Document:

EXHIBIT 10.4.3

 

EXECUTION
VERSION

 

 

PLANT
ALVIN W. VOGTLE NUCLEAR UNITS

AMENDED
AND RESTATED OPERATING AGREEMENT

 

 

among

 

 

GEORGIA
POWER COMPANY,

 

OGLETHORPE
POWER CORPORATION

(AN
ELECTRIC MEMBERSHIP CORPORATION),

 

MUNICIPAL
ELECTRIC AUTHORITY OF GEORGIA

 

and

 

CITY
OF DALTON, GEORGIA

 

 

Dated
as of April 21, 2006

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I - DEFINITIONS AND
  INTERPRETATIONS

  	
  3

  
	
  Section 1.1

  	
  Definitions

  	
  3

  
	
  Section 1.2

  	
  Interpretations

  	
  3

  
	
  Section 1.3

  	
  Construction

  	
  4

  
	
  Section 1.4

  	
  Operating Agreement Superseded

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - OPERATING AGENT

  	
  4

  
	
   

  	
   

  
	
  ARTICLE III - AUTHORITY AND
  RESPONSIBILITY FOR OPERATION

  	
  5

  
	
  Section 3.1

  	
  Operation

  	
  5

  
	
  Section 3.2

  	
  Other Contracts

  	
  5

  
	
  Section 3.3

  	
  Agreements to Recognize Successor Agent

  	
  6

  
	
  Section 3.4

  	
  Agreements to Acknowledge Information
  Rights

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - OPERATION, RIGHTS AND
  OBLIGATIONS

  	
  7

  
	
  Section 4.1

  	
  Availability of Output

  	
  7

  
	
  Section 4.2

  	
  Scheduling and Dispatching

  	
  7

  
	
  Section 4.3

  	
  Fuel Costs

  	
  8

  
	
  Section 4.4

  	
  Transactions With Other Systems

  	
  9

  
	
  Section 4.5

  	
  Metering

  	
  9

  
	
  Section 4.6

  	
  Insurance

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - BILLING, PAYMENT AND
  ACCOUNTING

  	
  12

  
	
  Section 5.1

  	
  Sharing of Costs – General

  	
  12

  
	
  Section 5.2

  	
  Payment and Settlement of Costs

  	
  12

  
	
  Section 5.3

  	
  Operating Account

  	
  14

  
	
  Section 5.4

  	
  Non-Payment

  	
  15

  
	
  Section 5.5

  	
  Billing Disputes

  	
  17

  
	
  Section 5.6

  	
  Right of Lenders to Make Payments

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - CERTAIN ADDITIONAL
  AGREEMENTS AMONG THE PARTIES

  	
  19

  
	
  Section 6.1

  	
  No Adverse Distinction

  	
  19

  
	
  Section 6.2

  	
  Cooperation

  	
  20

  

 

 

	
  Section 6.3

  	
  Liability

  	
  20

  
	
  Section 6.4

  	
  Certain Liabilities Included in Operating
  Costs

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII - ACCESS TO PLANT VOGTLE

  	
  23

  
	
  Section 7.1

  	
  Plant Access Requirements

  	
  23

  
	
  Section 7.2

  	
  Safety Conscious Work Environment

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII - ASSIGNMENT AND
  TERMINATION

  	
  24

  
	
  Section 8.1

  	
  Limitation on Assignability

  	
  24

  
	
  Section 8.2

  	
  Term

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX - GENERAL

  	
  25

  
	
  Section 9.1

  	
  Governing Law

  	
  25

  
	
  Section 9.2

  	
  No Delay

  	
  25

  
	
  Section 9.3

  	
  Regulatory Agencies

  	
  26

  
	
  Section 9.4

  	
  Rural Utilities Service Approval

  	
  26

  
	
  Section 9.5

  	
  Notice

  	
  26

  
	
  Section 9.6

  	
  No Partnership

  	
  27

  
	
  Section 9.7

  	
  Amendments

  	
  27

  
	
  Section 9.8

  	
  Successors and Assigns

  	
  28

  
	
  Section 9.9

  	
  Counterparts

  	
  28

  
	
  Section 9.10

  	
  Time is of the Essence

  	
  28

  
	
  Section 9.11

  	
  Further Assurances

  	
  28

  
	
  Section 9.12

  	
  Computation of Ownership Interest

  	
  28

  
	
  Section 9.13

  	
  Several Agreements

  	
  29

  
	
  Section 9.14

  	
  Confidentiality

  	
  29

  
	
  Section 9.15

  	
  Remedies

  	
  31

  
	
   

  	
   

  	
   

  
	
  Appendix A: Schedule of Definitions

  	
   

  
	
   

  	
   

  
	
  Exhibit I: Form of Notice of OPC
  Default

  	
   

  

 

ii

 

PLANT
ALVIN W. VOGTLE NUCLEAR UNITS

AMENDED
AND RESTATED OPERATING AGREEMENT

 

THIS PLANT ALVIN W. VOGTLE NUCLEAR UNITS
AMENDED AND RESTATED OPERATING AGREEMENT, dated as of April 21, 2006, is
among GEORGIA POWER COMPANY, a corporation organized and existing under the
laws of the State of Georgia (“GPC”), OGLETHORPE POWER CORPORATION (AN ELECTRIC
MEMBERSHIP CORPORATION), an electric membership corporation organized and
operating under the laws of the State of Georgia (“OPC”), the MUNICIPAL
ELECTRIC AUTHORITY OF GEORGIA, a public body corporate and politic and an
instrumentality of the State of Georgia (“MEAG”), and the CITY OF DALTON,
GEORGIA, an incorporated municipality in the State of Georgia acting by and
through its Board of Water, Light and Sinking Fund Commissioners (“Dalton”)
(GPC, OPC, MEAG and Dalton being hereinafter individually called a “Party” and
collectively called the “Parties”).

 

W I T N E S S E T H:

 

WHEREAS, the Parties have heretofore entered
into an agreement entitled PLANT ALVIN W. VOGTLE NUCLEAR UNITS NUMBERS ONE AND
TWO PURCHASE AND OWNERSHIP PARTICIPATION AGREEMENT dated August 27, 1976,
as amended (the “Existing Units Ownership Agreement”), providing for the
ownership by GPC, OPC, MEAG and Dalton of undivided ownership interests (as
provided therein), respectively, in two 1150 MW maximum rated nuclear
generating units known as the Alvin W. Vogtle Nuclear Units Numbers One and
Two, located near Waynesboro in Burke County, Georgia, therein more
particularly identified (individually an “Existing Unit” and collectively the “Existing
Units”).

 

WHEREAS, in connection with the Existing
Units Ownership Agreement, the Parties entered into an agreement entitled PLANT
ALVIN W. VOGTLE NUCLEAR UNIT NUMBERS

 

 

ONE AND TWO OPERATING AGREEMENT dated August 27, 1976 (the “Operating
Agreement”), providing for the operation and maintenance of Plant Vogtle with
GPC, OPC, MEAG and Dalton sharing in the costs incurred under the Operating
Agreement in proportion to their undivided ownership interests.

 

WHEREAS, the Parties have entered into that
certain Plant Vogtle Owners Agreement Authorizing Development, Construction,
Licensing and Operation of Additional Generating Units dated as of May 13,
2005, as amended (the “Development Agreement”), whereby the Parties authorized
GPC (as agent) to undertake certain development activities on their behalf and
made certain other consents and grants with regard to the development,
licensing, construction, operation and maintenance of the Additional Units,
among other things;

 

WHEREAS, pursuant to Section 1.6 of the
Development Agreement, the Parties agreed to negotiate in good faith Definitive
Agreements, including this Agreement;

 

WHEREAS, concurrently herewith, the Parties
have entered into the agreement entitled PLANT ALVIN W. VOGTLE ADDITIONAL UNITS
OWNERSHIP PARTICIPATION AGREEMENT dated as of the date hereof (the “Additional
Units Ownership Agreement”) providing for the ownership by GPC, OPC, MEAG and
Dalton of undivided ownership interests in the Additional Units; and

 

WHEREAS, the Parties desire to amend and
restate the Operating Agreement in its entirety as provided herein and intend
to provide for sole authority for management, control, operation and
maintenance of Plant Vogtle (including both the Existing Units and the
Additional Units) in all respects not covered by the Ownership Agreements or
the Nuclear Managing Board Agreement and for the entitlement and use of
capacity and energy from Plant Vogtle and the

 

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sharing of the costs thereof by the Parties in accordance with their
respective undivided ownership interests, except as otherwise herein provided.

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein set forth, each of GPC, OPC, MEAG and
Dalton hereby agrees as follows:

 

ARTICLE I

 

DEFINITIONS
AND INTERPRETATIONS

 

Section 1.1                                   Definitions. In addition to the
initially capitalized terms and phrases defined in the preamble of this
Agreement and except as otherwise defined herein, capitalized terms used herein
shall have their respective meanings in the Schedule of Definitions
attached hereto as Appendix A.

 

Section 1.2                                   Interpretations.
In this Agreement, unless the context otherwise requires, the singular
shall include the plural and any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “hereof,” “herein,” “hereto”
and “hereunder” and words of similar import when used in this Agreement shall,
unless otherwise expressly specified, refer to this Agreement as a whole and
not to any particular provision of this Agreement. Whenever the term “including”
is used in this Agreement in connection with a listing of items included within
a prior reference, such listing shall be interpreted to be illustrative only,
and shall not be interpreted as a limitation on or exclusive listing of the
items included within the prior reference. Any reference in this Agreement to “Section,”
“Article,” “Appendix,” “Exhibit” or “Schedule” shall be references to this
Agreement unless otherwise stated, and all such Appendices, Exhibits and Schedules
are incorporated in this Agreement by reference. In the event that any index or
publication referenced in this Agreement ceases to be published, each such
reference shall be deemed a reference to a successor or alternate index or
publication reasonably agreed to by the

 

3

 

Parties. Unless specified otherwise, a reference to a given agreement
or instrument, and all schedules, exhibits, appendices and attachments thereto,
shall be a reference to that agreement or instrument as modified, amended,
supplemented and restated, and in effect from time to time. Unless otherwise
stated, any reference in the Agreement to any entity shall include its
permitted successors and assigns, and in the case of any Governmental
Authority, any person succeeding to its functions and capacities. The
descriptive headings of the various Sections of this Agreement have been
inserted for convenience of reference only and shall in no way modify or
restrict any of the terms or provisions hereof.

 

Section 1.3                                   Construction.
In the event of a conflict between the text of this Agreement and any
Schedule, Exhibit or Appendix thereto, the terms of this Agreement shall
prevail. GPC, OPC, MEAG and Dalton acknowledge that each was actively involved
in the negotiation and drafting of this Agreement and that no law or rule of
construction shall be raised or used in which the provisions of this Agreement
shall be construed in favor of or against any of GPC, OPC, MEAG or Dalton
because one is deemed to be the author thereof.

 

Section 1.4                                   Operating
Agreement Superseded. This Agreement amends and restates in its
entirety the Operating Agreement. Upon the execution and effectiveness of this
Agreement, the Operating Agreement will be superseded and replaced by this
Agreement and will have no further force or effect.

 

ARTICLE II

 

OPERATING AGENT

 

The Parties hereby irrevocably appoint,
subject to Section 6.3 hereof, GPC their agent (the “Agent”) in connection
with Plant Vogtle to act on their behalf in the management, control, operation
and maintenance of Plant Vogtle. GPC hereby accepts such appointment and agrees
that it shall discharge its responsibilities as agent in accordance with
Prudent Utility Practice.

 

4

 

ARTICLE III

 

AUTHORITY
AND RESPONSIBILITY FOR OPERATION

 

Section 3.1                                   Operation.
The Agent shall have sole authority and responsibility to manage, control,
operate and maintain Plant Vogtle. In respect thereof, the Agent is authorized
to take and shall take, in the name and on behalf of the Parties, all
reasonable actions which, in the discretion and judgment of the Agent, are
deemed necessary or advisable to effect the management, control, operation and
maintenance of Plant Vogtle, subject to the applicable provisions of this
Agreement and the Ownership Agreements. The Agent shall have no authority under
this Agreement to sell or otherwise dispose of any other Party’s energy for
such Party’s account, except to the extent provided in Section 5.4 hereof.

 

Section 3.2                                   Other
Contracts. In discharging its obligations as agent hereunder, the Agent
shall have the right, on its own behalf and on behalf of the Parties, to
provide, or to contract with any of its Affiliates for the purchase of, At
Cost, any equipment or facilities or the performance of services, At Cost in
connection with Plant Vogtle. In the event the Agent proposes to acquire
services for this Agreement from an Affiliate which involve new investment in
excess of twenty five million dollars ($25,000,000) (in 2006 dollars utilizing
the Gross Domestic Product Implicit Price Deflator as reported in the Survey
of Current Business published by the Bureau of Economic Analysis, United
States Department of Commerce, Washington, D.C. as a deflator) in physical
facilities (other than additions to Plant Hatch or Plant Vogtle) in order for
an Affiliate to provide new services to Plant Vogtle other than those services
supplied by the resources of GPC or its Affiliates as of the Effective Date,
the Agent will confer with the Parties in order to determine whether the
Parties are able and willing to participate in

 

5

 

such investment and to provide an opportunity for such participation; provided,
that the Agent shall endeavor to notify the Parties prior to any new investment
in an Affiliate for such services.

 

Section 3.3                                   Agreements
to Recognize Successor Agent. All agreements made by the Agent pursuant
to its authority hereunder (except for agreements with Affiliates of the Agent)
shall, by their terms, be made assignable by the Agent to any replacement or
successor agent pursuant to this Agreement and either of the Ownership
Agreements, as applicable. The Agent will use its reasonable best efforts to
cooperate fully with any replacement or successor agent to effect the
assignment of all such agreements (other than agreements with Affiliates of the
Agent) and otherwise to secure for such replacement or successor agent the
benefits of any other such agreements (other than agreements with Affiliates of
the Agent).

 

Section 3.4                                   Agreements
to Acknowledge Information Rights. The Agent shall cause all third
parties to the agreements made by the Agent pursuant to its authority hereunder
to acknowledge the information and audit rights of the Parties under this
Agreement, the Ownership Agreements and the Nuclear Managing Board Agreement,
and to commit to cooperate with the Agent, the Parties and their
representatives in connection therewith and to provide information described thereunder
(including any information deemed confidential or proprietary) to the Agent,
the Parties and their representatives, which shall be held in accordance with Section 9.14
of this Agreement. Information requested by a Party may not be refused on
the grounds that such third party claims such information to be proprietary if
such Party agrees to execute an agreement satisfactory to any such third party
to protect such information from unwarranted disclosure.

 

6

 

ARTICLE IV

 

OPERATION,
RIGHTS AND OBLIGATIONS

 

Section 4.1                                   Availability
of Output. Subject to the further provisions of this Agreement and the
provisions of the applicable Ownership Agreement, at any given time the Parties
shall each be entitled to the net capacity and net energy output of each Vogtle
Unit in proportion to their respective Ownership Interests in such Vogtle Unit.

 

Section 4.2                                   Scheduling
and Dispatching.

 

(a)                                  The Agent shall have
sole authority for the scheduling and dispatching of the output of each of the
Vogtle Units and, subject to the further provisions of this Section 4.2,
shall schedule and dispatch such output on a continuous economic dispatch
basis, to the extent each such Vogtle Unit is capable of such dispatch, in
accordance with the Agent’s standard scheduling and dispatching procedures to
serve, in part, the electric capacity and energy load within the State of
Georgia.

 

(b)                                 The Parties anticipate
that the Additional Units will be scheduled and dispatched at all times to their
maximum practicable capability, taking into account license requirements,
planned and forced outages (including partial outages) and fuel cycle
limitations. If conditions change such that this is no longer the standard mode
of scheduling and dispatching the Additional Units, the Parties owning an
Ownership Interest in the Additional Units shall negotiate in good faith a new
methodology for the scheduling and dispatching of the energy from the
Additional Units, including consideration of pseudo-dispatch and direct
dispatch by participants, as technology may allow.

 

(c)                                  Not later than thirty
(30) months and not earlier than sixty (60) months prior to any Fuel Period,
the Agent shall give each of the other Parties written notification of the
estimated operating level during such Fuel Period of the Vogtle Unit to which
such Fuel Period

 

7

 

relates based upon the economic dispatch of such Vogtle Unit. Any Party
with an Ownership Interest in such Vogtle Unit shall have the right to receive
during such Fuel Period energy from such Vogtle Unit in excess of its
proportionate share of the energy generated by such Vogtle Unit operating on an
economic dispatch basis, up to a maximum of such Party’s proportionate share of
the energy which could be generated by such Vogtle Unit operating at its
maximum practicable capability at any given time, if (i) such Party, not
less than six (6) months after receipt of the above-mentioned notification
from the Agent, gives the other Parties written notice of its desire to receive
such additional energy from such Vogtle Unit and the amount of such additional
energy and agrees to be responsible, as of the date of such notice, for any and
all additional costs resulting from such increased generation of energy,
including all prepayments in connection with the acquisition of nuclear fuel,
whether or not it requires or takes the additional energy during the Fuel
Period and whether or not any additional energy is generated, and agrees to
indemnify and hold the other Parties harmless from and against any and all
costs, expenses, liabilities and damages of any kind occasioned in any way by
the operation of such Vogtle Unit at such increased level; (ii) such
increased operation will not adversely affect the capability of such Vogtle
Unit then or in the future; (iii) such Party requiring such increased
energy shall take such energy only at such time or times as will not interfere
with any other Party’s ability to receive its entitlement to the energy from
such Vogtle Unit at the times it would otherwise have received it; and (iv) such
increased generation is unanimously agreed to by the other Parties, which such
agreement shall not be unreasonably withheld.

 

Section 4.3                                   Fuel
Costs. Each Party shall own an undivided ownership interest in nuclear
fuel and shall be responsible for the payment of Fuel Costs for each Vogtle
Unit for each Fuel Period in proportion to its respective entitlement to the
energy to be generated by such

 

8

 

Vogtle Unit during such Fuel Period as provided in Sections 4.1
and 4.2 of this Agreement. At the beginning of each Fuel Period, the Agent
shall deliver to each of the Parties an amortization schedule for the Fuel
Costs paid by each Party pursuant to the Ownership Agreements and the
amortization rates related to such Fuel Costs for that Fuel Period. The Parties
shall provide the Agent with such information as is reasonably required by the
Agent to develop the amortization schedules described above. The Agent will
provide the Parties with such information as is reasonably required by them in
order to account for such amortization on their books. The Agent shall keep an
hourly record of the kilowatt-hours of energy delivered to each Party from each
Vogtle Unit and shall report such amounts each month.

 

Section 4.4                                   Transactions
With Other Systems. Each Party shall be entitled to dispose of its
respective proportionate share or any part thereof of the capacity and
energy generated by each of the Vogtle Units through scheduled transactions
with one or more of the other Parties or with other systems or agencies.

 

Section 4.5                                   Metering.
The Agent shall install and/or maintain the necessary metering equipment to
determine the amounts of net capacity and energy from each Vogtle Unit measured
at the high voltage terminals of the Plant Vogtle step-up substation(s).
Metering records shall be available at all times to authorized representatives
of the Parties. Each meter used pursuant to this Section 4.5 shall, by
comparison with accurate standards, be tested and calibrated by the Agent at
approximate intervals of twelve months. If a meter shall be found not
registering within 1% accuracy, it shall be restored to an accurate condition
or an accurate meter shall be substituted. The results of all tests and
calibrations shall be open to examination by the Parties and a report of every
test shall be furnished immediately to the Parties. Any meter tested and found
to be within l% accuracy shall be considered to be accurate. If, as a result of
any test, any

 

9

 

meter is found to register not within 1% accuracy, the readings of such
meter previously taken shall be corrected according to the percentage of
inaccuracy so found but no such correction shall extend beyond sixty (60) days
previous to the day on which inaccuracy was discovered by such test. If any
metering equipment fails to register or if the meter registration is erratic,
the capacity and energy produced shall be determined by the Parties. All costs
incurred in connection with such metering equipment and compliance with the
provisions of this Section 4.5 shall be considered an Operating Cost and
as such shall be borne by the Parties in accordance with the provisions of Section 5.1
of this Agreement.

 

Section 4.6                                   Insurance.

 

(a)                                  During the period of
operation of the Vogtle Units, the Agent shall carry in the name of the Parties
as their interests appear insurance covering general public liability, nuclear
property (including decontamination), nuclear worker coverage, suppliers and
transporters insurance, secondary financial protection, and nuclear liability,
in such policies, in such amounts and with such deductible or self-insurance
features as is consistent with the Agent’s customary practices and Prudent
Utility Practices. Workers’ compensation, either through statutory coverage or
self-insurance, will be carried by each of the Parties separately, although GPC’s
costs for Plant Vogtle workers’ compensation shall be included in Operating
Costs.

 

(b)                                 The Agent will keep in
force such nuclear liability insurance and indemnity agreements as are
necessary to comply with applicable regulations of the Nuclear Regulatory
Commission (including such indemnity agreements as are required by the Price
Anderson Act), or any other regulatory agency having jurisdiction, with the
Parties being named therein as their interests appear.

 

10

 

(c)                                  The aggregate cost of
all such insurance and indemnity agreements, including any retrospective
assessment or premiums under the Agent’s insurance policy with Nuclear Electric
Insurance Limited and any payments under the indemnity agreements, shall be
included in Operating Costs. All credit premiums shall be deducted from
Operating Costs in the appropriate accounting period.

 

(d)                                 The Agent, if
requested, shall promptly provide copies of all insurance policies and make
available all notices with respect thereto to the Parties for insurance carried
by the Agent pursuant to this Section 4.6. Any Party may also
maintain additional or other insurance, at its own cost and expense, which it
deems necessary or advisable to protect its interest in or with respect to
Plant Vogtle, provided that such additional or other insurance does not reduce
or diminish in any way the coverage of the insurance procured and maintained by
the Agent pursuant to this Section 4.6; provided, however, that to the
extent more than one Party desires to purchase accidental outage insurance, the
Parties purchasing accidental outage insurance shall each maintain a policy
limit for such coverage equal to a fraction of the overall limit of coverage
available to the owners of Plant Vogtle, the numerator of which is their
respective aggregate ownership interests in Plant Vogtle, and the denominator
of which is the aggregate ownership interests of all Parties who desire from
time to time to purchase such accidental outage coverage.

 

(e)                                  During the operation
of Plant Vogtle, the Agent shall require that all contracts with third parties
related to Plant Vogtle provide the same protection for the Parties as for the
Agent. This protection shall include but not be limited to obligations of such
third parties to indemnify all the Parties. In addition, all Parties shall be
named as additional insureds under the insurance policies covering the
activities of any contractor, subcontractor, engineer,

 

11

 

equipment supplier or manufacturer associated with Plant Vogtle in the
same manner and with the same requirements as the Agent.

 

ARTICLE V

 

BILLING,
PAYMENT AND ACCOUNTING

 

Section 5.1                                   Sharing
of Costs – General.

 

(a)                                  Except as otherwise
provided in this Agreement, the Parties shall be responsible for the Operating
Costs of each Vogtle Unit in proportion to their respective Ownership Interests
in such Vogtle Unit. The Parties shall be responsible for the payment of Fuel
Costs in accordance with the provisions of Section 4.3 of this Agreement, Section 5(f) of
the Existing Units Ownership Agreement and Section 7.6 of the Additional
Units Ownership Agreement.

 

(b)                                 It is the absolute
intent of the Parties to share all items of cost, obligation and liability
incurred in connection with each Vogtle Unit (other than financing of each
Party’s respective Ownership Interest in such Vogtle Unit), and not otherwise
expressly provided for, in proportion to their respective Ownership Interests
in such Vogtle Unit or as otherwise provided in Section 5.4 below.

 

Section 5.2                                   Payment
and Settlement of Costs.

 

(a)                                  The Agent shall be
responsible for making payment to third parties of all Operating Costs to the
extent that funds are available therefor in the applicable Operating Accounts.

 

(b)                                 The Agent will, on or
before the fifteenth (15th) day of each month, commencing the month
immediately preceding the first month in which Operating Costs are anticipated
by the Agent to be incurred for each Vogtle Unit, notify the Parties of the
applicable

 

12

 

Operating Costs anticipated to be due and
payable with respect to such Vogtle Unit during the succeeding calendar month,
plus or minus any adjustments of Operating Costs incurred in prior months but
not previously charged or credited to the Parties under the provisions of this Section 5.2,
with separate computations as to each Vogtle Unit. Each Party owning an
Ownership Interest in such Vogtle Unit shall make payment into the applicable
Operating Account in immediately available funds during such succeeding month,
in accordance with the schedule determined and delivered to them by the
Agent, of their respective shares of such Operating Costs as provided in this Section 5.2,
plus any additional share resulting from an increased entitlement of energy
pursuant to Section 4.2 hereof. Each such notification made by the Agent
of anticipated Operating Costs and adjustments shall be accompanied and
adjusted by an accounting of the Operating Costs incurred and credits, if any,
accrued for preceding months. The Parties other than the Agent shall have until
the one hundred eightieth (180th) day after the receipt of such
accounting from the Agent for any charge or credit to question or contest the
correctness of such charge or credit, at which time the correctness of such
charge or credit shall be conclusively presumed; provided, that such period of
time shall be interpreted pursuant to the agreement of the Parties referenced
by Section 9.15(i) of the Nuclear Managing Board Agreement. The Agent
will from time to time provide the other Parties with such information as is
reasonably required for them to account for such payments on their books. No
payment made pursuant to this Section 5.2 shall constitute a waiver of any
right of such other Parties to question or contest the correctness of any
charge or credit to them by the Agent in respect of Operating Costs.

 

(c)                                  The Agent will make
available to the Parties other than the Agent all financial and technical
records regarding plant operations and Operating Costs sufficient to allow

 

13

 

such other Parties to determine that such
costs attributed to each Vogtle Unit by the Agent hereunder are correctly
allocated to such Vogtle Unit.

 

Section 5.3                                   Operating
Account.

 

(a)                                  Prior to the time the
first Operation and Maintenance Budget for each Vogtle Unit is provided by the
Agent pursuant to Section 4.3 of the Nuclear Managing Board Agreement, the
Agent shall establish or maintain a separate account or accounts for such
Vogtle Unit (each an “Operating Account” and collectively the “Operating
Accounts”). The amounts held in the Operating Accounts, which in the discretion
of the Agent may be interest bearing or non-interest bearing, may be
physically maintained by the Agent in one or more bank accounts in a bank or
banks the deposits in which are insured, subject to applicable limits, by the
Federal Deposit Insurance Corporation and which meets or meet all applicable
requirements imposed upon depositaries of the Agent. All moneys paid by the
Parties for Operating Costs for each Vogtle Unit shall be deposited by the
Parties in the applicable Operating Account and the Agent shall withdraw and
apply funds therefrom only as necessary to pay such Operating Costs. In the
event that during any month the balance in the applicable Operating Account is
insufficient to pay the applicable Operating Costs required to be paid that
month (other than as the result of the non-payment by a Party of amounts due
pursuant to Section 5.2 hereof), the Agent shall promptly so notify the
other Parties, by telephone and promptly confirm in writing, stating the amount
required to be paid by each. Each of the Parties shall pay its respective share
of such deficit into the applicable Operating Account in immediately available
funds not later than on the fifth (5th) banking day after receipt of
such notice from the Agent. GPC shall have no responsibility or liability to
make up any such deficit out of its own funds in excess of its proportionate
share of such deficit.

 

14

 

(b)                                 Each
Party shall continue to own and maintain its Ownership Interest in each
applicable Operating Account; provided, however, that the Agent
shall have the sole right and authority to make withdrawals from the Operating
Accounts; and provided further, that a Party shall not own any Ownership
Interest in any amount in any applicable Operating Account in respect of
interest paid into such Operating Account by or on behalf of such Party pursuant
to the provisions of Section 5.4 hereof, which amount shall be owned in
common, and credited against payments required to be made into such Operating
Account, by the other Parties not then in default in the performance of their
obligations under this Agreement in the proportion which their Ownership
Interests in the applicable Vogtle Unit bear to each other.

 

(c)                                  Upon
decommissioning of a Vogtle Unit, and settlement of all the obligations
relating to Operating Costs of such Vogtle Unit, the Agent shall close the
applicable Operating Account and distribute to each Party its Ownership
Interest of any balance remaining in said Operating Account, except that if a
Party shall then be in default, an amount equal to the liability of such
defaulting Party on account of such default (or if such amount exceeds such
Party’s share of the balance in such Operating Account, its entire share of
such balance) shall first be distributed to the non-defaulting Parties in the
proportion which their Ownership Interests in such Vogtle Unit bear to each
other.

 

Section 5.4                                   Non-Payment.

 

(a)                                  Payments due from a
Party hereunder not made when due shall bear interest, compounded monthly until
paid, at a rate per annum equal to the Prime Rate (as in effect from time to
time) plus five percentage points (5%).

 

(b)                                 If the failure to pay
is in relation to the Existing Units, the non-paying Party shall have no right
to any output of capacity and energy of the Existing Units, or to

 

15

 

exercise any right of a Party with respect to
the Existing Units, until all amounts due hereunder from that Party with
respect to the Existing Units have been paid, together with interest at the
rate specified in clause (a) hereof, into the applicable Operating
Account. If the failure to pay is in relation to either of the Additional
Units, the non-paying Party shall have no right to the capacity and energy of
either Additional Unit, or to exercise any other right of a Party with respect
to the Additional Units until all amounts due hereunder from that Party with
respect to the Additional Units have been paid, together with interest at the
rate provided in clause (a) hereof, into the applicable Operating
Account(s). Notwithstanding any of the provisions of this Section 5.4, if
the Agent is the non-paying Party, the Agent shall continue to manage, control,
operate and maintain Plant Vogtle in accordance with the provisions of this
Agreement.

 

(c)                                  Any output of
capacity and energy from the Existing Units and/or Additional Units, as
applicable, of a non-paying Party (whether with respect to the failure of
payment with respect to either of the Existing Units and/or either of the
Additional Units) may be sold by the Agent, including a sale to another
Party, until all amounts due from such non-paying Party, together with interest
at the rate provided in clause (a) hereof, have been paid. Any such sale
of such output of capacity and energy of the Existing Units and/or Additional
Units shall not relieve the non-paying Party from any liability (including
consequential damages) on account of such non-payment, except that the net
proceeds of such sale shall be applied in reduction of the liability of such
non-paying Party arising from such non-payment (including interest as provided
in clause (a) hereof). Any such net proceeds in excess of the amount of
such liability of the non-paying Party shall be applied as a credit against
such non-paying Party’s share of future applicable Operating Costs.

 

16

 

(d)                                 In addition to the
contractual rights set forth in this Section 5.4, the Participating
Parties also establish their entitlement to the output of capacity and energy
of the Additional Units as expressed in Sections 5.4(b) and 5.4(c) of
this Agreement as covenants running with the land, which shall be binding not
only on the Participating Parties but also on the successors in title of the
Participating Parties and on any other person acquiring or attempting to
perfect or enforce any interest in or other right with respect of the Ownership
Interest of any Participating Party who takes with notice of this Agreement or
of the co-ownership of the Additional Units by the Participating Parties.

 

(e)                                  In the event OPC
fails to make any payment when due under this Agreement, the Agent will give
prompt written notice of such default to the Rural Utilities Service in
substantially the form of the notice attached hereto as Exhibit I, provided
that inadvertent failure to provide such notice shall not be deemed a breach by
the Agent of its obligations hereunder.

 

(f)                                    In the event the
Agent undertakes to sell any of the output of capacity and energy of a
non-paying Party pursuant to Section 5.4(c), the Agent will use reasonable
efforts to make any such sale on commercially reasonable terms, taking into
account the facts and circumstances existing at the time of such sale. The
maximum term of any such sale shall be a period of time reasonably determined
by the Agent after consultation with the non-paying Party; provided
that, for the first one hundred and twenty (120) days after the Agent
undertakes to make such sales, the maximum term for any such sale shall be one (1) month.

 

Section 5.5                                   Billing
Disputes.

 

(a)                                  Unless otherwise
mutually agreed to by the disputing Party and the Agent, any dispute,
controversy or claim arising out of, under, or relating to this Article 5
(a “Billing 

 

17

 

Dispute”), shall be negotiated in good faith in accordance with the
provisions of this Section 5.5. The disputing Party shall first submit the
Billing Dispute to the Accounting Services Committee. If, after thirty (30)
days (or any time earlier if the disputing Party or the Agent wishes to have
the Nuclear Managing Board consider the issue) such discussions are
unsuccessful, then the Billing Dispute will be submitted to the Nuclear
Managing Board for resolution through discussions among the members of the
Nuclear Managing Board. If after thirty (30) days (or any time earlier if the
disputing Party or the Agent wishes to have the Nuclear Managing Board consider
the issue) such discussions are unsuccessful, then the chief executive officers
(the “CEOs”) of the Parties and the Agent shall consider the issue.

 

(i)                                     The
process of “good-faith negotiations” requires that the disputing Party and the
Agent set out in writing to the other its reason(s) for adopting a specific
conclusion or for selecting a particular course of action, together with the
subordinate facts supporting such conclusion or course of action.

 

(ii)                                  The
good faith negotiation process shall also include at least two meetings of the
CEOs. Unless otherwise mutually agreed, the first meeting shall take place
within ten (10) calendar days after the Nuclear Managing Board has failed
to resolve the Billing Dispute. Unless otherwise mutually agreed, the second
meeting shall take place no more than ten (10) calendar days later. In the
event the CEO for the Agent refuses to attend a negotiation meeting of the
CEOs, then the disputing Party may proceed immediately to litigation
concerning the Billing Dispute.

 

(iii)                               In
the event the disputing Party and the Agent remain unsuccessful in resolving a
Billing Dispute for a period of eighty (80) days after the initiation of the

 

18

 

good faith negotiation process, then either
Party may proceed immediately to litigation concerning the Billing
Dispute.

 

(b)                                 Each
Party and the Agent hereby agree that all statements made in the course of
dispute resolution, as contemplated in Section 5.5(a), shall be
confidential and shall not be disclosed to or shared with any third parties
(other than counsel and any other person whose presence is necessary to
facilitate the dispute resolution process). Each Party and the Agent agree and
acknowledge that no statements made in or evidence specifically prepared for
dispute resolution under Section 5.5 shall be admissible for any purpose
in any subsequent litigation.

 

Section 5.6                                   Right
of Lenders to Make Payments. The Agent and the Parties acknowledge that
one or more of the Parties anticipate financing (or have financed) their
respective Ownership Interests by borrowing money from one or more third party
lenders. The Agent and the Parties agree that any such lender shall be entitled
(but will not be obligated) to make payments (including any interest owed as
provided in Section 5.4(a)) directly to the Agent with respect to amounts
owed by its borrower under this Agreement, and any such payments shall be
credited by the Agent to the account of the Party on whose behalf the payment
was made and shall be treated as a payment made directly by such Party.

 

ARTICLE VI

 

CERTAIN ADDITIONAL AGREEMENTS AMONG THE
PARTIES

 

The Parties hereby covenant and agree as follows:

 

Section 6.1                                   No
Adverse Distinction. Notwithstanding any other provision of this
Agreement, in discharging their respective responsibilities pursuant to this
Agreement, neither the Agent, as agent or as a Party, nor any of the other
Parties shall make any adverse distinction between any Vogtle Unit (or
combination thereof) and any other generating unit (including a

 

19

 

Vogtle Unit) in which it has an interest because of its co-ownership of
such Vogtle Unit with the other Parties.

 

Section 6.2                                   Cooperation.
The Parties will cooperate with the Agent in all activities in connection
with Plant Vogtle, including, without limitation, the execution and filing of
applications for authorizations, permits and licenses and the execution of such
other documents as may be reasonably necessary to confirm authority of the
Agent to act as agent for the Parties in connection with their respective
Ownership Interests in Plant Vogtle and the assumption by the Parties of their
respective undivided ownership interests of the obligations to be assumed
hereunder; provided that, except at the written consent of the Agent, none of
the other Parties shall incur any obligation in connection with Plant Vogtle
which would or could obligate the Agent to any third party.

 

Section 6.3                                   Liability.

 

(a)                                  (i)                                     Notwithstanding
any provision of law or any other provision of this Agreement, in the event the
Agent fails at any time to perform its duties, responsibilities,
obligations, or functions hereunder as agent with respect to the Existing
Units, except only (A) its obligation to provide information to a Party or
Parties (the remedy for which is provided in Section 9.15(b)(iii)), (B) its
undertaking in Section 6.1 hereof or (C) in the event the Agent takes
any action or fails to take any action by which it intends to put any other
Party at a disadvantage in relation to the Agent, the sole and exclusive
remedy, legal or equitable, of the other Parties shall be the right, subject to
approval of the NRC, to remove the Agent as an agent with respect to the
Existing Units hereunder upon written notice to the Agent executed by all the
other Parties, provided that if a corporate affiliate of the Agent is a Party,
its execution of such notice shall not be unreasonably withheld. Following
receipt of such notice the Agent shall continue as

 

20

 

agent with respect to the Existing Units for the other Parties until
its successor has been appointed, subject to approval of the NRC, by the action
of Parties owning not less than an aggregate of 85% Ownership Interest in the
Existing Units, provided that the concurrence in such appointment by GPC as a
Party or by any corporate affiliate of GPC which may be a Party shall not
be unreasonably withheld. All actions undertaken by GPC as agent for the
Existing Units prior to the effective appointment of a successor agent shall be
deemed ratified and affirmed by the other Parties. The removal of GPC as Agent with respect to the Existing Units
shall not affect GPC’s rights, duties, responsibilities, obligations, or
functions hereunder as agent with respect to the Additional Units.

 

(ii)                                  Notwithstanding any
provision of law or any other provision of this Agreement, in the event the
Agent fails at any time to perform its duties, responsibilities,
obligations, or functions hereunder as agent with respect to the Additional
Units, except only (A) its obligation to provide information to a Party or
Parties (the remedy for which is provided in Section 9.15(b)(iii)), (B) its
undertaking in Section 6.1 hereof or (C) in the event the Agent takes
any action or fails to take any action by which it intends to put any other
Party at a disadvantage in relation to the Agent, the sole and exclusive
remedy, legal or equitable, of the other Participating Parties shall be the
right, subject to approval of the NRC, to remove the Agent as an agent with
respect to the Additional Units hereunder upon written notice to the Agent
executed by all the other Parties, provided that if a corporate affiliate of
the Agent is a Participating Party, its execution of such notice shall not be
unreasonably withheld. Following receipt of such notice the Agent shall
continue as agent with respect to the Additional Units for the other
Participating Parties until its successor has been appointed, subject to
approval of the NRC, by the action of Parties owning not less than an aggregate
of 90% Weighted Ownership Interest in the Additional

 

21

 

Units, provided that the concurrence in such
appointment by GPC as a Party or by any corporate affiliate of GPC which may be
a Party shall not be unreasonably withheld. All actions undertaken by GPC as
agent with respect to the Additional Units prior to the effective appointment
of a successor agent shall be deemed ratified and affirmed by the other Parties. The removal of GPC as Agent with respect to the Additional
Units shall not affect GPC’s rights, duties, responsibilities, obligations, or
functions hereunder as agent with respect to the Existing Units.

 

(b)                                 In the event the Agent
fails to comply at any time with the provisions of Section 6.1 hereof or
in the event the Agent takes any action or fails to take any action by which it
intends to put any other Party at a disadvantage in relation to the Agent, the
other Parties may (x) remove the Agent as agent as provided pursuant to
the provisions of Section 6.3(a) hereof or (y) pursue remedies, if
any, available to them at law or equity or (z) both (x) and (y).

 

(c)                                  In
the event GPC is removed or resigns as Agent with respect to the Additional
Units pursuant to Section 5.3(c) of the Additional Units Ownership
Agreement, GPC simultaneously shall be deemed to have been removed or to have
resigned as Agent with respect to the Additional Units under this Agreement.

 

Section 6.4                                   Certain
Liabilities Included in Operating Costs. Any liability of the Agent or any Party to any
third party which results from any action or failure to act on the part of
the Agent relating to, resulting from, arising out of or attributable to any of
the management, control, operation or maintenance of any applicable Vogtle
Unit(s), and any legal fees, defense costs and costs of investigation relating
to any such liability or alleged liability, shall be included in the
Operating Costs and apportioned among the Parties pursuant to Sections 5.1, 5.2
and 5.4 hereof; provided, however, that the foregoing shall not apply to (i) any
liability or alleged

 

22

 

liability
of the Agent or of any Party based upon any failure or alleged failure of
responsibility to shareholders, customers, members, participants, trustees,
bondholders or other lenders of the Agent, any Party or any of their Affiliates
or (ii) any liability resulting from any failure to comply with the
provisions of Section 6.1 or in the event the Agent takes any action or
fails to take any action by which it intends to put a Party at a disadvantage
in relation to the Agent or any legal fees, defense costs or costs of
investigation relating to any unsuccessful defense against any such liability.

 

ARTICLE VII

 

ACCESS TO PLANT VOGTLE

 

Section 7.1                                   Plant Access
Requirements. The Agent has all requisite
authority to implement such site access control and security requirements as
the NRC may impose, including but not limited to the ability to exclude,
or remove, persons, equipment, vehicles and materials from Plant Vogtle.
Personnel who enter the Owner Controlled Area of Plant Vogtle must comply with
background check, fingerprinting and fitness-for-duty policies and procedures
as implemented by the Agent, including for unescorted access to the protected
area of the Plant, screening in accordance with the requirements of Title 10
Code of Federal Regulations Part 73 and Plant Vogtle’s Fitness-for-Duty
program in accordance with Title 10 Code of Federal Regulations Part 26,
as such Parts may be amended or superseded. Except as expressly required
by applicable law or regulation, the Agent’s implementation of the requirements
described in this Section 7.1 shall not impair the access and information
rights of the Parties provided under this Agreement, either of the Ownership
Agreements or the Nuclear Managing Board Agreement.

 

Section 7.2                                   Safety Conscious
Work Environment.

 

(a)                                  As a condition for access to Plant Vogtle or for
engaging in activities within the jurisdiction of the NRC, each employee of a
Party shall, at all times, comply with Section 211 of

 

23

 

the federal Energy Reorganization Act of 1974
(“ERA”) which prohibits discrimination against an employee for engaging in
certain “protected activities” and the Nuclear Regulatory Commission’s
implementing regulation 10 C.F.R. § 50.7. A Party shall immediately notify
the Agent’s representative, in writing (as specified in Section 9.5), of
any allegation of unlawful discrimination in employment filed by an employee of
the Party with a federal, state or county court or governmental authority in
connection with activities at Plant Vogtle. Such allegations would include any
complaint under Section 211 of the ERA filed with the Department of Labor
or any federal agency. No Party as a condition of employment, by agreement
affecting employment, or otherwise shall prohibit, restrict, or discourage an
employee, or former employee, from providing the NRC, either directly or
indirectly, with information related to, or alleged to relate to, potential
violations of NRC requirements or to unsafe conditions at Plant Vogtle.

 

(b)                                 Each
Party shall comply with the reasonable requests of the Agent to assure that its
employees are continuously aware of conditions potentially adverse to safety or
public health, and its employees having access to Plant Vogtle or activities
regulated by the NRC feel free to raise safety concerns to Plant Vogtle
management, into Plant Vogtle’s problem identification and resolution program,
to Plant Vogtle’s worker concerns program or to governmental authorities, and
to assure a work environment that encourages employees to openly communicate
and report deficiencies or conditions adverse to safety.

 

ARTICLE VIII

 

ASSIGNMENT AND TERMINATION

 

Section 8.1                                   Limitation
on Assignability. If, pursuant to either of the Ownership Agreements,
any of the Parties makes a sale, transfer or assignment of all or any portion
of its

 

24

 

Ownership Interest in any of Plant Vogtle (other than solely as
security for indebtedness or other obligations as permitted by the applicable
Ownership Agreement), such Party shall also assign this Agreement pro tanto, and shall cause the transferee
to assume to the same extent the rights and obligations of such Party
hereunder. No assignment of this Agreement shall be made except in connection
with a sale, transfer or assignment of the assignor’s Ownership Interest in any
of Plant Vogtle pursuant to either of the Ownership Agreements.

 

Section 8.2                                   Term.
This Agreement shall become effective upon the Effective Date and shall
remain in effect until the later of (a) the expiration of the last
effective operating license or possession-only license for any of the Vogtle
Units issued by any governmental agency having jurisdiction over such Vogtle
Units or (b) the completion of Decommissioning for the last of the Vogtle
Units to be Decommissioned. Upon termination of this Agreement, the Agent shall
retain such powers hereunder as shall be necessary in connection with the
disposition of the property included in Plant Vogtle at the time of such
termination, and the respective rights and obligations of the Parties hereunder
shall continue with respect to any action taken hereunder in connection with
such disposition, and for all necessary expenses incurred in connection with
such disposition.

 

ARTICLE IX

 

GENERAL

 

Section 9.1                                   Governing
Law. The validity, interpretation, and performance of this Agreement
and each of its provisions shall be governed by the law of the State of
Georgia.

 

Section 9.2                                   No
Delay. No disagreement or dispute of any kind between or among any of
the Parties concerning any matter, including the amount of any payment due from
the Parties or the correctness of any charge made to the Parties, shall permit
any of the Parties to delay or withhold any payment pursuant to this Agreement.

 

25

 

Section 9.3                                   Regulatory
Agencies. This Agreement is subject to the approval and lawful
regulations of any regulatory authority having jurisdiction over this Agreement
or any Party.

 

Section 9.4                                   Rural
Utilities Service Approval. This Agreement shall have no force and
effect until approved by the Administrator of the Rural Utilities Service.

 

Section 9.5                                   Notice.
Except as otherwise provided in Section 5.3 hereof, any notice,
request, consent or other communication permitted or required by this Agreement
shall (a) be made in writing signed by the party making it; (b) specify
the Section to which it relates; (c) be delivered (i) in person,
(ii) by a nationally recognized next business day delivery service
electing, and being timely delivered to such service for, next business day
delivery, or (iii) by fax and with a confirming copy sent by a nationally
recognized next business day delivery service electing, and being timely
delivered to such service for, next business day delivery; (d) unless
given in person, be given to the address specified below; and (e) be
deemed given or received (i) if delivered in person, on the date of
personal delivery, (ii) if sent by a nationally recognized next business
day delivery service electing, and being timely delivered to such service for,
next business day delivery, on the first business day after so sent, or (iii) if
sent by fax with a copy sent by a nationally recognized business day delivery
service electing, and being timely delivered to such service for, next business
day delivery, on the first business day after so sent. The party giving the
notice or other communication will pay all delivery costs. The addresses and
the requirements for copies are as follows:

 

Georgia Power Company

241 Ralph McGill Boulevard

Atlanta, Georgia 30308

Facsimile No.: 404-506-7985

Attention: 
President

 

26

 

If to OPC:

Oglethorpe Power Corporation

2100 East Exchange Place

Tucker, Georgia 30084-5336

Facsimile No.: 770-270-7872

Attention: President and CEO

 

If to MEAG:

Municipal Electric Authority of Georgia

1470 Riveredge Pkwy, NW

Atlanta, Georgia 30328-4686

Facsimile No.: 770-661-2812

Attention: 
President and CEO

 

If to Dalton:

The City of Dalton, Georgia

1200 V.D. Parrott, Jr. Parkway

Dalton, Georgia 30721

Facsimile No.: 706-278-7230

Attention: 
CEO

 

unless a different officer or address shall
have been designated by the respective Party by notice in writing.

 

Section 9.6                                   No
Partnership. Notwithstanding any provisions of this Agreement the Parties
do not intend to create hereby any joint venture, partnership, association
taxable as a corporation, or other entity for the conduct of any business for
profit, and contemplate seeking a ruling of the Internal Revenue Service that
this Agreement has no such effect. The Parties agree timely to take all
voluntary action as may be necessary to be excluded from treatment as a
partnership under the Internal Revenue Code of 1986, as amended, and, if it
should appear that one or more changes to this Agreement would be required in
order to obtain the ruling referred to above, the Parties agree to negotiate
promptly in good faith with respect to such changes.

 

Section 9.7                                   Amendments.
This Agreement may be amended by and only by a written instrument duly
executed by each of the Parties hereto.

 

27

 

Section 9.8                                   Successors
and Assigns. This Agreement shall inure to the benefit of and be
binding upon the Parties and their respective successors and upon their assigns
pursuant to the provisions of Section 8.1 hereof. Nothing in this
Agreement, express or implied, is intended to confer upon any other person any
rights or remedies hereunder.

 

Section 9.9                                   Counterparts.
This Agreement may be executed simultaneously 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.

 

Section 9.10                            Time
is of the Essence. Time is of the essence of this Agreement.

 

Section 9.11                            Further
Assurances. From time to time during the term of this Agreement the
Parties will execute such instruments of conveyance and other documents, upon
the request of the others, as may be necessary or appropriate, to carry
out the intent of this Agreement.

 

Section 9.12                            Computation
of Ownership Interest. Notwithstanding any other provision of this
Agreement whenever, pursuant to any provision of this Agreement, any action is
required to be agreed to or taken by Parties hereunder with respect to the
Existing Units or the Additional Units, as applicable, (i) only those
Parties not in default in the payment of any amounts (together with interest,
if appropriate) required under any provisions of this Agreement or the
applicable Ownership Agreement at the time such action is to be agreed to or
taken shall have the right to participate in such agreement or the taking of
such action and (ii) the computation of the aggregate percentage Ownership
Interest in the Existing Units or the Additional Units, as applicable, owned by
Parties agreeing to or taking any such action shall be based solely upon the
Ownership Interests in the Existing Units or the Additional Units, as
applicable, owned by Parties not so in default.

 

28

 

Section 9.13                            Several
Agreements. Notwithstanding anything to the contrary set forth herein,
the agreements and obligations of the Parties set forth in this Agreement shall
be the several, and not joint, agreements and obligations of the Parties.

 

Section 9.14                            Confidentiality.

 

(a)                                  The Parties recognize
that there are, or may be in the future, certain contracts, records,
drawings, data or other documents or information relating to the management,
control, operation and maintenance of the Vogtle Units, which is labeled by the
Party providing such information as proprietary, confidential or privileged
(the “Confidential Information”), and, in some cases, is subject to a
contractual obligation to another person which requires that such information
not be disclosed without the express approval of such other person. Information
provided orally shall be deemed “Confidential Information” if the disclosing
Party states that such information is confidential at the time of such
disclosure and, within ten (10) days thereafter, provides the receiving
Party written confirmation of the confidential nature of the information so
disclosed.

 

(b)                                 Each of the Parties
agrees, notwithstanding any other provision of this Agreement, that it shall
use any Confidential Information only in the exercise of its respective rights
and obligations hereunder, and that any Confidential Information which is
disclosed to it shall not be disclosed other than as permitted under this Section 9.14
to any other entity or to any person who is not an officer, director, employee
or attorney, respectively, of the Party; provided, however, that the
respective lessors, mortgagees and security deed holders, including prospective
lessors, mortgagees or security deed holders, of any of the Parties and any
credit rating agencies and other financing entities that need to know such
information in connection with the financing of a Party’s Ownership Interest
shall be entitled to examine (but not to copy) at the offices of the

 

29

 

Agent or the Party whose lessor, mortgagee or security deed holder or
any such credit rating agency or financing entity desires to examine such
information, any Confidential Information; and provided further, however,
that the Parties may disclose any such information as required by any
governmental or regulatory authority (including the Rural Utilities Service)
having jurisdiction or as necessary to comply with legal requirements.

 

(c)                                  Each of the Parties
agrees to take all reasonable steps to protect the proprietary, privileged or
confidential nature of all Confidential Information furnished to it, including,
without limitation: (i) limiting access to and disclosure of such
Confidential Information only to: (A) its officers, directors, employees
or attorneys who have a need for access to such Confidential Information
reasonably related to the exercise of any rights of the Parties hereunder, (B) the
respective lessors, mortgagees and security deed holders, including prospective
lessors, mortgagees and security deed holders, and credit rating agencies and
financing parties, of the Parties only as permitted by the provisions of Section 9.14(b),
and (C) to those persons to which access is required by any governmental
or regulatory authority or as necessary in order to comply with legal
requirements; and (ii) ensuring that those persons receiving any such
Confidential Information understand the proprietary, confidential or privileged
nature of such Confidential Information.

 

(d)                                 In the event that a
Party considers it necessary or desirable to disclose or provide copies or
summaries of or access to any Confidential Information to any person not its
employee, director, officer or attorney, and such disclosure is not otherwise
permitted by this Section 9.14 and such disclosure is to a contractor,
agent, representative or consultant of such Party which reasonably requires
such Confidential Information to assist the Party in the exercise of its rights
as a Party or to perform its responsibilities with regard to the
management, control,

 

30

 

operation or maintenance of Plant Vogtle, then the Party may provide
such information to such person only when such person shall have signed an
agreement obligating such person to: (i) safeguard the confidentiality of
such Confidential Information; (ii) use such Confidential Information only
for the purpose of executing its responsibilities regarding Plant Vogtle; and (iii) return
or destroy all copies of any documents containing such Confidential Information
upon the completion of its responsibilities. The Party shall advise the person
or persons designated by the Party originally furnishing such Confidential
Information, by telephone or otherwise, of the Confidential Information to be
disclosed and shall provide such furnishing Party a copy of each such executed
confidentiality agreement within ten (10) days of execution, together with
a list of all documents provided by the Party containing Confidential
Information which have been given to such person, which such Party shall update
each time additional documents are provided to such person.

 

(e)                                  The obligations of
the Parties pursuant to the provisions of this Section 9.14 shall survive
the termination of this Agreement and continue to bind the Parties, in the case
of Confidential Information which is not a trade secret, for a period of five
years following the termination of this Agreement, and, in the case of trade
secrets, for so long as they remain trade secrets.

 

(f)                                    The restrictions of
this Section 9.14 shall be in addition to any restrictions imposed by law
upon the Parties in the absence of contract.

 

Section 9.15                            Remedies.

 

(a)                                  Except as limited by Section 6.3(a) of
this Agreement, a Party or Parties may take any action, in law or equity,
to enforce this Agreement and to recover for any loss or

 

31

 

damage (including consequential damages),
including attorneys’ fees and collection costs, incurred by reason of any
breach of this Agreement or any default under this Agreement.

 

(b)                                 Without limiting the generality of the
foregoing:

 

(i)                                     the Agent or any non-defaulting Party shall
have the right at any time, and from time to time to sue a non-paying Party to
recover any amount paid by such Party or enforce payment of any and all amounts
(together with interest and attorneys’ fees, if applicable) which a non-paying
Party is obligated by this Agreement to pay but has not paid and/or to recover
any increased costs incurred by the Agent or the non-defaulting Party as a
consequence of the failure of another Party to make payments for which it is
obligated under the term of this Agreement;

 

(ii)                                  any non-defaulting Party shall have the right
at any time, and from time to time to set off against amounts owed other than
under this Agreement by a non-defaulting Party to a Party in default any
amounts due such non-defaulting Party from the defaulting Party under the terms
of this Agreement;

 

(iii)                               Each Party acknowledges, understands and
agrees that a breach of the requirements on the part of any Party,
including the Agent, to provide information to another Party or Parties will
result in irreparable damage and harm to the non-breaching Party and that the
non-breaching Party will not have an adequate remedy at law in the event of any
such breach. Each Party, therefore, agrees that in the event of a breach or
threatened breach of any such requirements, the non-breaching Party may at
its election and in any court of competent jurisdiction: (a) obtain
specific performance by the breaching Party of such requirements to provide
information; (b) obtain temporary, preliminary and permanent injunctive
relief to prevent noncompliance with or breaches of such requirements to
provide information; or

 

32

 

(c) pursue any one or more of the
foregoing or any other remedy available to it. Each Party hereby waives any
requirement that a non-breaching Party post any bond or other security in
connection with the enforcement of such requirements to provide information. In
the event that any action should be brought to enforce the provisions of such
requirements to provide information, no Party will allege, and each Party
hereby waives, the defense or counterclaim that there is an adequate remedy at law.

 

(c)                                  A non-breaching Party will not, by seeking or
obtaining any particular relief, be deemed to have precluded itself from
obtaining any other relief to which it may be entitled, including
enforcing any remedies or seeking any relief as provided under Section 5.4.

 

(d)                                 No delay or failure to
exercise any right or remedy herein provided shall impair the right to exercise
any such right or remedy or be construed to be a waiver of such right or remedy
or of any default by a party, including
enforcing any remedies or seeking any relief as provided under Section 5.4.

 

33

 

IN WITNESS WHEREOF, the undersigned parties
hereto have duly executed this Agreement in Atlanta, Georgia, on the date first
above written.

 

	
  Signed, sealed and delivered in the presence of:

  	
  GEORGIA POWER COMPANY

  
	
   

  	
   

  
	
  /s/  Cofield Widner

  	
   

  	
   

  
	
  Witness

  	
  By:

  	
  /s/  Michael
  D. Garrett

  	
   

  
	
  /s/  Kim N. Kimball

  	
   

  	
  Name:  Michael D.
  Garrett

  
	
  Notary Public  

  	
  Its:  President and CEO

  	
   

  
	
  My Commission expires:  

  	
   

  
	
  Notarial Seal

  	
   

  
	
   

  	
  Attest:

  	
  /s/  Daniel
  Lowery

  	
   

  
	
   

  	
  Its:  Secretary

  
	
   

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the presence of:  

  	
  OGLETHORPE POWER CORPORATION

  
	
   

  	
  (AN ELECTRIC MEMBERSHIP

  
	
  /s/ Michael W. Price

  	
   

  	
  CORPORATION)

  
	
  Witness

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas A. Smith

  	
   

  
	
  /s/ Thomas J. Brendiar

  	
   

  	
  Name:  Thomas A. Smith

  
	
  Notary Public

  	
  Its:  President and Chief
  Executive Officer

  
	
  My Commission expires: January 27, 2009

  	
   

  
	
  Notarial Seal

  	
  Attest:

  	
  /s/ Patricia N. Nash

  	
   

  
	
   

  	
  Its:  Secretary

  
	
   

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the presence of:

  	
  MUNICIPAL ELECTRIC AUTHORITY OF

  GEORGIA

  
	
  /s/  Peter M. Degnan

  	
   

  	
   

  
	
  Witness

  	
  By:

  	
  /s/ Robert P. Johnston

  	
   

  
	
   

  	
  Name:  Robert P. Johnston

  
	
  /s/  Nancy Zindars

  	
   

  	
  Its:  President and Chief
  Executive Officer

  
	
  Notary Public

  	
   

  
	
  My Commission expires:

  	
  Attest:

  	
  /s/  James
  E. Fuller

  	
   

  
	
  Notarial Seal

  	
  Its: Senior Vice Preseident and CFO

  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the presence of:

  	
  CITY OF DALTON, GEORGIA

  
	
   

  	
  BY:  BOARD OF
  WATER, LIGHT AND

  
	
  /s/ Tom A. Bundros

  	
   

  	
  SINKING FUND COMMISSIONERS d/b/a

  
	
  Witness

  	
  DALTON UTILITIES

  
	
   

  	
   

  
	
  /s/ Pam Witherow

  	
   

  	
  By:

  	
  /s/ Don Cope

  	
   

  
	
  Notary Public

  My Commission expires:  July 14,
  2007

  	
  Name:  Don Cope

  Title:  President and Chief Executive
  Officer

  
	
  Notarial Seal

  	
  Attest:

  	
  /s/ Kelly Jones

  	
   

  
	
   

  	
  Title:   Vice President Human Resources

  (SEAL)

  
						

 

34

 

APPENDIX A

 

SCHEDULE OF DEFINITIONS

 

Unless otherwise expressly stated, when used in this Agreement, the
following capitalized terms and phrases shall have the respective meanings, as
and when used in this Agreement, stated in this Schedule of Definitions:

 

“Accounting Services Committee” has the
meaning given such term in the Nuclear Managing Board Agreement.

 

“Additional Unit”
and “Additional Units” have the respective
meanings given such terms in the Additional Units Ownership Agreement.

 

“Additional Units Ownership
Agreement” has the meaning given such term in the recitals to this
Agreement.

 

“Affiliate” of
any specified entity, means any other entity directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
entity. For purposes of this definition, “control” when used with respect to
any entity means the power to direct the management and policies of such entity,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing.

 

“Agent” means GPC or a successor agent
for the Parties as provided for in this Agreement.

 

“Amended and Restated Operating Agreement” or
this “Agreement” means this Plant Alvin W.
Vogtle Nuclear Units Amended and Restated Operating Agreement.

 

“At Cost” means (i) the actual
direct costs incurred for such service, equipment or materials, wherever
feasible and (ii) where appropriate, a reasonable allocation of indirect
costs,

 

A-1

 

such as overhead, relating to the purchase or
provision of such services, equipment or materials, on a consistent basis with
the allocations among GPC and its Affiliates.

 

“Commercial Operation” means midnight following the
achievement of all of the following with respect to an Additional Unit: (i) successful
completion of the requisite performance test provided for in the agreement
between GPC and the vendor relating to such Additional Unit nuclear steam
supply system; (ii) demonstration by the Agent that such Additional Unit
is capable of producing energy and delivering same to the transmission system;
and (iii) such Unit is declared available for dispatch.

 

“Confidential Information” has the meaning given such term in
Section 9.14.

 

“Dalton”
means the City of Dalton, Georgia, acting by and through its Board of Water,
Light and Sinking Fund Commissioners, and its successors and assigns.

 

“Declaration of Covenants” has the
meaning given such term in the Additional Units Ownership Agreement.

 

“Decommissioning” means the removal of a
Vogtle Unit from service, the dismantlement, demolition and disposal of such
Vogtle Unit, and the reduction of residual radioactivity at Plant Vogtle with
respect to such Vogtle Unit, to a level that permits the release of the
property at Plant Vogtle related to such Vogtle Unit to unrestricted use and
termination of the licenses issued by the NRC or release of the property under
conditions as may be required or approved by the NRC and termination of
such licenses (as described in 10 CFR § 50.2).

 

“Definitive Agreements” means the
Additional Units Ownership Agreement, the Amended and Restated Operating
Agreement, the Nuclear Managing Board Agreement and the Declaration of
Covenants.

 

A-2

 

“Development Agreement”
means the Plant Vogtle Owners Agreement Authorizing Development, Construction,
Licensing and Operation of Additional Generating Units among GPC, OPC, MEAG and
Dalton dated as of May 13, 2005, as amended.

 

“Effective Date”
means April 21, 2006.

 

“Existing Owner”
means an owner of the Existing Units (in its capacity as an owner of the
Existing Units).

 

“Existing Units Ownership
Agreement” consists of The Alvin W. Vogtle Nuclear Units Numbers One
and Two Purchase and Ownership Participation Agreement among Georgia Power,
Oglethorpe Power, MEAG, and Dalton, dated August 27, 1976, as amended January 18,
1977 and February 24, 1977, and a Purchase, Amendment, Assignment and
Assumption agreement between Georgia Power and MEAG dated April 9, 1985 as
amended.

 

“Existing Units”
means Vogtle Unit No. 1 and Vogtle Unit No. 2, as defined in the
Existing Units Ownership Agreement.

 

“FERC” means the
Federal Energy Regulatory Commission.

 

“Final Percentage Interest”
has the meaning given such term in the Additional Units Ownership Agreement.

 

“Fuel Costs”
means, with respect to a Vogtle Unit, as applicable, all costs incurred by the
Parties during any year that are allocable to the acquisition, processing,
design, fabrication, transportation, delivering, reprocessing, storage and
disposal of nuclear materials required for such Vogtle Unit, including
transfers to reserves established for such costs related to future years, less
credits related to such costs applied as appropriate, and including that
portion of administrative and general expenses incurred by the Agent which is
properly and reasonably

 

A-3

 

allocable to acquisition and management of nuclear fuel for such Vogtle
Unit, and for which the Agent has not been otherwise reimbursed by the other
Parties.

 

“Fuel Period”
means the period between the commencement of a fueling shutdown period and the
commencement of the next succeeding fueling shutdown period, with respect to
any Vogtle Unit.

 

“GPC” or “Georgia Power” means Georgia Power Company, a corporation
organized and existing under the laws of the State of Georgia, and its
successors and assigns.

 

“MEAG”
means the Municipal Electric Authority of Georgia, a public corporation and an
instrumentality of the State of Georgia, and its successors and assigns.

 

“NRC”
means the United States Nuclear Regulatory Commission or any successor agency
authorized to regulate and license utilization facilities pursuant to the
Atomic Energy Act of 1954 as amended.

 

“Nuclear
Managing Board” means the board established pursuant to Section 2.1
of the Nuclear Managing Board Agreement.

 

“Nuclear Managing Board
Agreement” means the Second Amended and Restated Nuclear Managing Board Agreement,
dated as of the Effective Date.

 

“OPC” means Oglethorpe Power Corporation
(An Electric Membership Corporation), an electric membership corporation
organized and existing under laws of the State of Georgia, and its successors
and assigns.

 

“Operating Account”
and “Operating Accounts” have the respective
meanings given such terms in Section 5.3.

 

“Operating Agreement”
has the meaning given such term in the recitals to this Agreement.

 

A-4

 

“Operation and Maintenance
Budget” means, with respect to each Vogtle Unit, the Operation and
Maintenance Budget described in Section 4.3 of the Nuclear Managing Board
Agreement.

 

“Operating Costs”
means, with respect to each Vogtle Unit, all costs and expenses (other than
Fuel Costs) incurred by the Agent which are properly and reasonably allocable
to such Vogtle Unit, as applicable, and for which the Agent has not been
otherwise reimbursed by the other Parties, and which costs and expenses are
properly recordable in accordance with the Operating Expense Instructions (as
defined in the Uniform System of Accounts) and in appropriate accounts as
set forth in the Uniform System of Accounts.

 

“Ownership Agreements”
means the Additional Units Ownership Agreement and the Existing Units Ownership
Agreements.

 

“Ownership Interest”
means, with respect to each Party, the undivided ownership interest of such
Party as a tenant in common with the other Parties in the Existing Units and,
if applicable, the Additional Units. The Ownership Interest of each Party in
the Existing Units is equal to such Party’s Pro Rata Interest. The Ownership
Interest of each Party, if any, in each Additional Unit is such Party’s Final
Percentage Interest in such Additional Unit as determined pursuant to the
Additional Units Ownership Agreement and the Development Agreement.

 

“Participating Party”
has the meaning given such term in the Additional Units Ownership Agreement.

 

“Party” or “Parties” means GPC, OPC, MEAG and Dalton, and as the context
requires with respect to a Vogtle Unit, those of GPC, OPC, MEAG and Dalton that
have an Ownership Interest in such Vogtle Unit.

 

“Plant Vogtle”
means the Alvin W. Vogtle Nuclear Plant, which consists of:

 

A-5

 

(a)                                  The land described in
Exhibits Al and A2 attached to the Existing Units Ownership Agreement, together
with all such additional land or rights therein as may have been or may hereafter
be acquired for the purpose specified in clause (d) below, less and except
therefrom all property, rights and interests therein which are no longer
subject to the Existing Units Ownership Agreement;

 

(b)                                 The Existing Units and
the Additional Units, including the nuclear power reactors, the
turbine-generators, the buildings housing the same, the associated auxiliaries
and equipment and the step-up substation, with respect to the Existing Units,
all as more particularly described in the Application referred to in the
recitals to the Existing Unit Ownership Agreement and, with respect to the
Additional Units, as more particularly described in the ESP and/or COL
applications submitted to the NRC for such Additional Unit;

 

(c)                                  Inventories of
materials, supplies, fuel (including the initial nuclear fuel cores), tools and
equipment for use in connection with Plant Vogtle;

 

(d)                                 Such additional land
or rights therein as may be acquired, and such additional facilities and
other tangible property as may be acquired, constructed, installed or
replaced in connection with Plant Vogtle, provided that (i) the cost of
such additional land or rights therein or of such additional facilities or
other tangible property shall be properly recordable in accordance with the Uniform System
of Accounts, (ii) such additional land or rights therein or such
additional facilities or other tangible property shall have been acquired,
constructed, installed or replaced for the common use of the Parties and/or
Participating Parties under and subject to the provisions of either or both of
the Ownership Agreements, and (iii) such additional land or rights therein
or such additional facilities or other tangible property (1) shall be
necessary in order to construct or complete Plant Vogtle, or to keep Plant
Vogtle in good operating

 

A-6

 

condition or to satisfy the requirements of any governmental agency
having jurisdiction over Plant Vogtle, or (2) (A) if such additional
interest in land or other property relates solely to the Existing Units, it
shall be agreed to by the Parties owning at least an aggregate 85% Ownership
Interest in the Existing Units, (B) if such additional interest in land or
other property relates solely to the Additional Units, it shall be approved by
the Participating Parties owning at least an aggregate 90% Weighted Ownership
Interest in the Additional Units, (C) if such additional interest in land
or other property relates solely to one of the Additional Units, it shall be
approved by the Participating Parties owning at least an aggregate 90%
Ownership Interest in such Additional Unit, and (D) if such additional
interest in land or other property relates to the Existing Units and the
Additional Units, it shall be approved by the Parties owning at least an
aggregate 87.5% Weighted
Ownership Interest in Plant Vogtle; and

 

(e)                                  Subject
to the provisions of Sections 4(b)(i) and 4(b)(ii) of the Existing
Units Ownership Agreement and Section 5.2 of the Additional Units
Ownership Agreement, existing intangible property rights and such additional
intangible property rights as may be hereafter acquired associated with
the planning, licensing, design, construction, acquisition, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of Plant Vogtle.

 

“Prime Rate” means the prime rate as
published in the Money Rates table of the Wall Street Journal.

 

“Pro Rata Interest”
means, with respect to each Party, the individual ownership (which ownership
percentages may be changed from time to time pursuant to the Existing
Units Ownership Agreement) of such Party in the Existing Units as a tenant in
common with the other Parties, which as of the date hereof are as follows:

 

A-7

 

	
  Party

  	
   

  	
  Existing Units

  	
   

  
	
  GPC

  	
   

  	
  45.7

  	
  %

  
	
  OPC

  	
   

  	
  30.0

  	
  %

  
	
  MEAG

  	
   

  	
  22.7

  	
  %

  
	
  Dalton

  	
   

  	
  1.6

  	
  %

  

 

“Prudent
Utility Practice” means at a particular time any of the practices,
methods and acts engaged in or approved by a significant portion of the
electric utility industry prior to such time, or any of the practices, methods
and acts which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish
the desired result at the lowest reasonable cost consistent with good business
practices, reliability, safety and expedition; “Prudent Utility Practice” is
not intended to be limited to the optimum practice, method or act to the
exclusion of all others, but rather to be a spectrum of possible practices,
methods or acts having due regard for, among other things, manufacturers’
warranties and the requirements of governmental agencies of competent
jurisdiction.

 

“Uniform System of Accounts” means the FERC Uniform System
of Accounts prescribed for Public Utilities and Licensees (Class A and Class B)
as the same now exist or may be hereafter amended by the FERC or by any
governmental agency succeeding to the powers and functions thereof.

 

“Vogtle Unit”
means, as the context requires, (a) either or both of the Existing Units;
and/or (b) each of the Additional Units, provided, that if the
Ownership Interests of the Parties in the Additional Units are identical, then “Vogtle
Unit” shall also mean, with respect to the Additional Units, the Additional
Units collectively.

 

A-8

 

“Vogtle Units”
means the Existing Units and the Additional Units.

 

“Weighted Ownership
Interest in Additional Units” means:

 

WOIAU = ((FAUMW * FAUOI) + (SAUMW *
SAUOI))/(FAUMW + SAUMW)

 

Where:

 

	
  WOIAU =

  	
   

  	
  A Party’s
  weighted ownership interest in the Additional Units

  
	
  FAUMW =

  	
   

  	
  The MW
  nameplate rating of the first Additional Unit

  
	
  FAUOI =

  	
   

  	
  A Party’s
  Ownership Interest in the first Additional Unit

  
	
  SAUMW =

  	
   

  	
  The MW
  nameplate rating of the second Additional Unit

  
	
  SAUOI =

  	
   

  	
  A Party’s
  Ownership Interest in the second Additional Unit

  

 

“Weighted Ownership
Interest in Plant Vogtle” means:

 

WOIPV = ((EUMW * EUOI) + (FAUMW * FAUOI) +
(SAUMW * SAUOI))/(FAUMW + SAUMW + EUMW)

 

Where:

 

	
  WOIPV =

  	
   

  	
  A Party’s weighted Ownership Interest in
  Plant Vogtle

  
	
  EUMW =

  	
   

  	
  The MW nameplate rating of the Existing
  Units

  
	
  EUOI =

  	
   

  	
  A Party’s ownership interest in the
  Existing Units

  
	
  FAUMW =

  	
   

  	
  The MW nameplate rating of the first
  Additional Unit

  
	
  FAUOI =

  	
   

  	
  A Party’s Ownership Interest in the first
  Additional Unit

  
	
  SAUMW =

  	
   

  	
  The MW nameplate rating of the second
  Additional Unit

  
	
  SAUOI =

  	
   

  	
  A Party’s Ownership Interest in the second
  Additional Unit

  

 

A-9

 

EXHIBIT I

 

FORM OF
NOTICE OF OPC DEFAULT

 

[Date]

 

	
  Rural Utilities Service

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attn: Administrator

  

 

Re:                             Notice
of Payment Default by Oglethorpe Power Corporation

 

Ladies and Gentlemen:

 

This notice is delivered pursuant to Section 5.4(e) of
the Plant Alvin W. Vogtle Nuclear Units Amended and Restated Operating
Agreement among Georgia Power Company, Oglethorpe Power Corporation (An
Electric Membership Corporation) (“Oglethorpe”), the Municipal Electric
Authority of Georgia, and the City of Dalton, Georgia, dated as of April 21,
2006 (the “Agreement”). Capitalized terms used and not defined in this
notice are used with the meanings given such terms in the Agreement.

 

This notice informs you that Oglethorpe has
failed to make one or more payments due under the Agreement with respect to the
[Existing Units/Additional Units] (herein, the “Units”) and is accordingly in
default of its obligations under the Agreement with respect to the Units.
Please be advised that until this payment default has been cured, the following
remedial provisions, among others, will be in effect:

 

(a)                                  Oglethorpe
will not be permitted to receive any output of capacity and energy from either
of the Units, or to exercise any other rights of a Participating Party with
respect to either Unit; and

 

(b)                                 The
Agent will be entitled to sell all or a portion of Oglethorpe’s output of
capacity and energy from the Units, and the net proceeds of such sale shall be
used by the Agent to pay Oglethorpe’s share of unpaid and future Operating
Costs.

 

These remedial provisions are set forth in Section 5.4
of the Agreement. At RUS’s option, RUS may cure this payment default by
making payments directly to the Agent. Please contact [name] at [phone
number] if you desire to make a payment on Oglethorpe’s behalf.

 

I-1

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  GEORGIA POWER COMPANY,

  
	
   

  	
  as Agent under the Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

I-2EXHIBIT 10.4.4

 

EXECUTION
VERSION

 

PLANT
ALVIN W. VOGTLE

 

ADDITIONAL
UNITS

 

OWNERSHIP
PARTICIPATION AGREEMENT

 

 

among

 

 

GEORGIA
POWER COMPANY,

 

OGLETHORPE
POWER CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION),

MUNICIPAL
ELECTRIC AUTHORITY OF GEORGIA

 

and

 

CITY
OF DALTON, GEORGIA

 

Dated
as of April 21, 2006

 

 

TABLE
OF CONTENTS

 

	
  ARTICLE I - DEFINITIONS AND
  INTERPRETATIONS

  	
  2

  
	
  Section 1.1

  	
  Definitions

  	
  2

  
	
  Section 1.2

  	
  Interpretations

  	
  2

  
	
  Section 1.3

  	
  Construction

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE II - REPRESENTATIONS AND
  WARRANTIES

  	
  3

  
	
  Section 2.1

  	
  OPC Representations and Warranties

  	
  3

  
	
  Section 2.2

  	
  MEAG Representations and Warranties

  	
  5

  
	
  Section 2.3.

  	
  Dalton Representations and Warranties

  	
  7

  
	
  Section 2.4

  	
  GPC Representations and Warranties

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III - CONDITIONS

  	
  11

  
	
  Section 3.1

  	
  GPC’s Conditions Precedent

  	
  11

  
	
  Section 3.2

  	
  OPC’s Conditions Precedent

  	
  11

  
	
  Section 3.3

  	
  MEAG’s Conditions Precedent

  	
  12

  
	
  Section 3.4

  	
  Dalton’s Conditions Precedent

  	
  12

  
	
  Section 3.5

  	
  Mutual Conditions Precedent

  	
  12

  
	
  Section 3.6

  	
  Conditions Subsequent

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV - OWNERSHIP RIGHTS AND
  OBLIGATIONS

  	
  15

  
	
  Section 4.1

  	
  Tenants in Common

  	
  15

  
	
  Section 4.2

  	
  Alienation and Assignment

  	
  16

  
	
  Section 4.3

  	
  Damage or Destruction

  	
  24

  
	
  Section 4.4

  	
  Insurance

  	
  26

  
	
  Section 4.5

  	
  Taxes

  	
  28

  
	
  Section 4.6

  	
  Nuclear Fuel

  	
  29

  
	
  Section 4.7

  	
  Certain Tax Matters

  	
  30

  
	
  Section 4.8

  	
  Decommissioning Funding Assurance

  	
  31

  
	
  Section 4.9

  	
  Property Rights

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE V - AGENCY

  	
  34

  
	
  Section 5.1

  	
  Appointment

  	
  34

  
	
  Section 5.2

  	
  Authority and Responsibility

  	
  34

  

 

i

 

	
  Section 5.3

  	
  Standards of Conduct

  	
  37

  
	
  Section 5.4

  	
  Certain Liabilities Included in Costs of
  Construction

  	
  40

  
	
  Section 5.5

  	
  Site Representatives

  	
  40

  
	
  Section 5.6

  	
  Management Audit; Access to Records

  	
  42

  
	
  Section 5.7

  	
  Information Requirements

  	
  43

  
	
  Section 5.8

  	
  Information Performance Review

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI - PROJECT MANAGEMENT BOARD

  	
  46

  
	
  Section 6.1

  	
  Establishment and Purpose

  	
  46

  
	
  Section 6.2

  	
  Designated Representatives

  	
  47

  
	
  Section 6.3

  	
  Functions

  	
  48

  
	
  Section 6.4

  	
  Chairman and Chairman’s Duties

  	
  49

  
	
  Section 6.5

  	
  Expenses

  	
  50

  
	
  Section 6.6

  	
  Meetings

  	
  50

  
	
  Section 6.7

  	
  Procedures and Practices

  	
  52

  
	
  Section 6.8

  	
  Rights of Existing Owners Under Development
  Agreement

  	
  52

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII - BILLING, PAYMENT AND
  ACCOUNTING

  	
  52

  
	
  Section 7.1

  	
  Cost of Construction; Cost Sharing

  	
  52

  
	
  Section 7.2

  	
  Construction Budget and Schedules

  	
  52

  
	
  Section 7.3

  	
  Construction Account

  	
  55

  
	
  Section 7.4

  	
  Payments to be Made During Construction

  	
  57

  
	
  Section 7.5

  	
  Capital Account

  	
  60

  
	
  Section 7.6

  	
  Payments to be Made Following Commercial
  Operation

  	
  62

  
	
  Section 7.7

  	
  Non-Payment

  	
  63

  
	
  Section 7.8

  	
  Cost Audits

  	
  72

  
	
  Section 7.9

  	
  Billing Disputes

  	
  73

  
	
  Section 7.10

  	
  Right of Lenders to Make Payments

  	
  75

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII - CERTAIN ADDITIONAL
  AGREEMENTS

  	
  75

  
	
  Section 8.1

  	
  No Adverse Distinction

  	
  75

  
	
  Section 8.2

  	
  Remedies

  	
  75

  
	
  Section 8.3

  	
  Cooperation

  	
  78

  
	
  Section 8.4

  	
  Approvals

  	
  78

  
	
  Section 8.5

  	
  Preservation of Ecology

  	
  78

  

 

ii

 

	
  Section 8.6

  	
  Safety

  	
  78

  
	
  Section 8.7

  	
  Buy America

  	
  79

  
	
  Section 8.8

  	
  Compliance with Laws

  	
  80

  
	
  Section 8.9

  	
  Equal Opportunity Clause

  	
  80

  
	
  Section 8.10

  	
  No Segregation

  	
  82

  
	
  Section 8.11

  	
  Debarment and Suspension

  	
  83

  
	
  Section 8.12

  	
  Plant Access and Safety Conscious Work
  Environment

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX - MISCELLANEOUS

  	
  85

  
	
  Section 9.1

  	
  No Delay

  	
  85

  
	
  Section 9.2

  	
  Further Assurances

  	
  85

  
	
  Section 9.3

  	
  Governing Law

  	
  85

  
	
  Section 9.4

  	
  Notice

  	
  86

  
	
  Section 9.5

  	
  No Partnership

  	
  87

  
	
  Section 9.6

  	
  Time of Essence

  	
  87

  
	
  Section 9.7

  	
  Amendments

  	
  88

  
	
  Section 9.8

  	
  Successors and Assigns

  	
  88

  
	
  Section 9.9

  	
  Counterparts

  	
  88

  
	
  Section 9.10

  	
  Several Agreements

  	
  88

  
	
  Section 9.11

  	
  Computation of Ownership Interest

  	
  88

  
	
  Section 9.12

  	
  Confidentiality

  	
  89

  
	
  Section 9.13

  	
  Termination of Participation

  	
  91

  
	
   

  	
   

  	
   

  
	
  ATTACHMENTS:

  	
   

  
	
   

  	
   

  
	
  Appendix A: Schedule of Definitions

  	
   

  
	
   

  	
   

  
	
  Exhibit A-1 – Description of the Identified Sites

  	
   

  
	
  Exhibit A-2 – Declaration of Covenants

  	
   

  
	
  Exhibit B – Consents and Approvals

  	
   

  
	
  Exhibit C – Carrying Costs

  	
   

  
	
  Exhibit D – Form of Notice of OPC Default

  	
   

  

 

iii

 

PLANT
ALVIN W. VOGTLE

ADDITIONAL
UNITS OWNERSHIP

PARTICIPATION
AGREEMENT

 

THIS PLANT ALVIN W. VOGTLE ADDITIONAL UNITS
OWNERSHIP PARTICIPATION AGREEMENT (the “Agreement”), dated as of April 21,
2006, is by and among GEORGIA POWER COMPANY, a corporation organized and
existing under the laws of the State of Georgia (“GPC”), OGLETHORPE POWER
CORPORATION (AN ELECTRIC MEMBERSHIP CORPORATION), an electric membership
corporation formed under the laws of the State of Georgia (“OPC”), the
MUNICIPAL ELECTRIC AUTHORITY OF GEORGIA, a public body corporate and politic
and an instrumentality of the State of Georgia (“MEAG”), and the CITY OF
DALTON, GEORGIA, an incorporated municipality in the State of Georgia acting by
and through its Board of Water, Light and Sinking Fund Commissioners (“Dalton”)
(GPC, OPC, MEAG and Dalton being hereinafter individually referred to as a “Party”
and collectively called the “Parties”).

 

WITNESSETH

 

WHEREAS, the Parties have entered into that
certain Plant Vogtle Owners Agreement Authorizing Development, Construction,
Licensing and Operation of Additional Generating Units dated as of May 13,
2005, as amended (the “Development Agreement”), whereby the Parties authorized
the Agent (as defined herein) to undertake certain development activities on
their behalf and made certain other consents and grants with regard to the
development, licensing, construction, operation and maintenance of the
Additional Units, among other things;

 

WHEREAS, pursuant to Section 1.6 of the Development Agreement, the
Parties agreed to negotiate in good faith Definitive Agreements, including this
Agreement; and

 

1

 

WHEREAS, the Parties desire and intend to
establish their respective ownership rights in the Additional Units and related
property as provided herein.

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements herein set forth, each of GPC, OPC, MEAG and
Dalton hereby agrees as follows:

 

ARTICLE I

 

DEFINITIONS
AND INTERPRETATIONS

 

Section 1.1                                   Definitions. In addition to the initially capitalized terms
and phrases defined in the preamble of this Agreement and except as otherwise
defined herein, capitalized terms used herein shall have their respective
meanings in the Schedule of Definitions attached hereto as Appendix A to
this Agreement.

 

Section 1.2                                   Interpretations. In this Agreement, unless the context otherwise
requires, the singular shall include the plural and any pronoun shall include
the corresponding masculine, feminine and neuter forms. The words “hereof,” “herein,”
“hereto” and “hereunder” and words of similar import when used in this
Agreement shall, unless otherwise expressly specified, refer to this Agreement
as a whole and not to any particular provision of the Agreement. Whenever the
term “including” is used in this Agreement in connection with a listing of
items included within a prior reference, such listing shall be interpreted to
be illustrative only, and shall not be interpreted as a limitation on or
exclusive listing of the items included within the prior reference. Any
reference in this Agreement to “Section,” “Article,” “Appendix,” “Exhibit” or “Schedule”
shall be references to this Agreement unless otherwise stated, and all such
Appendices, Exhibits and Schedules are incorporated in this Agreement by
reference. In the event that any index or publication referenced in this
Agreement ceases to be published, each such reference shall be deemed a
reference to a successor or alternate index or publication reasonably agreed to
by the

 

2

 

Parties. Unless specified
otherwise, a reference to a given agreement or instrument, and all schedules,
exhibits, appendices and attachments thereto, shall be a reference to that
agreement or instrument as modified, amended, supplemented and restated, and in
effect from time to time. Unless otherwise stated, any reference in this
Agreement to any entity shall include its permitted successors and assigns, and
in the case of any Governmental Authority, any person succeeding to its
functions and capacities. The descriptive headings of the various Sections of
this Agreement have been inserted for convenience of reference only and shall
in no way modify or restrict any of the terms or provisions hereof.

 

Section 1.3                                   Construction.
In the event of a conflict between the text of this Agreement and any
Schedule, Exhibit or Appendix thereto, the terms of this Agreement shall
prevail. GPC, OPC, MEAG and Dalton acknowledge that each was actively involved
in the negotiation and drafting of this Agreement and that no law or rule of
construction shall be raised or used in which the provisions of this Agreement
shall be construed in favor of or against any of GPC, OPC, MEAG or Dalton
because one is deemed to be the author thereof.

 

ARTICLE II

 

REPRESENTATIONS AND WARRANTIES

 

Section 2.1                                   OPC
Representations and Warranties. OPC hereby represents and warrants to
GPC, MEAG and Dalton as follows (which such representations and warranties will
be deemed repeated, as applicable, at the times OPC elects any Initial
Percentage Interest, Minimum Binding Percentage Interest, Supplemental Percentage
Interest, Maximum Binding Percentage Interest and Final Percentage Interest in
each Additional Unit):

 

(a)                                  OPC is an electric
membership corporation duly organized, validly existing and in good standing
under the laws of the State of Georgia and has all requisite

 

3

 

corporate power and authority to enter into and perform its
obligations under this Agreement and each of the other Definitive Agreements to
which it is or will be a party and to conduct its business as it is now being
conducted and as it is contemplated to be conducted in the future.

 

(b)                                 The execution,
delivery and performance by OPC of this Agreement and each of the other
Definitive Agreements to which it is or will be a party have been or when
executed will be duly and effectively authorized by all requisite corporate
action except as disclosed on Exhibit B.

 

(c)                                  The execution,
delivery and performance of this Agreement and each of the other Definitive
Agreements to which OPC is or will be a party do not and will not contravene
the organizational documents of OPC or any applicable law binding on or
affecting OPC or its properties.

 

(d)                                 Subject to the receipt
of the consents and approvals disclosed on Exhibit B with respect to OPC,
the execution, delivery and performance of this Agreement and each of the other
Definitive Agreements to which OPC is or will be a party do not (i) violate
any indenture, mortgage or other material contract, agreement or instrument to
which OPC is a party or by which OPC or any of its property is bound; (ii) constitute
a default by OPC under any such contract, agreement or instrument; or (iii) result
in the creation of any lien upon the property of OPC (other than as permitted
under any of the Definitive Agreements).

 

(e)                                  Except as disclosed
on Exhibit B, all consents, authorizations and approvals of, and
registrations and declarations with, any governmental authority necessary for
the due execution, delivery and performance by OPC of this Agreement and each
of the other Definitive Agreements to which OPC is or will be a party have been
obtained and remain in full force and effect and all conditions thereof have
been duly complied with, and no other action by,

 

4

 

and no notice to or filing with, any governmental authority is required
in connection with the execution, delivery or performance of this Agreement and
each of the other Definitive Agreements to which it is or will be a party.

 

(f)                                    Each of this
Agreement and the other Definitive Agreements to which OPC is or will be a
party constitutes, or, upon the due execution and delivery thereof by OPC, and,
with respect to the Amended and Restated Operating Agreement and Nuclear
Managing Board Agreement, upon approval of the Administrator of the Rural
Utilities Service, will constitute, the legal, valid and binding obligation of
OPC, enforceable against OPC in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency or other similar laws
affecting the enforcement of creditor’s rights generally and general principles
of equity).

 

Section 2.2                                   MEAG
Representations and Warranties. MEAG hereby represents and warrants to
GPC, OPC and Dalton as follows (which such representations and warranties will
be deemed repeated, as applicable, at the times MEAG elects any Initial
Percentage Interest, Minimum Binding Percentage Interest, Supplemental
Percentage Interest, Maximum Binding Percentage Interest and Final Percentage
Interest in each Additional Unit):

 

(a)                                  MEAG is a public body
corporate and politic and an instrumentality of the State of Georgia duly
organized and validly existing under the laws of the State of Georgia and has
all requisite power and authority to enter into and perform its obligations
under this Agreement and each of the other Definitive Agreements to which it is
or will be a party and to conduct its business as it is now being conducted and
as it is contemplated to be conducted in the future.

 

5

 

(b)                                 The execution,
delivery and performance by MEAG of this Agreement and each of the other
Definitive Agreements to which MEAG is or will be a party have been or when
executed will be duly and effectively authorized by all requisite corporate
action except as disclosed on Exhibit B.

 

(c)                                  The execution,
delivery and performance of this Agreement and each of the other Definitive
Agreements to which MEAG is or will be a party do not and will not contravene
the organizational documents of MEAG or any applicable law binding on or
affecting MEAG or its properties.

 

(d)                                 Subject to the receipt
of the consents and approvals disclosed on Exhibit B with respect to MEAG,
the execution, delivery and performance of this Agreement and each of the other
Definitive Agreements to which MEAG is or will be a party do not (i) violate
any indenture, mortgage or other material contract, agreement or instrument to
which MEAG is a party or by which MEAG or any of its property is bound; (ii) constitute
a default by MEAG under any such contract, agreement or instrument; or (iii) result
in the creation of any lien upon the property of MEAG (other than as permitted
under any of the Definitive Agreements).

 

(e)                                  Except as disclosed
on Exhibit B, all consents, authorizations and approvals of, and
registrations and declarations with, any governmental authority necessary for
the due execution, delivery and performance by MEAG of this Agreement and each
of the other Definitive Agreements to which MEAG is or will be a party have been
obtained and remain in full force and effect and all conditions thereof have
been duly complied with, and no other action by, and no notice to or filing
with, any governmental authority is required in connection with the execution,
delivery or performance of this Agreement and each of the other Definitive
Agreements to which it is or will be a party.

 

6

 

(f)                                    Each of this
Agreement and the other Definitive Agreements to which MEAG is or will be a
party constitutes, or, upon the due execution and delivery thereof by MEAG,
and, with respect to the Amended and Restated Operating Agreement and Nuclear
Managing Board Agreement, upon approval of the Administrator of the Rural
Utilities Service, will constitute, the legal, valid and binding obligation of
MEAG, enforceable against MEAG in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditor’s rights generally and general
principles of equity).

 

Section 2.3.                                Dalton
Representations and Warranties. Dalton hereby represents and warrants
to GPC, OPC and MEAG as follows (which such representations and warranties will
be deemed repeated, as applicable, at the times Dalton elects any Initial
Percentage Interest, Minimum Binding Percentage Interest, Supplemental
Percentage Interest, Maximum Binding Percentage Interest and Final Percentage
Interest in each Additional Unit):

 

(a)                               Dalton is an
incorporated municipality in the State of Georgia duly organized and validly
existing under the laws of the State of Georgia and has all requisite power and
authority to enter into and perform its obligations under this Agreement
and each of the other Definitive Agreements to which it is or will be a party
and to conduct its business as it is now being conducted and as it is
contemplated to be conducted in the future.

 

(b)                              The execution, delivery
and performance by Dalton of this Agreement and each of the other Definitive
Agreements to which Dalton is or will be a party have been or when executed
will be duly and effectively authorized by all requisite corporate action
except as disclosed on Exhibit B.

 

7

 

(c)                               The execution, delivery
and performance of this Agreement and each of the other Definitive Agreements
to which Dalton is or will be a party do not and will not contravene the
constitutional documents of Dalton or any applicable law binding on or
affecting Dalton or its properties.

 

(d)                              Subject to the receipt of
the consents and approvals disclosed on Exhibit B with respect to Dalton,
the execution, delivery and performance of this Agreement and each of the other
Definitive Agreements to which Dalton is or will be a party do not (i) violate
any indenture, mortgage or other material contract, agreement or instrument to
which Dalton is a party or by which Dalton or any of its property is bound; (ii) constitute
a default by Dalton under any such contract, agreement or instrument; or (iii) result
in the creation of any lien upon the property of Dalton (other than as
permitted under any of the Definitive Agreements).

 

(e)                               Except as disclosed on Exhibit B,
all consents, authorizations and approvals of, and registrations and
declarations with, any governmental authority necessary for the due execution,
delivery and performance by Dalton of this Agreement and each of the other
Definitive Agreements to which Dalton is or will be a party have been obtained
and remain in full force and effect and all conditions thereof have been duly
complied with, and no other action by, and no notice to or filing with, any
governmental authority is required in connection with the execution, delivery
or performance of this Agreement and each of the other Definitive Agreements to
which it is or will be a party.

 

(f)                                 Each of this Agreement
and the other Definitive Agreements to which Dalton is or will be a party
constitutes, or, upon the due execution and delivery thereof by Dalton, and,
with respect to the Amended and Restated Operating Agreement and Nuclear
Managing Board Agreement, upon approval of the Administrator of the Rural
Utilities Service,

 

8

 

will constitute, the legal, valid and binding
obligation of Dalton, enforceable against Dalton in accordance with its terms
(except as such enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting the enforcement of creditor’s rights generally and
general principles of equity).

 

Section 2.4                                   GPC
Representations and Warranties. GPC hereby represents and warrants to
OPC, MEAG and Dalton as follows (which such representations and warranties will
be deemed repeated, as applicable, at the times GPC elects any Initial
Percentage Interest, Minimum Binding Percentage Interest, Supplemental
Percentage Interest, Maximum Binding Percentage Interest and Final Percentage
Interest in each Additional Unit):

 

(a)                                  GPC is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Georgia and has all requisite corporate power and authority to enter
into and perform its obligations under this Agreement and each of the
other Definitive Agreements to which it is or will be a party and to conduct
its business as it is now being conducted and as it is contemplated to be
conducted in the future.

 

(b)                                 The execution,
delivery and performance by GPC of this Agreement and each of the other
Definitive Agreements to which GPC is or will be a party have been or when
executed will be duly and effectively authorized by all requisite corporate
action except as disclosed on Exhibit B.

 

(c)                                  The execution,
delivery and performance of this Agreement and each of the other Definitive
Agreements to which GPC is or will be a party do not and will not contravene
the organizational documents of GPC or any applicable law binding on or
affecting GPC or its properties.

 

9

 

(d)                                 Subject to the receipt
of the consents and approvals disclosed on Exhibit B with respect to GPC,
the execution, delivery and performance of this Agreement and each of the other
Definitive Agreements to which GPC is or will be a party do not (i) violate
any indenture, mortgage or other material contract, agreement or instrument to
which GPC is a party or by which GPC or any of its property is bound; (ii) constitute
a default by GPC under any such contract, agreement or instrument; or (iii) result
in the creation of any lien upon the property of GPC (other than as permitted
under any of the Definitive Agreements).

 

(e)                                  Except as disclosed
on Exhibit B, all consents, authorizations and approvals of, and
registrations and declarations with, any governmental authority necessary for
the due execution, delivery and performance by GPC of this Agreement and each
of the other Definitive Agreements to which GPC is or will be a party have been
obtained and remain in full force and effect and all conditions thereof have
been duly complied with, and no other action by, and no notice to or filing
with, any governmental authority is required in connection with the execution,
delivery or performance of this Agreement and each of the other Definitive
Agreements to which it is or will be a party.

 

(f)                                 Each of this Agreement
and the other Definitive Agreements to which GPC is or will be a party
constitutes, or, upon the due execution and delivery thereof by GPC, and, with
respect to the Amended and Restated Operating Agreement and Nuclear Managing
Board Agreement, upon approval of the Administrator of the Rural Utilities
Service, will constitute, the legal, valid and binding obligation of GPC,
enforceable against GPC in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditor’s rights generally and general
principles of equity).

 

10

 

ARTICLE III

 

CONDITIONS

 

Section 3.1                                   GPC’s
Conditions Precedent. The effectiveness of all obligations of GPC under
this Agreement and the Definitive Agreements to which it is a party is subject
to the fulfillment, prior to or at the Effective Date, of each of the following
conditions (or the waiver in writing of such conditions by GPC):

 

(a)                               GPC shall not have
discovered any material error, misstatement or omission in the representations
and warranties made by OPC, MEAG or Dalton in this Agreement.

 

(b)                              GPC shall have been
furnished with certificates of the chief executive officers of each of OPC,
MEAG and Dalton, dated the Effective Date, certifying in such detail as GPC may request
to the fulfillment of the foregoing conditions.

 

Section 3.2                                   OPC’s
Conditions Precedent. The effectiveness of all obligations of OPC under
this Agreement and the Definitive Agreements to which it is a party is subject to
the fulfillment, prior to or at the Effective Date, of each of the following
conditions (or the waiver in writing of such conditions by OPC):

 

(a)                               OPC shall not have
discovered any material error, misstatement or omission in the representations
and warranties made by GPC, MEAG or Dalton in this Agreement.

 

(b)                              OPC shall have been
furnished with certificates of the chief executive officers of each of GPC,
MEAG and Dalton, dated the Effective Date, certifying in such detail as OPC may request
to the fulfillment of the foregoing conditions.

 

11

 

Section 3.3                                MEAG’s
Conditions Precedent. The effectiveness of all obligations of MEAG
under this Agreement and the Definitive Agreements to which it is a party is
subject to the fulfillment, prior to or at the Effective Date, of each of the
following conditions (or the waiver in writing of such conditions by MEAG):

 

(a)                               MEAG shall not have
discovered any material error, misstatement or omission in the representations
and warranties made by GPC, OPC and Dalton in this Agreement.

 

(b)                              MEAG shall have been
furnished with certificates of the chief executive officers of each of GPC, OPC
and Dalton dated the Effective Date, certifying in such detail as MEAG may request
to the fulfillment of the foregoing conditions.

 

Section 3.4                                   Dalton’s
Conditions Precedent. The effectiveness of all obligations of Dalton
under this Agreement and the Definitive Agreements to which it is a party is
subject to the fulfillment, prior to or at the Effective Date, of each of the
following conditions (or the waiver in writing of such conditions by Dalton):

 

(a)                               Dalton shall not have
discovered any material error, misstatement or omission in the representations
and warranties made by GPC, OPC and MEAG in this Agreement.

 

(b)                              Dalton shall have been
furnished with certificates of the chief executive officers of each of GPC, OPC
and MEAG, dated the Effective Date, certifying in such detail as Dalton may request
to the fulfillment of the foregoing conditions.

 

Section 3.5                                   Mutual
Conditions Precedent. The effectiveness of the obligations of each
Party to each other Party hereunder is, unless waived in writing by each such
Party prior to

 

12

 

or at the Effective Date (which waiver is
deemed effective upon the execution and delivery of this Agreement by such
Party), subject to the further conditions that:

 

(a)                               The Parties shall have
executed the Amended and Restated Operating Agreement and the Nuclear Managing
Board Agreement.

 

(b)                              The Parties shall have
executed the Declaration of Covenants.

 

(c)                               GPC and Southern Nuclear
Operating Company, Inc. shall have executed the Amended and Restated
Nuclear Operating Agreement dated as of the Effective Date.

 

(d)                              All requisite
governmental, regulatory and vendor approvals of the execution, delivery and
performance of the Definitive Agreements and the consummation of the
transactions contemplated hereby and thereby by the Parties shall have been
received except for the consents and approvals disclosed on Exhibit B.

 

Section 3.6                                   Conditions
Subsequent. The continued effectiveness of the obligations of each
Party to each other Party hereunder is subject to the further conditions that:

 

(a)                                  Each Party has, after
diligent pursuit, obtained the necessary consents or approvals set forth on Exhibit B
hereto with regard to such party within one hundred and eighty (180) days from
the Effective Date, unless the Parties otherwise agree.

 

(b)                                 Each
Party shall have been furnished with an opinion of counsel for each of the
other Parties dated as of the date on which all consents and approvals on Exhibit B
have been obtained, and delivered no later than ten (10) days after
notification of such date, to the effect that: 
(1) in the case of the opinion of counsel for GPC, (a) GPC is
a corporation duly organized, validly existing and in good standing under the
laws of the State of Georgia and has corporate power and authority to enter
into and perform its obligations under this Agreement and to conduct its
business as it is now being conducted and as it is contemplated to be conducted
in the 

 

13

 

future, (b) the execution, delivery and performance of this
Agreement by GPC have been duly and effectively authorized by all requisite
corporate action, and (c) this Agreement has been duly executed and
delivered by GPC and constitutes the legal, valid and binding obligation of
GPC, enforceable against GPC in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditor’s rights generally and general
principles of equity); (2) in the case of the opinion of counsel for OPC, (a) OPC
is an electric membership corporation duly organized, validly existing and in
good standing under the laws of the State of Georgia and has all requisite
corporate power and authority to enter into and perform its obligations
under this Agreement and to conduct its business as it is now being conducted
and as it is contemplated to be conducted in the future, (b) the
execution, delivery and performance of this Agreement by OPC have been duly and
effectively authorized by all requisite action, and (c) this Agreement has
been duly executed and delivered by OPC and constitutes the legal, valid and
binding obligation of OPC, enforceable against OPC in accordance with its terms
(except as such enforceability may be limited by bankruptcy, insolvency or
other similar laws affecting the enforcement of creditor’s rights generally and
general principles of equity); (3) in the case of the opinion of counsel
for MEAG, (a) MEAG is a public body corporate and politic and an
instrumentality of the State of Georgia duly organized and validly existing
under the laws of the State of Georgia and has all requisite power and
authority to enter into and perform its obligations under this Agreement
and to conduct its business as it is now being conducted and as it is
contemplated to be conducted in the future, (b) the execution, delivery
and performance of this Agreement by MEAG have been duly and effectively
authorized by all action, and (c) this Agreement has been duly executed
and delivered by MEAG and constitutes the legal, valid and binding obligation
of MEAG

 

14

 

enforceable against MEAG in accordance with its terms (except as such
enforceability may be limited by bankruptcy, insolvency or other similar
laws affecting the enforcement of creditor’s rights generally and general
principles of equity); and (4) in the case of Dalton, (a) Dalton is
an incorporated municipality in the State of Georgia, duly and validly
organized and validly existing under the laws of the State of Georgia, (b) the
execution, delivery and performance of this Agreement by Dalton have been duly
and effectively authorized by all requisite action, and (c) this Agreement
has been duly executed and delivered by Dalton and constitutes the legal, valid
and binding obligation of Dalton enforceable against Dalton in accordance with
its terms (except as such enforceability may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditor’s rights
generally and general principles of equity).

 

ARTICLE IV

 

OWNERSHIP
RIGHTS AND OBLIGATIONS

 

Section 4.1                                   Tenants
in Common. Except as provided below, the Participating Parties shall
have title to the applicable Additional Unit Property as tenants in common and
shall, as co-tenants with undivided ownership interests therein and subject to
the terms of this Agreement and the Amended and Restated Operating Agreement,
have the related rights and obligations, including payment therefor, and be
entitled to the output of each Additional Unit in proportion to their Ownership
Interests in such Additional Units. The Participating Parties shall have title
to the Related Facilities as tenants-in-common and shall, as co-tenants with
undivided ownership interest therein and subject to the terms of this Agreement
and the Amended and Restated Operating Agreement, have the related rights and
obligations, including payment therefor in proportion to their Weighted
Ownership Interests in the Additional Units. The Ownership Interests of the
Parties will be determined pursuant to the Development Agreement.

 

15

 

Section 4.2                                Alienation
and Assignment.

 

(a)                                  Prior to the
determination of the Participating Parties’ Final Percentage Interests in the
Additional Units, no Participating Party may sell, lease, convey, transfer,
assign, encumber or alienate in any manner whatsoever its Ownership Interest,
or any portion or portions thereof, in any Additional Unit Property to any
other party (including another Participating Party), except as provided in Section 4.2(b) hereof
and in Sections 3.4 and 3.7 of the Development Agreement. Following such
determination, except with the prior written consent of the Participating
Parties owning at least an aggregate 90% Ownership Interest in the applicable
Additional Unit Property and except as provided in Section 4.2(b), until
the expiration of the operating license for the applicable Additional Unit to
be granted by the NRC, as renewed from time to time, none of the Participating
Parties shall have the right to sell, lease, convey, transfer, assign, encumber
or alienate in any manner whatsoever its Ownership Interest, or any portion or
portions thereof, in any Additional Unit Property to any other party (including
another Participating Party) without either:

 

(i) first offering, subject to all
requisite regulatory approval, such sale, lease or other conveyance to the
other Participating Parties pro rata in accordance with their respective
Ownership Interests in such Additional Unit Property upon the same terms and
conditions as the proposed sale, lease or conveyance to such other party, which
offer shall be made in the form of a proposed contract and shall be open
for acceptance by the other Participating Parties for a period of one hundred
and twenty (120) days and in the event such offer is accepted by all such other
Participating Parties, the Participating Parties shall proceed to a closing
pursuant to the terms of the aforesaid contract in an expeditious manner. In
the event such

 

16

 

offer is accepted by one or more but is not
accepted by all of the other Participating Parties within the aforesaid one
hundred and twenty-day period, the offeror shall offer the unaccepted portion
of such offer to the Participating Parties who accepted the original offer, who
shall then have thirty (30) days to accept the offer of such unaccepted portion.
In the event that any of such offers is not timely accepted, the offering
Participating Party shall be entitled to consummate the proposed sale, lease or
other conveyance to such other party; provided, however, that if
the offering Participating Party does not consummate the proposed sale, lease
or other conveyance of such interest within a period of one (1) year after
the date of its initial offer to the other Participating Parties, no such sale,
lease or other conveyance may be consummated without re-offering the sale,
lease or conveyance to such other Participating Parties pursuant to either this
Section 4.1(a)(i) or Section 4.2(a)(ii); or

 

(ii) first offering, subject to all
requisite regulatory approval, to the other Participating Parties pro rata in
accordance with their respective Ownership Interests in such Additional Unit
Property, such offering Participating Party’s Ownership Interest, or portion
thereof, which it seeks to sell, lease or otherwise convey (the “Offered
Interest”). The offering Participating Party shall first deliver a written
notice to the other Participating Parties stating its intent to offer the
Offered Interest in accordance with this Section 4(a)(ii). Not less than
60 days after delivering such notice, the offering Participating Party will
deliver a written offer (the “Purchase Option Offer”) to the other
Participating Parties detailing a purchase price (the “Purchase Price”) for the
Offered Interest, which Purchase

 

17

 

Price will represent a fair value for the
Offered Interest (determined through a commercially reasonable appraisal
process or other reasonable means). After receipt of the Purchase Option Offer,
the other Participating Parties shall have one hundred and twenty (120) days to
accept such offer and, in the event such offer is accepted by all such other
Participating Parties, the Participating Parties shall proceed to a closing in
an expeditious manner. In the event such offer is accepted by one or more but
is not accepted by all of the other Participating Parties within the aforesaid
one hundred and twenty-day period, the offering Participating Party shall offer
the unaccepted portion of such offer to the Participating Parties who accepted
the original offer, who shall then have thirty (30) days to accept the offer of
such unaccepted portion. In the event that any of such offers is not timely
accepted, the offering Participating Party shall be entitled to consummate a
sale, lease or other conveyance of the Offered Interest to another party
(including a Participating Party) on such terms and conditions as the offering
Participating Party may determine in its sole discretion; provided,
that the offering Participating Party shall not be entitled to sell, lease or
otherwise convey the Offered Interest at a price below the Purchase Price
without first re-offering such interest to the other Participating Parties at
the new purchase price pursuant to either Section 4.2(a)(i) or this Section 4.2(a)(ii);
provided, further, that if the offering Participating Party does
not consummate a sale, lease or other conveyance of the Offered Interest at a
price equal to or greater than the Purchase Price within a period of two (2) years
after the date upon which the offering Participating Party first became free to
sell, lease or otherwise convey the Offered Interest to third parties
hereunder, no such

 

18

 

sale, lease or other conveyance may be
consummated without re-offering the Offered Interest to the other Participating
Parties pursuant to either Section 4.2(a)(i) or this Section 4.2(a)(ii).
So long as NRC approval of such a sale, lease or other conveyance is promptly
applied for and pursued with due diligence, such two-year period shall be
extended until the NRC grants or denies such approval and such action becomes
final and non-appealable.

 

In no event shall the offering Participating Party sell, lease or
convey such interest to any party (including another Participating Party) which
is not financially responsible, taking into account the remaining obligations
at the time of such transfer under this Agreement, the Amended and Restated
Operating Agreement and the Nuclear Managing Board Agreement, or do so on any
terms at variance from those set forth in the aforesaid contract.

 

(b)                                 Notwithstanding the
foregoing, each Participating Party shall have the right to sell, lease,
transfer, convey or assign all or part of its Ownership Interest in any
Additional Unit Property as contemplated by Sections 4.2(e), 4.2(f), 4.2(g),
4.3(c), 4.9 and 7.7 of this Agreement, or to convey a security interest therein
to secure bonds or other obligations issued or to be issued by such
Participating Party, without complying with the provisions of this Section 4.2.
Each Participating Party shall notify the other Participating Parties in
writing as soon as possible after it learns that any lien or security interest
has been or will be imposed upon its Ownership Interest in any Additional Unit
Property, or has reason to believe that such a lien or security interest will
be imposed, other than (i) a lien or security interest in respect of bonds
or other obligations issued or to be issued by such Participating Party, or an
obligation or liability that does not exceed $100,000.00, and (ii) a lien
or security interest in revenues associated with the output of an Additional
Unit.

 

19

 

(c)                                  In the event of any
sale, conveyance, transfer, assignment, or alienation (other than solely as
security for indebtedness or other obligations as permitted hereby) by one of
the Participating Parties of its Ownership Interest, or any portion or portions
thereof, in any Additional Unit Property, such Participating Party shall cause
such transferee to become a party to this Agreement and assume the obligations
of the transferor hereunder in proportion to the Ownership Interest so sold,
conveyed, transferred, assigned, or alienated.

 

(d)                                 Each of the
Participating Parties hereby expressly waives and renounces for the term of the
Amended and Restated Operating Agreement for itself, its successors,
transferees and assigns, (a) all rights as a tenant in common in any
Additional Unit Property to partition and to an accounting associated therewith
and (b) any right to enforce an equitable lien on the Ownership Interest
of any Participating Party.

 

(e)                               Any Participating Party
shall have the right to sell, convey, transfer or assign its Ownership
Interest, or any portion or portions thereof, in any Additional Unit Property
without the consent of the other Participating Parties and without complying
with the provisions of this Section 4.2 in connection with (i) any financial
arrangements (including security transactions) for the discharge of nuclear
fuel payment obligations as contemplated in and subject to Section 4.6
hereof, or (ii) any sale or transfer to any governmental authority or
political subdivision in connection with the financing of pollution control
facilities or obtaining any ad valorem tax abatement as contemplated in Section 4.7
hereof; provided, however, that the Agent shall continue to act
as agent for the other Participating Parties in connection with such Additional
Unit Property.

 

(f)                                    If at any time
prior to the first date on which the Participating Parties may increase
their Minimum Binding Percentage Interests (as provided in the Development

 

20

 

Agreement), any two Participating Parties enter into a power sale
agreement whereby one Participating Party (the “Purchasing Participating Party”)
contracts to purchase output derived from the other Participating Party’s (the “Selling
Participating Party”) Ownership Interest in either of the Additional Units,
simultaneously upon expiration of such power sale agreement, the Selling
Participating Party shall have the right to sell, convey, transfer or assign
that portion of its Ownership Interest in the applicable Additional Unit(s)
that corresponds to the output that was the subject of the power sale agreement
to the Purchasing Participating Party without complying with the provisions of
this Section 4.2, but only in such instance and without affecting such rights
for future transfers.

 

(g)                                 In addition to OPC’s
right to transfer or sell its Ownership Interest under Section 4.2(a), all
or any portion of OPC’s Ownership Interest in the Additional Units Property may be
transferred or sold pursuant to a foreclosure action or power of sale without
complying with the provisions of this Section 4.2 (but only in such
instance and without affecting such rights for future transfers), if the
transfer or sale is conducted in accordance with this Section 4.2(g).

 

(i)                                     This
Section 4.2(g) shall apply if (A) an event of default has
occurred and is continuing under the terms of OPC’s Indenture, and (B) an
agency or instrumentality of the United States government is a holder of
indebtedness secured by OPC’s Indenture.

 

(ii)                                  Prior
to any sale or transfer under this Section 4.2(g), the security title and
lien holder under OPC’s Indenture (the “Trustee”) shall deliver to the other
Participating Parties a written notice of its intention to transfer or sell
such Ownership Interest (the “Default Sale Notice”). After receipt of the
Default Sale Notice, the other

 

21

 

Participating Parties shall have one hundred
and twenty (120) days to deliver to the Trustee one or more written offers to
purchase such Ownership Interest in its entirety on an as-is, where-is basis,
without recourse to the Trustee, free and clear of the lien of OPC’s Indenture,
for a cash purchase price identified in such offer, subject only to receipt of
all required regulatory approvals (each, a “Co-Owner Purchase Offer”). If one
or more Co-Owner Purchase Offers are received by the Trustee within such
ninety-day period, the Trustee must, within one hundred and eighty (180) days
after delivery of the Default Sale Notice:

 

(A)                              identify
to all the Participating Parties that submitted Co-Owner Purchase Offers the
Co-Owner Purchase Offer that contains the highest purchase price (the “Prevailing
Co-Owner Purchase Offer”); and

 

(B)                                give
notice to such Participating Parties of its acceptance or rejection of the
Prevailing Co-Owner Purchase Offer.

 

(iii)                               If
the Trustee accepts the Prevailing Co-Owner Purchase Offer, then the other
Participating Parties will have the right, within thirty (30) days after notice
of such acceptance, to participate in the Prevailing Co-Owner Purchase Offer
pro rata in accordance with their respective Ownership Interests or as the
Participating Parties may otherwise agree.

 

(iv)                              If
the Prevailing Co-Owner Purchase Offer is accepted: (A) such acceptance
shall constitute a binding agreement between the Trustee and the purchasing
Participating Parties obligating the Trustee to sell, and the purchasing
Participating Parties to purchase, the Ownership Interest identified in the
Default Sale Notice at the purchase price specified in the Prevailing Co-Owner
Purchase Offer, subject only to

 

22

 

receipt of all required regulatory approvals;
and (B) the purchasing Participating Parties will be obligated to tender
the full amount of the purchase price in immediately available funds to the
Trustee within ten (10) days of receipt of all regulatory approvals
required for such sale, lease of other conveyance.

 

(v)                                 If

 

(A) the
Trustee does not receive any Co-Owner Purchase Offers within the 120-day period
provided above;

 

(B) the
purchasing Participating Parties fail to tender the purchase price within the
ten-day period as provided above; or

 

(C) the
Trustee rejects the Prevailing Co-Owner Purchase Offer,

 

then the Trustee may thereafter proceed
to sell, lease or otherwise convey such Ownership Interest to any entity,
including any Participating Party, without re-offering such Ownership Interest
to the other Participating Parties and without complying with this Section 4.2
(but only in such instance and without affecting such rights for future
transfers); provided, that the Participating Parties will not be
prohibited from participating in any auction or other bid process for such
Ownership Interest after any such event; provided, further that
any such sale, lease or other conveyance to an entity other than a
Participating Party must be made to an entity (1) that is financially
responsible, taking into account the remaining obligations at the time of such
transfer or sale under this Agreement, the Amended and Restated Operating
Agreement and the Nuclear Managing Board Agreement and (2) that becomes a
party to, and assumes the obligations of OPC under, each of the Ownership
Agreement, the Operating Agreement and the Nuclear Managing Board Agreement; provided,
further that if the Trustee has

 

23

 

not, within two (2) years after the
occurrence of any of the events described in clauses (A)-(C) above,
consummated a sale, lease or other conveyance of such Ownership Interest, the
Trustee may not thereafter sell, lease or otherwise convey such Ownership
Interest without first re-offering it to the other Participating Parties in
accordance with this Section 4.2(g). So long as NRC approval of such a sale,
lease or other conveyance is promptly applied for and pursued with due
diligence, such two-year period shall be extended until the NRC grants or
denies such approval and such action becomes final and non-appealable.

 

(h)                                 No Party may assign
any of its rights under this Agreement except in connection with a sale,
conveyance, transfer or assignment of an Ownership Interest or any portion
thereof as permitted pursuant to the provisions of this Section 4.2. Any
purported assignment in violation of this Section 4.2 is void.

 

Section 4.3                                   Damage
or Destruction. Subject to the receipt of all requisite approvals of
the NRC (and any other governmental agency having jurisdiction):

 

(a)                               In the event any
Additional Unit Property or any portion thereof should be damaged or destroyed
and the cost of repairs or reconstruction (less any deductible for insurance
related thereto) is estimated to be covered by the aggregate amount of
insurance coverage, procured and maintained by the Agent pursuant to Section 4.4
of this Agreement and Section 4.6 of the Amended and Restated Operating
Agreement, carried and covering the cost of such repairs and reconstruction,
then, unless the Participating Parties owning at least an aggregate 90% Ownership
Interest in such Additional Unit Property determine not to repair or
reconstruct such Additional Unit Property, the Agent shall cause such repairs
or reconstruction to be made so that

 

24

 

such Additional Unit Property shall be
restored to substantially the same general condition, character or use as
existed prior to such damage or destruction.

 

(b)                              In the event any
Additional Unit Property or any portion thereof should be damaged or destroyed
and the cost of repairs or reconstruction (less any deductible for insurance
related thereto) is estimated to be more than the aggregate amount of insurance
coverage, procured and maintained by the Agent pursuant to Section 4.4 of
this Agreement and Section 4.6 of the Amended and Restated Operating
Agreement, carried and covering the cost of such repairs or reconstruction,
then, if the Participating Parties owning at least an aggregate 90% Ownership
Interest in such Additional Unit Property determine to repair or reconstruct
such Additional Unit Property, the Agent shall cause such repairs or
reconstruction to be made so that such Additional Unit Property shall be
restored to substantially the same general condition, character or use as
existed prior to such damage or destruction, and the Participating Parties
shall share the costs of such repairs or reconstruction in excess of available
insurance proceeds in proportion to their respective Ownership Interests in
such Additional Unit Property. In the absence of such determination, the Agent
shall not cause such repairs or reconstruction to be made except as provided in
subsection (c) below.

 

(c)                                  If as a result of the
preceding subsections (a) or (b), any Additional Unit Property or any
portion thereof is not to be repaired or reconstructed but one or more of the
Participating Parties desire the repair or reconstruction of such Additional
Unit Property, then the Participating Parties shall meet to discuss whether
such Additional Unit Property shall be repaired or reconstructed. If the
Participating Parties cannot agree that such Additional Unit Property should be
repaired or reconstructed, then any Participating Party who does not desire to
repair or reconstruct such Additional Unit Property may terminate its
participation with respect

 

25

 

to such Additional Unit Property, and such
Participating Party shall transfer, free and clear of all liens, claims and
other encumbrances, its Ownership Interest to the remaining Participating
Parties in the proportion which their Ownership Interests in such Additional
Unit Property bear to each other, unless such remaining Participating Parties
agree to a different proportion. Such transferring Participating Party (i) will
receive its share of any insurance proceeds in proportion to its Ownership
Interest and will receive payment from the transferee Participating Parties for
its Ownership Interest in such Additional Unit Property equal to the appraised
fair market value of the damaged Additional Unit Property; and (ii) will
pay to the transferee Participating Parties simultaneously with such transfer a
share of Decommissioning costs, estimated
based on the assumption that Decommissioning occurs at such time, in proportion
to such transferring Participating Party’s Ownership Interest.

 

Section 4.4                                   Insurance.

 

(a)                                  At all times during
the construction, reconstruction, completion, startup, commissioning, repair,
renewal, modification, replacement, alteration or Decommissioning of, or
addition to, the Additional Unit Properties, the Agent shall carry in the name
of the Participating Parties, as their interests may appear, as the same may be
adjusted in accordance with this Agreement, builder’s risk (including transit
risk, if applicable) or installation floater insurance of the “all risks” type
on the Additional Unit Properties in an amount and including such risks as is
consistent with the Agent’s customary practices and Prudent Utility Practice.
The Agent shall also reasonably satisfy itself that all contractors,
subcontractors, engineers, equipment suppliers and manufacturers associated
with the Additional Units and the Related Facilities have appropriate insurance
and limits thereof, with carriers approved by the Agent for workers’
compensation, public liability, automobile liability and such other hazards as
the Agent shall

 

26

 

deem appropriate with respect to the Additional Units and the Related
Facilities and the activities relating thereto. Alternatively, the Agent, at
its option, may provide for an insurance program for the Additional Units
and the Related Facilities in the nature of a “wrap-up” which shall combine all
hazards in one policy, with all parties, including owners, contractors, and
subcontractors, but not including professional design engineers, equipment
suppliers or manufacturers, involved in the Additional Units and the Related
Facilities being insured thereunder, as their interests may appear. In any
event, the Agent shall require that the insurance covering the activities of
contractors, subcontractors, engineers, equipment suppliers and manufacturers
associated with the Additional Units and the Related Facilities protect all the
Participating Parties to the same extent as they protect the Agent.

 

(b)                                 The Agent shall use its
best efforts to require all insurers that provide insurance pursuant to Section 4.4(a) above
to waive all rights of subrogation against any Indemnitee for insured losses
associated with the Additional Units or Related Facilities, however caused.

 

(c)                                  At all times during
the planning, licensing, design, acquisition, construction, completion,
startup, commissioning, repair, renewal, modification, replacement, alteration
or Decommissioning of, or addition to, Additional Units or Related Facilities,
the Agent shall require that all contracts with third parties relating to
Additional Units or Related Facilities provide the same protection for the
Participating Parties as for the Agent. This protection shall include but not
be limited to obligations of such third parties to indemnify all the
Participating Parties. The Agent shall use its best efforts to require all
contractors, subcontractors, engineers, equipment suppliers and manufacturers
with whom it enters into contracts to provide insurance coverage under which
their insurers waive all rights of

 

27

 

subrogation against any Indemnitee. The Agent shall use its best
efforts to require that all such insurance contracts expressly provide that
each Indemnitee is an intended third party beneficiary of such waiver of
subrogation. In addition, all Participating Parties shall be named as
additional insureds under the insurance policies covering the activities of any
contractor, subcontractor, engineer, equipment supplier or manufacturer
associated with the Additional Units or Related Facilities in the same manner
and with the same requirements as the Agent.

 

(d)                                 The aggregate cost of
all insurance procured by the Agent pursuant to this Section 4.4 shall be
considered a Cost of Construction and as such shall be apportioned among the
Participating Parties and paid pursuant to Sections 7.4 and 7.6 hereof.
The Agent shall promptly provide copies of all insurance policies procured by
the Agent pursuant to this Section 4.4, if requested in writing by a
Participating Party, and make available notices with respect thereto to each
Participating Party. The Participating Parties may each also maintain
additional or other insurance at its own cost and expense which it deems
necessary or advisable to protect its interest in or with respect to any
Additional Unit, provided that such additional or other insurance does not
reduce or diminish in any way the coverage of the insurance procured and
maintained by the Agent pursuant to this Section 4.4 and provided further
that the Participating Party maintaining such insurance shall use its best
efforts to require any such insurers to waive all rights of subrogation against
any Indemnitee for insured losses associated with the Additional Units or
Related Facilities.

 

Section 4.5                                   Taxes.
To the extent possible, each of the Participating Parties shall separately
report, file returns with respect to, be responsible for and pay all real
property, franchise, business, or other taxes or fees, except payroll and sales
or use taxes, arising out of its Ownership Interest in any Additional Unit
Property; provided, however, that to the extent that

 

28

 

such taxes or fees may be assessed against any Additional Unit
Property or its operation or the Participating Parties in such a manner so as
to make impossible the carrying out of the foregoing provisions of this Section 4.5,
or upon mutual agreement of the Participating Parties, then such taxes or fees
shall be considered a Cost of Construction and paid from the applicable
Construction Account or the applicable Capital Account in accordance with the
provisions of Sections 7.4 or 7.6 hereof, but in no event shall any taxes or
fees from the payment of which any Participating Party is exempt by law be
considered a Cost of Construction. The Participating Parties shall each be
responsible for all sales and transfer taxes and recording fees, if any,
incurred in connection with the conveyance to them of Ownership Interests in
any Additional Unit Property pursuant to this Agreement.

 

Section 4.6                                   Nuclear
Fuel.

 

(a)                                  Subject to the other
provisions of this Agreement, and the provisions of Sections 4.2 and 4.3 of the
Amended and Restated Operating Agreement and Sections 4.2 and 4.5 of the
Nuclear Managing Board Agreement, the Agent shall have sole authority to and
shall arrange for and acquire all nuclear fuel for the Additional Units.

 

(b)                                 As to the acquisition
of nuclear fuel for the Additional Units after the date of this Agreement, each
Participating Party shall have the right to make whatever financial
arrangements it may desire, whether by lease, security transaction or
otherwise, for the discharge of its nuclear fuel payment obligations so long as
such arrangements do not adversely affect the rights of any other Participating
Party. In respect thereof:

 

(i)                                     The Agent shall
give reasonable notice to the other Participating Parties of its intent in the
purchasing, financing or leasing of nuclear fuel, following which each of the
other Participating Parties shall give reasonable notice to the Agent of its
intended

 

29

 

financial arrangement for discharging its obligation for its undivided
ownership interest in nuclear fuel.

 

(ii)                                  If such financial
arrangement by a Participating Party does not adversely affect the rights of
any other Participating Party, then such other Participating Party may discharge
its obligation for its undivided ownership interest in nuclear fuel by such
financial arrangement.

 

(iii)                               If such financial
arrangement by a Participating Party does adversely affect the rights of any
other Participating Party, then the Agent shall arrange for the purchasing,
financing or leasing of such other Participating Party’s undivided ownership
interest in nuclear fuel and such other Participating Party shall pay its
proportionate share of the costs incurred in such purchasing, financing or
leasing by the Agent.

 

(iv)                              Unless otherwise agreed
by the Participating Parties, or as otherwise provided in Sections 4.2 and 4.3
of the Amended and Restated Operating Agreement and Sections 4.2 and 4.5 of the Nuclear Managing Board Agreement,
the Participating Parties shall pay Fuel Costs and shall own nuclear fuel with
respect to each Additional Unit in proportion to their respective Ownership
Interests in such Additional Unit.

 

Section 4.7                                   Certain
Tax Matters.

 

(a)                                  The Participating
Parties shall cooperate with each other in any financing undertaken by any
Participating Party on its own behalf of such Participating Party’s Ownership
Interest in certain Additional Unit Property used for the control of
environmental pollution, through the issuance by the Development Authority of
Burke County, Georgia, or its successors or assigns or any other political
subdivision or authority, of its industrial revenue notes or bonds, or both,
the interest on which will be exempt from federal income taxes, and in seeking
state

 

30

 

authority therefor and fairly allocating such authority among the
Participating Parties that desire such financing.

 

(b)                                 The Participating
Parties shall cooperate with each other in any efforts undertaken by any
Participating Party to achieve an abatement of ad valorem taxes with
respect to its Ownership Interest in any Additional Unit Property, whether
through a sale-and-leaseback transaction with the Development Authority of
Burke County, Georgia, or its successors or assigns or any other political
subdivision or governmental authority, or otherwise. In the event any
Participating Party intends to seek such a tax abatement, such Participating
Party will notify the other Participating Parties of such intention prior to
commencing discussions or negotiations with respect thereto.

 

Section 4.8                                   Decommissioning
Funding Assurance.

 

(a)                                  Subject to Section 5.2
of this Agreement with respect to the filing of requisite filings with
regulatory agencies, each Participating Party shall provide Decommissioning
funding assurance in accordance with the NRC decommissioning planning
requirements detailed in 10 C.F.R. § 50.75, or any successor thereto (“Decommissioning
Funding Assurance”). Each Participating Party shall comply with such NRC
decommissioning planning requirements and coordinate with the Agent in such
compliance, including the preparation of a report containing a certification of
financial assurance for Decommissioning in an amount which provides funding for
its Ownership Interest in the applicable Additional Unit(s).

 

(b)                                 The Participating Parties’
obligations for Decommissioning Funding Assurance shall not diminish the
Participating Parties’ contractual obligations under this Agreement or under
the Amended and Restated Operating Agreement. The Agent shall make all

 

31

 

reasonable efforts to inform the other Participating Parties as to
the planning for and progress of the Decommissioning of each of the Additional
Units and the anticipated costs of such activities.

 

Section 4.9                                   Property
Rights.

 

(a)                                  If (i) after the
determination of each Participating Party’s Maximum Binding Percentage Interest
with respect to the Additional Units, the Ownership Interests of the Parties in
each Additional Unit do not equal the Pro Rata Interests of the Parties, or (ii) after
the determination of each Participating Party’s Final Percentage Interest with
respect to each Additional Unit, the Ownership Interests of the Participating
Parties in such Additional Unit do not equal the Maximum Binding Percentage
Interests of the Participating Parties; then in either or both cases, as
applicable, the Parties will grant fee simple interests in the land for the
Identified Site related to such Additional Unit, free and clear of any liens
and encumbrances, as may be necessary so that the Identified Site related
to such Additional Unit shall be owned by the Participating Parties in
accordance with their Ownership Interests (at each such time) in such
Additional Unit, and the Parties hereby waive their respective first refusal
rights to such transfers as provided in Section 4.2 above, but only in
such instance and without affecting such rights for future transfers. A Party
will receive the fair market value of any of such Party’s interest in land
conveyed to the Participating Parties pursuant to this Agreement. The “fair
market value” of such land will be appraised with regard to the best and
highest use, as burdened by all restrictions existing on the land at Plant
Vogtle as of the date of such transfer. Any deed executed pursuant to the
provisions of this Section 4.9 (a) shall contain the following
language:

 

The parties hereto have entered into that
certain Plant Alvin W. Vogle Additional Units Ownership Participation Agreement
dated as of April 21, 2006, and that certain Plant Alvin W. Vogle Nuclear
Units Amended and Restated Operating Agreement dated as of April 21, 2006
(the “Agreements”). The Agreements, as they may be amended from time to
time, govern the ownership of the Parties of

 

32

 

the property which is the subject of this
conveyance, and set forth, among other things, obligations on each of their
parts with respect to improvements which are required by the Agreements to be
made on said property. The Parties for themselves and for their successors in
title, acknowledge, affirm and incorporate into this deed the covenants and
rights established in the Agreements, and for that purpose incorporate herein Section 7.7
of the Ownership Agreement and 5.4 of the Operating Agreement, recorded
respectively in Deed Book         , Page       ,
and Deed Book       , Page       ,
of the Burke County Records.

 

(b)                                 Simultaneously
herewith, the Parties have entered into a Declaration of Covenants (as attached
hereto as Exhibit A-2) that sets forth certain general blanket easements
granted with respect to the development and construction of the Additional
Units and provides a right to use the existing resources at Plant Vogtle,
including the right to use Common Facilities, to the Participating Parties.
Upon the determination of each Participating Party’s Maximum Binding Percentage
Interest (pursuant to Section 3.4 of the Development Agreement) with
respect to the Additional Units, the Agent, on behalf of the Parties, will
determine the metes and bounds of each Identified Site and the locations of
easements pursuant to the Declaration of Covenants.

 

(c)                                  As soon as
practicable after the date of Commercial Operation with respect to each
Additional Unit, the Agent shall prepare and furnish to each Participating
Party descriptions of the Additional Unit Property(ies) in which such
Participating Party has an Ownership Interest setting forth in reasonable
detail the facilities, equipment and other property and rights then
constituting such applicable Additional Unit Property, including all property
(including a metes and bounds description of the Identified Sites), real or
personal, and rights therein jointly paid for under this Agreement.

 

33

 

ARTICLE V

 

AGENCY

 

Section 5.1                                   Appointment.
Each Participating Party hereby irrevocably appoints, subject to the
provisions of Sections 5.3 and 8.9(e), GPC as its agent in connection with the
Additional Units to act on its behalf in the planning, design, licensing,
acquisition, construction, completion, startup, commissioning, renewal,
addition, replacement, modification and Decommissioning of the Additional Unit
Properties. GPC hereby accepts such appointment.

 

Section 5.2                                   Authority
and Responsibility.

 

(a)                                  The Agent shall have
sole authority and responsibility for the planning, licensing, design,
construction, acquisition, completion, startup, commissioning, renewal,
addition, replacement, modification and Decommissioning of each of the
Additional Unit Properties for and on behalf of the Participating Parties, and
shall take all actions necessary in discharging such responsibility in
accordance with the applicable provisions of this Agreement. In respect
thereof, and subject to the applicable provisions of this Agreement, the Agent
is authorized, in the name and on behalf of the Participating Parties, to take
all reasonable actions which, in the discretion and judgment of the Agent, are
deemed necessary or advisable to effect the planning, licensing, design,
construction, acquisition, completion, startup, commissioning, renewal,
addition, replacement, modification and Decommissioning of each of the
Additional Unit Properties, including without limitation the following:

 

(i)                                     The
making of such agreements and modifications of existing agreements (other than
any of the Definitive Agreements or the Development Agreement) and the taking
of such other action as the Agent deems necessary or appropriate, in its sole
discretion, or as may be required under the regulations or

 

34

 

directives of the NRC or such other
regulatory agencies having jurisdiction, with respect to the planning,
licensing, design, construction, acquisition, completion, startup and
commissioning of the Additional Unit Properties for commercial service, and the
renewal, addition, replacement or modification of all or any part thereof,
whether before or after completion, which such agreements and modifications,
together with such existing agreements, shall be held by the Agent for the
benefit of the Participating Parties;

 

(ii)                                  The
making of such agreements and modifications of existing agreements (other than
any of the Definitive Agreements or the Development Agreement) and the taking
of such other action as the Agent deems necessary or appropriate, with the
consent of the Participating Parties owning at least an aggregate 90% Ownership
Interest in the applicable Additional Unit Property, or as may be required
under the regulations or directives of the NRC or such other regulatory
agencies having jurisdiction, with respect to the retirement, Decommissioning
or salvaging of all or any part of the Additional Unit Property, whether
before or after completion, which such agreements and modifications, together
with such existing agreements, shall be held by the Agent for the benefit of
the Participating Parties;

 

(iii)                               The
execution and filing with the NRC, or such other regulatory agency having
jurisdiction, of applications, amendments, reports and other documents and
filings in or in connection with licensing and other regulatory matters with
respect to the Additional Unit Properties; and

 

(iv)                              The
receipt on behalf of the Participating Parties of any notice or other
communication from the NRC or other regulatory agency having

 

35

 

jurisdiction, as to any licensing or other
regulatory matter with respect to the Additional Unit Properties.

 

(b)                                 In
discharging its obligations as agent hereunder, the Agent shall have the right,
on its own behalf and on behalf of the Participating Parties, to provide, or to
contract with any of its Affiliates for the purchase of, At Cost, any equipment
or facilities or the performance of services, At Cost, in connection with any
of the Additional Unit Properties. In the event the Agent proposes to acquire
services for this Agreement from an Affiliate which involve new investment in
excess of twenty five million dollars ($25,000,000) (in 2006 dollars utilizing
the Gross Domestic Product Implicit Price Deflator as reported in the Survey
of Current Business published by the Bureau of Economic Analysis, United
States Department of Commerce, Washington, D.C. as a deflator) in physical
facilities (other than additions to Plant Hatch or Plant Vogtle) in order for an
Affiliate to provide new services to the Additional Units other than those
services supplied by the resources of GPC or its Affiliates as of the Effective
Date, the Agent will confer with the Participating Parties in order to
determine whether the Participating Parties are able and willing to participate
in such investment and to provide an opportunity for such participation; provided,
that the Agent shall endeavor to notify the Participating Parties prior to any
new investment in an Affiliate for such services.

 

(c)                                  All
such agreements described in this Section 5.2 (except for agreements with
Affiliates of the Agent) shall, by their terms, be made assignable by the Agent
to any replacement or successor agent pursuant to this Agreement and the
Amended and Restated Operating Agreement. The Agent will use its reasonable
best efforts to cooperate fully with any replacement or successor agent to
effect the assignment of all agreements described in this Section 5.2
(other than agreements with Affiliates of the Agent) and otherwise to secure
for such

 

36

 

replacement or successor agent the benefits
of any other agreements described in this Section 5.2 (other than
agreements with Affiliates of the Agent).

 

(d)                                 The Agent shall cause
all third parties which are parties to the agreements described in this Section 5.2
to acknowledge the information and audit rights of the Participating Parties
under the Definitive Agreements, and to commit to cooperate with the Agent, the
Participating Parties and their representatives in connection therewith and to
provide information described thereunder (including any information deemed
confidential or proprietary) to the Agent, the Participating Parties and their
representatives, which shall be held in accordance with Section 9.12 of
this Agreement. Information requested by a Participating Party may not be
refused on the grounds that such third party claims such information to be
proprietary if such Participating Party agrees to execute an agreement
satisfactory to any such third party to protect such information from
unwarranted disclosure.

 

Section 5.3                                   Standards
of Conduct.

 

(a)                                  As the sole standards
against which its conduct as agent for the other Participating Parties shall be
measured notwithstanding any provision of law, and as the sole liability for
failure to comply with such standards notwithstanding any provision of
law:  The Agent shall use its reasonable
best efforts to discharge its responsibilities as agent in accordance with
Prudent Utility Practice, and to use its reasonable best efforts, in conformity
with Prudent Utility Practice, to have each of the Additional Units in
Commercial Operation by the dates specified in the notice of Major Milestone
related to each Additional Unit, or such later date as is specified by the
Agent in connection with any deferral permitted under subsection (b) below,
except in connection with any discontinuance of the development or construction
of an Additional Unit or the Additional Units permitted pursuant to subsection (b) below.
In the event

 

37

 

the Agent fails at any time to comply with the provisions of the
preceding sentence, the other Participating Parties, as their sole and
exclusive remedy, legal or equitable, shall have the right, subject to approval
of the NRC, to remove the Agent as agent upon written notice to the Agent
executed by all the other Participating Parties, provided that if an Affiliate
of the Agent has an Ownership Interest in either or both of the Additional
Units, its execution of such notice shall not be unreasonably withheld.
Following receipt of such notice the Agent shall continue as agent for the
other Participating Parties until its successor has been appointed, subject to
approval of the NRC, by the action of Participating Parties owning not less
than an aggregate 90% Weighted Ownership Interest in the Additional Units; provided,
that the concurrence in such appointment by the Agent as a Participating Party
or by any Affiliate of the Agent which has an Ownership Interest in either or
both of the Additional Units shall not be unreasonably withheld. All actions
taken by GPC as Agent prior to the effective appointment of a successor agent
shall be deemed ratified and affirmed by the other Parties.

 

(b)                                 GPC may elect to
discontinue or defer the development or construction of an Additional Unit or
the Additional Units only as provided in Section 3.8 of the Development
Agreement. In addition, if the participation in an Additional Unit is not fully
subscribed at the time the Final Percentage Interests of the Participating
Parties are determined with respect to such Additional Unit, the development of
such Additional Unit shall be deferred until the earlier of (i) the date
the applicable Participating Parties reach agreement on the full subscription
for the development of such Additional Unit, or (ii) the expiration of the
deferral period authorized under Section 3.8 of the Development Agreement.
If the Development Agreement is terminated pursuant to Section 3.8
thereof, then this Agreement shall likewise terminate.

 

38

 

(c)                                  If the sum of GPC’s
and its Affiliates’ Weighted Ownership Interest in the Additional Units is at
any time below 10%, then (i) the other Participating Parties will have the
right, upon written notice, to remove GPC as the Agent in the manner set forth
in Section 5.3(a) above by the action of the other Participating
Parties owning not less than an aggregate 67% Weighted Ownership Interest in
the Additional Units; and (ii) GPC shall have the right to resign from its
duties as Agent hereunder, upon written notice to the other Participating
Parties, and a successor agent shall be selected by the action of the other Participating
Parties owning not less than an aggregate 67% Weighted Ownership Interest in
the Additional Units within one (1) year (or such greater time if the
other Participating Parties are proceeding with due diligence to select and
license a successor agent) of such notice from GPC; provided, that GPC shall
continue to perform the functions of the Agent in accordance with the
provisions of this Agreement, the Amended and Restated Operating Agreement and
the Nuclear Managing Board Agreement and cooperate in the selection and
approval of a successor agent until the successor agent has received approval
from the NRC; provided, further, however that in the event the other
Participating Parties are unable to obtain approval from the NRC of a successor
agent within one (1) year (or such greater time if the other Participating
Parties are proceeding with due diligence to select and license a successor
agent) of GPC’s notice as provided above, then the other Participating Parties
shall pay to GPC an administrative fee each month thereafter equal to ten
percent (10%) of the non-fuel Operation and Maintenance Budget (as defined in
the Nuclear Managing Board Agreement) for each such month after such period,
provided, further that such fee will not be owed if any delay in licensing a
successor agent is caused by the actions of GPC. In the event GPC is removed or
resigns as Agent pursuant to this Section 5.3(c), GPC

 

39

 

simultaneously shall be deemed to have been removed or to have resigned
as Agent under the Amended and Restated Operating Agreement with respect to the
Additional Units.

 

Section 5.4                                   Certain
Liabilities Included in Costs of Construction. Any liability of the
Agent or any Participating Party to any third party which results from any
action or failure to act on the part of the Agent relating to, resulting
from, arising out of or attributable to any of the planning, licensing, design,
acquisition, construction, reconstruction, completion, startup, commissioning,
repair, renewal, modification, replacement, alteration or Decommissioning of,
or addition to, any applicable Additional Unit(s), and any legal fees, defense
costs and costs of investigation relating to any such liability or alleged
liability, shall be included in the Cost of Construction and apportioned among
the Participating Parties pursuant to Sections 7.4 and 7.6 hereof; provided,
however, that the foregoing shall not apply to (i) any liability or
alleged liability of the Agent or of any Party based upon any failure or
alleged failure of responsibility to shareholders, customers, members,
participants, trustees, bondholders or other lenders of the Agent, any Party or
any of their Affiliates or (ii) any liability resulting from any failure
to comply with the provisions of Section 8.1 or any legal fees, defense
costs and cost of investigation relating to any unsuccessful defense against
any such liability.

 

Section 5.5                                   Site
Representatives.

 

(a)                                  Each Participating
Party shall have the right to have a duly authorized representative (each a “Site
Representative”) at each of the applicable Additional Unit sites at all
reasonable times to observe the performance of the Agent hereunder with respect
to each Additional Unit, provided that such Site Representative shall not
interfere with the Agent’s rights and obligations hereunder. A Participating
Party may request in writing to the Agent to place a reasonable number of
additional Site Representatives at either Additional Unit site. The Agent’s

 

40

 

consent to such request shall not be unreasonably withheld or delayed.
In the event that the Agent’s project management reasonably considers that the
conduct of any Site Representative is interfering with such performance, the
Agent may bring such matters to the attention of the management of the
Participating Party which has designated such Site Representative and request
that appropriate measures be taken by such Participating Party to address such
concerns. The management of such Participating Party in response to any such
request shall thereupon take such measures, including at its discretion
replacement of such Site Representative, as it deems appropriate to address
such concerns. If issues of a continuing nature arise involving any Site
Representative, the Nuclear Managing Board will review the circumstances and
make recommendations as appropriate to Participating Party or to the Agent.

 

(b)                                 The Agent will make
available work space for each Participating Party’s Site Representative in proximity to the Agent’s own work space
at each of the Additional Unit sites.

 

(c)                                  The Site
Representatives shall have access to the applicable Additional Unit sites
except as limited by Section 8.12 hereof and any other applicable legal requirements.

 

(d)                                 As a matter of
professional courtesy, and in order to promote good relations with personnel on
the site, the Site Representatives will be invited to attend training,
educational, professional and team-building functions at Plant Vogtle. In order
to assure that they are kept informed about management activities, Site
Representatives will be provided access to (pursuant to Section 5.7) or
copies of daily, weekly and monthly reports that are routinely distributed to
the Agent’s on-site management level personnel with respect to the development,
planning, design, licensing, acquisition, construction, completion, startup,
commissioning, renewal, addition, replacement, modification and/or
Decommissioning of the

 

41

 

Additional Units, at the same time such reports are distributed to such
personnel. Upon initial assignment, a new Site Representative will be invited
to attend as an observer, one of each type of routine management meetings with
respect to the Additional Units, except those devoted to internal personnel
matters and staff working meetings involving conflict resolution activities
where Site Representative presence would be obviously inappropriate. Each Site
Representative (or his designee) may attend any meeting, whether on-site
or off-site, other than (i) personnel or conflict-resolving meetings as
described above, and (ii) any other meetings that the Agent’s project
management or senior management shall reasonably request such Site Representative
not attend. If the management of the Participating Party represented by the
excluded Site Representative disagrees that the closure of meetings or types of
meetings was reasonable, then the management of such Participating Party may request
the management of the Agent to review the matter. If the management of the
Agent concludes that the closure of such meetings was not based on reasonable
grounds, the Participating Party’s Site Representative shall be permitted to
attend such meetings. If the management of the Agent concludes that the closure
was reasonable, and the management of such Participating Party still disagrees,
the matter may be referred to the Nuclear Managing Board for review and
recommendations.

 

(f)                                    Subject to Section 8.12
hereof, each Participating Party shall have the additional right to have its
representatives and guests visit each applicable Additional Unit site, with
prior approval of the Agent, to tour the facilities and observe development and
construction activities. Such representatives and guests shall comply with all
applicable rules and regulations in effect at the plant whether imposed by
governmental authority or by the Agent.

 

Section 5.6                                   Management
Audit; Access to Records. Any Participating Party shall have the right
to conduct a management audit, at its own cost, of the Agent’s performance

 

42

 

hereunder, either by such Participating Party’s own officers and
employees or through its duly authorized agents or representatives (including
any auditor utilized by such Participating Party, or any nationally recognized
accounting firm designated by such Participating Party or by the Administrator
of the Rural Utilities Service). The Agent shall cooperate with such
Participating Party in the conducting of such audit and, subject to the
applicable regulations of the NRC and the requirements of vendors, give such
Participating Party reasonable access to all architectural, engineering and
design drawings and specifications, contracts, books, records, reports or other
documents relating to the applicable Additional Unit(s), and each Participating
Party may make copies of such materials. Following any such management
audit, the Agent shall respond to the findings of such audit if reasonably
requested to do so by a Participating Party. Management audits by individual
Participating Parties shall be coordinated and scheduled through the Agent so
as to minimize the number of audits required. The handling, disclosure and use
of any such information will be governed by the confidentiality provisions of
this Agreement as set forth in Section 9.12.

 

Section 5.7                                   Information
Requirements.

 

(a)                                  The Agent will
provide the Participating Parties with information relating to the development,
planning, design, licensing, acquisition, construction, completion, startup and
commissioning of the Additional Unit Properties and the Costs of Construction
to be paid by the Participating Parties hereunder (collectively, “Relevant
Information”) as provided in this Section 5.7 and other provisions of this
Agreement, with the objective of assuring that the Participating Parties remain
fully informed in a timely manner with respect to matters that could impact
decisions made or to be made by the Project Management Board, the Agent or the
Participating Parties under this Agreement.

 

43

 

(b)                                 The Agent will develop
and maintain a system to permit the Participating Parties (through their
Designated Representatives and Site Representatives, as appropriate) to have
electronic access to Relevant Information except to the extent electronic access
thereto is limited by NRC, Department of Labor or related requirements and the
practicalities and cost-effectiveness of information management and access. The
cost directly associated with the development and implementation of such
system, such as software programming and hardware costs dedicated to the
system, shall be treated as a Cost of Construction. The information provided on
such system shall be in a format and safeguarded as may be reasonably
determined by the Agent. The Agent, after the receipt of input from the
Participating Parties, shall establish and distribute reasonable data exchange
and protection protocols with respect to the access given to the Designated
Representatives and Site Representatives, as applicable, of the Participating
Parties, which such protocols shall include actions in the case of improper
access, user identification and password requirements and similar provisions.

 

(c)                                  Prior to Commercial
Operation of each Additional Unit, as a part of the Relevant Information
made available to the Participating Parties hereunder, the Agent shall issue
periodic, routine reports to the Project Management Board and Designated
Representatives in connection with the development and construction of each
Additional Unit with a frequency commensurate with the project activities and
resource demands, which shall include the following reports:

 

(i)                                     Monthly
reports showing the actual Cost of Construction for the immediately preceding
month as compared against the most recent Pre-Construction Budget or
Construction Budget, as applicable; and

 

44

 

(ii)                                  Monthly
reports showing the status and progress regarding the current schedules for the
development, planning, design, licensing, acquisition, construction,
completion, startup and commissioning of each Additional Unit.

 

At a minimum, such reports will be provided
on a monthly basis. Supplemental reports with respect to major project
decisions will also be published and distributed prior to (at a minimum,
attached to the agenda for such meeting) and in a reasonable time after
meetings of the Project Management Board at which any major project decision is
made.

 

(d)                                 To
the extent a Participating Party requires additional Relevant Information not
available pursuant to Section 5.7(b) or 5.7(c), such Participating
Party may make a formal request for additional information. Such request
will be in writing and will be sent by such Participating Party’s Designated
Representative to the Agent’s Designated Representative. The Agent’s Designated
Representative will diligently respond to such requests. The Agent’s response
to such additional information request shall be in substance and in a format as
reasonably determined by the Agent.

 

(e)                                  All information and
reports required to be provided by the Agent pursuant to this Agreement shall
be in a format as reasonably determined by the Agent such that the
Participating Parties may compare such information and reports to
information and reports previously provided by the Agent.

 

Section 5.8                                   Information
Performance Review. At the end of each year during the term of this
Agreement until the date the final Additional Unit achieves Commercial
Operation, the Agent will review its performance of the access and
information-flow requirements of this Agreement and will solicit feedback from
the Participating Parties regarding such performance

 

45

 

and the opportunity of each of the Participating Parties to provide
input pursuant to Article VI. At any time during this Agreement, any
Participating Party may object to the Agent’s performance of the access
and information-flow requirements of this Agreement or such Participating Party’s
opportunity to provide input under Article VI, by providing written notice
and reasonable detail of such objection to the Agent. The Agent will assess
such objection and attempt to remedy the situation. If such Participating Party
is still dissatisfied, the Participating Party may state its objection to
the Project Management Board to seek resolution, and failing resolution at the
Project Management Board level, may further seek resolution between the
chief executive officers of such Participating Party and the Agent.

 

ARTICLE VI

 

PROJECT
MANAGEMENT BOARD

 

Section 6.1                                   Establishment
and Purpose.

 

(a)                                  The Agent has
established a Project Management Board (“Project Management Board”) for the
oversight of the development, planning, design, licensing, acquisition,
construction, completion, startup and commissioning of the Additional Unit
Properties. The purpose of the Project Management Board is to act as the highly
integrated senior management oversight board that will make major project
decisions for the Agent (with input from the Participating Parties as provided herein)
and will provide a forum for the review and discussion of Relevant Information.
The Project Management Board shall include senior executive representatives of
the Agent and/or its Affiliates from each of the disciplines of power
generation, budgeting and finance, external affairs, and project development.

 

(b)                                 The Project Management
Board shall perform the functions described in this Agreement with respect
to each Additional Unit until the achievement of Commercial

 

46

 

Operation of such Additional Unit, at which time the Project Management
Board’s activities shall be complete in relation to such Additional Unit.

 

Section 6.2                                   Designated
Representatives.

 

(a)                                  Each Participating
Party shall designate (i) a representative to serve as its Designated
Representative for the Project Management Board for purposes of this Agreement,
and (ii) an alternate to act in the place of the Designated Representative
when such Designated Representative is unavailable. Each Participating Party may change
its Designated Representative (or alternate) by giving written notice of the
change to the Agent, which will promptly distribute a revised consolidated list
to all Participating Parties. Each Designated Representative (and alternate)
shall be authorized to represent the Participating Party which appointed him or
her.

 

(b)                                 The Designated
Representatives shall be entitled to attend each meeting of the Project
Management Board and to provide timely input, observations and recommendations
with respect to decisions to be made by the Project Management Board and other
matters affecting the development, planning, design, licensing, acquisition,
construction, completion, startup or commissioning of the Additional Unit
Properties, either at meetings of the Project Management Board or in written
transmittals to the Agent’s Designated Representative. The Project Management
Board shall give due regard to the input, observations and recommendations of
the Designated Representatives.

 

(c)                                  The Agent shall
provide the Designated Representatives with the same information, analyses,
summaries and reports at the same time such information, analyses, summaries or
reports are provided to members of the Project Management Board.

 

47

 

Section 6.3                                   Functions.
The Project Management Board shall perform the following functions:

 

(a)                                  Provide senior
management oversight of the development, planning, design, licensing,
acquisition, construction, completion, startup and commissioning of the
Additional Unit Properties;

 

(b)                                 Disseminate
information and coordinate the functions of the multiple organizations
performing activities for the Agent in relation to the Additional Unit
Properties;

 

(c)                                  Establish overall
schedules for development, planning, design, licensing, acquisition,
construction, completion, startup and commissioning of the Additional Unit
Properties and monitor progress against such schedules;

 

(d)                                 Make major project
decisions relating to the development, planning, design, licensing,
acquisition, construction, completion, startup and commissioning of the
Additional Unit Properties, which include:

 

(i)                                     Selection
of reactor technology to be used and other major project vendors as identified
in the contracting plan, and the contract arrangement(s) and division of work
between the Agent and such vendors;

 

(ii)                                  Design
changes or other matters materially impacting the Pre-Construction Budget or
Construction Budget; and

 

(iii)                               Material
changes to the estimated date of Commercial Operation for either Additional
Unit.

 

(e)                                  Provide a venue for
the review and discussion of all Pre-Construction Budgets and Construction
Budgets and any proposed amendments thereto, as further set forth in Section 7.2
hereof;

 

48

 

(f)                                    Monitor and control
expenditures with respect to Pre-Construction Budgets and Construction Budgets;
and

 

(g)                                 Perform such
other functions as may be conferred upon it by the Agent or as agreed by
the Participating Parties.

 

Section 6.4                                   Chairman
and Chairman’s Duties.

 

(a)                                  An appropriate
officer of the Agent shall be designated by the Agent to be the chairman of the
Project Management Board (the “Chairman”).

 

(b)                                 The Chairman shall
have the following duties:

 

(i)                                     Make
all decisions required to be made by the Project Management Board with respect
to the issues that are reviewed and discussed through the Project Management
Board process.

 

(ii)                                  Schedule meetings
of the Project Management Board at such time and place as the Chairman may determine,
but not less frequently than every other month after the first meeting, unless
the Participating Parties shall otherwise agree;

 

(ii)                                  Provide
notice to the Designated Representatives of (A) each regularly scheduled
Project Management Board meeting at least thirty (30) days in advance of such
meeting, and (B) each supplemental meeting with respect to a major project
decision at least seven (7) days in advance of such meeting (except as
provided in Section 6.6(b)), in each case unless the Participating Parties
consent to shorter notice or an unanticipated exigency arises (and in such
exigent circumstances the Designated Representatives will be provided as much
advance notice as possible);

 

49

 

(iii)                               Preside
at each Project Management Board meeting and conduct all Project Management
Board meetings;

 

(iv)                              Establish
the agenda for each Project Management Board meeting, including all items or
matters as the Chairman may deem appropriate and such items or matters as may be
reasonably requested by a Designated Representative;

 

(v)                                 Notify
all Designated Representatives of the agenda for each meeting as much in
advance of such meeting as may be possible, but in any event no less than
seven (7) days prior to such meeting (or as soon as possible with regard
to supplemental meetings); and

 

(vi)                              Arrange
for the taking of minutes at each Project Management Board meeting.

 

Section 6.5                                   Expenses. Each Participating Party shall be
responsible for the expenses of its Designated Representative (and alternate)
at any Project Management Board meeting. General meeting expenses and all other
expenses necessary in the performance of the Project Management Board functions
shall be allocated and paid as a Cost of Construction.

 

Section 6.6                                   Meetings.

 

(a)                                  The Project
Management Board shall first meet in the first quarter after the Effective Date
and thereafter not less frequently than every other month.

 

(b)                                 To the extent
reasonably practicable, major project decisions will be made at regularly
scheduled Project Management Board meetings. If a major project decision is to
be made before the next regularly scheduled Project Management Board meeting,
the Agent shall schedule a supplemental meeting at which such major project
decision will be made with as

 

50

 

much notice as practicable. In addition, a supplemental meeting shall
be held at the request of any Participating Party to review a new matter of
imminent, substantial importance to the development, planning, design,
licensing, acquisition, construction, completion, startup or commissioning of
an Additional Unit; provided, that the Chairman concurs in the necessity and
appropriateness of such supplemental meeting.

 

(c)                                  Attendance at Project
Management Board meetings shall not be limited to members of the Project
Management Board and Designated Representatives, but the Participating Parties
recognize the practical necessity of limiting the participation to attendees at
any Project Management Board meeting who are not members or Designated
Representatives to those officers, employees, attorneys, accountants or
consultants of any Participating Party who are necessary or appropriate with
regard to the agenda for such meeting, provided any such attorneys, accountants
or consultants must agree to be bound by the confidentiality provisions hereof.
If a Participating Party desires to include any additional attendees as
participants in any Project Management Board meeting, such Participating Party
must submit a written request listing such additional attendees and the purpose
for their attendance. The Chairman may approve or reject the attendance of
any such additional attendees in his or her sole discretion, and subject to
legal requirements, the Chairman may close any meetings of the Project
Management Board to only the members of the Project Management Board and the
Designated Representatives or, upon his or her own motion, conduct any portion
of any meeting in closed session at which attendance may be restricted to
Project Management Board members and Designated Representatives (or their
alternates, and including counsel) and persons invited by the Chairman.

 

51

 

Section 6.7                                   Procedures
and Practices. The
Project Management Board shall develop and adopt, and from time to time, modify
procedures and practices as may be appropriate for the conduct of its
meetings and the performance of its functions, provided that such procedures
and practices shall not be inconsistent with the terms of this Agreement.

 

Section 6.8                                   Rights
of Existing Owners Under Development Agreement  . The provisions of
this Article VI shall supersede and replace the requirements for meetings
and information provided in Section 1.5(d) of the Development
Agreement as to Participating Parties; provided, that if a Party ceases
to be a Participating Party at any time, Section 1.5(d) of the
Development Agreement will remain in effect for such Party.

 

ARTICLE VII

 

BILLING,
PAYMENT AND ACCOUNTING

 

Section 7.1                                   Cost
of Construction; Cost Sharing. The Participating Parties acknowledge
that GPC has made payments of the accumulated Cost of Construction for each
Additional Unit prior to December 31, 2005. GPC’s carrying cost of such accumulated
Cost of Construction shall be added to such accumulated Cost of Construction in
an amount determined pursuant to the formula on Exhibit C and such amounts
will be paid pursuant to Section 4.1 of the Development Agreement.

 

Section 7.2                                   Construction
Budget and Schedules.

 

(a)                                  The
Agent has prepared and delivered to each of the other Participating Parties an
initial pre-construction budget estimate (a “Pre-Construction Budget”) of the
amounts to be expended in each quarter until the end of the next calendar year,
and a summary cash flow to be expended in each quarter to the end of the next
calendar year, for each Additional Unit. By May 1 and November 1 of
each year following the Effective Date, until replaced by the

 

52

 

Construction Budget as provided in subsection (b) below,
the Agent shall provide the Project Management Board and the Designated
Representatives with a revised Pre-Construction Budget for each Additional Unit
which shall (i) describe the items of Cost of Construction and the amounts
expected to be expended therefor for each month during the twelve-month period
commencing on the following January 1 or July 1, as the case may be,
and in each year thereafter to the estimated date of Commercial Operation of
such Additional Unit; and (ii) include a plan and timetable for obtaining
the necessary permits, licenses and approvals from any agency having
jurisdiction over the Additional Units and such other plans, timetables or
schedules, if any, as the Agent may deem appropriate.

 

(b)                                 No
less than thirty days prior to the beginning of construction for an Additional
Unit in accordance with a construction permit or COL issued by the NRC for such
Additional Unit, but no later than the notice of Major Milestone for such
Additional Unit, the Agent will prepare and deliver to the Project Management
Board and the Designated Representatives a construction budget estimate (a “Construction
Budget”) showing the amounts estimated to be expended by the Participating
Parties for the Cost of Construction with respect to such Additional Unit and a
summary cash flow to be expended in each quarter to the estimated date of
Commercial Operation for such Additional Unit. Each such Construction Budget
shall be supported by detail reasonably adequate for the purpose of each
Participating Party’s reasonable review thereof, and which detail shall
include, without limiting the generality of the foregoing, (i) information
demonstrating the basis for all allocations of administrative and general
expenses and (ii) information demonstrating the basis for any other
allocations of expenses between or among the Existing Units and Additional
Units, consistent with the Plant Vogtle Cost Allocation Procedures (as defined
in the Nuclear Managing Board Agreement), and shall also include (I) the

 

53

 

schedule for such Additional Unit
containing a critical path analysis for the design and construction of such
Additional Unit, (II) a plan and timetable for obtaining the necessary permits,
licenses and approvals from any agency having jurisdiction over such Additional
Unit, (III) the then currently expected date of Commercial Operation of such
Additional Unit, and (IV) such other plans, timetables or schedules, if any, as
the Agent may deem appropriate.

 

(c)                                  By
May 1 and November 1 of each year following the delivery of the
initial Construction Budget for an Additional Unit, and until the date of
Commercial Operation of such Additional Unit, the Agent shall provide the
Project Management Board and the other Participating Parties a revised
Construction Budget for such Additional Unit containing the information set
forth in subsection (b) above, and further describing the items of
Cost of Construction and the amounts expected to be expended therefor for each
month during at least the twelve-month period commencing on the following January 1
or July 1, as the case may be, and in each quarter thereafter to the
estimated date of Commercial Operation of such Additional Unit.

 

(d)                                 The
Pre-Construction Budget or Construction Budget, as applicable, (as revised or,
if no revisions were made by the Project Management Board, as originally
submitted) shall be approved on or before January 1 or July 1, as
applicable, by the Participating Parties owning at least an aggregate 90%
Ownership Interest in the applicable Additional Unit, provided that if such
requisite approval is not obtained, the Agent shall utilize the
Pre-Construction Budget or Construction Budget, as applicable, as revised by
the Project Management Board or as originally submitted, if no revisions were
made by the Project Management Board.

 

(e)                                  The
Pre-Construction Budget or Construction Budget, as applicable, may be
changed by the Agent from time to time during a calendar year as necessary to
reflect changes

 

54

 

in permitting and licensing schedules,
pre-development schedules, construction schedules, payment schedules, plans,
specifications or costs, and when so changed shall be submitted similarly to
the Project Management Board and the Participating Parties and adopted as
provided in the preceding subsection.

 

(f)                                    The
Agent shall attempt to construct each Additional Unit in accordance with the
then current Pre-Construction Budget or Construction Budget, as applicable, for
such Additional Unit so that the payments required to be made by Participating
Parties pursuant to this Agreement shall be, as nearly as practicable, within
the current Pre-Construction Budget or Construction Budget, as applicable. The
Agent makes no representation, warranty or promise of any kind as to the
accuracy of any of such Pre-Construction Budget or Construction Budget, as
applicable, or that such attempt to construct each Additional Unit in
accordance with the current Pre-Construction Budget or Construction Budget, as
applicable, will be successful and in no event shall the Agent have any
liability to any other Party in these regards.

 

Section 7.3                                   Construction
Account.

 

(a)                                  After
the Effective Date, the Agent shall establish a separate account or accounts
with respect to each Additional Unit (each such account a “Construction Account”
and collectively the “Construction Accounts”). The amounts held in the
Construction Accounts, which in the discretion of the Agent may be
interest bearing or non-interest bearing, may be physically maintained by
the Agent in one or more bank accounts by a bank or banks the deposits in which
are insured, subject to applicable limits, by the Federal Deposit Insurance
Corporation and which meets or meet all applicable requirements imposed upon
depositaries of the Agent. All moneys for the payment of the applicable Cost of
Construction and Fuel Costs incurred by the Participating Parties after the
Effective Date and prior to Commercial Operation

 

55

 

of each Additional Unit shall be deposited by
the Participating Parties in the applicable Construction Account and the Agent
shall withdraw and apply funds therefrom only as necessary to pay the
applicable Cost of Construction and Fuel Costs. In the event that during any
month the balance in the applicable Construction Account is insufficient to pay
the applicable Cost of Construction and Fuel Costs required to be paid that
month (other than as a result of the non-payment by a Participating Party of an
amount due from it pursuant to Section 7.4 hereof), the Agent shall
promptly so notify the other Participating Parties, by telephone and promptly
confirmed in writing, stating the amount required to be paid by each
Participating Party. Each of the Participating Parties shall pay its respective
share of such deficit into the applicable Construction Account in immediately
available funds not later than on the fifth (5th) banking day after receipt of such notice from the
Agent. The Agent shall have no responsibility or liability to make up any such
deficit out of its own funds in excess of its proportionate share of such
deficit.

 

(b)                                 After the Effective
Date and until the date of Commercial Operation of each Additional Unit, each
Participating Party shall own and maintain its Ownership Interest in the
applicable Construction Account(s); provided, however, that the Agent shall
have the sole right and authority to make withdrawals from the Construction
Accounts; and provided further, that a Participating Party shall not own any
Ownership Interest in any amount in any Construction Account in respect of
interest paid into such Construction Account by or on behalf of such Participating
Party pursuant to the provisions of Section 7.7 hereof, which amount shall
be owned in common, and credited against payments required to be made into such
Construction Account, by the other Participating Parties not then in default in
the performance of their obligations under this Agreement in the proportion
which their Ownership Interests in the applicable Additional Unit bear to each
other.

 

56

 

(c)                                  Upon Commercial
Operation of each Additional Unit, and the settlement of all the obligations
relating to the applicable Cost of Construction of and Fuel Costs for such
Additional Unit incurred prior to the Commercial Operation of such Additional
Unit, the Agent shall close the Construction Account for such Additional Unit
and distribute to each Participating Party its undivided ownership interest of
any balance remaining in such Construction Account, except that if a
Participating Party shall then be in default of its obligations hereunder or under the Amended and Restated
Operating Agreement with respect to any Additional Unit, an amount equal to the
liability of such defaulting Participating Party on account of such default (or
if such amount exceeds such Participating Party’s share of the balance in the
Construction Account, its entire share of such balance) shall first be
distributed to the non-defaulting Participating Parties in the proportion which
their Ownership Interests in the applicable Additional Unit bear to each other.

 

Section 7.4                                   Payments
to be Made During Construction.

 

(a)                                  After the Effective
Date but prior to Commercial Operation of each Additional Unit, the
Participating Parties shall be responsible for, and shall pay, the Cost of
Construction of each Additional Unit incurred after the Effective Date but
prior to Commercial Operation in proportion to their respective Ownership
Interests in such Additional Units in accordance with the further provisions of
this Section 7.4. All Fuel Costs for each Additional Unit incurred after
the Effective Date but prior to Commercial Operation of such Additional Unit
shall be paid by the Parties in accordance with the provisions of Section 4.6
hereof and pursuant to the further provisions of this Section 7.4.

 

(b)                                 The Agent will, on or
before the first (1st) day of each month, notify the Participating
Parties with respect to each Additional Unit of the nature and amount of the
Cost of

 

57

 

Construction and Fuel Costs related to such Additional Unit anticipated
to be incurred during the succeeding calendar month, plus or minus any
adjustments for such costs incurred in prior months but not previously charged
or credited to the Participating Parties. Each Participating Party shall make
payment into the applicable Construction Account in immediately available
funds, in proportion to its Ownership Interest in the applicable Additional
Unit, in accordance with the schedule and invoices determined and
delivered to the Participating Parties by the Agent as described in subsections
(c) and (d) below.

 

(c)                                  The Agent will
invoice each Participating Party for costs incurred from the Effective Date to
the date on which such Participating Party makes its Minimum Binding Percentage
Interest election in proportion to such Participating Party’s Initial
Percentage Interest. The Agent will invoice each Participating Party for costs
incurred after the date of such Participating Party’s Minimum Binding
Percentage Interest election to the date of determination of such Participating
Party’s Maximum Binding Percentage Interest, in proportion to such
Participating Party’s Minimum Binding Percentage Interest. The Agent will
invoice each Participating Party for costs incurred after the determination of
such Participating Party’s Maximum Binding Percentage Interest, in proportion
to such Participating Parties’ Maximum Binding Percentage Interest.

 

(d)                                 Upon the decrease of a
Participating Party’s Initial Percentage Interest in each Additional Unit (per
such Participating Party’s Minimum Binding Percentage Interest election) and
again upon the determination of the Maximum Binding Percentage Interest of such
Participating Party in each Additional Unit, the Agent will reallocate the
Costs of Construction and Fuel Costs invoiced with respect to each Additional
Unit and submit a true-up invoice to such Participating Party to account for
any decrease from such Participating Party’s Initial

 

58

 

Percentage Interest to its Minimum Binding Percentage Interest in such
Additional Unit, and for any increase from such Participating Party’s Minimum
Binding Percentage Interest to its Maximum Binding Percentage Interest in such
Additional Unit, as applicable, including carrying costs calculated in
accordance with the applicable formula set forth on Exhibit C (“True-Up
Invoices”). If a True-Up Invoice shows amounts due from a Participating Party
due to an increase in its Ownership Interest, then such Participating Party
shall reimburse the Agent promptly upon receipt of such invoice. If a True-Up
Invoice shows amounts owed to a Party or Participating Party due to a decrease
from its Initial Percentage Interest to its Minimum Binding Percentage
Interest, then such Party or Participating Party will receive a refund promptly
after receipt of such invoice.

 

(e)                                  Each notification
made by the Agent of anticipated costs and adjustments pursuant to this Section 7.4
shall be accompanied and adjusted by an accounting of costs incurred, as
adjusted, for preceding months. The Agent will provide the Participating
Parties with such information as is reasonably required by them in order to
account for such payments on their books.

 

(f)                                    The
Participating Parties shall have until the one hundred eightieth (180th)
day after (i) the commencement of Commercial Operation of such Additional
Unit or (ii) the receipt of an accounting from the Agent of all items of
the Cost of Construction of and Fuel Costs for such Additional Unit incurred
prior to Commercial Operation thereof, whichever is later, to question or
contest the correctness of any such charge or adjustment made to it pursuant to
this Section 7.4 in respect of such Additional Unit, after which time the
correctness of such charge or adjustment shall be conclusively presumed.

 

59

 

(g)                                 In
the event that the Agent obtains any recovery pursuant to Section 638 of
the Energy Policy Act of 2005, and to the extent a Participating Party
qualifies for such recovery, such recovery will be credited against Cost of
Construction for such eligible Participating Party.

 

Section 7.5                                   Capital
Account.

 

(a)                                  Prior to the
Commercial Operation of each Additional Unit, the Agent shall establish a
separate account or accounts with respect to each Additional Unit (each such
account a “Capital Account” and collectively the “Capital Accounts”). The
amounts held in the Capital Accounts, which in the discretion of the Agent may be
interest bearing or non-interest bearing, may be physically maintained by
the Agent in one or more bank accounts in a bank or banks the deposits in which
are insured, subject to applicable limits, by the Federal Deposit Insurance
Corporation and which meets or meet all applicable requirements imposed upon
depositaries of the Agent. All payments of additional Cost of Construction and
Fuel Costs incurred by the Participating Parties with respect to an Additional
Unit after Commercial Operation of such Additional Unit (provision for which is
made in Section 7.6 hereof) shall be deposited by the Participating
Parties in the applicable Capital Account and the Agent shall withdraw and
apply funds therefrom only as necessary to pay such additional applicable Cost
of Construction and Fuel Costs in accordance with the provisions of Section 7.6
hereof. In the event that during any month the balance in the applicable
Capital Account is insufficient to pay such additional applicable Cost of
Construction and Fuel Costs required to be paid that month (other than as a
result of the non-payment by a Participating Party of an amount due from it
pursuant to Section 7.6 hereof), the Agent shall so notify the other
Participating Parties, by telephone and promptly confirmed in writing, stating
the amount required to be paid by each of them. Each of

 

60

 

the Participating Parties shall pay its respective share of such
deficit into the applicable Capital Account in immediately available funds not
later than on the fifth (5th) banking day after receipt of such
notice from the Agent. The Agent shall have no responsibility or liability to
make up any such deficit out of its own funds in excess of its proportionate
share of such deficit.

 

(b)                                 Each Participating
Party shall own and maintain its Ownership Interest in each applicable Capital
Account; provided, however, that the Agent shall have the sole right and
authority to make withdrawals from the Capital Accounts; and provided
further, that a Participating Party shall not own any Ownership Interest in
any amount in any Capital Account in respect of interest paid into such Capital
Account by or on behalf of such Participating Party pursuant to the provisions
of Section 7.7 hereof, which amount shall be owned in common and credited
against payments required to be made into such Capital Account, by the other
Participating Parties not then in default in the performance of their
obligations under this Agreement in the proportion which their Ownership
Interests in the applicable Additional Unit bear to each other.

 

(c)                                  Upon termination of the
Amended and Restated Operating Agreement and settlement of all obligations
relating to Cost of Construction and Fuel Costs with respect to each Additional
Unit, including all costs incurred in the Decommissioning of each Additional
Unit, the Agent shall close the Capital Accounts and distribute to each
Participating Party its Ownership Interest of any balance remaining in each
Capital Account in which it has an interest, except that if a Participating
Party shall then be in default of its obligations under this Agreement, or the
Amended and Restated Operating Agreement (as to any Additional Unit), an amount
equal to the liability of such defaulting Participating Party on account of
such default (or if such amount exceeds such Participating Party’s share of the
balance in the applicable Capital

 

61

 

Account, its entire share of such balance) shall first be distributed
to the non-defaulting Participating Parties in the proportion which their
Ownership Interests in such Additional Unit bear to each other.

 

Section 7.6                                   Payments
to be Made Following Commercial Operation. The Agent will provide the
Participating Parties with budget estimates of the Cost of Construction and
Fuel Costs to be incurred with respect to each Additional Unit following
Commercial Operation of such Additional Unit, in accordance with Sections 4.4
and 4.5 of the Nuclear Managing Board Agreement. In addition, the Agent will,
on or before the first (1st) day of each month, commencing on the
month immediately preceding the commencement of Commercial Operation of each
Additional Unit, notify the Participating Parties of the nature and amount of
all additional Cost of Construction anticipated to be incurred during the
succeeding calendar month in respect of completions, renewals, additions,
replacements, modifications or Decommissioning related to such Additional Unit,
and the amount of applicable Fuel Costs anticipated to be incurred during such
succeeding calendar month, plus or minus any adjustments for costs incurred in
prior months but not previously charged or credited to the Participating
Parties under the provisions of Section 7.4 or this Section 7.6
hereof. The Agent will give the Participating Parties as much notice as is
reasonably practicable of any major anticipated cost. The Participating Parties
shall make payment into the applicable Capital Account in immediately available
funds, in proportion to their respective Ownership Interests in such Additional
Unit, of such additional Cost of Construction and their respective shares of
such Fuel Costs (in accordance with the provisions of Section 4.6 hereof
and Section 4.3 of the Amended and Restated Operating Agreement) during
such succeeding month in accordance with the schedule determined and delivered
to them by the Agent. Each such notification made by the Agent of anticipated
costs and adjustments shall be

 

62

 

accompanied and adjusted by an accounting of
costs incurred and credits, if any, received for preceding months. The
Participating Parties shall have until the one hundred eightieth (180th) day after the receipt of such accounting from the
Agent for any charge or credit made to it pursuant to this Section to
question or contest the correctness of such charge or credit after which time
the correctness of such charge or credit shall be conclusively presumed;
provided, that such period of time shall be interpreted pursuant to the
agreement of the Parties referenced by Section 9.15(i) of the Nuclear
Managing Board Agreement. The Agent will provide OPC, MEAG and Dalton with such
information as is reasonably required by them in order to account for such
payments and for retirements on their books.

 

Section 7.7                                   Non-Payment.
In the event of a failure of a Participating Party to make any payment when
due under this Agreement, the rights of the Participating Parties shall be as
set forth in this Section 7.7. In addition to the contractual rights set
forth in this Section 7.7, the Participating Parties also establish their
entitlement to the output of capacity and energy of the Additional Units as
expressed in Sections 7.7(b), 7.7(c) and 7.7(e) of this Agreement as
covenants running with the land, which shall be binding not only on the
Participating Parties but also on the successors in title of the Participating
Parties and on any other person acquiring or attempting to perfect or enforce
any interest in or other right with respect of the Ownership Interest of any
Participating Party who takes with notice of this Agreement or of the
co-ownership of the Additional Units by the Participating Parties.

 

(a)                                  There shall be added
to such overdue amount interest from the date such payment was due, compounded
monthly until paid, at an annual rate equal to the Prime Rate  (as in effect from time to time) plus five
percentage points (5%).

 

63

 

(b)                                 Such non-paying
Participating Party shall have no right to any output of capacity or energy of
either Additional Unit or to exercise any other right of a Participating Party
until all amounts overdue, together with interest at the rate provided in
clause (a) of this Section 7.7, have been paid either into the
applicable Construction Account, the applicable Capital Account, or to another
Participating Party which has paid such overdue amount on behalf of such
non-paying Participating Party, as appropriate. Such overdue amounts, together
with such interest, shall be paid into the applicable Construction Account or
the applicable Capital Account only to the extent that such amounts have not
been paid by another Participating Party pursuant to the further provisions of
this Section 7.7. Notwithstanding any of the provisions of this Section 7.7,
if GPC is the non-paying Participating Party, GPC, as Agent, shall continue the
planning, licensing, design, construction, acquisition, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of the Additional Units in accordance with the provisions of this Agreement and
the Amended and Restated Operating Agreement, unless it has been removed as
agent pursuant to Section 5.3 hereof. Subject to the rights of the
Participating Parties pursuant to the further provisions of this Section 7.7
to the output of capacity and energy when making payments on behalf of a
non-paying Participating Party, the Agent may sell the output of capacity
and energy of the non-paying Participating Party from either or both of the
Additional Units, including a sale to another Party, until all amounts due from
the non-paying Participating Party, together with interest at the rate provided
in clause (a) of this Section 7.7, have been paid into the applicable
Construction Account or the applicable Capital Account. Any such sale of output
of capacity and energy of the Additional Units shall not relieve the non-paying
Participating Party from any liability under this Section 7.7 on account
of such non-payment, except that the net proceeds of such sale shall be applied
in

 

64

 

reduction of the liability of such non-paying Participating Party
arising from such non-payment. Any such net proceeds in excess of the amount of
such liability of the non-paying Participating Party shall be applied as a
credit against future payments due from such non-paying Participating Party
under this Agreement.

 

(c)                                  In the event of a
failure of a Participating Party to make any payment when due pursuant to the
provisions of this Agreement, any other Participating Party shall have the
right, but not the obligation, at any time after notice to all other
Participating Parties to make such payment on behalf of the non-paying
Participating Party and to be promptly reimbursed in full therefor by such
non-paying Participating Party, together with interest at the rate provided in
clause (a) of this Section 7.7. In addition, subject to the
provisions of clause (d) of this Section 7.7, the entitlement to the
output of capacity and energy of the Additional Units of any Participating
Party exercising the right to make such overdue payment on behalf of the
non-paying Participating Party shall be increased in proportion to the amount
of the payment made by such paying Participating Party (pursuant to the further
provisions of this Section 7.7(c)), and such paying Participating Party
shall be responsible for the payment of the pro rata share of Fuel Costs and of
Operating Costs (as defined in the Amended and Restated Operating Agreement)
associated with such increased entitlement of output of capacity and energy.
The Participating Party making such payments on behalf of the non-paying
Participating Party shall be entitled to such increased output of capacity and
energy so long as it has not been reimbursed by the non-paying Participating
Party in full for all such payments, together with interest at the rate
provided in clause (a) of this Section 7.7. In the event two or more
Participating Parties shall determine to exercise the aforesaid rights, unless
such Participating Parties shall otherwise agree, the respective portions of
such overdue payment which each shall have the right to pay, and their

 

65

 

respective shares of the output of capacity and energy of the
applicable Additional Unit(s) shall be so increased, on a pro rata basis in
accordance with the proportion which their Weighted Ownership Interests in the
Additional Units bear to each other. Any then remaining output of capacity and
energy of the Additional Units of a non-paying Participating Party may be
sold by the Agent, including a sale to another Party, until all amounts due
from such non-paying Participating Party, together with interest at the rate
provided in clause (a) of this Section 7.7, have been paid either
into the applicable Construction Account, the applicable Capital Account, or to
another Participating Party which has paid such overdue amount on behalf of
such non-paying Participating Party, as appropriate. Any such sale of such
output of capacity and energy of the Additional Units shall not relieve the
non-paying Participating Party from any liability under this Section 7.7
on account of such non-payment, except that the net proceeds of such sale shall
be applied in reduction of the liability of such non-paying Participating Party
arising from such non-payment. Any such net proceeds in excess of the amount of
such liability of the non-paying Participating Party shall be applied as a
credit against future payments due from such non-paying Participating Party under
this Agreement or the Amended and Restated Operating Agreement, as applicable.

 

(d)                                 If the failure of a
Participating Party to make a payment is in respect of a payment due before
Commercial Operation of the applicable Additional Unit, and if any overdue
amount, together with interest at the rate provided in clause (a) of this Section 7.7,
if required, has not been paid by the non-paying Participating Party for a
period of one (1) year or more (even though it may have been paid by
another Participating Party on behalf of the non-paying Participating Party),
each of the other Participating Parties shall have the right, exercisable by
written notice to all other Participating Parties, which right may not be
defeated by any offer or

 

66

 

tender
made in an attempt to cure the default during the ninety (90) days immediately
succeeding such one (1) year period (but may be cured thereafter if the Participating Parties have not
exercised their rights under this Section 7.7(d)), to exercise,
any one or more of the following options in the proportion which their Weighted
Ownership Interests in the Additional Units bear to each other, unless such
Participating Parties agree to a different proportion:

 

(i)            Purchase
free of any encumbrances the non-paying Participating Party’s Ownership
Interest in the applicable Additional Unit(s) by paying to the non-paying
Participating Party its cost as of the date of default and by paying the
aggregate of any amounts unpaid by the non-paying Participating Party as of the
Effective Date either into the applicable Construction Account or to a
Participating Party (including itself) which has paid such aggregate overdue
amount on behalf of such non-paying Participating Party, as appropriate, all
subject to applicable regulatory approvals and the non-paying Party’s ability
to receive a release from any encumbrance upon its Ownership Interest.
Thereafter, the purchasing Participating Party or Parties shall be entitled to
all the selling Participating Party’s rights and be responsible for the
performance of all the selling Participating Party’s obligations hereunder
(except the obligation to pay interest owed pursuant to Section 7.7(a)) and
under the Amended and Restated Operating Agreement relating to the applicable
Additional Unit(s) (including without limitation the payment of the applicable
Cost of Construction, Fuel Costs and Operating Costs). The selling Party shall
thereupon be relieved from such obligations (except the obligation to pay interest
owed pursuant to Section 7.7(a)) and any other obligations to third parties
incidental thereto, which shall be assumed by the purchasing Participating
Party or Parties, and the other Participating Parties shall look solely to the
purchasing Participating Party or Parties for the performance of such
obligations.

 

67

 

(ii)                                  Purchase,
from time to time, free of any encumbrances, a fractional part of the
non-paying Participating Party’s Ownership Interest in the applicable
Additional Unit(s), which shall be designated by the purchasing Participating
Party or Parties, by paying to the non-paying Participating Party its cost of
such fractional interest as of the date of default and by paying the aggregate
of any amounts unpaid by the non-paying Participating Party with respect to
such fractional interest as of the Effective Date either into the applicable
Construction Account or to a Participating Party (including itself) which has
paid such aggregate overdue amount on behalf of such non-paying Participating
Party, as appropriate, all subject to applicable regulatory approvals and the
non-paying Participating Party’s ability to receive a release from any
encumbrance upon the ownership interest being conveyed. Thereafter, the
purchasing Participating Party or Parties shall be entitled to all the selling
Participating Party’s rights and be responsible for performance of all the
selling Participating Party’s obligations hereunder (except the obligation to
pay interest owed pursuant to Section 7.7(a)) and under the Amended and
Restated Operating Agreement relating to such fractional interest (including
without limitation the payment of the applicable Cost of Construction, Fuel
Costs and Operating Costs applicable to the fractional interest so purchased).
The selling Participating Party shall thereupon be relieved from such obligations
(except the obligation to pay interest owed pursuant to Section 7.7(a))
and any other obligations to third parties incidental thereto, which shall be
assumed by the purchasing Participating Party or Parties, and the other
Participating Parties shall look solely to the purchasing Participating Party
or Parties for the performance of such obligations. The selling Participating
Party shall not by the completion of any such transaction be relieved of its
obligations under this Agreement except as in this Section 7.7(d)(ii) specifically
set forth herein. In addition, to the extent permitted by regulatory
authorities and its other contractual obligations,

 

68

 

the selling Participating Party shall be obligated to use the funds it
receives from the completion of any such transaction to make payments toward
the amounts, if any, then due from it under this Agreement and shall, in
furtherance of the carrying out of such obligation, use its best efforts to
request and obtain from any person holding an encumbrance on its Ownership
Interest in the applicable Additional Unit(s) any funds on deposit with such
person attributable to the completion of any such transaction

 

(iii)                               Subject
to applicable regulatory approvals, invest from time to time additional funds
in the applicable Additional Unit(s) and have the respective Ownership
Interests of all the Participating Parties in the applicable Additional Unit(s)
adjusted from time to time so that their respective Ownership Interests in the
applicable Additional Unit(s) will be the same as that which their respective
aggregate payments of the Cost of Construction of the applicable Additional
Unit(s) bears to the total Cost of Construction of the applicable Additional
Unit(s) as of the date of the adjustment. The non-paying Participating Party
shall convey by general warranty deed and other appropriate instruments such
portion of its Ownership Interest as is required to effect such adjustment,
subject only to any then existing first mortgage or deed to secure debt on its
interest and shall use its best efforts to obtain releases from such
encumbrances of the portion of its Ownership Interest being transferred to
accomplish the adjustment. The grantee or grantees under such deed and
instruments shall agree to assume and undertake the performance of all the
obligations of the grantor relating to the applicable Additional Unit(s) under
any mortgage or security deed to which the property conveyed is subject, other
than the payment of interest or principal on any debt.

 

(e)                                  Subject
to any required regulatory approvals, any other Participating Party shall have
the right, but not the obligation, at any time after notice to all other
Participating

 

69

 

Parties to make a loan directly to the non-paying Participating Party,
and to receive adequate security therefor. Such loans shall bear a reasonable
rate of interest. The Participating Party making such a loan may receive,
at its option, an appropriate portion of the output of capacity and energy of
the Additional Units to which the non-paying Participating Party is otherwise
entitled at a cost reflecting the interest rate charged on such loan. In the
event two or more Participating Parties shall determine to exercise the
aforesaid rights, unless such Participating Parties shall otherwise agree, the
money shall be advanced, and their respective security interests shall be
received, on a pro-rata basis in accordance with the proportion which their Weighted
Ownership Interests in the Additional Units bear to each other. GPC further
agrees that if it should be a non-paying Participating Party, it will, if so
requested, use its best efforts to permit said loan to be made in the form of
a purchase by the other Participating Party or Parties of its first priority
bonds, which shall bear interest at the lowest rate, and be for the shortest
term, as that provided in any of the bonds which were offered and sold in the
last public sale of its bonds. To that end, GPC shall take all action and
execute, and file where appropriate, all legal documents which shall be
reasonably requested by the Participating Party or Parties seeking to make the
loan for the purpose of causing additional bonds to be issued, which bonds may be
purchased by the other Participating Party or Parties. The Participating
Parties agree to take all action and execute, and file where appropriate, all
legal documents reasonably requested by the other Participating Parties to
complete the transactions contemplated by the foregoing provisions.

 

(f)                                    In
addition to all other rights of the Participating Parties pursuant to the
foregoing provisions of this Section 7.7, the other Participating Parties
shall have the right, but not the obligation, to make any payment of interest
or principal due and owing from any Participating Party in respect of the
financing of such Participating Party’s obligations hereunder,

 

70

 

which such Participating Party fails to make when due, and in each such
case to be promptly reimbursed in full therefor by such Participating Party,
together with interest at the rate provided in clause (a) of this Section 7.7.
Payments necessary to be made to obtain a release contemplated by Section 7.7(d) from
any encumbrances on a Participating Party’s Ownership Interest in the
applicable Additional Unit(s) may also be made by the non-defaulting
Participating Party or Participating Parties and such Participating Parties
shall be reimbursed as provided above.

 

(g)                                 Any
selling Participating Party pursuant to the provisions of Section 7.7(d)(i) or
(ii) shall take all action and execute, and file where appropriate, all
legal documents which shall be reasonably requested by the purchasing Participating
Party or Parties to complete the transaction of purchase and sale, including
without limiting the generality of the foregoing, using its best efforts to
obtain a release of the Ownership Interest being conveyed from any mortgage,
deed to secure debt or other encumbrance on such interest and to obtain the
approval of the transaction by any regulatory or other authority the approval
of which is required. In addition, any Participating Party in default in making
payments under this Agreement shall use its best efforts to take any and all
such further action and execute, and file where appropriate, any and all such
further legal documents and papers as may be reasonably requested by a
Participating Party not in default which would have the purpose of facilitating
the carrying out of this Agreement or otherwise effectuating its purpose, which
shall include, but not be limited to, action to seek any required regulatory or
other approval or to obtain any other required consent, release, funds on
deposit or amendment or other legal document. The Participating Parties further
agree not to take any action, or otherwise consent to any agreement or
amendment to any agreement, which would expressly prohibit, or the purpose of
which is to make illegal or to

 

71

 

hinder or prevent, the taking of any action contemplated by this
Agreement in the event of a default by a Participating Party.

 

(h)                                 In
the event OPC fails to make any payment when due under this Agreement, the Agent
will give prompt written notice of such default to the Rural Utilities Service
in substantially the form of the notice attached hereto as Exhibit D,
provided that inadvertent failure to provide such notice shall not be
deemed a breach by the Agent of its obligations hereunder.

 

(i)                                     In
the event the Agent undertakes to sell any of the output of capacity and energy
of a non-paying Participating Party from either of the Additional Units
pursuant to Section 7.7(b) or 7.7(c), the Agent will use reasonable
efforts to make any such sale on commercially reasonable terms, taking into
account the facts and circumstances existing at the time of such sale. The
maximum term of any such sale shall be a period of time reasonably determined
by the Agent after consultation with the non-paying Participating Party; provided
that, for the first one hundred and twenty (120) days after the Agent
undertakes to make such sales, the maximum term of any such sale shall be one (1) month.

 

Section 7.8                                   Cost
Audits. In addition to the right to conduct management audits pursuant
to Section 5.6 hereof, each Participating Party shall have the right to
conduct, at its own expense, audits of the Cost of Construction, Fuel Costs and
any other costs charged to and paid by such Participating Party pursuant to
this Agreement. To enable each Participating Party to conduct such audits, the
Agent will provide, during normal business hours and subject to conditions
consistent with the conduct by the Agent of its responsibilities, any
Participating Party, its officers, employees, agents or representatives
(including without limitation any auditor utilized by such Participating Party,
or any nationally recognized accounting firm designated by

 

72

 

such Participating Party or by the Administrator of the Rural Utilities
Service), with access to books, records, contracts and other documents of the
Agent related to its performance (including, without limitation, all agreements
between the Agent and any of its Affiliates, and any amendments) and any
contracts entered into by the Agent on behalf of the Participating Parties,
and, upon such Participating Party’s reasonable request, copies thereof, which
set forth (a) costs applicable to Cost of Construction, Fuel Costs and
other costs for each Additional Unit to the extent necessary to enable the
auditors of such Participating Party to verify that the costs have been
properly billed to the Agent or to such Participating Party pursuant to the
provisions of applicable agreements, and (b) matters relating to the
planning, licensing, design, construction, acquisition, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of either Additional Unit in proceedings before any governmental authority
having jurisdiction.

 

Section 7.9                                   Billing
Disputes.

 

(a)                                  No
payment made pursuant to the provisions of this Agreement shall constitute a
waiver of any right of the Participating Parties to question or contest the
correctness of any charge or credit by the Agent, subject to the time periods
provided herein. Unless otherwise mutually agreed to by the disputing
Participating Party and the Agent, any dispute, controversy or claim arising
out of, under, or relating to this Article 7 (a “Billing Dispute”), shall
be negotiated in good faith in accordance with the provisions of this Section 7.9.
The disputing Participating Party shall first submit the Billing Dispute to the
Accounting Services Committee. If, after thirty (30) days (or any time earlier
if the disputing Participating Party or the Agent wishes to have the Nuclear
Managing Board consider the issue) such discussions are unsuccessful, then the
Billing Dispute will be submitted to the Nuclear Managing Board for

 

73

 

resolution through discussions among the members of the Nuclear
Managing Board. If, after thirty (30) days (or any time earlier if the
disputing Participating Party or the Agent wishes to have the CEOs consider the
issue) such Nuclear Managing Board discussions are unsuccessful, then the chief
executive officers (the “CEOs”) of the Participating Parties and the Agent
shall consider the issue.

 

(i)                                     The process of “good-faith
negotiations” requires that the disputing Participating Party and the Agent set
out in writing to the other its reason(s) for adopting a specific conclusion or
for selecting a particular course of action, together with the subordinate
facts supporting such conclusion or course of action.

 

(ii)                                  The good faith negotiation
process shall also include at least two meetings of the CEOs. Unless otherwise
mutually agreed, the first meeting shall take place within ten (10) calendar
days after the Nuclear Managing Board has failed to resolve the Billing Dispute.
Unless otherwise mutually agreed, the second meeting shall take place no more
than ten (10) calendar days later. In the event the CEO for the Agent
refuses to attend a negotiation meeting of the CEOs, then the disputing
Participating Party may proceed immediately to litigation concerning the
Billing Dispute.

 

(iii)                               In the event the
disputing Participating Party and the Agent remain unsuccessful in resolving a
Billing Dispute for a period of eighty (80) days after the initiation of the
good faith negotiation process, then either of them may proceed
immediately to litigation concerning the Billing Dispute.

 

(b)                                 Each
Participating Party and the Agent hereby agree that all statements made in the
course of dispute resolution, as contemplated in Section 7.9(a), shall be
confidential and shall not be disclosed to or shared with any third parties
(other than counsel and any other person

 

74

 

whose presence is necessary to facilitate the dispute resolution
process). Each Participating Party and the Agent agree and acknowledge that no
statements made in or evidence specifically prepared for dispute resolution
under Section 7.9 shall be admissible for any purpose in any subsequent
litigation.

 

Section 7.10                            Right
of Lenders to Make Payments. The Agent and the Participating Parties
acknowledge that one or more of the Participating Parties anticipate financing
their respective Ownership Interests in the Additional Units by borrowing money
from one or more third party lenders. The Agent and the Participating Parties
agree that any such lender shall be entitled (but will not be obligated) to
make payments (including any interest owed as provided in Section 7.7(a))
directly to the Agent or to any other Participating Party with respect to amounts
owed by its borrower under this Agreement, and any such payments shall be
credited by the recipient to the account of the Participating Party on whose
behalf the payment was made and shall be treated as a payment made directly by
such Participating Party.

 

ARTICLE VIII

 

CERTAIN ADDITIONAL AGREEMENTS

 

The Participating Parties hereby covenant and agree as follows:

 

Section 8.1                                   No
Adverse Distinction. Notwithstanding any other provision of this
Agreement, in discharging their respective responsibilities pursuant to this
Agreement, neither the Agent, as agent or as a Participating Party, nor any of
the other Participating Parties shall make any adverse distinction between
either or both of the Additional Units and any other generating unit (including
an Additional Unit) in which it has an interest because of its co-ownership of
such Additional Unit(s) with the other Participating Parties.

 

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Section 8.2                                   Remedies.

 

(a)                                  Except
as limited by Sections 4.2(d) and 5.3 of this Agreement, a Participating
Party or Participating Parties may take any action, in law or equity, to
enforce this Agreement and to recover for any loss or damage (including
consequential damages), including attorneys’ fees and collection costs,
incurred by reason of any breach of this Agreement or default under this
Agreement.

 

(b)                                 Without
limiting the generality of the foregoing:

 

(i)                                     the
Agent or any non-defaulting Participating Party shall have the right at any
time, and from time to time to sue a non-paying Participating Party to recover
any amount paid by such Participating Party or enforce payment of any and all
amounts (together with interest and attorneys’ fees, if applicable) which a
non-paying Participating Party is obligated by this Agreement to pay but has
not paid and/or to recover any increased costs incurred by the Agent or the
non-defaulting Participating Party as a consequence of the failure of another
Participating Party to make payments for which it is obligated under the term of
this Agreement;

 

(ii)                                  any
non-defaulting Participating Party shall have the right at any time, and from
time to time to set off against amounts owed other than under this Agreement by
a non-defaulting Participating Party to a Participating Party in default any
amounts due such non-defaulting Participating Party from the defaulting
Participating Party under the terms of this Agreement;

 

(iii)                               any
Participating Party shall have the right at any time and from time to time to
seek a declaratory judgment with respect to rights and obligations of the
Parties under Section 7.7 of this Agreement and under the terms of the
deed executed pursuant to Section 4.9(a) of this Agreement; and

 

76

 

(iv)                              any
Participating Party shall have the right at any time, and from time to time to
sue for an accounting among the other Parties so long as such accounting is in
aid of the exercise of any other right of a Participating Party under Section 7.7.

 

(v)                                 Each
Participating Party acknowledges, understands and agrees that a breach of the
requirements on the part of any Participating Party, including the Agent,
to provide information to another Participating Party or Participating Parties,
including those obligations contained in Sections 5.6, 5.7 and 7.8 and Article VI,
will result in irreparable damage and harm to the non-breaching Participating
Party and that the non-breaching Participating Party will not have an adequate
remedy at law in the event of any such breach. Each Participating Party,
therefore, agrees that in the event of a breach or threatened breach of any
such requirements, the non-breaching Participating Party may at its
election and in any court of competent jurisdiction: (a) obtain specific
performance by the breaching Participating Party of such requirements to
provide information; (b) obtain temporary, preliminary and permanent
injunctive relief to prevent noncompliance with or breaches of such
requirements to provide information; or (c) pursue any one or more of the
foregoing or any other remedy available to it. Each Participating Party hereby
waives any requirement that a non-breaching Participating Party post any bond
or other security in connection with the enforcement of such requirements to
provide information. In the event that any action should be brought to enforce
the provisions of such requirements to provide information, no Participating
Party will allege, and each Participating Party hereby waives, the defense or
counterclaim that there is an adequate remedy at law.

 

(c)                                  A
non-breaching Participating Party will not, by seeking or obtaining any
particular relief, be deemed to have precluded itself from obtaining any other
relief to which it

 

77

 

may be entitled, including enforcing any remedies or seeking any
relief as provided under Section 7.7.

 

(d)                                 No
delay or failure to exercise any right or remedy herein provided shall impair
the right to exercise any such right or remedy or be construed to be a waiver
of such right or remedy or of any default by a party, including enforcing any
remedies or seeking any relief as provided under Section 7.7.

 

Section 8.3                                   Cooperation.
The Participating Parties and the Agent will cooperate with each other in
all activities relating to either or both of the Additional Units, including
the filing of applications for authorizations, permits or licenses and the
execution of such other documents as may be reasonably necessary to carry
out the provisions of this Agreement. Without the Agent’s written consent, no
Party (other than a Party that is the Agent) shall incur any obligation which
would or could obligate the Agent to any third party.

 

Section 8.4                                   Approvals.
The Participating Parties and the Agent shall use their best efforts to obtain
as quickly as possible all requisite judicial, governmental, regulatory and
vendor approvals of the consummation of the transactions contemplated hereby.

 

Section 8.5                                   Preservation
of Ecology. The Agent shall acquire, construct and complete the Additional
Units pursuant to this Agreement in such a manner as to maximize preservation
of beauty, conservation of natural resources and minimize marring and scarring
of the landscape and silting of streams. The Agent in the performance of such
work shall use its reasonable best efforts not to deposit trash in streams or
waterways, and not to deposit herbicides or other chemicals or their containers
in or near streams or waterways or pastures.

 

Section 8.6                                   Safety.
In the acquisition, construction and completion of the Additional Units
pursuant to this Agreement, the Agent shall at all times take all reasonable
precautions for

 

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the safety of employees on the work and of the public, and shall comply
with all applicable provisions of federal, state, and municipal safety laws and
building and construction codes, including without limitation, all regulations
of the Occupational Safety and Health Administration.

 

Section 8.7                                   Buy
America.

 

(a)                                  Notwithstanding
anything to the contrary herein contained, the Agent agrees that, upon request
of OPC or the Administrator of the Rural Utilities Service, it shall provide
OPC and the Administrator with such information, documents and certificates as may be
requested with respect to any unmanufactured or manufactured articles, material
and supplies acquired or to be acquired in connection with construction of any
Additional Unit in which OPC has an Ownership Interest. The Agent agrees that,
in the performance of this Agreement, it shall furnish or use or cause to be
furnished or used only such unmanufactured articles, materials and supplies as
have been mined or produced in the United States or any “eligible country” (as
hereinafter defined), and only such manufactured articles, materials and
supplies as have been manufactured in the United States or any eligible country
substantially all from articles, materials or supplies mined, produced, or
manufactured as the case may be, in the United States or any eligible
country; provided, that other articles, materials and supplies may be used
to the extent the Administrator shall expressly in writing authorize such use
pursuant to the Rural Electrification Act of 1936. “Eligible country” shall
mean any country that applies with respect to the United States an agreement
ensuring reciprocal access for United States products and services and United
States suppliers to the markets of that country, as determined by the United
States Trade Representative.

 

79

 

(b)                                 OPC
agrees to be responsible for any and all additional Cost of Construction and
Fuel Costs resulting from the use of such articles, materials and supplies as may be
required by OPC or the Administrator pursuant to this section and which
would not otherwise have been used in the construction, acquisition and
completion of the applicable Additional Unit and the applicable Related
Facilities and for any other costs allocated from the Common Facilities or
otherwise.

 

Section 8.8                                   Compliance
with Laws. In the acquisition, construction and completion of the
Additional Units pursuant to this Agreement, the Agent shall comply with all
applicable statutes, ordinances, rules, and regulations pertaining to the work.
The Agent acknowledges that it is familiar with the Rural Electrification Act
of 1936, as amended, the Anti Kick-Back Act of 1986 (41 U.S.C. 51 et seq.) and
regulations issued pursuant thereto, and 18 U.S.C. §§ 286, 287, 641, 661,
874, 1001, and 1366, as amended. The Agent understands that the obligations of
the Parties hereunder are subject to the applicable regulations and orders of
governmental agencies having jurisdiction in the premises.

 

Section 8.9                                   Equal
Opportunity Clause. During
the term of this Agreement, the Agent agrees as follows:

 

(a)                                  The
Agent will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, age or national origin. The Agent will
take affirmative action to ensure that applicants are employed, and that
employees are treated during employment without regard to their race, color,
religion, sex, or national origin. Such action shall include, but not be
limited to, the following:  Employment,
upgrading, demotion or transfer; recruitment or recruitment advertising; layoff
or termination; rates of pay or other forms of compensation; and selection for
training, including apprenticeship. The Agent agrees to post in

 

80

 

conspicuous places, available to employees and applicants for employment,
notices to be provided setting forth the provisions of this Equal Opportunity
Clause.

 

(b)                                 The
Agent will, in all solicitations or advertisements for employees placed by or
on behalf of the Agent, state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex, age or national
origin. The Agent will send to each labor union or representative of workers
with which it has a collective bargaining agreement or other contract or
understanding, a notice to be provided advising the said labor union or workers’
representative of the Agent’s commitments under this Section 8.9, and
shall post copies of the notice in conspicuous places available to employees
and applicants for employment.

 

(c)                                  The
Agent will comply with all provisions of Executive Order 11246 of September 24,
1965, and with the rules, regulations and relevant orders of the Secretary of
Labor.

 

(d)                                 The
Agent will furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by rules, regulations and relevant orders
of the Secretary of Labor, or pursuant thereto, and will permit access to its
books, records and accounts by the administering agency and the Secretary of
Labor for purposes of investigation to ascertain compliance with such rules,
regulations and orders.

 

(e)                                  In
the event of the Agent’s noncompliance with this Section 8.9 or with any
of the said rules, regulations or orders, this Agreement may be cancelled,
terminated or suspended in whole or in part and the Agent may be
declared ineligible for further government contracts or federally assisted
construction contracts in accordance with procedures authorized in Executive
Order 11246 of September 24, 1965, and such other sanctions may be
imposed and

 

81

 

remedies invoked as provided in Executive Order 11246 of September 24,
1965, or by rule, regulation or order of the Secretary of Labor, or as
otherwise provided by law.

 

(f)                                    The
Agent will include this Equal Opportunity Clause and the No Segregation Clause
set forth in Section 8.10 in every subcontract or purchase order unless
exempted by the rules, regulations or order of the Secretary of Labor issued
pursuant to Section 204 of Executive Order 11246 of September 24,
1965, so that such provisions will be binding upon each subcontractor or vendor.
The Agent will take such action with respect to any subcontract or purchase
order as the administering agency may direct as a means of enforcing such
provisions, including sanctions for noncompliance; provided, however, that in
the event the Agent becomes involved in, or is threatened with, litigation with
a subcontractor or vendor as a result of such direction by the administering
agency, the Agent may request the United States to enter into such
litigation to protect the interests of the United States.

 

Section 8.10                            No
Segregation. The Agent
certifies that it does not maintain or provide for its employees any segregated
facilities at any of its establishments, and that it does not permit its
employees to perform their services at any location, under its control,
where segregated facilities are maintained. The Agent certifies further that it
will not maintain or provide for its employees any segregated facilities at any
of its establishments, and that it will not permit its employees to perform their
services at any location, under its control, where segregated facilities are
maintained. The Agent agrees that a breach of this certification is a violation
of the Equal Opportunity Clause in this Agreement. As used in this
certification, the term “segregated facilities” means any waiting rooms, work
areas, restrooms and washrooms, restaurants and other eating areas, timeclocks,
locker rooms and other storage or dressing areas, parking lots, drinking
fountains, recreation or entertainment areas, transportation, and housing
facilities

 

82

 

provided for employees which are segregated by explicit directive or
are in fact segregated on the basis of race, color, religion, or national
origin, because of habit, local custom, or otherwise. The Agent agrees that
(except where it has obtained identical certifications from proposed
subcontractors for specific time periods) it will obtain identical
certifications from proposed subcontractors prior to the award of subcontracts
exceeding $10,000 which are not exempt from the provisions of the Equal
Opportunity Clause, and that it will retain such certification in its files.

 

Section 8.11                            Debarment
and Suspension. The Agent represents and warrants that neither it nor
any of its “principals” (as defined in 7 C.F.R. Part 3017) is presently
debarred, suspended, proposed for debarment, voluntarily excluded or declared
ineligible by any Federal department or agency from participation in any “covered
transaction” (as defined in 7 C.F.R. Part 3017). The Agent agrees to
comply with Subpart C [Responsibilities of Participants Regarding
Transactions] of 7 C.F.R. Part 3017 in connection with the planning,
design, licensing, acquisition, construction, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of each Additional Unit. The Agent further agrees to cause each party
performing services or providing goods (i) which relate to the planning,
design, licensing, acquisition, construction, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of either Additional Unit or future capital improvements related thereto and (ii) the
payments for which are expected to equal or exceed $25,000 (or such other
amount as is specified from time to time in 7 C.F.R. § 3017.220), to
provide a representation and warranty and agreement substantially identical to
the representation and warranty and agreement in the first two sentences of
this Section 8.11.

 

83

 

Section 8.12                            Plant
Access and Safety Conscious Work Environment.

 

(a)  The Agent has all requisite authority to implement such site
access control and security requirements as the NRC may impose, including
but not limited to the ability to exclude, or remove, persons, equipment,
vehicles and materials from the Identified Sites. Personnel who enter the “Owner
Controlled Area” of the Identified Sites must comply with background check,
fingerprinting and fitness-for-duty policies and procedures as implemented by
the Agent, including for unescorted access to the protected area of the
Identified Sites, screening in accordance with the requirements of Title 10
Code of Federal Regulations Part 73 and Plant Vogtle’s Fitness-for-Duty
program in accordance with Title 10 Code of Federal Regulations Part 26,
as such Parts may be amended or superseded. Except as expressly required
by applicable law or regulation, the Agent’s implementation of the requirements
described in this Section 8.12(a) shall not impair the access and
information rights of the Participating Parties provided under this Agreement,
the Amended and Restated Operating Agreement and the Nuclear Managing Board
Agreement.

 

(b)                                 As
a condition for access to the Identified Sites or for engaging in activities
within the jurisdiction of the NRC, each employee of a Participating Party
shall, at all times, comply with Section 211 of the federal Energy
Reorganization Act of 1974 (“ERA”) which prohibits discrimination against an
employee for engaging in certain “protected activities” and the NRC’s
implementing regulation 10 C.F.R. § 50.7. A Participating Party shall
immediately notify the Agent’s representative, in writing (as specified in Section 9.4),
of any allegation of unlawful discrimination in employment filed by an employee
of the Participating Party with a federal, state or county court or
governmental authority in connection with activities at the Identified Sites. Such
allegations would include any complaint under Section 211 of the

 

84

 

ERA filed with the Department of Labor or any federal agency. No
Participating Party as a condition of employment, by agreement affecting
employment, or otherwise shall prohibit, restrict, or discourage an employee,
or former employee, from providing the NRC, either directly or indirectly, with
information related to, or alleged to relate to, potential violations of NRC
requirements or to unsafe conditions at the Identified Sites.

 

(c)                                  Each
Participating Party shall comply with the reasonable requests of the Agent to
assure that its employees are continuously aware of conditions potentially
adverse to safety or public health, and its employees having access to the
Identified Sites or activities regulated by the NRC feel free to raise safety
concerns to Plant Vogtle management, into Plant Vogtle’s problem identification
and resolution program, to Plant Vogtle’s worker concerns program or to
governmental authorities, and to assure a work environment that encourages
employees to openly communicate and report deficiencies or conditions adverse
to safety.

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1                                   No
Delay. No disagreement or dispute of any kind between or among any of
the Parties concerning any matter, including without limitation, the amount of
any payment due hereunder or the correctness of any charge made hereunder,
shall permit any Party to delay or withhold any payment pursuant to this
Agreement.

 

Section 9.2                                   Further
Assurances. From time to time after the Effective Date, the Parties
will execute such instruments of conveyance and other documents, upon the
request of another Party, as may be necessary or appropriate, to carry out
the intent of this Agreement.

 

Section 9.3                                   Governing
Law. The validity, interpretation, and performance of this Agreement
and each of its provisions shall be governed by the laws of the State of
Georgia.

 

85

 

Section 9.4                                   Notice.
Except as otherwise provided in Sections 5.7, 7.3 and 7.5 hereof, any
notice, request, consent or other communication permitted or required by this
Agreement (including any offer or acceptance pursuant to Section 4.3
hereof) shall (a) be made in writing signed by the party making it; (b) specify
the Section to which it relates; (c) be delivered (i) in person,
(ii) by a nationally recognized next business day delivery service
electing, and being timely delivered to such service for, next business day
delivery, or (iii) by fax and with a confirming copy sent by a nationally
recognized next business day delivery service electing, and being timely
delivered to such service for, next business day delivery; (d) unless
given in person, be given to the address specified below; and (e) be
deemed given or received (i) if delivered in person, on the date of
personal delivery, (ii) if sent by a nationally recognized next business
day delivery service electing, and being timely delivered to such service for,
next business day delivery, on the first business day after so sent, or (iii) if
sent by fax with a copy sent by a nationally recognized business day delivery
service electing, and being timely delivered to such service for, next business
day delivery, on the first business day after so sent. The party giving the
notice or other communication will pay all delivery costs. The addresses and
the requirements for copies are as follows:

 

If to GPC:

 

Georgia Power Company

241 Ralph McGill Boulevard

Atlanta, Georgia 30308

Facsimile No.: 404-506-7985

Attention:  President

 

86

 

If to OPC:

 

Oglethorpe Power Corporation

2100 East Exchange Place

Tucker, Georgia 30084-5336

Facsimile No.: 770-270-7872

Attention: President and CEO

 

If to MEAG:

 

Municipal Electric Authority of Georgia

1470 Riveredge Pkwy, NW

Atlanta, Georgia 30328-4686

Facsimile No.: 770-661-2812

Attention:  President and CEO

 

If to Dalton:

 

The City of Dalton, Georgia

1200 V.D. Parrott, Jr. Parkway

Dalton, Georgia 30721

Facsimile No.: 706-278-7230

Attention:  CEO

 

unless a different officer or address shall have been designated by the
respective Party by notice in writing pursuant to the provisions of this Section 9.4.

 

Section 9.5                                   No
Partnership. Notwithstanding any provision of this Agreement, the
Parties do not intend to create hereby any joint venture, partnership,
association taxable as a corporation, or other entity for the conduct of any
business for profit, and contemplate seeking a ruling of the Internal Revenue
Service that this Agreement has no such effect. The Parties agree timely to
take all voluntary action as may be necessary to be excluded from
treatment as a partnership under the Internal Revenue Code of 1986, as amended,
and, if it should appear that one or more changes to this Agreement would be
required in order to obtain the ruling referred to above, the Parties agree to
negotiate promptly in good faith with respect to such changes.

 

Section 9.6                                   Time
of Essence. Time is of the essence of this Agreement.

 

87

 

Section 9.7                                   Amendments.
This Agreement may be amended by and only by a written instrument duly
executed by each of the Parties hereto.

 

Section 9.8                                   Successors
and Assigns. This Agreement shall inure to the benefit of and be
binding upon each of the Parties and their respective successors and assigns. Nothing
in this Agreement, express or implied, is intended, to confer upon any other
person any rights or remedies hereunder.

 

Section 9.9                                   Counterparts.
This Agreement may be executed simultaneously 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.

 

Section 9.10                            Several
Agreements. Notwithstanding anything to the contrary set forth herein,
the agreements and obligations of the Parties set forth in this Agreement shall
be the several, and not joint, agreements and obligations of the Parties.

 

Section 9.11                            Computation
of Ownership Interest. Notwithstanding any other provision of this
Agreement whenever, pursuant to any provision of this Agreement, any action is
required to be agreed to or taken by Parties hereunder, (i) only those
Parties not in default in the payment of any amounts (together with interest,
if appropriate) required under any provisions of this Agreement or the Amended
and Restated Operating Agreement at the time such action is to be agreed to or
taken shall have the right to participate in such agreement or the taking of
such action and (ii) the computation of the aggregate percentage Ownership
Interest in the applicable Additional Units owned by Participating Parties
agreeing to or taking any such action shall be based solely upon the Ownership
Interests in the applicable Additional Units owned by Participating Parties not
so in default.

 

88

 

Section 9.12                            Confidentiality.

 

(a)                                  The
Parties recognize that there are, or may be in the future, certain
contracts, records, drawings, data or other documents or information relating
to the planning, design, licensing, acquisition, construction, completion,
startup, commissioning, renewal, addition, replacement, modification or
Decommissioning of the Additional Units, which is labeled by the Party
providing such information as proprietary, confidential or privileged (the “Confidential
Information”), and, in some cases, is subject to a contractual obligation to
another person which requires that such information not be disclosed without the
express approval of such other person. Information provided orally shall be
deemed “Confidential Information” if the disclosing Party states that such
information is confidential at the time of such disclosure and, within ten (10) days
thereafter, provides the receiving Party written confirmation of the
confidential nature of the information so disclosed.

 

(b)                                 Each
of the Parties agrees, notwithstanding any other provision of this Agreement,
that it shall use any Confidential Information only in the exercise of its
respective rights and obligations hereunder, and that any Confidential
Information which is disclosed to it shall not be disclosed other than as
permitted under this Section 9.12 to any other entity or to any person who
is not an officer, director, employee or attorney, respectively, of the Party; provided,
however, that the respective lessors, mortgagees and security deed holders,
including prospective lessors, mortgagees or security deed holders, of any of
the Participating Parties and any credit rating agencies and other financing
entities that need to know such information in connection with the financing of
a Participating Party’s Ownership Interest shall be entitled to examine (but
not to copy) at the offices of the Agent or the Participating Party whose
lessor, mortgagee or security deed holder or any such credit rating agency or
financing entity desires to examine such

 

89

 

information, any Confidential Information; and provided further, however,
that the Parties may disclose any such information as required by any
governmental or regulatory authority (including the Rural Utilities Service)
having jurisdiction or as necessary to comply with legal requirements.

 

(c)                                  Each
of the Parties agrees to take all reasonable steps to protect the proprietary,
privileged or confidential nature of all Confidential Information furnished to
it, including, without limitation: (i) limiting access to and disclosure
of such Confidential Information only to: (A) its officers, directors,
employees or attorneys who have a need for access to such Confidential
Information reasonably related to the exercise of any rights of the Parties
hereunder, (B) the respective lessors, mortgagees and security deed
holders, including prospective lessors, mortgagees and security deed holders,
and credit rating agencies and financing parties, of the Participating Parties
only as permitted by the provisions of Section 9.12(b), and (C) to
those persons to which access is required by any governmental or regulatory
authority or as necessary in order to comply with legal requirements; and (ii) ensuring
that those persons receiving any such Confidential Information understand the
proprietary, confidential or privileged nature of such Confidential
Information.

 

(d)                                 In
the event that a Party considers it necessary or desirable to disclose or
provide copies or summaries of or access to any Confidential Information to any
person not its employee, director, officer or attorney, and such disclosure is
not otherwise permitted by this Section 9.12 and such disclosure is to a
contractor, agent, representative or consultant of such Party which reasonably
requires such Confidential Information to assist the Party in the exercise of
its rights as a Party or to perform its responsibilities with regard to
the planning, design, licensing, acquisition, construction, completion,
startup, commissioning, renewal, addition,

 

90

 

replacement, modification or Decommissioning of the Additional Units,
then the Party may provide such information to such person only when such
person shall have signed an agreement obligating such person to: (i) safeguard
the confidentiality of such Confidential Information; (ii) use such Confidential
Information only for the purpose of executing its responsibilities regarding
the Additional Units; and (iii) return or destroy all copies of any
documents containing such Confidential Information upon the completion of its
responsibilities. The Party shall advise the person or persons designated by
the Party originally furnishing such Confidential Information, by telephone or
otherwise, of the Confidential Information to be disclosed and shall provide
such furnishing Party a copy of each such executed confidentiality agreement
within ten (10) days of execution, together with a list of all documents
provided by the Party containing Confidential Information which have been given
to such person, which such Party shall update each time additional documents
are provided to such person.

 

(e)                                  The
obligations of the Parties pursuant to the provisions of this Section 9.12
shall survive the termination of this Agreement and continue to bind the
Parties, in the case of Confidential Information which is not a trade secret,
for a period of five years following the termination of this Agreement, and, in
the case of trade secrets, for so long as they remain trade secrets.

 

(f)                                    The
restrictions of this Section 9.12 shall be in addition to any restrictions
imposed by law upon the Participants in the absence of contract.

 

Section 9.13                            Termination
of Participation. If at any time during the term of this Agreement a
Party no longer has any Ownership Interest in any Additional Unit and therefore
is no longer a Participating Party hereunder, such Party shall no longer be a
Party under this Agreement, except for purposes of Section 9.12 regarding
a Party’s obligations with respect to

 

91

 

Confidential Information and Section 4.9 respecting such Party’s
obligation to convey certain property interests to the Participating Parties
and other provisions implementing the Parties’ intentions pursuant to the
Development Agreement.

 

92

 

IN WITNESS WHEREOF the undersigned parties hereto have duly executed
this Agreement in Atlanta, Georgia, on the date first above written.

 

	
  Signed,
  sealed and delivered in the presence 

  of:

  	
  GEORGIA POWER COMPANY

  
	
   

  	
  By:
  

  	
  /s/ Michael D. Garrett

  	
   

  
	
  /s/  Cofield Widner

  	
   

  	
  Name:
  Michael D. Garrett

  
	
  Witness

  	
   

  	
  Its:
  President and CEO

  
	
  /s/  Kim N. Kimball

  	
   

  	
   

  
	
  Notary
  Public

  	
   

  	
  Attest:
  

  	
  /s/ Daniel Lowery

  	
   

  
	
  My
  Commission expires:

  	
  Its:
  Secretary

  
	
  Notarial
  Seal

  	
  (CORPORATE
  SEAL)

  
	
   

  	
   

  
	
  Signed,
  sealed and delivered in the presence 

  of:

  	
  OGLETHORPE POWER CORPORATION

  (AN ELECTRIC MEMBERSHIP 

  
	
   

  	
  CORPORATION)

  
	
  /s/ Michael W. Price

  	
   

  	
   

  
	
  Witness

  	
  By:

  	
  /s/
  Thomas A. Smith

  	
   

  
	
   

  	
  Name:
  Thomas A. Smith

  
	
  /s/
  Sharon H. Wright

  	
   

  	
  Its:
  President and Chief Executive Officer

  
	
  Notary
  Public

  	
   

  
	
  My
  Commission expires: October 14, 2007

  	
  Attest:

  	
  /s/
  Patricia N. Nash

  	
   

  
	
  Notarial
  Seal

  	
  Its:
  Secretary

  
	
   

  	
  (CORPORATE
  SEAL)

  
	
   

  	
   

  
	
  Signed,
  sealed and delivered in the presence 

  of:

  	
  MUNICIPAL ELECTRIC AUTHORITY OF 

  GEORGIA

  
	
   

  	
   

  
	
  /s/  Peter M. Degnan

  	
   

  	
  By:
  

  	
  /s/  Robert
  P. Johnston

  	
   

  
	
  Witness

  	
  Name:
  Robert P. Johnston

  
	
   

  	
  Its:
  President and Chief Executive Officer

  
	
  /s/  Nancy Zindars

  	
   

  	
   

  
	
  Notary
  Public

  	
  Attest:
  

  	
  /s/  James E. Fuller

  	
   

  
	
  My
  Commission expires:

  	
  Its:
  Senior Vice President and CFO

  
	
  Notarial
  Seal

  	
  (CORPORATE
  SEAL)

  
	
   

  	
   

  
	
  Signed,
  sealed and delivered in the presence 

  of:

  	
  CITY OF DALTON, GEORGIA

  BY: BOARD OF WATER, LIGHT AND 

  
	
  /s/
  Tom A. Bundros

  	
   

  	
  SINKING FUND COMMISSIONERS d/b/a 

  
	
  Witness

  	
  DALTON UTILITIES

  
	
   

  	
   

  
	
  /s/
  Pam Witherow

  	
   

  	
  By:

  	
  /s/
  Don Cope

  	
   

  
	
  Notary
  Public

  	
  Name:
  Don Cope

  
	
  My
  Commission expires: July 14, 2007

  	
  Title:
  President and Chief Executive Officer

  
	
  Notarial
  Seal

  	
  Attest:

  	
  /s/
  Kelly Jones

  	
   

  
	
   

  	
  Title:
  Vice President Human Resources

  
	
   

  	
  (SEAL)

  
								

 

93

 

APPENDIX A

 

SCHEDULE OF DEFINITIONS

 

Unless otherwise expressly stated, when used in this Agreement, the
following capitalized terms and phrases shall have the respective meanings, as
and when used in this Agreement, stated in this Schedule of Definitions:

 

“Accounting Services Committee”
has the meaning given such term under the Nuclear Managing Board Agreement.

 

“Additional Unit Property”
means with respect to an Additional Unit, (a) the Identified Site related
to such Additional Unit, together with all such additional land or rights
therein as may have been or may hereafter be acquired for the purpose
specified in clause (d) below;

 

(b)                                 Such
Additional Unit, including the nuclear power reactors, the turbine-generators,
the buildings housing the same, the associated auxiliaries and equipment and
the step-up substation, all as more particularly described in the ESP and/or
COL application(s) to the NRC;

 

(c)                                  Inventories
of materials, supplies, fuel (including the initial nuclear fuel cores), tools
and equipment for use in connection with such Additional Unit;

 

(d)                                 Such
additional land or rights therein as may be acquired, and such additional
facilities and other tangible property as may be acquired, constructed,
installed or replaced in connection with such Additional Unit, provided that (i) the
cost of such additional land or rights therein or of such additional facilities
or other tangible property shall be properly recordable in accordance with the
Uniform System of Accounts, (ii) such additional land or rights
therein or such additional facilities or other tangible property shall have
been acquired, constructed, installed or replaced for the common use of the
Participating Parties to such Additional Unit

 

A-1

 

under and
subject to the provisions of the Additional Units Ownership Agreement, and (iii) such
additional land or rights therein or such additional facilities or other
tangible property shall (1) be necessary in order to construct or complete
such Additional Unit, or to keep such Additional Unit in good operating
condition or to satisfy the requirements of any governmental agency having
jurisdiction over such Additional Unit, or (2) be agreed to by the
Participating Parties owning at least an aggregate 90% Ownership Interest
in such Additional Unit; and

 

(e)                                  Subject
to the provisions of Section 5.2 of the Additional Units Ownership
Agreement, existing intangible property rights and such additional intangible
property rights as may be hereafter acquired associated with the planning,
licensing, design, construction, acquisition, completion, startup,
commissioning, renewal, addition, replacement, modification and Decommissioning
of such Additional Unit.

 

“Additional Unit Properties”
means the Additional Unit Property with respect to both Additional Units.

 

“Additional Unit” means
one of the Additional Units.

 

“Additional Units” means
the two additional generating units to be located at Plant Vogtle and to which
the Development Agreement relates, as more particularly described in the ESP
and/or COL application to be submitted by the Agent to the NRC.

 

“Additional Units Ownership Agreement”
or this “Agreement” means this
Alvin W. Vogtle Additional Units Ownership Participation Agreement.

 

“Affiliate” of any
specified entity, means any other entity directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
entity. For purposes of this definition, “control” when used with respect to
any entity means the power to direct the management and policies of such
entity, directly or indirectly, whether

 

A-2

 

through the ownership of voting securities, by contract or otherwise;
and the terms “controlling” and “controlled” have meanings correlative to the
foregoing.

 

“Agent” means GPC or a
successor agent, in its capacity as agent for the Participating Parties as
provided for in this Agreement.

 

“Amended and Restated Operating Agreement” means
the Plant Alvin W. Vogtle Nuclear Units Amended and Restated Operating
Agreement among GPC, OPC, MEAG and Dalton dated as of the Effective Date.

 

“At Cost” means (i) the
actual direct costs incurred for such service, equipment or materials, wherever
feasible and (ii) where appropriate, a reasonable allocation of indirect
costs, such as overhead, relating to the purchase or provision of such
services, equipment or materials, on a consistent basis with the allocations
among GPC and its Affiliates.

 

“Bankrupt” means
with respect to any entity, such entity (i) files a petition or otherwise
commences, authorizes or acquiesces in the commencement of a proceeding or
cause of action under any bankruptcy, insolvency, reorganization or similar
law, or has any such petition filed or commenced against it, (ii) makes an
assignment or any general arrangement for the benefit of creditors, (iii) otherwise
becomes bankrupt or insolvent (however evidenced), (iv) has a liquidator,
administrator, receiver, trustee, conservator or similar official appointed
with respect to it or any substantial portion of its property or assets, or (v) is
generally unable to pay its debts as they fall due.

 

“Capital Account” and “Capital Accounts” have the meanings given
such terms in Section 7.5.

 

A-3

 

“COL” or “Combined Construction and Operating License”
means a Combined Construction and Operating License issued by the NRC in
accordance with Title 10, Code of Federal Regulations, Part 52, and
associated regulations.

 

“Commercial Operation”
means midnight following the achievement of all of the following with respect
to an Additional Unit: (i) successful completion of the requisite
performance test provided for in the agreement between GPC and the vendor
relating to such Additional Unit nuclear steam supply system; (ii) demonstration
by the Agent that such Additional Unit is capable of producing energy and
delivering same to the transmission system; and (iii) such Additional Unit
is declared available for dispatch.

 

“Common Facilities” means
the infrastructure and systems supporting Plant Vogtle and the Existing Units.

 

“Confidential Information”
has the meaning given such term in Section 9.12.

 

“Construction Account” and
“Construction Accounts” have the
meanings given such terms in Section 7.3.

 

“Construction Budget” has
the meaning given such term in Section 7.2(b).

 

“Cost of Construction”
means, with respect to an Additional Unit, all costs incurred by the Agent on
its own behalf prior to the Effective Date or on its own behalf and as agent
for the other Participating Parties in connection with the planning, design,
licensing, acquisition, construction, completion, startup, commissioning,
renewal, addition, modification, replacement or Decommissioning of the
applicable Additional Unit Property, or any portion thereof, including that portion
of administrative and general expenses incurred by the Agent which is properly
and reasonably allocable to such Additional Unit Property and for which the
Agent has not been otherwise reimbursed by the other Participating Parties,
which costs are properly

 

A-4

 

recordable in accordance with the Electric Plant Instructions (as
defined in the Uniform System of Accounts) and in appropriate accounts as
set forth in the Uniform System of Accounts; provided, however, Cost of
Construction shall not include interest cost attributable to the carrying of
GPC’s respective investment in such Additional Unit Property, nor costs and
expenses incurred by GPC in connection with the development and negotiation of
the Additional Units Ownership Agreement, the Amended and Restated Operating
Agreement, the Nuclear Managing Board Agreement or Development Agreement.

 

“Dalton” means the City of
Dalton, Georgia, acting by and through its Board of Water, Light and Sinking
Fund Commissioners, and its respective successors and assignees.

 

“Declaration of Covenants”
means the Declaration of Covenants and Cross-Easements among GPC, OPC, MEAG and
Dalton, dated as of the Effective Date, the form of which is attached as Exhibit A-2
to this Agreement.

 

“Decommissioning”
means with respect to each Additional Unit, the removal of such Additional Unit
from service, the dismantlement, demolition and disposal of such Additional
Unit and the reduction of residual radioactivity at Plant Vogtle with respect
to such Additional Unit to a level that permits the release of the property at
Plant Vogtle related to such Additional Unit to unrestricted use and
termination of the licenses issued by the NRC or release of the property under
conditions as may be required or approved by the NRC and termination of
such licenses (as described in 10 CFR § 50.2).

 

“Definitive Agreements”
means the Additional Units Ownership Agreement, the Amended and Restated
Operating Agreement, the Nuclear Managing Board Agreement and the Declaration
of Covenants.

 

A-5

 

“Designated Representative”
means (a) the representative designated by a Participating Party pursuant
to Section 6.2 to be its representative for purposes of the Project
Management Board and to coordinate inquiries of the Agent pursuant to Section 5.7,
and (b) the representative of the Agent designated to respond to such
inquiries. When this Agreement provides that the supply of information or any
request for information is to be through a Designated Representative, the Agent
or any Participating Party may identify a particular employee to serve as
its Designated Representative for any particular category of information where
the location or specialized nature of the information makes reliance on a
specialized delegate more efficient than relying on the primary Designated
Representative, and any such employee so designated shall be deemed the
Designated Representative for such purposes. In addition, when this Agreement
specifies that the Designated Representative is to have electronic access or is
to be provided with reports or other information, each Participating Party may identify
a reasonable number of employees to have such access (subject to the access
requirements of this Agreement) or to be provided with such reports or other
information, and any employees so designated shall be deemed Designated
Representatives for such purposes. If the Agent reasonably finds it cumbersome
or impractical to recognize such a delegate or delegates or determines there
are an excessive number of delegates, the Agent’s Designated Representative may raise
an objection to the delegation(s) to such Participating Party’s Designated
Representative. If the Designated Representatives of the Agent and such
Participating Party are unable to reach a mutually satisfactory resolution within
thirty (30) days, either the Agent or such Participating Party may submit
the dispute for resolution pursuant to the dispute resolution process set forth
in Section 9.14 of the Nuclear Managing Board Agreement.

 

A-6

 

“Development Agreement”
means the Plant Vogtle Owners Agreement Authorizing Development, Construction,
Licensing and Operation of Additional Generating Units among GPC, OPC, MEAG and
Dalton dated as of May 13, 2005, as amended.

 

“Effective Date”
means April 21, 2006.

 

“ESP” or “Early Site Permit” means an Early Site
Permit issued by the NRC in accordance with Title 10, Code of Federal
Regulations, Part 52 and associated regulations.

 

“Existing Owner” means an
owner of the Existing Units in its capacity as an owner of the Existing Units.

 

“Existing Units Ownership Agreement”
consists of The Alvin W. Vogtle Nuclear Units Numbers One and Two Purchase and
Ownership Participation Agreement among GPC, OPC, MEAG and Dalton, dated August 27,
1976, as amended January 18, 1977 and February 24, 1977, and a
Purchase, Amendment, Assignment and Assumption agreement between GPC and MEAG
dated April 9, 1985 as amended.

 

“Existing Units” means
Vogtle Unit No. 1 and Vogtle Unit No. 2, as defined in the Existing
Units Ownership Agreement.

 

“FERC” means the Federal
Energy Regulatory Commission.

 

“Final Percentage Interest”
means, with respect to each Participating Party and each Additional Unit, the
Maximum Binding Percentage Interest of such Participating Party in such
Additional Unit, as supplemented or reduced in accordance with Section 3.7
of the Development Agreement following the delivery by the Agent of the Major
Milestone notice with respect to such Additional Unit as provided therein.

 

“Fuel Costs” means, with
respect to an Additional Unit, all costs incurred by the Participating Parties
during any year that are allocable to the acquisition, processing, design,

 

A-7

 

fabrication, transportation, delivering, reprocessing, storage and
disposal of nuclear materials required for such Additional Unit, including
transfers to reserves established for such costs related to future years, less
credits related to such costs applied as appropriate, and including that portion
of administrative and general expenses incurred by the Agent which is properly
and reasonably allocable to acquisition and management of nuclear fuel for such
Additional Unit and for which the Agent has not been otherwise reimbursed by
the other Participating Parties.

 

“GPC” means Georgia Power
Company, a corporation organized and existing under the laws of the State of
Georgia, and its successors and assigns.

 

“Identified Site” means,
with respect to each Additional Unit, the portion of the Identified Sites that
relates to such Additional Unit as identified pursuant to Section 4.9(b) and
the Declaration of Covenants.

 

“Identified Sites”
consists of the location of the property within Plant Vogtle that will be
occupied by the Additional Units as set forth on Exhibit A-1 hereto.

 

“Indemnitee” means the Existing Owners and their respective
affiliates, successors, assigns, agents, directors, officers and employees and
the Participating Parties and their respective affiliates, successors, assigns,
agents, directors, officers and employees.

 

“Initial Percentage Interest”
means, with respect to each Participating Party and each Additional Unit, the
interest in such Additional Unit elected by such Participating Party on or
before December 31, 2005, in accordance with Section 3.0 of the
Development Agreement, as such interest may be increased or decreased on
or before October 1, 2007.

 

“Major Milestone” means,
with respect to each Additional Unit, the award of the first major equipment
contract, such as the definitive, evaluated bid of either a nuclear steam
supply system, or a contract of equivalent significance, for each such
Additional Unit.

 

A-8

 

“Maximum Binding Percentage Interest”
means, with respect to each Participating Party and each Additional Unit, the
Minimum Binding Percentage Interest of such Participating Party in such
Additional Unit, as supplemented by any Supplemental Percentage Interest of
such Participating Party.

 

“MEAG” means the Municipal
Electric Authority of Georgia, a public corporation and an instrumentality of
the State of Georgia, and its successors and assigns.

 

“Minimum Binding Percentage Interest”
means, with respect to each Participating Party and each Additional Unit, the
Initial Percentage Interest of such Participating Party in such Additional
Unit, as supplemented or reduced in accordance with Sections 3.1 and 3.2 of the
Development Agreement.

 

“NRC” means the United
States Nuclear Regulatory Commission or any successor agency authorized to
regulate and license utilization facilities pursuant to the Atomic Energy Act
of 1954 as amended.

 

“Nuclear Managing Board”
means the board established pursuant to Section 2.1 of the Nuclear
Managing Board Agreement.

 

“Nuclear Managing Board Agreement”
means the Second Amended and Restated Nuclear Managing
Board Agreement, dated as of the Effective Date.

 

“OPC” means Oglethorpe
Power Corporation (An Electric Membership Corporation), an electric membership
corporation organized and existing under laws of the State of Georgia, and its
successors and assigns.

 

“OPC Indenture”
means that certain Indenture, dated as of March 1, 1997, made by OPC to
SunTrust Bank, as Trustee, as amended and supplemented from time to time, or
any successor security instrument or other security instrument under which OPC
has granted a

 

A-9

 

security title and lien in its Ownership Interest in the Additional
Units as security for indebtedness.

 

“Operating Costs” means,
with respect to each Additional Unit, all costs and expenses (other than Fuel
Costs) incurred by the Agent which are properly and reasonably allocable to
such Additional Unit and for which the Agent has not been otherwise reimbursed
by the other Participating Parties, and which costs and expenses are properly
recordable in accordance with the Operating Expense Instructions (as defined in
the Uniform System of Accounts) and in appropriate accounts as set forth
in the Uniform System of Accounts.

 

“Ownership Agreements”
means the Additional Units Ownership Agreement and the Existing Units Ownership
Agreement.

 

“Ownership Interest”
means, with respect to each Party and Participating Party, as applicable: (a) such
Party’s Pro Rata Interest in the Existing Units, and (b) with respect to
each Additional Unit, such Participating Party’s Initial Percentage Interest,
Minimum Binding Percentage Interest, Maximum Binding Percentage Interest, and
Final Percentage Interest in such Additional Unit.

 

“Participating Party”
means a party that has elected to participate in the ownership of at least one
Additional Unit and which has not reduced its Ownership Interest in both
Additional Units to zero.

 

“Party” or “Parties” means GPC, OPC, MEAG and Dalton,
and as the context requires, means Participating Party or Participating Parties
if the undivided ownership interests of GPC, OPC, MEAG and Dalton are
implicated.

 

“Plant Vogtle” means the
Alvin W. Vogtle Nuclear Plant, which consists of:

 

A-10

 

(a)                                  The
land described in Exhibits Al and A2 attached to the Existing Units Ownership
Agreement, together with all such additional land or rights therein as may have
been or may hereafter be acquired for the purpose specified in clause (d) below,
less and except therefrom all property, rights and interests therein which are
no longer subject to the Existing Units Ownership Agreement;

 

(b)                                 The
Existing Units and the Additional Units, including the nuclear power reactors,
the turbine-generators, the buildings housing the same, the associated
auxiliaries and equipment and the step-up substation, with respect to the
Existing Units, all as more particularly described in the Application referred
to in the recitals to the Existing Unit Ownership Agreement and, with respect
to the Additional Units, as more particularly described in the ESP and/or COL
applications submitted to the NRC for such Additional Unit;

 

(c)                                  Inventories
of materials, supplies, fuel (including the initial nuclear fuel cores), tools
and equipment for use in connection with Plant Vogtle;

 

(d)                                 Such
additional land or rights therein as may be acquired, and such additional
facilities and other tangible property as may be acquired, constructed,
installed or replaced in connection with Plant Vogtle, provided that (i) the
cost of such additional land or rights therein or of such additional facilities
or other tangible property shall be properly recordable in accordance with the
Uniform System of Accounts, (ii) such additional land or rights
therein or such additional facilities or other tangible property shall have
been acquired, constructed, installed or replaced for the common use of the
Parties and/or Participating Parties under and subject to the provisions of
either or both of the Ownership Agreements, and (iii) such additional land
or rights therein or such additional facilities or other tangible property (1) shall
be necessary in order to construct or complete Plant Vogtle, or to keep Plant
Vogtle in good operating

 

A-11

 

condition or to satisfy the requirements of any governmental agency
having jurisdiction over Plant Vogtle, or (2) (A) if such additional
interest in land or other property relates solely to the Existing Units, it
shall be agreed to by the Parties owning at least an aggregate 85% Ownership
Interest in the Existing Units, (B) if such additional interest in land or
other property relates solely to the Additional Units, it shall be approved by
the Participating Parties owning at least an aggregate 90% Weighted Ownership
Interest in the Additional Units, (C) if such additional interest in land
or other property relates solely to one of the Additional Units, it shall be
approved by the Participating Parties owning at least an aggregate 90% Ownership
Interest in such Additional Unit, and (D) if such additional interest in
land or other property relates to the Existing Units and the Additional Units,
it shall be approved by the Parties owning at least an aggregate 87.5% Weighted
Ownership Interest in Plant Vogtle; and

 

(e)                                  Subject
to the provisions of Sections 4(b)(i) and 4(b)(ii) of the Existing
Units Ownership Agreement and Section 5.2 of the Additional Units
Ownership Agreement, existing intangible property rights and such additional
intangible property rights as may be hereafter acquired associated with
the planning, licensing, design, construction, acquisition, completion,
startup, commissioning, renewal, addition, replacement, modification and
Decommissioning of Plant Vogtle.

 

“Pre-Construction Budget”
has the meaning given such term in Section 7.2(a).

 

“Prime Rate” means the
prime rate as published in the Money Rates table of the Wall Street Journal.

 

“Project Management Board”
has the meaning given such term in Section 6.1.

 

“Pro Rata Interest” has,
with respect to each Party, the meaning given such term in the Amended and
Restated Operating Agreement.

 

A-12

 

“Prudent Utility Practice”
means at a particular time any of the practices, methods and acts engaged in or
approved by a significant portion of the electric utility industry prior to
such time, or any of the practices, methods and acts which, in the exercise of
reasonable judgment in light of the facts known at the time the decision was made,
could have been expected to accomplish the desired result at the lowest
reasonable cost consistent with good business practices, reliability, safety
and expedition; “Prudent Utility Practice” is not intended to be limited to the
optimum practice, method or act to the exclusion of all others, but rather to
be a spectrum of possible practices, methods or acts having due regard for,
among other things, manufacturers’ warranties and the requirements of
governmental agencies of competent jurisdiction.

 

“Related Facilities” means
the infrastructure, systems and facilities, or any portion thereof, made on
account of the Additional Units that solely supports the operation of either or
both of the Additional Units.

 

“Relevant Information” has
the meaning given such term in Section 5.7(a).

 

“Supplemental Percentage Interest”
means, with respect to each Participating Party and each Additional Unit, any
additional interest in such Additional Unit elected by such Participating Party
in accordance with Sections 3.3 and 3.4 of the Development Agreement.

 

“True-Up Invoices” has the
meaning ascribed to such term in Section 7.4 hereof.

 

“Uniform System of Accounts”
means the FERC Uniform System of Accounts prescribed for Public Utilities
and Licensees (Class A and Class B) as the same now exist or may be
hereafter amended by the FERC or by any governmental agency succeeding to the
powers and functions thereof.

 

“Weighted Ownership Interest in the
Additional Units” means:

 

A-13

 

WOIAU = ((FAUMW * FAUOI) + (SAUMW * SAUOI))/(FAUMW + SAUMW)

 

Where:

 

WOIAU =                                         A
Party’s Weighted Ownership Interest in the Additional Units

 

FAUMW =                                   The
MW nameplate rating of the first Additional Unit

 

FAUOI =                                               A
Party’s Ownership Interest in the first Additional Unit

 

SAUMW =                                   The
MW nameplate rating of the second Additional Unit

 

SAUOI =                                               A
Party’s Ownership Interest in the second Additional Unit

 

“Weighted Ownership Interest in Plant
Vogtle” has the meaning ascribed to such term in the Amended and
Restated Operating Agreement.

 

A-14

 

EXHIBIT A-1

 

DESCRIPTION OF IDENTIFIED SITES

 

(as attached)

 

A-1-1

 

This attachment contains a drawing showing the proposed locations of
the additional units on the Plant Alvin W. Vogtle site.

 

 

EXHIBIT A-2

 

DECLARATION OF COVENANTS

 

(as attached)

 

A-2-1

 

	
   

  	
   

  	
  After
  recording return to:

  Jeffrey F. Hetsko

  Troutman Sanders LLP

  Suite 5200

  600 Peachtree Street

  Atlanta, Georgia 30308

  

 

DECLARATION OF COVENANTS AND CROSS-EASEMENTS

FOR VOGTLE ADDITIONAL UNITS

 

THIS DECLARATION (hereinafter referred to as the “Declaration”) is made
as of the 21st day of April 2006, by Georgia Power Company, a Georgia
corporation, Oglethorpe Power Corporation (An Electric Membership Corporation),
an electric membership corporation organized and existing under the Georgia
Electric Membership Corporation Act, Municipal Electric Authority of Georgia, a
public body corporate and politic organized and existing under Section 46-3-110,
et seq., of the Official Code of Georgia Annotated, and City of Dalton,
Georgia, an incorporated municipality of the State of Georgia, acting by and
through the Board of Water, Light and Sinking Fund Commissioners of the City of
Dalton, Georgia.

 

W I T N E S S E T H:

 

WHEREAS, Declarants (certain capitalized terms as used herein are
defined in Paragraph 1 below) are the owners, as tenants in common, of the
Vogtle Property; and

 

WHEREAS, Declarants are also the owners, as tenants in common, of the
Additional Units Property; and

 

WHEREAS, the Vogtle Property and the Additional Units Property are each
part of the Overall Property; and

 

WHEREAS, Declarants presently own, as tenants in common, Plant Vogtle,
and operate Plant Vogtle through the Existing Units Agent; and

 

WHEREAS, MEAG, GPC, OPC and Dalton propose to develop additional
generating capability on the Additional Units Property pursuant to the
Additional Units Ownership Agreement and the Development Agreement; and

 

WHEREAS, Declarants have determined the desirability of the creation,
establishment and reservation of certain covenants and nonexclusive easements
for utilities, ingress, egress and 

 

 

other matters as provided herein which shall run with the Overall
Property, as more particularly hereinafter provided.

 

NOW, THEREFORE, in order to implement the foregoing purposes,
Declarants, as owners, as tenants in common, of the Overall Property, and as
owners, as tenants in common, of the Additional Units Property, do hereby
declare and establish as follows:

 

1.                                       Definitions.
The following words and terms used or referred to in this Declaration or any
amendment or modification hereof shall have the following meanings:

 

(a)                                  “Additional
Units Agent” shall mean and refer to the Person from time to time designated as
“Agent” pursuant to the Additional Units Ownership Agreement, when acting as
such Agent.

 

(b)                                 “Additional
Units Owner” shall mean and refer to any and all of the owners of fee simple
title to all or any portion of the Additional Units Property (including without
limitation any undivided interest in the Additional Units Property) as shown by
the real estate records of the Clerk of the Superior Court of the Georgia
County where such property is located, in their capacity as owners of the
Additional Units; provided, however, the term “Additional Units Owner” shall
not mean and refer to (i) the holder of any Security Instrument unless and
until the holder thereof shall acquire, as shown by the real estate records of
the Clerk of the Superior Court of the Georgia County where such property is
located, fee simple title to all or any portion of the Additional Units
Property (including without limitation any undivided interest in the Additional
Units Property) pursuant to the foreclosure of its Security Instrument, the
exercise of any power of sale contained therein, or any deed or proceeding
taken in lieu of foreclosure with respect thereto, and (ii) any lessee,
tenant or licensee of any Owner; provided, however, that unless otherwise
specified in the applicable sale/lease back lease/sublease back or similar
transaction documents pertaining to all or any portion of the Additional Units
Property (including without limitation any undivided interest in the Additional
Units Property),  “Additional Units Owner”
shall mean and refer to the lessee or sublessee, and not the lessor or
sublessor, under a sale/lease back, lease/sublease back or similar transaction.
In the event there is only one Additional Unit Owner of any Additional Units
Site, then with respect to such Additional Units Site, references in this
Declaration to “Additional Unit Owners” shall be deemed to be references to
such Additional Unit Owner.

 

(c)                                  “Additional
Units Ownership Agreement” shall mean and refer to the Plant Alvin W. Vogtle
Additional Units Ownership Participation Agreement dated as of April 21,
2006, by and among GPC, OPC, MEAG and Dalton.

 

(d)                                 “Additional
Units Property” shall mean and refer to the property described on Exhibit ”B”
attached hereto and by reference made a part hereof, together with all
improvements and tangible personal property now or hereafter located on the
Additional Units Property. In addition, “Additional Units Property” shall
include such other portions, if any, of the Overall Property as are from time
to time agreed to by the Owners of such portions of the Overall Property.

 

(e)                                  “Additional
Unit I Property” shall mean and refer to that portion of the Additional Units
Property from time to time designated by the Additional Units Owners of such
portion of 

 

2

 

the Additional Units Property. In addition, “Additional Unit I Property”
shall include such other portions, if any, of the Overall Property as are from
time to time agreed to by the Owners of such portions of the Overall Property.

 

(f)                                    “Additional
Unit II Property” shall mean and refer to that portion of the Additional Units
Property from time to time designated by the Additional Units Owners of such
portion of the Additional Units Property. In addition, “Additional Unit II
Property” shall include such other portions, if any, of the Overall Property as
are from time to time agreed to by the Owners of such portions of the Overall
Property.

 

(g)                                 “Additional
Units Restricted Property” shall mean and refer to that portion of the
Additional Units Property from time to time lying within the security perimeter
for the Generating Plant(s) located on the Additional Units Property, less and
except therefrom such portions thereof or interests therein as are from time to
time designated in writing by the Additional Units Agent as not part of
the Additional Units Restricted Property.

 

(h)                                 “Additional
Units Road System” shall mean and refer to the vehicular roads, drives and
passageways from time to time located on the Additional Units Property. The “Additional
Units Road System” does not include any road or driveway or portion thereof
located on the Vogtle Property.

 

(i)                                     “Additional
Units Simulator Building Area” shall have the meaning ascribed thereto in
Paragraph 3(a)(xvi) hereof.

 

(j)                                     “Additional
Units Site” shall mean and refer to either one of the Additional Unit I
Property or the Additional Unit II Property.

 

(k)                                  “Additional
Units Utility Lines” shall mean and refer to utility lines and facilities now
or hereafter located or to be located on, over, across or under the Additional
Units Utility Line Easement Area, including, without limitation, electric
service lines, sanitary sewer lines, storm sewer lines, potable water lines,
industrial raw water supply lines, fire suppression water supply lines,
industrial waste water and cooling tower blow down water discharge lines,
telecommunications lines, and ancillary facilities related to any of the
foregoing, including but not limited to headwalls, drop inlets, manholes,
ponds, detention areas, silt and debris settling basins, tanks, pipelines
(including, without limitation, meters, connections, valves and other
associated equipment), cables, wires, conduits, cable trays, fiber optic
cables, wood or metal poles, towers, anchors, stubs, braces, guys, cross arms,
insulators, conductors, relays, ground wires, cables and counterpoises,
underground conduits and wire raceways, meter sites, metering instruments, and
other equipment appurtenant thereto, pipeline or pipelines, valves, vents, and
all other equipment appurtenant thereto, signal, telephone, overhead and
underground fiber-optic lines, manholes and other equipment appurtenant
thereto, emergency sirens and emergency response communications systems and
equipment appurtenant thereto, trenches, mains, lines, ducts, fences, towers,
antennas, tunnels, driveways, streets, alleys, retaining walls, plantings,
shrubs and other landscaping, irrigation and drainage pipes and facilities,
lighting fixtures and signs.

 

(l)                                     “Additional
Units Utility Lines Easement Area” shall mean and refer to that portion of the
Additional Units Property located within the Applicable Distance of the 

 

3

 

Additional Units Utility Lines (at the locations consented to in
writing by the Additional Units Agent pursuant to Paragraph 3(b)(iii) hereof).

 

(m)                               “Applicable
Distance” shall mean and refer to: (a) with respect to cooling tower
makeup ducts, 25 feet during construction; 17.5 feet after installation; (b) with
respect to telecommunications lines, 15 feet during construction; 5 feet after
installation; (c) with respect to potable water lines, 25 feet during
construction; 17.5 feet after installation; (d) with respect to industrial
raw water supply lines, 25 feet during construction; 17.5 feet after
installation; (e) with respect to industrial waste water discharge lines,
25 feet during construction; 17.5 feet after installation; (f) with
respect to sanitary sewer lines, 25 feet during construction; 17.5 feet after
installation; and (g) with respect to storm sewer lines, 25 feet during
construction; 17.5 feet after installation.

 

(n)                                 “Barge
Facility” shall have the meaning ascribed thereto in Paragraph 3(a)(viii) hereof.

 

(o)                                 “Batch
Plant Area” shall have the meaning ascribed thereto in Paragraph 3(a)(xiv)
hereof.

 

(p)                                 “Borrow
Pit Area” shall have the meaning ascribed thereto in Paragraph 3(a)(xii)
hereof.

 

(q)                                 “Consenting
Party” shall have the meaning ascribed thereto in Paragraph 8(b) hereof.

 

(r)                                    “Dalton”
shall mean and refer to City of Dalton, an incorporated municipality of the
State of Georgia, acting by and through the Board of Water, Light and Sinking
Fund Commissioners of the City of Dalton, Georgia.

 

(s)                                  “Declarants”
shall mean and refer to GPC, OPC, MEAG and Dalton.

 

(t)                                    “Defaulting
Owner” shall have the meaning ascribed thereto in Paragraph 9(e) hereof.

 

(u)                                 “Development
Agreement” shall mean and refer to the Plant Vogtle Owners’ Agreement
Authorizing Development, Construction, Licensing and Operation of Additional
Generating Units by and among GPC, OPC, MEAG and Dalton, Georgia dated May 13,
2005.

 

(v)                                 “Exercising
Owner” shall have the meaning ascribed thereto in Paragraph 3(j) hereof.

 

(w)                               “Existing
Simulator Building” shall have the meaning ascribed thereto in
Paragraph 3(a)(xvi) hereof.

 

(x)                                   “Existing
Units” shall mean Vogtle Unit No. 1 and Vogtle Unit No. 2, as defined
in the Existing Units Ownership Agreement.

 

4

 

(y)                                 “Existing
Units Agent” shall mean and refer to the person from time to time designated as
“Agent” pursuant to the Existing Units Ownership Agreement, when acting as such
agent.

 

(z)                                   “Existing
Units Owners” shall mean the Owners of the Existing Units, in their capacity as
owners of the Existing Units.

 

(aa)                            “Existing
Units Ownership Agreement” shall mean and refer to the Alvin W. Vogtle Nuclear
Units Numbers One and Two Purchase and Ownership Participation Agreement among
GPC, OPC, MEAG and Dalton, dated August 27, 1976, as amended (including
but not limited to amendments dated January 18, 1977, and February 24,
1977), and the Purchase, Amendment, Assignment and Assumption Agreement between
GPC and MEAG dated April 9, 1985, as amended.

 

(bb)                          “500
kV GPC Scherer Transmission Line” shall have the meaning ascribed thereto in
Paragraph 3(d)(i) hereof.

 

(cc)                            “500
kV GPC Future Transmission Line #1” shall have the meaning ascribed thereto in
Paragraph 3(d)(i) hereof.

 

(dd)                          “500
kV GPC Future Transmission Line #2” shall have the meaning ascribed thereto in
Paragraph 3(d)(i) hereof.

 

(ee)                            “500
kV GPC McIntosh Transmission Line” shall have the meaning ascribed thereto in
Paragraph 3(d)(i) hereof.

 

(ff)                                “Future
TL Easement Area #1” shall have the meaning ascribed thereto in Paragraph 3(d)(i) hereof.

 

(gg)                          “Future
TL Easement Area #2” shall have the meaning ascribed thereto in Paragraph 3(d)(i) hereof.

 

(hh)                          “Generating
Plant” shall mean and refer to a nuclear power plant for the commercial
generation of electricity.

 

(ii)                                  “Good
Utility Practices” shall mean and refer, at a particular time, to any of the
practices, methods and acts engaged in or approved by a significant portion of
the electric utility industry prior to such time, or any of the practices, methods
and acts which, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish
the desired result at the lowest reasonable cost consistent with good business
practices, reliability, safety and expedition. Good Utility Practices are not
intended to be limited to the optimum practice, method or act to the exclusion
of all others, but rather to be a spectrum of possible practices, methods or
acts having due regard for, among other things, manufacturers’ warranties and
the requirements of governmental agencies of competent jurisdiction.

 

(jj)                                  “GPC”
shall mean and refer to Georgia Power Company, a Georgia corporation.

 

5

 

(kk)                            “Lien”
shall have the meaning ascribed thereto in Paragraph 3(j) hereof.

 

(ll)                                  “McIntosh
TL Easement Area” shall have the meaning ascribed thereto in Paragraph 3(d)(i) hereof.

 

(mm)                      “MEAG”
shall mean and refer to the Municipal Electric Authority of Georgia, a public
body corporate and politic organized and existing under Section 46-3-110,
et seq., of the Official Code of Georgia Annotated.

 

(nn)                          “Notifying
Owner” shall have the meaning ascribed thereto in Paragraph 9(e) hereof.

 

(oo)                          “OPC”
shall mean and refer to Oglethorpe Power Corporation (An Electric Membership
Corporation), an electric membership corporation organized and existing under
the Georgia Electric Membership Corporation Act, formerly known as Oglethorpe
Electric Membership Corporation and formerly known as Oglethorpe Power
Corporation (An Electric Membership Generation & Transmission
Corporation).

 

(pp)                          “Overall
Property” shall mean and refer to the property described on Exhibit ”A”
attached hereto and by reference made a part hereof.

 

(qq)                          “Ownership
and Operating Documents” shall mean and refer to the Existing Units Ownership
Agreement, the Development Agreement, the Additional Units Ownership Agreement
and the Plant Vogtle Operating Agreement.

 

(rr)                                “Owner”
shall mean and refer to any and all of the owners of fee simple title to all or
any portion of the Overall Property (including without limitation any undivided
interest in the Overall Property) as shown by the real estate records of the
Clerk of the Superior Court of the Georgia County where such property is
located; provided, however, the term “Owner” shall not mean and refer to (i) the
holder of any Security Instrument unless and until the holder thereof shall
acquire, as shown by the real estate records of the Clerk of the Superior Court
of the Georgia County where such property is located, fee simple title to all
or any portion of the Overall Property (including without limitation any
undivided interest in the Overall Property) pursuant to the foreclosure of its
Security Instrument, the exercise of any power of sale contained therein, or
any deed or proceeding taken in lieu of foreclosure with respect thereto, and (ii) any
lessee, tenant or licensee of any Owner; provided, however, that unless
otherwise specified in any applicable sale/lease back, lease/sublease back or
similar transaction document pertaining to all or any portion of the Overall
Property (including without limitation any undivided interest in the Overall
Property), “Owner” shall mean and refer to the lessee or sublessee, and not the
lessor or sublessor, under a sale/lease back, lease/sublease back or similar
transaction.

 

(ss)                            “Person”
means any individual, partnership, limited liability company, joint venture,
corporation, trust, unincorporated organization, any federal, state or local
governmental, regulatory, legislative, executive or administrative agency,
authority, commission, body, department, board, or other governmental
subdivision, court, tribunal, arbitrating body or other governmental authority.

 

6

 

(tt)                                “Plant
Vogtle” shall mean and refer to the electric generating facility, land,
facilities and additional tangible property more particularly defined in the
Existing Units Ownership Agreement, less and except the Additional Units
Property.

 

(uu)                          “Plant
Vogtle Operating Agent” shall mean and refer to Person from time to time
designated as “Agent” for the Existing Units Owners pursuant to the Plant
Vogtle Operating Agreement, when acting as such Agent.

 

(vv)                          “Plant
Vogtle Operating Agreement” shall mean and refer to that certain Plant Alvin W.
Vogtle Nuclear Units Amended and Restated Operating Agreement among GPC, OPC,
MEAG and Dalton, dated April 21, 2006, as amended.

 

(ww)                      “Rail
Line” shall mean and refer to the railroad spur line from time to time located
on the Vogtle Available Property.

 

(xx)                              “Representing
Party” shall have the meaning ascribed thereto in Paragraph 9(o) hereof.

 

(yy)                          “Requesting
Owner” shall have the meaning ascribed thereto in Paragraph 9(l) hereof.

 

(zz)                              “Road
System” shall mean and refer to the vehicular roads, drives and passageways
from time to time located on the Vogtle Available Property. The “Road System”
does not include any road or driveway or portion thereof located on the
Additional Units Property.

 

(aaa)                      “Scherer
TL Easement Area” shall have the meaning ascribed thereto in Paragraph 3(d)(i) hereof.

 

(bbb)                   “Security
Instrument” shall mean and refer to any deed to secure debt, mortgage,
indenture, financing statement, installment sales contract or any conveyance of
title to secure a debt or any other security instrument encumbering any Owner’s
title to the Overall Property or any portion thereof (including without
limitation the Additional Units Property) or any interest therein.

 

(ccc)                      “Spoils
Area” shall have the meaning ascribed thereto in Paragraph 3(a)(xiii)
hereof.

 

(ddd)                   “Temporary
Area” shall have the meaning ascribed thereto in Paragraph 3(a)(x) hereof.

 

(eee)                      “Utility
Lines” shall mean and refer to utility lines and facilities now or hereafter
located or to be located on, over, across or under the Vogtle Available
Property, including, without limitation, electric lines providing service to
the Temporary Area, sanitary sewer lines, storm sewer lines, potable water
lines, industrial raw water supply lines (including without limitation intake
structures and facilities on and adjacent 

 

7

 

to the Savannah River), fire suppression water supply lines, industrial
waste water and cooling tower blow down water discharge lines (including
without limitation discharge structures and facilities on and adjacent to the
Savannah River), telecommunications lines, electric and control lines between a
Generating Plant and a raw water pump at the raw water intake structure, and
ancillary facilities related to any of the foregoing, including but not limited
to headwalls, drop inlets, manholes, ponds, detention areas, silt and debris
settling basins, tanks, pipelines (including, without limitation, meters,
connections, valves and other associated equipment), cables, wires, conduits,
cable trays, fiber optic cables, wood or metal poles, towers, anchors, stubs,
braces, guys, cross arms, insulators, conductors, relays, ground wires, cables
and counterpoises, underground conduits and wire raceways, meter sites,
metering instruments, and other equipment appurtenant thereto, pipeline or
pipelines, valves, vents, and all other equipment appurtenant thereto, signal,
telephone, overhead and underground fiber-optic lines, manholes and other
equipment appurtenant thereto, emergency sirens and emergency response
communications systems and equipment appurtenant thereto, trenches, mains,
lines, ducts, fences, towers, antennas, tunnels, driveways, streets, alleys,
retaining walls, plantings, shrubs and other landscaping, irrigation and
drainage pipes and facilities, lighting fixtures and signs.

 

(fff)                            “Vogtle
Available Property” shall mean and refer to the Vogtle Property less and except
the Vogtle Restricted Property.

 

(ggg)                   “Vogtle
Landfill” shall have the meaning ascribed thereto in Paragraph 3(a)(xvii)
hereof.

 

(hhh)                   “Vogtle
Owners” shall mean and refer to the Owners from time to time of the Vogtle
Property, which presently are GPC, OPC, MEAG and Dalton as tenants in common
(GPC as to an undivided 45.7% interest, OPC as to an undivided 30.0% interest,
MEAG as to an undivided 22.7% interest, and Dalton as to an undivided 1.6%
interest).

 

(iii)                               “Vogtle
Parking Lots” shall have the meaning ascribed thereto in
Paragraph 3(a)(xvii) hereof.

 

(jjj)                               “Vogtle
Property” shall mean and refer to the Overall Property less and except (i) the
Additional Units Property, and (ii) property from time to time removed
from the Vogtle Property pursuant to Paragraph 6 hereof.

 

(kkk)                      “Vogtle
Recreational Facilities” shall have the meaning ascribed thereto in
Paragraph 3(a)(xvii) hereof.

 

(lll)                               “Vogtle
Restricted Property” shall mean and refer to that portion of the Vogtle
Property from time to time lying within the security perimeter for the existing
Plant Vogtle nuclear electric generating facility, less and except therefrom
such portions thereof or interests therein as are from time to time designated
in writing by the Plant Vogtle Operating Agent as not part of the Vogtle
Restricted Property.

 

(mmm) “Vogtle Security Facilities” shall have the meaning ascribed
thereto in Paragraph 3(a)(xvii) hereof.

 

(nnn)                   “Vogtle
Visitor Center” shall have the meaning ascribed thereto in
Paragraph 3(a)(xvii) hereof.

 

8

 

(ooo)                   “Weather
Tower” shall have the meaning ascribed thereto in Paragraph 3(a)(xv)
hereof.

 

2.                                       Applicability,
Termination and Other Matters Governing the Easements, Covenants and Other
Rights Established by this Declaration. Declarants hereby declare that the
Overall Property is and shall be held, transferred, sold, conveyed, leased,
occupied and used subject to the easements and covenants set forth in this
Declaration. These easements and covenants are and shall be construed to be
easements and covenants running with the land and shall be binding upon and
inure to the benefit of each and every Owner and Additional Units Owner, and
their respective heirs, successors and assigns. The easements and covenants and
other rights and obligations herein granted shall be construed and interpreted
in light of the Ownership and Operating Documents. Whenever this Declaration
specifies that the Additional Units Agent shall act (in designating, approving
or otherwise taking action) the provision(s) of this Declaration shall be deemed
to refer to the Additional Units Agent in its capacity under the Additional
Units Ownership Agreement. The Additional Units Agent’s authority and
responsibility and the limitations on its liability in so acting shall be as
set forth in the Additional Units Ownership Agreement, and the Existing Units
Agent’s authority and responsibility and the limitations on its liability in so
acting shall be as set forth in the Existing Units Ownership Agreement.
Whenever this Declaration specifies that the Plant Vogtle Operating Agent shall
act (in designating, approving or otherwise taking action) the provision(s) of
this Declaration shall be deemed to refer to the Plant Vogtle Operating Agent
in its capacity under the Plant Vogtle Operating Agreement. The Plant Vogtle
Operating Agent’s authority and responsibility and the limitations on its
liability in so acting shall be as set forth in the Plant Vogtle Operating
Agreement.

 

The easements established, created and reserved for the benefit of the
Additional Units Owners in Paragraphs 3(a) and 3(b) hereof shall be
utilized by the Additional Units Owners in accordance with the Ownership and
Operating Documents. The easements established, created and reserved for the
benefit of the Vogtle Owners in Paragraph 3(c) hereof shall be utilized by
the Vogtle Owners in accordance with the Ownership and Operating Documents.

 

The Ownership and Operating Documents shall govern the assessment and
allocation of any costs and liabilities arising as a result of the easements
established, created and reserved in this Declaration or as a result of the
exercise of any of the rights and privileges created by such easements,
including without limitation the obligation to maintain the Road System in a
manner comparable to that which exists on the date hereof.

 

This Declaration and all easements and other rights and privileges
granted, established or reserved hereunder shall terminate when and if the
rights and obligations of the Parties to the Development Agreement terminate
pursuant to the provisions of Section 3.8 thereof. It is not the intent of
Declarants that any easements shall be implied or arise constructively. Any
such easements that may be implied or any that arise constructively as a
result of such termination shall also terminate if and when the easements and
other rights and privileges granted, established or reserved hereunder
terminate in accordance with the preceding sentence.

 

3.                                       Easements.                                    (a) Declarants
hereby establish, create and reserve for the Additional Units Owners and hereby
grant to the Additional Units Owners, their respective successors and assigns,
for the benefit of the Additional Units Site owned by such Additional 

 

9

 

Units Owners, the following rights and easements over and across the
Vogtle Available Property:

 

(i)                                     Perpetual
nonexclusive rights and easements to erect, construct, reconstruct, use,
inspect, install, alter, restore, replace, remove, operate, patrol, maintain,
repair, renew, upgrade, expand, and add onto Utility Lines on, over, across and
under the Vogtle Available Property, such rights and easements shall extend the
Applicable Distance (measured at a right angle) on each side of the center line
of the applicable Utility Line; provided, however, (a) that at the request
of the Additional Units Agent, and with the consent of the Plant Vogtle
Operating Agent, the centerline of the applicable Utility Line need not be the
centerline of the easement for such Utility Line and the Additional Units Agent
may designate the boundaries of the easement for such Utility Line so long
as the width of the easement for such Utility Line is not in excess of twice
the Applicable Distance, and (b) if such Utility Line requires boring
underground, then such rights and easements shall include a temporary
construction easement on, over, across and under such portions of the Vogtle
Available Property extending from the centerline of the applicable Utility Line
as are necessary or convenient for the prosecution of such boring. The Utility
Lines shall be installed, constructed and located on the Vogtle Available
Property at locations consented to in writing by the Plant Vogtle Operating
Agent, which consent the Plant Vogtle Operating Agent shall not unreasonably
withhold, delay or condition. Each Utility Line installed pursuant to this
Paragraph 3(a)(i) shall be for the benefit and use of the Additional
Units Owners and the Additional Units Property in accordance with the
Additional Units Ownership Agreement.

 

(ii)                                  Perpetual
nonexclusive rights and easements to connect onto and use, in a manner
consistent with this Declaration and the Ownership and Operating Documents, any
sanitary sewer treatment plant from time to time existing on the Vogtle
Available Property, the output from any potable water plant from time to time
existing on the Vogtle Available Property, and any storm water detention pond
from time to time existing on the Vogtle Available Property. Such connections
shall be made at locations consented to in writing by the Plant Vogtle
Operating Agent, which consent the Plant Vogtle Operating Agent shall not
unreasonably withhold, delay or condition.

 

(iii)                               Perpetual and
nonexclusive rights and easements to connect onto and use, in a manner
consistent with this Declaration and the Ownership and Operating Documents, the
Utility Lines. Such connections shall be made at locations consented to in
writing by the Plant Vogtle Operating Agent, which consent the Plant Vogtle
Operating Agent shall not unreasonably withhold, delay or condition.

 

(iv)                              Perpetual and
nonexclusive rights and easements to enter upon those portions of the Vogtle
Available Property located within the Applicable 

 

10

 

Distance (measured at a right angle) of either side of the center line
of the specific Utility Line installed or proposed to be installed pursuant to
this Declaration, as and when necessary, for the purpose of exercising the
rights and easements established, granted, reserved and created in this
Declaration.

 

(v)                                 Temporary and
nonexclusive rights and easements during the initial construction of Generating
Plants on the Additional Units Property and during the use of the Temporary
Area in connection with such initial construction over and across the Road
System for vehicular and pedestrian ingress and egress to and from and access
to the Additional Units Road System, the Additional Units Utility Lines, each
Utility Line installed (or to be installed) or used by such Additional Units
Owner in accordance with this Declaration, the Temporary Area, the Barge
Facility, the Spoils Area, the Borrow Pit Area, the Batch Plant Area, the
Additional Units Simulator Building, the loading/unloading area for the Rail
Line and the public right of way of River Road adjoining the Vogtle Available
Property, and to and from and between and among the Additional Units Road
System, the Additional Units Utility Lines, each Utility Line installed (or to
be installed) or used by such Additional Units Owners in accordance with this
Declaration, the Temporary Area, the Barge Facility, the Spoils Area, the
Borrow Pit Area, the Batch Plant Area, the Additional Units Simulator Building,
and the loading/unloading area for the Rail Line. The Vogtle Owners covenant
and agree that with respect to each Additional Units Site the Road System shall
provide reasonably direct construction access to the Additional Units Property,
prior to completion of construction of the Generating Plant on such Additional
Units Site, comparable in all respects to the access provided as of the date
hereof, over roads at least comparable in all respects to the Road System
existing as of the date hereof. The Vogtle Owners covenant and agree that with
respect to each Additional Units Site the Additional Units Agent shall have the
perpetual and nonexclusive right and easement to construct on the Vogtle
Available Property, and the Additional Units Owners shall have the perpetual
and nonexclusive right and easement to use for vehicular and pedestrian ingress
and egress, additions to the Road System, at locations consented to in writing
by the Plant Vogtle Operating Agent, which consent the Plant Vogtle Operating
Agent shall not unreasonably withhold, delay or condition, so that the Road
System shall provide such construction access to the Additional Units Road
System and the Temporary Area, prior to completion of construction of the
Generating Plant on such Additional Units Site, and to and from and between and
among the Temporary Area, the Additional Units Utility Lines, each Utility Line
installed (or to be installed) or used by such Additional Units Owner in
accordance with this Declaration, the Barge Facility, the Spoils Area, the
Borrow Pit Area, the Batch Plant Area, the Additional Units Simulator Building,
the loading/unloading area for the Rail Line and the Additional Units Roads
System, prior to completion of construction of the Generating Plant on such
Additional Units Site, over a continuous 

 

11

 

uninterrupted road surface not less than twenty (20) feet in
width, to and from the Additional Units Road System, the Additional Units
Utility Lines, each Utility Line installed (or to be installed) or used by such
Additional Units Owner in accordance with this Declaration, the Barge Facility,
the Spoils Area, the Borrow Pit Area, the Batch Plant Area, the Additional
Units Simulator Building, the loading/unloading area for the Rail Line and the
Temporary Area, as applicable, to such public right of way, and between and
among the Additional Units Road System, the Additional Units Utility Lines,
each Utility Line installed (or to be installed) or used by such Additional
Units Owner in accordance with this Declaration, the Barge Facility, the Spoils
Area, the Borrow Pit Area, the Batch Plant Area, the Additional Units Simulator
Building, the loading/unloading area for the Rail Line and the Temporary Area.
Notwithstanding the foregoing to the contrary, except as may be otherwise
specified by the Plant Vogtle Operating Agent, and except for the temporary
haul roads under Paragraph 3(a)(ix) hereof, all construction traffic
shall access the applicable Additional Units Site, the Additional Units Utility
Lines, each Utility Line installed (or to be installed) or used by such
Additional Units Owner in accordance with this Declaration, the Barge Facility,
the Spoils Area, the Borrow Pit Area, the Batch Plant Area, the
loading/unloading area for the Rail Line and Temporary Area from the public
right of way of River Road located along the northwesterly portion of the
Vogtle Available Property and shall use only such portion of the Road System as
is reasonably required for such access.

 

(vi)                              Perpetual and
nonexclusive rights and easements over and across the Road System for vehicular
and pedestrian ingress and egress to and from and access to the Additional
Units Road System, the Additional Units Utility Lines, each Utility Line
installed (or to be installed) or used by such Additional Units Owners in
accordance with this Declaration, the Temporary Area, the Barge Facility, the
Spoils Area, the Borrow Pit Area, the Weather Tower, the Batch Plant Area, the
Existing Simulator Building, the Vogtle Landfill, the Vogtle Security
Facilities, the Vogtle Recreational Facilities, the Vogtle Visitor Center, the
Vogtle Parking Lots, the Additional Units Simulator Building Area, and the
loading/unloading area for the Rail Line and the public right of way of River
Road adjoining the Vogtle Available Property, and to and from and between and
among the Additional Units Road System, the Additional Units Utility Lines,
each Utility Line installed (or to be installed) or used by such Additional
Units Owners in accordance with this Declaration, the Temporary Area, the Barge
Facility, the Spoils Area, the Borrow Pit Area, the Weather Tower, the Batch
Plant Area, the Existing Simulator Building, the Vogtle Landfill, the Vogtle
Security Facilities, the Vogtle Recreational Facilities, the Vogtle Visitor
Center, the Vogtle Parking Lots, the Additional Units Simulator Building Area,
and the loading/unloading area for the Rail Line. Notwithstanding the foregoing
to the contrary, except as may be otherwise specified by the Plant Vogtle
Operating Agent, and except for the temporary haul roads under
Paragraph 3(a)(ix) hereof, all construction 

 

12

 

traffic shall access the applicable Additional Units Site, the
Temporary Area, the Barge Facility, the Spoils Area, the Borrow Pit Area, the
Batch Plant Area, the Vogtle Landfill, the Additional Units Simulator Building
Area, and the loading/unloading area for the Rail Line from the public right of
way of River Road located along the northwesterly portion of the Vogtle
Available Property and shall use only such portion of the Road System as is
reasonably required for such access. The Vogtle Owners covenant and agree that
the Road System shall at all times provide reasonably direct access to and from
and between and among the Additional Units Property, the Weather Tower, the
Existing Simulator Building, the Vogtle Landfill, the Vogtle Security
Facilities, the Vogtle Recreational Facilities, the Vogtle Visitor Center, and
the Vogtle Parking Lots to such public right of way, comparable in all respects
to the access provided as of the date hereof, over roads at least comparable in
all respects to the Road System existing as of the date hereof. The Vogtle
Owners covenant and agree that the Additional Units Agent shall have the
perpetual and nonexclusive right and easement to construct on the Vogtle
Available Property, and the Additional Units Owners shall have the perpetual
and nonexclusive right and easement to use for vehicular and pedestrian ingress
and egress, additions to the Road System, at locations consented to in writing
by the Plant Vogtle Operating Agent, which consent the Plant Vogtle Operating
Agent shall not unreasonably withhold, delay or condition, connecting the Road
System to the Additional Units Roads System and connecting the Road System to
the Barge Facility, each Utility Line installed (or to be installed) or used by
such Additional Units Owners in accordance with this Declaration, the Spoils
Area, the Borrow Pit Area, the Batch Plant Area, the Additional Units Simulator
Building Area, and the loading/unloading area for the Rail Line so that the
Road System shall at all times provide such access over a continuous
uninterrupted road surface not less than twenty (20) feet in width, to and
from and between and among the Additional Units Road System, the Barge
Facility, each Utility Line installed (or to be installed) or used by such
Additional Units Owners in accordance with this Declaration, the Spoils Area,
the Borrow Pit Area, the Batch Plant Area, the Additional Units Simulator
Building Area, and the loading/unloading area for the Rail Line, and the Road
System as it existed prior to such addition. All portions of the Road System
shall be constructed of materials and with construction standards at least
equal to the currently existing portions of the Road System. Access under
Paragraphs 3(a)(v) and (vi) shall include full and unimpeded
access, in common with the Owners and Additional Units Owners, over and through roads and bridges as exist now and from
time to time may exist on the Vogtle Available Property or, where no roads
exist, over and through those areas of the Vogtle Available Property which are (i) reasonably
necessary for achieving the underlying purposes of the beneficiaries of the
easement, and (ii) least likely, out of the alternatives reasonably
available, to impede or damage the property or operations (including but not
limited to Plant Vogtle and the Generating 

 

13

 

Plant(s) located or contemplated to be located on the Additional Units
Property) of the Owners and Additional Units Owners.

 

(vii)                           Perpetual and nonexclusive
rights and easements over and across the Rail Line for all purposes deemed
reasonably necessary by the Additional Units Owners in the normal conduct of
their business or in the exercise of the rights and easements established,
granted, reserved and created in this Declaration, including but not limited to
the transportation of equipment and supplies to and from the Additional Units
Property and the Temporary Area.

 

(viii)                        Perpetual and nonexclusive
rights and easements over and across the Vogtle Available Property, at a
location adjoining the Savannah River consented to in writing by the Plant
Vogtle Operating Agent, which consent the Plant Vogtle Operating Agent shall
not unreasonably withhold, delay or condition, to erect, construct,
reconstruct, use, inspect, install, alter, restore, replace, remove, operate,
patrol, maintain, repair, renew, upgrade, expand, and add onto a barge facility
(the “Barge Facility”), including without limitation docks and piers. The Barge
Facility may, with the consent of the Plant Vogtle Operating Agent, which
consent the Plant Vogtle Operating Agent shall not unreasonably withhold, delay
or condition, be an addition to or replacement of the existing barge facility
located on the Vogtle Available Property, in which event the Barge Facility
shall be used by the Additional Units Owners in common with Existing Units
Owners, upon and subject to such reasonable terms and conditions as the Plant
Vogtle Operating Agent shall from time to time designate in writing.

 

(ix)                                Temporary and
nonexclusive rights and easements during the initial construction of a
Generating Plant on an Additional Units Site (including without limitation the
use of the Temporary Area in connection therewith) over and across the Vogtle
Available Property, at locations consented to in writing by the Plant Vogtle
Operating Agent, which consent the Plant Vogtle Operating Agent shall not
unreasonably withhold, delay or condition, to erect, construct, reconstruct,
use, inspect, install, alter, restore, replace, remove, operate, patrol,
maintain, repair, renew, upgrade, expand, and add onto temporary haul roads for
vehicular and pedestrian ingress and egress to and from and access to the
Additional Units Road System, the Temporary Area and the Barge Facility.

 

(x)                                   Temporary,
nonexclusive rights and easements to use a portion of the Vogtle Available
Property as a construction staging, office, laydown, parking and warehouse area
in connection with the initial construction of the Generating Plant(s) on the
Additional Units Property and in connection with any future modification of the
Generating Plant(s) on the Additional Units Property. Such construction
staging, office, laydown, parking and warehouse area (the “Temporary Area”)
shall be at one or more locations consented to in writing by the Plant Vogtle
Operating 

 

14

 

Agent, which consent the Plant Vogtle Operating Agent shall not
unreasonably withhold, delay or condition. Upon substantial completion of
initial construction of the Generating Plants on the Additional Units Property,
the Additional Units Owners shall remove all materials, equipment and debris
(other than crusher rock or gravel) brought onto or deposited on the Temporary Area
by such Additional Units Owners. Upon substantial completion of any such
modifications of the Generating Plants on the Additional Units Property, the
Additional Units Owners shall remove all materials, equipment and debris (other
than crusher rock or gravel) brought onto or deposited on the Temporary Area by
such Additional Units Owners.

 

(xi)                                Perpetual and
nonexclusive slope easements on the portions of the Vogtle Available Property
adjoining each Additional Units Site (at locations consented to in writing by
the Plant Vogtle Operating Agent, which consent the Plant Vogtle Operating
Agent shall not unreasonably withhold, delay or condition), to the extent
necessary to accommodate the grading plan for such Additional Units Site and
the security requirements of the Generating Plant on such Additional Units Site
and Plant Vogtle and to maintain necessary slopes to allow such graded
Additional Units Site to remain intact, together with the right and easement to
enter upon such portions of the Vogtle Available Property at all reasonable
times for the purpose of maintaining such slopes.

 

(xii)                             A temporary, nonexclusive
right and easement to use a portion of the Vogtle Available Property as a dirt
borrow pit in connection with the initial construction of the Generating
Plant(s) on the Additional Units Property. Such dirt borrow pit area (the “Borrow
Pit Area”) shall be at a location consented to in writing by the Plant Vogtle
Operating Agent, which consent the Plant Vogtle Operating Agent shall not
unreasonably withhold, delay or condition. Upon substantial completion of
construction of the Generating Plants on the Additional Units Property, the
Additional Units Owners shall seed the surface of the Borrow Pit Area with
grass.

 

(xiii)                          A temporary, nonexclusive
right and easement to use a portion of the Vogtle Available Property as a dirt
spoils and overflow storage area in connection with the initial construction of
the Generating Plant(s) on the Additional Units Property. Such dirt spoils and
overflow storage area (the “Spoils Area”) shall be at a location consented to
in writing by the Plant Vogtle Operating Agent, which consent the Plant Vogtle
Operating Agent shall not unreasonably withhold, delay or condition. Upon
substantial completion of construction of the Generating Plants on the
Additional Units Property, the Additional Units Owners shall seed the surface
of the Spoils Area with grass.

 

(xiv)                         A temporary, nonexclusive
right and easement to use a portion of the Vogtle Available Property for the
construction and operation of a concrete batch plant in connection with the
initial construction of the Generating 

 

15

 

Plant(s) on the Additional Units Property. Such concrete batch plant
area (the “Batch Plant Area”) shall be at a location consented to in writing by
the Plant Vogtle Operating Agent, which consent the Plant Vogtle Operating
Agent shall not unreasonably withhold, delay or condition. Upon substantial
completion of construction of the Generating Plants on the Additional Units
Property, the Additional Units Owners shall remove all materials, equipment and
debris (other than crusher rock or gravel) brought onto or deposited on the
Batch Plant Area by such Additional Units Owners, and shall seed with grass the
portion, if any, of the surface of the Batch Plant Area not covered with
crusher rock or gravel.

 

(xv)                            Perpetual and nonexclusive
rights and easements to use the meteorological tower and any addition thereto
or replacement thereof (the “Weather Tower”) located at any time on the Vogtle
Available Property. The Weather Tower shall be used by the Additional Units
Owners in common with Existing Units Owners, upon and subject to such
reasonable terms and conditions as the Plant Vogtle Operating Agent shall from
time to time designate in writing.

 

(xvi)                         Perpetual and nonexclusive
rights and easements to use the simulator building and any addition thereto or
replacement thereof (collectively, the “Existing Simulator Building”) located
at any time on the Vogtle Available Property, together with perpetual and
nonexclusive rights and easements over and across the Vogtle Available
Property, at a location (the “Additional Units Simulator Building Area”)
adjoining the Existing Simulator Building, consented to in writing by the Plant
Vogtle Operating Agent, which consent the Plant Vogtle Operating Agent shall
not unreasonably withhold, delay or condition, to erect, construct,
reconstruct, use, inspect, install, alter, restore, replace, remove, operate,
patrol, maintain, repair, renew, upgrade, expand, and add onto a simulator
building for the Generating Plants on the Additional Units Property. The
Existing Simulator Building shall be used by the Additional Units Owners in
common with Existing Units Owners, upon and subject to such reasonable terms
and conditions as the Plant Vogtle Operating Agent shall from time to time
designate in writing.

 

(xvii)                      Perpetual and nonexclusive rights
and easements to use the landfill (including any addition thereto or
replacement thereof, the “Vogtle Landfill”), the visitor center and helipad
(including any addition thereto or replacement thereof, the “Vogtle Visitor
Center”), the security facilities (including any addition thereto or
replacement thereof, the “Vogtle Security Facilities”), the recreational
facilities (including any addition thereto or replacement thereof, the “Vogtle
Recreational Facilities”), and parking lots (including any addition thereto or
replacement thereof, the “Vogtle Parking Lots”), and any addition thereto or
replacement thereof located at any time on the Vogtle Available Property. The
Vogtle Landfill, Vogtle Visitor Center, Vogtle Security Facilities and Vogtle
Parking Lots shall be used by the Additional Units Owners in common 

 

16

 

with Existing Units Owners, upon and subject to such reasonable terms
and conditions as the Plant Vogtle Operating Agent shall from time to time
designate in writing.

 

(b)                                 Declarants
and each Additional Units Owner hereby establish, create and reserve for each
Additional Units Owner and hereby grant to the Additional Units Owners, their
respective successors and assigns, for the benefit of the Additional Units Site
owned by such Additional Units Owners, the following rights and easements over and
across the Additional Units Property:

 

(i)                                     Temporary and
nonexclusive rights and easements during the initial construction of a
Generating Plant on an Additional Units Site over and across the Additional
Units Road System for vehicular and pedestrian ingress and egress to and from
and access to the Road System, the Additional Units Utility Lines, each Utility
Line installed (or to be installed) or used by such Additional Units Owners in
accordance with this Declaration, and such Additional Units Site. Notwithstanding
the foregoing to the contrary, except as may be otherwise specified by the
Plant Vogtle Operating Agent, and except for the temporary haul roads under
Paragraph 3(a)(ix) hereof, all construction traffic shall access the
applicable Additional Units Site and Temporary Area from the public right of
way of River Road located along the northwesterly portion of the Vogtle
Available Property and shall use only such portion of the Road System as is
reasonably required for such access.

 

(ii)                                  Perpetual and
nonexclusive rights and easements over and across the Additional Units Road
System for vehicular and pedestrian ingress and egress to and from and access
to the Road System, the Additional Units Utility Lines, each Utility Line
installed (or to be installed) or used by such Additional Units Owner in
accordance with this Declaration, and the Additional Units Site owned by such
Additional Units Owners. Notwithstanding the foregoing to the contrary, except
as may be specifically otherwise approved by the Plant Vogtle Operating
Agent, and except for the temporary haul roads under Paragraph 3(a)(ix) hereof,
all construction traffic shall access the applicable Additional Units Site and
Temporary Area from the public right of way of River Road located along the
northwesterly portion of the Vogtle Available Property and shall use only such
portion of the Road System as is reasonably required for such access. The
Additional Units Road System shall be constructed by the Additional Units Agent
in accordance with the Additional Units Ownership Agreement. Access under
Paragraphs 3(b)(i) and (ii) shall include full
and unimpeded access, in common with the Vogtle Owners (as to those easements
with respect to the Additional Units Road System expressly reserved by or granted
to the Vogtle Owners in this Declaration) and the other Additional Units
Owners, over and across the Additional Units
Road System or, where no roads exist, over and through those areas of the
Additional Units Property which are (i) reasonably necessary for achieving
the underlying purposes of the beneficiaries of the easement, 

 

17

 

and (ii) least likely, out of the alternatives reasonably
available, to impede or damage the property or operations (including but not
limited to Plant Vogtle and the Generating Plant(s) located or contemplated to
be located on the Additional Units Property) of the other Vogtle Owners and
Additional Units Owners.

 

(iii)                               Perpetual nonexclusive
rights and easements to erect, construct, reconstruct, use, inspect, install,
alter, restore, replace, remove, operate, patrol, maintain, repair, renew,
upgrade, expand, and add onto Additional Units Utility Lines on, over, across
and under the Additional Units Property, at locations (extending the Applicable
Distance from the centerline thereof, the “Additional Units Utility Lines
Easement Area”) consented to in writing by the Additional Units Agent, which
consent the Additional Units Agent shall not unreasonably withhold, delay or
condition. Each Additional Units Utility Line shall be constructed in
accordance with this Declaration and the Additional Units Ownership Agreement.
Upon completion of construction, the Additional Units Agent shall deliver to
the Plant Vogtle Operating Agent three (3) copies of the “as-built”
plans for such Additional Units Utility Line. The Plant Vogtle Operating Agent
shall make all such plans so delivered available for inspection and copying by
the Additional Units Owners during normal business hours.

 

(iv)                              Perpetual and
nonexclusive rights and easements to connect onto and use the Additional Units
Utility Lines in a manner consistent with the Additional Units Ownership
Agreement. Such connections shall be made at locations designated in accordance
with the Additional Units Ownership Agreement.

 

(v)                                 Perpetual and
nonexclusive rights and easements to enter upon the Additional Units Utility
Lines Easement Area and the Additional Units Road System, as and when
necessary, for the purpose of the Additional Units Agent or such Additional
Units Owners exercising the rights and easements established, granted, reserved
and created in this Declaration.

 

(vi)                              The Additional Units
Owners of the Additional Units Site within the Additional Units Utility Lines
Easement Area shall have the right to (i) landscape the surface of the
portion of the Additional Units Utilities Lines Easement Area located on such
Additional Units Site, (ii) place thereon roads, parking areas and
improvements other than buildings, (iii) make any other use thereof not
inconsistent with the easements granted herein, and (iv) relocate all or
any portion of the Additional Units Utility Lines subject to the provisions of
this subsection. The Additional Units Owners reserve the right with respect to
the Additional Units Site owned by such Additional Units Owner to temporarily
barricade each of the easement areas located thereon established, granted,
reserved and created in this Declaration as necessary for the purpose of
repairing or maintaining the surface area thereof or for installing,
maintaining and 

 

18

 

repairing any utilities located thereon or thereunder, or to relocate
all or any portion of the Additional Units Utility Lines thereon upon giving
not less than ten (10) days’ prior written notice of such relocation
to the affected Additional Units Owners, provided and on the condition that (a) all
work performed in connection with such relocation shall (I) be at the sole
cost and expense of the relocating Additional Units Owners, (II) comply
with all governmental codes and ordinances applicable thereto, (III) be
performed in a good and workmanlike manner in accordance with good and
consistent engineering standards and the standards used in the original
construction of such Additional Units Utility Line, (IV) be in accordance
with Good Utility Practices, and (V) cause only the temporary
inconvenience inherent in connection with such relocation, and not otherwise
interfere with the beneficial use for which such Additional Units Utility Line
was designed or with the operation of any Generating Plant on the Additional
Units Property, (b) the proposed relocation does not change or relocate
the point of connection of such Additional Units Utility Line at the boundary
line of the applicable Additional Units Site (provided, however, that the
connection point may be relocated or changed if the Additional Units
Owners of the Additional Units Site affected by such change approve the
proposed relocation of such Additional Units Utility Line, which approval such
Additional Units Owners agree not to unreasonably withhold, condition or delay;
further provided, however, that regardless of the terms and provisions of any
Security Instrument, no consent of the holder of any Security Instrument shall
be required in order for the approval of such Additional Units Owners to be
effective), and (c) the Additional Units Utility Lines Easement Area with
respect to the applicable Additional Units Utility Line shall be automatically
revised, without any further action of the Additional Units Owners or any of
them, to include such portion of the Additional Units Property as is necessary
to provide an easement area of the Applicable Distance on each side of the
centerline of such Additional Units Utility Line as so relocated. Upon
completion of construction of such Additional Units Utility Line, the
constructing Additional Units Owners shall deliver to the Plant Vogtle
Operating Agent three (3) copies of the “as-built” plans for such
Additional Units Utility Line. The Plant Vogtle Operating Agent shall make all
such plans so delivered available for inspection and copying by the Additional
Units Owners during normal business hours.

 

(c)                                  Declarants
and the Additional Units Owners hereby establish, create and reserve for the
Vogtle Owners, for the benefit of the Vogtle Property, the following rights and
easements over and across the Additional Units Property:

 

(i)                                     Perpetual and
nonexclusive rights and easements over and across those portions of the Additional
Units Road System located outside the Additional Units Restricted Area for
vehicular and pedestrian ingress and egress to and from and access to the Road
System.

 

19

 

(ii)                                  Perpetual and
nonexclusive rights and easements to use the Barge Facility. The Barge Facility
shall be used by the Existing Units Owners in common with the Additional Units
Owners, upon and subject to such reasonable terms and conditions as the Plant
Vogtle Operating Agent shall from time to time designate in writing.

 

(d)                                 Declarants
hereby establish, create and reserve for GPC and hereby grant to GPC, its
successors and assigns, for the benefit of GPC (in the event GPC does not
reroute and construct the 500 kV GPC Scherer Transmission Line or does not
reroute and construct the 500 kV GPC McIntosh Transmission Line or does
not construct the 500 kV GPC Future Transmission Line #1 or does not construct
the 500 kV GPC Future Transmission Line #2, then, with respect to the line or
lines not so constructed by GPC, the following rights and easements shall
benefit such other owner of transmission lines forming a part of the
Integrated Transmission System in Georgia as constructs such line or lines, and
its successors and assigns), the Additional Units Property and the Additional
Units Owners, and the Vogtle Property and the Owners, the following rights and
easements over and across the Vogtle Available Property:

 

(i)                                     Perpetual
nonexclusive rights and easements to erect, construct, reconstruct, use,
inspect, install, alter, restore, replace, remove, operate, patrol, maintain,
repair, renew, upgrade, expand, relocate, and add onto (a) two existing
500 kV electric transmission lines (one such line, the “500 kV GPC Scherer
Transmission Line” and the other such line, the “500 kV GPC McIntosh
Transmission Line”) on, over, across and under the Vogtle Available Property,
to and from the existing switchyard located adjacent to the Existing Units, and
(b) two 500 kV electric transmission lines (one such line, the “500 kV
GPC Future Transmission Line #1” and the other such line, the “500 kV GPC
Future Transmission Line #2”) on, over, across and under the Vogtle Available
Property, to and from the Switchyard located or to be located on the Additional
Units Property, such rights and easements with respect to the 500 kV GPC
Scherer Transmission Line shall extend one hundred fifty (150) feet (measured
at a right angle) on each side of the center line of the 500 kV GPC
Scherer Transmission Line (the “Scherer TL Easement Area”), such rights and
easements with respect to the 500 kV GPC Future Transmission Line #1 shall
extend one hundred fifty (150) feet (measured at a right angle) on each side of
the center line of the 500 kV GPC Future Transmission Line #1 (the “Future TL
Easement Area #1”), such rights and easements with respect to the 500 kV
GPC Future Transmission Line #2 shall extend one hundred fifty (150) feet
(measured at a right angle) on each side of the center line of the 500 kV GPC
Future Transmission Line #2 (the “Future TL Easement Area #2”), and such rights
and easements with respect to the 500 kV GPC McIntosh Transmission Line
shall extend one hundred fifty (150) feet (measured at a right angle) on each
side of the center line of the 500 kV GPC McIntosh Transmission Line (the “McIntosh
TL Easement Area”). The 500 kV GPC Scherer Transmission Line, the 500 kV
GPC Future Transmission Line #1, the 500 kV GPC Future Transmission Line
#2, and the 500 kV GPC McIntosh Transmission Line shall each be installed,
constructed, located and relocated on the Vogtle Available 

 

20

 

Property at locations consented to in writing by the Plant Vogtle
Operating Agent, which consent the Plant Vogtle Operating Agent shall not unreasonably
withhold, delay or condition. In addition to and not in limitation of the
foregoing, the terms and provisions of Exhibit ”C” attached hereto
and by reference made a part hereof shall apply to such easements as if “Grantor”
referred to Declarants, “Grantee” referred to GPC (or such other permitted
owner of the line), and “Premises” referred to all of the Scherer TL Easement
Area, the Future TL Easement Area #1, the Future TL Easement Area #2 and the
McIntosh TL Easement Area (or such of the foregoing areas as correspond to the
line owned by such owner).

 

(e)                                  The
rights and easements of access set forth in this Paragraph 3 shall also
include access and right-of-way for employees, agents, consultants,
contractors, subcontractors, vehicles, trucks, trailers, heavy machinery,
equipment, materials, and all other items reasonably necessary for achieving
the underlying purposes of the beneficiaries of the easement; subject, however,
to the express restrictions on construction traffic set forth in this Paragraph 3.

 

(f)                                    Except
for the rights and easements expressly provided for in Paragraphs 3(b), 3(c) and
3(d) above to the contrary, with respect to each Additional Units Site,
Declarants, for themselves and the Owners, and each of them, in their capacity
as Owners of Plant Vogtle, but not in their capacity as Owners of such
Additional Units Site, hereby disclaim any and all right, title, interest,
easement, license and other right in or to the existing roads, drives and
passageways located on or crossing such Additional Units Site or Temporary
Area, and quitclaim to the Additional Units Owners such Additional Units Site
all such right, title, interest, easement, license and other rights in or to
the existing pipes, water lines, railroads, roads, drives and passageways
located on or crossing such Additional Units Site or Temporary Area.

 

(g)                                 Reference
is made to the Ownership and Operating Documents for the respective obligations
of the Plant Vogtle Operating Agent, the Additional Units Agent, the Additional
Units Owners and the Owners of the Vogtle Property with respect to
construction, maintenance, operation and repairs, construction of upgrades,
allocation and reimbursement of upgrades, maintenance, operation and other
costs and the payment of charges for the use of any property or facility
located on or serving all or any part of the Overall Property.

 

(h)                                 The
Vogtle Owners reserve the right with respect to the Vogtle Available Property
to temporarily barricade each of the easement areas located thereon established,
granted, reserved and created in this Declaration as necessary for the purpose
of repairing or maintaining the surface area thereof or for installing,
maintaining and repairing any utilities located thereon or thereunder, or to
relocate all or any portion of the Road System, Rail Line or Utility Lines upon
giving not less than ten (10) days’ prior written notice of such
relocation to the affected Additional Units Owner(s), provided and on the
condition that all work performed in connection with such relocation shall (a) comply
with all governmental codes and ordinances applicable thereto, (b) be
performed in a good and workmanlike manner in accordance with good and
consistent engineering standards and the standards used in the original
construction of such Road System, Rail Line or Utility Line, (c) be in
accordance with Good Utility Practices, (d) cause only to the temporary
inconvenience inherent in connection with such relocation, and not otherwise
interfere with the beneficial use for which such Rail Line, Utility Line or
Road 

 

21

 

System was designed or with the operation of any Generating Plant on
the Additional Units Property, and (e) the proposed relocation does not
change or relocate the point of connection of such Utility Line or Road System
at the boundary line of the Additional Units Property (provided, however, that
the connection point may be relocated or changed if the Additional Units
Agent approves  the proposed relocation
of such Utility Line or Road System, which approval such Additional Units Agent
agrees not to unreasonably withhold, condition or delay; further provided,
however, that regardless of the terms and provisions of any Security
Instrument, no consent of the holder of any Security Instrument shall be
required in order for such Additional Units Owner’s approval to be effective).

 

(i)                                     The
rights and easements established, granted, reserved and created in this
Declaration shall be reasonably exercised (including but not limited to the
selection of and consent to proposed locations for the Scherer TL Easement
Area, the Future TL Easement Area #1, the Future TL Easement Area #2, the
McIntosh TL Easement Area, Utility Lines, the Temporary Area, the Borrow Pit
Area, the Batch Plant Area and the Additional Units Simulator Building Area)
and shall be exercised in such manner as is (i) reasonably necessary for
achieving the underlying purposes of the exercising Owners, and (ii) least
likely, out of the alternatives reasonably available, to impede or damage the
property or operations (including but not limited to Plant Vogtle and the
Generating Plant(s) located or contemplated to be located on the Additional
Units Property) of the Existing Units Owners and Additional Units Owners.

 

(j)                                     If
any “Lien” arising out of the exercise by any Owner (the “Exercising Owner”) of
the rights and easements established, granted, reserved and created in this
Declaration shall at any time be filed against the Vogtle Property or either
Additional Units Site, then the Exercising Owner shall cause the same to be
released and discharged of record (or properly bonded off) within
twenty (20) days after the date of receipt of written notice from any
other Owner or any other Additional Units Owner or the Lien claimant identifying
such Lien. “Lien” shall mean any mechanic’s or other liens or claims of lien
arising by reason of work, labor, services or material supplied or claimed to
have been supplied to the Exercising Owner, or anyone employed by the
Exercising Owner.

 

(k)                                  The
Owner or Owners of the property located within the Applicable Distance of the
center line of a Utility Line shall have the right to (i) maintain,
repair, reconstruct, and restore any buildings or improvements which were
located thereon, or were under construction, at the time the location of such
Utility Line was approved pursuant to this Declaration, (ii) landscape the
surface thereof, (iii) place thereon roads, parking areas and improvements
other than buildings, and (iv) make any other use thereof not inconsistent
with the easements granted herein.

 

(l)                                     Promptly
after exercising any rights or easements established, granted, reserved and
created in this Declaration for the purpose of erecting, constructing,
reconstructing, using, inspecting, installing, altering, restoring, replacing,
removing, operating, patrolling, maintaining, repairing, renewing, upgrading,
expanding, and adding onto, the exercising Plant Vogtle Operating Agent or
Additional Units Agent shall remove all materials, equipment and debris brought
onto or deposited on the affected property [other than (i) crusher rock
and gravel as provided in Paragraphs 3(a)(x) and 3(a)(xiv) hereof, and (ii) such
materials and equipment as were incorporated into the applicable facility] and
return the surface of the affected property to the condition in which such
surface existed immediately prior to such action [except for 

 

22

 

(i) crusher rock and gravel as provided in Paragraphs 3(a)(x)
and 3(a)(xiv) hereof, (ii) the slopes constructed pursuant to
Paragraph 3(a)(xi) hereof, and (iii) the surface seeding with grass
provided for in Paragraphs 3(a)(xii), 3(a)(xiii) and 3(a)(xiv) hereof],
with the costs to be paid in accordance with the Ownership and Operating
Documents.

 

4.                                       Maintenance.
All structures, equipment, pipes, lines, surfaces and all other portions and
components of the Utility Lines shall be maintained, repaired and replaced,
when needed, in good serviceable order, condition and repair, and consistent
with all governmental codes and ordinances applicable thereto and Good Utility
Practices, reasonable wear and tear excepted, and except for such maintenance,
repair and replacement as shall be the obligation of the utility company or
other entity furnishing the utility service for which such Utility Line was
designed.

 

5.                                       Installation
of Facilities. All facilities which may be erected, constructed,
reconstructed, installed, altered, restored, replaced, operated, maintained,
repaired, upgraded, expanded or added on to under or pursuant to this
Declaration and which are located on the Vogtle Available Property shall be
erected, constructed, reconstructed, installed, altered, restored, replaced,
operated, maintained, repaired, upgraded, expanded or added on (a) in
compliance with all governmental codes and ordinances applicable thereto, and (b) in
a good and workmanlike manner in accordance with good and consistent
engineering standards and Good Utility Practices. The easement for each
installed Utility Line shall extend the Applicable Distance on each side of
such Utility Line as actually installed. Upon completion of the installation of
each such Utility Line or other facility, the Additional Units Agent shall
deliver to the Plant Vogtle Operating Agent three (3) copies of the “as-built”
plans for such Utility Line or facility, which shall be available for
inspection and copying by the Owners during normal business hours.

 

6.                                       Plant Vogtle
Property Reduction. In the event that, pursuant to the Additional Units
Ownership Agreement, any portion of the Vogtle Property is conveyed to one or
more of GPC, OPC, MEAG or Dalton (so that the percentage ownership interests of
GPC, OPC, MEAG and Dalton in such portion differ from such percentage ownership
interests in the Vogtle Property immediately prior to such conveyance), then,
from and after the date of such conveyance, “Vogtle Property” as used in this
Declaration shall mean the Vogtle Property as it existed immediately prior to
such conveyance, less and except the property so conveyed; provided, however,
that if, as of the date of such conveyance, any Utility Lines, Road System,
Additional Units Road System or Rail Line exist on the property so conveyed,
then, solely for purposes of the rights and easements with respect to such
existing Utility Line, Road System, Additional Units Road System or Rail Line, “Vogtle
Property” shall include such property so conveyed for so long as such Utility
Line, Road System, Additional Units Road System or Rail Line (including replacements
and expansions thereof) continues to be located on such property.

 

7.                                       Release.
At such time as any portion of any Utility Line, with the consent of the Plant
Vogtle Operating Agent, is dedicated (by deed or easement) to and accepted for
maintenance by Burke County, Georgia, or the applicable public utility company,
the terms and provisions of such deed or easement to Burke County or such
public utility company shall control to the extent of any conflict with the
terms and provisions hereof.

 

23

 

8.                                       Consent;
Approval; Reasonableness. (a)  In all instances where Declarants are,
or any Owner or any Additional Units Owner or the Plant Vogtle Operating Agent
or the Additional Units Agent is, required herein to be reasonable or not to be
unreasonable in a decision, action (including without limitation the exercise
of any rights or easements established, granted, reserved or created by this
Declaration) or the giving or withholding of consent or approval, then, in
addition to any other applicable standards, the following standards shall
apply:

 

(i)                                     Declarants and
Owners and Additional Units Owners intend that the provisions and agreements in
this Declaration requiring Declarants or any Owner or any Additional Units
Owner or the Plant Vogtle Operating Agent or the Additional Units Agent to act
reasonably and not to unreasonably withhold consent or approval are valid and
enforceable, and Declarants, Owners and Additional Units Owners each agree not
to challenge the validity or enforceability of such provisions and agreements;

 

(ii)                                  In determining
whether Declarants or any Owner or any Additional Units Owner or the Plant
Vogtle Operating Agent or the Additional Units Agent is deciding or has decided
or is acting or has acted reasonably or unreasonably, or has reasonably or
unreasonably given or is reasonably or unreasonably giving or has reasonably or
unreasonably withheld or is reasonably or unreasonably withholding its consent
or approval, the views and arguments of the parties shall be taken into account
and common sense shall be applied;

 

(iii)                               What is reasonable in
the context of the construction, operation and maintenance of a nuclear
electric power generating plant shall be taken into account;

 

(iv)                              What is reasonable in the
context of Good Utility Practices shall be taken into account;

 

(v)                                 Whether the requested
action is the least likely, out of the alternatives reasonably available, to
impede or damage the property or operations (including but not limited to Plant
Vogtle and the Generating Plant(s) located or contemplated to be located on the
Additional Units Property) of the other Owners and Additional Units Owners
shall be taken into account; and

 

(vi)                              The failure of Declarants
or any Owner or any Additional Units Owner or the Plant Vogtle Operating Agent
or the Additional Units Agent to pay or provide something of value to
Declarants or any Owner or any Additional Units Owner or the Plant Vogtle
Operating Agent or the Additional Units Agent where this Declaration does not
specifically require the same as a condition of approval or consent is not
grounds or justification for withholding consent or approval, and withholding
consent or approval on account of such failure shall be deemed unreasonable.

 

(b)                                 With
respect to any provision of this Declaration providing for the consent or
approval of Declarants, the Plant Vogtle Operating Agent, the Additional Units
Agent, any Owner or any Additional Units Owner (the “Consenting Party”),
failure of the Consenting Party to give the requesting Owner or Additional
Units Owner or Plant Vogtle Operating Agent or 

 

24

 

Additional Units Agent written notice of disapproval of a request (for
such notice to be effective, such disapproval must include reasonable detail
specifying the reasons for disapproval) within ten (10) business days
after receipt of written notice of such request shall be deemed approval
thereof.

 

9.                                       Miscellaneous.

 

(a)                                  Constructive
Notice and Acceptance. Every person or entity which now has or hereafter
acquires any right, title, estate, or interest in or to any portion of the
Overall Property is and shall conclusively be deemed to have consented, agreed
to and be bound by all of the covenants and agreements contained herein,
whether or not any reference to this Declaration is contained in the instrument
by which such person or entity acquires its interest in said portion of the
Overall Property.

 

(b)                                 Interpretation.
This Declaration shall be governed by and construed in accordance with the laws
of the State of Georgia, and the rule requiring a document to be construed
most strictly against the party drafting such document shall be inapplicable to
this Declaration.

 

(c)                                  Enforcement.
The violation or breach of any covenant or agreement herein contained shall
give any Owner, after notice of such violation or breach has been given to the
Owner violating or breaching any such covenant or agreement, the right to
prosecute a proceeding at law or in equity against the person or entity which
has violated or is attempting to violate any of the covenants and agreements
contained herein, and to enjoin or prevent such party from doing so or to cause
said violation to be remedied or to recover damages for said violation, which rights
shall be in addition to, and not to the exclusion of, the rights of enforcement
granted under the express terms of this Declaration or under the Ownership and
Operating Documents. Any failure to enforce any covenants contained herein
shall in no event be deemed to be a waiver of the right to do so thereafter nor
of any right to enforce any other covenant hereof. All remedies provided for
herein or at law or in equity shall be cumulative and not exclusive.

 

(d)                                 Severability.
All rights, powers and remedies provided herein may be exercised only to
the extent that the exercise thereof does not violate applicable law and shall
be limited to the extent necessary to render this Declaration valid and
enforceable. If any term, provision, covenant or agreement contained herein or
the application thereof to any person or circumstance shall be held to be
invalid, illegal or unenforceable, such holding shall not affect the validity
of the remainder of this Declaration or the application of such term,
provision, covenant or agreement to persons or circumstances other than those
to which it is held invalid or unenforceable.

 

(e)                                  Notice.
Any notice, request, consent or other communication permitted or required by
this Agreement shall (a) be made in writing signed by the party making it;
(b) specify the Section to which it relates; (c) be delivered (i) in
person, (ii) by a nationally recognized next business day delivery service
electing, and being timely delivered to such service for, next business day
delivery, or (iii) by fax and with a confirming copy sent by a nationally
recognized next business day delivery service electing, and being timely
delivered to such service for, next business day delivery; (d) unless
given in person, be given to the address 

 

25

 

specified below; and (e) be deemed given or received (i) if
delivered in person, on the date of personal delivery, (ii) if sent by a
nationally recognized next business day delivery service electing, and being
timely delivered to such service for, next business day delivery, on the first
business day after so sent, or (iii) if sent by fax with a copy sent by a
nationally recognized business day delivery service electing, and being timely
delivered to such service for, next business day delivery, on the first
business day after so sent. The party giving the notice or other communication
will pay all delivery costs. The addresses and the requirements for copies are
as follows:

 

GPC:

 

Georgia Power Company

Attention: President

BIN 10240

241 Ralph McGill Boulevard

Atlanta, Georgia 30308-3374

Facsimile No.: 404-506-7985

 

OPC:

 

Oglethorpe Power Corporation

Attention:  President and CEO

2100 East Exchange Place

Tucker, Georgia 30084-5336

Facsimile No.: 770-270-7872

 

MEAG:

 

Municipal Electric Authority of Georgia

Attention: President and CEO

1470 RiverEdge Parkway NW

Atlanta, Georgia 30328-4686

Facsimile No.: 770-661-2812

 

Dalton:

 

The City of Dalton, Georgia

Attention: CEO

1200 V. D. Parrott, Jr. Parkway

Dalton, Georgia 30721

Facsimile No.: 706-278-7230

 

unless a different officer or address shall have been designated by the
respective Party by notice in writing.

 

If the Owner giving notice hereunder (the “Notifying Owner”) shall have
previously received from any other Owner or from the holder of any Security
Instrument written notice in the manner provided in this Paragraph 9(e),
specifying the name and address of such holder of such Security Instrument and
requesting that such Notifying Owner give to such holder a copy of each notice
of default by the Owner (the “Defaulting Owner”) whose interest in the
Additional Units Site or Vogtle Property is subject to such Security Instrument
at the same time as and whenever any such notice of default shall thereafter be
given by Notifying Owner to Defaulting Owner, then 

 

26

 

Notifying Owner shall comply with such request by giving such notice,
addressed to such holder at the address last furnished to Notifying Owner. The
Owners shall accept performance by such holder of any covenant, condition or
agreement on Defaulting Owner’s part to be performed hereunder with the
same force and effect as though performed by Defaulting Owner, if, at the time
of such performance (or prior thereto), Owners shall be (or shall have been)
furnished with evidence reasonably satisfactory to them of the Security
Instrument and the interest in the Additional Units Site or Vogtle Property
created thereby claimed by such holder tendering such performance.

 

(f)                                    Time
is of the Essence. Time is of the essence with respect to this Declaration.

 

(g)                                 Waiver.
The failure of any Owner to exercise any right given hereunder or to insist
upon strict compliance with any term, condition or covenant specified herein,
shall not constitute a waiver of such Owner’s right to exercise such right or
to demand strict compliance with any such term, condition or covenant under
this Declaration.

 

(h)                                 Amendments.
Except as otherwise provided in the Additional Units Ownership Agreement, this
Declaration may be amended, modified and supplemented in compliance with
applicable law as the Owners shall from time to time deem to be appropriate,
but only upon the agreement of the Owners collectively owning in the aggregate
one hundred percent (100%) of the Vogtle Property (calculated based on the
undivided interests owned in the various portions of the Vogtle Property), and (ii) the
Additional Units Owners collectively owning in the aggregate one hundred
percent (100%) of the Additional Units Property (calculated based on the
undivided interests owned in the various portions of the Additional Units
Property), and (iii) in the event such amendment, modification or
supplement relates to or affects property removed from the Vogtle Property
pursuant to Paragraph 6 hereof, the Owners collectively owning in the
aggregate not less than one hundred percent (100%) of such removed property
(calculated based on the undivided interests owned in the various portions of
such removed property). Any such amendment, modification, or supplement shall
be evidenced by the recording of an appropriate instrument in the Burke County,
Georgia records, which instrument (i) shall be executed with the same
formalities as are required for the execution of a deed, (ii) shall be
signed by the Owners collectively owning in the aggregate one hundred percent
(100%) of the Vogtle Property (calculated based on the undivided interests
owned in the various portions of the Vogtle Property), (iii) shall be
signed by the Additional Units Owners collectively owning in the aggregate one
hundred percent (100%) of the Additional Units Property (calculated based on
the undivided interests owned in the various portions of the Additional Units
Property), (iv) shall set forth therein the Owner or Owners and the
undivided interest in the Vogtle Property owned by each signatory of said
instrument, (v) shall set forth therein the Additional Units Owner or
Additional Units Owners and the undivided interest in the Additional Units
Property owned by each signatory of said instrument, and (vi) in the event
such amendment, modification or supplement relates to or affects property
removed from the Vogtle Property pursuant to Paragraph 6 hereof,
(x) shall be signed by the Owners collectively owning in the aggregate one
hundred percent (100%) of such removed property (calculated based on the
undivided interests owned in the various portions of such removed property),
and (y) shall set forth therein the Owner or Owners and the undivided
interest in such removed property owned by each signatory of said instrument.
Any amendment, modification or supplement to this Declaration shall not be
binding on the holder of any first priority Security Instrument unless either (a) the
holder thereof 

 

27

 

consents in writing to such amendment, modification or supplement, or (b) such
consent is not required pursuant to the terms of such Security Instrument.

 

(i)                                     Termination
of Liability. In the event any Owner shall convey, transfer, assign or
otherwise dispose of all of its interest in any portion of the Overall
Property, it shall thereupon be released and discharged from any and all
obligations and liabilities under this Declaration with respect to such portion
of the Overall Property for the breach of any covenant or agreement in this
Declaration (except those accruing prior to such conveyance, transfer,
assignment or other disposition), and such liabilities and obligations shall
thereafter be binding upon the successor in title to such Owner.

 

(j)                                     Exhibits.
Exhibits “A”, “B” and “C” attached hereto are by this
reference incorporated herein and made a part hereof.

 

(k)                                  Successors
and Assigns. This Declaration and the covenants and agreements made and the
easements granted hereunder shall run with the land and shall be binding upon
and shall inure to the benefit of the Declarants and each Owner and each
Additional Units Owner and their respective successors, successors-in-title and
assigns.

 

(l)                                     Estoppels.
Upon the request of an Owner (the “Requesting Owner”) and payment by the
Requesting Owner of a reasonable fee, in connection with the sale, long term
ground lease, financing or refinancing of such Owner’s Additional Units Site,
each Owner will execute and deliver a certificate in favor of the applicable
ground lessee, lender or purchaser certifying (i) the amount of any sums
due the executing Owner from the Requesting Owner under the Additional Units
Ownership Agreement, and (ii) whether, to the best of such executing Owner’s
knowledge, the Requesting Owner is in default of any of its other duties or
obligations under this Declaration. Such certificate shall be binding upon the
executing Owner(s) and inure to the benefit of such lender, ground lessee or
purchaser as of the date of its issuance.

 

(m)                               Further
Assurances. Declarants agree that the intent of Declarants in executing
this Declaration is, inter alia, to grant and reserve all easements necessary
for the Additional Units Owners to construct and operate on each Additional
Units Site a Generating Plant and incidental facilities ancillary thereto (and
in the Temporary Area, a construction staging, office, laydown, parking and
warehouse area ancillary to the Generating Plants on the Additional Units
Property). Owners shall, from time to time, execute and deliver such amendments
to this Declaration and such further instruments as any other Owner or its
counsel may reasonably request to effectuate the intent of this
Declaration and the Additional Units Ownership Agreement, including, but not
limited to, documents necessary to correct any errors in this Declaration
(including but not limited to the Exhibits hereto).

 

(n)                                 Counterparts.
This Declaration may be executed in multiple counterparts, each of which
shall constitute an original, but all of which taken together shall constitute
one and the same agreement. The executed signature pages of any counterpart hereof
may be appended or attached to any other counterpart hereof; and,
provided that all parties hereto shall have executed a counterpart hereof,
this Agreement shall be valid and binding upon the parties notwithstanding the
fact that the execution of all parties may not be reflected upon any one
single counterpart.

 

28

 

(o)                                 Consent.
Each party to this Declaration (the “Representing Party”) hereby represents and
warrants to the other parties hereto that no consent to this Declaration, or
release or subordination by any holder of a Security Instrument, is required
under any instrument to which the Representing Party is a party in order to
make this Declaration binding upon the holder of a Security Instrument granted
by the Representing Party or in order to make this Declaration binding upon any
third party with rights in and to the Overall Property granted by the
Representing Party, except such as has been obtained.

 

(p)                                 No
Merger. The easements, rights and privileges granted by this Declaration
shall not terminate as a result of any merger of title or any current or future
common ownership of the Vogtle Property and Additional Units Property.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

29

 

[Signature Page Of Declaration Of
Covenants And Cross-Easements for Vogtle Additional Units]

 

IN WITNESS WHEREOF, Declarants have caused these presents to be
executed and their respective seals to be affixed hereunto, the day and year
first above written.

 

	
   

  	
  DECLARANTS

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the 

  presence of:

  	
  GPC:

  
	
   

  	
   

  	
  GEORGIA POWER COMPANY

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
  My Commission expires:

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  Notarial Seal

  	
  (CORPORATE SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the 

  presence of:

  	
  OPC::

  
	
   

  	
   

  
	
   

  	
   

  	
  OGLETHORPE POWER CORPORATION (AN 

  
	
  Witness

  	
   

  	
  ELECTRIC MEMBERSHIP CORPORATION)

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  My Commission expires:

  	
  Attest:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
  Notarial Seal

  	
   

  
	
   

  	
  (CORPORATE SEAL)

  
						

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

 

[Continuation of Signature Page Of
Amended and Restated Declaration Of Covenants And Cross-Easements for Vogtle

Additional Units]

 

	
  Signed, sealed and delivered in the 

  presence of:

  	
  MEAG:

  
	
   

  	
   

  	
  MUNICIPAL ELECTRIC AUTHORITY OF 

  
	
  Witness

  	
   

  	
  GEORGIA

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
  My Commission expires:

  	
  Attest:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
  Notarial Seal

  	
   

  
	
   

  	
  (SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed, sealed and delivered in the 

  presence of:

  	
  DALTON:

  
	
   

  	
   

  	
  CITY OF DALTON, GEORGIA

  
	
  Witness

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title: Mayor of City of Dalton

  	
   

  
	
  Notary Public

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
  My Commission expires:

  	
  Title: City Clerk

  	
   

  
	
   

  	
   

  
	
  Notarial Seal

  	
  (SEAL)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WATER, LIGHT AND SINKING FUND 

  COMMISSIONERS

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title: Chairman

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
   

  	
   

  
	
   

  	
  Title: Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
  (SEAL)

  
							

 

 

Exhibit “A”

 

Overall Property

 

The land, improvements and tangible personal property located in the 66th Georgia
Militia District, Burke County, Georgia, more particularly defined in the
Existing Units Ownership Agreement (as defined in the foregoing Declaration of
Covenants and Cross-Easements For Vogtle Additional Units), less and except therefrom all property,
rights and interests therein which are no longer subject to the Existing Units
Ownership Agreement. The legal description of “Plant Vogtle” (as that
term is defined in the Existing Units Ownership Agreement) as provided in the
Existing Units Ownership Agreement,
less and except therefrom all property, rights and interests therein which are
no longer subject to the Existing Units Ownership Agreement, is
incorporated into this Exhibit ”A” by reference and made a part hereof
as if set forth fully in this Exhibit ”A”.

 

 

Exhibit “B”

 

Additional Units Property

 

ALL THAT TRACT OR PARCEL OF LAND lying and being in the 66th Georgia
Militia District, Burke County, Georgia, being more particularly described as
follows:

 

BEGINNING at point having Plant Vogtle Plant Grid System coordinates of
North 9500 feet, East 5000 feet; thence running east to the point having Plant
Vogtle Plant Grid System coordinates of North 9500 feet, East 8500 feet; thence
running south to the point having Plant Vogtle Plant Grid System coordinates of
North 5500 feet, East 8500 feet; thence running southwest to the point having
Plant Vogtle Plant Grid System coordinates of North 5000 feet, East 8000 feet;
thence running west to the point having Plant Vogtle Plant Grid System
coordinates of North 5000 feet, East 5000 feet; thence running north to the
point having Plant Vogtle Plant Grid System coordinates of North 9500 feet,
East 5000 feet, and the point of beginning. Plant Vogtle Plant Grid System
coordinates can be converted to Georgia State Plane Coordinates [East Zone] as
follows: Plant Vogtle Plant Grid System North + 1,135,000 feet = State North;
Plant Vogtle Plant Grid System East + 614,000 feet = State East; all as shown
on Southern Nuclear Operating Company, Inc. Drawing No. AR01-0000-X2-0004,
Version 1.0, Job No. 25144, dated February 22, 2006.

 

 

Exhibit “C”

 

Transmission Line Easement Provisions

 

Grantor does hereby grant to Grantee the rights to, from time to time,
construct, operate, maintain, renew and rebuild overhead and underground
electric transmission, distribution and communication lines, together with
necessary or convenient towers, frames, poles, wires, manholes, conduits,
fixtures, appliances, and protective wires and devices in connection therewith (all
being hereinafter referred to as “the Transmission Facilities”) upon or under
the Premises, together with the right of Grantee to grant, or permit the
exercise of, the same rights, either in whole or in part, to others, and said
rights are granted to Grantee together with all rights, privileges and
easements necessary or convenient for the full enjoyment and use of the
Premises for the purposes above described, including without limitation the
right of ingress and egress to and from the Premises over lands of Grantor and
the right to cut away and keep clear, remove and dispose of all trees and
undergrowth and to remove and dispose of all obstructions now on the Premises
or that may hereafter be placed on the Premises by Grantor or any other
person. Further, Grantee shall have the right to cut, remove and dispose of
dead, diseased, weak or leaning trees (hereinafter referred to as “danger trees”)
on lands of Grantor adjacent to the Premises which may now or hereafter
strike, injure, endanger or interfere with the maintenance and operation of any
of the Transmission Facilities located on the Premises, provided that on future
cutting of such danger trees Grantee shall pay to Grantor the fair market value
of the merchantable timber so cut, timber so cut to become the property of
Grantee. Grantor shall notify Grantee of any party with whom it contracts, and
who owns as a result thereof, any danger trees to be cut as set forth above.
Grantee shall also have, and is hereby granted, the right to install, maintain and
use anchors or guy wires on lands of Grantor adjacent to the Premises, and the
right, when required by law or government regulations, to conduct scientific or
other studies, including but not limited to environmental and archaeological
studies, on or below the ground surface of the Premises.

 

Grantee shall pay or tender to Grantor or owner thereof a fair market
value for any growing crops, fruit trees or fences cut, damaged or destroyed on
the Premises by employees of Grantee and its agents, in the construction,
reconstruction, operation and maintenance of the Transmission Facilities,
except those crops, fruit trees and fences which are an obstruction to the use
of the Premises as herein provided or which interfere with or may be
likely to interfere with or endanger the Transmission Facilities or their
proper maintenance and operation, provided Grantor shall give Grantee written
notice of the alleged damage within thirty (30) days after the alleged damage
shall have been done. Grantor shall notify Grantee of any party with whom
Grantor contracts and who owns, as a result thereof, any growing crops, fruit
trees or fences; and Grantor shall inform said party of the notification
provision set forth herein. Any growing crops, fruit trees or fences so cut or
damaged on the Premises in the construction, reconstruction, operation and
maintenance of the Transmission Facilities are to remain the property of the
owner thereof.

 

It is agreed that part of the consideration set forth in the
Declaration is in full payment for all timber cut or to be cut in the initial
clearing and construction of the Transmission Facilities and that timber so cut
is to become the property of Grantee. Grantor will notify Grantee in the event
Grantor has contracted with another party who owns as a result thereof the
timber to be so cut.

 

Grantor has the right to use the Premises for agricultural or any other
purposes not inconsistent with the rights hereby granted, provided such use
shall not injure or interfere with the proper operation, maintenance, repair
of, extensions or additions to the Transmission Facilities; and provided
further that no buildings or structures other than fences (which shall not
exceed eight (8) feet in height and shall neither obstruct nor otherwise
interfere with any of the rights granted to Grantee hereby) may be erected
upon the Premises.

 

Grantor expressly grants to Grantee the right to take any action,
whether at law or in equity, and whether by injunction, ejectment or other
means, to prevent the construction, or after erection thereof to cause the
removal, of any building or other structure(s) located on the Premises (other
than fences as provided for herein), regardless of whether the offending party
is Grantor or not. Grantor will notify Grantee in the event Grantor contracts
with a third party who owns, as a result thereof, any buildings or other such
structures. Grantor acknowledges and agrees that said rights are necessary for
the safe and proper exercise and use of the rights, privileges, easements and
interests herein granted to Grantee.

 

TO HAVE AND TO HOLD forever unto Grantee the rights, privileges,
easements, powers, and interests granted herein, which shall be a covenant
running with the title to the Premises.

 

 

EXHIBIT B

 

CONSENTS AND APPROVALS

 

GPC:

 

None.

 

OPC:

 

For all purposes, approval of this Agreement from the Administrator of
the Rural Utilities Service.

 

For purposes of Sections 2.1(d), 2.1(e) and 3.5(d), approval of
this Agreement, the Amended and Restated Operating Agreement and the Nuclear Managing
Board Agreement from the Administrator of the Rural Utilities Service.

 

MEAG:

 

None.

 

Dalton:

 

None.

 

B-1

 

EXHIBIT C

 

CARRYING COSTS

 

For purposes of this Agreement, carrying costs for GPC shall be the
cost of funds, including income taxes, calculated as follows:

 

The capital structure of GPC as shown on GPC’s most recent 10-K Report
shall be calculated and broken down into four components, the sum of which
totals to one (1.00):

 

(1) long term debt,

 

(2) preferred securities,

 

(3) preferred stock, and

 

(4) common equity.

 

The cost of long term debt shall be the current weighted average
percentage cost of long term debt times
the long term debt component of the capital structure.

 

The cost of preferred securities shall be the current weighted average
percentage cost of preferred securities times
the preferred securities component of the capital structure.

 

The cost of preferred stock shall be the current weighted average
percentage dividend rate of such stock times
the preferred stock component of the capital structure divided by the current Tax Factor (as
defined below).

 

The cost of common equity shall be deemed to be 11.25% times the common equity component of
the capital structure divided by the current Tax Factor (as defined below).

 

Where, Tax Factor = (1-S) (1-F), where S = the Georgia corporate income
tax rate, and F = the effective federal corporate income tax rate.

 

GPC’s carrying costs shall be the sum of the four above determined
percentage rates.

 

C-1

 

Example:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tax

  	
   

  
	
   

  	
   

  	
  Component

  	
   

  	
  Proportion

  	
   

  	
  Cost

  	
   

  	
  Component

  	
   

  	
  Adjusted

  	
   

  
	
  Total L-Term Debt

  	
   

  	
  $

  	
  4,162,872

  	
   

  	
  41.47

  	
  %

  	
  4.15

  	
  %

  	
  1.72

  	
  %

  	
  1.72

  	
  %

  
	
  Preferred Securities

  	
   

  	
  969,073

  	
   

  	
  9.65

  	
  %

  	
  6.14

  	
  %

  	
  0.59

  	
  %

  	
  0.59

  	
  %

  
	
  Preferred Stock

  	
   

  	
  14,609

  	
   

  	
  0.15

  	
  %

  	
  4.60

  	
  %

  	
  0.01

  	
  %

  	
  0.02

  	
  %

  
	
  Common Equity

  	
   

  	
  4,890,561

  	
   

  	
  48.72

  	
  %

  	
  11.25

  	
  %

  	
  5.48

  	
  %

  	
  8.94

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  10,037,115

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  	
  7.80

  	
  %

  	
  11.27

  	
  %

  

 

C-2

 

For purposes of this Agreement, carrying costs for OPC shall be the
cost of funds, including income taxes, calculated as follows:

 

The capital structure of OPC as shown on OPC’s most recent 10-K Report
shall be calculated and broken down into two components, the sum of which
totals to one (1.00):

 

(1) long term debt, and

 

(2) equity.

 

The cost of long term debt shall be the current weighted average
percentage cost of long term debt times
the long term debt component of the capital structure.

 

For purposes of this Agreement, the cost of equity shall be deemed to
be 11.25% times the equity
component of the capital structure divided by the current Tax Factor (as defined above).

 

OPC’s carrying costs shall be the sum of the two above determined
percentage rates.

 

C-3

 

Example:

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Tax

  	
   

  
	
   

  	
   

  	
  Component

  	
   

  	
  Proportion

  	
   

  	
  Cost

  	
   

  	
  Component

  	
   

  	
  Adjusted

  	
   

  
	
  L-Term Debt

  	
   

  	
  $

  	
  3,588253

  	
   

  	
  89.64

  	
  %

  	
  5.25

  	
  %

  	
  4.71

  	
  %

  	
  4.71

  	
  %

  
	
  Equity

  	
   

  	
  414,759

  	
   

  	
  10.36

  	
  %

  	
  11.25

  	
  %

  	
  1.17

  	
  %

  	
  1.90

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  4,003,012.00

  	
   

  	
  100.00

  	
  %

  	
   

  	
   

  	
  5.88

  	
  %

  	
  6.61

  	
  %

  

 

C-4

 

For purposes of this Agreement, carrying costs for Dalton shall be the
same carrying cost that is used in its AFUDC (Allowance for Funds Used During
Construction) calculation on long term construction projects. Dalton uses it
weighted cost of debt for its AFUDC rate.

 

Since Dalton issues series bonds, its weighted cost of debt
changes each year as shorter termed bonds are retired. Consequently, unless
Dalton issues additional debt, its weighted cost of debt will increase each
year as follows.

 

	
  Year

  	
   

  	
  Dalton Carrying Costs (AFUDC Rate)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  5.141

  	
  %

  
	
  2006

  	
   

  	
  5.184

  	
  %

  
	
  2007

  	
   

  	
  5.227

  	
  %

  
	
  2008

  	
   

  	
  5.270

  	
  %

  

 

C-5

 

For purposes of this Agreement, carrying costs for MEAG shall be the
cost of funds calculated as follows:

 

The project capital structure of MEAG for the purpose of paying MEAG’s
share of the Cost of Construction shall be calculated and broken down into two
components, the sum of which totals to one (1.00):

 

(1) The debt component incurred for the purpose of paying MEAG’s
share of the Cost of Construction, and

 

(2) The equity component, including equity contributions from the
participants of MEAG, paid in for the purpose of paying MEAG’s share of the
Cost of Construction.

 

The cost of long term debt shall be the actual cost of funds borrowed
for the purpose of paying MEAG’s share of the Cost of Construction times the long term debt component of
the project financing.

 

For purposes of this Agreement, the cost of equity shall be deemed to
be 11.25% times the equity
component of the project financing.

 

MEAG’s carrying costs shall be the sum of the
two above determined percentage rates.

 

MEAG shall provide any Participating Party
that is required, pursuant to Section 7.4, to pay amounts attributable to
MEAG’s carrying costs with all reasonably requested data, documentation and any
other materials required to verify the calculation of the equity component of
the carrying costs of MEAG as provided above.

 

C-6

 

EXHIBIT D

 

FORM OF NOTICE OF OPC DEFAULT

 

[Date]

 

	
  Rural Utilities Service

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attn: Administrator

  
	
   

  
	
  Re:    Notice
  of Payment Default by Oglethorpe Power Corporation

  
	
   

  
	
  Ladies and Gentlemen:

  

 

This notice is delivered pursuant to Section 7.7(h) of the
Plant Alvin W. Vogtle Additional Units Ownership Participation Agreement among
Georgia Power Company, Oglethorpe Power Corporation (An Electric Membership
Corporation) (“Oglethorpe”), the Municipal Electric Authority of
Georgia, and the City of Dalton, Georgia, dated as of April 21, 2006 (the “Agreement”).
Capitalized terms used and not defined in this notice are used with the
meanings given such terms in the Agreement.

 

This notice informs you that Oglethorpe has failed to make one or more
payments due under the Agreement and is accordingly in default of its
obligations thereunder. Please be advised that until this payment default has
been cured, the following remedial provisions, among others, will be in effect:

 

(a)                                  Oglethorpe will not
be permitted to receive any output of capacity and energy from either of the
Plant Vogtle Additional Units, or to exercise any other rights of a
Participating Party with respect to either Additional Unit; and

 

(b)                                 the other co-owners of
the Additional Units will have the right to pay all or a portion of the amounts
unpaid by Oglethorpe, and in so doing acquire the right to capacity and energy
of the Additional Units until such co-owners have been repaid in full, with
interest.

 

These remedial provisions are set forth in Section 7.7 of the
Agreement. At RUS’s option, RUS may cure this payment default by making
payments directly to the Agent. Please contact [name] at [phone number]
if you desire to make a payment on Oglethorpe’s behalf.

 

D-1

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GEORGIA POWER COMPANY,

  
	
   

  	
   

  
	
   

  	
  as Agent under the Agreement

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

D-2

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