x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 30, 2007
|
||
OR
|
||
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
94-3008969
|
|
(State
or other jurisdiction of
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(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Title
of each class
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Name
of each exchange on which registered
|
Class
A Common Stock. $0.001 par value
|
NASDAQ
Global Market
|
Large
Accelerated Filer x
|
Accelerated
Filer ¨
|
Non-accelerated
filer ¨
(Do
not check if a smaller reporting company)
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Smaller
reporting company ¨
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Page
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53
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74
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76
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122
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122
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122
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123
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123
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|
•
|
superior
performance, including the ability to generate up to 50% more power per
unit area;
|
|
•
|
superior
aesthetics, with our uniformly black surface design that eliminates highly
visible reflective grid lines and metal interconnect ribbons;
and
|
|
•
|
efficient
use of silicon, a key raw material used in the manufacture of solar
cells.
|
|
•
|
superior
performance delivered by maximizing energy delivery and financial return
through systems technology design;
|
|
•
|
superior
systems design to meet customer needs and reduce cost, including
non-penetrating, fast-install technology;
and
|
|
•
|
superior
channel breadth and delivery capability including turnkey
systems.
|
|
•
|
power
efficiency and performance;
|
|
•
|
price;
|
|
•
|
aesthetic
appearance of solar cells and
panels;
|
|
•
|
strength
of distribution relationships; and
|
|
•
|
timeliness
of new product introductions.
|
|
•
|
hire,
train, integrate and manage additional qualified engineers for research
and development activities, sales and marketing personnel, and financial
and information technology
personnel;
|
|
•
|
retain
key management and augment our management team, particularly if we lose
key members;
|
|
•
|
continue
to enhance our customer resource management and manufacturing management
systems;
|
|
•
|
implement
and improve additional and existing administrative, financial and
operations systems, procedures and controls, including the need to update
and integrate our financial internal control systems in SP Systems and in
our Philippines facility with those of our San Jose, California
headquarters;
|
|
•
|
expand
and upgrade our technological capabilities;
and
|
|
•
|
manage
multiple relationships with our customers, suppliers and other third
parties.
|
|
•
|
System
output performance
guaranties;
|
|
•
|
System
maintenance;
|
|
•
|
Liquidated
damage payments or customer termination rights if the system we are
constructing is not commissioned within specified
timeframes;
|
|
•
|
Guaranties
of certain minimum residual value of the system at specified future dates;
and
|
|
•
|
System
put-rights whereby we could be required buy-back a customer’s system at
fair value on specified future
dates.
|
|
•
|
the
average selling price of our solar cells, solar panels and solar power
systems;
|
|
•
|
the
availability and pricing of raw materials, particularly
polysilicon;
|
|
•
|
the
availability, pricing and timeliness of delivery of raw materials and
components, particularly solar panels and balance of systems components,
including steel, necessary for our solar power systems to
function;
|
|
•
|
the
rate and cost at which we are able to expand our manufacturing and product
assembly capacity to meet customer demand, including costs and timing of
adding personnel;
|
|
•
|
construction
cost overruns, including those associated with the introduction of new
products;
|
|
•
|
the
impact of seasonal variations in demand and/or revenue recognition linked
to construction cycles and weather
conditions;
|
|
•
|
timing,
availability and changes in government incentive
programs;
|
|
•
|
unplanned
additional expenses such as manufacturing failures, defects or
downtime;
|
|
•
|
acquisition
and investment related costs;
|
|
•
|
unpredictable
volume and timing of customer orders, some of which are not fixed by
contract but vary on a purchase order
basis;
|
|
•
|
the
loss of one or more key customers or the significant reduction or
postponement of orders from these
customers;
|
|
•
|
geopolitical
turmoil within any of the countries in which we operate or sell
products;
|
|
•
|
foreign
currency fluctuations, particularly in the Euro, Philippine peso or South
Korean won;
|
|
•
|
the
effect of currency hedging
activities;
|
|
•
|
our
ability to establish and expand customer
relationships;
|
|
•
|
changes
in our manufacturing costs;
|
|
•
|
changes
in the relative sales mix of our systems, solar cells and solar
panels;
|
|
•
|
the
availability, pricing and timeliness of delivery of other products, such
as inverters and other balance of systems materials necessary for our
solar power products to function;
|
|
•
|
our
ability to successfully develop, introduce and sell new or enhanced solar
power products in a timely manner, and the amount and timing of related
research and development costs;
|
|
•
|
the
timing of new product or technology announcements or introductions by our
competitors and other developments in the competitive
environment;
|
|
•
|
the
willingness of competing solar cell and panel suppliers to continue
product sales to our systems
segment;
|
|
•
|
increases
or decreases in electric rates due to changes in fossil fuel prices or
other factors; and
|
|
•
|
shipping
delays.
|
|
•
|
we
may experience cost overruns, delays, equipment problems and other
operating difficulties;
|
|
•
|
we
may experience difficulties expanding our processes to larger production
capacity;
|
|
•
|
our
custom-built equipment may take longer and cost more to engineer than
planned and may never operate as designed;
and
|
|
•
|
we
are incorporating first-time equipment designs and technology
improvements, which we expect to lower unit capital and operating costs,
but this new technology may not be
successful.
|
|
•
|
limited
assembly and testing capacity and potentially higher
prices;
|
|
•
|
limited
control over delivery schedules, quality assurance and control,
manufacturing yields and production costs;
and
|
|
•
|
delays
resulting from an inability to move production to an alternate
provider.
|
|
•
|
insufficient
experience with technologies and markets in which the acquired business is
involved, which may be necessary to successfully operate and integrate the
business;
|
|
•
|
problems
integrating the acquired operations, personnel, technologies or products
with the existing business and
products;
|
|
•
|
diversion
of management time and attention from the core business to the acquired
business or joint venture;
|
|
•
|
potential
failure to retain key technical, management, sales and other personnel of
the acquired business or joint
venture;
|
|
•
|
difficulties
in retaining relationships with suppliers and customers of the acquired
business, particularly where such customers or suppliers compete with
us;
|
|
•
|
subsequent
impairment of the acquired assets, including intangible assets;
and
|
|
•
|
assumption
of liabilities including, but not limited to, lawsuits, tax examinations,
warranty issues, etc.
|
|
•
|
multiple,
conflicting and changing laws and regulations, export and import
restrictions, employment laws, regulatory requirements and other
government approvals, permits and
licenses;
|
|
•
|
difficulties
and costs in staffing and managing foreign operations as well as cultural
differences;
|
|
•
|
difficulties
and costs in recruiting and retaining individuals skilled in international
business operations;
|
|
•
|
increased
costs associated with maintaining international marketing
efforts;
|
|
•
|
potentially
adverse tax consequences associated with our permanent establishment of
operations in more countries;
|
|
•
|
inadequate
local infrastructure;
|
|
•
|
financial
risks, such as longer sales and payment cycles and greater difficulty
collecting accounts receivable; and
|
|
•
|
political
and economic instability, including wars, acts of terrorism, political
unrest, boycotts, curtailments of trade and other business
restrictions.
|
|
•
|
our
customers often delay purchasing decisions until their eligibility for an
installation rebate is confirmed, which generally takes several
months;
|
|
•
|
the
long time required to secure adequate financing for system purchases on
terms acceptable to customers; and
|
|
•
|
the
customer’s review and approval processes for system purchases are lengthy
and time consuming.
|
|
•
|
if PowerLight
files a petition in bankruptcy or equivalent order or petition under the
laws of any jurisdiction;
|
|
•
|
if
a petition in bankruptcy or equivalent order or petition under the laws of
any jurisdiction is filed against it which is not dismissed within 60 days
of such filing;
|
|
•
|
if
PowerLight’s assets are assigned for the benefit of
creditors;
|
|
•
|
if PowerLight
voluntarily or involuntarily
dissolves;
|
|
•
|
if PowerLight
fails to pay any amount due under the agreements when due and does not
remedy such failure to pay within 10 days of written notice of such
failure to pay; or
|
|
•
|
if PowerLight
defaults in the performance of any of its material obligations under the
agreements when required (other than payment of amounts due under the
agreements), and such failure is not remedied within 30 days of written
notice to it of such default from Mr. Shingleton or MaxTracker
Services. However, if such a default can reasonably be cured after the
30-day period, and PowerLight commences cure of such default within
30-day period and diligently prosecutes that cure to completion, such
default does not trigger a termination right unless and
until PowerLight ceases commercially reasonable efforts to cure such
default.
|
|
•
|
people
may not be deterred from misappropriating our technologies despite the
existence of laws or contracts prohibiting
it;
|
|
•
|
policing
unauthorized use of our intellectual property may be difficult, expensive
and time-consuming, and we may be unable to determine the extent of any
unauthorized use; and
|
|
•
|
the
laws of other countries in which we market our solar cells, such as some
countries in the Asia/Pacific region, may offer little or no protection
for our proprietary technologies.
|
|
•
|
labor,
tax, employee benefit, indemnification and other matters arising from our
separation from Cypress;
|
|
•
|
employee
retention and recruiting;
|
|
•
|
business
combinations involving us;
|
|
•
|
pricing
for transitional services;
|
|
•
|
sales
or distributions by Cypress of all or any portion of its ownership
interest in us;
|
|
•
|
the
nature, quality and pricing of services Cypress has agreed to provide us;
and
|
|
•
|
business
opportunities that may be attractive to both Cypress and
us.
|
For
the year ended December 30, 2007
|
High
|
Low
|
||||||
First
quarter
|
$
|
48.11
|
$
|
35.40
|
||||
Second
quarter
|
65.55
|
45.84
|
||||||
Third
quarter
|
86.93
|
59.64
|
||||||
Fourth
quarter
|
164.49
|
81.50
|
||||||
For
the year ended December 31, 2006
|
High
|
Low
|
||||||
First
quarter
|
$
|
45.09
|
$
|
29.08
|
||||
Second
quarter
|
42.00
|
24.60
|
||||||
Third
quarter
|
34.25
|
23.75
|
||||||
Fourth
quarter
|
40.00
|
26.35
|
Period
|
Total Number of Shares
Purchased(1)
(in
thousands)
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number of Shares That May Yet Be Purchased Under the Publicly Announced
Plans or Programs
|
||||||||||||
October
1, 2007 through October 28, 2007
|
1
|
$
|
127.71
|
—
|
—
|
|||||||||||
October
29, 2007 through November 25, 2007
|
—
|
—
|
—
|
—
|
||||||||||||
November
26, 2007 through December 30, 2007
|
7
|
|
132.49
|
—
|
—
|
|||||||||||
Total
|
8
|
|
132.02
|
—
|
—
|
(1)
|
The
total number of shares purchased includes shares surrendered to satisfy
tax withholding obligations in connection with the vesting of restricted
stock issued to employees.
|
Plan
Category
|
Number of securities to
be issued upon exercise
of outstanding
options,
warrants
and rights
|
Weighted average
exercise
price of
outstanding
options,
warrants
and
rights
|
Number of securities remaining
available
for future issuance
under
equity compensation
plans
(excluding securities
reflected
in the first column)
|
|||||||||
Equity
compensation plans approved by security holders
|
2,889
|
$
|
4.73
|
28
|
||||||||
Equity
compensation shares not approved by security holders
|
17
|
(1)
|
2.00
|
—
|
||||||||
Total
|
2,906
|
(2)
|
4.71
|
28
|
(1)
|
Represents
one option to purchase shares of class A common stock issued to one
SunPower employee on June 17, 2004 with an exercise price of $2.00,
vesting over five years.
|
(2)
|
This
table excludes options to purchase an aggregate of approximately 795,000
shares of class A common stock, at a weighted average exercise price of
$8.09 per share, that we assumed in connection with the acquisition of SP
Systems in January 2007.
|
11/17/05
|
12/30/05
|
12/31/06
|
12/30/07
|
|||||||||||||
SunPower
Corporation
|
$
|
100.00
|
$
|
133.56
|
$
|
146.05
|
$
|
514.93
|
||||||||
NASDAQ
Market Index
|
100.00
|
99.32
|
108.77
|
120.45
|
||||||||||||
Evergreen
Solar
|
100.00
|
89.27
|
63.45
|
144.34
|
||||||||||||
Energy
Conversion Devices
|
100.00
|
130.15
|
108.53
|
105.78
|
||||||||||||
SolarWorld
|
100.00
|
94.63
|
160.70
|
140.42
|
||||||||||||
Solon
AG
|
100.00
|
99.11
|
91.85
|
277.46
|
Successor
Company
|
Predecessor
Company
|
|||||||||||||||||||||||
Year Ended
|
Nov.
9, 2004
Through
Jan.
2, 2005
|
Dec.
29, 2003
Through
Nov.
8,
2004
|
Year
Ended December 28, 2003
|
|||||||||||||||||||||
(In
thousands, except per share data)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||||||||||||||
Consolidated
Statements of Operations Data
|
||||||||||||||||||||||||
Revenue:
|
||||||||||||||||||||||||
Systems
|
$
|
464,178
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||
Components
|
310,612
|
236,510
|
78,736
|
4,055
|
6,830
|
5,005
|
||||||||||||||||||
774,790
|
236,510
|
78,736
|
4,055
|
6,830
|
5,005
|
|||||||||||||||||||
Costs
and expenses:
|
||||||||||||||||||||||||
Cost
of systems revenue
|
386,511
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Cost
of components revenue
|
240,475
|
186,042
|
74,353
|
6,079
|
9,498
|
4,987
|
||||||||||||||||||
Research
and development
|
13,563
|
9,684
|
6,488
|
1,417
|
12,118
|
9,816
|
||||||||||||||||||
Sales,
general and administrative
|
108,256
|
21,677
|
10,880
|
1,111
|
4,713
|
3,238
|
||||||||||||||||||
Purchased
in-process research and development
|
9,575
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Impairment
of acquisition-related intangibles
|
14,068
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
costs and expenses
|
772,448
|
217,403
|
91,721
|
8,607
|
26,329
|
18,041
|
||||||||||||||||||
Operating
income (loss)
|
2,342
|
19,107
|
(12,985
|
)
|
(4,552
|
)
|
(19,499
|
)
|
(13,036
|
)
|
||||||||||||||
Interest
income
|
13,882
|
10,086
|
1,591
|
3
|
15
|
—
|
||||||||||||||||||
Interest
expense
|
(5,071
|
)
|
(1,809
|
)
|
(3,185
|
)
|
(1,072
|
)
|
(3,759
|
)
|
(1,509
|
)
|
||||||||||||
Other
income (expense), net
|
(7,871
|
)
|
1,077
|
(1,214
|
)
|
12
|
(59
|
)
|
—
|
|||||||||||||||
Income
(loss) before income taxes
|
3,282
|
28,461
|
(15,793
|
)
|
(5,609
|
)
|
(23,302
|
)
|
(14,545
|
)
|
||||||||||||||
Income
tax provision (benefit)
|
(5,920
|
)
|
1,945
|
50
|
—
|
—
|
—
|
|||||||||||||||||
Net
income (loss)
|
$
|
9,202
|
$
|
26,516
|
$
|
(15,843
|
)
|
$
|
(5,609
|
)
|
$
|
(23,302
|
)
|
$
|
(14,545
|
)
|
||||||||
Net
income (loss) per share:
|
||||||||||||||||||||||||
Basic(1)
|
$
|
0.12
|
$
|
0.40
|
$
|
(0.68
|
)
|
$
|
(2,804.50
|
)
|
$
|
(5.51
|
)
|
$
|
(3.50
|
)
|
||||||||
Diluted(1)
|
$
|
0.11
|
$
|
0.37
|
$
|
(0.68
|
)
|
$
|
(2,804.50
|
)
|
$
|
(5.51
|
)
|
$
|
(3.50
|
)
|
||||||||
Weighted-average
shares:
|
||||||||||||||||||||||||
Basic (1)
|
75,413
|
65,864
|
23,306
|
2
|
4,230
|
4,156
|
||||||||||||||||||
Diluted(1)
|
81,227
|
71,087
|
23,306
|
2
|
4,230
|
4,156
|
(1)
|
The
basic and diluted net income (loss) per share computation excludes
potential shares of common stock issuable upon conversion of convertible
preferred stock and exercise of options and warrants to purchase common
stock when their effect would be antidilutive. Basic and diluted net
income (loss) per share computation also excludes 2.9 million shares of
class A common stock lent to an affiliate of Lehman Brothers in connection
with the Company’s issuance of $200.0 million in principal amount of its
1.25% senior convertible debentures in February 2007 and 1.8 million
shares of class A common stock lent to an affiliate of Credit Suisse in
connection with the Company’s issuance of $225.0 million in principal
amount of its 0.75% senior convertible debentures in July 2007. See Note 6
of Notes to our Consolidated Financial Statements for a detailed
explanation of the determination of the shares used in computing basic and
diluted net income (loss) per
share.
|
Successor
Company
|
Predecessor
Company
|
|||||||||||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
January
2,
2005
|
December
28,
2003
|
|||||||||||||||
Consolidated
Balance Sheets Data
|
||||||||||||||||||||
Cash,
cash equivalents and short-term investments
|
$
|
390,667
|
$
|
182,092
|
$
|
143,592
|
$
|
3,776
|
$
|
5,588
|
||||||||||
Working
capital (deficiency)
|
93,953
|
228,269
|
155,243
|
(54,314
|
)
|
(28,574
|
)
|
|||||||||||||
Total
assets
|
1,653,738
|
576,836
|
317,654
|
89,646
|
30,891
|
|||||||||||||||
Convertible
debt
|
425,000
|
—
|
—
|
—
|
—
|
|||||||||||||||
Deferred
tax liability
|
6,213
|
46
|
336
|
—
|
—
|
|||||||||||||||
Customer
advances, net of current portion
|
60,153
|
27,687
|
28,438
|
—
|
—
|
|||||||||||||||
Other
long-term liabilities
|
14,975
|
—
|
—
|
—
|
—
|
|||||||||||||||
Notes
payable to Cypress, net of current portion
|
—
|
—
|
—
|
21,673
|
5,312
|
|||||||||||||||
Convertible
preferred stock
|
—
|
—
|
—
|
8,552
|
9,366
|
|||||||||||||||
Total
stockholders’ equity (deficit)
|
864,090
|
488,771
|
258,650
|
(10,664
|
)
|
(20,479
|
)
|
|
•
|
superior
performance, including the ability to generate up to 50% more power per
unit area;
|
|
•
|
superior
aesthetics, with our uniformly black surface design that eliminates highly
visible reflective grid lines and metal interconnect ribbons;
and
|
|
•
|
efficient
use of silicon, a key raw material used in the manufacture of solar
cells.
|
|
•
|
superior
performance delivered by maximizing energy delivery and financial return
through systems technology design;
|
|
•
|
superior
systems design to meet customer needs and reduce cost, including
non-penetrating, fast-install technology;
and
|
|
•
|
superior
channel breadth and delivery capability including turnkey
systems.
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December 31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Systems
revenue
|
$ | 464,178 | $ | — | $ | — |
n.a.
|
n.a.
|
||||||||||||
Components
revenue
|
310,612 | 236,510 | 78,736 |
31%
|
200%
|
|||||||||||||||
Total
revenue
|
$ | 774,790 | $ | 236,510 | $ | 78,736 |
228%
|
200$
|
Year Ended
|
||||||||||||||
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||||||
Significant
customers:
|
Business
Segment
|
|||||||||||||
SolarPack
|
Systems
|
18%
|
|
—%
|
|
—%
|
|
|||||||
MMA
Renewable Ventures
|
Systems
|
16%
|
|
—%
|
|
—%
|
|
|||||||
Conergy
AG
|
Components
|
*
|
25%
|
|
45%
|
|
||||||||
Solon
AG
|
Components
|
*
|
24%
|
|
16%
|
|
||||||||
SP
Systems**
|
Components
|
n.a.
|
16%
|
|
*
|
|||||||||
General
Electric Company***
|
Components
|
*
|
*
|
10%
|
|
*
|
denotes
less than 10% during the period
|
**
|
acquired
by us on January 10, 2007
|
***
|
includes
its subcontracting partner, Plexus
Corporation
|
Year Ended
|
|||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2007
vs.
2006
Change
|
||||||||||||||
Cost
of systems revenue
|
$
|
386,511
|
$
|
—
|
$
|
—
|
n.a.
|
n.a.
|
|||||||||||
Cost
of components revenue
|
240,475
|
186,042
|
74,353
|
29
|
%
|
150
|
%
|
||||||||||||
Total
cost of revenue
|
$
|
626,986
|
$
|
186,042
|
$
|
74,353
|
237
|
%
|
150
|
%
|
|||||||||
Total
cost of revenue as a percentage of revenue
|
81
|
%
|
79
|
%
|
94
|
%
|
|||||||||||||
Total
gross margin percentage
|
19
|
%
|
21
|
%
|
6
|
%
|
Systems
Segment*
|
|
Components
Segment
|
||||||||||||||||||||||
Year Ended
|
|
Year Ended
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||||||||||||||
Amortization
of purchased intangible assets
|
$
|
20,085
|
$
|
4,767
|
$
|
4,690
|
$
|
1,175
|
2%
|
|
299%
|
|
||||||||||||
Stock-based
compensation
|
8,187
|
4,213
|
846
|
155
|
398%
|
|
446%
|
|
||||||||||||||||
Factory
pre-operating costs
|
939
|
3,964
|
383
|
—
|
935%
|
|
n.a.
|
|||||||||||||||||
All
other cost of revenue
|
357,300
|
227,531
|
180,123
|
73,023
|
26%
|
|
147%
|
|
||||||||||||||||
Total
cost of revenue
|
$
|
386,511
|
$
|
240,475
|
$
|
186,042
|
$
|
74,353
|
29%
|
|
150%
|
|
||||||||||||
Total
cost of revenue as a percentage of revenue
|
83
|
%
|
77
|
%
|
79
|
%
|
94
|
%
|
||||||||||||||||
Total
gross margin percentage
|
17
|
%
|
23
|
%
|
21
|
%
|
6
|
%
|
*
|
We
had no cost of systems revenue in fiscal 2006 and
2005.
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Research
& development
|
$
|
13,563
|
$
|
9,684
|
$
|
6,488
|
40%
|
|
49%
|
|
||||||||||
Research
& development as a percentage of revenue
|
2
|
%
|
4
|
%
|
8
|
%
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Sales,
general & administrative
|
$
|
108,256
|
$
|
21,677
|
$
|
10,880
|
399%
|
|
99%
|
|
||||||||||
As
a percentage of revenue
|
14
|
%
|
9
|
%
|
14
|
%
|
Year Ended
|
|||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
|
2006
vs.
2005
Change
|
|||||||||
Purchased
in-process research and development
|
9,575
|
—
|
—
|
n.a.
|
|
n.a.
|
|||||||||
Purchased
in-process research & development as a percentage of
revenue
|
1
|
%
|
n.a.
|
n.a.
|
|
Stage
of Completion
|
Total Cost
Incurred to Date
|
Total
Remaining Costs
|
||||||
Design Automation Tool | |||||||||
As
of January 10, 2007 (acquisition date)
|
8%
|
|
$
|
0.2 million
|
$
|
2.4 million
|
|||
As
of December 30, 2007
|
35%
|
|
$
|
0.9 million
|
$
|
1.7
million
|
|||
Tracking System and Other |
As
of January 10, 2007 (acquisition date)
|
25%
|
|
$
|
0.2 million
|
$
|
0.6 million
|
|||
As
of December 30, 2007
|
100%
|
|
$
|
0.8
million
|
$
|
—
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Impairment
of acquisition-related intangibles
|
$
|
14,068
|
$
|
—
|
$
|
—
|
n.a.
|
|
n.a.
|
|
||||||||||
As
a percentage of revenue
|
2
|
%
|
n.a.
|
|
n.a.
|
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Interest
income
|
$
|
13,882
|
$
|
10,086
|
$
|
1,591
|
38%
|
|
534%
|
|
||||||||||
As
a percentage of revenue
|
2
|
%
|
4
|
%
|
2
|
%
|
||||||||||||||
Interest
expense
|
$
|
(5,071
|
)
|
$
|
(1,809
|
)
|
$
|
(3,185
|
)
|
180%
|
|
(43)%
|
|
|||||||
As
a percentage of revenue
|
(1
|
)%
|
(1
|
)%
|
(4
|
)%
|
||||||||||||||
Other
income (expense), net
|
$
|
(7,871
|
)
|
$
|
1,077
|
$
|
(1,214
|
)
|
(831)%
|
|
(189)%
|
|
||||||||
As
a percentage of revenue
|
(1
|
)%
|
0
|
%
|
(2
|
)%
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||
Write-off
of unamortized debt issuance costs
|
$
|
(8,260
|
)
|
$
|
—
|
$
|
—
|
|||||
Amortization
of debt issuance costs
|
(1,710
|
)
|
—
|
—
|
||||||||
Share
in net loss of joint venture, net of tax
|
(278
|
)
|
—
|
—
|
||||||||
Gain
(loss) on derivatives and foreign exchange, net of tax
|
2,086
|
863
|
(1,441
|
)
|
||||||||
Other
income,
net
|
291
|
214
|
227
|
|||||||||
Total
other income (expense), net
|
$
|
(7,871
|
)
|
$
|
1,077
|
$
|
(1,214
|
)
|
Year Ended
|
||||||||||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
2007
vs.
2006
Change
|
2006
vs.
2005
Change
|
|||||||||||||||
Income
tax provision (benefit)
|
$
|
(5,920
|
)
|
$
|
1,945
|
$
|
50
|
(404)%
|
|
3,790%
|
|
|||||||||
As
a percentage of revenue
|
(1
|
)%
|
1
|
%
|
0
|
%
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||
Net
cash provided by (used in) operating activities
|
$
|
2,372
|
$
|
(45,966
|
)
|
$
|
15,903
|
|||||
Net
cash used in investing activities
|
(474,118
|
)
|
(133,330
|
)
|
(68,497
|
)
|
||||||
Net
cash provided by financing activities
|
584,625
|
201,300
|
192,410
|
Payments Due by Period
|
||||||||||||||||
(In thousands)
|
Total
|
2008
|
2009 -2010
|
2011 -2012
|
Beyond 2012
|
|||||||||||
Obligation
to Cypress
|
$
|
4,854
|
$
|
4,854
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Customer
advances
|
69,404
|
9,250
|
28,154
|
16,000
|
16,000
|
|||||||||||
Interest
on customer advances
|
2,618
|
1,421
|
1,197
|
—
|
—
|
|||||||||||
Convertible
debt
|
425,000
|
—
|
—
|
—
|
425,000
|
|||||||||||
Interest
on convertible debt
|
80,853
|
4,187
|
8,375
|
8,375
|
59,916
|
|||||||||||
Lease
commitments
|
47,027
|
4,844
|
10,408
|
8,090
|
23,685
|
|||||||||||
Utility
obligations
|
750
|
—
|
—
|
—
|
750
|
|||||||||||
Royalty obligations | 275 | 275 |
—
|
—
|
—
|
|||||||||||
Non-cancelable
purchase orders
|
161,751
|
160,867
|
884
|
—
|
—
|
|||||||||||
Purchase
commitments under agreements
|
2,099,495
|
263,150
|
744,880
|
518,103
|
573,362
|
|||||||||||
Total
|
$
|
2,892,027
|
$
|
448,848
|
$
|
793,898
|
$
|
550,568
|
$
|
1,098,713
|
Page(s)
|
|
77
|
|
FINANCIAL STATEMENTS
|
|
78
|
|
79
|
|
80
|
|
81
|
|
82
|
|
83
|
|
131
|
|
/s/ PricewaterhouseCoopers
LLP
|
San Jose, California | |
|
March
2, 2008
|
December 30,
2007
|
December 31,
2006
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
285,214
|
$
|
165,596
|
||||
Short-term
investments
|
105,453
|
16,496
|
||||||
Accounts
receivable, net
|
138,250
|
51,680
|
||||||
Costs
and estimated earnings in excess of billings
|
39,136
|
—
|
||||||
Inventories
|
140,504
|
22,780
|
||||||
Deferred
project costs
|
8,316
|
—
|
||||||
Advances
to suppliers, current portion
|
52,277
|
15,394
|
||||||
Prepaid
expenses and other current assets
|
33,110
|
16,655
|
||||||
Total
current assets
|
802,260
|
288,601
|
||||||
Restricted
cash
|
67,887
|
—
|
||||||
Long-term investments | 29,050 |
—
|
||||||
Property,
plant and equipment, net
|
377,994
|
202,428
|
||||||
Goodwill
|
184,684
|
2,883
|
||||||
Intangible
assets, net
|
50,946
|
14,049
|
||||||
Advances
to suppliers, net of current portion
|
108,943
|
62,242
|
||||||
Other
long-term assets
|
31,974
|
6,633
|
||||||
Total
assets
|
$
|
1,653,738
|
$
|
576,836
|
||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
119,869
|
$
|
26,534
|
||||
Accounts
payable to Cypress
|
4,854
|
2,909
|
||||||
Accrued
liabilities
|
79,434
|
18,585
|
||||||
Billings
in excess of costs and estimated earnings
|
69,900
|
—
|
||||||
Customer
advances, current portion
|
9,250
|
12,304
|
||||||
Convertible
debt
|
425,000
|
—
|
||||||
Total
current liabilities
|
708,307
|
60,332
|
||||||
Deferred
tax liability
|
6,213
|
46
|
||||||
Customer
advances, net of current portion
|
60,153
|
27,687
|
||||||
Other
long-term
liabilities
|
14,975
|
—
|
||||||
Total
liabilities
|
789,648
|
88,065
|
||||||
Commitments
and Contingencies (Note 11)
|
||||||||
Stockholders’
Equity:
|
||||||||
Preferred
stock, $0.001 par value, 10,042,490 shares authorized; none issued and
outstanding
|
—
|
—
|
||||||
Common
stock, $0.001 par value, 375,000,000 and 375,000,000 shares authorized;
84,803,006 and 69,849,369 shares issued; 84,710,244 and 69,849,369 shares
outstanding at December 30, 2007 and December 31, 2006,
respectively
|
85
|
70
|
||||||
Additional
paid-in capital
|
883,033
|
522,819
|
||||||
Accumulated
other comprehensive income (loss)
|
5,762
|
(2,101
|
)
|
|||||
Accumulated
deficit
|
(22,815
|
)
|
(32,017
|
)
|
||||
866,065
|
488,771
|
|||||||
Less:
shares of common stock held in treasury, at cost; 112,762 shares and none
at December 30, 2007 and December 31, 2006, respectively
|
(1,975
|
)
|
—
|
|||||
Total
stockholders’ equity
|
864,090
|
488,771
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
1,653,738
|
$
|
576,836
|
Year Ended
|
|||||||||||
December 30,
2007
|
December 31,
2006
|
January
1,
2006
|
|||||||||
Revenue:
|
|||||||||||
Systems
|
$
|
464,178
|
$
|
—
|
$
|
—
|
|||||
Components
|
310,612
|
236,510
|
78,736
|
||||||||
774,790
|
236,510
|
78,736
|
|||||||||
Costs
and expenses:
|
|||||||||||
Cost
of systems revenue
|
386,511
|
—
|
—
|
||||||||
Cost
of components revenue
|
240,475
|
186,042
|
74,353
|
||||||||
Research
and development
|
13,563
|
9,684
|
6,488
|
||||||||
Sales,
general and administrative
|
108,256
|
21,677
|
10,880
|
||||||||
Purchased
in-process research and development
|
9,575
|
—
|
—
|
||||||||
Impairment
of acquisition-related intangibles
|
14,068
|
—
|
—
|
||||||||
Total
costs and expenses
|
772,448
|
217,403
|
91,721
|
||||||||
Operating
income (loss)
|
2,342
|
19,107
|
(12,985
|
)
|
|||||||
Interest
income
|
13,882
|
10,086
|
1,591
|
||||||||
Interest
expense
|
(5,071
|
)
|
(1,809
|
)
|
(3,185
|
)
|
|||||
Other
income (expense), net
|
(7,871
|
)
|
1,077
|
(1,214
|
)
|
||||||
Income
(loss) before income taxes
|
3,282
|
28,461
|
(15,793
|
)
|
|||||||
Income
tax provision (benefit)
|
(5,920
|
)
|
1,945
|
50
|
|||||||
Net
income (loss)
|
$
|
9,202
|
$
|
26,516
|
$
|
(15,843
|
)
|
||||
Net
income (loss) per share:
|
|||||||||||
Basic
|
$
|
0.12
|
$
|
0.40
|
$
|
(0.68
|
)
|
||||
Diluted
|
$
|
0.11
|
$
|
0.37
|
$
|
(0.68
|
)
|
||||
Weighted-average
shares:
|
|||||||||||
Basic
|
75,413
|
65,864
|
23,306
|
||||||||
Diluted
|
81,227
|
71,087
|
23,306
|
Redeemable
Convertible
Preferred Stock
|
Common
Stock
|
|||||||||||||||||||||||||||||||||||
Shares
|
Value
|
Shares
|
Value
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Accumulated
Deficit
|
Total
Stockholders’
Equity
(Deficit)
|
||||||||||||||||||||||||||||
Balances
at January 2, 2005
|
12,915 | $ | 8,552 | 2 | $ | — | $ | 34,367 | $ | — | $ | (2,341 | )) | $ | (42,690 | ) | $ | (10,664 | ) | |||||||||||||||||
Issuance
of common stock upon exercise of options
|
— | — | 217 | — | 177 | — | — | — | 177 | |||||||||||||||||||||||||||
Issuance
of common stock to Cypress upon conversion of debt
|
— | — | 20,169 | 20 | 68,310 | — | — | — | 68,330 | |||||||||||||||||||||||||||
Issuance
of common stock to Cypress upon conversion of accounts
payable
|
— | — | 3,060 | 3 | 14,712 | — | — | — | 14,715 | |||||||||||||||||||||||||||
Issuance
of common stock to Cypress
|
— | — | 6,346 | 6 | 27,366 | — | — | — | 27,372 | |||||||||||||||||||||||||||
Issuance
of series two preferred stock to Cypress
|
14,000 | 7,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance
of series two preferred stock to Cypress upon conversion of
debt
|
18,000 | 9,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance
of common stock to Cypress upon conversion of redeemable convertible
preferred stock
|
(44,915 | ) | (24,552 | ) | 22,458 | 23 | 24,529 | — | — | — | 24,552 | |||||||||||||||||||||||||
Issuance
of restricted stock to employees
|
— | — | 15 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Compensation
on stock options issued to non-employees
|
— | — | — | — | 1,556 | — | — | — | 1,556 | |||||||||||||||||||||||||||
Proceeds
from initial public offering, net of offering expenses
|
— | — | 8,825 | 9 | 145,600 | — | — | — | 145,609 | |||||||||||||||||||||||||||
Net
unrealized gain on derivatives, net of tax
|
— | — | — | — | — | — | 2,846 | — | 2,846 | |||||||||||||||||||||||||||
Net
loss
|
— | — | — | — | — | — | — | (15,843 | ) | (15,843 | ) | |||||||||||||||||||||||||
Balances
at January 1, 2006
|
— | — | 61,092 | 61 | 316,617 | — | 505 | (58,533 | ) | 258,650 | ||||||||||||||||||||||||||
Issuance
of common stock upon exercise of options
|
— | — | 1,529 | 2 | 3,867 | — | — | — | 3,869 | |||||||||||||||||||||||||||
Issuance
of restricted stock to employees, net of cancellations
|
— | — | 228 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance
of common stock in relation to follow-on offering, net of offering
expenses
|
— | — | 7,000 | 7 | 197,424 | — | — | — | 197,431 | |||||||||||||||||||||||||||
Stock-based
compensation expense
|
— | — | — | — | 4,911 | — | — | — | 4,911 | |||||||||||||||||||||||||||
Net
unrealized loss on derivatives and investments, net of tax
|
— | — | — | — | — | — | (2,606 | )) | — | (2,606 | ) | |||||||||||||||||||||||||
Net
income
|
— | — | — | — | — | — | — | 26,516 | 26,516 | |||||||||||||||||||||||||||
Balances
at December 31, 2006
|
— | — | 69,849 | 70 | 522,819 | — | (2,101 | )) | (32,017 | ) | 488,771 | |||||||||||||||||||||||||
Issuance
of common stock upon exercise of options
|
— | — | 2,817 | 3 | 8,718 | — | — | — | 8,721 | |||||||||||||||||||||||||||
Issuance
of restricted stock to employees, net of cancellations
|
— | — | 608 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance
of common stock in relation to follow-on offering, net of offering
expenses
|
— | — | 2,695 | 3 | 167,376 | — | — | — | 167,379 | |||||||||||||||||||||||||||
Issuance
of common stock in relation to share lending arrangements
|
— | — | 4,747 | 5 | — | — | — | — | 5 | |||||||||||||||||||||||||||
Issuance
of common stock for purchase acquisition
|
— | — | 4,107 | 4 | 111,262 | — | — | — | 111,266 | |||||||||||||||||||||||||||
Stock
options assumed in relation to acquisition
|
— | — | — | — | 21,280 | — | — | — | 21,280 | |||||||||||||||||||||||||||
Stock-based
compensation expense
|
— | — | — | — | 51,578 | — | — | — | 51,578 | |||||||||||||||||||||||||||
Purchases
of treasury stock
|
— | — | (113 | ) | — | — | (1,975 | ) | — | — | (1,975 | ) | ||||||||||||||||||||||||
Cumulative
translation adjustment
|
— | — | — | — | — | — | 9,746 | — | 9,746 | |||||||||||||||||||||||||||
Net
unrealized loss on derivatives and investments, net of tax
|
— | — | — | — | — | — | (1,883 | ) | — | (1,883 | ) | |||||||||||||||||||||||||
Net
income
|
— | — | — | — | — | — | — | 9,202 | 9,202 | |||||||||||||||||||||||||||
Balances
at December 30, 2007
|
— | $ | — | 84,710 | $ | 85 | $ | 883,033 | $ | (1,975 | ) | $ | 5,762 | $ | (22,815 | ) | $ | 864,090 |
Year Ended
|
||||||||||
December 30,
2007
|
December 31,
2006
|
January
1,
2006
|
||||||||
Net
income (loss)
|
$
|
9,202
|
$
|
26,516
|
$
|
(15,843
|
)
|
|||
Other
comprehensive income (loss):
|
||||||||||
Cumulative
translation adjustment
|
9,746
|
—
|
—
|
|||||||
Unrealized
gain (loss) on derivatives and investments, net of tax
|
(1,883
|
)
|
(2,606
|
)
|
2,846
|
|||||
Total
comprehensive income (loss)
|
$
|
17,065
|
$
|
23,910
|
$
|
(12,997
|
)
|
Year Ended
|
||||||||||||
December
30,
2007
|
December
31,
2006
Note
1
|
January
1,
2006
Note
1
|
||||||||||
Cash
flows from operating activities:
|
|
|
||||||||||
Net
income (loss)
|
$
|
9,202
|
$
|
26,516
|
$
|
(15,843
|
)
|
|||||
Adjustments
to reconcile net income (loss) to net cash provided by (used in) operating
activities:
|
||||||||||||
Interest
expense related to warrants granted and accrued interest on notes
payable
|
—
|
—
|
3,381
|
|||||||||
Depreciation
|
27,335
|
16,363
|
7,147
|
|||||||||
Amortization
of intangible assets
|
28,540
|
4,690
|
4,704
|
|||||||||
Amortization
of debt issuance costs
|
1,710
|
—
|
—
|
|||||||||
Impairment
of acquisition-related intangibles
|
14,068
|
—
|
—
|
|||||||||
Write-off
of unamortized debt issuance costs
|
8,260
|
—
|
—
|
|||||||||
Impairment
charge related to equipment
|
—
|
—
|
461
|
|||||||||
Stock-based
compensation
|
51,212
|
4,864
|
1,556
|
|||||||||
Purchased
in-process research and development
|
9,575
|
—
|
—
|
|||||||||
(Gain)
loss on sale of fixed assets
|
(20
|
)
|
(16
|
)
|
82
|
|||||||
Deferred
income taxes and other tax liabilities
|
(9,424
|
)
|
(290
|
)
|
1,897
|
|||||||
Changes
in operating assets and liabilities, net of effect of
acquisition:
|
||||||||||||
Accounts
receivable
|
(42,749
|
)
|
(26,182
|
)
|
(20,940
|
)
|
||||||
Costs
and estimated earnings in excess of billings
|
(32,634
|
)
|
—
|
—
|
||||||||
Inventories
|
(87,033
|
)
|
(9,586
|
)
|
(8,731
|
)
|
||||||
Prepaid
expenses and other assets
|
(11,516
|
)
|
(3,697
|
)
|
63
|
|||||||
Deferred
project costs
|
17,804
|
—
|
—
|
|||||||||
Advances
to suppliers
|
(83,584
|
)
|
(77,358
|
)
|
(278
|
)
|
||||||
Accounts
payable and other accrued liabilities
|
40,346
|
15,763
|
(1,135
|
) | ||||||||
Accounts
payable to Cypress
|
1,945
|
376
|
6,139
|
|||||||||
Billings
in excess of costs and estimated earnings
|
29,923
|
—
|
—
|
|||||||||
Customer
advances
|
29,412
|
2,591
|
37,400
|
|||||||||
Net
cash provided by (used in) operating activities
|
2,372
|
(45,966
|
)
|
15,903
|
||||||||
Cash
flows from investing activities:
|
||||||||||||
Increase
in restricted cash
|
(63,176
|
)
|
—
|
—
|
||||||||
Purchase
of property, plant and equipment
|
(193,484
|
)
|
(100,292
|
)
|
(69,748
|
)
|
||||||
Purchase
of available-for-sale securities
|
(209,607
|
)
|
(33,996
|
)
|
—
|
|||||||
Proceeds
from sales of available-for-sale securities
|
91,600
|
17,500
|
—
|
|||||||||
Proceeds
from sale of fixed assets
|
90
|
91
|
1,251
|
|||||||||
Note
receivable from SP Systems
|
—
|
(10,000
|
)
|
—
|
||||||||
Cash
paid for acquisition, net of cash acquired
|
(98,645
|
)
|
—
|
—
|
||||||||
Investment
in joint venture
|
(896
|
)
|
(4,994
|
)
|
—
|
|||||||
Other
long-term assets
|
—
|
(1,639
|
)
|
—
|
||||||||
Net
cash used in investing activities
|
(474,118
|
)
|
(133,330
|
)
|
(68,497
|
)
|
||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from issuance of convertible debt
|
425,000
|
—
|
—
|
|||||||||
Convertible
debt issuance costs
|
(10,942
|
)
|
—
|
—
|
||||||||
Proceeds
from issuance of common stock under share lending
arrangements
|
5
|
—
|
—
|
|||||||||
Proceeds
from debt obligations to Cypress
|
—
|
—
|
12,500
|
|||||||||
Proceeds
from issuance of preferred stock to Cypress
|
—
|
—
|
7,000
|
|||||||||
Proceeds
from issuance of common stock to Cypress
|
—
|
—
|
27,372
|
|||||||||
Proceeds
from public issuance of common stock, net of offering
expenses
|
—
|
—
|
145,609
|
|||||||||
Proceeds
from follow-on offering of common stock, net of offering
expenses
|
167,379
|
197,431
|
—
|
|||||||||
Principal
payments on notes payable to Cypress
|
—
|
—
|
(248
|
)
|
||||||||
Principal
payments on line of credit and notes payable
|
(3,563
|
)
|
—
|
—
|
||||||||
Proceeds
from exercise of stock options
|
8,721
|
3,869
|
177
|
|||||||||
Purchases
of stock for tax withholding obligations on vested restricted
stock
|
(1,975
|
)
|
—
|
—
|
||||||||
Net
cash provided by financing activities
|
584,625
|
201,300
|
192,410
|
|||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
6,739
|
—
|
—
|
|||||||||
Net
increase in cash and cash equivalents
|
119,618
|
22,004
|
139,816
|
|||||||||
Cash
and cash equivalents at beginning of period
|
165,596
|
143,592
|
3,776
|
|||||||||
Cash
and cash equivalents at end of period
|
$
|
285,214
|
$
|
165,596
|
$
|
143,592
|
||||||
Non-cash
transactions:
|
||||||||||||
Issuance
of common stock for purchase acquisition
|
$
|
111,266
|
$
|
—
|
$
|
—
|
||||||
Stock
options assumed in relation to acquisition
|
21,280
|
—
|
—
|
|||||||||
Additions
to property, plant and equipment acquired under accounts payable and other
accrued liabilities
|
8,436 | 8,015 | 1,868 | |||||||||
Change
in goodwill relating to adjustments to acquired net assets
|
6,640
|
—
|
—
|
|||||||||
Relative
fair value of warrants issued (reduction related to debt
conversion)
|
—
|
—
|
(7,706
|
)
|
||||||||
Conversion
of notes payable to preferred stock
|
—
|
—
|
9,000
|
|||||||||
Conversion
of notes payable to common stock
|
—
|
—
|
76,036
|
|||||||||
Conversion
of accounts payable to common stock
|
—
|
—
|
14,715
|
|||||||||
Conversion
of preferred stock to common stock
|
—
|
—
|
24,552
|
|||||||||
Supplemental
cash flow information:
|
||||||||||||
Cash
paid for interest
|
3,497
|
1,690
|
—
|
|||||||||
Cash
paid for income taxes
|
887
|
—
|
—
|
Useful Lives
in
Years
|
||||
Building
|
15
|
|||
Manufacturing
equipment
|
2 to 7
|
|||
Computer
equipment
|
2
to 7
|
|||
Furniture
and fixtures
|
3
to 5
|
|||
Leasehold
improvements
|
5 to 15
|
(In
thousands)
|
Gross
|
Accumulated
Amortization
|
Net
|
|||||||||
As
of December 30, 2007
|
||||||||||||
Purchased
Technology
|
$
|
18,139
|
$
|
(11,376
|
)
|
$
|
6,763
|
|||||
Patents
|
3,811
|
(2,096
|
)
|
1,715
|
||||||||
Trademarks
and other
|
2,066
|
(1,263
|
)
|
803
|
||||||||
24,016
|
(14,735
|
)
|
9,281
|
|||||||||
Goodwill
|
2,883
|
—
|
2,883
|
|||||||||
$
|
26,899
|
$
|
(14,735
|
)
|
$
|
12,164
|
||||||
As
of December 31, 2006
|
||||||||||||
Purchased
Technology
|
$
|
18,139
|
$
|
(7,550
|
)
|
$
|
10,589
|
|||||
Patents
|
3,811
|
(1,423
|
)
|
2,388
|
||||||||
Trademarks
and other
|
2,066
|
(994
|
)
|
1,072
|
||||||||
24,016
|
(9,967
|
)
|
14,049
|
|||||||||
Goodwill
|
2,883
|
—
|
2,883
|
|||||||||
$
|
26,899
|
$
|
(9,967
|
)
|
$
|
16,932
|
(In thousands)
|
Shares
|
Fair Value at
January 10, 2007
|
||||
Purchase
consideration:
|
||||||
Cash
|
—
|
$
|
120,694
|
|||
Common
stock
|
2,961
|
111,266
|
||||
Stock
options assumed that are fully vested
|
618
|
21,280
|
||||
Direct
transaction costs
|
—
|
2,958
|
||||
Total
purchase consideration
|
3,579
|
256,198
|
||||
Future
stock compensation:
|
||||||
Shares
subject to re-vesting restrictions
|
1,146
|
43,046
|
||||
Stock
options assumed that are unvested
|
984
|
35,126
|
||||
Total
future stock compensation
|
2,130
|
78,172
|
||||
Total
purchase consideration and future stock compensation
|
5,709
|
$
|
334,370
|
(In thousands)
|
Amount
|
|||
Net
tangible assets
|
$
|
13,925
|
||
Patents
and purchased technology
|
29,448
|
|||
Tradenames
|
15,535
|
|||
Backlog
|
11,787
|
|||
Customer
relationships
|
22,730
|
|||
In-process
research and development
|
9,575
|
|||
Unearned
stock compensation
|
78,172
|
|||
Deferred
tax liability
|
(21,964
|
)
|
||
Goodwill
|
175,162
|
|||
Total
purchase consideration and future stock compensation
|
$
|
334,370
|
(In thousands)
|
Amount
|
|||
Cash
and cash equivalents
|
$
|
22,049
|
||
Restricted
cash
|
4,711
|
|||
Accounts
receivable, net
|
40,080
|
|||
Costs
and estimated earnings in excess of billings
|
9,136
|
|||
Inventories
|
28,146
|
|||
Deferred
project costs
|
24,932
|
|||
Prepaid
expenses and other assets
|
23,740
|
|||
Total
assets acquired
|
152,794
|
|||
Accounts
payable
|
(60,707
|
)
|
||
Billings
in excess of costs and estimated earnings
|
(35,887
|
)
|
||
Other
accrued expenses and liabilities
|
(42,275
|
)
|
||
Total
liabilities assumed
|
(138,869
|
)
|
||
Net
assets acquired
|
$
|
13,925
|
Intangible
Assets
|
Method
of Valuation
|
Discount
Rate
Used
|
Royalty
Rate
Used
|
Estimated
Useful Life
|
Patents
and purchased technology
|
Relief
from royalty method
|
25%
|
3%
|
4 years
|
Tradenames
|
Relief
from royalty method
|
25%
|
1%
|
5
years
|
Backlog
|
Income
approach
|
20%
|
—%
|
1
year
|
Customer
relationships
|
Income
approach
|
22%
|
—%
|
6
years
|
(In thousands)
|
||||
Cost
of systems revenue
|
$
|
20,085
|
||
Sales,
general and administrative
|
3,688
|
|||
Total
amortization expense
|
$
|
23,773
|
|
Stage
of Completion
|
Total Cost
Incurred to Date
|
Total
Remaining Costs
|
||||||
Design Automation Tool | |||||||||
As
of January 10, 2007 (acquisition date)
|
8%
|
|
$
|
0.2 million
|
$
|
2.4 million
|
|||
As
of December 30, 2007
|
35%
|
|
$
|
0.9 million
|
$
|
1.7
million
|
|||
Tracking System and Other |
As
of January 10, 2007 (acquisition date)
|
25%
|
|
$
|
0.2 million
|
$
|
0.6 million
|
|||
As
of December 30, 2007
|
100%
|
|
$
|
0.8
million
|
$
|
—
|
Year Ended
|
|||||||
(In thousands, except per share amounts)
|
December 30,
2007
|
December 31,
2006
|
|||||
Revenue
|
$
|
777,104
|
$
|
442,115
|
|||
Net
income (loss)
|
$
|
7,094
|
$
|
(57,635
|
)
|
||
Basic
net income (loss) per
share
|
$
|
0.09
|
$
|
(0.84
|
)
|
||
Diluted
net income (loss) per
share
|
$
|
0.09
|
$
|
(0.84
|
)
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||
Write-off
of unamortized debt issuance costs
|
$
|
(8,260
|
)
|
$
|
—
|
$
|
—
|
|||||
Amortization
of debt issuance costs
|
(1,710
|
)
|
—
|
—
|
||||||||
Share
in net loss of joint venture, net of tax
|
(278
|
)
|
—
|
—
|
||||||||
Gain
(loss) on derivatives and foreign exchange, net of tax
|
2,086
|
863
|
(1,441
|
)
|
||||||||
Other
income,
net
|
291
|
214
|
227
|
|||||||||
Total
other income (expense), net
|
$
|
(7,871
|
)
|
$
|
1,077
|
$
|
(1,214
|
)
|
As
of
|
|||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||
Stock
options
|
—
|
44
|
6,572
|
Year
Ended
|
|||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||
Basic
weighted-average common shares
|
75,413
|
65,864
|
23,306
|
||||||||
Effect
of dilutive securities:
|
|||||||||||
Stock
options
|
4,203
|
5,147
|
—
|
||||||||
Restricted
stock
|
357
|
76
|
—
|
||||||||
Shares
subject to re-vesting restrictions
|
439
|
—
|
—
|
||||||||
February
2007 debentures
|
620
|
—
|
—
|
||||||||
July
2007 debentures
|
195
|
—
|
—
|
||||||||
Weighted-average
common shares for diluted computation
|
81,227
|
71,087
|
23,306
|
(In thousands)
|
December 30,
2007
|
December 31,
2006
|
|||||
Costs and estimated earnings in excess of billings on contracts in progress and billings in excess of costs and estimated earnings on contracts in progress consists of the following: |
|
||||||
Costs
and estimated earnings in excess of billings on contracts in
progress
|
$
|
39,136
|
$
|
—
|
|||
Billings in
excess of costs and estimated earnings on contracts in
progress
|
69,900
|
—
|
|||||
$
|
(30,764
|
) |
$
|
—
|
|||
Costs
incurred to date on contracts in progress
|
$
|
481,340
|
$
|
—
|
|||
Estimated
earnings to date
|
145,643
|
—
|
|||||
Contract
revenue earned to date
|
626,983
|
—
|
|||||
Less:
Billings to date, including earned incentive rebates, on contracts in
progress
|
(657,747
|
) |
—
|
||||
$
|
(30,764
|
) |
$
|
—
|
|||
Inventories:
|
|||||||
Raw
materials*
|
$
|
89,604
|
$
|
8,703
|
|||
Work-in-process
|
2,027
|
79
|
|||||
Finished
goods
|
48,873
|
13,998
|
|||||
$
|
140,504
|
$
|
22,780
|
||||
* In addition to polysilicon and other raw materials for solar cell manufacturing, raw materials as of December 30, 2007 includes solar panels purchased from third-party vendors and installation materials for systems projects. |
|
||||||
Prepaid
expenses and other current assets:
|
|||||||
Deferred tax
asset, current portion
|
$
|
8,437
|
$
|
1,446
|
|||
Note
receivable from SP Systems
|
—
|
10,000
|
|||||
VAT
receivable, current portion
|
7,266
|
48
|
|||||
Prepaid
materials
|
4,652
|
—
|
|||||
Other
receivables
|
9,946
|
3,556
|
|||||
Other
prepaid expenses
|
2,809
|
1,605
|
|||||
$
|
33,110
|
$
|
16,655
|
||||
Property,
plant and equipment, net:
|
|||||||
Land
and buildings
|
$
|
7,482
|
$
|
7,304
|
|||
Manufacturing
equipment
|
194,963
|
120,104
|
|||||
Computer
equipment
|
12,399
|
2,496
|
|||||
Furniture and
fixtures
|
2,648
|
83
|
|||||
Leasehold
improvements
|
113,801
|
45,175
|
|||||
Construction-in-process
(manufacturing facility in the Philippines)
|
99,945
|
53,252
|
|||||
431,238
|
228,414
|
||||||
Less:
Accumulated depreciation**
|
(53,244
|
)
|
(25,986
|
)
|
|||
$
|
377,994
|
$
|
202,428
|
||||
** Total depreciation expense was $27.3 million, $16.4 million and $7.1 million for the fiscal years ended December 30, 2007, December 31, 2006 and January 1, 2006, respectively. |
|
||||||
Intangible
assets:
|
|||||||
Patents
and purchased technology
|
$
|
51,398
|
$
|
21,950
|
|||
Tradenames
|
1,603
|
1,603
|
|||||
Backlog
|
11,787
|
—
|
|||||
Customer
relationships and other
|
23,193
|
463
|
|||||
87,981
|
24,016
|
||||||
Accumulated
amortization of intangible assets:
|
|||||||
Patents
and purchased technology
|
(20,630
|
)
|
(8,973
|
)
|
|||
Tradenames
|
(808
|
)
|
(548
|
)
|
|||
Backlog
|
(11,460
|
)
|
—
|
||||
Customer
relationships and other
|
(4,137
|
)
|
(446
|
)
|
|||
(37,035
|
)
|
(9,967
|
)
|
||||
$
|
50,946
|
$
|
14,049
|
(In thousands)
|
December 30,
2007
|
December 31,
2006
|
|||||
The estimated future amortization expense related to intangible assets as of December 30, 2007 is as follows: |
|
||||||
2008
|
$
|
15,076
|
|||||
2009
|
14,740
|
||||||
2010
|
13,228
|
||||||
2011
|
4,008
|
||||||
2012
and beyond
|
3,894
|
||||||
$
|
50,946
|
||||||
Other
long-term assets:
|
|||||||
VAT
receivable, net of current portion
|
$
|
24,269
|
$
|
—
|
|||
Investment
in joint venture
|
5,304
|
4,994
|
|||||
Other
|
2,401
|
1,639
|
|||||
$
|
31,974
|
$
|
6,633
|
||||
Accrued
liabilities:
|
|||||||
VAT
payable
|
$
|
18,138
|
$
|
575
|
|||
Employee
compensation and employee benefits
|
15,338
|
3,961
|
|||||
Income
taxes payable
|
11,106
|
1,995
|
|||||
Warranty
|
10,502
|
3,446
|
|||||
Foreign
exchange derivative liability
|
8,920
|
4,849
|
|||||
Other
|
15,430
|
3,759
|
|||||
$
|
79,434
|
$
|
18,585
|
December 30, 2007
|
December 31, 2006
|
|||||||||||||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||||||||||||
(In thousands)
|
Cost
|
Gross
Gains
|
Gross
Losses
|
Fair
Value
|
Cost
|
Gross
Gains
|
Gross
Losses
|
Fair
Value
|
||||||||||||||||||
Money
market securities
|
$
|
281,458
|
$
|
—
|
$
|
—
|
$
|
281,458
|
$
|
135,298
|
$
|
—
|
$
|
—
|
$
|
135,298
|
||||||||||
Corporate
securities
|
92,395
|
6
|
(50
|
)
|
92,351
|
13,400
|
—
|
—
|
13,400
|
|||||||||||||||||
Commercial
paper
|
78,163
|
2
|
(2
|
)
|
78,163
|
28,739
|
—
|
(4
|
)
|
28,735
|
||||||||||||||||
Total
available-for-sale securities
|
$
|
452,016
|
$
|
8
|
$
|
(52
|
)
|
$
|
451,972
|
$
|
177,437
|
$
|
—
|
$
|
(4
|
)
|
$
|
177,433
|
Less
than 12 Months
|
12
Months or Greater
|
Total
|
||||||||||||||||||||||
(In thousands)
|
Fair
Value
|
Gross
Unrealized Losses
|
Fair
Value
|
Gross
Unrealized Losses
|
Fair
Value
|
Gross
Unrealized Losses
|
||||||||||||||||||
Corporate
securities
|
$
|
25,536
|
$
|
(50
|
)
|
$
|
—
|
$
|
—
|
$
|
25,536
|
$
|
(50
|
)
|
||||||||||
Commercial
paper
|
24,002
|
(2
|
)
|
—
|
—
|
24,002
|
(2
|
)
|
||||||||||||||||
$
|
49,538
|
$
|
(52
|
)
|
$
|
—
|
$
|
—
|
$
|
49,538
|
$
|
(52
|
)
|
(In thousands)
|
December 30,
2007
|
December 31,
2006
|
|||||
Included
in:
|
|||||||
Cash
and cash equivalents
|
$
|
249,582
|
$
|
160,937
|
|||
Short-term
investments
|
105,453
|
16,496
|
|||||
Restricted
cash
|
67,887
|
—
|
|||||
Long-term
investments
|
29,050 | ||||||
$
|
451,972
|
$
|
177,433
|
||||
Contractual
maturities:
|
|||||||
Due
in less than one year
|
$
|
396,228
|
$
|
164,033
|
|||
Due
from one to two years
|
4,994
|
—
|
|||||
Due
from two to 30 years
|
50,750
|
13,400
|
|||||
$
|
451,972
|
$
|
177,433
|
2008
|
$
58,433
|
|||
2009
|
48,840
|
|||
2010
|
11,100
|
|||
$
|
118,373
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||
Geographic
distribution of income (loss) before income taxes:
|
||||||||||||
U.S.
income (loss)
|
$
|
(93,881
|
)
|
$
|
3,419
|
$
|
(14,675
|
)
|
||||
Non-U.S.
income (loss)
|
97,163
|
25,042
|
(1,118
|
)
|
||||||||
Income
(loss) before income taxes
|
$
|
3,282
|
$
|
28,461
|
$
|
(15,793
|
)
|
|||||
Provision
for (benefit from) income taxes:
|
||||||||||||
Current
tax (benefit) expense
|
||||||||||||
Federal
|
$
|
(67
|
)
|
$
|
241
|
$
|
—
|
|||||
State
|
647
|
100
|
—
|
|||||||||
Foreign
|
12,319
|
1,604
|
50
|
|||||||||
Total
current tax expense
|
|
12,899
|
|
1,945
|
|
50
|
||||||
Deferred
tax benefit
|
||||||||||||
Federal
|
|
(14,499
|
)
|
|
—
|
|
—
|
|||||
State
|
(4,320
|
)
|
—
|
—
|
||||||||
Foreign
|
—
|
—
|
—
|
|||||||||
Total
deferred tax benefit
|
|
(18,819
|
)
|
|
—
|
|
—
|
|||||
Provision
for (benefit from) income taxes
|
$
|
(5,920
|
)
|
$
|
1,945
|
$
|
50
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||
Statutory
rate
|
35
|
%
|
35
|
%
|
35
|
%
|
||||||
Tax
at U.S. statutory rate
|
$
|
1,149
|
$
|
9,961
|
$
|
(5,528
|
)
|
|||||
Foreign
rate differential
|
(20,731
|
)
|
(7,162
|
)
|
459
|
|||||||
State
income taxes, net of benefit
|
647
|
65
|
—
|
|||||||||
Recognition
of prior year benefits
|
—
|
(1,205
|
)
|
—
|
||||||||
Purchased
in-process research and development
|
3,351
|
—
|
—
|
|||||||||
Impairment
of acquisition-related intangibles
|
4,924
|
—
|
—
|
|||||||||
Alternative
minimum tax
|
67
|
—
|
—
|
|||||||||
Benefit
of net operating losses not recognized
|
1,329
|
—
|
4,617
|
|||||||||
Non-deductible
stock option compensation expense
|
3,227
|
241
|
502
|
|||||||||
Other,
net
|
117
|
45
|
—
|
|||||||||
Total
|
$
|
(5,920
|
)
|
$
|
1,945
|
$
|
50
|
(In
thousands)
|
December 30,
2007
|
December 31,
2006
|
||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryforwards
|
$
|
709
|
$
|
9,130
|
||||
Research
and development credit and California manufacturing
credit carryforwards
|
1,491
|
1,797
|
||||||
Reserves
and accruals
|
30,043
|
3,204
|
||||||
Capitalized
research and development expenses
|
43
|
1,023
|
||||||
Total
deferred tax asset
|
32,286
|
15,154
|
||||||
Valuation
allowance
|
(13,924
|
)
|
(9,836
|
)
|
||||
Total
deferred tax asset, net of valuation allowance
|
18,362
|
5,318
|
||||||
Deferred
tax liabilities:
|
||||||||
Intangible
assets
|
(16,138
|
)
|
(5,318
|
)
|
||||
Other
|
—
|
1,400
|
||||||
Total
deferred tax liabilities
|
(16,138
|
)
|
(3,918
|
)
|
||||
Net
deferred tax asset
|
$
|
2,224
|
$
|
1,400
|
(In
thousands)
|
December 30,
2007
|
|||
Balance
at January 1, 2007 (after adoption of FIN 48)
|
$
|
1,120
|
||
Additions
based on tax positions related to the current year
|
2,726
|
|||
Additions
for tax positions of prior years
|
326
|
|||
Reductions
for tax positions of prior years
|
—
|
|||
Settlements
and effective settlements with tax authorities and related
remeasurements
|
—
|
|||
Balance
at December 30, 2007
|
$
|
4,172
|
|
•
|
commencement,
continuation or completion of examinations of the Company’s tax returns by
the U.S. or foreign taxing authorities;
and
|
|
•
|
expiration
of statute of limitations on the Company’s tax
returns.
|
Tax Jurisdictions
|
Tax Years
|
||
United
States
|
2004
and onward
|
||
California
|
2003
and onward
|
2008
|
$
|
4,844
|
|
2009
|
4,995
|
||
2010
|
5,413
|
||
2011
|
4,258
|
||
2012
|
3,832
|
||
Thereafter
|
23,685
|
||
$
|
47,027
|
2008
|
$
|
424,017
|
|
2009
|
381,440
|
||
2010
|
364,324
|
||
2011
|
371,634
|
||
2012
|
146,469
|
||
Thereafter
|
573,362
|
||
$
|
2,261,246
|
(In
thousands)
|
December 30,
2007
|
December 31,
2006
|
January 1,
2006
|
|||||||||
Balance
at the beginning of the period
|
$
|
3,446
|
$
|
574
|
$
|
180
|
||||||
SP
Systems accrued balance at date of acquisition
|
6,542
|
—
|
—
|
|||||||||
Accruals
for warranties issued during the period
|
10,771
|
3,226
|
411
|
|||||||||
Settlements
made during the period
|
(3,565
|
)
|
(354
|
)
|
(17
|
)
|
||||||
Balance
at the end of the period
|
$
|
17,194
|
$
|
3,446
|
$
|
574
|
2008
|
$
|
10,671
|
||
2009
|
10,962
|
|||
2010
|
18,389
|
|||
2011
|
8,000
|
|||
2012
|
8,000
|
|||
Thereafter
|
16,000
|
|||
Total
|
$
|
72,022
|
(In
thousands)
|
December 30,
2007
|
December 31,
2006
|
||||||
Stock
option plans
|
3,982
|
5,127
|
(In
thousands, except share data)
|
December 30,
2007
|
December 31,
2006
|
||||||
Class A
common stock, $0.001 par value; 217,500,000 shares authorized and
40,176,957* and 17,816,082** shares issued and outstanding at December 30,
2007 and December 31, 2006, respectively
|
$
|
40
|
$
|
18
|
||||
Class
B common stock, $0.001 par value; 157,500,000 shares authorized and
44,533,287 and 52,033,287 shares issued and outstanding as of December 30,
2007 and December 31, 2006, respectively
|
45
|
52
|
||||||
Total
common stock
|
$
|
85
|
$
|
70
|
*
|
Includes
approximately 0.7 million shares of restricted stock and a total of
4.7 million shares of class A common stock lent to LBIE and
CSI.
|
**
|
Includes
approximately 0.2 million shares of restricted stock.
|
Year Ended
|
||||||||
(In
thousands)
|
December 30,
2007
|
December 31,
2006
|
||||||
Employee
stock options
|
$
|
17,819
|
$
|
3,930
|
||||
Non-employee
stock options
|
—
|
304
|
||||||
Restricted
stock
|
13,121
|
677
|
||||||
Shares
released from re-vesting restrictions
|
20,638
|
—
|
||||||
Change
in stock-based compensation capitalized in inventory
|
(366
|
)
|
(47
|
)
|
||||
Total
stock-based compensation expense
|
$
|
51,212
|
$
|
4,864
|
Year Ended
|
||||||||
(In
thousands)
|
December 30,
2007
|
December 31,
2006
|
||||||
Cost
of systems revenue
|
$
|
8,187
|
$
|
—
|
||||
Cost
of components revenue
|
4,213
|
846
|
||||||
Research
and development
|
1,817
|
1,197
|
||||||
Sales,
general and administrative
|
36,995
|
2,821
|
||||||
Total
stock-based compensation expense before income taxes
|
51,212
|
4,864
|
||||||
Tax
effect on stock-based compensation expense
|
—
|
—
|
||||||
Total
stock-based compensation expense after income taxes
|
$
|
51,212
|
$
|
4,864
|
(In
thousands, except years)
|
As
of
December 30,
2007
|
Weighted-Average
Amortization Period
(in
years)
|
||||||
Stock
options
|
$
|
23,922
|
1.3
|
|||||
Restricted
stock
|
71,789
|
3.4
|
||||||
Shares
subject to re-vesting restrictions
|
21,338
|
1.0
|
||||||
Total
unrecognized stock-based compensation cost
|
$
|
117,049
|
2.3
|
(In
thousands, except per share data)
|
Year Ended
January 1,
2006
|
|||
Net
loss—as reported
|
$
|
(15,843
|
)
|
|
Deduct:
Total stock-based employee compensation expense determined under fair
value based method for all awards, net of related tax
effects
|
(4,704
|
)
|
||
Non-deductible
stock option compensation expense
|
$
|
(20,547
|
)
|
|
Net
loss per share:
|
||||
Basic
and diluted—as reported
|
$
|
(0.68
|
)
|
|
Basic
and diluted—pro forma
|
$
|
(0.88
|
)
|
Year Ended
|
||||||||||||
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||||
Expected
term
|
6.5 years
|
6.5 years
|
4.0 years
|
|||||||||
Risk-free
interest rate
|
4.58
- 4.68%
|
|
4.80
- 5.11%
|
|
3.63
- 4.36%
|
|
||||||
Volatility
|
90%
|
|
92%
|
|
92%
|
|
||||||
Dividend
yield
|
0%
|
|
0%
|
|
0%
|
|
Shares
(in thousands)
|
Weighted-
Average
Exercise
Price Per Share
|
||||||
Options
outstanding as of January 2, 2005
|
4,285
|
$
|
2.30
|
||||
Granted
|
2,581
|
4.98
|
|||||
Exercised
|
(217
|
)
|
0.82
|
||||
Forfeited
|
(77
|
)
|
1.91
|
||||
Outstanding
as of January 1, 2006
|
6,572
|
3.41
|
|||||
Granted
|
44
|
39.05
|
|||||
Exercised
|
(1,529
|
)
|
2.54
|
||||
Forfeited
|
(107
|
)
|
4.14
|
||||
Outstanding
as of December 31, 2006
|
4,980
|
3.97
|
|||||
Options
exchanged/assumed in connection with SP Systems
acquisition
|
1,602
|
5.54
|
|||||
Granted
|
18
|
56.20
|
|||||
Exercised
|
(2,817
|
)
|
3.01
|
||||
Forfeited
|
(82
|
)
|
13.36
|
||||
Outstanding
as of December 30, 2007
|
3,701
|
5.44
|
|||||
Exercisable
as of December 30, 2007
|
1,247
|
3.76
|
Stock
Options
|
Restricted
Stock Awards and Units
|
||||||||||
Shares
(in thousands)
|
Weighted-
Average
Exercise Price
Per Share
|
Shares
(in thousands)
|
Weighted-
Average
Grant Date Fair
Value Per Share
|
||||||||
Outstanding
as of January 1, 2006
|
4,789
|
$
|
3.82
|
15
|
$
|
30.04
|
|||||
Granted
|
44
|
39.05
|
230
|
35.43
|
|||||||
Forfeited
|
(1,692
|
)
|
3.56
|
(16
|
)
|
30.92
|
|||||
Outstanding
as of December 31, 2006
|
3,141
|
4.45
|
229
|
35.40
|
|||||||
Granted
|
1,620
|
6.10
|
1,141
|
71.64
|
|||||||
Vested
|
(2,225
|
)
|
3.28
|
(105
|
)
|
43.18
|
|||||
Forfeited
|
(82
|
)
|
12.94
|
(91
|
)
|
51.00
|
|||||
Outstanding
as of December 30, 2007
|
2,454
|
6.29
|
1,174
|
68.74
|
Options
Outstanding
|
Options Exercisable | |||||||||||||||||||||
Range of Exercise Price
|
Shares
(in
thousands)
|
Weighted-
Average
Remaining
Contractual
Life
(in years)
|
Weighted-
Average
Exercise
Price per
Share
|
Aggregate
Intrinsic
Value
(in
thousands)
|
Shares
(in
thousands)
|
Weighted-
Average
Remaining
Contractual
Life
(in years)
|
Weighted-
Average
Exercise
Price per
Share
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||||||||||
$
|
0.04—
|
0.75
|
649
|
4.06
|
$
|
0.30
|
$
|
84,845
|
256
|
4.95
|
$
|
0.50
|
$
|
33,445
|
||||||||
0.88—
|
2.66
|
247
|
6.93
|
2.08
|
31,905
|
58
|
6.71
|
2.00
|
7,478
|
|||||||||||||
3.30—
|
4.95
|
2,093
|
6.85
|
3.32
|
267,301
|
821
|
6.86
|
3.31
|
104,859
|
|||||||||||||
7.00—
|
16.20
|
359
|
7.66
|
8.43
|
43,980
|
79
|
7.67
|
8.59
|
9,710
|
|||||||||||||
17.00—
|
56.20
|
353
|
8.55
|
26.71
|
36,905
|
33
|
8.45
|
31.79
|
3,256
|
|||||||||||||
3,701
|
6.56
|
5.44
|
$
|
464,936
|
1,247
|
6.53
|
3.76
|
$
|
158,748
|
Year
Ended
|
|||||||
December 30,
2007
|
December 31,
2006
|
January
1,
2006
|
|||||
Revenue
by geography:
|
|||||||
United
States
|
45
|
%
|
32
|
%
|
30
|
%
|
|
Europe:
|
|||||||
Spain
|
29
|
%
|
—
|
%
|
—
|
%
|
|
Germany
|
10
|
%
|
49
|
%
|
61
|
%
|
|
Other
|
11
|
%
|
9
|
%
|
6
|
%
|
|
Rest
of world
|
5
|
%
|
10
|
%
|
3
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
||
Revenue
by segment:
|
|||||||
Systems
|
60
|
%
|
—
|
%
|
—
|
%
|
|
Components
|
40
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
||
Gross
margin by segment:
|
|||||||
Systems
|
17
|
%
|
—
|
%
|
—
|
%
|
|
Components
|
23
|
%
|
21
|
%
|
6
|
%
|
Year Ended
|
||||||||||||||
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
||||||||||||
|
Business
Segment
|
|||||||||||||
SolarPack
|
Systems
|
18%
|
|
—%
|
|
—%
|
|
|||||||
MMA
Renewable Ventures
|
Systems
|
16%
|
|
—%
|
|
—%
|
|
|||||||
Conergy
AG
|
Components
|
*
|
25%
|
|
45%
|
|
||||||||
Solon
AG
|
Components
|
*
|
24%
|
|
16%
|
|
||||||||
SP
Systems**
|
Components
|
n.a.
|
16%
|
|
*
|
|||||||||
General
Electric Company***
|
Components
|
*
|
*
|
10%
|
|
*
|
denotes
less than 10% during the period
|
**
|
acquired
by us on January 10, 2007
|
***
|
includes
its subcontracting partner, Plexus
Corporation
|
(In thousands)
|
December 30,
2007
|
December 31,
2006
|
|||||
Property,
plant and equipment by geography:
|
|||||||
United
States
|
$
|
18,026
|
$
|
8,051
|
|||
Philippines
|
359,968
|
192,335
|
|||||
China
|
—
|
2,042
|
|||||
$
|
377,994
|
$
|
202,428
|
Three
Months Ended
|
Six
Months Ended
|
Nine
Months Ended
|
||||||||||
(In
thousands)
|
April
2, 2006
|
July
2, 2006
|
October
1, 2006
|
|||||||||
Cash
flows from operations as reported
|
$
|
(6,630
|
)
|
$
|
(2,033
|
)
|
$
|
4,615
|
||||
Cash
flows from operations as corrected
|
(10,564
|
)
|
(4,014
|
)
|
3,166
|
|||||||
Cash
flows from investing activities as reported
|
(20,254
|
)
|
(63,284
|
)
|
(94,424
|
)
|
||||||
Cash
flows from investing activities as corrected
|
(16,320
|
)
|
(61,303
|
)
|
(92,975
|
)
|
||||||
April
1, 2007
|
July
1, 2007
|
September
30, 2007
|
||||||||||
Cash
flows from operations as reported
|
$
|
(9,766
|
)
|
$
|
(4,644
|
)
|
$
|
(18,557
|
)
|
|||
Cash
flows from operations as corrected
|
(5,059
|
)
|
(903
|
)
|
(26,447
|
)
|
||||||
Cash
flows from investing activities as reported
|
(138,774
|
)
|
(206,837
|
)
|
(327,691
|
)
|
||||||
Cash
flows from investing activities as corrected
|
(143,481
|
)
|
(210,578
|
)
|
(319,801
|
)
|
Three
Months Ended
|
|||||||||||||||
(In
thousands, except per share data)
|
December 30
(a)
|
September 30
|
July 1
(b)
|
April 1
(c)
|
|||||||||||
Fiscal
2007:
|
|||||||||||||||
Revenue
|
$
|
224,343
|
$
|
234,334
|
$
|
173,766
|
$
|
142,347
|
|||||||
Gross
margin
|
47,182
|
38,405
|
29,792
|
32,425
|
|||||||||||
Net
income (loss)
|
4,876
|
8,431
|
(5,345
|
)
|
1,240
|
||||||||||
Net
income (loss) per share, basic
|
0.06
|
0.11
|
(0.07
|
)
|
0.02
|
||||||||||
Net
income (loss) per share, diluted
|
0.06
|
0.10
|
(0.07
|
)
|
0.02
|
||||||||||
December 31
|
October
1
|
July
2
|
April 2
|
||||||||||||
Fiscal
2006:
|
|||||||||||||||
Revenue
|
$
|
74,509
|
$
|
65,348
|
$
|
54,695
|
$
|
41,958
|
|||||||
Gross
margin
|
18,145
|
15,184
|
11,447
|
5,692
|
|||||||||||
Net
income
|
11,309
|
9,568
|
5,384
|
255
|
|||||||||||
Net
income per share, basic
|
0.16
|
0.14
|
0.08
|
0.00
|
|||||||||||
Net
income per share, diluted
|
0.15
|
0.13
|
0.08
|
0.00
|
(a)
|
Included
a charge of $8.3 million for the write-off of unamortized debt issuance
costs as a result of the market price conversion trigger on our senior
convertible debentures being met.
|
(b)
|
Included
a charge of $14.1 million for the impairment of acquisition-related
intangibles.
|
(c)
|
Included
a charge of $9.6 million for purchased in-process research and
development.
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
77
|
Consolidated
Balance Sheets
|
78
|
Consolidated
Statements of Operations
|
79
|
Consolidated
Statements of Stockholders’ Equity
|
80
|
Consolidated
Statements of Comprehensive Income (Loss)
|
81
|
Consolidated
Statements of Cash Flows
|
82
|
Notes
to Consolidated Financial Statements
|
83
|
Page
|
|
Schedule II –
Valuation and Qualifying Accounts
|
131
|
Exhibit
Number
|
Description
|
|
2.1
|
Agreement
and Plan of Merger, dated November 15, 2006, by and among SunPower
Corporation, Pluto Acquisition Company LLC, PowerLight Corporation and
Thomas L. Dinwoodie (incorporated by reference to Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K/A filed with the Securities and
Exchange Commission on November 22, 2006).
|
|
2.2
|
First
Amendment to Agreement and Plan of Merger, dated December 21, 2006, by and
between SunPower Corporation and PowerLight Corporation (incorporated by
reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 22,
2006).
|
|
3.1
|
Form
of Restated Certificate of Incorporation of SunPower Corporation
(incorporated by reference to Exhibit 3.(i)2 to the Registrant’s
Registration Statement on Form S-1/A filed with the Securities and
Exchange Commission on November 11, 2005).
|
|
3.2
|
Form
of By-laws of SunPower Corporation (incorporated by reference to Exhibit
3.(ii)2 to the Registrant’s Registration Statement on Form S-1/A filed
with the Securities and Exchange Commission on October 11,
2005).
|
|
4.1
|
Specimen
Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1
to the Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on November 14,
2005).
|
|
4.2
|
Indenture,
dated February 7, 2007, by and between SunPower Corporation and Wells
Fargo Bank, National Association (incorporated by reference to Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on February 8,
2007).
|
4.3
|
First
Supplemental Indenture, dated February 7, 2007, by and between SunPower
Corporation and Wells Fargo Bank, National Association (incorporated by
reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on February 8,
2007).
|
|
4.4
|
Form
of Second Supplemental Indenture, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 4.1 of Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on July 26, 2007).
|
|
4.5
|
Form
of Registration Rights Agreement (incorporated by reference to Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on December 22,
2006).
|
|
10.1
|
Share
Lending Agreement, dated July 25, 2007, by and among SunPower Corporation,
Credit Suisse International and Credit Suisse Securities (USA) LLC
(incorporated by reference to Exhibit 10.1 of Registrant’s Current Report
on Form 8-K filed with the Securities and Exchange Commission on July 26,
2007).
|
|
10.2
|
Amended
and Restated Share Lending Agreement, dated July 25, 2007, by and among
SunPower Corporation, Lehman Brothers International (Europe) Limited and
Lehman Brothers Inc. (incorporated by reference to Exhibit 10.2 of
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on July 26, 2007).
|
|
10.3
|
SunPower
Corporation 1996 Stock Plan and form of agreements thereunder
(incorporated by reference to Exhibit 10.3 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.4
|
SunPower
Corporation 2005 Stock Unit Plan (incorporated by reference to Exhibit
10.28 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on October 31,
2005).
|
|
10.5
|
Amended
and Restated SunPower Corporation 2005 Stock Incentive Plan and form of
agreements thereunder (incorporated by reference to Exhibit 4.3 to the
Registrant’s Registration Statement on Form S-8 filed with the Securities
and Exchange Commission on May 7, 2007).
|
|
10.6
|
PowerLight
Corporation Common Stock Option and Common Stock Purchase Plan
(incorporated by reference to Exhibit 4.3 to the Registrant’s Registration
Statement on Form S-8 filed with the Securities and Exchange Commission on
January 25, 2007).
|
|
10.7
|
Form
of PowerLight Corporation Incentive/Non-Qualified Stock Option, Market
Standoff and Stock Restriction Agreement (Employees) (incorporated by
reference to Exhibit 4.4 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.8
|
Form
of PowerLight Corporation Non-Qualified Stock Option, Market Standoff and
Stock Restriction Agreement (Directors and Consultants) (incorporated by
reference to Exhibit 4.5 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.9
|
Form
of Non-Qualified Stock Option Agreement, by and between PowerLight
Corporation and Gary Wayne (incorporated by reference to Exhibit 4.7 to
the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on January 25,
2007).
|
|
10.10
|
Form
of Non-Qualified Stock Option Agreement, by and between PowerLight
Corporation and Dan Shugar (incorporated by reference to Exhibit 4.9 to
the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on January 25,
2007).
|
|
10.11
|
Form
of Equity Restriction Agreement, by and between SunPower Corporation and
each of Messrs. Dinwoodie, Wenger, Ledesma and Shugar (incorporated
by reference to Exhibit 10.4 to the Registrant’s Current Report on Form
8-K filed with the Securities and Exchange Commission on January 17,
2007).
|
10.12
|
Form
of Indemnification Agreement, by and between SunPower Corporation and its
officers and directors (incorporated by reference to Exhibit 10.1 to the
Registrant’s Registration Statement on Form S-1 filed with the Securities
and Exchange Commission on August 25, 2005).
|
|
10.13
|
Offer
Letter, dated May 22, 2003, by and between SunPower Corporation and Thomas
Werner (incorporated by reference to Exhibit 10.8 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.14
|
Offer
Letter, dated January 14, 2005, by and between SunPower Corporation and PM
Pai (incorporated by reference to Exhibit 10.9 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.15
|
Offer
Letter, dated April 1, 2005, by and between SunPower Corporation and
Emmanuel Hernandez (incorporated by reference to Exhibit 10.10 to the
Registrant’s Registration Statement on Form S-1 filed with the Securities
and Exchange Commission on August 25, 2005).
|
|
10.16
|
SunPower
Corporation 2006 Key Employee Bonus Plan (KEBP) (incorporated by reference
to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 24,
2006).
|
|
10.17
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007,
by and between Thomas L. Dinwoodie and PowerLight Corporation
(incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
January 17, 2007).
|
|
10.18
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007, by
and between Howard J. Wenger and PowerLight Corporation (incorporated by
reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 17,
2007).
|
|
10.19
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007, by
and between Bruce R. Ledesma and PowerLight Corporation (incorporated by
reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 17,
2007).
|
|
10.20
|
Amended and Restated Employment Agreement, effective as of January 11, 2007, by and between Dan S. Shugar and PowerLight Corporation. | |
10.21
|
Industrial
Lease, dated May 12, 1999, between Temescal, L.P., Contra Costa Industrial
Park, Ltd. and PowerLight Corporation (as amended on November 6, 2000 and
January 22, 2004) (incorporated by reference to Exhibit 10.3 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on May 11, 2007).
|
|
10.22
|
Standard
Industrial / Commercial Multi-Tenant Lease, dated December 15, 2006, by
and between PowerLight Corporation and FPOC, LLC (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 11,
2007).
|
|
10.23
|
First
Amendment to Lease, dated May 24, 2007, by and between PowerLight
Corporation and FPOC, LLC (incorporated by reference to Exhibit 10.1 to
the Registrant’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 7, 2007).
|
|
10.24
|
Second
Amendment to Lease, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC.
|
|
10.25
|
PV
Risk Reduction Agreement, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC.
|
|
10.26†
|
Credit
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
10.27
|
First
Amendment to Credit Agreement, dated August 20, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.9 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.28
|
Second
Amendment to Credit Agreement, dated August 31, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.29†
|
Security
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.30
|
Continuing
Guaranty, dated July 13, 2007, by and between SunPower North America,
Inc., SunPower Corporation, Systems and Wells Fargo Bank, National
Association (incorporated by reference to Exhibit 10.3 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 9, 2007).
|
|
10.31†
|
Original
Equipment Manufacturer Production of Photovoltaic Modules Agreement, dated
December 6, 2006, by and between PowerLight Corporation and aleo solar AG
(as amended on March 21, 2007) (incorporated by reference to Exhibit 10.10
to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 11, 2007).
|
|
10.32†
|
Supply
Agreement, dated June 30, 2006, by and between SunPower Philippines
Manufacturing, Ltd. and DC Chemical Co., Ltd. (incorporated by reference
to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on August 16,
2006).
|
|
10.33†
|
Photovoltaic
Module Master Supply Agreement, dated November 3, 2005, by and among
PowerLight Corporation, PowerLight Systems AG and Evergreen Solar, Inc.
(incorporated by reference to Exhibit 10.8 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
May 11, 2007).
|
|
10.34†
|
Amendment
One to Photovoltaic Module Master Supply Agreement, dated June 29, 2006,
by and among PowerLight Corporation, PowerLight Systems AG and Evergreen
Solar, Inc. (incorporated by reference to Exhibit 10.9 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on May 11, 2007).
|
|
10.35†
|
Wafering
Supply and Sales Agreement, dated October 1, 2007, by and between SunPower
Philippines Manufacturing Ltd. and First Philec Solar Corp. (incorporated
by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 9,
2007).
|
|
10.36†
|
Long-Term
Supply Agreement II, dated July 16, 2007, by and between SunPower
Corporation and Hemlock Semiconductor Corporation (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.37†
|
Ingot/Wafer
Agreement, dated December 3, 2007, by and between SunPower Corporation and
Jiawei SolarChina Co., LTD.
|
|
10.38†
|
Terms
and Conditions, dated January 1, 2006, by and between SunPower Philippines
Manufacturing Ltd. and M.Setek Company Ltd. (incorporated by reference to
Exhibit 10.35 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on May 16,
2006).
|
|
10.39†
|
Long-Term
Ingot and Wafer Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.7 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
10.40†
|
Master
Supply Contract for Solar Cells, dated May 18, 2006, by and between
PowerLight Corporation and Q-Cells Aktiengesellschaft (incorporated by
reference to Exhibit 10.11 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 11,
2007).
|
|
10.41†
|
Supply
Agreement, dated August 21, 2005, by and between SunPower Corporation and
Wacker-Chemie GmbH (incorporated by reference to Exhibit 10.22 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on October 11,
2005).
|
|
10.42†
|
Supply
Agreement, dated August 3, 2006, by and between SunPower Corporation and
Wacker Chemie AG (incorporated by reference to Exhibit 10.1 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on November 13, 2006).
|
|
10.43†
|
Ingot
Supply Agreement, dated December 22, 2006, by and between SunPower
Corporation and Woongjin Energy Co., Ltd. (incorporated by reference to
Exhibit 10.62 to the Registrant’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 2,
2007).
|
|
10.44†
|
Engineering,
Procurement and Construction Agreement, dated as of March 26, 2007, by and
among PowerLight Systems S.A., Agrupacion Solar Llerena-Badajoz 1, A.I.E.
and Solarpack Corporacion Tecnologica, S.L. (incorporated by reference to
Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on May 11,
2007).
|
|
10.45†
|
Supply
Agreement, dated April 17, 2004, by and between SunPower Corporation and
Conergy AG, and Appendixes thereto (incorporated by reference to Exhibit
10.24 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on November 14,
2005).
|
|
10.46†
|
Amendment
to Supply Agreement, dated December 22, 2005, by and between SunPower
Corporation and Conergy AG (incorporated by reference to Exhibit 10.31 to
the Registrant’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 24, 2006).
|
|
10.47†
|
Amendment
to Supply Agreement, dated June 21, 2007, by and between SunPower
Corporation and Conergy AG (incorporated by reference to Exhibit 10.2 to
the Registrant’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 7, 2007).
|
|
10.48†
|
Long-Term
Polysilicon Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.8 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
|
10.49†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated December
28, 2007, by and between SunPower Energy Systems Spain, S.L. and Solargen
Proyectos e Instalaciones Solares, S.L.
|
|
10.50†
|
Amended
and Restated Supply Agreement, dated November 10, 2005, by and among
SunPower Corporation, SunPower Technology Limited and Solon AG fur
Solartechnik (incorporated by reference to Exhibit 10.23 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on November 14,
2005).
|
|
10.51†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated October
10, 2007, by and between SunPower Energy System Spain S.L. and Sedwick
Corporate, S.L.
|
|
10.52†
|
Polysilicon
Supply Agreement, dated December 22, 2006, by and between SunPower
Corporation Manufacturing, Ltd. and Woongjin Energy Co., Ltd.
(incorporated by reference to Exhibit 10.61 to the Registrant’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
March 2, 2007).
|
|
10.53†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Almuradiel
Solar, S.L.
|
10.54†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Moralas
Renovables, S.L.
|
|
10.55†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Naturener
Solar Tinajeros, S.L.
|
|
10.56
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 21, 2007, by and among SunPower Energy Systems Spain, S.L.,
Almuradiel Solar, S.L., Moralas Renovables, S.L. and Naturener Solar
Tinajeros, S.L.
|
|
10.57†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Almuradiel Solar, S.L.
|
|
10.58†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Moralas Renovables, S.L.
|
|
10.59†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Naturener Solar Tinajeros, S.L.
|
|
10.60
|
Master
Separation Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.12 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.61
|
Indemnification
and Insurance Matters Agreement, dated October 6, 2005, by and between
SunPower Corporation and Cypress Semiconductor Corporation (incorporated
by reference to Exhibit 10.13 to the Registrant’s Registration Statement
on Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.62
|
Investor
Rights Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.14 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.63
|
Employee
Matters Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.15 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.64
|
Tax
Sharing Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.16 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on
October 11, 2005).
|
|
10.65
|
Master
Transition Services Agreement, dated October 6, 2005, by and between
SunPower Corporation and Cypress Semiconductor Corporation (incorporated
by reference to Exhibit 10.17 to the Registrant’s Registration Statement
on Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.66
|
Wafer
Manufacturing Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.18 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.67
|
Contract
of Lease, dated October 6, 2005, by and between SunPower Philippines
Manufacturing Ltd. – Philippines Branch and Cypress Semiconductor
Corporation (incorporated by reference to Exhibit 10.19 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on October 11,
2005).
|
10.68
|
Services
Agreement, dated January 1, 2005, by and between Cypress
Semiconductor Philippines Headquarters Ltd. Regional Operating
Headquarters and SunPower Philippines Manufacturing Ltd. (incorporated by
reference to Exhibit 10.26 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on
October 31, 2005).
|
|
10.69
|
Asset
Lease, dated October 28, 2005, by and between SunPower Corporation and
Cypress Semiconductor Corporation (incorporated by reference to Exhibit
10.27 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on October 31,
2005).
|
|
10.70
|
Office
Lease Agreement, dated May 15, 2006 between SunPower Corporation and
Cypress Semiconductor Corporation (incorporated by reference to Exhibit
10.36 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 16, 2006).
|
|
21.1
|
List
of Subsidiaries.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
24.1
|
Power
of Attorney (set forth on the signature page of this
Report).
|
|
31.1
|
Certification
by Chief Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
31.2
|
Certification
by Chief Financial Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
32.1
|
Certification
Furnished Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002.
|
(In
thousands)
|
Balance at
Beginning of
Period
|
Charges
(Releases)
to
Expenses/Revenues
|
Deductions
|
Balance at End
of
Period
|
||||||||||||
Allowance
for doubtful accounts:
|
||||||||||||||||
Year ended
December 30, 2007
|
$
|
557
|
$
|
816
|
$
|
—
|
$
|
1,373
|
||||||||
Year ended December 31,
2006
|
317
|
272
|
(32
|
)
|
557
|
|||||||||||
Year ended January 1,
2006
|
59
|
258
|
—
|
317
|
||||||||||||
Allowance
for sales returns:
|
||||||||||||||||
Year ended
December 30, 2007
|
$
|
445
|
$
|
2,172
|
$
|
(2,249
|
)
|
$
|
368
|
|||||||
Year ended December 31,
2006
|
110
|
808
|
(473
|
)
|
445
|
|||||||||||
Year ended January 1,
2006
|
—
|
101
|
—
|
110
|
||||||||||||
Valuation
allowance for deferred tax asset:
|
||||||||||||||||
Year ended
December 30, 2007
|
$
|
9,836
|
$
|
4,088
|
$
|
—
|
$
|
13,924
|
||||||||
Year ended December 31,
2006
|
9,278
|
558
|
—
|
9,836
|
||||||||||||
Year ended January 1,
2006
|
5,049
|
4,229
|
—
|
9,278
|
SUNPOWER CORPORATION
|
||||
Dated:
March 3, 2008
|
By:
|
/s/ EMMANUEL T. HERNANDEZ
|
||
Emmanuel
T. Hernandez
|
||||
Chief
Financial Officer
|
Signature
|
Title
|
Date
|
||
/s/
THOMAS H. WERNER
|
Chief
Executive Officer and Director
|
March
3, 2008
|
||
Thomas
H. Werner
|
(Principal
Executive Officer)
|
|||
/s/
EMMANUEL T. HERNANDEZ
|
Chief
Financial Officer
|
March
3, 2008
|
||
Emmanuel
T. Hernandez
|
(Principal
Financial and Accounting Officer)
|
|||
/s/
T.J. RODGERS
|
Chairman
of the Board of Directors
|
March
3, 2008
|
||
T.J.
Rodgers
|
/s/
W. STEVE ALBRECHT
|
Director
|
March
3, 2008
|
||
W.
Steve Albrecht
|
||||
/s/
BETSY S. ATKINS
|
Director
|
March
3, 2008
|
||
Betsy
S. Atkins
|
||||
/s/
PATRICK WOOD
|
Director
|
March
3, 2008
|
||
Patrick
Wood
|
Exhibit
Number
|
Description
|
|
2.1
|
Agreement
and Plan of Merger, dated November 15, 2006, by and among SunPower
Corporation, Pluto Acquisition Company LLC, PowerLight Corporation and
Thomas L. Dinwoodie (incorporated by reference to Exhibit 10.1 to the
Registrant’s Current Report on Form 8-K/A filed with the Securities and
Exchange Commission on November 22, 2006).
|
|
2.2
|
First
Amendment to Agreement and Plan of Merger, dated December 21, 2006, by and
between SunPower Corporation and PowerLight Corporation (incorporated by
reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on December 22,
2006).
|
|
3.1
|
Form
of Restated Certificate of Incorporation of SunPower Corporation
(incorporated by reference to Exhibit 3.(i)2 to the Registrant’s
Registration Statement on Form S-1/A filed with the Securities and
Exchange Commission on November 11, 2005).
|
|
3.2
|
Form
of By-laws of SunPower Corporation (incorporated by reference to Exhibit
3.(ii)2 to the Registrant’s Registration Statement on Form S-1/A filed
with the Securities and Exchange Commission on October 11,
2005).
|
|
4.1
|
Specimen
Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1
to the Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on November 14,
2005).
|
|
4.2
|
Indenture,
dated February 7, 2007, by and between SunPower Corporation and Wells
Fargo Bank, National Association (incorporated by reference to Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on February 8,
2007).
|
|
4.3
|
First
Supplemental Indenture, dated February 7, 2007, by and between SunPower
Corporation and Wells Fargo Bank, National Association (incorporated by
reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on February 8,
2007).
|
|
4.4
|
Form
of Second Supplemental Indenture, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 4.1 of Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on July 26, 2007).
|
|
4.5
|
Form
of Registration Rights Agreement (incorporated by reference to Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on December 22,
2006).
|
|
10.1
|
Share
Lending Agreement, dated July 25, 2007, by and among SunPower Corporation,
Credit Suisse International and Credit Suisse Securities (USA) LLC
(incorporated by reference to Exhibit 10.1 of Registrant’s Current Report
on Form 8-K filed with the Securities and Exchange Commission on July 26,
2007).
|
|
10.2
|
Amended
and Restated Share Lending Agreement, dated July 25, 2007, by and among
SunPower Corporation, Lehman Brothers International (Europe) Limited and
Lehman Brothers Inc. (incorporated by reference to Exhibit 10.2 of
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on July 26, 2007).
|
|
10.3
|
SunPower
Corporation 1996 Stock Plan and form of agreements thereunder
(incorporated by reference to Exhibit 10.3 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.4
|
SunPower
Corporation 2005 Stock Unit Plan (incorporated by reference to Exhibit
10.28 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on October 31,
2005).
|
10.5
|
Amended
and Restated SunPower Corporation 2005 Stock Incentive Plan and form of
agreements thereunder (incorporated by reference to Exhibit 4.3 to the
Registrant’s Registration Statement on Form S-8 filed with the Securities
and Exchange Commission on May 7, 2007).
|
|
10.6
|
PowerLight
Corporation Common Stock Option and Common Stock Purchase Plan
(incorporated by reference to Exhibit 4.3 to the Registrant’s Registration
Statement on Form S-8 filed with the Securities and Exchange Commission on
January 25, 2007).
|
|
10.7
|
Form
of PowerLight Corporation Incentive/Non-Qualified Stock Option, Market
Standoff and Stock Restriction Agreement (Employees) (incorporated by
reference to Exhibit 4.4 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.8
|
Form
of PowerLight Corporation Non-Qualified Stock Option, Market Standoff and
Stock Restriction Agreement (Directors and Consultants) (incorporated by
reference to Exhibit 4.5 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.9
|
Form
of Non-Qualified Stock Option Agreement, by and between PowerLight
Corporation and Gary Wayne (incorporated by reference to Exhibit 4.7 to
the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on January 25,
2007).
|
|
10.10
|
Form
of Non-Qualified Stock Option Agreement, by and between PowerLight
Corporation and Dan Shugar (incorporated by reference to Exhibit 4.9 to
the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on January 25,
2007).
|
|
10.11
|
Form
of Equity Restriction Agreement, by and between SunPower Corporation and
each of Messrs. Dinwoodie, Wenger, Ledesma and Shugar (incorporated by
reference to Exhibit 10.4 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 17,
2007).
|
|
10.12
|
Form
of Indemnification Agreement, by and between SunPower Corporation and its
officers and directors (incorporated by reference to Exhibit 10.1 to the
Registrant’s Registration Statement on Form S-1 filed with the Securities
and Exchange Commission on August 25, 2005).
|
|
10.13
|
Offer
Letter, dated May 22, 2003, by and between SunPower Corporation and Thomas
Werner (incorporated by reference to Exhibit 10.8 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.14
|
Offer
Letter, dated January 14, 2005, by and between SunPower Corporation and PM
Pai (incorporated by reference to Exhibit 10.9 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.15
|
Offer
Letter, dated April 1, 2005, by and between SunPower Corporation and
Emmanuel Hernandez (incorporated by reference to Exhibit 10.10 to the
Registrant’s Registration Statement on Form S-1 filed with the Securities
and Exchange Commission on August 25, 2005).
|
|
10.16
|
SunPower
Corporation 2006 Key Employee Bonus Plan (KEBP) (incorporated by reference
to Exhibit 10.29 to the Registrant’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 24,
2006).
|
|
10.17
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007,
by and between Thomas L. Dinwoodie and PowerLight Corporation
(incorporated by reference to Exhibit 10.1 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
January 17, 2007).
|
|
10.18
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007, by
and between Howard J. Wenger and PowerLight Corporation (incorporated by
reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 17,
2007).
|
10.19
|
Amended
and Restated Employment Agreement, effective as of January 11, 2007, by
and between Bruce R. Ledesma and PowerLight Corporation (incorporated by
reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on January 17,
2007).
|
|
10.20
|
Amended and Restated Employment Agreement, effective as of January 11, 2007, by and between Dan S. Shugar and PowerLight Corporation. | |
10.21
|
Industrial
Lease, dated May 12, 1999, between Temescal, L.P., Contra Costa Industrial
Park, Ltd. and PowerLight Corporation (as amended on November 6, 2000 and
January 22, 2004) (incorporated by reference to Exhibit 10.3 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on May 11, 2007).
|
|
10.22
|
Standard
Industrial / Commercial Multi-Tenant Lease, dated December 15, 2006, by
and between PowerLight Corporation and FPOC, LLC (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 11,
2007).
|
|
10.23
|
First
Amendment to Lease, dated May 24, 2007, by and between PowerLight
Corporation and FPOC, LLC (incorporated by reference to Exhibit 10.1 to
the Registrant’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 7, 2007).
|
|
10.24
|
Second
Amendment to Lease, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC.
|
|
10.25
|
PV
Risk Reduction Agreement, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC.
|
|
10.26†
|
Credit
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.27
|
First
Amendment to Credit Agreement, dated August 20, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.9 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.28
|
Second
Amendment to Credit Agreement, dated August 31, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.29†
|
Security
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.30
|
Continuing
Guaranty, dated July 13, 2007, by and between SunPower North America,
Inc., SunPower Corporation, Systems and Wells Fargo Bank, National
Association (incorporated by reference to Exhibit 10.3 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 9, 2007).
|
|
10.31†
|
Original
Equipment Manufacturer Production of Photovoltaic Modules Agreement, dated
December 6, 2006, by and between PowerLight Corporation and aleo solar AG
(as amended on March 21, 2007) (incorporated by reference to Exhibit 10.10
to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 11, 2007).
|
|
10.32†
|
Supply
Agreement, dated June 30, 2006, by and between SunPower Philippines
Manufacturing, Ltd. and DC Chemical Co., Ltd. (incorporated by reference
to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on August 16,
2006).
|
10.33†
|
Photovoltaic
Module Master Supply Agreement, dated November 3, 2005, by and among
PowerLight Corporation, PowerLight Systems AG and Evergreen Solar, Inc.
(incorporated by reference to Exhibit 10.8 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
May 11, 2007).
|
|
10.34†
|
Amendment
One to Photovoltaic Module Master Supply Agreement, dated June 29, 2006,
by and among PowerLight Corporation, PowerLight Systems AG and Evergreen
Solar, Inc. (incorporated by reference to Exhibit 10.9 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on May 11, 2007).
|
|
10.35†
|
Wafering
Supply and Sales Agreement, dated October 1, 2007, by and between SunPower
Philippines Manufacturing Ltd. and First Philec Solar Corp. (incorporated
by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 9,
2007).
|
|
10.36†
|
Long-Term
Supply Agreement II, dated July 16, 2007, by and between SunPower
Corporation and Hemlock Semiconductor Corporation (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.37†
|
Ingot/Wafer
Agreement, dated December 3, 2007, by and between SunPower Corporation and
Jiawei SolarChina Co., LTD.
|
|
10.38†
|
Terms
and Conditions, dated January 1, 2006, by and between SunPower Philippines
Manufacturing Ltd. and M.Setek Company Ltd. (incorporated by reference to
Exhibit 10.35 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on May 16,
2006).
|
|
10.39†
|
Long-Term
Ingot and Wafer Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.7 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
|
10.40†
|
Master
Supply Contract for Solar Cells, dated May 18, 2006, by and between
PowerLight Corporation and Q-Cells Aktiengesellschaft (incorporated by
reference to Exhibit 10.11 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 11,
2007).
|
|
10.41†
|
Supply
Agreement, dated August 21, 2005, by and between SunPower Corporation and
Wacker-Chemie GmbH (incorporated by reference to Exhibit 10.22 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on October 11,
2005).
|
|
10.42†
|
Supply
Agreement, dated August 3, 2006, by and between SunPower Corporation and
Wacker Chemie AG (incorporated by reference to Exhibit 10.1 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on November 13, 2006).
|
|
10.43†
|
Ingot
Supply Agreement, dated December 22, 2006, by and between SunPower
Corporation and Woongjin Energy Co., Ltd. (incorporated by reference to
Exhibit 10.62 to the Registrant’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 2,
2007).
|
|
10.44†
|
Engineering,
Procurement and Construction Agreement, dated as of March 26, 2007, by and
among PowerLight Systems S.A., Agrupacion Solar Llerena-Badajoz 1, A.I.E.
and Solarpack Corporacion Tecnologica, S.L. (incorporated by reference to
Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on May 11,
2007).
|
|
10.45†
|
Supply
Agreement, dated April 17, 2004, by and between SunPower Corporation and
Conergy AG, and Appendixes thereto (incorporated by reference to Exhibit
10.24 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on November 14,
2005).
|
10.46†
|
Amendment
to Supply Agreement, dated December 22, 2005, by and between SunPower
Corporation and Conergy AG (incorporated by reference to Exhibit 10.31 to
the Registrant’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 24, 2006).
|
|
10.47†
|
Amendment
to Supply Agreement, dated June 21, 2007, by and between SunPower
Corporation and Conergy AG (incorporated by reference to Exhibit 10.2 to
the Registrant’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 7, 2007).
|
|
10.48†
|
Long-Term
Polysilicon Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.8 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
|
10.49†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated December
28, 2007, by and between SunPower Energy Systems Spain, S.L. and Solargen
Proyectos e Instalaciones Solares, S.L.
|
|
10.50†
|
Amended
and Restated Supply Agreement, dated November 10, 2005, by and among
SunPower Corporation, SunPower Technology Limited and Solon AG fur
Solartechnik (incorporated by reference to Exhibit 10.23 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on November 14,
2005).
|
|
10.51†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated October
10, 2007, by and between SunPower Energy System Spain S.L. and Sedwick
Corporate, S.L.
|
|
10.52†
|
Polysilicon
Supply Agreement, dated December 22, 2006, by and between SunPower
Corporation Manufacturing, Ltd. and Woongjin Energy Co., Ltd.
(incorporated by reference to Exhibit 10.61 to the Registrant’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
March 2, 2007).
|
|
10.53†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Almuradiel
Solar, S.L.
|
|
10.54†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Moralas
Renovables, S.L.
|
|
10.55†
|
Turnkey
Construction Contract for the Construction of a Solar Park, dated November
6, 2007, by and between SunPower Energy Systems Spain, S.L. and Naturener
Solar Tinajeros, S.L.
|
|
10.56
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 21, 2007, by and among SunPower Energy Systems Spain, S.L.,
Almuradiel Solar, S.L., Moralas Renovables, S.L. and Naturener Solar
Tinajeros, S.L.
|
|
10.57†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Almuradiel Solar, S.L.
|
|
10.58†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Moralas Renovables, S.L.
|
|
10.59†
|
Amendment
to Turnkey Construction Contract for the Construction of a Solar Park,
dated November 29, 2007, by and between SunPower Energy Systems Spain,
S.L. and Naturener Solar Tinajeros, S.L.
|
|
10.60
|
Master
Separation Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.12 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
10.61
|
Indemnification
and Insurance Matters Agreement, dated October 6, 2005, by and between
SunPower Corporation and Cypress Semiconductor Corporation (incorporated
by reference to Exhibit 10.13 to the Registrant’s Registration Statement
on Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.62
|
Investor
Rights Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.14 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.63
|
Employee
Matters Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.15 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.64
|
Tax
Sharing Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.16 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on
October 11, 2005).
|
|
10.65
|
Master
Transition Services Agreement, dated October 6, 2005, by and between
SunPower Corporation and Cypress Semiconductor Corporation (incorporated
by reference to Exhibit 10.17 to the Registrant’s Registration Statement
on Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.66
|
Wafer
Manufacturing Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.18 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on October
11, 2005).
|
|
10.67
|
Contract
of Lease, dated October 6, 2005, by and between SunPower Philippines
Manufacturing Ltd. – Philippines Branch and Cypress Semiconductor
Corporation (incorporated by reference to Exhibit 10.19 to the
Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on October 11,
2005).
|
|
10.68
|
Services
Agreement, dated January 1, 2005, by and between Cypress
Semiconductor Philippines Headquarters Ltd. Regional Operating
Headquarters and SunPower Philippines Manufacturing Ltd. (incorporated by
reference to Exhibit 10.26 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on
October 31, 2005).
|
|
10.69
|
Asset
Lease, dated October 28, 2005, by and between SunPower Corporation and
Cypress Semiconductor Corporation (incorporated by reference to Exhibit
10.27 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on October 31,
2005).
|
|
10.70
|
Office
Lease Agreement, dated May 15, 2006 between SunPower Corporation and
Cypress Semiconductor Corporation (incorporated by reference to Exhibit
10.36 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 16, 2006).
|
|
21.1
|
List
of Subsidiaries.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
24.1
|
Power
of Attorney (set forth on the signature page of this
Report).
|
|
31.1
|
Certification
by Chief Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
31.2
|
Certification
by Chief Financial Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
32.1
|
Certification
Furnished Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002.
|
COMPANY:
|
EXECUTIVE:
|
By:
|
/s/
Emmanuel T. Hernandez
|
/s/
Daniel Shugar
|
|
Name:
|
Emmanuel
T. Hernandez
|
Daniel
Shugar
|
|
Its:
|
Chief
Financial Officer
|
Period:
|
Monthly Base Rent:
|
Second Increment
Commencement Date –
9/30/10
|
$12,162.65
|
10/1/10
– 9/30/11
|
$12,527.53
|
10/1/11
– 9/30/12
|
$12,903.36
|
10/1/12
– 9/30/13
|
$13,290.46
|
10/1/13
– 9/30/14
|
$13,689.17
|
10/1/14
– 9/30/15
|
$14,099.85
|
10/1/15
– 9/30/16
|
$14,522.84
|
10/1/16
– 9/30/17
|
$14,958.53
|
10/1/17
– 9/30/18
|
$15,407.28
|
Months:
|
Base Rent Per Month PSF:
|
Base Rent Per Month:
|
||||||||||
Phase
1 – 17,629 sf:
|
1 – 12 | $ | 1.57 | $ | 27,589.39 | |||||||
Phase
1 + Phase 2
|
13 – 24 | $ | 1.61 | $ | 66,153.29 | |||||||
25 – 36 | $ | 1.66 | $ | 68,207.74 | ||||||||
37 – 48 | $ | 1.71 | $ | 70,262.19 | ||||||||
49 – 60 | $ | 1.76 | $ | 72,316.64 | ||||||||
61 – 72 | $ | 1.81 | $ | 74,371.09 | ||||||||
73 – 84 | $ | 1.87 | $ | 76,836.43 | ||||||||
85 – 96 | $ | 1.92 | $ | 78,890.88 | ||||||||
97 – 108 | $ | 1.98 | $ | 81,356.22 | ||||||||
109
– 9/30/2018
|
$ | 2.04 | $ | 83,821.56 |
Period:
|
Base Rent Per Month PSF:
|
Monthly Base Rent:
|
||||||
R&D Commencement
Date –
10/31/08
|
$ | 0.15 | $ | 3,356.25 | ||||
11/1/08
– 10/31/09
|
$ | 0.155 | $ | 3,456.94 | ||||
11/1/09
– 10/31/10
|
$ | 0.159 | $ | 3,560.65 | ||||
11/1/10
– 10/31/11
|
$ | 0.164 | $ | 3,667.46 | ||||
11/1/11
– 10/31/12
|
$ | 0.169 | $ | 3,777.49 | ||||
11/1/12
– 10/31/13
|
$ | 0.174 | $ | 3,890.81 | ||||
11/1/13
– 10/31/14
|
$ | 0.179 | $ | 4,007.54 | ||||
11/1/14
– 10/31/15
|
$ | 0.184 | $ | 4,127.76 | ||||
11/1/15
– 10/31/16
|
$ | 0.184 | $ | 4,251.60 | ||||
11/1/16
– 10/31/17
|
$ | 0.190 | $ | 4,379.14 | ||||
11/1/17
– 10/31/18
|
$ | 0.196 | $ | 4,385.50 |
LANDLORD:
|
TENANT:
|
||||
FPOC,
LLC,
|
Sunpower
Corporation, Systems,
|
||||
a
California limited liability company
|
a
Delaware corporation
|
||||
By:
|
/S/ TOM DINWOODIE
|
||||
BY:
|
FP
Management, LLC, a California
|
Name:
|
Tom
Dinwoodie
|
||
limited
liability company, its Manager
|
Its:
|
CEO,
Systems
|
|||
By:
|
/s/ J.R. ORTON, III
|
By:
|
/S/ DAN SHUGAR
|
||
J.R.
Orton, III, Manager
|
Name:
|
Dan
Shugar
|
|||
Its:
|
President,
Systems
|
Payment
Date:
|
Installment
Amount:
|
January
1, 2013
|
$150,000.00
|
January
1, 2014
|
$150,000.00
|
January
1, 2015
|
$150,000.00
|
January
1, 2016
|
$150,000.00
|
January
1, 2017
|
$150,000.00
|
LANDLORD:
|
TENANT:
|
||||
FPOC,
LLC,
|
Sunpower
Corporation, Systems,
|
||||
a
California limited liability company
|
a
Delaware corporation
|
||||
By:
|
/S/ THOMAS DINWOODIE
|
||||
BY:
|
FP
Management, LLC, a California
|
Name:
|
Thomas
Dinwoodie
|
||
limited
liability company, its Manager
|
Its:
|
CEO,
Systems
|
|||
By:
|
/s/ J.R. ORTON, III
|
By:
|
/S/ DAN SHUGAR
|
||
J.R.
Orton, III, Manager
|
Name:
|
Dan
Shugar
|
|||
Its:
|
President,
Systems
|
CONFIDENTIAL
TREATMENT REQUESTED
-
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION
|
1.
|
DEFINITIONS
|
1.1
|
The
“Agreement” shall mean this signed document
and
|
1.1.1
|
Schedule
1 Specification of Ingots and
Wafers;
|
1.1.2
|
Schedule
2 Prices and Payment; and
|
1.1.3
|
Schedule
3 Forecasts, Quantities, Yield/Ratios Limits, and Delivery
Schedule.
|
1.2
|
“Confidential
Information” shall have the meaning as set forth in Section
9.1.
|
1.3
|
“Delivery
Schedule” shall mean such delivery dates and quantities applicable to
certain periods set forth in Schedule
3.
|
1.4
|
“Effective
Date” shall mean the first date written
above.
|
1.5
|
“Ingot”
shall mean a pseudo squared single crystal silicon unit to be used in
manufacturing of photovoltaic Ingots as further specified in Schedule 1,
per SunPower specification as identified in Schedule
1.
|
1.6
|
“Wafer”
shall mean a pseudo quadratic disc sliced from a single crystal silicon
Ingot, and with the technical specifications as set out in Schedule 1, per
SunPower specification as identified in Schedule
1.
|
1.7
|
“Products”
shall mean, collectively, Ingots and Wafers as defined
above.
|
2.
|
SALE
AND PURCHASE
|
2.1
|
Unless
otherwise instructed by SunPower in writing, Jiawei shall be under a firm
commitment obligation to sell Products in the quantities and (subject to
Section 5.2.1) on the delivery dates set forth in the Delivery
Schedule. Notwithstanding anything to the contrary in this
Agreement, SunPower assumes no obligation to purchase any Products under
this Agreement other than with respect to specific quantities of Products
which SunPower identifies in its firm purchase orders as part of
SunPower’s 60 day rolling forecast.
|
2.2
|
All
sales and purchase of Products between the Parties are subject to and
governed by this Agreement unless otherwise agreed in writing (under
purchase orders or otherwise).
|
2.3
|
Unless
otherwise consented to in writing by SunPower, Jiawei shall sell Products
manufactured with polysilicon delivered by SunPower, exclusively to
SunPower.
|
2.4
|
From
time to time, Jiawei may submit purchase orders to SunPower under which
Jiawei would purchase polysilicon from SunPower for use by Jiawei in its
production of Products to be sold to SunPower. If SunPower
agrees to sell polysilicon to Jiawei as requested by Jiawei’s purchase
order, SunPower shall confirm such sale in writing. The parties
anticipate that Jiawei will purchase quantities of polysilicon as set
forth in Schedule 3 to this Agreement; however, Jiawei is under no
obligation to purchase, and SunPower is under no obligation to sell, such
polysilicon contemplated in Schedule 3 to this
Agreement.
|
3.
|
PRICES
|
3.1
|
The
price for Products shall be fixed through December 31,
2012. The price for Wafers sold by Jiawei to SunPower is set
forth on Schedule 2 to this Agreement. The price for Wafers
sold by Jiawei in 2011 and 2012 are to be negotiated by the
parties. If no agreement is reach, neither party is under an
obligation to purchase or sell Wafers in such years. The price
for Ingots sold by Jiawei to SunPower is set forth on Schedule 3 to this
Agreement. The price for polysilicon sold by SunPower to Jiawei
is set forth in Schedule 3 to this
Agreement.
|
3.2
|
All
prices for the Products include all applicable sales, use, value added or
other taxes or duties.
|
4.
|
PAYMENT
|
4.1
|
All
payments for Products shall be made by SunPower to Jiawei no later than 30
days following the date of Jiawei’s invoice. All payments for
polysilicon shall be made by Jiawei to SunPower no later than 30 days
following the date of SunPower’s invoice. Payment shall be net
of any and all invoice fees or other fees or charges, other than those
specified in this Agreement. All invoices should be sent to
SunPower at its registered office. Value added or sales tax where
applicable shall be shown separately on all
invoices.
|
4.2
|
Unless
otherwise agreed by Jiawei, no deductions from Product invoices by
SunPower are permitted, and unless otherwise agreed by SunPower, no
deductions from polysilicon invoices by Jiawei are
permitted.
|
5.1
|
Upon
receipt of a confirming purchase order submitted by SunPower, Jiawei shall
supply the Products in such quantities on such dates as set forth in the
Delivery Schedule in Schedule 3 to this Agreement. The Delivery
Schedule shall be effective through December 31,
2012.
|
5.2
|
Notwithstanding
anything to the contrary in the Delivery
Schedule:
|
5.2.1
|
If
delivery of polysilicon from SunPower to Jiawei is delayed for any reason,
the dates for delivery of Products from Jiawei to SunPower may (unless
otherwise agreed by the Parties in writing) be delayed for the same
period.
|
5.2.2
|
Until
Jiawei has established sufficient Wafer manufacturing capacity at its
Beijing China facility or such China facilities to be determined and
agreed upon, Jiawei shall deliver squared Ingots to SunPower unless the
Parties agree to ship as-grown or ground round Ingots in addition to, or
in lieu of, squared Ingots. When such capacity has been
established, Jiawei shall deliver Wafers to
SunPower.
|
5.2.3
|
Jiawei
must qualify each of the manufacturing steps associated with such Ingot
and Wafer manufacturing capacity with SunPower. The Parties
will mutually agree upon the specific volumes of Wafers to be delivered
based on actual Wafer manufacturing ramp up performance over
time.
|
6.
|
DELIVERY
|
6.1
|
The
Products and polysilicon shall be delivered FCA Hong Kong until changed
with mutual agreement (Incoterms 2000). SunPower shall instruct
Jiawei on the delivery location for each shipment. In the event
Products are delivered more than four (4) weeks following the delivery
date requested by SunPower, Jiawei agrees to immediately dedicate its
entire factory production to fulfilling SunPower’s delivery, and ship such
Products via air freight to a delivery location then requested by SunPower
at Jiawei’s expense. If Products are not delivered within six
(6) weeks following the requested delivery date, Jiawei will pay SunPower
late delivery penalties at a rate of *** percent (***%) of the net
purchase price, excluding duty, VAT, any applicable taxes applicable to
such shipment per week thereafter, up to a maximum of *** percent (***%)
of such purchase price.
|
6.2
|
Title
to the Products shall pass to SunPower simultaneously with risk of loss
under FCA Hong Kong (Incoterms 2000). Title to polysilicon sold
by SunPower to Jiawei shall pass to Jiawei simultaneously with risk of
loss under FCA Hong Kong (Incoterms
2000).
|
6.3
|
A
conformance certificate shall be issued by Jiawei to SunPower for each
delivery of Products. The parameters shown in the delivery certificate are
outlined in Schedule 1.
|
7.
|
PACKAGING
AND SHIPPING
|
7.1
|
Jiawei
shall bear all costs associated with packaging or storing the Products
until delivery to SunPower pursuant to the delivery terms specified in
Section 6. All Products shall be packaged, marked, and otherwise prepared
in accordance with good commercial practices to reduce the risk of damage
and to be packaged in the smallest commercially acceptable form in order
to enable SunPower to obtain the lowest shipping rates possible (based on
volume metric dimensions) and in accordance with all applicable federal,
state and local packaging and transportation laws and regulations. An
itemized packing list shall accompany each shipment. Other or
special packaging and shipping requirements are set forth on Schedule
1.
|
7.2
|
Jiawei
shall establish reasonable control routines in order to ensure punctual
delivery of the Products at the agreed time and without any defects or
non-conformities.
|
8.
|
INSPECTION
|
8.1
|
All
Products may be inspected and tested by SunPower. No
inspection, test, approval, or acceptance of the Products shall relieve
Jiawei from responsibility for any defects in the Products or other
failures to meet the requirements of this
Agreement.
|
8.2
|
SunPower
shall notify Jiawei promptly of any complaint about the Products,
including but not limited to non-compliance with any specifications set
out in Schedule 1 or quantities to be delivered in accordance with
Schedule 3. Upon Jiawei’s request, Product samples shall be
submitted to Jiawei for examination.
|
8.3
|
SunPower
shall upon Jiawei’s request return such Products to Jiawei at Jiawei’s
expense.
|
9.
|
CONFIDENTIALITY
|
9.1
|
The
Parties acknowledge and agree that the terms of this Agreement and certain
information exchanged between them pertaining to this Agreement, including
information regarding research, technology, product developments,
marketing plans or conditions, products, business strategies, and the
like, constitute “Confidential Information” of the Party disclosing the
information. The purpose of the exchange of the Confidential
Information” is to allow the Parties to meet their obligations and
responsibilities under this Agreement. During the term of this
Agreement, and for a period of 15 years following its termination or
expiration, except as required by applicable law, regulation or rules of
any securities exchange, the Party receiving any Confidential Information,
and its employees, attorneys, financial advisors, officers, directors and
shareholders who shall receive such Confidential Information shall not,
except with the prior written consent of the disclosing Party, use,
divulge, disclose or communicate, to any person, firm, corporation or
entity, in any manner whatsoever, the terms of this Agreement or any
Confidential Information of the disclosing Party; provided, however, that
each Party may use, divulge, disclose or communicate the terms of this
Agreement or Confidential Information of the disclosing Party to
wholly-owned or majority owned subsidiaries if such subsidiaries undertake
to keep such information strictly confidential in accordance with this
Section 9 and each subsidiary has a “need to know”. The Parties
will be liable for any breach of this Section 9 by any of their respective
wholly-owned or majority owned subsidiaries. Each Party further
agrees to use the same degree of care to avoid publication or
dissemination of the Confidential Information disclosed to such Party
under this Agreement as it employs with respect to its own Confidential
Information, but at all times shall use at least reasonable care to
protect against disclosure.
|
9.2
|
Confidential
Information does not and shall not include information
that:
|
9.2.1
|
was
already known to the receiving Party at the time such information is
disclosed by the other Party;
|
9.2.2
|
was
or became publicly known through no wrongful act of the receiving
Party;
|
9.2.3
|
was
rightfully received from a third party without
restriction;
|
9.2.4
|
was
independently developed by the receiving
Party;
|
9.2.5
|
was
approved for release by written authorization of the Party disclosing such
information under this Agreement;
or
|
9.2.6
|
was
required by legal or financial reporting purposes to be disclosed;
provided, however, that the party being required to disclose shall, if
circumstances permit, provide advanced notice to the other
Party.
|
10.
|
WARRANTY
|
10.1
|
Jiawei
warrants that the Products will be free from defects and workmanship, and
conform to the specifications set forth in Schedule 1, provided that
Jiawei is notified of any defects or non-conformity within thirty (30)
days after delivery and that the defect or non-conformity is shown to be
due to Jiawei’s faulty design, workmanship, material or
packaging.
|
10.2
|
If
any Products fail to conform to this warranty, then Jiawei will, at
SunPower’s option, either refund or replace such Products. For
valid warranty claims all associated shipping and return costs shall be
paid by Jiawei.
|
11.
|
INDEMNIFICATION
|
11.1
|
Jiawei
shall indemnify SunPower against any and all costs, loss and liability for
all personal injury and property damage caused by the Products (whether
performed on the premises of Jiawei or SunPower or elsewhere) and shall
defend at its sole cost and expense any action brought against SunPower as
a result of any such personal injury or property damage. Jiawei
shall carry and maintain insurance coverage satisfactory to cover the
above, and upon SunPower's request, shall furnish SunPower with evidence
of such insurance.
|
11.2
|
Jiawei
shall defend, at its own expense, any suit or claim that may be instituted
against SunPower or any customer of SunPower for alleged infringement of
patents, trade secrets, copyrights or other intellectual property rights
relating to the maintenance, sale or use of the Products, and Jiawei shall
indemnity SunPower and its customers for all costs and damages arising out
of such alleged infringement.
|
12.
|
FORCE
MAJEURE
|
12.1
|
Neither
Party shall be liable for delays or failures in performance of an order or
default in delivery arising out of or resulting from acts of God, acts of
the other Party, acts of the Government or the public enemy, fire, flood,
epidemics, quarantine restrictions, strikes, or freight embargoes (each a
“Force Majeure Event”).
|
12.2
|
In
the event of any Force Majeure Event, the unaffected Party shall honor its
obligations hereunder as soon as the affected Party is able to
perform.
|
13.
|
ASSIGNMENT
AND CHANGE OF CONTROL
|
13.1
|
No
assignment of the Agreement or of any right or obligation under the
Agreement shall be made by Jiawei without the prior written consent of
SunPower, said consent shall not be unreasonably withheld. In
the event of a proper assignment, the Agreement shall be binding upon and
inure to the benefit of the assigning Party’s successors and
assigns.
|
14.
|
NO
PARTNERSHIP OR AGENCY
|
14.1
|
Nothing
in this Agreement shall constitute, or be deemed to constitute, a
partnership or agency between the
Parties.
|
15.
|
NOTICES
|
15.1
|
Any
communication which is required or permitted hereunder shall be in writing
and shall be deemed to have been duly given if delivered personally,
telefaxed (and with a confirmation copy also sent by mail), delivered by a
reputable commercial courier service or mailed, always with receipt
acknowledged, to the registered address of either Party as set forth
herein or to such other registered address as follows from a prior
notification to the other Party by the receiving
Party.
|
16.
|
ENTIRE
AGREEMENT
|
16.1
|
This
Agreement constitutes the entire understanding between the Parties with
respect to the subject matter of the Agreement and supersedes any prior
discussions, negotiations, agreements, memoranda of understanding and the
like. Modifications to the Agreement may be made only in
writing and signed by each Party. If one or more of the
provisions of this Agreement shall be found, by a court with jurisdiction,
to be illegal, invalid or unenforceable, it shall not affect the legality,
validity or enforceability of any of the remaining provisions of this
Agreement. The Parties agree to attempt to substitute for any
illegal, invalid or unenforceable provision a legal, valid or enforceable
provision that achieves to the greatest extent possible the economic
objectives of the illegal, invalid or unenforceable
provision.
|
17.
|
WAIVER
|
17.1
|
Either
Party’s failure to exercise a right or remedy or such Party’s acceptance
of a partial or delinquent payment or delivery shall not operate as a
waiver of any of such Party’s rights or the other Party’s obligations
under the Agreement and shall not constitute a waiver of such Party’s
right to declare an immediate or a subsequent
default.
|
18.
|
TERM
AND TERMINATION
|
18.1
|
This
Agreement commences on the Effective Date, and continues to remain in
force and effect until December 31, 2012 (the “Term”), at which time this
Agreement may be extended with the mutual agreement of both
Parties.
|
18.2
|
The
parties expressly agree that Jiawei is obligated to supply the Products at
the contracted volumes and prices pursuant to this Agreement unless
SunPower in its sole and absolute discretion waives such delivery
obligations. Accordingly, the basis and circumstances under
which the Parties can terminate this Agreement prior to the expiration of
the Term of this Agreement is expressly limited to the terms of this
Section 18.
|
18.3
|
Termination by
Jiawei. Jiawei may, at its option, terminate this
Agreement only upon all of the following events: (i) a material
breach by SunPower of its obligations under this Agreement, (ii) service
of written notice of such breach to SunPower, and (iii) a failure by
SunPower to cure such breach within ninety (90) days of receipt of the
written notice of breach. If SunPower rectifies any such breach
within such period, then SunPower’s breach shall be deemed cured and
Jiawei shall not be entitled to terminate this
Agreement.
|
18.4
|
Termination by
SunPower. SunPower may, at its option, terminate this
Agreement upon all of the following events: (i) a material
breach of this Agreement by Jiawei, (ii) service of written notice of such
failure to Jiawei, and (iii) a failure by Jiawei to cure such breach
within ninety (90) days of receipt of written notice of
breach. If Jiawei rectifies any such breach within such period,
then Jiawei’s breach shall be deemed cured and SunPower shall not be
entitled to terminate this Agreement. In addition, SunPower
may, at its option, immediately terminate this Agreement in the event
Jiawei discontinues its Product manufacturing activities for a period
exceeding thirty (30) days.
|
18.5
|
Sections
9 through 22 shall survive any termination of this
Agreement.
|
19.
|
ATTORNEYS
FEES AND COSTS
|
19.1
|
In
the event of SunPower’s enforcement of any term or condition in the
Agreement, Jiawei shall be liable to SunPower for all costs, including
reasonable attorney fees, incurred by SunPower in enforcing the Agreement
and in collecting any sums owed by Jiawei to
SunPower.
|
20.
|
DOLLARS
|
20.1
|
All
references to monetary amounts shall be in U.S.
Dollars.
|
21.
|
AGREEMENT
PREPARATION
|
21.1
|
This
Agreement shall be considered for all purposes as prepared through the
joint efforts of the Parties and shall not be construed against one Party
or the other as a result of the manner in which this Agreement was
negotiated, prepared, drafted or
executed.
|
22.1
|
The
Agreement is made in, and shall be governed and controlled in all respects
by the laws of the State of California, USA (specifically disclaiming the
U.N. Convention Contracts for the International Sale of Goods) and all
disputes, including interpretation, enforceability, validity, and
construction, shall be determined under the law of the State of
California, without regard to any conflict of law
provisions.
|
22.2
|
The
Parties submit to the exclusive jurisdiction and venue of the U.S.
District Court for the Northern District of California for all disputes
arising, directly or indirectly, under this
Agreement.
|
23.
|
AUDIT
RIGHTS
|
23.1
|
SunPower
may require an audit of Jiawei’s supporting documentation verifying
Jiawei’s compliance with the provisions of this Agreement. Any
such audit shall be conducted by a qualified independent third party who
shall be granted access, under a confidentiality agreement, to all
relevant documentation it reasonably requests for such
verification. Any such audit shall be paid for by
SunPower.
|
JIAWEI
SOLAR CHINA CO., LTD
|
SUNPOWER
CORPORATION
|
|||
By:
|
/S/ KONGXIAN DING
|
By:
|
/S/ JON WHITEMAN
|
|
Name:
|
Kongxian Ding
|
Name:
|
Jon Whiteman
|
|
Title:
|
President
|
Title:
|
VP Strategic
Supply
|
|
·
|
Sunpower and Jiawei
may choose to alter specification as needed with approvals from both
parties. The requesting party will allow twenty (20) days for such review
and acceptance. In such case of change in total spec, Jiawei will review
and comment as soon as possible. (N to P type
change).
|
WAFER
ROADMAP (THIN WAFER – 150mm diameter)
|
||||||||
Q108
|
Q208
|
Q308
|
Q408
|
2009
|
2010
|
2011
|
2012
|
|
Saw
Yield
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Wafer
Diameter (mm)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Sawed
Wafer Thickness (um)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Kerf
Loss + Wire (um)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Pitch
(um)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Silicon/Wafer
–round (grams)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
In-house
Wafers/Kg (kg of round ingot)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Cost/Wafer
($)
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Year
|
Month
|
Poly
Price
|
Conversion
Price
|
Conversion
Ratio
|
CHINA
Round
Ingot
Cost
($/kg)
|
China
Plant
#
of
Growers
|
Nameplate
Capacity
(Ingot
MTs)
|
SPWR
Poly
Supplied
|
QTY
of Round
Ingots
Delivered
by
China
Plant
|
Wafers/kg
roadmap/
plan
|
Equiv
Wafer
Qty
in Kpc
|
2007
|
Nov
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Dec
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
2008
|
Jan
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Feb
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Mar
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Apr
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
May
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jun
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jul
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Aug
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Sept
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Oct
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Nov
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Dec
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
2009
|
Jan
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Feb
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Mar
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Apr
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
May
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jun
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jul
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Aug
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Sept
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Oct
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Nov
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Dec
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
2010
|
Jan
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Feb
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Mar
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Apr
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
May
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jun
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jul
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Aug
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Sept
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Oct
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Nov
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Dec
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
2011
|
Jan
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
Feb
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Mar
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Apr
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
May
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jun
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Jul
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Aug
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Sept
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Oct
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Nov
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
Dec
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
2012
|
annual
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
1.
|
DEFINITIONS
|
6
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
11
|
2.1
|
PURPOSE
OF THE CONTRACT
|
11
|
2.2
|
SCOPE
OF WORK
|
12
|
2.3
|
EXCLUSIONS
|
13
|
2.4
|
CHANGES
IN THE SCOPE
|
13
|
3.
|
COMMENCEMENT
OF WORK
|
14
|
4.
|
PRICE
AND FORM OF PAYMENT
|
17
|
4.1
|
CONTRACT
PRICE
|
17
|
4.2
|
PAYMENT
MILESTONES
|
19
|
4.3
|
INVOICING
SYSTEM AND FORM OF PAYMENT
|
20
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL ACCEPTANCE
|
21
|
5.1
|
IMPLEMENTATION
SCHEDULE. CHANGES IN THE DEADLINE
|
21
|
5.2
|
PERFORMANCE
TESTS AND PROVISIONAL ACCEPTANCE
|
22
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
24
|
6.1
|
PREVENTION
OF OCCUPATIONAL RISKS
|
24
|
6.2
|
OBLIGATION
TO PROVIDE ACCESS TO THE SITE
|
25
|
6.3
|
MINIMUM
STOCK AND SUPPLY OF SPARE PARTS
|
25
|
6.5
|
REGULATORY
COMPLIANCE
|
26
|
6.6
|
PERMITS
AND AUTHORIZATIONS
|
26
|
6.7
|
TRAINING
OF THE OWNER’S PERSONNEL
|
28
|
6.8
|
DESIGNATION
OF PROJECT DIRECTOR
|
28
|
6.9
|
TAXES
AND IMPORT DUTIES
|
28
|
6.10
|
INTELLECTUAL
AND INDUSTRIAL PROPERTY RIGHTS
|
28
|
6.11
|
COOPERATION
|
29
|
7.
|
OBLIGATIONS
OF THE OWNER
|
29
|
8.
|
GUARANTEES
|
30
|
8.1
|
SOLAR
MODULE DEGRADATION GUARANTEE
|
30
|
8.2
|
SOLAR
MODULE CAPACITY GUARANTEE
|
30
|
8.3
|
DESIGN,
ASSEMBLY AND PERFORMANCE GUARANTEE. MATERIALS QUALITY
GUARANTEE.
|
31
|
8.4
|
SOLAR
PARK PRODUCTION GUARANTEE.
|
34
|
8.5
|
BONDS
|
35
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
36
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF RISK
|
37
|
11.
|
INSURANCE
|
37
|
12.
|
FORCE
MAJEURE
|
38
|
13.
|
SUSPENSION
OF THE WORK
|
40
|
13.1
|
SUSPENSION
BY THE OWNER
|
40
|
13.2
|
SUSPENSION
BY THE CONTRACTOR
|
42
|
13.3
|
SUSPENSION
BY JUDICIAL OR GOVERNMENTAL AUTHORITY
|
42
|
14.
|
TERMINATION
|
42
|
14.1
|
TERMINATION
FOR CAUSES ATTRIBUTABLE TO THE CONTRACTOR
|
43
|
14.2
|
TERMINATION
BY THE CONTRACTOR
|
47
|
14.3
|
TERMINATION
DUE TO FORCE MAJEURE
|
49
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
49
|
15.1
|
ASSIGNMENT
|
49
|
15.2
|
SUBCONTRACTING
|
49
|
16.
|
LIABILITY
AND DAMAGES
|
50
|
17.
|
OWNER
FINANCING
|
51
|
18.
|
CONFIDENTIALITY
|
52
|
19.
|
NOTICES
|
53
|
20
|
LAW
AND JURISDICTION
|
54
|
1.
|
DEFINED
TERMS
|
74
|
2.
|
PLEDGE
|
74
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
75
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL
ADVISOR
|
75
|
4.1
|
CHANGES
AND ROLES WITH RESPECT TO THE CONSTRUCTION CONTRACT
|
75
|
4.2
|
CHANGES
AND ACTIONS REGARDING THE MAINTENANCE AGREEMENT
|
77
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS AGREEMENT
|
77
|
6.
|
ASSIGNMENTS
|
77
|
6.1
|
ASSIGNMENT
BY THE FINANCIAL INSTITUTIONS
|
77
|
6.1
|
ASSIGNMENT
BY THE CONTRACTOR
|
78
|
7.
|
NOTICES
|
78
|
8.
|
LAW
AND JURISDICTION
|
79
|
9.
|
TERM
|
79
|
10.
|
TAXES
AND EXPENSES
|
79
|
(A)
|
SOLARGEN PROYECTOS E
INSTALACIONES SOLARES, S.L. (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number B-84299767 herein represented
by Dr. Rafael Sánchez Lodares, with National Identity Document (DNI) No.
403893-J, pursuant to the powers conferred upon him pursuant to a public
instrument executed on the date hereof before Ms. Maria del Rosario Algora
Wesolowski, a Madrid notary, and recorded in her notarial protocol under
No. 2353.
|
(B)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid at calle Pradillo nº 5, herein represented by
Mr. Juan Salsas Sala, with National Identity Document (DNI) No.
46331174-C, pursuant to the powers conferred upon him pursuant to a public
instrument executed on December 26, 2007 before Mr. José Ángel Martínez
Sánchiz, a Madrid notary, and recorded in her notarial protocol under No.
4181.
|
(1)
|
The
Owner is interested in promoting the installation and operation of a solar
park in Las Casas de Son Pedro (Badajoz), consisting of seventy (70) Solar
Facilities having between 115 and 122 kWp of peak power and 100 kWe at the
inverter. The solar park is divided in two (2) phases, the first phase
(the “First
Phase”) to be developed in Site 1 and the second one (the “Second Phase”) to be
developed in Site 2. Each phase will consist of the Solar Facilities
determined by the Parties according to Clause
3.
|
(2)
|
The
Contractor is dedicated to the construction and start-up of facilities of
this type, and intends and has the capacity to construct the Solar Park in
accordance with the specifications of this
Contract.
|
(3)
|
The
Owner will partially finance the payment of the Contract Price through
financing to be made available to the Owner by one or more credit
providers (the “Financial
Institutions”).
|
(4)
|
***
|
(5)
|
Now,
therefore, the Parties mutually acknowledging the legal capacity required
to enter into contract and bind themselves, agree to execute this
"turnkey" construction contract (hereinafter, the “Contract”) in accordance
with the following:
|
1.
|
DEFINITIONS
|
-
|
Final Start-Up Certificate or
Final Start-Up: means the governmental certificate referred to in
Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, with
respect to each of the Solar Facilities and the Electrical Infrastructure,
which allows for the commencement of the commercial operation thereof,
including, for the purposes of this Contract, obtaining the final
registration of each of such Solar Facilities and Electrical
Infrastructures with the Register of Power Facilities included within the
Special Regime (Registro
Administrativo de Instalaciones de Producción de Energía en Régimen
Especial), pursuant to the provisions of Section 12 of Royal Decree
661, which grants to the corresponding facilities the status of a
production facility accepted under the special regime, in accordance with
the terms of this contract.
|
-
|
Direct Agreement: the
agreement executed among the Contractor, the Owner and the agent for the
institutions providing financing to the Owner, for purposes of, among
other things, making the payments contemplated in this Contract, pursuant
to the provisions of Clause 17.
|
-
|
Scope of Work: the
entirety of all services, supplies and work that the Contractor must
provide under this Contract in accordance with the provisions of Clause
2.2 and the specific details contained in Annex
2. The Scope of Work will include works of the two phases or of the
phase with respect to which the Contract is in force according to Clause
3.
|
-
|
Insurance Advisor: means
the insurance advisor appointed by the Financial Institutions in the
context of the financing of the Solar
Park.
|
-
|
Legal Advisor: means
Gómez-Acebo & Pombo, S.L. Ramón & Cajal Attorneys or any other
legal advisor that the Financial Institutions may designate in the context
of the financing of the Solar Park
|
-
|
Technical Advisor: means
the technical advisor appointed by the Financial Institutions in the
context of the financing of the Solar
Park.
|
-
|
Performance Bond: means
any of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations and which shall be effective as from
delivery thereof to the Owner in accordance with the provisions of this
contract until the execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Guarantee Bond: means
each of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations during the Guarantee Period, which shall be
effective as from the execution of the Solar Park Provisional Acceptance
Certificate through the execution of the Final Acceptance
Certificate.
|
-
|
Final Acceptance Certificate
(FAC): means the certificate that shall be executed by the Parties
at the end of the Guarantee Period to attest to the final acceptance of
the Solar Park by the Owner.
|
-
|
Solar Park Provisional
Acceptance Certificate (Park PAC): means the certificate that shall
be executed by the Parties concurrently with the execution of the
Provisional Acceptance Certificate for the last Solar Facility forming a
part of the Solar Park, to evidence the proper operation of the Solar Park
as a result of the Overall Test of all Solar Facilities and the Electrical
Infrastructure, as well as the Contractor’s compliance with the
obligations set forth in this Contract, without prejudice to the
provisions established for the Guarantee
Period.
|
-
|
Solar Facility Provisional
Acceptance Certificate (Facility PAC): means the certificate that
shall be executed by the Parties to evidence the proper operation of the
equipment as a result of the Performance Tests for each of the Solar
Facilities (including the Electrical Infrastructure associated with each
Solar Facility) and the Contractor’s compliance with the obligations set
forth in this Contract, without prejudice to the provisions established
for the Guarantee Period. In order to issue
a Provisional Acceptance Certificate for a Solar Facility,
proper operation of the General Electrical Infrastructure in order to meet
the installed capacity of the Solar Facilities in operation at such time
must also be verified.
|
-
|
Contractor: means
SUNPOWER ENERGY SYSTEMS SPAIN, S.L. and any other
company that may succeed it in its obligations in accordance with the
provisions of this Contract.
|
-
|
Contract: means this
contract together with the Annexes hereto. In the event of conflict
between the body of this Contract and one or more of the Annexes, the body
of this Contract shall prevail.
|
-
|
Maintenance Agreement:
means the Maintenance Agreement entered into by the Contractor and
the Owner on even date herewith, providing for the assumption by the
Contractor of the maintenance work for the Solar Park upon execution of
the Solar Park Provisional Acceptance
Certificate.
|
-
|
Systemic Defect: is an
operational failure of the Solar Facilities of the Solar Park occurring
during the Production Guarantee Period that (i) is not caused by
non-conforming performance of the Work by the Contractor under this
Contract, the Technical
Specifications, the Construction Model or the regulations applicable to
the Work (in accordance with the terms of this Contract), and (ii)
that
|
|
§
|
is
the same failure or is a failure that affects, at least: 0.5% of the solar
modules, 7 or more inverters or their corresponding peripheral systems, 7
or more trackers, or 4 or more transformers (including breakers and
switches) supplied by the same manufacturer for the Solar Park;
or
|
|
§
|
the
relevant supplier or well-known independent third party in the solar
industry reports that at least 1% of worldwide production of the
corresponding model of solar module, inverter, tracker or transformer is
affected by the same operational failure and advises replacement thereof
(in which event the Owner must receive proof in the form of delivery of a
document signed by the manufacturer or of a report from an
independent third party which confirms the existence of said systemic
failure with reference to the model and series of the affected
equipment).
|
-
|
Business Day: means any
day other than a bank holiday in Madrid and Badajoz, with the express
provision that Saturday is not a Business
Day.
|
-
|
Financial Institutions:
has the meaning set forth in the Recital
(3).
|
-
|
Site 1: means parcel 7,
polygon 17, in the municipality of Casas de Don Pedro (Badajoz), with a
surface of 14.9186 Ha, registered with the Land Property Register of
Herrera del Duque, Volume 105, Book 8, Sheet 62, land property 1410,
identified in Annex 13.
|
-
|
Site 2: means parcel 10,
polygon 17, in the municipality of Casas de Don Pedro (Badajoz), with a
surface of 4.197 Ha, registered with the Land Property Register of Herrera
del Duque, Volume 105, Book 8, Sheet 52, land property 1401; parcel 8,
polygon 17, in the municipality of Casas de Don Pedro (Badajoz), with a
surface of 7.161 Ha, registered with the Land Property Register of Herrera
del Duque, Volume 105, Book 8, Sheet 41, land property 1395 and; parcel 9,
polygon 17, in the municipality of Casas de Don Pedro (Badajoz), with a
surface of 7 Ha, registered with the Land Property Register of Herrera del
Duque, Volume 105, Book 8, Sheet 40, land property 1394, identified in
Annex 13.
|
-
|
Authorized Equipment:
means the list of brands and models of the principal equipment or elements
that will make up the Solar Facilities and the Electrical Infrastructures
described in Annex
8 hereto.
|
-
|
|
-
|
Technical Specifications:
means the technical conditions for executing the Work that will be
prepared by the Contractor and delivered to the Owner in accordance with
Annex
2.
|
-
|
Phase 1: means the phase
mentioned in Recital 1.
|
-
|
Phase 2: means the phase
mentioned in Recital 1.
|
-
|
Phases: means Phase 1
and Phase 2.
|
-
|
Delivery Deadline: means
July 15, 2008.
|
-
|
***
|
-
|
***
|
-
|
Payment Milestones:
means the milestones for the payment of the Contract Price, as described
in Clause 4.2 below.
|
-
|
Specific Electrical
Infrastructure: means the entirety of
the electrical elements permitting the evacuation to the distribution grid
of the electrical power produced by each of the Solar Facilities,
including from the Solar Facilities to the specific transformer center for
such Solar Facility.
|
-
|
General Electrical
Infrastructure: means the entirety of
the electrical elements permitting the connection of each of the Solar
Facilities, from the specific transformer center, in order to permit the
evacuation of electrical power generated by each Solar Facility to the
distribution grid, including the Evacuation Line, the distribution and
sectioning center (centro de reparto y
seccionamiento) and supplemental elements of supervision,
monitoring and data collection.
|
-
|
Electrical
Infrastructure: collectively, the General Electrical
Infrastructures and the Specific Electrical
Infrastructures.
|
-
|
Solar Facility: means
the entirety of the electromechanical elements that allow for the
generation of low voltage (“LV”) electrical power, including from the
solar modules themselves, solar trackers, and inverters, to the LV meter,
with a peak unit capacity of between 115 and 122 kWp. All references in
this Contract to the Solar Facilities will make reference to the seventy
(70) facilities except in case the Contract is terminated for Phase 2. In
such a case, references to Solar Facilities will make reference to the
Solar Facilities of Phase 1, which size will be agreed by the Parties
according to Clause 3.
|
-
|
Evacuation Lines: the 20
kV output electrical evacuation line of the distribution center of the
General Electrical Infrastructure, necessary to connect such
Infrastructures to the substation of the power distribution company
(Iberdrola) to be
built in accordance with the agreement entered into between the Owner and
such distribution
company.
|
-
|
Change Order: means a
document signed by the Contractor and the Owner pursuant to which a change
is agreed upon in the Scope of Work, the Contract Price or the Execution
Schedule, or any other modification, as provided in this
Contract.
|
-
|
Solar Park: means the
entirety of the seventy (70) Solar Facilities having between 115 and 122
kWp of peak capacity and 100 kWe at the inverter, that must reach a total
peak capacity of 8.295 MWp, located at the Site, including the Electrical
Infrastructure and any other facilities that, in accordance with the terms
of this Contract, may be necessary for its Start-Up. References in this
Contract to the Solar Park will comprise the Solar Facilities, the
Electrical Infrastructure and other elements corresponding to both phases,
except in case the Contract is terminated for Phase 2. In such a case,
references to the Solar Park will only comprise the Solar Facilities, the
Electrical Infrastructure and other elements corresponding to Phase
1.
|
-
|
Guarantee Period: means
the period between the signing of the Provisional Acceptance Certificate
for the first Solar Facility until the moment where, having elapsed a term
of *** as from the signature of the Provisional Acceptance Certificate for
the Solar Park, conditions for the execution of the Final Acceptance
Certificate are met.
|
-
|
Production Guarantee Period:
means the period between Start-up of the Solar Park until ***
following execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Contract Price: The
price payable by the Owner to the Contractor for the performance of the
obligations contained in this Contract, the amount of which is set forth
in Clause 4 of the Contract. For purposes of this Contract, the
price corresponding to an individual Solar Facility shall be the amount
obtained by dividing the total Contract Price by the seventy (70) Solar
Facilities (or by the Solar Facilities corresponding to Phase 1 in case
the Contract is terminated for Phase 2 according to Clause
3).
|
-
|
Implementation Schedule:
means the schedule for the implementation of the Scope of Work,
which is attached as Annex
3 to this Contract.
|
-
|
Owner: means
SOLARGEN PROYECTOS E INSTALACIONES SOLARES, S.L., as well as any
company subrogating to its contractual position in accordance with the
provisions of this Contract.
|
-
|
Overall Test: means the
test described in Annex
4, to be performed as a prerequisite to the execution of the Solar
Park Provisional Acceptance Certificate to verify the proper operation of
all Solar Facilities and the Electrical Infrastructure. The Overall Test
will definitively verify the proper operation of the General Electrical
Infrastructure to absorb the power discharged by all Solar
Facilities.
|
-
|
Performance Tests: means
the tests described in Annex
4, to be performed as a prerequisite to the execution of each Solar
Facility Provisional Acceptance Certificate to verify the proper operation
of the corresponding Solar Facility and Electrical Infrastructures.
Pursuant to the provisions of Clause 5.2(1), each Performance Test will be
performed on a minimum of ten (10) Solar Facilities (with their
corresponding Electrical
Infrastructures).
|
-
|
Production Tests: means
the tests that will be performed at the end of the Production Guarantee
Period in order to determine compliance with the Production Guarantee set
forth in Clause 8.4, following the protocols set forth in Annex
4.
|
-
|
Start-up: means, with
reference to a particular Solar Facility and/or Electrical Infrastructure,
the point when all of the work required by this Contract has been
completed and all Performance Tests have been passed in accordance with
this Contract and the Annexes hereto, the Provisional Acceptance
Certificate has been executed and the Owner has received the corresponding
Final Start-up Certificate (as confirmed by the Legal Advisor). Reference
to Start-up of a Solar Park shall be understood to mean the point when all
Solar Facilities and corresponding Electrical Infrastructures have passed
the Overall Tests and comply with the above referenced
requirements.
|
-
|
RD 661: Royal Decree No.
661/2007, of May 25, which regulates activities involving the production
of power under special regime.
|
|
-
|
Subcontractors: means
the subcontractors with which the Contractor subcontracts all or part of
the works to be executed under this
Contract.
|
-
|
Work: means the work and
supplies to be provided by the Contractor pursuant to the provisions of
this Contract that will comprise work and supplies for Phase 1 and Phase 2
or, in case the Contract is terminated for Phase 2 according to Clause 3,
work and supplies for Phase 1.
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
2.1
|
Purpose
of the Contract
|
The
purpose of this Contract is the construction, start-up and delivery of the
Solar Park to the Owner pursuant to the terms set forth in this Contract
such that, upon issuance of the Final Start-up Certificate, the production
of power and sale thereof to the electric distribution grid may commence,
in accordance with applicable law and the Technical
Specifications.
|
2.2
|
Scope
of Work
|
(1)
|
According
to the terms and conditions of this Contract, the Contractor shall carry
out and shall be responsible for all of the equipment, services, supplies
and work comprising the Scope of Work. The Scope of Work includes each of
the following concepts, as well as all acts that, even if not expressly
mentioned in this Contract or in Annex
2, are necessary for the proper operation, performance and
commercial exploitation of the Solar Park, in each case in accordance with
the customary usage and practices in the industry for a project having
these characteristics, this Contract, the Technical Specifications, and
applicable law (without prejudice to the provisions of Clause
2.4(4)):
|
|
§
|
Design,
engineering (basic and detailed) and required technical
schedules.
|
|
§
|
Execution
of all aspects of the Scope of Work and the supply of all materials,
elements and equipment set forth in Annex
2, and the supply of all materials necessary and appropriate to
properly carry out the Scope of
Work.
|
|
§
|
Performance
of inspections, inventory of materials, performance controls, tests and
other analyses required under applicable law and in accordance with the
technical specifications and this
contract.
|
|
§
|
Transportation
to the Site of all materials, equipment, utilities, spare parts,
consumables and machinery for which the Contractor is responsible under
the Contract.
|
|
§
|
Direct
and indirect labor necessary to carry out the Scope of Work and all costs
and social charges associated with such
labor.
|
|
§
|
Demolition
and dismantling of the provisional facilities not required by the Owner
and conditioning and cleaning of the Site following issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Maintenance,
protection, security, custody and conservation of the equipment installed
or stored at the Site up to the signing of the Solar Park Provisional
Acceptance Certificate.
|
|
§
|
Preparation
and delivery to the Owner of all documentation within the scope of this
Contract, sufficiently in advance for the utilization thereof by the
Owner. In particular, the delivery of the documentation and manuals set
forth in Annex
2.
|
|
§
|
***
|
|
§
|
Training
of the Owner’s personnel in the operation and maintenance of the materials
and equipment acquired in accordance with the terms of Clause 6.7 of this
Contract.
|
|
§
|
Construction
of all necessary auxiliary facilities, their maintenance, cleaning and
security during the performance of the Work, including that performed in
compliance with the regulations for the Prevention of Occupational Risks
and the Social Security and Health Plan (Prevención de Riesgos
Laborales y el Plan de Seguridad y Salud); as well as the
demolition or dismantling of any temporary facilities not required by the
Owner and the conditioning and clearing of the Site following the issuance
of the Solar Park Provisional Acceptance
Certificate.
|
|
§
|
Supply
of spare parts pursuant to the provisions of Clause
6.3.
|
|
§
|
Provision
of material and human resources required to comply with the regulations
for the Prevention of Occupational Risks and the Social Security and
Health Plan, as well as the creation of the Social Security and Health
Plan.
|
2.3
|
Exclusions
|
2.4
|
Changes
in the Scope
|
(1)
|
Under
no circumstances may the Parties make any changes to the Scope of Work
contemplated by this Contract (of any kind, whether for expansions,
reductions or changes to any portion of the work and/or the items supplied
under this Contract), unless a Change Order has previously been
signed.
|
(2)
|
At
any time prior to Provisional Acceptance, the Owner may propose a change
to the Scope of Work by sending the Contractor a notice describing the
nature and scope of the change. Upon receipt of such notice, the
Contractor must send to the Owner, within a maximum period of ten (10)
Business Days, a communication that includes a complete proposal for the
changes in the Contract Price, deadlines and form of payment, or any other
changes that may be necessary in connection with the changes proposed by
the Owner. This communication shall also include a reasoned explanation of
the grounds and/or criteria used for the calculation of the new Contract
Price and/or deadline. However, the Contractor recognizes that in
accordance with the Direct Agreement, the approval of the Financial
Institutions is an essential requirement for the validity of the
changes.
|
(3)
|
Without
prejudice to the terms of the Direct Agreement, the Contractor may, at any
time during the performance of the Contract, propose changes to the Scope
of Work that it deems necessary or appropriate to improve the quality,
efficiency or safety of the Solar Park or the facilities or supplies that
make up the Solar Park. The Owner, at its discretion, may approve or
reject the changes proposed by the Contractor. The Parties will
execute a Change Order in the event that the modifications are approved by
the Owner.
|
(4)
|
In
addition, upon the entry into force, promulgation, derogation or change of
any mandatory legal provision after the execution of this Contract that
affects the Work, the Parties shall sign a document governing the changes
that must be made to the purpose of this
Contract.
|
(5)
|
The
Owner and the Contractor shall negotiate in good faith the effects on the
deadlines agreed to under this Contract that might occur as a result of
the changes requested within the context of the provisions of this Clause.
In any event, the prices applicable to any change in the Scope of Work
shall consist of the costs of the additional work or supplies arising
therefrom (reasonably justified to the Owner) plus ***% as the
Contractor’s margin.
|
3.
|
COMMENCEMENT
OF WORK
|
(1)
|
Without
prejudice to the entrance into force of this Contract, which occurs on the
date of its execution, the Parties agree that it will be an essential
requirement for the commencement of the Works of each of the Phases the
performance of the following conditions (hereinafter, the “Conditions Precedent”)
in relation to any of the Phases:
|
|
(i)
|
a
letter signed by the agent of the Financial Institutions has been
delivered to the Contractor in accordance with Annex
12 confirming the availability of the financing related to the
relevant Phase;
|
|
(ii)
|
a
copy of all the licences and authorisations necessary for the commencement
of the construction of the relevant Phase has been delivered to the
Contractor, with the exception of those that are inherent to the
construction activity and correspond to the Contractor according to Clause
6.6 (including, but not limited to, the Owner shall deliver local works
and activity licences (where activity licenses were necessary), the
administrative authorisation, the approval of the execution project of the
Electrical Infrastructure and the Solar Facilities, the connection point
and environmental authorisations which may be necessary). The Contractor
acknowledges that it received from the Owner prior to the signing of this
Contract copies of the licences and authorisations obtained, which were
obtained by the Owner for the carrying out of the project initially
planned by the Owner which was to be the construction of a 7MW solar park
on Site 1. If the amendments to the licences and authorisations initially
obtained by the Owner, or if the obtaining of new ones that would be
necessary for the construction of the Solar Park with its current
configuration, more burdensome conditions would arise from than those
contained in the licences and authorisations which have already granted to
the Contractor before the date hereof, the Parties will agree to the
amendments that, where appropriate, must be made to the Scope of the Work
and/or the Contract Price in the document established in section (iv)
below;
|
|
(iii)
|
the
Site of the relevant Phase is entirely available and accessible for the
commencement of the Work of that
Site;
|
|
(iv)
|
the
Contractor and the Owner have entered into an agreement which sets out:
(a) the dimension
of each of the Phases of this Contract (and, in particular, the Solar
Facilities comprising each of the Phases), (b) the definition of
Systemic Defect applicable if only Phase 1 of the Solar Park is executed,
(c) the price of
the perimeter fences and the monitoring system (Scada) of the tracker hubs
(cajas de concentración
de los seguidores) in accordance with the provisions of the last
paragraph of Clause 4.1(2) or, alternatively, the exclusion of such Works
from the Scope of the Work, (d) the increase of the
Contract Price that, where appropriate and calculated in accordance with
Clause 2.4(5), the Parties had agreed according to the samples on the Site
and the review of the licences and authorisations mentioned in (ii) above
and section (3) below, and (e) the Contract Price
for each of the Phases as an exclusive consequence of the abovementioned
items; and
|
|
(v)
|
the
Owner has paid the Contractor the amount established in Clause 4.2 (i) for
the relevant Phase in return for the simultaneous granting by the
Contractor of the corresponding Performance Bond in accordance with Clause
8.5 and - only if the Conditions Precedent related to Phase 1 have been
met- the Corporate Guarantee.
|
(2)
|
In
the event that the Conditions Precedent for Phase 1 established in (i)
through (iv) above are not met prior to 31 January 2008 (or if the
Performance Date of the Conditions of Phase 1 does not occur prior to the
tenth (10th)
business day following the date on which the Conditions Precedent for
Phase 1 would have been met), the Contractor and the Owner will be
entitled to terminate the Contract by serving the other Party a notice in
which the former states its intention to terminate the Contract, upon
which the Parties will be released from all obligations arising from the
Contract. Likewise, in the event that the Conditions Precedent for Phase 2
established in (i) through (iv) above are not met prior to 3 March 2008
(or if the Performance Date of the Conditions of Phase 2 does not occur
prior to the tenth (10th)
business days following the date on which the Conditions Precedent for
Stage 2 would have been met), any Party will be entitled to terminate the
Contract, but only with respect to the rights and obligations related to
Phase 2, by serving the other Party a notice in which the former states
its desire to terminate the Contract upon which the Parties will be
released from all obligations arising from the Contract with respect to
Phase 2. The above is without prejudice to purchase orders or orders that
the Parties, or companies belonging to their groups, had carried out or to
which they had agreed prior to, or on the same date, as the signing of
this Contract, which will remain in force. For clarification purposes, if
the total termination established in this section is not carried out,
these purchase orders or orders will fall into the Scope of Work and,
therefore, into the Contract Price, reducing the amount paid by the Owner
from the First Payment Milestone established in Clause 4.1 (i). If the
Contract is terminated only with respect to Phase 2, only the purchase
orders or orders corresponding to the Solar Facilities and/or Electrical
Infrastructure which had been integrated in Phase 1 will fall into the
Scope of Work, and the only reduction of the First Payment Milestone of
Phase 1 will be the amounts paid as equipments related to such
Phase.
|
(3)
|
Without
prejudice to paragraph three of this section, the Contractor declares that
it has examined the Site, its land and subsoil, its surroundings and its
accesses prior to signing the
Contract.
|
4.
|
PRICE
AND FORM OF PAYMENT
|
4.1
|
Contract
Price
|
(1)
|
The
Contract Price payable by the Owner to the Contractor in consideration for
the works to be performed by Contractor under this Contract shall be ***
Euros for both Phases. The document to be signed according to Clause 3 (1)
(iv) will include the price corresponding to each phase depending on the
number of Solar Facilities assigned to each phase. This amount shall be
increased by an amount corresponding to Value Added Tax (VAT) pursuant to
applicable law at any given time. The Contractor hereby acknowledges and
agrees that the Contract Price is a lump-sum, fixed, and final price, and
is not subject to any change or revision whatsoever on the basis of any
changes in the prices of labor, materials, equipment, exchange rates or
any other similar items, including a change in any taxes levied on the
scope of the work.
|
(2)
|
The
Contract Price includes all the costs and expenses associated with the
Contractor’s performance of work under the Contract, including those
specifically set forth in the Scope of Work. The Contract Price shall be
deemed to include, by way of
example:
|
|
§
|
taxes,
fees, industrial- and intellectual-property royalties on the equipment
supplied, Social Security and other encumbrances upon the supplied
equipment and materials in their country of origin or destination,
including, if applicable, the rights of free circulation in the European
Union and any other tax with respect to the importation of the Equipment
and the performance of the Work, except for the VAT on the actual Contract
Price. For purposes of clarification, the Price does not include
legalization fees or costs for permits and authorizations, which are the
responsibility of the Owner.
|
|
§
|
payroll
costs and the cost of equipment required for the Contractor’s performance
of the Work or to ensure the protection, security and proper performance
thereof.
|
|
§
|
the
cost of any insurance that must be taken out by the Contractor pursuant to
Clause 11.
|
(3)
|
In
the event of changes in the Scope of Work agreed to pursuant to the
provisions of this Contract, the price agreed to in the corresponding
Change Order shall apply.
|
(4)
|
Without
prejudice to the foregoing, in consideration for the maintenance and
security tasks to be performed by the Contractor prior to the execution of
the Solar Park Provisional Acceptance Certificate, the Owner shall pay to
the Contractor (in addition to the Contract Price), the portion of the
price contemplated in the Maintenance Agreement that is equivalent to the
percentage representing the Solar Facilities that have obtained a
Provisional Acceptance Certificate with respect to all Solar Facilities
contemplated by this Contract.
|
4.2
|
Payment
Milestones
|
|
The
Contract Price shall be paid by the Owner to the Contractor pursuant to
the payment schedule set forth below (each of the milestones set forth
below shall be deemed a “Payment
Milestone”):
|
|
(i)
|
On
the Condition Satisfaction Date of each Phase, an amount equal to ***%
percent of the Contract Price of the corresponding Phase, upon delivery of
the Performance Bond by the
Contractor.
|
|
(ii)
|
Based
on the monthly progress of the civil works involving earth moving,
leveling and foundation laying of each Phase, measured as 100 kWe Solar
Facilities whose foundations are completed, the Owner will pay up to a
maximum of *** percent (***%) of the Contract Price of the corresponding
Phase, upon presentation of the respective invoices by the
Contractor.
|
|
(iii)
|
Upon
each delivery to the Site of the module supports, inverters and trackers
of each Solar Facility and presentation of the corresponding invoices not
earlier than two (2) months prior to the dates indicated in the
Implementation Schedule, the Owner shall pay up to a maximum of *** (***%)
percent of the Contract Price corresponding to such Solar
Facilities.
|
|
(iv)
|
Upon
each delivery of the solar modules of each Solar Facility to the Site and
upon presentation of the corresponding invoices not earlier than the dates
indicated in the Implementation Schedule of each Phase, the Owner shall
pay up to a maximum of *** (***%) percent of the Contract Price
corresponding to such Solar
Facilities.
|
|
(v)
|
Based
on the monthly progress of the mechanical assembly of the module supports,
solar trackers and the modules mounted thereon, as well as the
installation of the inverters and the transformer center, measured as
Solar Facilities of 100 kWe whose facilities up to the transformer center
have been completed, the Owner will pay up to a maximum of *** (***%)
percent of the Contract Price of the corresponding Solar Facilities, upon
presentation of the respective
invoices.
|
|
(vi)
|
Upon
the execution of each Provisional Acceptance Certificate for a Facility,
the Owner shall pay *** (***%) percent of the Contract Price corresponding
to such Solar Facility (together with the remaining portion of the
Contract Price, if any, that was not previously paid and that corresponds
to Work completed by the Contractor under this Contract in respect of such
Solar Facility). The last Solar Facility payment shall be made
concurrently with the execution of the Solar Park Provisional Acceptance
Certificate.
|
4.3
|
Invoicing
System and Form of Payment
|
(1)
|
Once
the Contractor deems that a Payment Milestone has been achieved, the
Contractor shall give written notice thereof to the Owner and the
Technical Advisor, attaching thereto the invoice and any documentation
that may be necessary to demonstrate achievement of the corresponding
Payment Milestone (including, for this purpose, all of the documentation
that must be furnished by the Contractor to the Owner at any time,
pursuant to the provisions of Annex
2).
|
(2)
|
Within
fifteen (15) Business Days following receipt of the above-mentioned
notice, the Owner and the Technical Advisor shall confirm the achievement
of the corresponding Payment Milestone. Within such period, the Owner and
the Technical Advisor shall communicate in writing to the Contractor:
(i) their
agreement that the corresponding Payment Milestone has been achieved, in
which case the Owner and the Technical Advisor shall provide documentary
confirmation by approving the corresponding invoice, or (ii) that the Payment
Milestone has not been fully achieved, in which case the Owner and/or the
Technical Advisor must specify in writing to the Contractor a
detailed and reasoned explanation of the work pending performance in order
for the Payment Milestone to be deemed to have been
achieved. In the event that the Owner and/or the Technical
Advisor fail to respond to the Contractor within the above-mentioned
period of fifteen (15) Business Days, due solely to the failure of the
Contractor to provide all documentation required to verify achievement of
the Payment Milestone, the Owner and the Technical Advisor agree to
request the same within the above period of fifteen (15) Business Days.
The Owner and the Technical Advisor will be allotted another ten (10)
Business Days to issue their response, counting from the date of receipt
of all requested documentation.
|
(3)
|
If
the Owner and/or the Technical Advisor do not agree that a Payment
Milestone has been achieved, the Owner shall be entitled to return the
corresponding invoice until the Contractor has completed the work in
accordance with the provisions of this Contract. However, if the Parties
agree that the disagreement involves only part of the work included in the
Payment Milestone, the Owner shall pay the invoice amounts corresponding
to the work not affected by the dispute, with the rest remaining subject
to full performance and delivery by the Contractor in accordance with the
terms of this Contract.
|
(4)
|
If,
following the period referred to in subsection (2) above, the Owner and/or
the Technical Advisor have not responded, the Contractor may send a demand
notice to the Owner and the Technical Advisor communicating such fact and
allowing an additional period of five (5) Business Days for confirmation
of their agreement or disagreement as to the achievement of the respective
Payment Milestone. If, upon expiration of such period, the Owner and/or
the Technical Advisor still have not responded, achievement of the Payment
Milestone shall be deemed accepted by the Owner and the Technical
Advisor.
|
(5)
|
Under
no circumstances shall the Owner’s or the Technical Advisor’s agreement to
a Payment Milestone imply acceptance of the Work associated therewith,
which acceptance shall in any event remain conditioned upon passing the
Performance Tests and executing the respective Provisional Acceptance
Certificate and, ultimately, the Final Acceptance
Certificate.
|
(6)
|
Payments
shall be made by the Owner to the Contractor via bank transfer to the bank
account designated by the Contractor within *** Business Days following
the date on which the Owner accepted the corresponding Payment Milestone
(or on the date on which the Payment Milestone was deemed accepted by the
Owner, in accordance with subsection (4) above). On an exceptional basis,
the payment corresponding to the first Payment Milestone shall be paid by
the Owner on the Condition Satisfaction Date of each Phase (with respect
to such payment, approval of a Payment Milestone by the Contractor and the
Owner pursuant to the above provisions is not
required).
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL
ACCEPTANCE
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
(1)
|
The
Contractor hereby undertakes to perform the Work in accordance with the
Implementation Schedule for each Phase attached hereto as Annex
3, such that the Solar Park shall have all technical attributes
required for issuance of the Final Acceptance Certificate (and the same
has been requested in accordance with Clause 2.4) no later than the
Delivery Deadline.
|
(2)
|
The
dates for performance specified in the Implementation Schedule and, in
particular, the Delivery Deadline, are fixed and final, and may not be
postponed, and the performance deadlines may not be extended, except under
the following circumstances:
|
|
(i)
|
due
to agreed-upon changes in accordance with the provisions of Clause 2.4,
provided that such changes include an extension of the
deadlines;
|
|
(ii)
|
due
to a breach by the Owner giving rise to a delay in the Work (including,
specifically, delays in procuring authorizations and licenses for which it
is responsible), provided that such breaches are not attributable to
actions, omissions or breaches by the
Contractor;
|
|
(iii)
|
suspension
of the Work in accordance with the provisions of Clause 13, except in the
event of suspensions attributable to the Contractor;
or
|
|
(iv)
|
the
occurrence of an event of Force Majeure that
reasonably justifies an extension of the deadlines established in the
Implementation Schedule.
|
(3)
|
The
Contractor must inform the Owner of the alleged facts or causes, in
writing and within a maximum period of ten (10) Business Days after the
Contractor becomes aware thereof, and the communication must be
accompanied by all available information and data on such date that
substantiate such facts and the consequences thereof on the Work, the
extension (if such extension can be determined) proposed by the
Contractor, and a detailed explanation of the measures adopted to mitigate
the consequences thereof.
|
5.2
|
Performance
Tests and Provisional Acceptance
|
(1)
|
Upon
completion of the construction of a group of at least ten (10) Solar
Facilities, or of the Solar Park, the Contractor shall notify the Owner so
that, within a maximum period of seven (7) Business Days, the Performance
Tests or the Overall Test may be commenced . All Tests shall be conducted
in accordance with the Test procedures and protocols attached hereto as
Annex
4. The Contractor agrees that the Performance Tests and
the procedures set forth in this Clause shall begin only when at least ten
(10) Solar Facilities are ready for provisional
acceptance.
|
(2)
|
Once
the Owner and the Technical Advisor have verified that the Performance
Tests (or, if applicable, the Overall Test) have been passed in accordance
with the standards set forth in this Contract and that the Owner has
received all documentation set forth in the Scope of Work, the Contractor
and the Owner shall execute the corresponding Provisional Acceptance
Certificate for the Solar Facilities delivered or the Provisional
Acceptance Certificate for the Solar Park, as applicable, provided that
the following conditions have been
met:
|
|
a)
|
The
Work corresponding to the applicable Solar Facilities, or, if applicable,
the Solar Park, has been satisfactorily
completed.
|
|
b)
|
All
of the documentation that the Contractor must submit in accordance with
the provisions of Annex
2 has been submitted to the
Owner;
|
|
c)
|
The
spare parts specified in Clause 6.3 have been made available to the Owner;
and
|
|
d)
|
With
respect to the Solar Park Provisional Acceptance Certificate, the
Contractor has delivered to the Owner the Guarantee Bond in the amount
specified in Clause 8.5.
|
(3)
|
The
deadlines granted to the Contractor for completion of pending punch list
items upon execution of a Provisional Acceptance Certificate shall not be
considered an extension of the deadlines set forth in this Contract, and
the Contractor shall indemnify the Owner for any damages that the Owner
may incur as a result thereof pursuant to Clause 5.2(a)
above.
|
(4)
|
In
the event that the Owner does not execute the Provisional Acceptance
Certificates for the respective Solar Facilities (or, if
applicable, the Solar Park) within seven (7) Business Days of verifying
compliance with the stipulated requirements, the Contractor may request in
writing that the Owner execute the respective Certificate within an
additional period of five (5) Business Days. If the Owner has not executed
the new Provisional Acceptance Certificates for the Solar
Facilities (or, if applicable, the Solar Park) within said
period, the conditions required in this clause for execution of the
corresponding Certificate have been satisfied, it shall be understood that
provisional acceptance has been achieved, except to the extent
discrepancies exist as to the performance of the conditions required by
the same, in which event the Parties shall submit the matter to
arbitration in accordance with the provisions of Clause 20
(2).
|
(5)
|
Within
thirty (30) days following the execution of the Solar Park Provisional
Acceptance Certificate, the Contractor must: (i) remove from the Site any
material used in the construction, as well as any equipment, machinery,
tools, vehicles and temporary structures that are not necessary during the
Guarantee Period; (ii) clean the Site and remove any debris or waste; and
(iii) deliver the “As Built” Plans for the Solar
Park.
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
6.1
|
Prevention
of Occupational Risks
|
(1)
|
The
Contractor shall be obligated, in compliance with current legislation, to
perform the works under this Contract in such a way as to ensure the
safety of workers, and to apply the preventive activity principles set
forth in Law 31/1995 and its implementing
regulations. Accordingly, the Contractor shall be responsible
for designing the construction process in accordance with the provisions
of Royal Decree No. 1627/1997, which establish minimum safety and
health provisions for construction work, and in its the other implementing
or supplemental regulations, such that the safety of the activities that
are performed simultaneously or consecutively is ensured, and the safety
of third parties present in the vicinity of the work site is also
ensured.
|
(2)
|
In
particular, as part of the scope of this Contract, the Owner has prepared
a Safety and Health Study, and furthermore, in compliance with the
provisions of Royal Decree No. 1627/1997, the Contractor must prepare
a Workplace Safety and Health Plan (Plan de Seguridad y Salud en
el Trabajo), both specifically for the work provided for within the
scope of this Contract. The Contractor hereby represents that they
contain, or will contain, all requirements of such Royal Decree and its
implementing rules and regulations (including the provisions of the
autonomous communities that apply, if
any).
|
(3)
|
Furthermore,
the Owner (at the request of the Contractor) shall appoint a safety and
health coordinator, who shall have the obligations set forth in Royal
Decree 1627/1997, and who shall be responsible for ensuring that all of
personnel of the Contractor, the Subcontractors and of the suppliers of
equipment or materials under this Contract comply with the safety
requirements established in current legislation. Both the Owner and the
Contractor shall be obligated to respect and comply with their respective
obligations, as imposed by Royal Decree 1627/1997 and other applicable
rules and regulations.
|
(4)
|
The
Owner reserves the right to evaluate security during the construction
period. This does not imply that Owner has assumed
responsibility with respect to security measures taken or the preparation
of documentation or the content of such documentation referred to in this
Clause, without prejudice to the obligations and responsibilities under
law that attach as a result of Owner’s capacity as a developer. To this
effect, the Contractor shall provide to the Owner all documentation that
Owner may reasonably require in order to confirm the performance of the
obligations set forth in this
Clause.
|
(5)
|
For
clarification purposes, in no event shall the Contract Price be increased
if, as a result of a security check, legal review or technical risk
review, the Contractor is required to take additional measures designed to
guarantee compliance with applicable rules and regulations for the
prevention of occupational risks.
|
6.2
|
Obligation
to Provide Access to the Site
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
6.4
|
Quality
Control
|
|
The
Contractor must perform a quality control inspection of the modules, using
standards for acceptance and rejection and testing and measurement
protocols that are acceptable to the Technical Advisor. For
these purposes, the Contractor must inform the Technical Advisor of the
quality control inspections that it is going to use in the performance of
this Agreement, and detail the respective acceptance and rejection
standards and testing and measurement protocols, such that the Technical
Advisor can approve the same prior to the date on which such modules are
expected to be received under this
Contract.
|
6.5
|
Regulatory
Compliance
|
(1)
|
The
Contractor undertakes to observe and comply with the regulations
applicable to the performance of the Work, without prejudice of the
provisions of subsection (3) below. In particular, the
Contractor must ensure compliance with regulations regarding classified
activities, safety, health, and environmental protection. In
particular, the Contractor shall be the only responsible party for
compliance with applicable law and regulations with respect to (i) ***,
and (ii) environmental protection during the period of manufacture,
construction, erection and Tests until the Solar Park Provisional
Acceptance Certificate has been
executed.
|
(2)
|
The
Contractor represents that it is current in the payment of wages and
Social Security contributions for the professionals hired by the
Contractor to perform the services covered by this Contract. Accordingly,
the Contractor agrees to show to the Owner all documents that the Owner
may reasonably request evidencing compliance with wage, tax and Social
Security obligations (including, without limitation, certificates of good
standing and compliance with tax obligations and the TC1 and TC2 Social
Security dues bulletins).
|
(3)
|
In
the event of any change in the applicable rules and regulations after the
date on which this Contract is signed, the Parties shall proceed in
accordance with the provisions of Clause 2.4(4) above. In the event that
either Party does not sign the applicable change document, the Contractor
shall continue to perform the work in compliance with the rules and
regulations previously in force, and shall not assume any responsibility
for any breach of the applicable new rules and
regulations.
|
6.6
|
Permits
and Authorizations
|
(1)
|
***. Further,
both parties agree to follow the joint application procedure provided for
in the last paragraph of subsection 1 of Section 12 of RD 661 and Section
11 of Order of January 27, 2007 of the Regional Economy and Work Ministry
of Extremadura, such that the applications for the certificate relating to
start-up and the definitive registration of the Solar Facilities and the
Electrical Infrastructure shall be made jointly. The Parties recognize
that making such joint application is an essential element for both
Parties. Such application shall be submitted by the Contractor
before the Delivery Deadline, although in such submission (a) it shall be the
responsibility of the Contractor to provide all information and
documentation necessary to apply for the start-up certificate referred to
in Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, and
(b) it shall be
the responsibility of the Owner to provide all information and
documentation necessary to apply for the definitive registration of the
Solar Facilities and the Electrical Infrastructure with the Administrative
Register of Solar Facilities Producing Power included within the Special
Regimen, in accordance with the terms of Section 12 of RD 661. Once
presented, the handling of the applications for the start-up certificate
and the definitive registration of the Solar Facilities and the Electrical
Infrastructure shall be the responsibility of the Owner, without prejudice
to the Contractor’s obligation to cooperate with the Owner in all respects
in accordance with the terms of Clause
6.11.
|
(2)
|
For
clarification purposes:
|
|
(i)
|
if,
due to causes attributable to the Contractor, the application for the
Final Start-up Certificate is not presented in accordance with subsection
(1) above with respect to one or more Solar Facilities or to the Solar
Park on or before the Delivery Deadline,
and/or
|
|
(ii)
|
prior
to September 29, 2008, the Owner has not have obtained the Final Start-up
Certificate as a result of design defects, defective or inadequate
equipment or performance of the Work or of defects, imprecision or
omissions in the documentation or in the technical information delivered
by the Contractor,
|
6.7
|
Training
of the Owner’s Personnel
|
6.8
|
Designation
of Project Director
|
(1)
|
The
Contractor shall name a Project Director with an officially recognized
technical degree and relevant industry experience with similar
projects. The appointment of the Project Director must be
submitted to the Owner for approval. The Owner may not reject a proposed
candidate without just cause.
|
(2)
|
The
Project Director shall be responsible for overseeing proper performance of
the Work and for directing, managing, and supervising all of the
activities necessary for the implementation of the services agreed to by
the Contractor in accordance with the terms and time periods specified in
this Contract. Further, the Project Director shall be the
principle contact between the Contractor and the Owner during the term of
this Contract.
|
(3)
|
Without
prejudice to the foregoing subsection, in accordance with the terms of
this Contract and applicable law, the Contractor shall be responsible for
the actions of the Project Director and any and all consequences arising
from such actions.
|
6.9
|
Taxes
and Import Duties
|
6.10
|
Intellectual
and Industrial Property Rights
|
6.11
|
Cooperation
|
7.
|
OBLIGATIONS
OF THE OWNER
|
|
(i)
|
To
comply with its payment obligations under this
Contract;
|
|
(ii)
|
To
provide to the Contractor, its Subcontractors and employees, during the
effective term of this Contract, access to the Site to fulfill their
contractual obligations, including appropriate access to highways and
access roads to perform the Work. For these effects, the Owner will
execute, at its cost and expense, agreements with landowners that procure
all necessary easements or land use
rights;
|
|
(iii)
|
Subject
and without prejudice to the obligations of the Contractor under Clauses
6.6 and 2.2 of his Contract, the Owner shall negotiate and obtain, at its
own cost and expense, the permits required for Final Start-Up and
operation of the Solar Park, including the Final Start-up Certificate.
Specifically, with respect to the joint application procedure referred to
in Clause 6.6 of this Contract, the Owner agrees to provide all
documentation and information required to apply for the definitive
registration of the Solar Facilities and the Electrical Infrastructure
with the Administrative Register of Solar Facilities Producing Power
within the Special Regime, in accordance with the terms of Section 12 of
RD 661, upon the terms of such Clause
6.6;
|
|
(iv)
|
To
cooperate with the Contractor, to the extent necessary, in order to avoid
any impact on the Implementation Schedule or in the performance of the
works by the Contractor;
|
|
(v)
|
To
appoint a project coordinator to act on behalf of the Owner in the
performance of matters associated with the Contract and who must possess
sufficient powers to represent the
Owner;
|
|
(vi)
|
To
provide to the Contractor all of the cooperation that the latter may
reasonably request in connection with the implementation of the Work and
compliance with the Contractor’s obligations under this
Contract. The Owner shall submit to the Contractor all
documentation or information that the Contractor may reasonably request in
connection with the Solar Park and that is available to the
Owner.
|
8.
|
GUARANTEES
|
8.1
|
Solar
Module Degradation Guarantee
|
|
The
Contractor guarantees the durability of the solar modules during the
Guarantee Period, in accordance with the schedule of guarantees made by
the manufacturer of the modules set forth on Annex
6 of this Contract. Upon expiration of the Guarantee
Period, the Contractor undertakes to assign to the Owner its rights under
the module supplier guarantees through the remainder of the 25-year useful
life of the modules.
|
8.2
|
Solar
Module Capacity Guarantee
|
(1)
|
The
Contractor guarantees that the total peak capacity of the Solar Park is
equal to or higher than the total contracted capacity for both Phases of
8,295 kWp (which will be confirmed by the manufacturer’s photoflash
certificates). In case the Contract is terminates for Phase 2 according to
Clause 3, the total peak capacity of the Solar Park will be the result
from multiplying the number of Solar Facilities assigned to Phase 1 by the
Parties by 118.5 kWp. In addition, all certificates for each module shall
be within the rated peak capacity margin of ***% and all aggregate
certificates for each of the Solar Facilities shall be within the rated
peak capacity margin of ***% (although the Solar Park aggregate can only
have a margin with respect to the above referenced peak capacity of ***%,
in which case the Contract Price shall be reduced proportionately in
accordance with the final reduced peak capacity and the corresponding
amount of the final Payment Milestone contemplated in Clause 4.2 reduced
accordingly).
|
(2)
|
In
the event that (i) the total sum of the certificates is less than the
contracted 8,295 kWp or the kWp fro Phase 1 in case of partial termination
of the Contract (unless it is within the permitted margin for the Solar
Park pursuant to subsection (1) above), or (ii) the certificates do not
comply with the above referenced margins, the Contractor shall replace, at
its expense, solar modules as needed to increase the total peak capacity
of the Solar Park to the minimum permitted under subsection (1) above, or
those modules whose individual capacity is inferior to the aforementioned
tolerance.
|
(3)
|
If,
as of the date set forth in Clause 14.1(1)(i), the sum of the
manufacturer’s photoflash certificates demonstrate the peak capacity of
the Solar Park is less than the referenced total peak capacity (unless it
is within the permitted margin for the Solar Park set forth in subsection
(1) above), the Owner may terminate the Contract for Contractor breach in
accordance with the terms of Clause 14.1, and pay the indemnity set forth
in such Clause.
|
(4)
|
The
Owner reserves the right to perform capacity tests on the solar module
samples that have been provided at the CIEMAT, CENER or IFE-Frauhofer
laboratories, in accordance with the applicable IEC (International
Electrotechnical Commission) standard in order to confirm their compliance
with the capacity specified by the manufacturer and guaranteed by the
Contractor. The results thereof shall be binding on the Parties. In the
event that such results confirm that the capacity of the modules does not
fall within the tolerance guaranteed by the Contractor, the Contractor
shall bear the costs of such tests and shall immediately replace the
entire batch of modules corresponding to the tested samples, except to the
extent that the modules failing the capacity test can be identified, in
which case, only those modules shall be
replaced.
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
8.3.1
|
Design, Assembly and
Performance Guarantee
|
|
(1)
|
The
Contractor guarantees during the Guarantee Period that the procedures
followed for the design of the facilities and for the performance of the
work are of the required quality and conform to the specifications
contained in this Contract.
|
(2)
|
The
Contractor is obliged to repair or, if necessary in its opinion, to supply
totally new, and reinstall free of charge to the Owner, those parts or
components of the facilities included in the Scope of Work that fail
during the Guarantee Period due to design, assembly or performance
defects.
|
(3)
|
The
provisions of subsections 8.3(2) to (8) below with respect to the
Materials Quality Guarantee shall apply, mutatis mutandis, to
the guarantee provided under this
subsection.
|
8.3.2
|
Materials Quality
Guarantee
|
(1)
|
The
Contractor guarantees that all the materials and components used in the
manufacture, assembly and Start-up of the Solar Park are of the required
quality and conform to the specifications for the equipment and the
technical documents contained in the Annexes to this
Contract. The Contractor further guarantees a minimum stock of
spare parts to the Owner in accordance with the terms of Clause 6.3 and
Annex
5 of this Contract.
|
(2)
|
The
materials quality guarantee will enter into force on the date of issuance
of the relevant Solar Park Provisional Acceptance Certificate and shall
remain in force until the Solar Park Final Acceptance Certificate is
signed. If the Solar Park or a portion thereof, cannot be commercially
operated during the Guarantee Period for reasons attributable to the
Contractor, the Guarantee Period shall be extended (only as regards the
affected facilities) for a period equal to the period during which the
corresponding facilities are not operating. For this purpose,
the parties shall record in writing the periods during which operation is
suspended and the corresponding extensions of the
guarantee.
|
(3)
|
During
the Guarantee Period, the Contractor is required, in its
discretion:
|
a)
|
To
replace any material and equipment that do not comply with what was agreed
upon or required pursuant to this Contract, or that are inadequate or of a
deficient quality; and
|
b)
|
To
adjust, repair or replace any equipment exhibiting any design, materials,
manufacturing, operation, or performance defect. If a Systemic Defect
exists with respect to any equipment or components supplied under this
Contract, the Contractor shall carry out, at its expense, the redesign
and/or modifications necessary to cure such problem in accordance with the
Owner’s requirements.
|
(4)
|
The
adjustments, repairs or replacements must be performed within the shortest
period that is reasonably possible (and, in any event, no later than
fifteen (15) days from the time the defect is detected), in a manner that
is least prejudicial to the Owner and taking all action needed to cause
the least possible harm to the operation of the overall facilities of the
Solar Park.
|
(5)
|
Repairs,
adjustments, alterations, replacements or maintenance that may be
necessary because of the normal wear and tear of on the facilities
provided under this Contract or caused by misuse or negligent use of the
equipment by the Owner or by third parties (other than the Contractor or
its Subcontractors) or because of the use of the equipment supplied to
Owner in a manner that does not conform to the technical specifications,
are all excluded from the scope of the guarantee. For
clarification purposes, it shall be understood that the Owner (or third
parties acting on its behalf) has used equipment in the intended manner
when such use conforms to the operation and maintenance manuals delivered
to the Owner by the Contractor pursuant to this Contract. This
guarantee may not be enforced in the event of the inaccessibility of the
Site, provided that the Contractor has notified the Owner of the existence
of such inaccessibility, or, in the events of Force Majeure (for such
time as exist the circumstances preventing the provision
thereof).
|
(6)
|
The
obligations arising from the guarantee set forth in this section shall be
fulfilled by the Contractor at its sole cost and expense and free of any
charges or expenditures by the Owner, and the Contractor shall bear the
expenses arising as a result thereof for the Owner, such as demolition and
disassembly, construction, carting, insurance and packaging for returned
materials and their replacement, assembly and supervision, taxes and the
like.
|
(7)
|
All
repaired or replaced material shall carry a new guarantee period of the
following duration from the date of repair or
replacement:
|
|
(i)
|
if
repaired, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is longer;
and
|
|
(ii)
|
if
replaced, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is
longer.
|
(8)
|
The
Contractor guarantees the availability of spare parts for the modules,
inverters and solar trackers during the Guarantee Period and during the
entire useful life of each Solar Facility, in the latter case provided the
Maintenance Agreement remains in force. The Contractor shall provide such
guarantee on the following terms:
|
|
(i)
|
With
respect to the module, inverter or solar tracker spare parts that are
manufactured by the Contractor or by companies of its group (currently
headed by Sunpower Corporation), the Contractor shall ensure that such
spare parts continue to be manufactured or, in the event that the
Contractor or the companies of its group do not manufacture spare parts
identical to those already installed, that spare parts for modules,
inverters or solar trackers of similar characteristics (and, in the case
of modules, of equal or greater capacity) are available, provided they do
not entail a reduction in the guaranteed performance of the Solar
Park.
|
|
(ii)
|
With
respect to the module, inverter or solar tracker spare parts that are not
manufactured by the Contractor or by companies of its group, the
Contractor shall use reasonable efforts to (a) cause the respective
suppliers to continue to manufacture such spare parts or other spare parts
with similar characteristics (and, in the case of modules, of equal or
greater capacity), provided they do not entail a reduction of the
guaranteed performance of the Solar Park, or (b) obtain such spare parts
with similar characteristics from other vendors with technical
capabilities that are at least similar to the original
ones. Should the Contractor become aware that an original
vendor intends to stop manufacturing such spare parts, it shall so notify
the Owner so that the Owner may order, through the Contractor, the spare
parts it deems appropriate, provided they are available on the
market.
|
8.4
|
Solar
Park Production Guarantee.
|
(1)
|
The
Contractor guarantees to the Owner that the aggregate electric output of
the Solar Park during each of the *** periods included in the Production
Guarantee Period shall reach the PR guaranteed pursuant to Annex
10 (the “Guaranteed PR”), for
each determined irradiance and temperature condition, and that in no event
shall it fall beneath the PR minimum set forth in such Annex (the “Minimum
PR”).
|
(2)
|
A
Production Test shall be performed at the end of each *** period dividing
the Production Guarantee Period in order to confirm the electrical
output. For these purposes, within the forty-five (45) days
prior to the termination of the *** period following the commencement date
of the Production Guarantee Period, and within the forty-five (45) days
prior to the termination of the Production Guarantee Period, the
Contractor shall notify the Owner of such circumstance so that the Parties
may agree upon a date the perform the Production Tests for the
corresponding *** period (which, in no event may be later than the date
which is fifteen (15) Business Days following the date of termination of
the period which is *** following the commencement date of the Production
Guarantee Period or the termination date of the Production Guarantee
Period, as applicable). The following shall apply to the results of the
Production Tests for the Solar
Park:
|
|
(a)
|
If
the actual measured output of the Solar Park is less than the Guaranteed
PR for the corresponding *** period (as such term is defined in Annex
10) but is greater than the Minimum PR for such period, the
Contractor shall pay to the Owner the penalties set forth in Annex
10, up to a maximum of ***% of the Contract Price.
|
|
(b)
|
If
the actual measured output of the Solar Park is less than
the Minimum PR for the corresponding *** period, the
Owner may elect to: (i) return the entire
Solar Park to the Contractor (or the part thereof that was not rejected in
the event of a partial termination in accordance with the terms of Clause
14.1), the Contractor then being obligated to return the entire Contract
Price paid by the Owner pursuant to this Contract and to indemnify the
Owner for damages pursuant to Clause 14.1(5), or (ii) return the Solar
Facilities causing the failure to achieve the Minimum PR to the
Contractor, the Contractor then being obligated to return the portion of
the Contract Price corresponding to such Solar Facilities and to indemnify
the Owner for damages pursuant to Clause 14.1(5) that correspond to the
returned Solar Facilities.
|
(3)
|
If
the Guaranteed PR is reached in the Production Tests for each *** period,
or if the Contractor shall have paid the required penalties for achieving
an output between the Minimum PR and the Guaranteed PR, the Parties shall
execute a certificate of agreement. The execution of such
certificate corresponding to the second *** period for the Guaranteed
Production Period shall grant the Contractor the right to require the
Owner to return the Guarantee Bond in force at the time and replace the
same with a new Guarantee Bond in an amount equal to ***% of the Contract
Price. The same provisions of this subsection shall also be
applied to the Solar Facilities, if any, that the Owner did not return in
accordance with subsection
8.4(2)(b).
|
(4)
|
The
Contractor shall not be responsible for breach of the guarantees in the
event that such failure was caused by the circumstances described in
Clause 8.3.2(5) above or by excessive failures of the grid coupled with
the disconnection of the inverters for exceeding the conditions detailed
in their technical specifications.
|
|
Further,
in the event that a Systemic Defect arises during a Production Guarantee
Period, the data from the Solar Park as a whole shall not considered for
purposes of the Production Guarantee during the time the Contractor is
replacing the equipment affected by such Systemic Defect, up to a maximum
of three (3) months. Thus, in the event that the Contractor
takes more than three (3) months to replace the Solar Park equipment
affected by a Systemic Defect, only that three (3) month period shall
remain in the Production Guarantee Period. For this purpose, the parties
shall record the suspension periods and corresponding extensions of the
Production Guarantee in writing.
|
|
For
clarification purposes, the appearance of a Systemic Defect shall obligate
the Contractor to replace all equipment of the same model and
manufacturer, regardless of whether they have manifested such defect at
the time of their replacement.
|
8.5
|
Bonds
|
(1)
|
On
the Condition Satisfaction Date of Phase 1, the Contractor shall deliver
to the Owner the Performance Bond, as per the form attached hereto as
Annex
7, in an amount equivalent to ***% of the Contract Price
corresponding to such Phase. on the Condition Satisfaction Date of Phase
2, such Performance Bond will be replaced by another one in an amount
equivalent to ***% of the total Contract Price. The Performance Bond shall
guarantee the performance by the Contractor of any payment obligation for
which the Contractor is responsible from the commencement of the Work
until the date of execution of the Solar Park Provisional Acceptance
Certificate (for any reason, including but not limited to the return of
the amounts paid by the Owner, under this Contract, and penalties or
compensation for damages and losses, including the performance by the
Contractor of its obligations during the portion of the Guarantee Period
prior to the execution of the Solar Park Provisional Acceptance
Certificate).
|
(2)
|
As
a requirement for the execution of the Solar Park Provisional Acceptance
Certificate, the Contractor shall deliver to the Owner the Guarantee Bond
(in exchange for the return of the Performance Bond by the Owner), in an
amount equal to ***% of the Contract Price (either of the total Contract
Price or of the corresponding part in case only Phase 1 is executed). The
Guarantee Bond shall conform to the form attached hereto as Annex
7 and shall guarantee the Contractor’s compliance with its
obligations during the Guarantee Period (beginning from the execution of
the Solar Park Provisional Acceptance Certificate). However, once the
Performance Tests corresponding to the second *** period of the Production
Guarantee Period have been performed and the written agreement referred to
in Clause 8.4(3) has been executed, the Contractor shall have the right to
replace the Guarantee Bond delivered to the Owner with a new Guarantee
Bond in an amount equal to ***% of the Contract
Price.
|
(3)
|
The
Performance Bond and the Guarantee Bond shall be issued by a financial
institution with a minimum “A” rating by Standard & Poor’s Corporation
or the equivalent from Moody’s Investors Services Inc., and shall be
enforceable, in whole or in part, on demand by the Owner, in the event of
the Contractor’s breach of its obligations under this
Contract.
|
(4)
|
The
delivery of the bonds provided under this section shall in no way limit
the Contractor's liability under this Contract, as the bonds only
constitute a means to guarantee the performance of the obligations assumed
by the Contractor.
|
(5)
|
If
the Contract Price is amended pursuant to Change Orders, the Contractor
must update the amount of the Performance Bond. To such end, the
Contractor must deliver to the Owner (within fifteen (15) Business Days
following the execution of the corresponding Change Order), another bond
in the updated amount, in the form attached hereto as Annex
7.
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
(1)
|
Within
forty-five (45) days prior to the passage of *** from the date on which
the Solar Park Final Start-Up Certificate has been obtained, the
Contractor shall give notice thereof to the Owner in order for both
Parties to agree upon a date to analyze the status and condition of the
Solar Park (which shall not occur later than the Guarantee Period
expiration date).
|
(2)
|
If
such inspection does not reveal the presence of defects, the Parties shall
proceed to execute the Final Acceptance Certificate, at which time the
Owner shall return the Guarantee Bond to the
Contractor.
|
(3)
|
If
such inspection finds that defects are present that affect the
Contractor's obligations during the Guarantee Period, the Parties shall
sign a certificate specifying the defects, if any, that must be corrected
within a period of forty-five (45) days of the date of execution of the
corresponding certificate, or within such shorter period that the Parties
may agree upon.
|
|
Once
such defects have been corrected by the Contractor within the specified
period, a new inspection shall be performed, and if the defects have been
remedied, the Parties shall proceed to execute the Final Acceptance
Certificate, and the Owner shall return the Guarantee Bond to the
Contractor.
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF
RISK
|
(1)
|
The
Owner and the Contractor expressly agree that the actual transfer of
ownership of the facilities and equipment covered by this Contract will be
made, for all contractual purposes, when each of the same shall have been
paid for in full by the Owner. With respect to the solar modules, module
supports and trackers, ownership thereof will be transferred to the Owner
upon payment of the respective invoice as provided in Clause 4, whereupon
the Owner will become the owner of the solar modules, the module supports
and the trackers included in such
invoice.
|
(2)
|
Without
prejudice to the foregoing, or to the Contractor’s obligations during the
Guarantee Period, the possession and the risk of loss of the same shall
not be transferred to the Owner until the execution of the Solar Park
Provisional Acceptance Certificate.
|
(3)
|
Until
the execution of the Solar Park Provisional Acceptance Certificate, the
Contractor must repair or replace, at its own expense, any equipment,
facility or portion of Work that is lost or damaged. Further,
the Contractor must assume responsibility for the care and security of the
Site and assume responsibility for any loss, theft or damage that may
occur with respect to the Contractor’s materials or machinery or the
equipment delivered pursuant to this
Contract.
|
11.
|
INSURANCE
|
(1)
|
At
all times during which the Contractor continues performing work under this
Contract, the Contractor, at its own cost and expense, shall take out and
maintain in force the insurance described below with well-known and
solvent insurance companies that are legally authorized to issue policies
in Spain, on terms and conditions of coverage satisfactory to the Owner
and the Insurance Advisor:
|
|
a)
|
Occupational
Accidents or Social Security Insurance for all its own personnel or for
the personnel of the Subcontractors as is legally required during the
effective period of the Contract.
|
b)
|
Mandatory
Civil Liability Insurance and Voluntary Civil Liability Insurance for the
Circulation of Vehicles and Machinery, pursuant to the limits and
conditions mandated by the Legislation in force during the effective
period of the Contract.
|
c)
|
Civil
Liability Insurance covering all activities of the Contractor and the
Subcontractors necessary to complete the Work, with a limit of not less
than €1,500,000 per
occurrence.
|
d)
|
Transportation
Insurance covering the transportation of material and machinery to the
Site, with a limit of not less than the aggregate value of the transported
goods.
|
e)
|
All-Risks
Construction and Assembly Insurance, which will specifically include theft
and vandalism at the Site, from the unloading of the material at the Site
until the transfer of ownership of the Solar Park, including the testing
period and covering a maintenance period of not less than 12 months, with
an insured amount not less than the Contract
Price.
|
f)
|
Any
other mandatory
insurance.
|
(2)
|
The
contracting of insurance provided in this clause shall in no event limit
the liabilities of the Contractor under this Contract. Additionally, the
amounts established as an insurance deductible in each of the insurance
policies shall be borne by the Contractor, unless the loss is attributable
to the Owner.
|
(3)
|
The
Owner may require that the Contractor deliver documentation evidencing the
contracting of the insurance set forth under this Clause to verify
compliance therewith and/or for verification by the Insurance Advisor, and
the Contractor undertakes to make such documentation available to the
Owner as soon as possible.
|
12.
|
FORCE
MAJEURE
|
(1)
|
Neither
Party shall be deemed liable for the breach of any of its obligations to
the extent that the performance of such obligations is delayed or becomes
impossible as a consequence of Force
Majeure.
|
(2)
|
For
the purposes of this Contract, events of Force Majeure shall be
deemed to be the events described in Article 1105 of the Civil Code,
provided that they actually prevent compliance by the party invoking it
from complying in whole or in part with its obligations under this
Contract. The Parties expressly agree that the discovery of archeological
ruins at the Site shall be considered an event of Force Majeure for
purposes of this Contract (without prejudice to the changes, if any, that
the Parties may agree to in accordance with subsection (11) below and the
consequences set forth therein). By way of example and not limitation, the
Contractor may not invoke the following as an event of force
majeure:
|
|
(i)
|
Meteorological
conditions or phenomena that could have been reasonably foreseen by
experienced contractors operating at the
Site.
|
|
(ii)
|
Delays
or failures in obtaining materials or labor that are foreseeable or
avoidable in advance.
|
|
(iii)
|
Delays
by any Subcontractor, unless such delays are based on any of the events
specified in this clause.
|
|
(iv)
|
Strikes
or labor conflicts affecting the Contractor or the Subcontractors, unless
they are national, sector-wide or local in
scope.
|
(3)
|
The
Party affected by Force
Majeure shall give written notice to the other Party as soon as
possible within a maximum period of forty-eight (48) hours from the day on
which such Party became aware thereof, attaching to such notice all
available documents evidencing the event that is deemed to amount to Force Majeure, the
measures taken up to such point in time, and an estimation, if possible,
of the expected duration thereof and its impact on the
Work
|
(4)
|
The
performance of the obligations affected by an event of Force Majeure shall be
suspended for the duration of such event, the Parties not being entitled
to damages as results of such events of Force
Majeure.
|
(5)
|
If
the Work is affected by the event of Force Majeure and the
Contract is suspended for more than one hundred eighty (180) days, either
of the Parties may seek termination of the Contract, with the consequences
provided in Clause 14.3.
|
(6)
|
After
cessation of the event of Force Majeure, the
Parties shall agree upon the corresponding extension of deadlines (in all
cases in light of the duration of the event of Force Majeure and the
mobilization periods), or, if applicable, the measures that must be
adopted to recover, in whole or in part, the time lost so as to preserve
such dates, if possible. The contractual obligations not affected by Force Majeure must be
met within the deadlines that were in force prior to the occurrence of the
event of Force
Majeure.
|
(7)
|
In
any event, upon cessation of the event of Force Majeure, the
Parties shall take all reasonable measures within their power to resume
performance of the obligations under the Contract under optimal conditions
and with the least possible delay.
|
(8)
|
The
expenses incurred as a consequence of the repair, replacement or
adjustment of the items damaged by the events of Force Majeure shall be
borne by the party bearing the risk of loss for such elements at the time
of occurrence of the event of Force
Majeure.
|
(9)
|
In
the event that an event of Force Majeure prevents
a Party from complying with a payment obligation required by the Contract,
such payment obligation shall not be waived and the other Party may
suspend performance of its obligations under the Contract. Such
occurrence shall not give either Party a right to indemnification for
damages, without prejudice to any interest for delay in payment that might
apply.
|
(10)
|
The
Party claiming the Force
Majeure event shall immediately notify the other Party of its
cessation. Within seven (7) calendar days following the
cessation of the Force
Majeure event, the Parties shall meet to agree and assess the
effects that such situation caused. Such agreement shall be
documented in a certificate signed by both Parties describing the changes
to the contractual conditions.
|
(11)
|
In
the event that archeological ruins are discovered at the Site, but the
Work may be continued by reducing the size of the Solar Park, the number
of Solar Facilities, or by implementing a reconfiguration of the technical
configuration of the Solar Park, the Parties shall meet to agree on such
changes and shall execute a certificate describing the changes to the
contractual conditions. In any event, if the change entails a
reduction in the capacity of the Solar Park, or in the number of Solar
Facilities, thus requiring a reduction of the Contract Price, the Owner
shall have the right to withhold from the remaining Payment Milestones
payable after the change, the portion of the Contract Price previously
paid by the Owner that corresponds to the Solar Facilities or the
equipment affected by the reduction and which, consequently, were not
delivered by the Contractor under this
Contract.
|
13.
|
SUSPENSION
OF THE WORK
|
13.1
|
Suspension
by the Owner
|
(1)
|
The
Owner may at any time give written notice to the Contractor ordering the
immediate suspension of the Solar Park, in whole or in part, for any of
the following reasons:
|
|
a)
|
If
the Contractor is performing the Work in a defective or inappropriate
manner, or not adhering to uses and practices customary for projects of
this type or as established under this Contract, provided that the
Contractor does not cure such defects within a reasonable period granted
by the Owner.
|
|
b)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with safety standards, avoiding
damage to people and things, provided that the Contractor does not cure
such defects within a reasonable period granted by the
Owner.
|
|
c)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with quality control
requirements, provided that the Contractor does not cure such defects
within a reasonable period granted by the
Owner.
|
|
d)
|
If
the Contractor fails to comply with the instructions issued by the
Governmental Authorities for the execution of the Work, to the extent that
this may affect the authorizations granted or requested or the successful
achievement of the purpose of the
Contract.
|
|
e)
|
By
unilateral decision of the Owner.
|
(2)
|
The
order providing for the suspension of the Work shall specify in writing
the portion thereof that is being suspended, the grounds for suspension,
the effective date of suspension and the date provided for the resumption
of the Work (if applicable).
|
(3)
|
In
all the cases provided in subsection (1) above, except for the ones
mentioned in subsection (e), the suspension shall last for all the time
required and until the Contractor cures the circumstances that gave rise
to the suspension of the Work. Additionally, in none of such cases shall
the Contractor be entitled to any additional payment whatsoever or to the
extension of the periods provided in the Implementation Schedule, except
in the case mentioned in subsection (e), where the Contractor shall be
entitled to an extension of the deadlines provided in the Implementation
Schedule for a period at least equal to the suspension period and to be
compensated for the costs resulting from the repair, replacement or
adjustment of the items damaged during the suspension period and the costs
arising from the suspension and resumption of the
Work.
|
(4)
|
If
the suspension lasts for a period in excess of one hundred and eighty
(180) days, and the reasons are not attributable to the Owner, the
Contractor shall reserve the right to terminate the Contract upon the
terms of Clause 14.1.
|
13.2
|
Suspension
by the Contractor
|
(1)
|
The
Contractor shall be entitled to temporarily suspend the Work as provided
under this Contract, applicable law and in the event that the Owner incurs
a delay in excess of thirty (30) days in the payments owing to the
Contractor, as regards the expiration dates of the relevant invoices
(except in the case of the works relating to a Payment Milestone disputed
in accordance with Clause 4.3 (3)). In such event, the Owner
shall pay to the Contractor its expenses arising from the suspension
(including the costs resulting as a consequence of the repair, replacement
or adaptation of the damaged elements during the suspension period and the
costs arising from the suspension and resumption of the Work) and the
Parties shall agree upon an extension of the deadlines for performance
based on the effects of the suspension
thereon.
|
(2)
|
If
the suspension for a cause attributable to the Owner (including the one
provided under subsection 13.1(1)(e) above) lasts for more than three (3)
months or during several consecutive periods totaling more than three (3)
months, the Contractor shall be entitled to terminate the Contract upon
the terms of Clause 14.2.
|
13.3
|
Suspension
by Judicial or Governmental
Authority
|
(1)
|
In
the event of suspension, interruption or stoppage of the Work, in whole or
in part, ordered by any judicial or governmental authority, or by the
Owner or Contractor following the instructions of any judicial or
governmental authority, the financial and contractual consequences of the
delay shall be borne by the party that is responsible for performance
where the failure to perform or incorrect performance triggered the
judicial or governmental action.
|
(2)
|
If
such suspension, interruption or stoppage does not result from the actions
or omissions of any of the Parties, the periods of the Implementation
Schedule shall be extended for a period at least equal to the one during
which the situation subsisted, and the Owner shall pay to the Contractor
the duly verified costs incurred as a result of such interruption. The
Contractor undertakes to act diligently to minimize such
costs.
|
(3)
|
If
the suspension ordered by any judicial or governmental order, or by the
Owner or the Contractor following the instructions of any judicial or
governmental authority, extends for more than six (6) months, either of
the Parties will be entitled to terminate the Contract upon the terms of
Clause 14.
|
14.
|
TERMINATION
|
14.1
|
Termination
for Causes Attributable to the
Contractor
|
(1)
|
The
Owner may terminate the Contract in the cases authorized by the Law, in
the instances provided for in this Contract, or upon the occurrence of any
of the following events:
|
|
a)
|
The
dissolution or merger (provided it involves a change in control) of the
Contractor ***, or when a substantial portion of the assets of the
Contractor *** is transferred to another company, provided that such
circumstances seriously prejudice the Contractor’s *** capacity to perform
the obligations under this Contract ***,
respectively;
|
|
b)
|
The
voluntary filing by the Contractor of a bankruptcy petition or the
allowance of a bankruptcy petition by a third party against the Contractor
(or any equivalent action in accordance with the insolvency legislation
applicable to the Contractor), or in the case of clear financial
difficulties that prevent the Contractor from normally complying with
obligations arising under the Contract, unless its obligations are
sufficiently guaranteed under this Contract. The occurrence of the same
events as regards *** shall also be grounds for
termination.
|
|
c)
|
If
the Contractor assigns or subcontracts the Contract, in whole or in part,
without complying with the conditions set forth in this
document.
|
|
d)
|
If
the Contractor fails to comply with its obligations involving the
contracting and maintenance of the insurance provided under the Contract
in a manner that might endanger coverage under the relevant
policies.
|
|
e)
|
If
the Contractor has been assessed penalties for failure to achieve the
Production Guarantee beyond the maximum limits, if applicable, provided
under this Contract.
|
|
f)
|
If
the Contractor has interrupted the Work or a substantial portion thereof
or has abandoned the Solar Park for a period exceeding twenty (20)
calendar days without the Owner’s authorization, or in the case of
interruptions for an aggregate duration of more than thirty (30) days
within the same calendar year, provided that the interruptions do not
arise from a suspension of the Work provided under Clause
13.2.
|
|
g)
|
If
the application for the Final Start-up Certificate has not been filed
together with all required in accordance with the terms of Clause 6.6 on
or prior to the Delivery Deadline due to causes attributable to the
Contractor, although the Owner cannot effect termination for the reason
set forth in this subsection with respect to those Solar Facilities or
Electrical Infrastructure for which a Final Start-up Certificate would
have been obtained prior to September 29,
2008.
|
|
h)
|
If
the Owner has not obtained the Final Start-up Certificate (with respect to
one or more Solar Facilities and/or the Electrical Infrastructure) prior
to ***, for the reasons set forth in Clause
6.6(2)(ii).
|
|
i)
|
If
the Provisional Acceptance Certificate for one or more Solar Facilities or
the Electrical Infrastructure has not been issued prior to
***.
|
|
j)
|
***
|
|
k)
|
***
|
|
l)
|
If
there is any other material breach of the obligations assumed by the
Contractor under this Contract.
|
m)
|
Any
other serious breach of a principal obligation of the Contractor that
might affect or prevent the successful conclusion of the Contract, or that
is expressly designated herein as grounds for
termination.
|
(2)
|
Upon
the occurrence of any of the above events, the Owner may elect to
terminate the Contract, in whole or in part, with respect to the Solar
Facilities for which the Provisional Acceptance Certificate of a Facility
has not been issued as of the date of notice of termination, or for which
the Final Start-up Certificate has not been obtained in the case of
subsections g) and h) above (hereinafter, the “Affected Facilities”),
except to the extent that the number of Affected Facilities is less than
40% of the total Solar Facilities, in which case the Owner may only
terminate the Contract with respect to such Affected
Facilities.
|
(3)
|
Upon
the occurrence of any of the above events, the Owner shall give the
Contractor a period of thirty (30) days to remedy the event, or any other
longer period that may be agreed upon by the Parties. If within such
period the Contractor fails to remedy such grounds for termination to the
Owner's satisfaction, the Contract shall be terminated (in whole or in
part, as applicable). For clarification purposes, it is noted
for the record that in no event will the remedy period provided herein be
applicable to the circumstances provided in subsections (1)(b), (e), (f),
(g) , (h) and (i) of this
Clause.
|
(4)
|
In
the event of a termination of the Contract (in whole or in part) under
this subsection, the following shall occur (without prejudice to the
provisions of subsection (6)):
|
|
(i)
|
In
the event of partial
termination, only as to some Solar Facilities in the Solar Park,
the Contractor shall be obligated to return to the Owner the portion of
the Contract Price that it charged for the Affected Facilities and shall
be obligated to pay indemnification for any damages pursuant to subsection
(5) below. The Contractor shall recover ownership of the property
comprising such Solar Facilities.
|
|
(ii)
|
In
the event of complete
termination, the Contractor shall be obligated to return the
aggregate Contract Price charged by the Contractor, and shall be obligated
to pay indemnification for any damages pursuant to subsection (5) below.
The Contractor shall recover ownership of all the property delivered to
the Owner.
|
(5)
|
Upon
the occurrence of either two events described in the preceding subsection,
the Contractor shall be obligated to pay indemnification to the Owner for
damages, including:
|
|
(i)
|
The
Financial Costs associated with the Affected Facilities or the entire
Solar Park, as applicable. “Financial Costs” shall
be understood to mean all costs, expenses, fees (whether up-front, early
termination or of any other type) and interest paid by the Owner in
respect of the financing documents entered into by the Owner with the
Financial Institutions, including cancellation or breakage fees for any
interest rate swap agreements entered into by the Owner with the Financial
Institutions.
|
|
(ii)
|
The
costs, expenses and damages incurred by the Owner as a result of, or with
respect to, the early termination or the breach by the Contractor, duly
certified by the Owner, plus an amount equal to *** euros for each
Affected Facility, to cover permitting
costs.
|
(6)
|
Notwithstanding
the provisions of subsections (4) and (5), if the Owner had the right to
terminate the Contract, in whole or in part, as a result of the failure to
achieve Start-up prior to September 29, 2008 for the reasons set forth in
subsections 14.1(g) and 14.1(h) above, the Owner may not elect to return
the Affected Facilities, if:
|
|
(i)
|
prior
to September 29, 2008 the Contractor pays to the Owner an amount that is
sufficient to (a) restore the Debt Service Coverage Ratio (as will be
defined in the financing documents referred to in Clause 14.1(5)(i)) to
the Base Case (as will be defined in the financing documents referred to
in Clause 14.1(5)(i)) agreed to by the Financial Institutions and the
Owner in such financing documents, and (b) cover the loss of profitability
for the Owner’s shareholders, taking into account the tariffs which will
be received by the Owner from the sale of power from the Solar Park. For
such purposes, the Contractor acknowledges and accepts that the amount to
be paid to the Owner (for the items set forth in the preceding subsection)
will be proposed by the Agent for the Financial Institutions and
negotiated between the Owner and the Contractor on the basis of the
assumptions in the Base Case to be notarized by the Owner and the
Financial Institutions along with the financing documents;
and
|
|
(ii)
|
Start-up
of the Affected Facilities shall have occurred prior to November 30,
2008.
|
(7)
|
The
Contractor is required to pay the amounts referred to in subsections (4)
and (5) above to the Owner within *** days of the date of settlement of
the amounts owed.
|
(8)
|
In
all the foregoing instances, the Owner may, without prejudice to the
reservation of rights to take all legal action to which it is entitled for
the defense of its rights, adopt any or all of the following
measures:
|
|
a)
|
Offset
any payments pending in favor of the Contractor by an amount equivalent to
the balance in favor of the Owner (returning, in the event of complete
termination, the Performance Bond or the Guarantee Bond, as applicable,
once such offset has been made).
|
|
b)
|
Enforce
the Performance Bond and/or the Guarantee
Bond.
|
|
c)
|
Withhold
the Contractor’s materials, machinery and items belonging to the
Contractor that are in the possession of the Owner, until the Contractor
has fully paid all amounts due as a consequence of the
termination.
|
14.2
|
Termination
by the Contractor
|
(1)
|
The
Contractor may terminate the Contract under the circumstances provided for
under applicable law, in this Contract, or upon occurrence of any of the
following events:
|
|
(i)
|
The
voluntary filing by the Owner of a bankruptcy petition or the allowance of
a bankruptcy petition filed by a third party against the Owner, or in the
event of patent financial difficulties that would prevent the Owner from
normally complying with the obligations arising under this Contract in
cases different from the one provided under subsection (ii) below, unless
its obligations are sufficiently guaranteed under this
Contract.
|
|
(ii)
|
A
delay in payment for a period in excess of sixty (60) days from the date
on which payment should have been
made.
|
|
(iii)
|
Any
other serious breach of a principal obligation of the Owner that might
affect or prevent the successful conclusion of the Contract, or that is
expressly designated herein as grounds for
termination.
|
|
(iv)
|
A
suspension of the works and services for causes attributable to the Owner
for a period greater than three (3)
months.
|
|
(v)
|
The
dissolution of the Owner, or if a substantial portion of the assets of the
Owner is transferred to another company, and such circumstance seriously
prejudices the Owner’s capacity to perform the obligations set forth in
this Contract.
|
(2)
|
The
Contractor shall give to the Owner a period of thirty (30) days to cure
the event, or any other longer period that may be agreed upon by the
Parties. Such cure period shall not apply if the event giving rise to
grounds for termination is one provided for in subsections (i) and (iv) of
Clause 14.2(1) above. If the Owner fails to remedy such grounds for
termination to the Contractor's satisfaction within such period, the
Contract shall be terminated (in whole or in part, as
applicable).
|
(3)
|
Upon
termination of the Contract for any of the foregoing reasons, the Owner
must:
|
|
(i)
|
Pay
all of the Contractor’s outstanding
invoices.
|
|
(ii)
|
Pay
to the Contractor the value of the Work performed before termination and
which is not yet included in the invoices. Accordingly, the Owner must pay
to the Contractor the cost of the equipment already delivered to the
Contractor or that it is legally required to accept under the contracts
entered into with its suppliers and manufacturers, which shall become the
property of the Owner if they had not already become
so.
|
|
(iii)
|
Pay
all duly authenticated damages that are sustained by the Contractor as a
consequence of the contractual breach or early termination, including
direct demobilization costs.
|
|
(iv)
|
Return
to the Contractor the Bonds received from the
Contractor.
|
(4)
|
Upon
the Owner’s compliance with the conditions set forth in the above
subsection, the Contractor shall abandon the Site within a period of
thirty (30) days and the Owner may complete the Work by itself or with
another contractor, the Owner being entitled to request the Contractor to
assign each and every contract signed by the Contractor and its
subcontractors (except contracts entered into for the supply of
solar modules, supports and trackers or for the supply of technology and
software, which the Owner may not assume). The Contractor is obligated to
cooperate in good faith with the Owner to effect such
assignments.
|
14.3
|
Termination
due to Force
Majeure
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
15.1
|
Assignment
|
(1)
|
The
Contractor may not assign or transfer to third parties, in whole or in
part, the economic, commercial or financial rights or credits arising
under this Contract, or engage in any other transaction involving any type
of disposition, encumbrance, commitment and/or transaction, in whole or in
part, regarding such rights and credits, unless it has obtained the prior
written approval of the Owner and the Financial Institutions. An
assignment to other companies within the Contractor’s group that have the
same technical capacity to perform the contractual obligations and that
satisfy the requirements of the Direct Agreement is permitted,
***.
|
(2)
|
The
Owner may only assign all or a portion of the rights and obligations
arising under this Contract in favor of the Financial Institutions in
accordance with Clause 17, or to any other third party with the prior
written approval of the Contractor.
|
15.2
|
Subcontracting
|
(1)
|
The
Contractor may subcontract the Work, provided the following conditions are
met:
|
|
(i)
|
All
the subcontracts executed (except the contracts entered into for the
supply and manufacture of solar modules, supports and trackers or for the
supply of technology and software, which Owner may not assume) and all
guarantees obtained from any of the suppliers or Subcontractors may be
assigned at the request of the Owner in the event of termination of this
Contract. For such purpose, the Contractor irrevocably undertakes to
assign to the Owner and the Financial Institutions the rights arising from
all the guarantees and subcontracts obtained from Authorized
Subcontractors upon the expiration of the Guarantee Period or in the event
of termination of the Contract.
|
|
(ii)
|
The
guarantees or subcontracts executed by the Contractor with Subcontractors
or suppliers shall be consistent with the terms and provisions of this
Contract.
|
|
(iii)
|
The
Contractor shall deliver to the Owner, within a reasonable period after
the request thereof, a copy without prices or other commercial terms, of
all the contracts, agreements and guarantees signed with the
Subcontractors (containing the waiver referred to in subsection (3)
below)
|
(2)
|
In
no event shall a contractual relationship be implied among the
Subcontractors and the Owner. The Contractor shall remain liable for all
of the activities of its Subcontractors and suppliers and for all
contractual and labor obligations arising from the performance of their
work; as well as for the actions, failures and negligence of any of its
subcontractors or suppliers and the agents and employees thereof, under
the same terms and conditions as if committed or performed by the
Contractor itself, its agents or
employees.
|
(3)
|
The
Owner shall not be liable vis-à-vis any Subcontractor or supplier, or
vis-à-vis their employees, for any claims arising directly or indirectly
from the Contract. For such purpose, the Contractor undertakes to procure
an express and written waiver of the rights conferred by Article 1597 of
the Civil Code from each
Subcontractor.
|
16.
|
LIABILITY
AND DAMAGES
|
(1)
|
The
Parties shall have the obligation to provide indemnification for those
damages caused to the other Party as a consequence of the breach of this
Contract. The Owner’s approval of the projects, calculations, drawings or
other technical documents prepared by the Contractor, or the conduct of
inspections or Tests do not release the Contractor from such liability,
and do not imply that such liability must be shared by the
Owner.
|
(2)
|
The
Contractor shall be liable vis-à-vis the Owner for any loss or physical
damage to the equipment, materials or assets owned by the Owner or third
parties that is caused by the Contractor through the execution of the
relevant Solar Facility Provisional Acceptance Certificate, and thereafter
only when the Contractor is within the Site performing the Work, repairs
or similar activities and causes the relevant
damage.
|
(3)
|
By
application of Article 1596 of the Civil Code, it is expressly agreed that
the Contractor shall also be liable for damages caused by the persons or
entities employed by the Contractor in the performance of the Work,
whether as employees, technicians, subcontractors or otherwise, from whom
the same diligence owed by the Contractor shall be
required.
|
(4)
|
The
Parties expressly agree that in no event will a Party be liable for the
so-called consequential or indirect damages, including loss of profits and
loss of output, loss of use or loss of any contract or other damages that
are considered to be indirect, except for cases involving willful
misconduct or gross negligence, and without prejudice to the Contractor's
obligation to pay the penalties agreed upon under this
Contract.
|
(5)
|
The
Parties agree that any indemnity received by one of the Parties as
beneficiary of any of the insurance taken out by them in connection with
the Solar Park will be deducted from the respective claim for damages or,
if such indemnity holds the Party in question harmless from the damages
sustained, it shall bar such Party from claiming damages and require it to
refund the excess, if any. The Party causing the damages shall
bear all deductibles, liability limits and any other deductions affecting
the indemnities payable to the damaged Party by the insurance companies
providing the insurance in accordance with the provisions
hereof.
|
(6)
|
The
maximum total liability of the Contractor hereunder shall not exceed, in
the aggregate, an amount equal to *** (***%) percent of the Contract
Price. The foregoing shall not affect to the Contractor’s obligation to
make payments under Clause 14.1 in the event of the termination or partial
termination of the Contract.
|
17.
|
OWNER
FINANCING
|
|
(i)
|
the
possibility that the Owner’s rights under this Contract may be fully or
partially pledged or assigned as security, in one or successive instances,
to the Financial Institutions.
|
|
(ii)
|
the
possibility that “direct agreements” that provide the Financial
Institutions with “step-in” rights will be executed in the form agreed to
prior to the execution of this Contract and which are attached hereto as
Annex
9;
|
|
(ii)
|
the
possibility that the right to receive indemnification to which the Owner
may be entitled and which arise under the insurance policies purchased in
accordance with the terms of this Contract may be pledged or assigned as
security to the Financial Institutions (and the essential nature of
subscribing the insurance policies upon the terms of the report issued by
the Insurance Advisor in accordance with Clause
11);.
|
|
(iii)
|
that
the Financial Institutions and their advisors (including the Technical
Advisor and the Insurance Advisor and any others) have the right to access
the Site in order to inspect the performance of the work contemplated
under this Contract, upon the terms contemplated in Clause
6.2;
|
|
(iv)
|
the
Technical Advisor’s right to observe all Capacity and Production Tests and
the obligation to obtain its prior approval for the issuance of the Solar
Park Provisional Acceptance Certificate, each Solar Facility Provisional
Acceptance Certificate, the Final Acceptance Certificate and other actions
for which the approval of the Technical Advisor is required in accordance
with the form of Direct Agreement attached hereto as Annex
9;
|
|
(v)
|
the
requirement to obtain the prior approval of the Financial Institutions for
any change to the terms of this Contract upon the terms contemplated
herein;
|
|
(vi)
|
the
Contractor’s obligation to pay any amounts owed to the Owner under this
Contract to the account, if any, indicated in writing by the Financial
Institutions;
|
18.
|
CONFIDENTIALITY
|
(1)
|
The
Parties agree that this Contract and the Annexes hereto, and any written
or electronic information or documentation that any of the Parties
furnishes to the other for the performance of this Contract (including,
without limitation, technical documentation, plans, information,
procedures, patents and licenses) are confidential. Therefore, the Parties
undertake to keep the information confidential and to refrain from
disclosing, providing to third parties or using such information unless
such documentation and information (i) is known by the public without any
breach of this confidentiality commitment, (ii) has been legally obtained
from a third party, (iii) is requested by a judicial or governmental
authority, or (iv) the delivery of such documentation and information is
made in compliance with any legal obligations enforced upon the disclosing
Party.
|
(2)
|
The
Parties agree that the above shall not apply to any disclosure of
information made by any of the Parties to other entities of their Group
(within the meaning of Article 4 of Securities Market Law (Ley del Mercado de
Valores) 24/1988 of July 28), regulatory, tax or governmental
authorities, and their respective advisors and auditors, internal or
external, in relation to the information requested by them for the
development of the investigations, assessments and works carried out by
them, provided that, in each and every one of such cases, the parties
receiving the confidential information have assumed commitments of
confidentiality vis-à-vis the disclosing party on terms similar to this
one. In this case, such entities, authorities, advisors or auditors shall
have free access to the books, files, documents and information held by
the requested Party, and prior authorization is therefore not required
from the other Parties to furnish information to such entities,
authorities, advisors and/or auditors regarding this Contract and the
Annexes hereto and any other information or written documentation relating
hereto.
|
(3)
|
In
particular, the Owner is authorized to transmit information regarding this
Contract to the Owner and the Financial Institutions and to those
investors with interests in the construction and commercial operation of
the Solar Park who reasonably request information with respect to this
Contract, provided that they have assumed vis-à-vis the provider of such
information confidentiality undertakings upon terms substantially similar
hereto. Further, the Owner hereby authorizes the Contractor to
provide such information to the Financial
Institutions;
|
(4)
|
The
confidentiality commitment must be observed until the passage of two (2)
years from the date of execution of the Final Acceptance Certificate or
any termination of the Contract, regardless of the cause
thereof.
|
19.
|
NOTICES
|
(1)
|
All
notices and communications between the Parties for the purposes of this
Contract shall be made in writing, by certified mail, fax or courier
service, to the following
addresses:
|
(2)
|
The
Parties may change the above addresses by written notice to each other
given in the form and to the addresses mentioned
above.
|
(3)
|
Notices
shall be deemed received on the third (3rd) Business Day following the
dispatch thereof when sent by courier service (unless there is evidence of
earlier receipt) or the Business Day following the date on which there is
evidence of the receipt thereof in the case of faxes and certified
mail.
|
20
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation, to which the Contractor and the
Owner expressly submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje (CIMA)) of Madrid in accordance with the Procedural
Regulations thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by the Contractor and the other by
the Owner, and the two arbitrators so appointed shall appoint the third
one, who shall act as chairman of the arbitral tribunal. Should the two
first arbitrators fail to reach an agreement on the appointment of the
third arbitrator within ten (10) Business Days following the date of
acceptance of office by the second arbitrator, such arbitrator shall be
appointed by CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
|
|
||
SOLARGEN
PROYECTOS E INSTALACIONES SOLARES, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
Part
|
Units
per MW
|
Total
quantity
|
Mechanical
part
|
||
Drive
bellows boot
|
0.4
|
3
|
Ground
braids, torque tube to pier
|
5
|
35
|
Module
mounting assemblies
|
5
|
35
|
MC
connectors
|
5
|
35
|
Actuator
(endless screw)
|
0.2
|
2
|
Low
voltage
|
||
Solar
panels
|
10
|
70
|
Orientation
motor
|
0.4
|
3
|
GPS
+ PLC + clinometer
|
0.4
|
3
|
SunPower
controller (no housing)
|
0.4
|
3
|
Inverter
|
0.2
|
2
|
Communications
card for the inverter
|
0.4
|
3
|
Fuse
set for the inverter
|
0.4
|
3
|
Set
of overvoltage protective devices for the inverter
|
0.4
|
3
|
DC
fuses
|
5
|
35
|
Set
of overvoltage protective devices for the junction box
|
0.4
|
3
|
Junction
box
|
0.4
|
3
|
Fan
unit
|
0.4
|
3
|
Set
of sensors for the weather station
|
0.2
|
2
|
Communications
|
||
MOXA
cards
|
0.2
|
2
|
Routers,
switches, hubs, etc.
|
0.2
|
2
|
Medium
voltage
|
||
MV
fuses (if protective cabinets with fuses are installed)
|
0.4
|
3
|
Protective
relay
|
0.1
|
1
|
160
kVA transformer
|
0.1
|
1
|
|
-
Mitsubishi
|
|
-
SESE
|
|
-
CSI
|
|
-
Solarworld
|
|
-
Trina
|
|
-
Gloria
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt/)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
Transformer
and Sectioning Stations
|
|
1.1
Cells
|
|
1.1.1 Encapsulated
cells:
|
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
MANUFACTURAS
ELÉCTRICAS
|
(www.me-sa.es)
|
SIEMENS
|
(www.siemens.es)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.1.2 SF6-insulated
cells and switchgear in metal housings
|
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.2
Power
transformers
|
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
IMEFY
|
(www.imefy.com)
|
ALKARGO
|
(www.iberapa.es)
|
ABB
TRAFO
|
(www.abb.com)
|
SIEMENS
|
(www.siemens.es)
|
INCOESA
|
(www.incoesa.com)
|
OASA
|
(www.oasanet.com)
|
CONSTRUCCIONES
ELÉCTRICAS JARA
|
(www.trafojara.com)
|
LAYBOX
|
(www.laybox.com)
|
1.3 Prefabricated
housings
|
|
POSTES
NERVIÓN
|
(www.postesnervion.es/)
|
PREPHOR
|
(www.prephor.com)
|
INAEL
|
(www.inael.com)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
AREVA
T&D
|
(www.areva-td.com)
|
Low-voltage
lines
|
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
CONTECSA
|
(www.contecsa-spain.com)
|
CABELTE
|
(www.cabelte.pt)
|
MIGUELEZ
|
(www.miguelez.com)
|
Low-voltage
panels
|
|
1.1 Rectifiers
– battery chargers
|
|
ZIGOR
|
(www.zigor.com)
|
SAFT
POWER SYSTEMS IBERICA S.L.
|
(www.spsi.es)
|
EMISA
- EXIDE
|
(www.exide.com)
|
ENERTRON
|
(www.enertron.net)
|
1.2 Protective
cabinets and A.S. [auxiliary services] control
|
|
PROYECTOS
MECA
|
(www.proymeca.com)
|
CYMI
|
(www.cymi.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
CUADRELEC
|
(www.cuadrelec.com)
|
PMC
Ingeniería
|
|
1.3
Exterior
cabinets
|
|
PINAZO
|
(www.pinazo.com)
|
ELDON
|
(www.eldon.es)
|
HIMEL
|
(www.himel.com)
|
RITTAL
|
(www.rittal.es)
|
Electrical
protective devices
|
|
1.1
Indirect and direct protective devices for MV cells
|
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
SIEMENS
|
(www.siemens.es)
|
GENERAL
ELECTRIC
|
(www.GEIndustrial.com)
|
TEAM
ARTECHE
|
(www.teamarteche.es)
|
ZIV
|
(www.ziv.com)
|
1.2
Direct LV protective devices
|
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
MOELLER
|
(www.moeller.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
GOULD
|
(www.gould.com)
|
1.3
Metal-oxide lightning rods
|
|
TYCO
ELECTRONICS RAYCHEM GMBH
|
(www.energy.tycoelectronics.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
INAEL
|
(www.inael.es)
|
ABB
|
(www.abb.es)
|
CELSA
|
(www.celsa.com)
|
Supervisory
System
|
|
1.1
PLCs [programmable logic controllers]
|
|
SCHNEIDER
ELECTRIC
|
(www.schneider-electric.com)
|
BECKHOFF
|
(www.beckhoff.es)
|
ROCKWELL
AUTOMATION
|
(www.rockwellautomation.com)
|
GENERAL
ELECTRIC FANUC
|
(www.gefanuc.com)
|
1.2 Industrial communications | |
HIRSCHMANN
|
(www.hirschmann.com)
|
MOXA
|
(www.moxa.com)
|
1.3 SCADA [system control and data acquisition] platforms | |
WONDERWARE
|
(www.wonderware.com)
|
GENERAL
ELECTRIC
|
(www.gefanuc.com)
|
1.4 Optical fiber | |
NEXANS
|
(www.nexans.com)
|
CORNING
|
(www.corning.com)
|
OPTRAL
|
WWW.OPTRAL.COM
|
(A)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L.U. (the “Contractor”)
|
(B)
|
[l] (the “Owner”).
|
(C)
|
[l] (the “Agent”).
|
I.
|
The
Owner and the Contractor executed on [l]:
|
|
(i)
|
a
“turn-key” construction contract (the “Construction Contract”)
for the construction and start-up of a solar park en Casas de Don Pedro
(Badajoz), composed of two phases, one composed of [l] solar facilities
and another of [l] solar
facilities, all of them with a unit capacity at the panels between 115 y
122 kWp y 100 kW at the inverter (the “Solar
Park”);
|
|
(ii)
|
a
maintenance agreement (the “Maintenance Agreement”)
for the performance by Contractor of the maintenance Work relating to the
Solar Park.
|
II.
|
In
order to finance, among other things, the payments that are the
responsibility of the Owner under the Construction Contract, the Owner has
entered into the following contracts, on even date herewith, registered as
public instruments before the Madrid Notary Mr. [l];
|
|
(i)
|
a
credit agreement in the maximum amount of [l] euros
(hereinafter, the “Credit
Agreement” or the “Loan”) with the Agent
and [l].
|
|
(ii)
|
an
interest rate hedge agreement (CMOF/ISDA) and its corresponding Schedule
with [l], to
cover interest rate fluctuation risks relating to the Loan (hereinafter,
the master agreement and its Schedule together with the confirmations to
be executed in connection therewith, the “Interest Rate Hedge
Agreement”).
|
III.
|
To
guarantee the Owner’s obligations under the Credit Agreement and the
Interest Rate Hedge Agreement (hereinafter, collectively, the “Guaranteed Contracts”)
the Owner has granted on even date herewith (among others) a pledge
agreement, registered as a public instrument with the Madrid Notary Mr.
[l], pursuant
to which the rights under the Construction Contract and the Maintenance
Agreement (among others) were pledged to the Financial Institutions (the
“Pledge”).
|
IV.
|
In
consideration of the premises, and as a fundamental condition to the
execution of the Guaranteed Contracts by the Financial Institutions, the
Parties have agreed to execute this Contract whereby the Contractor
assumes certain obligations to the Financial Institutions with respect to
the Construction Contract, the Maintenance Agreement and the Guaranteed
Contracts, as follows.
|
1.
|
DEFINED
TERMS
|
2.
|
PLEDGE
|
(1)
|
The
Contractor hereby pledges all rights to receive payment from the Owner
under the Construction Contract and the Maintenance
Agreement.
|
(2)
|
As
a consequence of the foregoing, except in the event of receipt of a
written notice from Agent that the Pledge has been cancelled, the
Contractor agrees:
|
|
(i)
|
not
to convey or create any type of pledge, charge, lien or other security
right over the Contractor’s rights to receive payments under the
Construction Contract or the Maintenance Agreement, without the express
prior written approval of the
Agent;
|
|
(ii)
|
not
to honor any notice or instruction from the Owner that contravenes or
modifies the terms of the Pledge or of this
Contract;
|
|
(iii)
|
to
immediately notify the Agent of any breach by the Owner of its obligations
under the Construction Contract or the Maintenance
Agreement;
|
|
(iv)
|
to
pay any amounts payable by the Contractor to the Owner under the
Construction Contract or the Maintenance Agreement to the Owner’s account
no. [l] (the
“Principal
Account”), or to such other separate account as the Agent and the
Owner may jointly specify in writing. The Contractor acknowledges and
agrees that a payment made to any other current account or made in any
other manner shall not be considered a full discharge for the
Contractor;
|
|
(v)
|
upon
receipt of written notice from the Agent declaring the enforcement of the
Pledge, to deposit or transfer all funds relating to the payment rights
under the Construction Contract and/or the Maintenance Agreement in favor
of the Agent to the account designated by the Agent in
writing.
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
(1)
|
The
Contractor agrees to provide notice to the Financial Institutions (through
the Agent) of the occurrence of any event of early termination of the
Construction Contract and/or the Maintenance Agreement, or of its own
intention to terminate either of such Contracts, by sending to the Agent a
copy of any notice sent to the Owner (which shall include, at a minimum,
the proposed date of termination of the Construction Contract and/or the
Maintenance Agreement –subject to the terms of subsection (2) below- and
the Contractor’s stated basis for such
termination).
|
(2)
|
The
Contractor acknowledges agrees that it may not, under any circumstances,
terminate the Construction Contract or the
Maintenance Agreement without first giving notice to the Agent
as provided for in the above subsection, and that, during the period from
the Agent’s receipt of such notice until fifteen (15) calendar days from
the date on which the Agent received such notice, the Agent may (but is
not so obligated), with the prior approval of the Financial Institutions
in accordance with the agreed majority voting percentages agreed to among
the Financial Institutions, take such measures as are necessary or
advisable to cure or eliminate such event of early termination under the
Construction Contract and/or the Maintenance
Agreement.
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL ADVISOR
|
|
(i)
|
it
may not agree to any change to the Construction Contract or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clauses 2.4(4), 5.1(3) and 6.5(3) of the Construction
Contract without receiving the prior approval of the Financial
Institutions (the foregoing is without prejudice to the Contractor’s
rights under such Clauses);
|
|
(ii)
|
except
with respect to the assumed consent contemplated by Clause 4.3 of the
Construction Contract, the approval of the Technical Advisor must be
obtained in order for the Owner to approve a Payment Milestone
contemplated by such Clause;
|
|
(iii)
|
the
Technical Advisor must be present to observe the performance of the
Performance Tests, the Overall Test, the Production Tests and the
inspections required for execution of the Solar Facilities Provisional
Acceptance Certificates, the Solar Park Provisional Acceptance
Certificate, and the Final Acceptance Certificate, in accordance with the
notice periods set forth in Clauses 5.2 (1), 8.4(2) and 9(1) of the
Construction Contract. The periods provided for in such Clauses may not
begin to run if the Technical Advisor has not been invited to observe
within the notice periods provided in such Clauses. Results of
tests and inspections referred to in this subsection that were obtained
prior to the expiration of such periods and without the presence of the
Technical Advisor shall be invalid. However, the Technical Advisor’s
failure to attend despite having been duly invited in the manner and
within the notice periods provided for in this subsection shall not delay
the periods provided for in the Construction Contract for such tests and
inspections, nor shall it invalidate the results of the
same;
|
|
(iv)
|
except
as provided for in Clause 5.2(4) of the Construction Contract, the
execution of the Solar Facilities Provisional Acceptance Certificates, the
Solar Park Provisional Acceptance Certificate, and the Final Acceptance
Certificate must be accompanied by the approval of the Technical
Advisor;
|
|
(v)
|
the
Technical Advisor shall have the power the inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 6.2 of the Construction
Contract;
|
|
(vi)
|
the
Technical Advisor must approve quality controls for the solar modules and
has the authority to inspect such quality controls in order to confirm its
approval; and
|
|
(vii)
|
an
order to suspend the Work by the Owner pursuant to Clause 13.1 of the
Construction Contract shall not be valid unless it has been countersigned
by the Agent on behalf of the Financial
Institutions.
|
4.2
|
Changes
and Actions Regarding the Maintenance
Agreement
|
|
(i)
|
it
may not agree to any change to the Maintenance Agreement or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clause 2.4 of the Maintenance Agreement without first
receiving the prior approval of the Financial Institutions (the foregoing
is without prejudice to the Contractor’s rights under such Clause
2.4);
|
|
(ii)
|
the
Technical Advisor must receive the data and registrations at least fifteen
(15) calendar days in advance to make the availability calculations
referred to in Clause 7 of the Maintenance
Agreement;
|
|
(iii)
|
the
Technical Advisor shall have the authority to inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 4(ii) of the Maintenance
Agreement.
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT
|
6.
|
ASSIGNMENTS
|
6.1
|
Assignment
by the Financial Institutions
|
|
This
Contract is delivered for the benefit of the Financial Institutions, and
therefore inures to the benefit of their successors or assigns permitted
under the Guaranteed Contracts. Therefore, in the event of an assignment,
in whole or in part, of the interest of a Financial Institution under the
Guaranteed Contracts, or the replacement of the Agent under the terms of
the Credit Agreement, all references made in this public document to the
Financial Institutions and the Agent shall be understood to include
reference to their respective successors or assigns. An assignee must
present its position to the Contractor and the Owner, upon request, by
delivery of a copy of the document through which such assignment or
replacement of the Agent is made. However, the Agent must inform the
Contractor of its replacement with sufficient advance notice to permit the
Contractor to comply with its obligations under the Construction Contract,
the Maintenance Agreement and this
Agreement.
|
6.1
|
Assignment
by the Contractor
|
7.
|
NOTICES
|
(1)
|
Except
as otherwise expressly provided for, all notices and communications
between the Parties for the purposes of this Agreement shall be made in
writing, by certified mail, telegram with confirmed receipt, or for urgent
matters, by fax with a confirmation letter to be sent within the following
five (5) calendar days.
|
(2)
|
All
notices, requirements or other communications to the Financial
Institutions must be delivered to the Agent (notice to the Financial
Institutions shall be considered effective upon receipt by the
Agent).
|
(3)
|
The
Parties designate the following addresses for notice, communications and
routine matters:
|
(4)
|
Any
changes to the above addresses must be communicated to the other Parties
by certified mail, and shall only take effect as of the date that the
other Party receives such notice.
|
8.
|
LAW
AND JURISDICTION
|
9.
|
TERM
|
10.
|
TAXES
AND EXPENSES
|
|
|
||
[l] | SUNPOWER ENERGY SYSTEMS SPAIN, S.L.U. | ||
|
|||
[l] |
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
1.
|
DEFINITIONS
|
4
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
8
|
2.1
|
PURPOSE
OF THE CONTRACT
|
8
|
2.2
|
SCOPE
OF WORK
|
8
|
2.3
|
EXCLUSIONS
|
9
|
2.4
|
CHANGES
IN THE SCOPE
|
9
|
3.
|
COMMENCEMENT
OF WORK
|
10
|
4.
|
PRICE
AND FORM OF PAYMENT
|
11
|
4.1
|
CONTRACT
PRICE
|
11
|
4.2
|
PAYMENT
MILESTONES
|
12
|
4.3
|
INVOICING
SYSTEM AND FORM OF PAYMENT
|
13
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL ACCEPTANCE
|
14
|
5.1
|
IMPLEMENTATION
SCHEDULE. CHANGES IN THE DEADLINE
|
14
|
5.2
|
PERFORMANCE
TESTS AND PROVISIONAL ACCEPTANCE
|
14
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
16
|
6.1
|
PREVENTION
OF OCCUPATIONAL RISKS
|
16
|
6.2
|
OBLIGATION
TO PROVIDE ACCESS TO THE SITE
|
17
|
6.3
|
MINIMUM
STOCK AND SUPPLY OF SPARE PARTS
|
17
|
6.5
|
REGULATORY
COMPLIANCE
|
17
|
6.6
|
PERMITS
AND AUTHORIZATIONS
|
18
|
6.7
|
TRAINING
OF THE OWNER’S PERSONNEL
|
18
|
6.8
|
DESIGNATION
OF PROJECT DIRECTOR
|
18
|
6.9
|
TAXES
AND IMPORT DUTIES
|
18
|
6.10
|
INTELLECTUAL
AND INDUSTRIAL PROPERTY RIGHTS
|
18
|
6.11
|
COOPERATION
|
19
|
|
||
7.
|
OBLIGATIONS
OF THE OWNER
|
19
|
8.
|
GUARANTEES
|
20
|
8.1
|
SOLAR
MODULE DEGRADATION GUARANTEE
|
20
|
8.2
|
SOLAR
MODULE CAPACITY GUARANTEE
|
20
|
8.3
|
DESIGN,
ASSEMBLY AND PERFORMANCE GUARANTEE. MATERIALS QUALITY
GUARANTEE.
|
20
|
8.4
|
SOLAR
PARK PRODUCTION GUARANTEE.
|
22
|
8.5
|
BONDS
|
24
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
24
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF RISK
|
25
|
11.
|
INSURANCE
|
25
|
12.
|
FORCE
MAJEURE
|
26
|
13.
|
SUSPENSION
OF THE WORK
|
27
|
13.1
|
SUSPENSION
BY THE OWNER
|
27
|
13.2
|
SUSPENSION
BY THE CONTRACTOR.
|
28
|
13.3
|
SUSPENSION
BY JUDICIAL OR GOVERNMENTAL AUTHORITY
|
28
|
|
||
14.
|
TERMINATION
|
29
|
|
||
14.1
|
TERMINATION
FOR CAUSES ATTRIBUTABLE TO THE CONTRACTOR
|
29
|
14.2
|
TERMINATION
BY THE CONTRACTOR
|
32
|
14.3
|
TERMINATION
DUE TO FORCE MAJEURE
|
33
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
33
|
15.1
|
ASSIGNMENT
|
33
|
15.2
|
SUBCONTRACTING
|
33
|
16.
|
LIABILITY
AND DAMAGES
|
34
|
|
||
17.
|
OWNER
FINANCING
|
35
|
18.
|
CONFIDENTIALITY
|
35
|
19.
|
NOTICES
|
36
|
20
|
LAW
AND JURISDICTION
|
37
|
(A)
|
SEDWICK CORPORATE, S.L.
(hereinafter, the “Owner”), with a
registered office at Hermosilla 31, 4, 28001 Madrid and having Tax
Identification Code (CIF) number B-85093276 herein represented by Iígo
Gortázar Sánchez Torres., with National Identity Document (DNI) No.
50847425Z, pursuant to the powers conferred upon him pursuant to a
resolution of the board of directors passed on the date hereof, notarized
on the date hereof before the Notary Public of Madrid Mr. Luis Sanz
Rodero.
|
(B)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid at calle Pradillo nº 5, herein represented by
Mr. Marco Antonio Northland, bearing U.S. Passport No. 047605878, in his
capacity as attorney-in-fact of such entity pursuant to a public
instrument executed before Mr. Ignacio Martínez Gil-Vich, a Madrid notary,
on November 28, 2006, and recorded in his notarial protocol under No.
4.551.
|
(1)
|
The
Owner is interested in promoting the installation and operation of a solar
park in Olivenza, consisting of one hundred fifty (150) Solar Facilities
having approximately 120kWp of peak power and 100 kWe at the
inverter.
|
(2)
|
The
Contractor is dedicated to the construction and start-up of facilities of
this type, and intends and has the capacity to construct the Solar Park in
accordance with the specifications of this
Contract.
|
(3)
|
The
Owner will partially finance the payment of the Contract Price through
financing to be made available to the Owner by one or more credit
providers (the “Financing
Institutions”).
|
(4)
|
***
|
(5)
|
Now,
therefore, the Parties mutually acknowledging the legal capacity required
to enter into contract and bind themselves, agree to execute this
"turnkey" construction contract (hereinafter, the “Contract”) in accordance
with the following:
|
1.
|
DEFINITIONS
|
-
|
Final Start-Up Certificate or
Final Start-Up: means the governmental certificate referred to in
Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, with
respect to each of the Solar Facilities and the Electrical Infrastructure,
which allows for the commencement of the commercial operation thereof,
including, for the purposes of this Contract, obtaining the registration
of each of such Solar Facilities and Electrical Infrastructures with the
Register of Power Facilities included within the Special Regime (Registro Administrativo de
Instalaciones de Producción de Energía en Régimen Especial),
pursuant to the provisions of Section 12 of Royal Decree 661, which grants
to the corresponding facilities the status of a production facility
accepted under the special regime.
|
-
|
Direct Agreement: the
agreement to be executed on the date hereof among the Contractor, the
Owner and WestLB AG, Sucursal en España pursuant to the template attached
as Annex
9.
|
-
|
Scope of Work: the
entirety of all services, supplies and work that the Contractor must
provide under this Contract in accordance with the provisions of Clause
2.1 and the specific details contained in Annex
2.
|
-
|
Insurance Advisor: means
Willis or any other insurance advisor appointed by the Financing
Institutions in the context of the financing of the Solar
Park.
|
-
|
Legal Advisor: means
Gómez-Acebo & Pombo, S.L. or any other legal advisor that the
Financing Institutions may designate in the context of the financing of
the Solar Park
|
-
|
Technical Advisor: means
Sylcom Solar or any other technical advisor appointed by the Financing
Institutions in the context of the financing of the Solar
Park.
|
-
|
Performance Bond: means
the bond payable on demand to be delivered by the Contractor in accordance
with the provisions of Clause 8.5 to guarantee the performance of its
contractual obligations and which shall be effective as from delivery
thereof to the Owner in accordance with the provisions of this contract
until the execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Guarantee Bond: means
each of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations during the Guarantee Period, which shall be
effective as from the execution of the Solar Park Provisional Acceptance
Certificate through the execution of the Final Acceptance
Certificate.
|
-
|
Final Acceptance Certificate
(FAC): means the certificate that shall be executed by the Parties
at the end of the Guarantee Period to attest to the final acceptance of
the Solar Park by the Owner.
|
-
|
Solar Park Provisional
Acceptance Certificate (Park PAC): means the certificate that shall
be executed by the Parties concurrently with the execution of the
Provisional Acceptance Certificate for the last Solar Facility forming a
part of the Solar Park, to evidence the proper operation of the Solar Park
as a result of the Overall Test of all Solar Facilities and the Electrical
Infrastructure, as well as the Contractor’s compliance with the
obligations set forth in this Contract, without prejudice to the
provisions established for the Guarantee
Period.
|
-
|
Solar Facility Provisional
Acceptance Certificate (Facility PAC): means the certificate that
shall be executed by the Parties to evidence the proper operation of the
equipment as a result of the Performance Tests for each of the Solar
Facilities (including the Electrical Infrastructure associated with each
Solar Facility) and the Contractor’s compliance with the obligations set
forth in this Contract, without prejudice to the provisions established
for the Guarantee Period. In order to issue a Provisional
Acceptance Certificate for a Solar Facility, proper operation of the
General Electrical Infrastructure in order to meet the installed capacity
of the Solar Facilities in operation at such time must also be
verified.
|
-
|
Contractor: means
SUNPOWER ENERGY SYSTEMS SPAIN, S.L. and any other
company that may succeed it in its obligations in accordance with the
provisions of this Contract.
|
-
|
Contract: means this
contract together with the Annexes hereto. In the event of conflict
between one or more of the contractual documents, the body of this
Contract shall prevail.
|
-
|
Maintenance Agreement:
means the Maintenance Agreement entered into by the Contractor and
the Owner on even date herewith, providing for the assumption by the
Contractor of the maintenance work for the Solar Park upon execution of
the Solar Park Provisional Acceptance
Certificate.
|
-
|
Environmental Impact
Declaration: means the declaration attached as Annex
10.
|
-
|
Systemic Defect: is an
operational failure of the Solar Facilities of the Solar Park occurring
during the Production Guarantee Period that (i) is not caused by
non-conforming performance of the Work by the Contractor under this
Contract, the Technical Specifications, the Construction Model or the
regulations applicable to the Work (in accordance with the terms of this
Contract), and (ii) that
|
|
§
|
is
the same failure or is a failure that affects, at least: 0.5% of the solar
modules, 10 or more inverters or their corresponding peripheral systems,
10 or more trackers, or 4 or more transformers (including breakers and
switches) supplied by the same manufacturer for the Solar Park;
or
|
|
§
|
the
relevant supplier or well-known independent third party in the solar
industry reports that at least 1% of worldwide production of the
corresponding model of solar module, inverter, tracker or transformer is
affected by the same operational failure and advises replacement thereof
(in which event the Owner must receive proof in the form of delivery of a
document signed by the manufacturer or of a report from an
independent third party which confirms the existence of said systemic
failure with reference to the model and series of the affected
equipment).
|
-
|
Business Day: means any
day other than a bank holiday in Madrid, London and Olivenza (Badajoz),
Saturdays expressly excluded as Business Day. For payment purposes (or for
calculating terms of payment set forth in this Contract), any day other
than a bank holiday in Madrid, London and New York, Saturdays expressly
excluded as Business Day.
|
-
|
Authorized Equipment:
means the list of brands and models of the principal equipment or elements
that will make up the Solar Facilities and the Electrical Infrastructures
described in Annex
8 hereto.
|
-
|
Site: means the site
where the Solar Park will be built, located in the municipality of
Olivenza (Badajoz) with coordinates 38º73’19 north, 7º8’25 west, altitude
206 meters over the sea level, formed by land properties 12939, 12938,
6911 and 14536 of the Olivenza Land
Registry.
|
-
|
Technical Specifications:
means the technical conditions for executing the Work that were
prepared by the Contractor and delivered to the Owner, and that make up
Annex
2.
|
-
|
Environmental Impact
Study: means the mandatory environmental report to get the
Environmental Impact Declaration according to the regulation applicable to
the Site, a copy of which is attached as Annex
10.
|
-
|
Delivery Deadline: means
July 15, 2008.
|
-
|
***
|
-
|
***
|
-
|
Payment Milestones:
means the milestones for the payment of the Contract Price, as described
in Clause 4.2 below.
|
-
|
Technical Milestones:
means the technical milestones described in Annex
3.
|
-
|
Specific Electrical
Infrastructure: means the entirety of
the electrical elements permitting the evacuation to the distribution grid
of the electrical power produced by each of the Solar Facilities,
including from the Solar Facilities to the specific transformer center for
such Solar Facility.
|
-
|
General Electrical
Infrastructure: means the entirety of
the electrical elements permitting the connection of each of the Solar
Facilities, from the specific transformer center, in order to permit the
evacuation of electrical power generated by each Solar Facility to the
distribution grid, including the Evacuation Line, the distribution and
sectioning center, the substation and supplemental
elements of supervision, monitoring and data
collection.
|
-
|
Electrical
Infrastructure: collectively, the General Electrical
Infrastructures and the Specific Electrical
Infrastructures.
|
-
|
Solar Facility: means
the entirety of the electromechanical elements that allow for the
generation of low voltage (“LV”) electrical power, including from the
solar modules themselves, solar trackers, and inverters, to the LV meter,
with a peak unit capacity of approximately 120
kWp.
|
-
|
Evacuation Lines: the 20
kV output electrical evacuation line of the distribution center of the
General Electrical Infrastructure, necessary to connect such
Infrastructures to the substation of the power distribution company
(Endesa) in Olivenza (Badajoz).
|
-
|
Change Order: means a
document signed by the Contractor and the Owner pursuant to which a change
is agreed upon in the Scope of Work, the Contract Price or the Execution
Schedule, or any other modification, as provided in this
Contract.
|
-
|
Solar Park: means the
entirety of the one hundred fifty (150) Solar Facilities having
approximately 120 kWp of peak capacity and 100 kWe at the inverter, with a
total peak capacity of 18 MWp, located at the Site, including the
Electrical Infrastructure and any other facilities that, in accordance
with the terms of this Contract, may be necessary for its
Start-Up.
|
-
|
Guarantee Period: means
the period between the signing of the Provisional Acceptance Certificate
for the first Solar Facility until satisfaction of the conditions for the
execution of the Final Acceptance
Certificate.
|
-
|
Production Guarantee Period:
means the period between the execution of the Solar Park
Provisional Acceptance Certificate and *** following execution of such
certificate.
|
-
|
Contract Price: The
price payable by the Owner to the Contractor for the performance of the
obligations contained in this Contract, the amount of which is set forth
in Clause 4 of the Contract. For purposes of this Contract, the
price corresponding to an individual Solar Facility shall be the amount
obtained by dividing the total Contract Price by the one hundred fifty
(150) Solar Facilities.
|
-
|
Implementation Schedule:
means the schedule for the implementation of the Scope of Work,
which is attached as Annex
3 to this Contract.
|
-
|
Owner: means
SEDWICK CORPORATE, S.L., as well as any
company subrogating to its contractual position in accordance with the
provisions of this Contract.
|
-
|
Overall Test: means the
test described in Annex
4, to be performed as a prerequisite to the execution of the Solar
Park Provisional Acceptance Certificate to verify the proper operation of
all Solar Facilities and the Electrical Infrastructure. The Overall Test
will definitively verify the proper operation of the General Electrical
Infrastructure to absorb the power discharged by all Solar
Facilities.
|
-
|
Performance Tests: means
the tests described in Annex
4, to be performed as a prerequisite to the execution of each Solar
Facility Provisional Acceptance Certificate to verify the proper operation
of the corresponding Solar Facility and Electrical Infrastructures.
Pursuant to the provisions of Clause 5.2(1), each Performance Test will be
performed on a minimum of ten (10) Solar Facilities (with their
corresponding Electrical
Infrastructures).
|
-
|
Production Tests: means
the tests that will be performed at the end of the Production Guarantee
Period in order to determine compliance with the Production Guarantee set
forth in Clause 8.4, following the protocols set forth in Annex
4.
|
-
|
Start-up: means, with
reference to a particular Solar Facility and/or Electrical Infrastructure,
the point when all of the work required by this Contract has been
completed and all Performance Tests have been passed in accordance with
this Contract and the Annexes hereto, the Provisional Acceptance
Certificate has been executed and the corresponding Final Start-up
Certificate has been received (as confirmed by the Legal Advisor).
Reference to Start-up of a Solar Park shall be understood to mean the
point when all Solar Facilities and corresponding Electrical
Infrastructures have passed the Overall Tests and comply with the above
referenced requirements.
|
-
|
RD 661: Royal Decree No.
661/2007, of May 25, which regulates activities involving the production
of power under special regime.
|
-
|
Subcontractors: means
the subcontractors with which the Contractor subcontracts all or part of
the works to be executed under this
Contract.
|
-
|
Work: means the work and
supplies to be provided by the Contractor pursuant to the provisions of
this Contract.
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
2.1
|
Purpose
of the Contract
|
2.2
|
Scope
of Work
|
(1)
|
According
to the terms and conditions of this Contract, the Contractor shall carry
out and shall be responsible for all of the equipment, services, supplies
and work comprising the Scope of Work. The Scope of Work includes each of
the following concepts, as well as all acts that, even if not expressly
mentioned in this Contract or in Annex
2, are necessary for the proper operation, performance and
commercial exploitation of the Solar Park, in each case in accordance with
the customary usage and practices in the industry for a project having
these characteristics, this Contract, the Technical Specifications, and
applicable law (without prejudice to the provisions of Clause
2.4(4)):
|
|
§
|
Design,
engineering (basic and detailed) and required technical
schedules.
|
|
§
|
Execution
of all aspects of the Scope of Work and the supply of all materials,
elements and equipment set forth in Annex
2, and the supply of all materials necessary and appropriate to
properly carry out the Scope of
Work.
|
|
§
|
Performance
of inspections, inventory of materials, performance controls, tests and
other analyses required under applicable law and in accordance with the
technical specifications and this
contract.
|
|
§
|
Transportation
to the Site of all materials, equipment, utilities, spares parts,
consumables and machinery for which the Contractor is responsible under
the Contract.
|
|
§
|
Direct
and indirect labor necessary to carry out the Scope of Work and all costs
and social charges associated with such
labor.
|
|
§
|
Demolition
and dismantling of the provisional facilities not required by the Owner
and conditioning and cleaning of the Site following issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Maintenance,
protection, security, custody and conservation of the equipment installed
or stored at the Site up to the signing of the Solar Park Provisional
Acceptance Certificate.
|
|
§
|
Preparation
and delivery to the Owner of all documentation within the scope of this
Contract, sufficiently in advance for the utilization thereof by the
Owner. In particular, the delivery of the documentation and manuals set
forth in Annex
2.
|
|
§
|
***
|
|
§
|
Training
of the Owner’s personnel in the operation and maintenance of the materials
and equipment acquired in accordance with the terms of Clause 6.7 of this
Contract.
|
|
§
|
Construction
of all necessary auxiliary facilities, their maintenance, cleaning and
security during the performance of the Work, including that performed in
compliance with the regulations for the Prevention of Occupational Risks
and the Social Security and Health Plan; as well as the demolition or
dismantling of any temporary facilities not required by the Owner and the
conditioning and clearing of the Site following the issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Supply
of spare parts pursuant to the provisions of Clause
6.3.
|
|
§
|
Provision
of material and human resources required to comply with the regulations
for the Prevention of Occupational Risks and the Social Security and
Health Plan, as well as the creation of the Social Security and Health
Plan.
|
2.3
|
Exclusions
|
2.4
|
Changes
in the Scope
|
(1)
|
Under
no circumstances may the Parties make any changes to the Scope of Work
contemplated by this Contract (of any kind, whether for expansions,
reductions or changes to any portion of the work and/or the items supplied
under this Contract); unless a Change Order has previously been
signed.
|
(2)
|
At
any time prior to Provisional Acceptance, the Owner may propose a change
to the Scope of Work by sending the Contractor a notice describing the
nature and scope of the change. Upon receipt of such notice, the
Contractor must send to the Owner, within a maximum period of ten (10)
Business Days, a communication that includes a complete proposal for the
changes in the Contract Price, deadlines and form of payment, or any other
changes that may be necessary in connection with the changes proposed by
the Owner. This communication shall also include a reasoned explanation of
the grounds and/or criteria used for the calculation of the new Contract
Price and/or deadline.
|
(3)
|
The
Contractor may, at any time during the performance of the Contract,
propose changes to the Scope of Work that it deems necessary or
appropriate to improve the quality, efficiency or safety of the Solar Park
or the facilities or supplies that make up the Solar Park. The Owner, at
its discretion, may approve or reject the changes proposed by the
Contractor. The Parties will execute a Change Order in the
event that the modifications are approved by the
Owner.
|
(4)
|
In
addition, upon the entry into force, promulgation, derogation or change of
any mandatory legal provision after the execution of this Contract that
affects the Work, the Parties shall sign a document governing the changes
that must be made to the purpose of this Contract including the extension
of the terms set forth in this
Contract.
|
(5)
|
The
Owner and the Contractor shall negotiate in good faith the effects on the
deadlines agreed to under this Contract that might occur as a result of
the changes requested within the context of the provisions of this Clause.
In any event, the prices applicable to any change in the Scope of Work
shall consist of the costs of the additional work or supplies arising
therefrom (reasonably justified to the Owner) plus ***% as the
Contractor’s margin.
|
3.
|
COMMENCEMENT
OF WORK
|
(1)
|
The
Owner acknowledges that the Works have already started. Notwithstanding
the above, the lack of fulfilment of the conditions provided in section
(2) below shall not give the Contractor the right to claim any kind of
payment from the Owner for the works the Contractor may have done in
relation with this Contract.
|
(2)
|
The
Parties have agreed on the following conditions with regard to the payment
to be done by the Owner of the amount provided in Clause 4.2(i) and for
the delivery by the Owner of the Performance
Bond:
|
|
(i)
|
That
the Owner has obtained all the authorisations and licences necessary for
the start of the construction of the Solar Park, with the exception of
those that are intrinsic to the construction activity, in accordance with
the provisions of Clause 6.6 (having delivered to the Contractor a copy of
those which obtaining is the responsibility of the Owner). For
clarification purposes, the Owner must have obtained the corresponding
municipal work and activity permits (if applicable), as well as the
administrative authorisation and approval of the Electrical Infrastructure
Project, the connection point of the Solar Facilities and the
Environmental Impact Declaration for all the Solar Facilities of the Solar
Park;
|
|
(ii)
|
That
a letter from the Financing Entities agent has been delivered to the
Contractor confirming that the Owner has been granted financing to make
the payments owed by the Owner by virtue of this Contract and that the
conditions necessary to make the initial payment have been
met;
|
|
(iii)
|
That
the Contractor has confirmed to the Owner that the Site is fully
accessible and available for the start of the Works;
and,
|
|
(iv)
|
That
the Contractor has delivered the Corporate Guarantee to the
Owner.
|
(3)
|
In
the event that conditions (a) and (b) above have not been fulfilled within
fifteen (15) Business Days as from the date hereof; or, (b) all the
conditions having been fulfilled, the Condition Satisfaction Date has not
occurred by the ninth Business Day following the date the fifteen (15)
Business Days term expires, the Contractor and the Owner may terminate the
Contract by delivery to the other Party of a notice setting forth its
desire to terminate the Contract, and the Parties shall be released from
all obligations assumed with respect thereto. For the sake of clarity, no
Party shall be entitled upon the termination of this Contract in
accordance with this paragraph to claim any amount from the other Party as
consequence of such termination.
|
(4)
|
In
spite of the provisions of section 2 (iii) above, the Contractor
represents that, prior to the execution of this Contract, it has studied
the subterrain, surroundings and access
thereto.
|
4.
|
PRICE
AND FORM OF PAYMENT
|
4.1
|
Contract
Price
|
(1)
|
The
Contract Price payable by the Owner to the Contractor in consideration for
the works to be performed by Contractor under this Contract shall be ***
Euros. This amount shall be increased by an amount corresponding to Value
Added Tax (VAT) pursuant to applicable law at any given time. The
Contractor hereby acknowledges and agrees that the Contract Price is a
lump-sum, fixed, and final price, and is not subject to any change or
revision whatsoever on the basis of any changes in the prices of labor,
materials, equipment, exchange rates or any other similar items, including
a change in any taxes levied on the scope of the
work.
|
(2)
|
The
Contract Price includes all the costs and expenses associated with the
Contractor’s performance of work under the Contract, including those
specifically set forth in the Scope of Work. The Contract Price shall be
deemed to include, by way of
example:
|
|
§
|
taxes,
fees, industrial- and intellectual-property royalties on the equipment
supplied, Social Security and other encumbrances upon the supplied
equipment and materials in their country of origin or destination,
including, if applicable, the rights of free circulation in the European
Union and any other tax with respect to the importation of the Equipment
and the performance of the Work, except for the VAT on the actual Contract
Price. For purposes of clarification, the Price does not include
legalization fees or costs for permits and authorizations, which are the
responsibility of the Owner.
|
|
§
|
payroll
costs and the cost of equipment required for the Contractor’s performance
of the Work or to ensure the protection, security and proper performance
thereof.
|
|
§
|
the
cost of any insurance that must be taken out by the Contractor pursuant to
Clause 11.
|
(3)
|
In
the event of changes in the Scope of Work agreed to pursuant to the
provisions of this Contract, the price agreed to in the corresponding
Change Order shall apply.
|
(4)
|
Without
prejudice to the foregoing, in consideration for the maintenance and
security tasks to be performed by the Contractor prior to the execution of
the Solar Park Provisional Acceptance Certificate, the Owner shall pay to
the Contractor (in addition to the Contract Price), the portion of the
price contemplated in the Maintenance Agreement that is equivalent to the
percentage representing the Solar Facilities that have obtained the
Start-up with respect to all Solar Facilities contemplated by this
Contract.
|
4.2
|
Payment
Milestones
|
|
(i)
|
On
the Condition Satisfaction Date, an amount equal to ***% percent of the
Contract Price, i.e., *** Euros, upon delivery of the Performance Bond by
the Contractor.
|
|
(ii)
|
Based
on the monthly progress of the civil works involving earth moving,
leveling and foundation laying, measured as 100 kWe Solar Facilities whose
foundations are completed, the Owner will pay up to a maximum of ***
percent (***%) of the Contract Price, i.e., *** Euros, upon presentation
of the respective invoices by the
Contractor.
|
|
(iii)
|
Upon
each delivery to the Site of the module supports, inverters and trackers
of each Solar Facility and presentation of the corresponding invoices not
earlier than two (2) months prior to the dates indicated in the
Implementation Schedule, the Owner shall pay up to a maximum of *** (***%)
percent of the Contract Price corresponding to such Solar
Facilities.
|
|
(iv)
|
Upon
each delivery of the solar modules of each Solar Facility to the Site and
upon presentation of the corresponding invoices not earlier than the dates
indicated in the Implementation Schedule, the Owner shall pay up to a
maximum of *** (***%) percent of the Contract Price corresponding to such
Solar Facilities.
|
|
(v)
|
Based
on the monthly progress of the mechanical assembly of the module supports,
solar trackers and the modules mounted thereon, as well as the
installation of the inverters and the transformer center, measured as
Solar Facilities of 100 kWe whose facilities up to the transformer center
have been completed, the Owner will pay up to a maximum of *** (***%)
percent of the Contract Price, upon presentation of the respective
invoices.
|
|
(vi)
|
Upon
the execution of each Provisional Acceptance Certificate for a Facility,
the Owner shall pay *** (***%) percent of the Contract Price corresponding
to such Solar Facility (together with the remaining portion of the
Contract Price, if any, that was not previously paid and that corresponds
to Work completed by the Contractor under this Contract in respect of such
Solar Facility). The last Solar Facility payment shall be made
concurrently with the execution of the Solar Park Provisional Acceptance
Certificate.
|
4.3
|
Invoicing
System and Form of Payment
|
(1)
|
Once
the Contractor deems that a Payment Milestone has been achieved, the
Contractor shall give written notice thereof to the Owner and the
Technical Advisor, attaching thereto the invoice and any documentation
that may be necessary to demonstrate achievement of the corresponding
Payment Milestone (including, for this purpose, all of the documentation
that must be furnished by the Contractor to the Owner at any time,
pursuant to the provisions of Annex
2).
|
(2)
|
Within
fifteen (15) Business Days following receipt of the above-mentioned
notice, the Owner will confirm the achievement of the corresponding
Payment Milestone. Within such period, the Owner will communicate in
writing to the Contractor: (i) their agreement that
the corresponding Payment Milestone has been achieved, in which case the
Owner will provide documentary confirmation by approving the corresponding
invoice, or (ii)
that the Payment Milestone has not been fully achieved, in which case the
Owner must specify in writing to the Contractor a detailed and
reasoned explanation of the work pending performance in order for the
Payment Milestone to be deemed to have been achieved. In the
event that the Owner fails to respond to the Contractor within the
above-mentioned period of fifteen (15) Business Days, due solely to the
failure of the Contractor to provide all documentation required to verify
achievement of the Payment Milestone, the Owner agrees to request the same
within the above period of fifteen (15) Business Days. The Owner will be
allotted another ten (10) Business Days to issue their response, counting
from the date of receipt of all requested
documentation.
|
(3)
|
If
the Owner does not agree that a Payment Milestone has been achieved, the
Owner shall be entitled to return the corresponding invoice until the
Contractor has completed the work in accordance with the provisions of
this Contract. However, if the Parties agree that the disagreement
involves only part of the work included in the Payment Milestone, the
Owner shall pay the invoice amounts corresponding to the work not affected
by the dispute, with the rest remaining subject to full performance and
delivery by the Contractor in accordance with the terms of this
Contract.
|
(4)
|
If,
following the period referred to in subsection (2) above, the Owner has
not responded, the Contractor may send a demand notice to the Owner
communicating such fact and allowing an additional period of five (5)
Business Days for confirmation of their agreement or disagreement as to
the achievement of the respective Payment Milestone. If, upon expiration
of such period, the Owner still has not responded, achievement of the
Payment Milestone shall be deemed accepted by the
Owner.
|
(5)
|
Under
no circumstances shall the Owner’s agreement to a Payment Milestone imply
acceptance of the Work associated therewith, which acceptance shall in any
event remain conditioned upon passing the Performance Tests and executing
the respective Provisional Acceptance Certificate and, ultimately, the
Final Acceptance Certificate.
|
(6)
|
Payments
shall be made by the Owner to the Contractor via bank transfer to the bank
account designated by the Contractor within *** Business Days following
the date on which the Owner accepted the corresponding Payment Milestone
(or on the date on which the Payment Milestone was deemed accepted by the
Owner, in accordance with subsection (4) above). On an exceptional basis,
the payment corresponding to the first Payment Milestone shall be paid by
the Owner on the Condition Satisfaction Date (with respect to such
payment, approval of a Payment Milestone by the Contractor and the Owner
pursuant to the above provisions is not required)
.
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL
ACCEPTANCE
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
(1)
|
The
Contractor hereby undertakes to perform the Work in accordance with the
Implementation Schedule attached hereto as Annex
3, such that the Solar Park Provisional Acceptance Certificate is
executed no later than the Delivery
Deadline.
|
(2)
|
The
dates for performance specified in the Implementation Schedule and, in
particular, the Delivery Deadline, are fixed and final, and may not be
postponed, and the performance deadlines may not be extended, except under
the following circumstances:
|
|
(i)
|
due
to agreed-upon changes in accordance with the provisions of Clause 2.4,
provided that such changes include an extension of the
deadlines;
|
|
(ii)
|
due
to a breach by the Owner giving rise to a delay in the Work (including,
specifically, delays in procuring authorizations and licenses for which it
is responsible or in the signature of the corresponding “Installations
Assignment Agreement” with the relevant utility company), provided that
such breaches are not attributable to actions, omissions or breaches by
the Contractor;
|
|
(iii)
|
suspension
of the Work in accordance with the provisions of Clause 13, except in the
event of suspensions attributable to the Contractor;
or
|
|
(iv)
|
the
occurrence of an event of Force Majeure that
reasonably justifies an extension of the deadlines established in the
Implementation Schedule.
|
(3)
|
The
Contractor must inform the Owner of the alleged facts or causes, in
writing and within a maximum period of ten (10) Business Days after the
Contractor becomes aware thereof, and the communication must be
accompanied by all available information and data on such date that
substantiate such facts and the consequences thereof on the Work, the
extension (if such extension can be determined) proposed by the
Contractor, and a detailed explanation of the measures adopted to mitigate
the consequences thereof.
|
5.2
|
Performance
Tests and Provisional Acceptance
|
(1)
|
Upon
completion of the construction of a group of at least ten (10) Solar
Facilities, or of the Solar Park, the Contractor shall notify the Owner so
that, within a maximum period of seven (7) Business Days, the Performance
Tests or the Overall Test may be commenced . All Tests shall be conducted
in accordance with the Test procedures and protocols attached hereto as
Annex
4. The Contractor agrees that the Performance Tests and
the procedures set forth in this Clause shall begin only when at least ten
(10) Solar Facilities are ready for provisional
acceptance.
|
(2)
|
Once
the Owner and the Technical Advisor have verified that the Performance
Tests (or, if applicable, the Overall Test) have been passed in accordance
with the standards set forth in this Contract and that the Owner has
received all documentation set forth in the Scope of Work, the Contractor
and the Owner shall execute the corresponding Provisional Acceptance
Certificate for the Solar Facilities delivered or the Provisional
Acceptance Certificate for the Solar Park, as applicable, provided that
the following conditions have been
met:
|
|
a)
|
The
Work corresponding to the applicable Solar Facilities, or, if applicable,
the Solar Park, has been satisfactorily
completed.
|
|
b)
|
All
of the documentation that the Contractor must submit in accordance with
the provisions of Annex
2 has been submitted to the
Owner;
|
|
c)
|
The
spare parts specified in Clause 6.3 have been made available to the
Owner;
|
|
d)
|
That
the Final Start-Up Certificate has been obtained in respect of the
appropriate Solar Facility or for the Solar Park, as appropriate. This
notwithstanding, the Contractor will not in any event be responsible for
(i) delays in obtaining the Final Start-Up Certificate with regard to the
corresponding Solar Facility or for the Solar Park that are produced as a
result of the late application or obtaining (or of not obtaining) those
licenses and authorizations which, in accordance with this Contract, are
not the Contractor’s responsibility;
or
|
|
e)
|
With
respect to the Solar Park Provisional Acceptance Certificate, the
Contractor has delivered to the Owner the Guarantee Bond in the amount
specified in Clause 8.5; and
|
|
f)
|
That
any technical penalties or for delays due to the Contractor by virtue of
the provisions of this Contract in connection with the corresponding Solar
Facility (or, in the case of the Solar Park Provisional Acceptance
Certificate, for the whole of the park) have been paid to the
Owner.
|
(3)
|
The
deadlines granted to the Contractor for completion of pending punch list
items upon execution of a Provisional Acceptance Certificate shall not be
considered an extension of the deadlines set forth in this Contract, and
the Contractor shall indemnify the Owner for any damages that the Owner
may incur as a result thereof pursuant to Clause 5.2(a)
above.
|
(4)
|
In
the event that the Owner does not execute the Provisional Acceptance
Certificates for the respective Solar Facilities (or, if
applicable, the Solar Park) within seven (7) Business Days of verifying
compliance with the stipulated requirements, the Contractor may request in
writing that the Owner execute the respective Certificate within an
additional period of five (5) Business Days. If the Owner has not executed
the new Provisional Acceptance Certificates for the Solar
Facilities (or, if applicable, the Solar Park) within said
period, the conditions required in this clause for execution of the
corresponding Certificate have been satisfied, it shall be understood that
provisional acceptance has been achieved, except to the extent
discrepancies exist as to the performance of the conditions required by
the same, in which event the Parties shall submit the matter to
arbitration in accordance with the provisions of Clause 20
(2).
|
(5)
|
Within
thirty (30) days following the execution of the Solar Park Provisional
Acceptance Certificate, the Contractor must: (i) remove from the Site any
material used in the construction, as well as any equipment, machinery,
tools, vehicles and temporary structures that are not necessary during the
Guarantee Period; (ii) clean the Site and remove any debris or waste; and
(iii) deliver the “As Built” Plans for the Solar
Park.
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
6.1
|
Prevention
of Occupational Risks
|
(1)
|
The
Contractor shall be obligated, in compliance with current legislation, to
perform the works under this Contract in such a way as to ensure the
safety of workers, and to apply the preventive activity principles set
forth in Law 31/1995 and its implementing
regulations. Accordingly, the Contractor shall be responsible
for designing the construction process in accordance with the provisions
of Royal Decree No. 1627/1997, which establish minimum safety and
health provisions for construction work, and in its the other implementing
or supplemental regulations, such that the safety of the activities that
are performed simultaneously or consecutively is ensured, and the safety
of third parties present in the vicinity of the work site is also
ensured.
|
(2)
|
In
particular, as part of the scope of this Contract, the Owner has prepared
a Safety and Health Study, and furthermore, in compliance with the
provisions of Royal Decree No. 1627/1997, the Contractor must prepare
a Workplace Safety and Health Plan, both specifically for the work
provided for within the scope of this Contract. The Contractor hereby
represents that they contain, or will contain, all requirements of such
Royal Decree and its implementing rules and regulations (including the
provisions of the autonomous communities that apply, if
any).
|
(3)
|
Furthermore,
the Owner (at the request of the Contractor) shall appoint a safety and
health coordinator, who shall have the obligations set forth in Royal
Decree 1627/1997, and who shall be responsible for ensuring that all of
personnel of the Contractor, the Subcontractors and of the suppliers of
equipment or materials under this Contract comply with the safety
requirements established in current legislation. Both the Owner and the
Contractor shall be obligated to respect and comply with their respective
obligations, as imposed by Royal Decree 1627/1997 and other applicable
rules and regulations.
|
(4)
|
The
Owner reserves the right to evaluate security during the construction
period. This does not imply that Owner has assumed
responsibility with respect to security measures taken or the preparation
of documentation or the content of such documentation referred to in this
Clause, without prejudice to the obligations and responsibilities under
law that attach as a result of Owner’s capacity as a developer. To this
effect, the Contractor shall provide to the Owner all documentation that
Owner may reasonably require in order to confirm the performance of the
obligations set forth in this
Clause.
|
(5)
|
For
clarification purposes, in no event shall the Contract Price be increased
if, as a result of a security check, legal review or technical risk
review, the Contractor is required to take additional measures designed to
guarantee compliance with applicable rules and regulations for the
prevention of occupational risks.
|
6.2
|
Obligation
to Provide Access to the Site
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
6.4
|
Quality
Control
|
6.5
|
Regulatory
Compliance
|
(1)
|
The
Contractor undertakes to observe and comply with the regulations
applicable to the performance of the Work, subject to the provisions of
subsection (3) below. In particular, the Contractor must ensure
compliance with regulations regarding classified activities, safety,
health, and environmental protection. In particular, the
Contractor shall be the only responsible party for compliance with
applicable law and regulations with respect to (i) ***, and (ii)
environmental protection during the period of manufacture, construction,
erection, Start-Up and Tests until the Solar Park Provisional Acceptance
Certificate has been executed.
|
(2)
|
The
Contractor represents that it is current in the payment of wages and
Social Security contributions for the professionals hired by the
Contractor to perform the services covered by this Contract. Accordingly,
the Contractor agrees to show to the Owner all documents that the Owner
may reasonably request evidencing compliance with wage, tax and Social
Security obligations (including, without limitation, certificates of good
standing and compliance with tax obligations and the TC1 and TC2 Social
Security dues bulletins).
|
(3)
|
In
the event of any change in the applicable rules and regulations after the
date on which this Contract is signed, the Parties shall proceed in
accordance with the provisions of Clause 2.4(4) above. In the event that
either Party does not sign the applicable change document, the Contractor
shall continue to perform the work in compliance with the rules and
regulations previously in force, and shall not assume any responsibility
for any breach of the applicable new rules and
regulations.
|
6.6
|
Permits
and Authorizations
|
(1)
|
***
|
(2)
|
For
clarification purposes failure to obtain the Final Start-up Certificate in
the date set forth in Clause 14.1(g), will entitled the Owner to terminate
the Contract according to Clause 14 (without prejudice of Clause 14.1.6)
except in case such failure if this failure was due to (i) the Owner’s
failure to deliver of the documentation requested by the Contractor and
which Owner was required to furnish for the obtaining of the Final
Start-up Certificate or (ii) the late request or obtaining or the failure
to obtain such permits and authorizations that are not the responsibility
of the Contractor pursuant to this
Contract.
|
6.7
|
Training
of the Owner’s Personnel
|
6.8
|
Designation
of Project Director
|
(1)
|
The
Contractor shall name a Project Director with an officially recognized
technical degree and relevant industry experience with similar
projects. The appointment of the Project Director must be
submitted to the Owner for approval. The Owner may not reject a proposed
candidate without just cause.
|
(2)
|
The
Project Director shall be responsible for overseeing proper performance of
the Work and for directing, managing, and supervising all of the
activities necessary for the implementation of the services agreed to by
the Contractor in accordance with the terms and time periods specified in
this Contract. Further, the Project Director shall be the
principle contact between the Contractor and the Owner during the term of
this Contract.
|
(3)
|
Without
prejudice to the foregoing subsection, in accordance with the terms of
this Contract and applicable law, the Contractor shall be responsible for
the actions of the Project Director and any and all consequences arising
from such actions.
|
6.9
|
Taxes
and Import Duties
|
6.10
|
Intellectual
and Industrial Property Rights
|
6.11
|
Cooperation
|
7.
|
OBLIGATIONS
OF THE OWNER
|
|
(i)
|
To
comply with its payment obligations under this
Contract;
|
|
(ii)
|
To
provide to the Contractor, its Subcontractors and employees, during the
effective term of this Contract, access to the Site to fulfill their
contractual obligations, including appropriate access to highways and
access roads to perform the Work. For these effects, the Owner will
execute, at its cost and expense, agreements with landowners that procure
all necessary easements or land use
rights;
|
|
(iii)
|
Process
and obtain, at his cost and responsibility, the licenses and
authorizations necessary for the start of the construction (amongst which
are included, but not restricted to, the corresponding municipal building
and activity licenses, if required, as well as the administrative
authorization and approval of the Electrical Infrastructure Project, the
connection point for the Solar Facilities and the environmental permits
for all the Solar Facilities in the Solar Park), as well as all the
licenses necessary for the Start-Up and operation of the Solar Park, other
than the Final Start-Up
Certificate;
|
|
(iv)
|
Provide
the Contractor with all the documentation and collaboration that is
reasonably required to obtain the Final Start-Up
Certificate and other licenses and authorizations that the
latter must obtain as set forth in this Contract, and that must be
provided by the Owner;
|
|
(v)
|
To
cooperate with the Contractor, to the extent necessary, in order to avoid
any impact on the Implementation Schedule or in the performance of the
works by the Contractor;
|
|
(vi)
|
To
appoint a project coordinator to act on behalf of the Owner in the
performance of matters associated with the Contract and who must possess
sufficient powers to represent the Owner. The Owner’s project coordinator
will be Mr. Juan Ignacio Marti Junco except in case a notice communicating
the change of project coordinator has been sent by the Owner to the
Contractor;
|
|
(vii)
|
The
Owner undertakes to provide to the Contractor all of the cooperation that
the latter may reasonably request in connection with the implementation of
the Work and compliance with the Contractor’s obligations under this
Contract. The Owner shall submit to the Contractor all
documentation or information that the Contractor may reasonably request in
connection with the Solar Park and that is available to the
Owner.
|
8.
|
GUARANTEES
|
8.1
|
Solar
Module Degradation Guarantee
|
|
The
Contractor guarantees the durability of the solar modules during the
Guarantee Period, in accordance with the schedule of guarantees made by
the manufacturer of the modules set forth on Annex
6 of this Contract. Upon expiration of the Guarantee
Period, the Contractor undertakes to assign to the Owner its rights under
the module supplier guarantees through the remainder of the 25-year useful
life of the modules.
|
8.2
|
Solar
Module Capacity Guarantee
|
(1)
|
The
Contractor guarantees that the total peak capacity of the Solar Park is
equal to or higher than the contracted capacity of 18,000 kWp (which will
be confirmed by the manufacturer’s photoflash certificates). In addition,
all certificates for each module shall be within the rated peak capacity
margin of ***% and all aggregate certificates for each of the Solar
Facilities shall be within the rated peak capacity margin of ***%
(although the Solar Park aggregate will not have a margin with respect to
the above referenced peak
capacity).
|
(2)
|
In
the event that (i) the total sum of the certificates is less than the
contracted 18,000 kWp, or (ii) the certificates do not comply with the
above referenced margins, the Contractor shall replace, at its expense,
solar modules as needed to increase the total peak capacity of the Solar
Park to the minimum permitted under subsection (1) above, or those modules
whose individual capacity is inferior to the aforementioned
tolerance.
|
(3)
|
If,
as of the Delivery Deadline (or the date set forth in Clause 14.1(1)(i) if
this is a later date), the sum of the manufacturer’s photoflash
certificates demonstrate the peak capacity of the Solar Park is less than
the referenced total peak capacity, the Owner may terminate the Contract
for Contractor breach in accordance with the terms of Clause 14.1, and pay
the indemnity set forth in such
Clause.
|
(4)
|
The
Owner reserves the right to perform capacity tests on the solar module
samples that have been provided at the CIEMAT, CENER or IFE-Frauhofer
laboratories, in accordance with the applicable IEC (International
Electrotechnical Commission) standard in order to confirm their compliance
with the capacity specified by the manufacturer and guaranteed by the
Contractor. The results thereof shall be binding on the Parties. In the
event that such results confirm that the capacity of the modules does not
fall within the tolerance guaranteed by the Contractor, the Contractor
shall bear the costs of such tests and shall immediately replace the
entire batch of modules corresponding to the tested samples, except to the
extent that the modules failing the capacity test can be identified, in
which case, only those modules shall be
replaced.
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
8.3.1
|
Design, Assembly and
Performance Guarantee
|
(1)
|
The
Contractor guarantees during the Guarantee Period that the procedures
followed for the design of the facilities and for the performance of the
work are of the required quality and conform to the specifications
contained in this Contract.
|
(2)
|
The
Contractor is obliged to repair or, if necessary in its opinion, to supply
totally new, and reinstall free of charge to the Owner, those parts or
components of the facilities included in the Scope of Work that fail
during the Guarantee Period due to design, assembly or performance
defects.
|
(3)
|
The
provisions of subsections 8.3(2) to (8) below with respect to the
Materials Quality Guarantee shall apply, mutatis mutandis, to
the guarantee provided under this
subsection.
|
8.3.2
|
Materials Quality
Guarantee
|
(1)
|
The
Contractor guarantees that all the materials and components used in the
manufacture, assembly and Start-up of the Solar Park are of the required
quality and conform to the specifications for the equipment and the
technical documents contained in the Annexes to this
Contract. The Contractor further guarantees a minimum stock of
spare parts to the Owner in accordance with the terms of Clause 6.3 and
Annex
5 of this Contract.
|
(2)
|
The
materials quality guarantee will enter into force on the date of issuance
of the relevant Solar Park Provisional Acceptance Certificate and shall
remain in force until the Solar Park Final Acceptance Certificate is
signed. If the Solar Park or a portion thereof, cannot be commercially
operated during the Guarantee Period for reasons attributable to the
Contractor, the Guarantee Period shall be extended (only as regards the
affected facilities) for a period equal to the period during which the
corresponding facilities are not operating. For this purpose,
the parties shall record in writing the periods during which operation is
suspended and the corresponding extensions of the
guarantee.
|
(3)
|
During
the Guarantee Period, the Contractor is required, in its
discretion:
|
|
a)
|
To
replace any material and equipment that do not comply with what was agreed
upon or required pursuant to this Contract, or that are inadequate or of a
deficient quality; and
|
|
b)
|
To
adjust, repair or replace any equipment exhibiting any design, materials,
manufacturing, operation, or performance defect. If a Systemic Defect
exists with respect to any equipment or components supplied under this
Contract, the Contractor shall carry out, at its expense, the redesign
and/or modifications necessary to cure such problem in accordance with the
Owner’s requirements.
|
(4)
|
The
adjustments, repairs or replacements must be performed within the shortest
period that is reasonably possible (and, in any event, no later than
fifteen (15) days from the time the defect is detected), in a manner that
is least prejudicial to the Owner and taking all action needed to cause
the least possible harm to the operation of the overall facilities of the
Solar Park.
|
(5)
|
Repairs,
adjustments, alterations, replacements or maintenance that may be
necessary because of the normal wear and tear of on the facilities
provided under this Contract or caused by misuse or negligent use of the
equipment by the Owner or by third parties (other than the Contractor or
its Subcontractors) or because of the use of the equipment supplied to
Owner in a manner that does not conform to the technical specifications,
are all excluded from the scope of the guarantee. For
clarification purposes, it shall be understood that the Owner (or third
parties acting on its behalf) has used equipment in the intended manner
when such use conforms to the operation and maintenance manuals delivered
to the Owner by the Contractor pursuant to this Contract. This
guarantee will not be enforceable in the event of the inaccessibility of
the Site, provided that the Contractor has notified the Owner of the
existence of such inaccessibility, or, in the events of Force Majeure (whilst
the circumstances preventing access
last).
|
(6)
|
The
obligations arising from the guarantee set forth in this section shall be
fulfilled by the Contractor at its sole cost and expense and free of any
charges or expenditures by the Owner, and the Contractor shall bear the
expenses arising as a result thereof for the Owner, such as demolition and
disassembly, construction, carting, insurance and packaging for returned
materials and their replacement, assembly and supervision, taxes and the
like.
|
(7)
|
All
repaired or replaced material shall carry a new guarantee period of the
following duration from the date of repair or
replacement:
|
|
(i)
|
if
repaired, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is longer;
and
|
|
(ii)
|
if
replaced, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is
longer.
|
(8)
|
The
Contractor guarantees the availability of spare parts for the modules;
inverters and solar trackers during the Guarantee Period and during the
entire useful life of each Solar Facility, in the latter case provided the
Maintenance Agreement remains in force. The Contractor shall provide such
guarantee on the following terms:
|
|
(i)
|
With
respect to the module, inverter or solar tracker spare parts that are
manufactured by the Contractor or by companies of its group (currently
headed by Sunpower Corporation), the Contractor shall ensure that such
spare parts continue to be manufactured or, in the event that the
Contractor or the companies of its group do not manufacture spare parts
identical to those already installed, that spare parts for modules,
inverters or solar trackers of similar characteristics (and, in the case
of modules, of equal or greater capacity) are available, provided they do
not entail a reduction in the guaranteed performance of the Solar
Park.
|
|
(ii)
|
With
respect to the module, inverter or solar tracker spare parts that are not
manufactured by the Contractor or by companies of its group, the
Contractor shall use reasonable efforts to (a) cause the respective
suppliers to continue to manufacture such spare parts or other spare parts
with similar characteristics (and, in the case of modules, of equal or
greater capacity), provided they do not entail a reduction of the
guaranteed performance of the Solar Park, or (b) obtain such spare parts
with similar characteristics from other vendors with technical
capabilities that are at least similar to the original
ones. Should the Contractor become aware that an original
vendor intends to stop manufacturing such spare parts, it shall so notify
the Owner so that the Owner may order, through the Contractor, the spare
parts it deems appropriate, provided they are available on the
market.
|
8.4
|
Solar
Park Production Guarantee.
|
(1)
|
The
Contractor guarantees to the Owner that the aggregate electric output of
the Solar Park during each of the *** periods included in the Production
Guarantee Period shall reach the PR guaranteed pursuant to Annex
11 (the “Guaranteed PR”), for
each determined irradiance and temperature condition, and that in no event
shall it fall beneath the PR minimum set forth in such Annex (the “Minimum
PR”).
|
(2)
|
A
Production Test shall be performed at the end of each *** period dividing
the Production Guarantee Period in order to confirm the electrical
output. For these purposes, within the forty-five (45) days
prior to the termination of the *** period following the execution of the
Solar Park Provisional Acceptance Certificate, and within the forty-five
(45) days prior to the termination of the Production Guarantee Period, the
Contractor shall notify the Owner of such circumstance so that the Parties
may agree upon a date the perform the Production Tests for the
corresponding *** period (which, in no event may be later than the date
which is fifteen (15) Business Days following the date of termination of
the period which is *** following the execution of the Solar Park
Provisional Acceptance Certificate or the termination date of the
Production Guarantee Period, as applicable). The following shall apply to
the results of the Production Tests for the Solar
Park:
|
|
(a)
|
If
the actual measured output of the Solar Park is less than the Guaranteed
PR for the corresponding *** period (as such term is defined in Annex
11 but is greater than the Minimum PR for such period, the
Contractor shall pay to the Owner the penalties set forth in Annex
11, up to a maximum of ***% of the Contract Price.
|
|
(b)
|
If
the actual measured output of the Solar Park is less than
the Minimum PR for the corresponding *** period, the
Owner may elect to: (i) return the entire
Solar Park to the Contractor (or the part thereof that has achieved the
Start-Up), the Contractor then being obligated to return the entire
Contract Price paid by the Owner pursuant to this Contract and to
indemnify the Owner for damages pursuant to Clause 14.1(5), or (ii) return the Solar
Facilities causing the failure to achieve the Minimum PR to the
Contractor, the Contractor then being obligated to return the portion of
the Contract Price corresponding to such Solar Facilities and to indemnify
the Owner for damages pursuant to Clause 14.1(5) that correspond to the
returned Solar Facilities.
|
(3)
|
If
the Guaranteed PR is reached in the Production Tests for each *** period,
or if the Contractor shall have paid the required penalties for achieving
an output between the Minimum PR and the Guaranteed PR, the Parties shall
execute a certificate of agreement. The execution of such
certificate corresponding to the second *** period for the Guaranteed
Production Period shall grant the Contractor the right to require the
Owner to return the Guarantee Bond in force at the time and replace the
same with a new Guarantee Bond in an amount equal to ***% of the Contract
Price. The same provisions of this subsection shall also be
applied to the Solar Facilities, if any, that the Owner did not return in
accordance with subsection
8.4(2)(b).
|
(4)
|
The
Contractor shall not be responsible for breach of the guarantees in the
event that such failure was caused by the circumstances described in
Clause 8.3.2(5) above or by excessive failures of the grid coupled with
the disconnection of the inverters for exceeding the conditions detailed
in their technical specifications.
|
|
8.5
|
Bonds
|
(1)
|
On
the Condition Satisfaction Date, the Contractor shall deliver to the Owner
the Performance Bond, as per the form attached hereto as Annex
7, in an amount equivalent to ***% of the Contract Price. The
Performance Bond shall guarantee the performance by the Contractor of any
payment obligation for which the Contractor is responsible from the
commencement of the Work until the date of execution of the Solar Park
Provisional Acceptance Certificate (for any reason, including but not
limited to the return of the amounts paid by the Owner, under this
Contract, and penalties or compensation for damages and losses, including
the performance by the Contractor of its obligations during the portion of
the Guarantee Period prior to the execution of the Solar Park Provisional
Acceptance Certificate).
|
(2)
|
As
a requirement for the execution of the Solar Park Provisional Acceptance
Certificate, the Contractor shall deliver to the Owner the Guarantee Bond
(in exchange for the return of the Performance Bond by the Owner), in an
amount equal to ***% of the Contract Price. The Guarantee Bond shall
conform to the form attached hereto as Annex
7 and shall guarantee the Contractor’s compliance with its
obligations during the Guarantee Period (beginning from the execution of
the Solar Park Provisional Acceptance Certificate). However, once the
Performance Tests corresponding to the second *** period of the Production
Guarantee Period have been performed and the written agreement referred to
in Clause 8.4(3) has been executed, the Contractor shall have the right to
replace the Guarantee Bond delivered to the Owner with a new Guarantee
Bond in an amount equal to ***% of the Contract
Price.
|
(3)
|
The
Performance Bond and the Guarantee Bond shall be issued by a financial
institution with a minimum “A” rating by Standard & Poor’s Corporation
or the equivalent from Moody’s Investors Services Inc., and shall be
enforceable, in whole or in part, on demand by the Owner, in the event of
the Contractor’s breach of its obligations under this
Contract.
|
(4)
|
The
delivery of the bonds provided under this section shall in no way limit
the Contractor's liability under this Contract, as the bonds only
constitute a means to guarantee the performance of the obligations assumed
by the Contractor.
|
(5)
|
If
the Contract Price is amended pursuant to Change Orders, the Contractor
must update the amount of the Performance Bond. To such end, the
Contractor must deliver to the Owner (within fifteen (15) Business Days
following the execution of the corresponding Change Order), another bond
in the updated amount, in the form attached hereto as Annex
7.
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
(1)
|
Within
forty-five (45) days prior to the passage of *** from the date of
execution of the Solar Park Provisional Acceptance Certificate, the
Contractor shall give notice thereof to the Owner in order for both
Parties to agree upon a date to analyze the status and condition of the
Solar Park (which shall not occur later than the Guarantee Period
expiration date).
|
(2)
|
If
such inspection does not reveal the presence of defects, the Parties shall
proceed to execute the Final Acceptance Certificate, at which time the
Owner shall return the Guarantee Bond to the
Contractor.
|
(3)
|
If
such inspection finds that defects are present that affect the
Contractor's obligations during the Guarantee Period, the Parties shall
sign a certificate specifying the defects, if any, that must be corrected
within a period of forty-five (45) days of the date of execution of the
corresponding certificate, or within such shorter period that the Parties
may agree upon.
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF
RISK
|
(1)
|
The
Owner and the Contractor expressly agree that the actual transfer of
ownership of the facilities and equipment covered by this Contract will be
made, for all contractual purposes, when each of the same shall have been
paid for in full by the Owner. With respect to the solar modules, module
supports and trackers, ownership thereof will be transferred to the Owner
upon payment of the respective invoice as provided in Clause 4, whereupon
the Owner will become the owner of the solar modules, the module supports
and the trackers included in such
invoice.
|
(2)
|
Without
prejudice to the foregoing, or to the Contractor’s obligations during the
Guarantee Period, the possession and the risk of loss of the same shall
not be transferred to the Owner until the execution of the Solar Park
Provisional Acceptance Certificate.
|
(3)
|
Until
the execution of the Solar Park Provisional Acceptance Certificate, the
Contractor must repair or replace, at its own expense, any equipment,
facility or portion of Work that is lost or damaged. Further,
the Contractor must assume responsibility for the care and security of the
Site and assume responsibility for any loss, theft or damage that may
occur with respect to the Contractor’s materials or machinery or the
equipment delivered pursuant to this
Contract.
|
11.
|
INSURANCE
|
(1)
|
At
all times during which the Contractor continues performing work under this
Contract, the Contractor, at its own cost and expense, shall take out and
maintain in force the insurance described below with well-known and
solvent insurance companies that are legally authorized to issue policies
in Spain, on terms and conditions of coverage satisfactory to the Owner
and the Insurance Advisor:
|
|
a)
|
Occupational
Accidents or Social Security Insurance for all its own personnel or for
the personnel of the Subcontractors as is legally required during the
effective period of the Contract.
|
|
b)
|
Mandatory
Civil Liability Insurance and Voluntary Civil Liability Insurance for the
Circulation of Vehicles and Machinery, pursuant to the limits and
conditions mandated by the Legislation in force during the effective
period of the Contract.
|
|
c)
|
Civil
Liability Insurance covering all activities of the Contractor and the
Subcontractors necessary to complete the Work, with a limit of not less
than €1,500,000 per occurrence.
|
|
d)
|
Transportation
Insurance covering the transportation of material and machinery to the
Site, with a limit of not less than the aggregate value of the transported
goods.
|
|
e)
|
All-Risks
Construction and Assembly Insurance, which will specifically include theft
and vandalism at the Site, from the unloading of the material at the Site
until the transfer of ownership of the Solar Park, including the testing
period and covering a maintenance period of not less than 12 months, with
an insured amount not less than the Contract
Price.
|
|
f)
|
Any
other mandatory insurance.
|
(2)
|
The
contracting of insurance provided in this clause shall in no event limit
the liabilities of the Contractor under this Contract. Additionally, the
amounts established as an insurance deductible in each of the insurance
policies shall be borne by the Contractor, unless the loss is attributable
to the Owner.
|
(3)
|
The
Owner may require that the Contractor deliver documentation evidencing the
contracting of the insurance set forth under this Clause to verify
compliance therewith and/or for verification by the Insurance Advisor, and
the Contractor undertakes to make such documentation available to the
Owner as soon as possible.
|
12.
|
FORCE
MAJEURE
|
(1)
|
Neither
Party shall be deemed liable for the breach of any of its obligations to
the extent that the performance of such obligations is delayed or becomes
impossible as a consequence of Force
Majeure.
|
(2)
|
For
the purposes of this Contract, events of Force Majeure shall be
deemed to be the events described in Article 1105 of the Civil Code,
provided that they actually prevent compliance by the party invoking it
from complying in whole or in part with its obligations under this
Contract. The Parties expressly agree that the discovery of archeological
ruins at the Site shall be considered an event of Force Majeure for
purposes of this Contract (without prejudice to the changes, if any, that
the Parties may agree to in accordance with subsection (11) below and the
consequences set forth therein). By way of example and not limitation, the
Contractor may not invoke the following as an event of force
majeure:
|
|
(i)
|
Meteorological
conditions or phenomena that could have been reasonably foreseen by
experienced contractors operating at the
Site.
|
|
(ii)
|
Delays
or failures in obtaining materials or labor that are foreseeable or
avoidable in advance.
|
|
(iii)
|
Delays
by any Subcontractor, unless such delays are based on any of the events
specified in this clause.
|
|
(iv)
|
Strikes
or labor conflicts affecting the Contractor or the Subcontractors, unless
they are national, sector-wide or local in
scope.
|
(3)
|
The
Party affected by Force
Majeure shall give written notice to the other Party as soon as
possible within a maximum period of forty-eight (48) hours from the day on
which such Party became aware thereof, attaching to such notice all
available documents evidencing the event that is deemed to amount to Force Majeure, and an
estimation, if possible, of the expected duration thereof and its impact
on the Work
|
(4)
|
The
performance of the obligations affected by an event of Force Majeure shall be
suspended for the duration of such event, the Parties not being entitled
to damages as results of such events of Force
Majeure.
|
(5)
|
If
the Work is affected by the event of Force Majeure and the
Contract is suspended for more than one hundred eighty (180) days, either
of the Parties may seek termination of the Contract, with the consequences
provided in Clause 14.3.
|
(6)
|
After
cessation of the event of Force Majeure, the
Parties shall agree upon the corresponding extension of deadlines (in all
cases in light of the duration of the event of Force Majeure and the
mobilization periods), or, if applicable, the measures that must be
adopted to recover, in whole or in part, the time lost so as to preserve
such dates, if possible. The contractual obligations not affected by Force Majeure must be
met within the deadlines that were in force prior to the occurrence of the
event of Force
Majeure.
|
(7)
|
In
any event, upon cessation of the event of Force Majeure, the
Parties shall take all reasonable measures within their power to resume
performance of the obligations under the Contract under optimal conditions
and with the least possible delay.
|
(8)
|
The
expenses incurred as a consequence of the repair, replacement or
adjustment of the items damaged by the events of Force Majeure shall be
borne by the party bearing the risk of loss for such elements at the time
of occurrence of the event of Force
Majeure.
|
(9)
|
In
the event that an event of Force Majeure prevents
a Party from complying with a payment obligation required by the Contract,
such payment obligation shall not be waived and the other Party may
suspend performance of its obligations under the Contract. Such
occurrence shall not give either Party a right to indemnification for
damages, without prejudice to any interest for delay in payment that might
apply.
|
(10)
|
The
Party claiming the Force
Majeure event shall immediately notify the other Party of its
cessation. Within seven (7) calendar days following the
cessation of the Force
Majeure event, the Parties shall meet to agree and assess the
effects that such situation caused. Such agreement shall be
documented in a certificate signed by both Parties describing the changes
to the contractual conditions.
|
(11)
|
In
the event that archeological ruins are discovered at the Site, but the
Work may be continued by reducing the size of the Solar Park, the number
of Solar Facilities, or by implementing a reconfiguration of the technical
configuration of the Solar Park, the Parties shall meet to agree on such
changes and shall execute a certificate describing the changes to the
contractual conditions. In any event, if the change entails a
reduction in the capacity of the Solar Park, or in the number of Solar
Facilities, thus requiring a reduction of the Contract Price, the Owner
shall have the right to withhold from the remaining Payment Milestones
payable after the change, the portion of the Contract Price previously
paid by the Owner that corresponds to the Solar Facilities or the
equipment affected by the reduction and which, consequently, were not
delivered by the Contractor under this
Contract.
|
13.
|
SUSPENSION
OF THE WORK
|
13.1
|
Suspension
by the Owner
|
(1)
|
The
Owner may at any time give written notice to the Contractor ordering the
immediate suspension of the Solar Park, in whole or in part, for any of
the following reasons:
|
|
a)
|
If
the Contractor is performing the Work in a defective or inappropriate
manner or not adhering to uses and practices customary for projects of
this type or as established under this Contract, provided that the
Contractor does not cure such defects within a reasonable period granted
by the Owner.
|
|
b)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with safety standards, avoiding
damage to people and things, provided that the Contractor does not cure
such defects within a reasonable period granted by the
Owner.
|
|
c)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with quality control
requirements, provided that the Contractor does not cure such defects
within a reasonable period granted by the
Owner.
|
|
d)
|
If
the Contractor fails to comply with the instructions issued by the
Governmental Authorities for the execution of the Work, to the extent that
this may affect the authorizations granted or requested or the successful
achievement of the purpose of the
Contract.
|
|
e)
|
By
unilateral decision of the Owner.
|
(2)
|
The
order providing for the suspension of the Work shall specify in writing
the portion thereof that is being suspended, the grounds for suspension,
the effective date of suspension and the date provided for the resumption
of the Work (if applicable).
|
(3)
|
In
all the cases provided in subsection (1) above, except for the ones
mentioned in subsection (e), the suspension shall last for all the time
required and until the Contractor cures the circumstances that gave rise
to the suspension of the Work. Additionally, in none of such cases shall
the Contractor be entitled to any additional payment whatsoever or to the
extension of the periods provided in the Implementation Schedule, except
in the case mentioned in subsection (e), where the Contractor shall be
entitled to an extension of the deadlines provided in the Implementation
Schedule for a period at least equal to the suspension period and to be
compensated for the costs resulting from the repair, replacement or
adjustment of the items damaged during the suspension period and the costs
arising from the suspension and resumption of the
Work.
|
(4)
|
If
the suspension lasts for a period in excess of one hundred and eighty
(180) days, and the reasons are not attributable to the Owner, the
Contractor shall reserve the right to terminate the Contract upon the
terms of Clause 14.1.
|
13.2
|
Suspension
by the Contractor.
|
(1)
|
The
Contractor shall be entitled to temporarily suspend the Work as provided
under this Contract, applicable law and in the event that the Owner incurs
a delay in excess of thirty (30) days in the payments owing to the
Contractor, as regards the expiration dates of the relevant
invoices. In such event, the Owner shall pay to the Contractor
its expenses arising from the suspension (including the costs resulting as
a consequence of the repair, replacement or adaptation of the damaged
elements during the suspension period and the costs arising from the
suspension and resumption of the Work) and the Parties shall agree upon an
extension of the deadlines for performance based on the effects of the
suspension thereon.
|
(2)
|
If
the suspension for a cause attributable to the Owner (including the one
provided under subsection 13.1(1)(e) above) lasts for more than three (3)
months or during several consecutive periods totaling more than three (3)
months, the Contractor shall be entitled to terminate the Contract upon
the terms of Clause 14.2.
|
13.3
|
Suspension
by Judicial or Governmental
Authority
|
(1)
|
In
the event of suspension, interruption or stoppage of the Work, in whole or
in part, ordered by any judicial or governmental authority, or by the
Owner or Contractor following the instructions of any judicial or
governmental authority, the financial and contractual consequences of the
delay shall be borne by the party that is responsible for performance
where the failure to perform or incorrect performance triggered the
judicial or governmental action.
|
(2)
|
If
such suspension, interruption or stoppage does not result from the actions
or omissions of any of the Parties, the periods of the Implementation
Schedule shall be extended for a period at least equal to the one during
which the situation subsisted, and the Owner shall pay to the Contractor
the duly verified costs incurred as a result of such interruption. The
Contractor undertakes to act diligently to minimize such
costs.
|
(3)
|
If
the suspension ordered by any judicial or governmental order, or by the
Owner or the Contractor following the instructions of any judicial or
governmental authority, extends for more than six (6) months, either of
the Parties will be entitled to terminate the Contract upon the terms of
Clause 14.2.
|
14.
|
Termination
|
14.1
|
Termination
for Causes Attributable to the
Contractor
|
(1)
|
The
Owner may terminate the Contract in the cases authorized by the Law, in
the instances provided for in this Contract, or upon the occurrence of any
of the following events:
|
|
a)
|
The
dissolution or merger (provided it involves a change in control) of the
Contractor ***, or when a substantial portion of the assets of the
Contractor *** is transferred to another company, provided that such
circumstances seriously prejudice the Contractor’s *** capacity to perform
the obligations under this
Contract;
|
|
b)
|
The
voluntary filing by the Contractor of a bankruptcy petition or the
allowance of a bankruptcy petition by a third party against the Contractor
(or any equivalent action in accordance with the insolvency legislation
applicable to the Contractor), or in the case of clear financial
difficulties that prevent the Contractor from normally complying with
obligations arising under the Contract, unless its obligations are
sufficiently guaranteed under this Contract. The occurrence of the same
events as regards *** shall also be grounds for
termination.
|
|
c)
|
If
the Contractor assigns or subcontracts the Contract, in whole or in part,
without complying with the conditions set forth in this
document.
|
|
d)
|
If
the Contractor fails to comply with its obligations involving the
contracting and maintenance of the insurance provided under the Contract
in a manner that might endanger coverage under the relevant
policies.
|
|
e)
|
If
the Contractor has been assessed penalties for failure to achieve the
Production Guarantee beyond the maximum limits, if applicable, provided
under this Contract.
|
|
f)
|
The
Contractor has interrupted the Work or a substantial portion thereof or
has abandoned the Solar Park for a period exceeding twenty (20) calendar
days without the Owner’s authorization, or in the case of interruptions
for an aggregate duration of more than thirty (30) days within the same
calendar year, provided that the interruptions do not arise from a
suspension of the Work provided under Clause
13.2.
|
|
g)
|
If
the Solar Park Provisional Acceptance Certificate has not been issued
prior to ***.
|
|
h)
|
***
|
|
i)
|
***
|
|
j)
|
If
there is any other material breach of the obligations assumed by the
Contractor under this Contract.
|
|
k)
|
Any
other serious breach of a principal obligation of the Contractor that
might affect or prevent the successful conclusion of the Contract, or that
is expressly designated herein as grounds for
termination.
|
(2)
|
Upon
the occurrence of any of the above events, the Owner may elect to
terminate the Contract, in whole or in part, with respect to the Solar
Facilities for which the Provisional Acceptance Certificate of a Facility
has not been issued as of the date of notice of termination, (or, for the
circumstance set forth in paragraph (g) , as of the date set forth in such
paragraph) except to the extent that before such date the Solar Facility
Provisional Acceptance Certificate has been executed for at least hundred
(100) Solar Facilities. In such a case the Owner may only terminate the
Contract with respect to the Solar Facilities for which the Solar Facility
Provisional Acceptance Certificate has not been executed. However, if the
number of Solar Facilities for which the Solar Facility Provisional
Acceptance Certificate has been executed is over hundred (100) Solar
Facilities, the Owner may elect to terminate the Contract with respect to
the entire Solar Park if one of the termination events set forth in
subsections a) or b) has occurred and the Owner reasonably believes that
such circumstances pose a material prejudice or risk to the performance of
the Contractor’s obligations under this Contract during the Guarantee
Period. The foregoing shall not apply if the Contractor has
provided equipment guarantees, satisfactory to the Owner, sufficient to
ensure proper maintenance and replacement of the Solar Park during the
Guarantee Period and the Contractor has assigned such guarantees to the
Owner pursuant to the terms of this
Contract.
|
|
The
above shall not prejudice the Owner’s option to return the Solar Park in
its entirety upon the occurrence of the circumstance set forth in Clause
8.4(2)(b).
|
(3)
|
Upon
the occurrence of any of the above events, the Owner shall give the
Contractor a period of thirty (30) days to remedy the event, or any other
longer period that may be agreed upon by the Parties. If within such
period the Contractor fails to remedy such grounds for termination to the
Owner's satisfaction, the Contract shall be terminated (in whole or in
part, as applicable). For clarification purposes, it is noted
for the record that in no event will the remedy period provided herein be
applicable to the circumstances provided in subsections (1)(b), (e), (f)
and (g) of this Clause.
|
(4)
|
In
the event of a termination of the Contract (in whole or in part) under
this subsection, the following shall occur (without prejudice to the
provisions of subsection (6)):
|
|
(i)
|
In
the event of partial
termination, only as to some Solar Facilities in the Solar Park,
the Contractor shall be obligated to return to the Owner the portion of
the Contract Price that it charged for the affected Solar Facilities and
shall be obligated to pay indemnification for any damages pursuant to
subsection (5) below. The Contractor shall recover ownership of the
property comprising such Solar
Facilities.
|
|
(ii)
|
In
the event of complete
termination, the Contractor shall be obligated to return the
aggregate Contract Price charged by the Contractor, and shall be obligated
to pay indemnification for any damages pursuant to subsection (5) below.
The Contractor shall recover ownership of all the property delivered to
the Owner.
|
(5)
|
Upon
the occurrence of either two events described in the preceding subsection,
the Contractor shall be obligated to pay indemnification to the Owner for
damages, including:
|
|
(i)
|
The
Financial Costs associated with the affected Solar Facilities or the
entire Solar Park, as applicable. “Financial Costs” shall
be understood to mean all costs, expenses, fees (whether up-front, early
termination or of any other type) and interest paid by the Owner in
respect of the financing documents entered into by the Owner with the
Financing Institutions, including cancellation or breakage fees for any
interest rate swap agreements entered into by the Owner with the Financing
Institutions.
|
|
(ii)
|
The
costs, expenses and damages incurred by the Owner as a result of, or with
respect to, the early termination or the breach by the Contractor, duly
certified by the Owner, (including costs to be paid by the Owner, if
applicable, for the termination of the surface right that the Owner has
entered into for using the Site) plus ***% of the part of the Contract
Price that corresponds to the affected Solar Facilities in the event of a
partial termination (or of the Contract Price in the event of total
termination), to cover permitting
costs.
|
(6)
|
Notwithstanding
the provisions of subsections (4) and (5), if the Owner had the right to
terminate the Contract, in whole or in part, as a result of the failure to
achieve Start-Up prior to September 29, 2008, the Owner may not elect to
return the affected Solar Facilities for which the Solar Facility
Provisional Acceptance Certificate has been executed before October 31,
2008, provided that prior to September 29, 2008 the Contractor pays to the
Owner an amount that is sufficient to (i) restore the Debt Service
Coverage Ratio to the Base Case (as defined in the financing documents
referred to in Clause 14.1(5)(i)) agreed to by the Financing Institutions
and the Owner in such financing documents, and (ii) cover the loss of
profitability for the Owner’s shareholders, taking into account the
tariffs which will be received by the Owner from the sale of power from
the Solar Park.
|
|
(i)
|
the
amount that should be paid by the Contractors has not been paid before
September 29, 2008, or
|
|
(ii)
|
the
amount having been paid, the Solar Park Provisional Acceptance Certificate
has not been executed before October 31,
2008.
|
(7)
|
The
Contractor is required to pay the amounts referred to in subsections (4)
and (5) above to the Owner within *** days of the date of settlement of
the amounts owed.
|
(8)
|
In
all the foregoing instances, the Owner may, without prejudice to the
reservation of rights to take all legal action to which it is entitled for
the defense of its rights, adopt any or all of the following
measures:
|
|
a)
|
Offset
any payments pending in favor of the Contractor by an amount equivalent to
the balance in favor of the Owner (returning, in the event of complete
termination, the Performance Bond, once such offset has been
made).
|
|
b)
|
Enforce
the Performance Bond and/or the Guarantee
Bond.
|
|
c)
|
Withhold
the Contractor’s materials, machinery and items belonging to the
Contractor that are in the possession of the Owner, until the Contractor
has fully paid all amounts due as a consequence of the
termination.
|
14.2
|
Termination
by the Contractor
|
(1)
|
The
Contractor may terminate the Contract under the circumstances provided for
under applicable law, in this Contract, or upon occurrence of any of the
following events:
|
|
(i)
|
The
voluntary filing by the Owner of a bankruptcy petition or the allowance of
a bankruptcy petition filed by a third party against the Owner, or in the
event of patent financial difficulties that would prevent the Owner from
normally complying with the obligations arising under this Contract in
cases different from the one provided under subsection (ii) below, unless
its obligations are sufficiently guaranteed under this
Contract.
|
|
(ii)
|
A
delay in payment for a period in excess of sixty (60) days from the date
on which payment should have been
made.
|
|
(iii)
|
Any
other serious breach of a principal obligation of the Owner that might
affect or prevent the successful conclusion of the Contract, or that is
expressly designated herein as grounds for
termination.
|
|
(iv)
|
A
suspension of the works and services for causes attributable to the Owner
for a period greater than three (3)
months.
|
|
(v)
|
The
dissolution of the Owner, or if a substantial portion of the assets of the
Owner is transferred to another company, and such circumstance seriously
prejudices the Owner’s capacity to perform the obligations set forth in
this Contract.
|
(2)
|
The
Contractor shall give to the Owner a period of thirty (30) days to cure
the event, or any other longer period that may be agreed upon by the
Parties. If the Owner fails to remedy such grounds for termination to the
Contractor's satisfaction within such period, the Contract shall be
terminated (in whole or in part, as
applicable).
|
(3)
|
Upon
termination of the Contract for any of the foregoing reasons, the Owner
must:
|
|
(i)
|
Pay
all of the Contractor’s outstanding
invoices.
|
|
(ii)
|
Pay
to the Contractor the value of the Work performed before termination and
which is not yet included in the invoices. Accordingly, the Owner must pay
to the Contractor the cost of the equipment already delivered to the
Contractor or that it is legally required to accept under the contracts
entered into with its suppliers and manufacturers, which shall become the
property of the Owner if they had not already become
so.
|
|
(iii)
|
Pay
all duly authenticated damages that are sustained by the Contractor as a
consequence of the contractual breach or early termination, including
direct demobilization costs.
|
|
(iv)
|
Return
to the Contractor the Bonds received from the
Contractor.
|
(4)
|
Upon
the Owner’s compliance with the conditions set forth in the above
subsection, the Contractor shall abandon the Site within a period of
thirty (30) days and the Owner may complete the Work by itself or with
another contractor, the Owner being entitled to request the Contractor to
assign each and every contract signed by the Contractor and its
subcontractors (except contracts entered into for the supply of
solar modules, supports and trackers or for the supply of technology and
software, which the Owner may not assume). The Contractor is obligated to
cooperate in good faith with the Owner to effect such
assignments.
|
14.3
|
Termination
due to Force
Majeure
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
15.1
|
Assignment
|
(1)
|
The
Contractor may not assign or transfer to third parties, in whole or in
part, the economic, commercial or financial rights or credits arising
under this Contract, or engage in any other transaction involving any type
of disposition, encumbrance, commitment and/or transaction, in whole or in
part, regarding such rights and credits, unless it has obtained the prior
written approval of the Owner. An assignment to other companies within the
Contractor’s group that have the same technical capacity to perform the
contractual obligations and that satisfy the requirements of the Direct
Agreement is permitted, ***.
|
(2)
|
The
Owner may only assign all or a portion of the rights and obligations
arising under this Contract in favor of the Financing Institutions in
accordance with Clause 17, or to any other third party with the prior
written approval of the Contractor.
|
15.2
|
Subcontracting
|
(1)
|
The
Contractor may subcontract the Work, provided the following conditions are
met:
|
|
(i)
|
All
the subcontracts executed (except the contracts entered into for the
supply and manufacture of solar modules, supports and trackers or for the
supply of technology and software, which Owner may not assume) and all
guarantees obtained from any of the suppliers or Subcontractors may be
assigned at the request of the Owner in the event of termination of this
Contract. For such purpose, the Contractor irrevocably undertakes to
assign to the Owner and the Financing Institutions the rights arising from
all the guarantees and subcontracts obtained from Authorized
Subcontractors upon the expiration of the Guarantee Period or in the event
of termination of the Contract.
|
|
(ii)
|
The
guarantees or subcontracts executed by the Contractor with Subcontractors
or suppliers shall be consistent with the terms and provisions of this
Contract.
|
|
(iii)
|
The
Contractor shall deliver to the Owner, within a reasonable period after
the request thereof, a copy without prices or other commercial terms, of
all the contracts, agreements and guarantees signed with the
Subcontractors (containing the waiver referred to in subsection (3)
below).
|
|
(iv)
|
Works
relating to the Evacuation Line may only be subcontracted with the major
subcontractor of medium voltage mentioned in Annex
8.
|
(2)
|
In
no event shall a contractual relationship be implied among the
Subcontractors and the Owner. The Contractor shall remain liable for all
of the activities of its Subcontractors and suppliers and for all
contractual and labor obligations arising from the performance of their
work; as well as for the actions, failures and negligence of any of its
subcontractors or suppliers and the agents and employees thereof, under
the same terms and conditions as if committed or performed by the
Contractor itself, its agents or
employees.
|
(3)
|
The
Owner shall not be liable vis-à-vis any Subcontractor or supplier, or
vis-à-vis their employees, for any claims arising directly or indirectly
from the Contract. For such purpose, the Contractor undertakes to procure
an express and written waiver of the rights conferred by Article 1597 of
the Civil Code from each
Subcontractor.
|
16.
|
LIABILITY
AND DAMAGES
|
(1)
|
The
Parties shall have the obligation to provide indemnification for those
damages caused to the other Party as a consequence of the breach of this
Contract. The Owner’s approval of the projects, calculations, drawings or
other technical documents prepared by the Contractor, or the conduct of
inspections or Tests do not release the Contractor from such liability,
and do not imply that such liability must be shared by the
Owner.
|
(2)
|
The
Contractor shall be liable vis-à-vis the Owner for any loss or physical
damage to the equipment, materials or assets owned by the Owner or third
parties that is caused by the Contractor through the execution of the
relevant Solar Facility Provisional Acceptance Certificate, and thereafter
only when the Contractor is within the Site performing the Work, repairs
or similar activities and causes the relevant
damage.
|
(3)
|
By
application of Article 1596 of the Civil Code, it is expressly agreed that
the Contractor shall also be liable for damages caused by the persons or
entities employed by the Contractor in the performance of the Work,
whether as employees, technicians, subcontractors or otherwise, from whom
the same diligence owed by the Contractor shall be
required.
|
(4)
|
The
Parties expressly agree that in no event will a Party be liable for the
so-called consequential or indirect damages, including loss of profits and
loss of output, loss of use or loss of any contract or other damages that
are considered to be indirect, except for cases involving willful
misconduct or gross negligence, and without prejudice to the Contractor's
obligation to pay the penalties agreed upon under this
Contract.
|
(5)
|
The
Parties agree that any indemnity received by one of the Parties as
beneficiary of any of the insurance taken out by them in connection with
the Solar Park will be deducted from the respective claim for damages or,
if such indemnity holds the Party in question harmless from the damages
sustained, it shall bar such Party from claiming damages and require it to
refund the excess, if any. The Party causing the damages shall
bear all deductibles, liability limits and any other deductions affecting
the indemnities payable to the damaged Party by the insurance companies
providing the insurance in accordance with the provisions
hereof.
|
(6)
|
The
maximum total liability of the Contractor hereunder shall not exceed, in
the aggregate, an amount equal to *** (***%) percent of the Contract
Price. The foregoing shall not affect to the Contractor’s obligation to
make payments under Clause 14.1 in the event of the termination or partial
termination of the Contract.
|
17.
|
OWNER
FINANCING
|
|
(i)
|
the
possibility that the Owner’s rights under this Contract may be fully or
partially pledged or assigned as security, in one or successive instances,
to the Financing Institutions.
|
|
(ii)
|
the
possibility that “direct agreements” that provide the Financing
Institutions with “step-in” rights will be executed in the form agreed to
prior to the execution of this Contract and which are attached hereto as
Annex
9;
|
|
(ii)
|
the
possibility that the right to receive indemnification to which the Owner
may be entitled and which arise under the insurance policies purchased in
accordance with the terms of this Contract may be pledged or assigned as
security to the Financing Institutions (and the essential nature of
subscribing the insurance policies upon the terms of the report issued by
the Insurance Advisor in accordance with Clause
11);.
|
|
(iii)
|
that
the Financing Institutions and their advisors (including the Technical
Advisor and the Insurance Advisor and any others) have the right to access
the Site in order to inspect the performance of the work contemplated
under this Contract, upon the terms contemplated in Clause
6.2;
|
|
(iv)
|
the
Technical Advisor’s right to observe all Capacity and Production Tests and
the obligation to obtain its prior approval for the issuance of the Solar
Park Provisional Acceptance Certificate and each Solar Facility
Provisional Acceptance Certificate;
|
|
(v)
|
the
requirement to obtain the prior approval of the Technical Advisor for any
change to the terms of this Contract upon the terms contemplated
herein;
|
|
(vi)
|
the
Contractor’s obligation to pay any amounts owed to the Owner under this
Contract to the account, if any, indicated in writing by the Financing
Institutions;
|
18.
|
CONFIDENTIALITY
|
(1)
|
The
Parties agree that this Contract and the Annexes hereto, and any written
or electronic information or documentation that any of the Parties
furnishes to the other for the performance of this Contract (including,
without limitation, technical documentation, plans, information,
procedures, patents and licenses) are confidential. Therefore, the Parties
undertake to keep the information confidential and to refrain from
disclosing, providing to third parties or using such information unless
such documentation and information (i) is known by the public without any
breach of this confidentiality commitment, (ii) has been legally obtained
from a third party, (iii) is requested by a judicial or governmental
authority, or (iv) the delivery of such documentation and information is
made in compliance with any legal obligations enforced upon the disclosing
Party.
|
(2)
|
The
Parties agree that the above shall not apply to any disclosure of
information made by any of the Parties to other entities of their Group
(within the meaning of Article 4 of Securities Market Law (Ley del Mercado de
Valores) 24/1988 of July 28), regulatory, tax or governmental
authorities, and their respective advisors and auditors, internal or
external, in relation to the information requested by them for the
development of the investigations, assessments and works carried out by
them, provided that, in each and every one of such cases, the parties
receiving the confidential information have assumed commitments of
confidentiality vis-à-vis the disclosing party on terms similar to this
one. In this case, such entities, authorities, advisors or auditors shall
have free access to the books, files, documents and information held by
the requested Party, and prior authorization is therefore not required
from the other Parties to furnish information to such entities,
authorities, advisors and/or auditors regarding this Contract and the
Annexes hereto and any other information or written documentation relating
hereto.
|
(3)
|
In
particular, the Owner is authorized to transmit information regarding this
Contract to the Owner and the Financing Institutions and to those
investors with interests in the construction and commercial operation of
the Solar Park who reasonably request information with respect to this
Contract (including any entity belonging to the same group than AIG
Financial Products Corp.), provided that they have assumed vis-à-vis the
provider of such information confidentiality undertakings upon terms
substantially similar hereto. Further, the Owner hereby
authorizes the Contractor to provide such information to the Financing
Institutions;
|
(4)
|
The
confidentiality commitment must be observed until the passage of two (2)
years from the date of execution of the Final Acceptance Certificate or
any termination of the Contract, regardless of the cause
thereof.
|
19.
|
NOTICES
|
(1)
|
All
notices and communications between the Parties for the purposes of this
Contract shall be made in writing, by certified mail, fax or courier
service, to the following
addresses:
|
(2)
|
The
Parties may change the above addresses by written notice to each other
given in the form and to the addresses mentioned
above.
|
(3)
|
Notices
shall be deemed received on the third (3rd) Business Day following the
dispatch thereof when sent by courier service (unless there is evidence of
earlier receipt) or the Business Day following the date on which there is
evidence of the receipt thereof in the case of faxes and certified
mail.
|
20
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation, to which the Contractor and the
Owner expressly submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje (CIMA)) of Madrid in accordance with the Procedural
Regulations thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by the Contractor and the other by
the Owner, and the two arbitrators so appointed shall appoint the third
one, who shall act as chairman of the arbitral tribunal. Should the two
first arbitrators fail to reach an agreement on the appointment of the
third arbitrator within ten (10) Business Days following the date of
acceptance of office by the second arbitrator, such arbitrator shall be
appointed by CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
|
|
||
SEDWICK
CORPORATE, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
Part
|
Units
per MW
|
Total
quantity
|
Mechanical
part
|
||
Drive
bellows boot
|
0,4
|
6
|
Ground
braids, torque tube to pier
|
5
|
75
|
Module
mounting assemblies
|
5
|
75
|
MC
connectors
|
5
|
75
|
Actuator
(endless screw)
|
0,2
|
3
|
Low
voltage
|
||
Solar
panels
|
10
|
150
|
Orientation
motor
|
0,4
|
6
|
GPS
+ PLC + clinometer
|
0,4
|
6
|
SunPower
controller (no housing)
|
0,4
|
6
|
Inverter
|
0,2
|
3
|
Communications
card for the inverter
|
0,4
|
6
|
Fuse
set for the inverter
|
0,4
|
6
|
Set
of overvoltage protective devices for the inverter
|
1
|
15
|
DC
fuses
|
5
|
75
|
Set
of overvoltage protective devices for the junction box
|
0,4
|
6
|
Junction
box
|
0,4
|
6
|
Fan
unit
|
0,4
|
6
|
Set
of sensors for the weather station
|
0,2
|
3
|
Communications
|
||
MOXA
cards
|
0,2
|
3
|
Routers,
switches, hubs, etc.
|
0,2
|
3
|
|
-
|
Powerlight
|
|
-
|
SunPower
|
|
-
|
Yingli
|
|
-
|
Suntech
|
|
-
|
Evergreen
Solar
|
|
-
|
Sanyo
|
|
-
|
SMA
|
|
-
|
Siemens
|
|
-
|
Ingeteam
|
|
-
|
Ormazábal
|
|
-
|
Schneider
( incluyendo las marcas del grupo: Merlin Gerin, MESA, etc
)
|
|
-
|
ABB
|
|
-
|
INAEL
|
|
-
|
SIEMENS
|
|
-
|
COTRADIS
|
|
-
|
MERLIN
GERIN – CEVELSA
|
|
-
|
ABB-DIESTRE
|
|
-
|
ALKARGO
|
|
-
|
PAUWELS
|
|
-
|
SIEMENS
|
|
-
|
EFACEC
|
|
-
|
OASA
|
|
-
|
MACE
|
|
-
|
IMEFY
|
|
-
|
PRODIEL
|
|
-
|
ADITEL
|
|
-
|
ELECNOR
|
|
-
|
ELÉCTRICAS
VÁZQUEZ
|
|
-
|
ELECTROANSA
Y PEPE VILLA
|
|
-
|
Others
authorized by ENDESA Distribución in
Extremadura
|
(A)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L.U. (the “Contractor”)
|
(B)
|
SEDWICK CORPORATE, S.L.
(the “Owner”).
|
(C)
|
WESTLB AG, SUCURSAL EN
ESPAÑA (the “Agent”).
|
I.
|
The
Owner and the Contractor have executed on even date
herewith:
|
|
(i)
|
a
“turn-key” construction contract (the “Construction Contract”)
for the construction and start-up of a solar park in Olivenza (Badajoz),
composed of hundred fifty (150) solar facilities with a unit capacity at
the panels of approximately kWp y 100 kW at the inverter (the “Solar
Park”);
|
|
(ii)
|
a
maintenance agreement (the “Maintenance Agreement”)
for the performance by Contractor of the maintenance Work relating to the
Solar Park.
|
II.
|
In
order to finance, among other things, the payments that are the
responsibility of the Owner under the Construction Contract, the Owner has
entered into the following contracts, on even date herewith, registered as
public instruments before the Madrid Notary Mr. Luis Sanz
Rodero;
|
|
(i)
|
a
credit agreement in the maximum amount of [l] euros
(hereinafter, the “Credit
Agreement” or the “Loan”) with the Agent
divided in three tranches: Tranch A1 for a maximum amount of [l] euros, Tranch A2
for a maximum amount of [l] euros and Trach
B for a maximum amount of [l]
euros.
|
|
(ii)
|
an
interest rate hedge agreement (CMOF) and its corresponding Schedule with
the Agent, to cover interest rate fluctuation risks relating to the Loan
(hereinafter, the master agreement and its Schedule together with the
confirmations to be executed in connection therewith, the “Interest Rate Hedge
Agreement”).
|
III.
|
To
guarantee the Owner’s obligations under the Credit Agreement and the
Interest Rate Hedge Agreement (hereinafter, collectively, the “Guaranteed Contracts”)
the Owner has granted on even date herewith (among others) a pledge
agreement, registered as a public instrument with the Madrid Notary Mr.
[l], pursuant
to which the rights under the Construction Contract and the Maintenance
Agreement (among others) were pledged to the Financing Institutions (the
“Pledge”).
|
IV.
|
In
consideration of the premises, and as a fundamental condition to the
execution of the Guaranteed Contracts by the Financing Institutions, the
Parties have agreed to execute this Contract whereby the Contractor
assumes certain obligations to the Financing Institutions with respect to
the Construction Contract, the Maintenance Agreement and the Guaranteed
Contracts, as follows.
|
1.
|
DEFINED
TERMS
|
2.
|
PLEDGE
|
(1)
|
The
Contractor hereby pledges all rights to receive payment from the Owner
under the Construction Contract and the Maintenance
Agreement.
|
(2)
|
As
a consequence of the foregoing, except in the event of receipt of a
written notice from Agent that the Pledge has been cancelled, the
Contractor agrees:
|
|
(i)
|
not
to convey or create any type of pledge, charge, lien or other security
right over the Contractor’s rights to receive payments under the
Construction Contract or the Maintenance Agreement, without the express
prior written approval of the
Agent;
|
|
(ii)
|
not
to honor any notice or instruction from the Owner that contravenes or
modifies the terms of the Pledge or of this
Contract;
|
|
(iii)
|
to
immediately notify the Agent of any breach by the Owner of its obligations
under the Construction Contract or the Maintenance
Agreement;
|
|
(iv)
|
to
pay any amounts payable by the Contractor to the Owner under the
Construction Contract or the Maintenance Agreement to the Owner’s account
no. [l] (the
“Principal
Account”), or to such other separate account as the Agent and the
Owner may jointly specify in writing. The Contractor acknowledges and
agrees that a payment made to any other current account or made in any
other manner shall not be considered a full discharge for the
Contractor;
|
|
(v)
|
upon
receipt of written notice from the Agent declaring the enforcement of the
Pledge, to deposit or transfer all funds relating to the payment rights
under the Construction Contract and/or the Maintenance Agreement in favor
of the Agent to the account designated by the Agent in
writing.
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
(1)
|
The
Contractor agrees to provide notice to the Financing Institutions (through
the Agent) of the occurrence of any event of early termination of the
Construction Contract and/or the Maintenance Agreement, or of its own
intention to terminate either of such Contracts, by sending to the Agent a
copy of any notice sent to the Owner (which shall include, at a minimum,
the proposed date of termination of the Construction Contract and/or the
Maintenance Agreement –subject to the terms of subsection (2) below- and
the Contractor’s stated basis for such
termination).
|
(2)
|
The
Contractor acknowledges agrees that it may not, under any circumstances,
terminate the Construction Contract or the
Maintenance Agreement without first giving notice to the Agent
as provided for in the above subsection, and that, during the period from
the Agent’s receipt of such notice until fifteen (15) calendar days from
the date on which the Agent received such notice, the Agent may (but is
not so obligated), with the prior approval of the Financing Institutions
in accordance with the agreed majority voting percentages agreed to among
the Financing Institutions, take such measures as are necessary or
advisable to cure or eliminate such event of early termination under the
Construction Contract and/or the Maintenance
Agreement.
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL ADVISOR
|
4.1
|
Changes
and roles with respect to the Construction Contract
|
|
(i)
|
it
may not agree to any change to the Construction Contract or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clauses 2.4(4), 5.1(3) and 6.5(3) of the Construction
Contract without the Technical Advisor having confirmed its approval
through its express approval included in the corresponding document or
Change Order (the foregoing is without prejudice to the Contractor’s
rights under such Clauses);
|
|
(ii)
|
except
with respect to the assumed consent contemplated by Clause 4.3 of the
Construction Contract, the approval of the Technical Advisor must be
obtained in order for the Owner to approve a Payment Milestone
contemplated by such Clause;
|
|
(iii)
|
the
Technical Advisor must be present (i) to observe the performance of the
Performance Tests, the Overall Test, the Production Tests and the
inspections required for execution of the Final Acceptance Certificate, in
accordance with the notice periods set forth in Clauses 5.2 (1), 8.4(2)
and 9(1) of the Construction Contract (the periods provided for in such
Clauses may not begin to run if the Technical Advisor has not been invited
to observe within the notice periods provided in such Clauses); and (ii)
to observe the necessary inspections to verify the fulfillment of any
Technical Milestone with at least 15 days of prior notice. Results of
tests and inspections referred to in this subsection that were obtained
prior to the expiration of such periods and without the presence of the
Technical Advisor shall be invalid. However, the Technical Advisor’s
failure to attend despite having been duly invited in the manner and
within the notice periods provided for in this subsection shall not delay
the periods provided for in the Construction Contract for such tests and
inspections, nor shall it invalidate the results of the
same;
|
|
(iv)
|
except
as provided for in Clause 5.2(4) of the Construction Contract, the
execution of the Solar Facilities Provisional Acceptance Certificates, the
Solar Park Provisional Acceptance Certificate, and the Final Acceptance
Certificate must be accompanied by the approval of the Technical
Advisor;
|
|
(v)
|
the
Technical Advisor shall have the power the inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 6.2 of the Construction
Contract;
|
|
(vi)
|
the
Technical Advisor must approve quality controls for the solar modules and
has the authority to inspect such quality controls in order to confirm its
approval; and
|
|
(vii)
|
the
Financing Institutions should have been approved, if applicable, the
necessary amount to restore the Debt Service Coverage Ratio to the Base
Case set forth in Clause
14.1(6).
|
4.2
|
Changes
and Actions Regarding the Maintenance
Agreement
|
|
(i)
|
it
may not agree to any change to the Maintenance Agreement or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clause 2.4 of the Maintenance Agreement without first
receiving the prior approval of the Financing Institutions (the foregoing
is without prejudice to the Contractor’s rights under such Clause
2.4);
|
|
(ii)
|
the
Technical Advisor must receive the data and registrations at least fifteen
(15) calendar days in advance to make the availability calculations
referred to in Clause 7 of the Maintenance
Agreement;
|
|
(iii)
|
the
Technical Advisor shall have the authority to inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 4(ii) of the Maintenance
Agreement.
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT
|
6.
|
ASSIGNMENTS
|
6.1
|
Assignment
by the Financing Institutions
|
6.2
|
Assignment
by the Contractor
|
7.
|
NOTICES
|
(1)
|
Except
as otherwise expressly provided for, all notices and communications
between the Parties for the purposes of this Agreement shall be made in
writing, by certified mail, telegram with confirmed receipt, or for urgent
matters, by fax with a confirmation letter to be sent within the following
five (5) calendar days.
|
(2)
|
All
notices, requirements or other communications to the Financing
Institutions must be delivered to the Agent (notice to the Financing
Institutions shall be considered effective upon receipt by the
Agent).
|
(3)
|
The
Parties designate the following addresses for notice, communications and
routine matters:
|
(4)
|
Any
changes to the above addresses must be communicated to the other Parties
by certified mail, and shall only take effect as of the date that the
other Party receives such notice.
|
8.
|
LAW
AND JURISDICTION
|
9.
|
TERM
|
10.
|
TAXES
AND EXPENSES
|
|
|
||
SEDWICK
CORPORATE, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
||
|
|||
WESTLB
AG, SUCURSAL EN ESPAÑA
|
1.
|
DEFINITIONS
|
5
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
9
|
2.1
|
Purpose
of the Contract
|
9
|
2.2
|
Scope
of Work
|
10
|
2.3
|
Exclusions
|
11
|
2.4
|
Changes
in the Scope
|
11
|
3.
|
COMMENCEMENT
OF WORK
|
12
|
4.
|
PRICE
AND FORM OF PAYMENT
|
14
|
4.1
|
Contract
Price
|
14
|
4.2
|
Payment
Milestones
|
16
|
4.3
|
Invoicing
System and Form of Payment
|
17
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL ACCEPTANCE
|
18
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
18
|
5.2
|
Performance
Tests and Provisional Acceptance
|
19
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
21
|
6.1
|
Prevention
of Occupational Risks
|
21
|
6.2
|
Obligation
to Provide Access to the Site
|
22
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
22
|
6.5
|
Regulatory
Compliance
|
23
|
6.6
|
Permits
and Authorizations
|
23
|
6.7
|
Training
of the Owner’s Personnel
|
25
|
6.8
|
Designation
of Project Director
|
25
|
6.9
|
Taxes
and Import Duties
|
25
|
6.10
|
Intellectual
and Industrial Property Rights
|
26
|
6.11
|
Cooperation
|
26
|
7.
|
OBLIGATIONS
OF THE OWNER
|
26
|
8.
|
GUARANTEES
|
27
|
8.1
|
Solar
Module Degradation Guarantee
|
27
|
8.2
|
Solar
Module Capacity Guarantee
|
27
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
28
|
8.4
|
Solar
Park Production Guarantee.
|
31
|
8.5
|
Bonds
|
33
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
34
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF RISK
|
34
|
11.
|
INSURANCE
|
35
|
12.
|
FORCE
MAJEURE
|
36
|
13.
|
SUSPENSION
OF THE WORK
|
38
|
13.1
|
Suspension
by the Owner
|
38
|
13.2
|
Suspension
by the Contractor
|
39
|
13.3
|
Suspension
by Judicial or Governmental Authority
|
39
|
14.
|
TERMINATION
|
40
|
14.1
|
Termination
for Causes Attributable to the Contractor
|
40
|
14.2
|
Termination
by the Contractor
|
44
|
14.3
|
Termination
due to Force Majeure
|
46
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
46
|
15.1
|
Assignment
|
46
|
15.2
|
Subcontracting
|
46
|
16.
|
LIABILITY
AND DAMAGES
|
47
|
17.
|
OWNER
FINANCING
|
48
|
18.
|
CONFIDENTIALITY
|
49
|
19.
|
NOTICES
|
50
|
20
|
LAW
AND JURISDICTION
|
51
|
(A)
|
ALMURADIEL SOLAR, S.L.
(hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number B-82299587 herein represented
by Mr. Juan Carlos Sirviente Rodrigo, pursuant to the powers conferred
upon him pursuant to a resolution of the board of directors of the company
passed on the date hereof.
|
(B)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid at calle Pradillo nº 5, herein represented by
Mr. Marco Antonio Northland, bearing U.S. Passport No. 047605878, in his
capacity as attorney-in-fact of such entity pursuant to a public
instrument executed before Mr. Ignacio Martínez Gil-Vich, a Madrid notary,
on November 28, 2006, and recorded in his notarial protocol under No.
4.551.
|
(1)
|
The
Owner is interested in promoting the installation and operation of a solar
park in Almuradiel (Ciudad Real), consisting of twenty five (25) Solar
Facilities having between 115 and 122 kWp of peak power and 100 kWe at the
inverter.
|
(2)
|
The
Contractor is dedicated to the construction and start-up of facilities of
this type, and intends and has the capacity to construct the Solar Park in
accordance with the specifications of this
Contract.
|
(3)
|
The
Owner will partially finance the payment of the Contract Price through
financing to be made available to the Owner by one or more credit
providers (the “Financial
Institutions”).
|
(4)
|
***
|
(5)
|
Now,
therefore, the Parties mutually acknowledging the legal capacity required
to enter into contract and bind themselves, agree to execute this
"turnkey" construction contract (hereinafter, the “Contract”) in accordance
with the following:
|
1.
|
DEFINITIONS
|
-
|
Final Start-Up Certificate or
Final Start-Up: means the governmental certificate referred to in
Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, with
respect to each of the Solar Facilities and the Electrical Infrastructure,
which allows for the commencement of the commercial operation thereof,
including, for the purposes of this Contract, obtaining the final
registration of each of such Solar Facilities and Electrical
Infrastructures with the Register of Power Facilities included within the
Special Regime (Registro
Administrativo de Instalaciones de Producción de Energía en Régimen
Especial), pursuant to the provisions of Section 12 of Royal Decree
661, which grants to the corresponding facilities the status of a
production facility accepted under the special regime, in accordance with
the terms of this contract.
|
-
|
Direct Agreement: the
agreement executed among the Contractor, the Owner and the agent for the
institutions providing financing to the Owner, for purposes of, among
other things, making the payments contemplated in this Contract, pursuant
to the provisions of Clause 17.
|
-
|
Scope of Work: the
entirety of all services, supplies and work that the Contractor must
provide under this Contract in accordance with the provisions of Clause
2.2 and the specific details contained in Annex
2.
|
-
|
Insurance Advisor: means
Willis or any other insurance advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
|
-
|
Legal Advisor: means
Gómez-Acebo & Pombo, S.L. Ramón & Cajal Attorneys or any other
legal advisor that the Financial Institutions may designate in the context
of the financing of the Solar Park
|
-
|
Technical Advisor: means
Sylcom Solar or any other technical advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
|
-
|
Performance Bond: means
the bond payable on demand to be delivered by the Contractor in accordance
with the provisions of Clause 8.5 to guarantee the performance of its
contractual obligations and which shall be effective as from delivery
thereof to the Owner in accordance with the provisions of this contract
until the execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Guarantee Bond: means
each of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations during the Guarantee Period, which shall be
effective as from the execution of the Solar Park Provisional Acceptance
Certificate through the execution of the Final Acceptance
Certificate.
|
-
|
Final Acceptance Certificate
(FAC): means the certificate that shall be executed by the Parties
at the end of the Guarantee Period to attest to the final acceptance of
the Solar Park by the Owner.
|
-
|
Solar Park Provisional
Acceptance Certificate (Park PAC): means the certificate that shall
be executed by the Parties concurrently with the execution of the
Provisional Acceptance Certificate for the last Solar Facility forming a
part of the Solar Park, to evidence the proper operation of the Solar Park
as a result of the Overall Test of all Solar Facilities and the Electrical
Infrastructure, as well as the Contractor’s compliance with the
obligations set forth in this Contract, without prejudice to the
provisions established for the Guarantee
Period.
|
-
|
Solar Facility Provisional
Acceptance Certificate (Facility PAC): means the certificate that
shall be executed by the Parties to evidence the proper operation of the
equipment as a result of the Performance Tests for each of the Solar
Facilities (including the Electrical Infrastructure associated with each
Solar Facility) and the Contractor’s compliance with the obligations set
forth in this Contract, without prejudice to the provisions established
for the Guarantee Period. In order to issue
a Provisional Acceptance Certificate for a Solar Facility,
proper operation of the General Electrical Infrastructure in order to meet
the installed capacity of the Solar Facilities in operation at such time
must also be verified.
|
-
|
Contractor: means
SUNPOWER ENERGY SYSTEMS SPAIN, S.L. and any other
company that may succeed it in its obligations in accordance with the
provisions of this Contract.
|
-
|
Contract: means this
contract together with the Annexes hereto. In the event of conflict
between the body of this Contract and one or more of the Annexes, the body
of this Contract shall prevail.
|
-
|
Maintenance Agreement:
means the Maintenance Agreement entered into by the Contractor and
the Owner on even date herewith, providing for the assumption by the
Contractor of the maintenance work for the Solar Park upon execution of
the Solar Park Provisional Acceptance
Certificate.
|
-
|
Systemic Defect: is an
operational failure of the Solar Facilities of the Solar Park occurring
during the Production Guarantee Period that (i) is not caused by
non-conforming performance of the Work by the Contractor under this
Contract, the Technical Specifications, the Construction Model or the
regulations applicable to the Work (in accordance with the terms of this
Contract), and (ii) that
|
|
§
|
is
the same failure or is a failure that affects, at least: 0.5% of the solar
modules, 3 or more inverters or their corresponding peripheral systems, 3
or more trackers, or 2 or more transformers (including breakers and
switches) supplied by the same manufacturer for the Solar Park;
or
|
|
§
|
the
relevant supplier or well-known independent third party in the solar
industry reports that at least 1% of worldwide production of the
corresponding model of solar module, inverter, tracker or transformer is
affected by the same operational failure and advises replacement thereof
(in which event the Owner must receive proof in the form of delivery of a
document signed by the manufacturer or of a report from an
independent third party which confirms the existence of said systemic
failure with reference to the model and series of the affected
equipment).
|
-
|
Business Day: means any
day other than a bank holiday in Madrid and Albacete, with the express
provision that Saturday is not a Business
Day.
|
-
|
Financial Institutions:
has the meaning set forth in the Recital
(3).
|
-
|
Site: means parcels 42,
23, 24 and 11, polygon 2, in the municipality of Almuradiel (Ciudad Real),
as identified in Annex 13.
|
-
|
Authorized Equipment:
means the list of brands and models of the principal equipment or elements
that will make up the Solar Facilities and the Electrical Infrastructures
described in Annex
8 hereto.
|
|
-
|
Technical Specifications:
means the technical conditions for executing the Work that were
prepared by the Contractor and delivered to the Owner, and that make up
Annex
2.
|
-
|
Delivery Deadline: means
July 15, 2008.
|
-
|
***
|
-
|
***
|
-
|
Payment Milestones:
means the milestones for the payment of the Contract Price, as described
in Clause 4.2 below.
|
-
|
Specific Electrical
Infrastructure: means the entirety of
the electrical elements permitting the evacuation to the distribution grid
of the electrical power produced by each of the Solar Facilities,
including from the Solar Facilities to the specific transformer center for
such Solar Facility.
|
-
|
General Electrical
Infrastructure: means the entirety of
the electrical elements permitting the connection of each of the Solar
Facilities, from the specific transformer center, in order to permit the
evacuation of electrical power generated by each Solar Facility to the
distribution grid, including the Evacuation Line, the distribution and
sectioning center (centro de reparto y
seccionamiento) and supplemental elements of supervision,
monitoring and data collection.
|
-
|
Electrical
Infrastructure: collectively, the General Electrical
Infrastructures and the Specific Electrical
Infrastructures.
|
-
|
Solar Facility: means
the entirety of the electromechanical elements that allow for the
generation of low voltage (“LV”) electrical power, including from the
solar modules themselves, solar trackers, and inverters, to the LV meter,
with a peak unit capacity of between 115 and 122
kWp.
|
-
|
Evacuation Line: the
15kV output electrical evacuation line of the distribution center of the
General Electrical Infrastructure, necessary to connect such
Infrastructures to the electrical line of the power distribution company
(Unión fenosa) to support number 5 of line 701 of the substation in
Almuradiel.
|
-
|
Change Order: means a
document signed by the Contractor and the Owner pursuant to which a change
is agreed upon in the Scope of Work, the Contract Price or the Execution
Schedule, or any other modification, as provided in this
Contract.
|
-
|
Solar Park: means the
entirety of the twenty five (25) Solar Facilities having between 115 and
122 kWp of peak capacity and 100 kWe at the inverter, that must reach a
total peak capacity of 2.9625 MWp, located at the Site, including the
Electrical Infrastructure and any other facilities that, in accordance
with the terms of this Contract, may be necessary for its
Start-Up.
|
-
|
Guarantee Period: means
the period between the signing of the Provisional Acceptance Certificate
for the first Solar Facility until the date *** (***) years following the
execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Production Guarantee Period:
means the period between Start-up of the Solar Park until ***
following Start-up of the Solar
Park.
|
-
|
Contract Price: The
price payable by the Owner to the Contractor for the performance of the
obligations contained in this Contract, the amount of which is set forth
in Clause 4 of the Contract. For purposes of this Contract, the
price corresponding to an individual Solar Facility shall be the amount
obtained by dividing the total Contract Price by the twenty five (25)
Solar Facilities.
|
-
|
Implementation Schedule:
means the schedule for the implementation of the Scope of Work,
which is attached as Annex
3 to this Contract.
|
-
|
Owner: means
ALMURADIEL SOLAR, S.L., as well as any
company subrogating to its contractual position in accordance with the
provisions of this Contract.
|
-
|
Overall Test: means the
test described in Annex
4, to be performed as a prerequisite to the execution of the Solar
Park Provisional Acceptance Certificate to verify the proper operation of
all Solar Facilities and the Electrical Infrastructure. The Overall Test
will definitively verify the proper operation of the General Electrical
Infrastructure to absorb the power discharged by all Solar
Facilities.
|
-
|
Performance Tests: means
the tests described in Annex
4, to be performed as a prerequisite to the execution of each Solar
Facility Provisional Acceptance Certificate to verify the proper operation
of the corresponding Solar Facility and Electrical Infrastructures.
Pursuant to the provisions of Clause 5.2(1), each Performance Test will be
performed on a minimum of ten (10) Solar Facilities (with their
corresponding Electrical
Infrastructures).
|
-
|
Production Tests: means
the tests that will be performed at the end of the Production Guarantee
Period in order to determine compliance with the Production Guarantee set
forth in Clause 8.4, following the protocols set forth in Annex
4.
|
-
|
Start-up: means, with
reference to a particular Solar Facility and/or Electrical Infrastructure,
the point when all of the work required by this Contract has been
completed and all Performance Tests have been passed in accordance with
this Contract and the Annexes hereto, the Provisional Acceptance
Certificate has been executed and the Owner has received the corresponding
Final Start-up Certificate (as confirmed by the Legal Advisor). Reference
to Start-up of a Solar Park shall be understood to mean the point when all
Solar Facilities and corresponding Electrical Infrastructures have passed
the Overall Tests and comply with the above referenced
requirements.
|
-
|
RD 661: Royal Decree No.
661/2007, of May 25, which regulates activities involving the production
of power under special regime.
|
|
-
|
Subcontractors: means
the subcontractors with which the Contractor subcontracts all or part of
the works to be executed under this
Contract.
|
-
|
Work: means the work and
supplies to be provided by the Contractor pursuant to the provisions of
this Contract.
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
2.1
|
Purpose
of the Contract
|
The
purpose of this Contract is the construction, start-up and delivery of the
Solar Park to the Owner pursuant to the terms set forth in this Contract
such that, upon issuance of the Final Start-up Certificate, the production
of power and sale thereof to the electric distribution grid may commence,
in accordance with applicable law and the Technical
Specifications.
|
2.2
|
Scope
of Work
|
(1)
|
According
to the terms and conditions of this Contract, the Contractor shall carry
out and shall be responsible for all of the equipment, services, supplies
and work comprising the Scope of Work. The Scope of Work includes each of
the following concepts, as well as all acts that, even if not expressly
mentioned in this Contract or in Annex
2, are necessary for the proper operation, performance and
commercial exploitation of the Solar Park, in each case in accordance with
the customary usage and practices in the industry for a project having
these characteristics, this Contract, the Technical Specifications, and
applicable law (without prejudice to the provisions of Clause
2.4(4)):
|
|
§
|
Design,
engineering (basic and detailed) and required technical
schedules.
|
|
§
|
Execution
of all aspects of the Scope of Work and the supply of all materials,
elements and equipment set forth in Annex
2, and the supply of all materials necessary and appropriate to
properly carry out the Scope of
Work.
|
|
§
|
Performance
of inspections, inventory of materials, performance controls, tests and
other analyses required under applicable law and in accordance with the
technical specifications and this
contract.
|
|
§
|
Transportation
to the Site of all materials, equipment, utilities, spare parts,
consumables and machinery for which the Contractor is responsible under
the Contract.
|
|
§
|
Direct
and indirect labor necessary to carry out the Scope of Work and all costs
and social charges associated with such
labor.
|
|
§
|
Demolition
and dismantling of the provisional facilities not required by the Owner
and conditioning and cleaning of the Site following issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Maintenance,
protection, security, custody and conservation of the equipment installed
or stored at the Site up to the signing of the Solar Park Provisional
Acceptance Certificate.
|
|
§
|
Preparation
and delivery to the Owner of all documentation within the scope of this
Contract, sufficiently in advance for the utilization thereof by the
Owner. In particular, the delivery of the documentation and manuals set
forth in Annex
2.
|
|
§
|
***
|
|
§
|
Training
of the Owner’s personnel in the operation and maintenance of the materials
and equipment acquired in accordance with the terms of Clause 6.7 of this
Contract.
|
|
§
|
Construction
of all necessary auxiliary facilities, their maintenance, cleaning and
security during the performance of the Work, including that performed in
compliance with the regulations for the Prevention of Occupational Risks
and the Social Security and Health Plan (Prevención de Riesgos
Laborales y el Plan de Seguridad y Salud); as well as the
demolition or dismantling of any temporary facilities not required by the
Owner and the conditioning and clearing of the Site following the issuance
of the Solar Park Provisional Acceptance
Certificate.
|
|
§
|
Supply
of spare parts pursuant to the provisions of Clause
6.3.
|
|
§
|
Provision
of material and human resources required to comply with the regulations
for the Prevention of Occupational Risks and the Social Security and
Health Plan, as well as the creation of the Social Security and Health
Plan.
|
2.3
|
Exclusions
|
2.4
|
Changes
in the Scope
|
(1)
|
Under
no circumstances may the Parties make any changes to the Scope of Work
contemplated by this Contract (of any kind, whether for expansions,
reductions or changes to any portion of the work and/or the items supplied
under this Contract), unless a Change Order has previously been
signed.
|
(2)
|
At
any time prior to Provisional Acceptance, the Owner may propose a change
to the Scope of Work by sending the Contractor a notice describing the
nature and scope of the change. Upon receipt of such notice, the
Contractor must send to the Owner, within a maximum period of ten (10)
Business Days, a communication that includes a complete proposal for the
changes in the Contract Price, deadlines and form of payment, or any other
changes that may be necessary in connection with the changes proposed by
the Owner. This communication shall also include a reasoned explanation of
the grounds and/or criteria used for the calculation of the new Contract
Price and/or deadline. However, the Contractor recognizes that in
accordance with the Direct Agreement, the approval of the Financial
Institutions is an essential requirement for the validity of the
changes.
|
(3)
|
Without
prejudice to the terms of the Direct Agreement, the Contractor may, at any
time during the performance of the Contract, propose changes to the Scope
of Work that it deems necessary or appropriate to improve the quality,
efficiency or safety of the Solar Park or the facilities or supplies that
make up the Solar Park. The Owner, at its discretion, may approve or
reject the changes proposed by the Contractor. The Parties will
execute a Change Order in the event that the modifications are approved by
the Owner.
|
(4)
|
In
addition, upon the entry into force, promulgation, derogation or change of
any mandatory legal provision after the execution of this Contract that
affects the Work, the Parties shall sign a document governing the changes
that must be made to the purpose of this
Contract.
|
(5)
|
The
Owner and the Contractor shall negotiate in good faith the effects on the
deadlines agreed to under this Contract that might occur as a result of
the changes requested within the context of the provisions of this Clause.
In any event, the prices applicable to any change in the Scope of Work
shall consist of the costs of the additional work or supplies arising
therefrom (reasonably justified to the Owner) plus ***% as the
Contractor’s margin.
|
3.
|
COMMENCEMENT
OF WORK
|
(1)
|
The
Parties agree that the payment by Owner of the amount set forth in Clause
4.2(i) and the delivery by the Contractor of the Performance Bond and the
Corporate Guarantee are subject only to the delivery by the Owner to the
Contractor of a letter signed by the Financial Institutions in the form of
Annex
12 confirming the availability of the financing. The payment by the
Owner of the amount in accordance with Clause 4.2(i) and the delivery of
the Performance Bond and the Corporate Guarantee by the Contractor must be
made concurrently on a date between the sixth (6th)
and ninth (9th)
Business Day following the date the Owner notifies the Contractor that the
agreed conditions are satisfied. The date the Owner pays the amount
pursuant to Clause 4.2(i) to the Contractor and the Contractor delivers
the Performance Bond and the Corporate Guarantee shall be hereinafter
referred to as the “Condition Satisfaction
Date.”
|
(2)
|
By
executing this Contract, the Owner hereby represents to the Contractor as
follows:
|
|
(i)
|
It
has obtained all authorizations and licenses necessary for the
commencement of construction for the Solar Park, except those that are
intrinsic to the construction itself and that are the responsibility of
the Contractor in accordance with the terms of Clause 6.6 (having
delivered to the Contractor a copy of those that are the responsibility of
the Owner). For purposes of clarification, the Owner has obtained the
municipal licenses for the work and related activities (to the extent
necessary), as well as the administrative authorization, the approval of
the Electrical Infrastructures Plan and the interconnection point of the
Solar Facilities and has delivered to the Contractor a confirmation issued
by the Council for the Environmental and Rural Development (Consejería de Medio Ambiente y
Desarrollo Rural) of Castilla La Mancha that an Environmental
Impact Statement is not required with respect to any of the Solar
Facilities of the Solar Park; and
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|
(ii)
|
The
Site is fully accessible and available for the commencement of
Work.
|
(3)
|
In
the event that (a)
the letter relating the financing described in subsection (1) has not been
delivered by November 23, 2007, or (b) the Condition
Satisfaction Date has not occurred by the tenth Business Day following the
date the Owner delivered such letter to the Contractor, the Contractor and
the Owner may terminate the Contract by delivery to the other Party of a
notice setting forth its desire to terminate the Contract, and the Parties
shall be released from all obligations assumed with respect
thereto. The foregoing shall be without prejudice to the
purchase orders or requests that the Parties, or companies belonging to
their groups, shall have already made or agreed to, as of or following the
execution of this Contract. Such purchase orders or requests shall
continue in force and effect in accordance with their terms unless the
Owner elects to cancel them, in which case the Owner shall pay the
Contractor any cancellation costs that the Contractor or any company in
its group must pay to any distributor or manufacturer with respect to such
orders.
|
|
However,
the Contractor may not terminate the Contract if the Owner has confirmed
its intention and ability to make the payment described in Clause 4.2(i)
and the Condition Satisfaction Date has not have occurred due to the
Contractor’s failure to deliver the Performance Bond and the Corporate
Guarantee.
|
(4)
|
Subject
to paragraph three of this section, the Contractor represents that, prior
to the execution of this Contract, it has studied the sub terrain,
surroundings and access thereto.
|
|
Representations
contained in the previous paragraphs regarding the adequation of the Site
for the performance of the Work shall be subject to the Contractor
receiving the definitive geotechnical report on the Site in the five (5)
days following signature of this Contract. Upon receipt of such report by
the Contractor, the Parties shall sign a document declaring the Site
adequate or, if applicable, agreeing the necessary amendments to the Scope
of Work and/or the Contract Price on the basis of contingencies arisen
from the report. As from the signature of such document, representations
contained in this section shall be fully valid and binding for the
Contractor. Notwithstanding the above, the Contractor accepts that, in
case the geotechnical report concludes that the Site conditions are
equivalent to those of the report for the site where is going to be built
a solar park according to an agreement signed on the date hereof between
the Contractor and Naturener Solar Tinajeros, S.L., the Site will be
deemed adequate, the Contractor not being entitled to claim any amendment
to the Scope of Work and/or Contract
Price.
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|
The
Contractor recognizes that the Owner is carrying on the necessary steps to
extend the Site to other adjacent properties in order to improve the Solar
Park performance. In case that the Owner deliver to the Contractor before
December 31, 2007 all the necessary licenses and rights over the
properties to extend the Site to such properties, the Contractor shall be
entitled to build the Solar Park in those adjacent properties for the same
Contract Price and within the terms set forth in this Contract. However it
is up to the Contractor to build the Solar Park in the adjacent
properties, the Contractor recognizes that the extension of the Solar Park
to those properties may improve the Solar Park performance so that it
undertakes to make its best efforts to reconfigure the Solar Park and
choose for the extension of the park to those
properties.
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4.
|
PRICE
AND FORM OF PAYMENT
|
4.1
|
Contract
Price
|
(1)
|
The
Contract Price payable by the Owner to the Contractor in consideration for
the works to be performed by Contractor under this Contract shall be ***
Euros. This amount shall be increased by an amount corresponding to Value
Added Tax (VAT) pursuant to applicable law at any given time. The
Contractor hereby acknowledges and agrees that the Contract Price is a
lump-sum, fixed, and final price, and is not subject to any change or
revision whatsoever on the basis of any changes in the prices of labor,
materials, equipment, exchange rates or any other similar items, including
a change in any taxes levied on the scope of the
work.
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(2)
|
The
Contract Price includes all the costs and expenses associated with the
Contractor’s performance of work under the Contract, including those
specifically set forth in the Scope of Work. The Contract Price shall be
deemed to include, by way of
example:
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|
§
|
taxes,
fees, industrial- and intellectual-property royalties on the equipment
supplied, Social Security and other encumbrances upon the supplied
equipment and materials in their country of origin or destination,
including, if applicable, the rights of free circulation in the European
Union and any other tax with respect to the importation of the Equipment
and the performance of the Work, except for the VAT on the actual Contract
Price. For purposes of clarification, the Price does not include
legalization fees or costs for permits and authorizations, which are the
responsibility of the Owner.
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|
§
|
payroll
costs and the cost of equipment required for the Contractor’s performance
of the Work or to ensure the protection, security and proper performance
thereof.
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|
§
|
the
cost of any insurance that must be taken out by the Contractor pursuant to
Clause 11.
|
(3)
|
In
the event of changes in the Scope of Work agreed to pursuant to the
provisions of this Contract, the price agreed to in the corresponding
Change Order shall apply.
|
(4)
|
Without
prejudice to the foregoing, in consideration for the maintenance and
security tasks to be performed by the Contractor prior to the execution of
the Solar Park Provisional Acceptance Certificate, the Owner shall pay to
the Contractor (in addition to the Contract Price), the portion of the
price contemplated in the Maintenance Agreement that is equivalent to the
percentage representing the Solar Facilities that have obtained a
Provisional Acceptance Certificate with respect to all Solar Facilities
contemplated by this Contract.
|
4.2
|
Payment
Milestones
|
|
The
Contract Price shall be paid by the Owner to the Contractor pursuant to
the payment schedule set forth below (each of the milestones set forth
below shall be deemed a “Payment
Milestone”):
|
|
(i)
|
On
the Condition Satisfaction Date, an amount equal to ***% percent of the
Contract Price, i.e., *** euros, upon delivery of the Performance Bond by
the Contractor.
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|
(ii)
|
Based
on the monthly progress of the civil works involving earth moving,
leveling and foundation laying, measured as 100 kWe Solar Facilities whose
foundations are completed, the Owner will pay up to a maximum of ***
percent (***%) of the Contract Price, i.e., *** euros, upon presentation
of the respective invoices by the
Contractor.
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|
(iii)
|
Upon
each delivery to the Site of the module supports, inverters and trackers
of each Solar Facility and presentation of the corresponding invoices not
earlier than two (2) months prior to the dates indicated in the
Implementation Schedule, the Owner shall pay up to a maximum of *** (***%)
percent of the Contract Price corresponding to such Solar
Facilities.
|
|
(iv)
|
Upon
each delivery of the solar modules of each Solar Facility to the Site and
upon presentation of the corresponding invoices not earlier than the dates
indicated in the Implementation Schedule, the Owner shall pay up to a
maximum of *** (***%) percent of the Contract Price corresponding to such
Solar Facilities.
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|
(v)
|
Based
on the monthly progress of the mechanical assembly of the module supports,
solar trackers and the modules mounted thereon, as well as the
installation of the inverters and the transformer center, measured as
Solar Facilities of 100 kWe whose facilities up to the transformer center
have been completed, the Owner will pay up to a maximum of *** (***%)
percent of the Contract Price, upon presentation of the respective
invoices.
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|
(vi)
|
Upon
the execution of each Provisional Acceptance Certificate for a Facility,
the Owner shall pay *** (***%) percent of the Contract Price corresponding
to such Solar Facility (together with the remaining portion of the
Contract Price, if any, that was not previously paid and that corresponds
to Work completed by the Contractor under this Contract in respect of such
Solar Facility). The last Solar Facility payment shall be made
concurrently with the execution of the Solar Park Provisional Acceptance
Certificate.
|
4.3
|
Invoicing
System and Form of Payment
|
(1)
|
Once
the Contractor deems that a Payment Milestone has been achieved, the
Contractor shall give written notice thereof to the Owner and the
Technical Advisor, attaching thereto the invoice and any documentation
that may be necessary to demonstrate achievement of the corresponding
Payment Milestone (including, for this purpose, all of the documentation
that must be furnished by the Contractor to the Owner at any time,
pursuant to the provisions of Annex
2).
|
(2)
|
Within
fifteen (15) Business Days following receipt of the above-mentioned
notice, the Owner and the Technical Advisor shall confirm the achievement
of the corresponding Payment Milestone. Within such period, the Owner and
the Technical Advisor shall communicate in writing to the Contractor:
(i) their
agreement that the corresponding Payment Milestone has been achieved, in
which case the Owner and the Technical Advisor shall provide documentary
confirmation by approving the corresponding invoice, or (ii) that the Payment
Milestone has not been fully achieved, in which case the Owner and/or the
Technical Advisor must specify in writing to the Contractor a
detailed and reasoned explanation of the work pending performance in order
for the Payment Milestone to be deemed to have been
achieved. In the event that the Owner and/or the Technical
Advisor fail to respond to the Contractor within the above-mentioned
period of fifteen (15) Business Days, due solely to the failure of the
Contractor to provide all documentation required to verify achievement of
the Payment Milestone, the Owner and the Technical Advisor agree to
request the same within the above period of fifteen (15) Business Days.
The Owner and the Technical Advisor will be allotted another ten (10)
Business Days to issue their response, counting from the date of receipt
of all requested documentation.
|
(3)
|
If
the Owner and/or the Technical Advisor do not agree that a Payment
Milestone has been achieved, the Owner shall be entitled to return the
corresponding invoice until the Contractor has completed the work in
accordance with the provisions of this Contract. However, if the Parties
agree that the disagreement involves only part of the work included in the
Payment Milestone, the Owner shall pay the invoice amounts corresponding
to the work not affected by the dispute, with the rest remaining subject
to full performance and delivery by the Contractor in accordance with the
terms of this Contract.
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(4)
|
If,
following the period referred to in subsection (2) above, the Owner and/or
the Technical Advisor have not responded, the Contractor may send a demand
notice to the Owner and the Technical Advisor communicating such fact and
allowing an additional period of five (5) Business Days for confirmation
of their agreement or disagreement as to the achievement of the respective
Payment Milestone. If, upon expiration of such period, the Owner and/or
the Technical Advisor still have not responded, achievement of the Payment
Milestone shall be deemed accepted by the Owner and the Technical
Advisor.
|
(5)
|
Under
no circumstances shall the Owner’s or the Technical Advisor’s agreement to
a Payment Milestone imply acceptance of the Work associated therewith,
which acceptance shall in any event remain conditioned upon passing the
Performance Tests and executing the respective Provisional Acceptance
Certificate and, ultimately, the Final Acceptance
Certificate.
|
(6)
|
Payments
shall be made by the Owner to the Contractor via bank transfer to the bank
account designated by the Contractor within *** Business Days following
the date on which the Owner accepted the corresponding Payment Milestone
(or on the date on which the Payment Milestone was deemed accepted by the
Owner, in accordance with subsection (4) above). On an exceptional basis,
the payment corresponding to the first Payment Milestone shall be paid by
the Owner on the Condition Satisfaction Date (with respect to such
payment, approval of a Payment Milestone by the Contractor and the Owner
pursuant to the above provisions is not required)
.
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL
ACCEPTANCE
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
(1)
|
The
Contractor hereby undertakes to perform the Work in accordance with the
Implementation Schedule attached hereto as Annex
3, such that the Solar Park shall have all technical attributes
required for issuance of the Final Acceptance Certificate (and the same
has been requested in accordance with Clause 2.4) no later than the
Delivery Deadline.
|
(2)
|
The
dates for performance specified in the Implementation Schedule and, in
particular, the Delivery Deadline, are fixed and final, and may not be
postponed, and the performance deadlines may not be extended, except under
the following circumstances:
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|
(i)
|
due
to agreed-upon changes in accordance with the provisions of Clause 2.4,
provided that such changes include an extension of the
deadlines;
|
|
(ii)
|
due
to a breach by the Owner giving rise to a delay in the Work (including,
specifically, delays in procuring authorizations and licenses for which it
is responsible), provided that such breaches are not attributable to
actions, omissions or breaches by the
Contractor;
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|
(iii)
|
suspension
of the Work in accordance with the provisions of Clause 13, except in the
event of suspensions attributable to the Contractor;
or
|
|
(iv)
|
the
occurrence of an event of Force Majeure that
reasonably justifies an extension of the deadlines established in the
Implementation Schedule.
|
(3)
|
The
Contractor must inform the Owner of the alleged facts or causes, in
writing and within a maximum period of ten (10) Business Days after the
Contractor becomes aware thereof, and the communication must be
accompanied by all available information and data on such date that
substantiate such facts and the consequences thereof on the Work, the
extension (if such extension can be determined) proposed by the
Contractor, and a detailed explanation of the measures adopted to mitigate
the consequences thereof.
|
5.2
|
Performance
Tests and Provisional Acceptance
|
(1)
|
Upon
completion of the construction of a group of at least ten (10) Solar
Facilities, or of the Solar Park, the Contractor shall notify the Owner so
that, within a maximum period of seven (7) Business Days, the Performance
Tests or the Overall Test may be commenced . All Tests shall be conducted
in accordance with the Test procedures and protocols attached hereto as
Annex
4. The Contractor agrees that the Performance Tests and
the procedures set forth in this Clause shall begin only when at least ten
(10) Solar Facilities are ready for provisional
acceptance.
|
(2)
|
Once
the Owner and the Technical Advisor have verified that the Performance
Tests (or, if applicable, the Overall Test) have been passed in accordance
with the standards set forth in this Contract and that the Owner has
received all documentation set forth in the Scope of Work, the Contractor
and the Owner shall execute the corresponding Provisional Acceptance
Certificate for the Solar Facilities delivered or the Provisional
Acceptance Certificate for the Solar Park, as applicable, provided that
the following conditions have been
met:
|
|
a)
|
The
Work corresponding to the applicable Solar Facilities, or, if applicable,
the Solar Park, has been satisfactorily
completed.
|
|
b)
|
All
of the documentation that the Contractor must submit in accordance with
the provisions of Annex
2 has been submitted to the
Owner;
|
|
c)
|
The
spare parts specified in Clause 6.3 have been made available to the
Owner;
|
|
d)
|
With
respect to the Solar Park Provisional Acceptance Certificate, the
Contractor has delivered to the Owner the Guarantee Bond in the amount
specified in Clause 8.5; and
|
(3)
|
The
deadlines granted to the Contractor for completion of pending punch list
items upon execution of a Provisional Acceptance Certificate shall not be
considered an extension of the deadlines set forth in this Contract, and
the Contractor shall indemnify the Owner for any damages that the Owner
may incur as a result thereof pursuant to Clause 5.2(a)
above.
|
(4)
|
In
the event that the Owner does not execute the Provisional Acceptance
Certificates for the respective Solar Facilities (or, if
applicable, the Solar Park) within seven (7) Business Days of verifying
compliance with the stipulated requirements, the Contractor may request in
writing that the Owner execute the respective Certificate within an
additional period of five (5) Business Days. If the Owner has not executed
the new Provisional Acceptance Certificates for the Solar
Facilities (or, if applicable, the Solar Park) within said
period, the conditions required in this clause for execution of the
corresponding Certificate have been satisfied, it shall be understood that
provisional acceptance has been achieved, except to the extent
discrepancies exist as to the performance of the conditions required by
the same, in which event the Parties shall submit the matter to
arbitration in accordance with the provisions of Clause 20
(2).
|
(5)
|
Within
thirty (30) days following the execution of the Solar Park Provisional
Acceptance Certificate, the Contractor must: (i) remove from the Site any
material used in the construction, as well as any equipment, machinery,
tools, vehicles and temporary structures that are not necessary during the
Guarantee Period; (ii) clean the Site and remove any debris or waste; and
(iii) deliver the “As Built” Plans for the Solar
Park.
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
6.1
|
Prevention
of Occupational Risks
|
(1)
|
The
Contractor shall be obligated, in compliance with current legislation, to
perform the works under this Contract in such a way as to ensure the
safety of workers, and to apply the preventive activity principles set
forth in Law 31/1995 and its implementing
regulations. Accordingly, the Contractor shall be responsible
for designing the construction process in accordance with the provisions
of Royal Decree No. 1627/1997, which establish minimum safety and
health provisions for construction work, and in its the other implementing
or supplemental regulations, such that the safety of the activities that
are performed simultaneously or consecutively is ensured, and the safety
of third parties present in the vicinity of the work site is also
ensured.
|
(2)
|
In
particular, as part of the scope of this Contract, the Owner has prepared
a Safety and Health Study, and furthermore, in compliance with the
provisions of Royal Decree No. 1627/1997, the Contractor must prepare
a Workplace Safety and Health Plan, both specifically for the work
provided for within the scope of this Contract. The Contractor hereby
represents that they contain, or will contain, all requirements of such
Royal Decree and its implementing rules and regulations (including the
provisions of the autonomous communities that apply, if
any).
|
(3)
|
Furthermore,
the Owner (at the request of the Contractor) shall appoint a safety and
health coordinator, who shall have the obligations set forth in Royal
Decree 1627/1997, and who shall be responsible for ensuring that all of
personnel of the Contractor, the Subcontractors and of the suppliers of
equipment or materials under this Contract comply with the safety
requirements established in current legislation. Both the Owner and the
Contractor shall be obligated to respect and comply with their respective
obligations, as imposed by Royal Decree 1627/1997 and other applicable
rules and regulations.
|
(4)
|
The
Owner reserves the right to evaluate security during the construction
period. This does not imply that Owner has assumed
responsibility with respect to security measures taken or the preparation
of documentation or the content of such documentation referred to in this
Clause, without prejudice to the obligations and responsibilities under
law that attach as a result of Owner’s capacity as a developer. To this
effect, the Contractor shall provide to the Owner all documentation that
Owner may reasonably require in order to confirm the performance of the
obligations set forth in this
Clause.
|
(5)
|
For
clarification purposes, in no event shall the Contract Price be increased
if, as a result of a security check, legal review or technical risk
review, the Contractor is required to take additional measures designed to
guarantee compliance with applicable rules and regulations for the
prevention of occupational risks.
|
6.2
|
Obligation
to Provide Access to the Site
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
|
The
Contractor must perform a quality control inspection of the modules, using
standards for acceptance and rejection and testing and measurement
protocols that are acceptable to the Technical Advisor. For
these purposes, the Contractor must inform the Technical Advisor of the
quality control inspections that it is going to use in the performance of
this Agreement, and detail the respective acceptance and rejection
standards and testing and measurement protocols, such that the Technical
Advisor can approve the same prior to the date on which such modules are
expected to be received under this
Contract.
|
6.5
|
Regulatory
Compliance
|
(1)
|
The
Contractor undertakes to observe and comply with the regulations
applicable to the performance of the Work, subject to the provisions of
subsection (3) below. In particular, the Contractor must ensure
compliance with regulations regarding classified activities, safety,
health, and environmental protection. In particular, the
Contractor shall be the only responsible party for compliance with
applicable law and regulations with respect to (i) ***, and (ii)
environmental protection during the period of manufacture, construction,
erection and Tests until the Solar Park Provisional Acceptance Certificate
has been executed.
|
(2)
|
The
Contractor represents that it is current in the payment of wages and
Social Security contributions for the professionals hired by the
Contractor to perform the services covered by this Contract. Accordingly,
the Contractor agrees to show to the Owner all documents that the Owner
may reasonably request evidencing compliance with wage, tax and Social
Security obligations (including, without limitation, certificates of good
standing and compliance with tax obligations and the TC1 and TC2 Social
Security dues bulletins).
|
(3)
|
In
the event of any change in the applicable rules and regulations after the
date on which this Contract is signed, the Parties shall proceed in
accordance with the provisions of Clause 2.4(4) above. In the event that
either Party does not sign the applicable change document, the Contractor
shall continue to perform the work in compliance with the rules and
regulations previously in force, and shall not assume any responsibility
for any breach of the applicable new rules and
regulations.
|
6.6
|
Permits
and Authorizations
|
(1)
|
***. Further,
both parties agree to follow the joint application procedure provided for
in the last paragraph of subsection 1 of Section 12 of RD 661 and
subsection 1 of Section 11 of Decree 299/2003, of November 4, of
Castilla-La Mancha, such that the applications for the certificate
relating to start-up and the definitive registration of the Solar
Facilities and the Electrical Infrastructure shall be made jointly. The
Parties recognize that making such joint application is an essential
element for both Parties. Such application shall be submitted
by the Contractor before the Delivery Deadline, although in such
submission (a) it
shall be the responsibility of the Contractor to provide all information
and documentation necessary to apply for the start-up certificate referred
to in Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1,
and (b) it shall
be the responsibility of the Owner to provide all information and
documentation necessary to apply for the definitive registration of the
Solar Facilities and the Electrical Infrastructure with the Administrative
Register of Solar Facilities Producing Power included within the Special
Regimen, in accordance with the terms of Section 12 of RD 661. Once
presented, the handling of the applications for the start-up certificate
and the definitive registration of the Solar Facilities and the Electrical
Infrastructure shall be the responsibility of the Owner, without prejudice
to the Contractor’s obligation to cooperate with the Owner in all respects
in accordance with the terms of Clause
6.11.
|
(2)
|
For
clarification purposes:
|
|
(i)
|
if,
due to causes attributable to the Contractor, the application for the
Final Start-up Certificate is not presented in accordance with subsection
(1) above with respect to one or more Solar Facilities or to the Solar
Park on or before the Delivery Deadline,
and/or
|
|
(ii)
|
prior
to September 29, 2008, the Owner has not have obtained the Final Start-up
Certificate as a result of design defects, defective or inadequate
equipment or performance of the Work or of defects, imprecision or
omissions in the documentation or in the technical information delivered
by the Contractor,
|
(1)
|
The
Contractor shall name a Project Director with an officially recognized
technical degree and relevant industry experience with similar
projects. The appointment of the Project Director must be
submitted to the Owner for approval. The Owner may not reject a proposed
candidate without just cause.
|
(2)
|
The
Project Director shall be responsible for overseeing proper performance of
the Work and for directing, managing, and supervising all of the
activities necessary for the implementation of the services agreed to by
the Contractor in accordance with the terms and time periods specified in
this Contract. Further, the Project Director shall be the
principle contact between the Contractor and the Owner during the term of
this Contract.
|
(3)
|
Without
prejudice to the foregoing subsection, in accordance with the terms of
this Contract and applicable law, the Contractor shall be responsible for
the actions of the Project Director and any and all consequences arising
from such actions.
|
6.11
|
Cooperation
|
7.
|
OBLIGATIONS
OF THE OWNER
|
|
(i)
|
To
comply with its payment obligations under this
Contract;
|
|
(ii)
|
To
provide to the Contractor, its Subcontractors and employees, during the
effective term of this Contract, access to the Site to fulfill their
contractual obligations, including appropriate access to highways and
access roads to perform the Work. For these effects, the Owner will
execute, at its cost and expense, agreements with landowners that procure
all necessary easements or land use
rights;
|
|
(iii)
|
Subject
and without prejudice to the obligations of the Contractor under Clauses
6.6 and 2.2 of his Contract, the Owner shall negotiate and obtain, at its
own cost and expense, the permits required for Final Start-Up and
operation of the Solar Park, including the Final Start-up Certificate.
Specifically, with respect to the joint application procedure referred to
in Clause 6.6 of this Contract, the Owner agrees to provide all
documentation and information required to apply for the definitive
registration of the Solar Facilities and the Electrical Infrastructure
with the Administrative Register of Solar Facilities Producing Power
within the Special Regime, in accordance with the terms of Section 12 of
RD 661, upon the terms of such Clause
6.6;
|
|
(iv)
|
To
cooperate with the Contractor, to the extent necessary, in order to avoid
any impact on the Implementation Schedule or in the performance of the
works by the Contractor;
|
|
(v)
|
To
appoint a project coordinator to act on behalf of the Owner in the
performance of matters associated with the Contract and who must possess
sufficient powers to represent the
Owner;
|
|
(vi)
|
The
Owner undertakes to provide to the Contractor all of the cooperation that
the latter may reasonably request in connection with the implementation of
the Work and compliance with the Contractor’s obligations under this
Contract. The Owner shall submit to the Contractor all
documentation or information that the Contractor may reasonably request in
connection with the Solar Park and that is available to the
Owner.
|
8.
|
GUARANTEES
|
8.1
|
Solar
Module Degradation Guarantee
|
|
The
Contractor guarantees the durability of the solar modules during the
Guarantee Period, in accordance with the schedule of guarantees made by
the manufacturer of the modules set forth on Annex
6 of this Contract. Upon expiration of the Guarantee
Period, the Contractor undertakes to assign to the Owner its rights under
the module supplier guarantees through the remainder of the 25-year useful
life of the modules.
|
8.2
|
Solar Module Capacity Guarantee |
(1)
|
The
Contractor guarantees that the total peak capacity of the Solar Park is
equal to or higher than the contracted capacity of 2,962.5 kWp (which will
be confirmed by the manufacturer’s photoflash certificates). In addition,
all certificates for each module shall be within the rated peak capacity
margin of ***% and all aggregate certificates for each of the Solar
Facilities shall be within the rated peak capacity margin of ***%
(although the Solar Park aggregate can only have a margin with respect to
the above referenced peak capacity of ***%, in which case the Contract
Price shall be reduced proportionately in accordance with the final
reduced peak capacity and the corresponding amount of the final Payment
Milestone contemplated in Clause 4.2 reduced
accordingly).
|
(2)
|
In
the event that (i) the total sum of the certificates is less than the
contracted 2,962.5 kWp (unless it is within the permitted margin for the
Solar Park pursuant to subsection (1) above), or (ii) the certificates do
not comply with the above referenced margins, the Contractor shall
replace, at its expense, solar modules as needed to increase the total
peak capacity of the Solar Park to the minimum permitted under subsection
(1) above, or those modules whose individual capacity is inferior to the
aforementioned tolerance.
|
(3)
|
If,
as of the date set forth in Clause 14.1(1)(i), the sum of the
manufacturer’s photoflash certificates demonstrate the peak capacity of
the Solar Park is less than the referenced total peak capacity (unless it
is within the permitted margin for the Solar Park set forth in subsection
(1) above), the Owner may terminate the Contract for Contractor breach in
accordance with the terms of Clause 14.1, and pay the indemnity set forth
in such Clause.
|
(4)
|
The
Owner reserves the right to perform capacity tests on the solar module
samples that have been provided at the CIEMAT, CENER or IFE-Frauhofer
laboratories, in accordance with the applicable IEC (International
Electrotechnical Commission) standard in order to confirm their compliance
with the capacity specified by the manufacturer and guaranteed by the
Contractor. The results thereof shall be binding on the Parties. In the
event that such results confirm that the capacity of the modules does not
fall within the tolerance guaranteed by the Contractor, the Contractor
shall bear the costs of such tests and shall immediately replace the
entire batch of modules corresponding to the tested samples, except to the
extent that the modules failing the capacity test can be identified, in
which case, only those modules shall be
replaced.
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
8.3.1
|
Design,
Assembly and Performance
Guarantee
|
(1)
|
The
Contractor guarantees during the Guarantee Period that the procedures
followed for the design of the facilities and for the performance of the
work are of the required quality and conform to the specifications
contained in this Contract.
|
(2)
|
The
Contractor is obliged to repair or, if necessary in its opinion, to supply
totally new, and reinstall free of charge to the Owner, those parts or
components of the facilities included in the Scope of Work that fail
during the Guarantee Period due to design, assembly or performance
defects.
|
(3)
|
The
provisions of subsections 8.3(2) to (8) below with respect to the
Materials Quality Guarantee shall apply, mutatis mutandis, to
the guarantee provided under this
subsection.
|
8.3.2
|
Materials Quality
Guarantee
|
(1)
|
The
Contractor guarantees that all the materials and components used in the
manufacture, assembly and Start-up of the Solar Park are of the required
quality and conform to the specifications for the equipment and the
technical documents contained in the Annexes to this
Contract. The Contractor further guarantees a minimum stock of
spare parts to the Owner in accordance with the terms of Clause 6.3 and
Annex
5 of this Contract.
|
|
(2)
|
The
materials quality guarantee will enter into force on the date of issuance
of the relevant Solar Park Provisional Acceptance Certificate and shall
remain in force until the Solar Park Final Acceptance Certificate is
signed. If the Solar Park or a portion thereof, cannot be commercially
operated during the Guarantee Period for reasons attributable to the
Contractor, the Guarantee Period shall be extended (only as regards the
affected facilities) for a period equal to the period during which the
corresponding facilities are not operating. For this purpose,
the parties shall record in writing the periods during which operation is
suspended and the corresponding extensions of the
guarantee.
|
(3)
|
During
the Guarantee Period, the Contractor is required, in its
discretion:
|
|
a)
|
To
replace any material and equipment that do not comply with what was agreed
upon or required pursuant to this Contract, or that are inadequate or of a
deficient quality; and
|
|
b)
|
To
adjust, repair or replace any equipment exhibiting any design, materials,
manufacturing, operation, or performance defect. If a Systemic Defect
exists with respect to any equipment or components supplied under this
Contract, the Contractor shall carry out, at its expense, the redesign
and/or modifications necessary to cure such problem in accordance with the
Owner’s requirements.
|
(4)
|
The
adjustments, repairs or replacements must be performed within the shortest
period that is reasonably possible (and, in any event, no later than
fifteen (15) days from the time the defect is detected), in a manner that
is least prejudicial to the Owner and taking all action needed to cause
the least possible harm to the operation of the overall facilities of the
Solar Park.
|
(5)
|
Repairs,
adjustments, alterations, replacements or maintenance that may be
necessary because of the normal wear and tear of on the facilities
provided under this Contract or caused by misuse or negligent use of the
equipment by the Owner or by third parties (other than the Contractor or
its Subcontractors) or because of the use of the equipment supplied to
Owner in a manner that does not conform to the technical specifications,
are all excluded from the scope of the guarantee. For
clarification purposes, it shall be understood that the Owner (or third
parties acting on its behalf) has used equipment in the intended manner
when such use conforms to the operation and maintenance manuals delivered
to the Owner by the Contractor pursuant to this Contract. This
guarantee may not be enforced in the event of the inaccessibility of the
Site, provided that the Contractor has notified the Owner of the existence
of such inaccessibility, or, in the events of Force Majeure (for such
time as exist the circumstances preventing the provision
thereof).
|
(6)
|
The
obligations arising from the guarantee set forth in this section shall be
fulfilled by the Contractor at its sole cost and expense and free of any
charges or expenditures by the Owner, and the Contractor shall bear the
expenses arising as a result thereof for the Owner, such as demolition and
disassembly, construction, carting, insurance and packaging for returned
materials and their replacement, assembly and supervision, taxes and the
like.
|
(7)
|
All
repaired or replaced material shall carry a new guarantee period of the
following duration from the date of repair or
replacement:
|
|
(i)
|
if
repaired, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is longer;
and
|
|
(ii)
|
if
replaced, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is
longer.
|
(8)
|
The
Contractor guarantees the availability of spare parts for the modules,
inverters and solar trackers during the Guarantee Period and during the
entire useful life of each Solar Facility, in the latter case provided the
Maintenance Agreement remains in force. The Contractor shall provide such
guarantee on the following terms:
|
|
(i)
|
With
respect to the module, inverter or solar tracker spare parts that are
manufactured by the Contractor or by companies of its group (currently
headed by Sunpower Corporation), the Contractor shall ensure that such
spare parts continue to be manufactured or, in the event that the
Contractor or the companies of its group do not manufacture spare parts
identical to those already installed, that spare parts for modules,
inverters or solar trackers of similar characteristics (and, in the case
of modules, of equal or greater capacity) are available, provided they do
not entail a reduction in the guaranteed performance of the Solar
Park.
|
|
(ii)
|
With
respect to the module, inverter or solar tracker spare parts that are not
manufactured by the Contractor or by companies of its group, the
Contractor shall use reasonable efforts to (a) cause the respective
suppliers to continue to manufacture such spare parts or other spare parts
with similar characteristics (and, in the case of modules, of equal or
greater capacity), provided they do not entail a reduction of the
guaranteed performance of the Solar Park, or (b) obtain such spare parts
with similar characteristics from other vendors with technical
capabilities that are at least similar to the original
ones. Should the Contractor become aware that an original
vendor intends to stop manufacturing such spare parts, it shall so notify
the Owner so that the Owner may order, through the Contractor, the spare
parts it deems appropriate, provided they are available on the
market.
|
8.4
|
Solar
Park Production Guarantee.
|
(1)
|
The
Contractor guarantees to the Owner that the aggregate electric output of
the Solar Park during each of the *** periods included in the Production
Guarantee Period shall reach the PR guaranteed pursuant to Annex
10 (the “Guaranteed PR”), for
each determined irradiance and temperature condition, and that in no event
shall it fall beneath the PR minimum set forth in such Annex (the “Minimum
PR”).
|
(2)
|
A
Production Test shall be performed at the end of each *** period dividing
the Production Guarantee Period in order to confirm the electrical
output. For these purposes, within the forty-five (45) days
prior to the termination of the *** period following the commencement date
of the Production Guarantee Period, and within the forty-five (45) days
prior to the termination of the Production Guarantee Period, the
Contractor shall notify the Owner of such circumstance so that the Parties
may agree upon a date the perform the Production Tests for the
corresponding *** period (which, in no event may be later than the date
which is fifteen (15) Business Days following the date of termination of
the period which is *** following the commencement date of the Production
Guarantee Period or the termination date of the Production Guarantee
Period, as applicable). The following shall apply to the results of the
Production Tests for the Solar
Park:
|
|
(a)
|
If
the actual measured output of the Solar Park is less than the Guaranteed
PR for the corresponding *** period (as such term is defined in Annex
10) but is greater than the Minimum PR for such period, the
Contractor shall pay to the Owner the penalties set forth in Annex
10, up to a maximum of ***% of the Contract Price.
|
|
(b)
|
If
the actual measured output of the Solar Park is less than
the Minimum PR for the corresponding *** period, the
Owner may elect to: (i) return the entire
Solar Park to the Contractor (or the part thereof that was not rejected in
the event of a partial termination in accordance with the terms of Clause
14.1), the Contractor then being obligated to return the entire Contract
Price paid by the Owner pursuant to this Contract and to indemnify the
Owner for damages pursuant to Clause 14.1(5), or (ii) return the Solar
Facilities causing the failure to achieve the Minimum PR to the
Contractor, the Contractor then being obligated to return the portion of
the Contract Price corresponding to such Solar Facilities and to indemnify
the Owner for damages pursuant to Clause 14.1(5) that correspond to the
returned Solar Facilities.
|
(3)
|
If
the Guaranteed PR is reached in the Production Tests for each *** period,
or if the Contractor shall have paid the required penalties for achieving
an output between the Minimum PR and the Guaranteed PR, the Parties shall
execute a certificate of agreement. The execution of such
certificate corresponding to the second *** period for the Guaranteed
Production Period shall grant the Contractor the right to require the
Owner to return the Guarantee Bond in force at the time and replace the
same with a new Guarantee Bond in an amount equal to ***% of the Contract
Price. The same provisions of this subsection shall also be
applied to the Solar Facilities, if any, that the Owner did not return in
accordance with subsection
8.4(2)(b).
|
(4)
|
The
Contractor shall not be responsible for breach of the guarantees in the
event that such failure was caused by the circumstances described in
Clause 8.3.2(5) above or by excessive failures of the grid coupled with
the disconnection of the inverters for exceeding the conditions detailed
in their technical specifications.
|
|
Further,
in the event that a Systemic Defect arises during a Production Guarantee
Period, the data from the Solar Park as a whole shall not considered for
purposes of the Production Guarantee during the time the Contractor is
replacing the equipment affected by such Systemic Defect, up to a maximum
of three (3) months. Thus, in the event that the Contractor
takes more than three (3) months to replace the Solar Park equipment
affected by a Systemic Defect, only that three (3) month period shall
remain in the Production Guarantee Period. For this purpose, the parties
shall record the suspension periods and corresponding extensions of the
Production Guarantee in writing.
|
|
For
clarification purposes, the appearance of a Systemic Defect shall obligate
the Contractor to replace all equipment of the same model and
manufacturer, regardless of whether they have manifested such defect at
the time of their replacement.
|
|
8.5
|
Bonds
|
(1)
|
On
the Condition Satisfaction Date, the Contractor shall deliver to the Owner
the Performance Bond, as per the form attached hereto as Annex
7, in an amount equivalent to ***% of the Contract Price. The
Performance Bond shall guarantee the performance by the Contractor of any
payment obligation for which the Contractor is responsible from the
commencement of the Work until the date of execution of the Solar Park
Provisional Acceptance Certificate (for any reason, including but not
limited to the return of the amounts paid by the Owner, under this
Contract, penalties or compensation for damages and losses, including the
performance by the Contractor of its obligations during the portion of the
Guarantee Period prior to the execution of the Solar Park Provisional
Acceptance Certificate).
|
(2)
|
As
a requirement for the execution of the Solar Park Provisional Acceptance
Certificate, the Contractor shall deliver to the Owner the Guarantee Bond
(in exchange for the return of the Performance Bond by the Owner), in an
amount equal to ***% of the Contract Price. The Guarantee Bond shall
conform to the form attached hereto as Annex
7 and shall guarantee the Contractor’s compliance with its
obligations during the Guarantee Period (beginning from the execution of
the Solar Park Provisional Acceptance Certificate). However, once the
Performance Tests corresponding to the second *** period of the Production
Guarantee Period have been performed and the written agreement referred to
in Clause 8.4(3) has been executed, the Contractor shall have the right to
replace the Guarantee Bond delivered to the Owner with a new Guarantee
Bond in an amount equal to ***% of the Contract
Price.
|
(3)
|
The
Performance Bond and the Guarantee Bond shall be issued by a financial
institution with a minimum “A” rating by Standard & Poor’s Corporation
or the equivalent from Moody’s Investors Services Inc., and shall be
enforceable, in whole or in part, on demand by the Owner, in the event of
the Contractor’s breach of its obligations under this
Contract.
|
(4)
|
The
delivery of the bonds provided under this section shall in no way limit
the Contractor's liability under this Contract, as the bonds only
constitute a means to guarantee the performance of the obligations assumed
by the Contractor.
|
(5)
|
If
the Contract Price is amended pursuant to Change Orders, the Contractor
must update the amount of the Performance Bond. To such end, the
Contractor must deliver to the Owner (within fifteen (15) Business Days
following the execution of the corresponding Change Order), the bonds in
the updated amount, in the form attached hereto as Annex
7.
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
(1)
|
Within
forty-five (45) days prior to the passage of *** from the date on which
the Solar Park Final Start-Up Certificate has been obtained, the
Contractor shall give notice thereof to the Owner in order for both
Parties to agree upon a date to analyze the status and condition of the
Solar Park (which shall not occur later than the Guarantee Period
expiration date).
|
(2)
|
If
such inspection does not reveal the presence of defects, the Parties shall
proceed to execute the Final Acceptance Certificate, at which time the
Owner shall return the Guarantee Bond to the
Contractor.
|
(3)
|
If
such inspection finds that defects are present that affect the
Contractor's obligations during the Guarantee Period, the Parties shall
sign a certificate specifying the defects, if any, that must be corrected
within a period of forty-five (45) days of the date of execution of the
corresponding certificate, or within such shorter period that the Parties
may agree upon.
|
|
Once
such defects have been corrected by the Contractor within the specified
period, a new inspection shall be performed, and if the defects have been
remedied, the Parties shall proceed to execute the Final Acceptance
Certificate, and the Owner shall return the Guarantee Bond to the
Contractor.
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF
RISK
|
(1)
|
The
Owner and the Contractor expressly agree that the actual transfer of
ownership of the facilities and equipment covered by this Contract will be
made, for all contractual purposes, when each of the same shall have been
paid for in full by the Owner. With respect to the solar modules, module
supports and trackers, ownership thereof will be transferred to the Owner
upon payment of the respective invoice as provided in Clause 4, whereupon
the Owner will become the owner of the solar modules, the module supports
and the trackers included in such
invoice.
|
(2)
|
Without
prejudice to the foregoing, or to the Contractor’s obligations during the
Guarantee Period, the possession and the risk of loss of the same shall
not be transferred to the Owner until the execution of the Solar Park
Provisional Acceptance Certificate.
|
(3)
|
Until
the execution of the Solar Park Provisional Acceptance Certificate, the
Contractor must repair or replace, at its own expense, any equipment,
facility or portion of Work that is lost or damaged. Further,
the Contractor must assume responsibility for the care and security of the
Site and assume responsibility for any loss, theft or damage that may
occur with respect to the Contractor’s materials or machinery or the
equipment delivered pursuant to this
Contract.
|
11.
|
INSURANCE
|
(1)
|
At
all times during which the Contractor continues performing work under this
Contract, the Contractor, at its own cost and expense, shall take out and
maintain in force the insurance described below with well-known and
solvent insurance companies that are legally authorized to issue policies
in Spain, on terms and conditions of coverage satisfactory to the Owner
and the Insurance Advisor:
|
|
a)
|
Occupational
Accidents or Social Security Insurance for all its own personnel or for
the personnel of the Subcontractors as is legally required during the
effective period of the Contract.
|
|
b)
|
Mandatory
Civil Liability Insurance and Voluntary Civil Liability Insurance for the
Circulation of Vehicles and Machinery, pursuant to the limits and
conditions mandated by the Legislation in force during the effective
period of the Contract.
|
|
c)
|
Civil
Liability Insurance covering all activities of the Contractor and the
Subcontractors necessary to complete the Work, with a limit of not less
than €1,500,000 per occurrence.
|
|
d)
|
Transportation
Insurance covering the transportation of material and machinery to the
Site, with a limit of not less than the aggregate value of the transported
goods.
|
|
e)
|
All-Risks
Construction and Assembly Insurance, which will specifically include theft
and vandalism at the Site, from the unloading of the material at the Site
until the transfer of ownership of the Solar Park, including the testing
period and covering a maintenance period of not less than 12 months, with
an insured amount not less than the Contract
Price.
|
|
f)
|
Any
other mandatory insurance.
|
(2)
|
The
contracting of insurance provided in this clause shall in no event limit
the liabilities of the Contractor under this Contract. Additionally, the
amounts established as an insurance deductible in each of the insurance
policies shall be borne by the Contractor, unless the loss is attributable
to the Owner.
|
(3)
|
The
Owner may require that the Contractor deliver documentation evidencing the
contracting of the insurance set forth under this Clause to verify
compliance therewith and/or for verification by the Insurance Advisor, and
the Contractor undertakes to make such documentation available to the
Owner as soon as possible.
|
12.
|
FORCE
MAJEURE
|
(1)
|
Neither
Party shall be deemed liable for the breach of any of its obligations to
the extent that the performance of such obligations is delayed or becomes
impossible as a consequence of Force
Majeure.
|
(2)
|
For
the purposes of this Contract, events of Force Majeure shall be
deemed to be the events described in Article 1105 of the Civil Code,
provided that they actually prevent compliance by the party invoking it
from complying in whole or in part with its obligations under this
Contract. The Parties expressly agree that the discovery of archeological
ruins at the Site shall be considered an event of Force Majeure for
purposes of this Contract (without prejudice to the changes, if any, that
the Parties may agree to in accordance with subsection (11) below and the
consequences set forth therein). By way of example and not limitation, the
Contractor may not invoke the following as an event of force
majeure:
|
|
(i)
|
Meteorological
conditions or phenomena that could have been reasonably foreseen by
experienced contractors operating at the
Site.
|
|
(ii)
|
Delays
or failures in obtaining materials or labor that are foreseeable or
avoidable in advance.
|
|
(iii)
|
Delays
by any Subcontractor, unless such delays are based on any of the events
specified in this clause.
|
|
(iv)
|
Strikes
or labor conflicts affecting the Contractor or the Subcontractors, unless
they are national, sector-wide or local in
scope.
|
(3)
|
The
Party affected by Force
Majeure shall give written notice to the other Party as soon as
possible within a maximum period of forty-eight (48) hours from the day on
which such Party became aware thereof, attaching to such notice all
available documents evidencing the event that is deemed to amount to Force Majeure, the
measures taken up to such point in time, and an estimation, if possible,
of the expected duration thereof and its impact on the
Work
|
(4)
|
The
performance of the obligations affected by an event of Force Majeure shall be
suspended for the duration of such event, the Parties not being entitled
to damages as results of such events of Force
Majeure.
|
(5)
|
If
the Work is affected by the event of Force Majeure and the
Contract is suspended for more than one hundred eighty (180) days, either
of the Parties may seek termination of the Contract, with the consequences
provided in Clause 14.3.
|
(6)
|
After
cessation of the event of Force Majeure, the
Parties shall agree upon the corresponding extension of deadlines (in all
cases in light of the duration of the event of Force Majeure and the
mobilization periods), or, if applicable, the measures that must be
adopted to recover, in whole or in part, the time lost so as to preserve
such dates, if possible. The contractual obligations not affected by Force Majeure must be
met within the deadlines that were in force prior to the occurrence of the
event of Force
Majeure.
|
(7)
|
In
any event, upon cessation of the event of Force Majeure, the
Parties shall take all reasonable measures within their power to resume
performance of the obligations under the Contract under optimal conditions
and with the least possible delay.
|
(8)
|
The
expenses incurred as a consequence of the repair, replacement or
adjustment of the items damaged by the events of Force Majeure shall be
borne by the party bearing the risk of loss for such elements at the time
of occurrence of the event of Force
Majeure.
|
(9)
|
In
the event that an event of Force Majeure prevents
a Party from complying with a payment obligation required by the Contract,
such payment obligation shall not be waived and the other Party may
suspend performance of its obligations under the Contract. Such
occurrence shall not give either Party a right to indemnification for
damages, without prejudice to any interest for delay in payment that might
apply.
|
(10)
|
The
Party claiming the Force
Majeure event shall immediately notify the other Party of its
cessation. Within seven (7) calendar days following the
cessation of the Force
Majeure event, the Parties shall meet to agree and assess the
effects that such situation caused. Such agreement shall be
documented in a certificate signed by both Parties describing the changes
to the contractual conditions.
|
(11)
|
In
the event that archeological ruins are discovered at the Site, but the
Work may be continued by reducing the size of the Solar Park, the number
of Solar Facilities, or by implementing a reconfiguration of the technical
configuration of the Solar Park, the Parties shall meet to agree on such
changes and shall execute a certificate describing the changes to the
contractual conditions. In any event, if the change entails a
reduction in the capacity of the Solar Park, or in the number of Solar
Facilities, thus requiring a reduction of the Contract Price, the Owner
shall have the right to withhold from the remaining Payment Milestones
payable after the change, the portion of the Contract Price previously
paid by the Owner that corresponds to the Solar Facilities or the
equipment affected by the reduction and which, consequently, were not
delivered by the Contractor under this
Contract.
|
13.
|
SUSPENSION
OF THE WORK
|
13.1
|
Suspension
by the Owner
|
(1)
|
The
Owner may at any time give written notice to the Contractor ordering the
immediate suspension of the Solar Park, in whole or in part, for any of
the following reasons:
|
|
a)
|
If
the Contractor is performing the Work in a defective or inappropriate
manner, or not adhering to uses and practices customary for projects of
this type or as established under this Contract, provided that the
Contractor does not cure such defects within a reasonable period granted
by the Owner.
|
|
b)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with safety standards, avoiding
damage to people and things, provided that the Contractor does not cure
such defects within a reasonable period granted by the
Owner.
|
|
c)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with quality control
requirements, provided that the Contractor does not cure such defects
within a reasonable period granted by the
Owner.
|
|
d)
|
If
the Contractor fails to comply with the instructions issued by the
Governmental Authorities for the execution of the Work, to the extent that
this may affect the authorizations granted or requested or the successful
achievement of the purpose of the
Contract.
|
|
e)
|
By
unilateral decision of the Owner.
|
(2)
|
The
order providing for the suspension of the Work shall specify in writing
the portion thereof that is being suspended, the grounds for suspension,
the effective date of suspension and the date provided for the resumption
of the Work (if applicable).
|
(3)
|
In
all the cases provided in subsection (1) above, except for the ones
mentioned in subsection (e), the suspension shall last for all the time
required and until the Contractor cures the circumstances that gave rise
to the suspension of the Work. Additionally, in none of such cases shall
the Contractor be entitled to any additional payment whatsoever or to the
extension of the periods provided in the Implementation Schedule, except
in the case mentioned in subsection (e), where the Contractor shall be
entitled to an extension of the deadlines provided in the Implementation
Schedule for a period at least equal to the suspension period and to be
compensated for the costs resulting from the repair, replacement or
adjustment of the items damaged during the suspension period and the costs
arising from the suspension and resumption of the
Work.
|
(4)
|
If
the suspension lasts for a period in excess of one hundred and eighty
(180) days, and the reasons are not attributable to the Owner, the
Contractor shall reserve the right to terminate the Contract upon the
terms of Clause 14.1.
|
13.2
|
Suspension
by the Contractor
|
(1)
|
The
Contractor shall be entitled to temporarily suspend the Work as provided
under this Contract, applicable law and in the event that the Owner incurs
a delay in excess of thirty (30) days in the payments owing to the
Contractor, as regards the expiration dates of the relevant invoices
(except in the case of the works relating to a Payment Milestone disputed
in accordance with Clause 4.3 (3)). In such event, the Owner
shall pay to the Contractor its expenses arising from the suspension
(including the costs resulting as a consequence of the repair, replacement
or adaptation of the damaged elements during the suspension period and the
costs arising from the suspension and resumption of the Work) and the
Parties shall agree upon an extension of the deadlines for performance
based on the effects of the suspension
thereon.
|
(2)
|
If
the suspension for a cause attributable to the Owner (including the one
provided under subsection 13.1(1)(e) above) lasts for more than three (3)
months or during several consecutive periods totaling more than three (3)
months, the Contractor shall be entitled to terminate the Contract upon
the terms of Clause 14.2.
|
13.3
|
Suspension
by Judicial or Governmental
Authority
|
(1)
|
In
the event of suspension, interruption or stoppage of the Work, in whole or
in part, ordered by any judicial or governmental authority, or by the
Owner or Contractor following the instructions of any judicial or
governmental authority, the financial and contractual consequences of the
delay shall be borne by the party that is responsible for performance
where the failure to perform or incorrect performance triggered the
judicial or governmental action.
|
(2)
|
If
such suspension, interruption or stoppage does not result from the actions
or omissions of any of the Parties, the periods of the Implementation
Schedule shall be extended for a period at least equal to the one during
which the situation subsisted, and the Owner shall pay to the Contractor
the duly verified costs incurred as a result of such interruption. The
Contractor undertakes to act diligently to minimize such
costs.
|
(3)
|
If
the suspension ordered by any judicial or governmental order, or by the
Owner or the Contractor following the instructions of any judicial or
governmental authority, extends for more than six (6) months, either of
the Parties will be entitled to terminate the Contract upon the terms of
Clause 14.
|
14
|
TERMINATION
|
14.1
|
Termination
for Causes Attributable to the
Contractor
|
(1)
|
The
Owner may terminate the Contract in the cases authorized by the Law, in
the instances provided for in this Contract, or upon the occurrence of any
of the following events:
|
|
a)
|
The
dissolution or merger (provided it involves a change in control) of the
Contractor ***, or when a substantial portion of the assets of the
Contractor *** is transferred to another company, provided that such
circumstances seriously prejudice the Contractor’s *** capacity to perform
the obligations under this
Contract;
|
|
b)
|
The
voluntary filing by the Contractor of a bankruptcy petition or the
allowance of a bankruptcy petition by a third party against the Contractor
(or any equivalent action in accordance with the insolvency legislation
applicable to the Contractor), or in the case of clear financial
difficulties that prevent the Contractor from normally complying with
obligations arising under the Contract, unless its obligations are
sufficiently guaranteed under this Contract. The occurrence of the same
events as regards *** shall also be grounds for
termination.
|
|
c)
|
If
the Contractor assigns or subcontracts the Contract, in whole or in part,
without complying with the conditions set forth in this
document.
|
|
d)
|
If
the Contractor fails to comply with its obligations involving the
contracting and maintenance of the insurance provided under the Contract
in a manner that might endanger coverage under the relevant
policies.
|
|
e)
|
If
the Contractor has been assessed penalties for failure to achieve the
Production Guarantee beyond the maximum limits, if applicable, provided
under this Contract.
|
|
f)
|
The
Contractor has interrupted the Work or a substantial portion thereof or
has abandoned the Solar Park for a period exceeding twenty (20) calendar
days without the Owner’s authorization, or in the case of interruptions
for an aggregate duration of more than thirty (30) days within the same
calendar year, provided that the interruptions do not arise from a
suspension of the Work provided under Clause
13.2.
|
|
g)
|
If
the application for the Final Start-up Certificate has not been filed
together with all required in accordance with the terms of Clause 6.6 on
or prior to the Delivery Deadline due to causes attributable to the
Contractor, although the Owner cannot effect termination for the reason
set forth in this subsection with respect to those Solar Facilities or
Electrical Infrastructure for which a Final Start-up Certificate would
have been obtained prior to September 29,
2008.
|
|
h)
|
If
the Owner has not obtained the Final Start-up Certificate (with respect to
one or more Solar Facilities and/or the Electrical Infrastructure) prior
to ***, for the reasons set forth in Clause
6.6(2)(ii).
|
|
i)
|
If
the Provisional Acceptance Certificate for one or more Solar Facilities or
the Electrical Infrastructure has not been issued prior to
***.
|
|
j)
|
***.
|
|
k)
|
***.
|
|
l)
|
If
there is any other material breach of the obligations assumed by the
Contractor under this Contract.
|
|
m)
|
Any
other serious breach of a principal obligation of the Contractor that
might affect or prevent the successful conclusion of the Contract, or that
is expressly designated herein as grounds for
termination.
|
(2)
|
Upon
the occurrence of any of the above events, the Owner may elect to
terminate the Contract, in whole or in part, with respect to the Solar
Facilities for which the Provisional Acceptance Certificate of a Facility
has not been issued as of the date of notice of termination, or for which
the Final Start-up Certificate has not been obtained in the case of
subsections g) and h) above (hereinafter, the “Affected Facilities”),
except to the extent that the number of Affected Facilities is less than
40% of the total Solar Facilities, in which case the Owner may only
terminate the Contract with respect to such Affected
Facilities.
|
(3)
|
Upon
the occurrence of any of the above events, the Owner shall give the
Contractor a period of thirty (30) days to remedy the event, or any other
longer period that may be agreed upon by the Parties. If within such
period the Contractor fails to remedy such grounds for termination to the
Owner's satisfaction, the Contract shall be terminated (in whole or in
part, as applicable). For clarification purposes, it is noted
for the record that in no event will the remedy period provided herein be
applicable to the circumstances provided in subsections (1)(b), (e), (f),
(g) , (h) and (i) of this Clause.
|
(4)
|
In
the event of a termination of the Contract (in whole or in part) under
this subsection, the following shall occur (without prejudice to the
provisions of subsection (6)):
|
|
(i)
|
In
the event of partial
termination, only as to some Solar Facilities in the Solar Park,
the Contractor shall be obligated to return to the Owner the portion of
the Contract Price that it charged for the Affected Facilities and shall
be obligated to pay indemnification for any damages pursuant to subsection
(5) below. The Contractor shall recover ownership of the property
comprising such Solar Facilities.
|
|
(ii)
|
In
the event of complete
termination, the Contractor shall be obligated to return the
aggregate Contract Price charged by the Contractor, and shall be obligated
to pay indemnification for any damages pursuant to subsection (5) below.
The Contractor shall recover ownership of all the property delivered to
the Owner.
|
(5)
|
Upon
the occurrence of either two events described in the preceding subsection,
the Contractor shall be obligated to pay indemnification to the Owner for
damages, including:
|
|
(i)
|
The
Financial Costs associated with the Affected Facilities or the entire
Solar Park, as applicable. “Financial Costs” shall
be understood to mean all costs, expenses, fees (whether up-front, early
termination or of any other type) and interest paid by the Owner in
respect of the financing documents entered into by the Owner with the
Financial Institutions, including cancellation or breakage fees for any
interest rate swap agreements entered into by the Owner with the Financial
Institutions.
|
|
(ii)
|
The
costs, expenses and damages incurred by the Owner as a result of, or with
respect to, the early termination or the breach by the Contractor, duly
certified by the Owner, plus an amount equal to *** euros for each
Affected Facility (i.e., *** euros in the event of total termination or
the amount that corresponds to the Affected Facilities in the event of a
partial termination), to cover permitting
costs.
|
(6)
|
Notwithstanding
the provisions of subsections (4) and (5), if the Owner had the right to
terminate the Contract, in whole or in part, as a result of the failure to
achieve Start-up prior to September 29, 2008 for the reasons set forth in
subsections 14.1(g) and 14.1(h) above, the Owner may not elect to return
the Affected Facilities, if:
|
|
(i)
|
prior
to September 29, 2008 the Contractor pays to the Owner an amount that is
sufficient to (a) restore the Debt Service Coverage Ratio (as defined in
the financing documents referred to in Clause 14.1(5)(i)) to the Base Case
(as defined in the financing documents referred to in Clause 14.1(5)(i))
agreed to by the Financial Institutions and the Owner in such financing
documents, and (b) cover the loss of profitability for the Owner’s
shareholders, taking into account the tariffs which will be received by
the Owner from the sale of power from the Solar Park. For such purposes,
the Contractor acknowledges and accepts that the amount to be paid to the
Owner (for the items set forth in the preceding subsection) will be
proposed by the Agent for the Financial Institutions and negotiated
between the Owner and the Contractor on the basis of the assumptions in
the Base Case developed by the Owner and the Financial Institutions in
connection with the financing documents;
and
|
|
(ii)
|
Start-up
of the Affected Facilities shall have occurred prior to October 31,
2008.
|
(7)
|
The
Contractor is required to pay the amounts referred to in subsections (4)
and (5) above to the Owner within *** days of the date of settlement of
the amounts owed.
|
(8)
|
In
all the foregoing instances, the Owner may, without prejudice to the
reservation of rights to take all legal action to which it is entitled for
the defense of its rights, adopt any or all of the following
measures:
|
|
a)
|
Offset
any payments pending in favor of the Contractor by an amount equivalent to
the balance in favor of the Owner (returning, in the event of complete
termination, the Performance Bond or the Guarantee Bond, as applicable,
once such offset has been made).
|
|
b)
|
Enforce
the Performance Bond and/or the Guarantee
Bond.
|
|
c)
|
Withhold
the Contractor’s materials, machinery and items belonging to the
Contractor that are in the possession of the Owner, until the Contractor
has fully paid all amounts due as a consequence of the
termination.
|
14.2
|
Termination
by the Contractor
|
(1)
|
The
Contractor may terminate the Contract under the circumstances provided for
under applicable law, in this Contract, or upon occurrence of any of the
following events:
|
|
(i)
|
The
voluntary filing by the Owner of a bankruptcy petition or the allowance of
a bankruptcy petition filed by a third party against the Owner, or in the
event of patent financial difficulties that would prevent the Owner from
normally complying with the obligations arising under this Contract in
cases different from the one provided under subsection (ii) below, unless
its obligations are sufficiently guaranteed under this
Contract.
|
|
(ii)
|
A
delay in payment for a period in excess of sixty (60) days from the date
on which payment should have been
made.
|
|
(iii)
|
Any
other serious breach of a principal obligation of the Owner that might
affect or prevent the successful conclusion of the Contract, or that is
expressly designated herein as grounds for
termination.
|
|
(iv)
|
A
suspension of the works and services for causes attributable to the Owner
for a period greater than three (3)
months.
|
|
(v)
|
The
dissolution of the Owner, or if a substantial portion of the assets of the
Owner is transferred to another company, and such circumstance seriously
prejudices the Owner’s capacity to perform the obligations set forth in
this Contract.
|
(2)
|
The
Contractor shall give to the Owner a period of thirty (30) days to cure
the event, or any other longer period that may be agreed upon by the
Parties. Such cure period shall not apply if the event giving rise to
grounds for termination is one provided for in subsections (i) and (iv) of
Clause 14.2(1) above. If the Owner fails to remedy such grounds for
termination to the Contractor's satisfaction within such period, the
Contract shall be terminated (in whole or in part, as
applicable).
|
(3)
|
Upon
termination of the Contract for any of the foregoing reasons, the Owner
must:
|
|
(i)
|
Pay
all of the Contractor’s outstanding
invoices.
|
|
(ii)
|
Pay
to the Contractor the value of the Work performed before termination and
which is not yet included in the invoices. Accordingly, the Owner must pay
to the Contractor the cost of the equipment already delivered to the
Contractor or that it is legally required to accept under the contracts
entered into with its suppliers and manufacturers, which shall become the
property of the Owner if they had not already become
so.
|
|
(iii)
|
Pay
all duly authenticated damages that are sustained by the Contractor as a
consequence of the contractual breach or early termination, including
direct demobilization costs.
|
|
(iv)
|
Return
to the Contractor the Bonds received from the
Contractor.
|
(4)
|
Upon
the Owner’s compliance with the conditions set forth in the above
subsection, the Contractor shall abandon the Site within a period of
thirty (30) days and the Owner may complete the Work by itself or with
another contractor, the Owner being entitled to request the Contractor to
assign each and every contract signed by the Contractor and its
subcontractors (except contracts entered into for the supply of
solar modules, supports and trackers or for the supply of technology and
software, which the Owner may not assume). The Contractor is obligated to
cooperate in good faith with the Owner to effect such
assignments.
|
14.3
|
Termination
due to Force
Majeure
|
|
In
the event of termination of the Contract due to an event of Force Majeure, the
provisions of subsections 14.2 (3) (i), (ii) and (iv) above shall
apply.
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
15.1
|
Assignment
|
(1)
|
The
Contractor may not assign or transfer to third parties, in whole or in
part, the economic, commercial or financial rights or credits arising
under this Contract, or engage in any other transaction involving any type
of disposition, encumbrance, commitment and/or transaction, in whole or in
part, regarding such rights and credits, unless it has obtained the prior
written approval of the Owner and the Financial Institutions. An
assignment to other companies within the Contractor’s group that have the
same technical capacity to perform the contractual obligations and that
satisfy the requirements of the Direct Agreement is
permitted***.
|
(2)
|
The
Owner may only assign all or a portion of the rights and obligations
arising under this Contract in favor of the Financial Institutions in
accordance with Clause 17, or to any other third party with the prior
written approval of the
Contractor.
|
15.2
|
Subcontracting
|
(1)
|
The
Contractor may subcontract the Work, provided the following conditions are
met:
|
|
(i)
|
All
the subcontracts executed (except the contracts entered into for the
supply and manufacture of solar modules, supports and trackers or for the
supply of technology and software, which Owner may not assume) and all
guarantees obtained from any of the suppliers or Subcontractors may be
assigned at the request of the Owner in the event of termination of this
Contract. For such purpose, the Contractor irrevocably undertakes to
assign to the Owner and the Financial Institutions the rights arising from
all the guarantees and subcontracts obtained from Authorized
Subcontractors upon the expiration of the Guarantee Period or in the event
of termination of the Contract.
|
|
(ii)
|
The
guarantees or subcontracts executed by the Contractor with Subcontractors
or suppliers shall be consistent with the terms and provisions of this
Contract.
|
|
(iii)
|
The
Contractor shall deliver to the Owner, within a reasonable period after
the request thereof, a copy without prices or other commercial terms, of
all the contracts, agreements and guarantees signed with the
Subcontractors (containing the waiver referred to in subsection (3)
below)
|
(2)
|
In
no event shall a contractual relationship be implied among the
Subcontractors and the Owner. The Contractor shall remain liable for all
of the activities of its Subcontractors and suppliers and for all
contractual and labor obligations arising from the performance of their
work; as well as for the actions, failures and negligence of any of its
subcontractors or suppliers and the agents and employees thereof, under
the same terms and conditions as if committed or performed by the
Contractor itself, its agents or
employees.
|
(3)
|
The
Owner shall not be liable vis-à-vis any Subcontractor or supplier, or
vis-à-vis their employees, for any claims arising directly or indirectly
from the Contract. For such purpose, the Contractor undertakes to procure
an express and written waiver of the rights conferred by Article 1597 of
the Civil Code from each
Subcontractor.
|
16.
|
LIABILITY
AND DAMAGES
|
(1)
|
The
Parties shall have the obligation to provide indemnification for those
damages caused to the other Party as a consequence of the breach of this
Contract. The Owner’s approval of the projects, calculations, drawings or
other technical documents prepared by the Contractor, or the conduct of
inspections or Tests do not release the Contractor from such liability,
and do not imply that such liability must be shared by the
Owner.
|
|
Further,
the recommendations made by the Owner or its representatives during the
performance of the Contract or on occasion of inspections or Tests shall
not give rise to an exemption, mitigation or excuse for the Contractor’s
performance under this Contract, except to the extent such recommendations
or observations were implemented despite the Contractor’s
objection.
|
(2)
|
The
Contractor shall be liable vis-à-vis the Owner for any loss or physical
damage to the equipment, materials or assets owned by the Owner or third
parties that is caused by the Contractor through the execution of the
relevant Solar Facility Provisional Acceptance Certificate, and thereafter
only when the Contractor is within the Site performing the Work, repairs
or similar activities and causes the relevant
damage.
|
(3)
|
By
application of Article 1596 of the Civil Code, it is expressly agreed that
the Contractor shall also be liable for damages caused by the persons or
entities employed by the Contractor in the performance of the Work,
whether as employees, technicians, subcontractors or otherwise, from whom
the same diligence owed by the Contractor shall be
required.
|
(4)
|
The
Parties expressly agree that in no event will a Party be liable for the
so-called consequential or indirect damages, including loss of profits and
loss of output, loss of use or loss of any contract or other damages that
are considered to be indirect, except for cases involving willful
misconduct or gross negligence, and without prejudice to the Contractor's
obligation to pay the penalties agreed upon under this
Contract.
|
(5)
|
The
Parties agree that any indemnity received by one of the Parties as
beneficiary of any of the insurance taken out by them in connection with
the Solar Park will be deducted from the respective claim for damages or,
if such indemnity holds the Party in question harmless from the damages
sustained, it shall bar such Party from claiming damages and require it to
refund the excess, if any. The Party causing the damages shall
bear all deductibles, liability limits and any other deductions affecting
the indemnities payable to the damaged Party by the insurance companies
providing the insurance in accordance with the provisions
hereof.
|
(6)
|
The
maximum total liability of the Contractor hereunder shall not exceed, in
the aggregate, an amount equal to *** (***%) percent of the Contract
Price. The foregoing shall not affect to the Contractor’s obligation to
make payments under Clause 14.1 in the event of the termination or partial
termination of the Contract.
|
17.
|
OWNER
FINANCING
|
|
(i)
|
the
possibility that the Owner’s rights under this Contract may be fully or
partially pledged or assigned as security, in one or successive instances,
to the Financial Institutions.
|
|
(ii)
|
the
possibility that “direct agreements” that provide the Financial
Institutions with “step-in” rights will be executed in the form agreed to
prior to the execution of this Contract and which are attached hereto as
Annex
9;
|
|
(ii)
|
the
possibility that the right to receive indemnification to which the Owner
may be entitled and which arise under the insurance policies purchased in
accordance with the terms of this Contract may be pledged or assigned as
security to the Financial Institutions (and the essential nature of
subscribing the insurance policies upon the terms of the report issued by
the Insurance Advisor in accordance with Clause
11);.
|
|
(iii)
|
that
the Financial Institutions and their advisors (including the Technical
Advisor and the Insurance Advisor and any others) have the right to access
the Site in order to inspect the performance of the work contemplated
under this Contract, upon the terms contemplated in Clause
6.2;
|
|
(iv)
|
the
Technical Advisor’s right to observe all Capacity and Production Tests and
the obligation to obtain its prior approval for the issuance of the Solar
Park Provisional Acceptance Certificate, each Solar Facility Provisional
Acceptance Certificate, the Final Acceptance Certificate and other actions
for which the approval of the Technical Advisor is required in accordance
with the form of Direct Agreement attached hereto as Annex
9;
|
|
(v)
|
the
requirement to obtain the prior approval of the Financial Institutions for
any change to the terms of this Contract upon the terms contemplated
herein;
|
|
(vi)
|
the
Contractor’s obligation to pay any amounts owed to the Owner under this
Contract to the account, if any, indicated in writing by the Financial
Institutions;
|
18.
|
CONFIDENTIALITY
|
(1)
|
The
Parties agree that this Contract and the Annexes hereto, and any written
or electronic information or documentation that any of the Parties
furnishes to the other for the performance of this Contract (including,
without limitation, technical documentation, plans, information,
procedures, patents and licenses) are confidential. Therefore, the Parties
undertake to keep the information confidential and to refrain from
disclosing, providing to third parties or using such information unless
such documentation and information (i) is known by the public without any
breach of this confidentiality commitment, (ii) has been legally obtained
from a third party, (iii) is requested by a judicial or governmental
authority, or (iv) the delivery of such documentation and information is
made in compliance with any legal obligations enforced upon the disclosing
Party.
|
(2)
|
The
Parties agree that the above shall not apply to any disclosure of
information made by any of the Parties to other entities of their Group
(within the meaning of Article 4 of Securities Market Law 24/1988 of July
28), regulatory, tax or governmental authorities, and their respective
advisors and auditors, internal or external, in relation to the
information requested by them for the development of the investigations,
assessments and works carried out by them, provided that, in each and
every one of such cases, the parties receiving the confidential
information have assumed commitments of confidentiality vis-à-vis the
disclosing party on terms similar to this one. In this case, such
entities, authorities, advisors or auditors shall have free access to the
books, files, documents and information held by the requested Party, and
prior authorization is therefore not required from the other Parties to
furnish information to such entities, authorities, advisors and/or
auditors regarding this Contract and the Annexes hereto and any other
information or written documentation relating
hereto.
|
(3)
|
In
particular, the Owner is authorized to transmit information regarding this
Contract to the Owner and the Financial Institutions and to those
investors with interests in the construction and commercial operation of
the Solar Park who reasonably request information with respect to this
Contract, provided that they have assumed vis-à-vis the provider of such
information confidentiality undertakings upon terms substantially similar
hereto. Further, the Owner hereby authorizes the Contractor to
provide such information to the Financial
Institutions;
|
(4)
|
The
confidentiality commitment must be observed until the passage of two (2)
years from the date of execution of the Final Acceptance Certificate or
any termination of the Contract, regardless of the cause
thereof.
|
19.
|
NOTICES
|
(1)
|
All
notices and communications between the Parties for the purposes of this
Contract shall be made in writing, by certified mail, fax or courier
service, to the following
addresses:
|
(2)
|
The
Parties may change the above addresses by written notice to each other
given in the form and to the addresses mentioned
above.
|
(3)
|
Notices
shall be deemed received on the third (3rd) Business Day following the
dispatch thereof when sent by courier service (unless there is evidence of
earlier receipt) or the Business Day following the date on which there is
evidence of the receipt thereof in the case of faxes and certified
mail.
|
20
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation, to which the Contractor and the
Owner expressly submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje (CIMA)) of Madrid in accordance with the Procedural
Regulations thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by the Contractor and the other by
the Owner, and the two arbitrators so appointed shall appoint the third
one, who shall act as chairman of the arbitral tribunal. Should the two
first arbitrators fail to reach an agreement on the appointment of the
third arbitrator within ten (10) Business Days following the date of
acceptance of office by the second arbitrator, such arbitrator shall be
appointed by CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
ALMURADIEL
SOLAR, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
Part
|
Units
per MW
|
Total
quantity
|
Mechanical
part
|
||
Drive
bellows boot
|
0.4
|
4
|
Ground
braids, torque tube to pier
|
6
|
50
|
Module
mounting assemblies
|
6
|
50
|
MC
connectors
|
6
|
50
|
Actuator
(endless screw)
|
0.0.4
|
2
|
Low
voltage
|
||
Solar
panels
|
10
|
100
|
Orientation
motor
|
0.4
|
4
|
GPS
+ PLC + clinometer
|
0.4
|
4
|
SunPower
controller (no housing)
|
0.4
|
4
|
Inverter
|
0.2
|
2
|
Communications
card for the inverter
|
0.4
|
4
|
Fuse
set for the inverter
|
0.4
|
4
|
Set
of overvoltage protective devices for the inverter
|
0.4
|
4
|
DC
fuses
|
6
|
50
|
Set
of overvoltage protective devices for the junction box
|
0.4
|
4
|
Junction
box
|
0.4
|
4
|
Fan
unit
|
0.4
|
4
|
Set
of sensors for the weather station
|
0.4
|
2
|
Communications
|
||
MOXA
cards
|
0.4
|
2
|
Routers,
switches, hubs, etc.
|
0.4
|
2
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt/)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
1.1
|
Cells
|
1.1.1
|
Encapsulated
cells:
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
MANUFACTURAS
ELÉCTRICAS
|
(www.me-sa.es)
|
SIEMENS
|
(www.siemens.es)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.1.2
|
SF6-insulated
cells and switchgear in metal
housings
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.2
|
Power
transformers
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
IMEFY
|
(www.imefy.com)
|
ALKARGO
|
(www.iberapa.es)
|
ABB TRAFO
|
(www.abb.com)
|
SIEMENS
|
(www.siemens.es)
|
INCOESA
|
(www.incoesa.com)
|
OASA
|
(www.oasanet.com)
|
CONSTRUCCIONES
ELÉCTRICAS JARA
|
(www.trafojara.com)
|
LAYBOX
|
(www.laybox.com)
|
1.3
|
Prefabricated
housings
|
POSTES
NERVIÓN
|
(www.postesnervion.es/)
|
PREPHOR
|
(www.prephor.com)
|
INAEL
|
(www.inael.com)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
AREVA T&D
|
(www.areva-td.com)
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
CONTECSA
|
(www.contecsa-spain.com)
|
CABELTE
|
(www.cabelte.pt)
|
MIGUELEZ
|
(www.miguelez.com)
|
1.1
|
Rectifiers
– battery chargers
|
ZIGOR
|
(www.zigor.com)
|
SAFT
POWER SYSTEMS IBERICA S.L.
|
(www.spsi.es)
|
EMISA
- EXIDE
|
(www.exide.com)
|
ENERTRON
|
(www.enertron.net)
|
1.2
|
Protective cabinets and A.S. auxiliary services control |
PROYECTOS
MECA
|
(www.proymeca.com)
|
CYMI
|
(www.cymi.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
CUADRELEC
|
(www.cuadrelec.com)
|
PMC
Ingeniería
|
1.3
|
Exterior
cabinets
|
PINAZO
|
(www.pinazo.com)
|
ELDON
|
(www.eldon.es)
|
HIMEL
|
(www.himel.com)
|
RITTAL
|
(www.rittal.es)
|
1.1
|
Indirect
and direct protective devices for MV
cells
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
SIEMENS
|
(www.siemens.es)
|
GENERAL
ELECTRIC
|
(www.GEIndustrial.com)
|
TEAM
ARTECHE
|
(www.teamarteche.es)
|
ZIV
|
(www.ziv.com)
|
1.2
|
Direct
LV protective devices
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
MOELLER
|
(www.moeller.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
GOULD
|
(www.gould.com)
|
1.3
|
Metal-oxide
lightning rods
|
TYCO
ELECTRONICS RAYCHEM GMBH
|
(www.energy.tycoelectronics.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
INAEL
|
(www.inael.es)
|
ABB
|
(www.abb.es)
|
CELSA
|
(www.celsa.com)
|
1.1
|
PLCs
programmable logic controllers
|
SCHNEIDER
ELECTRIC
|
(www.schneider-electric.com)
|
BECKHOFF
|
(www.beckhoff.es)
|
ROCKWELL
AUTOMATION
|
(www.rockwellautomation.com)
|
GENERAL
ELECTRIC FANUC
|
(www.gefanuc.com)
|
1.2
|
Industrial communications |
HIRSCHMANN
|
(www.hirschmann.com)
|
MOXA
|
(www.moxa.com)
|
1.3
|
SCADA
system control and data acquisition
platforms
|
WONDERWARE
|
(www.wonderware.com)
|
GENERAL
ELECTRIC
|
(www.gefanuc.com)
|
1.4
|
Optical
fiber
|
NEXANS
|
(www.nexans.com)
|
CORNING
|
(www.corning.com)
|
OPTRAL
|
WWW.OPTRAL.COM
|
(A)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L.U. (the “Contractor”)
|
(B)
|
ALMURADIEL SOLAR,
S.L. (the “Owner”).
|
(C)
|
CAJA CASTILLA LA MANCHA
(the “Agent”).
|
I.
|
The
Owner and the Contractor have executed on even date
herewith:
|
|
(i)
|
a
“turn-key” construction contract (the “Construction Contract”)
for the construction and start-up of a solar park in Almuradiel (Ciudad
Real), composed of twenty five (25) solar facilities with a unit capacity
at the panels between 115 y 122 kWp y 100 kW at the inverter (the “Solar
Park”);
|
|
(ii)
|
a
maintenance agreement (the “Maintenance Agreement”)
for the performance by Contractor of the maintenance Work relating to the
Solar Park.
|
II.
|
In
order to finance, among other things, the payments that are the
responsibility of the Owner under the Construction Contract, the Owner has
entered into the following contracts, on even date herewith, registered as
public instruments before the Madrid Notary Mr. [l];
|
|
(i)
|
a
credit agreement in the maximum amount of [l] euros
(hereinafter, the “Credit
Agreement” or the “Loan”) with the Agent
and [l].
|
|
(ii)
|
an
interest rate hedge agreement (CMOF) and its corresponding Schedule with
[l], to cover
interest rate fluctuation risks relating to the Loan (hereinafter, the
master agreement and its Schedule together with the confirmations to be
executed in connection therewith, the “Interest Rate Hedge
Agreement”).
|
III.
|
To
guarantee the Owner’s obligations under the Credit Agreement and the
Interest Rate Hedge Agreement (hereinafter, collectively, the “Guaranteed Contracts”)
the Owner has granted on even date herewith (among others) a pledge
agreement, registered as a public instrument with the Madrid Notary Mr.
[l], pursuant
to which the rights under the Construction Contract and the Maintenance
Agreement (among others) were pledged to the Financial Institutions (the
“Pledge”).
|
IV.
|
In
consideration of the premises, and as a fundamental condition to the
execution of the Guaranteed Contracts by the Financial Institutions, the
Parties have agreed to execute this Contract whereby the Contractor
assumes certain obligations to the Financial Institutions with respect to
the Construction Contract, the Maintenance Agreement and the Guaranteed
Contracts, as follows.
|
1.
|
DEFINED
TERMS
|
2.
|
PLEDGE
|
(1)
|
The
Contractor hereby pledges all rights to receive payment from the Owner
under the Construction Contract and the Maintenance
Agreement.
|
(2)
|
As
a consequence of the foregoing, except in the event of receipt of a
written notice from Agent that the Pledge has been cancelled, the
Contractor agrees:
|
|
(i)
|
not
to convey or create any type of pledge, charge, lien or other security
right over the Contractor’s rights to receive payments under the
Construction Contract or the Maintenance Agreement, without the express
prior written approval of the
Agent;
|
|
(ii)
|
not
to honor any notice or instruction from the Owner that contravenes or
modifies the terms of the Pledge or of this
Contract;
|
|
(iii)
|
to
immediately notify the Agent of any breach by the Owner of its obligations
under the Construction Contract or the Maintenance
Agreement;
|
|
(iv)
|
to
pay any amounts payable by the Contractor to the Owner under the
Construction Contract or the Maintenance Agreement to the Owner’s account
no. [l] (the
“Principal
Account”), or to such other separate account as the Agent and the
Owner may jointly specify in writing. The Contractor acknowledges and
agrees that a payment made to any other current account or made in any
other manner shall not be considered a full discharge for the
Contractor;
|
|
(v)
|
upon
receipt of written notice from the Agent declaring the enforcement of the
Pledge, to deposit or transfer all funds relating to the payment rights
under the Construction Contract and/or the Maintenance Agreement in favor
of the Agent to the account designated by the Agent in
writing.
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
(1)
|
The
Contractor agrees to provide notice to the Financial Institutions (through
the Agent) of the occurrence of any event of early termination of the
Construction Contract and/or the Maintenance Agreement, or of its own
intention to terminate either of such Contracts, by sending to the Agent a
copy of any notice sent to the Owner (which shall include, at a minimum,
the proposed date of termination of the Construction Contract and/or the
Maintenance Agreement –subject to the terms of subsection (2) below- and
the Contractor’s stated basis for such
termination).
|
(2)
|
The
Contractor acknowledges agrees that it may not, under any circumstances,
terminate the Construction Contract or the
Maintenance Agreement without first giving notice to the Agent
as provided for in the above subsection, and that, during the period from
the Agent’s receipt of such notice until fifteen (15) calendar days from
the date on which the Agent received such notice, the Agent may (but is
not so obligated), with the prior approval of the Financial Institutions
in accordance with the agreed majority voting percentages agreed to among
the Financial Institutions, take such measures as are necessary or
advisable to cure or eliminate such event of early termination under the
Construction Contract and/or the Maintenance
Agreement.
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL ADVISOR
|
|
(i)
|
it
may not agree to any change to the Construction Contract or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clauses 2.4(4), 5.1(3) and 6.5(3) of the Construction
Contract without receiving the prior approval of the Financial
Institutions (the foregoing is without prejudice to the Contractor’s
rights under such Clauses);
|
|
(ii)
|
except
with respect to the assumed consent contemplated by Clause 4.3 of the
Construction Contract, the approval of the Technical Advisor must be
obtained in order for the Owner to approve a Payment Milestone
contemplated by such Clause;
|
|
(iii)
|
the
Technical Advisor must be present to observe the performance of the
Performance Tests, the Overall Test, the Production Tests and the
inspections required for execution of the Solar Facilities Provisional
Acceptance Certificates, the Solar Park Provisional Acceptance
Certificate, and the Final Acceptance Certificate, in accordance with the
notice periods set forth in Clauses 5.2 (1), 8.4(2) and 9(1) of the
Construction Contract. The periods provided for in such Clauses may not
begin to run if the Technical Advisor has not been invited to observe
within the notice periods provided in such Clauses. Results of
tests and inspections referred to in this subsection that were obtained
prior to the expiration of such periods and without the presence of the
Technical Advisor shall be invalid. However, the Technical Advisor’s
failure to attend despite having been duly invited in the manner and
within the notice periods provided for in this subsection shall not delay
the periods provided for in the Construction Contract for such tests and
inspections, nor shall it invalidate the results of the
same;
|
|
(iv)
|
except
as provided for in Clause 5.2(4) of the Construction Contract, the
execution of the Solar Facilities Provisional Acceptance Certificates, the
Solar Park Provisional Acceptance Certificate, and the Final Acceptance
Certificate must be accompanied by the approval of the Technical
Advisor;
|
|
(v)
|
the
Technical Advisor shall have the power the inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 6.2 of the Construction
Contract;
|
|
(vi)
|
the
Technical Advisor must approve quality controls for the solar modules and
has the authority to inspect such quality controls in order to confirm its
approval; and
|
|
(vii)
|
an
order to suspend the Work by the Owner pursuant to Clause 13.1 of the
Construction Contract shall not be valid unless it has been countersigned
by the Agent on behalf of the Financial
Institutions.
|
|
(i)
|
it
may not agree to any change to the Maintenance Agreement or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clause 2.4 of the Maintenance Agreement without first
receiving the prior approval of the Financial Institutions (the foregoing
is without prejudice to the Contractor’s rights under such Clause
2.4);
|
|
(ii)
|
the
Technical Advisor must receive the data and registrations at least fifteen
(15) calendar days in advance to make the availability calculations
referred to in Clause 7 of the Maintenance
Agreement;
|
|
(iii)
|
the
Technical Advisor shall have the authority to inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 4(ii) of the Maintenance
Agreement.
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT
|
6.
|
ASSIGNMENTS
|
|
This
Contract is delivered for the benefit of the Financial Institutions, and
therefore inures to the benefit of their successors or assigns permitted
under the Guaranteed Contracts. Therefore, in the event of an assignment,
in whole or in part, of the interest of a Financial Institution under the
Guaranteed Contracts, or the replacement of the Agent under the terms of
the Credit Agreement, all references made in this public document to the
Financial Institutions and the Agent shall be understood to include
reference to their respective successors or assigns. An assignee must
present its position to the Contractor and the Owner, upon request, by
delivery of a copy of the document through which such assignment or
replacement of the Agent is made. However, the Agent must inform the
Contractor of its replacement with sufficient advance notice to permit the
Contractor to comply with its obligations under the Construction Contract,
the Maintenance Agreement and this
Agreement.
|
7.
|
NOTICES
|
(1)
|
Except
as otherwise expressly provided for, all notices and communications
between the Parties for the purposes of this Agreement shall be made in
writing, by certified mail, telegram with confirmed receipt, or for urgent
matters, by fax with a confirmation letter to be sent within the following
five (5) calendar days.
|
(2)
|
All
notices, requirements or other communications to the Financial
Institutions must be delivered to the Agent (notice to the Financial
Institutions shall be considered effective upon receipt by the
Agent).
|
(3)
|
The
Parties designate the following addresses for notice, communications and
routine matters:
|
|
The
Agent:
|
|
The
Owner:
|
(4)
|
Any
changes to the above addresses must be communicated to the other Parties
by certified mail, and shall only take effect as of the date that the
other Party receives such notice.
|
8.
|
LAW
AND JURISDICTION
|
9.
|
TERM
|
10.
|
TAXES
AND EXPENSES
|
ALMURADIEL
SOLAR, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
||
CAJA
CASTILLA LA MANCHA
|
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
1.
|
DEFINITIONS
|
4
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
9
|
2.1
|
Purpose
of the Contract
|
9
|
2.2
|
Scope
of Work
|
10
|
2.3
|
Exclusions
|
11
|
2.4
|
Changes
in the Scope
|
11
|
3.
|
COMMENCEMENT
OF WORK
|
12
|
4.
|
PRICE
AND FORM OF PAYMENT
|
14
|
4.1
|
Contract
Price
|
14
|
4.2
|
Payment
Milestones
|
16
|
4.3
|
Invoicing
System and Form of Payment
|
17
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL ACCEPTANCE
|
18
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
18
|
5.2
|
Performance
Tests and Provisional Acceptance
|
19
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
21
|
6.1
|
Prevention
of Occupational Risks
|
21
|
6.2
|
Obligation
to Provide Access to the Site
|
22
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
22
|
6.5
|
Regulatory
Compliance
|
23
|
6.6
|
Permits
and Authorizations
|
23
|
6.7
|
Training
of the Owner’s Personnel
|
25
|
6.8
|
Designation
of Project Director
|
25
|
6.9
|
Taxes
and Import Duties
|
25
|
6.10
|
Intellectual
and Industrial Property Rights
|
25
|
6.11
|
Cooperation
|
26
|
7.
|
OBLIGATIONS
OF THE OWNER
|
26
|
8.
|
GUARANTEES
|
27
|
8.1
|
Solar
Module Degradation Guarantee
|
27
|
8.2
|
Solar
Module Capacity Guarantee
|
27
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
28
|
8.4
|
Solar
Park Production Guarantee.
|
31
|
8.5
|
Bonds
|
33
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
33
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF RISK
|
34
|
11.
|
INSURANCE
|
34
|
12.
|
FORCE
MAJEURE
|
35
|
13.
|
SUSPENSION
OF THE WORK
|
37
|
13.1
|
Suspension
by the Owner
|
37
|
13.2
|
Suspension
by the Contractor
|
39
|
13.3
|
Suspension
by Judicial or Governmental Authority
|
39
|
14.
|
TERMINATION
|
39
|
14.1
|
Termination
for Causes Attributable to the Contractor
|
40
|
14.2
|
Termination
by the Contractor
|
44
|
14.3
|
Termination
due to Force
Majeure
|
46
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
46
|
15.1
|
Assignment
|
46
|
15.2
|
Subcontracting
|
46
|
16.
|
LIABILITY
AND DAMAGES
|
47
|
17.
|
OWNER
FINANCING
|
48
|
18.
|
CONFIDENTIALITY
|
49
|
19.
|
NOTICES
|
50
|
20
|
LAW
AND JURISDICTION
|
51
|
(A)
|
MORALAS RENOVABLES, S.L.
(hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number B-79136636 herein represented
by Mr. Juan Carlos Sirviente Rodrigo, with identity card number 50708230S
pursuant to the powers conferred upon him pursuant to a resolution of the
board of directors of the company passed on the date
hereof.
|
(B)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid at calle Pradillo nº 5, herein represented by
Mr. Marco Antonio Northland, bearing U.S. Passport No. 047605878, in his
capacity as attorney-in-fact of such entity pursuant to a public
instrument executed before Mr. Ignacio Martínez Gil-Vich, a Madrid notary,
on November 28, 2006, and recorded in his notarial protocol under No.
4.551.
|
(1)
|
The
Owner is interested in promoting the installation and operation of a solar
park in Manzanares (Ciudad Real), consisting of fifty (50) Solar
Facilities having between 115 and 122 kWp of peak power and 100 kWe at the
inverter.
|
(2)
|
The
Contractor is dedicated to the construction and start-up of facilities of
this type, and intends and has the capacity to construct the Solar Park in
accordance with the specifications of this
Contract.
|
(3)
|
The
Owner will partially finance the payment of the Contract Price through
financing to be made available to the Owner by one or more credit
providers (the “Financial
Institutions”).
|
(4)
|
***
|
(5)
|
Now,
therefore, the Parties mutually acknowledging the legal capacity required
to enter into contract and bind themselves, agree to execute this
"turnkey" construction contract (hereinafter, the “Contract”) in accordance
with the following:
|
1.
|
DEFINITIONS
|
-
|
Final Start-Up Certificate or
Final Start-Up: means the governmental certificate referred to in
Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, with
respect to each of the Solar Facilities and the Electrical Infrastructure,
which allows for the commencement of the commercial operation thereof,
including, for the purposes of this Contract, obtaining the final
registration of each of such Solar Facilities and Electrical
Infrastructures with the Register of Power Facilities included within the
Special Regime (Registro
Administrativo de Instalaciones de Producción de Energía en Régimen
Especial), pursuant to the provisions of Section 12 of Royal Decree
661, which grants to the corresponding facilities the status of a
production facility accepted under the special regime, in accordance with
the terms of this contract.
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Direct Agreement: the
agreement executed among the Contractor, the Owner and the agent for the
institutions providing financing to the Owner, for purposes of, among
other things, making the payments contemplated in this Contract, pursuant
to the provisions of Clause 17.
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-
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Scope of Work: the
entirety of all services, supplies and work that the Contractor must
provide under this Contract in accordance with the provisions of Clause
2.2 and the specific details contained in Annex
2.
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-
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Insurance Advisor: means
Willis or any other insurance advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
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|
Legal Advisor: means
Gómez-Acebo & Pombo, S.L. Ramón & Cajal Attorneys or any other
legal advisor that the Financial Institutions may designate in the context
of the financing of the Solar Park
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-
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Technical Advisor: means
Sylcom Solar or any other technical advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
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-
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Performance Bond: means
the bond payable on demand to be delivered by the Contractor in accordance
with the provisions of Clause 8.5 to guarantee the performance of its
contractual obligations and which shall be effective as from delivery
thereof to the Owner in accordance with the provisions of this contract
until the execution of the Solar Park Provisional Acceptance
Certificate.
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|
-
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Guarantee Bond: means
each of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations during the Guarantee Period, which shall be
effective as from the execution of the Solar Park Provisional Acceptance
Certificate through the execution of the Final Acceptance
Certificate.
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-
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Final Acceptance Certificate
(FAC): means the certificate that shall be executed by the Parties
at the end of the Guarantee Period to attest to the final acceptance of
the Solar Park by the Owner.
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|
-
|
Solar Park Provisional
Acceptance Certificate (Park PAC): means the certificate that shall
be executed by the Parties concurrently with the execution of the
Provisional Acceptance Certificate for the last Solar Facility forming a
part of the Solar Park, to evidence the proper operation of the Solar Park
as a result of the Overall Test of all Solar Facilities and the Electrical
Infrastructure, as well as the Contractor’s compliance with the
obligations set forth in this Contract, without prejudice to the
provisions established for the Guarantee
Period.
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-
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Solar Facility Provisional
Acceptance Certificate (Facility PAC): means the certificate that
shall be executed by the Parties to evidence the proper operation of the
equipment as a result of the Performance Tests for each of the Solar
Facilities (including the Electrical Infrastructure associated with each
Solar Facility) and the Contractor’s compliance with the obligations set
forth in this Contract, without prejudice to the provisions established
for the Guarantee Period. In order to issue
a Provisional Acceptance Certificate for a Solar Facility,
proper operation of the General Electrical Infrastructure in order to meet
the installed capacity of the Solar Facilities in operation at such time
must also be verified.
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Contractor: means
SUNPOWER ENERGY SYSTEMS SPAIN, S.L. and any other
company that may succeed it in its obligations in accordance with the
provisions of this Contract.
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-
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Contract: means this
contract together with the Annexes hereto. In the event of conflict
between the body of this Contract and one or more of the Annexes, the body
of this Contract shall prevail.
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-
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Maintenance Agreement:
means the Maintenance Agreement entered into by the Contractor and
the Owner on even date herewith, providing for the assumption by the
Contractor of the maintenance work for the Solar Park upon execution of
the Solar Park Provisional Acceptance
Certificate.
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Systemic Defect: is an
operational failure of the Solar Facilities of the Solar Park occurring
during the Production Guarantee Period that (i) is not caused by
non-conforming performance of the Work by the Contractor under this
Contract, the Technical Specifications, the Construction Model or the
regulations applicable to the Work (in accordance with the terms of this
Contract), and (ii) that
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§
|
is
the same failure or is a failure that affects, at least: 0.5% of the solar
modules, 5 or more inverters or their corresponding peripheral systems, 5
or more trackers, or 2 or more transformers (including breakers and
switches) supplied by the same manufacturer for the Solar Park;
or
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|
§
|
the
relevant supplier or well-known independent third party in the solar
industry reports that at least 1% of worldwide production of the
corresponding model of solar module, inverter, tracker or transformer is
affected by the same operational failure and advises replacement thereof
(in which event the Owner must receive proof in the form of delivery of a
document signed by the manufacturer or of a report from an
independent third party which confirms the existence of said systemic
failure with reference to the model and series of the affected
equipment).
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Business Day: means any
day other than a bank holiday in Madrid and Albacete, with the express
provision that Saturday is not a Business
Day.
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-
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Financial Institutions:
has the meaning set forth in the Recital
(3).
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Site: means parcel 53,
polygon 10, in the municipality of Manzanares (Ciudad Real), as identified
in Annex 13.
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Authorized Equipment:
means the list of brands and models of the principal equipment or elements
that will make up the Solar Facilities and the Electrical Infrastructures
described in Annex
8 hereto.
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|
-
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Technical Specifications:
means the technical conditions for executing the Work that were
prepared by the Contractor and delivered to the Owner, and that make up
Annex
2.
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|
-
|
Delivery Deadline: means
July 15, 2008.
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-
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***
|
-
|
***
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-
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Payment Milestones:
means the milestones for the payment of the Contract Price, as described
in Clause 4.2 below.
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-
|
Specific Electrical
Infrastructure: means the entirety of
the electrical elements permitting the evacuation to the distribution grid
of the electrical power produced by each of the Solar Facilities,
including from the Solar Facilities to the specific transformer center for
such Solar Facility.
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General Electrical
Infrastructure: means the entirety of
the electrical elements permitting the connection of each of the Solar
Facilities, from the specific transformer center, in order to permit the
evacuation of electrical power generated by each Solar Facility to the
distribution grid, including the Evacuation Line, the distribution and
sectioning center (centro de reparto y
seccionamiento) and supplemental elements of supervision,
monitoring and data collection.
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-
|
Electrical
Infrastructure: collectively, the General Electrical
Infrastructures and the Specific Electrical
Infrastructures.
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-
|
Solar Facility: means
the entirety of the electromechanical elements that allow for the
generation of low voltage (“LV”) electrical power, including from the
solar modules themselves, solar trackers, and inverters, to the LV meter,
with a peak unit capacity of between 115 and 122
kWp.
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-
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Evacuation Line: the
15kV output electrical evacuation line of the distribution center of the
General Electrical Infrastructure, necessary to connect such
Infrastructures to the substation of the power distribution company (Unión
fenosa) of Herrera de la Mancha, excluding works to be carried out inside
the substation.
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Change Order: means a
document signed by the Contractor and the Owner pursuant to which a change
is agreed upon in the Scope of Work, the Contract Price or the Execution
Schedule, or any other modification, as provided in this
Contract.
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-
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Solar Park: means the
entirety of the fifty (50) Solar Facilities having between 115 and 122 kWp
of peak capacity and 100 kWe at the inverter, that must reach a total peak
capacity of 5.925 MWp, located at the Site, including the Electrical
Infrastructure and any other facilities that, in accordance with the terms
of this Contract, may be necessary for its
Start-Up.
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-
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Guarantee Period: means
the period between the signing of the Provisional Acceptance Certificate
for the first Solar Facility until the date *** (***) years following the
execution of the Solar Park Provisional Acceptance
Certificate.
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-
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Production Guarantee Period:
means the period between Start-up of the Solar Park until the date
*** following the execution of the Solar Park Provisional Acceptance
Certificate.
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-
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Contract Price: The
price payable by the Owner to the Contractor for the performance of the
obligations contained in this Contract, the amount of which is set forth
in Clause 4 of the Contract. For purposes of this Contract, the
price corresponding to an individual Solar Facility shall be the amount
obtained by dividing the total Contract Price by the fifty (50) Solar
Facilities.
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Implementation Schedule:
means the schedule for the implementation of the Scope of Work,
which is attached as Annex
3 to this Contract.
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Owner: means
MORALAS RENOVABLES, S.L., as well as any
company subrogating to its contractual position in accordance with the
provisions of this Contract.
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Overall Test: means the
test described in Annex
4, to be performed as a prerequisite to the execution of the Solar
Park Provisional Acceptance Certificate to verify the proper operation of
all Solar Facilities and the Electrical Infrastructure. The Overall Test
will definitively verify the proper operation of the General Electrical
Infrastructure to absorb the power discharged by all Solar
Facilities.
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-
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Performance Tests: means
the tests described in Annex
4, to be performed as a prerequisite to the execution of each Solar
Facility Provisional Acceptance Certificate to verify the proper operation
of the corresponding Solar Facility and Electrical Infrastructures.
Pursuant to the provisions of Clause 5.2(1), each Performance Test will be
performed on a minimum of ten (10) Solar Facilities (with their
corresponding Electrical
Infrastructures).
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-
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Production Tests: means
the tests that will be performed at the end of the Production Guarantee
Period in order to determine compliance with the Production Guarantee set
forth in Clause 8.4, following the protocols set forth in Annex
4.
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Start-up: means, with
reference to a particular Solar Facility and/or Electrical Infrastructure,
the point when all of the work required by this Contract has been
completed and all Performance Tests have been passed in accordance with
this Contract and the Annexes hereto, the Provisional Acceptance
Certificate has been executed and the Owner has received the corresponding
Final Start-up Certificate (as confirmed by the Legal Advisor). Reference
to Start-up of a Solar Park shall be understood to mean the point when all
Solar Facilities and corresponding Electrical Infrastructures have passed
the Overall Tests and comply with the above referenced
requirements.
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-
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RD 661: Royal Decree No.
661/2007, of May 25, which regulates activities involving the production
of power under special regime.
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|
-
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Subcontractors: means
the subcontractors with which the Contractor subcontracts all or part of
the works to be executed under this
Contract.
|
-
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Work: means the work and
supplies to be provided by the Contractor pursuant to the provisions of
this Contract.
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
2.1
|
Purpose
of the Contract
|
The
purpose of this Contract is the construction, start-up and delivery of the
Solar Park to the Owner pursuant to the terms set forth in this Contract
such that, upon issuance of the Final Start-up Certificate, the production
of power and sale thereof to the electric distribution grid may commence,
in accordance with applicable law and the Technical
Specifications.
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2.2
|
Scope
of Work
|
(1)
|
According
to the terms and conditions of this Contract, the Contractor shall carry
out and shall be responsible for all of the equipment, services, supplies
and work comprising the Scope of Work. The Scope of Work includes each of
the following concepts, as well as all acts that, even if not expressly
mentioned in this Contract or in Annex
2, are necessary for the proper operation, performance and
commercial exploitation of the Solar Park, in each case in accordance with
the customary usage and practices in the industry for a project having
these characteristics, this Contract, the Technical Specifications, and
applicable law (without prejudice to the provisions of Clause
2.4(4)):
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§
|
Design,
engineering (basic and detailed) and required technical
schedules.
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|
§
|
Execution
of all aspects of the Scope of Work and the supply of all materials,
elements and equipment set forth in Annex
2, and the supply of all materials necessary and appropriate to
properly carry out the Scope of
Work.
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|
§
|
Performance
of inspections, inventory of materials, performance controls, tests and
other analyses required under applicable law and in accordance with the
technical specifications and this
contract.
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|
§
|
Transportation
to the Site of all materials, equipment, utilities, spare parts,
consumables and machinery for which the Contractor is responsible under
the Contract.
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|
§
|
Direct
and indirect labor necessary to carry out the Scope of Work and all costs
and social charges associated with such
labor.
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|
§
|
Demolition
and dismantling of the provisional facilities not required by the Owner
and conditioning and cleaning of the Site following issuance of the Solar
Park Provisional Acceptance
Certificate.
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|
§
|
Maintenance,
protection, security, custody and conservation of the equipment installed
or stored at the Site up to the signing of the Solar Park Provisional
Acceptance Certificate.
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|
§
|
Preparation
and delivery to the Owner of all documentation within the scope of this
Contract, sufficiently in advance for the utilization thereof by the
Owner. In particular, the delivery of the documentation and manuals set
forth in Annex
2.
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|
§
|
***
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|
§
|
Training
of the Owner’s personnel in the operation and maintenance of the materials
and equipment acquired in accordance with the terms of Clause 6.7 of this
Contract.
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|
§
|
Construction
of all necessary auxiliary facilities, their maintenance, cleaning and
security during the performance of the Work, including that performed in
compliance with the regulations for the Prevention of Occupational Risks
and the Social Security and Health Plan (Prevención de Riesgos
Laborales y el Plan de Seguridad y Salud); as well as the
demolition or dismantling of any temporary facilities not required by the
Owner and the conditioning and clearing of the Site following the issuance
of the Solar Park Provisional Acceptance
Certificate.
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|
§
|
Supply
of spare parts pursuant to the provisions of Clause
6.3.
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|
§
|
Provision
of material and human resources required to comply with the regulations
for the Prevention of Occupational Risks and the Social Security and
Health Plan, as well as the creation of the Social Security and Health
Plan.
|
2.3
|
Exclusions
|
2.4
|
Changes
in the Scope
|
(1)
|
Under
no circumstances may the Parties make any changes to the Scope of Work
contemplated by this Contract (of any kind, whether for expansions,
reductions or changes to any portion of the work and/or the items supplied
under this Contract), unless a Change Order has previously been
signed.
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(2)
|
At
any time prior to Provisional Acceptance, the Owner may propose a change
to the Scope of Work by sending the Contractor a notice describing the
nature and scope of the change. Upon receipt of such notice, the
Contractor must send to the Owner, within a maximum period of ten (10)
Business Days, a communication that includes a complete proposal for the
changes in the Contract Price, deadlines and form of payment, or any other
changes that may be necessary in connection with the changes proposed by
the Owner. This communication shall also include a reasoned explanation of
the grounds and/or criteria used for the calculation of the new Contract
Price and/or deadline. However, the Contractor recognizes that in
accordance with the Direct Agreement, the approval of the Financial
Institutions is an essential requirement for the validity of the
changes.
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(3)
|
Without
prejudice to the terms of the Direct Agreement, the Contractor may, at any
time during the performance of the Contract, propose changes to the Scope
of Work that it deems necessary or appropriate to improve the quality,
efficiency or safety of the Solar Park or the facilities or supplies that
make up the Solar Park. The Owner, at its discretion, may approve or
reject the changes proposed by the Contractor. The Parties will
execute a Change Order in the event that the modifications are approved by
the Owner.
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(4)
|
In
addition, upon the entry into force, promulgation, derogation or change of
any mandatory legal provision after the execution of this Contract that
affects the Work, the Parties shall sign a document governing the changes
that must be made to the purpose of this
Contract.
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(5)
|
The
Owner and the Contractor shall negotiate in good faith the effects on the
deadlines agreed to under this Contract that might occur as a result of
the changes requested within the context of the provisions of this Clause.
In any event, the prices applicable to any change in the Scope of Work
shall consist of the costs of the additional work or supplies arising
therefrom (reasonably justified to the Owner) plus ***% as the
Contractor’s margin.
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3.
|
COMMENCEMENT
OF WORK
|
(1)
|
The
Parties agree that the payment by Owner of the amount set forth in Clause
4.2(i) and the delivery by the Contractor of the Performance Bond and the
Corporate Guarantee are subject only to the delivery by the Owner to the
Contractor of a letter signed by the Financial Institutions in the form of
Annex
12 confirming the availability of the financing. The payment by the
Owner of the amount in accordance with Clause 4.2(i) and the delivery of
the Performance Bond and the Corporate Guarantee by the Contractor must be
made concurrently on a date between the sixth (6th)
and ninth (9th)
Business Day following the date the Owner notifies the Contractor that the
agreed conditions are satisfied. The date the Owner pays the amount
pursuant to Clause 4.2(i) to the Contractor and the Contractor delivers
the Performance Bond and the Corporate Guarantee shall be hereinafter
referred to as the “Condition Satisfaction
Date.”
|
(2)
|
By
executing this Contract, the Owner hereby represents to the Contractor as
follows:
|
|
(i)
|
It
has obtained all authorizations and licenses necessary for the
commencement of construction for the Solar Park, except those that are
intrinsic to the construction itself and that are the responsibility of
the Contractor in accordance with the terms of Clause 6.6 (having
delivered to the Contractor a copy of those that are the responsibility of
the Owner). For purposes of clarification, the Owner has obtained the
municipal licenses for the work and related activities (to the extent
necessary), as well as the administrative authorization, the approval of
the Electrical Infrastructures Plan and the interconnection point of the
Solar Facilities and has delivered to the Contractor a confirmation issued
by the Council for the Environmental and Rural Development (Consejería de Medio Ambiente y
Desarrollo Rural) of Castilla La Mancha that an Environmental
Impact Statement is not required with respect to any of the Solar
Facilities of the Solar Park; and
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|
(ii)
|
The
Site is fully accessible and available for the commencement of
Work.
|
(3)
|
In
the event that (a)
the letter relating the financing described in subsection (1) has not been
delivered by November 23, 2007, or (b) the Condition
Satisfaction Date has not occurred by the tenth Business Day following the
date the Owner delivered such letter to the Contractor, the Contractor and
the Owner may terminate the Contract by delivery to the other Party of a
notice setting forth its desire to terminate the Contract, and the Parties
shall be released from all obligations assumed with respect
thereto. The foregoing shall be without prejudice to the
purchase orders or requests that the Parties, or companies belonging to
their groups, shall have already made or agreed to, as of or following the
execution of this Contract. Such purchase orders or requests shall
continue in force and effect in accordance with their terms unless the
Owner elects to cancel them, in which case the Owner shall pay the
Contractor any cancellation costs that the Contractor or any company in
its group must pay to any distributor or manufacturer with respect to such
orders.
|
|
However,
the Contractor may not terminate the Contract if the Owner has confirmed
its intention and ability to make the payment described in Clause 4.2(i)
and the Condition Satisfaction Date has not have occurred due to the
Contractor’s failure to deliver the Performance Bond and the Corporate
Guarantee.
|
(4)
|
Subject
to paragraph three of this section, the Contractor represents that, prior
to the execution of this Contract, it has studied the subterrain,
surroundings and access thereto.
|
|
Representations
contained in the previous paragraphs regarding the adequation of the Site
for the performance of the Work shall be subject to the Contractor
receiving the definitive geotechnical report on the Site in the five (5)
days following signature of this Contract. Upon receipt of such report by
the Contractor, the Parties shall sign a document declaring the Site
adequate or, if applicable, agreeing the necessary amendments to the Scope
of Work and/or the Contract Price on the basis of contingencies arisen
from the report. As from the signature of such document, representations
contained in this section shall be fully valid and binding for the
Contractor. Notwithstanding the above, the Contractor accepts that, in
case the geotechnical report concludes that the Site conditions are
equivalent to those of the report for the site where is going to be built
a solar park according to an agreement signed on the date hereof between
the Contractor and Naturener Solar Tinajeros, S.L., the Site will be
deemed adequate, the Contractor not being entitled to claim any amendment
to the Scope of Work and/or Contract
Price.
|
4.
|
PRICE
AND FORM OF PAYMENT
|
4.1
|
Contract
Price
|
(1)
|
The
Contract Price payable by the Owner to the Contractor in consideration for
the works to be performed by Contractor under this Contract shall be ***
Euros. This amount shall be increased by an amount corresponding to Value
Added Tax (VAT) pursuant to applicable law at any given time. The
Contractor hereby acknowledges and agrees that the Contract Price is a
lump-sum, fixed, and final price, and is not subject to any change or
revision whatsoever on the basis of any changes in the prices of labor,
materials, equipment, exchange rates or any other similar items, including
a change in any taxes levied on the scope of the
work.
|
(2)
|
The
Contract Price includes all the costs and expenses associated with the
Contractor’s performance of work under the Contract, including those
specifically set forth in the Scope of Work. The Contract Price shall be
deemed to include, by way of
example:
|
|
§
|
taxes,
fees, industrial- and intellectual-property royalties on the equipment
supplied, Social Security and other encumbrances upon the supplied
equipment and materials in their country of origin or destination,
including, if applicable, the rights of free circulation in the European
Union and any other tax with respect to the importation of the Equipment
and the performance of the Work, except for the VAT on the actual Contract
Price. For purposes of clarification, the Price does not include
legalization fees or costs for permits and authorizations, which are the
responsibility of the Owner.
|
|
§
|
payroll
costs and the cost of equipment required for the Contractor’s performance
of the Work or to ensure the protection, security and proper performance
thereof.
|
|
§
|
the
cost of any insurance that must be taken out by the Contractor pursuant to
Clause 11.
|
(3)
|
In
the event of changes in the Scope of Work agreed to pursuant to the
provisions of this Contract, the price agreed to in the corresponding
Change Order shall apply.
|
(4)
|
Without
prejudice to the foregoing, in consideration for the maintenance and
security tasks to be performed by the Contractor prior to the execution of
the Solar Park Provisional Acceptance Certificate, the Owner shall pay to
the Contractor (in addition to the Contract Price), the portion of the
price contemplated in the Maintenance Agreement that is equivalent to the
percentage representing the Solar Facilities that have obtained a
Provisional Acceptance Certificate with respect to all Solar Facilities
contemplated by this Contract.
|
4.2
|
Payment
Milestones
|
|
The
Contract Price shall be paid by the Owner to the Contractor pursuant to
the payment schedule set forth below (each of the milestones set forth
below shall be deemed a “Payment
Milestone”):
|
|
(i)
|
On
the Condition Satisfaction Date, an amount equal to ***% percent of the
Contract Price, i.e., *** euros, upon delivery of the Performance Bond by
the Contractor.
|
|
(ii)
|
Based
on the monthly progress of the civil works involving earth moving,
leveling and foundation laying, measured as 100 kWe Solar Facilities whose
foundations are completed, the Owner will pay up to a maximum of ***
percent (***%) of the Contract Price, i.e., *** euros, upon presentation
of the respective invoices by the
Contractor.
|
|
(iii)
|
Upon
each delivery to the Site of the module supports, inverters and trackers
of each Solar Facility and presentation of the corresponding invoices not
earlier than two (2) months prior to the dates indicated in the
Implementation Schedule, the Owner shall pay up to a maximum of *** (***%)
percent of the Contract Price corresponding to such Solar
Facilities.
|
|
(iv)
|
Upon
each delivery of the solar modules of each Solar Facility to the Site and
upon presentation of the corresponding invoices not earlier than the dates
indicated in the Implementation Schedule, the Owner shall pay up to a
maximum of *** (***%) percent of the Contract Price corresponding to such
Solar Facilities.
|
|
(v)
|
Based
on the monthly progress of the mechanical assembly of the module supports,
solar trackers and the modules mounted thereon, as well as the
installation of the inverters and the transformer center, measured as
Solar Facilities of 100 kWe whose facilities up to the transformer center
have been completed, the Owner will pay up to a maximum of *** (***%)
percent of the Contract Price, upon presentation of the respective
invoices.
|
|
(vi)
|
Upon
the execution of each Provisional Acceptance Certificate for a Facility,
the Owner shall pay *** (***%) percent of the Contract Price corresponding
to such Solar Facility (together with the remaining portion of the
Contract Price, if any, that was not previously paid and that corresponds
to Work completed by the Contractor under this Contract in respect of such
Solar Facility). The last Solar Facility payment shall be made
concurrently with the execution of the Solar Park Provisional Acceptance
Certificate.
|
4.3
|
Invoicing
System and Form of Payment
|
(1)
|
Once
the Contractor deems that a Payment Milestone has been achieved, the
Contractor shall give written notice thereof to the Owner and the
Technical Advisor, attaching thereto the invoice and any documentation
that may be necessary to demonstrate achievement of the corresponding
Payment Milestone (including, for this purpose, all of the documentation
that must be furnished by the Contractor to the Owner at any time,
pursuant to the provisions of Annex
2).
|
(2)
|
Within
fifteen (15) Business Days following receipt of the above-mentioned
notice, the Owner and the Technical Advisor shall confirm the achievement
of the corresponding Payment Milestone. Within such period, the Owner and
the Technical Advisor shall communicate in writing to the Contractor:
(i) their
agreement that the corresponding Payment Milestone has been achieved, in
which case the Owner and the Technical Advisor shall provide documentary
confirmation by approving the corresponding invoice, or (ii) that the Payment
Milestone has not been fully achieved, in which case the Owner and/or the
Technical Advisor must specify in writing to the Contractor a
detailed and reasoned explanation of the work pending performance in order
for the Payment Milestone to be deemed to have been
achieved. In the event that the Owner and/or the Technical
Advisor fail to respond to the Contractor within the above-mentioned
period of fifteen (15) Business Days, due solely to the failure of the
Contractor to provide all documentation required to verify achievement of
the Payment Milestone, the Owner and the Technical Advisor agree to
request the same within the above period of fifteen (15) Business Days.
The Owner and the Technical Advisor will be allotted another ten (10)
Business Days to issue their response, counting from the date of receipt
of all requested documentation.
|
(3)
|
If
the Owner and/or the Technical Advisor do not agree that a Payment
Milestone has been achieved, the Owner shall be entitled to return the
corresponding invoice until the Contractor has completed the work in
accordance with the provisions of this Contract. However, if the Parties
agree that the disagreement involves only part of the work included in the
Payment Milestone, the Owner shall pay the invoice amounts corresponding
to the work not affected by the dispute, with the rest remaining subject
to full performance and delivery by the Contractor in accordance with the
terms of this Contract.
|
(4)
|
If,
following the period referred to in subsection (2) above, the Owner and/or
the Technical Advisor have not responded, the Contractor may send a demand
notice to the Owner and the Technical Advisor communicating such fact and
allowing an additional period of five (5) Business Days for confirmation
of their agreement or disagreement as to the achievement of the respective
Payment Milestone. If, upon expiration of such period, the Owner and/or
the Technical Advisor still have not responded, achievement of the Payment
Milestone shall be deemed accepted by the Owner and the Technical
Advisor.
|
(5)
|
Under
no circumstances shall the Owner’s or the Technical Advisor’s agreement to
a Payment Milestone imply acceptance of the Work associated therewith,
which acceptance shall in any event remain conditioned upon passing the
Performance Tests and executing the respective Provisional Acceptance
Certificate and, ultimately, the Final Acceptance
Certificate.
|
(6)
|
Payments
shall be made by the Owner to the Contractor via bank transfer to the bank
account designated by the Contractor within *** Business Days following
the date on which the Owner accepted the corresponding Payment Milestone
(or on the date on which the Payment Milestone was deemed accepted by the
Owner, in accordance with subsection (4) above). On an exceptional basis,
the payment corresponding to the first Payment Milestone shall be paid by
the Owner on the Condition Satisfaction Date (with respect to such
payment, approval of a Payment Milestone by the Contractor and the Owner
pursuant to the above provisions is not required)
.
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL
ACCEPTANCE
|
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
(1)
|
The
Contractor hereby undertakes to perform the Work in accordance with the
Implementation Schedule attached hereto as Annex
3, such that the Solar Park shall have all technical attributes
required for issuance of the Final Acceptance Certificate (and the same
has been requested in accordance with Clause 2.4) no later than the
Delivery Deadline.
|
(2)
|
The
dates for performance specified in the Implementation Schedule and, in
particular, the Delivery Deadline, are fixed and final, and may not be
postponed, and the performance deadlines may not be extended, except under
the following circumstances:
|
|
(i)
|
due
to agreed-upon changes in accordance with the provisions of Clause 2.4,
provided that such changes include an extension of the
deadlines;
|
|
(ii)
|
due
to a breach by the Owner giving rise to a delay in the Work (including,
specifically, delays in procuring authorizations and licenses for which it
is responsible), provided that such breaches are not attributable to
actions, omissions or breaches by the
Contractor;
|
|
(iii)
|
suspension
of the Work in accordance with the provisions of Clause 13, except in the
event of suspensions attributable to the Contractor;
or
|
|
(iv)
|
the
occurrence of an event of Force Majeure that
reasonably justifies an extension of the deadlines established in the
Implementation Schedule.
|
(3)
|
The
Contractor must inform the Owner of the alleged facts or causes, in
writing and within a maximum period of ten (10) Business Days after the
Contractor becomes aware thereof, and the communication must be
accompanied by all available information and data on such date that
substantiate such facts and the consequences thereof on the Work, the
extension (if such extension can be determined) proposed by the
Contractor, and a detailed explanation of the measures adopted to mitigate
the consequences thereof.
|
|
5.2
|
Performance
Tests and Provisional Acceptance
|
(1)
|
Upon
completion of the construction of a group of at least ten (10) Solar
Facilities, or of the Solar Park, the Contractor shall notify the Owner so
that, within a maximum period of seven (7) Business Days, the Performance
Tests or the Overall Test may be commenced . All Tests shall be conducted
in accordance with the Test procedures and protocols attached hereto as
Annex
4. The Contractor agrees that the Performance Tests and
the procedures set forth in this Clause shall begin only when at least ten
(10) Solar Facilities are ready for provisional
acceptance.
|
(2)
|
Once
the Owner and the Technical Advisor have verified that the Performance
Tests (or, if applicable, the Overall Test) have been passed in accordance
with the standards set forth in this Contract and that the Owner has
received all documentation set forth in the Scope of Work, the Contractor
and the Owner shall execute the corresponding Provisional Acceptance
Certificate for the Solar Facilities delivered or the Provisional
Acceptance Certificate for the Solar Park, as applicable, provided that
the following conditions have been
met:
|
|
a)
|
The
Work corresponding to the applicable Solar Facilities, or, if applicable,
the Solar Park, has been satisfactorily
completed.
|
|
b)
|
All
of the documentation that the Contractor must submit in accordance with
the provisions of Annex
2 has been submitted to the
Owner;
|
|
c)
|
The
spare parts specified in Clause 6.3 have been made available to the
Owner;
|
|
d)
|
With
respect to the Solar Park Provisional Acceptance Certificate, the
Contractor has delivered to the Owner the Guarantee Bond in the amount
specified in Clause 8.5; and
|
(3)
|
The
deadlines granted to the Contractor for completion of pending punch list
items upon execution of a Provisional Acceptance Certificate shall not be
considered an extension of the deadlines set forth in this Contract, and
the Contractor shall indemnify the Owner for any damages that the Owner
may incur as a result thereof pursuant to Clause 5.2(a)
above.
|
(4)
|
In
the event that the Owner does not execute the Provisional Acceptance
Certificates for the respective Solar Facilities (or, if
applicable, the Solar Park) within seven (7) Business Days of verifying
compliance with the stipulated requirements, the Contractor may request in
writing that the Owner execute the respective Certificate within an
additional period of five (5) Business Days. If the Owner has not executed
the new Provisional Acceptance Certificates for the Solar
Facilities (or, if applicable, the Solar Park) within said
period, the conditions required in this clause for execution of the
corresponding Certificate have been satisfied, it shall be understood that
provisional acceptance has been achieved, except to the extent
discrepancies exist as to the performance of the conditions required by
the same, in which event the Parties shall submit the matter to
arbitration in accordance with the provisions of Clause 20
(2).
|
(5)
|
Within
thirty (30) days following the execution of the Solar Park Provisional
Acceptance Certificate, the Contractor must: (i) remove from the Site any
material used in the construction, as well as any equipment, machinery,
tools, vehicles and temporary structures that are not necessary during the
Guarantee Period; (ii) clean the Site and remove any debris or waste; and
(iii) deliver the “As Built” Plans for the Solar
Park.
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
|
6.1
|
Prevention
of Occupational Risks
|
(1)
|
The
Contractor shall be obligated, in compliance with current legislation, to
perform the works under this Contract in such a way as to ensure the
safety of workers, and to apply the preventive activity principles set
forth in Law 31/1995 and its implementing
regulations. Accordingly, the Contractor shall be responsible
for designing the construction process in accordance with the provisions
of Royal Decree No. 1627/1997, which establish minimum safety and
health provisions for construction work, and in its the other implementing
or supplemental regulations, such that the safety of the activities that
are performed simultaneously or consecutively is ensured, and the safety
of third parties present in the vicinity of the work site is also
ensured.
|
(2)
|
In
particular, as part of the scope of this Contract, the Owner has prepared
a Safety and Health Study, and furthermore, in compliance with the
provisions of Royal Decree No. 1627/1997, the Contractor must prepare
a Workplace Safety and Health Plan, both specifically for the work
provided for within the scope of this Contract. The Contractor hereby
represents that they contain, or will contain, all requirements of such
Royal Decree and its implementing rules and regulations (including the
provisions of the autonomous communities that apply, if
any).
|
(3)
|
Furthermore,
the Owner (at the request of the Contractor) shall appoint a safety and
health coordinator, who shall have the obligations set forth in Royal
Decree 1627/1997, and who shall be responsible for ensuring that all of
personnel of the Contractor, the Subcontractors and of the suppliers of
equipment or materials under this Contract comply with the safety
requirements established in current legislation. Both the Owner and the
Contractor shall be obligated to respect and comply with their respective
obligations, as imposed by Royal Decree 1627/1997 and other applicable
rules and regulations.
|
(4)
|
The
Owner reserves the right to evaluate security during the construction
period. This does not imply that Owner has assumed
responsibility with respect to security measures taken or the preparation
of documentation or the content of such documentation referred to in this
Clause, without prejudice to the obligations and responsibilities under
law that attach as a result of Owner’s capacity as a developer. To this
effect, the Contractor shall provide to the Owner all documentation that
Owner may reasonably require in order to confirm the performance of the
obligations set forth in this
Clause.
|
(5)
|
For
clarification purposes, in no event shall the Contract Price be increased
if, as a result of a security check, legal review or technical risk
review, the Contractor is required to take additional measures designed to
guarantee compliance with applicable rules and regulations for the
prevention of occupational risks.
|
|
6.2
|
Obligation
to Provide Access to the Site
|
6.4
|
Quality
Control
|
|
The
Contractor must perform a quality control inspection of the modules, using
standards for acceptance and rejection and testing and measurement
protocols that are acceptable to the Technical Advisor. For
these purposes, the Contractor must inform the Technical Advisor of the
quality control inspections that it is going to use in the performance of
this Agreement, and detail the respective acceptance and rejection
standards and testing and measurement protocols, such that the Technical
Advisor can approve the same prior to the date on which such modules are
expected to be received under this
Contract.
|
|
6.5
|
Regulatory
Compliance
|
(1)
|
The
Contractor undertakes to observe and comply with the regulations
applicable to the performance of the Work, subject to the provisions of
subsection (3) below. In particular, the Contractor must ensure
compliance with regulations regarding classified activities, safety,
health, and environmental protection. In particular, the
Contractor shall be the only responsible party for compliance with
applicable law and regulations with respect to (i) ***, and (ii)
environmental protection during the period of manufacture, construction,
erection and Tests until the Solar Park Provisional Acceptance Certificate
has been executed.
|
(2)
|
The
Contractor represents that it is current in the payment of wages and
Social Security contributions for the professionals hired by the
Contractor to perform the services covered by this Contract. Accordingly,
the Contractor agrees to show to the Owner all documents that the Owner
may reasonably request evidencing compliance with wage, tax and Social
Security obligations (including, without limitation, certificates of good
standing and compliance with tax obligations and the TC1 and TC2 Social
Security dues bulletins).
|
(3)
|
In
the event of any change in the applicable rules and regulations after the
date on which this Contract is signed, the Parties shall proceed in
accordance with the provisions of Clause 2.4(4) above. In the event that
either Party does not sign the applicable change document, the Contractor
shall continue to perform the work in compliance with the rules and
regulations previously in force, and shall not assume any responsibility
for any breach of the applicable new rules and
regulations.
|
|
6.6
|
Permits
and Authorizations
|
|
(1)
|
***. Further,
both parties agree to follow the joint application procedure provided for
in the last paragraph of subsection 1 of Section 12 of RD 661 and
subsection 1 of Section 11 of Decree 299/2003, of November 4, of
Castilla-La Mancha, such that the applications for the certificate
relating to start-up and the definitive registration of the Solar
Facilities and the Electrical Infrastructure shall be made jointly. The
Parties recognize that making such joint application is an essential
element for both Parties. Such application shall be submitted
by the Contractor before the Delivery Deadline, although in such
submission (a) it
shall be the responsibility of the Contractor to provide all information
and documentation necessary to apply for the start-up certificate referred
to in Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1,
and (b) it shall
be the responsibility of the Owner to provide all information and
documentation necessary to apply for the definitive registration of the
Solar Facilities and the Electrical Infrastructure with the Administrative
Register of Solar Facilities Producing Power included within the Special
Regimen, in accordance with the terms of Section 12 of RD 661. Once
presented, the handling of the applications for the start-up certificate
and the definitive registration of the Solar Facilities and the Electrical
Infrastructure shall be the responsibility of the Owner, without prejudice
to the Contractor’s obligation to cooperate with the Owner in all respects
in accordance with the terms of Clause
6.11.
|
(2)
|
For
clarification purposes:
|
|
(i)
|
if,
due to causes attributable to the Contractor, the application for the
Final Start-up Certificate is not presented in accordance with subsection
(1) above with respect to one or more Solar Facilities or to the Solar
Park on or before the Delivery Deadline,
and/or
|
|
(ii)
|
prior
to September 29, 2008, the Owner has not have obtained the Final Start-up
Certificate as a result of design defects, defective or inadequate
equipment or performance of the Work or of defects, imprecision or
omissions in the documentation or in the technical information delivered
by the Contractor,
|
6.7
|
Training
of the Owner’s Personnel
|
6.8
|
Designation
of Project Director
|
|
(1)
|
The
Contractor shall name a Project Director with an officially recognized
technical degree and relevant industry experience with similar
projects. The appointment of the Project Director must be
submitted to the Owner for approval. The Owner may not reject a proposed
candidate without just cause.
|
|
(2)
|
The
Project Director shall be responsible for overseeing proper performance of
the Work and for directing, managing, and supervising all of the
activities necessary for the implementation of the services agreed to by
the Contractor in accordance with the terms and time periods specified in
this Contract. Further, the Project Director shall be the
principle contact between the Contractor and the Owner during the term of
this Contract.
|
|
(3)
|
Without
prejudice to the foregoing subsection, in accordance with the terms of
this Contract and applicable law, the Contractor shall be responsible for
the actions of the Project Director and any and all consequences arising
from such actions.
|
6.10
|
Intellectual
and Industrial Property Rights
|
6.11
|
Cooperation
|
7.
|
OBLIGATIONS
OF THE OWNER
|
|
(i)
|
To
comply with its payment obligations under this
Contract;
|
|
(ii)
|
To
provide to the Contractor, its Subcontractors and employees, during the
effective term of this Contract, access to the Site to fulfill their
contractual obligations, including appropriate access to highways and
access roads to perform the Work. For these effects, the Owner will
execute, at its cost and expense, agreements with landowners that procure
all necessary easements or land use
rights;
|
|
(iii)
|
Subject
and without prejudice to the obligations of the Contractor under Clauses
6.6 and 2.2 of his Contract, the Owner shall negotiate and obtain, at its
own cost and expense, the permits required for Final Start-Up and
operation of the Solar Park, including the Final Start-up Certificate.
Specifically, with respect to the joint application procedure referred to
in Clause 6.6 of this Contract, the Owner agrees to provide all
documentation and information required to apply for the definitive
registration of the Solar Facilities and the Electrical Infrastructure
with the Administrative Register of Solar Facilities Producing Power
within the Special Regime, in accordance with the terms of Section 12 of
RD 661, upon the terms of such Clause
6.6;
|
|
(iv)
|
To
cooperate with the Contractor, to the extent necessary, in order to avoid
any impact on the Implementation Schedule or in the performance of the
works by the Contractor;
|
|
(v)
|
To
appoint a project coordinator to act on behalf of the Owner in the
performance of matters associated with the Contract and who must possess
sufficient powers to represent the
Owner;
|
|
(vi)
|
The
Owner undertakes to provide to the Contractor all of the cooperation that
the latter may reasonably request in connection with the implementation of
the Work and compliance with the Contractor’s obligations under this
Contract. The Owner shall submit to the Contractor all
documentation or information that the Contractor may reasonably request in
connection with the Solar Park and that is available to the
Owner.
|
8.
|
GUARANTEES
|
8.1
|
Solar
Module Degradation Guarantee
|
|
The
Contractor guarantees the durability of the solar modules during the
Guarantee Period, in accordance with the schedule of guarantees made by
the manufacturer of the modules set forth on Annex
6 of this Contract. Upon expiration of the Guarantee
Period, the Contractor undertakes to assign to the Owner its rights under
the module supplier guarantees through the remainder of the 25-year useful
life of the modules.
|
8.2
|
Solar
Module Capacity Guarantee
|
(1)
|
The
Contractor guarantees that the total peak capacity of the Solar Park is
equal to or higher than the contracted capacity of 5.925 kWp (which will
be confirmed by the manufacturer’s photoflash certificates). In addition,
all certificates for each module shall be within the rated peak capacity
margin of ***% and all aggregate certificates for each of the Solar
Facilities shall be within the rated peak capacity margin of ***%
(although the Solar Park can only have a margin with respect to the above
referenced peak capacity of ***%, in which case the Contract Price shall
be reduced proportionately in accordance with the final reduced peak
capacity and the corresponding amount of the final Payment Milestone
contemplated in Clause 4.2 reduced
accordingly).
|
(2)
|
In
the event that (i) the total sum of the certificates is less than the
contracted 5.925 kWp (unless it is within the permitted margin for the
Solar Park pursuant to subsection (1) above), or (ii) the certificates do
not comply with the above referenced margins, the Contractor shall
replace, at its expense, solar modules as needed to increase the total
peak capacity of the Solar Park to the minimum permitted under subsection
(1) above, or those modules whose individual capacity is inferior to the
aforementioned tolerance.
|
(3)
|
If,
as of the date set forth in Clause 14.1(1)(i), the sum of the
manufacturer’s photoflash certificates demonstrate the peak capacity of
the Solar Park is less than the referenced total peak capacity (unless it
is within the permitted margin for the Solar Park set forth in subsection
(1) above), the Owner may terminate the Contract for Contractor breach in
accordance with the terms of Clause 14.1, and pay the indemnity set forth
in such Clause.
|
(4)
|
The
Owner reserves the right to perform capacity tests on the solar module
samples that have been provided at the CIEMAT, CENER or IFE-Frauhofer
laboratories, in accordance with the applicable IEC (International
Electrotechnical Commission) standard in order to confirm their compliance
with the capacity specified by the manufacturer and guaranteed by the
Contractor. The results thereof shall be binding on the Parties. In the
event that such results confirm that the capacity of the modules does not
fall within the tolerance guaranteed by the Contractor, the Contractor
shall bear the costs of such tests and shall immediately replace the
entire batch of modules corresponding to the tested samples, except to the
extent that the modules failing the capacity test can be identified, in
which case, only those modules shall be
replaced.
|
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
8.3.1
|
Design, Assembly and
Performance Guarantee
|
|
(1)
|
The
Contractor guarantees during the Guarantee Period that the procedures
followed for the design of the facilities and for the performance of the
work are of the required quality and conform to the specifications
contained in this Contract.
|
(2)
|
The
Contractor is obliged to repair or, if necessary in its opinion, to supply
totally new, and reinstall free of charge to the Owner, those parts or
components of the facilities included in the Scope of Work that fail
during the Guarantee Period due to design, assembly or performance
defects.
|
(3)
|
The
provisions of subsections 8.3(2) to (8) below with respect to the
Materials Quality Guarantee shall apply, mutatis mutandis, to
the guarantee provided under this
subsection.
|
8.3.2
|
Materials Quality
Guarantee
|
(1)
|
The
Contractor guarantees that all the materials and components used in the
manufacture, assembly and Start-up of the Solar Park are of the required
quality and conform to the specifications for the equipment and the
technical documents contained in the Annexes to this
Contract. The Contractor further guarantees a minimum stock of
spare parts to the Owner in accordance with the terms of Clause 6.3 and
Annex
5 of this Contract.
|
(2)
|
The
materials quality guarantee will enter into force on the date of issuance
of the relevant Solar Park Provisional Acceptance Certificate and shall
remain in force until the Solar Park Final Acceptance Certificate is
signed. If the Solar Park or a portion thereof, cannot be commercially
operated during the Guarantee Period for reasons attributable to the
Contractor, the Guarantee Period shall be extended (only as regards the
affected facilities) for a period equal to the period during which the
corresponding facilities are not operating. For this purpose,
the parties shall record in writing the periods during which operation is
suspended and the corresponding extensions of the
guarantee.
|
(3)
|
During
the Guarantee Period, the Contractor is required, in its
discretion:
|
a)
|
To
replace any material and equipment that do not comply with what was agreed
upon or required pursuant to this Contract, or that are inadequate or of a
deficient quality; and
|
b)
|
To
adjust, repair or replace any equipment exhibiting any design, materials,
manufacturing, operation, or performance defect. If a Systemic Defect
exists with respect to any equipment or components supplied under this
Contract, the Contractor shall carry out, at its expense, the redesign
and/or modifications necessary to cure such problem in accordance with the
Owner’s requirements.
|
(4)
|
The
adjustments, repairs or replacements must be performed within the shortest
period that is reasonably possible (and, in any event, no later than
fifteen (15) days from the time the defect is detected), in a manner that
is least prejudicial to the Owner and taking all action needed to cause
the least possible harm to the operation of the overall facilities of the
Solar Park.
|
(5)
|
Repairs,
adjustments, alterations, replacements or maintenance that may be
necessary because of the normal wear and tear of on the facilities
provided under this Contract or caused by misuse or negligent use of the
equipment by the Owner or by third parties (other than the Contractor or
its Subcontractors) or because of the use of the equipment supplied to
Owner in a manner that does not conform to the technical specifications,
are all excluded from the scope of the guarantee. For
clarification purposes, it shall be understood that the Owner (or third
parties acting on its behalf) has used equipment in the intended manner
when such use conforms to the operation and maintenance manuals delivered
to the Owner by the Contractor pursuant to this Contract. This
guarantee may not be enforced in the event of the inaccessibility of the
Site, provided that the Contractor has notified the Owner of the existence
of such inaccessibility, or, in the events of Force Majeure (for such
time as exist the circumstances preventing the provision
thereof).
|
(6)
|
The
obligations arising from the guarantee set forth in this section shall be
fulfilled by the Contractor at its sole cost and expense and free of any
charges or expenditures by the Owner, and the Contractor shall bear the
expenses arising as a result thereof for the Owner, such as demolition and
disassembly, construction, carting, insurance and packaging for returned
materials and their replacement, assembly and supervision, taxes and the
like.
|
(7)
|
All
repaired or replaced material shall carry a new guarantee period of the
following duration from the date of repair or
replacement:
|
|
(i)
|
if
repaired, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is longer;
and
|
|
(ii)
|
if
replaced, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is
longer.
|
(8)
|
The
Contractor guarantees the availability of spare parts for the modules,
inverters and solar trackers during the Guarantee Period and during the
entire useful life of each Solar Facility, in the latter case provided the
Maintenance Agreement remains in force. The Contractor shall provide such
guarantee on the following terms:
|
|
(i)
|
With
respect to the module, inverter or solar tracker spare parts that are
manufactured by the Contractor or by companies of its group (currently
headed by Sunpower Corporation), the Contractor shall ensure that such
spare parts continue to be manufactured or, in the event that the
Contractor or the companies of its group do not manufacture spare parts
identical to those already installed, that spare parts for modules,
inverters or solar trackers of similar characteristics (and, in the case
of modules, of equal or greater capacity) are available, provided they do
not entail a reduction in the guaranteed performance of the Solar
Park.
|
|
(ii)
|
With
respect to the module, inverter or solar tracker spare parts that are not
manufactured by the Contractor or by companies of its group, the
Contractor shall use reasonable efforts to (a) cause the respective
suppliers to continue to manufacture such spare parts or other spare parts
with similar characteristics (and, in the case of modules, of equal or
greater capacity), provided they do not entail a reduction of the
guaranteed performance of the Solar Park, or (b) obtain such spare parts
with similar characteristics from other vendors with technical
capabilities that are at least similar to the original
ones. Should the Contractor become aware that an original
vendor intends to stop manufacturing such spare parts, it shall so notify
the Owner so that the Owner may order, through the Contractor, the spare
parts it deems appropriate, provided they are available on the
market.
|
8.4
|
Solar
Park Production Guarantee.
|
(1)
|
The
Contractor guarantees to the Owner that the aggregate electric output of
the Solar Park during each of the *** periods included in the Production
Guarantee Period shall reach the PR guaranteed pursuant to Annex
10 (the “Guaranteed PR”), for
each determined irradiance and temperature condition, and that in no event
shall it fall beneath the PR minimum set forth in such Annex (the “Minimum
PR”).
|
(2)
|
A
Production Test shall be performed at the end of each *** period dividing
the Production Guarantee Period in order to confirm the electrical
output. For these purposes, within the forty-five (45) days
prior to the termination of the *** period following the commencement date
of the Production Guarantee Period, and within the forty-five (45) days
prior to the termination of the Production Guarantee Period, the
Contractor shall notify the Owner of such circumstance so that the Parties
may agree upon a date the perform the Production Tests for the
corresponding *** period (which, in no event may be later than the date
which is fifteen (15) Business Days following the date of termination of
the period which is *** following the commencement date of the Production
Guarantee Period or the termination date of the Production Guarantee
Period, as applicable). The following shall apply to the results of the
Production Tests for the Solar
Park:
|
|
(a)
|
If
the actual measured output of the Solar Park is less than the Guaranteed
PR for the corresponding *** period (as such term is defined in Annex
10) but is greater than the Minimum PR for such period, the
Contractor shall pay to the Owner the penalties set forth in Annex
10, up to a maximum of ***% of the Contract Price.
|
|
(b)
|
If
the actual measured output of the Solar Park is less than
the Minimum PR for the corresponding *** period, the
Owner may elect to: (i) return the entire
Solar Park to the Contractor (or the part thereof that was not rejected in
the event of a partial termination in accordance with the terms of Clause
14.1), the Contractor then being obligated to return the entire Contract
Price paid by the Owner pursuant to this Contract and to indemnify the
Owner for damages pursuant to Clause 14.1(5), or (ii) return the Solar
Facilities causing the failure to achieve the Minimum PR to the
Contractor, the Contractor then being obligated to return the portion of
the Contract Price corresponding to such Solar Facilities and to indemnify
the Owner for damages pursuant to Clause 14.1(5) that correspond to the
returned Solar Facilities.
|
(3)
|
If
the Guaranteed PR is reached in the Production Tests for each *** period,
or if the Contractor shall have paid the required penalties for achieving
an output between the Minimum PR and the Guaranteed PR, the Parties shall
execute a certificate of agreement. The execution of such
certificate corresponding to the second *** period for the Guaranteed
Production Period shall grant the Contractor the right to require the
Owner to return the Guarantee Bond in force at the time and replace the
same with a new Guarantee Bond in an amount equal to ***% of the Contract
Price. The same provisions of this subsection shall also be
applied to the Solar Facilities, if any, that the Owner did not return in
accordance with subsection
8.4(2)(b).
|
|
(4)
|
The
Contractor shall not be responsible for breach of the guarantees in the
event that such failure was caused by the circumstances described in
Clause 8.3.2(5) above or by excessive failures of the grid coupled with
the disconnection of the inverters for exceeding the conditions detailed
in their technical specifications.
|
|
Further,
in the event that a Systemic Defect arises during a Production Guarantee
Period, the data from the Solar Park as a whole shall not considered for
purposes of the Production Guarantee during the time the Contractor is
replacing the equipment affected by such Systemic Defect, up to a maximum
of three (3) months. Thus, in the event that the Contractor
takes more than three (3) months to replace the Solar Park equipment
affected by a Systemic Defect, only that three (3) month period shall
remain in the Production Guarantee Period. For this purpose, the parties
shall record the suspension periods and corresponding extensions of the
Production Guarantee in writing.
|
|
For
clarification purposes, the appearance of a Systemic Defect shall obligate
the Contractor to replace all equipment of the same model and
manufacturer, regardless of whether they have manifested such defect at
the time of their replacement.
|
8.5
|
Bonds
|
(1)
|
On
the Condition Satisfaction Date, the Contractor shall deliver to the Owner
the Performance Bond, as per the form attached hereto as Annex
7, in an amount equivalent to ***% of the Contract Price. The
Performance Bond shall guarantee the performance by the Contractor of any
payment obligation for which the Contractor is responsible from the
commencement of the Work until the date of execution of the Solar Park
Provisional Acceptance Certificate (for any reason, including but not
limited to the return of the amounts paid by the Owner, under this
Contract, penalties or compensation for damages and losses, including the
performance by the Contractor of its obligations during the portion of the
Guarantee Period prior to the execution of the Solar Park Provisional
Acceptance Certificate).
|
(2)
|
As
a requirement for the execution of the Solar Park Provisional Acceptance
Certificate, the Contractor shall deliver to the Owner the Guarantee Bond
(in exchange for the return of the Performance Bond by the Owner), in an
amount equal to ***% of the Contract Price. The Guarantee Bond shall
conform to the form attached hereto as Annex
7 and shall guarantee the Contractor’s compliance with its
obligations during the Guarantee Period (beginning from the execution of
the Solar Park Provisional Acceptance Certificate). However, once the
Performance Tests corresponding to the second *** period of the Production
Guarantee Period have been performed and the written agreement referred to
in Clause 8.4(3) has been executed, the Contractor shall have the right to
replace the Guarantee Bond delivered to the Owner with a new Guarantee
Bond in an amount equal to ***% of the Contract
Price.
|
(3)
|
The
Performance Bond and the Guarantee Bond shall be issued by a financial
institution with a minimum “A” rating by Standard & Poor’s Corporation
or the equivalent from Moody’s Investors Services Inc., and shall be
enforceable, in whole or in part, on demand by the Owner, in the event of
the Contractor’s breach of its obligations under this
Contract.
|
(4)
|
The
delivery of the bonds provided under this section shall in no way limit
the Contractor's liability under this Contract, as the bonds only
constitute a means to guarantee the performance of the obligations assumed
by the Contractor.
|
(5)
|
If
the Contract Price is amended pursuant to Change Orders, the Contractor
must update the amount of the Performance Bond. To such end, the
Contractor must deliver to the Owner (within fifteen (15) Business Days
following the execution of the corresponding Change Order), the bonds in
the updated amount, in the form attached hereto as Annex
7.
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
(1)
|
Within
forty-five (45) days prior to the passage of *** from the date on which
the Solar Park Final Start-Up Certificate has been obtained, the
Contractor shall give notice thereof to the Owner in order for both
Parties to agree upon a date to analyze the status and condition of the
Solar Park (which shall not occur later than the Guarantee Period
expiration date).
|
(2)
|
If
such inspection does not reveal the presence of defects, the Parties shall
proceed to execute the Final Acceptance Certificate, at which time the
Owner shall return the Guarantee Bond to the
Contractor.
|
(3)
|
If
such inspection finds that defects are present that affect the
Contractor's obligations during the Guarantee Period, the Parties shall
sign a certificate specifying the defects, if any, that must be corrected
within a period of forty-five (45) days of the date of execution of the
corresponding certificate, or within such shorter period that the Parties
may agree upon.
|
|
Once
such defects have been corrected by the Contractor within the specified
period, a new inspection shall be performed, and if the defects have been
remedied, the Parties shall proceed to execute the Final Acceptance
Certificate, and the Owner shall return the Guarantee Bond to the
Contractor.
|
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF
RISK
|
(1)
|
The
Owner and the Contractor expressly agree that the actual transfer of
ownership of the facilities and equipment covered by this Contract will be
made, for all contractual purposes, when each of the same shall have been
paid for in full by the Owner. With respect to the solar modules, module
supports and trackers, ownership thereof will be transferred to the Owner
upon payment of the respective invoice as provided in Clause 4, whereupon
the Owner will become the owner of the solar modules, the module supports
and the trackers included in such
invoice.
|
(2)
|
Without
prejudice to the foregoing, or to the Contractor’s obligations during the
Guarantee Period, the possession and the risk of loss of the same shall
not be transferred to the Owner until the execution of the Solar Park
Provisional Acceptance Certificate.
|
(3)
|
Until
the execution of the Solar Park Provisional Acceptance Certificate, the
Contractor must repair or replace, at its own expense, any equipment,
facility or portion of Work that is lost or damaged. Further,
the Contractor must assume responsibility for the care and security of the
Site and assume responsibility for any loss, theft or damage that may
occur with respect to the Contractor’s materials or machinery or the
equipment delivered pursuant to this
Contract.
|
11.
|
INSURANCE
|
(1)
|
At
all times during which the Contractor continues performing work under this
Contract, the Contractor, at its own cost and expense, shall take out and
maintain in force the insurance described below with well-known and
solvent insurance companies that are legally authorized to issue policies
in Spain, on terms and conditions of coverage satisfactory to the Owner
and the Insurance Advisor:
|
|
a)
|
Occupational
Accidents or Social Security Insurance for all its own personnel or for
the personnel of the Subcontractors as is legally required during the
effective period of the Contract.
|
|
b)
|
Mandatory
Civil Liability Insurance and Voluntary Civil Liability Insurance for the
Circulation of Vehicles and Machinery, pursuant to the limits and
conditions mandated by the Legislation in force during the effective
period of the Contract.
|
|
c)
|
Civil
Liability Insurance covering all activities of the Contractor and the
Subcontractors necessary to complete the Work, with a limit of not less
than €1,500,000 per occurrence.
|
|
d)
|
Transportation
Insurance covering the transportation of material and machinery to the
Site, with a limit of not less than the aggregate value of the transported
goods.
|
|
e)
|
All-Risks
Construction and Assembly Insurance, which will specifically include theft
and vandalism at the Site, from the unloading of the material at the Site
until the transfer of ownership of the Solar Park, including the testing
period and covering a maintenance period of not less than 12 months, with
an insured amount not less than the Contract
Price.
|
|
f)
|
Any
other mandatory insurance.
|
(2)
|
The
contracting of insurance provided in this clause shall in no event limit
the liabilities of the Contractor under this Contract. Additionally, the
amounts established as an insurance deductible in each of the insurance
policies shall be borne by the Contractor, unless the loss is attributable
to the Owner.
|
(3)
|
The
Owner may require that the Contractor deliver documentation evidencing the
contracting of the insurance set forth under this Clause to verify
compliance therewith and/or for verification by the Insurance Advisor, and
the Contractor undertakes to make such documentation available to the
Owner as soon as possible.
|
12.
|
FORCE
MAJEURE
|
(1)
|
Neither
Party shall be deemed liable for the breach of any of its obligations to
the extent that the performance of such obligations is delayed or becomes
impossible as a consequence of Force
Majeure.
|
(2)
|
For
the purposes of this Contract, events of Force Majeure shall be
deemed to be the events described in Article 1105 of the Civil Code,
provided that they actually prevent compliance by the party invoking it
from complying in whole or in part with its obligations under this
Contract. The Parties expressly agree that the discovery of archeological
ruins at the Site shall be considered an event of Force Majeure for
purposes of this Contract (without prejudice to the changes, if any, that
the Parties may agree to in accordance with subsection (11) below and the
consequences set forth therein). By way of example and not limitation, the
Contractor may not invoke the following as an event of force
majeure:
|
|
(i)
|
Meteorological
conditions or phenomena that could have been reasonably foreseen by
experienced contractors operating at the
Site.
|
|
(ii)
|
Delays
or failures in obtaining materials or labor that are foreseeable or
avoidable in advance.
|
|
(iii)
|
Delays
by any Subcontractor, unless such delays are based on any of the events
specified in this clause.
|
|
(iv)
|
Strikes
or labor conflicts affecting the Contractor or the Subcontractors, unless
they are national, sector-wide or local in
scope.
|
(3)
|
The
Party affected by Force
Majeure shall give written notice to the other Party as soon as
possible within a maximum period of forty-eight (48) hours from the day on
which such Party became aware thereof, attaching to such notice all
available documents evidencing the event that is deemed to amount to Force Majeure, the
measures taken up to such point in time, and an estimation, if possible,
of the expected duration thereof and its impact on the
Work
|
(4)
|
The
performance of the obligations affected by an event of Force Majeure shall be
suspended for the duration of such event, the Parties not being entitled
to damages as results of such events of Force
Majeure.
|
(5)
|
If
the Work is affected by the event of Force Majeure and the
Contract is suspended for more than one hundred eighty (180) days, either
of the Parties may seek termination of the Contract, with the consequences
provided in Clause 14.3.
|
(6)
|
After
cessation of the event of Force Majeure, the
Parties shall agree upon the corresponding extension of deadlines (in all
cases in light of the duration of the event of Force Majeure and the
mobilization periods), or, if applicable, the measures that must be
adopted to recover, in whole or in part, the time lost so as to preserve
such dates, if possible. The contractual obligations not affected by Force Majeure must be
met within the deadlines that were in force prior to the occurrence of the
event of Force
Majeure.
|
(7)
|
In
any event, upon cessation of the event of Force Majeure, the
Parties shall take all reasonable measures within their power to resume
performance of the obligations under the Contract under optimal conditions
and with the least possible delay.
|
(8)
|
The
expenses incurred as a consequence of the repair, replacement or
adjustment of the items damaged by the events of Force Majeure shall be
borne by the party bearing the risk of loss for such elements at the time
of occurrence of the event of Force
Majeure.
|
(9)
|
In
the event that an event of Force Majeure prevents
a Party from complying with a payment obligation required by the Contract,
such payment obligation shall not be waived and the other Party may
suspend performance of its obligations under the Contract. Such
occurrence shall not give either Party a right to indemnification for
damages, without prejudice to any interest for delay in payment that might
apply.
|
(10)
|
The
Party claiming the Force
Majeure event shall immediately notify the other Party of its
cessation. Within seven (7) calendar days following the
cessation of the Force
Majeure event, the Parties shall meet to agree and assess the
effects that such situation caused. Such agreement shall be
documented in a certificate signed by both Parties describing the changes
to the contractual conditions.
|
(11)
|
In
the event that archeological ruins are discovered at the Site, but the
Work may be continued by reducing the size of the Solar Park, the number
of Solar Facilities, or by implementing a reconfiguration of the technical
configuration of the Solar Park, the Parties shall meet to agree on such
changes and shall execute a certificate describing the changes to the
contractual conditions. In any event, if the change entails a
reduction in the capacity of the Solar Park, or in the number of Solar
Facilities, thus requiring a reduction of the Contract Price, the Owner
shall have the right to withhold from the remaining Payment Milestones
payable after the change, the portion of the Contract Price previously
paid by the Owner that corresponds to the Solar Facilities or the
equipment affected by the reduction and which, consequently, were not
delivered by the Contractor under this
Contract.
|
13.
|
SUSPENSION
OF THE WORK
|
13.1
|
Suspension
by the Owner
|
(1)
|
The
Owner may at any time give written notice to the Contractor ordering the
immediate suspension of the Solar Park, in whole or in part, for any of
the following reasons:
|
|
a)
|
If
the Contractor is performing the Work in a defective or inappropriate
manner, or not adhering to uses and practices customary for projects of
this type or as established under this Contract, provided that the
Contractor does not cure such defects within a reasonable period granted
by the Owner.
|
|
b)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with safety standards, avoiding
damage to people and things, provided that the Contractor does not cure
such defects within a reasonable period granted by the
Owner.
|
|
c)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with quality control
requirements, provided that the Contractor does not cure such defects
within a reasonable period granted by the
Owner.
|
|
d)
|
If
the Contractor fails to comply with the instructions issued by the
Governmental Authorities for the execution of the Work, to the extent that
this may affect the authorizations granted or requested or the successful
achievement of the purpose of the
Contract.
|
|
e)
|
By
unilateral decision of the Owner.
|
(2)
|
The
order providing for the suspension of the Work shall specify in writing
the portion thereof that is being suspended, the grounds for suspension,
the effective date of suspension and the date provided for the resumption
of the Work (if applicable).
|
(3)
|
In
all the cases provided in subsection (1) above, except for the ones
mentioned in subsection (e), the suspension shall last for all the time
required and until the Contractor cures the circumstances that gave rise
to the suspension of the Work. Additionally, in none of such cases shall
the Contractor be entitled to any additional payment whatsoever or to the
extension of the periods provided in the Implementation Schedule, except
in the case mentioned in subsection (e), where the Contractor shall be
entitled to an extension of the deadlines provided in the Implementation
Schedule for a period at least equal to the suspension period and to be
compensated for the costs resulting from the repair, replacement or
adjustment of the items damaged during the suspension period and the costs
arising from the suspension and resumption of the
Work.
|
(4)
|
If
the suspension lasts for a period in excess of one hundred and eighty
(180) days, and the reasons are not attributable to the Owner, the
Contractor shall reserve the right to terminate the Contract upon the
terms of Clause 14.1.
|
13.2
|
Suspension
by the Contractor
|
(1)
|
The
Contractor shall be entitled to temporarily suspend the Work as provided
under this Contract, applicable law and in the event that the Owner incurs
a delay in excess of thirty (30) days in the payments owing to the
Contractor, as regards the expiration dates of the relevant invoices
(except in the case of the works relating to a Payment Milestone disputed
in accordance with Clause 4.3 (3)). In such event, the Owner
shall pay to the Contractor its expenses arising from the suspension
(including the costs resulting as a consequence of the repair, replacement
or adaptation of the damaged elements during the suspension period and the
costs arising from the suspension and resumption of the Work) and the
Parties shall agree upon an extension of the deadlines for performance
based on the effects of the suspension
thereon.
|
(2)
|
If
the suspension for a cause attributable to the Owner (including the one
provided under subsection 13.1(1)(e) above) lasts for more than three (3)
months or during several consecutive periods totaling more than three (3)
months, the Contractor shall be entitled to terminate the Contract upon
the terms of Clause 14.2.
|
13.3
|
Suspension
by Judicial or Governmental
Authority
|
(1)
|
In
the event of suspension, interruption or stoppage of the Work, in whole or
in part, ordered by any judicial or governmental authority, or by the
Owner or Contractor following the instructions of any judicial or
governmental authority, the financial and contractual consequences of the
delay shall be borne by the party that is responsible for performance
where the failure to perform or incorrect performance triggered the
judicial or governmental action.
|
(2)
|
If
such suspension, interruption or stoppage does not result from the actions
or omissions of any of the Parties, the periods of the Implementation
Schedule shall be extended for a period at least equal to the one during
which the situation subsisted, and the Owner shall pay to the Contractor
the duly verified costs incurred as a result of such interruption. The
Contractor undertakes to act diligently to minimize such
costs.
|
(3)
|
If
the suspension ordered by any judicial or governmental order, or by the
Owner or the Contractor following the instructions of any judicial or
governmental authority, extends for more than six (6) months, either of
the Parties will be entitled to terminate the Contract upon the terms of
Clause 14.
|
14.
|
TERMINATION
|
14.1
|
Termination
for Causes Attributable to the
Contractor
|
(1)
|
The
Owner may terminate the Contract in the cases authorized by the Law, in
the instances provided for in this Contract, or upon the occurrence of any
of the following events:
|
|
a)
|
The
dissolution or merger (provided it involves a change in control) of the
Contractor or a change in the control ***, or when a substantial portion
of the assets of the Contractor *** is transferred to another company,
provided that such circumstances seriously prejudice the Contractor’s ***
capacity to perform the obligations under this
Contract;
|
|
b)
|
The
voluntary filing by the Contractor of a bankruptcy petition or the
allowance of a bankruptcy petition by a third party against the Contractor
(or any equivalent action in accordance with the insolvency legislation
applicable to the Contractor), or in the case of clear financial
difficulties that prevent the Contractor from normally complying with
obligations arising under the Contract, unless its obligations are
sufficiently guaranteed under this Contract. The occurrence of the same
events as regards *** shall also be grounds for
termination.
|
|
c)
|
If
the Contractor assigns or subcontracts the Contract, in whole or in part,
without complying with the conditions set forth in this
document.
|
|
d)
|
If
the Contractor fails to comply with its obligations involving the
contracting and maintenance of the insurance provided under the Contract
in a manner that might endanger coverage under the relevant
policies.
|
|
e)
|
If
the Contractor has been assessed penalties for failure to achieve the
Production Guarantee beyond the maximum limits, if applicable, provided
under this Contract.
|
|
f)
|
The
Contractor has interrupted the Work or a substantial portion thereof or
has abandoned the Solar Park for a period exceeding twenty (20) calendar
days without the Owner’s authorization, or in the case of interruptions
for an aggregate duration of more than thirty (30) days within the same
calendar year, provided that the interruptions do not arise from a
suspension of the Work provided under Clause
13.2.
|
|
g)
|
If
the application for the Final Start-up Certificate has not been filed
together with all required in accordance with the terms of Clause 6.6 on
or prior to the Delivery Deadline due to causes attributable to the
Contractor, although the Owner cannot effect termination for the reason
set forth in this subsection with respect to those Solar Facilities or
Electrical Infrastructure for which a Final Start-up Certificate would
have been obtained prior to September 29,
2008.
|
|
h)
|
If
the Owner has not obtained the Final Start-up Certificate (with respect to
one or more Solar Facilities and/or the Electrical Infrastructure) prior
to ***, for the reasons set forth in Clause
6.6(2)(ii).
|
|
i)
|
If
the Provisional Acceptance Certificate for one or more Solar Facilities or
the Electrical Infrastructure has not been issued prior to
***.
|
|
j)
|
***
|
|
k)
|
***
|
|
l)
|
If
there is any other material breach of the obligations assumed by the
Contractor under this Contract.
|
|
m)
|
Any
other serious breach of a principal obligation of the Contractor that
might affect or prevent the successful conclusion of the Contract, or that
is expressly designated herein as grounds for
termination.
|
(2)
|
Upon
the occurrence of any of the above events, the Owner may elect to
terminate the Contract, in whole or in part, with respect to the Solar
Facilities for which the Provisional Acceptance Certificate of a Facility
has not been issued as of the date of notice of termination, or for which
the Final Start-up Certificate has not been obtained in the case of
subsections g) and h) above (hereinafter, the “Affected Facilities”),
except to the extent that the number of Affected Facilities is less than
40% of the total Solar Facilities, in which case the Owner may only
terminate the Contract with respect to such Affected
Facilities.
|
(3)
|
Upon
the occurrence of any of the above events, the Owner shall give the
Contractor a period of thirty (30) days to remedy the event, or any other
longer period that may be agreed upon by the Parties. If within such
period the Contractor fails to remedy such grounds for termination to the
Owner's satisfaction, the Contract shall be terminated (in whole or in
part, as applicable). For clarification purposes, it is noted
for the record that in no event will the remedy period provided herein be
applicable to the circumstances provided in subsections (1)(b), (e), (f),
(g) , (h) and (i) of this
Clause.
|
(4)
|
In
the event of a termination of the Contract (in whole or in part) under
this subsection, the following shall occur (without prejudice to the
provisions of subsection (6)):
|
|
(i)
|
In
the event of partial
termination, only as to some Solar Facilities in the Solar Park,
the Contractor shall be obligated to return to the Owner the portion of
the Contract Price that it charged for the Affected Facilities and shall
be obligated to pay indemnification for any damages pursuant to subsection
(5) below. The Contractor shall recover ownership of the property
comprising such Solar Facilities.
|
|
(ii)
|
In
the event of complete
termination, the Contractor shall be obligated to return the
aggregate Contract Price charged by the Contractor, and shall be obligated
to pay indemnification for any damages pursuant to subsection (5) below.
The Contractor shall recover ownership of all the property delivered to
the Owner.
|
(5)
|
Upon
the occurrence of either two events described in the preceding subsection,
the Contractor shall be obligated to pay indemnification to the Owner for
damages, including:
|
|
(i)
|
The
Financial Costs associated with the Affected Facilities or the entire
Solar Park, as applicable. “Financial Costs” shall
be understood to mean all costs, expenses, fees (whether up-front, early
termination or of any other type) and interest paid by the Owner in
respect of the financing documents entered into by the Owner with the
Financial Institutions, including cancellation or breakage fees for any
interest rate swap agreements entered into by the Owner with the Financial
Institutions.
|
|
(ii)
|
The
costs, expenses and damages incurred by the Owner as a result of, or with
respect to, the early termination or the breach by the Contractor, duly
certified by the Owner, plus an amount equal to *** euros for each
Affected Facility (i.e., *** euros in the event of total termination or
the amount that corresponds to the Affected Facilities in the event of a
partial termination), to cover permitting
costs.
|
(6)
|
Notwithstanding
the provisions of subsections (4) and (5), if the Owner had the right to
terminate the Contract, in whole or in part, as a result of the failure to
achieve Start-up prior to September 29, 2008 for the reasons set forth in
subsections 14.1(g) and 14.1(h) above, the Owner may not elect to return
the Affected Facilities, if:
|
|
(i)
|
prior
to September 29, 2008 the Contractor pays to the Owner an amount that is
sufficient to (a) restore the Debt Service Coverage Ratio (as defined in
the financing documents referred to in Clause 14.1(5)(i)) to the Base Case
(as defined in the financing documents referred to in Clause 14.1(5)(i))
agreed to by the Financial Institutions and the Owner in such financing
documents, and (b) cover the loss of profitability for the Owner’s
shareholders, taking into account the tariffs which will be received by
the Owner from the sale of power from the Solar Park. For such purposes,
the Contractor acknowledges and accepts that the amount to be paid to the
Owner (for the items set forth in the preceding subsection) will be
proposed by the Agent for the Financial Institutions and negotiated
between the Owner and the Contractor on the basis of the assumptions in
the Base Case developed by the Owner and the Financial Institutions in
connection with the financing documents;
and
|
|
(ii)
|
Start-up
of the Affected Facilities shall have occurred prior to October 31,
2008.
|
(7)
|
The
Contractor is required to pay the amounts referred to in subsections (4)
and (5) above to the Owner within *** days of the date of settlement of
the amounts owed.
|
(8)
|
In
all the foregoing instances, the Owner may, without prejudice to the
reservation of rights to take all legal action to which it is entitled for
the defense of its rights, adopt any or all of the following
measures:
|
|
a)
|
Offset
any payments pending in favor of the Contractor by an amount equivalent to
the balance in favor of the Owner (returning, in the event of complete
termination, the Performance Bond or the Guarantee Bond, as applicable,
once such offset has been made).
|
|
b)
|
Enforce
the Performance Bond and/or the Guarantee
Bond.
|
|
c)
|
Withhold
the Contractor’s materials, machinery and items belonging to the
Contractor that are in the possession of the Owner, until the Contractor
has fully paid all amounts due as a consequence of the
termination.
|
14.2
|
Termination
by the Contractor
|
(1)
|
The
Contractor may terminate the Contract under the circumstances provided for
under applicable law, in this Contract, or upon occurrence of any of the
following events:
|
|
(i)
|
The
voluntary filing by the Owner of a bankruptcy petition or the allowance of
a bankruptcy petition filed by a third party against the Owner, or in the
event of patent financial difficulties that would prevent the Owner from
normally complying with the obligations arising under this Contract in
cases different from the one provided under subsection (ii) below, unless
its obligations are sufficiently guaranteed under this
Contract.
|
|
(ii)
|
A
delay in payment for a period in excess of sixty (60) days from the date
on which payment should have been
made.
|
|
(iii)
|
Any
other serious breach of a principal obligation of the Owner that might
affect or prevent the successful conclusion of the Contract, or that is
expressly designated herein as grounds for
termination.
|
|
(iv)
|
A
suspension of the works and services for causes attributable to the Owner
for a period greater than three (3)
months.
|
|
(v)
|
The
dissolution of the Owner, or if a substantial portion of the assets of the
Owner is transferred to another company, and such circumstance seriously
prejudices the Owner’s capacity to perform the obligations set forth in
this Contract.
|
(2)
|
The
Contractor shall give to the Owner a period of thirty (30) days to cure
the event, or any other longer period that may be agreed upon by the
Parties. Such cure period shall not apply if the event giving rise to
grounds for termination is one provided for in subsections (i) and (iv) of
Clause 14.2(1) above. If the Owner fails to remedy such grounds for
termination to the Contractor's satisfaction within such period, the
Contract shall be terminated (in whole or in part, as
applicable).
|
(3)
|
Upon
termination of the Contract for any of the foregoing reasons, the Owner
must:
|
|
(i)
|
Pay
all of the Contractor’s outstanding
invoices.
|
|
(ii)
|
Pay
to the Contractor the value of the Work performed before termination and
which is not yet included in the invoices. Accordingly, the Owner must pay
to the Contractor the cost of the equipment already delivered to the
Contractor or that it is legally required to accept under the contracts
entered into with its suppliers and manufacturers, which shall become the
property of the Owner if they had not already become
so.
|
|
(iii)
|
Pay
all duly authenticated damages that are sustained by the Contractor as a
consequence of the contractual breach or early termination, including
direct demobilization costs.
|
|
(iv)
|
Return
to the Contractor the Bonds received from the
Contractor.
|
(4)
|
Upon
the Owner’s compliance with the conditions set forth in the above
subsection, the Contractor shall abandon the Site within a period of
thirty (30) days and the Owner may complete the Work by itself or with
another contractor, the Owner being entitled to request the Contractor to
assign each and every contract signed by the Contractor and its
subcontractors (except contracts entered into for the supply of
solar modules, supports and trackers or for the supply of technology and
software, which the Owner may not assume). The Contractor is obligated to
cooperate in good faith with the Owner to effect such
assignments.
|
14.3
|
Termination
due to Force
Majeure
|
|
In
the event of termination of the Contract due to an event of Force Majeure, the
provisions of subsections 14.2 (3) (i), (ii) and (iv) above shall
apply.
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
15.1
|
Assignment
|
(1)
|
The
Contractor may not assign or transfer to third parties, in whole or in
part, the economic, commercial or financial rights or credits arising
under this Contract, or engage in any other transaction involving any type
of disposition, encumbrance, commitment and/or transaction, in whole or in
part, regarding such rights and credits, unless it has obtained the prior
written approval of the Owner and the Financial Institutions. An
assignment to other companies within the Contractor’s group that have the
same technical capacity to perform the contractual obligations and that
satisfy the requirements of the Direct Agreement is permitted,
***.
|
(2)
|
The
Owner may only assign all or a portion of the rights and obligations
arising under this Contract in favor of the Financial Institutions in
accordance with Clause 17, or to any other third party with the prior
written approval of the Contractor.
|
15.2
|
Subcontracting
|
(1)
|
The
Contractor may subcontract the Work, provided the following conditions are
met:
|
|
(i)
|
All
the subcontracts executed (except the contracts entered into for the
supply and manufacture of solar modules, supports and trackers or for the
supply of technology and software, which Owner may not assume) and all
guarantees obtained from any of the suppliers or Subcontractors may be
assigned at the request of the Owner in the event of termination of this
Contract. For such purpose, the Contractor irrevocably undertakes to
assign to the Owner and the Financial Institutions the rights arising from
all the guarantees and subcontracts obtained from Authorized
Subcontractors upon the expiration of the Guarantee Period or in the event
of termination of the Contract.
|
|
(ii)
|
The
guarantees or subcontracts executed by the Contractor with Subcontractors
or suppliers shall be consistent with the terms and provisions of this
Contract.
|
|
(iii)
|
The
Contractor shall deliver to the Owner, within a reasonable period after
the request thereof, a copy without prices or other commercial terms, of
all the contracts, agreements and guarantees signed with the
Subcontractors (containing the waiver referred to in subsection (3)
below)
|
(2)
|
In
no event shall a contractual relationship be implied among the
Subcontractors and the Owner. The Contractor shall remain liable for all
of the activities of its Subcontractors and suppliers and for all
contractual and labor obligations arising from the performance of their
work; as well as for the actions, failures and negligence of any of its
subcontractors or suppliers and the agents and employees thereof, under
the same terms and conditions as if committed or performed by the
Contractor itself, its agents or
employees.
|
(3)
|
The
Owner shall not be liable vis-à-vis any Subcontractor or supplier, or
vis-à-vis their employees, for any claims arising directly or indirectly
from the Contract. For such purpose, the Contractor undertakes to procure
an express and written waiver of the rights conferred by Article 1597 of
the Civil Code from each
Subcontractor.
|
16.
|
LIABILITY
AND DAMAGES
|
(1)
|
The
Parties shall have the obligation to provide indemnification for those
damages caused to the other Party as a consequence of the breach of this
Contract. The Owner’s approval of the projects, calculations, drawings or
other technical documents prepared by the Contractor, or the conduct of
inspections or Tests do not release the Contractor from such liability,
and do not imply that such liability must be shared by the
Owner.
|
|
Further,
the recommendations made by the Owner or its representatives during the
performance of the Contract or on occasion of inspections or Tests shall
not give rise to an exemption, mitigation or excuse for the Contractor’s
performance under this Contract, except to the extent such recommendations
or observations were implemented despite the Contractor’s
objection.
|
(2)
|
The
Contractor shall be liable vis-à-vis the Owner for any loss or physical
damage to the equipment, materials or assets owned by the Owner or third
parties that is caused by the Contractor through the execution of the
relevant Solar Facility Provisional Acceptance Certificate, and thereafter
only when the Contractor is within the Site performing the Work, repairs
or similar activities and causes the relevant
damage.
|
(3)
|
By
application of Article 1596 of the Civil Code, it is expressly agreed that
the Contractor shall also be liable for damages caused by the persons or
entities employed by the Contractor in the performance of the Work,
whether as employees, technicians, subcontractors or otherwise, from whom
the same diligence owed by the Contractor shall be
required.
|
(4)
|
The
Parties expressly agree that in no event will a Party be liable for the
so-called consequential or indirect damages, including loss of profits and
loss of output, loss of use or loss of any contract or other damages that
are considered to be indirect, except for cases involving willful
misconduct or gross negligence, and without prejudice to the Contractor's
obligation to pay the penalties agreed upon under this
Contract.
|
(5)
|
The
Parties agree that any indemnity received by one of the Parties as
beneficiary of any of the insurance taken out by them in connection with
the Solar Park will be deducted from the respective claim for damages or,
if such indemnity holds the Party in question harmless from the damages
sustained, it shall bar such Party from claiming damages and require it to
refund the excess, if any. The Party causing the damages shall
bear all deductibles, liability limits and any other deductions affecting
the indemnities payable to the damaged Party by the insurance companies
providing the insurance in accordance with the provisions
hereof.
|
(6)
|
The
maximum total liability of the Contractor hereunder shall not exceed, in
the aggregate, an amount equal to *** (***%) percent of the Contract
Price. The foregoing shall not affect to the Contractor’s obligation to
make payments under Clause 14.1 in the event of the termination or partial
termination of the Contract.
|
17.
|
OWNER
FINANCING
|
|
(i)
|
the
possibility that the Owner’s rights under this Contract may be fully or
partially pledged or assigned as security, in one or successive instances,
to the Financial Institutions.
|
|
(ii)
|
the
possibility that “direct agreements” that provide the Financial
Institutions with “step-in” rights will be executed in the form agreed to
prior to the execution of this Contract and which are attached hereto as
Annex
9;
|
|
(ii)
|
the
possibility that the right to receive indemnification to which the Owner
may be entitled and which arise under the insurance policies purchased in
accordance with the terms of this Contract may be pledged or assigned as
security to the Financial Institutions (and the essential nature of
subscribing the insurance policies upon the terms of the report issued by
the Insurance Advisor in accordance with Clause
11);.
|
|
(iii)
|
that
the Financial Institutions and their advisors (including the Technical
Advisor and the Insurance Advisor and any others) have the right to access
the Site in order to inspect the performance of the work contemplated
under this Contract, upon the terms contemplated in Clause
6.2;
|
|
(iv)
|
the
Technical Advisor’s right to observe all Capacity and Production Tests and
the obligation to obtain its prior approval for the issuance of the Solar
Park Provisional Acceptance Certificate, each Solar Facility Provisional
Acceptance Certificate, the Final Acceptance Certificate and other actions
for which the approval of the Technical Advisor is required in accordance
with the form of Direct Agreement attached hereto as Annex
9;
|
|
(v)
|
the
requirement to obtain the prior approval of the Financial Institutions for
any change to the terms of this Contract upon the terms contemplated
herein;
|
|
(vi)
|
the
Contractor’s obligation to pay any amounts owed to the Owner under this
Contract to the account, if any, indicated in writing by the Financial
Institutions;
|
18.
|
CONFIDENTIALITY
|
(1)
|
The
Parties agree that this Contract and the Annexes hereto, and any written
or electronic information or documentation that any of the Parties
furnishes to the other for the performance of this Contract (including,
without limitation, technical documentation, plans, information,
procedures, patents and licenses) are confidential. Therefore, the Parties
undertake to keep the information confidential and to refrain from
disclosing, providing to third parties or using such information unless
such documentation and information (i) is known by the public without any
breach of this confidentiality commitment, (ii) has been legally obtained
from a third party, (iii) is requested by a judicial or governmental
authority, or (iv) the delivery of such documentation and information is
made in compliance with any legal obligations enforced upon the disclosing
Party.
|
(2)
|
The
Parties agree that the above shall not apply to any disclosure of
information made by any of the Parties to other entities of their Group
(within the meaning of Article 4 of Securities Market Law 24/1988 of July
28), regulatory, tax or governmental authorities, and their respective
advisors and auditors, internal or external, in relation to the
information requested by them for the development of the investigations,
assessments and works carried out by them, provided that, in each and
every one of such cases, the parties receiving the confidential
information have assumed commitments of confidentiality vis-à-vis the
disclosing party on terms similar to this one. In this case, such
entities, authorities, advisors or auditors shall have free access to the
books, files, documents and information held by the requested Party, and
prior authorization is therefore not required from the other Parties to
furnish information to such entities, authorities, advisors and/or
auditors regarding this Contract and the Annexes hereto and any other
information or written documentation relating
hereto.
|
(3)
|
In
particular, the Owner is authorized to transmit information regarding this
Contract to the Owner and the Financial Institutions and to those
investors with interests in the construction and commercial operation of
the Solar Park who reasonably request information with respect to this
Contract, provided that they have assumed vis-à-vis the provider of such
information confidentiality undertakings upon terms substantially similar
hereto. Further, the Owner hereby authorizes the Contractor to
provide such information to the Financial
Institutions;
|
(4)
|
The
confidentiality commitment must be observed until the passage of two (2)
years from the date of execution of the Final Acceptance Certificate or
any termination of the Contract, regardless of the cause
thereof.
|
19.
|
NOTICES
|
(1)
|
All
notices and communications between the Parties for the purposes of this
Contract shall be made in writing, by certified mail, fax or courier
service, to the following
addresses:
|
(2)
|
The
Parties may change the above addresses by written notice to each other
given in the form and to the addresses mentioned
above.
|
(3)
|
Notices
shall be deemed received on the third (3rd) Business Day following the
dispatch thereof when sent by courier service (unless there is evidence of
earlier receipt) or the Business Day following the date on which there is
evidence of the receipt thereof in the case of faxes and certified
mail.
|
20
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation, to which the Contractor and the
Owner expressly submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje (CIMA)) of Madrid in accordance with the Procedural
Regulations thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by the Contractor and the other by
the Owner, and the two arbitrators so appointed shall appoint the third
one, who shall act as chairman of the arbitral tribunal. Should the two
first arbitrators fail to reach an agreement on the appointment of the
third arbitrator within ten (10) Business Days following the date of
acceptance of office by the second arbitrator, such arbitrator shall be
appointed by CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
MORALAS
RENOVABLES, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
Part
|
Units
per
MW
|
Total
quantity
|
||||||
Mechanical
part
|
||||||||
Drive
bellows boot
|
0.4 | 2 | ||||||
Ground
braids, torque tube to pier
|
5 | 25 | ||||||
Module
mounting assemblies
|
5 | 25 | ||||||
MC
connectors
|
5 | 25 | ||||||
Actuator
(endless screw)
|
0.2 | 1 | ||||||
Low
voltage
|
||||||||
Solar
panels
|
10 | 50 | ||||||
Orientation
motor
|
0.4 | 2 | ||||||
GPS
+ PLC + clinometer
|
0.4 | 2 | ||||||
SunPower
controller (no housing)
|
0.4 | 2 | ||||||
Inverter
|
0.2 | 1 | ||||||
Communications
card for the inverter
|
0.4 | 2 | ||||||
Fuse
set for the inverter
|
0.4 | 2 | ||||||
Set
of overvoltage protective devices for the inverter
|
0.4 | 2 | ||||||
DC
fuses
|
5 | 25 | ||||||
Set
of overvoltage protective devices for the junction box
|
0.4 | 2 | ||||||
Junction
box
|
0.4 | 2 | ||||||
Fan
unit
|
0.4 | 2 | ||||||
Set
of sensors for the weather station
|
0.2 | 1 | ||||||
Communications
|
||||||||
MOXA
cards
|
0.2 | 1 | ||||||
Routers,
switches, hubs, etc.
|
0.2 | 1 | ||||||
Medium
voltage
|
||||||||
MV
fuses (if protective cabinets with fuses are installed)
|
0.2 | 1 | ||||||
Protective
relay
|
0.2 | 1 | ||||||
160
kVA transformer
|
0.2 | 1 |
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt/)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
MANUFACTURAS
ELÉCTRICAS
|
(www.me-sa.es)
|
SIEMENS
|
(www.siemens.es)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.1.2
|
SF6-insulated
cells and switchgear in metal
housings
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.2
|
Power
transformers
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
IMEFY
|
(www.imefy.com)
|
ALKARGO
|
(www.iberapa.es)
|
ABB
TRAFO
|
(www.abb.com)
|
SIEMENS
|
(www.siemens.es)
|
INCOESA
|
(www.incoesa.com)
|
OASA
|
(www.oasanet.com)
|
CONSTRUCCIONES
ELÉCTRICAS JARA
|
(www.trafojara.com)
|
LAYBOX
|
(www.laybox.com)
|
1.3
|
Prefabricated
housings
|
POSTES
NERVIÓN
|
(www.postesnervion.es/)
|
PREPHOR
|
(www.prephor.com)
|
INAEL
|
(www.inael.com)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
AREVA
T&D
|
(www.areva-td.com)
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
CONTECSA
|
(www.contecsa-spain.com)
|
CABELTE
|
(www.cabelte.pt)
|
MIGUELEZ
|
(www.miguelez.com)
|
1.1
|
Rectifiers
– battery chargers
|
ZIGOR
|
(www.zigor.com)
|
SAFT
POWER SYSTEMS IBERICA S.L.
|
(www.spsi.es)
|
EMISA
- EXIDE
|
(www.exide.com)
|
ENERTRON
|
(www.enertron.net)
|
1.2
|
Protective
cabinets and A.S. auxiliary services
control
|
PROYECTOS
MECA
|
(www.proymeca.com)
|
CYMI
|
(www.cymi.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
CUADRELEC
|
(www.cuadrelec.com)
|
PMC
Ingeniería
|
1.3
|
Exterior
cabinets
|
PINAZO
|
(www.pinazo.com)
|
ELDON
|
(www.eldon.es)
|
HIMEL
|
(www.himel.com)
|
RITTAL
|
(www.rittal.es)
|
1.1
|
Indirect
and direct protective devices for MV
cells
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
SIEMENS
|
(www.siemens.es)
|
GENERAL
ELECTRIC
|
(www.GEIndustrial.com)
|
TEAM
ARTECHE
|
(www.teamarteche.es)
|
ZIV
|
(www.ziv.com)
|
1.2
|
Direct
LV protective devices
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
MOELLER
|
(www.moeller.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
GOULD
|
(www.gould.com)
|
1.3
|
Metal-oxide
lightning rods
|
TYCO
ELECTRONICS RAYCHEM GMBH
|
(www.energy.tycoelectronics.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
INAEL
|
(www.inael.es)
|
ABB
|
(www.abb.es)
|
CELSA
|
(www.celsa.com)
|
1.1
|
PLCs
programmable logic controllers
|
SCHNEIDER
ELECTRIC
|
(www.schneider-electric.com)
|
BECKHOFF
|
(www.beckhoff.es)
|
ROCKWELL
AUTOMATION
|
(www.rockwellautomation.com)
|
GENERAL
ELECTRIC FANUC
|
(www.gefanuc.com)
|
1.2
|
Industrial
communications
|
HIRSCHMANN
|
(www.hirschmann.com)
|
MOXA
|
(www.moxa.com)
|
1.3
|
SCADA
system control and data acquisition
platforms
|
WONDERWARE
|
(www.wonderware.com)
|
GENERAL
ELECTRIC
|
(www.gefanuc.com)
|
1.4
|
Optical
fiber
|
NEXANS
|
(www.nexans.com)
|
CORNING
|
(www.corning.com)
|
OPTRAL
|
WWW.OPTRAL.COM
|
(A)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L.U. (the “Contractor”)
|
(B)
|
MORALAS RENOVABLES,
S.L. (the “Owner”).
|
(C)
|
CAJA CASTILLA LA MANCHA
(the “Agent”).
|
I.
|
The
Owner and the Contractor have executed on even date
herewith:
|
|
(i)
|
a
“turn-key” construction contract (the “Construction Contract”)
for the construction and start-up of a solar park in Manzanares (Ciudad
Real), composed of fifty (50) solar facilities with a unit capacity at the
panels between 115 y 122 kWp y 100 kW at the inverter (the “Solar
Park”);
|
|
(ii)
|
a
maintenance agreement (the “Maintenance Agreement”)
for the performance by Contractor of the maintenance Work relating to the
Solar Park.
|
II.
|
In
order to finance, among other things, the payments that are the
responsibility of the Owner under the Construction Contract, the Owner has
entered into the following contracts, on even date herewith, registered as
public instruments before the Madrid Notary Mr. [l];
|
|
(i)
|
a
credit agreement in the maximum amount of [l] euros
(hereinafter, the “Credit
Agreement” or the “Loan”) with the Agent
and [l].
|
|
(ii)
|
an
interest rate hedge agreement (CMOF) and its corresponding Schedule with
[l], to cover
interest rate fluctuation risks relating to the Loan (hereinafter, the
master agreement and its Schedule together with the confirmations to be
executed in connection therewith, the “Interest Rate Hedge
Agreement”).
|
III.
|
To
guarantee the Owner’s obligations under the Credit Agreement and the
Interest Rate Hedge Agreement (hereinafter, collectively, the “Guaranteed Contracts”)
the Owner has granted on even date herewith (among others) a pledge
agreement, registered as a public instrument with the Madrid Notary Mr.
[l], pursuant
to which the rights under the Construction Contract and the Maintenance
Agreement (among others) were pledged to the Financial Institutions (the
“Pledge”).
|
IV.
|
In
consideration of the premises, and as a fundamental condition to the
execution of the Guaranteed Contracts by the Financial Institutions, the
Parties have agreed to execute this Contract whereby the Contractor
assumes certain obligations to the Financial Institutions with respect to
the Construction Contract, the Maintenance Agreement and the Guaranteed
Contracts, as follows.
|
1.
|
DEFINED
TERMS
|
2.
|
PLEDGE
|
(1)
|
The
Contractor hereby pledges all rights to receive payment from the Owner
under the Construction Contract and the Maintenance
Agreement.
|
(2)
|
As
a consequence of the foregoing, except in the event of receipt of a
written notice from Agent that the Pledge has been cancelled, the
Contractor agrees:
|
|
(i)
|
not
to convey or create any type of pledge, charge, lien or other security
right over the Contractor’s rights to receive payments under the
Construction Contract or the Maintenance Agreement, without the express
prior written approval of the
Agent;
|
|
(ii)
|
not
to honor any notice or instruction from the Owner that contravenes or
modifies the terms of the Pledge or of this
Contract;
|
|
(iii)
|
to
immediately notify the Agent of any breach by the Owner of its obligations
under the Construction Contract or the Maintenance
Agreement;
|
|
(iv)
|
to
pay any amounts payable by the Contractor to the Owner under the
Construction Contract or the Maintenance Agreement to the Owner’s account
no. [l] (the
“Principal
Account”), or to such other separate account as the Agent and the
Owner may jointly specify in writing. The Contractor acknowledges and
agrees that a payment made to any other current account or made in any
other manner shall not be considered a full discharge for the
Contractor;
|
|
(v)
|
upon
receipt of written notice from the Agent declaring the enforcement of the
Pledge, to deposit or transfer all funds relating to the payment rights
under the Construction Contract and/or the Maintenance Agreement in favor
of the Agent to the account designated by the Agent in
writing.
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
(1)
|
The
Contractor agrees to provide notice to the Financial Institutions (through
the Agent) of the occurrence of any event of early termination of the
Construction Contract and/or the Maintenance Agreement, or of its own
intention to terminate either of such Contracts, by sending to the Agent a
copy of any notice sent to the Owner (which shall include, at a minimum,
the proposed date of termination of the Construction Contract and/or the
Maintenance Agreement –subject to the terms of subsection (2) below- and
the Contractor’s stated basis for such
termination).
|
(2)
|
The
Contractor acknowledges agrees that it may not, under any circumstances,
terminate the Construction Contract or the
Maintenance Agreement without first giving notice to the Agent
as provided for in the above subsection, and that, during the period from
the Agent’s receipt of such notice until fifteen (15) calendar days from
the date on which the Agent received such notice, the Agent may (but is
not so obligated), with the prior approval of the Financial Institutions
in accordance with the agreed majority voting percentages agreed to among
the Financial Institutions, take such measures as are necessary or
advisable to cure or eliminate such event of early termination under the
Construction Contract and/or the Maintenance
Agreement.
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL ADVISOR
|
|
(i)
|
it
may not agree to any change to the Construction Contract or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clauses 2.4(4), 5.1(3) and 6.5(3) of the Construction
Contract without receiving the prior approval of the Financial
Institutions (the foregoing is without prejudice to the Contractor’s
rights under such Clauses);
|
|
(ii)
|
except
with respect to the assumed consent contemplated by Clause 4.3 of the
Construction Contract, the approval of the Technical Advisor must be
obtained in order for the Owner to approve a Payment Milestone
contemplated by such Clause;
|
|
(iii)
|
the
Technical Advisor must be present to observe the performance of the
Performance Tests, the Overall Test, the Production Tests and the
inspections required for execution of the Solar Facilities Provisional
Acceptance Certificates, the Solar Park Provisional Acceptance
Certificate, and the Final Acceptance Certificate, in accordance with the
notice periods set forth in Clauses 5.2 (1), 8.4(2) and 9(1) of the
Construction Contract. The periods provided for in such Clauses may not
begin to run if the Technical Advisor has not been invited to observe
within the notice periods provided in such Clauses. Results of
tests and inspections referred to in this subsection that were obtained
prior to the expiration of such periods and without the presence of the
Technical Advisor shall be invalid. However, the Technical Advisor’s
failure to attend despite having been duly invited in the manner and
within the notice periods provided for in this subsection shall not delay
the periods provided for in the Construction Contract for such tests and
inspections, nor shall it invalidate the results of the
same;
|
|
(iv)
|
except
as provided for in Clause 5.2(4) of the Construction Contract, the
execution of the Solar Facilities Provisional Acceptance Certificates, the
Solar Park Provisional Acceptance Certificate, and the Final Acceptance
Certificate must be accompanied by the approval of the Technical
Advisor;
|
|
(v)
|
the
Technical Advisor shall have the power the inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 6.2 of the Construction
Contract;
|
|
(vi)
|
the
Technical Advisor must approve quality controls for the solar modules and
has the authority to inspect such quality controls in order to confirm its
approval; and
|
|
(vii)
|
an
order to suspend the Work by the Owner pursuant to Clause 13.1 of the
Construction Contract shall not be valid unless it has been countersigned
by the Agent on behalf of the Financial
Institutions.
|
|
(i)
|
it
may not agree to any change to the Maintenance Agreement or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clause 2.4 of the Maintenance Agreement without first
receiving the prior approval of the Financial Institutions (the foregoing
is without prejudice to the Contractor’s rights under such Clause
2.4);
|
|
(ii)
|
the
Technical Advisor must receive the data and registrations at least fifteen
(15) calendar days in advance to make the availability calculations
referred to in Clause 7 of the Maintenance
Agreement;
|
|
(iii)
|
the
Technical Advisor shall have the authority to inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 4(ii) of the Maintenance
Agreement.
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT
|
6.
|
ASSIGNMENTS
|
6.1
|
Assignment
by the Financial Institutions
|
|
This
Contract is delivered for the benefit of the Financial Institutions, and
therefore inures to the benefit of their successors or assigns permitted
under the Guaranteed Contracts. Therefore, in the event of an assignment,
in whole or in part, of the interest of a Financial Institution under the
Guaranteed Contracts, or the replacement of the Agent under the terms of
the Credit Agreement, all references made in this public document to the
Financial Institutions and the Agent shall be understood to include
reference to their respective successors or assigns. An assignee must
present its position to the Contractor and the Owner, upon request, by
delivery of a copy of the document through which such assignment or
replacement of the Agent is made. However, the Agent must inform the
Contractor of its replacement with sufficient advance notice to permit the
Contractor to comply with its obligations under the Construction Contract,
the Maintenance Agreement and this
Agreement.
|
6.1
|
Assignment
by the Contractor
|
7.
|
NOTICES
|
(1)
|
Except
as otherwise expressly provided for, all notices and communications
between the Parties for the purposes of this Agreement shall be made in
writing, by certified mail, telegram with confirmed receipt, or for urgent
matters, by fax with a confirmation letter to be sent within the following
five (5) calendar days.
|
(2)
|
All
notices, requirements or other communications to the Financial
Institutions must be delivered to the Agent (notice to the Financial
Institutions shall be considered effective upon receipt by the
Agent).
|
(3)
|
The
Parties designate the following addresses for notice, communications and
routine matters:
|
|
The
Agent:
|
|
[l]
|
|
Fax:
|
+34
[l]
|
|
Attention:
Mr. [l]
|
(4)
|
Any
changes to the above addresses must be communicated to the other Parties
by certified mail, and shall only take effect as of the date that the
other Party receives such notice.
|
8.
|
LAW
AND JURISDICTION
|
9.
|
TERM
|
10.
|
TAXES
AND EXPENSES
|
MORALAS
RENOVABLES, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
|
CAJA
CASTILLA LA MANCHA
|
***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
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***
|
1.
|
DEFINITIONS
|
4
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
9
|
2.1
|
Purpose
of the Contract
|
9
|
2.2
|
Scope
of Work
|
10
|
2.3
|
Exclusions
|
11
|
2.4
|
Changes
in the Scope
|
11
|
3.
|
COMMENCEMENT
OF WORK
|
12
|
4.
|
PRICE
AND FORM OF PAYMENT
|
14
|
4.1
|
Contract
Price
|
14
|
4.2
|
Payment
Milestones
|
15
|
4.3
|
Invoicing
System and Form of Payment
|
16
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL ACCEPTANCE
|
18
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
18
|
5.2
|
Performance
Tests and Provisional Acceptance
|
19
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
20
|
6.1
|
Prevention
of Occupational Risks
|
20
|
6.2
|
Obligation
to Provide Access to the Site
|
21
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
22
|
6.5
|
Regulatory
Compliance
|
22
|
6.6
|
Permits
and Authorizations
|
23
|
6.7
|
Training
of the Owner’s Personnel
|
24
|
6.8
|
Designation
of Project Director
|
24
|
6.9
|
Taxes
and Import Duties
|
25
|
6.10
|
Intellectual
and Industrial Property Rights
|
25
|
6.11
|
Cooperation
|
26
|
7.
|
OBLIGATIONS
OF THE OWNER
|
26
|
8.
|
GUARANTEES
|
27
|
8.1
|
Solar
Module Degradation Guarantee
|
27
|
8.2
|
Solar
Module Capacity Guarantee
|
27
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
28
|
8.4
|
Solar
Park Production Guarantee.
|
31
|
8.5
|
Bonds
|
32
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
33
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF RISK
|
34
|
11.
|
INSURANCE
|
34
|
12.
|
FORCE
MAJEURE
|
35
|
13.
|
SUSPENSION
OF THE WORK
|
37
|
13.1
|
Suspension
by the Owner
|
37
|
13.2
|
Suspension
by the Contractor
|
38
|
13.3
|
Suspension
by Judicial or Governmental Authority
|
39
|
14.
|
TERMINATION
|
39
|
14.1
|
Termination
for Causes Attributable to the Contractor
|
39
|
14.2
|
Termination
by the Contractor
|
44
|
14.3
|
Termination
due to Force
Majeure
|
45
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
45
|
15.1
|
Assignment
|
45
|
15.2
|
Subcontracting
|
46
|
16.
|
LIABILITY
AND DAMAGES
|
47
|
17.
|
OWNER
FINANCING
|
48
|
18.
|
CONFIDENTIALITY
|
49
|
19.
|
NOTICES
|
50
|
20
|
LAW
AND JURISDICTION
|
51
|
(A)
|
NATURENER SOLAR TINAJEROS,
S.L.U (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number B-85128781 herein represented
by Dr. Rafael Sánchez Lodares, with National Identity Document (DNI) No.
403893-J and Mr. Juan Francisco Quiroga Fernández-Ladreda, with National
Identity Document (DNI) No. 32.760.974-G, pursuant to the powers conferred
upon them pursuant to a public instrument executed before Ms. Maria del
Rosario Algora Wesolowski, a Madrid notary, and recorded in her
notarial protocol under No. 4.551.
|
(B)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid at calle Pradillo nº 5, herein represented by
Mr. Marco Antonio Northland, bearing U.S. Passport No. 047605878, in his
capacity as attorney-in-fact of such entity pursuant to a public
instrument executed before Mr. Ignacio Martínez Gil-Vich, a Madrid notary,
on November 28, 2006, and recorded in his notarial protocol under No.
4.551.
|
(1)
|
The
Owner is interested in promoting the installation and operation of a solar
park in Albacete, consisting of one hundred (100) Solar Facilities having
between 115 and 122 kWp of peak power and 100 kWe at the
inverter.
|
(2)
|
Tthe
Contractor is dedicated to the construction and start-up of facilities of
this type, and intends and has the capacity to construct the Solar Park in
accordance with the specifications of this
Contract.
|
(3)
|
The
Owner will partially finance the payment of the Contract Price through
financing to be made available to the Owner by one or more credit
providers (the “Financial
Institutions”).
|
(4)
|
***
|
(5)
|
Now,
therefore, the Parties mutually acknowledging the legal capacity required
to enter into contract and bind themselves, agree to execute this
"turnkey" construction contract (hereinafter, the “Contract”) in accordance
with the following:
|
1.
|
DEFINITIONS
|
-
|
Final Start-Up Certificate or
Final Start-Up: means the governmental certificate referred to in
Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1, with
respect to each of the Solar Facilities and the Electrical Infrastructure,
which allows for the commencement of the commercial operation thereof,
including, for the purposes of this Contract, obtaining the final
registration of each of such Solar Facilities and Electrical
Infrastructures with the Register of Power Facilities included within the
Special Regime (Registro
Administrativo de Instalaciones de Producción de Energía en Régimen
Especial), pursuant to the provisions of Section 12 of Royal Decree
661, which grants to the corresponding facilities the status of a
production facility accepted under the special regime, in accordance with
the terms of this contract.
|
-
|
Direct Agreement: the
agreement executed among the Contractor, the Owner and the agent for the
institutions providing financing to the Owner, for purposes of, among
other things, making the payments contemplated in this Contract, pursuant
to the provisions of Clause 17.
|
-
|
Scope of Work: the
entirety of all services, supplies and work that the Contractor must
provide under this Contract in accordance with the provisions of Clause
2.2 and the specific details contained in Annex
2.
|
-
|
Insurance Advisor: means
Willis or any other insurance advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
|
-
|
Legal Advisor: means
Gómez-Acebo & Pombo, S.L. Ramón & Cajal Attorneys or any other
legal advisor that the Financial Institutions may designate in the context
of the financing of the Solar Park
|
-
|
Technical Advisor: means
Sylcom Solar or any other technical advisor appointed by the Financial
Institutions in the context of the financing of the Solar
Park.
|
|
-
|
Performance Bond: means
the bond payable on demand to be delivered by the Contractor in accordance
with the provisions of Clause 8.5 to guarantee the performance of its
contractual obligations and which shall be effective as from delivery
thereof to the Owner in accordance with the provisions of this contract
until the execution of the Solar Park Provisional Acceptance
Certificate.
|
|
-
|
Guarantee Bond: means
each of the bonds payable on demand to be delivered by the Contractor in
accordance with the provisions of Clause 8.5 to guarantee the performance
of its contractual obligations during the Guarantee Period, which shall be
effective as from the execution of the Solar Park Provisional Acceptance
Certificate through the execution of the Final Acceptance
Certificate.
|
-
|
Final Acceptance Certificate
(FAC): means the certificate that shall be executed by the Parties
at the end of the Guarantee Period to attest to the final acceptance of
the Solar Park by the Owner.
|
|
-
|
Solar Park Provisional
Acceptance Certificate (Park PAC): means the certificate that shall
be executed by the Parties concurrently with the execution of the
Provisional Acceptance Certificate for the last Solar Facility forming a
part of the Solar Park, to evidence the proper operation of the Solar Park
as a result of the Overall Test of all Solar Facilities and the Electrical
Infrastructure, as well as the Contractor’s compliance with the
obligations set forth in this Contract, without prejudice to the
provisions established for the Guarantee
Period.
|
-
|
Solar Facility Provisional
Acceptance Certificate (Facility PAC): means the certificate that
shall be executed by the Parties to evidence the proper operation of the
equipment as a result of the Performance Tests for each of the Solar
Facilities (including the Electrical Infrastructure associated with each
Solar Facility) and the Contractor’s compliance with the obligations set
forth in this Contract, without prejudice to the provisions established
for the Guarantee Period. In order to issue
a Provisional Acceptance Certificate for a Solar Facility,
proper operation of the General Electrical Infrastructure in order to meet
the installed capacity of the Solar Facilities in operation at such time
must also be verified.
|
-
|
Contractor: means
SUNPOWER ENERGY SYSTEMS SPAIN, S.L. and any other
company that may succeed it in its obligations in accordance with the
provisions of this Contract.
|
|
-
|
Contract: means this
contract together with the Annexes hereto. In the event of conflict
between the body of this Contract and one or more of the Annexes, the body
of this Contract shall prevail.
|
|
-
|
Maintenance Agreement:
means the Maintenance Agreement entered into by the Contractor and
the Owner on even date herewith, providing for the assumption by the
Contractor of the maintenance work for the Solar Park upon execution of
the Solar Park Provisional Acceptance
Certificate.
|
-
|
Systemic Defect: is an
operational failure of the Solar Facilities of the Solar Park occurring
during the Production Guarantee Period that (i) is not caused by
non-conforming performance of the Work by the Contractor under this
Contract, the Technical Specifications, the Construction Model or the
regulations applicable to the Work (in accordance with the terms of this
Contract), and (ii) that
|
|
§
|
is
the same failure or is a failure that affects, at least: 0.5% of the solar
modules, 10 or more inverters or their corresponding peripheral systems,
10 or more trackers, or 4 or more transformers (including breakers and
switches) supplied by the same manufacturer for the Solar Park;
or
|
|
§
|
the
relevant supplier or well-known independent third party in the solar
industry reports that at least 1% of worldwide production of the
corresponding model of solar module, inverter, tracker or transformer is
affected by the same operational failure and advises replacement thereof
(in which event the Owner must receive proof in the form of delivery of a
document signed by the manufacturer or of a report from an
independent third party which confirms the existence of said systemic
failure with reference to the model and series of the affected
equipment).
|
-
|
Business Day: means any
day other than a bank holiday in Madrid and Albacete, with the express
provision that Saturday is not a Business
Day.
|
-
|
Financial Institutions:
has the meaning set forth in the Recital
(3).
|
-
|
Site: means parcel 36,
polygon 27, in the municipality of Albacete, as identified in Annex 13.
|
-
|
Authorized Equipment:
means the list of brands and models of the principal equipment or elements
that will make up the Solar Facilities and the Electrical Infrastructures
described in Annex
8 hereto.
|
|
-
|
-
|
Technical Specifications:
means the technical conditions for executing the Work that were
prepared by the Contractor and delivered to the Owner, and that make up
Annex
2.
|
-
|
Delivery Deadline: means
July 15, 2008.
|
-
|
***
|
-
|
***
|
-
|
Payment Milestones:
means the milestones for the payment of the Contract Price, as described
in Clause 4.2 below.
|
-
|
Specific Electrical
Infrastructure: means the entirety of
the electrical elements permitting the evacuation to the distribution grid
of the electrical power produced by each of the Solar Facilities,
including from the Solar Facilities to the specific transformer center for
such Solar Facility.
|
-
|
General Electrical
Infrastructure: means the entirety of
the electrical elements permitting the connection of each of the Solar
Facilities, from the specific transformer center, in order to permit the
evacuation of electrical power generated by each Solar Facility to the
distribution grid, including the Evacuation Line, the distribution and
sectioning center and supplemental
elements of supervision, monitoring and data
collection.
|
-
|
Electrical
Infrastructure: collectively, the General Electrical
Infrastructures and the Specific Electrical
Infrastructures.
|
-
|
Solar Facility: means
the entirety of the electromechanical elements that allow for the
generation of low voltage (“LV”) electrical power, including from the
solar modules themselves, solar trackers, and inverters, to the LV meter,
with a peak unit capacity of between 115 and 122
kWp.
|
-
|
Evacuation Lines: the 20
kV output electrical evacuation line of the distribution center of the
General Electrical Infrastructure, necessary to connect such
Infrastructures to the substation of the power distribution company
(Iberdrola) in Albacete.
|
-
|
Change Order: means a
document signed by the Contractor and the Owner pursuant to which a change
is agreed upon in the Scope of Work, the Contract Price or the Execution
Schedule, or any other modification, as provided in this
Contract.
|
-
|
Solar Park: means the
entirety of the one hundred (100) Solar Facilities having between 115 and
122 kWp of peak capacity and 100 kWe at the inverter, that must reach a
total peak capacity of 11.85 MWp, located at the Site, including the
Electrical Infrastructure and any other facilities that, in accordance
with the terms of this Contract, may be necessary for its
Start-Up.
|
-
|
Guarantee Period: means
the period between the signing of the Provisional Acceptance Certificate
for the first Solar Facility until satisfaction of the conditions for the
execution of the Final Acceptance
Certificate.
|
-
|
Production Guarantee Period:
means the period between Start-up of the Solar Park until ***
following execution of the Solar Park Provisional Acceptance
Certificate.
|
-
|
Contract Price: The
price payable by the Owner to the Contractor for the performance of the
obligations contained in this Contract, the amount of which is set forth
in Clause 4 of the Contract. For purposes of this Contract, the
price corresponding to an individual Solar Facility shall be the amount
obtained by dividing the total Contract Price by the one hundred (100)
Solar Facilities.
|
-
|
Implementation Schedule:
means the schedule for the implementation of the Scope of Work,
which is attached as Annex
3 to this Contract.
|
-
|
Owner: means
NATURENER SOLAR TINAJEROS, S.L.U, as well as any
company subrogating to its contractual position in accordance with the
provisions of this Contract.
|
-
|
Overall Test: means the
test described in Annex
4, to be performed as a prerequisite to the execution of the Solar
Park Provisional Acceptance Certificate to verify the proper operation of
all Solar Facilities and the Electrical Infrastructure. The Overall Test
will definitively verify the proper operation of the General Electrical
Infrastructure to absorb the power discharged by all Solar
Facilities.
|
-
|
Performance Tests: means
the tests described in Annex
4, to be performed as a prerequisite to the execution of each Solar
Facility Provisional Acceptance Certificate to verify the proper operation
of the corresponding Solar Facility and Electrical Infrastructures.
Pursuant to the provisions of Clause 5.2(1), each Performance Test will be
performed on a minimum of ten (10) Solar Facilities (with their
corresponding Electrical
Infrastructures).
|
-
|
Production Tests: means
the tests that will be performed at the end of the Production Guarantee
Period in order to determine compliance with the Production Guarantee set
forth in Clause 8.4, following the protocols set forth in Annex
4.
|
-
|
Start-up: means, with
reference to a particular Solar Facility and/or Electrical Infrastructure,
the point when all of the work required by this Contract has been
completed and all Performance Tests have been passed in accordance with
this Contract and the Annexes hereto, the Provisional Acceptance
Certificate has been executed and the Owner has received the corresponding
Final Start-up Certificate (as confirmed by the Legal Advisor). Reference
to Start-up of a Solar Park shall be understood to mean the point when all
Solar Facilities and corresponding Electrical Infrastructures have passed
the Overall Tests and comply with the above referenced
requirements.
|
-
|
RD 661: Royal Decree No.
661/2007, of May 25, which regulates activities involving the production
of power under special regime.
|
|
-
|
Subcontractors: means
the subcontractors with which the Contractor subcontracts all or part of
the works to be executed under this
Contract.
|
-
|
Work: means the work and
supplies to be provided by the Contractor pursuant to the provisions of
this Contract.
|
2.
|
PURPOSE
AND SCOPE OF WORK
|
2.1
|
Purpose
of the Contract
|
The
purpose of this Contract is the construction, start-up and delivery of the
Solar Park to the Owner pursuant to the terms set forth in this Contract
such that, upon issuance of the Final Start-up Certificate, the production
of power and sale thereof to the electric distribution grid may commence,
in accordance with applicable law and the Technical
Specifications.
|
2.2
|
Scope
of Work
|
(1)
|
According
to the terms and conditions of this Contract, the Contractor shall carry
out and shall be responsible for all of the equipment, services, supplies
and work comprising the Scope of Work. The Scope of Work includes each of
the following concepts, as well as all acts that, even if not expressly
mentioned in this Contract or in Annex
2, are necessary for the proper operation, performance and
commercial exploitation of the Solar Park, in each case in accordance with
the customary usage and practices in the industry for a project having
these characteristics, this Contract, the Technical Specifications, and
applicable law (without prejudice to the provisions of Clause
2.4(4)):
|
|
§
|
Design,
engineering (basic and detailed) and required technical
schedules.
|
|
§
|
Execution
of all aspects of the Scope of Work and the supply of all materials,
elements and equipment set forth in Annex
2, and the supply of all materials necessary and appropriate to
properly carry out the Scope of
Work.
|
|
§
|
Performance
of inspections, inventory of materials, performance controls, tests and
other analyses required under applicable law and in accordance with the
technical specifications and this
contract.
|
|
§
|
Transportation
to the Site of all materials, equipment, utilities, spare parts,
consumables and machinery for which the Contractor is responsible under
the Contract.
|
|
§
|
Direct
and indirect labor necessary to carry out the Scope of Work and all costs
and social charges associated with such
labor.
|
|
§
|
Demolition
and dismantling of the provisional facilities not required by the Owner
and conditioning and cleaning of the Site following issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Maintenance,
protection, security, custody and conservation of the equipment installed
or stored at the Site up to the signing of the Solar Park Provisional
Acceptance Certificate.
|
|
§
|
Preparation
and delivery to the Owner of all documentation within the scope of this
Contract, sufficiently in advance for the utilization thereof by the
Owner. In particular, the delivery of the documentation and manuals set
forth in Annex
2.
|
|
§
|
***
|
|
§
|
Training
of the Owner’s personnel in the operation and maintenance of the materials
and equipment acquired in accordance with the terms of Clause 6.7 of this
Contract.
|
|
§
|
Construction
of all necessary auxiliary facilities, their maintenance, cleaning and
security during the performance of the Work, including that performed in
compliance with the regulations for the Prevention of Occupational Risks
and the Social Security and Health Plan; as well as the demolition or
dismantling of any temporary facilities not required by the Owner and the
conditioning and clearing of the Site following the issuance of the Solar
Park Provisional Acceptance
Certificate.
|
|
§
|
Supply
of spare parts pursuant to the provisions of Clause
6.3.
|
|
§
|
Provision
of material and human resources required to comply with the regulations
for the Prevention of Occupational Risks and the Social Security and
Health Plan, as well as the creation of the Social Security and Health
Plan.
|
2.3
|
Exclusions
|
2.4
|
Changes
in the Scope
|
(1)
|
Under
no circumstances may the Parties make any changes to the Scope of Work
contemplated by this Contract (of any kind, whether for expansions,
reductions or changes to any portion of the work and/or the items supplied
under this Contract), unless a Change Order has previously been
signed.
|
(2)
|
At
any time prior to Provisional Acceptance, the Owner may propose a change
to the Scope of Work by sending the Contractor a notice describing the
nature and scope of the change. Upon receipt of such notice, the
Contractor must send to the Owner, within a maximum period of ten (10)
Business Days, a communication that includes a complete proposal for the
changes in the Contract Price, deadlines and form of payment, or any other
changes that may be necessary in connection with the changes proposed by
the Owner. This communication shall also include a reasoned explanation of
the grounds and/or criteria used for the calculation of the new Contract
Price and/or deadline. However, the Contractor recognizes that in
accordance with the Direct Agreement, the approval of the Financial
Institutions is an essential requirement for the validity of the
changes.
|
(3)
|
Without
prejudice to the terms of the Direct Agreement, the Contractor may, at any
time during the performance of the Contract, propose changes to the Scope
of Work that it deems necessary or appropriate to improve the quality,
efficiency or safety of the Solar Park or the facilities or supplies that
make up the Solar Park. The Owner, at its discretion, may approve or
reject the changes proposed by the Contractor. The Parties will
execute a Change Order in the event that the modifications are approved by
the Owner.
|
(4)
|
In
addition, upon the entry into force, promulgation, derogation or change of
any mandatory legal provision after the execution of this Contract that
affects the Work, the Parties shall sign a document governing the changes
that must be made to the purpose of this
Contract.
|
(5)
|
The
Owner and the Contractor shall negotiate in good faith the effects on the
deadlines agreed to under this Contract that might occur as a result of
the changes requested within the context of the provisions of this Clause.
In any event, the prices applicable to any change in the Scope of Work
shall consist of the costs of the additional work or supplies arising
therefrom (reasonably justified to the Owner) plus ***% as the
Contractor’s margin.
|
3.
|
COMMENCEMENT
OF WORK
|
(1)
|
The
Parties agree that the payment by Owner of the amount set forth in Clause
4.2(i) and the delivery by the Contractor of the Performance Bond and the
Corporate Guarantee are subject only to the delivery by the Owner to the
Contractor of a letter signed by the Financial Institutions in the form of
Annex
12 confirming the availability of the financing and the
satisfactory receipt by the Contractor of the permits and authorizations
delivered by the Owner in accordance with the terms of subsection (2)(i)
below. The payment by the Owner of the amount in accordance with Clause
4.2(i) and the delivery of the Performance Bond and the Corporate
Guarantee by the Contractor must be made concurrently on a date between
the sixth (6th)
and ninth (9th)
Business Day following the date the Owner notifies the Contractor that the
agreed conditions are satisfied. The date the Owner pays the amount
pursuant to Clause 4.2(i) to the Contractor and the Contractor delivers
the Performance Bond and the Corporate Guarantee shall be hereinafter
referred to as the “Condition Satisfaction
Date.”
|
(2)
|
By
executing this Contract, the Owner hereby represents to the Contractor as
follows:
|
|
(i)
|
It
has obtained all authorizations and licenses necessary for the
commencement of construction for the Solar Park, except those that are
intrinsic to the construction itself and that are the responsibility of
the Contractor in accordance with the terms of Clause 6.6 (having
delivered to the Contractor a copy of those that are the responsibility of
the Owner). For purposes of clarification, the Owner has obtained the
municipal licenses for the work and related activities (to the extent
necessary), as well as the administrative authorization, the approval of
the Electrical Infrastructures Plan and the interconnection point of the
Solar Facilities and has delivered to the Contractor a confirmation issued
by the Council for the Environmental and Rural Development (Consejería de Medio Ambiente y
Desarrollo Rural) of Castilla La Mancha that an Environmental
Impact Statement is not required with respect to any of the Solar
Facilities of the Solar Park; and
|
|
(ii)
|
The
Site is fully accessible and available for the commencement of
Work.
|
(3)
|
In
the event that (a)
the letter relating the financing described in subsection (1) has not been
delivered by November 23, 2007, (b) the Condition
Satisfaction Date has not occurred by the tenth Business Day following the
date the Owner delivered such letter to the Contractor, or (c) the Contractor has
not received documentary evidence of the receipt of the permits and
authorizations referred to in subsection (2)(i) above (or an agreement has
not have been reached with respect to the changes required by the
conditions imposed in such licenses and authorizations) prior to November
23, 2007, the Contractor and the Owner may terminate the Contract by
delivery to the other Party of a notice setting forth its desire to
terminate the Contract, and the Parties shall be released from all
obligations assumed with respect thereto. The foregoing shall
be without prejudice to the purchase orders or requests that the Parties,
or companies belonging to their groups, shall have already made or agreed
to, as of or following the execution of this Contract. Such purchase
orders or requests shall continue in force and effect in accordance with
their terms unless the Owner elects to cancel them, in which case the
Owner shall pay the Contractor any cancellation costs that the Contractor
or any company in its group must pay to any distributor or manufacturer
with respect to such orders.
|
|
However,
the Contractor may not terminate the Contract if the Owner has confirmed
its intention and ability to make the payment described in Clause 4.2(i)
and the Condition Satisfaction Date has not have occurred due to the
Contractor’s failure to deliver the Performance Bond and the Corporate
Guarantee.
|
(4)
|
The
Contractor represents that, prior to the execution of this Contract, it
has studied the subterrain, surroundings and access
thereto.
|
|
However,
the Parties expressly agree that the discovery of archeological ruins at
the Site shall be considered an event of Force Majeure in accordance with
the terms of the Contract, with application of the provisions of Clause
12.
|
4.
|
PRICE
AND FORM OF PAYMENT
|
4.1
|
Contract
Price
|
(1)
|
The
Contract Price payable by the Owner to the Contractor in consideration for
the works to be performed by Contractor under this Contract shall be ***
Euros. This amount shall be increased by an amount corresponding to Value
Added Tax (VAT) pursuant to applicable law at any given time. The
Contractor hereby acknowledges and agrees that the Contract Price is a
lump-sum, fixed, and final price, and is not subject to any change or
revision whatsoever on the basis of any changes in the prices of labor,
materials, equipment, exchange rates or any other similar items, including
a change in any taxes levied on the scope of the
work.
|
(2)
|
The
Contract Price includes all the costs and expenses associated with the
Contractor’s performance of work under the Contract, including those
specifically set forth in the Scope of Work. The Contract Price shall be
deemed to include, by way of
example:
|
|
§
|
taxes,
fees, industrial- and intellectual-property royalties on the equipment
supplied, Social Security and other encumbrances upon the supplied
equipment and materials in their country of origin or destination,
including, if applicable, the rights of free circulation in the European
Union and any other tax with respect to the importation of the Equipment
and the performance of the Work, except for the VAT on the actual Contract
Price. For purposes of clarification, the Price does not include
legalization fees or costs for permits and authorizations, which are the
responsibility of the Owner.
|
|
§
|
payroll
costs and the cost of equipment required for the Contractor’s performance
of the Work or to ensure the protection, security and proper performance
thereof.
|
|
§
|
the
cost of any insurance that must be taken out by the Contractor pursuant to
Clause 11.
|
(3)
|
In
the event of changes in the Scope of Work agreed to pursuant to the
provisions of this Contract, the price agreed to in the corresponding
Change Order shall apply.
|
(4)
|
Without
prejudice to the foregoing, in consideration for the maintenance and
security tasks to be performed by the Contractor prior to the execution of
the Solar Park Provisional Acceptance Certificate, the Owner shall pay to
the Contractor (in addition to the Contract Price), the portion of the
price contemplated in the Maintenance Agreement that is equivalent to the
percentage representing the Solar Facilities that have obtained a
Provisional Acceptance Certificate with respect to all Solar Facilities
contemplated by this Contract.
|
4.2
|
Payment
Milestones
|
|
The
Contract Price shall be paid by the Owner to the Contractor pursuant to
the payment schedule set forth below (each of the milestones set forth
below shall be deemed a “Payment
Milestone”):
|
|
(i)
|
On
the Condition Satisfaction Date, an amount equal to ***% percent of the
Contract Price, i.e., *** euros, upon delivery of the Performance Bond by
the Contractor.
|
|
(ii)
|
Based
on the monthly progress of the civil works involving earth moving,
leveling and foundation laying, measured as 100 kWe Solar Facilities whose
foundations are completed, the Owner will pay up to a maximum of ***
percent (***%) of the Contract Price, i.e., *** euros, upon presentation
of the respective invoices by the
Contractor.
|
|
(iii)
|
Upon
each delivery to the Site of the module supports, inverters and trackers
of each Solar Facility and presentation of the corresponding invoices not
earlier than two (2) months prior to the dates indicated in the
Implementation Schedule, the Owner shall pay up to a maximum of *** (***%)
percent of the Contract Price corresponding to such Solar
Facilities.
|
|
(iv)
|
Upon
each delivery of the solar modules of each Solar Facility to the Site and
upon presentation of the corresponding invoices not earlier than the dates
indicated in the Implementation Schedule, the Owner shall pay up to a
maximum of *** (***%) percent of the Contract Price corresponding to such
Solar Facilities.
|
|
(v)
|
Based
on the monthly progress of the mechanical assembly of the module supports,
solar trackers and the modules mounted thereon, as well as the
installation of the inverters and the transformer center, measured as
Solar Facilities of 100 kWe whose facilities up to the transformer center
have been completed, the Owner will pay up to a maximum of *** (***%)
percent of the Contract Price, upon presentation of the respective
invoices.
|
|
(vi)
|
Upon
the execution of each Provisional Acceptance Certificate for a Facility,
the Owner shall pay *** (***%) percent of the Contract Price corresponding
to such Solar Facility (together with the remaining portion of the
Contract Price, if any, that was not previously paid and that corresponds
to Work completed by the Contractor under this Contract in respect of such
Solar Facility). The last Solar Facility payment shall be made
concurrently with the execution of the Solar Park Provisional Acceptance
Certificate.
|
4.3
|
Invoicing
System and Form of Payment
|
(1)
|
Once
the Contractor deems that a Payment Milestone has been achieved, the
Contractor shall give written notice thereof to the Owner and the
Technical Advisor, attaching thereto the invoice and any documentation
that may be necessary to demonstrate achievement of the corresponding
Payment Milestone (including, for this purpose, all of the documentation
that must be furnished by the Contractor to the Owner at any time,
pursuant to the provisions of Annex
2).
|
(2)
|
Within
fifteen (15) Business Days following receipt of the above-mentioned
notice, the Owner and the Technical Advisor shall confirm the achievement
of the corresponding Payment Milestone. Within such period, the Owner and
the Technical Advisor shall communicate in writing to the Contractor:
(i) their
agreement that the corresponding Payment Milestone has been achieved, in
which case the Owner and the Technical Advisor shall provide documentary
confirmation by approving the corresponding invoice, or (ii) that the Payment
Milestone has not been fully achieved, in which case the Owner and/or the
Technical Advisor must specify in writing to the Contractor a
detailed and reasoned explanation of the work pending performance in order
for the Payment Milestone to be deemed to have been
achieved. In the event that the Owner and/or the Technical
Advisor fail to respond to the Contractor within the above-mentioned
period of fifteen (15) Business Days, due solely to the failure of the
Contractor to provide all documentation required to verify achievement of
the Payment Milestone, the Owner and the Technical Advisor agree to
request the same within the above period of fifteen (15) Business Days.
The Owner and the Technical Advisor will be allotted another ten (10)
Business Days to issue their response, counting from the date of receipt
of all requested documentation.
|
(3)
|
If
the Owner and/or the Technical Advisor do not agree that a Payment
Milestone has been achieved, the Owner shall be entitled to return the
corresponding invoice until the Contractor has completed the work in
accordance with the provisions of this Contract. However, if the Parties
agree that the disagreement involves only part of the work included in the
Payment Milestone, the Owner shall pay the invoice amounts corresponding
to the work not affected by the dispute, with the rest remaining subject
to full performance and delivery by the Contractor in accordance with the
terms of this Contract.
|
(4)
|
If,
following the period referred to in subsection (2) above, the Owner and/or
the Technical Advisor have not responded, the Contractor may send a demand
notice to the Owner and the Technical Advisor communicating such fact and
allowing an additional period of five (5) Business Days for confirmation
of their agreement or disagreement as to the achievement of the respective
Payment Milestone. If, upon expiration of such period, the Owner and/or
the Technical Advisor still have not responded, achievement of the Payment
Milestone shall be deemed accepted by the Owner and the Technical
Advisor.
|
(5)
|
Under
no circumstances shall the Owner’s or the Technical Advisor’s agreement to
a Payment Milestone imply acceptance of the Work associated therewith,
which acceptance shall in any event remain conditioned upon passing the
Performance Tests and executing the respective Provisional Acceptance
Certificate and, ultimately, the Final Acceptance
Certificate.
|
(6)
|
Payments
shall be made by the Owner to the Contractor via bank transfer to the bank
account designated by the Contractor within *** Business Days following
the date on which the Owner accepted the corresponding Payment Milestone
(or on the date on which the Payment Milestone was deemed accepted by the
Owner, in accordance with subsection (4) above). On an exceptional basis,
the payment corresponding to the first Payment Milestone shall be paid by
the Owner on the Condition Satisfaction Date (with respect to such
payment, approval of a Payment Milestone by the Contractor and the Owner
pursuant to the above provisions is not required)
.
|
5.
|
IMPLEMENTATION
SCHEDULE. TESTS AND PROVISIONAL
ACCEPTANCE
|
5.1
|
Implementation
Schedule. Changes in the Deadline
|
(1)
|
The
Contractor hereby undertakes to perform the Work in accordance with the
Implementation Schedule attached hereto as Annex
3, such that the Solar Park shall have all technical attributes
required for issuance of the Final Acceptance Certificate (and the same
has been requested in accordance with Clause 2.4) no later than the
Delivery Deadline.
|
(2)
|
The
dates for performance specified in the Implementation Schedule and, in
particular, the Delivery Deadline, are fixed and final, and may not be
postponed, and the performance deadlines may not be extended, except under
the following circumstances:
|
|
(i)
|
due
to agreed-upon changes in accordance with the provisions of Clause 2.4,
provided that such changes include an extension of the
deadlines;
|
|
(ii)
|
due
to a breach by the Owner giving rise to a delay in the Work (including,
specifically, delays in procuring authorizations and licenses for which it
is responsible), provided that such breaches are not attributable to
actions, omissions or breaches by the
Contractor;
|
|
(iii)
|
suspension
of the Work in accordance with the provisions of Clause 13, except in the
event of suspensions attributable to the Contractor;
or
|
|
(iv)
|
the
occurrence of an event of Force Majeure that
reasonably justifies an extension of the deadlines established in the
Implementation Schedule.
|
(3)
|
The
Contractor must inform the Owner of the alleged facts or causes, in
writing and within a maximum period of ten (10) Business Days after the
Contractor becomes aware thereof, and the communication must be
accompanied by all available information and data on such date that
substantiate such facts and the consequences thereof on the Work, the
extension (if such extension can be determined) proposed by the
Contractor, and a detailed explanation of the measures adopted to mitigate
the consequences thereof.
|
5.2
|
Performance
Tests and Provisional Acceptance
|
(1)
|
Upon
completion of the construction of a group of at least ten (10) Solar
Facilities, or of the Solar Park, the Contractor shall notify the Owner so
that, within a maximum period of seven (7) Business Days, the Performance
Tests or the Overall Test may be commenced . All Tests shall be conducted
in accordance with the Test procedures and protocols attached hereto as
Annex
4. The Contractor agrees that the Performance Tests and
the procedures set forth in this Clause shall begin only when at least ten
(10) Solar Facilities are ready for provisional
acceptance.
|
(2)
|
Once
the Owner and the Technical Advisor have verified that the Performance
Tests (or, if applicable, the Overall Test) have been passed in accordance
with the standards set forth in this Contract and that the Owner has
received all documentation set forth in the Scope of Work, the Contractor
and the Owner shall execute the corresponding Provisional Acceptance
Certificate for the Solar Facilities delivered or the Provisional
Acceptance Certificate for the Solar Park, as applicable, provided that
the following conditions have been
met:
|
|
a)
|
The
Work corresponding to the applicable Solar Facilities, or, if applicable,
the Solar Park, has been satisfactorily
completed.
|
|
b)
|
All
of the documentation that the Contractor must submit in accordance with
the provisions of Annex
2 has been submitted to the
Owner;
|
|
c)
|
The
spare parts specified in Clause 6.3 have been made available to the
Owner;
|
|
d)
|
With
respect to the Solar Park Provisional Acceptance Certificate, the
Contractor has delivered to the Owner the Guarantee Bond in the amount
specified in Clause 8.5; and
|
(3)
|
The
deadlines granted to the Contractor for completion of pending punch list
items upon execution of a Provisional Acceptance Certificate shall not be
considered an extension of the deadlines set forth in this Contract, and
the Contractor shall indemnify the Owner for any damages that the Owner
may incur as a result thereof pursuant to Clause 5.2(a)
above.
|
(4)
|
In
the event that the Owner does not execute the Provisional Acceptance
Certificates for the respective Solar Facilities (or, if
applicable, the Solar Park) within seven (7) Business Days of verifying
compliance with the stipulated requirements, the Contractor may request in
writing that the Owner execute the respective Certificate within an
additional period of five (5) Business Days. If the Owner has not executed
the new Provisional Acceptance Certificates for the Solar
Facilities (or, if applicable, the Solar Park) within said
period, the conditions required in this clause for execution of the
corresponding Certificate have been satisfied, it shall be understood that
provisional acceptance has been achieved, except to the extent
discrepancies exist as to the performance of the conditions required by
the same, in which event the Parties shall submit the matter to
arbitration in accordance with the provisions of Clause 20
(2).
|
(5)
|
Within
thirty (30) days following the execution of the Solar Park Provisional
Acceptance Certificate, the Contractor must: (i) remove from the Site any
material used in the construction, as well as any equipment, machinery,
tools, vehicles and temporary structures that are not necessary during the
Guarantee Period; (ii) clean the Site and remove any debris or waste; and
(iii) deliver the “As Built” Plans for the Solar
Park.
|
6.
|
OTHER
OBLIGATIONS OF THE CONTRACTOR
|
6.1
|
Prevention
of Occupational Risks
|
(1)
|
The
Contractor shall be obligated, in compliance with current legislation, to
perform the works under this Contract in such a way as to ensure the
safety of workers, and to apply the preventive activity principles set
forth in Law 31/1995 and its implementing
regulations. Accordingly, the Contractor shall be responsible
for designing the construction process in accordance with the provisions
of Royal Decree No. 1627/1997, which establish minimum safety and
health provisions for construction work, and in its the other implementing
or supplemental regulations, such that the safety of the activities that
are performed simultaneously or consecutively is ensured, and the safety
of third parties present in the vicinity of the work site is also
ensured.
|
(2)
|
In
particular, as part of the scope of this Contract, the Owner has prepared
a Safety and Health Study, and furthermore, in compliance with the
provisions of Royal Decree No. 1627/1997, the Contractor must prepare
a Workplace Safety and Health Plan, both specifically for the work
provided for within the scope of this Contract. The Contractor hereby
represents that they contain, or will contain, all requirements of such
Royal Decree and its implementing rules and regulations (including the
provisions of the autonomous communities that apply, if
any).
|
(3)
|
Furthermore,
the Owner (at the request of the Contractor) shall appoint a safety and
health coordinator, who shall have the obligations set forth in Royal
Decree 1627/1997, and who shall be responsible for ensuring that all of
personnel of the Contractor, the Subcontractors and of the suppliers of
equipment or materials under this Contract comply with the safety
requirements established in current legislation. Both the Owner and the
Contractor shall be obligated to respect and comply with their respective
obligations, as imposed by Royal Decree 1627/1997 and other applicable
rules and regulations.
|
(4)
|
The
Owner reserves the right to evaluate security during the construction
period. This does not imply that Owner has assumed
responsibility with respect to security measures taken or the preparation
of documentation or the content of such documentation referred to in this
Clause, without prejudice to the obligations and responsibilities under
law that attach as a result of Owner’s capacity as a developer. To this
effect, the Contractor shall provide to the Owner all documentation that
Owner may reasonably require in order to confirm the performance of the
obligations set forth in this
Clause.
|
(5)
|
For
clarification purposes, in no event shall the Contract Price be increased
if, as a result of a security check, legal review or technical risk
review, the Contractor is required to take additional measures designed to
guarantee compliance with applicable rules and regulations for the
prevention of occupational risks.
|
6.2
|
Obligation
to Provide Access to the Site
|
6.3
|
Minimum
Stock and Supply of Spare Parts
|
6.4
|
Quality
Control
|
|
The
Contractor must perform a quality control inspection of the modules, using
standards for acceptance and rejection and testing and measurement
protocols that are acceptable to the Technical Advisor. For
these purposes, the Contractor must inform the Technical Advisor of the
quality control inspections that it is going to use in the performance of
this Agreement, and detail the respective acceptance and rejection
standards and testing and measurement protocols, such that the Technical
Advisor can approve the same prior to the date on which such modules are
expected to be received under this
Contract.
|
6.5
|
Regulatory
Compliance
|
(1)
|
The
Contractor undertakes to observe and comply with the regulations
applicable to the performance of the Work, subject to the provisions of
subsection (3) below. In particular, the Contractor must ensure
compliance with regulations regarding classified activities, safety,
health, and environmental protection. In particular, the
Contractor shall be the only responsible party for compliance with
applicable law and regulations with respect to (i) ***, and (ii)
environmental protection during the period of manufacture, construction,
erection and Tests until the Solar Park Provisional Acceptance Certificate
has been executed.
|
(2)
|
The
Contractor represents that it is current in the payment of wages and
Social Security contributions for the professionals hired by the
Contractor to perform the services covered by this Contract. Accordingly,
the Contractor agrees to show to the Owner all documents that the Owner
may reasonably request evidencing compliance with wage, tax and Social
Security obligations (including, without limitation, certificates of good
standing and compliance with tax obligations and the TC1 and TC2 Social
Security dues bulletins).
|
(3)
|
In
the event of any change in the applicable rules and regulations after the
date on which this Contract is signed, the Parties shall proceed in
accordance with the provisions of Clause 2.4(4) above. In the event that
either Party does not sign the applicable change document, the Contractor
shall continue to perform the work in compliance with the rules and
regulations previously in force, and shall not assume any responsibility
for any breach of the applicable new rules and
regulations.
|
6.6
|
Permits
and Authorizations
|
(1)
|
***. Further,
both parties agree to follow the joint application procedure provided for
in the last paragraph of subsection 1 of Section 12 of RD 661 and
subsection 1 of Section 11 of Decree 299/2003, of November 4, of
Castilla-La Mancha, such that the applications for the certificate
relating to start-up and the definitive registration of the Solar
Facilities and the Electrical Infrastructure shall be made jointly. The
Parties recognize that making such joint application is an essential
element for both Parties. Such application shall be submitted
by the Contractor before the Delivery Deadline, although in such
submission (a) it
shall be the responsibility of the Contractor to provide all information
and documentation necessary to apply for the start-up certificate referred
to in Sections 115 c) and 132 of Royal Decree 1.955/2000, of December 1,
and (b) it shall
be the responsibility of the Owner to provide all information and
documentation necessary to apply for the definitive registration of the
Solar Facilities and the Electrical Infrastructure with the Administrative
Register of Solar Facilities Producing Power included within the Special
Regimen, in accordance with the terms of Section 12 of RD 661. Once
presented, the handling of the applications for the start-up certificate
and the definitive registration of the Solar Facilities and the Electrical
Infrastructure shall be the responsibility of the Owner, without prejudice
to the Contractor’s obligation to cooperate with the Owner in all respects
in accordance with the terms of Clause
6.11.
|
(2)
|
For
clarification purposes:
|
|
(i)
|
if,
due to causes attributable to the Contractor, the application for the
Final Start-up Certificate is not presented in accordance with subsection
(1) above with respect to one or more Solar Facilities or to the Solar
Park on or before the Delivery Deadline,
and/or
|
|
(ii)
|
prior
to September 29, 2008, the Owner has not have obtained the Final Start-up
Certificate as a result of design defects, defective or inadequate
equipment or performance of the Work or of defects, imprecision or
omissions in the documentation or in the technical information delivered
by the Contractor,
|
6.7
|
Training
of the Owner’s Personnel
|
6.8
|
Designation
of Project Director
|
(1)
|
The
Contractor shall name a Project Director with an officially recognized
technical degree and relevant industry experience with similar
projects. The appointment of the Project Director must be
submitted to the Owner for approval. The Owner may not reject a proposed
candidate without just cause.
|
(2)
|
The
Project Director shall be responsible for overseeing proper performance of
the Work and for directing, managing, and supervising all of the
activities necessary for the implementation of the services agreed to by
the Contractor in accordance with the terms and time periods specified in
this Contract. Further, the Project Director shall be the
principle contact between the Contractor and the Owner during the term of
this Contract.
|
(3)
|
Without
prejudice to the foregoing subsection, in accordance with the terms of
this Contract and applicable law, the Contractor shall be responsible for
the actions of the Project Director and any and all consequences arising
from such actions.
|
6.9
|
Taxes
and Import Duties
|
6.10
|
Intellectual
and Industrial Property Rights
|
6.11
|
Cooperation
|
7.
|
OBLIGATIONS
OF THE OWNER
|
|
(i)
|
To
comply with its payment obligations under this
Contract;
|
|
(ii)
|
To
provide to the Contractor, its Subcontractors and employees, during the
effective term of this Contract, access to the Site to fulfill their
contractual obligations, including appropriate access to highways and
access roads to perform the Work. For these effects, the Owner will
execute, at its cost and expense, agreements with landowners that procure
all necessary easements or land use
rights;
|
|
(iii)
|
Subject
and without prejudice to the obligations of the Contractor under Clauses
6.6 and 2.2 of his Contract, the Owner shall negotiate and obtain, at its
own cost and expense, the permits required for Final Start-Up and
operation of the Solar Park, including the Final Start-up Certificate.
Specifically, with respect to the joint application procedure referred to
in Clause 6.6 of this Contract, the Owner agrees to provide all
documentation and information required to apply for the definitive
registration of the Solar Facilities and the Electrical Infrastructure
with the Administrative Register of Solar Facilities Producing Power
within the Special Regime, in accordance with the terms of Section 12 of
RD 661, upon the terms of such Clause
6.6;
|
|
(iv)
|
To
cooperate with the Contractor, to the extent necessary, in order to avoid
any impact on the Implementation Schedule or in the performance of the
works by the Contractor;
|
|
(v)
|
To
appoint a project coordinator to act on behalf of the Owner in the
performance of matters associated with the Contract and who must possess
sufficient powers to represent the
Owner;
|
|
(vi)
|
The
Owner undertakes to provide to the Contractor all of the cooperation that
the latter may reasonably request in connection with the implementation of
the Work and compliance with the Contractor’s obligations under this
Contract. The Owner shall submit to the Contractor all
documentation or information that the Contractor may reasonably request in
connection with the Solar Park and that is available to the
Owner.
|
8.
|
GUARANTEES
|
|
The
Contractor guarantees the durability of the solar modules during the
Guarantee Period, in accordance with the schedule of guarantees made by
the manufacturer of the modules set forth on Annex
6 of this Contract. Upon expiration of the Guarantee
Period, the Contractor undertakes to assign to the Owner its rights under
the module supplier guarantees through the remainder of the 25-year useful
life of the modules.
|
8.2
|
Solar
Module Capacity Guarantee
|
(1)
|
The
Contractor guarantees that the total peak capacity of the Solar Park is
equal to or higher than the contracted capacity of 11,850 kWp (which will
be confirmed by the manufacturer’s photoflash certificates). In addition,
all certificates for each module shall be within the rated peak capacity
margin of ***% and all aggregate certificates for each of the Solar
Facilities shall be within the rated peak capacity margin of ***%
(although the Solar Park aggregate can only have a margin with respect to
the above referenced peak capacity of ***%, in which case the Contract
Price shall be reduced proportionately in accordance with the final
reduced peak capacity and the corresponding amount of the final Payment
Milestone contemplated in Clause 4.2 reduced
accordingly).
|
(2)
|
In
the event that (i) the total sum of the certificates is less than the
contracted 11,850 kWp (unless it is within the permitted margin for the
Solar Park pursuant to subsection (1) above), or (ii) the certificates do
not comply with the above referenced margins, the Contractor shall
replace, at its expense, solar modules as needed to increase the total
peak capacity of the Solar Park to the minimum permitted under subsection
(1) above, or those modules whose individual capacity is inferior to the
aforementioned tolerance.
|
(3)
|
If,
as of the date set forth in Clause 14.1(1)(i), the sum of the
manufacturer’s photoflash certificates demonstrate the peak capacity of
the Solar Park is less than the referenced total peak capacity (unless it
is within the permitted margin for the Solar Park set forth in subsection
(1) above), the Owner may terminate the Contract for Contractor breach in
accordance with the terms of Clause 14.1, and pay the indemnity set forth
in such Clause.
|
(4)
|
The
Owner reserves the right to perform capacity tests on the solar module
samples that have been provided at the CIEMAT, CENER or IFE-Frauhofer
laboratories, in accordance with the applicable IEC (International
Electrotechnical Commission) standard in order to confirm their compliance
with the capacity specified by the manufacturer and guaranteed by the
Contractor. The results thereof shall be binding on the Parties. In the
event that such results confirm that the capacity of the modules does not
fall within the tolerance guaranteed by the Contractor, the Contractor
shall bear the costs of such tests and shall immediately replace the
entire batch of modules corresponding to the tested samples, except to the
extent that the modules failing the capacity test can be identified, in
which case, only those modules shall be
replaced.
|
8.3
|
Design,
Assembly and Performance Guarantee. Materials Quality
Guarantee.
|
8.3.1
|
Design, Assembly and
Performance Guarantee
|
|
(1)
|
The
Contractor guarantees during the Guarantee Period that the procedures
followed for the design of the facilities and for the performance of the
work are of the required quality and conform to the specifications
contained in this Contract.
|
(2)
|
The
Contractor is obliged to repair or, if necessary in its opinion, to supply
totally new, and reinstall free of charge to the Owner, those parts or
components of the facilities included in the Scope of Work that fail
during the Guarantee Period due to design, assembly or performance
defects.
|
(3)
|
The
provisions of subsections 8.3(2) to (8) below with respect to the
Materials Quality Guarantee shall apply, mutatis mutandis, to
the guarantee provided under this
subsection.
|
8.3.2
|
Materials Quality
Guarantee
|
(1)
|
The
Contractor guarantees that all the materials and components used in the
manufacture, assembly and Start-up of the Solar Park are of the required
quality and conform to the specifications for the equipment and the
technical documents contained in the Annexes to this
Contract. The Contractor further guarantees a minimum stock of
spare parts to the Owner in accordance with the terms of Clause 6.3 and
Annex
5 of this Contract.
|
|
(2)
|
The
materials quality guarantee will enter into force on the date of issuance
of the relevant Solar Park Provisional Acceptance Certificate and shall
remain in force until the Solar Park Final Acceptance Certificate is
signed. If the Solar Park or a portion thereof, cannot be commercially
operated during the Guarantee Period for reasons attributable to the
Contractor, the Guarantee Period shall be extended (only as regards the
affected facilities) for a period equal to the period during which the
corresponding facilities are not operating. For this purpose,
the parties shall record in writing the periods during which operation is
suspended and the corresponding extensions of the
guarantee.
|
(3)
|
During
the Guarantee Period, the Contractor is required, in its
discretion:
|
a)
|
To
replace any material and equipment that do not comply with what was agreed
upon or required pursuant to this Contract, or that are inadequate or of a
deficient quality; and
|
b)
|
To
adjust, repair or replace any equipment exhibiting any design, materials,
manufacturing, operation, or performance defect. If a Systemic Defect
exists with respect to any equipment or components supplied under this
Contract, the Contractor shall carry out, at its expense, the redesign
and/or modifications necessary to cure such problem in accordance with the
Owner’s requirements.
|
(4)
|
The
adjustments, repairs or replacements must be performed within the shortest
period that is reasonably possible (and, in any event, no later than
fifteen (15) days from the time the defect is detected), in a manner that
is least prejudicial to the Owner and taking all action needed to cause
the least possible harm to the operation of the overall facilities of the
Solar Park.
|
(5)
|
Repairs,
adjustments, alterations, replacements or maintenance that may be
necessary because of the normal wear and tear of on the facilities
provided under this Contract or caused by misuse or negligent use of the
equipment by the Owner or by third parties (other than the Contractor or
its Subcontractors) or because of the use of the equipment supplied to
Owner in a manner that does not conform to the technical specifications,
are all excluded from the scope of the guarantee. For
clarification purposes, it shall be understood that the Owner (or third
parties acting on its behalf) has used equipment in the intended manner
when such use conforms to the operation and maintenance manuals delivered
to the Owner by the Contractor pursuant to this Contract. This
guarantee may not be enforced in the event of the inaccessibility of the
Site, provided that the Contractor has notified the Owner of the existence
of such inaccessibility, or, in the events of Force Majeure (for such
time as exist the circumstances preventing the provision
thereof).
|
(6)
|
The
obligations arising from the guarantee set forth in this section shall be
fulfilled by the Contractor at its sole cost and expense and free of any
charges or expenditures by the Owner, and the Contractor shall bear the
expenses arising as a result thereof for the Owner, such as demolition and
disassembly, construction, carting, insurance and packaging for returned
materials and their replacement, assembly and supervision, taxes and the
like.
|
(7)
|
All
repaired or replaced material shall carry a new guarantee period of the
following duration from the date of repair or
replacement:
|
|
(i)
|
if
repaired, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is longer;
and
|
|
(ii)
|
if
replaced, *** (***) months or the time remaining until the issuance of the
Solar Park Final Acceptance Certificate, whichever is
longer.
|
(8)
|
The
Contractor guarantees the availability of spare parts for the modules,
inverters and solar trackers during the Guarantee Period and during the
entire useful life of each Solar Facility, in the latter case provided the
Maintenance Agreement remains in force. The Contractor shall provide such
guarantee on the following terms:
|
|
(i)
|
With
respect to the module, inverter or solar tracker spare parts that are
manufactured by the Contractor or by companies of its group (currently
headed by Sunpower Corporation), the Contractor shall ensure that such
spare parts continue to be manufactured or, in the event that the
Contractor or the companies of its group do not manufacture spare parts
identical to those already installed, that spare parts for modules,
inverters or solar trackers of similar characteristics (and, in the case
of modules, of equal or greater capacity) are available, provided they do
not entail a reduction in the guaranteed performance of the Solar
Park.
|
|
(ii)
|
With
respect to the module, inverter or solar tracker spare parts that are not
manufactured by the Contractor or by companies of its group, the
Contractor shall use reasonable efforts to (a) cause the respective
suppliers to continue to manufacture such spare parts or other spare parts
with similar characteristics (and, in the case of modules, of equal or
greater capacity), provided they do not entail a reduction of the
guaranteed performance of the Solar Park, or (b) obtain such spare parts
with similar characteristics from other vendors with technical
capabilities that are at least similar to the original
ones. Should the Contractor become aware that an original
vendor intends to stop manufacturing such spare parts, it shall so notify
the Owner so that the Owner may order, through the Contractor, the spare
parts it deems appropriate, provided they are available on the
market.
|
8.4
|
Solar
Park Production Guarantee.
|
(1)
|
The
Contractor guarantees to the Owner that the aggregate electric output of
the Solar Park during each of the *** periods included in the Production
Guarantee Period shall reach the PR guaranteed pursuant to Annex
10 (the “Guaranteed PR”), for
each determined irradiance and temperature condition, and that in no event
shall it fall beneath the PR minimum set forth in such Annex (the “Minimum
PR”).
|
(2)
|
A
Production Test shall be performed at the end of each *** period dividing
the Production Guarantee Period in order to confirm the electrical
output. For these purposes, within the forty-five (45) days
prior to the termination of the *** period following the commencement date
of the Production Guarantee Period, and within the forty-five (45) days
prior to the termination of the Production Guarantee Period, the
Contractor shall notify the Owner of such circumstance so that the Parties
may agree upon a date the perform the Production Tests for the
corresponding *** period (which, in no event may be later than the date
which is fifteen (15) Business Days following the date of termination of
the period which is *** following the commencement date of the Production
Guarantee Period or the termination date of the Production Guarantee
Period, as applicable). The following shall apply to the results of the
Production Tests for the Solar
Park:
|
|
(a)
|
If
the actual measured output of the Solar Park is less than the Guaranteed
PR for the corresponding *** period (as such term is defined in Annex
10) but is greater than the Minimum PR for such period, the
Contractor shall pay to the Owner the penalties set forth in Annex
10, up to a maximum of ***% of the Contract Price.
|
|
(b)
|
If
the actual measured output of the Solar Park is less than
the Minimum PR for the corresponding *** period, the
Owner may elect to: (i) return the entire
Solar Park to the Contractor (or the part thereof that was not rejected in
the event of a partial termination in accordance with the terms of Clause
14.1), the Contractor then being obligated to return the entire Contract
Price paid by the Owner pursuant to this Contract and to indemnify the
Owner for damages pursuant to Clause 14.1(5), or (ii) return the Solar
Facilities causing the failure to achieve the Minimum PR to the
Contractor, the Contractor then being obligated to return the portion of
the Contract Price corresponding to such Solar Facilities and to indemnify
the Owner for damages pursuant to Clause 14.1(5) that correspond to the
returned Solar Facilities.
|
(3)
|
If
the Guaranteed PR is reached in the Production Tests for each *** period,
or if the Contractor shall have paid the required penalties for achieving
an output between the Minimum PR and the Guaranteed PR, the Parties shall
execute a certificate of agreement. The execution of such
certificate corresponding to the second *** period for the Guaranteed
Production Period shall grant the Contractor the right to require the
Owner to return the Guarantee Bond in force at the time and replace the
same with a new Guarantee Bond in an amount equal to ***% of the Contract
Price. The same provisions of this subsection shall also be
applied to the Solar Facilities, if any, that the Owner did not return in
accordance with subsection
8.4(2)(b).
|
(4)
|
The
Contractor shall not be responsible for breach of the guarantees in the
event that such failure was caused by the circumstances described in
Clause 8.3.2(5) above or by excessive failures of the grid coupled with
the disconnection of the inverters for exceeding the conditions detailed
in their technical specifications.
|
|
Further,
in the event that a Systemic Defect arises during a Production Guarantee
Period, the data from the Solar Park as a whole shall not considered for
purposes of the Production Guarantee during the time the Contractor is
replacing the equipment affected by such Systemic Defect, up to a maximum
of three (3) months. Thus, in the event that the Contractor
takes more than three (3) months to replace the Solar Park equipment
affected by a Systemic Defect, only that three (3) month period shall
remain in the Production Guarantee Period. For this purpose, the parties
shall record the suspension periods and corresponding extensions of the
Production Guarantee in writing.
|
|
For
clarification purposes, the appearance of a Systemic Defect shall obligate
the Contractor to replace all equipment of the same model and
manufacturer, regardless of whether they have manifested such defect at
the time of their replacement.
|
|
|
8.5
|
Bonds
|
(1)
|
On
the Condition Satisfaction Date, the Contractor shall deliver to the Owner
the Performance Bond, as per the form attached hereto as Annex
7, in an amount equivalent to ***% of the Contract Price. The
Performance Bond shall guarantee the performance by the Contractor of any
payment obligation for which the Contractor is responsible from the
commencement of the Work until the date of execution of the Solar Park
Provisional Acceptance Certificate (for any reason, including but not
limited to the return of the amounts paid by the Owner, under this
Contract, and penalties or compensation for damages and losses, including
the performance by the Contractor of its obligations during the portion of
the Guarantee Period prior to the execution of the Solar Park Provisional
Acceptance Certificate).
|
(2)
|
As
a requirement for the execution of the Solar Park Provisional Acceptance
Certificate, the Contractor shall deliver to the Owner the Guarantee Bond
(in exchange for the return of the Performance Bond by the Owner), in an
amount equal to ***% of the Contract Price. The Guarantee Bond shall
conform to the form attached hereto as Annex
7 and shall guarantee the Contractor’s compliance with its
obligations during the Guarantee Period (beginning from the execution of
the Solar Park Provisional Acceptance Certificate). However, once the
Performance Tests corresponding to the second *** period of the Production
Guarantee Period have been performed and the written agreement referred to
in Clause 8.4(3) has been executed, the Contractor shall have the right to
replace the Guarantee Bond delivered to the Owner with a new Guarantee
Bond in an amount equal to ***% of the Contract
Price.
|
(3)
|
The
Performance Bond and the Guarantee Bond shall be issued by a financial
institution with a minimum “A” rating by Standard & Poor’s Corporation
or the equivalent from Moody’s Investors Services Inc., and shall be
enforceable, in whole or in part, on demand by the Owner, in the event of
the Contractor’s breach of its obligations under this
Contract.
|
(4)
|
The
delivery of the bonds provided under this section shall in no way limit
the Contractor's liability under this Contract, as the bonds only
constitute a means to guarantee the performance of the obligations assumed
by the Contractor.
|
(5)
|
If
the Contract Price is amended pursuant to Change Orders, the Contractor
must update the amount of the Performance Bond. To such end, the
Contractor must deliver to the Owner (within fifteen (15) Business Days
following the execution of the corresponding Change Order), another bond
in the updated amount, in the form attached hereto as Annex
7.
|
9.
|
FINAL
ACCEPTANCE OF THE SOLAR PARK
|
(1)
|
Within
forty-five (45) days prior to the passage of *** from the date on which
the Solar Park Final Start-Up Certificate has been obtained, the
Contractor shall give notice thereof to the Owner in order for both
Parties to agree upon a date to analyze the status and condition of the
Solar Park (which shall not occur later than the Guarantee Period
expiration date).
|
(2)
|
If
such inspection does not reveal the presence of defects, the Parties shall
proceed to execute the Final Acceptance Certificate, at which time the
Owner shall return the Guarantee Bond to the
Contractor.
|
(3)
|
If
such inspection finds that defects are present that affect the
Contractor's obligations during the Guarantee Period, the Parties shall
sign a certificate specifying the defects, if any, that must be corrected
within a period of forty-five (45) days of the date of execution of the
corresponding certificate, or within such shorter period that the Parties
may agree upon.
|
|
Once
such defects have been corrected by the Contractor within the specified
period, a new inspection shall be performed, and if the defects have been
remedied, the Parties shall proceed to execute the Final Acceptance
Certificate, and the Owner shall return the Guarantee Bond to the
Contractor.
|
10.
|
OWNERSHIP
OF THE FACILITIES AND TRANSFER OF
RISK
|
(1)
|
The
Owner and the Contractor expressly agree that the actual transfer of
ownership of the facilities and equipment covered by this Contract will be
made, for all contractual purposes, when each of the same shall have been
paid for in full by the Owner. With respect to the solar modules, module
supports and trackers, ownership thereof will be transferred to the Owner
upon payment of the respective invoice as provided in Clause 4, whereupon
the Owner will become the owner of the solar modules, the module supports
and the trackers included in such
invoice.
|
(2)
|
Without
prejudice to the foregoing, or to the Contractor’s obligations during the
Guarantee Period, the possession and the risk of loss of the same shall
not be transferred to the Owner until the execution of the Solar Park
Provisional Acceptance Certificate.
|
(3)
|
Until
the execution of the Solar Park Provisional Acceptance Certificate, the
Contractor must repair or replace, at its own expense, any equipment,
facility or portion of Work that is lost or damaged. Further,
the Contractor must assume responsibility for the care and security of the
Site and assume responsibility for any loss, theft or damage that may
occur with respect to the Contractor’s materials or machinery or the
equipment delivered pursuant to this
Contract.
|
11.
|
INSURANCE
|
(1)
|
At
all times during which the Contractor continues performing work under this
Contract, the Contractor, at its own cost and expense, shall take out and
maintain in force the insurance described below with well-known and
solvent insurance companies that are legally authorized to issue policies
in Spain, on terms and conditions of coverage satisfactory to the Owner
and the Insurance Advisor:
|
|
a)
|
Occupational
Accidents or Social Security Insurance for all its own personnel or for
the personnel of the Subcontractors as is legally required during the
effective period of the Contract.
|
|
b)
|
Mandatory
Civil Liability Insurance and Voluntary Civil Liability Insurance for the
Circulation of Vehicles and Machinery, pursuant to the limits and
conditions mandated by the Legislation in force during the effective
period of the Contract.
|
|
c)
|
Civil
Liability Insurance covering all activities of the Contractor and the
Subcontractors necessary to complete the Work, with a limit of not less
than €1,500,000 per occurrence.
|
|
d)
|
Transportation
Insurance covering the transportation of material and machinery to the
Site, with a limit of not less than the aggregate value of the transported
goods.
|
|
e)
|
All-Risks
Construction and Assembly Insurance, which will specifically include theft
and vandalism at the Site, from the unloading of the material at the Site
until the transfer of ownership of the Solar Park, including the testing
period and covering a maintenance period of not less than 12 months, with
an insured amount not less than the Contract
Price.
|
|
f)
|
Any
other mandatory insurance.
|
(2)
|
The
contracting of insurance provided in this clause shall in no event limit
the liabilities of the Contractor under this Contract. Additionally, the
amounts established as an insurance deductible in each of the insurance
policies shall be borne by the Contractor, unless the loss is attributable
to the Owner.
|
(3)
|
The
Owner may require that the Contractor deliver documentation evidencing the
contracting of the insurance set forth under this Clause to verify
compliance therewith and/or for verification by the Insurance Advisor, and
the Contractor undertakes to make such documentation available to the
Owner as soon as possible.
|
12.
|
FORCE
MAJEURE
|
(1)
|
Neither
Party shall be deemed liable for the breach of any of its obligations to
the extent that the performance of such obligations is delayed or becomes
impossible as a consequence of Force
Majeure.
|
(2)
|
For
the purposes of this Contract, events of Force Majeure shall be
deemed to be the events described in Article 1105 of the Civil Code,
provided that they actually prevent compliance by the party invoking it
from complying in whole or in part with its obligations under this
Contract. The Parties expressly agree that the discovery of archeological
ruins at the Site shall be considered an event of Force Majeure for
purposes of this Contract (without prejudice to the changes, if any, that
the Parties may agree to in accordance with subsection (11) below and the
consequences set forth therein). By way of example and not limitation, the
Contractor may not invoke the following as an event of force
majeure:
|
|
(i)
|
Meteorological
conditions or phenomena that could have been reasonably foreseen by
experienced contractors operating at the
Site.
|
|
(ii)
|
Delays
or failures in obtaining materials or labor that are foreseeable or
avoidable in advance.
|
|
(iii)
|
Delays
by any Subcontractor, unless such delays are based on any of the events
specified in this clause.
|
|
(iv)
|
Strikes
or labor conflicts affecting the Contractor or the Subcontractors, unless
they are national, sector-wide or local in
scope.
|
(3)
|
The
Party affected by Force
Majeure shall give written notice to the other Party as soon as
possible within a maximum period of forty-eight (48) hours from the day on
which such Party became aware thereof, attaching to such notice all
available documents evidencing the event that is deemed to amount to Force Majeure, the
measures taken up to such point in time, and an estimation, if possible,
of the expected duration thereof and its impact on the
Work
|
(4)
|
The
performance of the obligations affected by an event of Force Majeure shall be
suspended for the duration of such event, the Parties not being entitled
to damages as results of such events of Force
Majeure.
|
(5)
|
If
the Work is affected by the event of Force Majeure and the
Contract is suspended for more than one hundred eighty (180) days, either
of the Parties may seek termination of the Contract, with the consequences
provided in Clause 14.3.
|
(6)
|
After
cessation of the event of Force Majeure, the
Parties shall agree upon the corresponding extension of deadlines (in all
cases in light of the duration of the event of Force Majeure and the
mobilization periods), or, if applicable, the measures that must be
adopted to recover, in whole or in part, the time lost so as to preserve
such dates, if possible. The contractual obligations not affected by Force Majeure must be
met within the deadlines that were in force prior to the occurrence of the
event of Force
Majeure.
|
(7)
|
In
any event, upon cessation of the event of Force Majeure, the
Parties shall take all reasonable measures within their power to resume
performance of the obligations under the Contract under optimal conditions
and with the least possible delay.
|
(8)
|
The
expenses incurred as a consequence of the repair, replacement or
adjustment of the items damaged by the events of Force Majeure shall be
borne by the party bearing the risk of loss for such elements at the time
of occurrence of the event of Force
Majeure.
|
(9)
|
In
the event that an event of Force Majeure prevents
a Party from complying with a payment obligation required by the Contract,
such payment obligation shall not be waived and the other Party may
suspend performance of its obligations under the Contract. Such
occurrence shall not give either Party a right to indemnification for
damages, without prejudice to any interest for delay in payment that might
apply.
|
(10)
|
The
Party claiming the Force
Majeure event shall immediately notify the other Party of its
cessation. Within seven (7) calendar days following the
cessation of the Force
Majeure event, the Parties shall meet to agree and assess the
effects that such situation caused. Such agreement shall be
documented in a certificate signed by both Parties describing the changes
to the contractual conditions.
|
(11)
|
In
the event that archeological ruins are discovered at the Site, but the
Work may be continued by reducing the size of the Solar Park, the number
of Solar Facilities, or by implementing a reconfiguration of the technical
configuration of the Solar Park, the Parties shall meet to agree on such
changes and shall execute a certificate describing the changes to the
contractual conditions. In any event, if the change entails a
reduction in the capacity of the Solar Park, or in the number of Solar
Facilities, thus requiring a reduction of the Contract Price, the Owner
shall have the right to withhold from the remaining Payment Milestones
payable after the change, the portion of the Contract Price previously
paid by the Owner that corresponds to the Solar Facilities or the
equipment affected by the reduction and which, consequently, were not
delivered by the Contractor under this
Contract.
|
13.
|
SUSPENSION
OF THE WORK
|
13.1
|
Suspension
by the Owner
|
(1)
|
The
Owner may at any time give written notice to the Contractor ordering the
immediate suspension of the Solar Park, in whole or in part, for any of
the following reasons:
|
|
a)
|
If
the Contractor is performing the Work in a defective or inappropriate
manner or not adhering to uses and practices customary for projects of
this type or as established under this Contract, provided that the
Contractor does not cure such defects within a reasonable period granted
by the Owner.
|
|
b)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with safety standards, avoiding
damage to people and things, provided that the Contractor does not cure
such defects within a reasonable period granted by the
Owner.
|
|
c)
|
If
the means and methods used by the Contractor are not appropriate to ensure
the performance of the Work in accordance with quality control
requirements, provided that the Contractor does not cure such defects
within a reasonable period granted by the
Owner.
|
|
d)
|
If
the Contractor fails to comply with the instructions issued by the
Governmental Authorities for the execution of the Work, to the extent that
this may affect the authorizations granted or requested or the successful
achievement of the purpose of the
Contract.
|
|
e)
|
By
unilateral decision of the Owner.
|
(2)
|
The
order providing for the suspension of the Work shall specify in writing
the portion thereof that is being suspended, the grounds for suspension,
the effective date of suspension and the date provided for the resumption
of the Work (if applicable).
|
(3)
|
In
all the cases provided in subsection (1) above, except for the ones
mentioned in subsection (e), the suspension shall last for all the time
required and until the Contractor cures the circumstances that gave rise
to the suspension of the Work. Additionally, in none of such cases shall
the Contractor be entitled to any additional payment whatsoever or to the
extension of the periods provided in the Implementation Schedule, except
in the case mentioned in subsection (e), where the Contractor shall be
entitled to an extension of the deadlines provided in the Implementation
Schedule for a period at least equal to the suspension period and to be
compensated for the costs resulting from the repair, replacement or
adjustment of the items damaged during the suspension period and the costs
arising from the suspension and resumption of the
Work.
|
(4)
|
If
the suspension lasts for a period in excess of one hundred and eighty
(180) days, and the reasons are not attributable to the Owner, the
Contractor shall reserve the right to terminate the Contract upon the
terms of Clause 14.1.
|
13.2
|
Suspension
by the Contractor
|
(1)
|
The
Contractor shall be entitled to temporarily suspend the Work as provided
under this Contract, applicable law and in the event that the Owner incurs
a delay in excess of thirty (30) days in the payments owing to the
Contractor, as regards the expiration dates of the relevant invoices
(except in the case of the works relating to a Payment Milestone disputed
in accordance with Clause 4.3 (3)). In such event, the Owner
shall pay to the Contractor its expenses arising from the suspension
(including the costs resulting as a consequence of the repair, replacement
or adaptation of the damaged elements during the suspension period and the
costs arising from the suspension and resumption of the Work) and the
Parties shall agree upon an extension of the deadlines for performance
based on the effects of the suspension
thereon.
|
(2)
|
If
the suspension for a cause attributable to the Owner (including the one
provided under subsection 13.1(1)(e) above) lasts for more than three (3)
months or during several consecutive periods totaling more than three (3)
months, the Contractor shall be entitled to terminate the Contract upon
the terms of Clause 14.2.
|
13.3
|
Suspension
by Judicial or Governmental
Authority
|
(1)
|
In
the event of suspension, interruption or stoppage of the Work, in whole or
in part, ordered by any judicial or governmental authority, or by the
Owner or Contractor following the instructions of any judicial or
governmental authority, the financial and contractual consequences of the
delay shall be borne by the party that is responsible for performance
where the failure to perform or incorrect performance triggered the
judicial or governmental action.
|
(2)
|
If
such suspension, interruption or stoppage does not result from the actions
or omissions of any of the Parties, the periods of the Implementation
Schedule shall be extended for a period at least equal to the one during
which the situation subsisted, and the Owner shall pay to the Contractor
the duly verified costs incurred as a result of such interruption. The
Contractor undertakes to act diligently to minimize such
costs.
|
(3)
|
If
the suspension ordered by any judicial or governmental order, or by the
Owner or the Contractor following the instructions of any judicial or
governmental authority, extends for more than six (6) months, either of
the Parties will be entitled to terminate the Contract upon the terms of
Clause 14.
|
14.
|
TERMINATION
|
14.1
|
Termination
for Causes Attributable to the
Contractor
|
(1)
|
The
Owner may terminate the Contract in the cases authorized by the Law, in
the instances provided for in this Contract, or upon the occurrence of any
of the following events:
|
|
a)
|
The
dissolution or merger (provided it involves a change in control) of the
Contractor ***, or when a substantial portion of the assets of the
Contractor *** is transferred to another company, provided that such
circumstances seriously prejudice the Contractor’s *** capacity to perform
the obligations under this
Contract;
|
|
b)
|
The
voluntary filing by the Contractor of a bankruptcy petition or the
allowance of a bankruptcy petition by a third party against the Contractor
(or any equivalent action in accordance with the insolvency legislation
applicable to the Contractor), or in the case of clear financial
difficulties that prevent the Contractor from normally complying with
obligations arising under the Contract, unless its obligations are
sufficiently guaranteed under this Contract. The occurrence of the same
events as regards *** shall also be grounds for
termination.
|
|
c)
|
If
the Contractor assigns or subcontracts the Contract, in whole or in part,
without complying with the conditions set forth in this
document.
|
|
d)
|
If
the Contractor fails to comply with its obligations involving the
contracting and maintenance of the insurance provided under the Contract
in a manner that might endanger coverage under the relevant
policies.
|
|
e)
|
If
the Contractor has been assessed penalties for failure to achieve the
Production Guarantee beyond the maximum limits, if applicable, provided
under this Contract.
|
|
f)
|
The
Contractor has interrupted the Work or a substantial portion thereof or
has abandoned the Solar Park for a period exceeding twenty (20) calendar
days without the Owner’s authorization, or in the case of interruptions
for an aggregate duration of more than thirty (30) days within the same
calendar year, provided that the interruptions do not arise from a
suspension of the Work provided under Clause
13.2.
|
|
g)
|
If
the application for the Final Start-up Certificate has not been filed
together with all required in accordance with the terms of Clause 6.6 on
or prior to the Delivery Deadline due to causes attributable to the
Contractor, although the Owner cannot effect termination for the reason
set forth in this subsection with respect to those Solar Facilities or
Electrical Infrastructure for which a Final Start-up Certificate would
have been obtained prior to September 29,
2008.
|
|
h)
|
If
the Owner has not obtained the Final Start-up Certificate (with respect to
one or more Solar Facilities and/or the Electrical Infrastructure) prior
to ***, for the reasons set forth in Clause
6.6(2)(ii).
|
|
i)
|
If
the Provisional Acceptance Certificate for one or more Solar Facilities or
the Electrical Infrastructure has not been issued prior to
***.
|
|
j)
|
***
|
|
k)
|
***
|
|
l)
|
If
there is any other material breach of the obligations assumed by the
Contractor under this Contract.
|
|
m)
|
Any
other serious breach of a principal obligation of the Contractor that
might affect or prevent the successful conclusion of the Contract, or that
is expressly designated herein as grounds for
termination.
|
(2)
|
Upon
the occurrence of any of the above events, the Owner may elect to
terminate the Contract, in whole or in part, with respect to the Solar
Facilities for which the Provisional Acceptance Certificate of a Facility
has not been issued as of the date of notice of termination, or for which
the Final Start-up Certificate has not been obtained in the case of
subsections g) and h) above (hereinafter, the “Affected Facilities”),
except to the extent that the number of Affected Facilities is less than
40% of the total Solar Facilities, in which case the Owner may only
terminate the Contract with respect to such Affected
Facilities.
|
(3)
|
Upon
the occurrence of any of the above events, the Owner shall give the
Contractor a period of thirty (30) days to remedy the event, or any other
longer period that may be agreed upon by the Parties. If within such
period the Contractor fails to remedy such grounds for termination to the
Owner's satisfaction, the Contract shall be terminated (in whole or in
part, as applicable). For clarification purposes, it is noted
for the record that in no event will the remedy period provided herein be
applicable to the circumstances provided in subsections (1)(b), (e), (f),
(g) , (h) and (i) of this Clause.
|
(4)
|
In
the event of a termination of the Contract (in whole or in part) under
this subsection, the following shall occur (without prejudice to the
provisions of subsection (6)):
|
|
(i)
|
In
the event of partial
termination, only as to some Solar Facilities in the Solar Park,
the Contractor shall be obligated to return to the Owner the portion of
the Contract Price that it charged for the Affected Facilities and shall
be obligated to pay indemnification for any damages pursuant to subsection
(5) below. The Contractor shall recover ownership of the property
comprising such Solar Facilities.
|
|
(ii)
|
In
the event of complete
termination, the Contractor shall be obligated to return the
aggregate Contract Price charged by the Contractor, and shall be obligated
to pay indemnification for any damages pursuant to subsection (5) below.
The Contractor shall recover ownership of all the property delivered to
the Owner.
|
(5)
|
Upon
the occurrence of either two events described in the preceding subsection,
the Contractor shall be obligated to pay indemnification to the Owner for
damages, including:
|
|
(i)
|
The
Financial Costs associated with the Affected Facilities or the entire
Solar Park, as applicable. “Financial Costs” shall
be understood to mean all costs, expenses, fees (whether up-front, early
termination or of any other type) and interest paid by the Owner in
respect of the financing documents entered into by the Owner with the
Financial Institutions, including cancellation or breakage fees for any
interest rate swap agreements entered into by the Owner with the Financial
Institutions.
|
|
(ii)
|
The
costs, expenses and damages incurred by the Owner as a result of, or with
respect to, the early termination or the breach by the Contractor, duly
certified by the Owner, plus an amount equal to *** euros for each
Affected Facility (i.e., *** euros in the event of total termination or
the amount that corresponds to the Affected Facilities in the event of a
partial termination), to cover permitting
costs.
|
(6)
|
Notwithstanding
the provisions of subsections (4) and (5), if the Owner had the right to
terminate the Contract, in whole or in part, as a result of the failure to
achieve Start-up prior to September 29, 2008 for the reasons set forth in
subsections 14.1(g) and 14.1(h) above, the Owner may not elect to return
the Affected Facilities, if:
|
|
(i)
|
prior
to September 29, 2008 the Contractor pays to the Owner an amount that is
sufficient to (a) restore the Debt Service Coverage Ratio (as defined in
the financing documents referred to in Clause 14.1(5)(i)) to the Base Case
(as defined in the financing documents referred to in Clause 14.1(5)(i))
agreed to by the Financial Institutions and the Owner in such financing
documents, and (b) cover the loss of profitability for the Owner’s
shareholders, taking into account the tariffs which will be received by
the Owner from the sale of power from the Solar Park. For such purposes,
the Contractor acknowledges and accepts that the amount to be paid to the
Owner (for the items set forth in the preceding subsection) will be
proposed by the Agent for the Financial Institutions and negotiated
between the Owner and the Contractor on the basis of the assumptions in
the Base Case developed by the Owner and the Financial Institutions in
connection with the financing documents;
and
|
|
(ii)
|
Start-up
of the Affected Facilities shall have occurred prior to October 31,
2008.
|
(7)
|
The
Contractor is required to pay the amounts referred to in subsections (4)
and (5) above to the Owner within *** days of the date of settlement of
the amounts owed.
|
(8)
|
In
all the foregoing instances, the Owner may, without prejudice to the
reservation of rights to take all legal action to which it is entitled for
the defense of its rights, adopt any or all of the following
measures:
|
|
a)
|
Offset
any payments pending in favor of the Contractor by an amount equivalent to
the balance in favor of the Owner (returning, in the event of complete
termination, the Performance Bond or the Guarantee Bond, as applicable,
once such offset has been made).
|
|
b)
|
Enforce
the Performance Bond and/or the Guarantee
Bond.
|
|
c)
|
Withhold
the Contractor’s materials, machinery and items belonging to the
Contractor that are in the possession of the Owner, until the Contractor
has fully paid all amounts due as a consequence of the
termination.
|
14.2
|
Termination
by the Contractor
|
(1)
|
The
Contractor may terminate the Contract under the circumstances provided for
under applicable law, in this Contract, or upon occurrence of any of the
following events:
|
|
(i)
|
The
voluntary filing by the Owner of a bankruptcy petition or the allowance of
a bankruptcy petition filed by a third party against the Owner, or in the
event of patent financial difficulties that would prevent the Owner from
normally complying with the obligations arising under this Contract in
cases different from the one provided under subsection (ii) below, unless
its obligations are sufficiently guaranteed under this
Contract.
|
|
(ii)
|
A
delay in payment for a period in excess of sixty (60) days from the date
on which payment should have been
made.
|
|
(iii)
|
Any
other serious breach of a principal obligation of the Owner that might
affect or prevent the successful conclusion of the Contract, or that is
expressly designated herein as grounds for
termination.
|
|
(iv)
|
A
suspension of the works and services for causes attributable to the Owner
for a period greater than three (3)
months.
|
|
(v)
|
The
dissolution of the Owner, or if a substantial portion of the assets of the
Owner is transferred to another company, and such circumstance seriously
prejudices the Owner’s capacity to perform the obligations set forth in
this Contract.
|
(2)
|
The
Contractor shall give to the Owner a period of thirty (30) days to cure
the event, or any other longer period that may be agreed upon by the
Parties. Such cure period shall not apply if the event giving rise to
grounds for termination is one provided for in subsections (i) and (iv) of
Clause 14.2(1) above. If the Owner fails to remedy such grounds for
termination to the Contractor's satisfaction within such period, the
Contract shall be terminated (in whole or in part, as
applicable).
|
(3)
|
Upon
termination of the Contract for any of the foregoing reasons, the Owner
must:
|
|
(i)
|
Pay
all of the Contractor’s outstanding
invoices.
|
|
(ii)
|
Pay
to the Contractor the value of the Work performed before termination and
which is not yet included in the invoices. Accordingly, the Owner must pay
to the Contractor the cost of the equipment already delivered to the
Contractor or that it is legally required to accept under the contracts
entered into with its suppliers and manufacturers, which shall become the
property of the Owner if they had not already become
so.
|
|
(iii)
|
Pay
all duly authenticated damages that are sustained by the Contractor as a
consequence of the contractual breach or early termination, including
direct demobilization costs.
|
|
(iv)
|
Return
to the Contractor the Bonds received from the
Contractor.
|
(4)
|
Upon
the Owner’s compliance with the conditions set forth in the above
subsection, the Contractor shall abandon the Site within a period of
thirty (30) days and the Owner may complete the Work by itself or with
another contractor, the Owner being entitled to request the Contractor to
assign each and every contract signed by the Contractor and its
subcontractors (except contracts entered into for the supply of
solar modules, supports and trackers or for the supply of technology and
software, which the Owner may not assume). The Contractor is obligated to
cooperate in good faith with the Owner to effect such
assignments.
|
14.3
|
Termination
due to Force
Majeure
|
|
In
the event of termination of the Contract due to an event of Force Majeure, the
provisions of subsections 14.2 (3) (i), (ii) and (iv) above shall
apply.
|
15.
|
ASSIGNMENT
AND SUBCONTRACTING
|
15.1
|
Assignment
|
(1)
|
The
Contractor may not assign or transfer to third parties, in whole or in
part, the economic, commercial or financial rights or credits arising
under this Contract, or engage in any other transaction involving any type
of disposition, encumbrance, commitment and/or transaction, in whole or in
part, regarding such rights and credits, unless it has obtained the prior
written approval of the Owner and the Financial Institutions. An
assignment to other companies within the Contractor’s group that have the
same technical capacity to perform the contractual obligations and that
satisfy the requirements of the Direct Agreement is permitted,
***.
|
(2)
|
The
Owner may only assign all or a portion of the rights and obligations
arising under this Contract in favor of the Financial Institutions in
accordance with Clause 17, or to any other third party with the prior
written approval of the Contractor.
|
15.2
|
Subcontracting
|
(1)
|
The
Contractor may subcontract the Work, provided the following conditions are
met:
|
|
(i)
|
All
the subcontracts executed (except the contracts entered into for the
supply and manufacture of solar modules, supports and trackers or for the
supply of technology and software, which Owner may not assume) and all
guarantees obtained from any of the suppliers or Subcontractors may be
assigned at the request of the Owner in the event of termination of this
Contract. For such purpose, the Contractor irrevocably undertakes to
assign to the Owner and the Financial Institutions the rights arising from
all the guarantees and subcontracts obtained from Authorized
Subcontractors upon the expiration of the Guarantee Period or in the event
of termination of the Contract.
|
|
(ii)
|
The
guarantees or subcontracts executed by the Contractor with Subcontractors
or suppliers shall be consistent with the terms and provisions of this
Contract.
|
|
(iii)
|
The
Contractor shall deliver to the Owner, within a reasonable period after
the request thereof, a copy without prices or other commercial terms, of
all the contracts, agreements and guarantees signed with the
Subcontractors (containing the waiver referred to in subsection (3)
below)
|
(2)
|
In
no event shall a contractual relationship be implied among the
Subcontractors and the Owner. The Contractor shall remain liable for all
of the activities of its Subcontractors and suppliers and for all
contractual and labor obligations arising from the performance of their
work; as well as for the actions, failures and negligence of any of its
subcontractors or suppliers and the agents and employees thereof, under
the same terms and conditions as if committed or performed by the
Contractor itself, its agents or
employees.
|
(3)
|
The
Owner shall not be liable vis-à-vis any Subcontractor or supplier, or
vis-à-vis their employees, for any claims arising directly or indirectly
from the Contract. For such purpose, the Contractor undertakes to procure
an express and written waiver of the rights conferred by Article 1597 of
the Civil Code from each
Subcontractor.
|
16.
|
LIABILITY
AND DAMAGES
|
(1)
|
The
Parties shall have the obligation to provide indemnification for those
damages caused to the other Party as a consequence of the breach of this
Contract. The Owner’s approval of the projects, calculations, drawings or
other technical documents prepared by the Contractor, or the conduct of
inspections or Tests do not release the Contractor from such liability,
and do not imply that such liability must be shared by the
Owner.
|
|
Further,
the recommendations made by the Owner or its representatives during the
performance of the Contract or on occasion of inspections or Tests shall
not give rise to an exemption, mitigation or excuse for the Contractor’s
performance under this Contract, except to the extent such recommendations
or observations were implemented despite the Contractor’s
objection.
|
(2)
|
The
Contractor shall be liable vis-à-vis the Owner for any loss or physical
damage to the equipment, materials or assets owned by the Owner or third
parties that is caused by the Contractor through the execution of the
relevant Solar Facility Provisional Acceptance Certificate, and thereafter
only when the Contractor is within the Site performing the Work, repairs
or similar activities and causes the relevant
damage.
|
(3)
|
By
application of Article 1596 of the Civil Code, it is expressly agreed that
the Contractor shall also be liable for damages caused by the persons or
entities employed by the Contractor in the performance of the Work,
whether as employees, technicians, subcontractors or otherwise, from whom
the same diligence owed by the Contractor shall be
required.
|
(4)
|
The
Parties expressly agree that in no event will a Party be liable for the
so-called consequential or indirect damages, including loss of profits and
loss of output, loss of use or loss of any contract or other damages that
are considered to be indirect, except for cases involving willful
misconduct or gross negligence, and without prejudice to the Contractor's
obligation to pay the penalties agreed upon under this
Contract.
|
(5)
|
The
Parties agree that any indemnity received by one of the Parties as
beneficiary of any of the insurance taken out by them in connection with
the Solar Park will be deducted from the respective claim for damages or,
if such indemnity holds the Party in question harmless from the damages
sustained, it shall bar such Party from claiming damages and require it to
refund the excess, if any. The Party causing the damages shall
bear all deductibles, liability limits and any other deductions affecting
the indemnities payable to the damaged Party by the insurance companies
providing the insurance in accordance with the provisions
hereof.
|
(6)
|
The
maximum total liability of the Contractor hereunder shall not exceed, in
the aggregate, an amount equal to *** (***%) percent of the Contract
Price. The foregoing shall not affect to the Contractor’s obligation to
make payments under Clause 14.1 in the event of the termination or partial
termination of the Contract.
|
17.
|
OWNER
FINANCING
|
|
(i)
|
the
possibility that the Owner’s rights under this Contract may be fully or
partially pledged or assigned as security, in one or successive instances,
to the Financial Institutions.
|
|
(ii)
|
the
possibility that “direct agreements” that provide the Financial
Institutions with “step-in” rights will be executed in the form agreed to
prior to the execution of this Contract and which are attached hereto as
Annex
9;
|
|
(ii)
|
the
possibility that the right to receive indemnification to which the Owner
may be entitled and which arise under the insurance policies purchased in
accordance with the terms of this Contract may be pledged or assigned as
security to the Financial Institutions (and the essential nature of
subscribing the insurance policies upon the terms of the report issued by
the Insurance Advisor in accordance with Clause
11);.
|
|
(iii)
|
that
the Financial Institutions and their advisors (including the Technical
Advisor and the Insurance Advisor and any others) have the right to access
the Site in order to inspect the performance of the work contemplated
under this Contract, upon the terms contemplated in Clause
6.2;
|
|
(iv)
|
the
Technical Advisor’s right to observe all Capacity and Production Tests and
the obligation to obtain its prior approval for the issuance of the Solar
Park Provisional Acceptance Certificate, each Solar Facility Provisional
Acceptance Certificate, the Final Acceptance Certificate and other actions
for which the approval of the Technical Advisor is required in accordance
with the form of Direct Agreement attached hereto as Annex
9;
|
|
(v)
|
the
requirement to obtain the prior approval of the Financial Institutions for
any change to the terms of this Contract upon the terms contemplated
herein;
|
|
(vi)
|
the
Contractor’s obligation to pay any amounts owed to the Owner under this
Contract to the account, if any, indicated in writing by the Financial
Institutions;
|
18.
|
CONFIDENTIALITY
|
(1)
|
The
Parties agree that this Contract and the Annexes hereto, and any written
or electronic information or documentation that any of the Parties
furnishes to the other for the performance of this Contract (including,
without limitation, technical documentation, plans, information,
procedures, patents and licenses) are confidential. Therefore, the Parties
undertake to keep the information confidential and to refrain from
disclosing, providing to third parties or using such information unless
such documentation and information (i) is known by the public without any
breach of this confidentiality commitment, (ii) has been legally obtained
from a third party, (iii) is requested by a judicial or governmental
authority, or (iv) the delivery of such documentation and information is
made in compliance with any legal obligations enforced upon the disclosing
Party.
|
(2)
|
The
Parties agree that the above shall not apply to any disclosure of
information made by any of the Parties to other entities of their Group
(within the meaning of Article 4 of Securities Market Law (Ley del Mercado de
Valores) 24/1988 of July 28), regulatory, tax or governmental
authorities, and their respective advisors and auditors, internal or
external, in relation to the information requested by them for the
development of the investigations, assessments and works carried out by
them, provided that, in each and every one of such cases, the parties
receiving the confidential information have assumed commitments of
confidentiality vis-à-vis the disclosing party on terms similar to this
one. In this case, such entities, authorities, advisors or auditors shall
have free access to the books, files, documents and information held by
the requested Party, and prior authorization is therefore not required
from the other Parties to furnish information to such entities,
authorities, advisors and/or auditors regarding this Contract and the
Annexes hereto and any other information or written documentation relating
hereto.
|
(3)
|
In
particular, the Owner is authorized to transmit information regarding this
Contract to the Owner and the Financial Institutions and to those
investors with interests in the construction and commercial operation of
the Solar Park who reasonably request information with respect to this
Contract, provided that they have assumed vis-à-vis the provider of such
information confidentiality undertakings upon terms substantially similar
hereto. Further, the Owner hereby authorizes the Contractor to
provide such information to the Financial
Institutions;
|
(4)
|
The
confidentiality commitment must be observed until the passage of two (2)
years from the date of execution of the Final Acceptance Certificate or
any termination of the Contract, regardless of the cause
thereof.
|
19.
|
NOTICES
|
(1)
|
All
notices and communications between the Parties for the purposes of this
Contract shall be made in writing, by certified mail, fax or courier
service, to the following
addresses:
|
(2)
|
The
Parties may change the above addresses by written notice to each other
given in the form and to the addresses mentioned
above.
|
(3)
|
Notices
shall be deemed received on the third (3rd) Business Day following the
dispatch thereof when sent by courier service (unless there is evidence of
earlier receipt) or the Business Day following the date on which there is
evidence of the receipt thereof in the case of faxes and certified
mail.
|
20
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation, to which the Contractor and the
Owner expressly submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje (CIMA)) of Madrid in accordance with the Procedural
Regulations thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by the Contractor and the other by
the Owner, and the two arbitrators so appointed shall appoint the third
one, who shall act as chairman of the arbitral tribunal. Should the two
first arbitrators fail to reach an agreement on the appointment of the
third arbitrator within ten (10) Business Days following the date of
acceptance of office by the second arbitrator, such arbitrator shall be
appointed by CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
NATURENER
SOLAR TINAJEROS, S.L.U.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
Part
|
Units
per
MW
|
Total
quantity
|
||||||
Mechanical
part
|
||||||||
Drive
bellows boot
|
0.4 | 4 | ||||||
Ground
braids, torque tube to pier
|
5 | 50 | ||||||
Module
mounting assemblies
|
5 | 50 | ||||||
MC
connectors
|
5 | 50 | ||||||
Actuator
(endless screw)
|
0.2 | 2 | ||||||
Low
voltage
|
||||||||
Solar
panels
|
10 | 100 | ||||||
Orientation
motor
|
0.4 | 4 | ||||||
GPS
+ PLC + clinometer
|
0.4 | 4 | ||||||
SunPower
controller (no housing)
|
0.4 | 4 | ||||||
Inverter
|
0.2 | 2 | ||||||
Communications
card for the inverter
|
0.4 | 4 | ||||||
Fuse
set for the inverter
|
0.4 | 4 | ||||||
Set
of overvoltage protective devices for the inverter
|
0.4 | 4 | ||||||
DC
fuses
|
5 | 50 | ||||||
Set
of overvoltage protective devices for the junction box
|
0.4 | 4 | ||||||
Junction
box
|
0.4 | 4 | ||||||
Fan
unit
|
0.4 | 4 | ||||||
Set
of sensors for the weather station
|
0.2 | 2 | ||||||
Communications
|
||||||||
MOXA
cards
|
0.2 | 2 | ||||||
Routers,
switches, hubs, etc.
|
0.2 | 2 | ||||||
Medium
voltage
|
||||||||
MV
fuses (if protective cabinets with fuses are installed)
|
0.4 | 4 | ||||||
Protective
relay
|
0.1 | 1 | ||||||
160
kVA transformer
|
0.1 | 1 |
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt/)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
MANUFACTURAS
ELÉCTRICAS
|
(www.me-sa.es)
|
SIEMENS
|
(www.siemens.es)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.1.2
|
SF6-insulated
cells and switchgear in metal
housings
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
INAEL
|
(www.inael.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
VEI
ELECTRIC SYSTEMS
|
(www.vei.it)
|
1.2
|
Power
transformers
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
IMEFY
|
(www.imefy.com)
|
ALKARGO
|
(www.iberapa.es)
|
ABB
TRAFO
|
(www.abb.com)
|
SIEMENS
|
(www.siemens.es)
|
INCOESA
|
(www.incoesa.com)
|
OASA
|
(www.oasanet.com)
|
CONSTRUCCIONES
ELÉCTRICAS JARA
|
(www.trafojara.com)
|
LAYBOX
|
(www.laybox.com)
|
1.3
|
Prefabricated
housings
|
POSTES
NERVIÓN
|
(www.postesnervion.es/)
|
PREPHOR
|
(www.prephor.com)
|
INAEL
|
(www.inael.com)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
AREVA
T&D
|
(www.areva-td.com)
|
BICC
GENERAL CABLE
|
(www.bicc.es)
|
PRYSMIAN
CABLES & SYSTEMS (PIRELLI CABLES Y SISTEMAS)
|
(www.es.prysmian.com)
|
NEXANS
|
(www.nexans.com)
|
SOLIDAL
CONDUCTORES ELÉCTRICOS
|
(www.solidal.pt)
|
INCASA
|
(www.incasa-cables.com)
|
ECN
CABLE GROUP
|
(www.ecn.es)
|
CONTECSA
|
(www.contecsa-spain.com)
|
CABELTE
|
(www.cabelte.pt)
|
MIGUELEZ
|
(www.miguelez.com)
|
1.1
|
Rectifiers
– battery chargers
|
ZIGOR
|
(www.zigor.com)
|
SAFT
POWER SYSTEMS IBERICA S.L.
|
(www.spsi.es)
|
EMISA
- EXIDE
|
(www.exide.com)
|
ENERTRON
|
(www.enertron.net)
|
1.2
|
Protective
cabinets and A.S. auxiliary services
control
|
PROYECTOS
MECA
|
(www.proymeca.com)
|
CYMI
|
(www.cymi.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
CUADRELEC
|
(www.cuadrelec.com)
|
1.3
|
Exterior
cabinets
|
PINAZO
|
(www.pinazo.com)
|
ELDON
|
(www.eldon.es)
|
HIMEL
|
(www.himel.com)
|
RITTAL
|
(www.rittal.es)
|
1.1
|
Indirect
and direct protective devices for MV
cells
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
ORMAZÁBAL
Y CÍA
|
(www.ormazabal.es)
|
ABB
T&D SYSTEMS
|
(www.abb.com)
|
AREVA
T&D
|
(www.areva-td.com)
|
SIEMENS
|
(www.siemens.es)
|
GENERAL
ELECTRIC
|
(www.GEIndustrial.com)
|
TEAM
ARTECHE
|
(www.teamarteche.es)
|
ZIV
|
(www.ziv.com)
|
1.2
|
Direct
LV protective devices
|
SCHNEIDER
ELECTRIC (MERLIN GERIN)
|
(www.merlingerin.es)
|
MOELLER
|
(www.moeller.es)
|
ABB
SISTEMAS INDUSTRIALES
|
(www.abb.com)
|
GOULD
|
(www.gould.com)
|
1.3
|
Metal-oxide
lightning rods
|
TYCO
ELECTRONICS RAYCHEM GMBH
|
(www.energy.tycoelectronics.com)
|
IBÉRICA
DE APARELLAJES
|
(www.iberapa.es)
|
INAEL
|
(www.inael.es)
|
ABB
|
(www.abb.es)
|
CELSA
|
(www.celsa.com)
|
1.1
|
PLCs
programmable logic controllers
|
SCHNEIDER
ELECTRIC
|
(www.schneider-electric.com)
|
BECKHOFF
|
(www.beckhoff.es)
|
ROCKWELL
AUTOMATION
|
(www.rockwellautomation.com)
|
GENERAL
ELECTRIC FANUC
|
(www.gefanuc.com)
|
1.2
|
Industrial
communications
|
HIRSCHMANN
|
(www.hirschmann.com)
|
MOXA
|
(www.moxa.com)
|
1.3
|
SCADA
system control and data acquisition
platforms
|
WONDERWARE
|
(www.wonderware.com)
|
GENERAL
ELECTRIC
|
(www.gefanuc.com)
|
1.4
|
Optical
fiber
|
NEXANS
|
(www.nexans.com)
|
CORNING
|
(www.corning.com)
|
OPTRAL
|
WWW.OPTRAL.COM
|
|
Party
of the first part,
|
(A)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L.U. (the “Contractor”)
|
(B)
|
NATURENER SOLAR TINAJEROS,
S.L.U. (the “Owner”).
|
(C)
|
CAJA CASTILLA LA MANCHA
(the “Agent”).
|
I.
|
The
Owner and the Contractor have executed on even date
herewith:
|
|
(i)
|
a
“turn-key” construction contract (the “Construction Contract”)
for the construction and start-up of a solar park en Albacete, composed of
one-hundred (100) solar facilities with a unit capacity at the panels
between 115 y 122 kWp y 100 kW at the inverter (the “Solar
Park”);
|
|
(ii)
|
a
maintenance agreement (the “Maintenance Agreement”)
for the performance by Contractor of the maintenance Work relating to the
Solar Park.
|
II.
|
In
order to finance, among other things, the payments that are the
responsibility of the Owner under the Construction Contract, the Owner has
entered into the following contracts, on even date herewith, registered as
public instruments before the Madrid Notary Mr. [l];
|
|
(i)
|
a
credit agreement in the maximum amount of [l] euros
(hereinafter, the “Credit
Agreement” or the “Loan”) with the Agent
and [l].
|
|
(ii)
|
an
interest rate hedge agreement (CMOF) and its corresponding Schedule with
[l], to cover
interest rate fluctuation risks relating to the Loan (hereinafter, the
master agreement and its Schedule together with the confirmations to be
executed in connection therewith, the “Interest Rate Hedge
Agreement”).
|
III.
|
To
guarantee the Owner’s obligations under the Credit Agreement and the
Interest Rate Hedge Agreement (hereinafter, collectively, the “Guaranteed Contracts”)
the Owner has granted on even date herewith (among others) a pledge
agreement, registered as a public instrument with the Madrid Notary Mr.
[l], pursuant
to which the rights under the Construction Contract and the Maintenance
Agreement (among others) were pledged to the Financial Institutions (the
“Pledge”).
|
IV.
|
In
consideration of the premises, and as a fundamental condition to the
execution of the Guaranteed Contracts by the Financial Institutions, the
Parties have agreed to execute this Contract whereby the Contractor
assumes certain obligations to the Financial Institutions with respect to
the Construction Contract, the Maintenance Agreement and the Guaranteed
Contracts, as follows.
|
1.
|
DEFINED
TERMS
|
2.
|
PLEDGE
|
(1)
|
The
Contractor hereby pledges all rights to receive payment from the Owner
under the Construction Contract and the Maintenance
Agreement.
|
(2)
|
As
a consequence of the foregoing, except in the event of receipt of a
written notice from Agent that the Pledge has been cancelled, the
Contractor agrees:
|
|
(i)
|
not
to convey or create any type of pledge, charge, lien or other security
right over the Contractor’s rights to receive payments under the
Construction Contract or the Maintenance Agreement, without the express
prior written approval of the
Agent;
|
|
(ii)
|
not
to honor any notice or instruction from the Owner that contravenes or
modifies the terms of the Pledge or of this
Contract;
|
|
(iii)
|
to
immediately notify the Agent of any breach by the Owner of its obligations
under the Construction Contract or the Maintenance
Agreement;
|
|
(iv)
|
to
pay any amounts payable by the Contractor to the Owner under the
Construction Contract or the Maintenance Agreement to the Owner’s account
no. [l] (the
“Principal
Account”), or to such other separate account as the Agent and the
Owner may jointly specify in writing. The Contractor acknowledges and
agrees that a payment made to any other current account or made in any
other manner shall not be considered a full discharge for the
Contractor;
|
|
(v)
|
upon
receipt of written notice from the Agent declaring the enforcement of the
Pledge, to deposit or transfer all funds relating to the payment rights
under the Construction Contract and/or the Maintenance Agreement in favor
of the Agent to the account designated by the Agent in
writing.
|
3.
|
NOTICE
OF EARLY TERMINATION EVENTS. BREACH BY THE OWNER.
|
(1)
|
The
Contractor agrees to provide notice to the Financial Institutions (through
the Agent) of the occurrence of any event of early termination of the
Construction Contract and/or the Maintenance Agreement, or of its own
intention to terminate either of such Contracts, by sending to the Agent a
copy of any notice sent to the Owner (which shall include, at a minimum,
the proposed date of termination of the Construction Contract and/or the
Maintenance Agreement –subject to the terms of subsection (2) below- and
the Contractor’s stated basis for such
termination).
|
(2)
|
The
Contractor acknowledges agrees that it may not, under any circumstances,
terminate the Construction Contract or the
Maintenance Agreement without first giving notice to the Agent
as provided for in the above subsection, and that, during the period from
the Agent’s receipt of such notice until fifteen (15) calendar days from
the date on which the Agent received such notice, the Agent may (but is
not so obligated), with the prior approval of the Financial Institutions
in accordance with the agreed majority voting percentages agreed to among
the Financial Institutions, take such measures as are necessary or
advisable to cure or eliminate such event of early termination under the
Construction Contract and/or the Maintenance
Agreement.
|
4.
|
CHANGES
TO THE CONSTRUCTION CONTRACT AND ACTIONS OF THE TECHNICAL ADVISOR
|
|
(i)
|
it
may not agree to any change to the Construction Contract or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clauses 2.4(4), 5.1(3) and 6.5(3) of the Construction
Contract without receiving the prior approval of the Financial
Institutions (the foregoing is without prejudice to the Contractor’s
rights under such Clauses);
|
|
(ii)
|
except
with respect to the assumed consent contemplated by Clause 4.3 of the
Construction Contract, the approval of the Technical Advisor must be
obtained in order for the Owner to approve a Payment Milestone
contemplated by such Clause;
|
|
(iii)
|
the
Technical Advisor must be present to observe the performance of the
Performance Tests, the Overall Test, the Production Tests and the
inspections required for execution of the Solar Facilities Provisional
Acceptance Certificates, the Solar Park Provisional Acceptance
Certificate, and the Final Acceptance Certificate, in accordance with the
notice periods set forth in Clauses 5.2 (1), 8.4(2) and 9(1) of the
Construction Contract. The periods provided for in such Clauses may not
begin to run if the Technical Advisor has not been invited to observe
within the notice periods provided in such Clauses. Results of
tests and inspections referred to in this subsection that were obtained
prior to the expiration of such periods and without the presence of the
Technical Advisor shall be invalid. However, the Technical Advisor’s
failure to attend despite having been duly invited in the manner and
within the notice periods provided for in this subsection shall not delay
the periods provided for in the Construction Contract for such tests and
inspections, nor shall it invalidate the results of the
same;
|
|
(iv)
|
except
as provided for in Clause 5.2(4) of the Construction Contract, the
execution of the Solar Facilities Provisional Acceptance Certificates, the
Solar Park Provisional Acceptance Certificate, and the Final Acceptance
Certificate must be accompanied by the approval of the Technical
Advisor;
|
|
(v)
|
the
Technical Advisor shall have the power the inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 6.2 of the Construction
Contract;
|
|
(vi)
|
the
Technical Advisor must approve quality controls for the solar modules and
has the authority to inspect such quality controls in order to confirm its
approval; and
|
|
(vii)
|
an
order to suspend the Work by the Owner pursuant to Clause 13.1 of the
Construction Contract shall not be valid unless it has been countersigned
by the Agent on behalf of the Financial
Institutions.
|
|
(i)
|
it
may not agree to any change to the Maintenance Agreement or any Change
Order or any other document that contains an agreement to make the changes
contemplated by Clause 2.4 of the Maintenance Agreement without first
receiving the prior approval of the Financial Institutions (the foregoing
is without prejudice to the Contractor’s rights under such Clause
2.4);
|
|
(ii)
|
the
Technical Advisor must receive the data and registrations at least fifteen
(15) calendar days in advance to make the availability calculations
referred to in Clause 7 of the Maintenance
Agreement;
|
|
(iii)
|
the
Technical Advisor shall have the authority to inspect the Site on the same
terms, and subject to the same restrictions, to which the Owner is
entitled under Clause 4(ii) of the Maintenance
Agreement.
|
5.
|
CUMULATIVE
NATURE OF THE OBLIGATIONS CONTEMPLATED BY THIS
AGREEMENT
|
6.
|
ASSIGNMENTS
|
6.1
|
Assignment
by the Financial Institutions
|
|
This
Contract is delivered for the benefit of the Financial Institutions, and
therefore inures to the benefit of their successors or assigns permitted
under the Guaranteed Contracts. Therefore, in the event of an assignment,
in whole or in part, of the interest of a Financial Institution under the
Guaranteed Contracts, or the replacement of the Agent under the terms of
the Credit Agreement, all references made in this public document to the
Financial Institutions and the Agent shall be understood to include
reference to their respective successors or assigns. An assignee must
present its position to the Contractor and the Owner, upon request, by
delivery of a copy of the document through which such assignment or
replacement of the Agent is made. However, the Agent must inform the
Contractor of its replacement with sufficient advance notice to permit the
Contractor to comply with its obligations under the Construction Contract,
the Maintenance Agreement and this
Agreement.
|
6.1
|
Assignment
by the Contractor
|
7.
|
NOTICES
|
(1)
|
Except
as otherwise expressly provided for, all notices and communications
between the Parties for the purposes of this Agreement shall be made in
writing, by certified mail, telegram with confirmed receipt, or for urgent
matters, by fax with a confirmation letter to be sent within the following
five (5) calendar days.
|
(2)
|
All
notices, requirements or other communications to the Financial
Institutions must be delivered to the Agent (notice to the Financial
Institutions shall be considered effective upon receipt by the
Agent).
|
(3)
|
The
Parties designate the following addresses for notice, communications and
routine matters:
|
|
The
Agent:
|
|
The
Owner:
|
(4)
|
Any
changes to the above addresses must be communicated to the other Parties
by certified mail, and shall only take effect as of the date that the
other Party receives such notice.
|
8.
|
LAW
AND JURISDICTION
|
9.
|
TERM
|
10.
|
TAXES
AND EXPENSES
|
NATURENER
SOLAR TINAJEROS, S.L.U.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.U.
|
|
CAJA
CASTILLA LA MANCHA
|
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
***
|
(1)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid, at calle Pradillo nº
5.
|
(2)
|
NATURENER SOLAR TINAJEROS,
S.L.U. (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-85128781.
|
(3)
|
MORALAS RENOVABLES, S.L.
NATURENER SOLAR
TINAJEROS, S.L.U. (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-79136636.
|
(4)
|
ALMURADIEL SOLAR, S.L.
NATURENER SOLAR
TINAJEROS, S.L.U. (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-82299587.
|
|
-
|
Turnkey
construction contract entered into between SunPower Energy Systems Spain,
S.L. and NATURENER SOLAR TINAJEROS, S.L. on November 6, 2007, for the
construction of a solar park in Albacete, consisting of one hundred (100)
Solar Facilities of 100kW each.
|
|
-
|
Turnkey
construction contract entered into between SunPower Energy Systems Spain,
S.L. and MORALAS RENOVABLES, S.L. on November 6, 2007, for the
construction of a solar park in Manzanares, consisting of fifty (50) Solar
Facilities of 100kW each.
|
|
-
|
Turnkey
construction contract entered into between SunPower Energy Systems Spain,
S.L. and ALMURADIEL SOLAR, S.L. on November 6, 2007, for the construction
of a solar park in Almuradiel, consisting of twenty five (25) Solar
Facilities of 100kW each.
|
|
|
||
NATURENER
SOLAR TINAJEROS, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.
|
||
MORALAS
RENOVABLES, S.L.
|
Signed:
Mr. Marco Antonio Northland
|
||
ALMURADIEL
SOLAR, S.L.
|
|||
Signed:
Mr. Juan Carlos Sirviente Rodrigo
|
(1)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid, at calle Pradillo nº
5.
|
(2)
|
ALMURADIEL SOLAR, S.L.
(hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-82299587.
|
|
I.
|
That
on November 6, 2007, Contractor and Owner entered into a turnkey
construction contract for the construction of a solar park in Almuradiel,
consisting of 25 Solar Facilities of 100kW each, which was amended by
virtue of another agreement entered into among others, by the Contractor
and the Owner on November 21, 2007 (hereinafter, jointly, the “Construction
Contract”).
|
|
II.
|
That
the Construction Contract included:
|
|
(i)
|
The
Owner’s undertaking to provide Contractor with the definitive geotechnical
report about the Site, so that Contractor confirms the modifications in
the Scope of Work and/or the Contract Price that may arise from the terms
of said geotechnical report;
|
|
(ii)
|
A
reference stating that the prices of the perimeter fences and the
monitoring system (Scada) of the tracker hubs were not included in the
Contract Price and therefore, the inclusion thereof in the Scope of Work
shall be conditioned upon Contractor’s delivery to Owner of an offer to
perform such works and the issuance of a Change Order agreeing to a new
Contract Price including such
items.
|
|
(iii)
|
The
need of reviewing the Technical Specifications attached as Annex 2 to the
Construction Contract by
Contractor.
|
|
III.
|
That
Owner has provided Contractor with the geotechnical report established in
paragraph (i) of Recital II above and the Technical Specifications, and
that the Parties have reached an agreement on the price of the perimeter
fences and the monitoring system (Scada) of the tracker
hubs.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
1
|
|
IV.
|
That
in order to formalize the agreement reached by the Parties on the issues
mentioned in Recitals II and III above, the Parties have decided to enter
into this Contract which shall be ruled by the
following
|
1.
|
DEFINED
TERMS
|
2.
|
AMENDMENTS
AND ADDENDA TO THE CONSTRUCTION
CONTRACT
|
(1)
|
Geotechnical
report: Contractor hereby acknowledges to have received the Site’s
definitive geotechnical report and to agree with it, and consequently, as
of this date, all the representations made in Section 3(4) of the
Construction Contract regarding the Site, are enforceable, being those
representations hereby granted by Contractor for the benefit of Owner.
Nevertheless, Owner accepts that the Site’s conditions derived from said
geotechnical report require an increase of *** in the Contract
Price.
|
(2)
|
Perimeter fences and
monitoring system: The Parties undertake to increase the Contract
Price in ***, which include the price requested by Contractor in order to
carry out the perimeter fences (***) and the monitoring system (Scada) of
the tracker hubs (***).
|
(3)
|
Technical
Specifications: Contractor hereby declares to have reviewed the
Technical Specifications that were attached as Annex 2 to the Construction
Contract, and to agree with them, not requiring their content to carry out
any amendment to the Construction
Contract.
|
(4)
|
As
a consequence of the above, the Parties agree to amend the following terms
of the Construction Contract:
|
|
(i)
|
References
made in Section 4.1(1) of the Construction Contract to the Contract Price,
shall be understood to be replaced by ***,
being the Contract Price consequently amended for all effects set forth
under the Construction Contract.
|
|
(ii)
|
The
amount established in Section 4.2(i) of the Construction Contract, shall
be understood to be replaced by ***.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
2
|
|
(iii)
|
The
amount established in Section 4.2(ii) of the Construction Contract, shall
be understood to be replaced by ***.
|
3.
|
VALIDITY
OF THE CONSTRUCTION CONTRACT
|
4.
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation (Ley española común), to
which Contractor and Owner expressly
submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje) (CIMA) of Madrid in
accordance with the Procedural Regulations (Reglamento de
Procedimiento) thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by Contractor and the other by Owner,
and the two arbitrators so appointed shall appoint the third one, who
shall act as chairman of the arbitral tribunal. Should the two first
arbitrators fail to reach an agreement on the appointment of the third
arbitrator within ten (10) Business Days following the date of acceptance
of office by the second arbitrator, such arbitrator shall be appointed by
CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
3
|
____________________________
|
__________________________
|
ALMURADIEL
SOLAR, S.L.U.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.
|
Signed:
Mr. Juan Carlos Sirviente
Rodrigo
|
Signed:
Mr. Marco Antonio Northland
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
4
|
(1)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid, at calle Pradillo nº
5.
|
(2)
|
MORALAS RENOVABLES, S.L.
(hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-79136636.
|
|
I.
|
That
on November 6, 2007, Contractor and Owner entered into a turnkey
construction contract for the construction of a solar park in Manzanares,
consisting of 50 Solar Facilities of 100kW each, which was amended by
virtue of another agreement entered into among others, by Contractor and
Owner on November 21, 2007 (hereinafter, jointly, the “Construction
Contract”).
|
|
II.
|
That
the Construction Contract included:
|
|
(i)
|
The
Owner’s undertaking to provide Contractor with the definitive geotechnical
report about the Site, so that Contractor confirms the modifications in
the Scope of Work and/or the Contract Price that may arise from the terms
of said geotechnical report;
|
|
(ii)
|
A
reference stating that the prices of the perimeter fences and the
monitoring system (Scada) of the tracker hubs were not included in the
Contract Price and therefore, the inclusion thereof in the Scope of Work
shall be conditioned upon Contractor’s delivery to Owner of an offer to
perform such works and the issuance of a Change Order agreeing to a new
Contract Price including such
items.
|
|
(iii)
|
The
need of reviewing the Technical Specifications attached as Annex 2 to the
Construction Contract by
Contractor.
|
|
III.
|
That
Owner has provided Contractor with the geotechnical report established in
paragraph (i) of Recital II above and the Technical Specifications, and
that the Parties have reached an agreement on the price of the perimeter
fences and the monitoring system (Scada) of the tracker
hubs.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
1
|
|
IV.
|
That
in order to formalize the agreement reached by the Parties on the issues
mentioned in Recitals II and III above, the Parties have decided to enter
into this Contract which shall be ruled by the
following
|
1.
|
DEFINED
TERMS
|
2.
|
AMENDMENTS
AND ADDENDA TO THE CONSTRUCTION
CONTRACT
|
(1)
|
Geotechnical
report: Contractor hereby acknowledges to have received the Site’s
definitive geotechnical report and to agree with it, and consequently, as
of this date, all the representations made in Section 3(4) of the
Construction Contract regarding the Site, are enforceable, being those
representations hereby granted by Contractor for the benefit of Owner.
Likewise, Contractor declares that the Site’s conditions do not require to
carry out any increase in the Contract
Price.
|
(2)
|
Perimeter fences and
monitoring system: The Parties undertake to increase the Contract
Price in *** Euro, which include the price requested by Contractor in
order to carry out the perimeter fences (*** Euro) and the monitoring
system (Scada) of the tracker hubs (***
Euro).
|
(3)
|
Technical
Specifications: Contractor hereby declares to have reviewed the
Technical Specifications that were attached as Annex 2 to the Construction
Contract, and to agree with them, not requiring their content to carry out
any amendment to the Construction
Contract.
|
(4)
|
As
a consequence of the above, the Parties agree to amend the following terms
of the Construction Contract:
|
|
(i)
|
References
made in Section 4.1(1) of the Construction Contract to the Contract Price,
shall be understood to be replaced by ***,
being the Contract Price consequently amended for all effects set forth
under the Construction Contract.
|
|
(ii)
|
The
amount established in Section 4.2(i) of the Construction Contract, shall
be understood to be replaced by ***.
|
(iii)
|
The
amount established in Section 4.2(ii) of the Construction Contract, shall
be understood to be replaced by ***.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
2
|
(5)
|
Lastly,
the Parties state that they incurred in a mistake defining the Guarantee
Period and the Production Guarantee Period in the Construction Contract,
as a consequence, they agree on replacing them by the following
definitions:
|
3.
|
VALIDITY
OF THE CONSTRUCTION CONTRACT
|
4.
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation (Ley española común), to
which Contractor and Owner expressly
submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje) (CIMA) of Madrid in
accordance with the Procedural Regulations (Reglamento de
Procedimiento) thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by Contractor and the other by Owner,
and the two arbitrators so appointed shall appoint the third one, who
shall act as chairman of the arbitral tribunal. Should the two first
arbitrators fail to reach an agreement on the appointment of the third
arbitrator within ten (10) Business Days following the date of acceptance
of office by the second arbitrator, such arbitrator shall be appointed by
CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
3
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
____________________________
|
__________________________
|
MORALAS
RENOVABLES, S.L.U.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.
|
Signed:
Mr. Juan Carlos Sirviente
Rodrigo
|
Signed:
Mr. Marco Antonio Northland
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
4
|
(1)
|
SUNPOWER ENERGY SYSTEMS SPAIN,
S.L. (hereinafter, the “Contractor”), with a
registered office in Madrid, at calle Pradillo nº
5.
|
(2)
|
NATURENER SOLAR TINAJEROS,
S.L.U. (hereinafter, the “Owner”), with a
registered office at calle Núñez de Balboa, 120, 7º, 28006, Madrid and
having Tax Identification Code (CIF) number
B-85128781.
|
|
I.
|
That
on November 6, 2007, Contractor and Owner entered into a turnkey
construction contract for the construction of a solar park in Albacete,
consisting of one hundred (100) Solar Facilities of 100kW each, which was
amended by virtue of another agreement entered into among others, by the
Contractor and Owner on November 21, 2007 (hereinafter, jointly, the
“Construction
Contract”).
|
|
II.
|
That
the Construction Contract included:
|
|
(i)
|
The
Owner’s undertaking to provide Contractor with a copy of all the licences
and authorizations referred to in Section 3(2)(i) of the Construction
Contract, so that Contractor shall confirm the amendments to the Scope of
Work and/or to the Contract Price that may arise from the terms of said
licenses and authorizations;
|
|
(ii)
|
A
reference stating that the prices of the perimeter fences and the
monitoring system (Scada) of the tracker hubs were not included in the
Contract Price and therefore, the inclusion thereof in the Scope of Work
shall be conditioned upon Contractor’s delivery to Owner of an offer to
perform such works and the issuance of a Change Order agreeing to a new
Contract Price including such
items.
|
|
III.
|
That
Owner has provided Contractor with the documentation established in
paragraph (i) of Recital II above, and that the Parties have reached an
agreement on the price of the perimeter fences and the monitoring system
(Scada) of the tracker hubs.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
1
|
|
IV.
|
That
in order to formalize the agreement reached by the Parties on the issues
mentioned in Recitals II and III above, the Parties have decided to enter
into this Contract which shall be ruled by the
following
|
1.
|
DEFINED
TERMS
|
2.
|
AMENDMENTS
AND ADDENDA TO THE CONSTRUCTION
CONTRACT
|
(1)
|
Authorizations and
licenses: Contractor hereby acknowledges to have received from
Owner all the authorizations and licenses referred to in Section 3(2)(i)
of the Construction Contract, and in particular the
following:
|
|
-
|
Resolution
of the General Directorate of Industry and Energy (Dirección General de Industria
y Energía) of the Castilla-La Mancha Region Board dated April 24,
2006 by virtue of which the facilities 1 and 100 of the project are
included in the special regime (REPE) producing facilities, as well as the
previous registration with the Registry of electric energy production
facilities included in the special regime (Registro de Instalaciones de
Producción de Energía Eléctrica acogidas al Régimen Especial,
“RAIPRE”).
|
|
-
|
Resolution
of the General Directorate of Industry and Energy (Dirección General de Industria
y Energía) of the Castilla-La Mancha Region Board dated February 7,
2007 about administrative authorization and approval of the execution
project.
|
|
-
|
Resolution
of the General Directorate of Industry and Energy (Dirección General de Industria
y Energía) of the Castilla-La Mancha Region Board dated October 17,
2007 authorizing the transfer of the plant’s ownership
from Naturener, S.A. to Naturener Solar Tinajeros,
S.A.
|
|
-
|
Letter
from Iberdrola to Naturener, S.A. dated March 13, 2007 in relation with
the connection point.
|
|
-
|
Agreement
entered into between Naturener, S.A. and Iberdrola Distribución
Eléctrica, S.A.U. in accordance with the generated energy evacuation,
dated September 5, 2007.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
2
|
|
-
|
Agreement
dated June 22, 2007 in relation with the reinforcement of the evacuation
capacity in the Albacete region’s electric subsystem (connection in ST.
Romica) entered into among several electric energy’s generator included in
the special regime and Iberdrola Distribución Eléctrica,
S.A.U.
|
|
-
|
Letter
sent by Naturener, S.A. and Naturener Solar Tinajeros, S.A. to Iberdrola
Distribución Eléctrica, S.A.U. in relation with the assignment of the
connection point, dated November 13,
2007.
|
|
-
|
Registration
of Naturener Solar Tinajeros, S.A. in the Registry of dangerous wastes’
small producers of Castilla-La Mancha (Registro de pequeños
productores de residuos peligrosos de Castilla-La Mancha)
(fecha indeterminada).
|
|
-
|
Local
works licence and planning qualification for the implementation of the
project granted by the City Council of Albacete on Novemeber 21,
2007.
|
|
-
|
Resolution
of the General Directorate of Patrimony of the the Castilla-La Mancha
Region Board, dated January 26,
2007.
|
|
-
|
Resolution
of the City Council of Albacete dated August 31, 2007 providing Naturener,
S.A. with the spill dispensation.
|
|
-
|
Resolution
of the Regional Authority of Environment and Rural Development (Delegación Provincial de Medio
Ambiente y Desarrollo Rural) of Albacete dated October 24, 2007 by
means of which it is stated that the project’ s environmental impact does
not need to be evaluated.
|
|
-
|
Technical
report issued by the Environmental Evaluation Office of the Regional
Environment and Rural Development Ministry (Servicio de Evaluación
Ambiental de la Consejería de Medio Ambiente y Desarrollo Rural)
dated Novemeber 20, 2007 in relation with the additional documentation
about the project submitted by Naturener,
S.A.
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
3
|
(2)
|
Perimeter fences and
monitoring system: The Parties undertake to increase the Contract
Price in ***, which include the price requested by Contractor in order to
carry out the perimeter fences (***) and the monitoring system (Scada) of
the tracker hubs (***).
|
(3)
|
As
a consequence of the above, the Parties agree to amend the following terms
of the Construction Contract:
|
|
(i)
|
References
made in Section 4.1(1) of the Construction Contract to the Contract Price,
shall be understood to be replaced by ***,
being the Contract Price consequently amended for all effects set forth
under the Construction Contract.
|
|
(ii)
|
The
amount established in Section 4.2(i) of the Construction Contract, shall
be understood to be replaced by ***.
|
|
(iii)
|
The
amount established in Section 4.2(ii) of the Construction Contract, shall
be understood to be replaced by ***.
|
(4)
|
Lastly,
the Parties declares that they incurred in a mistake defining the
Guarantee Period and the Production Guarantee Period in the Construction
Contract, as a consequence, they agree on replacing them by the following
definitions:
|
3.
|
VALIDITY
OF THE CONSTRUCTION CONTRACT
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
4
|
4.
|
LAW
AND JURISDICTION
|
(1)
|
This
Contract and all issues that may arise between the Parties in relation
hereto or in connection herewith shall be exclusively governed by
generally applicable Spanish legislation (Ley española común), to
which Contractor and Owner expressly
submit.
|
(2)
|
The
Parties agree that any litigation, dispute, issue or claim resulting from
the performance or interpretation of this Contract, or directly or
indirectly related hereto, shall be definitively resolved by arbitration
at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
Arbitraje) (CIMA) of Madrid in
accordance with the Procedural Regulations (Reglamento de
Procedimiento) thereof.
|
(3)
|
The
Arbitral Tribunal shall be composed of three (3) arbitrators appointed
from CIMA’s list of arbitrators: one by Contractor and the other by Owner,
and the two arbitrators so appointed shall appoint the third one, who
shall act as chairman of the arbitral tribunal. Should the two first
arbitrators fail to reach an agreement on the appointment of the third
arbitrator within ten (10) Business Days following the date of acceptance
of office by the second arbitrator, such arbitrator shall be appointed by
CIMA.
|
(4)
|
The
arbitration shall be conducted, and the award shall be rendered, in Madrid
(Spain) and in the Spanish
language.
|
(5)
|
The
Parties therefore expressly waive any other jurisdiction to which they may
be entitled under Law, and commit to abide by and submit to the
arbitration award that may be
rendered.
|
(6)
|
The
Parties expressly waive any other jurisdiction that may apply and submit
to the jurisdiction of the Courts and Tribunals of the city of Madrid for
any litigation, dispute or claim that by mandate of law may not be
resolved by, or submitted to, the arbitration provided under this Clause
or, if applicable, for the formalization of the arbitration or the
enforcement of the arbitral award.
|
____________________________
|
__________________________
|
NATURENER
SOLAR TINAJEROS, S.L.
|
SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.
|
Signed:
Mr. Rafael Sánchez-Castillo
Lodares
|
Signed:
Mr. Marco Antonio Northland
|
Mr.
Juan Francisco Quiroga Fernández-Ladreda
|
*** CONFIDENTIAL MATERIAL REDACTED AND
SEPARATELY FILED WITH THE COMMISSION***
|
5
|
Subsidiary
Name
|
Jurisdiction
|
Greater
Sandhill I, LLC
|
Delaware
|
Helios
Solar Star A-1 Company
|
Novia
Scotia, Canada
|
Helios
Solar Star A-1, L.P.
|
Novia
Scotia, Canada
|
High
Plains Ranch I, LLC
|
Delaware
|
High
Plains Ranch II, LLC
|
Delaware
|
MS
Solar Star I, LLC
|
Delaware
|
Pluto
Acquisition Company LLC
|
Delaware
|
Solar
Service S.r.l.
|
Italy
|
Solar
Star ATI Fountain Grove, LLC
|
Delaware
|
Solar
Star Estancia I, LLC
|
Delaware
|
Solar
Star HI Air, LLC
|
Delaware
|
Solar
Star HP I, LLC
|
Delaware
|
Solar
Star I, LLC
|
Delaware
|
Solar
Star II, LLC
|
Delaware
|
Solar
Star Koyo I, LLC
|
Delaware
|
Solar
Star LC I, LLC
|
Delaware
|
Solar
Star Mervyns I, LLC
|
Delaware
|
Solar
Star MW III, LLC
|
Delaware
|
Solar
Star MW IV, LLC
|
Delaware
|
Solar
Star MWHI I, LLC
|
Delaware
|
Solar
Star Rancho CWD I, LLC
|
Delaware
|
Solar
Star TM Innovations, LLC
|
Delaware
|
Solar
Star TMI, LLC
|
Delaware
|
Solar
Star TO, LLC
|
Delaware
|
Solar
Star YC, LLC
|
Delaware
|
SPWR
Energias Renovaveis Unipessoal Limitada
|
Portugal
|
SunPower
Corporation (Switzerland) Sarl
|
Switzerland
|
SunPower
Corporation, Systems
|
Delaware
|
SunPower
Energy Systems Canada Corporation
|
Novia
Scotia, Canada
|
SunPower
Energy Systems Italy S.r.l.
|
Italy
|
SunPower
Energy Systems Spain, S.L.
|
Spain
|
SunPower
GmbH
|
Germany
|
SunPower
Italia S.r.l.
|
Italy
|
SunPower
North America, Inc.
|
Delaware
|
SunPower
Philippines Ltd. – Regional Operating Headquarters
|
Cayman
Islands
|
SunPower
Philippines Manufacturing Ltd.
|
Cayman
Islands
|
SunPower
Systems SA
|
Switzerland
|
SunPower
Technology Ltd.
|
Cayman
Islands
|
Joint
Venture Name
|
Jurisdiction
|
First
Philec Solar Corporation
|
Philippines
|
Morgan
Stanley SunPower Solar 2007 LLC
|
Delaware
|
Woongjin
Energy Company, Ltd.
|
Korea
|
Subsidiary
|
dba
|
SunPower
Corporation, Systems
|
PowerLight
Corporation
|
SunPower
Corporation, Systems
|
SP
Energy Systems
|
SunPower
Corporation, Systems
|
SP
Energy Systems Corporation
|
SunPower
Corporation, Systems
|
SP
Corporation, Systems
|
SunPower
Corporation, Systems
|
SunPower
Energy Systems
|
I,
Thomas H. Werner, Chief Executive Officer of SunPower Corporation, certify
that:
|
1.
|
I
have reviewed this Annual Report on Form 10-K of SunPower
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
/S/THOMAS
H. WERNER
|
|
Thomas
H. Werner
|
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
I,
Emmanuel T. Hernandez, Chief Financial Officer of SunPower Corporation,
certify that:
|
1.
|
I
have reviewed this Annual Report on Form 10-K of SunPower
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
/S/EMMANUEL
T. HERNANDEZ
|
|
Emmanuel
T. Hernandez
|
|
Chief
Financial Officer
|
|
(Principal
Financial and Accounting Officer)
|
/S/THOMAS
H. WERNER
|
|
Thomas
H. Werner
|
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
|
/S/EMMANUEL
T. HERNANDEZ
|
|
Emmanuel
T. Hernandez
|
|
Chief
Financial Officer
|
|
(Principal
Financial and Accounting Officer)
|