Document:

Tri_State_Exhibit_10_1

		
			Exhibit 10.1
		

		
			 
		

		
			MISSOURI BASIN POWER PROJECT
		

		
			* * * 
		

		
			LARAMIE RIVER ELECTRIC GENERATING STATION
		

		
			AND
		

		
			TRANSMISSION SYSTEM
		

		
			PARTICIPATION AGREEMENT
		

		
			AMENDMENT NO. 12
		

		
			 
		

		
			This Amendment No. 12 (“Amendment”), dated as of September 20,  2018,  by and between BASIN ELECTRIC POWER COOPERATIVE, a North Dakota corporation (“Basin Electric”); TRI-STATE GENERATION AND TRANSMISSION ASSOCIATION, INC., a Colorado corporation (“Tri-State”); CITY OF LINCOLN, NEBRASKA, a Nebraska municipal corporation operating the Lincoln Electric System (“L.E.S.”); HEARTLAND CONSUMERS POWER DISTRICT, a political subdivision of the State of South Dakota (“Heartland”); WYOMING MUNICIPAL POWER AGENCY, a public corporation of the State of Wyoming (“Wyoming Municipal”); and WESTERN MINNESOTA MUNICIPAL POWER AGENCY, a municipal corporation and political subdivision of the State of Minnesota (“Western Minnesota”), all of whom may be collectively referred to as the “Parties” and individually referred to as “Party.”  Capitalized terms used herein without definition shall have the respective meanings set forth in the Participation Agreement (as defined below).
		

		
			 
		

		
			W I T N E S S E T H:
		

		
			 
		

		
			WHEREAS, the Parties have entered into a document entitled “Missouri Basin Power Project * * * Laramie River Electric Generating Station and Transmission System Participation Agreement,” executed on various dates during the months of November and December, 1975, taking effect as of May 25, 1977, and amended from time to time (the “Participation Agreement”); and
		

		
			 
		

		
			WHEREAS, the Parties wish to amend the Participation Agreement to reflect the transfer of all of Heartland’s 3.00% Entitlement Share to Tri-State, the assignment of all of Heartland’s interest in the Participation Agreement to Tri-State, and to remove Heartland as a party to the Participation Agreement.
		

		
			 
		

		
			WHEREAS,  in addition, the Parties wish to make certain other amendments to the Participation Agreement.
		

		
			 
		

		
			NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:
		

		
			 
		

		
			1.AMENDMENTS TO PARTICIPATION AGREEMENT:
		

		
			 
		

		
			1.1Section 4.8 of the Participation Agreement shall be amended in its entirety to read as follows:
		

		
			 
		

		
			“4.8 ENTITLEMENT SHARE: The percentage of undivided ownership of each Participant in the Project as follows: 
		

		
			A. Basin Electric = 42.27 percent
		

		
			

		 

		

			 

		

		

			-1-

		

 

		

		
			B. Tri-State = 27.13 percent
		

		
			C. L.E.S. = 12.76 percent
		

		
			D. Western Minnesota = 16.47 percent
		

		
			E. Wyoming Municipal = 1.37 percent”
		

		
			 
		

		
			Without further amendment or change, all Project Agreements shall be construed and the terms thereof applied in a manner consistent with the foregoing change of Parties and Entitlement Shares.
		

		
			 
		

		
			1.2Section 6.8 of the Participation Agreement shall be amended in its entirety to read as follows: 
		

		
			 
		

		
			6.8 Any action or determination of the Engineering and Operating Committee, the Audit Committee and the Management Committee shall require a vote of four (4) out of the five (5) Participants, acting through their respective representatives, provided that such four (4) Participants own more than fifty (50) percent of the Entitlement Shares. 
		

		
			 
		

		
			 
		

		
			1.3Section 30 of the Participation Agreement shall be amended in its entirety to read as follows:
		

		
			 
		

		
			“30.1This Agreement shall become effective only when it has been duly executed and delivered on behalf of all of the Participants and approved by all regulatory agencies which have jurisdiction. This Agreement shall continue in full force and effect until December 31, 2042.
		

		
			 
		

		
			30.2Upon termination of this Agreement, the facilities comprising the Project shall be disposed of in a manner to be mutually agreed upon by the Participants and in accordance with the applicable federal, state and local laws, ordinances and regulations. This section shall remain in effect after the termination or expiration of the Project Agreements and until the disposal of the facilities comprising the Project is complete.
		

		
			 
		

		
			30.3If and to the extent that any of the options, rights and privileges granted under this Agreement, would, in the absence of the limitation imposed by this sentence, be invalid or unenforceable as being in violation of the rule against perpetuities or any other rule or law relating to the vesting of interests in property or the suspension of the power of alienation of property, then it is agreed that notwithstanding any other provision of this Agreement, such options, rights and privileges, subject to the respective conditions hereof governing the exercise of such options, rights and privileges, will be exercisable only during (a) the longer of (i) a period which will end twenty-one (21) years after the death of the last survivor of the descendants living on the date of the execution of the Amendment No. 12 to this Agreement, of the following Presidents of the United States: Franklin D. Roosevelt, Harry S. Truman, Dwight D. Eisenhower, John F. Kennedy, Lyndon B. Johnson, Richard M. Nixon, Gerald R. Ford, James E. Carter, Ronald W. Reagan, George H. W. Bush, William J. Clinton, George W. Bush, and Barack H. Obama, or (ii) in the event that Wyo. Stat. Ann. § 34-1-139 applies to the exercise of such options, rights and privileges, the period provided 

		 

		

			 

		

		

			-2-

		

 

under such statute, or (b) the specific applicable period of time expressed in this Agreement, whichever of (a) and (b) is shorter.”
		

		
			 
		

		
			1.4Section C-2 of Exhibit C of the Participation Agreement is amended to delete the words “Heartland Consumers Power District” in each instance that it appears.
		

		
			 
		

		
			2.RULE AGAINST PERPETUITIES: Each Party acknowledges and agrees that, in connection with amending Section 30 of the Participation Agreement as provided in this Amendment, for purposes of complying with the rule against perpetuities or any other rule or law relating to the vesting of interests in property or the suspension of the power of alienation of property, any options, rights and privileges in the Participation Agreement, including Sections 16, 17 and 31, are hereby re-granted by the execution of this Amendment.  Therefore, the creation of such options, rights and privileges in the Participation Agreement is as of Effective Date. 
		

		
			 
		

		
			3.WAIVER AND CONSENT:  With respect to the transfer, assignment and sale of Heartland’s 3.00% Entitlement Share to Tri-State and the assignment of all of Heartland’s interest in the Project Agreements to Tri-State (collectively, the “Heartland Transaction”), each Party, individually, hereby (a) recognizes and consents to the Heartland Transaction, (b) knowingly, freely, and definitively agrees, without any conditions, that the Heartland Transaction has been accomplished in accordance with the Participation Agreement, including, but not limited to, Section 16 of the Participation Agreement, and (c) knowingly, freely, and definitively waives, without any conditions, any and all rights it might have under Section 16 of the Participation Agreement related to the Heartland Transaction, including, but not limited to, any notices or Right of First Refusal. Each Party, individually, acknowledges and recognizes that certain other transactions or agreements have or may occur between various Parties related to the Heartland Transaction, and each Party agrees that its consent and waiver with respect to the Heartland Transaction as set forth in the preceding sentence is not conditioned upon any such other transactions or agreements.  This waiver and consent does not in any way alter or amend any other transactions or agreements between various Parties, except as expressly agreed by such Parties, nor does it waive any rights or obligations under the Project Agreements, except as expressly agreed by the Parties.
		

		
			 
		

		
			4.HEARTLAND NO LONGER A PARTY: 
		

		
			 
		

		
			4.1As of the Effective Date, Heartland shall no longer be a party to the Participation Agreement or any other Project Agreement.
		

		
			 
		

		
			4.2The following parts and sections of the Participation Agreement are also revised or deleted as appropriate to remove any reference to Heartland: the cover page, Sections 1, 2.5, and 32.1.
		

		
			 
		

		
			5.MUTUAL REPRESENTATIONS AND WARRANTIES:  As of the date first written above,  Each Party represents and warrants to the other Parties that (i) it possesses full power and authority to enter into and perform this Amendment; (ii) the execution, delivery and performance of this Amendment by it have been duly authorized by it; (iii) the execution, delivery and performance of this Amendment by it does not require the consent or approval of, filing with, nor notice to any other person, which if not obtained would prevent it from performing its obligations hereunder; and (iv)  the execution, delivery and performance of this Amendment by it shall not violate any federal, state or municipal laws, rules or regulations applicable to it.
		

		
			 
		

		
			

		 

		

			 

		

		

			-3-

		

 

		

		
			6.EFFECTIVE DATE: This Amendment became retroactively effective on July 1, 2018 (“Effective Date”).  As Basin Electric and Tri-State are no longer borrowers from the Rural Utilities Service, no approval by the Administrator of the Rural Utilities Service is required.
		

		
			 
		

		
			IN WITNESS HEREOF, the Parties have caused this Amendment No. 12 to be executed and delivered as of the date first written above.  
		

		
			 
		

		
			

		 

		

			 

		

		

			-4-

		

 

		

		
			 
		

		
			 
		

		
			( S E A L )BASIN ELECTRIC POWER COOPERATIVE
		

		
			 
		

		
			 
		

		
			By:  /s/ Paul M. Sukut
		

		
			Title:  General Manager and CEO
		

		
			 
		

		
			ATTEST:
		

		
			 
		

		
			 
		

		
			/s/ Mark D. Foss
		

		
			Title:  Assistant Secretary
		

		
			 
		

		
			 
		

		
			CORPORATE ACKNOWLEDGMENT
		

		
			 
		

		
			 
		

		
			STATE OF NORTH DAKOTA)
		

		
			) ss.
		

		
			COUNTY OF BURLEIGH)
		

		
			 
		

		
			On the 12 day of September, 2018, before me personally appeared Paul M. Sukut, to me personally known, who, having been by me first duly sworn, did say that he is the General Manager and CEO of Basin Electric Power Cooperative, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Paul M. Sukut acknowledged said instrument to be the free act and deed of said corporation.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ Michelle Wiedrich
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			August 6, 2021
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-5-

		

 

		

		
			 
		

		
			( S E A L )WESTERN MINNESOTA MUNICIPAL
		

		
			POWER AGENCY
		

		
			 
		

		
			 
		

		
			By: /s/ Thomas J Heller
		

		
			Title:  Assistant Secretary & Assistant Treasurer
		

		
			 
		

		
			ATTEST:
		

		
			 
		

		
			 
		

		
			/s/ Merlin Sawyer
		

		
			Title:  Assistant Secretary
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			STATE OF SOUTH DAKOTA)
		

		
			) ss.
		

		
			COUNTY OF LINCOLN)
		

		
			 
		

		
			On the 14 day of September, 2018, before me personally appeared Tom Heller to me personally known, who, having been by me first duly sworn, did say that he is the Assistant Secretary & Assistant Treasurer of Western Minnesota Municipal Power Agency, the agency described in and which executed the foregoing instrument; that the seal affixed to said instrument is the seal of said agency; and that said instrument was signed and sealed on behalf of said agency by authority of its board of directors; and said Tom Heller acknowledged said instrument to be the free act and deed of said agency.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ Geraldyne Shumaker
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			September 30, 2022
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-6-

		

 

		

		
			 
		

		
			( S E A L )WYOMING MUNICIPAL POWER AGENCY
		

		
			 
		

		
			 
		

		
			By: /s/ Rosemary K Henry
		

		
			Title:  Executive Director
		

		
			 
		

		
			ATTEST:
		

		
			 
		

		
			 
		

		
			/s/ Zane Logan
		

		
			Title:  Chairman
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			STATE OF WYOMING)
		

		
			) ss.
		

		
			COUNTY OF NIOBRARA)
		

		
			 
		

		
			On the 20 day of September, 2018, before me personally appeared Rosemary K Henry, to me personally known, who, having been by me first duly sworn, did say that he is the Executive Director of Wyoming Municipal Power Agency, the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument was signed and sealed in behalf of said corporation by authority of its board of directors; and said Rosemary K Henry acknowledged said instrument to be the free act and deed of said corporation.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ M Luana Govin
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			May 16, 2022
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-7-

		

 

		

		
			 
		

		
			( S E A L )HEARTLAND CONSUMERS POWER DISTRICT
		

		
			 
		

		
			 
		

		
			By: /s/  Russell Olson
		

		
			Title:  Chief Executive Officer
		

		
			 
		

		
			ATTEST:
		

		
			 
		

		
			 
		

		
			/s/ Katlyn Hahn
		

		
			Title:  Administrative Assistant
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			STATE OF SOUTH DAKOTA)
		

		
			) ss.
		

		
			COUNTY OF LAKE)
		

		
			 
		

		
			On the 10 day of September, 2018, before me personally appeared Russell Olson,  Chief Executive Officer of Heartland Consumers Power District, known to me or satisfactorily proven to be the person described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ Katlyn Hahn
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			September 14, 2022
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-8-

		

 

		

		
			( S E A L )CITY OF LINCOLN, NEBRASKA
		

		
			 
		

		
			 
		

		
			By:  /s/ Kevin G Wailes
		

		
			Title:  Administrator & Chief Executive Officer
		

		
			          Lincoln Electric System
		

		
			 
		

		
			ATTEST:
		

		
			 
		

		
			 
		

		
			/s/ Lacy Stockdale
		

		
			Title:  Assistant Secretary
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			STATE OF NEBRASKA)
		

		
			) ss.
		

		
			COUNTY OF LANCASTER)
		

		
			 
		

		
			On the 10 day of September, 2018, before me personally appeared Kevin G Wailes, to me personally known, who, having been by me first duly sworn, did say that he is the Administrator & Chief Executive Officer of Lincoln Electric System, which executed the foregoing instrument; and that said instrument was signed in behalf of said Lincoln Electric System by authority of its Administrative Board; and said Kevin G Wailes acknowledged said instrument to be the free act and deed of said Lincoln Electric System.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ Brenda Austin
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			January 27, 2019
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-9-

		

 

		

			

		

		

		
			( S E A L )TRI-STATE GENERATION AND
		

		
			TRANSMISSION ASSOCIATION, INC.
		

		
			 
		

		
			 
		

		
			By: /s/ Micheal S. McInnes
		

		
			Title:  Chief Executive Officer
		

		
			 
		

		
			 
		

		
			ACKNOWLEDGMENT
		

		
			 
		

		
			STATE OF COLORADO)
		

		
			) ss.
		

		
			COUNTY OF ADAMS)
		

		
			 
		

		
			On the 10th day of September, 2018, before me personally appeared Micheal S. McInnes, to me personally known, who, having been by me first duly sworn, did say that he is the Chief Executive Officer of Tri-State Generation and Transmission Association, Inc., the corporation described in and which executed the foregoing instrument; that the seal affixed to said instrument is the corporate seal of said corporation; and that said instrument was signed and sealed on behalf of said corporation by authority of its board of directors; and said Micheal S. McInnes acknowledged said instrument to be the free act and deed of said corporation.  
		

		
			 
		

		
			IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal on the day and year in this certificate first above written.  
		

		
			 
		

		
			( S E A L ) 
		

		
			/s/ Pamela Lee Schroder
		

		
			Notary Public
		

		
			 
		

		
			My Commission Expires:
		

		
			April 4, 2022
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			 

		

		

			Signature Page to Amendment No. 12 to Laramie River Electric Generating Station and Transmission System Participation Agreement

		

		

			-10-Exhibit 10.1

 

Execution Date: 09/26/2018

 

Co-Owner Term Sheet

 

·                  A. Co-Owner Support

 

Relevant ownership agreements will be modified as follows:

 

1.              Each Owner will pay its share of Qualifying Construction Costs up to the VCM 19 forecast (for point of reference this value shall be the total project cost of which GPC’s share is $8.4 billion) plus $800 million according to the ownership percentages in the Ownership Participation Agreement as amended.

 

2.              In the event the Estimate at Completion is revised and exceeds the VCM 19 forecast by more than $800 million, GPC will pay:

 

a.              55.7% of actual Qualifying Construction Costs between the VCM 19 forecast plus an additional $800 million and the VCM 19 forecast plus an additional $1.6 billion; and the other Co-owners (i.e. OPC, MEAG, Dalton) will share 44.3% of such costs on a pro rata basis according to their Ownership percentages set forth in the Ownership Participation Agreement. For the avoidance of doubt GPC shall be obligated to pay up to $80 million of the other Co-owner’s share of costs in the aggregate under this paragraph 2.a.

 

b.              65.7% of the Qualifying Construction Costs between amounts greater than the VCM 19 forecast plus an additional $1.6 billion and the VCM 19 forecast plus an additional $2.1 billion, and the other Co-owners (i.e. OPC, MEAG, Dalton) will share 34.3% of such costs on a pro rata basis according to their Ownership percentages set forth in the Ownership Participation Agreement.  For the avoidance of doubt GPC shall be obligated to pay up to $100 million of the other Co-owner’s share of costs in the aggregate under this paragraph 2.b.

 

c.               In the event the Estimate at Completion is revised and exceeds the VCM 19 forecast plus $2.1 billion, each of the Co-owners shall have a one-time option to be exercised or not at the time the budget forecast first shows the budget exceeding VCM 19 plus $2.1 billion to tender a portion of its interest in the Project to GPC in exchange for GPC’s agreement to pay 100% of such Co-owner’s remaining share of Cost of Construction (as defined in the Ownership Participation Agreement)  in excess of the VCM 19 forecast plus $2.1 billion.  In order to make an effective tender of its interest a Co-owner must provide GPC with evidence that each lender, off taker or other party with an interest in a Co-owner’s interest in the Project has approved the conveyance of such interest in the Project to GPC under this sub paragraph and has agreed to release any liens relating to the interest to be conveyed to GPC.  The ownership interest to be conveyed from the tendering Co-owner to GPC shall be calculated based on each Owner’s share of Cost of Construction paid at the Commercial Operation date of Unit 4 divided by the total Cost of Construction paid by all Owners at Commercial Operation date of Unit 4.  In order to reconcile ownership interests to total Cost of Construction paid by each Owner such interests shall be conveyed by the tendering Owner free and

 

 

clear of all encumbrances or clouds on title, within 180 days of the Commercial Operation date of Unit 4.  GPC shall have the option of canceling the Project in lieu of accepting such an offer.  For purposes of the calculation to be done to determine the ownership interest to be conveyed the actual Cost of Construction of the Project as of the Commercial Operation Date of Unit 4 shall be used.

 

d.              If one or more Co-owners exercise the option set forth in A.2(c) and GPC does not exercise its option of canceling the project in lieu of such offer, then GPC shall accept such offer and each Co-owner’s Ownership percentage and right to output in the Project will be adjusted in accordance with the percentage of the total Cost of Construction paid by that Owner, net of Toshiba Guarantee payments, and each Co-owner shall be credited in the calculation in 2(c) for any Qualifying Construction Costs payments made by GPC on behalf of such Co-owner in accordance with paragraph A.2(a)-(b) as if such payment was a Cost of Construction paid by that Co-owner, as of commercial operation date of Unit 4.

 

e.               Any owner that does not make a tender under A.2(c) will share costs in excess of VCM 19 plus $2.1 billion according to their Ownership percentages set forth in the Ownership Participation Agreement.

 

3.              To the extent Cost of Construction on a Unit are less than the VCM 19 forecast and achieves the 29+ month schedule as to that Unit, GPC shall be entitled to 60.7% of the savings on the Unit and the other Co-owners will share 39.3% of the savings on the Unit on a pro rata basis according to their Ownership percentages in accordance with the Ownership Participation Agreement.

 

4.              Qualifying Construction Costs means all Cost of Construction (as defined in Ownership Participation Agreement) payable under the Ownership Participation Agreement, provided however that Qualifying Construction Costs do not include: (i) Costs that are the result of Force Majeure events defined as in Exhibit A (ii) legal fees and legal expenses incurred due to litigation with Contractors or subcontractors that are not subsidiaries or affiliates of Southern Company, and (iii) costs caused by Co-owner requests, except for the exercise of a right to vote granted under the Ownership Participation Agreement, other than GPC that increase Project costs by $100,000 or more;

 

5.              The Ownership Participation Agreement will be amended as follows:

 

a.              Eliminate all PAEs based on a $ 1billion increase in the Estimate at Completion set forth in paragraph 2.1 of the Agreement Regarding Additional Participating Party Rights;

 

b.              The rate parity PAEs in paragraph 2.1 of the Agreement Regarding Additional Participating Party Rights will be amended to exclude all payments made by GPC under paragraph A.2 on behalf of Co-Owners other than GPC and the first 6% of costs in any VCM period; and

 

c.               GPC will be entitled in its sole discretion to cancel the project at any time.

 

 

·                  B. Additional PTC Purchases (applicable to all Co-Owners)

 

1.              At each Co-owner’s option for its own PTCs [to be exercised (or not) at the time PTCs are earned], GPC will purchase additional PTCs from OPC, Dalton, and MEAG (collectively “Co-owners”) based on the following terms and conditions:

 

a.              If the Cost of Construction at Commercial Operation of Unit 4 for the Vogtle Project (“EAC”) remains at or below the EAC forecast reflected in VCM 19, GPC will purchase 100% of Co-Owners’ PTCs at 88% of their Face Value during the month after they are earned.

 

b.              If the EAC increases from $0 to $299 million over the EAC reflected in VCM 19, GPC will purchase 100% of Co-Owners’ PTCs at 91% of their Face Value during the month after they are earned.

 

c.               If the EAC increases by $300 million to $599 million over the EAC reflected in VCM 19, GPC will purchase 100% of Co-Owners’ PTCs at 95% of their Face Value during the month after they are earned.

 

d.              If the EAC increases by $600 million or more over the EAC reflected in VCM 19, GPC will purchase 100% of Co-Owners’ PTCs at 98% of their Face Value during the month after they are earned.

 

e.               As a condition to any obligation to purchase Co-Owners’ PTCs under this paragraph B.1, each Co-Owner shall provide GPC with (i) documentation evidencing a transfer by such Co-Owner to GPC of all right, interest and entitlement to such PTCs free of all liens and other encumbrances and (ii) a warranty of title as to such PTC and affidavit by Co-Owners warranting that they have transferred to GPC all of their right, interest and entitlement as to such PTCs free and clear of all liens and without breach of any agreements.

 

f.                For clarity, GPC’s obligation under this paragraph B.1 will only apply to the MEAG SPVJ PTCs remaining following any GPC purchases of SPVJ PTCs under a separate agreement between GPC and MEAG.

 

·                  C. Termination Procedures

 

1.              In the event of a Project termination in which Owners holding more than 50% of the ownership interests in the Project voted or desire to continue the Project after such cancellation:

 

a)             Work on the Project will continue for a period of thirty (30) days (and SNC shall not be obligated to commence orderly termination of Work during such thirty (30) day period)

 

b)             During the thirty (30) day period Owners will negotiate in good faith regarding the terms of the resumption of the Project;

 

c)              In the event the Project is not resumed at the end of the thirty (30) day negotiation period the Owner(s) voting to continue the Work shall reimburse any

 

 

Owner that did not vote to continue the Work for such Owner’s incremental Project Costs of continuing the Work during the thirty (30) day period.

 

·                  D. Project Controls (applicable to all Co-Owners)

 

KPMG will continue to be retained by the Project Owners, in accordance with the engagement letter executed on July 24, 2018, to consult, advise and report to the Owners on issues pertaining to (1) project management and controls, (2) organizational controls, (3) commercial management plans, and (4) interim project reports.  KPMG will remain as project advisors until released by 67% of the Owners.  If KPMG is no longer able or willing to fulfill such role they shall be replaced with an equivalent nationally recognized construction management group.

 

IN WITNESS WHEREOF, the Parties have duly executed this Co-Owner Term Sheet as of the date first above written.

 

	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and   delivered in the presence 
    	
 
    	
GEORGIA POWER   COMPANY
    
	
of:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/   M. Stanford Blanton
    	
 
    	
By:
    	
/s/ Chris Cummiskey
    
	
Witness
    	
 
    	
Name:
    	
Chris Cummiskey
    
	
Cheryl Smiley
    	
 
    	
Title:
    	
EVP
    
	
Notary   Public
    	
 
    	
 
    	
 
    
	
My   Commission expires:
    	
 
    	
Attest:
    	
/s/ Meredith M. Lackey
    
	
 
    	
 
    	
Its:
    	
General Counsel   Corporate Secretary, SVP
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and   delivered in the presence
    	
 
    	
OGLETHORPE POWER   CORPORATION
    
	
of:
    	
 
    	
(AN ELECTRIC MEMBERSHIP
    
	
 
    	
 
    	
CORPORATION)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Elizabeth B.   Higgins
    	
 
    	
By:
    	
/s/ Michael L. Smith
    
	
Witness
    	
 
    	
Name:
    	
Michael L. Smith
    
	
Jean L.Wheeler
    	
 
    	
Title:
    	
President and CEO
    
	
Notary   Public
    	
 
    	
 
    	
 
    
	
My   Commission expires:  May 7, 2020
    	
 
    	
Attest:
    	
/s/ Kimberly D. Adams
    
	
 
    	
 
    	
Its:
    	
Secretary
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and   delivered in the presence
    	
 
    	
MUNICIPAL ELECTRIC AUTHORITY
    
	
of:
    	
 
    	
OF GEORGIA
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Rebekah Clemons
    	
 
    	
By:
    	
/s/ James E. Fuller
    
	
Witness
    	
 
    	
Name:
    	
James E. Fuller
    
	
Cindy R. Carter
    	
 
    	
Title:
    	
President & Chief   Executive Officer
    
	
Notary   Public
    	
 
    	
 
    	
 
    

 

 

	
My   Commission expires:
    	
 
    	
Attest:
    	
/s/ Pete M. Degnan
    
	
 
    	
 
    	
Its:
    	
Sr. V.P. & General   Counsel
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and   delivered in the presence
    	
 
    	
MEAG POWER SPVJ,   LLC
    
	
of:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
MUNICIPAL ELECTRIC AUTHORITY
    
	
 
    	
 
    	
 
    	
OF GEORGIA, its   sole member
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Rebekah Clemons
    	
 
    	
By:
    	
/s/ James E. Fuller
    
	
Witness
    	
 
    	
Name:
    	
James E. Fuller
    
	
Cindy R. Carter
    	
 
    	
Title:
    	
President & Chief   Executive Officer
    
	
Notary   Public
    	
 
    	
 
    	
 
    
	
My   Commission expires:
    	
 
    	
Attest:
    	
/s/ Pete M. Degnan
    
	
 
    	
 
    	
Its:
    	
Sr. V.P. & General   Counsel
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and delivered   in the presence
    	
 
    	
MEAG POWER SPVM,   LLC
    
	
of:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
MUNICIPAL ELECTRIC AUTHORITY
    
	
 
    	
 
    	
 
    	
OF GEORGIA, its   sole member
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Rebekah Clemons
    	
 
    	
By:
    	
/s/ James E. Fuller
    
	
Witness
    	
 
    	
Name:
    	
James E. Fuller
    
	
Cindy R. Carter
    	
 
    	
Title:
    	
President & Chief Executive   Officer
    
	
Notary   Public
    	
 
    	
 
    	
 
    
	
My   Commission expires:
    	
 
    	
Attest:
    	
/s/ Pete M. Degnan
    
	
 
    	
 
    	
Its:
    	
Sr. V.P. & General   Counsel
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    
	
 
    	
 
    	
 
    	
 
    
	
Signed, sealed and   delivered in the presence
    	
 
    	
MEAG POWER SPVP,   LLC
    
	
of:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By: 
    	
MUNICIPAL ELECTRIC AUTHORITY
    
	
 
    	
 
    	
 
    	
OF GEORGIA, its   sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
/s/ Rebekah Clemons
    	
 
    	
By:
    	
/s/ James E. Fuller
    
	
Witness
    	
 
    	
Name:
    	
James E. Fuller
    
	
Cindy R. Carter
    	
 
    	
Title:
    	
President & Chief   Executive Officer
    
	
Notary   Public
    	
 
    	
 
    	
 
    
	
My   Commission expires:
    	
 
    	
Attest:
    	
/s/ Pete M. Degnan
    
	
 
    	
 
    	
Its:
    	
Sr. V.P. & General   Counsel
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    

 

 

	
Signed, sealed and   delivered in the presence
    of:
    	
 
    	
CITY OF DALTON, BY   AND THROUGH ITS BOARD OF WATER, LIGHT AND SINKING FUND COMMISSIONERS, d/b/a   DALTON UTILITIES
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Lashan Petty
    	
 
    	
By:
    	
/s/ Tom Bundros
    
	
Witness
    	
 
    	
Name:
    	
Tom Bundros
    
	
Lashan Petty
    	
 
    	
Title:
    	
CEO, Dalton Utilities
    
	
Notary   Public
    	
 
    	
 
    
	
My   Commission expires:
    	
05-09-2021
    	
 
    	
Attest:
    	
/s/ John Thomas
    
	
 
    	
 
    	
 
    	
Its:
    	
Chief Energy Services   Officer
    
	
 
    	
 
    	
(CORPORATE   SEAL)
    

 

 

EXHIBIT A

 

A “Force Majeure Event” means any event or circumstance to the extent that it: (a) prevents or materially delays or materially increases the costs of the performance of work in connection with the Project (whether by GPC, SNC, or any Project contractors or subcontractors) or the performance of any GPC or SNC obligation in connection with the various Project ownership and agency agreements; (b) is beyond the reasonable control of and not the result of the fault or negligence of GPC or SNC; and (c) could not have been prevented by GPC’s or SNC’s exercise of reasonable diligence. To the extent that the preceding conditions are satisfied, Force Majeure Events include the following events or circumstances: (i) war, civil insurrection, riots, sabotage, acts of terrorism; (ii) acts of God, including flash floods, hurricanes, tornadoes, typhoons, lightning strikes, earthquakes and the like; (iii) epidemics, quarantines, embargoes, trade disputes, blockades; (iv) labor disputes, strikes, labor shortages; (v) Governmental actions or inactions (or significant delays associated with issuance of such actions) that affect the licensing, completion, startup, operations, or financing of the Project; (vi) changes in laws or regulations governing the Project; (vii) significant market fluctuations; (viii) bankruptcy or abandonment by contractors or subcontractors; (ix) significant supply chain disruptions, including shortages of equipment and materials; (x) administrative proceedings or litigation regarding ITAAC or other regulatory challenges to commencement of operation of the Project.

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