Agenda packet — Glendale City Council, June 2, 2026 (part 1 of 3)

A G E N D A

GLENDALE CITY COUNCIL

COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor
Glendale, CA 91206
JUNE 2, 2026 - 6:00 PM
FUTURE AGENDA REQUESTS – 3:00 PM
REGULAR BUISNESS AGENDA – 6:00 PM

PUBLIC PARTICIPATION AND ACCESSIBILITY

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PUBLIC COMMENT GUIDELINES
The City Council welcomes public input at City Council meetings. Public input at Council meetings is regulated by the City Council’s Rules of Order, Procedure and Decorum for the Conduct of City Council Meetings as set forth in Resolution No. 25-76, which will be summarized below.

Written Comments and Documents
:

Public comments received in writing will NOT be read aloud at the meeting but will be part of the meeting record. Written public comments can be emailed to [email protected], and will be uploaded to the City website as an attachment to the agenda item. When submitting a public comment, please make sure to include the following
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1. Name (optional); and

2. Agenda item to which you are submitting public comment

3. Submit no later than 12:00 p.m. on the day of the City Council meeting. Correspondence received after this time may not be distributed until the following business day.

All documents related to open session items on this agenda that are received less than 72 hours prior to this meeting, and are public records, will be available for review in the Office of the City Clerk, 613 E. Broadway, Room 110, Glendale, CA 91206.

Public Comments During Council Meeting
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Public Comments during Community Event Announcements, First and Second Periods of Oral Communications and agenda items will be governed as provided in the descriptions for those items on the agenda below. Pursuant to State law, the City Council may not discuss or take action on any item not appearing on the meeting agenda, except that members of the City Council or staff may ask a question for clarification or briefly respond to statements made or questions posed by persons exercising public testimony rights (Government Code Section 54954.2). Staff may be asked to follow up on such items.

Submitting Speaker Cards or Calling In for Public Comment :

Speaker cards must be submitted and telephonic participants must call in and be in the call-in queue as follows:
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Community Event Announcements or First or Second Period of Oral Communications: PRIOR TO the commencement of the specific comment period
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Consent Calendar Items: BEFORE a motion is made on the consent calendar •
Other agenda items, including Action items: PRIOR to the completion of the verbal staff report (unless waived by the Mayor)
Any audio-visual files displayed by speakers must be emailed to the Clerk’s office by 12:00 pm on the day before a Council meeting.

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JUNE 2, 2026 - 6:00 PM
FUTURE AGENDA REQUESTS – 3:00 PM
REGULAR BUISNESS AGENDA – 6:00 PM

ROLL CALL

1. DISCUSSION OF COUNCILMEMBER FUTURE AGENDA REQUESTS – 3:00 PM a.

Mayor Kassakhian’s Request for a Discussion on a Compensation Management Policy that Considers the City’s Financial Status
b.

Mayor Kassakhian’s Request to Agendize a Report to Consider Retaining a Financial Consultant to Review the City’s Fiscal Condition

2. CLOSED SESSION

3. REGULAR BUSINESS AGENDA
– 6:00 PM
Roll Call
a.

Flag Salute
b.

Invocation
c.

Report of the City Clerk, re: Posting of Agenda. The Agenda for the June 2, 2026 Regular Meeting of the Glendale City Council was Posted on May 28, 2026, on the Bulletin Board Outside City Hall.

4. PRESENTATIONS AND APPOINTMENTS

5. CONSENT ITEMS
(Including Minutes)
The following are routine and may be acted upon by one motion. Any Member of Council or the audience requesting separate consideration may do so by making such request before motion is proposed.
a.

Police Department, re:

The Police Department’s 2025 Specialized Equipment Use
Report

1. Motion to note and file this report
b.

Public Works, re: Award Construction Contract for the Renovation of Fire Station No. 27 Project

1. Motion authorizing the City Manager or his designee to execute a construction contract with ARC Construction, Inc. for the Renovation of Fire Station No. 27 Project, in the amount of $979,503 plus a 7.4% construction reserve of $72,659

6. CITY COUNCIL/STAFF COMMENTS
(Including reports from conferences and regional
meetings)

7. COMMUNITY EVENT ANNOUNCEMENTS
(3-minutes per speaker)
Members of the public will be permitted to announce upcoming events taking place in the community.

8. FIRST PERIOD OF ORAL COMMUNICATIONS
(Maximum 3 minutes per speaker, 30-minute
aggregate speaking time limit)
Members of the public may address the Council on agenda items or non-agenda items within the City Council’s subject matter jurisdiction. If a speaker addresses the Council on an agenda

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item during the First Period of Oral Communications, they may not speak again when the agenda item is called. A speaker who addresses the Council on non-agenda items during the First Period of Oral Communications may not speak during the Second Period of Oral Communications.

9. ADOPTION OF ORDINANCES

10. ACTION ITEMS
a.

Glendale Water and Power, re: Solar Energy Power Sales Agreement: 30-Year Power Sales Agreement (PSA) with Southern California Public Power Authority (SCPPA) for Purchase of 25 MW from Notch Peak Project

1. Resolution authorizing a 30-year Power Sales Agreement (PSA) with Southern California Public Power Authority (SCPPA) for the purchase of 25 MW (or equivalently, a 7.72% entitlement share of the 324 MW contract capacity) of renewable solar energy and environmental attributes from the Notch Peak Project, and finding that the City’s action authorizing purchase of 25 MW of solar power from SCPPA is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines sections 15061 and 15277

11. HEARINGS

12. REPORTS - INFORMATION

13. WRITTEN COMMUNICATIONS

14. SECOND PERIOD OF ORAL COMMUNICATIONS
Discussion is limited to items NOT a part of this agenda. Each speaker is allowed 5 minutes.

Council may question or respond to the speaker, but there will be no debate or decision. The City Manager may refer the matter to the appropriate department for investigation and report.

15. NEW BUSINESS

16. ADJOURNMENT

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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: The Police Department’s 2025 Specialized Equipment Use Report

1. Motion to note and file this report.

COUNCIL ACTION
Item Type: Consent Calendar
Approved for June 2, 2026 calendar

EXECUTIVE SUMMARY
Pursuant to Government Code §7070, the Glendale Police Department must obtain the City Council’s annual approval to use Military Equipment/Specialized Equipment, as defined in Government Code §7070(c). Specialized Equipment supports the Glendale Police Department’s mission of protecting Glendale while preserving trust.

RECOMMENDATION
That the City Council approve a motion to note and file this report.

ANALYSIS
Pursuant to Government Code §7072(a), the Glendale Police Department must obtain City Council’s annual approval to use Specialized/Military Equipment, as defined in Government Code §7070(c). In April 2022, the City Council passed an ordinance adopting the Specialized Equipment Use Policy (Policy 705), which satisfied the requirements of the code.

Under Government Code § 7070, what is designated as “military equipment” is termed “Specialized Equipment” in Policy 705. Policy 705 sets forth the Department’s statutory duties, which include, among other requirements, the Glendale Police Department’s annual submission of a Specialized Equipment Use Report to the City Council, detailing every item of Specialized Equipment owned or employed by the Department.

Each annual Specialized Equipment Use Report shall, at a minimum, provide the following information for the immediately preceding calendar year, organized by each category of military equipment as defined in Government Code § 7070:
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• A summary of how the specialized equipment was used and the purpose of its use.
• A summary of any complaints or concerns received concerning the specialized equip ment.
• The results of any internal audits, any information about violations of the specialized equipment use policy, and any actions taken in response. • The total annual cost for each type of specialized equipment, including acquisition, train ing, transportation, maintenance, storage, upgrades, and other ongoing costs, and the funding source for the following year. • The quantity possessed for each type of specialized equipment. • If the Department intends to acquire additional specialized equipment, the quantity sought for each type.

Specialized Equipment is described in Government Code §7070(c)(1)-(15) as follows:

1. Unmanned remotely piloted powered aerial or ground vehicles.

2. Mine-resistant ambush protected (MRAP) vehicles or armored personnel carriers.

3. High mobility multipurpose wheeled vehicles, 2½-ton trucks, 5-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.

4. Tracked armored vehicles that provide ballistic protection to their occupants.

5. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

6. Weaponized aircraft, vessels, or vehicles of any kind.

7. Explosive breaching apparatuses (excluding handheld one-person ram).

8. Firearms of .50 caliber or greater, excluding standard issue shotguns.

9. Ammunition of .50 caliber or greater, excluding standard issue shotgun ammunition.

10.Specialized firearms and ammunition of less than .50 caliber, including assault weapons (per Penal Code §§ 30510, 30515), excluding standard issue service weapons and ammunition.

11.Launchers for explosive projectiles.

12.“Flashbang” grenades, tear gas, pepper balls (excluding standard handheld pepper spray).

13.Taser Shockwave, microwave weapons, water cannons, LRAD.

14.40mm projectile launchers, bean bag rounds, rubber bullets, specialty impact munitions.

15.Any other equipment requiring additional oversight as determined by state or governing body.

STAKEHOLDERS/OUTREACH
In accordance with Government Code §7072(b) and Policy 705, the 2025 Report was posted on the Transparency Reports section of the Glendale Police Department website on March 11, 2026. After 30 days of submitting and publicly releasing the annual Specialized Equipment Use Report, pursuant to this section, a well-publicized and 6 of 489

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conveniently located community engagement meeting shall be held. The meeting was announced on the Police Department’s and City’s social media outlets on March 11, 2026.

A public hearing presenting the report was held on April 22, 2026, in the Rick Reyes Community Room.

FISCAL IMPACT
Future costs to restock inventory and maintain equipment will be addressed during the Police Department’s annual budget process.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action being considered does not constitute a “project” within the meaning of the CEQA pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES TO STAFF RECOMMENDATION
None – this action is required by federal law .

ADMINISTRATIVE ACTION
Submitted by:

Robert William, Interim Police Chief
Prepared by:

Kevin Dizon, Police Lieutenant
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Attachment A – Glendale Police Department 2025 Specialized Equipment Use Report. 7 of 489

MOTION
Moved by Council Member , seconded by Council Member , that the Council of the City of Glendale hereby notes and files the Specialized Equipment/Military Equipment report as outlined in the Report to Council dated June 2, 2026.

Vote as Follows:

Ayes:

Noes:

Absent:

Abstain:
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GLENDALE POLICE DEPARTMENT
2025
Specialized Equipment
Use Report

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Table of Contents
Introduction 1
Definitions 2
Summary of Specialized Equipment 3
Unmanned Aircraft Systems 4
Unmanned Ground Vehicles 6
Armored Personnel Carriers 8
Mobile Command and Control Vehicles 9
Breaching Apparatus, Breaching Shotgun System, and Kinetic Breaching Equipment 11 Specialized Firearms and Ammunition of Less Than .50 Caliber 13 Firearm or Firearm Accessory That Is Designed to Launch Explosive Projectiles 16 Noise-Flash Diversionary Devices 17
Sting Ball Munitions 18
Chemical Agents and Chemical Agent Delivery Devices 19
Long-Range Acoustic Devices 24
Kinetic Energy 40mm Weapons and Munitions 25
Pepper Ball Launchers and Pepper Ball Munitions 28
Specialized Equipment Not Owned or Used 29
2025 Specialized Equipment Use Summary 30
Summary of Complaints Regarding Specialized Equipment Use in 2025 37 Summary of Violations of Specialized Equipment in 2025 38 Fiscal Impact 39
Projected Acquisitions in 2026 41
Conclusion 42

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Data in this report is considered accurate at the time of distribution and subject to change without notice. 12 of 489

Introduction
2025 Specialized Equipment Use Report 1

The Glendale Police Department is committed to maintaining public safety by providing the highest quality of police services to the City of Glendale. The Department retains and employs a wide variety of specialized equipment to aid in de-escalating intense situations or to bring volatile conditions and critical incidents to a safe resolution. The mere possession of this equipment does not guarantee its use in every circumstance.

The Glendale Police Department recognizes that critical incidents are unpredictable and can be very dynamic in nature. A variety of specialized equipment options can greatly help incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. The use of specialized equipment is limited to specific instances and, in some cases, certain units. While the procedures for specialized equipment are comprehensive, they do not cover every possible scenario.

There may be situations where incident commanders need to authorize the use of specialized equipment in a manner not explicitly outlined in Departmental procedures. In such cases, the judgment of the incident commander, based on the totality of the circumstances, public safety, officer safety, civil rights, and available information at the time, will be used. It is the responsibility of incident commanders, supervisors, individual officers, and specific units to recognize when the use of specialized equipment is necessary to enhance public and officer safety and to bring critical incidents to a safe resolution.

The Glendale Police Department does not have any equipment obtained from the military, nor does it use equipment designed for military purposes. The Department also does not receive or use surplus military equipment from the Federal government. The Department’s policy is to acquire and use equipment that is specifically designed to enhance municipal law enforcement’s capability to ensure public safety and welfare.

Items classified as “military equipment” by Government Code §7070 are considered a part of the overall best practices for law enforcement agencies across the country. This equipment has been field-tested and are used by law enforcement agencies to improve community and officer safety. The term “military equipment” in Government Code §7070 does not necessarily refer to equipment that has been used by the military. Pursuant to AB 481, items classified as “military equipment” include, but are not limited to, unmanned aerial or ground vehicles, armored vehicles, command and control vehicles, pepper-ball launchers, less-lethal shotguns, less-lethal 40mm projectile launchers, long-range acoustic devices, and distraction devices. The Glendale Police Department’s policy is to acquire and use equipment designed to enhance law enforcement’s ability to ensure public safety and welfare. It is also the Department’s policy that its members comply with the provisions of Government Code §7071 regarding the use of “military equipment." The Glendale Police Department’s Specialized Equipment Use Policy establishes guidelines for the acquisition, funding, use, and reporting of “military equipment”, as the term is defined in Government Code §7070(c). The equipment identified as “military equipment” in Government Code §7070(c) is referred to as “Specialized Equipment” in this policy and for all reporting purposes.

In addition to maintaining the highest levels of public safety, the Glendale Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the Department has authored the following 2025 Specialized Equipment Use Report in accordance with annual reporting requirements set forth in AB 481.

With this indispensable equipment and relentless fortitude, the Glendale Police Department continues to stand ready to fulfill our mission: to protect Glendale, preserve trust, and maximize our potential. 13 of 489

Definitions
2 Glendale Police Department

It is the policy of the Glendale Police Department that members of this Department comply with the provisions of Government Code §7070-7072 in the funding, acquisition, or use of Specialized Equipment as defined in this policy.

Definitions related to this policy include (Government Code §7070):

“Governing body” means the elected or appointed body that oversees the Glendale Police Department, namely Glendale City Council.

“Specialized equipment” means the following:

1. Unmanned, remotely piloted, powered aerial or ground vehicles.

2. Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers.

3. High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached.

4. Tracked armored vehicles that provide ballistic protection to their occupants.

5. Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

6. Weaponized aircraft, vessels, or vehicles of any kind.

7. Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.

8. Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.

9. Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code §30510 and Penal Code §30515, with the exception of standard-issue firearms and ammunition of less than .50 caliber that are issued to officers.

10. Any firearm or firearm accessory that is designed to launch explosive projectiles.

11. Noise-flash diversionary devices and explosive breaching tools.

12. Munitions containing tear gas or oleoresin capsicum (OC), excluding standard, service-issued handheld pepper spray.

13. TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).

14. Kinetic energy weapons and munitions.

15. Any other equipment as determined by a governing body or a state agency to require additional oversight.

16. Notwithstanding paragraphs (1) through (15), “Specialized Equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency.

All Specialized Equipment kept and maintained by the Glendale Police Department shall be cataloged in a way which addresses each of the following requirements:

1. The manufacturer’s description of the equipment.

2. The capabilities of the equipment.

3. The purposes and authorized uses for which the Department proposes to use the equipment.

4. The expected lifespan of the equipment.

5. The fiscal impact of the equipment, both initially and for on-going maintenance.

6. The quantity of the equipment, whether maintained or sought.

7. The legal and procedural rules that govern each authorized use.

8. The training that must be completed by officers before use is authorized. 14 of 489

Summary of Specialized Equipment
2025 Specialized Equipment Use Report 3

The inventory of specialized equipment fluctuates regularly due to various factors, including operational usage, wear and tear, training, maintenance, and expiration and replenishment guidelines. The Glendale Police Department is committed to transparency in disclosing its specialized equipment inventory and related information to the community and elected officials in compliance with the law. The Department strives to provide the most accurate information regarding specialized equipment inventory at the time of this report’s publication.

Outlined herein are the different types, descriptions, and guidelines for the use of specialized equipment currently utilized by the Glendale Police Department.
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Unmanned Aircraft Systems
4 Glendale Police Department

Unmanned Aircraft Systems: Unmanned aircraft systems provide officers with aerial imaging and situational awareness during law enforcement operations. These systems assist with search operations, critical incidents, crime scene documentation, disaster response, and public safety monitoring.

Capability: Unmanned aircraft systems provide officers with aerial observation, real-time video, and thermal imaging. They assist with searches, critical incident management, crime scene documentation, and situational awareness while reducing risk to officers and the public.

Purpose and Authorized Use: Unmanned Aircraft Systems may be deployed during search operations, tactical incidents, missing person searches, disaster response, crime scene documentation, and large public events where aerial observation enhances officer and public safety.

Legal and Procedural Rules Governing Use: The Glendale Police Department shall only utilize this equipment for official law enforcement purposes, in accordance with state and federal law, and applicable Department policy.

Training: Operators must complete Federal Aviation Administration (FAA) Part 107 certification and Department training prior to deployment. Operators receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Unmanned Aircraft Systems:

SKY-HERO, LOKI MKII
Description: The Sky-Hero Loki MKII is a small tactical drone designed for indoor and close- quarters reconnaissance. It provides officers with live video and audio from confined or hazardous environments to help gather information before entry.

Quantity: 2
Expected Life Span: 5+ years
Fiscal Impact: Approximately $10,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DJI, MAVIC 2 ENTERPRISE
Description: The DJI Mavic 2 Enterprise is a compact drone used by first responders for aerial observation, documentation, and search operations. It can capture video and images in low-light conditions and can assist officers in locating individuals or documenting incidents from an aerial perspective.

Quantity: 3
Expected Life Span: 7+ years
Fiscal Impact: Approximately $3,250 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DJI, MAVIC 3 ENTERPRISE THERMAL
Description: The DJI Mavic 3 Enterprise Thermal is a drone equipped with visual and thermal imaging cameras. It assists officers during search operations, night operations, disaster response, and critical incidents by providing aerial and thermal 16 of 489

Unmanned Aircraft Systems
2025 Specialized Equipment Use Report 5

imagery.

Quantity: 8
Expected Life Span: 7+ years
Fiscal Impact: Approximately $6,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DJI, AVATA
Description: The DJI Avata is a compact first-person-view drone designed for maneuvering in tight or confined spaces. It allows officers to quickly assess indoor environments or areas that may be unsafe for personnel.

Quantity: 2
Expected Life Span: 7+ years
Fiscal Impact: Approximately $1,100 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DJI, AVATA 2
Description: The DJI Avata 2 is a compact drone designed for close-range aerial reconnaissance.

It provides officers with high-resolution video and enhanced maneuverability when operating in confined or indoor environments.

Quantity: 2
Expected Life Span: 7+ years
Fiscal Impact: Approximately $1,200 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

FOTOKITE SIGMA
Description: The Fotokite Sigma is a tethered drone system that provides continuous aerial video from an elevated position. It is commonly used during large incidents, emergency scenes, and public events to provide situational awareness for incident commanders.

Quantity: 1
Expected Life Span: 7+ years
Fiscal Impact: Approximately $34,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

SKYDIO X10
The Glendale Police Department temporarily possessed one (1) Skydio X10 Unmanned Aircraft System (UAS) for a four-week trial period from February 12, 2026 through March 11, 2026. While this UAS is not a permanently acquired asset and is not part of the Department’s standard inventory, it was in the Department’s possession during the trial period. In the interest of transparency, the Department is including this equipment in the inventory section of this report to reflect its temporary possession and evaluation.
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Unmanned Ground Vehicles
6 Glendale Police Department

Unmanned Ground Vehicles: Unmanned ground vehicles are remotely operated robotic devices used to safely assess potentially hazardous environments.

Capability: Unmanned ground vehicles provide remote video and audio from hazardous environments. These devices allow officers to assess dangerous situations, search confined spaces, and gather information without placing personnel at risk.

Purpose and Authorized Use: Unmanned ground vehicles may be used during tactical operations or hazardous incidents to remotely assess environments that may pose a risk to officers. Authorized uses include searching structures, inspecting suspicious locations, and assisting during barricaded suspect or high-risk incidents.

Training: Operators receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Unmanned Ground Vehicles:

ICOR MINI-CALIBER SWAT ROBOT
Description: The ICOR Mini-CALIBER is a remotely operated tactical robot used by SWAT during hazardous situations. It allows officers to remotely inspect rooms, stairways, or confined spaces and can be used to gather video and audio before officers enter an area.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: Approximately $81,000 to purchase. Maintenance is performed as needed and the associated costs vary.

ROBOTEX AVATAR 3
Description: The Robotex Avatar III is a remotely operated robot used to safely inspect potentially dangerous environments. It provides video and audio from areas that may pose a risk to officers, allowing personnel to assess situations before making entry.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: $0 to purchase as it is loaned to Glendale PD. Maintenance is performed as needed and the associated costs vary.

RECON ROBOTICS C.2 THROW-BOT
Description: The Throwbot 2 is a small, throwable reconnaissance robot used to quickly gather video and audio information inside structures or confined areas. Officers can deploy it into hazardous environments to assess conditions before 18 of 489

Unmanned Ground Vehicles
2025 Specialized Equipment Use Report 7

entering.

Quantity: 2
Expected Life Span: 10+ years
Fiscal Impact: Approximately $16,600 per unit to purchase. Maintenance is performed as needed and the associated costs vary.
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Armored Personnel Carriers
8 Glendale Police Department

Armored Personnel Carriers: Armored personnel carriers are specially designed vehicles that provide ballistic protection and safe transport for officers and civilians during high-risk incidents.

Capability: Armored personnel carriers provide ballistic protection and transportation for officers and civilians during high-risk incidents. These vehicles allow officers to safely approach dangerous situations, rescue injured persons, and evacuate civilians.

Purpose and Authorized Use: Armored personnel carriers may be used during high-risk incidents to provide ballistic protection for officers and civilians. Authorized uses include responding to active shooter incidents, barricaded suspects, hostage situations, high-risk warrant service, and rescuing injured individuals from dangerous environments.

Training: Glendale Police Department SWAT Team officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Armored Personnel Carriers:

LENCO BEARCAT
Description: The Lenco BearCat is an armored rescue vehicle that provides ballistic protection for officers and civilians during high-risk incidents such as barricaded suspects, hostage situations, and high-risk warrants.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: Approximately $400,000 to purchase. Maintenance is performed as needed and the associated costs vary.

LENCO MEDCAT
Description: The Lenco MedCat is an armored rescue vehicle designed to support both SWAT and tactical medical personnel. It provides ballistic protection while allowing medical personnel to treat injured individuals during high-risk incidents.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: Approximately $400,000 to purchase. Maintenance is performed as needed and the associated costs vary.
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Mobile Command and Control Vehicles
Mobile Command Vehicles: Mobile command vehicles are specially equipped vehicles used to coordinate law enforcement operations during large incidents or emergencies.

Capability: Mobile command vehicles provide a field-based command center equipped with communication and coordination tools. They allow incident commanders to manage large-scale incidents, emergency operations, and community events from the scene.

Purpose and Authorized Use: Mobile command vehicles may be used to coordinate law enforcement operations during large-scale incidents, emergency situations, and public events. Authorized uses include serving as a mobile command post, communications center, or coordination hub during incidents requiring multi-agency or extended operations. These vehicles also support the Crisis Negotiation Team (CNT) by serving as a Negotiation Operations Center (NOC), allowing negotiators to communicate with individuals in crisis and work toward a peaceful resolution. The use of this equipment helps facilitate de-escalation and the safe resolution of incidents, ideally without the need to use force.

Training: Personnel assigned to operate mobile command vehicles receive Department training on vehicle operation and the use of onboard communication and command equipment. Training may include operation of specialized features such as telescoping lighting, camera towers, and onboard generators, as well as any required licensing, including a Class B (or higher) Commercial Driver’s License with an air brake endorsement where applicable. Operators receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Mobile Command Vehicles:

2019 FORD TRANSIT 350 HR VAN
Description: The Ford Transit van is used as a mobile workspace for the Department’s Crisis Negotiation Team during critical incidents. It allows negotiators to communicate and coordinate efforts while remaining close to the scene.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: Approximately $82,000 to purchase. Maintenance is performed as needed and the associated costs vary.

2002 FREIGHTLINER MOTORHOME
Description: The Freightliner motorhome serves as a mobile command post that can be used during large incidents, investigations, emergency events, or community events where a field command center is needed.

Quantity: 1
Expected Life Span: 20 years
Fiscal Impact: Approximately $303,000. Maintenance is performed as needed and the associated costs vary.
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Mobile Command and Control Vehicles
10 Glendale Police Department

2026 FREIGHTLINER MOBILE COMMAND CENTER
Description: The Freightliner Mobile Command Center is a large, self-contained command vehicle used to coordinate police operations during major incidents, disasters, or large public events.

Quantity: 1
Expected Life Span: 20 years
Fiscal Impact: Approximately $1,833,360.00. Maintenance is performed as needed and the associated costs vary.
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2025 Specialized Equipment Use Report 11

Breaching Apparatus, Breaching Shotgun System, and Kinetic Breaching Equipment
Breaching Apparatus, Breaching Shotgun System, and Kinetic Breaching Equipment: Breaching equipment includes tools designed to allow officers to safely and quickly gain entry into structures when necessary during emergencies or tactical operations.

Capability: Breaching equipment allows officers to quickly and safely gain entry into locked or fortified structures during emergencies or tactical operations. These tools may be used when conventional entry methods are ineffective.

Purpose and Authorized Use: Breaching equipment may be used by trained personnel to gain entry into structures during emergencies or tactical operations. Authorized uses include executing search warrants, rescuing individuals in danger, responding to barricaded suspects, and entering locations when immediate access is required to protect life.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST) certified training prior to using breaching equipment. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Breaching Apparatus, Breaching Shotgun System, and Kinetic Breaching Equipment:

KBT, KINETIC BREACHING TOOL
Description: The Kinetic Breaching Tool is a mechanical device used by officers to quickly force entry through locked or reinforced doors during emergencies or tactical operations.

Quantity: 6
Expected Life Span: 10+ years
Fiscal Impact: Approximately $10,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

EXPLOSIVE BREACHING EQUIPMENT
Description: Explosive breaching equipment is used by trained SWAT personnel to safely and quickly breach doors or barriers during high-risk operations such as hostage rescues or barricaded suspect situations.

Quantity: 6
Expected Life Span: 5 years
Fiscal Impact: Approximately $7,900 total for equipment to purchase. No maintenance cost.
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Breaching Apparatus, Breaching Shotgun System, and Kinetic Breaching Equipment 12 Glendale Police Department

ROYAL ARMS REMINGTON 870 EXPRESS BREACHING SHOTGUN SYSTEM Description: The Remington 870 breaching shotgun is used with specialized ammunition to break door locks or hinges during tactical operations when other entry methods are ineffective.

Quantity: 5 Remington 870 Shotguns. Approximately 105 Royal Arms TESCR#3 12 Gauge rounds.

Expected Life Span: 10+ years
Fiscal Impact: Approximately $1,500 per shotgun to purchase and $4.50 per round to purchase. Maintenance is performed as needed and the associated costs vary. 24 of 489

2025 Specialized Equipment Use Report 13

Specialized Firearms and Ammunition of Less Than .50 Caliber Specialized Rifles: Specialized rifles are firearms used by trained officers during critical incidents where greater accuracy and range are required.

Capability: Specialized rifles provide officers with increased accuracy and range when confronting serious threats.

These firearms are used during critical incidents such as active shooter events or other situations where precision and distance are necessary.

Purpose and Authorized Use: Specialized rifles may be used by trained officers when confronting a threat of serious bodily injury or death to officers or members of the public. Authorized uses include responding to active shooter incidents, high-risk tactical operations, and other critical incidents requiring greater accuracy and range to safely resolve the incident and reduce the risk of unintended injury.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST)-certified tactical training prior to carrying or deploying these weapons. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Specialized Firearms and Ammunition of Less Than .50 Caliber:

COLT AR-15 PATROL RIFLES
Description: The Colt AR-15 patrol rifle is a standard law enforcement rifle used by officers when confronting serious threats. It provides greater accuracy and range than a handgun and may be used during active shooter incidents or other critical situations.

Quantity: 154
Expected Life Span: 20+ years
Fiscal Impact: Approximately $1,250 per rifle to purchase (not including accessories).

Maintenance is performed as needed and the associated costs vary.

HECKLER & KOCH MP5 RIFLES (9MM)
Description: The Heckler & Koch MP5 is a compact rifle used primarily by SWAT officers during tactical operations where precision and control are required in close-quarters environments.

Quantity: 18
Expected Life Span: 20+ years
Fiscal Impact: Approximately $2,500 per rifle to purchase. Maintenance is performed as needed and the associated costs vary.
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Specialized Firearms and Ammunition of Less Than .50 Caliber 14 Glendale Police Department

SIG MCX RATTLER SBR CHAMBERED IN 300 BLACKOUT RIFLES
Description: The SIG MCX Rattler is a short-barreled rifle used by SWAT officers during tactical operations where maneuverability in confined environments is necessary.

Quantity: 28
Expected Life Span: 20+ years.

Fiscal Impact: Approximately $3,000 per rifle to purchase. Maintenance is performed as needed and the associated costs vary.

HORNADY, 300 BLACKOUT 111 GR MONOFLEX TAP SBR
Description: This ammunition is used with the SIG MCX Rattler rifles and is designed to provide reliable performance and accuracy during tactical operations.

Quantity: 26,200
Expected Life Span: 20+ years.

Fiscal Impact: Approximately $245 per 200 rounds to purchase. No maintenance cost.

REMINGTON 700 SNIPER RIFLE WITH G7 CHASSIS SYSTEM COMPONENTS Description: The Remington 700 is a precision rifle used by trained SWAT snipers during critical incidents where accurate long-distance engagement may be required to stop a deadly threat.

Quantity: 8
Expected Life Span: 20+ years
Fiscal Impact: Approximately $3,400 per rifle to purchase. Maintenance is performed as needed, and the associated costs vary.

HORNADY, 308 WIN TAP 168 GR ELD MATCH TAP PRECISION
Description: This ammunition is used with Remington 700 precision rifles and is designed to provide consistent accuracy during precision shooting operations.

Quantity: 8,000
Expected Life Span: 20+ years.

Fiscal Impact: Approximately $250 per 200 rounds to purchase. No maintenance cost.

HORNADY, 308 WIN TAP 110 GR TAP URBAN
Description: This ammunition is used with Remington 700 precision rifles and is designed to reduce penetration while maintaining effective performance in environments with potential collateral risk.
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2025 Specialized Equipment Use Report 15

Specialized Firearms and Ammunition of Less Than .50 Caliber

Quantity: 1,000
Expected Life Span: 20+ years.

Fiscal Impact: Approximately $250 per 200 rounds to purchase. No maintenance cost.

HORNADY, 308 WIN TAP 165 GR CX
Description: This ammunition is used with Remington 700 precision rifles and is designed to maintain performance when encountering barriers.

Quantity: 1,000
Expected Life Span: 20+ years.

Fiscal Impact: Approximately $380 per 200 rounds to purchase. No maintenance cost.

GLENDALE POLICE DEPARTMENT OFFICER PRIVATELY OWNED PATROL RIFLES Description: Approved officers may use personally owned patrol rifles that meet Department standards. These rifles are inspected and authorized by the Department before being used on duty.

Quantity: 15
Expected Life Span: N/A
Fiscal Impact: $0 per rifle to purchase. No maintenance cost. 27 of 489

16 Glendale Police Department

Firearm or Firearm Accessory That Is Designed to Launch Explosive Projectiles Launching Cups: Launching cups are attachments used with shotguns that allow officers to deploy certain chemical agents or smoke from a distance.

Capability: Launching cups allow officers to deploy chemical agents or smoke from a distance using a shotgun platform.

This capability increases officer safety by allowing deployment without approaching a potentially dangerous location.

Purpose and Authorized Use: Launching cups may be used by trained personnel to deploy chemical agents or smoke into structures or vehicles from a distance. Authorized uses include addressing barricaded suspects, dispersing violent individuals, or assisting officers during tactical operations.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST) certified training prior to using launching cup equipment. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Firearm or Firearm Accessory That Is Designed to Launch Explosive Projectiles – Launching Cups:

CTS COMBINED SYSTEMS, LC5 LAUNCHING CUPS
Description: Launching cups attach to a shotgun and allow officers to deploy chemical agent canisters from a distance. This allows officers to introduce chemical agents into a location while maintaining a safer distance.

Quantity: 3
Expected Life Span: 5 years
Fiscal Impact: Approximately $275 per unit to purchase. No maintenance cost. 28 of 489

Noise-Flash Diversionary Devices
2025 Specialized Equipment Use Report 17

Noise-Flash Diversionary Devices: Noise-flash diversionary devices are tools that produce a loud sound and bright flash to temporarily distract or disorient individuals.

Capability: Noise-flash diversionary devices produce a loud sound and bright flash designed to temporarily distract or disorient individuals. This allows officers a momentary tactical advantage to safely detain suspects during high- risk operations.

Purpose and Authorized Use: Noise-flash diversionary devices may be used during tactical operations to temporarily distract or disorient individuals. Authorized uses include hostage rescue operations, high-risk warrant service, barricaded suspect incidents, and other situations where a brief distraction may help officers safely detain suspects.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST) certified training prior to deploying diversionary devices. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Noise-Flash Diversionary Devices:

DEFENSE TECHNOLOGY, DISTRACTION DEVICE 12-GRAM RELOAD, #8901 Description: This device produces a loud noise and bright flash designed to temporarily distract or disorient individuals. It is used during tactical operations to give officers time to safely detain suspects.

Quantity: 0
Expected Life Span: 5-10 years
Fiscal Impact: Approximately $28-50 per unit to purchase. No maintenance cost.

CTS, MULTI-BANG DIVERSIONARY DEVICE, #7290-9
Description: This device produces a series of loud noises and flashes designed to distract individuals during high-risk tactical operations such as hostage rescues or room entries.

Quantity: 22
Expected Life Span: 5-10 years
Fiscal Impact: Approximately $160 per unit to purchase. No maintenance cost. 29 of 489

18 Glendale Police Department

Sting Ball Munitions
Sting Ball Munitions: Sting ball munitions are devices that produce light, sound, and rubber pellets upon deployment.

Capability: Sting ball munitions produce light, sound, and rubber pellets upon deployment. They are designed to temporarily distract and disperse individuals during violent encounters or crowd control situations.

Purpose and Authorized Use: Sting ball munitions may be used during violent encounters or crowd control situations to disperse individuals or gain compliance. These devices may be deployed by trained personnel when less-lethal options are appropriate to restore order or prevent further violence.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST) certified training prior to deploying sting ball munitions. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Sting Ball Munitions:

DEFENSE TECHNOLOGY, STINGER 60-CALIBER RUBBER BALLS, #1087 Description: The Stinger grenade releases rubber pellets, light, and sound when deployed. It is used primarily during crowd control situations to disperse violent groups while using less lethal force.

Quantity: 66
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost. 30 of 489

Chemical Agents and Chemical Agent Delivery Devices
2025 Specialized Equipment Use Report 19

Chemical Agents and Chemical Agent Delivery Devices: Chemical agents are irritants used to temporarily affect the eyes, skin, or respiratory system in order to gain compliance or disperse individuals.

Capability: Chemical agents temporarily irritate the eyes, skin, and respiratory system to encourage compliance or disperse individuals. These agents can be deployed in various forms to address violent individuals, barricaded suspects, or crowd control situations.

Purpose and Authorized Use: Chemical agents may be used by trained personnel to encourage compliance, disperse violent individuals, or resolve barricaded suspect situations. Authorized uses include crowd control, tactical operations, and other incidents where less-lethal force is appropriate.

Training: Officers must complete Department training and applicable Commission on Peace Officer Standards and Training (POST) certified training prior to deploying these devices. Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Chemical Agents and Chemical Agent Delivery Devices:

DEFENSE TECHNOLOGY, TRIPLE-CHASER SEPARATING CANISTER, SAF-SMOKE, #1027 Description: This device releases smoke or chemical agents from three separate canisters to disperse crowds or cover larger outdoor areas.

Quantity: 20
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, MAXIMUM HC SMOKE LARGE STYLE CANISTER, #1073 Description: This smoke canister produces a large amount of smoke to obscure vision and assist officers in crowd control or tactical movement.

Quantity: 30
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER SAF-SMOKE GRENADE, #1033 Description: This device releases smoke or chemical agents with reduced fire risk and is commonly used to assist officers during tactical operations involving barricaded suspects.
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Chemical Agents and Chemical Agent Delivery Devices
20 Glendale Police Department

Quantity: 16 (All remaining quantities will be used in training.) Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, MILITARY-STYLE MAXIMUM SMOKE, #1083 Description: This smoke grenade produces dense smoke to help disperse crowds or provide concealment during tactical operations.

Quantity: 20
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, HAN-BALL GRENADE, CS, #1092
Description: The Han-Ball grenade releases chemical agents designed to cause temporary irritation and encourage compliance during tactical incidents.

Quantity: 28
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, TRIPLE-CHASER CS, #1026
Description: This grenade separates into multiple canisters that disperse chemical agents over a larger area to assist with crowd control.

Quantity: 0
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, SPEDE-HEAT CS, #1072
Description: This grenade disperses chemical agents to temporarily affect individuals and encourage them to leave an area during crowd control situations.

Quantity: 8
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, INSTANTANEOUS BLAST CS, #1042
Description: This device quickly disperses chemical agents in a concentrated area to temporarily incapacitate individuals during tactical operations.

Quantity: 36
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost. 32 of 489

Chemical Agents and Chemical Agent Delivery Devices
2025 Specialized Equipment Use Report 21

DEFENSE TECHNOLOGY, TRI-CHAMBER FLAMELESS GRENADE CS, #1032 Description: This device disperses chemical agents while minimizing fire risk and is commonly used during barricaded suspect situations.

Quantity: 23
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

CTS COMBINED SYSTEMS, BAFFLED RIOT CS, #5230B
Description: This grenade disperses chemical agents within structures or enclosed areas to assist officers during tactical operations.

Quantity: 41
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FERRET 40 MM LIQUID BARRICADE PENETRATOR ROUND, CS, #2262
Description: This projectile delivers liquid chemical agents into a structure or vehicle to encourage barricaded suspects to exit safely.

Quantity: 101
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FERRET, CS LIQUID, #1262
Description from Manufacturer: This projectile delivers chemical agents into confined spaces to assist officers during barricaded suspect incidents.

Quantity: 37
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, RIOT CONTROL CONTINUOUS DISCHARGE GRENADE, CS, #1082 Description: This grenade disperses chemical agents outdoors to assist officers in controlling violent crowds.

Quantity: 20
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost. 33 of 489

Chemical Agents and Chemical Agent Delivery Devices
22 Glendale Police Department

DEFENSE TECHNOLOGY, OC/CS AEROSOL GRENADE, #1050
Description: This device releases a mist containing chemical irritants that temporarily affect individuals during tactical operations.

Quantity: 18
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, RIOT CONTROL OC, #1080
Description: This grenade disperses pepper-based irritants to assist officers in dispersing violent crowds.

Quantity: 26
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, AEROSOL OC VAPOR, #1056
Description: This device releases a concentrated pepper irritant mist to temporarily incapacitate individuals in confined areas.

Quantity: 19
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER OC GRENADE #1030 Description: This device disperses pepper irritants and is commonly used during barricaded suspect situations or tactical operations.

Quantity: 4
Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FLAMELESS EXPULSION OC, #2040
Description: This device disperses pepper irritants and is commonly used during barricaded suspect situations or tactical operations.

Quantity: 33Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FIRST DEFENSE 1.3% MK-9 STREAM OC AEROSOL, #56895 Description: This handheld device releases a stream of pepper spray used during crowd control or tactical incidents.

Quantity: 7
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Chemical Agents and Chemical Agent Delivery Devices
2025 Specialized Equipment Use Report 23

Expected Life Span: 5 years
Fiscal Impact: Approximately $50 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FIRST DEFENSE® .7% MK-9S HV VAPOR OC AEROSOL WITH WAND ATTACHMENT, #43896
Description: This device releases pepper spray in a mist form designed to affect multiple individuals during crowd control.

Quantity: 6
Expected Life Span: 5 years
Fiscal Impact: Approximately $145 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FIRST DEFENSE® .7% MK-46V STREAM OC AEROSOL WITH WAND #56746V
Description: This device releases pepper spray in a mist form designed to affect multiple individuals during crowd control.

Quantity: 2
Expected Life Span: 2 years
Fiscal Impact: Approximately $630 per unit to purchase. No maintenance cost. 35 of 489

24 Glendale Police Department

Long-Range Acoustic Devices
Long Range Acoustic Device: Long-range acoustic devices are speaker systems used to communicate instructions or warnings over long distances.

Capability: Long-range acoustic devices allow officers to clearly communicate instructions or warnings to individuals or crowds from a distance. They can project voice messages over large areas during emergencies or large events.

Purpose and Authorized Use: Long-range acoustic devices may be used to communicate instructions, warnings, or information to individuals or crowds during law enforcement operations. Authorized uses include large public events, emergency situations, and incidents where normal voice communication is ineffective.

Training: Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Long-Range Acoustic Devices:

MAGNETIC AUDIO DEVICE LT-PMS2-TURBO
Description: This long-range speaker system allows officers to communicate clearly with individuals or crowds during emergencies or large public events.

Quantity: 1
Expected Life Span: 10+ years
Fiscal Impact: Approximately $4,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.
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2025 Specialized Equipment Use Report 25

Kinetic Energy 40mm Weapons and Munitions
Kinetic Energy 40mm Launchers and Munitions: 40mm less-lethal systems are launchers designed to deploy impact or chemical munitions from a distance.

Capability: 40mm less-lethal launchers allow officers to deploy impact munitions or chemical agents from a distance. These tools are used to control violent individuals while reducing the likelihood of serious injury.

Purpose and Authorized Use: 40mm less-lethal launchers may be used by trained personnel to deploy impact munitions or chemical agents to stop violent or dangerous individuals. Authorized uses include crowd control, tactical operations, and incidents where officers need to address a threat from a safer distance.

Training: Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Kinetic Energy 40mm Launchers and Munitions:

DEFENSE TECHNOLOGY, 40MM TACTICAL 4-SHOT LAUNCHER, #1440 Description: This launcher allows officers to deploy less-lethal 40mm munitions such as sponge rounds or chemical agents from a safe distance.

Quantity: 6
Expected Life Span: 15 years
Fiscal Impact: Approximately $1,975 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DEFENSE TECHNOLOGY, 40MM LMT TACTICAL SINGLE LAUNCHER, EXPANDABLE STOCK, #1425
Description: This launcher fires less-lethal 40mm munitions designed to safely control violent or dangerous individuals from a distance.

Quantity: 31
Expected Life Span: 25 years
Fiscal Impact: Approximately $1,000 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

DEFENSE TECHNOLOGY, 40MM EXACT IMPACT SPONGE: #6325
Description: This round delivers a foam projectile designed to temporarily incapacitate a violent or non-compliant individual while reducing the likelihood of serious injury.

Quantity: 594
Expected Life Span: 5-10 years
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26 Glendale Police Department

Kinetic Energy 40mm Weapons and Munitions

Fiscal Impact: Approximately $2,500 per 100 units to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, 40MM DIRECT IMPACT OC, #6320
Description: This round delivers both a blunt impact and pepper irritant to encourage compliance from violent or aggressive individuals.

Quantity: 259
Expected Life Span: 5 years
Fiscal Impact: Approximately $30 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, 40MM DIRECT IMPACT MARKING ROUND, #6326 Description: This round marks individuals with dye upon impact so officers can identify specific suspects within a crowd.

Quantity: 28
Expected Life Span: 5 years
Fiscal Impact: Approximately $30 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, 40MM WARNING SIGNALING MUNITION, LONG RANGE, INERT MARKING, 150 METERS #6029IM-LR
Description: This round produces a loud sound and bright flash to warn individuals or disperse crowds during large incidents.

Quantity: 22
Expected Life Span: 5-10 years
Fiscal Impact: Approximately $30 per unit to purchase. No maintenance cost.

DEFENSE TECHNOLOGY, FERRET 40MM POWDER BARRICADE ROUND CS, #2292 Description: This round delivers chemical agents through windows or barriers to assist officers during barricaded suspect situations.

Quantity: 228
Expected Life Span: 5-10 years
Fiscal Impact: Approximately $1,300 per 50 rounds to purchase. No maintenance cost.

CTS COMBINED SYSTEMS, 40MM SPONGE, SMOKELESS, SPIN STABILIZED, 4" LONG, #4557
Description: This round delivers a foam projectile intended to stop violent or non-compliant individuals with reduced risk of serious injury.

Quantity: 0
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2025 Specialized Equipment Use Report 27

Kinetic Energy 40mm Weapons and Munitions

Expected Life Span: 5-10 years
Fiscal Impact: Approximately $2,200 per 100 rounds to purchase. No maintenance cost. 39 of 489

Pepper Ball Launchers and Pepper Ball Munitions
28 Glendale Police Department

Pepper Ball Launchers and Pepper Ball Munitions: Pepper ball systems are less-lethal tools that launch projectiles containing irritant powder.

Capability: Pepper ball launchers deploy projectiles that release pepper irritant powder upon impact. They allow officers to address violent individuals or crowds from a distance using less-lethal force.

Purpose and Authorized Use: Pepper ball launchers may be used to deploy pepper-based projectiles to gain compliance from violent or aggressive individuals. Authorized uses include crowd control situations, tactical incidents, and other events where less-lethal force is appropriate.

Training: Officers receive ongoing training on the safe operation and the laws and policies governing the deployment of this equipment.

The Department currently possesses the following types of Pepper Ball Launchers and Pepper Ball Munitions:

PEPPERBALL, FTC
Description: The PepperBall launcher fires projectiles that release pepper irritant powder upon impact. It allows officers to control violent individuals or crowds from a distance using less-lethal force.

Quantity: 9
Expected Life Span: 20 years
Fiscal Impact: Approximately $500 per unit to purchase. Maintenance is performed as needed and the associated costs vary.

PEPPERBALL, LIVE PEPPERBALL PROJECTILE
Description: These projectiles release pepper irritant powder upon impact to temporarily incapacitate individuals.

Quantity: 3,600
Expected Life Span: 3 years
Fiscal Impact: Approximately $2 per projectile to purchase. No maintenance cost. 40 of 489

2025 Specialized Equipment Use Report 29

Specialized Equipment Not Owned or Used
The Glendale Police Department does not own or use, or seeks to acquire, any of the following equipment:

High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached Tracked armored vehicles that provide ballistic protection to their occupants Weaponized aircraft, vessels, or vehicles of any kind
Firearms and ammunition of .50 Caliber or greater, excluding standard-issue shotguns and standard- issue shotgun ammunition.
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2025 Specialized Equipment Use Summary
30 Glendale Police Department

This section outlines the specialized equipment usage for 2025. Certain items of specialized equipment, particularly consumables (ammunition, diversionary devices, pepper balls, chemical agents, etc.) are used throughout the year on a regular basis for training in order to maintain proficiency. Training usage is not captured in this section. This section only provides data for the operational use of specialized equipment.

Unmanned Aircraft Systems
Unmanned Aircraft Systems were utilized at 74 incidents in 2025.

Armored Personnel Carriers
Armored Personnel Carriers were utilized at 11 incidents in 2025, 7 of which were interactive community engagement events.

Mobile Command and Control Vehicles
Mobile Command and Control Vehicles were utilized at 8 incidents in 2025.

Breaching Apparatus, Breaching Shotgun System, And Kinetic Breaching Equipment Breaching Apparatus, Breaching Shotgun System, And Kinetic Breaching Equipment were utilized at 3 incidents in 2025.

Specialized Firearms and Ammunition of Less Than .50 Caliber Specialized Firearms and Ammunition of Less Than .50 Caliber were utilized at 1 incident in 2025.

Firearm or Firearm Accessory That Is Designed to Launch Explosive Projectiles Firearm or Firearm Accessory That Is Designed to Launch Explosive Projectiles were utilized at 1 incident in 2025.

Noise-Flash Diversionary Devices
Noise-Flash Diversionary Devices were utilized at 1 incident in 2025.

Chemical Agents and Chemical Agent Delivery Devices
Chemical Agents and Chemical Agent Delivery Devices were utilized at 1 incident in 2025.

Kinetic Energy 40mm Weapons and Munitions
Kinetic Energy 40mm Weapons and Munitions were utilized at 1 incident in 2025. 42 of 489

2025 Specialized Equipment Use Summary
2025 Specialized Equipment Use Report 31

All specialized equipment uses were located in the City of Glendale, unless otherwise specified.

All incidents are considered separate, even when there are multiple occurrences on the same date.

Incident Date Equipment Used Purpose of Use
January 4, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

January 6, 2025 KBT, KINETIC BREACHING TOOL Used by Glendale PD officers to assist Los Angeles PD officers to force entry into a
business for barricaded suspects.

January 7, 2025 KBT, KINETIC BREACHING TOOL Used by Glendale PD officers to force entry into a residence for a welfare check.

January 28, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

February 18, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

February 22, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

February 26, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

March 14, 2025 LENCO BEARCAT LENCO
MEDCAT
2019 FORD TRANSIT 350 HR VAN
(1) DT, 40MM 4-SHOT LAUNCHER, #1440
(2) DT, FERRET 40 MM, CS, #2262
(2) DT, DISTRACTION 12-GR RELOAD #8901
(2) CTS LC5 LAUNCHING CUP
(6) DT, TRI-CHAMBER CS, #1032
Used by Glendale PD officers during a
high-risk search warrant.

March 28, 2025 2002 FREIGHTLINER MOTORHOME Used by Glendale PD officers as a mobile command post for a DUI checkpoint.

March 31, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

April 3, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL DJI,
AVATA

FOTOKITE SIGMA
Used by Glendale PD officers during a large-
scale incident training in the City of Pasadena.

April 5, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL

FOTOKITE SIGMA
Used by Glendale PD officers to provide
overwatch for a protest.
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2025 Specialized Equipment Use Summary
32 Glendale Police Department

Incident Date Equipment Used Purpose of Use
April 10, 2025 SKY-HERO, LOKI MKII
DJI, MAVIC 3 ENTERPRISE THERMAL DJI,
AVATA*

LENCO BEARCAT LENCO
MEDCAT
2019 FORD TRANSIT 350 HR VAN
Used by Glendale PD officers during a high-
risk search warrant in the City of Los Angeles.

*Drone failed to launch.

May 7, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

May 11, 2025 LENCO MEDCAT Used by Glendale PD officers for interactive community engagement during Fire Service
Day.

May 20, 2025 SKY-HERO, LOKI MKII
DJI, MAVIC 3 ENTERPRISE THERMAL LENCO

BEARCAT

LENCO MEDCAT
Used by Glendale PD officers to assist with a
warrant in the City of Los Angeles.

May 27, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

May 31, 2025 DJI, MAVIC 3ENTERPRISE THERMAL

FOTOKITE SIGMA
Used by Glendale PD officers to provide
overwatch during Let's Go Glendale.

June 10, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

June 12, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

June 16, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

July 11, 2025 2002 FREIGHTLINER MOTORHOME Used by Glendale PD officers as a mobile command post for a DUI checkpoint.

July 13, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

July 19, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL LENCO

BEARCAT

LENCO MEDCAT
2002 FREIGHTLINER MOTORHOME
Used by Glendale PD officers interactive
community engagement, mobile command post,
and overwatch during Cruise Night.
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2025 Specialized Equipment Use Summary
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Incident Date Equipment Used Purpose of Use
July 31, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

August 15, 2025 2002 FREIGHTLINER MOTORHOME Used by Glendale PD officers as a mobile command post for a DUI checkpoint.

August 19, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

August 21, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

August 31, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 5, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 7, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 9, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 13, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 17, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 19, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 22, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 23, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 25, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

September 29, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 1, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 4, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.
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Incident Date Equipment Used Purpose of Use
October 4, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL

FOTOKITE SIGMA

LENCO MEDCAT
Used by Glendale PD officers for interactive
community engagement and overwatch
during Oktoberbest.

October 5, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 6, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 6, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD detectives to assist with a warrant in the City of Compton.

October 8, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD detectives to assist with a warrant in the City of Compton.

October 9, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 11, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 12, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 18, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL LENCO

BEARCAT

LENCO MEDCAT
Used by Glendale PD officers for interactive
community engagement during the Glendale
PD Open House and Touch-A-Truck.

October 24, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

October 25, 2025 DJI, AVATA Used by Glendale PD officers to assist with a search.

October 25, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL

DJI, AVATA
Used by Glendale PD officers to assist with a
search.

October 31, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 1, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 5, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 9, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD during Love Ride to provide overwatch.
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Incident Date Equipment Used Purpose of Use
November 12, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 15, 2025 DJI, AVATA Used by Glendale PD officers to assist with a search.

November 21, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 22, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL LENCO

BEARCAT

LENCO MEDCAT
(1) COLT AR-15 PATROL RIFLES
(1) SIG MCX RATTLER SBR BLACKOUT RIFLE
(2) HORNADY, 300 BLACKOUT 111 GR
Used by Glendale PD officers to assist
Burbank PD with a search of an armed
suspect in the City of Burbank.

November 28, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

November 30, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 6, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL LENCO
MEDCAT
2002 FREIGHTLINER MOTORHOME
Used by Glendale PD officers for
interactive community engagement,
mobile command post, and overwatch
during the Montrose Christmas Parade.

December 7, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 9, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search in the City of Paramount.

December 9, 2025 LENCO MEDCAT Used by Glendale PD officers for interactive community engagement during the Jingle Bell
Ride.

December 10, 2025 LENCO MEDCAT Used by Glendale PD officers for interactive community engagement during the Jingle Bell
Ride.

December 12, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 12, 2025 2002 FREIGHTLINER MOTORHOME Used by Glendale PD officers as a mobile command post for a DUI checkpoint.

December 12, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL

DJI, AVATA
Used by Glendale PD officers to assist with a
search.
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Incident Date Equipment Used Purpose of Use
December 17, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist the U.S. Marshals Service with a warrant in the City
of Pomona.

December 18, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 20, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 21, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 23, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist the U.S. Marshals Service with a warrant in the City
of Los Angeles.

December 26, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL DJI,
AVATA

KBT, KINETIC BREACHING TOOL
Used by Glendale PD officers to assist with a
warrant.

December 27, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 27, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a barricaded suspect.

December 27, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 28, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a search.

December 28, 2025 DJI, MAVIC 3 ENTERPRISE THERMAL Used by Glendale PD officers to assist with a overwatch of a street racing enforcement and
search.
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Summary of Complaints Regarding Specialized Equipment Use in 2025 2025 Specialized Equipment Use Report 37

The application and use of specialized equipment may cause questions and/or concerns for members of the community. It is vitally important that community members’ questions and concerns regarding the application and use of specialized equipment are addressed.

The Glendale Police Department is committed to full and fair investigation of citizen complaints. As such, the Department has sound internal procedures for thorough and impartial investigations of citizen complaints.

Resolving complaints in a fair, impartial, and expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department.

Any member of the public can register a question, concern, or complaint regarding specialized equipment use either in person or telephonically by contacting the Glendale Police Department’s Professional Standards Bureau at (818) 548-3117. Complaints may also be submitted electronically via the Department’s website at https://glendaleca.ciweb.com/pp/#/

A response to the questions, concerns, or complaints will be completed by the Department in a timely manner.

In 2025, the Glendale Police Department did not receive any complaints regarding the use of specialized equipment. 49 of 489

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Summary of Violations of Specialized Equipment Use in 2025 An internal review revealed no policy violations of Glendale Police Department personnel unlawfully deploying or discharging specialized equipment in 2025.
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Fiscal Impact
2025 Specialized Equipment Use Report 39

For Fiscal Year 2025-2026 the Glendale Police Department’s Adopted Budget was approximately $162,324,756 with the majority of the budget allocated to personnel expenses. The budget amount spent on specialized equipment represents only a small fraction of the Department’s expenses. However, the funds spent on specialized equipment are crucial for providing the necessary resources and materials to ensure the safety of the community and officers. The existing inventory of specialized equipment plays a significant role in enhancing the Department’s capabilities and is of great importance from a public safety perspective.

The use of specialized equipment and special tactics are skills that require ongoing training to maintain proficiency.

While the Department conducts regular training within its Training Bureau, and specialized units such as SWAT and CNT, participating in external training courses can provide significant tactical insight and an enhanced skillset.

These courses offer officers a curriculum and exercises designed to impart knowledge, skills, and enhanced capability. The specific courses attended by officers can vary each year based on operational needs. Funding for training is secured through the General Fund or grants unless otherwise indicated. 51 of 489

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Fiscal Impact

Equipment Type
Initial Cost /
Source Funding
(approximate)
Ongoing Cost
FY 2025-2026
(approximate)
Projected Cost
FY 2026-2027
(approximate)
Unmanned Aircraft Systems $121,500 /
General Fund
$2,700 /
Asset Forfeiture Fund
$0 Cost varies with
maintenance
Unmanned Ground Vehicles $114,200 /
General Fund
$0 Cost varies with
maintenance
Armored Personnel Carriers $800,000 /
General Fund
$0 Cost varies with
maintenance
Mobile Command and Control Vehicles $82,000 /
General Fund
$303,000 /
Fleet Management
Fund
$255,000 /
Grant Funding
$1,779,000 /
Asset Forfeiture Fund
$0 Cost varies with
maintenance
Breaching Apparatus, Breaching Shotgun System,
and Kinetic Breaching Equipment
$72,000 /
General Fund
$0 N/A*
Specialized Firearms and Ammunition of Less Than
.50 Caliber
$345,000 /
General Fund
$58,000 $50,000
Firearm or Firearm Accessory That Is Designed to
Launch Explosive Projectiles
$825 /
General Fund
$0 $0
Noise-Flash Diversionary Devices $5,000 /
General Fund
$4,600 $0
Sting Ball Munitions $4,000 /
General Fund
$0 $0
Chemical Agents and Chemical Agent Delivery
Devices
$31,000 /
General Fund
$1,000 $0
Long-Range Acoustic Devices $4,000 /
General Fund
$0 N/A*
Kinetic Energy 40mm Weapons and Munitions $69,300 /
General Fund
$3,000 $3,000
Pepper Ball Launchers and Pepper Ball Munitions $16,000 / General Fund
$0 N/A*
N/A* - The Department does not plan to acquire more equipment unless considered necessary due to extenuating circumstances. 52 of 489

Projected Acquisitions in 2026
2025 Specialized Equipment Use Report 41

Projected consumable specialized equipment acquisitions for Fiscal Year 2027 (July 2026 - June 2027) should be in line with current replenishment schedules and quantities for consumables. A variety of commercial factors (i.e. supply and demand, inflation, supply chain issues etc.) may influence the fiscal impact of future specialized equipment acquisitions and ongoing specialized equipment purchases throughout the year. The replenishment schedules for specialized equipment consumables can vary and are dictated by inventory levels that fluctuate as a result of training, operational usage, or manufacturer recommended replacement guidelines.

Projected non-consumable specialized equipment acquisitions for Fiscal Year 2027 are anticipated to be limited at this time. Any unanticipated replacements of existing non-consumable specialized equipment for Fiscal Year 2027 will be initiated on a case-by-case basis that is dependent on operational need, operational wear, or end of serviceable lifespan.
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42 Glendale Police Department

Conclusion
The annual Specialized Equipment Use Report demonstrates the Glendale Police Department’s commitment to transparency and providing information to our community and elected officials and ensures compliance with the law. The equipment, resources, and training outlined in this report enable Glendale Police Officers to better protect our community, enhance the safety of the public and officers, and bring critical incidents to a safe resolution. We understand that it is not a matter of if a critical incident will happen within our city, but a matter of when. The content listed within this report provides our officers with the training, confidence, and capability to confront such situations.

Public safety is and always has been a shared responsibility. The strength of our Department lies not solely within the actions of the individual officer but within the resilience and willingness of our community to collaborate with our officers to address crime in their neighborhoods. This partnership and continued support have helped our officers maintain Glendale as one of the safest cities of its size in the United States.

Our Department is fully committed to protecting and serving our community. The Glendale Police Department prides itself on protecting Glendale, building trust, and maximizing our potential. 54 of 489

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26-90094

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Award Construction Contract for the Renovation of Fire Station No. 27 Project.

COUNCIL ACTION
Item Type: Consent
Approved for June 2, 2026 calendar

EXECUTIVE SUMMARY
Following a formal competitive bidding process, ARC Construction, Inc. (ARC) was determined to be the lowest responsive bidder for the Renovation of Fire Station No. 27 Project. The scope of work includes improvements to the station’s live/work environment and enhancements to overall functionality for firefighting and paramedic staff. The project also includes significant upgrades to electrification and ventilation systems, including the installation of new HVAC heat pumps and electrical service improvements. The proposed construction contract amount is $979,503, with an additional 7.4% construction reserve of $72,659.

RECOMMENDATION
Approve the motion authorizing a construction contract with ARC Construction, Inc. for the Renovation of Fire Station No. 27 Project, in the amount of $979,503, plus a 7.4% construction reserve of $72,659.

ANALYSIS
Fire Station No. 27, located at 1127 Western Avenue, was built in 1967 and serves an area north of the 134 Freeway and West of the 5 Freeway, including Brand Park. Fire Station No. 27 houses an engine company, a BLS ambulance, and a water tender, with 12 firefighters rotating through the 3,900-square-foot facility on a weekly basis.

There is an immediate need to renovate Fire Station No. 27 due to inadequate sleeping arrangements and restroom facilities for firefighters and paramedic staff. The proposed partial tenant improvement will add two new dormitories, bringing the total number of dormitories to seven, and will provide a total of three unisex restrooms to better support 55 of 489

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current staffing needs. The project will also include the installation of a new alerting system intended to improve operations and reduce dispatch call-processing times.

Additional improvements include Title 24 energy-efficiency upgrades, required fire and life safety enhancements, accessibility upgrades to bring affected areas into compliance with current standards, and exterior building modifications necessary to support the new dormitory configuration and associated fire and life safety requirements.

During the renovation work, Public Works Department (PWD) staff will coordinate temporary housing accommodations to ensure fire personnel have a safe, functional, and appropriate live/work environment throughout the construction period. Disney has provided support by allowing the use of a parking lot near Flower Street and Western Avenue for the placement of a temporary modular facility. PWD has coordinated with a modular building provider to develop a project-specific specification for the temporary facility, which is proposed to include four bedrooms, a kitchenette, a restroom with shower facilities, and a common living area to support daily operations and staff needs. This temporary arrangement will allow fire personnel to remain near the station and maintain operational readiness while the renovation work is underway, while also helping to minimize disruption to emergency response services and overall station operations.

On January 27, 2026, The City Council adopted the specifications and directed the City Clerk to advertise for bids. On April 1, 2026, the PWD hosted a pre-bid job walk and twenty-two contractors attended.

On April 29, 2026, the city received twelve bids as follows:

1. ARC Construction, Inc. $ 979,503.00

2. RAMSA Construction, Inc. $1,280,000.00

3. SBS Corporation $1,299,798.00

4. First Trade, LLC dba YMC $1,352,250.00

5. Bedrock Group, Inc. $1,488,000.00

6. Loghmani & Associates, Inc. $1,496,500.00

7. MODAA, Inc. $1,498,280.00

8. Williamson Construction Co., Inc. $1,500,000.00

9. R-Dependable Construction, Inc. $1,550,000.00

10. Go JRM Construction, Inc. $1,556,113.29

11. The Nazerian Group $1,744,123.00

12. Omega Construction Co., Inc. $1,947,564.95
After a comprehensive review, staff determined that ARC submitted a responsive bid and qualifies as a responsible bidder. ARC has current State of California General-A, B, C-8 and Haz Mat Contractors Licenses that are active and in good standing.

Following bid opening, the City received a bid protest concerning the apparent low bidder.

The protest was reviewed and evaluated in accordance with the Specification, contract documents, and applicable law. Based on such review, the City determined that the apparent low bidder remains the lowest responsive and responsible bidder. Accordingly, 56 of 489

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staff recommends award of the contract to ARC Construction, Inc.

The proposed contract amount is $979,503, with a recommended 7.4% construction reserve of $72,659. The Renovation of Fire Station No. 27 Project is anticipated to be completed within a six-month timeframe.

STAKEHOLDERS/OUTREACH
The work will be coordinated with the contractor and Glendale Fire Department (GFD) staff to minimize any disruptions to operations and the public. The renovations will provide the fire station with much-needed upgrades to enhance the current living/work environment and provide the fire-life safety improvements required for essential services facilities. Fire stations are unique facilities in which fire personnel are directly responsible for the day-to-day upkeep of the building. Accordingly, careful consideration has been given to incorporating solutions that support daily operations and enhance the overall live- work environment of the station. The contractor will work with Glendale Fire Department staff to ensure the project outcome best meets their operational needs.

FISCAL IMPACT
The Renovations of Fire Station #27 Project will cost $979,503, plus a 7.4% construction reserve of $72,659, for a total not-to-exceed amount of $1,052,162, which was included as a part of the FY 2025-26 budget. The existing appropriation is outlined below:

Existing Appropriation
Amount Account String Funding Source
$ 1,052,162 GL: 51200-4010-GFD-0020-P0000
PL: PWD01050BN
Capital Improvement Fund
Department Cost Center Program
Glendale Fire
Department
Projects

ENVIRONMENTAL REVIEW (CEQA/NEPA)
This project is Categorically Exempt under California Environmental Quality Act (CEQA) Guidelines §15301, existing facilities. The existing facilities exemption applies to “the operation, repair, maintenance, permitting, leasing, licensing or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use.” (CEQA Guidelines §15301).

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES TO STAFF RECOMMENDATION

1. Do not approve the motion executing a contract for this project thereby deferring the improvements and maintaining the status quo conditions and use of these 57 of 489

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facilities.

2.Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Submitted by:

Daniel Hernandez, Director of Public Works
Prepared by:

Celina Minas, Project Manager
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
None
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9 MOTION
Moved by Council Member , seconded by
Council Member , that the Council of the City of
Glendale hereby:

1. Authorizes the City Manager, or a designee, to execute a construction contract – subject to approval to form by the City Attorney - with ARC Construction, Inc., for the Renovation of Fire Station No. 27 Project, as described in Specification No. 4011, in the amount of $979,503, plus a construction reserve of 7.4%, in the amount of $72,659.

Votes as follows:

Ayes:

Noes:

Absent:

Abstain:
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10a

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Solar Energy Power Sales Agreement: 30-Year Power Sales Agreement (PSA) with Southern California Public Power Authority (SCPPA) for Purchase of 25 MW from Notch Peak Project.

COUNCIL ACTION
Item Type: Action
Approved for June 2, 2026 calendar

EXECUTIVE SUMMARY
GWP continuously seeks opportunities to expand its clean energy portfolio, and through its participation with SCPPA, ensures access to utility scale renewable energy projects that are competitively priced, and cost effective.

On April 16, 2026, SCPPA approved a Power Purchase Agreement and Option Agreement with Notch Peak Project, LLC for the Notch Peak Project for a term of 30 years. This long-term agreement offers significant price stability with a competitive fixed rate of $46.75 per megawatt-hour (MWh), with no annual escalation. The participants of this project include the Cities of Glendale and Los Angeles through GWP and LADWP.

Energy will be delivered at the Intermountain Power Project (IPP) switchyard, facilitating integration with existing transmission infrastructure. GWP’s entitlement share in this Project is 25 MW (or equivalently, a 7.72% share of the 324 MW contract capacity) of renewable solar energy and environmental attributes.

Notch Peak Project aligns with City of Glendale’s 2024 Integrated Resource Plan (IRP) and GWP’s strategic goals to engage in opportunities that secure long term, low-cost, reliable, and sustainable energy supplied to City of Glendale customers.

RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute a 30-year Power Sales Agreement with SCPPA for the purchase of solar energy and environmental attributes 60 of 489

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from Notch Peak and finding that the purchase of solar power from SCPPA is exempt from the requirements of CEQA.

ANALYSIS
On April 16, 2026, SCPPA approved a Power Purchase Agreement (PPA) and Option Agreement with Notch Peak Project, LLC a special purpose entity, for the Notch Peak Project (herein referred to as “Notch Peak” or “Project”) for a term of 30 years. Notch Peak Project, LLC’s Project, was selected through SCPPA’s competitive procurement process via a Request for Proposal (RFP) for renewables and energy storage for utility- scale projects. Notch Peak is a 324 MW powerplant of solar photovoltaic generation, located near Millard County, Utah. The Project’s target Commercial Operation Date (COD) is September 30, 2028, with a Guaranteed Commercial Operation Date (GCOD) of December 31, 2028. Notch Peak is the developer and lead agency for all project entitlement, environmental review, permitting and development in Utah.

On December 12, 2023, the City of Glendale adopted Scenario 4 of the 2024 IRP, which was accepted by California Energy Commission (CEC) on April 29, 2024. This progressive plan considers the City Council’s goal to achieve 100% clean energy by 2035, ten years ahead of the statewide target. Participation in Notch Peak reinforces Glendale's commitment to sustainability and environmental leadership.

Glendale's most recent Power Content Label (PCL) for 2024 reporting year contains

35.3% of energy sourced from renewables, with 16.8% of its energy supplied through solar power. (The PCL for the 2025 reporting year is still under third-party verification and is not final). The proposed agreement with SCPPA for Notch Peak is expected to boost solar energy to an estimated 30%, increasing the total renewable energy to an estimated 49%, and overall clean energy to 68%. By integrating this utility-scale solar project into Glendale’s energy mix, the City not only increases its commitment to clean energy but also continues to diversify its energy portfolio.

SCPPA’s Renewable Energy Procurement Process
SCPPA administers an open, competitive procurement process to support Members in complying with the state of California’s renewable energy mandates. Developers submit and update proposals across multiple renewable technologies.

In 2025, SCPPA launched an RFP for Renewable Energy Resources and Energy Storage Solutions, soliciting competitive proposals for renewable energy projects or products consistent to the California Renewable Energy Resources Program (Public Resources Code sec. 25740 et seq.) and the California Renewable Portfolio Standard Program (Public Utilities Code sec. 399.11 et seq.), including amendments enacted by passage of SB 100 (De Leon 2018). Notch Peak Project, LLC’s proposal for Notch Peak was selected through SCPPA’s competitive procurement process.

On April 16, 2026, following negotiations with SCPPA, Notch Peak Project, LLC and participating members LADWP and the City of Glendale, SCPPA authorized execution and delivery of a PPA and option Agreement with Notch Peak Project, LLC. It further authorized SCPPA to enter into a PSA with each of the participating members.

PPA between SCPPA and Notch Peak Project, LLC
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The PPA establishes the commercial, operational, and legal terms of energy procurement between Notch Peak Project, LLC, the seller, and SCPPA, the buyer, for a 30-year term, commencing on the facility's target COD of September 30, 2028. The 324 MW solar facility is located near Millard County, Utah, and the energy will be delivered at the Intermountain Power Project (IPP) switchyard. Beginning on COD, the price for delivered energy under the PPA, including all associated environmental attributes and capacity rights is fixed at an expected $46.75 per megawatt-hour (MWh), with no escalation over the 30-year term. However, the PPA includes price adjustment provisions if certain qualified events occur as defined in Appendix A.

Due to several complex factors, including the implementation of federal tax law and potential rulings by federal agencies such as the IRS, the final pricing under the PPA includes an adjustment formula. If a Qualified IPP Retirement occurs on a given date as noted below, the contract price commencing on COD will be adjusted accordingly:
$46.75 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement occurs by May 31, 2026;
$50.85 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement occurs (a) after May 31, 2026, and (b) by the date the Facility is “placed in service” for tax purposes pursuant to 26 C.F.R. § 1.48-9(b)(5) (“Placed in Service”);
$52.70 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement does not occur by the date the Facility is Placed in Service.

The PPA establishes Annual Expected Generation and Guaranteed Energy Delivered in MWhs and prescribes penalties if the energy delivery targets are missed.

Notch Peak will deliver Portfolio Content Category 1 (PCC1) eligible renewable energy, along with associated Renewable Energy Credits (RECs), capacity attributes, and environmental benefits, ensuring compliance with California’s Renewable Portfolio Standard (RPS). The RECs are transferred to SCPPA and allocated to participating members based on their project entitlement share.

Under the PPA, SCPPA will distribute ownership shares of the purchased energy among its participating members via a Power Sales Agreement (PSA). The participating members’ shares are as follows:

Member MW (AC) of PV Capacity Project Entitlement Share LADWP 299 92.28%
GWP 25 7.72%
Total 324 100%
Facility Purchase Option
The Notch Peak Project includes a structured purchase option granting SCPPA the right, but not the obligation, to negotiate with Seller to acquire the facility at specified intervals throughout the 30-year term. These intervals include the 10th and 15th 62 of 489

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anniversaries of the project’s COD and every five years thereafter. SCPPA may also exercise its purchase option in the event of a default by the developer.

The fair market value of the facility will be determined by an independent appraisal process, with transaction terms governed by the Option Agreement executed alongside the PPA. This agreement ensures transparency in pricing and clearly defined ownership transfer provisions.

PSA Between SCPPA and City of Glendale
While the PPA and PSA run in close parallel, each serve distinct but interrelated purpose. The PSA governs the terms under which the participating members receive and assume cost responsibility based on their entitlement shares from the Project.

Glendale’s entitlement share of the Project is 25 MW or 7.72% entitlement share of the 324 MW contract capacity. In addition, the PSA addresses the following:
Defines roles, rights, and obligations of SCPPA and participants, including project management, budgeting, accounting, and reporting; Establishes a Coordinating Committee with representation and voting proportional to project shares;
Designates LADWP to act as Agent and administer the Project; Establishes payment mechanisms, and billing procedures; Defines delivery of energy, capacity and environmental attributes. Addresses nonperformance, default, liability, termination, and amendments; Covers transmission, and scheduling.
Requires the City of Glendale and other Project participants to provide approval before exercising the facility purchase option.

Under the terms of the PSA, City of Glendale agrees on the following key points:
Purchase Price:
oFixed pricing of $46.75 per MWh for the entire 30-year term (contract price could change according to the Qualified IPP Retirement formula) oTest energy will be charged at a discounted rate of 50% of the contract price during the pre-commercial operation phase.
Start Dates:
oCOD is expected by September 30, 2028, and GCOD by December 31, 2028;
oTest energy delivery will begin prior to the full COD; oFailure to achieve GCOD will result in liquidated damages per the terms. Energy Deliveries:
oTotal expected generation over the 30-year term of the agreement is approximately 24,027,632 MWh, with Glendale’s share equating to roughly 1,854,933 MWh.
Delivery Points and Transmission Path:
oThe point of delivery is the IPP Switchyard in Utah.
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510a
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oSouthern Transmission System
oIPP AdelantoAirway
Billing and Payments:
oSCPPA monthly invoices include energy charges, administrative costs, and project management costs, pass through project management costs, and any other ancillary charges allocated based on Glendale’s share.

Annual true-ups reconcile estimated versus actual costs which will result in annual over/underbilling adjustments.
Liquidated Damages:
oIf the seller, Notch Peak Project, LLC, fails to meet key milestones or guaranteed generation levels, liquidated damages will be applied as outlined in the PPA. Performance assurance in the form of Development Security in the amount of $32.4 million pre-COD, and Performance Security in the amount of $48.6 million after COD are required to be delivered to SCPPA.
oSCPPA participants, including Glendale, will be compensated for shortfalls through these penalties or replacement energy.
Environmental Compliance:
oEnergy and RECs delivered under the PSA will qualify as PCC1 resources, adhering to CEC certification standards.

Notch Peak is a critical project for the City of Glendale for several economic, strategic, and environmental reasons:
Long-Term Contract Price Stability: The Project offers a competitive price of $46.75 per megawatt-hour (MWh) for the 30-year contract term, providing long- term financial stability. The fixed energy price, including environmental attributes, and capacity rights for the term of the PPA contribute to electric rate stability. Ideal Location: Located near Millard County, Utah, the Project benefits from excellent solar insolation, optimizing energy generation. Transmission Access via IPP: Delivery at the IPP switchyard takes advantage of existing transmission infrastructure.
Compliance with RPS: Notch Peak Project will increase GWP’s renewable energy portfolio content, advancing Glendale’s clean energy goals as set forth in Resolution No. 22-125 adopted by City Council on August 16, 2022. Timely Implementation: Notch Peak Project’s target COD is September 30, 2028.

Having this resource online and fully operational in 2028, aligns with Glendale’s goals for renewable energy expansion.

STAKEHOLDERS/OUTREACH
Not applicable.
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FISCAL IMPACT
The total estimated cost for the Notch Peak Project over the 30-year term of the PSA is projected to range between $69,374,000 and $86,718,000. The estimated budget for the first year is between $2,484,500 and $3,105,600, which will be included as part of the FY 2028-29 budget process in the Electric Works Revenue Fund (5820). Funding for future contractual years will be requested through the annual budgetary process.

Several factors can affect the generation at a solar facility, like Notch Peak, including weather patterns, maintenance schedules, equipment outages, grid congestion, and curtailments. To account for these issues, the Project has built-in a 20% cost range between the Expected Annual Generation and Guaranteed Delivered Energy (minimum target).

As a prudent budgeting and forecast approach, staff estimates cost based on Expected Annual Generation while tracking actual expenses based on the annual Guaranteed Delivered Energy.

The Project’s target COD is September 30, 2028, with a GCOD date of December 31, 2028. Based on these milestones, staff will incorporate the 1st year cost of the project in Fiscal Year 2028-29 in GWP’s Power Management Cost Center. Glendale’s first year annual cost is estimated to range between $2,484,500 and $3,105,600, based on Guaranteed Delivered Energy and Annual Expected Generation MWhs provided for in the PPA, at $46.75 per MWh, for Glendale’s 7.72% entitlement share.

The amounts noted in this section are based on the contract price of $46.75; however, it should be noted that there is a contract price change depending on whether a Qualified IPP Retirement occurs, as noted above. If a Qualified IPP Requirement is not determined to have occurred under the formula set forth above, the total expenditure would likely be higher. Regardless of this potential, these fixed prices for a renewable resource are still more cost effective than attempting to acquire this energy on the open market where prices can fluctuate and the energy source could be non-renewable. 65 of 489

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ENVIRONMENTAL REVIEW
The Council’s action to approve a power sales agreement to purchase renewable solar power from SCCPA is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3)(common sense exemption) and Public Resources Code Section 15277 (CEQA not applicable to projects located outside of California) because the Council’s approval of a power sales agreement is not a “project” as defined by California Public Resources Code, Section 21065, and would not result in a direct or reasonably foreseeable indirect change in the physical environment. The Notch Peak project is located in Utah; ; the City is not the Project developer or issuer of Project entitlements for development. Accordingly, the Council action does not have the potential to cause a significant effect on the environment and is thus exempt from CEQA requirements.

CAMPAIGN DISCLOSURE
Not applicable.

ALTERNATIVES TO STAFF RECOMMENDATION
The City Council may decline to adopt the Resolution to approve the Power Sales Agreement, in which case, Glendale will not purchase renewable solar energy and capacity from the Notch Peak Project. GWP would then be obligated to procure renewable or non-renewable energy from the open market, where prices fluctuate and are typically higher, to replace this needed energy.

ADMINISTRATIVE ACTION
Submitted by:

Scott K. Mellon, P.E., General Manager - Glendale Water and Power Prepared by:

Ileana Cardenas, Integrated Resource Planning Administrator Alina Morshidian, Power Contracts Manager
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Exhibit 1: SCPPA Board Resolution 2026-024
Exhibit 2: Power Purchase Agreement Between SCPPA & Notch Peak Project, LLC Exhibit 3: Proposed Power Sales Agreement between SCPPA and the City of Glendale for Notch Peak Project
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1 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA, AUTHORIZING A 30 YEAR POWER SALES AGREEMENT WITH

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY FOR THE PURCHASE OF 25 MW (OR EQUIVALENTLY, AN 7.72% ENTITLEMENT SHARE OF THE 324

MW CONTRACT CAPACITY) OF RENEWABLE SOLAR ENERGY AND

ENVIRONMENTAL ATTRIBUTES FROM THE NOTCH PEAK PROJECT, AND

FINDING THAT THE PROJECT IS EXEMPT FROM THE REQUIREMENTS OF

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Glendale (City) is a member of the Southern California Public Power Authority (SCPPA), a Joint Powers Authority formed in 1980 to facilitate joint power and transmission project for the benefit of Southern California Municipalities; and
WHEREAS, in 2025, SCPPA launched a Request for Proposals (RFP) process for Renewable Energy Resources and Energy Storage Solutions, soliciting competitive proposals for renewable energy projects or products consistent to the California Renewable Energy Resources Program; and
WHEREAS, Notch Peak Project, LLC’s proposal for the Notch Peak Project was selected through SCPPA’s competitive procurement process; and WHEREAS, on April 16, 2026, following negotiations between SCPPA, Notch Peak Project, LLC and the participating members Los Angeles Department of Water and Power (LADWP) and City of Glendale, SCPPA through a resolution, authorized execution and delivery of a Power Purchase Agreement (PPA), Power Sales Agreements (PSAs) between SCPPA and each of the participating members, and an Option Agreement with Notch Peak Project, LLC; and WHEREAS, the 324 MW solar facility is located in near Millard County, Utah, and the energy will be delivered at the Intermountain Power Project (IPP) switchyard; and
WHEREAS, The PPA establishes the commercial, operational and legal terms of the energy procurement from Notch Peak Project, LLC to SCPPA for a 30- year term, commencing on the facility's commercial operation date on September 30, 2028; and
WHEREAS, beginning on commercial operation date, the price for delivered energy under the Power Purchase Agreement, including all associated environmental attributes and capacity rights is fixed at an expected $46.75 per megawatt-hour (MWh), with no escalation over the 30-year term, subject to an adjustment formula depending upon whether a Qualified IPP Retirement occurs by certain dates as set forth in the General Manager of GWP’s report to Council dated June 2, 2026 (Report); and
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2 WHEREAS, The Notch Peak project includes a structured purchase option that provides SCPPA with the opportunity to acquire the facility during specific intervals throughout the 30-year term of the Power Purchase Agreement, including the 10th and 15th anniversaries of the project’s COD and every five years thereafter; and
WHEREAS, Total expected generation over the 30-year term of the agreement is approximately 24,027,632 MWh, with Glendale’s share equating to roughly 1,854,933 MWh; and
WHEREAS, payments to SCPPA will be based on monthly invoices reflecting energy charges, administrative costs, and pass through Project Management cost, and any other ancillary charges applicable to Glendale’s share as set forth in detail, along with the other conditions, in the Report; and WHEREAS, as noted in the Report, Notch Peak Project increases GWP’s renewable energy portfolio content, advancing Glendale’s clean energy goals as set forth in Resolution No. 22-125 adopted by City Council on August 16, 2022; and WHEREAS, in accordance with California Environmental Quality Act (CEQA) provisions, it has been determined that entering into the Power Sales Agreement with SCPPA to purchase power as described herein and the Report is exempt from CEQA pursuant to California Public Resources Code, Section 21065, and Section 15061(b)(3) of the CEQA Guidelines, as it would not result in a direct or reasonably foreseeable indirect change in the physical environment; moreover, the Notch Peak project is exempt from CEQA pursuant to Section 15277 of the CEQA guidelines since it is located outside of the state of California and the project developer is required to obtain all permits, including all necessary environmental review and permitting for the construction and operation of the project.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE, CALIFORNIA:

Section 1. The recitals above are true and correct and incorporated herein.

Section 2. The City Council does hereby authorize the City Manager, or designee, to execute and deliver the Power Sales Agreement with SCPPA, substantially in the form set forth in Exhibit 2 to the Report, for the purchase of 25 MW of renewable solar energy (or equivalently, an 7.72% entitlement share of the 324 MW contract capacity) together with environmental attributes. The form of the Power Sales Agreement shall be subject to the approval of the City Attorney.

Section 3. Each of the City Manager, the General Manager of GWP, and any other officer of the City, is hereby authorized to execute and deliver and any all other documents and instruments and to do and cause to be done any and all acts and things necessary or advisable for carrying out the transaction contemplated by this Resolution, including but not limited to the negotiation of an agreement or 69 of 489

3 arrangement for the transmission and delivery of the energy associated with the Notch Peak Project to Glendale; provided, however, that exercise of a Purchase Option shall require approval of the City Council; and provided further that the execution of a transmission agreement in the event one is needed other than existing transmission for the Notch Peak Project shall be subject to the GWP Trading Authority Policy if necessary, or otherwise through the City’s existing transmission rights.

Section 4. The energy and environmental attributes acquired from the Power Sales Agreement shall be credited towards GWP’s Renewable Portfolio Standard.

Section 5. Payment for Glendale’s obligations under the Power Sales Agreement shall be payable solely from a special fund, to wit, the Electric Works Revenue Fund, and not from the general revenue of the City of Glendale, and the Director of Finance, or his designee, upon proper certification, is authorized and directed to draw demands on the Electric Works Revenue Fund over the term of the Power Sales Agreement, in payment of the obligations incurred by such Power Sales Agreement.

Section 6. The City Council hereby finds that said action is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21065 of the California Public Resources Code, and Sections 15061(b)(3) and 15277 of the CEQA Guideline because the City is purchasing power from a solar project and is not the project developer or issuer of project entitlements for development.

Adopted by the Council of the City of Glendale on this ___ day of _________, 2026.
________________________________
Mayor
ATTEST:
_____________________________________
City Clerk
STATE OF CALIFORNIA ) SS.

COUNTY OF LOS ANGELES )
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4 I, Suzie Abajian PhD, City Clerk of the City of Glendale, hereby certify that the foregoing Resolution No. _______________ was adopted by a majority vote of the Council of the City of Glendale, California, at a regular meeting held on the ______ day of ______________________, 2026, and that the same was adopted by the following vote:

Ayes:

Noes:

Absent:

Abstain:
________________________
City Clerk
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AGENDA ITEM STAFF REPORT
AGENDA STAFF REPORT TEMPLATE Page 1 of 4 v.8/6/2019
MEETING DATE: April 16, 2026 RESOLUTION NUMBER: 2026-024 SUBJECT:

Approval of a Power Purchase Agreement and an Option Agreement with Notch Peak Project, LLC for the Notch Peak Project, Power Sales Agreements with each of the City of Los Angeles, acting by and through the Los Angeles Department of Water and Power (LADWP) and the City of Glendale, and an Agency Agreement with LADWP; and finding such action exempt from the California Environmental Quality Act
DISCUSSION: ܈܈ OR CONSENT: ܆܆
Select the appropriate box(es):

FROM: METHOD OF SELECTION:

Finance ܆Competitive ܈
Project Development ܈Cooperative Purchase տ
Program Development ܆Sole Source տ
Regulatory/Legislative ܆Single Source տ
Project Administration ܆Other (Please describe):

Legal ܆
Executive Director ܆
MEMBER PARTICIPATION:

Sponsoring Member: Los Angeles Department of Water and Power and City of Glendale Other Members Potentially Participating: None
Approved by Executive Director: ___________________________________

EXHIBIT 1
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AGENDA STAFF REPORT TEMPLATE Page 2 of 4 v.8/6/2019

RECOMMENDATION:

Adopt a Resolution authorizing the negotiation, execution, and delivery of a Power Purchase Agreement (PPA) and Option Agreement with Notch Peak Project LLC, and corresponding Power Sales Agreements (each a “PSA”) with the City of Los Angeles, acting by and through the Los Angeles Department of Water & Power (LADWP) and the City of Glendale (Glendale) (Participating Members or Members), and an Agency Agreement with LADWP, for the Notch Peak Project (“Notch Peak Project” or the “Project” ), and finding that such action is exempt from the California Environmental Quality Act. The Notch Peak Project will provide long term renewable energy through the Southern California Public Power Authority (SCPPA) for LADWP and Glendale, the purpose of satisfying each Participating Member’s renewable resource goals.

BACKGROUND:

In order to assist Members in complying with renewable mandates, and to address the renewable electrical energy needs of its Members, in February 14, 2025, SCPPA issued a Request for Proposals for Renewable Energy Resources and Energy Storage Solutions (RFP). The RFP solicited competitive proposals for renewable energy projects or products consistent with the California Renewable Energy Resources Program (Public Resources Code sec. 25740 et seq.) and the California Renewables Portfolio Standard Program (Public Utilities Code sec. 399.11 et seq.), including amendments enacted by passage of SB 100 (De Leon 2018). SCPPA’s RFP targeted proposals for renewable resources with commercial operation or delivery starting in 2026 and beyond.

Notch Peak Project, LLC, submitted a proposal for the Notch Peak Project and was selected by SCPPA and the Participating Members for negotiation of a PPA. The Project is a solar facility that will be located near Millard County, Utah that will have a net capacity of 324 MW of solar.

DISCUSSION:
x Key Terms of the Agreements:

The Notch Peak Project will deliver 324 MW of renewable solar capacity to SCPPA for LADWP and Glendale for a 30-year term. SCPPA will purchase the energy, capacity, and environmental attributes under a PPA with Notch Peak Project, LLC, a special purpose entity (Seller). SCPPA will sell all such energy, capacity, and environmental attributes to LADWP and Glendale under a PSA between SPPA and each of the Participating Members. LADWP will serve as the project manager for the Project under an Agency Agreement between SCPPA and LADWP. Of the Project’s total 324 MW capacity, the participating Members’ shares are as follows:

Member MW (AC) of PV
Capacity
Project
Entitlement
Share
LADWP 299 92.28%
Glendale 25 7.72%
Total 324 100%

The Notch Peak Project’s point of delivery is at the Intermountain Power Plant (IPP). The Project has a target commercial operation date of September 30, 2028 and a guaranteed commercial operation date of December 31, 2028. If Seller fails to achieve commercial operation of the facility by the guaranteed commercial operation date, Seller will be required to pay SCPPA $180,000 per day for each day of delay in achieving the guaranteed commercial operation date for up to one hundred eighty days, after which time SCPPA will be entitled to

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AGENDA STAFF REPORT TEMPLATE Page 3 of 4 v.8/6/2019

declare a default and exercise its remedies under the PPA, including the right to terminate the PPA and seek termination payment damages.

The PPA provides for an adjustment in price if the Notch Peak Project is determined to be in an Energy Community area and is eligible for a PTC (Production Tax Credit) adder. An Energy Community can include geographic areas with a recently retired coal mine or coal electric generating unit, or areas with significant fossil fuel extraction, processing, transport, or storage industries and unemployment at or above the national average.

o If the Energy Community adder applies and occurs by May 31, 2026, the adjusted price for the contract will be $46.75/MWh.
o If the facility is an Energy Community area after May 31, 2026 and by the date the Notch Peak facility reaches COD, then the price will be $50.85/MWh. o If the facility isn’t an Energy Community area by COD, then the price will be $52.70/MWh.

x Option Agreement
The Option Agreement provides SCPPA with the right, but not the obligation, to negotiate with Seller for the potential purchase of the Notch Peak Project at the following times over the term of the PPA:
o One (1) year prior to the tenth (10th) anniversary of the COD; and o One (1) year prior to the fifteenth (15th) anniversary of the COD; and o One (1) year prior to every five (5) years after the fifteenth (15) anniversary of the COD until the end of the Agreement.
o Within 60 days of issuance of a Termination Notice from Buyer to Seller.

The Fair Market Value for any such purchase would be determined at the time the option is exercised through a procedure set forth in the Option Agreement.

x Effective Date of PPA and Option Agreement – Termination Right if PSA not Executed:

The PPA and Option Agreement will become effective immediately upon execution by SCPPA and the Seller. However, the corresponding PSA between SCPPA and the Participating Member will not be executed and effective unless and until LADWP and Glendale obtains their governing bodies’ approval of their respective PSAs for the Notch Peak Project. Similarly, the Agency Agreement between SCPPA and LADWP will not be executed unless and until LADWP obtains its governing bodies’ approval of the Agency Agreement.

In order to protect SCPPA from the risk of entering into a long-term PPA without having in place corresponding PSAs with the Participating Members to purchase the energy and capacity, the PPA and Option Agreement provide each of SCPPA and Seller with a termination right if the Participating Members’ approvals are not obtained and the PSAs are not executed by a specified deadline.

The PPA specifies an “Approval Deadline” of six (6) months from the PPA’s effective date. During this time, LADWP will seek governing body approvals to execute its PSA and Agency Agreement, and Glendale will seek governing body approval to execute its PSA. If Participating Members’ approvals are not obtained and the PSA and Agency Agreement are not executed by the Approval Deadline, SCPPA or the Seller has the right to terminate the PPA and Option Agreement. The proposed Resolution would authorize SCPPA officers or the Executive

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Directors to provide notice of termination if the PSA and Agency Agreement are not approved and executed by Members by the Approval Deadline.

x Selection Method:

The proposal for the Notch Peak Project was selected from thirty-nine (39) proposals received in response to a competitive procurement -- the rolling 2025 Q1/Q2 Request for Proposals for Renewable Energy Resources and Energy Storage Solutions (RFP) which was issued by SCPPA on February 14, 2025, and closed on June 30, 2025. The proposal for the Notch Peak Project was selected by the Members as a viable and cost-effective solar project to be delivered at IPP. The Notch Peak Project will help the Members in achieving its RPS goals and energy needs.

x Environmental Review:

The proposed Board action is exempt from the requirements of the California Environmental Quality Act (CEQA). The SCPPA Board’s approval of the aforementioned agreements and actions taken in furtherance thereof is not a “project” as defined by CEQA 1 as it would not result
in a direct or reasonably foreseeable indirect change in the physical environment. Further, the action does not have the potential to cause a significant effect on the environment and is thus exempt from CEQA under Section 15061(b)(3) of the State CEQA Guidelines 2. Further, the Seller is required to obtain all permits, including all necessary environmental review and permitting, for the construction and operation of the Project.

x SCPPA’s Authority:

In accordance with the Joint Powers Agreement, SCPPA may facilitate and enter into contracts for the procurement of electric generation capacity for SCPPA Members.

FISCAL IMPACT:

SCPPA does not anticipate any significant expenses for the PPA and Option Agreement prior to execution of the PSA and Agency Agreement. To the extent that SCPPA incurs any costs and expenses associated with the Notch Peak Project before the PSAs and Agency Agreement are executed and prior to achieving commercial operation of the Notch Peak Project, such costs and expenses will be paid by LADWP and Glendale under the terms of the Phase II Renewable Development Agreement between SCPPA and each of its Members, and such expenses will be billed to the Participating Members via Resolution Billing under Resolution No. 2012-008. After the PSAs are executed, and following the achievement of commercial operation, LADWP and Glendale will pay for any and all energy products and services associated with the Notch Peak Project (including costs of LADWP as agent, under the Agency Agreement) under the terms of each Participating Member’s PSA.

ATTACHMENTS:

1. Resolution 2026-024

2. Power Purchase Agreement, including Option Agreement between SCPPA and Notch Peak Project, LLC

3. Power Sales Agreements between SCPPA and each of LADWP and Glendale

4. Agency Agreement between SCPPA and LADWP

1 California Public Resources Code §21065
2 14 California Code of Regulations, §15000 et seq.

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1 RESOLUTION NO. 2026-024
RESOLUTION RELATING TO THE NOTCH PEAK PROJECT: AUTHORIZING

THE NEGOTIATION, EXECUTION, AND DELIVERY OF A POWER PURCHASE

AGREEMENT AND RELATED DOCUMENTS, AGREEMENTS, AND

INSTRUMENTS, INCLUDING AN OPTION AGREEMENT, BETWEEN SOUTHERN

CALIFORNIA PUBLIC POWER AUTHORITY AND NOTCH PEAK PROJECT, LLC; TWO SEPARATE POWER SALES AGREEMENTS BETWEEN SOUTHERN

CALIFORNIA PUBLIC POWER AUTHORIT Y AND EACH OF THE CITIES OF

GLENDALE, AND LOS ANGELES, ACTING BY AND THROUGH THE

DEPRTMENT OF WATER AND POWER, AND AN ANGECY AGREEMENT

BETWEEN THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND

THE CITY OF LOS ANGELES, ACTING BY AND THROUGH THE DEPARTMENT OF WATER & POWER; AND SUCH OTHER DOCUMENTS, INSTRUMENTS, AND

AGREEMENTS AS MAY BE NECESSARY OR APPROPRIATE TO ACHIEVE THE

FULL UTILIZATION OF THE RESOURCES OF THE PROJECT AND AS SHALL

BEST CARRY FORWARD THE INTERES TS AND OBJECTIVES OF THE AUTHORITY; AND FINDING THAT SUCH ACTION IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the Southern California Public Po wer Authority (the “Authority") has issued Requests for Proposals for potenti al renewable electric resources to addres s Authority member renewable energy needs as part of that process th e Authority, and as part of that process, the Authority, together with the cities of Glendale, and Los Angeles acting by and through the Department of Water & Power (“LADWP”) (collectively the “Project Participants”) have expressed an interest in receiving energy generated from a resource denomina ted as the Notch Peak Project and located in Millard County, Utah (the “Project”); and WHEREAS, the Authority and the Project Participants have negotiated with Notch Peak Project, LLC (the “Power Purcha se Provider”) and developed in substantial final form a power purchase agreement (the “Power Purchase Agreeme nt”) whereby the Power Purchase Provider will sell and the Authority will purchase solar energy a nd associated environmenta l rights and benefits of the Project; and
WHEREAS, the Authority and the Project Participants have negotiated with the Power Purchase Provider and developed in substantial final form an Option Agreement whereby the Authority would be provided the ab ility to exercise an option to purchase or acquire the Project or otherwise success to the ow nership of the Project (the “Option Agreement); and 76 of 489

2 WHEREAS, the Authority and the Project Participants desire to enter into two separate power sales agreements (each, a “Power Sales Agreement”), one with each of the Project Participants, whereby the Authority will provide to the Project Participants the full output of the Project, and the Project Participants will pay all costs, liabilities, and obligations of the Authority in connection with the Project; and
WHEREAS, the Authority and LA DWP desire to enter into an agency agreement (the “Agency Agreement”) to designate LADWP to act as the agent and pr oject manager for the Authority in connection with the management and administration of the Project and to ca rry out the necessary project management tasks asso ciated with the Project; and WHEREAS, the under the terms of the Power Purchase Agreement, the Authority may terminate the Power Purchase Agreement if the Au thority and Project Participants are unable to negotiate, approve and execute the Power Sales Ag reements and Agency Agreement by an approval deadline specified in the Power Purchase Ag reement (the “Approval Deadline”); and WHEREAS, the Authority and the Project Particip ants desire to provide for, and authorize, the further development, negotiation, entering into, execution, and delivery of such other documents, instruments, agreements, and arrangements with resp ect to the resources of the Project so as to facilitate the generation, transm ission, and delivery of energy asso ciated with the Project and to provide for the negotiation and approval of thos e terms and conditions with respect to such agreements and arrangements as shall best carry forward the intere sts of the Authority and the Project Participants and as shall best achieve the Author ity’s and the Project Part icipants’ objectives; and WHEREAS, the Authority’s appr oval of the aforementioned ag reements and actions taken in furtherance thereof is not a “project” under th e California Environmenta l Quality Act (“CEQA”) as it would not result in a direct or reasonabl y foreseeable indirect change in the physical environment and further, is exempt from CEQA as the action does not have the potential to cause a significant effect on the environment; and further, the Notch Peak facility will required to obtain all permits, including all necessary environmental review, for the c onstruction and operation of the Project in the State of Utah.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Southern California Public Power Authority as follows:

1. This action is exempt from the requirements of CEQA pursuant to Section 21065 of the California Public Resources Code and Sections 15061(b)(3) and Sections 15061(b) (3) of Title 14 of the California Code of Regulations (the State CEQA Guidelines).

2. The Executive Director is hereby delegated all right, power, and authority to negotiate and finalize, and each of the President, Vice President, and Executive Director of the Authority is hereby authorized and 77 of 489

3 directed upon the successful negotiation thereof, to execute and deliver the Power Purchase Agreement, in substantial form as presented to the Board of Directors, and each of such other agreements, documents, and instruments, the substance or form of which are referenced in or otherwise attached to the Power Purchase Agreement (including but not limited to , the substance and form of the Option Agreement attached to the Power Purchase Agreement), or which may be contemplated by the terms of the Power Purchase Agreement and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said President, Vice Pres ident, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

3. The Executive Director is hereby delegated all right, power, and authority to negotiate and finalize, and each of the President, Vice President, and Executive Director of the Authority is hereby authorized and directed upon the successful negotiation thereof, to execute and deliver the Power Sales Agreements, in substantial form as presented to the Board of Directors, and each of such other agreements, documents, and instruments, the substance or form of which are referenced or which may be contemplated by the terms of the Power Sales Agreements and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said President, Vice President, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

4. The Executive Director is hereby delegated all right, power, and authority to negotiate and finalize, and each of the President, Vice President, and Executive Director of the Authority is hereby authorized and directed upon the successful negotiation thereof, to execute and deliver the Agency Agreement, which provides for LADWP to act as agent and project manage r for the Authority, in su bstantially the form as presented to the Board of Directors, and each of su ch other agreements, documents, and instruments, the substance or form of which are referenced or which may be contemplated by the terms of the Agency Agreement and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said President, Vice President, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

5. In addition to the foregoing, in order to facilitate the negotiati on and consummation of the contemplated arrangements for the generation and delivery of energy from the Project and to carry forward other necessary or appropriate agreements associated with the acquisition of energy and solar generation resources of the Project and the delivery of the ener gy and environmental attributes of the Project to Southern California, and to achieve the full utilization of the resources of the Project, the Board of Directors hereby delegates to the Executive Director of the Au thority all right, power, and authority to negotiate, approve, and execute agreements, documents, and arrangements with respect to the resources of the Project to facilitate the generation, tran smission, and delivery of energy associated with the Project and to negotiate and approve those terms and conditions with respect to such agreements and arrangements as shall best carry forward the interests of the Authority and the Project Participants and as shall best achieve the Authority’s and the Project Participants’ objectiv es, including the negotiation, development, and execution of any consent agreement or other agreement pursuant to a change in control, project-related financing, or as otherwise necessary or appropriate to carry forward the interests of the Authority and the 78 of 489

4 Project Participants, which does not require a material modification to or material change to the Power Purchase Agreement.

5. Each of the President, Vice President, Secretary, any Assistant Secretary, and the Executive Director is hereby authorized to execute and deliver any and all agreements, documents, and instruments and to do and cause to be done any and all acts and things deemed necessary or advisable for carrying out the transactions contemplated by this Resolution (including, but not limited to, making such changes to the agreements, documents, and instruments referred to in this Resolution if such changes are determined by the President, Vice Pr esident, or Executive Director to be necessary or advisable, and including, but not limited to, executing and deliverin g notice of termination of the Power Purchase Agreement if the Authority and the Project Participants are unable to negotiate, approve, and execute the Power Sales Agreements on or be fore the Approval Deadline, as defined in the Power Purchase Agreement). Each reference in this Resolution to the President, Vice President, Secretary, Assistant Secretary, or Executive Director shall refer to the person holding such office or position, as applicable, at the time a given action is taken and shall not be limited to the person holding such office or position at the time of the adoption of this Resolution. All actions heretofore taken by the officers, employees, and agents of the Authority in furtherance of the tr ansactions contemplated by this Resolution are hereby approved, ratified, and confirmed.

THE FOREGOING RESOLUTION NO. 2026-024 is approved and adopted by the Authority this 16th day of April, 2026 and is effective immediately.

_____________________________________

TIKAN SINGH

VICE PRESIDENT
Southern California Public
Power Authority
ATTEST:

_____________________________________

DANIEL E GARCIA

ASSISTANT SECRETARY
Southern California Public
Power Authority

79 of 489

1 RESOLUTION NO. 2026-024
RESOLUTION RELATING TO THE NOTCH PEAK PROJECT: AUTHORIZING

THE NEGOTIATION, EXECUTION, AND DELIVERY OF A POWER PURCHASE

AGREEMENT AND RELATED DOCUMENTS, AGREEMENTS, AND

INSTRUMENTS, INCLUDING AN OPTION AGREEMENT, BETWEEN SOUTHERN

CALIFORNIA PUBLIC POWER AUTHORITY AND NOTCH PEAK PROJECT , LLC; TWO SEPARATE POWER SALES AGREEMENTS BETWEEN SOUTHERN

CALIFORNIA PUBLIC POWER AUTHORITY AND EACH OF THE CITIES OF

GLENDALE, AND LOS ANGELES , ACTING BY AND THROUGH THE

DEPRTMENT OF WATER AND POWER , AND AN ANGECY AGREEMENT

BETWEEN THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY AND

THE CITY OF LOS ANGELES, ACTING BY AND THROUGH THE DEPARTMENT OF WATER & POWER; AND SUCH OTHER DOCUMENTS, INSTRUMENTS , AND

AGREEMENTS AS MAY BE NECESSARY OR APPROPRIATE TO ACHIEVE THE

FULL UTILIZATION OF THE RESOURCES OF THE PROJECT AND AS SHALL

BEST CARRY FORWARD THE INTERESTS AND OBJECTIVES OF THE
AUTHORITY; AND FINDING THAT SUCH ACTION IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, the Southern California Public Power Authority (the “Authority") has issued Requests for Proposals for potential renewable electric resources to address Authority member renewable energy needs as part of that process the Authority, and as part of that process, the Authority, together with the cities of Glendale, and Los Angeles acting by and through the Department of Water & Power (“LADWP”) (collectively the “Project Participant s”) have expressed an interest in receiving energy generated from a resource denominated as the Notch Peak Project and located in Millard County, Utah (the “Project”) ; and WHEREAS, the Authority and the Project Participant s have negotiated with Notch Peak Project , LLC (the “Power Purchase Provider”) and developed in substantial final form a power purchase agreement (the “Power Purchase Agreement”) whereby the Power Purchase Provider will sell and the Authority will purchase solar energy and associated environmental rights and benefits of the Project ; and
WHEREAS, the Authority and the Project Participants have negotiated with the Power Purchase Provider and developed in substantial final form an Option Agreement whereby the Authority would be provided the ability to exercise an option to purchase or acquire the Project or otherwise success to the ownership of the Project (the “Option Agreement); and Docusign Envelope ID: 78FFF87E-C445-8005-8105-43CDC91DEBD2 80 of 489

2 WHEREAS, the Authority and the Project Participant s desire to enter into two separate power sales agreement s (each, a “Power Sales Agreement”), one with each of the Project Participants, whereby the Authority will provide to the Project Participant s the full output of the Project, and the Project Participant s will pay all costs, liabilities, and obligations of the Authority in connection with the Project; and
WHEREAS, the Authority and LADWP desire to enter into an agency agreement (the “Agency Agreement”) to designate LADWP to act as the agent and project manager for the Authority in connection with the management and administration of the Project and to carry out the necessary project management tasks associated with the Project; and WHEREAS, the under the terms of the Power Purchase Agreement, the Authority may terminate the Power Purchase Agreement if the Authority and Project Participants are unable to negotiate , approve and execute the Power Sales Agreements and Agency Agreement by an approval deadline specified in the Power Purchase Agreement (the “Approval Deadline”) ; and WHEREAS, the Authority and the Project Participant s desire to provide for, and authorize, the further development, negotiation, entering into, execution, and delivery of such other documents, instruments, agreements, and arrangements with respect to the resources of the Project so as to facilitate the generation, transmission, and delivery of energy associated with the Project and to provide for the negotiation and approva l of those terms and conditions with respect to such agreements and arrangements as sh all best carry forward the interests of the Authority and the Project Participant s and as shall best achieve the Authority’s and the Project Participant s’ objectives; and WHEREAS, th e Authority’s approval of the aforementioned agreements and actions taken in furtherance thereof is not a “project” under the California Environmental Quality Act (“CEQA”) as it would not result in a direct or reasonably foreseeable indirect change in the physical environment and further, is exempt from CEQA as the action does not have the potential to cause a significant effect on the environment ; and further, the Notch Peak facility will required to obtain all permits, including all necessary environmental review, for the construction and operation of the Project in the State of Utah .

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Southern California Public Power Authority as follows:

1. This action is exempt from the requirements of CEQA pursuant to Section 21065 of the California Public Resources Code and Section s 15061(b)(3) and Sections 15061(b)(3) of Title 14 of the California Code of Regulations (the State CEQA Guidelines) .

3 directed upon the successful negotiation thereof, to execute and deliver the Power Purchase Agreement, in substantial form as presented to the Board of Directors, and each of such other agreements, documents, and instruments, the substance or form of which are referenced in or otherwise attached to the Power Purchase Agreement (including but not limited to, the substance and form of the Option Agreement attached to the Power Purchase Agreement), or which may be contemplated by the terms of the Power Purchase Agreement and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said President, Vi ce President, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

3. The Executive Director is hereby delegated all right, power, and authority to negotiate and finalize, and each of the President, Vice President, and Executive Director of the Authority is hereby authorized and directed upon the successful negotiation there of, to execute and deliver the Power Sales Agreements, in substantial form as presented to the Board of Directors, and each of such other agreements, documents, and instruments, the substance or form of which are referenced or which may be contemplated by the terms of the Power Sales Agreements and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said President, Vice President, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

4. The Executive Director is hereby delegated all right, power, and authority to negotiate and finalize, and each of the President, Vice President, and Executive Director of the Authority is hereby authorized and directed upon the successful negotiation there of, to execute and deliver the Agency Agreement, which provides for LADWP to act as agent and project manager for the Authority, in substantially the form as presented to the Board of Directors, and each of such other agreements, documents, and instruments , the substance or form of which are referenced or which may be contemplated by the terms of the Agency Agreement and to which the Authority is to be a party or is to sign, each with such changes, insertions, and omissions as shall be approved by said Pres ident, Vice President, or Executive Director (such approval to be conclusively evidenced by her or his execution and delivery thereof), and each of the Secretary and any Assistant Secretary is hereby authorized to attest to such signature.

5. In addition to the foregoing, in order to facilitate the negotiation and consummation of the contemplated arrangements for the generation and delivery of energy from the Project and to carry forward other necessary or appropriate agreements associated with the acquisition of energy and solar generation resources of the Project and the delivery of the energy and environmental attributes of the Project to Southern California, and to achieve the full utilization of the resources of the Project, the Board of Directors hereby delegates to the Executive Director of the Authority all right, power, and authority to negotiate, approve, and execute agreements, documents, and arrangements with respect to the resources of the Project to facilitate the generation, transmission, and delivery of energy associated with the Project and to negotiate and approve those terms and conditions with respect to such agreements and arrangements as shall best carry forward the interests of the Authority and the Project Participants and as shall best achieve the Authority’s and the Project Participants ’ objectives, including the negotiation, development, and execution of any consent agreement or other agreement pursuant to a change in control, project -related financing, or as otherwise necessary or appropriate to carry forward the interests of the Authority and the Docusign Envelope ID: 78FFF87E-C445-8005-8105-43CDC91DEBD2 82 of 489

4 Project Participants, which does not require a material modification to or material change to the Power Purchase Agreement.

5. Each of the President, Vice President, Secretary, any Assistant Secretary, and the Executive Director is hereby authorized to execute and deliver any and all agreements, documents, and instruments and to do and cause to be done any and all acts and things deemed necessary or advisable for carrying out the transactions contemplated by this Resolution (including, but not limited to, making such changes to the agreements, documents, and instruments referred to in this Resolution if such changes are determined by the President, Vice President, or Executive Director to be necessary or advisable , and including, but not limited to, executing and delivering notice of termination of the Power Purchase Agreement if the Authority and the Project Participants are unable to negotiate, approve, and execute the Power Sales Agreements on or before the Approval Deadline, as defined in the Power Purchase Agreement). Each reference in this Resolution to the President, Vice President, Secretary, Assistant Secretary, or Executive Director shall refer to the person holding such office or position, as applicable, at the time a given action is taken and shall not be limited to the person holding such office or position at the time of the adoption of this Resolution. All actions heret ofore taken by the officers, employees, and agents of the Authority in furtherance of the transactions contemplated by this Resolution are hereby approved, ratified, and confirmed.

THE FOREGOING RESOLUTION NO. 2026-024 is approved and adopted by the Authority this 16th day of April, 2026 and is effective immediately.

_____________________________________

TIKAN SINGH

VICE PRESIDENT
Southern California Public
Power Authority
ATTEST:

_____________________________________

DANIEL E GARCIA

ASSISTANT SECRETARY
Southern California Public
Power Authority

Docusign Envelope ID: 78FFF87E-C445-8005-8105-43CDC91DEBD2 83 of 489

Execution Version

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC
DATED AS OF APRIL 16, 2026
EXHIBIT 2
84 of 489

TABLE OF CONTENTS
Page
Article I DEFINITIONS AND INTERPRETATION ......................................................................1 Section 1.1 Definitions....................................................................................................1 Section 1.2 Interpretation ..............................................................................................28 Section 1.3 Interpretation with Interconnection Agreement .........................................29 Section 1.4 Order of Precedence ...................................................................................29 Article II EFFECTIVE DATE, TERM AND EARLY TERMINATION .....................................30 Section 2.1 Effective Date ............................................................................................30 Section 2.2 Post-Approval Date Obligations ................................................................30 Section 2.3 Agreement Term and Delivery Term .........................................................30 Section 2.4 Survivability ...............................................................................................30 Section 2.5 Early Termination ......................................................................................30 Section 2.6 Early Termination for Failure to Obtain Required Approvals ...................31 Article III DEVELOPMENT OF THE FACILITY .......................................................................31 Section 3.1 Permitting and CEQA Determinations ......................................................32 Section 3.2 Design, Development and Construction of the Facility .............................32 Section 3.3 Milestone Schedule; Daily Delay Damages ..............................................32 Section 3.4 Certification of Commercial Operation Dates ...........................................34 Section 3.5 CEC Certification.......................................................................................35 Section 3.6 Other Information ......................................................................................35 Section 3.7 Transmission Line Loss Factor ..................................................................35 Article IV OPERATION AND MAINTENANCE OF THE FACILITY .....................................36 Section 4.1 Compliance with Electrical Service Requirements....................................36 Section 4.2 General Operational Requirements ............................................................36 Section 4.3 Extended Reactive Power and Option .......................................................36 Section 4.4 Not Used ....................................................................................................36 Section 4.5 Operation and Maintenance Plan after Commercial Operation .................36 Section 4.6 Operation and Maintenance Plan after Purchase Option Notice ...............37 Section 4.7 Reporting and Information after Purchase Option Notice .........................38 Section 4.8 Compliance with New Resource Implementation .....................................38 Article V COMPLIANCE DURING CONSTRUCTION AND OPERATION PERIOD ............38 Section 5.1 In General...................................................................................................38 Section 5.2 Effect of Review by Buyer ........................................................................40 Section 5.3 Compliance With Standards; PMU Requirements ....................................40 Section 5.4 Quality Assurance Program .......................................................................41 Section 5.5 Preservation of the Facility ........................................................................41 Section 5.6 Security Provided by Seller .......................................................................41 Section 5.7 Decommissioning and Other Costs ............................................................43 Section 5.8 Quarterly Certification ...............................................................................44 Section 5.9 Taxes ..........................................................................................................44 85 of 489

ii
Section 5.10 Environmental Credits ...............................................................................44 Article VI PURCHASE AND SALE OF POWER .......................................................................45 Section 6.1 Purchases by Buyer ....................................................................................45 Section 6.2 Point of Delivery ........................................................................................45 Section 6.3 Seller’s Failure ...........................................................................................45 Section 6.4 Buyer’s Failure...........................................................................................46 Section 6.5 Guaranteed Delivered Energy ....................................................................46 Article VII TRANSMISSION AND SCHEDULING; TITLE AND RISK OF LOSS .................47 Section 7.1 In General...................................................................................................47 Section 7.2 Forecasting and Scheduling of Energy ......................................................47 Section 7.3 Real-Time Data Requirements ...................................................................49 Section 7.4 Maintenance and Scheduled Outages ........................................................51 Section 7.5 Curtailments; Deemed Delivered Energy ..................................................52 Section 7.6 Title; Risk of Loss ......................................................................................54 Article VIII ENVIRONMENTAL ATTRIBUTES; EPS AND RPS COMPLIANCE ..................54 Section 8.1 Transfer of Environmental Attributes ........................................................54 Section 8.2 Reporting of Ownership of Environmental Attributes...............................55 Section 8.3 Environmental Attributes ...........................................................................55 Section 8.4 Use of Accounting System to Transfer Environmental Attributes....................................................................................................55 Section 8.5 Further Assurances.....................................................................................56 Section 8.6 RPS and EPS Compliance .........................................................................56 Section 8.7 Change in Law ...........................................................................................56 Section 8.8 Change in Market Structure .......................................................................58 Article IX MAKEUP OF SHORTFALL ENERGY ......................................................................58 Section 9.1 Makeup of Shortfall ...................................................................................58 Section 9.2 Replacement Energy ..................................................................................59 Section 9.3 Shortfall Liquidated Damages ...................................................................59 Section 9.4 Application of Shortfall Energy or Replacement Energy ..........................61 Article X CAPACITY RIGHTS ....................................................................................................61 Section 10.1 Purchase and Sale of Capacity Rights .......................................................61 Section 10.2 Representation Regarding Ownership of Capacity Rights ........................61 Section 10.3 Further Assurances.....................................................................................61 Article XI BILLING; PAYMENT; AUDITS; METERING; ATTESTATIONS..........................62 Section 11.1 Billing and Payment ...................................................................................62 Section 11.2 WREGIS Withholding ...............................................................................63 Section 11.3 Disputed Invoices.......................................................................................64 Section 11.4 Buyer’s Right of Setoff ..............................................................................64 Section 11.5 Records and Audits ....................................................................................64 Section 11.6 Electric Metering Devices..........................................................................65 86 of 489

iii
Article XII REPRESENTATIONS AND WARRANTIES; COVENANTS OF SELLER ...........67 Section 12.1 Representations and Warranties by Buyer .................................................67 Section 12.2 Representations and Warranties by Seller .................................................67 Section 12.3 Covenant of Seller Related to Seller’s Status as Special Purpose Entity ............................................................................................70 Section 12.4 Covenants of Seller Related to Real Property Agreements .......................70 Section 12.5 Covenants of Seller Related to Tax Equity Financing ...............................72 Section 12.6 Additional Covenants of Seller ..................................................................73 Article XIII DEFAULT; TERMINATION AND REMEDIES .....................................................74 Section 13.1 Default........................................................................................................74 Section 13.2 Default Remedy .........................................................................................76 Section 13.3 Termination for Default .............................................................................76 Section 13.4 Cure Rights of Facility Lender and Buyer .................................................78 Article XIV MISCELLANEOUS ..................................................................................................79 Section 14.1 Authorized Representative .........................................................................79 Section 14.2 Notices .......................................................................................................79 Section 14.3 Dispute Resolution .....................................................................................80 Section 14.4 Further Assurances.....................................................................................80 Section 14.5 Force Majeure ............................................................................................80 Section 14.6 Assignment of Agreement; Change in Control ..........................................82 Section 14.7 Ambiguity ..................................................................................................83 Section 14.8 Attorney Fees & Costs/Reimbursement of Buyer’s Attorneys’ Fees ............................................................................................................83 Section 14.9 Voluntary Execution ..................................................................................84 Section 14.10 Entire Agreement; Amendments................................................................84 Section 14.11 Governing Law ..........................................................................................84 Section 14.12 Venue .........................................................................................................84 Section 14.13 Execution in Counterparts..........................................................................84 Section 14.14 Effect of Section Headings ........................................................................84 Section 14.15 Waiver ........................................................................................................84 Section 14.16 Relationship of the Parties .........................................................................85 Section 14.17 Indemnification; Damage or Destruction; Insurance; Limit of Liability ......................................................................................................85 Section 14.18 Severability ................................................................................................87

Section 14.19 Confidentiality ...........................................................................................87 Section 14.20 Mobile Sierra .............................................................................................89 Section 14.21 Right of First Offer and Right of First Refusal ..........................................89 Section 14.22 Future Phases .............................................................................................90 Section 14.23 No Dedication of Facilities ........................................................................91 Section 14.24 Buyer and Participating Member Business Policies ..................................91 Section 14.25 Service Contract .........................................................................................94

87 of 489

APPENDICES

APPENDIX A CONTRACT PRICE

APPENDIX B FACILITY DESCRIPTION AND MILESTONE SCHEDULE

APPENDIX C BUYER AND SELLER BILLING, NOTIFICATION AND

SCHEDULING CONTACT INFORMATION

APPENDIX D FORM OF ATTESTATION

APPENDIX E SALE LEASEBACK REQUIREMENTS

APPENDIX F INSURANCE

APPENDIX G METEOROLOGICAL AND PYRANOMETER MEASUREMENTS

APPENDIX H REAL PROPERTY AGREEMENTS
APPENDIX I EXPECTED ANNUAL GENERATION; GUARANTEED DELIVERED ENERGY

APPENDIX J QUALITY ASSURANCE PROGRAM

APPENDIX K PERMITS

APPENDIX L OPTION AGREEMENT

APPENDIX M FORM OF LETTER OF CREDIT

APPENDIX N CERTIFICATE FOR COMMERCIAL OPERATION

APPENDIX O FORM OF CONSENT AND ESTOPPEL AGREEMENT
APPENDIX P BUYER’S SYSTEM PROTECTION DESIGN
APPENDIX Q BUYER’S BUSINESS POLICIES AND CERTIFICATION FORMS APPENDIX R-1 SINGLE LINE DIAGRAM

APPENDIX S PMU REQUIREMENTS

APPENDIX T PRELIMINARY DRAFT FORM OF INVOICE

APPENDIX U LADWP METERING POLICY

APPENDIX V FORM OF TAX EQUITY CONSENT AND ESTOPPEL

APPENDIX W FORM OF MONTHLY REPORT

APPENDIX X SHORTFALL ENERGY EXAMPLES

88 of 489

SCHEDULE
SCHEDULE 12.2(h) SPECIFIED UPSTREAM EQUITY OWNERS AND

ORGANIZATIONAL AND OWNERSHIP STRUCTURE OF SELLER

AND UPSTREAM EQUITY OWNERS

89 of 489

POWER PURCHASE AGREEMENT

PARTIES
THIS POWER PUR CHASE AGREEMENT ( “Agreement”), dated as of April 16, 2026 (the “Effect ive Date”), is being entered into by and between the Southern California Public Power Authority, a public entity and joint powers authority formed and organized pursuant to the California Joint Exercise of Powers Act (California Government Code Section 6500, et seq.) (“Buyer”), and Notch Peak Project, LLC, a limited liability company organized and existing under the laws of the State of Delaware (“Seller”). Each of Buyer and Seller is referred to individually under this Agreement as a “Pa rty” and together they are referred to as th e “Parties.”

RECITALS
WHEREAS, Buyer’s Members have adopted or are adopting policies to comply with the California Renewable Energy Resources Act that are designed to increase the amou nt of energy that they provide to their retail customers from eligible renewable energy resources; WHEREAS, on February 14, 2025, Buyer issued a request for proposals to acquire renewable energy resources;
WHEREAS, on May 2, 2025, Seller’s indirect parent, Longroad Development Company, LLC, responded on behalf of Seller to Buyer’s request for proposals and, following negotiation, Seller has agreed to sell to Buyer, and Buyer has agreed to purchase, from a photovoltaic solar powered electric generating facility as furth er described herein, cer tain renewable ener gy, capacity and associated environmental attributes; and
WHEREAS, the Parties desire to set forth the terms and conditions pursuant to which such sales and purchases shall be made.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein, and the mutual covenants and agreements herein set forth , th e Parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION
Section 1.1 Definitions. The following capitalized terms in this Agreement and the appendices hereto shall have the following meanings:
“Acceptable Form of Performance Assurance” means, a letter of credit substantially in the form of Appendix M from a Qualified Issuer.
“AC” and “ac” mean alternating current.
“Access Failure” has the meaning set forth in Section 7.3(c). 90 of 489

2 “Act” means all of the provisions contained in the California Joint Exercise of Powers Act found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, beginning at California Government Code Section 6500 et seq. “Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by or is under common control with such Person or is a director or officer of such Person or of an Affiliate of such Person. As used in this Agreement, “control” shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management, policies or activities of a Person, whether through ownership or voting securities, by contract or otherwise.
“Agreement” has the meaning set forth in the preamble to this Agreement, and includes Appendixes A through X and Schedule 12.2(h) attached hereto. “Agreement Term” has the meaning set forth in Section 2.3. “Ancillary Documents” means any agreement, instrument, certificate or other document required to be executed and delivered by any Seller Party in connection with this Agreement, including the Option Agreement, any Shared Facilities Agreement, and the Interconnection Agreement.
“Annual Shortfall Liquidated Damages” has the meaning set forth in Section 9.3. “Approvals” means each Participating Member’s approval, by way of such Participating Member’s required board and city council approvals (each to the extent applicable) associated with this Agreement , and the related executions of each of the respective Participating Member Agreements.
“Approvals Date” means the date on which all required Approvals have been obtained and written notice thereof is delivered by Buyer to Seller. “Approvals Deadline” means the date that is eight (8) months after the Effective Date (as may be extended by the Parties’ mutual agreement in writing). “ASME” means American Society of Mechanical Engineers and any successor thereto. “Assumed Daily Deliveries” has the meaning set forth in Section 13.3(c). “ASTM” means American Society for Testing and Materials. “Attaining Balancing Authority” means LADWP in its capacity as Balancing Authority. “Attaining Balancing Authority Area” means the Balancing Authority Area of LADWP. “Authorized Auditors ” means representatives of Buyer or Buyer’s Authorized Representatives who are authorized to conduct audits on behalf of Buyer. 91 of 489

3 “Authorized Representative” means, with respect to each Party, the Person designated as such Party’s authorized representative pursuant to Section 14.1. “AWS” means American Welding Society.
“Balancing Authority” means the responsible entity that integrates resource plans ahead of time, maintains load -interchange-generation balance within a Balancing Authority Area, and supports interconnection frequency in real time.
“Balancing Authority Area” means the collection of generation, transmission, and loads within the metered boundaries of the area in which the Balancing Authority maintains load- resource balance.
“Bankrupt” and “ Bankruptcy” means any case, action or proceeding under any bankruptcy, reorganization, debt arrangement, insolvency or receivership law or any dissolution or liquidation proceeding commenced by or against a Person and, if such case, action or proceeding is not comme nced by such Person, such case, action, or proceeding shall be consented to or acquiesced in by such Person or shall result in an order for relief, or shall remain undismissed for sixty (60) days.
“Brown Act” has the meaning set forth in Section 14.19(e). “Budget” has the meaning set forth in Section 4.7.
“Business Day ” means any day that is not a Saturday, a Sunday, or a day on which commercial banks are authorized or required to be closed in Los Angeles, California or New York, New York.
“Buyer” has the meaning set forth in the preamble to this Agreement. “Buyer Check Meters” has the meaning set forth in Section 7.3(g). “Buyer’s Agent” means such Person as Buyer may designate from time to time to perform certain tasks acting as an agent on Buyer’s behalf, including LADWP. “Buyer’s Members” means any member of Buyer that has entered into the Joint Powers Agreement.
“CAMD” means the Clean Air Markets Division of the EPA, any successor agency and any other state, regional or federal or intergovernmental entity that is given authorization or jurisdiction or both over a program involving the registration, validation, certific ation or transferability of Environmental Attributes.
“CAP” has the meaning set forth in Appendix S.
“Capacity Rights ” means the rights, whether in existence as of the Effective Date or arising thereafter during the Agreement Term, to capacity, associated attributes or reserves, services, Resource Adequacy Attributes and all ancillary products or any of the foregoing as may 92 of 489

4 in the future be defined by any balancing authority, reliability entity or Governmental Authority associated with the electric generating capability of the Facility, including, if applicable any local capacity requirements and the right to resell such rights. “CEC” means California’s State Energy Resources Conservation and Development Commission, also known as the California Energy Commission. “CEC Certified” means that the CEC has certified that the Facility is an eligible renewable energy resource in accordance with the RPS Law.
“CEC Compliant” means, when used with respect to the Facility or any other facility at any time, that the Facility or such other facility is CEC Certified and in compliance with the CEC Performance Standard, the RPS Law, or any other applicable CEC requirements ( including the then-applicable “Long Term Agreement” requirements) to which it is subject. “CEC Performance Standard ” means, at any time, the applicable greenhouse gas emissions performance standard in effect at such time for baseload generation facilities that are owned or operated (or both) by local publicly- owned electric utilities, or for which a local publicly-owned electric utility has entered into a contractual agreement for the purchase of power and services from such facilities, as established by the CEC or other Governmental Authority having jurisdiction over Buyer.
“Certification Eligibility Date” means the RPS eligibility date specified in the certificate issued by the CEC approving Seller’s CEC certification application. “Change in Control” means the occurrence of a transaction or a series of transactions at any time during the Agreement Term , whether voluntary or by operation of law or otherwise, following which (i) the Ultimate Upstream Equity Owner directly or indirectly no longer owns fifty percent (50%) or more of the equity ownership interests of Seller or (ii) the Ultimate Upstream Equity Owner directly or indirectly no longer retains both the power to manage the day-to-day operations of Seller and the control of the management and policies of Seller; provided, however, that a Change in Control shall not include any (a) transaction or series of transactions in which the membership interests or other equity interests in Seller or any Upstream Equity Owner are issued or transferred to another Person solely for the purpose of a Tax Financing or (b) any transfer of membership interests in Seller or any Upstream Equity Owner in connection with the exercise of a Facility Lender’s remedies pursuant to any Financing Agreement; provided that such transferee is a Qualified Transferee. Seller shall provide written notice to Buyer prior to the occurrence of any Change in Control in accordance with Section 12.5(a) and Section 14.6. “Change in Law” means a change in any federal, state, local or other law (including any environmental laws, RPS Law or EPS Law), resolution, standard, code, rule, ordinance, directive, regulation, order, judgment, decree, ruling, determination, permitting conditions, ce rtification conditions, authorization, approval of a Governmental Authority or WREGIS, including the adoption of any new law, resolution, standard, code, rule, ordinance, directive, regulation, order, judgment, decree, ruling, determination, permit, certif icate, authorization, or approval, or the issuance of any replacement or substitute law, resolution, standard, code, rule, ordinance, directive, regulation, order, judgment, decree, ruling, determination, permit, certificate, authorization, or 93 of 489

5 approval, in any case which is binding on a Party, the Parties, or the Facility or any of the products sold therefrom.
“Closing” has the meaning set forth in Section 2.6 of the Option Agreement. “Code” means the Internal Revenue Code of 1986, as amended. “Commercial Operation ” means, with respect to the Facility, that (i) Seller has demonstrated, and the Independent Engineer has confirmed in writing, that the conditions set forth in the Independent Engineer certificate attached to Appendix N have been met with respect to the Facility, and (ii) Seller has demonstrated, to the reasonable satisfaction of Buyer, that any conditions not certified to by the Independent Engineer on Appendix N have been met with respect to the Facility, and in the case of both (i) and (ii), the certificates associated therewith have been (a) accepted by Buyer and Buyer has provided notice of such acceptance to Seller confirming the Commercial Operation Date, or (b) deemed accepted by Buyer in accordance with Section 3.4. “Commercial Operation Date” means, with respect to the Facility, the date on which Commercial Operation of the Facility shall have occurred. “Compensable Curtailments” has the meaning set forth in Section 7.5(a). “Compliance Expenditure Cap” has the meaning set forth in Section 8.7(a). “Compliant” has the meaning set forth in Section 8.6.
“Confidential Information” has the meaning set forth in Section 14.19(a). “Consent and Agreement ” has the meaning set forth in Section 13.4 and shall be substantially in the form attached as Appendix O.
“Construction Commencement Milestone” means the date upon which Seller demonstrates to the reasonable satisfaction of Buyer’s Authorized Representative that (i) Seller’s EPC Contractor has commenced installation and construction of the Facility pursuant to Seller’s issuance of the NTP, (ii) all permits listed in Appendix K have been obtained, are final and are in full force and effect and (iii) Seller has provided confirmation, including supporting documentation, that Seller has Site Control.
“Contract Capacity” means 324 MW (ac), as measured at the Point of Delivery, which is the maximum in any one hour that Buyer is obligated to accept from the Facility under this Agreement.
“Contract Price(s)” means each of the applicable prices set forth in Appendix A. “Contract Year” means (i) the Initial Stub Year; (ii) each of the following twenty- nine (29) calendar years, beginning on the first day of January following the end of the Initial Stub Year and each succeeding twelve- month period up to and including the period ending wi th the December 31 of such twenty-nineth (29th) calendar year; and (iii) the Final Stub Year. 94 of 489

6 “Costs” has the meaning set forth in Section 13.3(f)(iii). “Cover Damages” has the meaning set forth in Section 6.4. “CPRA” has the meaning set forth in Section 14.19(e).
“CRO” has the meaning set forth in Section 14.24(h).
“CT” means current transformer.
“Daily Delay Damages” means a daily amount of damages equal to One Hundred Eighty Thousand Dollars ($180,000.00).
“Day-Ahead Schedule” has the meaning set forth in Section 7.2(e). “DBE” has the meaning set forth in Section 14.24(c).
“DCS” has the meaning set forth in Appendix P.
“Deemed Delivered Energy” has the meaning set forth in Section 7.5(c). “Default” has the meaning set forth in Section 13.1.
“Defaulting Party” has the meaning set forth in Section 13.1. “Delivered Energy” means, for any period, the MWh of Energy delivered from the Facility to the Point of Delivery, as measured by the Project Meter and adjusted for the Transmission Line Loss Factor. For the avoidance of doubt, Delivered Energy shall be calculated as the product of (i) the MWh of Energy measured by the Project Meter for the applicable period, multiplied by (ii) the difference between (a) one (1) minus, (b) the Transmission Line Loss Factor (stated as a decimal equivalent).
“Delivery Term” has the meaning set forth in Section 2.3. “Development Security” has the meaning set forth in Section 5.6(a). “Disposition” has the meaning set forth in Section 14.21. “Dispute” has the meaning set forth in Section 14.3(a). “Dispute Notice” has the meaning set forth in Section 14.3(a). “DNP” has the meaning set forth in Section 7.3(d).
“Downgrade Event” means, with respect to a financial institution, or a provider of a letter of credit hereunder, (i) the failure of such financial institution to maintain the credit rating or organizational status of a Qualified Issuer, or (ii) the commencement by such a financial institution of involuntary or voluntary bankruptcy, insolvency, reorganization, arrangement, composition, 95 of 489

7 readjustment, liquidation, dissolution or similar proceeding (whether under any present or future statute, law or regulation), or (iii) the termination of the relationship with such financial institution or provider of such letter of credit by Buyer or a P articipating Member, as applicable, required pursuant to any Requirements of Law applicable to Buyer or such Participating Member. “DVBE” has the meaning set forth in Section 14.24(c).
“Early Termination Date” has the meaning set forth in Section 13.3(a). “EBO” has the meaning set forth in Section 14.24(g).
“EC Adder Payment” has the meaning set forth in Appendix A. “EC Adder Payment Period” has the meaning set forth in Appendix A. “ECC” has the meaning set forth in Section 11.6(b).
“Economic Sanctions” has the meaning set forth in Section 14.24(m). “EDAM” means CAISO’s Extended Day-Ahead Market, or any successor market. “Effective Date” has the meaning set forth in the Preamble. “EIM” means CAISO’s western Energy Imbalance Market, or any successor market. “EIM Compliance Cost Cap” has the meaning set forth in Section 8.7(d). “EIM Excess Compliance Cost” has the meaning set forth in Section 8.7(d). “EIM Excess Expenditure Notice” has the meaning set forth in Section 8.7(d). “Electric Metering Device(s) ” means meters, metering equipment, and data processing equipment conforming to the requirements set forth in Section 11.6 used to measure, record, or transmit data relating to the Energy output from the Facility as depicted in Appendix R-1. Electric Metering Devices include the metering current transformers and the metering voltage transformers.
“Emergency Stop” has the meaning set forth in Appendix P. “Energy” means electrical energy.
“Energy Community Adder” means the energy community bonus credit under Sections 45, 48, 45Y and 48E of the Code.
“Energy Information Assessments” means Annual Electric Power Industry Report (Form EIA-861) administered by U.S. Energy Information Administration. 96 of 489

8 “Environmental Attribute Reporting Rights ” means all rights to report the ownership of the Environmental Attributes to any Person including under Section 1605(b) of the Energy Policy Act of 1992, or any other current or future international, federal, state or local law, regulation or bill, or otherwise.
“Environmental Attributes” means Renewable Energy Certificates, and any and all other current or future credits, benefits, emissions reductions, offsets or allowances, howsoever entitled, named, registered, created, measured, allocated or validated (i) that are at any time recognized or deemed of value (or both) by either Party, applicable laws, or any voluntary or mandatory program of any Governmental Authority or other Person, and (ii) that are attributable to (a) generation capability or generation by the Facility of Facility Energy or Replacement Energy delivered by Seller to Buyer, and (b) the emissions or other environmental characteristics of such Facility Energy or such Replacement Energy or its displacement of conventional or other types of Energy generation. Environmental Attributes include any of the aforementioned arising out of legislation or regulation concerned with oxides of nitrogen, sulfur, carbon, or any other greenhouse gas or chemical compound, particulate matter, soot, or mercury, or im plementing the United Nations Framework Convention on Climate Change (the “ UNFCCC”), the Kyoto Protocol to the UNFCCC, California’s greenhouse gas legislation (including California Assembly Bill 32 (Global Warming Solutions Act of 2006) and any regulations implemented pursuant to the Global Warming Solutions Act of 2006, including any compliance instruments accepted under the California Cap on Greenhouse Gas Emissions and Market -Based Compliance Mechanisms regulations of the California Air Resources Board), or any similar international, federal, state or local program or crediting “early action” with a view thereto, or laws or regulations involving or administered by the CAMD, and all Environmental A ttribute Reporting Rights, including all evidences (if any) thereof such as Renewable Energy Certificates of any kind. Environmental Attributes for purposes of this definition are separate from the Facility Energy. Environmental Attributes exclude (A) any local, state or federal investment tax credits, production tax credits, depreciation deductions or other tax credits providing a tax benefit to Seller or any other Person based on ownership or a security interest in the Facility or Facility Energy, including any investment or production tax credit expected to be available to Seller with respect to the Facility, (B) any other depreciation deductions and benefits, and other tax benefits arising from ownership or operation of the Facility, and (C) cash grants or other financial incentives from any local, state or federal government available to Seller with respect to the Facility. “Environmental Documents” has the meaning set forth in Section 3.1. “Environmental Laws” means any federal, state or local laws (including common law), statutes, ordinances, rules, regulations, binding orders, injunctions or judgments pertaining to public health, safety, pollution, or the presence of or release of Hazardous Materials on, under or about the Real Property.
“EPA” means the United States Environmental Protection Agency. “EPC Contractor” has the meaning set forth in the definition of NTP. “EPS Compliant” means, when used with respect to the Facility or any other facility at any time, that the Facility or such other facility, as applicable, satisfies both the PUC Performance 97 of 489

9 Standard and the CEC Performance Standard in effect at the time; provided, if it is impossible for the Facility or such other facility, as applicable, to satisfy both the PUC Performance Standard and the CEC Performance Standard in effect at any time, the Facility or such other facility, as applicable, shall be deemed EPS Compliant if it satisfies the CEC Performance Standard in effect at the time and those portions of the PUC Performance Standard in effect at the time that it is possible for the Facility o r such other facility, as applicable, to satisfy, while at the same time satisfying the CEC Performance Standard in effect at the time. “EPS Law” means Sections 8340 and 8341 of the California Public Utilities Code. “Excess Compliance Cost” has the meaning set forth in Section 8.7(a). “Excess Energy ” means, as applicable, either Excess Energy 110% -120% and Excess Energy > 120% or both Excess Energy 110%-120% and Excess Energy >120%. “Excess Energy 110%- 120%” means, for any Contract Year, the portion of Delivered Energy as increased by the amount of any Deemed Delivered Energy that is in excess of one hundred ten percent (110%) of the Expected Annual Generation for such Contract Year and no more than one hundr ed twenty percent (120%) of the Expected Annual Generation for such Contract Year.
“Excess Energy >120%” means, for any Contract Year, the portion of Delivered Energy, as increased by the amount of any Deemed Delivered Energy that is in excess of one hundred twenty percent (120%) of the Expected Annual Generation for such Contract Year. “Excess Energy Price” means, with respect to Excess Energy 110- 120%, the price per MWh set forth for such Excess Energy in Appendix A and, with respect to Excess Energy >120%, the price per MWh set forth for such Excess Energy in Appendix A. “Excess Expenditure Notice” has the meaning set forth in Section 8.7(a). “Expected Annual Generation” has the meaning set forth in Appendix I. “Facility” means the solar photovoltaic electric generating facility to be developed, constructed, owned and operated by Seller (as further described on Appendix B) that will be located on the Facility Site, including the real property that constitutes the Facility Site, the structures, facilities, equipment, fixtures, appurtenances, improvements and associated real and personal property as further described in the Real Property Agreements, the Seller-owned portion of the generation tie -line and related structures, facilities, equipment, fixtures, appurtenances, improvements and associated real and personal property described in the Interconnection Agreement that facilitates delivery of the energy from the solar photovoltaic electric generating facility to the Point of Delivery , and other physical and intangible property, and other rights and interests as further described in Appendix B and as depicted in Appendix R-1. “Facility Assets” has the meaning set forth in Exhibit 1.1 of the Option Agreement. 98 of 489

10 “Facility Cost” means, measured as of the applicable measurement date, the aggregate amount of all costs and expenses incurred by Seller for the development, design, engineering, equipping, procuring, constructing, installing, starting up and testing the Facility, including (i) the cost of all labor, services, materials, supplies, equipment, tools, transportation, supervision, storage, training, demolition, site preparation, civil works, and remediation in connection therewith, (ii) the cost of acquiring the leasehold interest and any other property, easement or other interest in the Site, (iii) the cost of acquiring the Permits for the Facility and (iv) the cost of establishing a spare parts inventory for the Facility.
“Facility Debt” means, measured as of the applicable measurement date, any payment obligations of Seller in connection with borrowed money, including (i) principal of and premium on indebtedness, (ii) fees, charges, expenses and penalties related to indebtedness to the extent then due and payable, (iii) swap or interest rate hedging breakage costs to the extent then due and payable and (iv) any claims or interest due with respect to any of the foregoing. Facility Debt does not include any Tax Financing or the indebtedness of any Seller Affiliate for which Seller has no liability.
“Facility Energy” means Energy generated by the Facility and measured by the Project Meter.
“Facility Lender” means any lender(s) providing senior or subordinated construction, interim or long-term debt (including all back -leverage debt) or tax equity financing or tax credit transfer financing or refinancing for or in connection with the development, construction, purchase, installation or operation of the Facility, including any Tax Financing or Sale Leaseback Financing or refinancing, and any Person providing interest rate protection agreements to hedge any of the foregoing debt obligations.
“Facility Site” means the real property (including all fixtures and appurtenances thereto) and related physical and intangible property generally identified in Appendix B (as may be modified in accordance with any termination, transfer or addition of any Real Property Agreements pursuant to Section 12.4(b) and Section 12.4(d)) as (i) owned or leased by Seller where the Facility is located or will be located, and (ii) any easements, rights of way or other contractual or real property rights held or to be held by Seller, for distribution or transmission lines, interconnection facilities, or roadways servicing such Facility Site or the Facility located (or to be located) thereon. “FERC” means the Federal Energy Regulatory Commission.
“Final Stub Year” means the period beginning on the first day of January following the twenty-nineth (29th) full calendar year referenced in clause (ii) of the definition of “Contract Year” and ending at 24:00 hours on the date that, together with the number of days in the Initial Stub Year, would be equal to three hundred sixty five (365) days. “Financing Agreement ” shall mean any credit agreement, loan agreement or similar agreement, to be executed between Seller and a Facility Lender. “Force Majeure” has the meaning set forth in Section 14.5(b). 99 of 489

11 “Force Majeure Notice” has the meaning set forth in Section 14.5(a). “Forced Outage” means the removal of service availability of the Facility, or any portion of the Facility, for emergency reasons or conditions in which the Facility, or any portion thereof, is unavailable due to unanticipated failure, including as a result of Force Majeure. “Forced Outage Capacity Notification” has the meaning set forth in Section 7.4(d). “Full Contract Price” has the meaning set forth in Appendix A. “GAAP” means generally accepted accounting principles set forth in opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting profession, in each case as the same are applicable to the circumstances as of the date of determination.
“Gains” has the meaning set forth in Section 13.3(f)(i). “Glendale” means the City of Glendale in the County of Los Angeles in the State of California.
“Governmental Authority” means any federal, state, regional, city or local government, any intergovernmental association or political subdivision thereof, or other governmental, regulatory or administrative agency, court, commission, administration, department, board, or other governmental subdivision, legislature, rulemaking board, tribunal, or other governmental authority, or any Person acting as a delegate or agent of any Governmental Authority. The term “Governmental Authority” shall not include Buyer.
“Green Value” consists of the market value of (i) avoided greenhouse gas emissions or credits associated with RPS Compliant Energy, and (ii) all other Environmental Attributes, without duplication, and avoided emissions-related attributes and benefits that would otherwise have been realized had Seller generated the Facility Energy, and shall be calculated as an amount equal to the time-weighted average of the prices of greenhouse gases and other Environmental Attributes (as published in commercial indices r elated to California energy markets) that would have been realized for each MWh of the Shortfall Energy or RPS Compliance Shortfall Energy, as applicable, provided, that if for any Contract Year there does not exist a liquid trading market that is mutually agreeable to the Parties to determine such Green Value, the Green Value will be equal to the lesser of the replacement cost as reasonably determined by Buyer, but taking into account sources identified by Seller for the attributes described in clauses (i) and (ii) above, expressed in $/MWh, or $25/MWh.
“Guaranteed Commercial Operation Date” or “GCOD ” means December 31, 2028 as it may be extended pursuant to the terms of this Agreement. “Guaranteed Delivered Energy ” means the aggregate amount of Delivered Energy guaranteed by Seller during each Contract Year (including the Initial Stub Year and the Final Stub 100 of 489

12 Year) to Buyer, which shall be 80% of the Expected Annual Generation of the applicable Contract Year.
“Guidebook” means the most-recent Renewables Portfolio Standard Eligibility guidebook issued by the CEC, as amended from time to time, or its successor document. “Hazardous Materials ” means any hazardous substances, pollutants, contaminants, wastes, or materials (including petroleum (including crude oil or any fraction thereof), petroleum wastes, radioactive materials, hazardous wastes, toxic substances, or asbestos or any materials containing asbestos) designated, regulated, or defined under any Environmental Law. “ICCP” has the meaning set forth in Section 11.6(b).
“ICE” has the meaning set forth in the definition of “Market Price Index”. “IEC” has the meaning set forth in Appendix P.
“IEEE” means Institute of Electrical and Electronics Engineers. “Indemnified Liabilities” has the meaning set forth in Section 14.17(a). “Indemnitees” has the meaning set forth in Section 14.17(a). “Independent Engineer” means an engineer to be jointly selected by the Parties. “Independent Manager” means a manager who is not at the time of initial appointment, or at any time while serving as Independent Manager, and has not been at any time during the preceding five (5) years: (i) a member, stockholder, equityholder, director, manager (except as the Independent Manager of Seller), officer, employee, partner, attorney or counsel of Seller, any member of Seller, or any Affiliate of Seller; (ii) a customer, supplier or other Person who derives any of its purchases or revenues from i ts activities with Seller, any member of Seller, or any Affiliate of Seller (other than for serving as Independent Manager of Seller), (iii) a Person controlling or under common control with any such stockholder, equityholder, partner, manager, customer, supplier or other like Person, or (iv) a member of the immediate family of any such member, stockholder, equityholder, director, officer, employee, manager, partner, customer, supplier or other like Person.
“Initial Stub Year” means the period beginning on the Commercial Operation Date and ending at 23:59:59 hours on December 31 in the year during which the Commercial Operation Date occurs.
“Insurance” means the policies of insurance as set forth in Appendix F. “Interconnection Agreement” means that certain Generator Interconnection Agreement, dated as of December 20, 2022, between Seller (f/k/a Notch Peak Solar, LLC) and Intermountain Power Agency.
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13 “Interest Rate” means the lesser of (i) two hundred (200) basis points above the per annum “Prime Rate” reported daily in The Wall Street Journal , or (ii) the maximum rate permitted by applicable Requirements of Law.
“International Trade Laws ” shall mean all laws, regulations, and orders relating to imports as administered by U.S. Customs and Border Protection, and any other applicable customs and imports laws; exports and trade sanctions pursuant to the International Traffic in Arms Regulations administered by the U.S. Department of State’s Directorate of Defense Trade Controls, the Export Administration Regulations administered by the U.S. Department of Commerce’s Bureau of Industry and Security, and the U.S. Departme nt of the Treasury’s Office of Foreign Assets Control, and any other applicable exports and trade sanctions laws (including any laws or executive orders issued in the State of California); antiboycott matters administered by the U.S. Department of Commerce’s Office of Antiboycott Controls and the U.S. Department of the Treasury’s Internal Revenue Service, and any other applicable anti -boycott laws; anti - bribery and anti-corruption matters governed by the Foreign Corrupt Practices Act as enforced by the U.S. Department of Justice and the U.S. Securities and Exchange Commission, the UK Bribery Act, and any other applicable anti-bribery and anti-corruption laws; anti-money laundering matters pursuant primarily, but not exclusively, to the Money Laundering Contr ol Act and the Bank Secrecy Act, and any other applicable; and any other applicable laws, regulations, and orders related to these areas.
“Investment-Grade Credit Rating” means a credit rating for a Person’s long- term debt that is at least “BBB-” by S&P or “Baa3” by Moody’s, or the equivalent ratings by any other credit rating agency of national standing, and so long as such credit rating is not on negative watch. “IPA Switchyard” has the meaning set forth in the Interconnection Agreement as of the Effective Date.
“ISA” means Instrument Society of America.
“ITC” means the elective investment tax credit provided in Section 46, and 48 or 48E of the Code or any successor to such section.
“Joint Powers Agreement” means the “Southern California Public Power Authority Joint Powers Agreement” entered into pursuant to the provisions of the Act among Buyer and Buyer’s members, dated as of November 1, 1980.
“Key Milestone ” means the Commercial Operation Date , as further described in Appendix B.
“Knowledge” means the actual knowledge, after due inquiry, of any officer or any other agent, employee or representative of Seller responsible for the management of the operation or maintenance of the Facility or any fact, circumstance or condition. “kW” means kilowatt or kilowatts, as applicable.
“LAAC” has the meaning set forth in Section 14.24(b)(i). 102 of 489

14 “LADWP” means the City of Los Angeles acting by and through the Department of Water and Power, a California municipal corporation.
“Legal Opinion” means an executed original of a written legal opinion of Morgan Lewis Bockius LLP, counsel for Seller, or other outside counsel of Seller reasonably acceptable to Buyer, addressed to Buyer and in form and substance reasonably acceptable to Buyer, concerning, among others, the enforceability and due authorization of this Agreement, and the other Ancillary Documents that are agreements between the Parties, dated as of the date such opinion is delivered in accordance with Section 2.1.
“Lessor” has the meaning set forth in the definition of “Sale Leaseback Financing.” “LGBTBE” has the meaning set forth in Section 14.24(c). “Lien” means any mortgage, deed of trust, lien, security interest, retention of title or lease for security purposes, pledge, charge, encumbrance, equity, attachment, claim, easement, right of way, covenant, condition or restriction, leasehold interest, purchase right or other right of any kind, including an option, of any other Person in or with respect to any real or personal property. “Losses” has the meaning set forth in Section 13.3(f)(ii). “LVRT” has the meaning set forth in Appendix P.
“Major Maintenance Blockout” has the meaning set forth in Section 7.4(b). “Major Subcontractors” has the meaning set forth in Section 11.5. “Market Price Index ” means the weighted average of the “on -peak” Energy (not including Environmental Attributes) prices (i) for purposes of calculating Shortfall Liquidated Damages, for each day within the year the shortfall energy occurred and (ii) for purposes of calculating the Replacement Price, for each day within any applicable period in which the Facility is not Compliant, each as published by the Intercontinental Exchange (“ICE”) for transactions at Palo Verde ICE index plus $6.00 (Mona Premium) exc luding Environmental Attributes. If there are no longer on-peak market prices for Energy (excluding Environmental Attributes) transactions at Palo Verde published by ICE, the Parties will mutually agree to a replacement market price index that most closely reflects Energy (excluding Environmental Attributes) transactions at the geographic location of the markets at the Point of Delivery or Palo Verde markets as of the Effective Date. If a market price index for Energy (not including Environmental Attributes ) that more accurately tracks the prevailing market price of the Delivered Energy at the Point of Delivery is created, the Parties may mutually agree to adapt such index price as the Market Price Index at such time.

“Material Adverse Effect ” means any effect(s) that, individually or in the aggregate, is material and adverse to (i) the assets, construction, operations, use or physical condition of the Facility (including any Shared Facilities, as defined in the Shared Facilities Agreement), taken as a whole, or (ii) the ability of Seller to perform its obligations under this Agreement or any Ancillary Document, taken as a whole.
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15 “MBE” has the meaning set forth in Section 14.24(c). “Metering Policies” means the then-current metering policies and guidelines adopted by LADWP, including the LADWP Bulk Electric System Meter Policy, the current version of which is attached as Appendix U, and any successor thereto.
“Milestone” has the meaning set forth in Section 3.3(a). “Milestone Date” means the deadline associated with each Milestone as set forth in Appendix B, as each may be extended pursuant to the terms of this Agreement. “Monthly Payment” means the amount to be paid to Seller by Buyer on a monthly basis as specified in Appendix A.
“Moody’s” means Moody’s Investment Services, Inc., and its successors in interest. “MW” means megawatt or megawatts, as applicable.
“MWh” means megawatt-hour or megawatt-hours, as applicable. “NERC” means the North American Electric Reliability Corporation. “NERC Reliability Standards” means the reliability standards developed by NERC or by any regional authority having jurisdiction, that are applicable to the owner or operator of the Facility, or to the Facility itself, including Security Requirements. “New Resource Implementation” means the process and requirements established by the Balancing Authority for the Attaining Balancing Authority Area substantially similar in kind and cost to those as set forth by CAISO for interconnection projects to successfully complete resource implementation to the CAISO grid.
“Non-Compensable Curtailments” has the meaning set forth in Section 7.5(a). “Non-Consolidation Opinion” means a reasoned opinion of Morgan Lewis Bockius LLP, in form and substance reasonably acceptable to Buyer, as to the non- consolidation of Seller in a bankruptcy proceeding of any member of Seller, addressed and delivered to Buyer in accordance with Section 2.2(b).
“Non-Defaulting Party” has the meaning set forth in Section 13.3(a). “Non-U.S. Issuer Bank” means any issuer of a letter of credit that is organized under laws outside of the United States.
“Normal Shutdown” has the meaning set forth in Appendix P. “Normal Startup” has the meaning set forth in Appendix P. “Notice of Proposed Third Party Sale” has the meaning set forth in Section 14.21(b). 104 of 489

16 “Notifying Party” has the meaning set forth in Section 14.3(a). “NTP” means a full notice to proceed issued by Seller to its general contractor (the “EPC Contractor”) for the commencement of installation and construction of the Facility pursuant to which such general contractor is obligated to commence the installation and construction of the Facility.
“OBE” has the meaning set forth in Section 14.24(d).
“Off-Peak” means all hours other than On-Peak hours.
“On-Peak” means 6:00 a.m. – 10:00 p.m., Monday through Saturday. “Operating Insurance ” means the Insurance required to be carried by Seller for the Facility after the achievement of Commercial Operation, as set forth in Appendix F. “Operation and Maintenance Plan” has the meaning set forth in Section 4.6(a). “Option Agreement” means that certain Option Agreement of even date herewith attached as Appendix L.
“OSHA” means Occupational Safety & Health Administration. “Outside COD” has the meaning set forth in Section 3.3(e). “Pacific Prevailing Time ” means the time in Los Angeles, California when actual transactions are made.
“Participating Member” means each of Glendale and LADWP. “Participating Member Agreement” means the agreement(s) between Buyer and each Participating Member that sets forth the terms and conditions under which each Participating Member agrees to purchase from Buyer the Capacity Rights, Facility Energy and Environmental Attributes from the Facility.
“Party” and “Parties” have the meanings set forth in the preamble to this Agreement. “Performance Security” has the meaning set forth in Section 5.6(b). “Permit” means all applications, permits, licenses, franchises, certificates, concessions, consents, authorizations, approvals, registrations, orders, filings, entitlements and similar requirements of whatever kind and however described which are required to be obtained or maintained by any Person with respect to the development, siting, design, acquisition, construction, equipping, financing, ownership, possession, shakedown, start-up, testing, operation or maintenance of the Facility, the production and delivery to the Point of Delivery of Energy, Capacity Rights and Environmental Attributes, or any other transactions or matter contemplated by this Agreement (including those pertaining to electrical, building, zoning, environmental and occupational safety and health requirements), including those described in Appendix K. 105 of 489

17 “Permitted Encumbrances” means (i) any Lien approved by Buyer in a writing separate from this Agreement which expressly identifies the Lien as a Permitted Encumbrance, (ii) Liens in favor of Facility Lenders, (iii) Liens for Taxes not yet due or for taxes being contested in good faith by appropriate proceedings, so long as such proceedings do not involve (a) a material risk of the sale, forfeiture, loss of the Facility or any part thereof, or (b) a restriction on the use of the Facility or any part thereof, provided that such proceedings end by the expiration of the Agreement Term, (iv) suppliers’, vendors’, mechanics’, workman’s, repairman’s, employees’ or other like Liens arising in the ordinary course of business for work or service performed or materials furnished in connection with the Facility for amounts the payment of which is either not yet delinquent, bonded or is being contested in good faith by appropriate proceedings, so long as such proceedings will have ended by the expiration of the Agreement Term and do not involve a material risk of the sale, forfeiture, loss of the Facility or any part thereof, (v) the Real Property Agreements, or memoranda of such Real Property Agreements; or (vi) easements, rights of way, use rights, exceptions, encroachments, reservations, restrictions, conditions or limitations, so long as they have been identified by Seller to Buyer in writing prior to the achievement of Commercial Operation and do not materially interfere with or impair the operation of the Facility as contemplated by this Agreement.
“Person” means any individual, corporation, partnership, joint venture, limited liability company, association, joint stock company, trust, unincorporated organization, entity, government or other political subdivision.
“Placed in Service” has the meaning set forth in Appendix A. “PMU” has the meaning set forth in Appendix S.
“Point of Delivery” means the Point of Interconnection. “Point of Interconnection ” means the point within the IPA Switchyard defined as the Point of Interconnection in the Interconnection Agreement as of the Effective Date. “PPT” has the meaning set forth in Section 7.2(e).
“Present Value Rate” means, at any date, the sum of 0.50% plus the yield reported on page “USD” of the Bloomberg Financial Markets Services Screen (or, if not available, any other nationally-recognized trading screen reporting on- line intraday trading in United States government securities) at 11:00 a.m. (New York City, New York time) for the United States government securities having a maturity that most nearly matches the remaining term of the Agreement at that date.
“Principals” means any board chair, president, chief executive officer, chief operating officer and any other individual who serves in the functional equivalent of one or more of those positions; as well as any individual who holds an ownership interest of at least t wenty percent (20%) in Seller or any Upstream Equity Owner that is itself owned directly or indirectly in whole or part by the Ultimate Upstream Equity Owner; and any employee of Seller who is authorized by Seller to represent Seller before any Participating Member. 106 of 489

18 “Production Tax Credits ” means the production tax credits applicable to electricity produced from certain renewable resources pursuant to (i) 26 U.S.C. §45, (ii) 26 U.S.C §45Y, or (iii) any successor to such sections.
“Project Meter” means the Electric Metering Devices procured, installed, owned and maintained by Seller at the high-side of the delivery transformer located in the Facility collector substation, as depicted and labeled in the single -line diagram attached to this Agreement as Appendix R-1.
“Project Purchase Option” means the right, but not the obligation, of Buyer, in its sole discretion, to purchase the Facility Assets and certain related assets from Seller in accordance with the provisions of the Option Agreement.
“Proposed Purchase Notice” has the meaning set forth in Section 14.21(a). “Proposed Sale Notice” has the meaning set forth in Section 14.21(a). “Prudent Utility Practices” means those practices, methods, and acts, that are applicable to the Facility and commonly used by a significant portion of the solar power generation industry, in prudent engineering and operations to design, construct and operate and maintain electric equipment (including solar powered facilities) lawfully and with safety, reliability, dependability, efficiency, and economy, including any applicable practices, methods, acts, guidelines, standards and criteria of FERC, NERC, WECC and all applicable Requirements of Law. “PT” means power transformer.
“PTC” means the Production Tax Credits.
“PUC” means the California Public Utilities Commission. “PUC Performance Standard ” means, at any time, the greenhouse gas emission performance standard in effect at such time for baseload electric generation facilities owned or operated (or both) by load- serving entities and not local publicly- owned electric utilities, as established by the PUC or other Governmental Authority under the EPS Law. “Purchase Option Exercise Notice” has the meaning set forth in Exhibit 1.1 of the Option Agreement.
“Q/A” has the meaning set forth in Appendix J.
“Q/C” has the meaning set forth in Appendix J.
“Qualified Issuer” means a domestic U.S. bank or a U.S. branch of a foreign bank (each such bank as approved by Buyer in writing, which approval shall not be unreasonably withheld, conditioned or delayed) that, in either case, has a then- current long-term credit rating (co rporate or long-term senior unsecured debt) of (i) “A2” or higher by Moody’s Investors Service, Inc. and “A” or higher by Standard & Poor’s, if rated by both rating agencies; or (ii) “A2” or higher by 107 of 489

19 Moody’s Investors Service, Inc. or “A” or higher by Standard & Poor’s, if rated by only one rating agency and, in addition to (i) or (ii), as applicable, (iii) has not suffered a Downgrade Event. “Qualified Operator ” means (a) an Affiliate of Seller, or (b) a Person reasonably acceptable to Buyer that, in either case, has at least three (3) years of operating experience with utility scale photovoltaic solar-powered generation facilities that are in excess of fifty (50) MW in capacity.
“Qualified Transferee” means a Person that:
(a) (i) has a net worth at the time of the transfer that is equal to or greater than $150,000,000, or who has a parent or an Affiliate with a net worth at the time of the transfer equal to or greater than $150,000,000,
(ii) (A) retains or causes the Subsequent Owner to retain, a Qualified Operator or Qualified Operators to operate the Facility (or otherwise agrees not to interfere with the existing Qualified Operator for the Facility) and (B) has, if the time of determinatio n is three (3) years or less following the Effective Date, two (2) years of experience owning, leasing, or managing electrical generation through renewable resources with at least two (2) projects of 25MW or higher, or if the time of determination is more than three (3) years following the Effective Date, has four (4) years of experience owning, leasing or managing electrical generation through renewable resources with at least two (2) projects of 50MW or higher, (iii) executes a written assumption agreement in favor of Buyer pursuant to which such Person shall assume all of the obligations of Seller under the PPA and the Ancillary Documents,
(iv) is a Special Purpose Entity, and
(v) is not at the time of transfer in active litigation against Buyer or a Participating Member, or
(b) is reasonably acceptable to Buyer.
“Quality” has the meaning set forth in Appendix J.
“Quality Assurance” has the meaning set forth in Appendix J. “Quality Assurance Program ” or “Q/A Program ” has the meaning set forth in Section 5.4.
“Quality Control” has the meaning set forth in Appendix J. “Rating Agency” means S&P or Moody’s.
“Real Property ” means the real property for the Facility Site (as may be modified in accordance with Section 12.4(b) and Section 12.4(d)), including the Seller -owned portion of the generation tie-line for the Facility.
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20 “Real Property Agreements ” means the real property agreements listed in Appendix H (as may be modified in accordance with Section 12.4(b) and Section 12.4(d)). “Recipient Party” has the meaning set forth in Section 14.3(a). “Rejection Notice” has the meaning set forth in Section 14.21(a). “Remaining Term” means, at any date, the remaining portion of the Agreement Term at that date without regard to any early termination of this Agreement. “Remedial Action Plan” has the meaning set forth in Section 3.3(c). “Renewable Energy Certificates ” means a certificate of proof associated with the generation of electricity from an RPS Compliant eligible renewable energy resource, which certificate is issued through the accounting system established by the CEC pursuant to the RPS Law, evidencing that one (1) MWh of Energy was generated and delivered from such eligible renewable energy resource. Such certificate is a tradable environmental commodity (also known as a “green tag” or “renewable energy credit”) for which the owner of the Renewable Energy Certificate can prove that it has purchased renewable Energy. “Replacement Energy” means Energy that is produced by a facility (or facilities) other than the Facility that, at the time delivered to Buyer, (a) is both RPS Compliant and, if applicable, EPS Compliant, and (b) qualifies under California Public Utilities Code Section 399.16(b)(1). “Replacement Price” has the meaning set forth in Section 8.7(b). “Requirements” means, collectively, Prudent Utility Practices, all applicable Requirements of Law, the Permits, Seller’s Quality Assurance Program, and any other requirements set forth in this Agreement.
“Requirements of Law” means federal, state and local laws, statutes, regulations, rules, codes or ordinances, resolutions, standards, guidebooks (including the Guidebook), directives, executive or other orders, judgement, decrees, ruling or determinations enacted, adopted, is sued or promulgated by any federal, state, local or other Governmental Authority (including those pertaining to electrical, building, zoning, Environmental Laws and occupational safety and health requirements), formal actions taken by a Governmental Authority (including any formal action taken by the city council of any Participating Member) and the International Trade Laws. “Resource Adequacy Attributes” means the benefits or attributes, if any, now or existing in the future based on the procurement obligations of Buyer with respect to resource adequacy as described by the PUC, the CEC, an applicable Balancing Authority (including but not limited to the CAISO or the Attaining Balancing Authority) or any other regional entity, and that are associated with the electric generating capability of the Facility. “RH” means range of humidity.
“Right of First Offer” or “ROFO” has the meaning set forth in Section 14.21. 109 of 489

21 “Right of First Refusal” or “ROFR” has the meaning set forth in Section 14.21. “RPS Compliance Period” means each “Compliance Period” as defined in the RPS Law. “RPS Compliance Shortfall Energy” means the difference between the aggregate amount of Delivered Energy delivered to Buyer during any RPS Compliance Period and the sum of the Guaranteed Delivered Energy for such RPS Compliance Period, less any Replacement Energy provided by Seller during such RPS Compliance Period.
“RPS Compliance Shortfall Liquidated Damages” has the meaning set forth in Section

9.3. “RPS Compliant” means, when used with respect to the Facility or any other facility at any time, that all Energy generated by the Facility or other facility, as applicable, at all times shall, together with all of the associated Environmental Attributes, qualify as a “p ortfolio content category 1” eligible renewable resource under the RPS Law and meet the requirements of Public Utilities Code Section 399.16(b)(1).
“RPS Law” means renewable energy programs and policies established and amended by California State Senate Bills 1078 (2002), X1- 2 (2011), 350 (2015) and 100 (2018) and codified in California Public Utilities Code Sections 399.11 through 399.31 and California Public Resources Code Sections 25740 through 25751, as such provisions are amended or supplemented from time to time, and all related policies, regulations and guidelines, including the Guidebook. “RPS Shortfall Penalty” has the meaning set forth in Section 9.3. “RTU” has the meaning set forth in Appendix P.
“S&P” means Standard & Poor’s Corporation, and its successors in interest. “Sale Leaseback Financing ” means a sale leaseback whereby the Facility or Seller’s interest in the Facility Site (which for purposes of this definition shall exclude any easements associated with the transmission line) is sold by Seller to one or more investors (each, a “Lessor”) and leased back by Seller and Seller retains a right of quiet enjoyment over the Facility Site (or the Facility, as applicable) during the lease term as long as Seller pays Lessor thereof rent and meets its other obligations under the lease; provided that a Sale Leaseback Financing shall comply with the provisions of Section 12.5.
“SBE” has the meaning set forth in Section 14.24(c).
“SCADA” has the meaning set forth in Section 7.2(a).
“Schedule” or “Scheduling ” means the actions of Seller and Buyer, Buyer’s Agent, or their Authorized Representatives, and the Transmission Providers, if applicable, of notifying, requesting and confirming to each other the quantity of Energy to be delivered at the Point of Delivery on any given date during the Delivery Term.
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22 “Scheduled Outage” means any outage with respect to the Facility other than a Forced Outage.
“Scheduled Outage Projection” has the meaning set forth in Section 7.4(c). “Scheduling Procedures” has the meaning set forth in Section 7.2(a). “Security Requirements” has the meaning set forth in Section 5.3(c). “Seller” has the meaning set forth in the preamble to this Agreement. “Seller Caused Access Failure” has the meaning set forth in Section 7.3(c). “Seller Parties ” means Seller and any Affiliates of Seller executing any Ancillary Documents now or hereafter in effect.
“Seller’s Check Meters” has the meaning set forth in Section 7.3(b)(i)(A). “Seller’s SCADA Integrated Components” has the meaning set forth in Section 7.3(a). “SFPO” has the meaning set forth in Section 14.24(i).
“Shared Facilities Agreement” means any agreement governing the use of certain shared facilities, the right to occupy or use shared real property, or the ownership or governance of the rights associated with either, in any case, entered into in accordance with Section 14.22. “Shortfall Energy” has the meaning set forth in Section 9.1(a). “Shortfall Liquidated Damages ” means, individually, Annual Shortfall Liquidated Damages or RPS Compliance Shortfall Liquidated Damages, as the context requires, and collectively, Annual Shortfall Liquidated Damages and RPS Compliance Shortfall Liquidated Damages.
“Shortfall Make Up Period” has the meaning set forth in Section 9.1(a). “Site Control ” means that Seller shall: (i) own the Facility Site; (ii) be the grantee or licensee of one or more easements with respect to the Facility Site, which, in each case, permit Seller to perform its obligations under this Agreement and, as applicable, the other Ancillary Documents; (iii) be the lessee under one or more leases with respect to the Facility Site which permit Seller to perform its obligations under this Agreement and the Ancillary Documents; or (iv) have otherwise provided evidence sa tisfactory to Buyer of Seller’s exclusive right to control the Facility Site so as to permit Seller to perform its obligations under this Agreement and the Ancillary Documents to which it is a party.
“Solar Panel Mechanical Completion ” has the meaning set forth in Appendix N-1, Appendix N-2, and Appendix N-3.
“Special Purpose Entity” means a limited liability company that at all times:
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23 (a) shall not (i) engage in any dissolution, liquidation or consolidation or merger with or into any other business entity, (ii) acquire by purchase or otherwise all or substantially all of the business or assets of or beneficial interest in any other entity, (iii) transfer, lease or sell, in one transaction or any combination of transactions, all or substantially all of its properties or assets except to the extent permitted herein, (iv) modify, amend or waive any provisions of its organizational documents rel ated to its status as a Special Purpose Entity, or (v) terminate its organizational documents or its qualifications and good standing in any jurisdiction;
(b) was, is and will be organized solely for the purpose of acquiring, developing, owning, holding, selling, financing, leasing, transferring, exchanging, managing and operating the Facility, entering into this Agreement with Buyer and transacting lawful business that is incident, necessary and appropriate to accomplish the foregoing; (c) has not been, is not, and will not be engaged in any business unrelated to the acquisition, development, construction, ownership, management or operation of the Facility; (d) has not had, does not have and will not have, any assets other than those related to the Facility;
(e) has held itself out and will hold itself out to the public as a legal entity separate and distinct from any other entity and has not failed and will not fail to correct any known misunderstanding regarding the separate identity of such entity; (f) has maintained and will maintain its financial statements, bank accounts, accounts, books, resolutions, agreements and records separate from any other Person and has filed and will file its own tax returns (except to the extent treated as a “disregarded en tity” for tax purposes and is not required to file tax returns under applicable law); (g) has held itself out and identified itself and will hold itself out and identify itself as a separate and distinct entity under its own name or in a name franchised or licensed to it by an entity other than an Affiliate of Seller and not as a division, depa rtment or part of any other Person;
(h) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person;
(i) has not made and will not make loans or advances to any Person other than as required under the Interconnection Agreement, or as may be permitted under the Shared Facilities Agreement, or hold evidence of indebtedness issued by any other Person (other than cash and investment-grade securities issued by an entity that is not an Affiliate of or subject to common ownership with such entity) or made any gifts or fraudulent conveyances to any Person;
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24 (j) has not identified and will not identify its members, or any Affiliate of any member, as a division or department or part of it, and has not identified itself and shall not identify itself as a division or department of any other Person; (k) has not entered into or been a party to, and will not enter into or be a party to, any transaction with its members or Affiliates, except (i) in the ordinary course of its business and on terms which are intrinsically fair, commercially reasonable and are no less favorable to it than would be obtained in a comparable arm’s-length transaction with an unrelated third party, (ii) in connection with the development or construction of the Facility, provided that (except with respect to agreements subject to clause (iii) below), any indebtedness or other obligations of Seller pursuant to any such transaction with its members or Affiliates shall be fully performed and discharged in their entirety on or prior to the occurrence of the Commercial Operation Date, (iii) any Shared Facilities Agreement, or (iv) as otherwise set forth and permitted in this Agreement;
(l) does not and will not have any obligation to indemnify, and has not indemnified and will not indemnify any Person other than (i) its officers, managers or members, as the case may be, and the Independent Manager in connection with activities related to the performance of this Agreement, (ii) entities requiring indemnification in the normal course of business in connection with the development, construction, ownership and operation of the Facility, or (iii) any Affiliate that is a party to a Shared Facilities Agreement, in each case as set forth therein;
(m) has considered and shall consider the interests of its creditors in connection with all limited liability company actions;
(n) does not and will not have any of its obligations guaranteed by any Affiliate and will not hold itself out as being responsible for the debts or obligations of any other Person except (i) in connection with the development or construction of the Facility; provided that any such debt obligations shall be fully performed and discharged on or prior to the occurrence of the Commercial Operation Date, or (ii) in accordance with the Interconnection Agreement and any Shared Facilities Agreement;
(o) has complied and will comply with all of the terms and provisions contained in its organizational documents including the provision requiring that there be an Independent Manager at all times and has done or caused to be done and will do all things necessary to preserve its existence;
(p) has not commingled, and will not commingle, its funds or assets with those of any Person and has not participated and will not participate in any cash management system with any other Person;
(q) has held and will hold its assets in its own name and conducted and will conduct all business in its own name;
(r) has maintained and will maintain its financial statements, accounting records and other entity documents separate from any other Person and has not permitted and 113 of 489

25 will not permit its assets to be listed as assets on the financial statement of any other entity except as required by GAAP; provided, however, that any such consolidated financial statement shall contain a note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated entity nor constitute obligations of the consolidated entity; (s) has paid and will pay its own liabilities and expenses, including the salaries of its own employees, out of its own funds and assets, and has maintained and will maintain a sufficient number of employees in light of its contemplated business operations; (t) has observed and will observe all limited liability company formalities; (u) has not assumed or guaranteed or become obligated for, and will not assume or guarantee or become obligated for the debts of any other Person (other than an Affiliate of Seller solely as provided in (k) and (n) of this definition with respect to debts incurred for the performance of an obligation of Seller under this Agreement) and has not held out and will not hold out its credit as being available to satisfy the obligations of any other Person (other than an Affiliate of Seller solely as provided in (k) and (n) of this definition with respect to debts incurred for the performance of an obligation of Seller under this Agreement) except as permitted pursuant to this Agreement, or in accordance with the Interconnection Agreement or any Shared Facilities Agreement;
(v) does not have and will not acquire obligations or securities of its members or any Affiliate, except as permitted under (k), (n), and (u) of this definition; (w) has allocated and will allocate fairly and reasonably any overhead expenses that are shared with any Affiliate, including but not limited to paying for shared space and services performed by any employee of an Affiliate; (x) maintains and uses, and will maintain and use separate stationery, invoices and checks bearing its name; such stationery, invoices and checks utilized by it or utilized to collect its funds or pay its expenses have borne and shall bear its own name and have not borne and shall not bear the name of any other entity unless such entity is clearly designated as being its agent;
(y) except in connection with the development or construction, or financing of the development or construction of the Facility, or in accordance with any Shared Facilities Agreement, has not pledged and will not pledge its assets for the benefit of any other Person; (z) now has, and will continue to maintain, articles of organization, a certificate of formation or an operating agreement, as applicable, that provides that it will not:
(i) dissolve, merge, liquidate or consolidate; (ii) sell, transfer, lease or otherwise co nvey all or substantially all of its assets; (iii) engage in any other business activity, or amend its organizational documents with respect to the matters set forth in this definition without the affirmative vote of its Independent Manager; or (iv) without the affirmative vote of its Independent Manager, file a bankruptcy or insolvency petition or otherwise institute insolvency proceedings with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest;
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26 (aa) is and intends to remain solvent and has paid and intends to continue to pay its debts and liabilities (including, as applicable, shared personnel and overhead expenses) from its assets as the same shall have or become due, and has maintained, is maintaini ng and intends to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations; and (bb) has and will have no indebtedness other than (i) any loan(s) made by the Facility Lender providing construction financing for the Facility and any loan in replacement or substitution thereof, (ii) Taxes and Insurance premiums, (iii) liabilities (other than any loan(s) made by the Facility Lender) incurred in the ordinary course of business relating to its ownership, leasing and operation of the Facility and its routine administration, the amounts of which are normal and reasonable under the circumstances and paid in a timely manner and, when due and owing at any given time but unpaid, (A) do not exceed, at any time, a maximum amount of one percent (1%) of any loan(s) made by the Facility Lender providing construction financing for the Facility and any loan in replacement or substitution thereof, and (B) are paid within sixty (60) days o f the date incurred , (iv) any other liabilities incurred in the ordinary course of business relating to the development and construction of the Facility, provided that any such liabilities shall be fully discharged on or prior to achievement of the Commercial Operation Date or as set forth in any Shared Facilities Agreement, and (v) such other liabilities that are permitted pursuant to this Agreement.
“SPG” has the meaning set forth in Appendix S.
“Startup and Test Energy” means Delivered Energy, measured in MWh, generated prior to the Commercial Operation Date for which there are certified RECs. “Startup Notice” has the meaning set forth in Section 3.3(b). “Startup Price” has the meaning set forth in Appendix A. “State Executive Order” has the meaning set forth in Section 14.24(m). “Subcontractors” has the meaning set forth in Section 11.5. “System Emergency” means (i) an emergency condition or abnormal condition on the Transmission System which in the sole judgment of Buyer’s Transmission Provider prevents Buyer or Buyer’s Transmission Provider acting in accordance with Prudent U tility Practices to receive Energy at the Point of Delivery , (ii) an “Emergency Condition” as defined in the Transmission Provider’s OATT or the Interconnection Agreement, or (iii) any abnormal condition, reliability condition on a Transmission Provider’s Transmission S ystem as may be identified by such Transmission Provider, any balancing authority, or any reliability entity. “Tax” or “Taxes” means each federal, state, county, local and other (i) net income, gross income, gross receipts, sales, use, ad valorem, business or occupation, transfer, franchise, profits, withholding, payroll, employment, excise, property or leasehold tax and (ii) customs, duty or other fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amount with respect thereto. 115 of 489

27 “Tax Equity Investor” has the meaning set forth in the definition of “Tax Financing.” “Tax Financing” means, with respect to Seller or any Upstream Equity Owner, any transaction or series of transactions in which (i) (a) one or more tax equity investors (each, a “Tax Equity Investor”) buys an interest in Seller or in any Upstream Equity Owner acting as a holding company for Seller, (b) such Tax Equity Investors are thereafter allocated a disproportionate amount of the income, loss and tax credits associated with Seller, which may be revised after a “flip date,” after which such allocations are reduced or otherwise modified, (c) on one or more dates on or after such “flip date” the other party or parties to such transaction or series of transactions that was the recipient of the remainder of any income, loss and tax credit allocations (that is, the non-Tax Equity Investor to the transaction or series of transactions) may have an option to repurchase any Tax Equity Investors’ interest in Seller or such Upstream Equity Intermediate Entity acting as a holding company for Seller, and (d) such non-Tax Equity Investor’s interest in Seller or such Upstream Equity Intermediate Entity retains management control over the Facility, but must obtain the agreement of the Tax Equity Investors prior to taking major decisions (in accordance with the applicable t ax equity financing documents) with respect to Seller or such Upstream Equity Owner acting as a holding company, (ii) there is a Sale Leaseback Financing, (iii) one or more tax credit buyers purchases the ITCs or PTCs associated with the Project or (iv) another structure pursuant to which a third- party is able to monetize the tax credits and/or other benefits associated with the Facility to be agreed with the prior written consent of Buyer, such consent not to be unreasonably withheld.
“Termination Notice” has the meaning set forth in the definition of Section 13.3(a). “Termination Payment” means in the case of a Default, the amounts, calculated pursuant to Section 13.3 payable by the Defaulting Party, as applicable, to liquidate this Agreement. “Third Party Sale Replacement Price” has the meaning set forth in Section 6.3. “Tier One” has the meaning set forth in Section 5.1(d). “Transmission Line Loss Factor” means a number, stated as a percentage, which will be used to calculate the line losses on the gen-tie transmission line between the Project Meter and the Point of Delivery and will be applied to the readings taken by the Electric Metering Device(s) installed at the Project Meter as set forth in Section 11.6(b). For the avoidance of doubt, after the Transmission Line Loss Factor is determined in accordance with Section 3.7(b) , it shall remain constant until the expiration of the Delivery Term. The Transmission Line Loss Factor is intended to represent all transmission and transformation losses between the Project Meter and the Point of Delivery.
“Transmission Provider” means the Person(s) operating the Transmission System(s) providing Transmission Services to or from the Point of Delivery. “Transmission Services” means the transmission and other services required to transmit Energy to or from the Point of Delivery.
“Transmission System” means the facilities utilized to provide Transmission Services. 116 of 489

28 “Ultimate Upstream Equity Owner” means the entity set forth in Section 1 of Schedule

12.2(h).
“UNFCCC” has the meaning set forth in the definition of “Environmental Attributes.” “Upstream Equity Owner” means any upstream equity owner of Seller at or below the Ultimate Upstream Equity Owner.
“U.S. Issuer Bank” means any issuer of a letter of credit that is organized under the laws of the United States or any state thereof.
“VAC” means volts alternating current.
“VDC” means volts direct current.
“WBE” has the meaning set forth in Section 14.24(c).
“WECC” means the Western Electricity Coordinating Council, and any successor entity thereto.
“Western Interconnection” means the wide area synchronous power grid overseen by the WECC.
“WREGIS” means Western Renewable Energy Generation Information System , any successor thereto, including any replacement system required by the CEC, or any replacement system as determined by Buyer.
“WREGIS Certificates” has the meaning set forth in Section 8.4. “WREGIS Operating Rules” means the rules describing the operations of WREGIS, as published by WREGIS and as may be amended from time to time. “WREGIS Withhold Amount” has the meaning set forth in Section 11.2.

Other terms defined herein have the meanings so given them in this Agreement.

Section 1.2 Interpretation. In this Agreement, unless a clear contrary intention appears:
(a) time is of the essence;
(b) the singular number includes the plural number and vice versa; (c) reference to any Person includes such Person’s successors and assigns but, in case of a Party, only if such successors and assigns are permitted by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacit y or individually;
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29 (d) reference to any gender includes the other;
(e) reference to any agreement (including this Agreement), document, instrument, tariff or Requirement means such agreement, document, instrument, or tariff, or Requirement, as amended, modified, replaced or superseded and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof; (f) reference to any Article, Section, or Appendix means such Article of this Agreement, Section of this Agreement, or such Appendix to this Agreement, as the case may be, and references in any Article or Section or definition to any clause means such clause of such Article or Section or definition;
(g) “herein”, “hereunder”, “hereof”, “hereto” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular Article or Section or other provision hereof or thereof;
(h) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; (i) relative to the determination of any period of time, “from” means “from and including,” “to” means “to but excluding,” and “through” means “through and including”; (j) reference to time shall always refer to Pacific Prevailing Time; and reference to any “day” or “month” shall mean a calendar day or calendar month, as applicable, unless otherwise indicated;
(k) the term “or” is not exclusive; and
(l) the terms “shall” and “will” shall have the same meaning and be of equal force and effect.

Section 1.3 Interpretation with Interconnection Agreement . The Parties acknowledge that the Interconnection Agreement is a separate and free-standing contract and that nothing in this Agreement, including the expiration or termination hereof, shall alter or modify the rights, duties and obligations of the parties under the Interconnection Agreement.

Section 1.4 Order of Precedence. In the event of any conflict or inconsistency between or among the terms and conditions of any of the body of this Agreement, the Appendices and Exhibits attached to the body of this Agreement and the Ancillary Documents, the following order of precedence, consistent with the controlling Requirements of Law, shall govern the interpretation of this Agreement: (i) the body of this Agreement, (ii) the Appendices and Exhibits attached to the 118 of 489

30 body of this Agreement, (iii) the Option Agreement and (iv) the Ancillary Documents other than the Option Agreement.

ARTICLE II

EFFECTIVE DATE, TERM AND EARLY TERMINATION
Section 2.1 Effective Date. This Agreement shall be effective as of the Effective Date.

Concurrently with the execution of this Agreement, Seller shall execute and deliver to Buyer the Option Agreement. No later than five (5) Business Days after the Effective Date, Seller shall deliver (or caused to be delivered) to Buyer the Legal Opinion and the documents described in Section 12.2(b).

Section 2.2 Approvals Date Obligations.
(a) Within five (5) Business Days after the date on which all Approvals have been obtained, Buyer shall provide written notice to Seller of the occurrence thereof and the Approvals Date.
(b) No more than thirty (30) days after the Approvals Date, Seller shall deliver to Buyer a copy of the CEC pre-certification application for the Facility in the name of Seller that has been filed with the CEC. No later than five (5) Business Days after the Approvals Date, Seller shall deliver to Buyer the Non-Consolidation Opinion.

Section 2.3 Agreement Term and Delivery Term. The term of this Agreement shall commence on the Effective Date and shall end upon the final date of the Delivery Term (the “Agreement Term”). This Agreement shall have a delivery term commencing on the Commercial Operation Date and ending on the last day of the Final Stub Year, unless sooner terminated in accordance with the terms of this Agreement (the “Delivery Term”).

Section 2.4 Survivability. The provisions of this Section 2.4, Section 5.6, Section 11.5, Article XIII, and Article XIV shall survive the termination of this Agreement. In addition, applicable provisions of this Agreement shall continue in effect after termination to the extent necessary to provide for final billing and adjustments related to the period prior to termination of this Agreement, including payment of any money due and owing to Seller or Buyer pursuant to this Agreement, including Section 3.3, Section 5.6, Section 6.1, Section 6.3, Section 6.4, Section 9.2 and Section 9.3.

Section 2.5 Early Termination. Without limiting Buyer’s rights in this Agreement, including any other termination rights that may not be enumerated in this Section 2.5, Buyer may terminate this Agreement as follows:
(a) Early Termination by Mutual Agreement . This Agreement may be terminated by mutual written agreement of the Parties.
(b) Early Termination for Default . Upon the occurrence and during the continuation of a Default subject to applicable cure periods, if any, the Non-Defaulting Party may, in its sole discretion, terminate this Agreement as set forth in Section 13.3. 119 of 489

31 (c) Early Termination for Compliance Failure. Buyer, in its sole discretion, may terminate this Agreement pursuant to Section 8.7.
(d) Early Termination for Failure to Achieve Commercial Operation .

Buyer, in its sole discretion, may terminate this Agreement effective upon notice to Seller if Seller fails to achieve the Commercial Operation Date in accordance with Section 13.1(i). (e) Early Termination for Consecutive Shortfall Energy Years. Buyer may, in its sole discretion, terminate this Agreement pursuant to Section 13.1(j). (f) Early Termination for Force Majeure. This Agreement may be terminated pursuant to Section 14.5.
(g) Early Termination for Failure to Obtain CEC Certification . Buyer may, in its sole discretion, terminate this Agreement effective upon notice to Seller pursuant to Section 3.5 if the Facility is not CEC Certified by the date that is six (6) months following the Commercial Operation Date.
(h) Early Termination for Business Policies. Buyer, in its sole discretion may terminate this Agreement pursuant to Section 14.24.
(i) Early Termination for Exercise of ROFO or ROFR . If Buyer accepts the Right of First Offer or Right of First Refusal for any proposed sale of all or any portion of the Facility or the Facility Assets, this Agreement shall terminate effective upon the consummation of any such sale to Buyer pursuant to Section 14.21.
(j) Early Termination for Exercise of Project Purchase Option . In the event Buyer elects to exercise the Project Purchase Option, this Agreement shall terminate effective upon the Closing under the Option Agreement.

Any termination of this Agreement under this Section 2.5 shall be without prejudice to the rights and remedies of either Party for Defaults occurring prior to such termination.

Section 2.6 Early Termination for Failure to Obtain Required Approvals . If the Approvals Date has not occurred by the Approvals Deadline, then within ten (10) Business Days after the Approvals Deadline, either Buyer or Seller may terminate this Agreement and the Option Agreement by providing written notice to the other Party signed by a duly- authorized officer of Buyer or Seller, as applicable, which specifically provides that Buyer or Seller, is exercising its right to terminate this Agreement and the Option Agreement and specifically provides that such termination is being made pursuant to this Section 2.6 of the Agreement, with such termination to be effective immediately. Notwithstanding the immediately preceding sentence, each Party’s right to terminate shall expire on the earlier to occur of (a) the Approvals Date and (b) ten (10) Business Days after the Approvals Deadline. Upon such termination, neither Party shall have any liability to the other Party for such termination, subject to any obligations specified in Section 2.4.

ARTICLE III

DEVELOPMENT OF THE FACILITY
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32 Section 3.1 Permitting. Seller, at its expense shall timely take all steps necessary to obtain all Permits required to construct, maintain or operate the Facility in accordance with the requirements of this Agreement and all applicable Requirements of Law, including the timely preparation of all environmental documents required for the review of the Facility under applicable federal and Utah law (the “Environmental Documents”), and any relevant Milestones.

Section 3.2 Design, Development and Construction of the Facility . The location, design, configuration and capacities of the Facility shall be consistent with the Requirements, including the characteristics and other requirements for the Facility set forth in Appendix B. Seller shall use commercially reasonable and diligent efforts to site, develop, finance and construct the Facility. The Facility and the Facility Site shall be owned (or leased pursuant to a Sale Leaseback Financing, the Real Property Agreements, or any other lease arrangement meeting the Site Control requirements and otherwise reasonably acceptable to Buyer) by Seller during all periods of the Agreement Term from and after the Construction Commencement Milestone. Seller shall develop, finance and construct the Facility at its sole risk and expense and in compliance with the Requirements; provided that meeting these requirements shall not relieve Seller of its other obligations under this Agreement. Any failure by Seller to inspect the physical condition of the Facility Site, including any local or other conditions that may be material to Seller’s performance of its obligation under this Agreement, shall not relieve Seller from any responsibility for estimating properly the difficulty and cost of successfully constructing, maintaining or operating the Facility in accordance with this Agreement or from proceeding to construct, maintain and operate the Facility successfully without any expense to Buyer. Subject to any restrictions set forth in this Agreement, Seller may subcontract its duties or obligati ons under this Agreement without the prior written consent of Buyer; provided, that no such subcontract shall relieve Seller of any of its duties or obligations hereunder. Subject to Section 6.1(c), but notwithstanding any other provision of this Agreement, Seller may in its discretion construct and install the Facility with a capacity in excess of the Contract Capacity. Seller shall enter into or cause the EPC Contractor (or its electrical subcontractor) to enter into a project labor agreement for the electrical trades performing construction and installation work on the high-voltage electrical components of the Facility.

Section 3.3 Milestone Schedule; Daily Delay Damages.
(a) Attached as Appendix B is a schedule of the milestones for the development of the Facility through its Commercial Operation Date (each milestone, a “ Milestone”) and the Milestone Dates associated therewith, including the Guaranteed Commercial Operation Date.

Seller shall achieve each Milestone by no later than the Milestone Date specified therefor. Seller anticipates achieving Commercial Operation by September 30, 2028, but Seller may achieve Commercial Operation prior to September 30, 2028 (but in any event no earlier than June 30, 2028 without the prior consent of Buyer, such consent to be in the sole discretion of Buyer) so long as Seller provides at least twelve (12) months advanced written notice thereof. From and after the Approvals Date until the date upon which Commercial Operation has been achieved, Seller shall provide Buyer with monthly reports with updates related to Facility development and progress, including timing and status for obtaining all requisite Permits set forth in Appendix K and achieving pre-Commercial Operation Date Milestones, as set forth in Appendix B. 121 of 489

33 (b) Beginning upon the earlier of (i) June 30, 2028, or (ii) the date that is six months prior to the date designated by Seller pursuant to Section 3.3(a) for Commercial Operation of the Facility, Seller shall have the right to sell and deliver, and Buyer shall purchase and accept from Seller, Startup and Test Energy at the rate for such Energy set forth in Appendix A on the terms specified in this clause (b). Seller shall provide Buyer not less than thirty (30) days’ written notice of the date upon which it w ill commence delivery of Startup and Test Energy (“ Startup Notice”). The Startup Notice shall include a schedule of Seller’s best projection for delivery of Startup and Test Energy, and shall be subject to Buyer’s approval in all respects, such approval not to be unreasonably withheld. Thereafter, Seller shall provide an updated schedule of Seller’s best projection for delivery of Startup and Test Energy every thirty (30) days, and shall promptly notify Buyer of any expected change to such projected delive ry. For the avoidance of doubt, (i) Buyer shall have the right, but shall have no obligation hereunder, to purchase Startup and Test Energy at any time before June 30, 2028, and (ii) Buyer shall purchase and accept Startup and Test Energy in amounts and at times reasonably necessary to allow Seller to achieve the Commercial Operation Date, as applicable, as soon as is reasonably possible following Buyer’s receipt of the Startup Notice, it being acknowledged, however, that the Startup and Test Energy may be curtailed by Buyer to the extent commercially necessary or for any operational reason, in each case, in Buyer’s sole discretion on a non-compensable basis.
(c) If Seller anticipates that it will not achieve a Milestone by the Milestone Date therefor, Seller shall promptly prepare and deliver to Buyer a written action plan detailing how Seller will cure such failure (such plan, a “Remedial Action Plan”). The proposed Remedial Action Plan must in all cases be acceptable to Buyer, such acceptance not to be unreasonably withheld, delayed or conditioned. The Remedial Action Plan shall specify in reasonable detail the anticipated period of delay, Seller’s analysis of the causes of the missed Milestone Date, the actions that Seller plans to take to correct such underperformance, and the time needed to complete such corrective actions. Seller shall complete any and all corrective action pursuant to the provisions of the Remedial Action Plan. Seller may (i) supplement the Remedial Action Plan, as may be reasonably required, or (ii) provide Buyer with written notice of any deviations from the approved Remedial Action Plan; provided that in the case of (i) or (ii), any supplements to, or deviations from, the Remedial Action Plan must be acceptable to Buyer, such acceptance not to be unreasonably withheld, delayed or conditioned.
(d) In addition to the preparation of a Remedial Action Plan in accordance with Section 3.3(c), if Seller fails to achieve the Key Milestone by the Milestone Date therefor, Seller shall pay Buyer the Daily Delay Damages for each day between the Milestone Date for the Key Milestone and the date upon which the Key Milestone is achieved (or the Agreement is terminated by Buyer under Section 13.1(i)). Buyer may draw from the Development Security the amount of any such Daily Delay Damages. The Key Milestone shall be extended for a period of time as may reasonably be required to the extent Seller is actually delayed as a result of the event of Force Majeure, but in no event to exceed a period of two hundred forty (240) or more consecutive calendar days or an aggregate of three hundred sixty- five (365) consecutive or non- consecutive calendar days from the date of the occurrence of such event of Force Majeure in accordance with Section 14.5(c). If the Force Majeure event extends the Guaranteed Commercial Operation Date by two hundred forty (240) or more consecutive calendar days or by an aggregate of three hundred sixty-five (365) consecutive or non- consecutive calendar days, then Buyer may terminate this 122 of 489

34 Agreement, in its sole discretion, and Buyer shall return the Development Security to Seller less (i) any amounts that are due and owing to Buyer under this Agreement and (ii) any amounts previously drawn by Buyer in accordance with this Agreement. (e) Notwithstanding anything to the contrary set forth in this Agreement, in no event shall the Commercial Operation Date occur later than one hundred and eighty (180) days after the Guaranteed Commercial Operation Date (the “Outside COD”), and the failure to achieve the Commercial Operation Date by the Outside COD shall be an immediate Default by Seller; provided that the Outside Date may be extended as set forth in Section 3.3(d) due to Force Majeure. (f) The Parties agree that the damages that Buyer would incur due to Seller’s failure to timely achieve the Key Milestone would be difficult or impossible to predict with certainty, and it is impractical or difficult to assess actual damages in those circumstances and, therefore, the Daily Delay Damages are a fair and reasonable calculation of such damages and shall be in lieu of actual damages for Seller’s failure to achieve the Key Milestone by the Milestone Date therefor.
(g) The payment of Daily Delay Damages shall be the exclusive remedy of Buyer associated with Seller’s failure to timely achieve the Key Milestone but shall not limit Buyer’s right to (i) recover actual damages pursuant to Section 3.3(d), (ii) exercise any right or remedy available under this Agreement or at law or in equity for any other breach or default occurring concurrently with, before, or after Seller’s delay in achieving the applicable Milestone by the Milestone Date therefor, (iii) recover any damages not directly attributable to such delay (not to exceed, prior to the Commercial Operation Date, the amount of the Development Security) or to pursue any indemnity claims in accordance with this Agreement, or (iv) terminate this Agreement pursuant to Section 13.1(i) for failure to achieve the Commercial Operation Date by the Guaranteed Commercial Operation Date.

Section 3.4 Certification of the Commercial Operation Date. Seller shall provide Buyer with no fewer than ninety (90) days prior written notice of the anticipated date of the Commercial Operation Date. Seller shall deliver a written completion certification to Buyer in the form of Appendix N with respect to the Commercial Operation Date. Once such certification has been delivered, Buyer shall have up to thirty (30) days from the receipt of such certification to either accept or reject, in writing, the certification; provided, Buyer may not unreasonably withhold, delay or condition acceptance of any such certification, and any rejection by Buyer must be reasonable and contain a written description with reasonable detail of Buyer’s reasons therefor.

If Buyer rejects any such certification, Seller shall promptly c orrect those defects or deficiencies as directed by Buyer and resubmit the certification, and Buyer shall have up to fifteen (15) additional days from the date of such resubmission to either accept or reject such resubmitted certification. Buyer shall in all cases respond in writing to any such certification within such thirty (30) day or fifteen (15) day period (as applicable) and shall be deemed to have accepted such certification effective on the earlier of Buyer’s actual acceptance thereof or the thirt y-first (31 st)
day or sixteenth (16th) day (as applicable) following Buyer’s receipt thereof if Buyer fails to respond in writing within such timeframe. The Commercial Operation Date shall occur as of the date upon which the Seller certification is accepted (or deemed accepted) by Buyer. Any Daily Delay Damages otherwise payable under Section 3.3(d) shall be excused for each day following 123 of 489

35 the date of Seller ’s delivery of a certification of such Commercial Operation Date under this Section 3.4 until the date on which Buyer responds to such certification under this Section 3.4, unless Buyer reasonably rejects such certification, in which case Daily Delay Damages shall be due and payable for each day between the Guaranteed Commercial Operation Date and the date until a revised certification of the Commercial Operation Date has b een delivered by Seller and accepted by Buyer (in which case, such Daily Delay Damages shall only be payable up to the date that such certification was delivered by Seller).

Section 3.5 CEC Certification/NERC Registrations. Promptly, but in no event more than ten (10) days following the Commercial Operation Date, Seller shall file with the CEC all materials and documents required to demonstrate that the Facility is entitled to be CEC Certified.

Seller shall promptly provi de Buyer with copies of all submittals to the CEC and other correspondence between Seller and the CEC. Failure by Seller to comply with the requirements set forth in this Section 3.5 shall constitute an event of default by Seller, subject to the cure periods set forth in Section 13.1(b). During any period when Delivered Energy is provided in which CEC Certification has not been obtained, Buyer may withhold the WREGIS Withhold Amount; provided, however, Buyer shall pay to Seller, for each MWh generated by the Facility after the Certification Eligibility Date and for which a WREGIS Certificate was credited to Buyer’s WREGIS account, any WREGIS Withhold Amount previously withheld by Buyer. Seller shall, at its cost, register with NERC for all applicable Function Types in the NERC Compliance Registry in accordance with the currently effective NERC Rules of Procedure, including Seller’s registration as both Generator Owner and Generator Operator.

Section 3.6 Other Information. Seller shall provide to Buyer such other information that is in the possession of Seller, its Subcontractors (to the extent that Seller has the right to disclose such information), or its Affiliates or is reasonably available to Seller regarding the permitting, engineering, construction or operations of Seller, its subcontractors or the Facility, and other data concerning Seller, its subcontractors or the Facility that Buyer may, from time to time, reasonably request in writing; provided that Seller shall have no obligation to disclose confidential information that it does not have any right to disclose.

Section 3.7 Transmission Line Loss Factor.

(a) Calculation of Transmission Line Loss Factor . Seller shall cause an Independent Engineer to calculate the Transmission Line Loss factor using, at a minimum: (a) the as-built conductor type, length, impedance, and physical configuration; (b) transformer operating characteristics; (c) expected operating voltage and power factor assumptions; and (d) a representative hourly project output for a typical year, used in appropriate simulations. (b) Estimate Approval Condition to Construction Commencement. At least sixty (60) days prior to the anticipated achievement of the Construction Commencement Milestone, Seller shall deliver to Buyer an estimate, calculated by an Independent Engineer, of the Transmission Line Loss Factor for Buyer’s approval, which shall not be unreasonably withheld, conditioned or delayed. Buyer’s approval of such estimate is a condition to achievement of the Construction Commencement Milestone.
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36 (c) Final Approval Condition to COD. No fewer than ninety (90) days prior to the anticipated date of the Commercial Operation Date, Seller shall deliver to Buyer the final Transmission Line Loss Factor, calculated by an Independent Engineer, for Buyer’s approval, which shall not be unreasonably withheld, conditioned or delayed. Buyer’s approval of the Transmission Line Loss Factor is a condition to achieving the Commercial Operation Date.

ARTICLE IV

OPERATION AND MAINTENANCE OF THE FACILITY
Section 4.1 Compliance with Electrical Service Requirements . Seller shall, at its sole expense, operate and maintain the Facility: (i) in accordance with the Requirements and the requirements of applicable manufacturer’s and operator’s specifications and, using commercially reasonable efforts to comply with any published recommendations of the manufacturers and suppliers of the solar panels, and other major components of the Facility; (ii) with due regard for the safety, security and reliability of the interconnection facilities and the Transmission System, and in accordance with the Buyer’s system protection design requirements, attached hereto as Appendix P, and (iii) in a manner that is reasonably likely to (A) optimize the use of the Facility consistent with the overall requirements of this Agreement, and (B) result in a useful life for the entire Facility of not less than thirty-five (35) years, assuming appropriate repairs and replacements from time to time of Facility components.

Section 4.2 General Operational Requirements. In addition to the requirements set forth in Section 4.1 and elsewhere in this Agreement, Seller shall, at all times employ or cause to be employed qualified and trained personnel for managing, operating and maintaining the Facility and for coordinating with Buyer and Buyer’s Authorized Representative. Seller shall ensure remote monitoring of the Facility and that necessary personnel shall promptly respond to emergency consistent with industry practices during the Delivery Term. The Facility shall be operated during the Delivery Term by a Qualified Operator. For the avoidance of doubt, in no event will the operation of the Facility by a third party, nor shall Buyer’s approval of any third party operator, relieve Seller of any of its obligations hereunder.

Section 4.3 Reactive Power Dispatch . The Facility shall maintain a reactive power dispatch within the power factor range of 0.95 lead/lag at the Point of Delivery, in accordance with Appendix P and the Interconnection Agreement.

Section 4.4 Not Used.

Section 4.5 Operation and Maintenance Plan after Commercial Operation .

Following the Commercial Operation Date, Seller shall:
(a) provide on a monthly basis, information regarding (i) operations and maintenance status of the Facility provided to WECC or lenders pursuant to the Financing Agreement; and (ii) past generation performance that include s: a Facility performance summary with month/year to date, Facility performance on MWh, capacity factor, comparison of actual and expected, availability, average illumination and solar irradiance, operational summary including weather for the month, reasons for downtime, scheduled maintenance and repairs, curtailment 125 of 489

37 events, safety, and a summary of any environmental issues or concerns in the form set forth in Appendix W.
(b) provided on a monthly basis the following information in the form set forth in Appendix W: Seller ’s actions to: (i) conduct regular visual equipment inspections and log significant parameters; (ii) identify all preventive maintenance requirements for the following calendar year, including the performance of maintenance in accordance with Section 7.4; (iii) schedule and assign routine maintenance during operations, planned outages, as well as maintenance that can be conducted in parallel (but in the event of a forced or unscheduled outage, and as a result of outage and curtailment notifications (schedul ed and unscheduled); (iv) conduct periodic maintenance to various equipment, and provide a report about any findings to Buyer; (v) conduct periodic Q/A and Q/C activities and inspections in accordance with Appendix J and, to the extent prepared in the ordinary course of business, provide reports thereof to Buyer; and (vi) hire Subcontractors, as applicable, to meet the Facility’s maintenance, betterment, and improvement needs.

Section 4.6 Operation and Maintenance Plan after Purchase Option Notice.

Following the provision by Buyer of a Purchase Option Tentative Exercise Notice (as defined in the Option Agreement) and until such time as the Closing occurs or Buyer declines to purchase the Facility in accordance with the Option Agreement Seller shall, to the extent prepared in the ordinary course of business:
(a) devise and implement, or cause the Qualified Operator to devise and implement, an operations and maintenance plan, or implement an existing plan that includes the status of the Facility and each of the major components thereof in order to maintain such equipment in accordance with Prudent Utility Practices (the “ Operation and Maintenance Plan ”). Such Operation and Maintenance Plan shall be consistent with the requirements of any Financing Agreement in place as of such date. Seller shall keep, or cause the Qualified Operator to keep, records with respect to inspections, maintenance, and repairs. The Operations and Maintenance Plan and all records associated therewith shall be available for inspection by Buyer during Seller’s regular business hours upon reasonable notice; provided that Buyer shall at all times comply with Seller’s or the Qualified Operator’s written safety and security requirements when present at the Facility;
(b) provide Buyer, on a monthly basis, with a detailed description in the form of a written report, regarding the on- going operations of the Facility during such quarter, setting forth the status of the operations of the Facility or any component thereof, including any equipment or other operational or maintenance failures, defects or other issues and any repairs, replacements, or other remediation provided or to be provided therefor in a form which is reasonably acceptable to Buyer; as of January 15 of each calendar year, update the Operation and Maintenance Plan for the subsequent twelve (12) month calendar year period and submit the same to Buyer; (c) perform routine and preventive maintenance actions in accordance with all applicable manufacturers’ instructions, the Quality Assurance Program, Prudent Utility Practice, and the Operation and Maintenance Plan, including to: (i) conduct regular visual equi pment inspections and log significant readings; (ii) identify all preventive maintenance requirements for 126 of 489

38 a period of the following two (2) calendar years, including the performance of maintenance in accordance with Section 7.4; (iii) schedule and assign routine maintenance during operations, planned outages, and maintenance that can be conducted in parallel (but not extend required actions) in the event of a forced or unscheduled outage, and outage and curtailment notifications (scheduled and unscheduled); (iv) conduct periodic maintenance to various equipment, and provide a report about any findings to Buyer; (v) conduct periodic Q/A and Q/C activities and inspections in accordance with Appendix J and provide reports thereof to Buyer; and (vi) hire Subcontractors, as applicable, to meet the Facility’s plant’s maintenance, betterment, and improvement needs.

Section 4.7 Reporting and Information after Purchase Option Notice . Following the provision by Buyer of a Purchase Option Tentative Exercise Notice (as defined in the Option Agreement) and until such time as the Closing occurs or Buyer declines to purchase the Facility in accordance with the Option Agreement, Seller shall, to the extent prepared in the ordinary course of business, provide Buyer with a draft budget for the Facility (the “ Budget”) for the twelve (12) month period beginning on July 1 of the applicable calendar year, which Buyer shall have the right to review and to provide comments for consideration by Seller.

Section 4.8 Compliance with New Resource Implementation. Seller shall, at its sole cost and expense (a) design and thereafter at all times maintain the Facility in compliance with the New Resource Implementation requirements (or the equivalent), and (b) include in the design, construction and operation of the Facility any equipment or software that may be required to enable the Facility to participate in the EIM (or its equivalent) and EDAM. Buyer shall register the Facility into the EIM and EDAM and Seller shall cooperate with Buyer in connection with such registration, including promptly providing necessary information, data and documentation for the registration.

ARTICLE V

COMPLIANCE DURING CONSTRUCTION AND OPERATION PERIOD
Section 5.1 In General.
(a) The Facility . Seller shall perform, or cause to be performed, all engineering, design and construction in a good and workmanlike manner and in material compliance with the Requirements. Seller warrants that, as of the Commercial Operation Date:
(i) the Facility shall be free from material defects caused by errors or omissions in design, engineering, and construction, and (ii) the Facility will comply in all material respects with the Requirements. Seller also warrants that throughout the Agreement Term i t will monitor the operation and maintenance of the Facility and that said operation and maintenance is, and will be, in material compliance with the Requirements, Seller’s Quality Assurance Program, and any other provisions of this Agreement. Without lim iting the foregoing, Seller shall promptly repair or replace, consistent with Prudent Utility Practice, any component of the Facility that may be damaged or destroyed or otherwise not operating properly. Seller shall, subject to Seller’s reasonable judgme nt and consistent with Prudent Utility Practices, exercise commercially reasonable efforts to undertake all published, recommended, or required updates or modifications from manufacturers or suppliers to the Facility, its equipment and materials, including to 127 of 489

39 procedures, programming and software in a timely manner. Seller shall, at its expense, maintain throughout the Agreement Term an inventory of spare parts for the Facility in a quantity that is consistent with applicable manufacturers’ recommendations and Prudent Utility Practice. (b) Startup and Testing . Prior to the Commercial Operation Date, and as a condition precedent to the achievement of the Commercial Operation Date, Buyer shall have the right to (and Seller’s engineering, procurement and construction subcontracts shall provide for Buyer’s right to) during normal working hours and subject to Seller’s or its subcontractors’ reasonable requirements and procedures in respect of confidentiality (subject to the provisions set forth in Section 14.19) and safety):
(i) review and monitor the subcontractors’ performance and achievement; and
(ii) be present to witness such initial performance and acceptance tests and review the results thereof; and
(iii) upon notice to Seller, perform such detailed examinations, inspections, quality surveillance and tests as, in the judgment of Buyer, are appropriate and advisable to determine that the Facility equipment and all ancillary components of the Facility have been installed in accordance with this Agreement and the Facility construction contracts, all applicable standards, Prudent Utility Practices, applicable Requirements of Law, the Quality Assurance Program and the Milestones, provided that such examinations, inspections, quality surveillance and tests shall not interfere with the operations of the Facility or Seller’s or its subcontractors’ work and Buyer shall comply with Seller’s applicable access and safety requirements.
(c) Access and Cooperation . Seller shall, and shall cause each of its subcontractors to:
(i) permit Buyer and its Authorized Representatives, advisors, engineers and consultants to observe, inspect and monitor, upon reasonable notice to Seller during normal working hours and subject to Seller’s or its subcontractors’ reasonable requirements and procedures in respect of confidentiality (subject to the provisions set forth in Section 14.19) and safety, all operations and activities, including the performance of the contractor(s) under the construction contract(s) pertaining to the Facility, the design, engineering, procurement and installation of the equipment, start up and testing, and Commercial Operation and to make notes about and copy (and make such copies and notes available to Buyer) all documents, drawings, plans, specifications, permits, test results and information as Buyer may reasonably request; (ii) make the personnel of, and consultants to, the subcontractors and Seller available to Buyer, Buyer’s Agent, and Buyer’s agents, Authorized Representatives and consultants at reasonable times and with prior notice for purposes of discussing any aspect of the Facility or the development, engineering, construction, installation, testing or performance thereof; 128 of 489

40 (iii) otherwise cooperate in all reasonable respects with Buyer, Buyer’s Agent, and Buyer’s Authorized Representative, advisors, engineers and consultants in order to allow Buyer to exercise its rights under this Section 5.1; and (iv) from and after the Commercial Operation Date, except in the event of a System Emergency, accommodate Buyer’s requests to visit the Facility during Seller’s regular business hours upon reasonable notice.
(d) Equipment Suppliers. Seller shall only engage with Tier One solar panel manufacturers for the solar panels to be incorporated into the Facility. A “ Tier One” solar panel manufacturer means First Solar or a manufacturer whose photovoltaic -powered solar panels are (a) financeable by a Qualified Issuer, or (b) if not a Qualified Issuer, financeable by a Person with a net worth of at least Five Hundred Million Dollars ($500,000,000) . Seller shall use reasonable efforts to ensure that any equipment and supply contracts for the solar panels, inverters and any other major equipment for the Facility shall be fully assignable to, and be enforceable by, Buyer (including all warranties associated therewith) following Buyer’s exercise of the Project Purchase Option. Buyer shall have the right to review all applicable equipment supply contracts (which may be redacted to the extent that they contain confidential pricing information, proprietary or other commercially sensitive information (excluding any excerpts related to warranty information, term, termination and assignability)) for the Facility to ensure that Seller has complied with the provisions of this Section 5.1(d).

Section 5.2 Effect of Review by Buyer. Any review by Buyer of the design, construction, engineering, operation or maintenance of the Facility, and witness of testing hereunder, is solely for the information of Buyer. Buyer shall have no obligation to share the results of any such review or observation with Seller, nor shall any such review or observation, or the results thereof (whether or not the results are shared with Seller), nor any failure to conduct any such review relieve Seller from any of its obligations under this Agreement. By m aking any such review, Buyer makes no representation as to the economic and technical feasibility, operational capability or reliability of the Facility. Seller shall in no way represent to any third party that any such review by Buyer of the Facility, including any review of the design, construction, operation or maintenance of the Facility or observation of testing by Buyer, is a representation by Buyer as to the economic and technical feasibility, operational capability or reliability of the Facility. Seller is solely responsible for the economic and technical feasibility, operational capability and reliability thereof.

Section 5.3 Compliance With Standards; PMU Requirements. (a) Seller shall cause the Facility and all parts thereof to be designed, constructed, tested, operated and maintained to meet all of the requirements of this Agreement, all applicable requirements of the latest revision of the ASTM, ASME, AWS, EPA, IEEE, IEC, ISA, National Electrical Code, National Electric Safety Code, OSHA, Uniform Building Code, Uniform Plumbing Code, Underwriters Laboratory Standards, and National Fire Protection Agency, as applicable, as well as the applicable local County Fire Department Standards of the applicable county, NERC Reliability Standards, and other codes and standards and operations and maintenance requirements applicable to the services, equipment, and work as generally shown in 129 of 489

41 this Agreement, as well as all applicable Requirements of Law not specifically mentioned in this Section 5.3; provided, that for the avoidance of doubt, Seller shall use commercially reasonable efforts, but shall not be obligated, to comply with any non- mandatory recommendations, or voluntary best practices, in any of the foregoing so long as Seller follows Prudent Utility Practices and all applicable Requirements of Law. Seller shall comply with all reporting requirements for the Facility required under a pplicable Requirements of Law, such as Energy Information Assessments (including providing such information to Buyer as required thereunder). (b) Throughout the Delivery Term, the Parties shall comply with the PMU requirements as set forth in Appendix S.
(c) Throughout the Delivery Term, all of Seller’s personnel and systems shall adhere to any physical and cyber-related security policies, standards, requirements and procedures applicable to the Facility under federal, state, or local laws, regulations or industry practices, including requirements that may be imposed by FERC, NERC, WECC, the Department of Energy, the EPA, or the Department of Homeland Security, as well as any applicable cyber-related security policies and procedures of Buyer’s Agent to which pa rties engaged in energy sales transactions with Buyer’s Agent are customarily subject and any applicable cyber -related security policy and procedures of the Participating Members, including NERC Critical Infrastructure Protection compliance requirements (collectively, “Security Requirements”).

Section 5.4 Quality Assurance Program . As a condition of, and no later than the occurrence of, the Commercial Operation Date, Seller shall maintain and comply with a written quality assurance policy (“ Quality Assurance Program ” or “Q/A Program ”) attached hereto as Appendix J, and Seller shall cause all work performed on or in connection with the Facility to materially comply with said Quality Assurance Program.

Section 5.5 Preservation of the Facility . Except as expressly permitted by this Agreement, Seller shall not sell or otherwise dispose of, or create, incur, assume, or permit to exist any Lien (other than the Permitted Encumbrances) on, any portion of the Facility or any other property or assets which are necessary for the operation, maintenance, and use of the Facility, without the prior written approval of Buyer.

Section 5.6 Security Provided by Seller.
(a) Seller shall, by no later than ten (10) Business Days following the Approvals Date, deliver to Buyer an Acceptable Form of Performance Assurance in the amount of Thirty Two Million Four Hundred Thousand Dollars ($32,400,000) which Acceptable Form of Performance Assurance shall guarantee Seller’s obligations under this Agreement or the Option Agreement prior to the achievement of the Commercial Operation Date (the “ Development Security”). Seller shall maintain the Development Security until Seller posts the Performance Security pursuant to Section 5.6(b), or until Buyer is required to return the Development Security under Section 5.6(c) below.
(b) As a condition to the achievement of the Commercial Operation Date, Seller shall furnish to Buyer an Acceptable Form of Performance Assurance in the amount of Forty Eight Million Six Hundred Thousand Dollars ($48,600,000) , which Acceptable Form of Performance 130 of 489

42 Assurance shall guarantee Seller’s obligations under this Agreement or the Option Agreement from and after the Commercial Operation Date (the “Performance Security”). Seller may elect to apply the Development Security toward the Performance Security. Seller shall maintain such Performance Security until Buyer is required to return the Performance Security to Seller as set forth in Section 5.6(e) below.
(c) If (i) upon the Commercial Operation Date, no damages or other amounts are due and owing to Buyer under this Agreement and Seller does not elect to apply the Development Security toward the Performance Security, or (ii) this Agreement terminates prior to the occurrence of the Commercial Operation Date while the Development Security is outstanding and no damages or other amounts are due and owing to Buyer under this Agreement, then Buyer shall return to Seller the remaining amount of the Development Security (or any portions thereof if damages or other amounts are due and owing to Buyer under this Agreement or the Option Agreement), less any amounts previously drawn by Buyer in accordance with this Agreement, promptly following Seller’s provision of the Performance Security or the effective date of such early termination.
(d) Buyer may draw on the Development Security or the Performance Security, as applicable, (i) at any time following the accrual of Daily Delay Damages, Shortfall Liquidated Damages or any other liquidated damages provided for hereunder in the amount of such D aily Delay Damages, Shortfall Liquidated Damages, or other liquidated damages, as applicable, (ii) upon Seller’s failure to make a Termination Payment to Buyer in accordance with Section 13.3, in the amount of the unpaid Termination Payment, or (iii) upon Seller’s failure to make any other payment due to Buyer hereunder or under the Option Agreement in the amount of the unpaid payment; provided, that, in the case of a draw made under clause (iii), any such amount shall have been invoiced to Seller, shall be past due, and shall not be the subject of a good faith dispute between the Parties in accordance with Section 11.3. Subject to the foregoing, Buyer may draw all or any part of such amounts due to Buyer from any form of security provided under this Section 5.8, and in any sequence Buyer may elect, in its sole discretion. Any failure of, or delay by, Buyer in electing to draw any amount from the Performance Security shall in no way prejudice Buyer’s rights to subsequently recover such amounts from the Performan ce Security or in any other manner. Promptly, and in no event more than five (5) Business Days following any draw by Buyer on the Performance Security, Seller shall replenish the amount drawn on the Performance Security such that the amount of the Pe rformance Security is restored to the full amount set forth in Section 5.6(b). Seller shall not be required to replenish the Development Security if drawn upon by Buyer.
(e) Buyer shall return the unused portion of Performance Security, if any, to Seller promptly upon the later of: (i) the expiration or termination of the Agreement Term, including the exercise by Buyer of the Project Purchase Option, Right of First Offer or Ri ght of First Refusal, and (ii) all of the obligations of Seller arising under this Agreement and the Option Agreement being paid (whether directly or indirectly such as through set -off or netting) or performed in full.
(f) Seller shall provide, or cause to be provided, a replacement Acceptable Form of Performance Assurance in the required amount set forth in this Section 5.6 within the 131 of 489

43 earlier of three (3) Business Days and five (5) calendar days after the occurrence of (A) with respect to a letter of credit, Buyer notifies Seller that it reasonably believes that the Qualified Issuer of such letter of credit, in accordance with the bail -in write down provisions under Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014, may be or become unable to perform its obligations under such letter of credit, (B) a Downgrade Event (provided that Seller shall have thirty (30) days if the Downgrade Event is pursuant to clause (iii) of that definition), (C) with respect to a letter of credit, the date that Seller becomes aware of, or Buyer notifies Seller of, the occurrence of either of the following events: (x) the failure of the issuer of such letter of credit to renew such letter of credit twenty (20) Business Days prior to the expiration of such letter of credit, or (y) the failure of the issuer of such letter of credit to honor Buyer’s properly documented request to draw on such letter of credit in accordance with its terms, or (D) the issuer of the letter of credit becomes Bankrupt. (g) In the event that a replacement Acceptable Form of Performance Assurance in the required amount is not delivered in accordance with Section 5.6(f), Buyer shall have the right to draw immediately upon the entire amount of the existing Development Security or Performance Security, as applicable, and to retain such amount as Development Security or Performance Security, as applicable, in order to secure Seller’s obligations under this Agreement, at Seller’s cost and expense, in an account controlled by Buyer until Seller provides replacement Acceptable Form of Performance Assurance.
(h) Seller shall, from time to time as requested by Buyer, execute, acknowledge, record, register, deliver and file all such notices, statements, instruments and other documents as may be necessary or advisable to render fully valid and enforceable under all a pplicable Requirements of Law the Development Security or the Performance Security and the rights of Buyer with respect to such Development Security or Performance Security. (i) Notwithstanding the other provisions of this Agreement, each of the Development Security and the Performance Security constitute security for, but are not a limitation of, Seller’s obligations under this Agreement.
(j) Seller may elect, in its sole discretion from time to time, to replace any outstanding Development Security or Performance Security, as applicable, with a replacement Acceptable Form of Performance Assurance in the required amount set forth in this Section 5.6 and Buyer shall reasonably cooperate with Seller to cause the outstanding Development Security or Performance Security, as applicable, to be returned promptly following the receipt and confirmation of such replacement Acceptable Form of Performance Assurance.

Section 5.7 Decommissioning and Other Costs . Unless Buyer elects to exercise the Project Purchase Option, the Right of First Offer or the Right of First Refusal, Buyer shall not be responsible for any costs or expenses in connection with the decommissioning or demolition of the Facility, or (subject to the allocation of liabilities as set forth in the Option Agreement, or the purchase agreement for the Right of First Offer or Right of First Refusal) any environmental or 132 of 489

44 other liability associated with the decommissioning or demolition without regard to the timing or cause of the decommissioning or demolition.

Section 5.8 Quarterly Certification . On a quarterly basis from and after the Commercial Operation Date, Seller shall, within fourteen (14) days following the end of each calendar quarter, provide Buyer with a quarterly certification signed by an authorized representative of Seller (a) certifying that there exists no Default or any event that, after notice or with the passage of time or both, would constitute a Default, or that a Default exists or may exist after notice or with the passage of time or both; (b) certifying that the representat ions and warranties set forth in this Agreement remain true and correct as of the date of such certification; and (c) attesting to the Facility Debt after the Commercial Operation Date as being equal to seventy percent (70%) of the Facility Cost ; provided, that if the proceeds of the sale of PTCs are being financed by the Facility Lenders, during such PTC financing period, ninety percent (90%) of the Facility Cost, in each case, as of such date, which certificate shall be accompanied by supporting documentation in reasonable detail, including Seller’s most recent annual and quarterly financial statements and a statement of the Facility’s then -current Facility Debt and Facility Cost. If a Default or any event that, after notice or with the passage of time or both, would constitute a Default, exists as of such date, Seller shall list, in detail, the nature of the event, the period during which it has existed and the actions that Seller has taken, or proposes to take with respect to such event.

Section 5.9 Taxes. Seller shall pay or cause to be paid all Taxes on or with respect to the Energy, Capacity Rights and any Environmental Attributes or any other transactions arising before or at the Point of Delivery. Buyer shall pay or cause to be paid all Taxes on or with respect to the Energy and any Environmental Attributes or any other transactions from (but excluding) the Point of Delivery. If Seller is required by a Requirement of Law to remit or pay Taxes that are Buyer’s responsibility hereunder, Buyer shall promptly reimburse Seller for such Taxes. If Buyer is required by Requirement of Law to remit or pay Taxes that are Seller’s responsibility hereunder, Buyer may deduct such amounts from payments to Seller hereunder. If Buyer elects not to deduct such amounts from Seller’s payments, Seller shall promptly reimburse Buyer for such amounts upon request. Nothing shall obligate or cause a party to pay or be liable to pay any Taxes for which it is exempt under law. A Party that is exempt at any time and for any reason from one or more Taxes shall bear the risk that such exemption shall be lost or the benefit of such execution is reduced.

Section 5.10 Environmental Credits. If at any time Seller becomes obligated to obtain pollution or environmental credits or offsets in order to own, operate or maintain the Facility in compliance with the applicable Requirements of Law, Seller shall obtain such credits or offsets (a) which credits or offsets shall be in Seller’s own name, and (b) obtained at Seller’s sole cost and 133 of 489

45 expense. In no event shall Seller use any Environmental Attributes to satisfy the foregoing obligation.

ARTICLE VI

PURCHASE AND SALE OF POWER
Section 6.1 Purchases by Buyer. Seller shall deliver to Buyer, and Buyer, or its designee, shall receive from Seller under this Agreement, the Delivered Energy at the Point of Delivery.
(a) Following the Commercial Operation Date, Seller shall make available, schedule and deliver, and Buyer shall accept and purchase, the Delivered Energy for each Contract Year during the Delivery Term at the rate set forth in Appendix A. (b) For Excess Energy, Buyer shall pay Seller the Excess Energy Price in accordance with Appendix A.
(c) Notwithstanding any other provision hereof, in no event shall Seller deliver at the Point of Delivery a quantity of Delivered Energy (in MWhs ac) in any hour that exceeds (i) the Contract Capacity (expressed in MWs ac) multiplied by (ii) one hour.

Section 6.2 Point of Delivery. Seller shall deliver all Delivered Energy (and Replacement Energy, if any) to Buyer at the Point of Delivery (or, with respect to Replacement Energy, such other location as reasonably requested by Buyer or otherwise mutually agreed upon in writing by the Parties), and Buyer, or its designee, shall receive all such Delivered Energy and Replacement Energy from Seller at the Point of Delivery (or, with respect to Replacement Energy only, such other location as reasonably requested by Buyer or otherwise mutually agreed upon in writing by the Parties), each as measured in accordance with Section 11.6(a).

Section 6.3 Seller’s Failure. Except as provided in Article IX, in no event shall Seller have the right to procure energy from sources other than the Facility for sale and delivery pursuant to this Agreement. During the Delivery Term and subject to the terms and conditions of this Agreement, all of the Delivered Energy shall be dedicated to Buyer; provided that Seller may sell to any third- party purchaser (a) Delivered Energy sold as provided under Section 7.5(e), (b) Delivered Energy that is curtailed due to a Force Majeure event t hat prevents Buyer from receiving such Delivered Energy at the Point of Delivery or (c) Delivered Energy that is not accepted by Buyer at the Point of Delivery. Unless excused as set forth herein, if Seller sells to a third party all or any part of the Delivered Energy, Environmental Attributes or Capacity Rights required to be delivered by Seller under this Article VI, Article VIII or Article X, then Seller shall pay Buyer, on the date payment would otherwise be due to Seller, an amount for each MWh of such energy delivered to a third- party equal to the positive difference, if any, obtained by subtracting (i) the price per MWh that would have been payable by Buyer for the Delivered Energy, from (ii) the greater of (A) the value actually received by Seller for the Energy and associated Environmental Attributes in connection with the third-party transaction, or (B) the price actually paid by Buyer to obtain Replacement Energy the “Third Party Sale Replacement Price”). 134 of 489

46 Buyer shall provide Seller prompt written notice of the Third Party Sale Replacement Price, together with back-up documentation.

Section 6.4 Buyer’s Failure. Unless excused by Seller’s failure to perform or Force Majeure, and except during a System Emergency or any period during any curtailment under Section 7.5, if Buyer fails to receive at the Point of Delivery all or any part of the Delivered Energy or Replacement Energy required to be received by Buyer under this Article VI or Article IX, Buyer shall, on the date payment would otherwise be due to Seller, pay Seller Cover Damages, and such Cover Damages shall be Seller’s sole and exclusive remedy; provided, that Seller shall use commercially reasonable efforts to resell any such Delivered Energy that Buyer failed to receive, it being agreed that there may be no commercially reasonably manner in which Seller can effect any such sales, and provided that Seller shall not be required to sell Delivered Energy to third parties to the extent such sale would require Seller to incur costs of Transmission Services beyond the Point of Delivery to effectuate such sales in excess of the revenue to be received for such sales.

Upon Buyer’s request, Seller shall provide documentation evidencing Seller’s commercially reasonable efforts to resell Delivered Energy in accordance with the preceding sentence, including the financial terms of any such sale or contemplated sale and the costs of Transmission Services related thereto. “Cover Damages” means the positive difference, if any, obtained by subtracting (i) the amount received by Seller, acting in a commercially reasonable manner, for the resale of any Delivered Energy less t he costs of Transmission Services beyond the Point of Delivery incurred by Seller to effect such sales (or, absent any such sales despite using commercially reasonable efforts to procure such sales, zero dollars ($0)), from (ii) the amount that would have been payable by Buyer for such Delivered Energy not received by Buyer; provided that Cover Damages per MWh shall not exceed the Full Contract Price per MWh specified on Appendix A and in no event will Seller be required to make a payment to Buyer in respect of Cover Damages.

Seller shall provide Buyer with prompt written notice of the Cover Damages together with back-up documentation.

Section 6.5 Guaranteed Delivered Energy . Seller shall deliver the Guaranteed Delivered Energy to Buyer at the Point of Delivery measured and calculated in accordance with Section 11.6(a), provided that the amount of Guaranteed Delivered Energy shall be reduced by the amount of Delivered Energy reasonably determined by the Parties that Seller is unable to generate, Schedule, or deliver to the Point of Delivery due to (i) a System Emergency, (ii) an event of Force Majeure, (iii) Buyer’s failure to Schedule the Delivered Energy from the Poi nt of Delivery, (iv) periods during which generation or transmission is curtailed or interrupted for whatever reason on Buyer’s side of the Point of Delivery, including System Emergencies, events of Force Majeure, reliability, congestion or over -generation or (v) Buyer’s request, in Buyer’s sole discretion, to curtail the Delivered Energy for any economic reason; provided, further, that such reductions shall be calculated by the Parties reasonably estimating the amount of Delivered Energy that would have 135 of 489

47 been delivered to Buyer at the Point of Delivery had any of the circumstances described in (i)-(v) not occurred.

ARTICLE VII
TRANSMISSION AND SCHEDULING; TITLE AND RISK OF LOSS
Section 7.1 In General.
(a) Seller shall use all reasonable efforts consistent with Prudent Utility Practices to maximize the output of the Facility. Seller shall arrange, and shall bear all risks associated with, delivery of all Delivered Energy to the Point of Delivery, including that Seller shall arrange and pay for the interconnection of the Facility to the grid and any Transmission Services required to deliver Delivered Energy to the Point of Delivery, including interconnection costs, charges related to control area services, in advertent energy flows, transmission losses, and the transmission of Delivered Energy up to the Point of Delivery. In the event Seller procures transmission to sell Energy to a third party, Seller shall be responsible for any costs or charges associated therewith.
(b) Buyer shall be obligated to pay for all Delivered Energy as invoiced under Section 11.1(e), and Buyer shall arrange for, and shall bear all risks associated with, acceptance and transmission of Delivered Energy from the Point of Delivery, including that Buyer shall arrange and be responsible for Transmission Services from the Point of Delivery, and shall Schedule or arrange for Scheduling and transmission services with its Transmission Providers.

Section 7.2 Forecasting and Scheduling of Energy.
(a) The Parties agree to the following scheduling procedures: (i) Seller shall notify Buyer and Buyer’s Agent on a forward (monthly, weekly and day-ahead) basis, as provided in this Section 7.2 and, as needed, in real time, of any reduction in availability of the Facility that is ten percent (10%) or more of Contract Capacity; (ii) Seller shall make available, to Buyer and Buyer’s Agent, an application programming interface through which Buyer and Buyer’s Agent can access the forecasted output for the Facility in increments not to exceed one (1) minute averages via an application programming interface , subject to reasonable approval by Buyer ; (iii) Seller shall make available to Buyer and Buyer’s Agent real -time data that shall be automatically telemetered to Buyer’s or Buyer’s Agent’s supervisory control and data acquisition (“SCADA”) system in accordance with Section 7.3(a); and (iv) Buyer, Buyer’s Agent, each Participating Member and the Transmission Provider shall have the right, in accordance with Section 7.5, to contact Seller and require that the Facility be curtailed or to directly curtail the Facility (collectively, the “Scheduling Procedures”), which may be modified, from time to time, by written agreement of the Authorized Representatives of both Parties, including with respect to Buyer, Buyer’s Agent, in order to comply with all applicable requirements, including those of the Transmission Provider, WECC or any “Balancing Authority” (as defined by NERC) involved in the Scheduling of Energy under this Agreement. The Authorized Representatives shall promptly cooperate with respect to any reasonably necessary and appropriate modifications to Scheduling Procedures.
136 of 489

48 (b) Seller or Seller’s Authorized Representative shall be responsible for providing a forecast of deliveries of Delivered Energy during the Delivery Term consistent with the Scheduling Procedures, as may be updated from time to time in accordance with this Section 7.2(b). All generation Scheduling and Transmission Services shall be performed in accordance with the applicable NERC and WECC operating policies, criteria, and any other applicable guidelines, including any applicable NERC Reliability Standards. Se ller shall fulfill any contractual, metering and interconnection requirements so as to be able to deliver Delivered Energy to the Point of Delivery.
(c) No later than forty -five (45) days before the beginning of each Contract Year, Seller or Seller’s Authorized Representative shall provide, or cause to be provided, a non-binding forecast of each month’s average-day deliveries of Delivered Energy, by hour, for the following eighteen (18) months.
(d) Ten (10) Business Days before the beginning of each month, Seller or Seller’s Authorized Representative shall provide, or cause to be provided, a non- binding forecast of each day’s average-day deliveries of Delivered Energy, by hour, for the following month. (e) By 4:30 AM Pacific Prevailing Time (“PPT”) on the WECC pre-scheduling day immediately preceding the date of delivery of Delivered Energy during the Agreement Term, Seller or Seller’s Authorized Representative shall provide, or cause the Facility’s scheduling coordinator to provide, Buyer or Buyer’s Agent with a copy of a non- binding hourly (or as then-appropriate) forecast of deliveries of Delivered Energy for each hour of the next date of delivery of such Delivered Energy (the “Day-Ahead Schedule”). The Day-Ahead Schedule shall include all forecasted Delivered Energy. If the WECC pre -scheduling day pertains to multiple dates of delivery, then this requirement shall apply to each of those dates. (f) During the Delivery Term, if Seller, Seller’s Authorized Representative, or the Facility’s scheduling coordinator becomes aware of changes to its Day-Ahead Schedule due to current conditions (other than commercial considerations), including unscheduled outages, weather or environmental conditions, a Forced Outage or a scheduling change imposed by Buyer or a Transmission Provider that results in a change to the Facility’s deliveries (whether in part or in whole), Seller or Seller’s Authorized Representative, as applicable, shall cause the Facility’s scheduling coordinator to: (i) promptly notify Buyer of any and all changes to the Day- Ahead Schedule via telephone of any reduction in availability of the Facility that is ten percent (10%) or more of Contract Capacity, and (ii) provide a revised schedule as soon as possible in electronic format, via an internet website accessible to Buyer, Buyer’s Authorized Representative, Buyer’s Agent, Buyer’s real time operators, and any other designated Scheduling representative of Buyer, or via email in the form of an excel spreadsheet (or any combination thereof). (g) Seller shall provide to Buyer, or Buyer’s Agent, or cause to be provided, such additional forecasts or other information as may be reasonably requested by Buyer or Buyer’s Agent.
137 of 489

49 Section 7.3 Real-Time Data Requirements.
(a) No later than the first date on which Startup and Test Energy is received by Buyer from the Facility, Seller shall have installed (or caused to have installed) and shall provide primary and backup items for each component of the SCADA related equipment listed below (items (i) through (v) below, collectively, “ Seller’s SCADA Integrated Components ”). Seller shall coordinate the installation and maintenance of such Seller’s SCADA Integrated Components under the Interconnection Agreement. Seller shall install, or have installed, all of the following Seller’s SCADA Integrated Components in a secure NERC interconnection facility (as applicable):
(i) the Project Meter;
(ii) Plant DCS Controller for the Facility;
(iii) RTU, if separate from DCS Controller;
(iv) Internal networking to accommodate transfer to Buyer’s RTU designated in (d) below; and
(v) Telecommunications equipment and lines from the Facility to the Point of Delivery.
(b) Throughout the Delivery Term, Seller shall provide Buyer with the following data on a real-time basis:
(i) Read-only access to Energy information collected by the SCADA system for the Facility, including with respect to the following:
(A) Read-only access to all primary and secondary Electric Metering Devices installed, owned and operated by Seller at the Facility (the “Seller’s Check Meters”);
(B) Read-only access to meteorological and pyranometer
measurements, the parameters of which are provided in Appendix G; and (C) MW capacity of the Facility based upon inverter and panel availability, and any other Facility availability information. (c) If a Participating Member is unable to access its SCADA system (i) due to a failure of Seller’s or its Subcontractors’ equipment or systems , or operation or maintenance thereof (each such inability, a “ Seller Caused Access Failure”) or (ii) for reasons other than a failure of such Participating Member’s equipment or systems, or operation or maintenance thereof, including a Seller Caused Access Failure (each such inability, an “Access Failure”), in each case, for a continuous 15-minute period, Buyer shall provide prompt written notice to Seller, and upon written request from Buyer:
(i) Seller shall provide to Buyer energy output information on a continuous basis and pyranometer and meteorological measurements, each in four (4) -second 138 of 489

50 intervals in the form of a one (1) -hour flat file to Buyer through a secure file transport protocol system with an e-mail back-up for each flat file submittal. Seller shall store such information for up to three (3) months after delivery thereof to Buyer; (ii) Following receipt by Seller of notice of a Seller Caused Access Failure under Section 7.3(c), Seller shall pay Buyer $1,000 per day as liquidated damages, and not as a penalty, for each day following the first twenty-four (24) hours after receipt of written notice from Buyer of such Seller Caused Access Failure (which notice may be provided via email) until the Seller Caused Access Failure is resolved; and
(iii) Within 48 hours following receipt by Seller of notice of an Access Failure under Section 7.3(c), Seller shall undertake, and coordinate with Buyer, to re -establish real-time data access to the Facility’s SCADA system.

The Parties acknowledge and agree that the damages that Buyer would incur due to the failure to timely resolve a Seller Caused Access Failure, as described in clause (ii) above, would be difficult or impossible to predict with certainty, and it is impractical and difficult to assess actual damages in those circumstances and, therefore, the payment of the liquidated damages described in clause (ii) is a fair and reasonable remedy for such damages. The provision of such liquidated damages shall be in lieu of actual damages for the occurrence of any Seller Caused Access Failure hereunder, but shall not limit Buyer’s rights to (i) exercise any right or remedy available under this Agreement or at law or in equity for any other breach or default occurring concurrently with, before, or after any such Seller Caused Access Failure, or (ii) recover any damages not directly attributable to any such Seller Caused Access Failure.
(d) All data points shall be provided through the Facility’s DCS that is capable of interfacing with both a primary RTU for the LADWP automatic generation control and a secondary RTU for LADWP’s back -up automatic generation control. Main automatic general control and back-up automatic generation control shall be connected to independent transports to prevent single point of failure. Communication protocols shall be Distributed Network Protocol (“DNP”) 3.0. The automatic generation control RTU shall have inter face capability for a Participating Member’s historian (e.g., PI historian). Seller shall compile and deliver to Bu yer a monthly report in the form of Appendix W, confirming the information reported in real-time under Section 7.3(b)(i).
(e) Seller shall provide data required under this Section 7.3 in accordance with the following protocols: (i) DNP 3.0 TCP/IP for primary and secondary communications between the Facility and Buyer, (ii) DNP 3.0 Serial for backup communication between the Facility and Buyer, (iii) DNP 3.0 for communication between the Facility’s DCS and intelligent electronic devices (e.g. SEL relays, SEL meters, and Areva relays), and (iv) any specific OSI used by Buyer or Buyer’s Agent to execute DNP 3.0 configurations.
(f) A draft SCADA points list shall be provided to Buyer’s Agent for review and SCADA data maps of any equipment polled by the Facility plant controller, and the Facility’s distributed control system shall be provided to Buyer no later than one hundred twenty (120) days following the Construction Commencement Milestone. The Facility plant controller and 139 of 489

51 distributed controlled system shall have automatic and remote shutdown via SCADA in case of catastrophic system failure.
(g) At any time during the Delivery Term, Buyer may elect to install check meters in addition to the Electric Metering Devices, at its cost and expense and in accordance with Prudent Utility Practices (the “Buyer Check Meters”). Buyer shall, at its own expense, inspect and test its Buyer Check Meters upon installation and annually thereafter in accordance with Prudent Utility Practices. Buyer shall provide Seller with reasonable advance notice of, and permit a representative of Seller to witness and verify, such inspections and tests; provided, however, that Seller shall not unreasonably interfere with or disrupt Buyer’s testing activities for the Buyer Check Meters.

Section 7.4 Maintenance and Scheduled Outages.
(a) Seller will cooperate in good faith to amend this Section 7.4 per Buyer’s maintenance scheduling requests consistent with Prudent Utility Practices. (b) Buyer and Seller shall cooperate to minimize Scheduled Outages of the Facility during certain periods of each Contract Year (not to exceed twelve (12) weeks per Contract Year), but in accordance with Prudent Utility Practices (such periods of time, the “ Major Maintenance Blockout”). No later than one hundred twenty (120) days prior to the scheduled Commercial Operation Date and the commencement of each Contract Year thereafter, Buyer shall provide Seller with its specified Major Maintenance Blockout. In t he absence of such updated notification, the most recent previous Major Maintenance Blockout notification shall apply. Seller shall minimize its Scheduled Outages during the Major Maintenance Blockout in a manner that is agreeable to both Parties and is consistent with Prudent Utility Practices. (c) No later than sixty (60) days prior to the scheduled Commercial Operation Date and the commencement of each Contract Year thereafter, Seller shall provide Buyer or Buyer’s Agent with its non-binding written projection of all Scheduled Outages for the succeeding three (3) calendar years (the “Scheduled Outage Projection”) reflecting a minimized schedule of scheduled maintenance during the Major Maintenance Blockout, which Scheduled Outage Projection shall at a minimum include all Scheduled Outages relating to (i) any Scheduled Outage related to compliance with any NERC Reliability Standards that pertain to Scheduled Outages for bulk electric system elements applicable to the Facility, or any portion thereof, and (ii) any Scheduled Outage in excess of 20 MW of Contract Capacity during daylight hours . In addition, the Scheduled Outage Projection shall include information concerning all projected Scheduled Outages during such period, including (A) the anticipated start and end dates of each Scheduled Outage; (B) a description of the maintenance or repair work to be performed during the Scheduled Outage; and (C) the anticipated MW capacity of the Facility, if any, during the Scheduled Outage.

Seller shall notify Buyer or Buyer’s Agent of any change in the Scheduled Outage Projection as soon as practicable, but in no event later than thirty (30) days prior to the occurrence of the Scheduled Outage activity. Seller will use commercially reasonable efforts to accommodate reasonable requests of Buyer with respect to the timing of Scheduled Outages and Seller will, to the extent consistent with Prudent Utility Practices, coordinate Scheduled Outages to coincide with planned transmission outages. Without limiting the generality of the foregoing, Buyer shall have 140 of 489

52 the right to cancel or delay any Scheduled Outage due to peak load conditions by providing notice to Seller at least three weeks in advance thereof; provided, that Seller shall not be obligated to agree to such cancellation or delay if such cancellation or delay would impact Seller’s warranty of the equipment, cause the Facility to fail to comply with any Requirements of Law or Prudent Utility Practice, or cause unreasonable financial impact to the Facility. In the event of a System Emergency, at Buyer’s request Seller shall make all reasonable efforts to reschedule any Scheduled Outage previously scheduled to occur during the System Emergency. (d) In the event of a Forced Outage affecting at least ten percent (10%) of the installed capacity of the Facility, Seller shall notify Buyer or Buyer’s Agent within not more than one (1) hour after the commencement of the Forced Outage and, within seven (7) days thereafter, provide detailed information concerning the Forced Outage, including (i) the start and anticipated end dates of the Forced Outage; (ii) a description of the cause of the Forced Outage; (iii) a description of the maintenance or repair work to be performed during the Forced Outage; and (iv) the anticipated MW capacity of the Facility, if any, during the Forced Outage (such notice, the “Forced Outage Capacity Notification”). Seller shall take all reasonable measures and exercise commercially reasonable efforts to avoid Forced Outages and to limit the duration and extent of any such outages. Seller shall notify Buyer no later than two (2) hours (or such shorter period as may be mutually agreed) prior to commencing recommissioning of the Facility, as applicable, following the end of any such Forced Outage.
(e) With respect to forecasted Scheduled Outages:
(i) Seller shall limit forecasted Scheduled Outages of the Facility that are necessary to comply with NERC Reliability Standards to less than 30 days within any Contract Year; and
(ii) Seller shall limit forecasted Scheduled Outages of the Facility during daylight hours to less than 30 days within any Contract Year, except in unanticipated circumstances (e.g., Force Majeure causing casualty loss) with Buyer’s consent, such consent not to be unreasonably withheld.

Section 7.5 Curtailments; Deemed Delivered Energy.
(a) Buyer may require Seller to reduce deliveries of all or any portion of the Delivered Energy, and Seller shall comply with any such requirement, at any time and for the duration specified by the Buyer’s Agent in a notice to Seller, including for curtailments required due to: (i) a System Emergency (other than due to a Force Majeure event as described in (ii)); (ii) an event of Force Majeure on Buyer’s side of the Point of Delivery; or (iii) a Seller Caused Access Failure or other communication failure to the extent caused by a failure of Seller or its Subcontractors (curtailments under the foregoing subsections (i)-(iii), “Non-Compensable Curtailments”); (iv) system improvements or scheduled and unscheduled repairs or maintenance on Buyer’s side after the Point of Delivery (other than due a Force Majeure event as described in (ii) above); (v) Buyer’s failure to Schedule the Delivered Energy from the Point of Delivery not due to a Seller -caused event or System Emergency , including as a result of economic offers and self-schedules of the Delivered E nergy into any market; (v i) Buyer’s request, in Buyer’s sole discretion, to curtail the Delivered Energy for any economic reason; or (vii) an Access Failure or 141 of 489

53 other communication failure that is n either a Seller Caused Access Failure nor other communication failure caused by a failure of Seller or its Subcontractors (curtailments under the foregoing subsections ( iv)-(vii), “ Compensable Curtailments ”); provided, that Seller may continue to generate Energy from the Facility to the extent Seller resells such Energy to third parties in accordance with Section 7.5(e).
(b) During the Agreement Term, the Parties shall reasonably estimate the amount of curtailed Delivered Energy that would have been realized had any of the curtailments set forth in Section 7.5(a) not occurred in accordance with Section 7.5(a) (“Deemed Delivered Energy”).
(c) Buyer shall not pay Seller for any Non-Compensable Curtailments. Buyer shall pay Seller for Deemed Delivered Energy during Compensable Curtailments. (d) The Contract Price that Buyer shall pay Seller for Deemed Delivered Energy associated with Compensable Curtailment is as follows: (i) Deemed Delivered Energy that is not Excess Energy at the Full Contract Price, and (ii) Deemed Delivered Energy that is Excess Energy at the applicable Excess Energy Price, plus (iii) if Seller claims Production Tax Credits with respect to the Facility , the amount equal to (A) the PTC rate applicable to the Project determined pursuant to Section 45 or 45Y of the Code , as appli cable, as in effect during the applicable curtailment, converted to a dollar per MWh basis ; provided, that if the Contract Price is set at the amount set forth in Appendix A, Section 2.c., and the Facility qualifies for any energy community bonus adder for the federal tax credits, then (A) Buyer need not pay the portion of the PTC curtailment compensation attributable to the Energy Community Adder unless and until the EC Adder Payment with respect to the EC Adder Payment Period in which the Compensable Curtailment occurs has been paid to Buyer and (B) the amounts paid by Buyer for the PTC curtailment compensation attributable to the Energy Community Adder shall be net of 50% of the Energy Community Adder associated with the Compensable Curtailment , divided by one minus the sum of the then highest marginal combined federal and state corporate income tax rate, expressed as a decimal (taking into account the deductibility of state taxes for federal income tax purposes). For the avoidance of doubt, any curtailme nt occurring prior to the occurrence of the Commercial Operation Date shall be deemed a Non -Compensable Curtailment. Seller shall use reasonable commercial efforts to sell the curtailed Delivered Energy arising during any Compensable Curtailments, including the Environmental Attributes associated therewith, to third parties, it being agreed there may be no commercially reasonable manner in which Seller can effect any such sales, and provided that Seller shall not be required to sell Delivered Energy to thi rd parties to the extent such sale would require Seller to incur any costs of Transmission Services beyond the Point of Delivery that are necessary to effectuate such sales. Any proceeds from the sale of any curtailed Delivered Energy to a third- party purchaser shall be the property of Seller, and Buyer shall pay Seller the positive difference between the applicable price for such Delivered Energy set forth in Appendix A and the positive third-party sales price for such Delivered Energy, including the sale of any Deemed Delivered Energy. In no event shall Seller be required to remit the proceeds of such sales to Buyer.
(e) Consistent with the requirements of Section 7.3, Seller shall provide the capability to implement curtailments and adjust curtailment amounts in real- time by means of 142 of 489

54 setpoints received from the SCADA system. Seller shall install sufficient measuring equipment at the Facility to collect data necessary to reasonably determine the amount of curtailed Delivered Energy, including any Deemed Delivered Energy. Seller shall install pyranometers and related measurement equipment around the Facility or in conjunction with the solar panels comprising the Facility to provide the capability of measuring and recording rep resentative solar data in accordance with Appendix G, which data, in conjunction with actual solar panel availability and capability, shall be used to calculate the curtailed Delivered Energy, including any Deemed Delivered Energy.

Section 7.6 Title; Risk of Loss. As between the Parties, Seller shall be deemed to be in exclusive control (and responsible for any damages or injury caused thereby) of all Delivered Energy and Replacement Energy prior to and at the Point of Delivery, and Buyer shall be deemed to be in exclusive control (and responsible for any damages or injury caused thereby) of all Delivered Energy and Replacement Energy from the Point of Delivery. Seller warrants that it will deliver all Energy, Capacity Rights, and Environmental Attributes to Buye r free and clear of all Liens created by any Person other than Buyer. Title to and risk of loss as to all Delivered Energy, Replacement Energy, Capacity Rights and Environmental Attributes shall pass from Seller to Buyer at the Point of Delivery; provided, however, that title and risk of loss as to any Replacement Energy the Parties agree shall be delivered to a point or points of interconnection other than the Point of Delivery, and all of the associated Environmental Attributes therewith, shall pass from Seller to Buyer upon delivery of such Replacement Energy to such point or points.

ARTICLE VIII
ENVIRONMENTAL ATTRIBUTES; EPS AND RPS COMPLIANCE
Section 8.1 Transfer of Environmental Attributes . In addition to the agreement between Buyer and Seller to purchase and sell Energy on the terms and conditions set forth herein, Seller shall transfer to Buyer, and Buyer shall receive from Seller, all right, title, and interest in and to all Environmental Attributes, free and clear of all Liens, whether now existing or acquired by Seller or that hereafter come into existence or are acquired by Seller during the Agreement Term, for all Facility Energy and Replacement Energy. Seller agrees to transfer and make such Environmental Attributes available to Buyer immediately to the fullest extent allowed by applicable law upon Seller’s production or acquisition of such Environmental Attributes. Seller represents and covenants that it has not assigned, transfer red, conveyed, encumbered, sold or otherwise disposed of (other than Liens on the proceeds of the Environmental Attributes in favor of Facility Lender) and will not in the future assign, transfer, convey, encumber, sell or otherwise dispose of all or any portion of such Environmental Attributes to any Person other than Buyer or attempt to do any of the foregoing with respect to any of the Environmental Attributes. The consideration for the transfer of Environmental Attributes is contained with the relevant prices for Delivered Energy, as set forth in Appendix A . Seller shall be responsible for : (a) matching, in accordance with all current WREGIS Operating Rules, all available and applicable NERC e- tags pertaining to the corresponding R enewable Energy Certificate before such R enewable Energy Certificate is transferred to Buyer in WREGIS per the terms of this Agreement ; (b) matching all available and applicable NERC e-tags to the meter data on an hourly basis; (c) providing the data to Buyer at the time of Renewable Energy Certificate transfer in the same format as the CEC-RPS- 143 of 489

55 Hourly Form, or any successor, as specified in the Guidebook; and (d) meeting any Qualified Reporting Entity (as defined by WREGIS) responsibility.

Section 8.2 Reporting of Ownership of Environmental Attributes . During the Agreement Term, Seller shall not report to any Person that the Environmental Attributes granted hereunder to Buyer belong to any Person other than Buyer, and Buyer may report under any program that such Environmental Attributes purchased hereunder belong to it.

Section 8.3 Environmental Attributes . Upon Buyer’s request, Seller shall take all actions and execute all documents or instruments necessary under the Guidebook and all Requirements of Law, bilateral arrangements or other voluntary Environmental Attribute programs of any kind, as applicable, to maximize the attribution, accrual, realization, generation, production, recognition and validation of Environmental Attributes throughout the Agreement Term.

Section 8.4 Use of Accounting System to Transfer Environmental Attributes . In furtherance and not in limitation of Section 8.3, Seller shall use WREGIS or any successor system to evidence the transfer of any Environmental Attributes considered Renewable Energy Credits under applicable law or any voluntary program (“WREGIS Certificates”) associated with Facility Energy or Replacement Energy in accordance with WREGIS reporting protocols and shall register the Facility with WREGIS. After the Facility is registered with WREGIS, at Buyer’s option, Seller shall, to the extent permissible under WREGIS rules, transfer WREGIS Certificates using the One- time Inter-Accounts Transfer method, as described in WREGIS Operating Rules, from Seller’s WREGIS account to up to three WREGIS accounts, as designated by Buyer’s Authorized Representative. Seller shall be responsible for the WREGIS expenses associated with registering the Facility, maintaining its account, WREGIS Certificate issuance fees, and transferring WREGIS Certificates to Buyer or Buyer’s Authorized Representative, or any other des ignees, and Buyer shall be responsible for the WREGIS expenses associated with maintaining its account, or the accounts of its designees, if any, and subsequent transferring or retiring of WREGIS Certificates.

Forward Certificate Transfers shall occur monthly based on the certificate creation time -line established by the WREGIS Operating Rules then in effect. Seller shall be responsible for, at its expense, validating and disputing data with WREGIS prior to WREGIS Certificate creation each month. In the event that WREGIS is not in operation, or WREGIS does not track Seller’s transfer of WREGIS Certificates to Buyer, Buyer’s Authorized Representative, or its designees for purposes of any Renewable Energy Certificates attributed, accrued, realized, generated, produced, recognized or validated relative to the Facility Energy or Replacement Energy, or Buyer chooses not to use WREGIS for any reason, then without limiting Buyer’s rights under Section 11.2, Seller shall document the production and transfer of Renewable Energy Certificates under this Agreement by delivering to Buyer an attestation in the form set forth in Appendix D for the Renewable Energy Certificates produced by the Facility, or Replacement Energy, measured in whole MWh, or by such other method as Buyer may designate. If any of the foregoing is or becomes inconsistent with the WREGIS rules, the Parties shall reasonably cooperate to amend the 144 of 489

56 foregoing procedures in a manner reasonably requested by Buyer consistent with the then-effective WREGIS rules.

Section 8.5 Further Assurances. If WREGIS (or any successor thereto) is no longer available to provide the services described in Section 8.4, Seller shall, until such time as a substitute provider reasonably acceptable to both Parties is available to provide such services, document the production of Environmental Attributes by delivering with each invoice to Buyer an attestation for the Enviro nmental Attributes associated with Facility Energy or included with Replacement Product, if any, for the preceding Month in the form of the attes tation set forth as Appendix D. At Buyer’s request, the Parties shall execute all such documents and instruments and take such other action in order to effect the transfer of the Environmental Attributes specified in this Agreement to Buyer’s Authorized Representatives as Buyer may re asonably request. In the event of the promulgation of a scheme involving Environmental Attributes administered by CAMD, upon notification by CAMD that any transfers contemplated by this Agreement will not be recorded, the Parties shall promptly cooperate in taking all reasonable actions necessary so that such transfer can be recorded. Each Party shall promptly give the other Party copies of all documents it submits to CAMD to effectuate any transfers.

Section 8.6 RPS, CEC and EPS Compliance. Seller warrants that, upon achievement of Commercial Operation, the Facility will be, and shall throughout the Agreement Term remain, (a) RPS Compliant, (b) CEC Compliant, and (c) if applicable, EPS Compliant (“ Compliant”).

Subject to Section 8.7, Seller shall assume all risks, costs or expenses associated with, arising from, or resulting from, its obligation to keep the Facility Compliant, including any costs or expenses incurred by Seller and paid directly to any third parties in connection with or related to greenhouse gas emissions reporting, WREGIS, or maintenance of a CEC certification and verification. From time to time and at any time requested by Buyer, Seller will furnish to Governmental Authorities, Buyer or any other Person designated by Buyer, all certificates and other documentation reasonably requested by Buyer in order to assist Buyer in qualifying the Facility as Compliant. As used in this Section 8.6 and in Section 8.7, the phrase “if applicable, EPS Compliant” (or similar phrases), mea ns that EPS Laws (i) are applicable to the Facility or to this Agreement, and (ii) require that the Facility be EPS Compliant.

Section 8.7 Change in Law.
(a) If a Change in Law occurs after the Commercial Operation Date that causes the Facility to cease to be Compliant, then Seller shall (i) first, take all commercially reasonable actions to bring the Facility back into Compliance to satisfy Seller’s warranty and obligations under Section 8.6, including incurring costs in an aggregate amount up to Eight Million One Hundred Thousand Dollars ($8,100,000) in the aggregate throughout the Term (the “Compliance Expenditure Cap”), and (b) thereafter, take such actions as may be necessary to cause the Facility to remain Compliant. For the avoidance of doubt, any costs or expenditures for EIM or EDAM compliance incurred by Seller under Section 8.7(d) shall not be counted towards the Compliance Expenditure Cap. If after a commercially reasonable period of time after such C hange in L aw, Seller reasonably determines that such efforts are reasonably likely to require Seller to incur costs in excess of the Compliance Expenditure Cap, Seller shall provide Buyer with notice containing a detailed description of prior compliance actions, the basis for Seller’s expectation that required 145 of 489

57 compliance actions will exceed the Compliance Expenditure Cap, Seller’s projected overage (the “Excess Compliance Cost ”) and Seller’s projected timeline for successful completion of such compliance actions (an “Excess Expenditure Notice”).
(b) During any period in which the Facility is not Compliant, the Full Contract Price shall be adjusted to an amount equal to the Market Price Index (the “ Replacement Price”).

In no event will the Replacement Price be greater than the Full Contract Price. The Replacement Price shall remain in place for the remainder of the Agreement Term until the Facility is brought back into Compliance.
(c) If at any time after the earliest of (A) one hundred eighty (180) days of paying the Replacement Price under Section 8.7(b) due to a Change in Law after the Commercial Operation Date that causes the Facility to cease to be Compliant, (B) Seller’s delivery of an Excess Expenditure Notice, Buyer determines, in its reasonable discretion, that notwithstanding Seller’s commercially reasonable efforts, Seller will be unable to bring the Facility into Compliance, and neither Buyer nor Seller is willing to pay the Excess Compliance Cost, and (C) the RPS Law and EPS Law cease to be effective and are not replaced with a substantially similar program or succeeded by a regulatory regime for which the Facility qualifies and that provides Buyer with comparable benefits, then, so long as the Facility remains a non- carbon emitting resource, Seller shall be deemed to be RPS Compliant and EPS Compliant, and Buyer shall pay ninety percent (90%) of the Contract Price for the Delivered Energy; provided, that if the circumstance i n the foregoing clause (A) or clause (B) arises solely as a result of Seller’s failure to comply with its obligations under this Agreement, then Buyer may elect by notice to Seller , at its sole discretion to terminate this Agreement, without liability to either Party, except for such liabilities that accrued prior to the date of termination or that otherwise survive termination in accordance with the terms of this Agreement, and Buyer shall return the Development Security or the Performance Security, as applicable, to Seller less any amounts previously drawn by Buyer in accordance with this Agreement; provided, further, that if at any time prior to the termination of this Agreement, Buyer elects, at its sole discretion, to pay the Excess Compliance Cost, Seller shall bring the Facility back into Compliance. Once the Facility is in Compliance and during the period during which it is Compliant, Buyer shall pay Seller the Contract Price.
(d) Subject to this Section 8.7(d), Seller shall assume any risk that the Facility falls out of EIM compliance, or EDAM compliance, as applicable, and shall bring the Facility back into EIM compliance, or EDAM compliance, as applicable, should the Facility fall out of compliance with the E IM requirements, or EDAM requirements, at any time after C ommercial Operation Date and throughout the Term. If, after the Commercial Operation Date, the Facility is no longer compliant with any EIM or EDAM requirements, as applicable, as a result of Change in Law (including a change required by the Transmission Provider or Balancing Authority OATT ), Seller shall (i) first take all commercially reasonable actions to bring the Facility back to satisfy Seller obligations under Section 4.8 or otherwise in connection with participation in the EIM and EDAM, including incurring costs in an aggregate amount up to Two Million Dollars ($2,000,000) in the aggregate throughout the Delivery Term (the “ EIM Compliance Cost Cap”), and (ii) thereafter, take such actions as may be necessary to cause the Facility to remain EIM compliant and EDAM compliant. For the avoidance of doubt, any costs or expenditures for RPS Compliance or EPS C ompliance shall not be counted towards the EIM Compliance Cost Cap. If after a 146 of 489

58 commercially reasonable period of time after such C hange in Law, Seller reasonably determines that such efforts are reasonably likely to require Seller to incur costs in excess of the EIM Compliance Cost Cap, Seller shall provide Buyer with notice containing a detailed description of prior compliance actions, the ba sis for Seller’s expectation that required compliance actions will exceed the EIM Compliance Cost Cap, Seller’s projected overage (the “EIM Excess Compliance Cost”) and Seller’s projected timelin e for successful completion of such compliance actions (an “EIM Excess Expenditure Notice”). If following Seller’s delivery of an EIM Excess Expenditure Notice, neither Buyer nor Seller is willing to pay the EIM Excess Compliance Cost, then Seller shall be excused from its obligations with respect to participation in the EIM or EDAM, as applicable.

Section 8.8 Change in Market Structure. If a regionalization or other major change to the market structure of the Western Interconnection occurs during the Agreement Term (other than a Change in Law addressed in Section 8.7 above), then the Parties agree to negotiate such modifications to this Agreement as may be necessary or appropriate to enable the Parties to continue to perform their respective obligations under this Agreement, while preserving, to the maximum extent pos sible, the existing benefits, burdens, and obligations set forth herei n. Such negotiations shall commence promptly following the delivery by one Party to the other Party of a notice requesting such negotiations.

ARTICLE IX

MAKEUP OF SHORTFALL ENERGY
Section 9.1 Makeup of Shortfall.
(a) If in any Contract Year (which, with respect to ( i) the Initial Stub Year together with the first calendar year following the Initial Stub Year, and (ii) the twenty-ninth (29 th)
calendar year together with the Final Stub Year, shall be treated for purposes of this Article IX as a single Contract Year), the amount of Delivered Energy to Buyer is less than the Guaranteed Delivered Energy, as adjusted pursuant to Section 6.5, for such Contract Year (such difference in amount for such Contract Year, the “ Shortfall Energy ”), then, subject to Section 9.1(b) and Section 9.2, Seller shall remedy such shortfall by delivering Delivered Energy in excess of the Guaranteed Delivered Energy to the Point of Delivery or by delivering Replacement Energy and its Environmental Attributes at the Point of Delivery (or such other point as mutually agreed to in writing by the Parties), to Buyer in an amount equal to the Shortfall Energy during the Contract Year immediately following the Contract Year in which the Shortfall Energy a ccrues (the “Shortfall Make Up Period”). The Shortfall Make Up Period for Shortfall Energy shall be extended on a day-for-day basis to allow Seller to make-up Shortfall Energy that resulted from the occurrence of an event of Force Majeure, but , in no event longer than two (2) Contract Years following the end of the Shortfall Make Up Period. Seller shall notify Buyer if it determines at any time during a Contract Year that it will be unable to achieve the Guaranteed Delivered Energy during such Contract Year, and prior to making any delivery of Replacement Energy, Seller shall provide Buyer in writing details of the Replacement Energy, including the producing facility and its compliance status.
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59 (b) Notwithstanding the foregoing, if Seller determines that the aggregate amount of Delivered Energy over any RPS Compliance Period will be less than the sum of the Guaranteed Delivered Energy for such RPS Compliance Period, then Seller shall work with Buyer to provide, with Buyer’s approval, qualifying Replacement Energy and its Environmental Attributes in the amount of such expected shortfall during such RPS Compliance Period. If at the end of any RPS Compliance Period during the Delivery Term there is any RPS Compliance Shortfall Energy for such RPS Compliance Period, Seller shall pay to Buyer damages in accordance with Section 9.3 with respect to such RPS Compliance Shortfall Energy.

Section 9.2 Replacement Energy. Any Replacement Energy (and its Environmental Attributes) provided by Seller under this Article 9 shall provide the same Environmental Attributes, if any, as the Environmental Attributes that would have been generated by the Facility during the RPS Compliance Period for which the Replacement Energy is being provided. If Seller cures Shortfall Energy or RPS Compliance Shortfall Energy with Replacement Energy, such deliveries of Replacement Energy shall be limited to an amount that shall not, at any time, exceed a total amount of MW in excess of the Contract Capacity, including any hourly generation from the Facility, except as may be expressly agreed upon by Buyer in its sole discretion. If any Replacement Energy is provided by Seller, Buyer shall pay Seller the applicable Contract Price for such Replacement Energy (taking into account the amount of Delivered Energy delivered to Buyer in the Contract Year for which such Replacement Energy is provided) . Any Replacement Energy provided by Seller or purchased by Buyer shall be subtracted from the Shortfall Energy or RPS Compliance Shortfall Energy, as applicable, for purposes of determining the Annual Shortfall Liquidated Damages or the RPS Compliance Shortfall Liquidated Damages, as applicable, as set forth in Section 9.3. If Seller fails to deliver Replacement Energy as described above, then Buyer may purchase Replacement Energy and its Environmental Attributes, promptly notify Seller of the costs thereof, and Seller shall reimburse Buyer for its actual cos ts of such Replacement Energy and its Environmental Attributes net of the applicable Contract Price; provided, that such costs shall not exceed the Annual Shortfall Liquidated Damages or the RPS Compliance Shortfall Liquidated Damages, as applicable, as set forth in Section 9.3, with respect to such Shortfall Energy or RPS Compliance Shortfall Energy, as applicable. If Seller fails to deliver Replacement Energy as described above, and Buyer thereafter elects not to purchase Replacement Energy and its Environmental Attributes, Seller shall be responsible for Shortfall Liquidated Damages as set forth in Section 9.3. If Buyer elects to purchase Replacement Ene rgy and its Environmental Attributes, and, despite using commercially reasonable efforts, cannot purchase Replacement Energy and its Environmental Attributes, such Energy shall not be considered Deemed Delivered Energy for purposes of determining the Guaranteed Delivered Energy, and Seller shall be responsible for Shortfall Liquidated Damages as set forth in Section 9.3.

Section 9.3 Shortfall Liquidated Damages and RPS Shortfall Penalty. (a) Annual Shortfall Liquidated Damages. Subject to Section 9.3(d) , for any Shortfall Energy that has not been cured with Delivered Energy or Replacement Energy in accordance with Section 9.1 and Section 9.2, Seller shall pay Buyer, as liquidated damages, an amount for each MWh of Shortfall Energy equal to any positive difference between (i) the sum of (A) the weighted average of the Market Price Index during the Contract Year of such Shortfall Energy, weighted by hourly Delivered Energy, and (B) Green Value associated therewith, and (ii) 148 of 489

60 the Full Contract Price (the “Annual Shortfall Liquidated Damages ”) within sixty (60) days following the Shortfall Make Up Period.
(b) RPS Compliance Shortfall Liquidated Damages . Notwithstanding the foregoing and subject to Section 9.3(d), if at the end of a ny RPS Compliance Period there is any RPS Compliance Shortfall Energy, then Seller shall pay Buyer, as liquidated damages, an amount for each MWh of RPS Compliance Shortfall Energy equal to any positive difference between (i) the sum of (A) the weighted average of the Market Price Index during the ninety (90) day period prior to the end of such RPS Compliance Period, weighted by hourly Delivered Energy, and (B) Green Value associated therewith, and (ii) the Full Contract Price (the “RPS Co mpliance Shortfall Liquidated Damages ”). Seller shall pay Buyer such RPS Compliance Shortfall Liquidated Damages within ninety (90) days after the end of such RPS Compliance Period. (c) RPS Shortfall Penalty . In addition, Seller shall reimburse Buyer for any and all amounts of reasonably documented penalties or fines incurred or paid by any Participating Member as a result of such Participating Member’s noncompliance with EPS Law or RPS Law to the extent such non-compliance was caused by Seller’s failure to make up the full amount of any RPS Compliance Shortfall Energy before the end of the applicable RPS Compliance Period (the “RPS Shortfall Penalty”); provided, that the Buyer shall use commercially reasonable efforts to mitigate any such penalties or fines. The determination of the extent to which such non- compliance was caused by such Seller’s failure shall take into account energy shortfalls in the applicable RPS Compliance Period by other generating facilities owned or under contract (directly or indirectly through Buyer) by such Participating Member. (d) Notwithstanding anything herein to the contrary, (i) to the extent that Seller is responsible for RPS Compliance Shortfall Liquidated Damages with respect to any RPS Compliance Shortfall Energy and there is Shortfall Energy with respect to the last Contrac t Year in such RPS Compliance Period, then for purposes of the Annual Shortfall Liquidated Damages for such Contract Year, the Shortfall Energy for such Contract Year shall be reduced by the RPS Compliance Shortfall Energy for which RPS Compliance Shortfall Liquidated Damages have been paid, and (ii) to the extent that any Annual Shortfall Liquidated Damages have been paid with respect to any Contract Years in an RPS Compliance Period, then to the extent that any RPS Compliance Shortfall Energy exists in such RPS Compliance Period, then for purposes of the RPS Compliance Shortfall Liquidated Damages for such RPS Compliance Period, the RPS Compliance Shortfall Energy shall be reduced by the Shortfall Energy for which Annual Shortfall Liquidated Damages have been paid for Contract Years in such RPS Compliance Period; provided, that, for the avoidance of doubt, such reductions shall not result in any refund of Annual Shortfall Liquidated Damages or RPS Compliance Shortfall Liquidated Damages by Buyer. Examples of the calculation of the Annual Shortfall Liquidated Damages and RPS Compliance Shortfall Liquidated Damages are set forth in Appendix X attached hereto. (e) The Parties acknowledge and agree that the damages that Buyer would incur due to the failure to deliver the Shortfall Energy or RPS Compliance Shortfall Energy would be difficult or impossible to predict with certainty, and it is impractical and difficult to assess actual damages in those circumstances and, therefore, the payment of Shortfall Liquidated Damages and any RPS Shortfall Penalty is a fair and reasonable remedy for such damages. The provision of 149 of 489

61 Shortfall Liquidated Damages and any RPS Shortfall Penalty shall be in lieu of actual damages for the occurrence of any Shortfall Energy or RPS Compliance Shortfall Energy hereunder that is not cured with Delivered Energy or Replacement Energy. The payment of Shortfall Liquidated Damages and any RPS Shortfall Penalty shall not limit Buyer’s rights to (i) exercise any right or remedy available under this Agreement or at law or in equity for any other breach or default occurring concurrently with, before, or after the failure to meet the Guaranteed Delivered Energy, including a Default under Section 13.1(j), or (ii) recover any damages not directly attributable to such failure.

Section 9.4 Application of Replacement Energy. In the event of shortfalls in multiple Contract Years, any Replacement Energy delivered by Seller shall be applied in priority to the earliest outstanding shortfall hereunder until all shortfalls are satisfied.

ARTICLE X

CAPACITY RIGHTS
Section 10.1 Purchase and Sale of Capacity Rights. For and in consideration of Buyer entering into this Agreement, and in addition to the agreement between Buyer and Seller to purchase and sell Delivered Energy on the terms and conditions set forth herein, Seller hereby transfers to Buyer, and Buyer her eby accepts from Seller, all of the Capacity Rights. Buyer and Seller acknowledge and agree that the consideration for the transfer of Capacity Rights is contained within the relevant prices for Delivered Energy. Without limiting any of Buyer’s obligations hereunder, and excluding the Project Purchase Option, in no event shall Buyer have any obligation or liability whatsoever for any debt pertaining to the Facility by virtue of Buyer’s ownership of the Capacity Rights or otherwise.

Section 10.2 Representation Regarding Ownership of Capacity Rights . Seller represents and covenants that it has not assigned, transferred, conveyed, encumbered, sold or otherwise disposed of and will not in the future assign, transfer, convey, encumber, sell or otherwise dispose of any of the Capacity Rights to any Pers on other than Buyer, or attempt to do any of the foregoing with respect to any of the Capacity Rights. Seller shall not report to any Person that any of the Capacity Rights belong to any Person other than Buyer. Buyer may, at its own risk and expense, report to any Person that the Capacity Rights belong to it.

Section 10.3 Further Assurances . Seller shall execute and deliver such necessary documents and instruments and take such other action as Buyer may reasonably request to effect 150 of 489

62 recognition and transfer of the Capacity Rights to Buyer. Seller shall bear the costs associated therewith.

ARTICLE XI
BILLING; PAYMENT; AUDITS; METERING; ATTESTATIONS
Section 11.1 Billing and Payment . Billing, payment and settlements for the products under this Agreement, and for any other amounts or offsets due and payable by Buyer or Seller hereunder, shall be in accordance with this Article XI. (a) On or before the tenth (10th) day of the month following a month in which transactions occur hereunder, Seller shall render an invoice (including the name of the Facility, Seller’s address and the contact information of the preparer) to Buyer for the preceding month. (b) Invoices shall be in a form agreed between the Parties, and each invoice shall set forth the following data and information as applicable with respect to the relevant month:
(i) The amount of Startup and Test Energy for such month, if any. (ii) The amount of Delivered Energy (excluding Startup and Test Energy), if any.
(iii) An accounting of the amount of the Guaranteed Delivered Energy delivered as of such date for the applicable Contract Year, an accounting of new or made -up Shortfall Energy, RPS Compliance Shortfall Energy or Replacement Energy, if applicable, and a confirmation as to whether Seller met or exceeded the Guaranteed Delivered Energy, if applicable. (iv) The amount of Excess Energy, if any.
(v) The amount of reimbursement to Buyer for the purchase of Replacement Energy, if any.
(vi) The amount of hours of and Deemed Delivered Energy associated with Compensable Curtailments incurred during such period in accordance with Section 7.5, including the cumulative total of hours of and the amount of Deemed Delivered Energy associated with Compensable Curtailments incurred during the current Contract Year and the prior Contract Year, including the current billing period, and consistent with the Scheduling Procedures. (vii) Seller’s reasonable calculation of , and reasonable support ing documentation for, the amounts owed by Buyer for Deemed Delivered Energy associated with Compensable Curtailments in accordance with Section 7.5(c), (d), (e) and (f). (viii) The amount of money received by Seller, if any, associated with the sale of any curtailed Delivered Energy under Section 7.5(e). (ix) Any other payments due to Buyer or to Seller under this Agreement, including amounts due to Buyer in connection with third party sales of curtailed Energy under Section 6.3 or Section 7.5(e).
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63 (x) An accounting of the number of WREGIS Certificates delivered during the current billing period including the cumulative total during the current Contract Year, and any WREGIS Withholding Amount withheld during such the applicable month or released to Seller for which payment is due in accordance with Section 11.2. (xi) The amount of the EC Adder Payment, if any.
(xii) Any other data from time to time reasonably designated by either Party as may be relevant to the calculation of monthly invoices. (c) Monthly invoices, to the extent applicable, shall be based on meter readings as described in Section 11.6.
(d) Monthly invoices shall be sent to the address set forth in Appendix C or such other address as is provided by Buyer in writing.
(e) Using the data set forth in each monthly invoice as required under Section 11.1(b) and the applicable rates set forth in Appendix A or elsewhere herein, each invoice shall set forth in reasonable detail all calculations necessary to show the amount payable thereunder. Subject to the provisions of Section 11.2, Buyer shall pay the amounts set forth in each monthly invoice by wire transfer to the accounts designated on the invoice rendered by Seller on or before the forty -fifth (45
th) day after receipt by Bu yer of the applicable invoice. Bills or portions of bills which are not paid by the due date shall thereafter accrue interest at the Interest Rate, from and including the date payment was due until the date such payment is made. Seller shall pay to Buyer any amount owed to Buyer as set forth in Section 11.1(b)(v) and Section 11.1(b)(ix) with respect to any month at the time Seller submits its next monthly invoice to Buyer, but in no event more than forty-five (45) days after the date of the invoice showing any amount is owed to Buyer.
(f) Attestations of Environmental Attribute transfers to Buyer pursuant to Section 8.1 shall accompany monthly invoices.
(g) At least sixty (60) days prior to the expected date of the startup and testing of the Facility, Seller shall provide to Buyer for its review and approval a final form of monthly invoice to be used hereunder (based on the preliminary draft form therefor att ached hereto as Appendix T) and the Parties shall reasonably cooperate to finalize such form (including all changes as may be reasonably necessary or appropriate) prior to the date on which the first invoice is expected to be issued hereunder.

Section 11.2 WREGIS Withholding. Buyer shall have the right to withhold from any payment to Seller, for each MWh delivered under Section 6.1, an amount equal to (a) the Startup Price for Startup and Test Energy, and (b) Twenty Dollars ($20) per MWh for other Delivered Energy (such amount, the “ WREGIS Withhold Amount”) until such time as the WREGIS Certificate associated with such MWh has been credited to Buyer’s WREGIS account as set forth in Section 8.4, and Buyer shall pay the WREGIS Withhold Amount previously withheld by Buyer 152 of 489

64 for each MWh for which a WREGIS Certificate was credited to Buyer’s WREGIS account in such month pursuant to Section 11.1(b)(xi).

Section 11.3 Disputed Invoices. In the event any portion of any bill is in dispute, the undisputed amount shall be paid when due. The Party disputing a payment shall promptly notify the other Party in writing of the basis for the dispute. Disputes shall be discussed by the Authorized Representatives, who shall use reasonable efforts to amicably and promptly resolve the disputes, and any failure to agree shall be subject to resolution in accordance with Section 14.3. Upon resolution of any dispute, the required amount of payment or r efund shall be paid within ten (10) Business Days after such determination, with interest accrued at the Interest Rate from and including the due date until the date such payment or refund is paid.

Section 11.4 Right of Setoff. In addition to any right now or hereafter granted under applicable law and not by way of limitation of any such rights, each Party shall have the right at any time or from time to time, without notice to the other Party or any other Person (any such notice being hereby expressly waived) to set off against any amount due such Party from the other Party under this Agreement, including any amounts due because of breach of this Agreement or any other obligation and any costs payable by such other Party under this Agreement if and to the extent paid in the first instance by such Party.

Section 11.5 Records and Audits . Seller shall cause its direct subcontractors and suppliers providing services or supplies under this Agreement (such subcontractors or suppliers, “Subcontractors”) to maintain, and Seller shall itself maintain, all records pertaining to the management of this Agreement, related subcontracts, and performance of services pursuant to this Agreement (including all billings, costs, metering, and Environmental Attributes), in their original form, including reports, documents, deliverables, employee time sheets , accounting procedures and practices, records of financial transactions, and other evidence, regardless of form (e.g., machine readable media such as disk, tape, etc.) or type (e.g., databases, applications software, database management software, utilitie s, etc.), sufficient to verify all costs claimed to have been incurred and services performed pursuant to this Agreement. Buyer and the Authorized Auditors shall have the right to discuss any such records with Seller’s officers and independent public accountants (and by this provision Seller authorizes said accountants to discuss such billings and costs), all at such times and as may be reasonably requested, and all such records shall be retained, and shall be subject to examination and audit by the Author ized Auditors, for a period of not less than four (4) years following final payment made by Buyer hereunder, or, if the payment is made in the last year of the Delivery Term, no less than the four (4) years following the expiration or termination date of this Agreement. Seller shall make said records or, to the extent accepted by the Authorized Auditors, photographs, micro- photographs, etc. or other authentic reproductions thereof, available to the Authorized Auditors at Seller’s offices located at all reasonable times and without charge. The Authorized Auditors shall have the right to reproduce, photocopy, download, transcribe, and the like, any such records. Any information provided by Seller on machine-readable media shall be provided in a format access ible and readable by the Authorized Auditors. Seller shall not, however, be required to furnish the Authorized Auditors with commonly available software. In addition, Seller shall be subject at any time with thirty (30) days prior written notice to audits or examinations by Authorized Auditors to verify compliance with all Agreement requirements relative to practices, methods, procedures, performance, compensation, and 153 of 489

65 documentation, and shall cause all of its Subcontractors for agreements entered into after the Effective Date and having a value in excess of One Million ($1,000,000) (such subcontractors, “Major Subcontractors”) to comply with the foregoing requirements. All such records subject to audit or examination shall be retained by the Major Subcontractor for a period of not less than four (4) years following the final payment by Seller to such Major Subcontractor. Examinations and audits will be performed using generally accepted auditing practices and principles and applicable Governmental Authority audit standards. If Seller utilizes or is subject to FAR, Part 30 and 31, et seq. accounting procedures, or a portion thereof, examinations and audits will utilize such information. To the extent that the Authorized Auditor’s examination or audit reveals inaccurate, incomplete or non- current records, or records are unavailable, the r ecords shall be considered defective. Consistent with standard auditing procedures, Seller will be provided fourteen (14) days to review the Authorized Auditor’s examination results or audit and respond to Buyer’s prior to the examination’s or audit’s finalization and public release. If the Authorized Auditor’s examination or audit indicates Seller has been overpaid under a previous payment application, the identified overpayment amount shall be paid by Seller to Buyer within thirty (30) days of notice to Seller of the identified overpayment. In addition, Seller and its Major Subcontractors shall also include the following language in each Subcontractor contract: “The Southern California Public Power Authority is a third-party beneficiary of the foregoing audit provision. The benefits of the audit provision shall inure solely for the benefit of the Southern California Public Power Authority.

The designation of the Southern California Public Power Authority as a third-party beneficiary of the audit provision shall not confer any rights or privileges on Seller, subcontractor or any other person/entity.” Notwithstanding the foregoing, if the audit reveals that Buyer’s overpayment to Seller is more than five percent (5.0%) of the billings reviewed, Seller shall pay all expenses and costs incurred by the Authorized Auditors arising out of or related to the examination or audit.

Such examination or audit expenses and costs shall be paid by Seller to Buyer within thirty (30) days of notice to Seller of such costs and expenses.

Section 11.6 Electric Metering Devices
(a) The Delivered Energy made available to Buyer or Buyer’s Agent by Seller under this Agreement shall be measured using the Electric Metering Devices, including the Project Meter, which shall be procured, installed, owned and maintained by Seller, as depicted and labeled in the single-line diagram attached to this Agreement as Appendix R-1, which shall be updated as a condition precedent to the achievement of the Construction Commencement Milestone. All such Electric Metering Devices used to provide data for t he computation of payments shall be sealed and Seller shall only break the seal when such Electric Metering Devices are to be inspected and tested or adjusted in accordance with this Section 11.6(a). (b) The Electric Metering Devices shall be capable of: (i) measuring back-feed kilowatts and generation kilowatts at revenue quality to provide telemetering to the LADWP Energy Control Center (“ECC”), (ii) adjusting the measured values of Delivered Energy for loss compensation from the Project Meter to the Point of Delivery using the Transmission Line Loss Factor at the Point of Delivery for billing purposes, (iii) accurately metering back-feed load when generation output goes to zero, (i v) conforming to the DN P 3.0 protocol and meeting N -1 redundancy (which dictates that if any one meter fails, the Electric Metering Devices will allow the missing telemetry data to be alternately sourced or calculated), and (v) a live data metering 154 of 489

66 connection accessible using the Inter -Control Center Communications Protocol (“ ICCP”) (as defined by the International Electrotechnical Commission) to enable the exchange of real-time and historical power system monitoring and control data, including measured values and accounting data. Examples of N -1 redundancy compliant architecture include placing backup meters at the same point of metering or installing one meter at each branch (i.e. gross, aux, and net) so the missing telemetry data may be calculated as a difference. Notwithstanding the foregoing capabilities and requirements, the Electric Metering Devices shall function at all times in compliance with the Guidebook, and the RPS Law and Metering Policies. (c) Seller, at no expense to Buyer, shall inspect and test all such Electric Metering Devices owned, installed, and maintained by Seller upon installation and at least annually thereafter. Seller shall provide Buyer with reasonable advance notice of, and permit a representative of Buyer or Buyer’s Agent to witness and verify, such inspections and tests. Upon request by Buyer or Buyer’s Agent, Seller shall perform additional inspections or tests of any such Electric Metering Devices and shall permit a qualified representative of Buyer or Buyer’s Agent to inspect or witness the testing of any such Electric Metering Devices. The actual expense of any such requested additional inspection or testing shall be borne by Seller. Seller shall provide copies of any inspection or testing reports to Buyer and Buyer’s Agent. Any representative of Buyer witnessing or verifying a test under this Section 11.6(c) shall (i) not interfere with Seller’s performance of such test, and (ii) comply with any written site-specific rules or regulations. (d) If an Electric Metering Device fails to register, or if the measurement made by an Electric Metering Device is found upon testing to be inaccurate by more than the threshold set forth in the then- current LADWP Bulk Electric System Meter Policy, an adjustme nt shall be made correcting all measurements by the inaccurate or defective Electric Metering Device for both the amount of the inaccuracy and the period of the inaccuracy. The adjustment period shall be determined by reference to Buyer’s Agent from the best available data, which may include data from any Buyer Check Meters, subject to review and approval by Seller (such approval not to be unreasonably withheld). If the period of the inaccuracy cannot be ascertained reasonably, any such adjustment shall be for a period equal to one -third of the time elapsed since the preceding test of the Electric Metering Devices. To the extent that the adjustment period cover s a period of deliveries for which payment has already been made by Buyer, Buyer shall use the c orrected measurements as determined in accordance with this Section 11.6(d) to recompute the amount due for the period of the inaccuracy and shall subtract the previous payments by Buyer for this period from such recomputed amount. If the difference is a positive number, the difference shall be paid by Buyer to Seller; if the difference is a negative number, that difference shall be paid by Seller to Buyer, or at the discretion of Buyer, may take the form of an offset to payments due to Seller from Buyer. Payment of such difference by the owing Party shall be made not later than thirty (30) days after the owing Party receives notice of the amount due, unless Buyer elects payment via an offset. (e) Commencing on the first date on which Startup and Test Energy is produced by the Facility, and continuing throughout the Delivery Term, Seller shall provide to Buyer read-only access to all Electric Metering Devices installed, owned and operated by Seller that are used to measure Delivered Energy.
155 of 489

67 ARTICLE XII
REPRESENTATIONS AND WARRANTIES; COVENANTS OF SELLER
Section 12.1 Representations and Warranties by Buyer. Buyer represents and warrants to Seller that:
(a) Buyer is a validly existing California joint powers authority under the laws of the State of California and has the legal power and authority to own its properties, to carry on its business as now being conducted and to enter into this Agreement and each Ancillary Document to which it is a party and carry out the transactions contemplated hereby and thereby and perform and carry out all covenants and obligations on its part to be performed under and pursuant to this Agreement and all such Ancillary Documents.
(b) The execution, delivery and performance by Buyer of this Agreement and each Ancillary Document to which it is a party have been duly authorized by all necessary action, and do not require any consent or approval of Buyer’s Board of Directors or members other than that which has been obtained; provided that further authorizations will be required for Buyer to exercise the Project Purchase Option, the Right of First Offer or the Right of First Refusal. (c) The execution and delivery of this Agreement and each Ancillary Document to which it is a party, the consummation of the transactions contemplated hereby and thereby and the fulfillment of and compliance with the provisions of this Agreement and each Ancil lary Document to which it is a party do not conflict with or constitute a breach of or a default under, any of the terms, conditions or provisions of any legal requirements, or its joint powers agreement or bylaws, or any deed of trust, mortgage, loan agre ement, other evidence of indebtedness or any other agreement or instrument to which Buyer is a party or by which it or any of its property is bound, or result in a breach of or a default under any of the foregoing, which conflicts or breaches, individually, or in the aggregate, would reasonably be expected to result in a material adverse effect.
(d) This Agreement and each Ancillary Document to which it is a party constitutes the legal, valid and binding obligation of Buyer enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally or by general equitable principles, regardless of whether such enforceability is considered in a proceeding in equity or at law.
(e) There is no pending, or to the knowledge of Buyer, threatened action or proceeding affecting Buyer before any Governmental Authority, which purports to affect the legality, validity or enforceability of this Agreement.

Section 12.2 Representations and Warranties by Seller. Seller represents and warrants to Buyer that:
(a) Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware, is qualified to do business in the State of California and the State of Utah and has the legal power and authority to own its properties, and 156 of 489

68 to carry on its business as now being conducted. Each of the Seller Parties has the legal power and authority to enter into this Agreement and each Ancillary Document to which it is a party and, subject to the receipt of additional regulatory approvals, to carry out the transactions contemplated hereby and thereby, and to perform and carry out all covenants and obligations on its part to be performed under and pursuant to this Agreement and each Ancillary Document to which it is a party.
(b) The execution, delivery and performance by each Seller Party of this Agreement and each Ancillary Document to which it is a party have been duly authorized by all necessary limited liability company action, and do not and will not require any consent or approval of such Seller Party’s managing member or equity holders other than that which has been obtained.

No later than five (5) Business Days after the Effective Date, Seller shall deliver to Buyer (i) copies of all resolutions and other documents evidencing such limited liability company actions, certified by an authorized representative of such Seller Party as being true, correct and complete, and (ii) an incumbency certificate signed by the secretary of such Seller Party certifying as to the names and signatures of the authorized representatives of such Seller Party. (c) The execution and delivery of this Agreement and each Ancillary Document to which any Seller Party is a party, the consummation of the transactions contemplated hereby and thereby and the fulfillment of and compliance with the provisions of this Agreement and each Ancillary Document to which it is a party, do not and will not conflict with or constitute a breach of or a default under, any of the terms, conditions or provisions of any Requirement of Law, or any organizational documents, agreement, deed of trust, mortgage, loan agreement, other evidence of indebtedness or any other agreement or instrument to which any Seller Party is a party or by which it or any of its property is bound, or result in a breach of or a default under any of the foregoing or result in or require the creation or imposition of any Lien upon any of the properties or assets of such Seller Party (except as contemplated hereby). (d) This Agreement and any Ancillary Documents to which any Seller Party is a party constitutes the legal, valid and binding obligation of such Seller Party, enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws relating to or affecting the enforcement of creditors’ rights generally or by general equitable principles, regardless of whether such enforceability is considered in a proceeding in equity or at law.
(e) There is, as of the Effective Date, no pending, or to the knowledge of Seller, threatened action or proceeding affecting any Seller Party before any Governmental Authority that purports to affect the legality, validity or enforceability of this Agreement or any Ancillary Document to which it is a party.
(f) None of the Seller Parties is in violation of any Requirement of Law which violations, individually or in the aggregate, would reasonably be expected to result in a Material Adverse Effect on the business, assets, operations, or condition (financial or otherwise) of any Seller Party, or the ability of any Seller Party to perform any of its obligations under this Agreement or any Ancillary Document to which it is a party. 157 of 489

69 (g) All investors have been informed by Seller of the existence of this Agreement and all Ancillary Documents on or before the date of such investment in Seller. (h) As of the Effective Date, the organizational structure and ownership of Seller and each Upstream Equity Owner, including a list of each of the Principals of Ultimate Upstream Equity Owner and of each Upstream Equity Owner that is itself owned directly or indirectly in whole or part by the Ultimate Upstream Equity Owner, is as set forth in Schedule

12.2(h). Schedule 12.2(h) may be updated from time to time by agreement of Buyer and Seller to account for a Change in Control that has been consented to by Buyer in accordance with this Agreement.
(i) No Seller Party has entered into this Agreement or any Ancillary Document with the actual intent to hinder, delay or defraud any creditor and each Seller Party received reasonably equivalent value in exchange for its obligations under this Agreement and the Ancillary Documents. No petition in bankruptcy has been filed against any Seller Party, and no Seller Party, nor any of its respective constituent Persons, has ever made an assignment for the benefit of creditors or taken advantage of any insolvency act for its benefit as a debtor. (j) On and after the date of delivery of the Non- Consolidation Opinion, all of the assumptions made in the Non-Consolidation Opinion, including any exhibits attached thereto, are true and correct in all material respects and Seller has complied with all of the assumptions made with respect to Seller in the Non-Consolidation Opinion. (k) All Tax returns and reports of each Seller Party required to be filed by it have been timely filed, and all Taxes shown on such Tax returns to be due and payable and all assessments, fees and other governmental charges upon each Seller Party and upon its properties, assets, income, business and franchises that are due and payable have been paid when due and payable. Seller knows of no proposed Tax assessment against Seller that is not being actively contested by it in good faith and by appropriate proceeding. (l) Seller owns or possesses, or reasonably expects to obtain in the ordinary course of business or possess in a timely manner, all patents, rights to patents, trademarks, copyrights and licenses necessary for the performance by Seller of this Agreement and the Ancillary Documents and the transactions contemplated thereby, without any conflict with the rights of others, and Seller’s use thereof does not infringe on the intellectual property rights of third parties.
(m) Seller has not assigned, transferred, conveyed, encumbered, sold or otherwise disposed of the Delivered Energy, Environmental Attributes or Capacity Rights except to Buyer in accordance with this Agreement.
(n) Seller has Site Control. Seller’s agents and representatives have visited, inspected and become familiar with the Real Property and its surface physical condition relevant to the obligations of Seller pursuant to this Agreement, including surface conditions, normal and usual soil conditions, roads, utilities, and topographical, solar radiation, and air and water quality conditions. Seller is familiar with all local and other conditions that may be material to Seller’s performance of its obligations under this Agreement (including, transportation, seasons and 158 of 489

70 climate, access, weather, handling and storage of materials and equipment, and availability and quality of labor and utilities). Seller has determined that the Real Property constitutes an acceptable and suitable site for the construction and operation of the Facility and the associated transmission line in accordance herewith.
(o) To Seller’s knowledge, as of the Effective Date, there are no investigations, inquiries, orders, hearings, actions or other proceedings by or before any Governmental Authority that are pending or, to the best of Seller’s knowledge, threatened in connection with any Permit or Environmental Laws with respect to the Facility or the Facility Site. Neither Seller, nor to Seller’s knowledge, any third party has used, released, generated, manufactured, produced, or stored in, on, under or about the Real Property any Hazardous Materials that could reasonably be expected to subject Seller or Buyer to liability under any Environmental Laws. To Seller’s knowledge, with the exception of those Hazardous Materials used and stored in accordance with Environmental Laws and pursuant to any applicable Permit, there are no Hazardous Materials used, stored or present at, in, on or under the Real Property that could reasonably be expected to subject the Seller or Buyer to liability under any Environmental Laws.
(p) Seller has obtained all Permits ( including final notice of determination or an applicable exemption under (i) the California Environmental Quality Act, (ii) the National Environmental Policy Act and/or (iii) other comparable environmental law of the state and county (if applicable) where the Facility is located).

Section 12.3 Covenant of Seller Related to Seller’s Status as Special Purpose Entity.

Seller shall at all times comply with the requirements of, and qualify as, a Special Purpose Entity.

Section 12.4 Covenants of Seller Related to Real Property Agreements. (a) Seller shall at all times maintain Site Control and keep, perform, observe and comply with, or cause to be kept, performed, observed and complied with, all covenants, agreements, conditions and other provisions required to be kept, performed, observed and complied with, by or on behalf of Seller from time to time pursuant to the Real Property Agreements, and Seller shall not do or permit anything to be done, the doing of which, or refrain from doing anything, the omission of which, is grounds for a terminat ion of Seller’s rights under the Real Property Agreements.
(b) Subject to this Section 12.4(b), Seller may from time to time supplement the Real Property Agreements listed in Appendix H to reflect any terminated or transferred Real Property Agreements and to include such additional easements, rights -of-way and other Real Property Agreements as may be required by Seller to perform its obligations under this Agreement; provided that such action shall not reduce or have any other effect on the Contract Capacity, the Expected Annual Generation, the Guaranteed Delivered Energy, the amount of Delivered Energy, or the Facility as described in this Agreement, or cause Seller to be out of compliance with its Permits. Seller shall provide Buyer with written notice of the termination, transfer or addition of any Real Property Agreements occurring prior to the Construction Commencement Milestone and prior written notice of any termination, transfer or addition of any Real Property Agreements occurring after the Construction Commencement Milestone, and the Parties shall revise Appendix B and Appendix H to reflect any such terminations, transfers or additions. Subject to 159 of 489

71 this Section 12.4(b), any terminated or transferred Real Property Agreements shall no longer constitute Real Property Agreements following such termination or transfer. Any additional Real Property Agreements shall be subject to the terms and conditions of this Section 12.4. Following the Commercial Operation Date, Seller may not remove any portions of or rights or interests in the Real Property under the Real Property Agreements or amend or terminate any of the Real Property Agreements, or otherwise alter, diminish, or otherwise take actions that would adversely affect the Facility, unless (i) Buyer has provided prior written consent to Seller, such consent to be determined in Buyer’s reasonable discretion, or (ii) Seller has provided a written certification to Buyer that such action shall not adversely affect Buyer’s ability to exercise the Project Purchase Option or Seller’s ability to perform its material obligations under this Agreement. (c) Seller shall at all times prevent the imposition of any Liens or encumbrances, other than Permitted Encumbrances, on Seller’s interest in the real property that is subject to the Real Property Agreements. In the event a Lien or encumbrance other than a Permitted Encumbrance is imposed on Seller’s interest in any property subject to a Real Property Agreement, Seller shall give Buyer immediate notice thereof and shall take immediate action to release such Lien or encumbrance.
(d) Seller shall not consent, agree to or permit, or take or cause to be taken, any action or non-action to bring about any rescission or termination of, or amendment to, any of the Real Property Agreements, or to take any action in connection with any of the Real Property Agreements that will impair or have an adverse effect on the rights, interest or security of Buyer, or elect to resolve any controversy, claim or dispute under the Real Property Agreements, or to assign, sublease, encumber, mortgage, or grant any security interest in or otherwise dispose of any of the Real Property Agreements or any portion thereof or interest therein without the consent of Buyer, except as permitted in this Agreement.
(e) Seller shall not develop or improve the Real Property other than so as to provide for the facilities and improvements of the Facility in accordance with this Agreement and the terms and conditions of any Permits and Environmental Documents. (f) Seller shall provide Buyer with true and complete copies of the Real Property Agreements, which may be redacted to redact specific pricing information. Seller shall or shall cause the Lessor, if applicable, to timely and duly record in the land records of the applicable county or counties of the State of California, or as otherwise provided by applicable law, all Real Property Agreements, or memoranda of such Real Property Agreements, to the extent recordable under federal or state law, and shall promptly (and in no event five (5) Business Days thereafter) provide Buyer with true and complete copies of such recorded Real Property Agreements.
(g) Unless otherwise provided in the Consent and Agreement, to the extent that any Real Property Agreements prohibit assignment, or do not expressly permit assignment, of Seller’s rights to cure a breach or default thereunder, Seller shall use commercially reasonable efforts to cause each such Real Property Agreement to provide a right for Buyer to cure any breach or default by Seller under such Real Property Agreement (subject to the prior right of any Facility Lender); provided, that using “commercially reasonable efforts” shall not require Seller to re-open 160 of 489

72 negotiations with landowners for the Real Property Agreements unless Seller amends or otherwise modifies or supplements the Real Property Agreements (whether by way of amendment or Consent and Agreement) to include a cure right with respect to any Real Property Agreement on behalf of the Facility Lenders, in which case, Seller shall also request a similar cure right for Buyer. Seller shall give Buyer immediate notice of (i) any default notice received by Seller or the Lessor or delivered by Seller or the L essor under any of the Real Property Agreements, or (ii) the commencement of any action or proceeding or arbitration pertaining to any Real Property Agreement. Seller shall deliver to Buyer, immediately upon service or delivery thereof on, to or by Seller or the Lessor, a copy of each petition, summons, complaint, notice of motion, order to show cause and other pleading or paper, however designated, which shall be served or delivered in connection with any such action, proceeding or arbitration in connecti on with a Real Property Agreement.
(h) Upon any payment by Buyer under any of the Real Property Agreements to cure any default of Seller or the Lessor thereunder, and thereby prevent termination of any of the Real Property Agreements, or the exercise of any other remedy of the other party or parties thereunder arising out of such default, Buyer shall be entitled to offset amounts otherwise due Seller pursuant to the Monthly Payment hereunder by the amount of such cure payment or remedy cost until Buyer has been fully repaid.
(i) As part of the monthly report provided under Section 4.5(a), Seller shall certify to Buyer, and shall provide Buyer with evidence, that the rent, fees or other payments payable by Seller under the Real Property Agreements and the Interconnection Agreement have been paid prior to the date on which such rent, fees or other payments would be delinquent. If Seller does not provide Buyer with such certification or evidence for the applicable month and if such rent, fees or other payments have not been paid, Buyer, as beneficiary under the Development Security and the Performance Security, may, but shall not be obligated to, cure such default by Seller as provided under this Section 12.4.

Section 12.5 Covenants of Seller Related to Tax Financing. (a) Seller shall provide Buyer with at least one hundred twenty (120) days’ prior written notice of the reasonably likely occurrence of any consolidation, merger, or reorganization or other similar transaction, or series of similar transactions (other than, for the avoidance of doubt, any Tax Financing), involving Seller, any Upstream Equity Owner or the Ultimate Upstream Equity Owner.
(b) Seller shall provide Buyer with at least sixty (60) days’ prior written notice of the consummation of a Tax Financing, which notice shall include, as applicable, (a)(i) introductory and contact information about and for any potential Tax Equity Investors and (ii) a summary of proposed provisions related to, and the structure surrounding, the power to control the management and policies of Seller, and any entity that is jointly -owned by any Upstream Equity Owner and such Tax Equity Investor arising in connec tion with the Tax Financing, or (b) introductory and contact information about and for any potential tax credit purchasers. Such notice shall be in addition to, and not in lieu of, any notice required under Section 14.6. Promptly following the consummation of a Tax Financing, Seller shall provide 161 of 489

73 Buyer with a certificate from an authorized officer of Seller, certifying that a Tax Financing has occurred and that the transaction described in the notice meets all the requirements of a Tax Financing set forth in this Agreement.
(c) In addition to the items listed in subparagraph (b) above, in the event of a Sale Leaseback Financing, Seller shall also provide Buyer with true and correct copies of all agreements with the Lessor (with confidential terms redacted). (d) It shall be a Default (which shall be subject to cure only if such Default is reasonably capable of being promptly and completely cured by Seller, and if not capable of being promptly and completely cured by Seller, shall be an immediate Default without opportunity to cure hereunder) should Seller enter into a Sale Leaseback Financing unless the Lessor or Lessors thereunder and Seller shall have concurrently entered into an agreement with Buyer providing for (i) substantially the terms set forth in Appendix E, (ii) an estoppel certificate certifying that this Agreement remains in full force and effect and binding on Seller and that each Real Property Agreement remains in full force and effect and binding on the third parties thereto, and (iii) a binding obligation of such Lessor or Lessors and Seller, upon any exercise by Buyer of its Project Purchase Option by delivery of the Purchase Option Exercise Notice as provided under Section 2.5 of the Option Agreement, to terminate such Sale Leaseback Financing prio r to the Closing of the purchase by Buyer of the Facility Assets (as such terms are defined in the Option Agreement) by the reconveyance of the Facility Assets or the Facility Site, as applicable, by such Lessor or Lessors to Seller and the termination of the lease of the Facility or the Facility Site, as applicable, by such Lessor or Lessors and Seller, and the transfer upon the Closing of the Facility from such Lessor to Seller, and from Seller to Buyer, or directly from Lessor to Buyer, in either case, i n accordance with the terms and conditions set forth in the Option Agreement. (e) Seller shall deliver or cause to be delivered copies of all resolutions and other documents evidencing the actions taken to approve, execute and deliver such Sale Leaseback Financing Agreements and any the documents required in Section 12.5(d), in each case certified by an authorized representative of any Seller Party as being true, correct and complete, and an incumbency certificate signed by the secretary of such Seller Party certifying as to the names and signatures of the authorized representatives of such Seller Party.

Section 12.6 Additional Covenants of Seller.
(a) Seller and each Seller Party shall, at its expense, take all steps necessary to maintain all Permits, including as set forth in Appendix K , for the performance of such Seller or Seller Party’s obligations hereunder and under the Ancillary Documents to which such Seller Party is a party, the construction of the Facility, and the ownership and operation of the Facility, in accordance with the Requirements.
(b) Seller shall provide Buyer with a true and complete cop y of the Interconnection Agreement. Seller shall maintain in full force and effect the Interconnection Agreement, and shall not permit any material amendment to or modification of, the Interconnection Agreement without the consent of Buyer , such consent not to be unreasonably withheld, conditioned or delayed; provided, that no such consent shall be required if such amendment or modification (i) is solely to update the equipment that will be utilized for the 162 of 489

74 interconnection facilities or the single line diagram to reflect changes in system design and/or differences in equipment performance compared to design specifications, (ii) does not constitute a material modification under the Interconnection Agreement, and (iii) does not materially adversely affect Seller’s ability to perform its obligations under this Agreement. (c) In the event that Seller has entered into any Shared Facilities Agreements in accordance with Section 14.22, Seller and each Seller Party shall maintain, and shall cause any Affiliates to maintain, in full force and effect, any Shared Facilities Agreement in form and substance approved by Buyer, and shall not permit any material amendment to or modification of, any Shared Facilities Agreement without the consent of Buyer. (d) Seller shall not, at any time following the Commercial Operation Date, incur or permit Facility Debt in an amount that, in the aggregate as of the date it is incurred, exceeds seventy percent (70%) of the Facility Cost and (y) provided, that if the proceeds of the sale of PTCs are being financed by the Facility Lenders, during such PTC financing period, ninety percent (90%) of the Facility Cost.

ARTICLE XIII
DEFAULT; TERMINATION AND REMEDIES
Section 13.1 Default. Each of the following events or circumstances shall constitute a “Default” by the responsible Party (the “Defaulting Party”):
(a) Payment Default. Failure by either Party to pay any amount when and as due under this Agreement which is not cured within thirty (30) days after receiving written notice thereof from the other Party.
(b) Performance Defaults. Failure by either Party or Seller Party to perform any of its duties or obligations under this Agreement or the Option Agreement when and as due (other than (i) the failure to make any payment, which is addressed in Section 13.1(a)), (ii) the failure to provide the Development Security in accordance with Section 5.6(a), which shall be an immediate Default for which no cure period is given; (iii) a “Security Default” as set forth in Section 13.1(e), (iv) the failure by Seller to replenish the Performance Security within the periods provided under Section 5.6(d), (v) a Default under Section 12.5(d), and (vi) except as otherwise set forth in this Agreement), which is not cured within thirty (30) days after receipt of written notice thereof from the other Party; provided, that if such failure cannot be cured within such thirty (30) day period despite commercially reasonable efforts and it is reasonable to expect that such failure may be cured within an additional sixty (60) days, and such Party continues to diligently proceed with such cure within such longer period of time, such Party shall have an additional sixty (60) days to cure.
(c) Breach of Representations and Warranties . Inaccuracy in any material respect as of the Effective Date of any representation, warranty, certification or other statement made by a Party or in any Ancillary Document that, if capable of being cured, is not cured within thirty (30) days after receipt of notice thereof.
(d) Bankruptcy. Bankruptcy of Buyer or any Seller Party. 163 of 489

75 (e) Security Default. The failure of Seller to timely issue, maintain or replace the Development Security or the Performance Security in compliance with the provisions of Section 5.6.
(f) Insurance Default . The failure of Seller to maintain and provide the required insurance for the required period of coverage as set forth in Appendix F, and such failure is not cured within ten (10) days after the initial date such coverage is not maintained. (g) Fundamental Change . Except as permitted by Section 14.6, (i) a Party makes an assignment of its rights or delegation of its obligations under this Agreement or the Option Agreement, or (ii) a Change in Control occurs (whether voluntary or by operation of law). (h) Real Property Agreement Default . Except as permitted under Section 12.4 or with Buyer’s written consent, any Real Property Agreement fails to be in effect or is terminated for any reason, or amended in any material respect, and the same would have a Material Adverse Effect or limit in any way the exercise by Buyer of the Project Purchase Option. (i) Commercial Operation Date Default . Failure by Seller to achieve the Commercial Operation Date by the Guaranteed Commercial Operation Date; provided, that it shall not be a Seller Default under this Section so long as Seller is paying Daily Delay Damages during the one-hundred eighty (180) day period following the Guaranteed Commercial Operation Date; provided, further, that notwithstanding anything to the contrary, it shall be an immediate Default if the Commercial Operation Date has not been achieved by t he Outside COD (for the avoidance of doubt as such date is extended due to an extension of the Guaranteed Commercial Operation Date pursuant to Section 3.3(d)).
(j) Shortfall Energy Termination Default. The failure of the Facility during any three (3) consecutive Contract Year period (which shall be calculated, for any such failure that occurs during the Initial Stub Year or the Final Stub Year, to include such Initial Stub Year or Final Stub Year, as applicable, and three (3) additional calendar years) to deliver at least seventy percent (70%) of the Guaranteed Delivered Energy.
(k) Failure to Provide Real Time Data . The failure of Seller to provide any of the real -time data required to be delivered under Section 7.3, which failure is (i) due to the failure of Seller’s equipment or otherwise in Seller’s control, or operation or maintenance thereof, and (ii) not cured within twenty-four (24) hours after receipt of written email notice thereof from Buyer; provided, however, Seller shall have up to thirty (30) calendar days to cure such failure so long as such cure is not reasonably possi ble within twenty -four (24) hours and Seller is using continuous and diligent efforts to resolve such failure ; provided, subject to Buyer’s approval, which shall not be unreasonably withheld, conditioned or delayed, Seller shall have up to an additional (60) calendar days to cure such failure so long as (A) such cure is not reasonably possible within thirty (30) days and Seller is using continuous and diligent efforts to resolve such failure and (B) such cure can reasonably be expected to be cured within such extended cure period.

Section 13.2 Failure to Perform under Interconnection Agreement . (i) The failure by Seller to perform any of its duties or obligations under the Interconnection Agreement when 164 of 489

76 and as due that has a Material Adverse Effect, and is not cured within thirty (30) days after Seller is notified of such failure or (ii) any termination of any Interconnection Agreement.

Section 13.3 Default Remedy.
(a) If Buyer is in Default for nonpayment, subject to any duty or obligation under this Agreement, Seller may , at its sole option, (i) suspend performance of its obligations hereunder, including delivery of the Delivered Energy, (ii) sell Delivered Energy, Environmental Attributes and Capacity Rights to third parties pursuant to and in accordance with Section 6.3, or (iii) continue to provide services pursuant to its obligations under this Agreement; provided that nothing in this Section 13.2(a) shall affect Seller’s other rights and remedies set forth in this Section 13.2. Seller’s continued performance shall not act to relieve Buyer of any of its duties or obligations under this Agreement.
(b) Notwithstanding any other provision herein, if any Default has occurred and is continuing, the affected Party may, whether or not the dispute resolution procedure set forth in Section 14.3 has been invoked or completed, bring an action in any court of competent jurisdiction as required by Section 14.3 seeking injunctive relief in accordance with applicable California or federal rules of civil procedure.
(c) Except as expressly limited by this Agreement, if a Default has occurred and is continuing and Buyer is the Defaulting Party, Seller may without further notice exercise any rights and remedies provided herein or otherwise available at law or in equity, including the right to terminate this Agreement upon giving notice of intent to terminate to Buyer. No failure of Seller to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Seller of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power. (d) Except as expressly limited by this Agreement, if a Default has occurred and is continuing and Seller is the Defaulting Party, Buyer may without further notice exercise any rights and remedies provided for herein, or otherwise available at law or equity, i ncluding (i) application of all amounts available under the Development Security or Performance Security against any amounts then payable by Seller to Buyer under this Agreement (ii) termination of this Agreement pursuant to Section 13.3, and (iii) exercise its rights under the Project Purchase Option, subject to the provisions of this Agreement, in each case upon notice of intent to terminate this Agreement to Seller. No failure of Buyer to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise by Buyer of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power.

Section 13.4 Termination for Default.
(a) If a Default occurs, the Party that is not the Defaulting Party (the “Non- Defaulting Party”) shall have the right, for so long as the Default is continuing, and subject to applicable cure rights, and without limiting any other rights or remedies available to the Non-Defaulting Party under this Agreement, by notice (“ Termination Notice ”) by the Non- Defaulting Party to the Defaulting Party (i) establish a date (which shall be no earlier than the date 165 of 489

77 of such notice and no later than twenty (20) days after the date of such notice) (“Early Termination Date”) on which this Agreement shall terminate, and (ii) withhold any payments due in respect of this Agreement, provided, upon the occurrence of any Default of the type described in Section 13.1(d), this Agreement shall automatically terminate, without notice or other action by either Party as if an Early Termination Date had been declared immediately prior to such event. (b) If an Early Termination Date has been designated, the Non-Defaulting Party shall calculate in a commercially reasonable manner its Gains, Losses and Costs resulting from the termination of this Agreement and the resulting Termination Payment. The Gains, Losses and Costs relating to the Delivered Energy and associated Environmental Attributes and Capacity Rights that would have been required to be delivered under this Agreement had it not been terminated shall be determined by comparing the amounts Buyer (i f the Non- Defaulting Party) would have paid or Seller (if the Non-Defaulting Party) would have received therefor under this Agreement to the equivalent quantities and relevant market prices either quoted by a bona fide third party offer or which are reasonably expected by Buyer (if the Non -Defaulting Party) or by Seller (if the Non-Defaulting Party) to be available in the market under a replacement contract for this Agreement covering the same products and having a term equal to the Remaining Term at the date of the Termination Notice adjusted to account for differences in transmission, if any. The Non-Defaulting Party shall not be required to enter into any such replacement agreement in order to determine its Gains, Losses and Costs or the Termination Paym ent. To ascertain the market prices of a replacement contract, the Non-Defaulting Party may consider, among other valuations, quotations from dealers in Energy contracts and bona fide third party offers. (c) For purposes of the Non- Defaulting Party’s determination of its Gains, Losses and Costs and the Termination Payment, it shall be assumed, regardless of the facts, that Seller would have sold, and Buyer would have purchased, each day during the Remaining Te rm (i) Delivered Energy in an amount equal to the Assumed Daily Deliveries, (ii) the Environmental Attributes associated therewith, and (iii) all Capacity Rights associated therewith. The “Assumed Daily Deliveries” is an amount equal to the greater of (A) the quotient of the Guaranteed Delivered Energy divided by three hundred and sixty five (365), and (B) the average daily amount of Delivered Energy during the Delivery Term, if any.
(d) The Non- Defaulting Party shall notify the Defaulting Party of the Termination Payment, which notice shall include a written statement explaining in reasonable detail the calculation of such amount. The Defaulting Party shall, within ten (10) Business Days after receipt of such notice, pay the Termination Payment to the Non- Defaulting Party, together with interest accrued at the Interest Rate from the Early Termination Date until paid. If the Non-Defaulting Party’s aggregate Gains exceed its aggregate Loss es and Costs, the Termination Payment shall be zero.
(e) If the Defaulting Party disagrees with the calculation of the Termination Payment and the Parties cannot otherwise resolve their differences, the calculation issue shall be submitted to informal non-binding Dispute resolution as provided in Section 14.3(a). Following resolution of the Dispute, the Defaulting Party shall pay the full amount of the Termination Payment (if any) determined by such resolution as and when required, but no later than thirty (30) 166 of 489

78 days following the date of such resolution, together with all interest, at the Interest Rate, that accrued from the Early Termination Date until the date the Termination Payment is paid. (f) For purposes of this Agreement:
(i) “Gains” means, with respect to a Party, an amount equal to the present value of the economic benefit (exclusive of Costs), if any, resulting from the termination of its obligations under this Agreement, determined in a commercially reasonable manner; (ii) “Losses” means, with respect to a Party, an amount equal to the present value of the economic loss (exclusive of Costs), if any, resulting from the termination of its obligations under this Agreement, determined in a commercially reasonable manner; (iii) “Costs” means, with respect to a Party, brokerage fees, commissions and other similar transaction costs and expenses reasonably incurred or in entering into new arrangements which replace this Agreement, excluding attorneys’ fees, if any, incurred in connection with enforcing its rights under this Agreement. Each Party shall use reasonable efforts to mitigate or eliminate its Costs.
(iv) In no event shall a Party’s Gains, Losses or Costs include any penalties or similar charges imposed by the Non-Defaulting Party. (v) The Present Value Rate shall be used as the discount rate in all present value calculations required to determine Gains, Losses and Costs. (g) At the time for payment of any amount due under this Section, each Party shall pay to the other Party all additional amounts, if any, payable by it under this Agreement (including any amounts withheld pursuant to Section 13.3(a)(ii)).

Section 13.5 Cure Rights of Facility Lender and Buyer. Buyer shall provide such consents to assignment, substantially in the form attached as Appendix O , as may be reasonably requested by Seller or any Facility Lender (other than a Tax Equity Investor); provided that the terms of such financing or refinancing and the documentation relating thereto shall comply with the applicable terms and conditions of this Agreement (such consent, the “ Consent and Agreement”). The Consent and Agreement shall provide such Facility Lender or its agent notice of the occurrence of any Default described in Section 13.1 and (if permitted under this Agreement) the opportunity to cure any such default, and shall require that the provisions of any Financing Agreement provide Buyer with the right, but not the obligation, at any time, to pay any or all amounts due from Seller thereunder, and to do any other act or thing required of Seller, in each case to cure any default of Seller thereunder, or to prevent the termination of such Financing Agreement or the exercise of any remedy by the Facility Lender thereunder that could preclude or impede Buyer from exercising its Project Purchase Option. Seller shall promptly repay Buyer for any costs or expenses incurred by Buyer in making any such payments or otherwise incurred by Buyer in connection with curing a default by Seller . In addition, Buyer shall, if reasonably requested by a Tax Equity Investor, provide a written consent and estoppel substantially in the form attached as Appendix V providing such Tax Equity Investor with the right, but not the obligation, at any time, to pay any or all amounts due from Seller to Buyer hereunder, and to do 167 of 489

79 any other act or thing required of Seller, in each case, to cure any default of Seller under this Agreement in a manner that is consistent with the applicable terms and conditions of this Agreement and the Option Agreement, and to provide a customary estoppel certificate, provided that the terms and conditions of any such consent, or any such estoppel certificate shall have no (and could not reasonably be expected to have any) adverse effect on Buyer’s rights under this Agreement or the Option Agreement, and, except for a reasonable additional cure period for the Tax Equity Investor to cure a default of Seller as set forth in the consent with such Tax Equity Investor, which additional cure period shall be no longer than the cure period afforded the Facility Lender, shall be consistent with the terms and conditions of this Agreement.

ARTICLE XIV

MISCELLANEOUS
Section 14.1 Authorized Representative. Each Party shall designate an authorized representative who shall be authorized to act on its behalf with respect to those matters contained herein (each, an “Authorized Representative”), which shall be the functions and responsibilities of such Authorized Representatives. Each Party may also designate an alternate who may act for the Authorized Representative. Within thirty (30) days after the Effective Date, each Party shall notify the other Party in writing of the identity of its Authorized Representative and alternate if designated. Each Party shall promptly notify the other Party of any subsequent changes in such designation. The Authorized Representatives shall have no authority to alter, modify, or delete any of the provisions of this Agreement , but shall have the authority to execute or direct the execution of the Ancillary Documents contemplated therein, or to take such other steps as shall be necessary to effectuate the terms of this Agreement. Prior to the Commercial Operation Date, the Authorized Representative of each Party will meet periodically to discuss issues related to the sharing of information on the development, construction, design and operation and maintenance of the Facility. Each Party by notice to the other Party may also designate a Person as its designee as provided in this Agreement and Buyer may appoint Buyer’s Agent. To the extent that an Authorized Representative’s contact information is not provided in Appendix C, at the time a Party designates such Authorized Represe ntative, such Party shall concurrently provide written notice to the other Party of such Authorized Representative’s contact information.

Section 14.2 Notices. All notices, requests, demands, consents, waivers and other communications which are required under this Agreement shall be in writing and shall be deemed properly sent if delivered in person, reliable overnight courier, or sent by registered or certifie d mail, postage prepaid to the persons specified in Appendix C . The Parties may update Appendix C, from time to time, to designate another person, address or office to which notices shall be delivered by delivering notice to the other Party in accordance with this Agreement. In addition to the foregoing, the Parties may agree in writing at any time to deliver notices, requests, 168 of 489

80 demands, consents, waivers and other communications through alternate methods, such as electronic mail.

Section 14.3 Dispute Resolution . Subject to Section 13.2(b), regarding suits for injunctive relief, disputes under this Agreement between Seller and Buyer may be resolved in accordance with the provisions of this Section 14.3.
(a) In the event of any claim, controversy or dispute between the Parties arising out of or relating to or in connection with this Agreement (including any dispute concerning the validity of this Agreement or the scope and interpretation of this Section 14.3) (a ”Dispute”), either Party (the “Notifying Party”) may deliver to the other Party (the “Recipient Party”) notice of the Dispute with a detailed description of the underlying circumstances of such Dispute (a “ Dispute Notice”). The Dispute Notice shall incl ude a schedule of the availability of the Notifying Party’s senior officers (having a title of senior vice president (or its equivalent) or higher) duly authorized to settle the Dispute during the thirty (30) day period following the delivery of the Dispute Notice. (b) The Recipient Party shall, within five (5) Business Days following receipt of the Dispute Notice, provide to the Notifying Party a parallel schedule of availability of the Recipient Party’s senior officers (having a title of senior vice president (or its equivalent) or higher) duly authorized to settle the Dispute. Following delivery of the respective senior officers’ schedules of availability, the senior officers of the Parties shall meet and confer as often as they deem reasonably necessary during the rem ainder of the thirty (30) day period in good faith negotiations to resolve the Dispute to the satisfaction of each Party. (c) In the event a Dispute is not resolved pursuant to the procedures set forth in Section 14.3(a) and Section 14.3(b) by the expiration of the thirty (30) day period set forth in Section 14.3(a), then either Party may pursue any legal remedy available to it in accordance with the provisions of Section 14.11 of this Agreement.
(d) As stated in Section 14.11, this Agreement shall be governed by, interpreted and enforced in accordance with laws of the State of California, without regard to the conflict of laws principles thereof. In addition to the Dispute resolution process set forth in this Section 14.3, but subject to Section 14.19, the Parties shall comply with California law governing claims against public entities and presentment of such claims.

Section 14.4 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take all further action not inconsistent with the provisions of this Agreement that may be reasonably necessary to effectuate the purposes and intent of this Agreement.

Section 14.5 Force Majeure.
(a) A Party shall not be considered to be in default in the performance of any of its obligations under this Agreement (other than the obligations of a Party to make payments of amounts due under this Agreement) when and to the extent such Party’s performance is prevented by a Force Majeure that, despite the exercise of due diligence, such Party is unable to prevent or mitigate; provided that the Party has given a written detailed description of the event of Force 169 of 489

81 Majeure to the other Party reasonably promptly after becoming aware thereof (and in any event within fourteen (14) days after (i) the initial awareness of the impact of the claimed Force Majeure or (ii) if earlier, the claiming Party reasonably should have become aware of such impact ) (the “Force Majeure Notice”), which notice shall include information with respect to the nature, cause and date and time of commencement of such event and the anticipated scope and duration of the delay. The Party providing such notice shall be excused from fulfilling its obligations under this Agreement until such time as the Force Majeure has ceased to prevent performance or other remedial action is taken, at which time such Party shall promptly notify the other Party of the resumption of its obligations under this Agreement. If Seller is unable to deliver to, or Buyer is unable to receive Energy at, the Delivery Point due to a Force Majeure, Buyer shall have no obligation to pay Seller for the Energy not delivered or receiv ed by reason thereof. In no event shall Buyer be obligated to compensate Seller or any other Person for any losses, expenses or liabilities that Seller or such other Person may sustain as a consequence of any Force Majeure. (b) The term “Force Majeure” means any act of God, labor disturbance, act of the public enemy, war, insurrection, riot, terrorism, fire, storm or flood, explosion, epidemic or pandemic (excluding COVID-19 to the extent that the impact of such event related to COVID-19 was known, ought to reasonably have been known or reasonably foreseeable, as of the Effective Date, or could have been avoided or mitigated by contract or otherwise), or any order, regulation or restriction imposed by governmental, military or lawfully established civilian authorities, (i) which actually and demonstrably prevents one Party from performing any of its obligations under this Agreement, (ii) which could not reasonably be anticipated, or if could be anticipated, could not have been avoided or prevented by the exercise of commercially reasonable diligence , (iii) which is not within the reasonable control of, or the result of the fault, negligence, willful misconduct, breach of contract, intentional act or omission or wrongdoing on the part of the affected Party (or any subcontractor or Affiliate of that Party, or any Person under the control of that Party or any of its subcontractors or Affiliates, or any Person for whose acts such subcontractor or Affiliate is responsible), and ( iv) which by the exercise of due diligence the affected Party is unable to prevent, overcome or avoid or cause to be prevented, overcome or avoided; provided, nothing in this clause (iv) shall be construed so as to require either Party to accede or agree to any provision not satisfactory to it in order to settle and terminate a strike or labor dispute in which it may be involved. Any Party rendered unable to fulfill any of its obligations by reason of a Force Majeure shall exercise reasonable efforts to remove such inability with reasonable dispatch within a reasonable time period and mitigate the effects of the Force Majeure. The relief from performance shall be of no greater scope and of no longer duration than is required by the Force Majeure. Without limiting the generality of the f oregoing, a Force Majeure does not include any of the following: (1) any requirement to comply with a RPS Law or any change (whether voluntary or mandatory) in any EPS Law or RPS Law; (2) any increase of any kind in any cost; (3) delays in or inability of a Party to obtain financing or other economic hardship of any kind; (4) Seller’s ability to sell any Energy at a price in excess of those provided in this Agreement or Buyer’s ability to purchase any Energy at a price less than those provided in this Agree ment; (5) curtailment or other interruption of any Transmission Service, except if such curtailment or interruption of such Transmission Service on the Transmission System is due to a System Emergency; or (6) any changes in the financial condition of the B uyer, any Seller Party, the Facility Lender or any subcontractor or supplier affecting the affected Party’s ability to perform its obligations under this Agreement.
170 of 489

82 (c) If based on a Force Majeure Notice, the unaffected Party reasonably concludes that after the Commercial Operation Date a Force Majeure or its impact on the affected Party or the Facility will continue (i) for a period of two hundred forty (240) consecutive days or (ii) an aggregate total of three hundred sixty- five (365) consecutive or non- consecutive days in any rolling five (5) year period, the unaffected Party shall have the right to terminate this Agreement effective upon notice to the affected Party. A termination due to a Force Majeure prior to the Commercial Operation Date is addressed pursuant to Section 3.3(d).

Section 14.6 Assignment of Agreement; Change in Control. (a) Except as set forth in this Section 14.6, neither Party may assign any of its rights, or delegate any of its duties or obligations under this Agreement, or its portion of the Ancillary Documents, without the prior written consent of the other Party, such consent not to be unreasonably withheld. Any Change in Control (whether voluntary or by operation of law) shall be deemed an assignment and shall require the prior written consent of Buyer, which consent shall not be unreasonably withheld. Seller shall provide Buyer with one hundred twenty (120) days’ prior written notice of any proposed Change in Control. Concurrently with any reorganization or financing transaction or transactions constituting any Change in Control in which Seller merges or consolidates with any other Person and ceases to exist, the successor entity to Seller shall execute a written assumption agreement in favor of Buyer pursuant to which any such successor entity shall assume all of the obligations of Seller under this Agreement and the Ancillary Documents and agree to be bound by all the terms and conditions of this Agreement and Ancillary Documents, as applicable, or the successor entity shall acknowledge the continuing obligations of Seller to perform all of the obligations of Seller under this Agreement and the Ancillary Documents. (b) Buyer may assign this Agreement or the Ancillary Documents, without the consent of Seller, to one or more members of Buyer, to a California municipal utility, to a joint powers authority established under the Act, or to a California municipal district that provides electric utility service to customers in its district, so long as, at the time of such assignment, such assignee has, and is reasonably forecasted to maintain, an Investment-Grade Credit Rating. (c) Seller shall not sell or transfer the Facility or the Facility Assets to any Person other than a Person to whom Seller assigns this Agreement and its portion of the Ancillary Documents in accordance with this Section 14.6, other than a Sale Leaseback Financing (for which notice is required), without the prior written consent of Buyer (and in such case Seller may only transfer the Facility and Facility Assets in whole and not in part), provided that any such sale or transfer shall be in compliance with the p rovisions of Section 12.5(d) and subject to compliance with the Right of First Offer and Right of First Refusal set forth in Section 14.21, or any transfer of any Real Property Agreements permitted pursuant to Section 12.4. Any purported sale or transfer in violation of this Section 14.6(c) shall be null and void and of no force or effect. (d) Buyer’s consent shall not be required in connection with the collateral assignment or pledge of (i) this Agreement, the Option Agreement or any other Ancillary Documents to any Facility Lender, or (ii) all or a portion of the membership interests in Seller or an Upstream Equity Owner, in either case, for the purpose of financing or refinancing of the development, construction, ownership and operation of the Facility; provided, however, that 171 of 489

83 (1) the terms of such financing or refinancing, and the documentation relating thereto, comply with the applicable terms and conditions of this Agreement, the Option Agreement and any other Ancillary Document, as applicable, and (2) in connection with any such assignment or pledge and the exercise of remedies by any Facility Lender, the Facility Lender acknowledges and agrees to be bound by the requirement that the Facility be operated and maintained by a Qualified Operator.

Seller shall provide Buyer with sixty (60) days’ prior notice of any such collateral assignment or pledge. Notwithstanding the foregoing or anything else expressed or implied herein to the contrary, Seller shall not assign, transfer, convey, encumber, sell or otherwise dispose of all or any portion of the Energy, Environmental Attributes or Capacity Rights (not including the proceeds thereof) to any Facility Lender ; provided, that the foregoing shall not limit Seller’s right to encumber or pledge all of its assets pursuant to a collater al assignment permitted under this Agreement in favor of any Facility Lender so long as Seller maintains the right to sell all or any portion of the Energy, Environmental Attributes or Capacity Rights to Buyer free and clear of any Liens.
(e) It is specifically agreed that there are no third party beneficiaries of this Agreement, and that, except as provided in this Section 14.6, this Agreement shall not grant any rights enforceable by any Person not a party to this Agreement. (f) In no event shall Buyer be liable to any Facility Lender for any claims, losses, expenses or damages whatsoever other than liability Buyer may have to Seller under this Agreement or the Option Agreement, as applicable. In the event of any foreclosure, whe ther judicial or nonjudicial, or any deed in lieu of foreclosure, in connection with any deed of trust, mortgage, or other similar Lien, such Facility Lender (or its designee that acquires title to the Facility, as applicable) shall be bound by the covenants and agreements of Seller in this Agreement and the Option Agreement; provided, however, that until the Person who acquires title to the Facility executes and delivers to Buyer a written assumption of Seller’s obligations under this Agreement in form and substance acceptable to Buyer, such Person shall not be entitled to any of the benefits of this Agreement. Any sale or transfer of all or any portion of the Facility by Facility Lender shall be made only to an entity that is a Qualified Transferee.

Section 14.7 Ambiguity. The Parties acknowledge that this Agreement was jointly prepared by them, by and through their respective legal counsel, and any uncertainty or ambiguity existing herein shall not be interpreted against either Party on the basis that the Party drafted the language, but otherwise shall be interpreted according to the application of the rules on interpretation of contracts.

Section 14.8 Attorney Fees & Costs/Reimbursement of Buyer’s Attorneys’ Fees .

Both Parties agree that in any action to enforce the terms of this Agreement that each Party shall be responsible for its own attorney fees and costs. Each of the Parties was represented by its respective legal counsel during the negotiation and execution of this Agreement. Notwithstanding the foregoing, to the extent Buyer incurs legal costs in order to facilitate a Sale Leaseback Financing under Section 12.5(c) or the collateral assignment or pledge of this Agreement under Section 14.6(d), to evaluate whether the provisions of the Right of First Offer apply or whether a Change in Control has occurred, or such other action or review that is at the request of Seller, 172 of 489

84 including in Section 13.4, or as may be required due to the actions or omissions of, Seller, Seller shall bear Buyer’s reasonable and documented legal costs therefor.

Section 14.9 Voluntary Execution. Both Parties acknowledge that they have read and fully understand the content and effect of this Agreement that the provisions of this Agreement have been reviewed and approved by their respective counsel. The Parties further acknowledge that they have executed this Agreement voluntarily, subject only to the advice of their own counsel, and do not rely on any promise, inducement, representation or warranty that is not expressly stated herein.

Section 14.10 Entire Agreement; Amendments . This Agreement (including all Appendices and Exhibits) contains the entire understanding concerning the subject matter herein and supersedes and replaces any prior negotiations, discussions or agreements between the Parties, or any of them, concerning t hat subject matter, whether written or oral, except as expressly provided for herein. This is a fully integrated document. Each Party acknowledges that no other party, representative or agent, has made any promise, representation or warranty, express or implied, that is not expressly contained in this Agreement that induced the other Party to sign this document. This Agreement may be amended or modified only by an instrument in writing signed by each Party.

Section 14.11 Governing Law. This Agreement shall be governed by, interpreted and enforced in accordance with and construed under the laws of the State of California without regard to conflict of law principles.

Section 14.12 Venue. All litigation arising out of, or relating to this Agreement, shall be brought in a state or federal court in the County of Los Angeles in the State of California. The Parties irrevocably agree to submit to the exclusive jurisdiction of such courts in the State of California and waive any defense of forum non conveniens.

Section 14.13 Execution in Counterparts . This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. The Parties may execute this Agreement by manual signature or by electronic signature, each of which shall have the same force and effect. A signed copy of this Agreement transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this A greement for all purposes, to the extent provided under applicable law, including California’s Uniform Electronic Transactions Act.

Section 14.14 Effect of Section Headings. Section headings appearing in this Agreement are inserted for convenience only and shall not be construed as interpretations of text.

Section 14.15 Waiver. The failure of either Party to enforce or insist upon compliance with or strict performance of any of the terms or conditions hereof, or to take advantage of any of its rights hereunder, shall not constitute a waiver or relinquishment of any such terms, conditions or rights, but the same shall be and remain at all times in full force and effect. Notwithstanding anything expressed or implied herein to the contrary, nothing contained herein shall preclude either Party from pursuing any available remedies for breaches not rising to the level of a Default, 173 of 489

85 including recovery of damages caused by the breach of this Agreement and specific performance or any other remedy given under this Agreement or now or hereafter existing in law or equity or otherwise. Each Party acknowledges that money damages may not be an adequate remedy for violations of this Agreement and that either Party may, in its sole discretion, seek and obtain from a court of competent jurisdiction specific performance or injunctive or such other relief as such court may deem just and proper to enforce this Agreement or to prevent any violation hereof. Each Party hereby waives any objection to specific performance or injunctive relief. The rights granted herein are cumulative.

Section 14.16 Relationship of the Parties . This Agreement shall not be interpreted to create an association, joint venture or partnership between the Parties or to impose any partnership obligation or liability upon either such Party. Neither Party shall have any right, power or authority to en ter into any agreement or undertaking for, or act on behalf of, or to act as an agent or representative of, the other Party.

Section 14.17 Indemnification; Damage or Destruction; Insurance; Limit of Liability.
(a) Indemnification. Seller undertakes and agrees to indemnify and hold harmless Buyer, each Participating Member, Los Angeles, the City Council of Los Angeles, the Board of Commissioners, and LADWP,, Glendale, Glendale’s City Council, Glendale Water and Power Commission and GWP and Buyer’s Board of Directors , and each of their respective officers, agents, employees, advisors, and Authorized Representatives, and each of the foregoing’s assigns and successors in interest (collectively, “Indemnitees”), and, at the option of Buyer, defend such Indemnitees from and against any and all suits and causes of action (including proceedings before FERC), claims, charges, damages (including indirect, consequential, or incidental), demands, judgments, costs, expenses, civil fines and penalties, other monetary remedies or losses of any kind or nature whatsoever, including but not limited to attorney’s fees (including allocated costs of internal counsel) or other monetary remedies and costs of litigation, obligation or liability of any kind or nature whatsoever, in any manner arising by reason of, or incident to, or connected in any manner with the non-performance or breach of this Agreement or any other act, error or omission or willful misconduct by or of Seller or Seller’s officers, employees, agents, subcontractors of any tier, including but not limited to any such non-performance breach, act, error or omission or willful misconduct that results in intellectual property infringement or leads to death, bodily injury or personal injury to any person, including Seller’s employees and agents or third persons, or damage or destruction to any property of any kind or nature whatsoever, of either Party or third person, or loss of use (hereinafter “ Indemnified Liabilities”), except to the extent caused by the gross negligence or willful misconduct of any such Indem nitee. The provisions of this paragraph shall be in addition to, and not exclusive of, any other rights or remedies which Indemnitees have at law, in equity, under this Agreement or otherwise. To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this subsection may be unenforceable in whole or in part because they are violative of any Requirement of Law or public policy, Seller shall contribute the maximum portion that it is permitted to pay and satisfy under applicable law to the payment and satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them. The provisions of this paragraph shall survive the expiration or termination of this Agreement.
174 of 489

86 (b) Damage or Destruction. Subject to the provisions of Section 14.5, in the event of any damage or destruction of the Facility or any part thereof, the Facility or such part thereof shall be diligently repaired, replaced or reconstructed by Seller so that the Facility or such part thereof shall be restored to substantiall y the same general condition and use as existed prior to such damage or destruction, unless a different condition or use is approved by Buyer. Any proceeds of Insurance with respect to such damage or destruction maintained as provided in this Agreement shall be applied, subject to the consent of the Facility Lender and the Tax Equity Investor, not to be unreasonably withheld, to the payment for such repair, replacement or reconstruction of the damage or destruction.
(c) Insurance. Seller shall obtain and maintain the Insurance coverages listed in Appendix F.
(d) Condemnation or Other Taking . For the Agreement Term, Seller shall promptly notify Buyer of the institution of any proceeding for the condemnation or other taking of the Facility or any portion thereof. Buyer may participate in any such proceeding and Seller will deliver to Buyer a ll instruments necessary or required by Buyer to permit such participation.

Without Buyer’s prior written consent (which shall not be unreasonably withheld), Seller shall not (i) agree to any compensation or award, nor (ii) take any action or fail to take any action which would cause the compensation to be determined. Subject to the consent of the Facility Lender, all awards and compensation for the taking or purchase in lieu of condemnation of the Facility or any portion thereof shall be applied toward the repair, restoration, reconstruction or replacement of the Facility. To the extent Buyer participates in any such proceeding in respect of any interests of Buyer and receives any award independent from that granted to Seller, Buyer may retain such award.
(e) LIMITATION OF LIABILITY . PRIOR TO THE COMMERCIAL
OPERATION DATE, SELLER’S AGGREGATE LIABILITY UNDER THIS AGREEMENT

FOR DAMAGES ARISING OUT OF THE PERFORMANCE OR UNEXECUSED

NONPERFORMANCE OF ITS OBLIGATIONS PURSUANT TO THIS AGREEMENT AS A

CONSEQUENCE OF A CLAIM OR SUIT INITIATED BY BUYER SHALL NOT EXCEED

THE AMOUNT OF FORTY-EIGHT MILLION SIX HUNDRED THOUSAND DOLLARS ($48,600,000); PROVIDED, HOWEVER, THAT THE FOREGOING LIABILITY CAP SHALL

NOT APPLY TO ( A) INDEMNIFICATION OBLIGATIONS OF SELLER TO BUYER

HEREUNDER IN RESPECT OF LIABILITIES OF BUYER TO THIRD PARTIES OR ( B)

LIABILITY ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER, OR ANY OF SELLER’S OFFICERS, AGENTS, EMPLOYEES OR SUBCONTRACTORS OF ANY TIER. EXCEPT TO THE EXTENT INCLUDED IN (I) DAILY

DELAY DAMAGES, SHORTFALL LIQUIDATED DAMAGES, SHORTFALL PENALTY, OR

ANY OTHER LIQUIDATED DAMAGES, (II) INDEMNIFICATION OBLIGATIONS OF

SELLER TO BUYER HEREUNDER IN RESPECT OF LIABILITIES OF BUYER TO THIRD

PARTIES, AND (III) ANY OTHER SPECIFI C CHARGES EXPRESSLY PROVIDED FOR

HEREIN, NEITHER PARTY HEREUNDER SHALL BE LIABLE FOR SPECIAL,

INCIDENTAL, EXEMPLARY, INDIRECT, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF A PARTY’S PERFORMANCE OR NON-PERFORMANCE UNDER THIS

AGREEMENT, WHETHER BASED ON OR CLAIMED UNDER CONTRACT, TORT 175 of 489

87 (INCLUDING SUCH PARTY’S OWN NEGLIGENCE) OR ANY OTHER THEORY AT LAW

OR IN EQUITY, PROVIDED, HOWEVER, THE FOREGOING LIMITATION OF LIABILITY

SHALL NOT APPLY TO LIABILITY ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SELLER, OR ANY OF SELLER’S OFFICERS, AGENTS, EMPLOYEES OR SUBCONTRACTORS OF ANY TIER.

Section 14.18 Severability. In the event any of the terms, covenants or conditions of this Agreement, or the application of any such terms, covenants or conditions, shall be held invalid, illegal or unenforceable by any court having jurisdiction, all other terms, covenants and conditions of this Agreement and their application not adversely affected thereby shall remain in force and effect, provided that the remaining valid and enforceable provisions materially retain the essence of the Parties’ original bargain.

Section 14.19 Confidentiality.
(a) Each Party agrees, and shall use reasonable efforts to cause its parent, subsidiary and Affiliates, and its and their respective directors, officers, employees, representatives and agents, as a condition to receiving confidential information hereunder, to keep confidential, except as required by applicable laws: (i) all documents, data, drawings, studies, projections, plans and other written information that relate to economic benefits to, or amounts payable by, either Party under this Agreement, and (ii) documents that are clearly marked “Confidential” at the time a Party shares such information with the other Party ((i) and (ii), the “Confidential Information”).

The provisions of this Section 14.19 shall survive and shall continue to be binding upon the Parties for period of one (1) year following the date of termination of this Agreement. Notwithstanding the foregoing, information shall not be considered Confidential Information which (A) is disclosed with the prior written consent of the originating Par ty, (B) was in the public domain prior to disclosure or is or becomes publicly known or available other than through the action of the receiving Party in violation of this Agreement, (C) was lawfully in a Party’s possession or acquired by a Party outside of this Agreement, which acquisition was not known by the receiving Party to be in breach of any confidentiality obligation, or (D) is developed independently by a Party based solely on information that is not considered confidential under this Agreement. (b) Either Party may, without violating this Section 14.19, disclose matters that are made confidential by this Agreement:
(i) To its counsel, accountants, auditors, advisors, other professional consultants, credit rating agencies, actual or prospective co- owners, investors, lenders, underwriters, contractors, suppliers, and others involved in construction, operation, and financing transactions and arrangements for a Party or its subsidiaries, Affiliates, or parent; (ii) To Governmental Authorities and parties involved in any proceeding in which either Party is seeking a Permit, certificate, or other regulatory approval or order necessary or appropriate to carry out this Agreement; to Governmental Authorities or the public as required by any applicable law, regulation, order, rule, ruling or other Requirement of Law, including oral questions, discovery requests, subpoenas, civil investigations or similar processes and laws or regulations requiring disclosure of financial information, information material to financial matters, and filing of financial reports. 176 of 489

88 (c) If a Party is requested or required, pursuant to any applicable law, regulation, order, rule, ruling or other Requirement of Law, discovery request, subpoena, civil investigation or similar process to disclose any of the Confidential Information, such Part y shall provide prompt written notice to the other Party of such request or requirement so that, at such other Party’s expense, such other Party can seek a protective order or other appropriate remedy concerning such disclosure.
(d) Notwithstanding the foregoing or any other provision of this Agreement, Buyer may record, register, deliver and file all such notices, statements, instruments and other documents as may be necessary or advisable to render fully valid, perfected and enforceable under all Requirements of Law the credit support contemplated by this Agreement and the Ancillary Documents, including the Development Security, and the Performance Security, and the rights, Liens and priorities of Buyer with respect to such credit support. (e) Notwithstanding the foregoing or any other provision of this Agreement, Seller acknowledges that Buyer, as a California joint powers authority, and each Participating Member is subject to disclosure as required by the California Public Records Act, Cal. Govt. Code §§ 7920, et. seq. (“CPRA”), and the Ralph M. Brown Act, Cal. Govt. Code §§ 54950, et. seq. (“Brown Act”), each as may be amended or superseded from time to time. Seller acknowledges that Buyer shall not be in breach of this Agreement or have any liability whatsoever under this Agreement or otherwise for any claims or causes of action whatsoever resulting f rom or arising out of Buyer or any Participating Member copying or releasing to a third party any Confidential Information of Seller pursuant to the CPRA or Brown Act. (f) If Buyer receives a CPRA request for Confidential Information of Seller, and Buyer determines that such Confidential Information is subject to disclosure under the CPRA, then Buyer will notify Seller of the request and its intent to disclose the documents. Buyer, as required by the CPRA, will release such documents unless Seller timely obtains a court order prohibiting such release. If Seller, at its sole expense, chooses to seek a court order prohibiting the release of Confidential Information pursuant to a CPRA request, then Seller undertakes and agrees to defend, indemnify and hold harmless the Indemnitees from and against all suits, claims, and causes of action brought against any Indemnitee for Buyer’s refusal to disclose Confidential Information of Sel ler to any person making a request pursuant to CPRA. Seller’s indemnity obligations shall include all actual costs incurred by any Indemnitee, and specifically includes costs of experts and consultants as well as all damages or liability of any nature whatsoever arising out of any such suits, claims, and causes of action brought against any Indemnitee, through and including any appellate proceedings. Seller’s obligations to all Indemnitees under this indemnification provision shall be due and payable on a monthly, ongoing basis within thirty (30) days after each submission to Seller of Buyer’s invoices for all fees and costs incurred by all Indemnitees, as well as all damages or liabilities of any nature. (g) Each Party acknowledges that any disclosure or misappropriation of Confidential Information by such Party in violation of this Agreement could cause the other Party or their Affiliates irreparable harm, the amount of which may be extremely difficult to estimate, thus making any remedy at law or in damages inadequate. Therefore each Party agrees that the non-breaching Party shall have the right to apply to any court of competent jurisdiction for a 177 of 489

89 restraining order or an injunction restraining or enjoining any breach or threatened breach of this Agreement and for any other equitable relief that such non- breaching Party deems appropriate.

This right shall be in addition to any other remedy available to the Parties in law or equity, subject to the limitations set forth in Section 14.17(e).

Section 14.20 Mobile-Sierra. Notwithstanding any provision of this Agreement, neither Party shall seek, nor shall they support any third party in seeking, to prospectively or retroactively revise the rates, terms or conditions of service of this Agreement through application or complaint to FERC pursuant to the provisions of Section 205, 206 or 306 of the Federal Power Act, or any other provisions of the Federal Power Act, absent prior written agreement of the Parties. Further, absent the prior agreement in writing by both Parties, the standard of review for changes to the rates, terms or conditions of this Agreement proposed by a Party, a non-Party or the FERC acting sua sponte shall be the “public interest” application of the “just and reasonable” standard of review set forth in United Gas Pipe Line Co. v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956), and clarified by Morgan Stanley Capital Group, Inc. v. Public Util. Dist. No. 1 of Snohomish, 554 U.S. 527 at 550- 51 (2008) and NRG Power Marketing, LLC v. Maine Public Utilities Comm’n, 558 U.S. 165 (2010).

Section 14.21 Right of First Offer and Right of First Refusal. From and after the fifth (5th) anniversary of the Commercial Operation Date and continuing through the Agreement Term, Buyer shall have a “Right of First Offer ” (or “ ROFO”) and a “Right of First Refusal” (or “ROFR”) for any proposed sale of all of the Facility or the Facility Assets or one hundred percent (100%) of the interests held directly or indirectly by Seller with respect to the Facility (any “Disposition”); provided that the ROFO and ROFR shall not apply to sales of any interests of Seller in con nection with (a) any Tax Financing or Sale Leaseback Financing, (b) sales of any interests in Seller to any Affiliate of Seller, or (c) sales in connection with the exercise of a Facility Lender’s remedies pursuant to any Financing Agreement to a Qualified Transferee. (a) Seller shall not consummate any Disposition without complying with the provisions of this Section 14.21. Prior to Seller consummating any Disposition, Seller shall provide notice to Buyer of Seller’s proposed transaction, including the proposed purchase price and basic terms and conditions associated therewith (a “Proposed Sale Notice”). Upon receipt of a Proposed Sale Notice, Buyer shall have seventy -five (75) days in which to notify Seller that Buyer may purchase the Facility Assets from Seller (a “Prop osed Purchase Notice ”). If Buyer provides Seller with a Proposed Purchase Notice, then unless and until Seller sends a notice to Buyer rejecting Buyer’s proposed purchase price (“Rejection Notice”), the Parties shall undertake for a period of up to one hundred eighty (180) days after the date of Buyer’s Proposed Purchase Notice to reach an agreement on the terms and conditions of a sale of the Facility Assets to Buyer and to close on the sale of s uch Facility Assets within ninety (90) days thereafter, which ninety (90) days may be extended to the extent required to obtain funding and any necessary third- party or governmental (including approval from a Participating Member’s board or city council). (b) If (i) Buyer does not provide a Proposed Purchase Notice to Seller, (ii) Seller issues a Rejection Notice or (iii) the Parties are unable to agree upon the terms and conditions of a sale of the Facility Assets to Buyer and close on such sale within the tim e periods 178 of 489

90 set forth in Section 14.21(a), then Seller shall be free to negotiate a Disposition to any third party, subject to the ROFR; provided, however, that (A) any Disposition shall include the assignment of this Agreement and Seller’s rights under the Ancillary Documents (in accordance with Section 14.6), and (B) a purchase agreement with respect to such Disposition is executed within one hundred eighty (180) days after the delivery of the Proposed Sale Notice, and such purchase agreement closes within ninety (90) days thereafter, which ninety (90) day period may be extended to the extent required to obtain any necessary third-party or governmental approvals. If Seller and such third party are unable to consummate the Disposition within the aforementioned time period, Seller shall be obligated to repeat the ROFO process. If Buyer provided a Proposed Purchase Notice, then prior to consummating any such Disposition, Seller shall provide Buyer with a concise summary of the commercial terms negotiated by Seller with the third party (a “Notice of Proposed Third Party Sale”) in which Seller shall confirm whether the agreed upon purchase price is less than or equal to 95% of the proposed purchase price in the Proposed Purchase Notice. If the proposed purchase price set forth in the Notice of Proposed Third Party Sale is equ al to or less than ninety-five percent (95%) of the purchase price included in the Proposed Purchase Notice, then Buyer shall have forty- five (45) days to exercise its Right of First Refusal to purchas e the Facility Assets on substantially similar terms to those set forth in the Notice of Proposed Third Party Sale, subject to any modifications required to conform the transaction to requirements for transactions entered into by public agencies. If Buyer exercises the ROFR, then Buyer and Seller shall attempt to reach agreement on the terms and conditions of a purchase and sale agreement within one hundred eighty (180) days after Buyer’s submittal of the ROFR and close within ninety (90) days thereafter, which such ninety (90) day period may be extended to the extent required to obtain funding or any necessary third party or governmental approvals (including any approvals required by the Participating Members’ board or city council). If the Parties cannot reach agreement within ninety (90) days after Buyer’s submittal of the ROFR, Seller may consummate the proposed Disposition; provided that a purchase agreement is executed within two hundred seventy (270) days after delivery of the ROFR and such purchase agreement closes within ninety (90) days thereafter, which ninety (90) day period may be extended to the extent required to obtain any necessary third party or governmental approvals. If Buyer does not elect to exercise its Right of First Refusal and purchase the Facility Assets within such forty-five (45) days or if the proposed purchase price set forth in the Notice of Proposed Third Party Sale is greater than ninety- five percent (95%) of the purchase price included in the Proposed Purchase Notice, then Seller shall be free to consummate the Disposition; provided that (A) such any sale of the Facility Assets to a third party shall include the assignment of this Agreement and Seller’s rights and obligations under the Ancillary Documents, and (B) a purchase agreement is executed within one hundred eighty (180) days after Seller’s issuance of the Notice of Proposed Third Party Sale and such purchase agreement closes within ninety (90) days thereafter, which ninety (90) day period may be extended to the extent required to obtain any necessary third-party or governmental approvals. If Seller and such third party are unable to consummate the Disposition within the aforementioned time period, Seller shall be obligated to repeat the ROFO/ROFR process.

Section 14.22 Future Phases. During the Term, if Seller or Affiliates of Seller develop additional phases of the Facility or additional projects that (i) share real estate with the Facility Site or infrastructure or equipment of the Facility or (ii) interconnect through the Point of Interconnection, then Seller shall offer to Buyer a power purchase agreement ( which shall be substantially in the form of this Agreement) and a purchase option (which shall be substantially in 179 of 489

91 the form of the Option Agreement) for such additional phase or project. Buyer and Seller shall have one hundred twenty (120) days in which to negotiate diligently in good faith, on an exclusive basis, the applicable definitive agreements. If Buyer and Seller cannot mutually agree on the terms of the definitive agreements after good faith diligent negotiation for a period of one hundred twenty (120) days, then Seller may sell the energy from such additional phase or project to a third part y; provided that Seller may not offer terms with respect to such third party which are more favorable than the terms offered to Buyer. If Buyer and Seller mutually agree on the terms of an exclusivity agreement for the purchase of energy from such additional phase or project, then, for the period of time specified in the exclusivity period, Buyer and Seller shall negotiate diligently in good faith to reach agreement on the terms of a power purchase agreement and a purchase option with respect to such additional phase or project. If Buyer and Seller cannot mutually agree on terms of a power purchase agreement and a purchase option with respect to such additional phase or project after good faith diligent negotiation for the period of time specified in such exclusivity agreement, then Seller may sell the energy from such additional phase or project to a third party; provided that Seller may not offer terms with respect to the purchase of energy from such additional phase or project to such third party which are more favorable than the terms offered to Buyer. As of the Effective Date, storage is not included in the Facility. In recognition of emerging technologies and opportunities that will continue to evolve during the Agreement Term, the Parties may incorporate the use of storage technologies into the Facility; provided that the incorporation of the use of storage technologies shall be subject to terms and conditions mutually agreed to by Buyer and Seller. If in connection with Seller’s or any of its Affiliates’ development of additional phases of the Facility or additional projects, Seller reasonably determines that it requires the use of certain shared facilities, the right to occupy or use shared real property, or the ownership or governance of the rights associated with either , then upon written notice to Buyer from Seller, Buyer shall reasonably cooperate and negotiate in good faith with Seller or Seller’s Affiliates to enter into one or more Shared Facilities Agreements with Seller ’s Affiliates, subject to the approval of Buyer, which approval shall not be unreasonably withheld so long as Buyer is not materially adversely impacted (including under this PPA) by the terms and conditions of any such Shared Facilities Agreement. Each such Shared Facilities Agreement shall provide Buyer with the right to approve any material amendments to each form for the purpose of protecting Buyer’s rights under this Agreement and the Option Agreement, and shall provide that Buyer is a third party beneficiary for the purpose of enforcing the agreements, rights, obligations or remedies of Seller or any other party with whom Buyer has entered into a power purchase agreement.

Section 14.23 No Dedication of Facilities . Any undertaking by one Party to the other Party under any provisions of this Agreement shall not constitute the dedication of the Facility or any portion thereof of either Party to the public or to the other Party or any other Person, and it is understood and agreed that any such undertaking by either Party shall cease upon the termination of such Party’s obligations under this Agreement.

Section 14.24 Buyer and Participating Member Business Policies.

Seller acknowledges that its agreement to abide by the business policies of Buyer and the Participating Members is material to Buyer’s decision to enter into this A greement, and accordingly, Seller agrees that it will comply with the following, as such policies may be amended or updated from time to time:
180 of 489

92 (a) Recycling Policy.
(i) Buyer supports the use of recycled content products of all types.

Recycled content products help conserve natural resources, including water and energy, and reduce demands upon landfills.
(ii) To the extent feasible, Seller shall submit all written documents on paper with a minimum of thirty percent (30%) post -consumer recycled content. Existing company/corporate letterhead or stationery that accompanies these documents is exempt from this requirement. Documents of two (2) or more pages in length shall be duplex-copied (double-sided pages). Neon or fluorescent paper shall not be used in any written documents submitted to Buyer. (b) Non-Discrimination/Equal Employment Practices/Affirmative Action Construction & Non-Construction Agreements. (i) During the performance of this Agreement, Seller shall not discriminate in its employment practices against any employee or applicant for employment because of race, religion, national origin, ancestry, sex, sexual orientation, age, disability, marital status, domestic partner status, or medical condition. All subcontracts awarded by Seller under this Agreement shall contain a like nondiscrimination provision. The applicable provisions of Executive Order No. 11246 of September 24, 1965; Part 60 741 of 41 Code of Federal Regulations pertaining to handicapped workers, including 60 741.4 Affirmative Action Clause; and Sections 10.8 to 10.13 of the Los Angeles Administrative Code (“LAAC”) pertaining to nondiscrimination in employment in the performance of City of Los Angeles contracts are incorporated herein by reference and made a part hereof as if they were fully set forth herein. (ii) Any of the above-mentioned subcontracts shall be effective for twelve (12) months following the date of approval for the Affirmative Action practices. An Affirmative Action plan shall be in effect and on file with Buyer for the duration of this Agreement. (c) Small Business Enterprise (“SBE”) and Disabled Veteran Business Enterprise (“DVBE”) Opportunity Program. (i) It is the policy of LADWP, which Buyer must comply with, to provide SBEs, DVBEs, Disadvantaged Business Enterprises (“DBEs”), Emerging Business Enterprises, Women Business Enterprises (“ WBEs”), Minority Business Enterprises (“MBEs”), Lesbian, Gay, Bisexual, or Transgender Business Enterprises (“ LGBTBEs”) and all Other Business Enterprises (“OBEs”) an equal opportunity to participate in the performance of all Buyer contracts. (ii) LADWP’s goals for SBE/DVBE participation in performance of its contracts are twenty-five percent (25%) for SBEs and three percent (3%) for DVBEs. Seller shall assist Buyer in implementing this policy by taking all commercially reasonable steps to ensure that all available business enterprises, including SBEs and DVBEs, have an equal opportunity to compete for and participate in the work being requested by this Agreement. (iii) Seller shall notify LADWP if Seller is a certified SBE, DVBE, DBE, WBE, LGBTBE or MBE. Seller shall provide to LADWP (A) the company name, contact person, address, and telephone number of each proposed Subcontractor that qualifies as an SBE, DVBE, DBE, WBE, LGBTBE or MBE, and (B) copies of all certifications of such Subcontractor as an SBE, DVBE, DBE, WBE, LGBTBE or MBE, as applicable.
(d) Child Support Policy . Seller and any of its Subcontractors shall fully comply with all applicable state and federal employment reporting requirements for Seller’s and 181 of 489

93 any Seller’s Subcontractors’ employees. Seller and any of its Subcontractors shall fully comply with all lawfully served Wage and Earnings Assignment Orders and Notices of Assignment in accordance with the California Family Code. Seller and any of its Subcontractors shall certify that the principal owners thereof (which shall include any person who owns an interest of ten percent (10%) or more) complies with any Wage and Earnings Assignment Orders or Notices of Assignment applicable to them personally. Sell er and any of its Subcontractors shall certify that such compliance will be maintained throughout the Agreement Term. Failure of Seller or any its Subcontractors to fully comply with all applicable reporting requirements or to implement lawfully served Wag e and Earnings Assignments or Notices of Assignment or failure of the principal owners to comply with any Wage and Earnings Assignments or Notices of Assignment applicable to them personally shall constitute an event of default under this Agreement. Failur e of Seller or any its Subcontractors or principal owners thereof to cure the event of default within ninety (90) days of notice of such event of default by Buyer shall subject this Agreement to termination. (e) Current Los Angeles City Business Tax Registration Certificate Required. Seller shall obtain and keep in full force and effect during the Agreement Term either (i) all Business Tax Registration Certificates required by the City of Los Angeles Business Tax Ordinance, Article 1, Chapter II, Section 21.00 or (ii) Seller’s Vendor R egistration Number.

Seller’s Vendor Registration Number must be shown on all invoices submitted for payment.

Failure to do so may delay payment. For additional information regarding applicability of the City Business Tax Registration, contact the City of Los Angeles Clerk’s Office at (213) 978-1521. (f) Taxpayer Identification Number (TIN). Seller has provided its taxpayer identification number ( TIN) to Buyer in writing. No payment will be made to Seller under this Agreement without a valid TIN number.
(g) Equal Benefits Ordinance. Seller agrees to comply with the requirements of the Equal Benefits Ordinance (“EBO”), codified at LAAC § 10.8.2.1, and to sign any required certifications related to such ordinance. Seller agrees to complete the form attached to Appendix Q related to the EBO and any certifications attached thereto. (h) Contractor Responsibility Ordinance. Seller agrees to comply with the requirements of the Contractor Responsibility Ordinance (“ CRO”), codified at LAAC § 10.40 et seq., and sign any required certifications related to such ordinance. Seller agrees to complete the form attached to Appendix Q related to the CRO and any certifications attached thereto. (i) Sweat-Free Procurement Ordinance. Seller agrees to comply with the requirements of the Sweat Free Procurement Ordinance (“SFPO ”), codified at LAAC § 10.43 et seq., and sign any required certifications related to such ordinance. Seller agrees to complete the form attached to Appendix Q related to the SFPO and any certifications attached thereto. In the case of impracticality in any provisions of the form due to the substitution of Buyer for the City of Los Angeles, Buyer will reasonably accommodate changes or substitutions in the requirements of the form as necessary to accomplish the purpose of the SFPO. (j) Iran Contracting Act of 2010. In accordance with California Public Contract Code Sections 2200 2208, all bidders submitting proposals for, entering, or renewing contracts with the City of Los Angeles for goods and services estimated at $1,000,000 or more are 182 of 489

94 required to complete, sign, and submit the “Iran Contracting Act of 2010 Compliance Affidavit ” in the form attached to Appendix Q.
(k) Prevailing Wage . Seller and Seller’s agents, employees and contractors shall, in connection with their performance of this Agreement or their work in respect of the Facility, comply with all applicable provisions of the labor and employment laws and all other Requirements of Law of the state(s) and municipality(ies) in which they operate, including requirements affecting the hours of work, wages and other compensation of employees, nondiscrimination and other conduct of the work. Workers at the Facility sha ll be paid not less than prevailing wages required under local labor and employment laws, if applicable. Seller shall ensure that the construction Facility is governed by a project labor agreement, community workforce agreement, work site agreement, collective bargaining agreement, or any other similar agreements providing for terms and conditions of employment with applicable labor organizations. (l) Los Angeles Municipal Lobbying Ordinance. Seller agrees to comply with the disclosure requirements and prohibitions established in the Los Angeles Municipal Lobbying Ordinance if Seller qualifies as a lobbying entity under Los Angeles Municipal Code Section 48.02.
(m) California Russia Sanctions. Seller will use reasonable best efforts to ensure that Seller complies with California State Executive Order N -6-22, dated March 4, 2022 (“State Executive Order ”) concerning economic sanctions (“ Economic Sanctions”). Seller has read the State Executive Order, is not the subject or target of any Economic Sanctions, and will use reasonable best efforts to comply with any reasonable request to report information or submit documents to the State, or Buyer, or both, be fore or after the expiration, termination, or cancellation of this Agreement. At any time and upon written notice to Seller , Buyer, in its sole discretion, may either immediately invoke any one or more of the remedies listed in Section 13.2 for Default under Section 13.1(b), or terminate this Agreement for Buyer’s convenience under Section 13.3, if Buyer determines that any one or more of the following circumstances or events have occurred:
(i) Seller is the subject or target of Economic Sanctions; (ii) Seller is conducting prohibited transactions with sanctioned individuals or entities; or
(iii) Seller has failed to comply, in any manner, with the State Executive Order.

Section 14.25 Service Contract. The Parties intend that this Agreement will qualify as a “service contract” as such term is used in Section 7701(e) of the Code. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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IN WITNESS WHEREoF, each parry was represented by legal .counsel during the negotiation and execution of this Agre.ment unO ttt. Parties have exlcutiO tnit Agreement as of if,JOur.t set forth below effective as of the Effective Date' Date:4
Approved as to legal form
By:

C tnez
General
SOUTHERN.CALIFORN PUBLIC POWER AUTHORITY
By
Singh
Vice President
Attest:

LJV
Daniel E. la
Assistant Secretary
[Signature Page of Notch Peak Project PPA]
184 of 489

[Signature Page of Notch Peak Project PPA]

Notch Peak Project, LLC, a Delaware limited liability company

By:

Name: Michael U. Alvarez
Title: Chief Operating Officer

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A-1

APPENDIX A
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

CONTRACT PRICES
General Contract Prices. Subject to all of the terms and conditions of this Agreement:

1. Startup and Test Energy: Buyer shall, subject to the limitations in Section 3.3(b) of the Agreement, purchase and pay for all Startup and Test Energy from the Facility (along with all associated Environmental Attributes and Capacity Rights) for an aggregate price equal to fifty percent (50%) of the applicable Full Contract Price (the “Startup Price”).

2. Payment for Delivered Energy After Facility Commercial Operation Date: Full Contract Price.

Commencing on the Commercial Operation Date of the Facility, Buyer shall purchase and pay for all Delivered Energy (along with all associated Environmental Attributes and Capacity Rights but excluding Excess Energy and its associated Environmental Attributes and Capacity Rights) for an aggregate price, as set forth below (the “Full Contract Price”):
a. $46.75 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement occurs by May 31, 2026;
b. $50.85 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement occurs (a) after May 31, 2026, and (b) by the date the Facility is “placed in service” for tax purposes pursuant to 26 C.F.R. § 1.48-9(b)(5) (“Placed in Service”); c. $52.70 per MWh fixed for the Delivery Term, if the Qualified IPP Retirement does not occur by the date the Facility is Placed in Service. “Qualified IPP Retirement” means at least one unit of the Intermountain Power Plant is classified as retired by the U.S. Energy Information Administration of the U.S. Department of Energy in the Preliminary Monthly Electric Generator Inventory or the Electric Generator Inventory, without irregular location information, and as a result the coal -fired electric generating unit retirement condition for qualification for the Energy Community Adder for the ITC or PTC is satisfied for the Facility.

3. Federal Tax Credit Adder Sharing. If the Full Contract Price is set at the amount set forth in this Appendix A, Section 2.c. and the Facility qualifies for any Energy Community Adder for the ITC or PTC , Seller shall pass through to Buyer fifty percent (50%) of the 186 of 489

A-2

economic benefit (net only of out -of-pocket third- party expenses) with respect to the Energy Community Adder realized by Seller (or any upstream Affiliate of Seller including, in the case of a tax equity partnership that directly or indirectly owns Seller, the so- called Class B Member but excluding any T ax Equity Investor) from a Tax Equity Investor or a tax credit transferee substantially concurrently with when such benefit is actually received by Seller or its applicable A ffiliate (such payment, the “ EC Adder Payment ”) (and the period for which the EC Adder Payment is made, the “EC Adder Payment Period”).

For the avoidance of doubt, (i) no amount shall be due to Buyer unless and until such benefit is actually realized in cash (or equivalent value) by Seller or its applicable affiliate, (ii) in no event shall Seller or its Affiliates be required to pay any amount associated with a discount at which the adder is monetized and (iii) amounts shall not be deemed to be “actually realized in cash (or equivalent value) by Seller or its applicable A ffiliate” until any applicable restricted payment or distribution conditions under any project financing or Tax Financing related to the Facility have been satisfied. Seller shall not enter into or structure any project financing or T ax Financing, refinancing or other transaction, or add any feature thereto, that is designed to circumvent or frustrate the payment obligations owed to Buyer pursuant to this Section 3; provided, that a bona fide, arm’s-length project financing or Tax Financing consistent with market practice shall not be deemed to violate such requirement solely because it may affect the timing or amount of such payments.

4. Payment for Excess Energy: Excess Energy Price. During the Initial Stub Year, each Contract Year thereafter, and the Final Stub Year, Buyer shall purchase and pay for all (a) Delivered Energy comprising Excess Energy 110% -120% (along with all associated Environmental Attributes and Capacity Rights) for an aggregate price equal to forty percent (40%) of the applicable Full Contract Price per MWh and (b) for all Delivered Energy comprising Excess Energy > 120% (along with all associated Environmental Attributes and Capacity Rights) for an aggregate price equal to twenty -five percent ( 25%) of the applicable Full Contract Price per MWh (the “Excess Energy Price”). 187 of 489

B-1

APPENDIX B
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

FACILITY DESCRIPTION AND MILESTONE SCHEDULE
ARTICLE I. FACILITY DESCRIPTION

1. Name of Facility: Solar photovoltaic powered electric generating facility, known as the “Notch Peak Project”

2. Facility Site: Millard County, Utah

The Project site is located at Latitude:
39°31'23.42"N; Longitude: 112°40'9.06"W

3. Generator Owner: Notch Peak Project, LLC

4. Generator Operator: Notch Peak Project, LLC, or a Qualified Operator

5. Equipment:
(a) Type of Facility: Photovoltaic solar generation

(b) Contract Capacity: 324 MW-ac

6. Target Commercial Operation Date: September 30, 2028

7. Other included facilities: N/A

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ARTICLE II. MILESTONE SCHEDULE

Note - a single “*” designates a Key Milestone.

Note – a double “**” indicates that the Parties anticipate that the Approvals Date will occur on or prior to October 31, 2026. If the Approvals Date has not occurred on or prior to October 31, 2026, the Guaranteed Commercial Operation Date set forth below shall be extended for each day of such delay until all such approvals have been obtained.

No. Milestone Date Milestone Description

Daily Liquidated Damages or
Other Remedies for Delay

1. Complete Execute the Interconnection
Agreement

2. Complete Execute and deliver evidence
of Site Control Agreements

3. Ten (10) Business Days
following Approvals Date
Provision of Development
Security

4. Commercial Operation Date Post Performance Security

5. Ninety (90) days following
Approvals Date
Execute Facility financing
documents Mitigation Plan to complete

6. Ninety (90) days following
Approvals Date
Construction
Commencement Milestone Mitigation Plan to complete

7. Guaranteed Commercial
Operation Date** (as may
be extended pursuant to the
terms of this Agreement)
*Commercial Operation Date
$180,000 per day for each day of
delay for up to 180 days of delay
(up to amount of Development
Security)
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APPENDIX C
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

BUYER AND SELLER BILLING, NOTIFICATION AND

SCHEDULING CONTACT INFORMATION

1. Authorized Representative. Correspondence pursuant to Section 14.1 shall be transmitted to the following addresses:

1.1 If to Buyer:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Attention: Executive Director
Email: [email protected]; [email protected]

With a copy to:

Los Angeles Department of Water and Power
RE: Notch Peak Project
111 N. Hope Street, Room 1263
Los Angeles, California 90012
Attention: External Resources Management Group – Stanley Chang

Glendale Water and Power
141 N. Glendale Avenue, Level 4
Glendale, CA 91206
Attention: GWP – Power Management
Email: [email protected]

Or, if sent electronically, under Section 4.3, Section 4.6, or Section 4.7, send to all the emails listed below:

[email protected]
[email protected]

1.2 If to Seller:
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Notch Peak Project, LLC
c/o Longroad Energy

125 High Street
High Street Tower
Suite 1705
Attention: Asset Management
Email: [email protected]
Fax: (617) 819-8083

With a copy to:

Longroad Energy
125 High Street
High Street Tower
Suite 1705
Attention: General Counsel
Email: [email protected]
Fax: (617) 819-8083

2. Billings and payments pursuant to Section 6.1 and Appendix A shall be transmitted to the following addresses:

2.1 If Billing to Buyer:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Attention: Finance and Accounting,
Email: [email protected]
and to: [email protected]

With a copy to:

Los Angeles Department of Water and Power
SCPPA Accounting Section
Re: Notch Peak Project
Atif A. Haji Datoo
111 N. Hope St., Room 462
Los Angeles, California 90012

Or, if sent electronically, under Section 4.3, Section 4.6, or Section 4.7, send to all the emails listed below:

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[email protected]

2.2 If Payment to Buyer:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Attention: Finance and Accounting, [email protected]

With a copy to:

Los Angeles Department of Water and Power
SCPPA Accounting Section
Re: Notch Peak Project
Atif A. Haji Datoo
111 N. Hope St., Room 462
Los Angeles, California 90012

Or, if sent electronically, under Section 4.3, Section 4.6, or Section 4.7, send to all the emails listed below:

[email protected]

2.3 If Billing to Seller:

Notch Peak Project, LLC
c/o Longroad Energy
125 High Street
High Street Tower
Suite 1705
Attention: Accounts Payable
Email: [email protected]
Fax: (617) 819-8083

2.4 If Payment to Seller:

Notch Peak Project, LLC
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C-4

c/o Longroad Energy
125 High Street
High Street Tower
Suite 1705
Attention: Accounts Payable
Email: [email protected]
Fax: (617) 819-8083

3. All notices (other than scheduling notices) required under the Agreement shall be sent pursuant to Section 14.2, postage prepaid, to the address specified below:

If to Buyer:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Attention: Executive Director
Email: [email protected]

With a copy to:

Los Angeles Department of Water and Power
RE: Notch Peak Project
111 N. Hope Street, Room 1263
Los Angeles, California 90012
Attention: External Resources Management Group – Stanley Chang

Or, if sent electronically, under Section 4.3, Section 4.6, or Section 4.7, send to all the emails listed below:

[email protected]
[email protected]

And, if prior to the achievement of Commercial Operation, with a copy to:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Attention: Randy Krager, [email protected]
Email: [email protected]
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C-5

If to Seller:

Notch Peak Project, LLC
c/o Longroad Energy

125 High Street
High Street Tower
Suite 1705
Attention: Asset Management
Email: [email protected]
Fax: (617) 819-8083

With a copy to:

Longroad Energy
125 High Street
High Street Tower
Suite 1705
Attention: General Counsel
Email: [email protected]
Fax: (617) 819-8083

4. Throughout the Delivery Term, all notices related to scheduling, forecasts, availability, real-time access to data, or an Access Failure related to the Facility shall be sent to the following address:

If to Buyer:

Southern California Public Power Authority
1160 Nicole Court
Glendora, CA 91740
Telephone: 626-793-9364
Facsimile: 626-793-9461
Attention: Director of Asset Management
Email: [email protected]

With a copy to:

Los Angeles Department of Water and Power
RE: Notch Peak Project
111 N. Hope Street, Room 1263
Los Angeles, California 90012
Attention: External Resources Management Group – Stanley Chang Telephone: 213-367-2382

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C-6

And electronically to the emails listed below:

[email protected]
[email protected]

If to Seller:

Notch Peak Project, LLC
c/o Longroad Energy

125 High Street
High Street Tower
Suite 1705
Attention: Asset Management
Email: [email protected]
Fax: (617) 819-8083

With a copy to:

Longroad Energy
125 High Street
High Street Tower
Suite 1705
Attention: General Counsel
Email: [email protected]
Fax: (617) 819-8083

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D-1

APPENDIX D
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

FORM OF ATTESTATION

(Seller) Environmental Attribute Attestation and Bill of Sale __________________ (“Seller”) hereby sells, transfers and delivers to Southern California Public Power Authority (“Buyer”) the Environmental Attributes and Environmental Attribute Reporting Rights associated with the generation from the Facility described below:

Facility name and location:

Fuel Type:

Capacity (MW): Operational Date:

As applicable: CEC Reg. no. ___ Energy Admin. ID no. ____ Q.F. ID no. ___ Dates MWhrs generated
________________ 20__ ___________
________________ 20__ ___________
________________ 20__ ___________
in the amount of one Environmental Attribute or its equivalent for each megawatt hour generated.

Seller further attests, warrants and represents as follows:
i) the information provided herein is true and correct; ii) its sale to Buyer is its one and only sale of the Environmental Attributes and associated Environmental Attribute Reporting Rights referenced herein; iii) the Facility generated and delivered to the grid the Energy in the amount indicated as undifferentiated Energy; and
iv) Seller owns the Facility and each of the Environmental Attributes and Environmental Attribute Reporting Rights associated with the generation of the indicated Energy for delivery to the grid have been generated and sold by the Facility.

This serves as a bill of sale, transferring from Seller to Buyer all of Seller’s right, title and interest in and to the Environmental Attributes and Environmental Attribute Reporting Rights associated with the generation of the Energy for delivery to the grid.

Contact Person: ____________________ tel
196 of 489

E-1

APPENDIX E

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

SALE LEASEBACK REQUIREMENTS

If Seller enters into a Sale Leaseback Transaction, then, with respect to the Lease arising thereunder, Seller and the Lessor thereunder shall agree in writing with Buyer to the following:

(a) Seller shall at all times keep, perform, observe and comply with, or cause to be kept, performed, observed and complied with, all material covenants, agreements, conditions and other provisions required to be kept, performed, observed and complied with by or on behalf of Seller from time to time pursuant to the Lease, and Seller shall not do or permit anything to be done, the doing of which, or refrain from doing anything, the omission of which, would reasonably be expected to impair the rights of Seller under the Lease, or could be grounds for the Lessor to terminate the Lease.
(b) Seller shall promptly, but in any case no later than two (2) Business Days after learning of the occurrence of any of the following, give Buyer notice of (i) any default or of any event which, with the giving of notice or passage of time, or both, would become a default under the Lease or of the receipt by Seller of any notice from the Lessor thereof, or (ii) the commencement or threat of any action or proceeding or arbitration pertaining to the Lease. Buyer, at its option, may take any action (but shall not be obligated to take any action) from time to time deemed necessary or desirable by Buyer to prevent or cure, in whole or in part, any default by Seller under the Lease. Seller shall deliver to Buyer, promptly following service or delivery thereof on, to or by Seller, a copy of each petition, summons, complaint, notice of motion, order to show cause and other pleading or paper, however designated, which shall be served or delivered in connection with any such action, proceeding or arbitration. (c) In the event of the termination, rejection, or disaffirmance by Lessor (or by any receiver, trustee, custodian, or other party that succeeds to the rights of the Lessor) under the Lease pursuant to the Bankruptcy Code, Seller hereby presently, absolutely, irrevocably and unconditionally grants and assigns to Buyer the sole and exclusive right to make or refrain from making any election available to lessees under the Bankruptcy Code (including, without limitation, the election available pursuant to Section 365(h) of the Bankruptcy Code, 11 U.S.C. § 365(h), and any successor provision), and Seller agrees that any such election, if made by Seller without the prior written consent of Buyer (which Buyer would not anticipate granting due to the importance of the Lease as security), shall be void at inception and of no force or effect. Without limiting the generality of the foregoing sentence, Seller shall not, without Buyer’s prior written consent, elect to treat the Lease or the leasehold estate created thereby as terminated under Section 365 of the Bankruptcy Code, after rejection or disaffirmance of the Lease by the Lessor 197 of 489

E-2

(whether as debtor in possession or otherwise) or by any trustee of the Lessor, and any such election made without such consent shall be void at inception and of no force or effect. At the request of Buyer, Seller will join in any election made by Buyer under the Bankruptcy Code and will take no action in contravention of the rights granted to Buyer pursuant to this Appendix E, Section (c).
(d) In the event there is a termination, rejection, or disaffirmance by the Lessor (whether as debtor in possession or otherwise) or by any trustee of the Lessor pursuant to the Bankruptcy Code and Buyer elects to have Seller remain in possession under any legal right Seller may have to occupy the property pursuant to the Lease, then Seller shall remain in such possession and shall perform all acts necessary for Seller to retain its right to remain in such possession, whether such acts are required under the then existing terms and provisions of the Lease or otherwise. (e) In the event that a petition under the Bankruptcy Code shall be filed by or against Seller and Seller or any trustee of Seller shall decide to reject or disaffirm the Lease pursuant to the Bankruptcy Code (or allow the same), Seller shall give Buyer at least ten (10) days prior notice of the date on which application shall be made to the court for authority to reject or disaffirm the Lease or the Lease will be otherwise rejected. Buyer shall have the right, but not the obligation, to serve upon Seller or such trustee within such ten (10) day period a notice stating that (i) Buyer demands that Seller (whether as debtor in possession or otherwise) or such trustee assume and assign the Lease to Buyer pursuant to the Bankruptcy Code, and (ii) Buyer covenants to cure, or to provide adequate assurance of prompt cure of, all defaults (except defaults of the type specified in Section 365(b)(2) of the Bankruptcy Code) and to provide adequate assurance of future performance under the Lease. In the event that Buyer serves any such notice as provided above, neither Seller (whether as debtor in possession or otherwise) nor such trustee shall seek to reject or disaffirm the Lease and Seller (whether as debtor in possession or otherwise) and such trustee shall comply with such demand within thirty (30) days after such notice shall have been given, subject to Buyer’s performance of such covenant. (f) Upon any payment by Buyer to cure any default of Seller, as lessee thereunder, and thereby to prevent termination of the Lease or the exercise of any other remedy of the Lessor thereunder arising out of such default, Seller, within ten (10) days following receipt of notice from Buyer that it made such payment, shall pay the amount of such payment to Buyer plus interest accruing thereon at the Interest Rate, from and including the date of the payment by Buyer to cure such default to but excluding the date of such payment by the Seller. (g) A memorandum of the Lease shall be recorded in the applicable county.

198 of 489

F-1

APPENDIX F
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

INSURANCE
I. GENERAL REQUIREMENTS1
As specified in the Agreement, Seller shall furnish Buyer evidence of coverage from insurers acceptable to Buyer and in a form reasonably acceptable to Buyer’s Risk Management. Such insurance shall be maintained by Seller at Seller’s sole cost and expense. Such insurance shall not limit or qualify the liabilities and obligations of Seller assumed under this Agreement. Buyer shall not, by reason of its inclusion under these policies, incur liability to the insurance carrier for payment of premium for these policies.

With the exception of Workers’ Compensation/Employers Liability Insurance, any insurance carried by Buyer which may be applicable shall be deemed to be excess insurance and Seller’s insurance is primary for purposes under this Agreement despite any conflicting provision in Seller’s policies to the contrary.

Said evidence of insurance shall contain a provision that the policy cannot be canceled or nonrenewed without first giving thirty (30) days’ prior notice thereof (ten (10) days for non- payment of premium) by registered mail to Buyer, addressed as follows: Department of Water and Power of the City of Los Angeles, Attention: Risk Management, Room 465, Post Office Box 5111, 111 North Hope Street, Los Angeles, CA 90012.

Should any portion of the required insurance be on a “Claims Made” policy, Seller shall, at the policy expiration date following completion of work, provide evidence that the “Claims Made” policy has been renewed or replaced with a retroactive date back to the policy in effect as of the Effective Date with the same limits, terms and conditions of the expiring policy.

Buyer reserves the right to request at any time during the term or during any extension of this Agreement, applying generally accepted risk management principles, to adjust the amounts and types of insurance required hereunder to ensure such coverage remains adequate and relevant throughout the term and any extension of this Agreement, which Seller shall take commercially reasonable efforts to obtain. Failure to maintain and provide acceptable evidence of the required insurance for the required period of coverage shall constitute a breach of contract, upon which Buyer may immediately terminate or suspend the Agreement.

Seller shall take commercially reasonable efforts to require, and shall be responsible for, all Major Subcontractors’ compliance with the insurance requirements set forth herein. Seller shall also take commercially reasonable efforts to require its other Subcontractors to obtain and

1 NTD: Subject to further review by both parties.
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F-2

maintain, throughout the performance of any work, types of insurance with limits and terms that are normal and customary for the industry and type of services being performed by such subcontractor; provided that Seller shall obtain and maintain the insurance coverages listed in Section II of this Appendix F.

In the event that any insurance (including the limits or deductibles thereof) described in Section II, other than insurance required by law to be maintained, is not available on commercially reasonable terms in the global commercial insurance market, Buyer shall not unreasonably withhold its agreement to modify Seller’s obligation to obtain such insurance to the extent of such unavailability; provided, however, that as a condition of agreeing to such modification, (i) Seller shall first request any such modification in writing, which request shall be accompanied by written reports prepared by Seller and its insurance broker, in a form reasonably acceptable to Buyer, certifying that such insurance is not available on commercially reasonable terms in the global commercial insurance market for similar facilities (and, in any case where the required amount is not so available, certifying as to the maximum amount which is available), and explaining in detail the basis for such conclusions; (ii) at any time after the granting of such modification (but no more frequently than once per year unless Buyer has reason to believe, in good faith, that the applicable insurance has become available on commercially reasonable terms), Buyer may reasonably request supplemental reports updating the reports and reaffirming the certifications described in (i), and Seller shall, within sixty (60) days after such reasonable request, provide to Buyer such supplemental reports in a form reasonably acceptable to Buyer; and (iii) any such modification shall be effective only so long as such insurance shall not be available on commercially reasonable terms in the global commercial insurance market (including re-insurers) and Seller shall promptly notify Buyer if such insurance becomes available, it being understood that the failure of Seller to timely furnish any supplemental report described in (ii) shall be considered conclusive evidence that such modification is no longer effective because such condition no longer exists.

II. SPECIFIC COVERAGES REQUIRED
A. Commercial Automobile Liability
Seller shall provide Commercial Automobile Liability insurance, which shall include coverages for liability arising out of the use of owned, non-owned and hired vehicles for performance of the work as required to be licensed under the California, or any other applicable state, vehicle code. The Commercial Automobile Liability insurance shall have not less than two million dollars ($2,000,000.00) combined single limit per occurrence and shall apply to all operations of Seller. Limits may be satisfied through a combination of primary and excess policies.

The Commercial Automobile Liability policy shall include Buyer, Buyer’s Board of Commissioners, its members, and their officers, agents, and employees as additional insureds with Seller and shall insure against liability for death, bodily injury or property damage resulting from the performance of this Agreement. The form of evidence of insurance shall be a Buyer Additional Insured Endorsement or equivalent or an endorsement to the policy acceptable to Buyer’s Risk Management Section. Blanket additional insured endorsement shall be deemed acceptable to Buyer’s Risk Management for auto liability coverage.
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F-3

B. Commercial General Liability
Seller shall provide Commercial General Liability insurance with Blanket Contractual Liability, Independent Contractors, Broad Form Property Damage, Premises and Operations, Products and Completed Operations, fire Legal Liability and Personal Injury coverages included. Such insurance shall provide coverage for not less than twenty-five million dollars ($25,000,000.00) combined single limit per occurrence. Umbrella or Excess Liability coverages may be used to supplement primary coverages to meet the required limits. Evidence of such coverage shall be on Buyer’s Additional Insured Endorsement form or equivalent or on an endorsement to the policy acceptable to Buyer’s Risk Management Section and shall provide for the following:

1. Include Buyer and its officers, agents, and employees as additional insureds for the activities and operations under this Agreement.

2. Include Severability-of-Interest or Cross-Liability Clause such as:
“The policy to which this endorsement is attached shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the company’s liability.”

3. Include a description of the coverages included under the policy.

For general liability coverage, a blanket additional insured endorsement shall be deemed acceptable to Buyer’s Risk Management.

C. Excess Liability
Seller may use an Umbrella or Excess Liability Coverage with “follow form” to meet coverage limits specified in this Agreement. Seller shall require the carrier for Excess Liability to properly schedule and to identify the underlying policies as provided for Buyer on the Buyer Additional Insured Endorsement Form, or equivalent, or on an endorsement to the policy acceptable to Buyer’s Risk Management Section. A blanket additional insured endorsement shall be deemed acceptable to Buyer’s Risk Management Section. Such policy shall include, as appropriate, coverage for Commercial General Liability, Hired & Non-Owned Commercial Automobile Liability or other applicable insurance coverages.

D. Workers’ Compensation/Employer’s Liability Insurance Seller shall provide Workers’ Compensation insurance covering all of Seller’s employees in accordance with the laws of any state in which the work of the Agreement is to be performed and including Employer’s Liability insurance, where possible, and a Waiver of Subrogation in favor of Buyer. The limit for Employer’s Liability coverage shall be not less than one million dollars ($1,000,000.00) for each accident or illness and shall be a separate policy if not included with Workers’ Compensation coverage. Umbrella or Excess Liability coverages may be used to supplement primary coverages to meet the required limits. Workers’ Compensation/Employer’s Liability exposure may be self- insured, provided that Buyer is furnished with a copy of the certificate issued by the state 201 of 489

F-4

authorizing Seller to self-insure. Seller shall notify Buyer’s Risk Management Section by receipted delivery as soon as possible of the state withdrawing authority to self-insure.

E. Builders’ Risk
Builder’s Risk insurance shall be of the “all risk” type, shall be written in full replacement value and shall protect the Seller and Buyer against risks of damage to buildings, structures and materials and equipment whether on site or in transit from any location worldwide. The amount of such insurance shall be not less than the insurable value of the work at completion, subject to standard and commercially available sublimits and deductibles. Buyer shall be an additional insured on the policy. The Builder’s Risk insurance shall provide for losses to be payable to the Seller and the aforementioned additional insured, as their interests may appear, unless required otherwise by a Facility Lender. The policy shall contain a provision that in the event of payment for any loss under the coverage provided, the insurance company shall have no rights of recovery against the Buyer. The Builder’s Risk policy shall insure against all risks of direct physical loss or damage to property from any cause, including testing, ensuing loss, commissioning, earthquake and flood, subject to standard and commercially available sublimits. Seller shall maintain such Builder’s Risk insurance policy in full force and effect from the later of the Effective Date or the date of commencement of construction of the Facility through the Commercial Operation Date. Evidence of this coverage shall be provided by Seller to Buyer by the later of the Effective Date or commencement of construction of the Facility.

F. Property All Risk Insurance
Seller shall procure and maintain or cause to be procured and maintained an All Risk Physical Damage policy to insure the full replacement value of the property located at the Facility as described in this Agreement, subject to standard and commercially available sublimits and deductibles. The policy shall include coverage for expediting expense, extra expense, Business Interruption, ensuing loss from faulty workmanship, faulty materials or faulty design. This policy need not be in full force and effect until the date of expiration of the Builder’s Risk policy described in Paragraph II.E. This policy shall have the same insureds, and all losses shall be payable in the same manner, as provided for the Builders’ Risk policy in Paragraph II.E.

G. Cyber Security Insurance
Seller shall procure and maintain a cyber liability and financial loss, intellectual property infringement, and data protection liability insurance. Seller shall procure and maintain coverage for cyber liabilities and financial loss resulting or arising from acts, errors, or omissions, in connection with data maintenance, hosting, software development and other information technology services provided under this Agreement. Coverage shall include protection for liability arising from:

1. intellectual property infringement arising out of software and/or content (excluding patent infringement and misappropriation of trade secrets);

2. breaches of security;
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F-5

3. violation or infringement of any right, privacy, breach of federal, state, or foreign security and/or privacy laws or regulations; and,

4. data theft, damage, destruction, or corruption, including without limitation, unauthorized access, unauthorized use, identity theft, theft of personally identifiable information or confidential corporate information, transmission of a computer virus or other type of malicious code; and participation in a denial of service attack on a third party.

The minimum limits shall be three million dollars ($3,000,000) for each claim and in the aggregate.

H. Pollution Liability Insurance

Seller shall procure and maintain, or cause to be procured and maintained, for the duration of the Agreement Term Third Party Pollution Liability insurance that provides coverage for liability caused by pollution conditions arising out of the operations of the Facility. Coverage must be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using Subcontractors, the policy must include work performed “by or on behalf” of the insured. Coverage may be satisfied through a standalone third party pollution liability policy or via endorsement under the General Liability policy.

The policy limit must provide coverage of no less than five million dollars ($5,000,000) per occurrence and in the aggregate. Coverage must apply to bodily injury; property damage, including loss of use of damaged property or of property that has not been physically inured; cleanup costs; and costs of defense, including costs and expenses incurred in the investigation, defense, or settlement of claims.

Buyer, its officers, agents, employees, and representatives must be added to the policy as additional insureds by endorsement.

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G-1

APPENDIX G
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

METEOROLOGICAL AND PYRANOMETER MEASUREMENTS

Monitored Meteorological Data Points:

1. Irradiance (horizontal and plane of array)

2. Ambient air temperature

3. Back of module temperature

4. Rainfall quantity

5. Wind speed

6. Wind direction

7. Relative humidity

204 of 489

H-1

APPENDIX H
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

REAL PROPERTY AGREEMENTS
Leases

1. Solar Facilities Ground Lease dated September 1, 2013, by and between Granger Peck, trustee of the Granger Peck and Suying Dai Peck Family Trust U/A DTD 12/08/2020 (formerly Granger Peck, individually), as lessor, and Notch Peak Project, LLC, a Delaware limited liability company formerly known as Notch Peak Solar, LLC (“ Notch Peak”), as lessee, as evidenced by that certain Memorandum of Lease recorded in the official records of the Millard County Recorder’s Office (the “ Official Records”) on August 18, 2015, as Entry No. 00193089, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Lease dated February 14, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 9, 2020, as Entry No.

Entry No. 00209190.

2. Solar Facilities Ground Lease dated August 2013, by and between Barbara Anne Pine, not individually but solely as sale Trustee of her Child’s Trust created by Alice Roberts’ Will and governed by certain provision of the Charles Roberts Family Trust under Trust Agreement dated October 10, 1972 as amended (formerly The Child’s Trust for the Benefit of Barbara Pine), as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on September 3, 2015, as Entry No. 00193263, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Lease dated February 27, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 12, 2020, as Entry No. 00209225.

3. Solar Facilities Ground Lease dated September 10, 2013, by and between Maurice O.

Ellsworth, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193095, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Lease dated February 19, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 9, 2020, as Entry No. 00209189. 205 of 489

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4. Solar Facilities Ground Lease dated August 15, 2013, by and between Homer K. Cutrubus, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193090, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Lease dated February 27, 2020, as evidenced by that certain Amended Memorandum of Lease recorded i n the Official Records on March 9, 2020, as Entry No. 00209188.

5. Solar Facilities Ground Lease dated July 25, 2013, by and between Melissa Ann Wiley, as Successor Trustee of the Family Trust created under Michael and Mary Ann Hiskey Revocable Trust, dated June 20, 2017, as amended (formerly Michael K. Hiskey and Mary Ann Hiskey), as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193091, as amended by that certain First Amendment to Solar Facilities Ground Lease dated November 12, 2015, as evidenced by that certain First Amendment to Memorandum of Lease recorded in the Official Records on January 12, 2016, as Entry No. 00194322, as amended by that certain Second Amendment to Solar Facilities Ground Lease dated January 15, 2016, as evidenced by that certain Second Amendment to Memorandum of Lease recorded in the Official Records on February 18, 2016, as Entry No. 00194702, as amended by that certain Third Amendment to Solar Facilities Ground Lease dated February 15, 2020, as evidenced by that certain Third Amended Memorandum of Lease recorded in the Official Records on March 9, 2020, as Entry No. 00209191, and as amended by that certain Fourth Amendment to Solar Facilities Ground Lease dated February 9, 2026, as evidenced by that certain Fourth Amended Memorandum of Lease recorded in the Official Records on February 17, 2026, as Entry No. 00235638.

6. Solar Facilities Ground Lease dated July 8, 2013, by and between Darrell A. Checketts and Nancy S. Checketts, as Trustee of The Checketts Family Revocable Trust dated March 29, 2016, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memora ndum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193093, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Le ase dated February 29, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 12, 2020, as Entry No. 00209226.

7. Solar Facilities Ground Lease dated July 3, 2013, by and between Edward G. Blankstein, Ingrid C. Blankstein, Ari P. Blankstein and Andrea Blankstein-Otloski, Co-Trustees of the Blankstein Family Trust U/T/A dated April 28, 2006, as amended, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193092, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by t hat certain Second Amendment to Solar Facilities Ground Lease dated March 9, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 26, 2020, as Entry No. 00209359.
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8. Solar Facilities Ground Lease dated October 31, 2013, by and between Paul J. West Company, a co- partnership, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on August 18, 2015, as Entry No. 00193094, as amended by that certain First Amendment to Solar Facilities Ground Lease dated January 12, 2016, and by that certain Second Amendment to Solar Facilities Ground Lease dated February 29, 2020, as evidenced by that certain Amended Memorandum of Lease recorded in the Official Records on March 12, 2020, as Entry No. 00209227.

9. Solar Facilities Ground Lease dated May 25, 2016, by and between KMJA, LLC, a Utah limited liability company, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on June 16, 2016, as Entry No.

Entry No. 00195817.

10. Solar Facilities Ground Lease dated December 14, 2016, by and between E -6 Resources, LLC, a Utah limited liability company, and Elb2 Consuelo, LLC, an Arizona limited liability company, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Lease recorded in the Official Records on February 9, 2017, as Entry No. 00198246, as amended by that certain First Amendment to Solar Facilities Ground Lease dated February 24, 2020, and by that certain First Amendment to Solar Facilities Ground Lease dated December 20, 2021.

11. Renewable Energy Use Lease Agreement No. 50 dated October 1, 2025, by and between the State of Utah, School and Institutional Trust Lands Administration, as lessor, and Notch Peak, as lessee, as evidenced by that certain Memorandum of Agreement recorded in the Official Records on January 21, 2026, as Entry No. 00235420.

Easement

12. Easement Agreement No. 2787 dated [ ], by and between the State of Utah, School and Institutional Trust Lands Administration, as grantor, and Notch Peak, as grantee, recorded in the Official Records on [ ], as Entry No. [ ].

Surface Waivers

13. Surface Occupancy Waiver Agreement dated April 26, 2023, by and between Katherine Hulse, a married woman, as mineral owner, and Notch Peak, as surface lessee.

14. Surface Occupancy Waiver Agreement dated April 26, 2023, by and between Kimball Young, a married man, as mineral owner, and Notch Peak, as surface lessee.

15. Mineral and Solar Set-Aside and Joint Use Agreement dated December 16, 2025, by and between KMJA, LLC, a Utah limited liability company, as mineral owner, and Notch Peak, as surface lessee, recorded in the Official Records on January 21, 2026, as Entry No. 00235413.

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APPENDIX I
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC
TABLE 1
EXPECTED ANNUAL GENERATION; GUARANTEED DELIVERED ENERGY Facility Contract Capacity: 324 MW
Contract Year Expected Annual Generation, MWh Guaranteed Delivered Energy, MWh Initial Stub Year See note (1) 80% of Expected Annual Generation 1 860,491 688,393
2 856,189 684,951
3 851,908 681,526
4 847,648 678,119
5 843,410 674,728
6 839,193 671,354
7 834,997 667,998
8 830,822 664,658
9 826,668 661,334
10 822,534 658,028
11 818,422 654,737
12 814,330 651,464
13 810,258 648,206
14 806,207 644,965
15 802,176 641,741
16 798,165 638,532
17 794,174 635,339
18 790,203 632,163
19 786,252 629,002
20 782,321 625,857
21 778,409 622,727
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22 774,517 619,614
23 770,645 616,516
24 766,791 613,433
25 762,957 610,366
26 759,143 607,314
27 755,347 604,278
28 751,570 601,256
29 747,812 598,250
30 744,073 595,259
Final Stub Year See note (2) 80% of Expected Annual Generation

(1) The “Expected Annual Generation ” for the Initial Stub Year equals 860,491 MWh, multiplied by the sum of the percentages (from the Expected Monthly Production Table below) of Energy generated by the Facility during the months between the Commercial Operation Date (prorated for the month in which the Commercial Operation Date occurs if the same does not occur on the first day of such month) and the end of the Initial Stub Year. For example, if the Commercial Operation Date is achieved on June 1, 2026, the Expected Annual Generation in the Initial Stub Year would be 860,491 MWh x 60.16% (June through December) (which is 517,671 MWh), and the Guaranteed Delivered Energy would be 80% of this number (which is 414,137 MWh).

(2) The Expected Annual Generation for the Final Stub Year equals 744,073 MWh multiplied by the sum of the percentages (from the Expected Monthly Production Table below) of Energy generated by the Facility during the months from January 1 of the Final Stub Year to the end of the Final Stub Year (prorated for final month in the Final Stub Year if not a full month). For example, if the Commercial Operation Date is achieved on June 1, 2026, the Expected Annual Generation in the Final Stub Year would be 744,073 MWh x 39.84% (January through May) (which is 296,439 MWh), and the Guaranteed Delivered Energy would be 80% of this number (which is 237,151 MWh).

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TABLE 2

EXPECTED ENERGY MONTHLY PRODUCTION TABLE
The following table shows the percentage of generation by the Facility per calendar month for purposes of calculating the Guaranteed Delivered Energy for the Initial Stub Year and the Final Stub Year.

Month Percent Month Percent
Jan 4.33% Jul 11.96%
Feb 5.37% Aug 11.39%
Mar 8.01% Sep 9.72%
Apr 9.66% Oct 7.87%
May 11.17% Nov 4.82%
Jun 11.86% Dec 3.85%
Total 100.0%

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APPENDIX J
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

QUALITY ASSURANCE PROGRAM
Seller shall implement a Quality Assurance (“Q/A”) Program to ensure that the performance of the development, design and construction of the Facility fulfills the Requirements. The Q/A Program shall provide assurance that design, purchasing, manufacturing, shipping, storage, construction, testing and examination of all equipment, materials, services and maintenance of the Facility will comply with the Requirements and the manufacturers’ and/or suppliers’ requirements for successful operation of the Facility.

Quality at Seller
What is quality? Seller believes that quality is the unit of measure for assessing fulfillment of project goals. A quality project meets or exceeds the contract requirements and accepted standards of professional and industry practice. Furthermore, high quality projects are those that address client and societal needs more successfully than “low” quality projects. While this may seem like a straightforward definition, the process to ensure quality is much more involved and includes quality management, quality planning, quality control, quality assurance, a quality system, and total quality management.
“Quality assurance” refers to a process that reduces the potential for error throughout the phases of a project. On projects with a Q/A Program, the chances of producing a poor quality deliverable are substantially reduced. Quality control procedures are an integral part of quality assurance. Historically, industry has used the term “quality control” to indicate a checking procedure for verifying the quality of deliverables. This checking commonly occurs at the end of the process, long after an error may have been made and compounded by subsequent work.

While quality control checks at the end of a project are an essential exercise, scheduled periodic reviews at each phase of project conceptual and final design are integral to Seller’s Q/A Program.

In addition, quality maintenance which meet or exceed manufacturers’ and/or suppliers’ requirements and best industry practices must be an integral part of Seller’s Q/A Program.

The Quality Management Process
The surest way to achieve satisfactory quality is to adhere to a proven quality process. The term “quality” most accurately refers to a project’s ability to satisfy needs when considered as a whole and each part of the process meets or exceeds the standards of Prudent Utility Practices.

Seller’s project management team is responsible for proactively planning and directing the quality of the work process, services, and deliverables. Seller’s project management team will target six (6) areas to monitor quality:
1) A written work plan with accompanying Q/A Manual (as defined below). 211 of 489

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2) Detailed review of the Facility design at the planning and conceptual design phase.
3) Detailed review of Facility final design prior to construction. 4) A quality control program during construction to verify implementation is in compliance with design documents and document any changes. 5) Independent engineering review of the entire process, from design review through Commercial Operation.
6) A written maintenance manual for the Facility for the duration of the Commercial Operation that complies with the maintenance manuals of the manufacturers and suppliers from whom Seller has purchased equipment and/or material and best industry practices.

Written Work Plan and Q/A Manual
The idea of a written work plan and Q/A Manual is to incorporate quality assurance in all areas of project execution. Seller has found that quality needs to be institutionalized into the project process, not only in the budgeting process, but everywhere. For example, specific tasks and duties need to be allocated to specific individuals; roles and interface points need to be clearly defined; individual assignments need to be realistic; special attention needs to be paid to complex areas within projects; schedules need to be realistic and achievable; and, lastly, the work culture needs to be enjoyable and open so that employees are empowered to react quickly to symptoms of quality problems before they actually manifest.

Seller’s quality program shall be documented in a written work plan and Quality Assurance manual (the “Q/A Manual”). The form and the format of the Q/A Manual shall be developed by Seller, but must comply with Prudent Utility Practices and follow manufacturers’ and suppliers’ recommendations without deviation. The content of the Q/A Manual shall provide written descriptions of policies, procedures and methodology to accomplish a quality project. Seller shall submit one (1) electronic copy of the Q/A Manual at least sixty (60) days prior to the Facility construction commencement milestone to Buyer or Buyer’s Representative. The Q/A Manual shall be kept current by Seller throughout the Agreement Term through the submittal of revisions, as appropriate, by Seller to Buyer or Buyer’s Authorized Representative.

The Q/A Manual shall describe the authority and the responsibility of the Persons in charge of the Q/A Program and inspection activities. It shall also provide the plan for detailed review of Facility conceptual design and final design, hold points, and methodology for document control and comment. Furthermore, it shall provide the plan and strategy for quality control and review during the construction of the Facility and for maintenance and operations during Commercial Operation. The Q/A Manual shall strive; at a minimum, to define control procedures or methods to assure the following:
(a) The design documents, drawings, specifications, Q/A procedures, records, inspection procedures and purchase documents are maintained to be current, accurate and in compliance with all applicable law.
(b) The purchased materials, equipment and services comply with the Requirements. 212 of 489

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(c) The materials received at the site are inspected for compliance with specifications. (d) The subcontracted work is adequately inspected by third parties or qualified internal personnel.
(e) Proper methods are employed for the qualification of personnel who are performing work for the development, design and construction of the Facility. (f) Proper documentation, control and disposition of nonconforming equipment and materials is maintained.
(g) Proper records are kept and available following project completion to ensure accurate documentation of as-built conditions.
(h) Detailed and complete plan for maintenance and operation during Commercial Operation consistent with manufacturers’ and suppliers’ recommendations and best industry practices.

Conceptual Design Review
Seller shall have a team of professionals who develop and review the Facility layout and Facility conceptual design. The team shall consist of specialists in land-use and planning, permitting, meteorology, engineering, construction, project management, and finance. A preliminary site plan is developed and meetings are held to assess optimization of the resource, constructability, minimization of cultural and biological impacts, land use restrictions, and landowner requirements. Preliminary road design will also be started and access to the Facility Site will be reviewed in detail. When this plan is ready for review, a formal plan and map shall be created and a final internal review is conducted. Following that shall be detailed studies for biological, cultural and other types of impacts completed by various third parties. The site plan will be reviewed, modified as necessary, and then used to begin the permitting and public review process. The site plan shall be further modified based on comments in that process. At that point, the site plan can be issued for construction, and final engineering can commence.

In parallel with this process, preliminary conceptual design will start for the major areas of the Facility, including the substation, transmission line, racking systems, and communications system; and road and grading done to develop construction estimates as well as materials specifications. All of these areas of conceptual designs shall be used to check and verify the assumptions used for development of the site plan.

Seller shall provide Buyer the foregoing designs and any related documents at (i) 60% through the Conceptual Design Review Process (as measured in Seller’s sole discretion) and (ii) final completion of the Conceptual Design Review Process. Buyer may request interim designs throughout the Conceptual Design Review Process.

Final Engineering Design
Following finalization of the site plan, the detailed design will be done for the roads and grading, transmission line, and substation by third party engineering firms licensed to practice in the State of Utah. Each firm shall have its own quality assurance and checking procedures, however, Seller shall review the final work products in detail to check with conformance with this Agreement and provide comments as a second round of quality assurance. When Seller’s 213 of 489

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comments have been incorporated, the design of each area will be considered final, and that design will then be submitted to an independent engineer for review and comment. This ensures that another entity, in addition to Seller, has done a comprehensive review of all areas of the Facility and details to ensure conformance with this Agreement.

In parallel with final design and checking activities, final geotechnical studies will be conducted at the Facility Site, and a final resource assessment will be performed with the issued-for-construction Facility layout. If existing subsurface conditions are different from what is expected, the racking locations could be slightly modified. Any changes of this nature would be documented in as-built design drawings and approved of in advance by Seller.

Seller shall provide Buyer the foregoing designs and any related documents at (a) 60% through the Final Engineering Design Process (as measured in Seller’s sole discretion) and (b) final completion of the Final Engineering Design Process. Buyer may request interim designs throughout the Final Engineering Design Process.

Quality Assurance at the Construction Site
Seller will engage a proven construction contractor to perform the construction activities. A Construction Quality Assurance Plan will be agreed upon between Seller and such contractor for all construction activity at the construction site. This Construction Quality Assurance Plan will be consistent with industry standards and norms and will assure all activities receive appropriate attention. Seller will perform active construction management oversight of the contractor during the construction of the Facility to further assure quality performance.

Quality Assurance and Quality Control (“Q/C”) Activities After Commercial Operation Throughout the Agreement Term, Seller shall perform Q/A and Q/C activities on all materials and equipment associated with the Facility, including all photovoltaic solar power generation equipment, on a periodic basic. Seller shall provide Buyer a detailed report identifying all areas of inspections performed, O&M contractor provided reports, results found, remedial actions taken, if any, and follow up for any corrective actions.

Seller shall provide Buyer with a schedule for performance actions needed as result of Q/A and Q/C activities. Buyer shall review the schedule, and provide comments to Seller.

QUALITY ASSURANCE (Q/A) AND QUALITY CONTROL (Q/C) CHECKLIST

[To be provided by Seller prior to Construction Commencement Milestone]

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K-1
AP

PENDIX K
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

PERMITS
*Shaded items have been obtained as of the Effective Date Agency/Office
Permit, Clearance,
Approval, or
Authorization
Permit Trigger
Millard
County
Conditional Use
Permit
Project requires a Conditional C-2 Use Permit in
compliance with procedures set forth I Title 10,
Chapter 8 of the Millard County Zoning
Ordinance.

Millard
County
Environmental
Assessment Report
County Land Use, Development and
Management Act, UCA Title 17, Ch.79, Secs.
401-403 & 506
Utah Division
of Water
Quality
Utah Pollutant
Discharge Elimination
System General
Construction
Stormwater Permit
Construction activities that will disturb 1 acre or
more of land.
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L-1

APPENDIX L
TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
AND

NOTCH PEAK PROJECT, LLC

OPTION AGREEMENT

[See attached.]

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DB2/ 651489871.7

OPTION AGREEMENT
by and between

NOTCH PEAK PROJECT, LLC
as “Seller”
and

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
as “Buyer”
Dated as of April 16, 2026
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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS ........................................................................................................... 1

1.1 Definitions............................................................................................................... 1

1.2 Rules of Interpretation ............................................................................................ 1 ARTICLE II OPTION TO PURCHASE; CLOSING ................................................................ 1

2.1 Option to Purchase .................................................................................................. 1

2.2 Exercise of Project Purchase Option....................................................................... 2

2.3 Tentative Exercise Notice ....................................................................................... 2

2.4 Fair Market Value; Exercise Notice ....................................................................... 2

2.5 Memorandum of Option ......................................................................................... 4

2.6 Closing .................................................................................................................... 4

2.7 No Additional Warranties ....................................................................................... 4

2.8 Assumed Liabilities ................................................................................................ 4

2.9 Excluded Liabilities ................................................................................................ 5

2.10 Schedule Updating: Final Purchase Price ............................................................... 7

2.11 Proration .................................................................................................................. 8

2.12 Closing Costs; Transfer Taxes and Fees ................................................................. 9

2.13 Decommissioning and Other Costs ......................................................................... 9

2.14 Closing Obligations ................................................................................................ 9

2.15 Bulk Sales Law ....................................................................................................... 9 ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLER ........................... 9

3.1 Organization and Good Standing ............................................................................ 9

3.2 Authority; Absence of Conflict or Breach .............................................................. 9

3.3 Real Property Matters ........................................................................................... 10

3.4 Consents ................................................................................................................ 11

3.5 Assets of the Business ........................................................................................... 12

3.6 Title to Facility Assets .......................................................................................... 12

3.7 Environmental ....................................................................................................... 12

3.8 No Undisclosed Liabilities .................................................................................... 14

3.9 Taxes ..................................................................................................................... 14

3.10 Compliance With Laws......................................................................................... 15

3.11 Litigation ............................................................................................................... 15

3.12 Assumed Contracts ............................................................................................... 15

3.13 Intellectual Property .............................................................................................. 15

3.14 Brokers or Finders................................................................................................. 16

3.15 Permits .................................................................................................................. 16

3.16 Investment Company Act ..................................................................................... 17

3.17 Employees and Employee Benefit Plans .............................................................. 17

3.18 General Representation ......................................................................................... 17

3.19 Regulatory Status .................................................................................................. 17 218 of 489

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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER ................................. 17

4.1 Organization .......................................................................................................... 17

4.2 Authority; Absence of Conflict or Breach ............................................................ 18

4.3 Consents ................................................................................................................ 18

4.4 Brokers or Finders................................................................................................. 18

4.5 Litigation ............................................................................................................... 18 ARTICLE V COVENANTS OF SELLER PRIOR TO CLOSING DATE .......................... 18

5.1 Access to Materials ............................................................................................... 18

5.2 Investigations ........................................................................................................ 19

5.3 Financial Statements ............................................................................................. 19

5.4 Operation of the Business ..................................................................................... 20

5.5 Disposition of Assets ............................................................................................ 20

5.6 Required Approvals .............................................................................................. 20

5.7 Notification ........................................................................................................... 20

5.8 Reasonable Efforts ................................................................................................ 20

5.9 Waivers of Claims................................................................................................. 20

5.10 Additional Contracts ............................................................................................. 21

5.11 Transitional Services ............................................................................................. 21 ARTICLE VI COVENANTS OF BUYER PRIOR TO CLOSING DATE ................................... 22

6.1 Notification ........................................................................................................... 22

6.2 Required Approvals .............................................................................................. 22

6.3 Reasonable Efforts ................................................................................................ 22 ARTICLE VII CONDITIONS PRECEDENT TO BUYER’S OBLIGATION TO CLOSE ....... 22

7.1 Accuracy of Representations ................................................................................ 22

7.2 Seller’s Performance ............................................................................................. 22

7.3 Consents ................................................................................................................ 22

7.4 Additional Seller Documents ................................................................................ 23

7.5 Litigation ............................................................................................................... 24

7.6 Liens ...................................................................................................................... 24

7.7 No Material Adverse Effect .................................................................................. 24 ARTICLE VIII CONDITIONS PRECEDENT TO SELLER’S OBLIGATION TO CLOSE ..... 24

8.1 Accuracy of Representations ................................................................................ 24

8.2 Buyer’s Performance ............................................................................................ 25

8.3 Consents ................................................................................................................ 25

8.4 Additional Buyer Documents ............................................................................... 25

8.5 Litigation ............................................................................................................... 25 ARTICLE IX MUTUAL COVENANTS, TAXES AND OTHER MATTERS ........................... 25

9.1 Tax Matters ........................................................................................................... 25

9.2 Seller Cooperation Post-Closing ........................................................................... 27

9.3 Risk of Loss .......................................................................................................... 27

9.4 Liabilities .............................................................................................................. 28 219 of 489

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9.5 Insurance ............................................................................................................... 28

9.7 RWI Insurance Proposal ........................................................................................ 29 ARTICLE X TERM AND TERMINATION ............................................................................... 29

10.1 Term ...................................................................................................................... 29

10.2 Termination Events ............................................................................................... 29

10.3 Effect of Termination ............................................................................................ 30 ARTICLE XI LIMITATION OF LIABILITY ........................................................................ 30

11.1 Survival of Representations, Etc. .......................................................................... 30

11.2 Limitation of Liability........................................................................................... 31 ARTICLE XII GENERAL PROVISIONS ................................................................................ 32

12.1 Indemnification ..................................................................................................... 32

12.2 Expenses ............................................................................................................... 34

12.3 Ambiguity ............................................................................................................. 34

12.4 Voluntary Execution ............................................................................................. 34

12.5 Notices .................................................................................................................. 34

12.6 Entire Agreement; Amendments........................................................................... 34

12.7 Further Assurances................................................................................................ 34

12.8 Waiver ................................................................................................................... 35

12.9 Severability ........................................................................................................... 35

12.10 Consequential or Punitive Damages ..................................................................... 35

12.11 Equitable Remedies .............................................................................................. 35

12.12 Time of Essence .................................................................................................... 35

12.13 Governing Law ..................................................................................................... 35

12.14 Execution in Counterparts..................................................................................... 35

12.15 Relationship of the Parties .................................................................................... 35

12.16 Third Party Beneficiaries ...................................................................................... 36

12.17 Provisions of PPA ................................................................................................. 36

12.19 Exhibits and Schedules ......................................................................................... 36

12.20 Relationship with PPA .......................................................................................... 36

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Exhibits
Exhibit 1.1 Definitions
Exhibit 2.4 Purchase Price
Exhibit 2.5 Form of Memorandum of Option
Exhibit 5.11 Form of Transition Services Agreement
Exhibit 7.4(i) Form of Seller Guaranty

Schedules
Schedule 3.3 Real Property Matters
Schedule 3.4 Seller’s Consents
Schedule 3.5 Certain Assets
Schedule 3.6 Title to Facility Assets
Schedule 3.7 Environmental Matters
Schedule 3.8 Liabilities
Schedule 3.9 Tax Matters
Schedule 3.10 Compliance with Laws
Schedule 3.11 Litigation
Schedule 3.12(a) Contracts
Schedule 3.12(b) Exceptions to Assumed Contracts
Schedule 3.13 Intellectual Property
Schedule 3.15 Permits
Schedule 3.17 Employee Matters
Schedule 3.18 General Matters
Schedule 3.20 Support Obligations
Schedule 4.3 Buyer’s Consents
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OPTION AGREEMENT
THIS OPTION AGREEMENT is entered into as of this 16th day of April, 2026, by and between Notch Peak Project, LLC , a limited liability company organized and existing under the laws of the State of Delaware ( “Seller”), and SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY (“Buyer”), a joint powers agency and a public entity organized under the laws of the State of California and created under the provisions of the California Joint Exercise of Powers Act (California Government Section 6500 et seq.). Each of Buyer and Seller is referred to individually in this Agreement as a “Party” and together they are referred to as the “Parties.”

RECITALS
WHEREAS, Seller and Buyer have entered into that certain Power Purchase Agreement of even date herewith (the “PPA”) relating to the purchase by Buyer of Delivered Energy, Capacity Rights and associated Environmental Attributes (each as defined in the PPA) generated by a photovoltaic solar facility to be developed, constructed, owned or leased (in accordance with the PPA) and operated by Seller in Millard County, Utah; and WHEREAS, Seller desires to grant to Buyer, and Buyer wishes to have, an option, exercisable at various times as set forth herein, to purchase the Facility Assets (as defined herein) on the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein, and Buyer entering into the PPA, and in consideration of the agreements herein and in the other Operative Documents (as defined herein) and in reliance upon the repr esentations and warranties therein and herein , Buyer
and Seller, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

1.1 Definitions . Except as otherwise expressly provided herein, capitalized terms used in this Agreement, including in its Recitals, Schedules and Exhibits, shall have the meanings given in Exhibit 1.1. Capitalized terms used herein but not defined in Exhibit 1.1 shall have the meanings ascribed thereto in the PPA.

1.2 Rules of Interpretation. Except as otherwise expressly provided herein, the rules of interpretation set forth in the PPA shall apply to this Agreement.

ARTICLE II
OPTION TO P URCHASE; CL OSING

2.1 Option to Purchase. Seller hereby grants Buyer an option, on the terms and conditions set forth in this Agreement, to purchase all of Seller’s right, title and interest in and to the Facility Assets, but not the Excluded Assets, and to assume the Assumed Liabilities, but not the Excluded Liabilities, on and subject to the terms and conditions set forth in this Agreement (the “Project Purchase Option ”). The Project Purchase Option may only be exercised with respect to all of Seller’s right, title and interest in and to the Facility Assets, and not with respect to only a portion thereof.
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2 2.2 Exercise of Project Purchase Option . Buyer may exercise the Project Purchase Option in accordance with the provisions of Section 2.3 and Section 2.4 at any time following the Approvals Date:
(a) one (1) year prior to the tenth (10th) anniversary of the Commercial Operation Date;
(b) one (1) year prior to the fifteenth (15th) anniversary of the Commercial Operation Date;
(c) one (1) year prior to every subsequent five (5) years after the fifteenth (15th) anniversary of the Commercial Operation Date until the end of the Agreement Term; (d) during the sixty (60) day period commencing on the date on which a Termination Notice is provided by Buyer to Seller pursuant to Section 13.4(a) of the PPA.

Each opportunity of Buyer to exercise the Project Purchase Option set forth in Sections 2.2(a),

2.2(b), 2.2(c) and 2.2(d) above shall be referred to herein as a “Purchase Option Opportunity.” Seller acknowledges that Buyer has no obligation to exercise the Project Purchase Option and that Buyer may decline to exercise the Project Purchase Option for any or no reason, as Buyer deems appropriate in its sole discretion.

2.3 Tentative Exercise Notice. Buyer shall exercise the Project Purchase Option (if at all) by delivering to Seller a written notice of exercise signed by Buyer (the “ Purchase Option Tentative Exercise Notice”) within the periods of time specified in Section 2.2. Within forty-five (45) days after it receives the Purchase Option Tentative Exercise Notice, Seller will deliver to Buyer (the date of such delivery being the “ Schedule Delivery Date”) the following, dated as of the Schedule Delivery Date: (a) Schedule 3.3 (Real Property Matters); (b) Schedule 3.4 (Seller’s Consents); (c) Schedule 3. 5 (Certain Assets); (d) Schedule 3.6 (Title to Facility Assets); (e) Schedule 3.7 (Environmental Matters); ( f) Schedule 3.8 (Liabilities); ( g) Schedule

3.9 (Tax Matters); ( h) Schedule 3.10 (Compliance with Laws); ( i) Schedule 3.11 (Litigation); (j) Schedule 3.12 (a) (Contracts); ( k) Schedule 3.12 (b) (Exceptions to Assumed Contracts ); (l) Schedule 3.13 (Intellectual Property); ( m) Schedule 3.15 (Permits); ( n) Schedule 3.17 (Employee Matters) ; (o) Schedule 3.18 (General Matters) ; and ( p) Schedule 3.20 (Support Obligations) ((a) through ( p) collectively, the “ Seller Disclosure Schedules ”), each of which shall be applicable to the Facility and be reasonably acceptable to Buyer, and which shall include , as required, any qualifications or exceptions required to make the representations in Article III true and correct in all material respects , and Seller , at its sole discretion, may elect, to submit a n RWI Proposal along with the submission of the Seller Disclosure Schedules .

Thereupon, Buyer will deliver to Seller Schedule 4.3 (Buyer’s Consents ) (together with the Seller Disclosure Schedules, the “Disclosure Schedules ”). Each Disclosure Schedule shall include and set forth the properties, materials, instruments, matters and all other specifications and information as indicated in the form of such Disclosure Schedule attached to this Agreement.

2.4 Fair Market Value; Exercise Notice.
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3 (a) The Fair Market Value shall be determined in accordance with Exhibit 2.4.

After the Disclosure Schedules have been delivered and the Fair Market Value has been determined pursuant to Section 2.4(a), Buyer may elect, in its sole discretion to (i) decline to exercise the Project Purchase Option with respect to the applicable Purchase Option Opportunity, or (ii) exercise the Project Purchase Option for the Final Purchase Price determined in accordance with Exhibit 2.4. If Buyer elects to exercise the Project Purchase Option, upon determination of the Final Purchase Price in accordance with Exhibit 2.4, Buyer shall give written notice (the “Purchase Option Exercise Notice”) to Seller no later than the Purchase Option Exercise Deadline, which notice shall state that Buyer is electing to exercise the Project Purchase Option under this Agreement and designating the applicable Closing Date. If Buyer elects not to exercise the Project Purchase Option, Buyer shall notify Seller of such election. The delivery of a Purchase Option Exercise Notice by Buyer shall constitute a binding and irrevocable commitment by Buyer to purchase, subject to the acceptance of such Purchase Option Exercise Notice by Seller in accordance with Section 2.4(c) and the satisfaction or waiver of each of the conditions to Closing set forth in Article VII and Article VIII by the applicable Closing Date. (b) If Buyer (i) declines to exercise the Project Purchase Option pursuant to Section 2.4(b)(i), or (ii) fails to timely deliver a Purchase Option Tentative Exercise Notice or Purchase Option Exercise Notice with respect to any Purchase Option Opportunity within the deadlines therefor under Sections 2.3 and 2.4(a) respectively, then Buyer’s right to exercise the Project Purchase Option with respect to such Purchase Option Opportunity shall expire and shall no longer be effective (but such expiration shall not a ffect Buyer’s right to exercise any Project Purchase Option with respect to any future Purchase Option Opportunity).
(c) If Buyer elects to exercise the Project Purchase Option, then Seller may elect, in its sole and absolute discretion, within thirty (30) days after Buyer delivers the Purchase Option Exercise Notice, to (i) decline to accept the Purchase Option Exercise Notice with respect to the applicable Purchase Option O pportunity, or (ii) accept Buyer’s exercise of the Project Purchase Option for the Final Purchase Price determined in accordance with Exhibit 2.4 by providing written notice of such acceptance to Buyer (t he “Acceptance Notice ”); provided, that if Seller submitted an RWI Proposal pursuant to Section 2.3, then such Acceptance Notice may be contingent upon Buyer’s agreement to accept such proposal . The delivery of the Acceptance Notice shall create a binding obligation of Seller to sell, the Facility Assets as specified herein, subject to the provisions set forth in Exhibit 2.4 and the satisfaction or waiver of each of the conditions to Closing set forth in Article VII and Article VIII, by the applicable Closing Date. (d) If Buyer delivers the Purchase Option Exercise Notice and Seller delivers the Acceptance Notice, then, subject to Section 2.6, the Closing Date shall occur (i) in the case of a Project Purchase Option exercised pursuant to Section 2.2(a), on the tenth (10th) anniversary of the Commercial Operation Date, (ii) in the case of a Project Purchase Option exercised pursuant to Section 2.2(b), on the fifteenth (15th) anniversary of the Commercial Operation Date, (iii) in the case of a Project Purchase Option exercised under Section

2.2(c), on the twentieth (20th), twenty- fifth (25th) or thirtieth (30th) anniversary of the 224 of 489

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4 Commercial Operation Date, as applicable, and (iv) in the case of a Project Purchase Option exercised under Section 2.2(d), no later than twelve (12) months after the delivery by Buyer of a Purchase Option Exercise Notice.
(e) If Seller does not provide an Acceptance Notice within the time period set forth in Section 2.4(d) , then Buyer’s right to exercise the Project Purchase Option with respect to such Purchase Option Opportunity shall expire and shall no longer be effective (but such expiration shall not effect Buyer’s right to exercise any Project Purchase Option with respect to any future Purchase Option Opportunity). For the avoidance of doubt, neither Party shall have any liability to the other as a result of Seller’s elec tion not to provide an Acceptance Notice within the time period set forth in Section 2.4(c).

2.5 Memorandum of Option. Concurrently with the Approvals Date, the Parties shall execute and acknowledge a memorandum of option in the form attached hereto as Exhibit 2.5, and Seller shall record such memorandum in the Official Records of Millard County, Utah. Seller shall be responsible for payment of all fees and Taxes associated with such recording.

2.6 Closing. In the event Buyer delivers a Purchase Option Exercise Notice, the closing of the purchase and sale of the Facility Assets (the “ Closing”) shall occur at 11:59 p.m. local time on the Closing Date designated pursuant to Section 2.4(d), or such later date within the following fourteen (14) days as shall be thereafter designated by Buyer due to conditions affecting Buyer’s bond financing with respect to the acquisition of the Facility Assets. The Closing shall be held at the offices of Buyer in Glendora, Ca lifornia, or such other reasonable location in California that Buyer designates in a timely notice to Seller, unless the Parties otherwise agree.

All events at the Closing shall be deemed to occur simultaneously, unless otherwise provided herein. In the event the Closing has not occurred by the Closing Date in respect of a Purchase Option Opportunity, then Buyer (in the case of the conditions set forth in Article VII) or Seller (in the case of the conditions set forth in Article VIII), upon written notice to the other Party and without liability, may terminate the Project Purchase Option with respect to such Purchase Option Opportunity, and such Purchase Option Opportunity shall expire and shall no longer be effective (but such termination shall not effect Buyer’s right to exercise any Project Purchase Option with respect to any future Purchase Option Opportunity); provided that a Party cannot terminate any Project Purchase Option with respect to a Purchase Option Opportunity if the failure of the Closing to occur is the result of the failure on the part of such Party to perform its obligations under this Agreement.

2.7 No Additional Warranties . OTHER THAN THE REPRESENTATIONS AND

WARRANTIES EXPLICITLY SET FORTH IN THIS AGREEMENT, NO OTHER

REPRESENTATIONS OR WARRANTIES WHETHER EXPRESS OR IMPLIED SHALL BE

GIVEN OR DEEMED GIVEN AS TO THE FACILITY OR THE FACILITY ASSETS CONSTITUTING THE FACILITY.

2.8 Assumed Liabilities. At the Closing, Buyer shall assume and agree to pay for, perform, fulfill and discharge from and after the Closing, the liabilities and obligations relating to the Facility Assets or the Business that are first required to be performed after the Closing or arising or occurring after the Closing, other than the Excluded Liabilities (collectively, the “Assumed Liabilities”), including the following:
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5 (a) Any Taxes attributable to the ownership of the Facility Assets or operation of the Business for any Post -Closing Tax Period, except for those Taxes attributable to a Pre-Closing Tax Period imposed on Buyer as transferee or successor by contract or under any Requirement of Law as set forth in Section 2.9(b)(iii); (b) Any liability or obligation arising from or relating to any period of time or event occurring after the Closing or that, with notice or lapse of time, could constitute or result in a breach of any Assumed Contracts or Transferred Permit arising from or relating to any period of time or event occurring after the Closing , but only to the extent such liability or obligation does not (i) arise from or relate to any breach by Seller of any Assumed Contract or Transferred Permit prior to Closing, (ii) arise from or relate to any event, circumstance, or condition occurring or existing on or prior to Closing that, with notice or the lapse of time, would constitute a breach of any such Assumed Contract or Transferred Permit, and (iii) arise from any violation of law, breach of warranty, tort or infringement committed by Seller at any time;
(c) Any liability or obligation for the remediation or cleanup of the Facility Site under applicable Environmental Laws attributable to the Release of Hazardous Substances arising or occurring after the Closing Date; but only to the extent such liability or obligation does not (i) arise from or relate to any act or omission of Seller prior to Closing, and (ii) arise from any violation of law, breach of any Permit or breach of any Contract committed by Seller at any time; or
(d) Any liability or obligation for the decommissioning or demolition of the Facility and any environmental and other liability associated with such decommissioning or demolition, without regard to the timing or cause of such decommissioning or demolition.

2.9 Excluded Liabilities. Notwithstanding anything in this Agreement to the contrary, Buyer shall not assume, and shall not be deemed to have assumed, and shall have no liability with respect to (whether asserted before or after the Closing and regardless of whether the same or the basis therefor may have been disclosed to Buyer by Seller or otherwise be known to Buyer), any liabilities or obligations of any nature, fixed or contingent or known or unknown related to the Facility Assets or the Business other than as specifically se t forth in Section 2.7 (with all such unassumed obligations referred to in this Agreement as the “ Excluded Liabilities ”). Without limiting the generality of the preceding sentence, it is agreed that Buyer shall have no liability with respect to any of the following liabilities or obligations (whether asserted before or after the Closing and regardless whether the same or the basis therefor may have been disclosed to Buyer by Seller or otherwise be known to Buyer), all of which are included in the Excluded Liabilities:
(a) Any liability or obligation with respect to any Taxes due from Seller, and any Taxes on or attributable to Facility Assets with respect to any Pre-Closing Tax Period; (b) (i) Any and all Taxes of any member of an affiliated, consolidated, combined or unitary group of which Seller (or any predecessor thereto) is or was a member, including under Treasury Regulations Section 1.1502-6 or any analogous or similar state, local or non-U.S. law or regulation, (ii) all Transfer Taxes, and (iii) all Taxes imposed on 226 of 489

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6 Buyer in respect of Seller and the transactions contemplated hereby as transferee or successor, by contract or under any Requirement of Law, in each case with respect to any Pre-Closing Tax Period;
(c) Any liability or obligation of Seller (other than for Taxes) , whether it is ascertainable in nature and amount by reference to the express written terms of any Assumed Contracts or Transferred Permits, relating to the Facility Assets or the Business, including arising out of Seller’s ownership and operation of the Facility Assets to the extent that such liability or obligation (i) arose, or otherwise relates to the period, prior to Closing, or (ii) relates to Seller’s ownership or operation of the Facility Assets or the Business prior to Closing;
(d) Any liability or obligation of Seller arising out of Seller’s ownership and operation of any assets other than the Facility or any business other than the Business at any time;
(e) Any liability or obligation of Seller under (i) any Contract (including with respect to any contractors or subcontractors thereunder) other than an Assumed Contract or (ii) any Permit other than a Transferred Permit;
(f) Any liability or obligation under any Assumed Contract or a Transferred Permit to the extent such liability or obligation arises from or relates to any breach by Seller of any provision of any such Assumed Contracts or Transferred Permits on or prior to the Closing;
(g) Any liability or obligation (other than for Taxes) arising from or relating to any period of time or event occurring prior to the Closing or that, with notice or lapse of time, could constitute or result in a breach of any Assumed Contracts or Transferred Permit arising from or relating to any period of time or event occurring on or prior to the Closing; (h) Any liability or obligation with respect to any Assumed Contracts or Transferred Permits that is not ascertainable, in nature and amount, solely by reference to the express written terms of any Assumed Contracts or Transferred Permits; (i) Any liability or obligation of Seller arising from or relating to any breach by Seller of any provision of this Agreement, or arising from a breach by Seller, or any event, circumstance or condition occurring or existing on or prior to the Closing that, with notice or lapse of time, constitutes or results in a breach by Seller under this Agreement, the PPA (including the Ancillary Documents), or any of the Operative Documents; (j) Any liability or obligation under any Contract entered into during the Applicable Diligence Period and not assumed by Buyer pursuant to Section 5.10; (k) Any liability or obligation for the remediation or cleanup of the Facility Site under applicable Environmental Laws attributable to the Release of Hazardous Substances arising or occurring on or prior to the Closing Date;
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7 (l) Any liability or obligation of Seller with respect to the employment or termination of any employee or group of employees by Seller, or the terms thereof, whether union or nonunion, whether the liability or obligation calls for performance or observance before or after the Closing and whether the liability or obligation arises from a collective bargaining agreement, pension trust fund plan, or other agreement or arrangement to which Seller is a party or by which Seller is bound (whether oral or written and whether express or implied in fact or in law) or any past practice or custom or otherwise, it being understood and agreed that after the Closing, Buyer will itself be specifying the terms on which it offers employment to any individual to whom it, in its s ole discretion, chooses to offer employment and will not be bound by any term of employment of Seller in effect at or at any time prior to the Closing;
(m) Any liability or obligation of Seller for pension fund payments or unfunded pension fund liabilities;
(n) Any liability or obligation arising from or associated with any of the Excluded Assets;
(o) Any liability or obligation of Seller or its Affiliates (other than for Taxes) arising out of or related to any claim or loss against Seller or its Affiliates or any third - party claims or losses which adversely affects the Facility Assets and which shall have been asserted prior to the Closing or to the extent the basis of which sha ll have arisen exclusively prior to the Closing;
(p) Any liability or obligation of Seller or its Affiliates to a third party arising from any indemnification claim, injury to or death of any person or damage to or destruction of any property (and including workers’ compensation claims, discrimination, wrongful discharge, or unfair labor practice), whether based on negligence, breach of warranty, strict liability, enterprise liability or any other legal or equitable theory arising from actions by, for or on behalf of Seller or its Affiliates arising prior to the Closing; and (q) Any liability or obligation of Seller or its Affiliates representing Facility Debt incurred by Seller or its Affiliates or Liens or encumbrances other than Closing Permitted Encumbrances.

Seller shall remain liable for or otherwise pay or discharge, or cause the payment or discharge, of all Excluded Liabilities prior to the Closing.

2.10 Schedule Updating: Final Purchase Price.
(a) No later than the date that is thirty (30) days prior to the designated Closing Date (the “Updated Schedule Delivery Date ”), Seller shall have provided Buyer with updated Seller Disclosure Schedules which shall be the final Seller Disclosure Schedules for purposes of its representation and warranties made under Article III as of the Closing.

Notwithstanding the foregoing, any update included in an updated Seller Disclosure Schedule delivered pursuant to this Section 2.9(a) shall have no effect for purposes of 228 of 489

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8 determining the satisfaction of any condition to Closing set forth in Article VII and shall not alter the effect of Buyer’s right to terminate this Agreement pursuant to Section 10.2. (b) At the Closing, upon the terms and subject to the conditions set forth herein, Buyer shall, in exchange for the sale, transfer, assignment, conveyance and delivery of the Facility Assets by Seller, and the assumption by Buyer of the Assumed Liabilities in accordance with this Agreement, pay Seller the Final Purchase Price determined in accordance with Exhibit 2.4. Such Final Purchase Price shall be paid by Buyer by wire transfer of immediately available funds to an account designated in writing by Seller. The Parties agree to allocate the Final Purchase Price (and all other capitalizable costs) among the Facility Assets in accordance with Code §1060 and the U.S. Department of Treasury regulations thereunder (and any similar provision of state, local, or no n-U.S. law, as appropriate).

2.11 Proration. Buyer and Seller agree that any items normally prorated, including those listed below, relating to the Business and the Facility Assets, shall be prorated as of the Closing, with Seller being liable therefor to the extent such items relate to periods (or portions thereof) ending on or prior to the Closing, and Buyer being liable to the extent such items relate to periods (or portions thereof) beginning after the Closing with, to the extent practicable, a cash settlement on the Closing:
(a) personal property and real estate Taxes, assessments and other charges, if any, by the applicable municipality, on the basis of the applicable municipality’s fiscal year, on or with respect to the Business;
(b) rent, Taxes and other items payable by or to Seller under any of the Assumed Contracts assigned to and assumed by Buyer hereunder which are associated with the Facility Assets;
(c) any Permit, registration, compliance, assurance fees or other fees with respect to any Transferred Permit comprising part of the Facility Assets; and (d) sewer rents and charges for water, telephone, electricity and other utilities.

In connection with the prorations referred to in this Section 2.11, in the event that the actual amounts for such items are not available on the Closing Date, the proration to be used as of the Closing Date shall be based upon actual Taxes or fees for the preceding year (or such other appropriate period of time) for which actual Taxes or fees are available. The prorated amounts of Taxes or fees shall be adjusted upon the request of Seller, on the one hand, or Buyer, on the other hand, within sixty (60) days following the date on which actual amounts become available. Seller and Buyer shall furnish each other with such documents and other records as may be reasonably requested in order to confirm any adjustments to the proration calculations made pursuant t o this Section 2.11. The Parties shall make any true -up payments owed to the other Party within thirty (30) days following receipt by the Parties of all required information required in connection with the prorations referred to in this Section 2.11. Taxes shall be prorated as provided in the definition of “Straddle Period”.
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9 2.12 Closing Costs; Transfer Taxes and Fees. Seller shall be solely responsible for all recording, documentary and transfer Taxes and any sales, use or other Taxes imposed by reason of the transfer of the Facility Assets as provided hereunder (collectively, “Transfer Taxes”), and any deficiency, interest or penalty asserted with respect thereto, under applicable Requirements of Law. Seller shall provide Buyer with evidence reasonably satisfactory to Buyer that all Transfer Taxes have been paid by Seller. If any Transfer Taxes are imposed on Buyer and Buyer pays such Transfer Taxes , Buyer shall have the right to seek reimbursement for its payment of such Transfer Taxes from Seller , and Seller shall be obligated to reimburse Buyer for such payment.

2.13 Decommissioning and Other Costs . Unless a Closing occurs pursuant to the exercise by Buyer of the Project Purchase Option, Buyer shall not be responsible for any cost of decommissioning or demolition of the Facility or any environmental or other liability associated with such decommiss ioning or demolition, without regard to the timing or cause of such decommissioning or demolition.

2.14 Closing Obligations. At the Closing: (a) Seller will deliver (or will have delivered) to Buyer each of the certificates, instruments, documents and agreements referred to in Article VII to be provided by Seller on or prior to the Closing, and (b) Buyer will deliver (or will have delivered) to Seller (i) the Final Purchase Price, and (ii) each of the certificates, instruments, documents and agreements referred to in Article VIII to be provided by Buyer on or prior to the Closing.

2.15 Bulk Sales Law. Unless waived by Buyer or otherwise not applicable, Seller shall, prior to the Closing, comply with the requirements of sellers under any applicable bulk sales law.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLER
Upon the exercise of the Project Purchase Option, Seller represents and warrants to Buyer as follows as of the Schedule Delivery Date and the Closing Date and, with respect to Sections 3.1 and 3.2, the Effective Date (with the understanding that, following the Schedule Delivery Date, Seller shall have the right, until it delivers final Seller Disclosure Schedules as provided in Section 2.10(a), to update any information contained in the Seller Disclosure Schedules if the occurrence of events or the discover y of new information makes the revision of such Seller Disclosure Schedules necessary, but subject to a Purchase Price adjustment as set forth in Exhibit 2.4 and the limitations on the effect of such revisions set forth in Section 2.10(a)):

3.1 Organization and Good Standing. Seller is a limited liability company duly organized, validly existing and in good standing under the laws of its state of organization and is qualified to do business in the State of California and the State of Utah , and has the legal power and authority to own its properties, to carry on its Business as now being conducted and to enter into and perform its obligations under this Agreement and each of the Operative Documents to which Seller is a party.

3.2 Authority; Absence of Conflict or Breach. The sale of the Facility Assets and the execution, delivery and performance by Seller of this Agreement and each of the Operative Documents have been duly authorized by all necessary limited liability company action on the 230 of 489

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10 part of Seller and the owners of any interest in Seller and do not require any consent or approval other than those which have already been obtained or otherwise as disclosed in the Seller Disclosure Schedules. This Agreement and each of the Operative Doc uments to which Seller is a party constitute the legal, valid and binding obligation of Seller, enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws re lating to or affecting the enforcement of creditors’ rights generally or by general equitable principles, regardless of whether such enforceability is considered in a proceeding in equity or at law. The execution and delivery of this Agreement and each of the Operative Documents to which Seller is a party, the consummation of the sale of the Facility Assets and the fulfillment of and compliance with the provisions of this Agreement and the Operative Documents to which Seller is a party do not conflict with or constitute a breach of or a default under, any of the terms, conditions or provisions of any Requirements of Law, or any Organizational Documents, agreement, deed of trust, mortgage, loan agreement, other evidence of indebtedness or any other agreement or instrument to which Seller is a party or by which it or any of its property is bound, or result in a breach of or a default under any of the foregoing or result in or require the creation or imposition of any Lien upon any of the properties or assets of Seller (except as contemplated hereby).

3.3 Real Property Matters.
(a) If Seller entered into a Sale Leaseback Financing of the Facility Site in accordance with the PPA, the Lessor (as defined in the PPA) has provided Buyer evidence, which evidence Buyer has either confirmed in writing is satisfactory to Buyer or has not objected to in writing, of a binding obligation of such Lessor or Lessors and Seller to terminate such Sale Leaseback Financing (as defined in the PPA) on or prior to the Closing by the (i) reconveyance of the Facility Site by such Lessor or Lessors to Seller and the termination of the lease of the F acility Site by such Lessor or Lessors and Seller, or (ii) transfer of the Facility Site directly by such Lessor or Lessors to Buyer, provided that any such transfer from Lessor directly to Buyer shall be on the same terms and conditions as a transfer of the Facility Site from Seller to Buyer as set forth in this Agreement. (b) As of the Closing Date, Schedule 3.3 contains a true, correct and complete list of any Contracts, including the Land Documents, that provide Seller with any rights in or to real property (“ Real Property Contracts ”), including rights in the nature of leases, easements, licenses, rights of way, franchise agreements, restrictive covenants, purchase agreements, agreements to relinquish or limit surface access rights with regards to minerals, options to purchase or lea se, or applications for or bids to Governmental Authorities with respect to any of the foregoing interests in real property (collectively, “Real Property Interests”), as well as leases (including farm and grazing leases) and other agreements that grant or purport to grant, or reserve or purport to reserve to third parties, interests in or to the land which is subject to Real Property Interests (“Third Party Property Interests”). True, correct and complete copies of the Real Property Contracts have been delivered to Buyer. As of the Closing Date, Seller holds no Real Property Interests other than those that are set forth in such Real Property Contracts. Neither Seller, nor to Seller’s Knowledge, any counterparty thereto, is in default in any material respect of any material obligation with respect to the Real Property Contracts. Each of the Real Property Interests granted by a Real Property Contract provides legal, valid, and enforceable rights in favor 231 of 489

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11 of Seller and constitutes a legal, valid and binding obligation of Seller and, to Seller’s Knowledge, of the other parties thereto. To the extent obtained by or in the possession or control of Seller, or any Affiliate of Seller, t rue, correct and complete copies of all title reports, surveys, mineral reports for any severed minerals (including any evaluation as to feasibility or likelihood of mineral extraction and any separate chain of title for severed minerals), material records searches (for any governmental records not included in any title reports) and exception documents referenced in such reports, policies, or searches have been delivered to Buyer.
(c) Except as set forth in Schedule 3.3, Seller has not received any written notice of any appropriation, condemnation or like proceeding, or of any violation of any applicable zoning or land use law, regulation or rule or other Requirement of Law relating to or affecting any of the Real Property Interests.
(d) Except as set forth in Schedule 3.3, Seller has not previously severed any mining, mineral or water rights from any of the Real Property Interests and has disclosed to Buyer any information known to Seller or any Affiliate of Seller regarding any severed mining, mineral or water rights affecting the Real Property Interests. (e) Except as set forth in Schedule 3.3, other than with respect to the Real Property Contracts or Permits and any Third- Party Property Interests , Seller has not received any written notice that any agreements with any Governmental Authority or public or private utility affect the Real Property Interests. (f) Except as set forth in Schedule 3.3, e ach of the Real Property Interests consisting of a “fee estate” has been legally subdivided and is assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of such lot or lots, and no other land or improvements is a ssessed and taxed together with any such Real Property Interests consisting of a Fee Estate or any portion thereof. Except as set forth in Schedule 3.3, with respect to Real Property Interests comprising either a leasehold or easement estate, the Facility Assets have either been separately assessed for real estate tax purposes by Millard County or any liability of the holder of such leasehold or easement estate for real estate taxes has been apportioned pursuant to the Real Property Contracts creating the leasehold or easement estate.
(g) Except as set forth in Schedule 3.3, none of the Real Property Interests has been designated as “Border Zone Property” under the provisions of California Health and Safety Code, Sections 25220 et seq. or any regulation adopted in accordance therewith, and there has been no occurrence or condition on any real property adjoining any of the Real Property Interests that is reasonably likely to cause such Real Property Interest or any part thereof to be designated as border zone property.

3.4 Consents. Except as set forth in Schedule 3.4, including the Consent required under the Federal Power Act, other than those that have been obtained or filed, no Consent of, or registration, qualification or filing with , any Person, including any Governmental Authority, is 232 of 489

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12 required for the sale of the Facility Assets or the execution and delivery by Seller of this Agreement or any of the Operative Documents to which it is a party or in order for Seller to perform its obligations hereunder or thereunder.

3.5 Assets of the Business. Except as set forth in Schedule 3.5, the Facility Assets (a) constitute all of the assets, properties, rights, privileges, claims , Permits and Contracts of every kind and nature, real or personal, tangible or intangible, absolute or contingent, wherever located, owned or used (including those necessary to access and utilize any common use facilities) necessary to conduct operations on the Pr emises, to operate the Facility, and to sell , and deliver Energy generated by the Facility, in substantially the sa me manner as it has historically been operated by Seller, and (b) are free from material defects caused by errors or omissions in design, engineering or construction, and are generally consistent with the description of the Facility set forth in the PPA. Except as provided in Schedule 3.5, the Fixtures and Equipment are in good repair and operating condition, ordinary wear and tear excepted.

Glendale City CouncilJune 2, 2026

Glendale City Council
June 2, 2026