property used by Contractor in its performance of this Agreement. Contractor shall pay those taxes when assessed, without claim against
Owner for reimbursement. Contractor shall impose a similar obligation on all Subcontractors and shall ensure that no Subcontractor shall have any claim against Owner for reimbursement of those taxes. 
 27.3 Sales and Use Tax on Equipment; Privilege Tax. Notwithstanding the above, the [*] does not include monies for the payment of any sales and use taxes
on Equipment incorporated into the Facility. Contractor, on behalf of itself and all of its Subcontractors (including manufacturers), is therefore responsible for consulting with Owner on Equipment purchases and working with Owner to obtain the best
sales and use tax and privilege tax benefits for Owner. Owner is currently authorized under the North Carolina General Statutes to purchase certain Equipment exempt from the sales and use tax, but subject to the privilege tax at a rate of 1% with a
maximum tax of eighty dollars ($80) per article. Owner will specifically identify property which will be subject to the privilege tax. Owner will issue Form E-595E to Contractor to support the exemption from the sales and use tax. Contractor shall
register with the state of North Carolina for payment of the privilege tax. Contractor will issue Form E-595E to its suppliers to facilitate exempt purchases of property subject to the privilege tax. As required by law, Contractor will accrue the
privilege tax on these purchases and remit the appropriate amount to the state. Sales tax should be billed by the supplier on Contractor’s purchases of property subject to the North Carolina sales tax. Owner shall reimburse Contractor
[*], for Contractor’s actual costs incurred in paying any sales and use tax for which Contractor may become obligated to pay in connection with the Equipment incorporated into the Facility. 
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 (a) Contractor, its Subcontractors, manufacturers and suppliers shall make reasonable commercial efforts
to purchase Equipment to minimize the tax, but shall not be restricted from making out-of-state purchases of such Equipment. Contractor shall use its commercially reasonable efforts to ensure that Owner is afforded the best sales/use and privilege
tax treatment by the State. Contractor shall use all reasonable efforts to ensure that all out-of-state purchases made by Contractor and its Subcontractors (including manufacturers) are shipped FOB the Facility (North Carolina) free of Sales Taxes.
Owner shall reimburse Contractor for all sales and use taxes and privilege taxes paid by Contractor and its Subcontractors (including manufacturers) upon written confirmation from Contractor that the items purchased could not reasonably be purchased
free of Sales Taxes. 
 (b) Contractor agrees that it and its Subcontractors, suppliers, and manufacturers will clearly identify on each
original invoice covering the purchase of Equipment, the amount of sales and use tax. Should additional information and detail be required by Owner and the North Carolina Department of Revenue to verify amounts paid for purchases of Equipment under
this Agreement, Contractor and its Subcontractors, suppliers, and manufacturers shall supply such additional information and invoices in sufficient detail to verify: 
 (i) That such Equipment was purchased free of State sales and use taxes; or that for out-of-state purchases, the invoices indicate the
amount of foreign sales and use tax separately stated and paid; 
 (ii) The privilege tax was accrued and remitted to the
North Carolina for such Equipment; 
 (iii) The actual purchase prices of such Equipment; 
 (iv) The date of delivery to the Site of such Equipment; 
 (v) A description of the function of such Equipment; and 
 (vi) The Federal Energy Regulatory Commission (FERC) Code identification for such Equipment. 
 (c) As a condition to Final Completion, Contractor shall provide Owner with an affidavit that all invoices which include sales and use taxes or privilege
tax have been paid and that Contractor and all its Subcontractors, suppliers, and manufacturers have no outstanding claims or expenses relating to sales and use tax or privilege tax. 
 (d) Both Parties shall provide to the other any documentation or information requested in order to submit and obtain a refund of any taxes erroneously
paid as part of this Agreement. The Parties agree that any refunds received shall belong to the Party which bore the economic burden of paying the tax. The Parties’ obligations under this Section shall survive termination or expiration of the
Agreement. 
 27.4 State Property Taxes. Contractor and Owner agree that Owner shall be responsible for the filing requirements and payment
obligations for all state and local taxes on the Site and the Equipment incorporated into the Facility; provided, that Contractor shall be responsible for the filing of property tax returns and the payment of state and local property taxes on
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tools and material which is not incorporated into the Facility and which is owned, used or leased by Contractor to perform the Services. Owner and Contractor
acknowledge that construction equipment property tax costs are included in the leasing costs included in the Contract Price. If Contractor owns construction equipment and leases such construction equipment to Owner, Contractor shall remain
responsible for the filing and payment of all property taxes due on such construction equipment. 
 27.5 Tax Indemnification. 
 (a) Except in cases where such tax assessment is the result of the Gross Negligence or willful or wanton misconduct by Contractor, Owner shall defend,
reimburse, indemnify and hold Contractor harmless for all costs and expenses incurred by Contractor as a result of Owner’s formal protest of any sales and use taxes paid or assessed and property taxes paid or assessed on the Site or the
Equipment, or any other similar tax, whether local, state or federal, including any litigation expenses in the event Owner decides to protest a sales or use tax assessment. Owner shall not be responsible for any costs incurred by Contractor
necessary to substantiate or verify information for any tax audit conducted in the normal course of business. 
 (b) Except in the cased of
Gross Negligence or willful or wanton misconduct by Owner, Contractor shall defend, reimburse, indemnify and hold Owner harmless for all costs and expenses incurred by Owner as a result of Contractor’s formal protest of any employment Taxes, or
any sales and use taxes and property taxes paid or assessed on Contractor’s equipment or tools, or of any payroll or employment compensation taxes, or Social Security taxes, or for labor-related withholding taxes, or any other similar tax,
whether local, state or federal for Contractor; its Subcontractors (including manufacturers); or any of their employees, paid or assessed, including any litigation expenses in the event Contractor decides to protest the said employment, withholding,
and similar taxes. 
 27.6 Pollution Control Equipment Information. Contractor shall supply Owner with all reasonable information and cost analyses
requested by Owner for qualifying air, water or noise pollution control equipment for exemption from sales and use taxes, property taxes and any other tax credits, refunds or exemptions available to Owner. Contractor shall supply any further
information as requested by Owner to apply for a certificate from the North Carolina Department of Environment and Natural Resources (DNHR) or other appropriate Government Authority to qualify for the above exemptions. 
 28. DISPUTE RESOLUTION 
 28.1 Resolution by the Parties. The
Parties shall attempt to resolve any claims, disputes and other controversies arising out of or relating to this Agreement (collectively, “Disputes”) promptly by negotiation and mediation between executives who have authority to
settle the Dispute and who are at a higher level of management than the persons with direct responsibility for administration of this Agreement. 
 28.2
Arbitration Proceedings. 
 (a) Demand for Arbitration. If the Dispute has not been resolved by negotiation within [*]
Days of the disputing Party’s initial notice (or such longer period as the Parties may agree),, the Parties shall fully and finally settle the Dispute by binding arbitration. All arbitration proceedings shall take place in Charlotte, North
Carolina under the auspices of the American Arbitration Association (“AAA”) in accordance with the AAA Construction Industry Arbitration 
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Rules then in effect (the “Rules”), and shall be governed by the Federal Arbitration Act, 9 U.S.C. §§ 1-16. For all Disputes where
the amount in controversy is less than $[*], the arbitration proceedings shall be conducted by a [*] selected in accordance with the Rules. For all Disputes where the amount in controversy is at least $[*] the arbitration
proceedings shall be conducted by a [*] selected in accordance with the Rules. No demand for arbitration shall be made or permitted after the date when the institution of a civil action based on the Dispute would be barred by the applicable
statute of limitations or repose of the State. 
 (b) Equitable Remedies. The procedures specified in this Article shall be the sole
and exclusive procedures for the resolution of Disputes between the Parties arising out of or relating to this Agreement; provided, however, that a Party may file a complaint in a court of competent jurisdiction on issues of statute of
limitations or repose or to seek injunctive relief, specific performance, sequestration, garnishment, attachment, or an appointment of a receiver. Preservation of these remedies does not limit the power of the arbitrator(s) to grant similar
remedies, and despite such actions, the Parties will continue to participate in good faith in and be bound by the dispute resolution procedures specified in this Article. 
 (c) Award; Binding Nature. The arbitrator(s)’ decision shall be by majority vote and shall be issued in a writing and shall be final and binding upon the Parties, and judgment may be entered on the award
in any court of competent jurisdiction. The cost of all arbitrators shall be borne equally by the Parties. 
 (d) Discovery. Either
Party may apply to the arbitrators for the privilege of conducting discovery. The right to conduct discovery shall be granted by the arbitrators in their sole discretion with a view to avoiding surprise and providing reasonable access to necessary
information or to information likely to be presented during the course of the arbitration, provided that, where the amount in controversy is at least $[*] the Parties shall have the rights to discovery set forth in Rules 26 through 36 of the
Federal Rules of Civil Procedure. 
 28.3 Continuation of Work. Pending the final resolution of any Dispute, Contractor shall proceed diligently with
the performance or provision of the Work and its other duties and obligations without diminution of effort and Owner shall continue to compensate Contractor as set forth under this Agreement, including payment to Contractor provisionally on a time
and material basis for all disputed Work. 
 28.4 Confidentiality. Except as may be required by applicable Law, each Party shall treat the existence,
content or results of any settlement discussion pursuant to this Article 28 or arbitration as Confidential Information of the other Party in accordance with Section 20.1 and shall use commercially reasonable efforts to cause any
arbitrator(s) to keep such information confidential. 
 29. MISCELLANEOUS PROVISIONS 
 29.1 Governing Laws. This Agreement shall be governed by and construed in accordance with the laws of the State without reference to its conflict of laws principles. 
 29.2 Entire Agreement. This Agreement represents the entire agreement between Owner and Contractor with respect to the subject matter hereof, and supersedes all
prior negotiations, binding documents, representations and agreements, whether written or oral, with respect to the subject matter hereof, including that [*] 
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between Owner and Contractor . This Agreement may be amended or modified only by a written instrument duly executed by each of the Parties. 
 29.3 Successors and Assigns. Neither this Agreement nor any right, interest or obligation hereunder may be assigned by Contactor without the prior written consent
of Owner, and any attempt to do so shall be void, except that the whole of this Agreement may be assigned by Contractor upon prior written notice to Owner (a) to a parent company or a wholly-owned Affiliate, provided that Contractor shall not
be relieved of any of its obligations hereunder, or (b) to a transferee who acquires all or substantially all of the assets of Contractor and whose market capitalization exceeds $[*] and whose long term senior unsecured, uninsured debt
is rated at least Baa3 by Moody’s or BBB- by Standard & Poor’s at the time of the transfer, or whose creditworthiness is otherwise reasonably satisfactory to Owner, provided that, in each such case, such assignee demonstrates to
the reasonable satisfaction of Owner that it is capable of fulfilling all of the obligations of Contractor hereunder, including the grant of the licenses provided herein. Subject to the preceding sentence, this Agreement is binding upon, inures to
the benefit of and is enforceable by the Parties and their respective successors and assigns. Owner, including any Party constituting Owner, may assign this Agreement or any benefit, interest, right or cause of action arising under this Agreement to
any Person with notice to, but without the consent of, Contractor under the following circumstances: (a) the assignee is an Affiliate or subsidiary of the Owner and the assignee has a credit rating that is at least S&P BBB-, Moody’s
Baa3 or whose creditworthiness is otherwise reasonably satisfactory to Contractor, (b) the assignee has acquired ownership of, or the right to operate, the Facility for which an assignment is being made and the assignee’s senior unsecured
debt has a credit rating of S&P BBB-, Moody’s Baa3, or (c) such assignee is otherwise reasonably acceptable to Contractor. Owner (or the assigning Party that constitutes a part of Owner, as applicable) shall obtain written assurances
from the assignee of limitation of and protection against liability following the proposed transfer at least equivalent to that afforded Contractor and Subcontractors hereunder. Any transfer contrary to this Section shall make the assigning Party
constituting Owner the indemnitor of Contractor against any liabilities incurred in excess of those that would have been incurred had no such transfer taken place. 
 29.4 No Third Party Beneficiaries. Except as expressly set forth in this Agreement, the provisions of this Agreement are intended for the sole benefit of Owner and Contractor, and there are no third party beneficiaries. No reference
herein to any other Person shall restrict in any way the ability of the Parties to amend or modify this Agreement from time to time in their sole and absolute discretion. 
 29.5 Rights Exclusive. The rights and remedies of Owner and the liabilities of Contractor as set forth in this Agreement shall be the exclusive rights, remedies and liabilities of the Parties. 
 29.6 No Waiver. No course of dealing or failure of Owner or Contractor to enforce strictly any term, right or condition of this Agreement shall be construed as a
waiver of that term, right or condition. No express waiver of any term, right or condition of this Agreement shall operate as a waiver of any other term, right or condition. 
 29.7 Crisis Response. Notwithstanding anything to the contrary herein, any actions taken or authorized by Owner in a good faith belief that such actions are necessary to ensure safe operation of the Facility or
respond to an emergency or abnormal condition at the Facility shall not constitute a breach hereof or absolve Contractor of any of its obligations hereunder. 
 [*] Redacted type. 
  

 81 
 Duke:         
 Shaw:        

 29.8 Survival. Article 14 (Indemnification), Article 17 (Limitation of Liability), Article 19
(Intellectual Property), Article 20 (Confidential Information), Article 27 (Taxes), Article 28 (Dispute Resolution), Article 29 (Miscellaneous Provisions) and all other Sections providing for indemnification or limitation
of or protection against liability of either Party shall survive the termination, cancellation, or expiration of this Agreement. 
 29.9 Severability.
If any provision of this Agreement or the application of this Agreement to any Person or circumstance shall to any extent be held invalid or unenforceable by a court of competent jurisdiction or arbitrators under Article 28, then (i) the
remainder of this Agreement and the application of that provision to Persons or circumstances other than those as to which it is specifically held invalid or unenforceable shall not be affected, and every remaining provision of this Agreement shall
be valid and binding to the fullest extent permitted by Laws, and (ii) a suitable and equitable provision shall be substituted for such invalid or unenforceable provision in order to carry out, so far as may be valid and enforceable, the intent
and purpose of such invalid or unenforceable provision. 
 29.10 Notices. Any notices, demands or other communication to be sent or given hereunder by
either Party shall in every case be in writing and shall be deemed properly served if (a) delivered personally to the recipient, (b) sent to the recipient by reputable express courier service (charges paid) or (c) mailed to the
recipient by registered or certified mail, return receipt requested and postage paid. Date of service of such notice shall be (i) the date such notice is personally delivered, (ii) three (3) days after the date of mailing if sent by
certified or registered mail, or (iii) one (1) day after date of delivery to the overnight courier if sent by overnight courier. Such notices, demands and other communications shall be sent to the addresses indicated below or such other
address or to the attention of such other person as the recipient has indicated by prior written notice to the sending party in accordance with this Section: 
  

							
		 	 If to Owner:
	  	 Duke Energy Carolinas, LLC
 Mail Code EC11T

P. O. Box 1006
 Charlotte, NC 28201-1006
 Attn: [*]
 Facsimile No: [*]
	  	
				
		 	 with a copy to:
	  	 Duke Energy Carolinas, LLC
 Mail Code EC11X

P.O. Box 1006
 Charlotte, NC 28201-1006
 Attn: [*]
 Facsimile No.: [*]
	  	
			
		 		  	 Duke Energy Carolinas, LLC
 Mail Code
EC03T
 526 South Church Street
 Charlotte, NC 28202
 Attn: [*]
 Facsimile No.: [*]

 [*] Redacted type. 
  

 82 
 Duke:         
 Shaw:        

							
				
		 	If to Contractor:	  	 Shaw North Carolina, Inc.
 Attn: [*]

[*]
 128 South Tryon Street, Suite 600
 Charlotte, NC 28202
 Facsimile No.: [*]
 Telephone No.: [*]
	  	
				
		 	With a copy to:	  	 Shaw North Carolina, Inc.
 Attn: [*]

[*]
 100 Technology Center Drive
 Stoughton, MA 02072
 Facsimile No.: [*]
 Telephone No.: [*]
	  	
				
		 		  	 Shaw North Carolina, Inc.
 [*]
 [*]
 9201 E. Dry Creek Road
 Centennial, Colorado 80112
 Facsimile No.: [*]
 Telephone No.: [*]
	  	

 29.11 Vienna Convention. The Parties hereby expressly agree to exclude and disclaim the application of the
provisions of the United Nations Convention on Contracts for the International Sale of Goods (also referred to as the Vienna Convention), and any successor convention or legislation, to this Agreement. 
 29.12 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. 
 [Remainder of Page Intentionally Left Blank] 
 [*] Redacted type. 
  

 83 
 Duke:         
 Shaw:        

 IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized
representative as of the date first above written. 
  

									
	DUKE ENERGY CAROLINAS, LLC	 		 	SHAW NORTH CAROLINA, INC.
					
	By:	 	 	 		 	By:	 	 
	Name: James L. Turner	 		 	Name: Monty Glover
	Title: President & COO, U.S. Franchised Electric & Gas	 		 	Title: Executive Vice President

  

 84 
 Duke:         
 Shaw:        

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE: Cover	  	REVISION: 0
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Scope of Work 
 [*] 

 EXHIBIT A-1 ATTACHMENT 2 
 DUKE BUCK STATION 
 DIVISION OF RESPONSIBILITY (DOR) 
  

 [*] 
 [*]
Redacted type. 
  

					
		  		  	Revision 0 4/24/2008

 Exhibit A-1 Attachment 3 
 [*] 
 [*] Redacted type. 

 Exhibit A-1 Attachment 4 
 [*] 
 [*] Redacted type. 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 5	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 5 
 P&ID’s (LATER) 
  

 Exhibit A-1 Attachment 5 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 6	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 6 
 Equipment List (LATER) 
  

 Exhibit A-1 Attachment 6 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 7	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 7 
 Electrical One Lines (LATER) 
  

 Exhibit A-1 Attachment 7 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 8	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 8 
 Raw Water Analysis (LATER) 
  

 Exhibit A-1 Attachment 8 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 9	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 9 
 Gas Analysis (LATER) 
  

 Exhibit A-1 Attachment 9 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 10	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 10 
 Basis of Design (LATER) 
  

 Exhibit A-1 Attachment 10 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: A
	  	CLIENT:	  	Duke Energy
			
	Exhibit A-1 Attachment 11	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 Exhibit A-1 
 Attachment 11 
 Clarifications and Assumptions 
 [*] 
  

 Exhibit A-1 Attachment 11 

 EXHIBIT A-2 
 PERFORMANCE TESTING of BUCK COMBINED CYCLE 
 GUARANTEED UNIT NET HEAT RATE, OUTPUT, &
EMISSIONS 
 And 
 PERFORMANCE VERIFICATION of PLANT EQUIPMENT 

									
	 

 

  
 TECHNICAL DOCUMENTATION

  
 Exhibit A-2
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	2 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	1.0	INTRODUCTION 

  

	1.1	OBJECTIVE 

 This Exhibit establishes conditions, parameters and methods for
Performance Testing of Buck Combined Cycle and Simple Cycle Net Output, Heat Rate and Emission guarantees established by the Agreement, corrected to the Base Performance Conditions identified in Section 7 of this Exhibit. 
 Buck Simple Cycle Net Output and Net Heat Rate will be tested, calculated and corrected prior to Simple Cycle Substantial Completion. 
 Buck Combined Cycle Net Output will be tested, calculated and corrected based on the fully duct-fired case steam flow. Net Heat Rate will be tested, calculated and
corrected based on the no duct firing condition with two combustion turbines at full load. 
 Additionally, Performance Verification of the Combustion
Turbines, Heat Recovery Steam Generators, and Steam Turbine along with major plant equipment and systems is addressed during the Combined Cycle Performance Test. 
 Consumptive guarantees subject to Performance Liquidated Damages shall also be tested in accordance with this Exhibit and measured while simultaneously achieving Guaranteed Emission Limits. 
 Buck Combined Cycle will not exceed Permitted Emissions Limits as identified in Table A-2.1 and measured in accordance with Table A-2.1 during Performance Testing.
Emission Compliance Testing, including CEMS Certification testing, may occur prior to Substantial and Final Completion, with Guaranteed Emission Limits verified during Performance Testing either with the certifiable CEMS (defined in
Section 8.3) or certified temporary test equipment. 
 If tuning or other adjustments that may effect emissions occur after non-CEMS monitored emission
acceptance and prior to Substantial and/or Final Completion, the Owner may require re-testing of emission compliance of non-CEMS monitored parameters to verify that tuning has not violated emission compliance. 
 Guaranteed Emission Limits for Owner Furnished Equipment are Make Right Performance Guarantees as part of the Combustion Turbine and Heat Recovery Steam Generator
contracts. The Contractor is responsible for Make Right Performance Guarantees for the Auxiliary Boiler and any other emission sources procured by the Contractor. 
  

	1.2	PERFORMANCE TEST PROGRAM PHILOSOPHY 

 Table A-2 summarizes the Performance
Testing and Equipment Verification Program. The purpose of the Performance Test and Equipment Verification Program is fivefold: 

									
	 

 

  
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 Exhibit A-2
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	3 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	1.2.1	ASME Code Testing 

  

	 	a.	Performance Testing - Confirm that Net Output and Net Heat Rate guarantees contained in the Agreement are met, using ASME Performance Test Codes listed in Table A-2. If these
values are not met, to establish the shortfall value for application of remedies or damages addressed in the Agreement with the Contractor. 

  

	 	b.	Combustion Turbine, Heat Recovery Steam Generator, and Steam Turbine Testing - Confirm the performance guarantees of Owner Equipment are met, using Performance Test Codes
listed in Table A-2. If these values are not met, to establish the shortfall value. These may be run concurrently with the plant Performance Test, where appropriate. 

  

	1.2.2 	Non Code Testing 

  

	 	a.	Major Equipment Verification - Report the performance of major equipment, using data collected during plant Performance Testing using permanently installed plant
instrumentation and/or instrument installed for the plant Performance Test. If performance guarantees are not met for Plant Net Output or Plant Net Heat Rate, then individual Equipment Verification Testing will be conducted as described in section
8.1 to establish an estimate of the shortfall value, for possible Code Testing. If performance guarantees are met for Plant Net Output and Plant Net Heat Rate, Equipment Verification Test reports shall be reported to Duke Energy. If Duke Energy
determines that additional testing, including Code Testing, may provide efficiency and capacity benefits, Duke Energy may employ Contractor for additional analysis and testing beyond the scope of the Target Price. 

  

	 	b.	Plant Baseline Data - Establish the overall plant Baseline Performance Data for key operating parameters based on a combination of data taken during the plant Performance
Test, Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine Performance Test and DCS collected data. 

  

	 	c.	Emissions Compliance Test - Perform emission compliance test in accordance with Buck Combined Cycle Air Permit and referenced regulatory requirements.

  

	1.3	AGREEMENT AUTHORITY 

 The Agreement contains specific information
concerning guarantees, results, re-testing, schedule, remedies, liquidated damages and warranties, and is not addressed in this Performance Testing Exhibit. 
  

	1.4	PERFORMANCE OF OWNER EQUIPMENT 

 The Contractor’s Net Output and Net
Heat Rate Performance Guarantees are based on the guaranteed performance of the Owner Equipment. Plant performance test results shall be corrected for Owner Equipment performance shortfalls that are not attributable to Contractor responsibility. It
will be the 

									
	 

 

  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	4 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 
Contractor’s responsibility to test, document and verify any such claimed performance shortfall. 
 During LNTP, Duke Energy and Contractor will adjust the Performance Guarantee values for Net Heat Rate and Capacity. 
 The Guaranteed Net Heat Rate will be determined by the following methodology: 
 GNHR = NG/((2 x GT Output) + ST Output – Aux – HRSG Aux - GSUL) 
 Where: 
 NG = Natural Gas Consumed (btu/hr HHV) in Combustion Turbines based on General Electric guarantee condition corrected to Base Performance Conditions.

 GT Output = Net Output (kw) of Combustion Turbine based on General Electric guarantee corrected to Base Performance Conditions. 

ST Output = Net Output (kw) of Steam Turbine based on General Electric predicted performance corrected to Base Performance Conditions, corresponding to
the HRSG unfired guarantee. 
 Aux = Power consumption (kw) of Contractor supplied balance of plant equipment determined during LNTP phase.

 HRSG Aux = Power consumption (kW) of HRSG vendor supplied equipment. 
 GSUL – Losses across generator step-up transformers and auxiliary power use by generator step-up transformers. 
 The Guaranteed Plant Capacity will be determined by the following methodology: 
 Capacity = (2 x GT Output) + ST Output – Aux – HRSG Aux - GSUL 
 Where: 
 GT Output = Net Output (kw) of Combustion Turbine based on General Electric guarantee corrected to Base Performance Conditions. 
 ST Output = Net Output (kw) of Steam Turbine based on General Electric guaranteed performance corrected to Base Performance Conditions, corresponding to
the HRSG fully duct fired guarantees. 
 Aux = Power consumption (kw) of Contractor supplied balance of plant equipment determined during LNTP
phase. 
 HRSG Aux = Power consumption (kw) of HRSG vendor supplied equipment. 

									
	 

 

  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	5 of 16	  	REVISION	  	0
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 GSUL – Losses across generator step-up transformers and auxiliary power use by generator step-up
transformers. 
  

	1.5	SUBSTANTIAL COMPLETION TESTING 

 The initial Performance Testing is used to
satisfy the Minimum Performance Guarantees. This Test shall be satisfied by the same methods as the Plant Performance Test methodology, except where a substitute test method is approved by the Owner. 
 A substitute test using installed plant permanent instrumentation in lieu of calibrated temporary test instrumentation may be approved after Owner review. Temporary high
accuracy instrumentation will be used by Contractor for purposes of verifying compliance with the Guaranteed Performance. 
 The initial Performance Test may
satisfy the requirement of the Performance Guarantees if performed in accordance with Section 6. of this Exhibit. 
  

	2.0	TEST RESPONSIBILITY 

 All testing described in this Exhibit is in
Contractor’s scope of supply. 
 Test Contractor approved by the Owner, shall conduct the Plant Performance Test, Combustion Turbine, Heat Recovery
Steam Generator and Steam Turbine Performance Test, and compile the Plant Baseline Data. The Contractor and the Test Contractor may share the responsibility for the Major Equipment Verification as outlined in Table A-2. 
 The Test Contractor shall be responsible for the Performance Test Plan (PTP), test instrumentation including calibration and set up, pre and post test uncertainty
analysis, conduct of the testing, data acquisition, data reduction, post test calculations, and test report for Plant Performance Testing, Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine Testing, Plant Baseline Data and Major
Equipment Verification (except where excluded in Table A-2). 
  

	3.0	PERFORMANCE TEST PLAN 

 The Contractor will submit [*] prior to
commencement of the Performance Test a complete detailed Performance Test Plan (PTP) mutually approved by Owner, Test Contractor, Contractor and Owner Equipment Contractor’s. The PTP will constitute an agreement for the Performance Testing by
the Parties to the test. Differences between the Test Procedures or methods contained in/or developed in accordance with the PTP and the respective Agreements or established industry test codes are by mutual agreement of the Parties to the test, as
approved in the PTP. A sample Performance Test Plan is provided as Attachment A-2.1 to demonstrate the level of detail required in the PTP. 
 The PTP form
and contents shall specifically meet the requirements of ASME PTC 46 – 1996, Section 
 [*] Redacted type. 

									
	 

 

  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	6 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 
3.2 “Test Plan”, where ASME Code Testing procedures are being applied. The actual test methods and corrections for each test shall be in accordance
with Codes identified in Table A-2. 
  

	4.0	TEST UNCERTAINTY 

 Pre-Test uncertainties (for ASME Code Tests) will be
calculated in accordance with applicable ASME Codes, and shall not exceed ASME PTC requirements for the applicable Code Test. Post test field verifications will be performed on instruments measuring parameters where there is no redundancy or for
which the data is questionable. 
  

	5.0	DEGRADATION 

 Degradation shall be applied to the Net Output and Net Heat
Rate Tests, in accordance with Owner Equipment guarantees. An enthalpy drop test in accordance with ASME PTC 6.2 requirements shall be performed on the steam turbine by the Test Contractor as soon as practical after startup, and prior to the Net
Heat Rate and Net Output Test. Degradation attributed to the steam turbine shall be based on enthalpy drop test results in accordance with Steam Turbine Generator guarantees. 
 Degradation due to the Gas Turbine will be based on the actual operating hours of each individual turbine and applied based on that component’s affect on the overall facility performance guarantee. The
Manufacturer’s Curve will be used. Degradation due to the Steam Turbine will be based on the change in efficiency, as determined by Section 3.3.5 of this PTP, and that component’s affect on the overall facility performance guarantee.

 Corrections to test results due to degradation that are attributable to Contractor’s actions shall not be applied. This includes both equipment scope
and schedule effects. 
  

	6.0	PERFORMANCE TESTING – ASME CODE TESTING 

  

	6.1	TEST RUNS AND CORRECTIONS 

 Performance Testing involves set-up, testing,
measurements and data collection, subsequent calculations and corrections. A series of [*] individual Test Runs meeting the Code requirements for duration (no less than [*] each), shall be performed at the test conditions for each the
Net Output and Net Heat Rate, which Buck Combined Cycle is subject to at the time of the testing. Test operational and data stability requirements set forth in ASME Codes shall be met. 
 Results of the [*] Test Runs shall be corrected to Base Performance Conditions and averaged for comparison. The Performance Test will be compared to the Performance Guarantee values. The Combustion Turbine,
Heat Recovery Steam Generator and Steam Turbine will be corrected to Owner Equipment Contract conditions and compared to contract values. 
 Demonstration of
the Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine 
 [*] Redacted type. 

									
	 

 

  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	7 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 
performance will require the Test Contractor to perform measurement/correction methodology required by the governing ASME PTC. 
 Contractor shall provide all required ASME PTC 46, PTC 22, PTC 4.4 and PTC 6.2 correction data. At a minimum, raw source data for curves or correction curve equations
shall be supplied. Curves may be additionally supplied as well, but priority of test correction source will be, in order of preference; Manufacturer provided source data or curve equations, best fit equations of Manufacturer provided data or curves,
visual reads of Manufacturer provided data or curves, and Contractor supplied data, curves, and equations. Contractor shall submit all correction calculations, correction data and any thermal models for review and approval [*] days prior to
commencement of testing. 
  

	6.2	INSTRUMENT CALIBRATION 

 Instrument calibration shall meet ASME PTC Code
requirements. Test Contractor shall submit all instrument calibration data to the Contractor and Owner for review prior to the commencement of the Performance Test. Flow devices meeting the requirements set forth by ASME Code to measure primary
parameters and variables need not undergo inspection following the performance test if the devices have not experienced conditions that would violate their integrity. Such conditions include steam blows and chemical cleaning. 
  

	6.3	TEST EQUIPMENT AND INSTRUMENTS 

 The Contractor will have the
responsibility for providing all test instrumentation and equipment, whether temporary or permanently installed. Instrumentation shall meet the requirements of the applicable ASME PTC Code, in order that the calculated pre test uncertainty does not
exceed ASME Code requirements. Primary condensate flow instrumentation shall be supplied and calibrated in accordance with ASME PTC 6.2 – 2004, and shall remain the property of the Owner after the completion of Performance Testing. 

 

	6.4	TEST INTERRUPTION 

 Test runs are not required to be continuous, but shall
occur within the same [*] hour period, in order to assure that the Buck Combined Cycle configuration and the test conditions are relatively similar. [*] 
  

	6.5	BUCK COMBINED CYCLE PERFORMANCE TESTING 

 The Buck Combined Cycle
Performance Test will be in accordance with ASME PTC 46-1996 “Performance Code on Overall Plant Performance”, except where modified by the Contract, or by mutual agreement by the Parties to the Test. 
  

	6.5.1 	Electrical Terminal Point of Guarantees – Buck Combined Cycle Performance Testing 

 The electrical terminal point of the Buck Combined Cycle Performance Guarantee is as measured at the high side of the main step up transformers. Transformer losses (main step up and aux) due to corrections to Base
Performance Conditions will be included as part of the post test corrections. 
 [*] Redacted type. 

									
	 

 

  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	8 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	6.5.2 	Performance Test Auxiliary Loads 

 The Net Output and Net
Heat Rate Guarantee shall include all auxiliary loads, including pumps, fans, motors, heaters, air conditioning, lighting, material handling and miscellaneous equipment that are required to operate the equipment in a normal plant configuration.

 The auxiliary load methodology for the Performance Test will be based on operation during the Base Performance Condition (summer day). As
part of the PTP, the Contractor will submit, for approval, a load list, indicating the test operating status of all plant electrical equipment greater than 2 hp (valve motor operators need not be accounted for): The following is the type of
operation that is expected: 
  

	 	a.	All normal interior lighting shall be energized. 

  

	 	b.	All air conditioning/heating/ventilation required to maintain the plant environment on the test day will be operating. 

  

	 	c.	All equipment required for normal full load operation will be energized. 

  

	 	d.	Redundant or surge capacity equipment shall be energized, active power being supplied but equipment not running. 

 Water treatment and other loads of a cycling nature shall be characterized prior to the Performance Test. The Contractor will submit as part of the PTP,
procedures for the determination of these cycling loads, for Owner approval. 
 Auxiliary loads for major Owner Equipment will be individually
measured for determining satisfaction of Owner Equipment Contract guarantees. 
 Preliminary testing and results calculations shall occur
prior to commencement of Performance Testing (this testing is not required for Substantial Completion). Results shall be submitted to the Owner and approved prior to Performance Testing. 
 Testing will determine the kw-hr consumed per unit of material, for correction to the plant auxiliary loads measured. Where appropriate, and approved by
the Owner, operation of cycling loads during the test can be substituted. 
  

	6.5.3 	Plant Configuration 

 During the Performance Test, except
as identified below, the plant will be aligned and operated in the normal plant configuration – as approved by the Owner, with regards to mechanical and electrical components and systems. All steam and water drains and traps will be aligned for
safe system operation. 
  

	 	•	 	 HRSG continuous blowdown will be isolated during the test runs. 

									
	 

 

  
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	  	PAGE	  	9 of 16	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	 	•	 	 Drains or traps with leakage that cannot be repaired prior to test may be isolated during test runs if safe to do so, otherwise corrections will be applied to test
results as determined by the Contractor 

  

	 	•	 	 Gas turbine inlet air chillers will not be energized 

 The DCS will be in automatic operation, except where approved by the Owner. Setpoints, system limits, alarms and trips will be in normal plant configuration and will not be deviated from, for the purpose of the
Performance Test. 
  

	6.6	COMBUSTION TURBINE, HEAT RECOVERY STEAM GENERATOR, AND STEAM TURBINE 

 A
Combustion Turbine Test (Full Test) in accordance with ASME PTC22 will be required to demonstrate the combustion turbine performance. A Steam Turbine Test (Full Test) in accordance with ASME PTC 6.2 – 2004 will be required to demonstrate the
steam turbine performance. Likewise, the performance of the Heat Recovery Steam Generator will be demonstrated using ASME PTC 4.4 – 1981 R(2003). These Tests shall be in accordance with the subject Owner Equipment Contracts and the mutually
agreed to test procedures. Test procedures shall also provide for demonstration of individual auxiliary loads for Combustion Turbine, Steam Turbine, and Heat Recovery Steam Generator. See Table A-2 of this Exhibit. 
  

	6.7	TEST AND DATA REPORT 

 The Contractor shall provide a complete report in
accordance with ASME PTC 46 (PTC 22, PTC 4.4 and 6.2 for the Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine respectively), and will be submitted within the time specified in the Agreement. A preliminary report of results shall
be submitted within the time specified in the Agreement. The report shall be submitted in both electronic and paper format. Final report contents shall be defined in the Performance Test Plan. This shall include, but not be limited to: 

 

	 	a.	Calibration data for all instruments used in calculations 

  

	 	b.	Raw and summary averaged data for each Test Run 

  

	 	c.	Key Plant DCS data during each Test Run, as identified by the Owner prior to the Test 

  

	 	d.	All calculations and corrections, including correction curves and data. 

  

	 	e.	Final performance correction calculations shall be in Excel and submitted as an Excel format file. 

  

	7.0	BASE PERFORMANCE CONDITIONS 

 Performance Guarantees are based on the
following reference conditions. Test results for the Performance Testing will be corrected to these conditions as detailed in the Performance Test Plan: 

									
	 

 

  
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 Exhibit A-2
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	 	a.	Power Factor (high side of main step up) = [*] 

  

	 	b.	Fuel – Performance Fuel as identified in Table A-2.3 

  

	 	c.	Ambient dry-bulb temperature – [*] 

  

	 	d.	Ambient wet-bulb temperature – [*] 

  

	 	e.	Barometric Pressure – [*] 

  

	 	f.	Owner supplied equipment guarantee/expected performance 

  

	8.0	PERFORMANCE TESTING – NON CODE TESTING 

  

	8.1	MAJOR EQUIPMENT VERIFICATION AND EQUIPMENT PERFORMANCE TESTING 

 The Contractor shall report the performance of major equipment, using data collected during Performance Testing to determine the performance of the major equipment listed below, if adequate instrumentation exists. The Equipment Verification
Tests will be conducted utilizing permanently installed plant instrumentation and plant Performance Test instrumentation. No test instrumentation will be installed specifically for the Equipment Verification Tests (i.e. Circ Water flow rate).

 This testing is not required to be in strict accordance with applicable Test Codes referenced in Manufacturer contracts, but shall be of
sufficient accuracy to give indication of the equipment performance. Equipment design data, such as pump curves and control valve flow coefficients, may be used to supplement the test data for equipment performance indication. The results shall be
corrected to Manufacturer contract conditions as part of the Test Report. The Contractor shall supply all raw data and calculations as part of the Test Report. 
 Even if performance guarantees are met for Plant Net Output and Plant Net Heat Rate, Duke Energy may determine that additional testing, including Code Testing, is required to maximize efficiency and capacity benefits.

 Equipment Performance Testing will be conducted if performance guarantees are not met for Plant Net Output or Plant Net Heat Rate; will be
limited to the equipment listed below; and will be based on Plant instrumentation. 
 Duke Energy will use these reports to make a
determination concerning the need for further detailed Code testing of equipment. 
  

	 	a.	Feedwater, Hotwell Condensate pumps 

  

	 	b.	Circulating water pumps 

 [*] Redacted type. 

									
	 

 

  
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

	 	c.	Cooling tower 

  

	 	d.	Condenser 

  

	 	e.	Main Step Up transformers 

  

	 	f.	Water Treatment 

  

	 	g.	Emissions Compliance Test 

  

	8.2	PLANT BASELINE DATA 

 The Contractor shall report the overall baseline
performance data for key operating parameters (to be identified with Owner agreement, in the Performance Test Plan) based on a combination of data taken during the Performance Test, Combustion Turbine, Heat Recovery Steam Generator and Steam Turbine
Performance Test and DCS collected data. The goal is to establish initial Plant Baseline Data for comparison for future operation. 
 The basis of the report
shall be uncorrected averaged data from both the DCS and temporary performance test instrumentation from one of the Performance Testing Test Runs selected by the Owner. 
  

	8.3	EMISSIONS COMPLIANCE TEST AND CEMS CERTIFICATION 

 Prior to Simple Cycle
Substantial Completion and the simple cycle configuration is sufficiently complete so that all systems are capable of safe operation in accordance with applicable Laws, Good Practices and the Project Manuals, Contractor shall test the simple cycle
stacks in accordance with the requirements of applicable Government Approvals, applicable regulations to verify compliance with the Permitted Emission Limits (the “Emissions Compliance Test”). The Emissions Compliance Test shall be
undertaken by the Contractor in compliance with all federal, state, local, and Contract requirements; including schedule. 
 Prior to Combined Cycle
Substantial Completion and the combined cycle configuration is sufficiently complete so that all systems are capable of safe operation in accordance with applicable Laws, Good Practices and the Project Manuals, Contractor shall test the HRSG stacks
in accordance with the requirements of applicable Government Approvals, applicable regulations to verify compliance with the Permitted Emission Limits (the “Emissions Compliance Test”). The Emissions Compliance Test shall be undertaken by
the Contractor in compliance with all federal, state, local, and Contract requirements; including schedule. 
 The Emissions Compliance Test for simple cycle and combined cycle may be completed concurrently with Performance Testing to ensure that equipment degradation corrections are avoided or minimized. Stack emissions will be measured during the
Performance Test by temporary certified CEMS testing equipment or by the permanent plant CEMS if it is certifiable. Nitrogen oxide (NOX), will be
verified using the “certifiable” CEMS or by a certified leased CEM system. A certifiable CEMS is defined as a CEMS that has been installed, calibrated, tested (40 CFR, Part 75 Certification Test) and maintained in accordance with the
requirements of the air permit and appropriate regulatory requirements. The 

									
	 

 

  
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 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 
“certifiable” CEMS are not required to have received formal regulatory approval. Opacity will be verified using the Unit “certifiable”
continuous opacity monitoring system (COMS). 
 The Contractor shall develop a schedule for providing the Owner necessary forms, data and reports well in
advance of regulatory required Owner notifications and submittals. Contractor shall prepare forms, data and reports in accordance with Applicable Permits and regulatory requirements. 

									
	 

 

  
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	  	PAGE	  	13 of 16	  	REVISION	  	0
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 Table A-2 
  

									
	 	  	 	  	 	  	Part of
	 Parameter
	  	Guarantee	  	Test Method
Note 1	  	Performance
Test	  	Verification
Test
	 Simple Cycle Net Heat Rate
	  	EPC	  		  	X	  	
	 Simple Cycle Net Output
	  	EPC	  		  	X	  	
	 Combined Cycle Net Heat Rate
	  	EPC	  		  	X	  	
	 Combined Cycle Net Output
	  	EPC	  		  	X	  	
	 Steam Turbine
  
 •        Net Heat Rate
  
 •        Net
Output
  
 •        Flow Capacity
	  	Manuf.
 Contract
	  	PTC 6.2 –
2004	  	X	  	
	 HRSG
  
 •        Steaming
  
 •        Capacity
  
 •        SH and RH Outlet Temp
  
 •        RH dP
  
 •        NOx

  
 •        CO
  
 •        VOC
  
 •        Ammonia Slip
	  	Manuf.
Contract See Notes
	  	PTC 4.4–
1981	  	X	  	X

									
	 

 

  
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 NOTES 
  

	1.	All ASME Code Tests will require application of additional ASME Test Code requirements such as PTC 1 and the PTC 19 Series. Where conflict exists, the most recent approved PTC will
govern. Plant Performance will be based on the ASME 1967 Steam Tables or the steam tables used for Owner supplied equipment guarantees, if different. 

  

	2.	Heat Recovery Steam Generator and Steam Turbine efficiency and capacity testing will be Code Tests capable of supporting potential claims of liquidated damages against
Manufacturers, if applicable. 

  

	3.	For steam generator guarantees, steam flows are as identified in the heat recovery steam generator contract 

									
	 

 

  
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 TABLE A-2.1 
 Buck Combined Cycle Field Performance Testing & Equipment Verification Matrix 
  

					
	 Combustion Turbine Generator Supplied
	  	 Guarantee
	  	 Test Method or Code

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

			
	 [*]
	  	Manufacturer’s contract	  	
			
	 Heat Recovery Steam Generator Supplied
	  	 Guarantee
	  	 Test Method or Code

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

			
	 [*]
	  	Manufacturer’s contract	  	 [*]

 [*] Redacted type. 

									
	 

 

  
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	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Performance Test and Guarantees

	  	  

  

 Table A-2.3: Natural Gas Composition Basis 
  

			
	 CONSTITUENT
	  	 PERCENTAGE BY VOLUME

	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]
	[*]	  	[*]

 [*] Redacted type. 

 EXHIBIT A-3 
 SCHEDULE OF DRAWINGS 
 [*] 

									
	 

 

  
 Site Description
  
 Exhibit A-4
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 5	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Site Description

	  	  

  

 EXHIBIT A-4 
 Site Description 
 Page 1 

									
	 

 

  
 Site Description
  
 Exhibit A-4
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	2 of 5	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Site Description

	  	  

  

 LOCATION: 
 The
station is located in Rowan County, in North Carolina, on Dukeville Road, approximately 50 miles from Charlotte and Greensboro. 
 DIRECTIONS:

  

			
	 From I-85 North:
	  	Take Exit 81 (Spencer exit)
		  	Turn left on Long Ferry Road and travel approximately 1.4 miles
		  	Turn left on Dukeville Road and continue to Buck Steam Station entrance
		
	 From I-85 South:
	  	Take Exit 81 (Spencer exit)
		  	Turn right on Long Ferry Road and travel approximately 1.4 miles
		  	Turn left on Dukeville Road and continue to Buck Steam Station entrance

 ADDRESS: 
 Buck
Steam Station 
 1555 Dukeville Road 
 Salisbury, NC 28146

 PHONE: (704) 645-2700 
 EXISTING SITE CONDITIONS

  

	 	•	 	 The existing condition of paved plant roads and the main plant entrance road shall be considered deteriorated. 

  

	 	•	 	 The Contractor may use all plant roadways to move materials as required. Any material transports required that will involve the use of roads within the existing
station fenceline will require prior approval from station management. Any material transport required that has the potential to block the back entrance to the existing station shall be coordinated with the Station Project Coordinator.

  

	 	•	 	 The grounds around the Station are currently bounded by a chain link fence. 

  

	 	•	 	 Contractor to provide temporary fencing associated with the Project that will isolate the Project from the existing plant, as identified on Attachment 3 in Exhibit
A-1 of the Agreement. 

  

	 	•	 	 The Contractor shall not at any time block traffic flow in or out of the main entrance to the Station via Dukeville Road without prior written approval from the
Owner’s Project Director. 

  

	 	•	 	 Construction laydown and contractor parking locations for use by the Contractor are identified on Attachment 3 in Exhibit A-1 of the Agreement. Contractor is
allowed to modify roadway leading to construction warehouse and laydown areas to provide egress across existing ash sluice lines. At all times, egress through the back gate for the existing facility must be maintained. 

 

	 	•	 	 Contractor to assure the existing ash sluice lines operations are not impacted by construction activities for the duration of the project.

 Page 2 

									
	 

 

  
 Site Description
  
 Exhibit A-4
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	3 of 5	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Site Description

	  	  

  

	 	•	 	 Existing street lights along back entrance to the existing facility will have to be removed for construction of the project. Contractor to assure lighting around
the new facility will be adequate for traffic flow along the new back gate entrance. 

  

	 	•	 	 Access to the Site for the Contractor will be via a gated entrance off of Dukeville Road, established by the Contractor. The Contractor will provide a guard to
monitor and operate the gate during normal construction hours as defined by the Contractor. Staffing of the gate outside of the normally defined construction hours will require approval of the Owner’s Project Director with prior notification of
extended hours. If required, the established gate along Dukeville Road may be modified by the Contractor to account for access of both union and non-union employees. Union and non-union parking shall be segregated by the Contractor.

  

	 	•	 	 Requests for special deliveries to the Contractor through the Station’s main entrance gate are required in advance and are subject to the Owner’s
approval. 

  

	 	•	 	 The Contractor shall be aware that other contractors executing work at the Station not related to the CTCC project will use Dukeville road as well during the
Project. 

  

	 	•	 	 Attachment 3 in Exhibit A-1 of the Agreement illustrates areas that will be made available to the Contractor for parking, office space, laydown, and construction
activities. The Contractor may request additional areas to use in addition to those illustrated on this attachment. Access to these areas is subject to the approval of the Owner’s Project Director. Denial of access by the Owner to the
additional areas requested shall not provide grounds for issuance of a Change Order by the Contractor. 

  

	 	•	 	 Digital pictures to document the existing conditions of the site prior to start of CTCC construction activities are located in Citadon under the following path:
Buck CTCC/Document Management/Project Management/Photographs/Pre Construction. 

 STATION ACTIVITIES POTENTIALLY INTERACTING WITH THE
CTCC PROJECT: 
 Table A4-1 provides a summary of other Station activities that may potentially interact with the CTCC project during the implementation
phase. Both the Owner and the Contractor will demonstrate cooperative efforts to minimize the impact of these activities with respect to the Contractor’s Site construction and commissioning activities. 
 Page 3 

									
	 

 

  
 Site Description
  
 Exhibit A-4
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	  	PAGE	  	4 of 5	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Site Description

	  	  

  

 SECURITY THREAT LEVELS 
 The Contractor shall be aware of the Security Threat Level system that is employed by the Owner at Buck Steam Station. 
 SECURITY PLAN DURING
CONSTRUCTION 
 Attachment 3 in Exhibit A-1 of the Agreement illustrates temporary fencing to be installed during the construction phase. The intent is to
isolate the Contractor’s site activities as much as possible from the day to day operations of the Station. The Contractor will be permitted to work inside the construction fence as required. The Contractor shall be held accountable for
controlling access through the gates while they are being used for either employee or material movement. The Contractor shall be held accountable for closing and locking the gates after each use. Temporary relocation of the construction fencing by
the Contractor is acceptable to provide access for specific construction activities. The Contractor shall permit Station employees access into the construction areas to commission, operate, and maintain equipment as necessary. 
 Page 4 

 Table A4-1 
 Other Station Activities Potentially Interacting with the Buck CTCC Project 
  

							
	 Innage/Outage
	  	Unit	  	 Approximate Length of
Outage
	  	 Remarks

	Fall 2008	  	Unit 4	  	One week	  	General Maintenance Outage
				
		  	Unit 6	  	Eight weeks	  	Major boiler work and air preheater basket replacement
				
	Spring 2009	  	Unit 4	  	One week	  	General Maintenance Outage
				
		  	Unit 5	  	One week	  	General Maintenance Outage (this outage has the possibility to be lengthened to 3-4 weeks for air preheater basket replacement)
				
	Fall 2009	  	Unit 3	  	One week	  	General Maintenance Outage
				
		  	Unit 6	  	One week	  	General Maintenance Outage
				
	Spring 2010	  	Unit 4	  		  	Retirement
				
		  	Unit 5	  	One week	  	General Maintenance Outage
				
	Fall 2010	  	Unit 3	  	One week	  	General Maintenance Outage
				
		  	Unit 6	  	One week	  	General Maintenance Outage
				
	Spring 2011	  	Unit 3	  		  	Retirement.
				
	Fall 2011	  	Unit 5	  	One week	  	General Maintenance Outage
				
		  	Unit 6	  	Twelve weeks	  	Turbine Inspection and Generator Rewind

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: 0
	  	CLIENT:	  	Duke Energy
			
	Exhibit B Schedule	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 SCHEDULE 
  

	1.0	GENERAL 

 This Exhibit includes the Level 1 Schedule from
Contractor’s proposal and Key Schedule Milestones.[*] 
  

	2.0	KEY CONTRACTOR SCHEDULE MILESTONES 

  

					
	 Key Schedule Milestones
	  	 Definition (if required)
	  	Date
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  	 [*]
	  	[*]
	 [*]
	  		  	[*]
	 [*]
	  		  	[*]

 [*] Redacted type. 

					
	

	  	J.O./W.O.NO: 2131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: 0
	  	CLIENT:	  	Duke Energy
			
	Exhibit B Schedule	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 [*] 
  

	3.0	OWNER EQUIPMENT 

 Owner is purchasing the following
equipment: 
  

	 	•	 	 [*] 

  

	 	•	 	 [*] 

  

	 	•	 	 [*] 

  

	 	•	 	 [*] 

 On site delivery of these
major components are identified in the milestones above. Vendor data required from the Owner Equipment suppliers needed for preparation of the Contractor design drawings is identified in the schedule. 
  

	4.0	ATTACHMENTS 

  

	 	4.1	Level 1 Schedule 

 [*] Redacted type. 

 [*] 

 [*] 

 [*] 

 [*] 

 Exhibit C 
 [*] 
 [*] Redacted type. 

									
	 

 

  
 Contractor Permits and Utilities
  
 Exhibit D
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Contractor Permits and Utilities

	  	  

  

 EXHIBIT D 
 Contractor Permits and Utilities 

									
	 

 

  
 Contractor Permits and Utilities
  
 Exhibit D
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	2 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Contractor Permits and Utilities

	  	  

  

  
  

			
	 Type of Contractor Permit
	  	 Comments

	Construction Permits *	  	Potential permits include demolition, burning, blasting, and fueling. Check with Rowan County for building permit requirements. Todd Shuping will set up meeting
between Shaw and county to discuss.
		
	Temporary Construction Power Supply Inspection	  	Contractor will verify with Rowan County inspection requirements. Todd Shuping will set up meeting between Shaw and county to discuss.
		
	Over the road hauling permits for Station/Buck CC plant material	  	Required for material delivered to the station. (Permit turnaround is generally pretty quick but should plan for two week minimum for notification and approval from DOT.)
		
	Over the road hauling permits for Contractor eqpt.	  	Contractor construction equipment will be permitted by Contractor. (Permit turnaround is generally pretty quick but should plan for [*] minimum for notification and approval from DOT.)

		
	Access Road Issues (repairs, mailboxes, etc,,)- if required	  	The scope of this item may not require a permit. Planning and scoping during and after construction is needed to determine responsible party for repair and cost estimating.
		
	FAA Notification for Temporary Structures or Equipment	  	Permit required for any crane exceeding the height of the existing chimney. NOTE: FAA permitting for the stack to be by Owner, if required. 
		
	Erosion Control	  	Required prior to start of site clearing activities. Plan should be filed [*] before permit need date
		
	Stormwater Management Plan	  	Required prior to impacting isolated wetlands and will be developed along with erosion control plan. Plan should be filed along at the same time as erosion control and allow for [*] State
review and approval.
		
	Boiler Inspections; Required for Aux Boiler	  	Permit/certification required prior to startup of boiler, NOTE: Duke will keep Shaw informed of final scope of HRSG supplier and this permit.
		
	Elevators	  	Inspection/permits for all elevators installed by EPC Contractor (Clarify expectation in spec)
		
	Temporary Buildings	  	Define layout and building and discuss needs with County
		
	Administrative Building - Permanent facility for Duke	  	Define layout and building and discuss needs with County

 [*] Redacted type. 

									
	 

 

  
 Contractor Permits and Utilities
  
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	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	3 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Contractor Permits and Utilities

	  	  

  

			
	 Type of Contractor
 Utilities and Equipments
	  	 Description

	Potable Water	  	Drinking water and ice will be provided by Contractor for all construction personnel including all subcontractors; this will begin with site mobilization and continue throughout construction.
Contractor may use bottled water in office complex, all field water kegs may be filled from the station potable water supply. Contractor will consider a tank with pump for construction facilities. Check with county to determine permit needs, if any.

		
	Toilet Facilities	  	Toilet Facilities will be leased portable units to be provided by each subcontractor as required for their own personnel. Contractor facilities will be in place during mobilization, the
number and placement of units will be adjusted to suit staffing levels as the project progresses. Currently there are no plans to tie the Construction facilities into the station sanitary sewer system. Pump and haul permit is not required (To be
verified with the county)
		
	Fuel for Contractor equipment.	  	Fuel for equipment will be the responsibility of the equipment owner/leaser. For Contractor equipment a small (no more than 500 gallons) double walled gasoline fuel tank, located within a
temporary berm, will be maintained for small equipment fueling. Larger equipment will be fueled directly from a fuel delivery truck. Oil spill cleanup material (oil dry, absorbent pads, etc.) will be available for spill cleanups resulting from
refueling activities.
		
	Construction Power Distribution (From Owner – furnished points of service).	  	Contractor is responsible for distribution of temporary construction power including hook-up of contractor distribution system to secondary side of Owner’s transformer. Owner will provide
electric power, supply transformer and provide hook-up of primary side of transformer. Temporary power permit will be discussed with the county.
		
	Telephone and Data Communications	  	Contractor will provide voice data communication equipment. (Mike Long to check to see what is available “on the road”.
		
	Scrap Metal Disposal	  	Contractor/vendor shall dispose of all scrap metal.
		
	Waste Disposal	  	Contractor and subcontractors will provide for their own general trash removal (excludes Hazardous Wastes).
		
	Railroad Tie Disposal	  	Whatever ties the contractors brings on site for construction purposed; the contractor will remove from the site.
		
	Compressed Air	  	Contractor compressed air will be provided by portable gas, diesel or electric compressors starting with a single compressor as needed with additional units added as required. All
Contractor’s subcontractors will be responsible for supplying their own compressed air. Gas or diesel generators will require notification to State as insignificant sources listed in the air permit.
		
	Construction (Service) Water	  	Contractor will provide haulage of water received from designated location provided by the owner (fire hydrants) Contractor will provide any piping, storage and pumping for temporary service
water needs.
		
	“Raising” utilities on primary access roads	  	Contractor will work with county and local utility companies to deter the need for raising utilities crossing or along side access roads.

									
	 

 

  
 Owner
Permits and Utilities
  
 Exhibit E
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Owner Permits and Utilities

	  	  

  

 EXHIBIT E 
 Owner Permits and Utilities 

									
	 

 

  
 Owner
Permits and Utilities
  
 Exhibit E
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	2 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Owner Permits and Utilities

	  	  

  

			
	 Type of Owner Permit
	  	 Comments

	Minor Source Air Permit Modification	  	Permit is required prior to construction of any permanent foundation for the work. Duke has collected emission info from major equip vendors and utilized plant layout referenced in project
bid package.
		
	FAA Notification For New Stacks	  	Not applicable- stacks shorter than required height for FAA notification (200’).
		
	Stormwater Management Plan	  	Duke is discussing with DWQ and working to integrate this into the Sedimentation and Erosion Control Plan (See Contractor Permits and Utilities Exhibit).
		
	Isolated Wetlands Permit	  	Duke received permit on [*] Duke will work with the State on conditions required of this permit.
		
	NPDES Permit Modification	  	NPDES permit modification has been submitted to NCDENR. No additional information is needed.
		
	 ATC (Authorization To Construct)
(Wastewater Treatment)
	  	ATC required for: 1)Neutralization tank (from demin system, 2)Main Yard Sump & 3)Septic Tank (assuming routing to ash basin)
		
	Conditional Use Permit	  	Duke acquired Conditional Use Permit at March 17 Public Hearing from Rowan County Commission.
		
	Lighting Requirements for Stack and HRSG	  	Aviation lighting not required for HRSG.
		
	Well Permit	  	Determine potable water supply for station operation. If new well is needed, drilling of well must be permitted through NCDENR

 [*] Redacted type. 

									
	 

 

  
 Owner
Permits and Utilities
  
 Exhibit E
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	3 of 3	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 Owner Permits and Utilities

	  	  

  

			
	 Type of Owner
 Utilities and Equipments
	  	 Description

	Power for Contractor Equipment and Tools (Construction Electrical Power)	  	Owner will provide power tap. Contractor to cover the costs of auxiliary power used during construction, provided power feed does not come from retail service line. Shaw to provide
construction power requirements (KVA and voltage). Tap location and transformer location to be mutually agreed upon by Shaw and Duke. All distribution from provided taps to be provided by Shaw.
		
	Construction (Service) Water	  	Initially Owner will provide a source for Shaw to fill tanker truck with service water. Tap into existing service water may be provided later.
		
	Spoil Disposal Areas	  	Shaw will place soil and rock spoils on-Site in areas identified by Owner. Shaw will dispose of concrete and asphalt off- Site.
		
	Asbestos and Lead Paint Abatement/Disposal	  	Owner is responsible for all asbestos and lead paint abatement and disposal.
		
	Fuel Oil Contaminated Soil/Rock/Concrete	  	Owner is responsible for removal and disposal of contaminated soil/rock/concrete.
		
	Railroad Ties Disposal	  	Owner is responsible for disposal of all railroad ties removed if rail upgrade work is required (no tie removal required at this point in scope development). Shaw is responsible for providing
number of ties expected to Owner and stockpiling ties at an on-Site location to be determined by Owner (if necessary). (Ties supplied for any construction purpose will be handled by contractor- What is brought on site will be removed after
construction is complete.)
		
	Parking, Laydown, Construction Trailer Areas (Contractor responsible for site improvements such as grading, paving, etc.)	  	Owner will provide space onsite for parking, laydown, construction trailers, etc. Shaw is responsible for preparation and maintenance (grading, paving, etc.) of these areas.
		
	Potable Water	  	Tapping existing well is not an option for construction use. Duke and Shaw will meet with Salisbury/Rowan utilities to evaluate options for construction use. Duke to determine source for
plant operation and provide to Shaw for engineering/planning. Investigating new well for potable water supply to project.

									
	 

 

  
 CONTRACTOR’S KEY
PERSONNEL
  
 Exhibit F
	  	J.O./W.O. NO.	  	131073	  	SPEC. NO.:	  	
	  	PAGE	  	1 of 1	  	REVISION	  	C
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 List of Contractor’s Key Personnel

	  	  

  

 Contractor’s Key Personnel will be responsible for supervising the performance of Contractor’s obligations
under this Agreement. Any replacement of the key personnel listed below shall be subject to the prior written approval of Owner which the Owner shall not unreasonably withhold or delay. Contractor’s Project Director shall act as
Contractor’s liaison with Owner and shall have the authority (a) to administer this Agreement on behalf of Contractor, (b) to perform the responsibilities of Contractor under this Agreement, and (c) to bind Contractor as to the
day-to-day project management operations under the Agreement. 
  

			
	 Project Position
	  	 Person

	Project Director	  	 [*]

	Construction Manager	  	 [*]

	Project Engineering Manager	  	 [*]

	Lead Engineer Electrical	  	 [*]

	Lead Engineer Piping	  	 [*]

	Lead Engineer Mechanical	  	 [*]

	Lead Engineer I&C	  	 [*]

	Lead Engineer CSA	  	 [*]

	Subcontracts Manager	  	 [*]

	Procurement Manager	  	 [*]

 [*] Redacted type. 
  

									
	 

 

  
 List of Approved Subcontractors
  
 Exhibit G-1
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 47	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 List of Approved Subcontractors

	  	  

  

 EXHIBIT G-1: 
 DUKE ENERGY 
 LIST OF APPROVED SUBCONTRACTORS 
 BUCK COMBINED CYCLE FACILITIES 
 [*]

									
	 

 

  
 List of Subcontracts Under [*]

  
 Exhibit G-2
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 2	  	REVISION	  	0
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 List of Subcontracts Under [*]

	  	  

  

 [*] 
 [*]
Redacted type. 
  

 Exhibit H-1 
 4/30/2008 
 EXHIBIT H-1 
 [*] 

 Exhibit H-2 
 [*] 

									
	 

 

  
 Price and Schedule Refinement
Process
  
 Exhibit I
	  	J.O./W.O. NO.	  		  	SPEC. NO.:	  	
	  	PAGE	  	1 of 10	  	REVISION	  	1
	  	CLIENT	  	Duke Energy Carolinas, LLC
	  	 PROJECT
  
 TITLE
	  	 Buck Combined Cycle Project
  
 [*]

	  	  

  

 Exhibit I 
 [*] 

 Attachment 1 
 [*] 
 Buck Combined Cycle Project 
 [*] 

 Attachment 2 
 [*] 
 Buck Combined Cycle Project 
 [*] 

 Attachment 3 
 [*] 
 Buck Combined Cycle Project 
 [*] 

					
	

	  	J.O./W.O.NO: 1131073	  	SPEC. NO:
	  	PAGE:	  	REVISION: 0
	  	CLIENT:	  	Duke Energy
			
	 Exhibit J T&M Rate Sheets
	  	PROJECT:	  	Duke Buck Station GTCC
	  	  
 LOCATION:
	  	Salisbury, North Carolina

  

 T&M RATE SHEETS 
 [*] 
 [*] Redacted type. 

 EXHIBIT K 
 

 
 Substance Abuse Program 
 METRO INDIANAPOLIS COALITION 
 FOR CONSTRUCTION SAFETY (MICCS) 
  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
  

							
	  	 	  	 	 Table of Contents

	Part 1.	 	Introduction	  	3
	1.1 	 	Purpose	  	3
	1.2 	 	Benefits	  	3
	1.3 	 	MICCS ID Card and Database Protocol	  	3
	Part 2.	 	Revision History	  	4
	Part 3.	 	Definitions	  	5
	Part 4.	 	Tests: Procedures and Supporting Information	  	7
	4.1 	 	Reasons for Testing	  	7
		 	4.1.1	 	Annual/Pre-employment Test	  	7
		 	4.1.2	 	Follow-up Test	  	7
		 	4.1.3	 	Post Accident Test	  	7
		 	4.1.4	 	Probable Cause/Reasonable Suspicion Test	  	7
		 	4.1.5	 	Random Test	  	8
		 	4.1.6	 	Returning to Duty Test	  	8
	4.2 	 	Drug Testing Procedures	  	8
		 	4.2.1	 	Specimen Collection	  	8
		 	4.2.2	 	Laboratory Testing Procedures	  	9
		 	4.2.3	 	MRO Procedures	  	9
		 	4.2.4	 	Specimen Retest Protocol	  	9
	4.3 	 	Alcohol Testing Procedures	  	10
	4.4 	 	Test results	  	10
		 	4.4.1	 	Adulterated Test	  	10
		 	4.4.2	 	Diluted Test	  	10
		 	4.4.3	 	Negative Test Result	  	10
		 	4.4.4	 	Positive Alcohol Test	  	11
		 	4.4.5	 	Positive Drug Test Result	  	11
		 	4.4.6	 	Refusal to Test	  	11
	4.5 	 	Sanctions and Consequences for Failing a Drug Test	  	11
	Part 5.	 	Employee Responsibilities	  	13
	Part 6.	 	Auditing Information	  	14
	Part 7.	 	Contractor/employer responsibilities	  	15
	    APPENDIX A: SAMHSA Drug Screen	  	16
	    APPENDIX B: Diluted Specimen Processing	  	17
	 Instructions for Diluted Specimen Retests
	  	17
	 Employee Instruction Prior to Retesting
	  	17
	    APPENDIX C: Evaluation Form for Inability to Provide an Adequate Urine Specimen	  	18
	    APPENDIX D: Documentation When a Breath Test Cannot Be Conducted	  	20
	    APPENDIX E: Guidelines for Post-accident Testing	  	21

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 1. Introduction 

  

	1.1	Purpose 

 The use of alcohol and other drugs leads to unsafe working
conditions for workers, since the impaired worker is a potential hazard to himself and to those working with him. 
 The purpose of this document is to
outline a substance abuse program which establishes and maintains a safe and healthy work environment, free from drugs and alcohol, in Central Indiana. Although this document provides essential information, it cannot address all situations that may
arise. 
 Therefore, it is recommended that MICCS owners implement, publish, maintain, and enforce a contractor substance abuse policy which includes
prohibiting the unlawful use, possession, consumption, manufacture, distribution, and sale of controlled substances in the work place that meets or exceeds the guidelines presented in this document. All bid and contract documents should contain and
adhere to the same stringent guidelines. 
  

	1.2	Benefits 

 MICCS has developed this program to provide the following
benefits to the local construction industry: 
  

	 	•	 	 Minimize the duplication of effort created by multiple substance abuse programs that would be necessary were it not for this industry-wide program.

  

	 	•	 	 Establish minimum standards for substance abuse programs for contractors and building trade unions. 

  

	 	•	 	 Assist owners and contractors in developing substance abuse policies that result in increased safety for all on-site workers. 

  

	1.3	MICCS ID Card and Database Protocol 

  

	 	•	 	 Test results from all MICCS required testing will be entered into the MICCS database. The employee’s annual test date is automatically updated with any
negative drug result entry. 

  

	 	•	 	 A MICCS ID Card will be issued to employees with a negative test result. 

  

	 	•	 	 A new card will not be issued each time a test is taken. A new card will be issued as needed to update an employee’s photo and/or replace a worn unreadable
card. 

  

	 	•	 	 A MICCS ID Card displays the employee’s photo, name, and a computer generated identification number. A card cannot be issued without a photo.

  

	 	•	 	 The MICCS ID Card is the property of MICCS. Employers are to return invalid cards to MICCS. 

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 2. Revision History

  

							
	 Revision
	  	Revision
Date	  	 Reason for Revision/Change Request
	  	Revised By
	 1.0
	  	OCT 2004	  		  	
	 2.0
	  	JUL 2007	  	Reformatted document in MS Word. Modified content and organization	  	Alan L. Slaff

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 3. Definitions 

 The following terms and definitions are provided to ensure a common understanding of terms and consistency of use: 
 Accredited Laboratory (SAMHSA). A federally certified laboratory approved by the Department of Health and Human Services (DHHS) for testing of prohibited items
and substances. 
 Accident/Incident. Any event caused by an employee, either directly or indirectly, that results in treatment by a health care
provider, or that resulted in damage to property. This would also include any serious near miss incidents. 
 Adulteration. Tampering with a test
sample by the substitution or addition of other ingredients to mask the presence or use of illegal drugs, resulting in a specimen that contains a substance that is not expected to be present in human urine, or contains a substance expected to be
present but is at a concentration that it is not consistent with human urine. 
 Annual. Each employee’s obligation to be tested at least every
12 months. 
 Controlled Substances. Includes all illegal drugs listed in this document with the Department of Transportation (DOT) limits and
includes: 
  

	 	•	 	 Controlled substances, “look alike” and “designer” drugs 

  

	 	•	 	 Prescription drugs, used by a person other than the intended user 

  

	 	•	 	 Drug paraphernalia 

  

	 	•	 	 Alcoholic beverages, in the possession of or used by an employee on the premises, or while assigned to work off premises 

 Contractor. Employees or subcontractors of a corporation, company, or entity that performs construction or maintenance work. 
 Medical Review Officer (MRO). The licensed physician responsible for receiving laboratory results generated by a substance abuse testing program. 
 An MRO has: 
  

	 	•	 	 knowledge of substance abuse disorders 

  

	 	•	 	 received appropriate medical training to interpret and evaluate an individual’s medical history 

  

	 	•	 	 been certified by either the American Association of Medical Review Officers (AAMRO) or the American College of Occupational and Environmental Medicine (ACOEM).

 MICCS ID Card. A MICCS card is one that states that it meets the
requirements of the MICCS substance abuse program, and/or reciprocity with the MICCS program, and is verifiable through the Construction Safesite © (www.constructionsafesite.org)
site database. 
 MICCS ID Card (Counterfeit). A MICCS Identification (ID) Card modified in any manner without authorization from MICCS. 

Owner. The corporation, company, agency, or other entity, that hires contractors to perform construction work and/or maintenance work on their premises.

 Pre-employment Site Entry. Screening of prospective employees to determine if an applicant is capable of safely performing required tasks and
meeting the prerequisites for employment. 
  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Probable Cause/Reasonable
Suspicion. Circumstances based on the objective evidence about the employee’s conduct in the work place which would cause a reasonable person to believe that the employee is demonstrating signs of impairment due to alcohol or other drugs.
Note: See sections 4.1.4 and 4.3. 
 Construction SafeSite©: Construction Safesite© (www.constructionsafesite.org) is a verification database that gives MICCS the ability to track the availability of
workers who have current drug tests, and who are available to work on MICCS jobsites. All third party administrators (TPAs) use this database. The worker can only be “available” for duty if all TPAs show him as “available”. If
one TPA lists the employee as “not available”, his status in Construction Safesite© will be “not available”, and he will not be “available” until he becomes
compliant with the program that is causing him to be “not available” and his status is changed. 
 Substance Abuse Professional (SAP). An
SAP can be a: 
  

	 	•	 	 licensed physician (Medical Doctor or Doctor of Osteopathy) 

  

	 	•	 	 licensed or certified psychologist 

  

	 	•	 	 licensed or certified social worker 

  

	 	•	 	 licensed or certified employee assistance professional 

  

	 	•	 	 state-licensed or certified marriage and family therapist 

  

	 	•	 	 drug and alcohol counselor certified by the National Association of Alcoholism and Drug Abuse Counselors Certification Commission (NAADAC); or by the International
Certification Reciprocity Consortium/Alcohol and Other Drug Abuse (ICRC); or by the National Board for Certified Counselors, Inc. and Affiliates/Master Addictions Counselor (NBCC). 

  

	 	•	 	 licensed or certified mental health counselor 

  

	 	•	 	 Or any additional licensed or certified professional as approved by the federal government for compliance with the Department of Transportation’s substance
abuse program. 

 An SAP must have knowledge of and clinical experience in the diagnosis and treatment of substance abuse-related
disorders. 
 Test(s). (Note: All types of tests applicable to the MICCS program are defined in Part 4) 
  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 4. Tests: Procedures
and Supporting Information 
  

	4.1	Reasons for Testing 

 Contractors are required to send all drug test
results, regardless of the reason for testing, to MICCS to be entered in the MICCS database. 
 The types of testing, associated information, guidelines, and
time constraints, if applicable, as required by MICCS are shown below in alphabetical order. 
  

	4.1.1	Annual/Pre-employment Test 

  

	 	•	 	 Each onsite employee is to participate in annual testing, or provide documentation of having been tested within the past 12 months. 

  

	 	•	 	 The latest test date will become the employee’s new annual test date for participation in the MICCS program. 

  

	 	•	 	 An employer is prohibited from giving any more than 14 days notice of testing to an employee. 

  

	 	•	 	 Employers are responsible for notifying employees when their annual test is due. 

  

	4.1.2	Follow-up Test 

  

	 	•	 	 Follow-up testing is required after an employee has taken a return to duty test. The number of follow- up tests will be set by the SAP. A minimum of three is
required. 

  

	 	•	 	 The test results must be negative. 

  

	 	•	 	 The employee will be notified by telephone or letter to report for testing the day after receiving notification. 

  

	 	•	 	 If the employee fails to complete follow-up testing, their MICCS ID Card will be marked non- compliant in the MICCS database until the employee reports for the
follow-up test. 

  

	 	•	 	 Even though failure to complete the test may be due to the fact that the employee was laid off or out of the local area (i.e., for vacation), the employee is
responsible to contact the third party administrator as soon as possible upon notification of receipt after the fact. The length of time that was designated by the SAP to complete their follow-up tests will be extended by the length of time they are
non-compliant for not reporting for the test. 

  

	 	•	 	 The employee is responsible for payment. 

  

	4.1.3	Post Accident Test 

  

	 	•	 	 This test is required: 

  

	 	•	 	 When the employee is involved in any accident, incident, or event caused directly or indirectly by the employee. 

  

	 	•	 	 Results in treatment by a health care provider, or 

  

	 	•	 	 Results in damage to property. 

  

	 	•	 	 Including any serious near-miss incident 

  

	 	•	 	 The employee is to proceed directly for testing, or as soon as possible, and before the employee returns to the job site. It is the contractor/subcontractor’s
responsibility to see that testing is done within the time frame described above. 

  

	 	•	 	 The employee shall be tested for both drugs and alcohol. 

  

	4.1.4	Probable Cause/Reasonable Suspicion Test 

  

	 	•	 	 This test is required at the time of observable probable cause circumstances based on objective evidence about the employee’s conduct in the workplace that
would cause a reasonable person to believe that the employee is demonstrating signs of impairment due to alcohol or other drugs. 

  

	 	•	 	 Examples of objective evidence include an employee showing signs of impairment such as, difficulty in maintaining balance, slurred speech, or erratic behavior, etc.

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
  

	 	•	 	 These observations must be documented and a copy provided to the employee. 

  

	 	•	 	 Only supervisors who have had training on determining reasonable suspicion are qualified to require a reasonable suspicion test. 

  

	4.1.5	Random Test 

  

	 	•	 	 MICCS owners are required to have contractor employees working on their premises submit to immediate random drug and alcohol tests. 

  

	 	•	 	 It is the owner’s responsibility to see that their selection is truly random without discrimination or arbitrary selection. 

  

	 	•	 	 MICCS owner random testing is to be an unannounced, unscheduled drug and alcohol test. 

  

	 	•	 	 Upon notification, the employee must report immediately to the testing facility. 

  

	 	•	 	 Owners shall give notification of testing to the employee before the end of a shift to take the possibility of a 2 hour wait into consideration.

  

	4.1.6	Returning to Duty Test 

  

	 	•	 	 After a positive test result, in order for an employee to return to work, the employee is required to take a return to duty test. 

  

	 	•	 	 The test result must be negative. 

  

	 	•	 	 The employee is responsible for payment. 

  

	4.2	Drug Testing Procedures 

  

	4.2.1	Specimen Collection 

  

	 	•	 	 Specimen collection will be conducted in accordance with 49 CFR Part 40 “Procedures for Transportation Workplace Drug and Alcohol Testing Programs”, and
applicable state and federal law. 

  

	 	•	 	 Testing must be performed by a DHHS-approved laboratory. 

  

	 	•	 	 MICCS does not follow the complete regulatory testing requirements of the DOT, only the general guidelines. 

  

	 	•	 	 The MICCS procedures are designed to: 

  

	 	•	 	 ensure the security and integrity of the specimen according to accepted federal DOT chain-of-custody guidelines. 

  

	 	•	 	 make every reasonable effort to maintain the dignity of anyone submitting a specimen for this program. 

  

	 	•	 	 If an employee is unable to provide a specimen at the time of testing, the employee could be required to wait up to two hours without leaving the test facility.
Failure to remain and complete the test is the same as a refusal to test with the same sanctions as a positive test result. Make sure that notification of random testing is given in ample time before the end of a shift. 

 

	 	•	 	 Types of specimens: 

  

	 	•	 	 The employee will provide a urine specimen for the drug test. 

  

	 	•	 	 In the event that an employee is physically unable to produce a proper urine sample, a test may be done by a different method, such as hair, saliva, etc., and must
be approved by the third party administrator or the MICCS substance abuse committee. The employee must present written documentation (see Appendix C) from a medical doctor that supports his inability to provide a urine specimen to the MRO. The
employee or company must contact the third party administrator for instructions on how to test using an alternate method. 

  

	 	•	 	 A photo ID must be presented at the time of collection to verify the employee’s identity. 

  

	 	•	 	 The employee will be asked to empty all pockets and display the contents to the collector. 

  

	 	•	 	 The employee will have up to two hours to provide a specimen. If the employee leaves before the two hours having not provided a specimen, this test will be
processed the same as a refusal to test. 

  

	 	•	 	 The employee will be afforded privacy to provide the specimen unless 

  

	 	•	 	 The collector observes evidence of an employee’s attempt to tamper with a specimen, or 

  

	 	•	 	 The temperature range of the original specimen was out of normal range, or 

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
  

	 	•	 	 It appears that the specimen was tampered with, or 

  

	 	•	 	 The specimen was determined invalid by the laboratory 

  

	 	•	 	 Upon completion of testing the employee will be given a copy of the Custody and Control Form (CCF). 

  

	4.2.2	Laboratory Testing Procedures 

 All substance analysis will be done
in SAMHSA laboratories certified by DHHS. Laboratory procedures will include: 
  

	 	•	 	 Initial screen on each specimen. In the event that the initial test is positive a confirmation test will automatically be performed using the GCMS method. A test is
considered positive if the detected level of the drug is at or above the cutoff level shown in Appendix A. MICCS recommends that no adverse action or discipline be taken against any worker or applicant for employment on the basis of any positive
test that has not been confirmed. 

  

	 	•	 	 Validity testing is required for each specimen. Each specimen is measured for creatinine level, specific gravity, and pH to determine if any of the following
occurred: 

  

	 	•	 	 Adulterants or foreign substance were added to the urine, 

  

	 	•	 	 The specimen was substituted, or 

  

	 	•	 	 The urine was diluted. 

  

	 	•	 	 The laboratory will report all results to the MRO. The MRO will make a final determination of the verified results. The results will be reported to the designated
employee representative. 

  

	4.2.3	MRO Procedures 

 All drug testing shall come under the control and
supervision of a physician with confidentiality protected in accordance with state law and the “AMA Code of Ethical Conduct for Physicians Providing Occupational Medical Services” or the Medical Review Officer Manual developed by the
National Institute on Drug Abuse (NIDA). All testing results shall be verified by an MRO. 
 The MRO provides a medical review on all test results issued by
the laboratory as follows: 
  

	 	•	 	 If the laboratory result is negative, the review is completed and a negative result is mailed. 

  

	 	•	 	 If the laboratory result is positive, adulterated, substituted, or invalid, the MRO will: 

  

	 	•	 	 Make one attempt to contact the donor by telephone to inform him of the results and complete an interview to determine whether a legitimate medical explanation
exists for the result reported by the laboratory. 

  

	 	•	 	 If the MRO left a message, but did not talk to the employee by 10:00 AM of the following workday, the MRO will call the employer to report the results. In any case,
the employee always has the opportunity to discuss the test results with the MRO. 

  

	 	•	 	 If the laboratory reports an invalid result to the MRO, the MRO will contact the employee and ask if the employee may have taken any medication that may interfere
with some immunoassay tests. 

  

	 	•	 	 If the employee provides an acceptable explanation, the test will be canceled and no further testing will be required unless a negative result is required to obtain
a valid MICCS ID Card. 

  

	 	•	 	 If the employee is unable to provide an acceptable explanation and denies having adulterated the specimen, the test will be canceled, and a second collection must
take place immediately under direct observation 

  

	4.2.4	Specimen Retest Protocol 

  

	 	•	 	 When the MRO has informed the employee of a verified “positive drug test” or “refusal to test” because of adulteration or substitution, the
employee/worker has 72 hours from the time of notification to request a retest of the specimen at a different SAMHSA laboratory. 

  

	 	•	 	 The employee may make the request verbally or in writing and make arrangements for payment with the MRO service, as the cost of the test is the responsibility of
the employee. 

  

	 	•	 	 If the result of the retest is different from the original result, the test will be cancelled, and a recollection will be needed. 

  

					
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 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
  

	4.3	Alcohol Testing Procedures 

 Alcohol testing is required for
probable cause, post accident/incident, and for immediate random testing situations. 
 Tests for alcohol shall be performed using the breath or blood to
determine a Blood Alcohol Content (BAC). If possible, a breathalyzer type instrument conforming to DOT standards should be used. If not available, then a blood sample may be used. If blood testing is necessary, the contractor/owner is responsible to
provide a documented reason as to the reasons why a breath test could not be performed (see Appendix D). 
 Failure to provide a sufficient breath sample to
complete a breath test or refusing to provide a blood sample will be considered a “refusal to test” and have the same consequences as a positive test. 
 All alcohol test results with a confirmed BAC test level of .04 or higher will be considered positive and will require the employee to be removed from the owner’s property immediately. This result will also invalidate the
employee’s MICCS ID Card. 
 In order for the employee to become eligible for a MICCS ID Card again, the employee will have to complete the required
program of rehabilitation outlined in this document. 
 All alcohol test results with a confirmed BAC test level of .020 through .039 will require the
employee to be removed from the owner’s property for 24 hours or until the employee’s next scheduled work time, whichever is longer. 
 Any initial
test that indicates a BAC level of .02 or greater must be confirmed by an Evidential Breath Testing Device (EBT) operated by the Breath Alcohol Technician (BAT). The confirmation test will be performed no sooner than 15 minutes and no later than 30
minutes following the completion of the initial test in accordance with current DOT guidelines. 
  

	4.4	Test results 

  

	4.4.1	Adulterated Test 

  

	 	•	 	 If a test was tampered with by the substitution or addition of other ingredients, the test result will be processed the same as a positive test result.

  

	 	•	 	 When a recollection is required, i.e., due to adulteration or temperature, etc., the recollection will be observed according to DOT procedures.

  

	4.4.2	Diluted Test 

  

	 	•	 	 A test result that produces a diluted specimen requires a retest. Refer to Appendix B for detailed instructions on how to process a diluted specimen. If the retest
also produces a diluted specimen, it will carry the same consequences as a positive test result unless a valid medical reason exists. 

  

	4.4.3	Negative Test Result 

  

	 	•	 	 A drug result is considered negative if: 

  

	 	•	 	 the laboratory finds no drug metabolite levels over the confirmed cutoff values, or 

  

	 	•	 	 the screen test and confirmation test indicated the presence of a legal or illegal substance(s) in excess of the limits but the donor (employee) had a valid medical
reason for the substance being detected in the specimen. 

  

	 	•	 	 An alcohol result is considered negative if the BAC is below 0.02. 

  

	 	•	 	 The employee’s MICCS ID Card will be updated in the MICCS database. 

  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-10 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 4.4.4 Positive Alcohol
Test 
 A positive alcohol test occurs if the breathalyzer test, or its equivalent test, indicates the presence of alcohol that meets or exceeds the
cut-off limits of the DOT and the Commercial Drivers License (CDL) as shown in this document. 
 4.4.5 Positive Drug Test Result 
  

	 	•	 	 A result is considered positive if the presence of the drug meets or exceeds both the screening and confirmation levels listed in Appendix A.

  

	 	•	 	 The test must be verified by the MRO. 

  

	 	•	 	 The MRO must determine that the test results are not from the use of prescription or over the counter medications, food, or any reason other than the illegal use of
unlawful substances or controlled substances. 

 4.4.6 Refusal to Test 
 Refusal to submit to a test will carry the same consequences as a positive test. 
 A refusal to test occurs if an employee:

  

	 	•	 	 Adulterated, substituted, or refused to provide a urine specimen 

  

	 	•	 	 Failed to appear for testing within a reasonable period of time 

  

	 	•	 	 Failed to remain at the testing site until the testing process was completed 

  

	 	•	 	 Failed to provide a sufficient amount of urine within 2 hours without a medical reason and/or failed to undergo an MRO directed medical evaluation for such a reason

  

	 	•	 	 Failed to cooperate with any part of the testing process, which includes the use of abusive/threatening language or behavior 

  

	 	•	 	 Disrupted the testing process 

 4.5 Sanctions and
Consequences for Failing a Test 
 MICCS requires employees, who test positive (including a refusal to test), to surrender their MICCS ID Card. The MICCS
employer is required to refer employees with positive test results to a SAP for evaluation and treatment. 
 The MICCS website has a listing of SAP’s
located in the Indianapolis area who support and are knowledgable about the MICCS substance abuse program requirements. 
 The employee must start a program
of rehabilitation prior to returning to a MICCS owner’s site, and must continue and complete the rehabilitation in order to be eligible to work on a MICCS site. The rehabilitation must include the following steps: 
  

	 	1.	The employee must arrange for an evaluation with a Substance Abuse Professional (SAP). 

  

	 	2.	The SAP evaluation must specify that the employee: 

  

	 	•	 	 Must attend education classes and/or treatment. 

  

	 	•	 	 Must perform the actions recommended by the SAP or assigned rehabilitation specialists. 

  

	 	•	 	 Is subject to random follow-up testing not less than 3 times within the next 12 month from the employee’s return to work test. In cases where the employee was
unable to complete the follow-up test due to being laid off or out of town, etc., the length of time that was designated by the SAP to complete their follow-up test will be extended by the length of time the employee was not available for testing.

  

	 	•	 	 Will not be allowed to take another MICCS drug test for at least 14 days from the date of the first positive test. 

  

	 	3.	The employee is required to submit a letter from the SAP to MICCS concerning their fitness for return to work including that the employee is eligible for a return to duty test.

  

	 	4.	The employee must take a return to duty test with negative results. These results must be submitted to MICCS for MICCS database entry. 

  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-11 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
  

	 	5.	The employee must actively complete any ongoing rehabilitation and follow-up testing required by the SAP to keep the MICCS ID Card valid. 

  

	 	6.	Arrangements for all costs are the responsibility of the employee. 

  

	 	7.	If an employee tests positive 3 times within a 12 month period, the employee will not be eligible to retest or obtain an MICCS ID Card for a period of one year and will not be
permitted to work on MICCS owner property during that period. 

  

	 	8.	Failure to comply with any of the above sanctions shall result in the employee surrendering their MICCS ID Card. The status of the employee’s card will be changed to “not
available” in the MICCS database. 

  

	 	9.	The result of a person using a counterfeit drug card will be the same as a positive drug test. 

  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-12 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 5. Employee
Responsibilities 
 Employee responsibilities are as follows: 
  

	 	•	 	 Report to work fit for duty. 

  

	 	•	 	 Be in the appropriate mental and physical condition necessary to work in a safe and competent manner, free of the influence of drugs and alcohol.

  

	 	•	 	 Report to the employer any medications that may impair job performance or safety. 

  

	 	•	 	 Consent to and participate in owner/employer required tests 

  

	 	•	 	 Consent to the release of the drug test results to the employer, for the MICCS database, or for specific purposes required by law. 

  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-13 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 6. Auditing
Information 
 The owner reserves the right, under conditions of strict confidentiality, to inspect the employer’s substance abuse testing program
records within 24 hours of the owner’s notification of intent to audit. 
 Owners are required to audit the validity of on-site employees at the time of
entry to the job site and may audit them at any time thereafter. (See www.constructionsafesite.org). 
 MICCS employers are required to check the validity of all MICCS ID Cards through Construction Safesite© (www.constructionsafesite.org) upon hire and/or job site entry.
Construction Safesite© will state that an employee’s MICCS ID card is either “available”, “not available”, or “no record with that ID”. Any problems
and/or questions about a card status will be addressed by the third party administrator who holds the employee’s testing record. Third party administrators have the ability to make appropriate updates to the employee’s testing record so
that his/her status is changed at Construction Safesite©. 
  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-14 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 Part 7.
Contractor/employer responsibilities 
 Contractor’s employees working on or visiting a participating owner’s job site, including workers, new
hires, replacements, and supervisory personnel, are subject to annual testing, testing for probable cause/reasonable suspicion, post-accident/incident testing, random testing and return to duty/follow up testing as a condition of contract between
the contractor and the owner. 
 The contractor shall comply with owner requirements, when the owner requirements are more stringent than the
contractor’s. 
 The contractor should provide training to employees, including new hires, to help them understand the contractor’s substance abuse
testing policy, the effects of substance abuse on personal health and the work environment. Recognizing the behaviors common to substance abuse and the procedures for conducting substance abuse testing should also be included as a part of this
training for supervisor personnel who could be required to initiate a reasonable suspicion/probable cause test. 
 Contractors are required to maintain a
record keeping system that would allow an owner or another contractor with whom the contractor has entered into agreement, to effectively conduct a compliance audit. 
 To protect everyone’s legal interest contractors should obtain a written consent from each employee that allows the release of otherwise confidential testing information to an owner. 
  

					
	 Revision Date: 
	  	Revision 2.0	  	Page-15 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX A: Testing Panel

 Drugs of abuse are tested in a routine SAMHSA 5-panel screen. 
 The MICCS Substance Abuse Program uses the drug screen components and cut-off levels listed below. In addition to these levels and substances, the creatinine level and specific gravity of the specimen will be measured. 
 If the creatinine level is less than 20 ml/dl and the specific gravity is less than 1.003, the sample will be considered dilute and another collection will be required.
The second sample will be collected the morning after notification of a diluted specimen. 
 Adulterated specimens will be processed the same as a positive
test. 
 The minimum requirement for a positive test result for alcohol will be a BAC of 0.04% w/vol., a level consistent with the DOT and CDL guidelines.

 New drugs, preliminary cut off and confirmation levels may be modified periodically in order to parallel the DOT and CDL guidelines. 
 The MICCS Substance Abuse Program does not follow the complete regulatory testing requirements of the DOT, only the general guidelines. 
  

							
	 Type
	  	Preliminary Cut-off Levels
(ng/ml)	 	 	Confirmation
Levels	 
	 Amphetamines
	  	1000	 	 	500	 
	 Cocaine
	  	300	 	 	150	 
	 PCP – Phencylidine
	  	25	 	 	25	 
	 Opiates
	  	2000	 	 	2000	 
	 THC – Cannabinoids
	  	50	 	 	15	 
	 Ethanol (Alcohol)
	  	.04	% w/vol. (enzyme assay)	 	.04	% w/vol. (GC/FD)

  

					
	 Revision Date:
	  	Revision 2.0	  	Page-16 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX B: Diluted
Specimen Processing 
 Instructions for Diluted Specimen Retest 
 A diluted specimen result requires a retest. If this is a second diluted result without a medical reason, it will be processed the same as a positive test result. 
 The MICCS database manager will report the dilute result to the employer’s representative. The employer must provide specific instructions on fluid intake (see
below) to the employee prior to retesting to prevent another diluted specimen. 
 The collection for another test must be done the morning after the employee
has been notified. The employee may provide reasons for not being able to test which can be approved by the database manager. The database manager may reject the explanation. If the employee disputes the decision of the database manager, the
employee can contact the MICCS office to submit a plea to the Substance Abuse Committee to consider further. 
 Employee Instruction Prior to Retesting

 Here are instructions for the employee to be followed prior to retesting: 
  

	 	•	 	 Consume no fluids after 9:00 PM the night before the test. 

  

	 	•	 	 Limit fluid intake to a minimum the day of the test. 

  

	 	•	 	 The supervisor will inform the employee of the test time and location. 

  

	 	•	 	 It is the employee’s responsibility to monitor intake of fluids to prevent another dilute specimen. 

 If the employee has a medical condition that will cause a dilute specimen, the employee’s physician must provide medical information in writing to the MRO for
evaluation. After reviewing the submitted information, the MRO will issue a final report to the employer. 
  

					
	 Revision Date: 
	  	Revision 4.0	  	Page I-17 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX C: Evaluation
Form for Inability to Provide an Adequate Urine Specimen 
 Purpose of Form: This physician referral form is to be used for an individual
who was unable to provide a sufficient urine specimen within the time allowance stated in the MICCS Substance Abuse Policy. The MICCS policy states that a “refusal to test” will be issued if an individual is required to take a MICCS drug
test and is unable to provide a sufficient specimen within the required time, unless the individual can provide a valid medical explanation. This form provides information to the employee, employer and the evaluation physician on the steps to be
followed for the evaluation. This form should be filled out and given to the physician who will be doing the medical evaluation. 
 The MICCS substance abuse
program will follow the same general protocol used by DOT for handling these types of evaluation. The specific DOT protocol taken from 49 CFR Part 40.193 is summarized below and will be used as a guide for MICCS evaluations. 
 Background Information from 49 CFR Part 40.193: 
 When the
collector informs the designated employee representative that an employee has not provided a sufficient amount of urine, they must, after consulting with the MRO (Medical Review Officer), direct the employee to obtain, within five working days, an
evaluation from a licensed physician, acceptable to the MRO, who has expertise in the medical issues raised by the employee’s failure to provide a sufficient specimen. 
 The referral physician must recommend that the MRO make one of the following determinations: 
  

	 	(1)	A medical condition has, or with a high degree of probability, could have, precluded the employee from providing an adequate amount of urine. 

  

	 	(2)	There is not an adequate basis for determining that a medical condition has, or with a high degree of probability, could have, precluded the employee from providing an adequate
amount of urine. (For the purposes of this paragraph, a medical condition includes an ascertainable physiological condition (e.g., a urinary system dysfunction) or a documented pre-existing psychological disorder, but does not include unsupported
assertions of “situational anxiety” or dehydration.) 

 After the referral physician completes the evaluation, they must provide a
written statement of their recommendations and the basis for them to the MRO. Do not include in this statement detailed information on the employee’s medical condition beyond what is necessary to explain your conclusion. 
 Employee/Employer information: 
  

	 	1.	Employee must have an evaluation done by a physician as soon as possible. The employee must present this form to the evaluating physician The evaluation should be done within five
working days or else the MRO will be required to issue a refusal to test. Time extensions beyond the five working days must be approved by the MRO. 

  

	 	2.	Employee should sign this consent allowing the physician to release their findings to you and the MRO. 

  

	 	3.	Failure to provide an acceptable statement from a physician will result in a refusal to test, which carries the same consequences as a positive test result.

 Consent to Release Information (Employee needs to sign) 
 I,
                                         
                                         
      , SSN
                                         
                   , authorize the evaluating physician to release the findings of my evaluation to: 
  

							
	 Employer’s MRO:
	 	 
		 	Physician’s Name	  	Phone	  	Fax
		
	 Employer
	 	 
		 	Employer Name	  	Phone	  	Fax
	                                        
                                         
                                  
	  	                                       
                            	  	
	 Signature of employee
	  	Date of signature	  	

  

					
	 Revision Date: 
	  	Revision 4.0	  	Page I-18 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX C - Continued

 Physician Information and Instructions: 
 You have been requested to evaluate the individual indicated below because he/she was unable to provide an adequate amount of urine to complete a MICCS required drug test. Make sure you have read and understand the
background information of 49 CFR Part 40.193 on the previous page. Your findings will assist the MRO in determining this individual’s final test status. Please make sure item #1. or #2. below has been completed and attach any additional
information you feel is pertinent to this evaluation. If you have any questions regarding this evaluation, please call the MICCS database administrator, Midwest Toxicology at 317/262-2200 or 800/358-8450 (Ext. 203-Sharon Allen or Ext.
205-Tiffany Ellefson). 
  

			
	 Name & SSN (ID #) of employee:                             
                                         
                                         
                                         
                                       

	
	 Employer Name/Address:                                   
                                         
                                         
                                         
                                         
        

	
	 Date employee was unable to complete required drug test:                       
                                         
                                         
                                        

	
	 Name (printed) of physician performing evaluation:                           
                                         
                                         
                                         
        

			
		
	 Physician Phone:                                    
                                         
                
	 	Fax:                                       
                                         
                                   
		 	

 I have determined, in my reasonable medical judgment, that: 
  

	    	1. the employee does have a medical condition* that has, or with a high degree of probability, could have, precluded the employee from providing an adequate amount of urine.

  

	    	2. there is not an adequate basis for determining that a medical condition* that has, or with a high degree of probability, could have, precluded the employee from providing
an adequate amount of urine. 

  

	*	For purposes of this paragraph, a medical condition includes an ascertainable physiological condition (e.g., a urinary system dysfunction) or a documented pre-existing psychological
disorder, but does not include unsupported assertions of “situational anxiety” or dehydration. 

  

			
	 Explanation of finding: 
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

									
					
	 	  		  	 	  		  	 
	Printed Name of Physician	  		  	Signature of Physician	  		  	Date of Conclusion

 Please fax this completed form to the MRO and Employer listed in the consent area of this form. 
  

					
	 Revision Date: 
	  	Revision 4.0	  	Page I-19 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX D: Documentation
When a Breath Test Cannot Be Conducted 
 MICCS requires a breath alcohol test for qualifying post-accident situations and reasonable suspicion. MICCS has
patterned their alcohol testing requirements after the regulatory testing requirements of DOT (Department of Transportation). DOT does not allow the use of blood for alcohol tests except in a few rare circumstances. The FMCSA (Federal Motor Carrier
Safety Administration) division of DOT does allow employers to accept the results of breath or blood tests conducted by Federal, State, or local officials having independent authority in post-accident situations as long as the results of the tests
can be obtained by the employer. 
 The MICCS program’s policy will allow alcohol testing done by breath or blood. However, breath testing is the
preferred method. Blood testing is only authorized when a breath test is impossible to obtain. The employer is responsible to provide a documented reason to the third party administrator as to why this alternative method (blood testing) was used.
The form below can be used for such documentation and should be forwarded to the third party administrator. 
  

					
	 Name of Employee
	  		  	Date
	 	  		  	 

 Complete explanation of why breath testing was not done: 
  

	 	 ̈	Employee had medical treatment that prevented a breath alcohol test from being done within the allowed time frame. 

  

	 	 ̈	There is no testing facility open that was capable of performing a breath alcohol test within the allowed time frame. Provide time and location information 

 

	 	

  

	 	

  

	 	 ̈	There was no testing facility capable of performing a breath alcohol test within the geographical area of where the testing needed to occur. Provide time and location information

  

	 	

  

	 	

  

	 	 ̈	Other, please describe: 

  

	 	

  

	 	

 Company name and signature of Employer authorizing agent: 
  
  
 Date                                  
  

					
	 Revision Date: 
	  	Revision 4.0	  	Page I-20 of 21

 METRO INDIANAPOLIS COALITION FOR CONSTRUCTION SAFETY (MICCS) 
 Substance Abuse Program 
 APPENDIX E: Guidelines for
Post-accident Testing 
 MICCS policy requirement for Post-Accident Testing: 
 A substance abuse drug and alcohol test of an onsite contractor employee is required when they are involved in any accident/incident or event, caused by
them either directly or indirectly, that results in treatment by a health care provider, or that results in damage to property, including any serious near-miss incident. The employee should proceed directly for testing or as soon as possible.

 Recommended Steps for Post-Accident Testing: 
  

	1.	Contractors are responsible to insure that a drug and alcohol test is completed for any accident or incident as defined above. 

  

	2.	Needed medical treatment will take precedence over completing a drug and alcohol test. However, a drug and alcohol test should be done as soon as possible. The alcohol test should
be administered within 2-hours of the accident/incident. If there is a delay of more than 2-hours, an explanation of why the testing was delayed or couldn’t be completed should be documented. 

  

	3.	The contractor must insure that the facility who will be doing the post-accident test meets the following requirements. 

  

	 	a.	Drug test requirement: 

  

	 	i.	Use of a standard custody and control form 

  

	 	ii.	Testing of specimen by a SAMHSA certified laboratory using the drug panel cut-off level set by MICCS 

  

	 	iii.	Test result reviewed by a certified MRO (Medical Review Officer) 

  

	 	b.	Alcohol Test requirements: 

  

	 	i.	A breath test should always be administered unless breath testing is not an option. 

  

	 	ii	A breath test should be done as soon as possible (within 2 hours). If it can’t be completed within 8 hours, testing should cease and documentation explaining the inability to
complete testing within 8 hours should be forwarded to the third party administrator. 

  

	 	iii	The breath test should be administered by a certified BAT (Breath Alcohol Technician) using a breath testing device that meets the same requirement as DOT. 

 

	 	iv	If breath testing is not available, a blood draw may be used. 

  

	4.	The results of all post-accident tests are required to be reported to the third party database administrator as soon as possible following any post-accident testing so the results
may be entered into the database. 

  

	5.	If any post-accident test result is positive the contractor must immediately remove the employee from the MICCS owner site and follow their company policy’s discipline for
testing positive. Any positive test will render the employee’s MICCS card invalid. 

  

					
	 Revision Date: 
	  	Revision 4.0	  	Page I-21 of 21Gilead Sciences, Inc. 2004 Equity Incentive Plan

 Exhibit 10.59 
 GILEAD SCIENCES, INC. 
 2004 EQUITY
INCENTIVE PLAN(1) 
 1. Purpose
of the Plan. The purpose of this Plan is to provide incentives to attract, retain and motivate eligible persons whose present and potential contributions are important to the success of the Company by offering them an opportunity to participate
in the Company’s future performance. This Plan was originally approved by stockholders at the 2004 Annual Stockholders Meeting and serves as the successor to the Gilead Sciences, Inc. 1991 Stock Option Plan and the Gilead Sciences, Inc. 1995
Non-Employee Directors’ Stock Option Plan. No further option grants will be made under those plans, and the remaining shares available for issuance under those plans have been transferred to this Plan ad are available for issuance under this
Plan. 
 The October 2007 restatement expanded the list of performance criteria to which the vesting of one or more Awards may
be tied, including Awards designed to provide Performance-Based Compensation, and effected a series of technical revisions to the Plan in order to facilitate the administration of the Plan and provide additional flexibility in structuring Awards.

 The January 30, 2008 restatement adopted by the Board effected the following changes to the Plan, subject to
stockholder approval at the 2008 Annual Meeting: (i) increased the authorized share reserve under the Plan by an additional 10,000,000 shares of Common Stock and (ii) increased the limit on the maximum number of shares of Common Stock for
which “full value” Awards may be made over the term of the Plan by an additional 5,000,000 shares. The Company’s stockholders approved such increases at the 2008 Annual Meeting held on May 8, 2008. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Administrator” means the Board or any of the Committees appointed to administer the Plan. 
 (b) “Applicable Acceleration Period” means: (i) 24 months, in the case of the Company’s Chief Executive
Officer, (ii) 18 months, in the case of an Executive Vice President or Senior Vice President of the Company, and (iii) 12 months, in the case of all other Grantees. 
 (c) “Applicable Laws” means the legal requirements relating to the Plan and the Awards under applicable provisions of
federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange, and the rules of any non-U.S. jurisdiction applicable to Awards granted to residents therein. 
 (d) “Award” means the grant of an Option, SAR, Dividend Equivalent Right, Restricted Stock, Restricted Stock Unit,
Performance Unit, Performance Share, Phantom Share, or other right or benefit under the Plan. 
 (e) “Award
Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any amendments thereto. 
 (f) “Board” means the Board of Directors of the Company. 
  

	 (1)
	 Includes amendments through May 8, 2008, including the
amendments approved by the stockholders at the annual stockholders meeting held on such date. All share numbers have been adjusted to reflect the two-for-one stock split of the Common Stock effective September 3, 2004 and the two-for-one stock
split of the Common Stock effective June 22, 2007. 

 (g) “Cause” means, with respect to the termination by the Company or a
Related Entity of the Grantee’s Continuous Service, that such termination is for one or more of the reasons set forth in the definition of “Cause” as such term is expressly defined in a then-effective written agreement between the
Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) performance of any act, or failure to
perform any act, in bad faith and to the detriment of the Company or a Related Entity; (ii) dishonesty, intentional misconduct, material violation of any applicable Company or Related Entity policy, or material breach of any agreement with the
Company or a Related Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 
 (h) “Change in Control” means, for purposes of all Awards at the time outstanding under the Plan, a change in ownership or control of the Company effected through the consummation of any of the
following transactions: 
 (i) a merger, consolidation or other reorganization approved by the Company’s stockholders,
unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned the Company’s outstanding voting securities immediately prior to such transaction, 
 (ii) a sale, transfer or other disposition of all or substantially all of the Company’s assets, 
 (iii) the closing of any transaction or series of related transactions pursuant to which any person or any group of persons comprising a
“group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Company or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is under common
control with, the Company) becomes directly or indirectly (whether as a result of a single acquisition or by reason of one or more acquisitions within the twelve (12)-month period ending with the most recent acquisition) the beneficial owner (within
the meaning of Rule 13d-3 of the 1934 Act) of securities possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total combined voting power of the Company’s securities (as measured in
terms of the power to vote with respect to the election of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction involves a direct issuance from the Company or
the acquisition of outstanding securities held by one or more of the Company’s existing stockholders, or 
 (iv) a change
in the composition of the Board over a period of twelve (12) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who
either (A) have been Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause
(A) who were still in office at the time the Board approved such election or nomination. 
 In no event, however, shall a
Change in Control be deemed to occur upon a merger, consolidation or other reorganization effected primarily to change the State of the Company’s incorporation or to create a holding company structure pursuant to which the Company becomes a
wholly-owned subsidiary of an entity whose outstanding voting securities immediately after its formation are beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the
Company’s outstanding voting securities immediately prior to the formation of such entity. 
 (i) “Code”
means the Internal Revenue Code of 1986, as amended. 
 (j) “Committee” means any committee composed of
members of the Board appointed by the Board to administer the Plan. 

 (k) “Common Stock” means the common stock of the Company. 
 (l) “Company” means Gilead Sciences, Inc., a Delaware corporation. 
 (m) “Consultant” means any person, including an advisor, who is compensated by the Company or any Related Entity for
services performed as a non-employee consultant; provided, however, that the term “Consultant” shall not include non-employee Directors serving in their capacity as Board members. The term “Consultant” shall include
a member of the board of directors of a Related Entity. 
 (n) “Continuous Service” means the performance of
services for the Company or a Related Entity (whether now existing or subsequently established) by a person in the capacity of an Employee, a Director or a Consultant, except to the extent otherwise specifically provided in the documents evidencing
the Award. For purposes of the Plan, a Grantee shall be deemed to cease Continuous Service immediately upon the occurrence of either of the following events: (i) the Grantee no longer performs services in any of the foregoing capacities for the
Company or any Related Entity or (ii) the entity for which the Grantee is performing such services ceases to remain a Related Entity of the Company, even though the Grantee may subsequently continue to perform services for that entity.
Continuous Service shall not be deemed to cease during a period of military leave, sick leave or other personal leave approved by the Company; provided, however, that should such leave of absence exceed three (3) months, then for
purposes of determining the period within which an Incentive Option may be exercised as such under the federal tax laws, the Grantee shall be deemed to have terminated Employee status on the first day immediately following the expiration of such
three (3)-month period, unless such Grantee is provided with the right to return to Continuous Service following such leave either by statute or by written contract. The Grantee shall not receive any Continuous Service credit, for purposes of
vesting in any outstanding Award or Awards made to the Grantee, for any period such Grantee is on a leave of absence, except to the extent otherwise required by law or pursuant to the following procedure: 
  

	 	•	 	 A Grantee shall receive Continuous Service credit for such vesting purposes for (i) the first three months of an approved personal leave of absence and
(ii) the first seven months of any bona fide leave of absence (other than an approved personal leave), but in no event beyond the expiration date of such leave of absence; provided, however, that in the event the Grantee’s
Award is subject to Section 409A of the Code and payable upon his or her separation from service, then the maximum period for which such Continuous Service credit shall be given with respect to that Award shall be determined in accordance with
Treasury Regulations Section 1.409A-1(h) and accordingly shall not extend beyond the date the Grantee is deemed to have a separation from service for purposes of Section 409A. 

 In jurisdictions requiring notice in advance of an effective termination of a Grantee’s service as an Employee, Director or Consultant, Continuous Active Service
shall be deemed terminated upon the actual cessation of such service to the Company or a Related Entity notwithstanding any required notice period that must be fulfilled before such individual’s termination as an Employee, Director or
Consultant can be effective under Applicable Laws. 
 A Grantee on an approved leave of absence shall be deemed to terminate Continuous Service for purposes
of his or her outstanding Awards upon the earlier of (i) the expiration date of that leave of absence, unless such Grantee returns to active Continuous Service on or before that date, or (ii) the date the Grantee’s Continuous Service
actually terminates by reason of his or her voluntary or involuntary termination or by reason of his or her death or disability; provided, however, that in the event the Grantee’s Award is subject to Section 409A of the Code
and payable upon his or her separation from service, then his or her Continuous Service shall, with respect to that Award, be deemed to terminate when such Grantee is deemed to have a separation from service under Treasury Regulations
Section 1.409A-1(h). 
 (n) “Covered Employee” means an Employee who is a “covered employee”
under Section 162(m)(3) of the Code. 
 (o) “Director” means a member of the Board. 

 (p) “Dividend Equivalent Right” means a right entitling the Grantee to
compensation measured by dividends paid with respect to the Common Stock underlying his or her Award (other than an Option or SAR Award). 
 (q) “Domestic Partner” means a person who meets and continues to meet all of the criteria detailed in the Gilead Sciences Affidavit of Domestic Partnership when the Domestic Partnership has been
internally registered with the Company by filing with the Company an original, properly completed, notarized Gilead Sciences Affidavit of Domestic Partnership. 
 (r) “Employee” means any person, including an Officer or Director, who is in the employ of the Company or any Related
Entity, subject to the control and direction of the Company or any Related Entity as to both the work to be performed and the manner and method of performance. Neither service as a Director nor payment of a director’s fee by the Company or a
Related Entity shall be sufficient to constitute “employment” by the Company. 
 (s) “Exchange Act”
means the Securities Exchange Act of 1934, as amended. 
 (t) “Fair Market Value” means, as of any date, the
value of Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange, including
without limitation the NASDAQ Global or Global Select Market, the American Stock Exchange or the New York Stock Exchange, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted
on such exchange (or the exchange with the greatest volume of trading in the Common Stock) on the last market trading day prior to the date of determination (or, if no closing sales price or closing bid was reported on that date, as applicable, on
the last trading date such closing sales price or closing bid was reported), as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
 (ii) If the Common Stock is regularly quoted on an automated quotation system (including the OTC Bulletin Board) or by a recognized
securities dealer, but selling prices are not reported, the Fair Market Value per share of Common Stock shall be the mean between the high bid and high asked prices for the Common Stock on the last market trading day prior to the date of
determination (or, if no such prices were reported on that date, on the last date such prices were reported), as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
 (iii) In the absence of an established market for the Common Stock of the type described in (i) and (ii), above, the Fair Market
Value thereof shall, for purposes of any Award other than an Incentive Stock Option, be determined by the Board through the reasonable application of a reasonable valuation method that takes into account the applicable valuation factors set forth in
the Treasury Regulations issued under Section 409A of the Code and shall, for purposes of an Incentive Stock Option, be determined by the Board in good faith in accordance with the standards of Section 422 of the Code and the applicable
Treasury Regulations thereunder. 
 (u) “Grantee” means an Employee, Director or Consultant who receives an
Award under the Plan. 
 (v) “Immediate Family” means any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, Domestic Partner, a trust in which such persons (or the
Grantee) have more than 50% of the beneficial interest, a foundation in which such persons (or the Grantee) control the management of assets, and any other entity in which such persons (or the Grantee) own more than fifty percent (50%) of the
voting interests. 

 (w) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 
 (x)
“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 
 (y)
“Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (z) “Option” means an option to purchase Shares pursuant to an Award Agreement granted under the Plan. 
 (aa) “Parent” means a “parent corporation”, whether now or hereafter existing, as defined in
Section 424(e) of the Code. 
 (bb) “Performance-Based Compensation” means compensation qualifying as
“performance-based compensation” under Section 162(m) of the Code. 
 (cc) “Performance Share
Units” means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance criteria established by the Administrator and settled in actual Shares, except to the extent the Administrator may determine
to settle such Award in whole or in part in cash. 
 (dd) “Performance Cash Units” means an Award denominated
in U.S. dollars which may be earned in whole or in part based upon attainment of performance criteria established by the Administrator and settled for cash, except to the Administrator may determine to settle such Award in whole or in part in
Shares. 
 (ee) “Phantom Share” means an Award denominated in Shares in which the Grantee has the right to
receive an amount equal to the value of a specified number of Shares at a designated time or over a designated period and which will be payable in cash or Shares as established by the Administrator. 
 (ff) “Plan” means this Gilead Sciences, Inc. 2004 Equity Incentive Plan, as amended from time to time. 
 (gg) “Related Entity” means (i) any Parent or Subsidiary of the Company and (ii) any corporation in an unbroken
chain of corporations beginning with the Company and ending with the corporation in the chain for which the Grantee provides services as an Employee, Director or Consultant, provided each corporation in such chain owns securities representing at
least twenty percent (20%) of the total outstanding voting power of the outstanding securities of another corporation or entity in such chain and there is a legitimate non-tax business purpose for making an Award to such Grantee. However, for
any Award not subject to Section 409A of the Code, a Related Entity shall also include any business, corporation, partnership, limited liability company or other entity in which the Company or any Parent or Subsidiary holds a substantial
ownership interest, directly or indirectly. 
 (hh) “Restricted Stock” means Shares issued under the Plan to
the Grantee for such consideration (including any cash consideration) and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the
Administrator. 

 (ii) “Restricted Stock Unit” means an Award in the form of a contractual
right to receive Shares in one or more installments over a defined period of Continuous Service or upon the attainment of one or more performance goals established by the Administrator or in one or more deferred installments following the completion
of such period of Continuous Service or the attainment of such performance goals. 
 (jj) “Rule 16b-3” means
Rule 16b-3 promulgated under the Exchange Act or any successor thereto, as in effect when discretion is being exercised with respect to the Plan. 
 (kk) “SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of the Common Stock
underlying such Award. 
 (ll) “Share” means a share of the Common Stock. 
 (mm) “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in
Section 424(f) of the Code. 
 (nn) “Withholding Taxes” mean the applicable federal and state income and
employment withholding taxes to which the holder of an Award under the Plan may become subject in connection with the issuance, exercise, vesting or settlement of that Award. 
 3. Stock Subject to the Plan. 
 (a) Subject to the provisions of Section 10 below, the maximum number of
Shares which may be issued in the aggregate under the Plan pursuant to all Awards made hereunder (including, without limitation, Restricted Stock, Restricted Stock Units, Performance Shares, Options, SARs, Dividend Equivalent Rights, and Phantom
Shares) shall be limited to 70,400,000(2) Shares, plus 31,076,491 shares that have as of May 8, 2008 been transferred in the aggregate to the
2004 Plan from the previously-authorized but unissued reserve under the Gilead Sciences, Inc. 1991 Stock Option Plan and the Gilead Sciences, Inc. 1995 Non-Employee Directors’ Stock Option Plan, including shares that were available for future
award under such plans on May 25, 2004, the date the stockholders approved the 2004 Plan, and shares subject to awards outstanding under those plans on that date that have subsequently terminated or expired without the issuance of vested shares
thereunder. Notwithstanding the foregoing, no more than 10,000,000 of such Shares may be issued pursuant to all Awards of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units (to the extent settled in Shares) and Phantom
Shares, in total.(3) The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired 
  

	 (2)
	 Maximum number of Shares consists of 3,600,000 Shares authorized coincident with the adoption of the 2004 Equity
Incentive Plan at the 2004 annual stockholders meeting, another 3,600,000 Shares due to the share adjustment for the two-for-one stock split effective September 3, 2004, an additional 10,000,000 Shares authorized and approved at the 2005 annual
stockholders meeting, an additional 10,000,000 Shares authorized and approved at the 2006 annual stockholders meeting, an additional 3,000,000 Shares authorized and approved at the 2007 annual stockholders meeting, another 30,200,000 Shares due to
the share adjustment for the two-for-one stock split effective June 22, 2007 and an additional 10,000,000 Shares authorized and approved at the 2008 annual stockholders meeting. 

  

	 (3)
	 The increase to this limit from 5,000,000 Shares to 10,000,000 Shares was approved by the Board as part of the January
30, 2008 restatement and approved by the stockholders at the 2008 annual stockholders meeting. The 10,000,000 limit will also apply to Performance Units to the extent these Awards are settled in Shares. The Company has never declared nor paid a cash
dividend and does not intend to grant any dividend equivalent rights in the foreseeable future; however, if a dividend equivalent right were to be granted in the future, the Company would consider the number of Shares as to which such dividend
equivalent rights may be granted as subject to the 10,000,000 limit. 

 Common Stock. Performance Units that by their terms may only be settled in cash shall neither reduce the
maximum aggregate number of Shares that may be issued under the Plan nor be counted against the foregoing 10,000,000-Share limit imposed with respect to certain types of Awards. 
 (b) Any Shares covered by an Award (or portion of an Award) which is forfeited, canceled or expires (whether voluntarily or involuntarily)
shall be deemed not to have been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the
Plan and shall not become available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at the lower of their original purchase price or their Fair Market Value at the time of repurchase,
such Shares shall become available for future grant under the Plan. Should the exercise price of an option under the Plan be paid with shares of Common Stock, then the authorized reserve of Common Stock under the Plan shall be reduced by the gross
number of shares for which that option is exercised, and not by the net number of shares issued under the exercised stock option. Upon the exercise of any SAR under the Plan, the share reserve shall be reduced by the gross number of shares as to
which such right is exercised, and not by the net number of shares actually issued by the Company upon such exercise. If shares of Common Stock otherwise issuable under the Plan are withheld by the Company in satisfaction of the withholding taxes
incurred in connection with the issuance, exercise, vesting or settlement of an Award, then the number of shares of Common Stock available for issuance under the Plan shall be reduced by the gross number of Shares issuable at that time under such
Award, calculated in each instance prior to any such share withholding. 
 4. Administration of the Plan. 
 (a) Plan Administrator: 
 (i) Administration with Respect to Directors and Officers. With respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from
Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. With respect to the grant of an Award to a Director who is
not an Employee and which is not a scheduled Award under predetermined rules established by the Board or Committee, such grant shall be made only by a Committee (or subcommittee of the Committee) which is comprised solely of two or more Non-Employee
Directors, as this term is defined in Rule 16b-3, none of whom are the recipient of the Award. 
 (ii) Administration With
Respect to Consultants and Other Employees. With respect to grants of Awards to Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee
designated by the Board, which Committee shall be constituted in such a manner as to satisfy the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. The Board may
authorize one or more Officers of the Company or any Parent to grant such Awards, subject to such terms and conditions as the Board may impose; provided, however, that any delegation of such authority shall in all events be subject to the
limitations and restrictions of Applicable Laws, including any required limitation on the maximum of Shares for which Awards may be made by such Officer or Officers. 
 (iii) Administration With Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to any Covered Employee
intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised solely of two or more Directors eligible to serve on a committee making Awards qualifying as
Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a “Committee” shall be deemed to be references to such Committee or subcommittee. 

 (b) Powers of the Administrator. Subject to Applicable Laws and the provisions of
the Plan (including any other powers given to the Administrator hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 
 (i) to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder; 
 (ii) to determine when and to what extent Awards are to be granted hereunder; 
 (iii) to determine the number of Shares or the amount of other consideration to be covered by each Award granted hereunder; 
 (iv) to approve forms of Award Agreements for use under the Plan; 
 (v) to determine the terms and conditions of any Award granted hereunder; 
 (vi) to amend the terms of any outstanding Award granted under the Plan, provided that (A) any amendment that would adversely affect
the Grantee’s rights under an outstanding Award shall not be made without the Grantee’s written consent, (B) the reduction of the exercise price of any Option or SAR awarded under the Plan shall be subject to stockholder approval as
provided in Section 7(b), and (C) canceling an Option or SAR at a time when its exercise price exceeds the Fair Market Value of the underlying Shares, in exchange for another Option, SAR, Restricted Stock or other Award shall be subject to
stockholder approval as provided in Section 7(b), unless the cancellation and exchange occurs in connection with a Change in Control as provided in Section 11 or pursuant to an adjustment effected in accordance with Section 10;

 (vii) to construe and interpret the terms of the Plan and Awards, including without limitation, any notice of award or
Award Agreement, granted pursuant to the Plan; 
 (viii) to establish additional terms, conditions, rules or procedures to
accommodate the rules or laws of applicable non-U.S. jurisdictions and to afford Grantees favorable treatment under such rules or laws; provided, however, that no Award shall be granted under any such additional terms, conditions, rules or
procedures with terms or conditions which are inconsistent with the provisions of the Plan; and 
 (ix) to take such other
action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate. 
 (c) Indemnification. In
addition to such other rights of indemnification as they may have as members of the Board or as Officers or Employees of the Company or a Related Entity, members of the Board and any Officers or Employees of the Company or a Related Entity to whom
authority to act for the Board, the Administrator or the Company is delegated shall be defended and indemnified by the Company to the extent permitted by law on an after-tax basis against all reasonable expenses (including attorneys’ fees),
actually and necessarily incurred in connection with the defense of any claim, investigation, action, suit or proceeding, or in connection with any appeal therein, to which they or any of them may be a party by reason of any action taken or failure
to act under or in connection with the Plan, or any Award granted hereunder, and against all amounts paid by them in settlement thereof (provided such settlement is approved by the Company) or paid by them in satisfaction of a judgment in any such
claim, investigation, action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such claim, investigation, action, suit or proceeding that such person is liable for gross negligence, bad faith or intentional
misconduct; provided, however, that within 30 days after the institution of such claim, investigation, action, suit or proceeding, such person shall offer to the Company, in writing, the opportunity at the Company’s expense to handle and defend
the same. 

 5. Eligibility. Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants. Incentive Stock Options may be granted only to Employees of the Company or a Parent or a Subsidiary of the Company. An Employee, Director or Consultant who has been granted an Award may, if otherwise eligible, be granted additional
Awards. Awards may be granted to such Employees, Directors or Consultants who are residing in non-U.S. jurisdictions as the Administrator may determine. 
 6. Terms and Conditions of Awards. 
 (a) Type of Awards. The Administrator is
authorized under the Plan to award any type of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares,
(ii) cash or (iii) an Option, a SAR, or similar right with a fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more
events, or the satisfaction of performance criteria or other conditions. Such awards include, without limitation, Options, SARs, Restricted Stock, Restricted Stock Units, Dividend Equivalent Rights, Performance Units, Performance Shares, or Phantom
Shares. An Award may consist of one such security or benefit, or two or more of them in any combination or alternative. However, in no event may Dividend Equivalent Rights be granted with respect to the Shares subject to any Option or SAR Award made
under the Plan. 
 (b) Designation of Award. Each Award shall be designated in the Award Agreement. In the case of an
Option, the Option shall be designated as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares for which one or more Options
designated as Incentive Stock Options become first exercisable by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, the excess number of Shares shall be treated as subject to
Nonstatutory Stock Options. For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, except to extent otherwise provided by Applicable Law, and the Fair Market Value of the Shares shall be
determined as of the grant date of the relevant Option. 
 (c) Conditions of Award. Subject to the terms of the Plan,
the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash, Shares, or
other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or combination of, the following:
(i) revenue or revenue growth, (ii) achievement of specified milestones in the discovery and development of one or more of the Company’s products, (iii) achievement of specified milestones in the commercialization of one or more
of the Company’s products, (iv) achievement of specified milestones in the manufacturing of one or more of the Company’s products, (v) expense targets, (vi) personal management objectives, (vii) stock price (including,
but not limited to, growth measures and total stockholder return), (viii) earnings per share, (ix) operating efficiency, (x) operating margin, (xi) gross margin, (xii) return measures (including, but not limited to, return
on assets, capital, equity, or sales), (xiii) net sales growth, (xiv) productivity ratios, (xv) operating income, (xvi) net operating profit, (xvii) net earnings or net income (before or after taxes), (xviii) cash flow
(including, but not limited to, operating cash flow, free cash flow, and cash flow return on capital), (xix) earnings before interest, taxes, depreciation, amortization and/or stock-based compensation expense, (xx) economic value added,
(xxi) market share, (xxii) customer satisfaction, (xxiii) working capital targets, and (xxiv) with respect to Awards not intended to be Performance-Based Compensation under Section 162(m) of the Code, other measures of
performance selected by the Administrator. In addition, such performance criteria may be based upon the attainment of specified levels of the Company’s performance under one or more of the measures described above relative to the performance of
other entities and may also be based on the performance of any of the Company’s business units or divisions or any Parent or Subsidiary. Each applicable performance criteria may include a minimum threshold level of performance below which no
Award will be earned, levels of performance at which specified portions of an Award will be earned and a maximum level of performance at which an Award will be fully earned. Each applicable performance 

 
criteria may be structured at the time of the Award to provide for appropriate adjustment for one or more of the following items: (A) asset impairments
or write-downs; (B) litigation judgments or claim settlements; (C) the effect of changes in tax law, accounting principles or other laws, regulations or provisions affecting reported results; (D) the effect of exchange rates for
non-US dollar denominated net sales or goals based on operating profit, earnings or income, (E) accruals for reorganization and restructuring programs; (E) any extraordinary nonrecurring items as described in Accounting Principles Board
Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year, (F) the operations of any business
acquired by the Company or any Parent or Subsidiary or of any joint venture established by the Company or any Parent or Subsidiary; (G) the divestiture of one or more business operations or the assets thereof; or (I) the effect of any
change in the outstanding shares of Common Stock effected by reason of a stock split, stock dividend, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate
change or any distributions to the Company’s stockholders other than regular cash dividends. 
 (d) Acquisitions and
Other Transactions. The Administrator may issue Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the acquisition by the Company or a Related Entity
of another entity, an interest in another entity or an additional interest in a Related Entity, whether by merger, stock purchase, asset purchase or other form of transaction. 
 (e) Deferral of Award Payment. The Administrator may establish one or more programs under the Plan to permit selected Grantees the
opportunity to elect to defer receipt of the Shares or other consideration due upon the settlement of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares
or other consideration under an Award. The Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other
consideration so deferred, and such other terms, conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program. Notwithstanding the foregoing, each such deferral opportunity shall be
structured by the Administrator so as to comply with all applicable requirements of Code Section 409A and the Treasury Regulations thereunder. 
 (f) Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of Awards to one or more classes of Grantees on such terms and
conditions as determined by the Administrator from time to time. 
 (g) Individual Limitations on Awards. The maximum
number of Shares with respect to which Options may be granted to any Grantee in any fiscal year of the Company shall be limited to 2,500,000 Shares. The maximum number of Shares as to which Restricted Stock, Restricted Stock Units, Performance
Shares, Performance Units, SARs, Phantom Shares or Dividend Equivalent Rights may in the aggregate be granted to any Grantee in any fiscal year of the Company shall be 400,000 Shares. For the fiscal year in which occurs an Employee’s or
Consultant’s (i) commencement of Continuous Service or (ii) promotion, an Employee or Consultant may be granted Options for up to an additional 1,000,000 Shares or Restricted Stock, Restricted Stock Units, Performance Shares,
Performance Units, SARs, Phantom Shares or Dividend Equivalent Rights for up to an additional 200,000 shares in the aggregate, which shall not count against the limits set forth in the preceding sentence. The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company’s capitalization pursuant to Section 10, below. The value of all Awards denominated in U.S. dollars granted in any single calendar year to any Grantee shall not exceed
$7,000,000. For this purpose, the value of an Award denominated in U.S. dollars shall be determined on the date of grant without regard to any conditions imposed on the Award. To the extent required by Section 162(m) of the Code or the
regulations thereunder, in applying the foregoing limitations with respect to a Grantee, if any Awards are canceled, the canceled Awards shall continue to count against the maximum number of Shares with respect to which Awards may be granted to the
Grantee. 

 
For this purpose, the repricing of the exercise price of an Option or SAR if such repricing is approved by the stockholders of the Company, shall be treated
as the cancellation of the existing Option or SAR and the grant of a new Option or SAR. If the vesting or receipt of Shares under the Award is deferred to a later date, any amount (whether denominated in Shares or U.S. dollars) paid in addition to
the original number of Shares subject to the Award (or the original dollar amount for an Award denominated in U.S. dollars) will not be treated as an increase in the number of Shares (or dollar amount) subject to the Award if the additional amount
is based either on a reasonable rate of interest or on one or more predetermined actual investments such that the amount payable by the Company at the later date will be based on the actual rate of return of a specific investment (including any
decrease as well as any increase in the value of an investment). 
 (h) Early Exercise. The Award Agreement may, but
need not, include a provision whereby the Grantee may elect at any time while an Employee, Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may
be subject to a repurchase right in favor of the Company or a Related Entity or to any other restriction the Administrator determines to be appropriate. 
 (i) Term of Award. The term of each Award shall be the term stated in the Award Agreement; provided, however, that the term of an Award shall be no more than ten years from the date of grant thereof. However,
in the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than 10% of the voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the
term of the Incentive Stock Option shall be five years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. 
 (j) Transferability of Awards. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution
and may be exercised, during the lifetime of the Grantee, only by the Grantee. Other Awards shall be transferable by will and by the laws of descent and distribution, and during the lifetime of the Grantee, such Awards shall be transferable, by gift
or pursuant to a domestic relations order, to members of the Grantee’s Immediate Family to the extent and in the manner determined by the Administrator. Notwithstanding the foregoing, the Grantee may designate a beneficiary of the
Grantee’s Award in the event of the Grantee’s death on a beneficiary designation form provided by the Administrator. 
 (k) Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to grant such Award, or such later date as is determined by the Administrator.

 7. Award Exercise or Purchase Price; Consideration and Taxes. 
 (a) Exercise or Purchase Price. The exercise or purchase price, if any, for an Award shall be as follows: 
 (i) In the case of an Incentive Stock Option: 
 (A) granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than 10% of the
voting power of all classes of stock of the Company or any Parent or Subsidiary of the Company, the per Share exercise price shall be not less than 110% of the Fair Market Value per Share on the date of grant; or 
 (B) granted to any Employee other than an Employee described in the preceding paragraph, the per Share exercise price shall be not less
than 100% of the Fair Market Value per Share on the date of grant. 
 (ii) In the case of a Nonstatutory Stock Option, the per
Share exercise price shall be not less than 100% of the Fair Market Value per Share on the date of grant. 

 (iii) In the case of a SAR, the exercise price or the base amount on which the stock
appreciation is calculated shall be not less than 100% of the Fair Market Value per Share on the date of grant. 
 (iv) In the
case of other Awards, the cash consideration (if any) payable for such Award or the underlying Shares shall be determined by the Administrator. 
 (v) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(d), above, the exercise or purchase price for the Award shall be determined in
accordance with the provisions of the relevant instrument evidencing the agreement to issue such Award. 
 (b) No Authority
to Reprice. Without the consent of stockholders of the Company, no Award may be repriced, replaced, regranted through cancellation, or modified (except as provided in Section 10) if the effect is to reduce the exercise or purchase price for
the Shares underlying such Award. In addition, the replacement or substitution of one Award for another Award is prohibited, absent stockholder consent, to the extent it has the effect of reducing the exercise or purchase price of the underlying
Shares. 
 (c) Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon
the issuance, exercise, vesting or settlement of an Award, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). In addition to any other
types of consideration the Administrator may determine, the Administrator is authorized to accept as consideration for Shares issued under the Plan the following, provided that the portion of the consideration equal to the par value of the Shares
must be paid in cash or other legal consideration permitted by the Delaware General Corporation Law: 
 (i) cash; 

(ii) check; 
 (iii) services rendered; 
 (iv) surrender of Shares or delivery of a properly executed form of attestation of
ownership of Shares as the Administrator may require (including withholding of Shares otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender, attestation or withholding equal to the aggregate
exercise price of the Shares as to which said Award is exercised; 
 (v) with respect to Options, payment through a
broker-dealer sale and remittance procedure pursuant to which the Grantee (A) shall provide instructions (either in writing or electronically) to a Company designated brokerage firm (or, with respect to Grantees subject to Section 16 of
the Securities Exchange Act, a broker reasonably satisfactory to the Company for purposes of administering such procedure in accordance with the Company’s pre-clearance/pre-notification policies) to effect the immediate sale of some or all of
the purchased Shares and remit to the Company on the settlement date sufficient funds to cover the aggregate exercise price payable for the purchased Shares and any applicable withholding taxes and (B) shall provide directives (either in
writing or electronically) to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm on the settlement date in order to complete the sale transaction; or 
 (vi) any combination of the foregoing methods of payment. 

 (d) Taxes. The Company’s obligation to deliver Shares upon the issuance,
exercise, vesting or settlement of an Award under the Plan shall be subject to the satisfaction of all applicable income and employment tax withholding requirements. The Administrator may, in its discretion, provide Grantees with the right to use
shares of Common Stock in satisfaction of all or part of the Withholding Taxes to which such Grantees may become subject in connection with the issuance, exercise, vesting or settlement of those Awards. Such right may be provided to any such holder
in one or more of the following formats: 
 (i) Stock Withholding: The election to have the Company withhold, from the
Shares otherwise issuable upon the issuance, exercise, vesting or settlement of such Award, a portion of those Shares with an aggregate Fair Market Value equal to the percentage of the Withholding Taxes (not to exceed one hundred percent
(100%)) designated by such individual. The Shares so withheld shall reduce the number of shares of Common Stock authorized for issuance under the Plan. 
 (ii) Stock Delivery: The election to deliver to the Company, at the time of the issuance, exercise, vesting or settlement of such
Award, shares of Common Stock previously acquired by such individual with an aggregate Fair Market Value equal to the percentage of the Withholding Taxes (not to exceed one hundred percent (100%)) designated by the individual. The shares of
Common Stock so delivered shall neither reduce the number of shares of Common Stock authorized for issuance under the Plan nor be added to the number of shares of Common Stock authorized for issuance under the Plan. 
 (iii) Stock Sale: The election to make an immediate open-market sale of all or a portion of the Shares actually issued in
connection with the issuance, exercise, vesting or settlement of such Award and to have a sufficient portion of the sale proceeds applied automatically on the settlement date to the satisfaction of the applicable Withholding Taxes. 
 In addition, the Administrator may structure one or more Awards so that a portion of the Shares otherwise issuable under those Awards
shall automatically be withheld by the Company in satisfaction of the Withholding Taxes which become applicable in connection with the issuance, exercise, vesting or settlement of those Awards. 
 8. Exercise of Award. 
 (a) Procedure for Exercise; Rights as a Stockholder. 
 (i) Any Award granted hereunder shall be exercisable
at such times and under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award Agreement. Notwithstanding any other provision of the Plan to the contrary, except with respect to a maximum of 5% of
the Shares authorized for issuance under Section 3(a), any Awards of Restricted Stock or Restricted Stock Units which vest on the basis of the Grantee’s Continuous Service with the Company or a Related Entity shall not provide for vesting
which is any more rapid than annual pro rata vesting over a three-year period, and any Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units which provide for vesting upon the attainment of performance goals
shall provide for a performance period of at least 12 months; provided, however, that such limitations shall not apply in the event of a Change in Control or to any Grantee whose Continuous Service terminates by reason of his or her death,
disability or an involuntary termination other than for Cause. 
 (ii) An Award shall be deemed to be exercised when notice of
such exercise (either in writing or electronically) has been given to the Company or its designee in accordance with the terms of the Award by the person entitled to exercise the Award. Except to the extent the broker-dealer sale and remittance
procedure is to be utilized under Section 7(c)(iv), full payment for the Shares with respect to which the Award is exercised shall accompany such exercise notice. 
 (b) Exercise of Award Following Termination of Continuous Active Service. 
 (i) An Award may not be exercised after the termination date of such Award set forth in the Award Agreement and may be exercised following
the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 

 (ii) Where the Award Agreement permits a Grantee to exercise an Award following the
termination of the Grantee’s Continuous Service for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first.

 (iii) Any Award designated as an Incentive Stock Option to the extent not exercised within the time permitted by law for
the exercise of Incentive Stock Options following the termination of Employee status shall convert automatically to a Nonstatutory Stock Option and thereafter shall be exercisable as such to the extent exercisable by its terms for the period
specified in the Award Agreement. 
 9. Conditions Upon Issuance of Shares. 
 (a) Shares shall not be issued pursuant to the exercise, vesting or settlement of an Award unless the exercise, vesting or settlement of
such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 (b) As a condition to the issuance of any Shares in connection with the exercise, vesting or settlement of an Award, the Company may
require the person holding such Award to represent and warrant at the time of such issuance that the Shares are being acquired only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required by any Applicable Laws. 
 10. Adjustments Upon Changes in Capitalization. Should any
change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off transaction or other change affecting the outstanding Common Stock as a class without the
Company’s receipt of consideration, or should the value of the outstanding shares of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger,
consolidation or other reorganization, then equitable and proportional adjustments shall be made by the Administrator to the maximum number and class(es) of securities issuance under the Plan pursuant to Section 3(a), the maximum number and
class(es) of securities as to which Awards of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units (settled in Shares) and Phantom Shares may be made in accordance with the limitation of Section 3(a) and the maximum
number and class(es) of securities for which Awards may be made to any person during any fiscal year pursuant to the limitations set forth in Section 6(g), and the outstanding Awards (other than an Award of Restricted Stock that is outstanding
at the time of the event described in this paragraph) will be equitably and proportionally adjusted as to the number and class(es)of securities and exercise price (or other cash consideration) payable per Share subject to such outstanding Awards,
including any price required to be paid for Restricted Stock not yet outstanding at the time of the event described in this paragraph; provided, however, that the aggregate exercise price (or other cash consideration) shall remain the same. The
adjustments shall be made in such manner as the Administrator deems appropriate in order to prevent the dilution or enlargement of benefits under the Plan and the outstanding Awards thereunder, and such adjustments shall be final, binding and
conclusive. In the event of a Change in Control, however, the adjustments (if any) shall be made solely in accordance with the applicable provisions of Section 11. 
 11. Change in Control. 
 (a) Effect of Change in Control on Awards. 

(i) In the event of a Change in Control, the Board at its sole discretion may, to the extent permitted by applicable law, provide for
the following treatment of outstanding Options and SARs: (i) any surviving corporation shall assume any Options or SARs outstanding under the Plan or shall substitute economically equivalent awards for the Options and SARs outstanding under the
Plan, (ii) the time during which such Options or SARs may be exercised shall be accelerated so that those Awards may be exercised for fully-vested Shares and those Awards shall terminate if not exercised prior to the Change in Control, or
(iii) such Options or SARs shall continue in full force and effect. 

 (ii) Any other Award outstanding under the Plan at the time of the Change in Control may
be assumed by the surviving corporation, replaced with an economically-equivalent substitute award or otherwise continued in full force in effect. To the extent any such Award is not assumed, replaced with an economically-equivalent substitute award
or otherwise continued in effect, that Award shall vest, and the shares of Common Stock subject to that Award shall be issued as fully-vested shares, immediately prior to the effective date of the Change in Control. 
 (iii) Any Award which is assumed in connection with a Change in Control or otherwise continued in effect shall be adjusted immediately
after the consummation of that Change in Control so as to apply to the number and class of securities into which the shares of Common Stock subject to that Award immediately prior to the Change in Control would have been converted in consummation of
such Change in Control had those shares actually been outstanding at that time, and appropriate adjustments shall also be made to the exercise price or any other consideration payable per share thereunder, provided the aggregate exercise price or
amount of such other consideration shall remain the same. To the extent the actual holders of the Company’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor
corporation may, in connection with the assumption or continuation of the outstanding Awards and subject to the approval of the Administrator prior to the Change in Control, substitute one or more shares of its own common stock with a fair market
value equivalent to the cash consideration paid per share of Common Stock in such Change in Control transaction, provided such common stock is readily traded on an established U.S. securities exchange or market. 
 (iv) The Administrator may structure one or more Awards so that the Shares subject to those Awards shall vest (or shall vest and become
issuable) immediately prior to the effective date of a Change in Control, whether or not those Awards are assumed, replaced with an economically-equivalent substitute award or otherwise continued in full force and effect 
 (b) Acceleration of Award Upon Cessation of Continuous Service In Connection With a Change in Control. Notwithstanding any other
provisions of this Plan to the contrary, if within the period beginning with the execution of the definitive agreement for a Change in Control transaction and ending with the earlier of (i) the termination of that definitive agreement without
the consummation of such Change in Control or (ii) the expiration of the Applicable Acceleration Period following the consummation of such Change in Control, either (1) the Continuous Service of an Employee or a Consultant terminates due
to an involuntary termination (not including death or Disability) without Cause (as such term is defined below) or a voluntary termination by the Grantee due to Constructive Termination (as such term is defined below) or (2) the Continuous
Service of a Director terminates, then the vesting and exercisability of all Awards held by such Grantee shall be accelerated, or any reacquisition or repurchase rights held by the Company with respect to an Award shall lapse, as follows:

  

	 	•	 	 With respect to Options and SARs held by a Grantee at the time of such termination, such Options and SARs shall become immediately exercisable as to all the
underlying Shares and may be exercised for any or all of those Shares as fully-vested shares until the expiration or sooner termination date of those Awards. 

  

	 	•	 	 With respect to all other Awards held by the Grantee at the time of such termination, the underlying Shares shall vest and become immediately issuable, and any
reacquisition or repurchase rights held by the Company with respect to those Shares shall lapse, as of the date of such termination. 

 (c) Definition of “Cause”. For the purposes of Section 11(b) only, “Cause” means (i) conviction of, a guilty plea with respect to, or a plea of non contendere to a charge
that a Grantee has committed a felony under the laws of the United States or of any state or a crime involving moral turpitude, including, but not limited to, fraud, theft, embezzlement or any crime that results in or is intended to result 

 
in personal enrichment at the expense of the Company or a Related Entity; (ii) material breach of any agreement entered into between the Grantee and the
Company or a Related Entity that impairs the Company’s or the Related Entity’s interest therein; (iii) willful misconduct, significant failure of the Grantee to perform the Grantee’s duties, or gross neglect by the Grantee of the
Grantee’s duties; or (iv) engagement in any activity that constitutes a material conflict of interest with the Company or a Related Entity. 
 (d) Definition of “Constructive Termination”. For purposes of Section 11(b) only, “Constructive Termination” means the occurrence of any of the following events or conditions:
(i) (A) a change in the Grantee’s status, title, position or responsibilities (including reporting responsibilities) which represents an adverse change from the Grantee’s status, title, position or responsibilities as in effect
immediately prior to the execution of the definitive agreement for the Change in Control transaction or at any time within the Applicable Acceleration Period after the date of a Change in Control; (B) the assignment to the Grantee of any duties
or responsibilities which are inconsistent with the Grantee’s status, title, position or responsibilities as in effect immediately prior to the execution of the definitive agreement for the Change in Control transaction or at any time within
the Applicable Acceleration Period after the Change in Control; or (C) any removal of the Grantee from or failure to reappoint or reelect the Grantee to any of the offices or positions held by the Grantee immediately prior to the execution of
the definitive agreement for the Change in Control transaction or at any time within the Applicable Acceleration Period after the date of a Change in Control, except in connection with the termination of the Grantee’s Continuous Service for
Cause, as a result of the Grantee’s Disability or death or by the Grantee other than as a result of Constructive Termination; (ii) a reduction in the Grantee’s annual base compensation or any failure to pay the Grantee any
compensation or benefits to which the Grantee is entitled within five days of the date due; (iii) the Company’s requiring the Grantee to relocate to any place outside a 50 mile radius of the location serving as Grantee’s principal
work site immediately prior to the execution of the definitive agreement for the Change in Control transaction or during the Applicable Acceleration Period after the date of a Change in Control, except for reasonably required travel on the business
of the Company or a Related Entity which is not materially greater than such travel requirements in effect during the applicable measurement period determined above; (iv) the failure by the Company to (A) continue in effect (without
reduction in benefit level and/or reward opportunities) any material compensation or employee benefit plan in which the Grantee was participating at any time within the 90-day period immediately prior to the execution of the definitive agreement for
the Change in Control transaction or at any time within the Applicable Acceleration Period after the Change in Control, unless such plan is replaced with a plan that provides substantially equivalent compensation or benefits to the Grantee, or
(B) provide the Grantee with compensation and benefits, in the aggregate, at least equal (in terms of benefit levels and/or reward opportunities) to those provided the Grantee under each other employee benefit plan, program and practice in
which he or she was participating at any time within the 90-day period immediately prior to the execution of the definitive agreement for the Change in Control transaction or at any within the Applicable Acceleration Period after the Change in
Control; (v) any material breach by the Company of any provision of an agreement between the Company and the Grantee, whether pursuant to this Plan or otherwise, other than a breach which is cured by the Company within 15 days following notice
by the Grantee of such breach; or (vi) the failure of the Company to obtain an agreement, satisfactory to the Grantee, from any successors and assigns to assume and agree to perform the obligations created under this Plan. 
 (e) Effect of Acceleration on Incentive Stock Options. Any Incentive Stock Option accelerated under this Section 11 in
connection with a Change in Control shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. To the extent such dollar limitation is
exceeded, the excess Options shall be treated as Nonstatutory Stock Options. 
 12. Effective Date and Term of Plan. The Plan shall
become effective upon its approval by the stockholders of the Company. It shall continue in effect for a term of ten years unless sooner terminated. Subject to Applicable Laws, Awards may be granted under the Plan upon its becoming effective.

 13. Amendment, Suspension or Termination of the Plan. 
 (a) The Board may at any time amend, suspend or terminate the Plan; provided, however, that no such amendment shall be made without the
approval of the Company’s stockholders to the extent such approval is required by NASD Marketplace Rule 4350(i)(1)(A), Section 422 of the Code and regulations promulgated thereunder, or any other Applicable Laws, or if such amendment would
change any of the provisions of Section 4(b)(vi) or this Section 13(a). 
 (b) No Award may be granted during any
suspension of the Plan or after termination of the Plan. 
 (c) No suspension or termination of the Plan (including
termination of the Plan under Section 12, above) shall adversely affect any rights under Awards already granted to a Grantee. 
 14.
Reservation of Shares. 
 (a) The Company, during the term of the Plan, will at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
 (b) The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder shall relieve the Company of any liability in respect of
the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
 15. No Effect on Terms of
Employment/Consulting Relationship. The Plan shall not confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the right of the Company or any Related
Entity to terminate the Grantee’s Continuous Service at any time, with or without Cause, and with or without notice. The ability of the Company or any Related Entity to terminate the employment of a Grantee who is employed at will is in no way
affected by its determination that the Grantee’s Continuous Service has been terminated for Cause for the purposes of this Plan. 
 16.
No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or
contributions under any retirement plan of the Company or a Related Entity, and shall not affect any benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is
related to level of compensation. The Plan is not a “Pension Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
 17. Unfunded Obligation. Grantees shall have the status of general unsecured creditors of the Company. Any amounts payable to Grantees pursuant to
the Plan shall be unfunded and unsecured obligations for all purposes, including, without limitation, Title I of the Employee Retirement Income Security Act of 1974, as amended. Neither the Company nor any Related Entity shall be required to
segregate any monies from its general funds, or to create any trusts, or establish any special accounts with respect to such obligations. The Company shall retain at all times beneficial ownership of any investments, including trust investments,
which the Company may make to fulfill its payment obligations hereunder. Any investments or the creation or maintenance of any trust or any Grantee account shall not create or constitute a trust or fiduciary relationship between the Administrator,
the Company or any Related Entity and a Grantee, or otherwise create any vested or beneficial interest in any Grantee or the Grantee’s creditors in any assets of the Company or a Related Entity. The Grantees shall have no claim against the
Company or any Related Entity for any changes in the value of any assets that may be invested or reinvested by the Company with respect to the Plan. 

 18. Governing Law. The Plan and all agreements thereunder shall be governed by and construed in
accordance with the laws of the State of Delaware, without resort to that State’s conflict-of-law provisions. 
 19.
Section 409A Compliance. The Board reserves the right, to the extent it deems it necessary or advisable in its sole discretion, to alter or modify the Plan and any outstanding Awards under the Plan, without the consent of the Grantees,
so as to ensure that all Awards and Award Agreements provided to Grantees who are subject to U.S. income taxation either qualify for an exemption from the requirements of Section 409A of the Code or are structured in a manner that complies with
those requirements; provided, however, that neither the Company nor any Related Entity makes any representations that any Awards made under the Plan will in fact be exempt from the requirements of Section 409A of the Code or otherwise comply
with those requirements, and each Grantee shall accordingly be solely responsible for any taxes, penalties or other amounts which may become payable with respect to his or her Awards by reason of Section 409A of the Code.

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