Document:

exv10w1

 

Exhibit 10.1

			
	 	 	 
	AMENDMENT NO. 1
	 	PAGE 1
	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

AMENDMENT NO. 1 TO

JOINT FACILITIES AGREEMENT

BY AND AMONG

CENTRAL MINNESOTA MUNICIPAL POWER AGENCY,

GREAT RIVER ENERGY,

HEARTLAND CONSUMERS POWER DISTRICT,

MONTANA-DAKOTA UTILITIES CO.,

A DIVISION OF MDU RESOURCES GROUP, INC.,

NORTHWESTERN CORPORATION,

dba NORTHWESTERN ENERGY,

OTTER TAIL CORPORATION,

dba OTTER TAIL POWER COMPANY,

SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY,

AND

WESTERN MINNESOTA MUNICIPAL POWER AGENCY

JULY 13, 2006

 

 

			
	 	 	 
	AMENDMENT NO. 1
	 	PAGE 2
	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

AMENDMENT NO. 1 TO

JOINT FACILITIES AGREEMENT

     THIS AMENDMENT NO. 1 TO JOINT FACILITIES AGREEMENT (this “Amendment”) is made as of July 13,
2006 (the “Effective Date”), by and among Central Minnesota Municipal Power Agency, an agency
incorporated under the laws of Minnesota, Great River Energy, a cooperative corporation
incorporated under the laws of Minnesota, Heartland Consumers Power District, a consumers power
district formed and organized under the South Dakota Consumers Power District Law (Chapter 49-35 of
the South Dakota Codified Laws), Montana-Dakota Utilities Co., a Division of MDU Resources Group,
Inc., a corporation incorporated under the laws of the State of Delaware, NorthWestern Corporation
(formerly known as NorthWestern Public Service Company), a corporation incorporated under the laws
of the State of Delaware, doing business as NorthWestern Energy, Otter Tail Corporation, a
corporation incorporated under the laws of Minnesota, doing business as Otter Tail Power Company,
Southern Minnesota Municipal Power Agency, a municipal corporation and political subdivision of the
State of Minnesota, and Western Minnesota Municipal Power Agency, a municipal corporation and
political subdivision of the State of Minnesota (each individually a “Party” or “Owner” and,
collectively, the “Parties” or “Owners”).

RECITALS

     WHEREAS, the Parties desire to amend that certain Joint Facilities Agreement among the
Parties, dated as of June 30, 2005 (the “Agreement”), to reflect changes to clarify construction
risk and management governing responsibility for property damages to the Plants.

     NOW, THEREFORE, in consideration of the agreements and covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound by this Amendment, the Parties covenant and agree as follows:

     1. Capitalized Terms. Unless otherwise defined herein or unless the context clearly requires
a different meaning, the capitalized words and phrases used herein shall have the same meanings
ascribed to them in the Agreement or the other Project Documents, as the case may be.

     2. Amendments. The Agreement is amended as follows:

     (a) Section 11.02 of the Agreement is hereby amended and new Sections 12.03 and 12.04
are hereby added to the end of Article XII of the Agreement:

11.02. Insurance. As soon as reasonably practicable after the Effective Date, the
E&O Committees shall jointly develop a plan for purchasing an insurance policy
or policies on a joint or several basis as may be agreed upon, which may include,
without limitation, those types of insurance policies listed on Schedule 11.02 and
any other insurance policies the E&O Committees deem necessary with respect to the
Joint Facilities and the operation of the same (such policies, collectively,
“Owners’ Insurance”). When developing the plan pursuant to this Section 11.02,

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

the
E&O Committees shall endeavor, if possible, to recommend the purchase of a single
policy and shall also decide whether to purchase a joint loss endorsement with
respect to the Owners’ Insurance; provided, however, that, except to the extent of
the waiver and release of liability by each Group to the other for insured property
damage pursuant to Section 12.03, each Group shall maintain insurance against loss
or damage from such hazards and risks for which it provides indemnification pursuant
to this Agreement with reasonable limits, deductibles, self-insured retentions, and
such endorsements that are reasonable under the circumstances. The BSP II Group
shall require its contractors and subcontractors to maintain similar insurance only
as it relates to property damage caused by such contractors and subcontractors to
BSP II property. Each Group shall also provide the other Group with reasonable
proof of the same upon reasonable request from the other Group.

12.03 Waiver and Release of Liability for Insured Property Damage.

     (a) Notwithstanding anything in Sections 10.03, 10.04 or 11.01 of this
Agreement to the contrary relating strictly to indemnification for property damage
and applying only to insured property claims, the BSP I Owners waive and release the
BSP II Owners and their respective employees, officers, directors, members,
engineers, architects, contractors and subcontractors, from and against any and all
claims, rights of recovery, causes of action or liability for physical damage to the
BSP I Plant, the BSP I Joint Facilities or any BSP I Plant Property to the extent
such damage is insured by any form of property insurance carried by the BSP I Owners
and such damage is reimbursed to the BSP I Owners in accordance with the terms of
the policy. Notwithstanding the foregoing release, if any such damage is caused in
whole or in part by negligent, tortious or willful acts or omissions of the BSP II
Owners or its employees, officers, directors, members, architects, engineers,
contractors or subcontractors, then the BSP II Owners shall be responsible for, and
shall pay immediately upon demand, any deductible amount paid by the BSP I Owners
under the relevant insurance policies under this Section 12.03(a) and shall remain
primarily responsible for any damage to the extent (i) the relevant insurers deny
any claim for coverage under their respective policies, and (ii) if said damage is
covered by the relevant policies but the amount of damage exceeds the policy limits,
the amount of any excess cost required to remedy the damage. In addition, the BSP
II Owners shall be responsible to the
BSP I Owners (i) for lost Capacity and Energy as set forth in Sections 7.04 and
10.04 or any other non-property damage claim under those Sections, or (ii) for any
claims for bodily injury or personal injury under Section 10.04. If the property
insurance policy covering the BSP I Plant requires consent of the property insurer
to the foregoing waiver and release, then the BSP I Owners shall, prior to the
occurrence of any loss under such policy, obtain such consent in writing and deliver
a copy thereof to the BSP II Owners. Nothing in the foregoing waiver and release
shall be construed as limiting the right of the BSP I Owners to make claims for
recovery under the relevant terms and conditions of

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     any insurance policies relating
to the BSP I Plant, the BSP I Joint Facilities or any BSP I Plant Property.

     (b) The BSP I Owners further agree that the property damage waiver and release
in Section 12.03(a) runs in favor of any employee, engineer, architect, contractor
or subcontractor performing design, engineering or construction work for the BSP II
Owners on BSP II or the Joint Facilities, except that no such employee, engineer,
architect, contractor or subcontractor shall be liable for any deductibles due and
owing out of any insured property damage or for amounts in excess of the property
insurance carried by the BSP I Owners (the payment of such deductibles and dollar
amounts in excess of property damage insurance shall be, as between the Parties
only, the sole responsibility of the BSP II Owners).

     (c) The BSP II Owners shall pay the following: (i) if there is a significant
insured property loss to the BSP I Plant (i.e., a loss in excess of
$5,000,000) that is paid by the property insurer of the BSP I Plant and that is
caused by the operations undertaken in connection with the construction of the BSP
II Plant (a “Material Loss”), then, to the extent the Material Loss causes an
increase in the property insurance premium assessed against the BSP I Plant, the BSP
II Owners shall pay 100% of the amount of such increased premium cost for each of
the three successive years in which such increased premium is assessed and (ii)
during the period of pre-construction and construction activities conducted by the
BSP II Owners pursuant to Section 10.03 (currently scheduled for June 2007) and for
a period of two (2) calendar years after the first date of Commercial Operation at
the BSP II Plant (currently scheduled for June 2011), the BSP II Owners shall pay to
the BSP I Owners 20% of the annual premium for the commercial property insurance
policy that covers the BSP I Plant (prorated for any partial policy term that occurs
during the foregoing period).

12.04 Right to Purchase Extra Expense Replacement Power Insurance. At the written
request of the BSP II Owners, the BSP I Owners shall, at the sole cost and expense
of the BSP II Owners, obtain Extra Expense Replacement Power
Insurance (or comparable loss of use insurance) for the BSP I Plant and/or the Joint
Facilities insuring the BSP I Owners against the additional cost to replace lost
Capacity or Energy suffered by the BSP I Owners as a result of damage to the BSP I
Plant and/or the Joint Facilities that arises out of the design, engineering,
construction, operation, maintenance or repair of the BSP II Plant or the Joint
Facilities undertaken by the BSP II Owners or their respective employees, officers,
directors, members, engineers, architects, contractors or subcontractors. The BSP I
Owners and the BSP II Owners shall reasonably cooperate with each other and their
respective insurance brokers in connection with the BSP I Owners’ procurement of
such insurance. If the BSP II Owners request in writing that the BSP I Owners
pursue procurement of such insurance, then the BSP II Owners shall reimburse the BSP
I Owners for any direct costs that the BSP I Owners incur in procuring, or
attempting to procure, such insurance. In no event shall the

 

 

			
	 	 	 
	AMENDMENT NO. 1
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BSP II Owners be
obligated to pay any premiums or other costs in connection with the procurement of,
or attempts to procure, such insurance unless it has requested in writing to the BSP
I Owners that they procure such insurance. The final terms, conditions and premium
cost for any insurance purchased pursuant to this Section 12.04 shall be reasonably
acceptable to the Owners and the premium cost of any policy so purchased shall be
paid for solely by the BSP II Owners. If the insurance contemplated by this Section
12.04 is purchased and issued, then the BSP I Owners agree that the waiver and
release of liability for insured property damage contained in Section 12.03(a)
hereof shall apply to the extent of insurance proceeds paid under such policy.

     3. Continuing Effect; Ratification. Except as expressly amended herein, all other terms,
covenants and conditions contained in the Agreement shall continue to remain unchanged and in full
force and effect and are hereby ratified and confirmed.

     4. Governing Law. This Amendment shall be interpreted and enforced in accordance with the
laws of the State of South Dakota, notwithstanding any conflict of law provision to the contrary.

     5. Captions. All titles, subject headings, Section titles and similar items are provided for
the purpose of reference and convenience and are not intended to affect the meaning of the content
or scope of this Amendment.

     6. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which, when so executed and delivered,
shall be deemed to be an original, and all of which, taken together, shall constitute but one in
the same instrument.

     7. Authority. Each signatory to this Amendment represents that he/she has the authority to
execute and deliver this Amendment on behalf of the Party set forth above its signature.

[SIGNATURE PAGES FOLLOW –

THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	OWNERS:

CENTRAL MINNESOTA MUNICIPAL POWER AGENCY

 	 
	 	By:  	/s/  Bob Elston
 	 
	 	 	Bob Elston, President 	 
	 	 	 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	GREAT RIVER ENERGY

 	 
	 	By:  	/s/  David Saggau
 	 
	 	 	David Saggau, 	 
	 	 	President and Chief Executive Officer 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	HEARTLAND CONSUMERS POWER DISTRICT

 	 
	 	By:  	/s/  Michael McDowell
 	 
	 	 	Michael McDowell, General Manager 	 
	 	 	 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	MONTANA-DAKOTA UTILITIES CO., 

a division of MDU Resources Group, Inc.

 	 
	 	By:  	/s/  Bruce T. Imsdahl
 	 
	 	 	Bruce T. Imsdahl, 	 
	 	 	President and Chief Executive Officer 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	NORTHWESTERN CORPORATION,

doing business as NorthWestern Energy

 	 
	 	By:  	/s/  Michael J. Hanson
 	 
	 	 	Michael J. Hanson, 	 
	 	 	President and Chief Executive Officer 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	OTTER TAIL CORPORATION,

doing business as Otter Tail Power Company

 	 
	 	By:  	/s/  Charles S. MacFarlane
 	 
	 	 	Charles S. MacFarlane, President 	 
	 	 	 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY

 	 
	 	By:  	/s/  Raymond A. Hayward
 	 
	 	 	Raymond A. Hayward, 	 
	 	 	Executive Director and CEO 	 
	 

 

 

			
	 	 	 
	AMENDMENT NO. 1
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	TO JOINT FACILITIES AGREEMENT
	 	JULY 13, 2006

     IN WITNESS WHEREOF, the Parties hereto have caused their names to be hereunto subscribed by
their officers, intending thereby that this Amendment shall be effective as of the Effective Date.

	 	 	 	 	 
	 	WESTERN MINNESOTA MUNICIPAL POWER AGENCY

 	 
	 	By:  	/s/  Thomas J. Heller
 	 
	 	 	Thomas J. Heller, Assistant Secretary, 	 
	 	 	Assistant Treasurerexv10w1

 

Exhibit 10.1

AMENDMENT NO. 1 TO SOFTWARE LICENSE AGREEMENT

     This undersigned parties (the “Parties”) desire to amend that certain Software
License Agreement (the “Software License Agreement”) dated
as of March 31, 2004, by
and among (i) Natural Health Trends Corp., a Delaware corporation that is the successor
in interest to Natural Health Trends Corp., a Florida corporation, (ii) MarketVision
Communications Corporation, a Delaware corporation formerly known as MV
MergerCo, Inc., and (iii) MarketVision Consulting Group, LLC, a Delaware limited
liability company.

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby amend the Software
License Agreement by revising Section 10.3 to read as follows in its entirety:

10.3 The occurance of a Share Default, as defined herein.
“Share Default” means the end of any rolling six-month
period during which Market Value per share of the NHTC
Common Stock fails to equal or exceed $10.00 per share,
such six-month period occurring within the three-year
period commencing on the earlier of (i) the first
anniversary of the date of this Agreement, or (ii) the date
on which the Merger Shares are registered with the
Securities and Exchange Commission for resale to the
public. Notwithstanding the foregoing, the end of such six-month
period must be on or after September 1, 2006.

     IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 to
Software License Agreement as of August 16, 2006.

	 	 	 	 	 
	NATURAL HEALTH TRENDS CORP.

a Delaware Corporation

 	 
	By:  	/s/ Stephanie S. Hayano	 
	 	Stephanie S. Hayano, President and CEO 	 
	 	 	 	 
	 

	 	 	 	 	 
	MARKETVISION COMMUNICATIONS CORPORATION

a Delaware Corporation

 	 
	By:  	/s/ John Cavanaugh	 
	 	John Cavanaugh, President 	 
	 	 	 	 
	 

	 	 	 	 	 
	MARKETVISION CONSULTING GROUP, LLC

a Delaware Corporation

 	 
	By:  	/s/  John Cavanaugh	 
	 	John Cavanaugh, Manager

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