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Home My WebLink About20031110AAttachment to Response No. 37 of Idaho Power.pdfIdaho Public Utilities Commission Office of the SecretaryRECEIVED NOV - 7 2003 BoIse. Idaho ASSET PURCHASE AND SALE AGREEMENT Between IDAHO POWER COMPANY And MOUNTAIN VIEW POWER INC. November L, 2003 Table of Contents AR TI C LE 1 .... ......."....... ..... ........ ..... ................... ................ ........................ ............. ................. ..... ............. ....................... ..... DEFINITIONS ................................................................................................................................................................... Section Order of Precedence ..................................................................................................................................... ART I C L E 2 ............................................................................................................................................................................. SALE OF ASSETS................................................................. ................................................................................................ Section Transfer Of Assets by Seller............................................................................................ .......................... Section Purchase Of The Assets By Buyer ............................................................................................................. Section 2.3 Purchase Price................................................................ ........................................................................ Section 2.4 The Closing ............................................................................................................................................. Section Assumption of Liabilities ......................................................................................................................... Section Further Assurances ................................................................................................................................. A R TI C L E 3 ........... .......... .... ... ..... """ ......... ... ............... ... . .....,.... ............... ......... . .... .. . ... . .. . ...... . .. no.. .., .. ..... no...................... ... SELLER'S REPRESENTATIONS AND WARRANTIES ...................................................................................................... Section Corporate Matters............................................................................ ....................................................... Section Validity Of Contract; No Conflict ........................................................................................................... Section Consents, Approvals and Authorizations............................................. .................................................... Section 3.4 No Proceedings """""""""""""""""""""""""""""""""""................................................................. Section Encumbrances .........................................".............................................................................................. Section Absence Of Certain Changes ................................................................................................................. Section Property, Plant And Equipment .............................................................................................................. Section Permits, Licenses, Etc. ..............................................................,............................................................. Section Resources ................................................................................................................................................ Section 3.10 Expertise ............................................................................................................,.................................... A R TI C L E 4 ......................................................................................................................................................................... .. REPRESENTATIONS AND WARRANTIES OF BUYER............................................................... ...................................... Section Corporate Organization; Etc. ................................................................................................................. Section Validity Of Contract; No Conflict ......................................,.................................................................... ARTICLE 5 ......................................................................................................................................................................... .. GENERAL OBLIGATIONS SELLER .................................................................................................................................. Section Seller s General Obligations..................................................... .............................................................. Section Physical Obstructions And Conditions........................................................... ......................................... Section Subcontracting ........................................................................................................................................ Section 5.4 Compliance With Requirements Of Law ................................................................................................. Section Governmental Approvals......................................................... ................................................................ Section Opportunities For Other Contractors ..................................................................................................... Section Authority For Access...................................................................... ......................................................... Section Seller s Use Of Buyer s Drawings .......................................................................................................... Section Seller Drawings............................................................ ........................................................................... Section 5.10 Vary Or Alter Works....................................................................................... ........................................ Section 11 Intellectual Property Rights And Software Licenses............................................................................... Section 12 Seller s Representative ........................................................................................................................... Section 5.13 Electricity, Water And Pipeline Natural Gas.......................................................................................... Section 14 Decisions And Instruction Of Buyer s Representative............................................................................ Section 5.15 Cooperation With Buyer......................................................................................................................... Section 16 Spare Parts Inventory.............................................................. ............................................................... ARTIe L E 6.... ........... no. ........... ... . .......... ........................ . .. ..... ............. .. . ....... ..... .... .. ... . ... .. ....... .............................. ...... ........ GENERAL OBLIGATIONS OF BUYER ............................................................................................................................. Section Buyer s General Obligations............................................................. ...................................................... TABLE OF CONTENTS Page i Section Section 6.3 Section 6.4 Section Section Section Section Operations And Maintenance Staff................................................................... ...................................... Permits, Licenses, Consents And Waivers................................................................ ............................... Cooperation With Seller................................................. ......................................................................... Buyer s Representative.................................................. .......................................................................... Standard Of Conduct.............................................................. ................................................................. Buyer s Use Of Seller s Drawings .................................................,........................................................ Errors By Buyer Or Buyer s Representative ........................................................................................... AR TI CLE 7 """""" """"'" ...... ........................... ........ .......... """"'" ....................... ............................... ........ ....... ...... ........ .. CHANGE ORDERS................................................ ............................................................................................................. A R TI C L E 8... ..... . .. .... ... .. .. ............ .... .... .... ....... ........ ............................ ............ ......... ............................................. .. .... ....... .. WORKMANSHIP AND MA TERIALS............................................................................... ................................................... Section Manner of Execution............................................................ ................................................................... Section Inspection.............................................................. ......................,........................................................... A R TI C L E 9 ........................... ......... . ... . ............ ......... ... ......... ... ......... ................ .. ....... ..... .................... ................. .............. . .. . SUSPENSION OF WORKS, DELIVERY OR ERECTION .................................................................................................. Section Order to Suspend......................................................................... ............................................................ Section Protection of Works................................................................... .............................................................. Section 9.3 Resumption of Work ................................................................................................................................ Section 9.4 Change Order in Event of Suspension........................................................... .......................................... Section Storage in the Event of Suspension ......................................................................................................... AR TI LEI 0 .............................................................................. ......... """"""" .. .... .., ....... ... .................. """"""""""" ......... PROJECT COMPLETION.......................................................... ........................................................................................ Section 10.Notice To Proceed .................................................................................................................................. Section 10.Timefor Completion................................................................. .............................................................. Section 10.3 Extension of Time for Completion ..................................................................."..................................... Section 10.4 Buyer s Requestfor Earlier Completion............................................................ ..................................... Section 10.Delay in Completion............................................................... ................................................................ Section 10.Progress Reports .................................................................................................................................... A R TI CL E 11 .. ......... """" . .. . .......... . . .... ... . .. ....... ...... .. .... ..... """"""""""""" ...... .... .... ..... ......... ..... ......... ............. . ... ... .. .. ...... .. 2 8 PERFORMANCE TESTING ............................................................................................................................................... Section 11.Performance Tests .................................................................................................................................. Section 11.Emissions Guarantee............................................................. ................................................................. Section 11.3 Cost and Direction........................................................ .......................................................................... Section 11.4 Buyer s Right to Validate............................................................... ......................................................... Section 11.5 Seller s and Contractor s Right to Adjust......................................................................................... ...... Section 11.Timing............................................................ ......................................................................................... Section 11.Test Reports ............................................................................................................................................ A R TI C L E 12 .........................................................................................................................................................................3 0 NOTICE OF PROVISIONAL ACCEPTANCE ................................................................................................................... NOTICE OF FINAL ACCEPTANCE .................................................................................................................................. AND TRANSFER OF CARE ............................................................................................................................................... Section 12.Notice of Provisional Acceptance of Works...................................................................................... ...... Section 12.Care, Custody and Control; Punch List Items....................................................................................... Section 12.3 Dispatch Coordination ........................................................................................................................... Section 12.Use Before Acceptance Date .................................................................................................................. Section 12.Title and Risk of Loss...................................................................... ........................................................ Section 12.Notice of Final Acceptance of Works......................................................................... ............................. ARTICLE 13 .........................................................................................................................................................................3 2 CODES AND STANDARDS.............................................................. .................................................................................. T ABLE OF CONTENTS Page ii Codes and Standards................................................................ .............................................................. Change in Compliance Criteria............................................................. ................................................ .32 Comparable Quality ............................................................................................................................... AR TI CLE 14 ..... ....... ........ ......., ...... ........ ............... ........... ............ """"""""" ............... ............... ..................... ................... . Section 13. Section 13. Section 13.3 ENVIRONMENTAL MATTERS............................................................... .............................................:.............................. Section 14.General..................................................................... ............................................................................. Section 14.Release On-Site............................................................. .......................................................................... Section 14.3 Release Off-Site ...................................................................................................................................... Section 14.4 Liability................................................................. .................................................................................. Section 14.Notice.................................................................. .................................................................................... A R TI C LE 15 ......................................................................................................................................................................... WARRANTIES OF WORKS ................................................................................................................................................ Section 15.Warranties of the Works ......................................................................................................................... AR TI CLE 16 .................................................................................................................. .... ... ...... .... ... """""""'" ... .. . . . ..... .... LIQUIDATED DAMAGES................................................................... ............................................................................... Section 16.General...................................................................... ............................................................................. Section 16.2 Liquidated Damages for Delay in Turbine Delivery............................................................................... Section 16.3 Liquidated Damages for Delay in Acceptance ...................................................................................... .35 Section 16.4 Liquidated Damagesfor Net Capacity and Net Heat Rate..................................................................... Section 16,Remedial Actions .................................................................................................................................... Section 16.Calculations and Payments of Liquidated Damages .............................................................................. A R TI C L E 17 ......... . .. ........ .................................. .. ............ .. .............. ................................... ............. ................. .... .......... ...... 3 7 ADDITIONAL PAYMENT PROVISIONS AND REMEDIES ............................................................................................. .37 Section 17.1 General....................................................................... ............................................................................ Section 17.Payment Milestones............................................................ """""""""""""""""""""""""""""""""" Section 17.3 Revisions to Payments Resulting from Change Orders .......................................................................... Section 17.4 Invoices.................................................................... """"""""""""""""""""""""""""""""""........... Section 17.5 Remedies on Buyer s Failure to Make Payment..................................................................................... Section 17.Revisions to Payments Resulting from Change Orders ......................................................................... .38 Section 17.Buyer s Right to Withhold Payments. .................................................................................................... .38 Section 17.Records and Accounts.......................................................... ................................................................... A R TI C L E 18 ......................................................................................................................................................................... 3 9 ................................................................................................................................................................ 39 Claims..................................................................... ................................................................................ CLAIMS Section 18. AR TI CLE 19 ..... ................................ ............................... ........................ ............................ ........ .............. ........ ........ ........... LIMITATIONS OF LIABILITY............................................................... ............................................................................. Section 19.Limitation of Seller s Liability........................................................................................... ..................... Section 19.Limitation of Buyer s Liability................................................................................................................ Section 19.3 Warranty Limitation ............................................................................................................................... Section 19.4 Limitations on Liquidated Damages....................................................................................................... AR TI CLE 20 .....".. ....... .............. ................ """"""""""" .......... ............................ .......... .................... .................... ............ . INDEMNIFICATION.......................................................... ................................................................................................ Section 20.Indemnification.................................................... ................................................................................... Section 20.Title Indemnity and Liens ....................................................................................................................... AR TI C L E 21 ............ ...... .................. """""""""""""""" ...... .......... ................... .... ........ ........ ..... . ... .... ... ... . . .. ........ .. ............. INSURANCE Section 21. Section 21. ................................................................................................................................................................. Contractor s and Subcontractors ' Insurance Coverage......................................................... ............... .43 Builder s Risk Insurance......................................................... ............................................................... TABLE OF CONTENTS Page iii Section 21.3 Section 21.4 Section 21. Buyer s Insurance Coverage .................................................................................................................. Waiver of Rights ..................................................................................................................................... Sellers Cooperation with Buyer......................................................................... ..................................... AR TI CL E 22 """" ......,............. ............. ........... ........... ............ ............." """"""'" ....... ..... ........... """""""""" ................ ..... FORCE MAJEURE.................................................................... ......................................................................................... Section 22.Effect of Force Majeure..... :.................................................................................................................... Section 22.Notice of Occurrence..................................................... ........................................................................ .46 Section 22.3 Performance to Continue................................................................ ....................................................... .46 Section 22.4 Damage Caused by Force Majeure ....................................................................................................... .47 Section 22.Termination in Consequence of Force Majeure ..................................................................................... ART I C L E 23 ......................................................................................................................................................................... 48 DEFAULT Section 23. Section 23. Section 23. """""""""""""""""""""""""""........................................................................................................... Seller s Default................................................................... .................................................................... Buyer s Default........................................................... ............................................................................ Removal of Contractor s and Seller s Equipment .................................................................................. A R TI C L E 24 ............... ....... ..... .. ........... ... .............. ........... . ......... ....... ................... ..... .......................................... ................ . TERMINATION ................................................................................................................................................................. Section 24.Termination by Buyer............................................................................................................................. Section 24.Termination by Seller """""""""""""""""""""""""""""""""""""""'"............................................ Section 24.Exclusivity................................................................ ............................................................................... TAXES Section 25. Section 25. Section 25.3 Section 25.4 A R TI C L E 25 ..................... ........... ..................... . ....... ....... .......... ....................................... ... ............... ........ . ... ...,..... """""'" 51 ................................................................................................................................................................. Buyer s Obligation................................................................ .................................................................. Seller s Obligation..................................................................... ............................................................. Pollution Control Equipment....................................................... ........................................................... Shipping and Handling Charges...................................................................... ....................................... A R TI CL E 26 .................................................................................................................................................................... ..... 5 2 DISPUTES Section 26. ................................................................................................................................................................. Dispute Resolution................................................... ............................................................................... A R TI C L E 27 ... ........ . ..... ................. .. ... .......... ... ........ ..... ""'" ...... ... ................ ... """""""""""'" ......... '" .. ................. .... ........ 5 2 ASSIGNMENT Section 27. Section 27. ................................................................................................................................................................. Assignment of Party s Interest............................................................... ................................................. Permitted Assignment ............................................................................................................................. A R TI C L E 28 ................................................................................................................ ........................... ... .. .................... ..... 5 3 CONFIDENTIALITY........................................ ................................................................................................................... Section 28.Confidentiality ........................................................................................................................................ A R TI C LE 29 ......................................................................................................................................................................... 5 4 MISCELLANEOUS PROVISIONS...................................................... """""""""""""""""""""""""""""""""""""""" Section 29.Notices, Consents and Approvals ........................................................................................................... Section 29.Entire Contract........................................................... ............................................................................ Section 29.3 Amendment; Waiver.............................................................. .................................................................. Section 29.4 Successors and Assigns............................................................... ............................................................ Section 29.Third Party Beneficiaries....................................................... ................................................................. Section 29.Severability....................................................... ...................................................................................... Section 29.Further Assurances.............................................................. ................................................................... Section 29.Publicity........................................................ """""""""""""""""""""""""""""""""""""""............ Section 29.Independent Contractor............................................................. ............................................................. Section 29.10 Survival............................................................ ..................................................................................... TABLE OF CONTENTS Page iv Section 29. Section 29. Section 29. Section 29. Section 29. Section 29. APPENDIX A: APPENDIX B: APPENDIX C: APPENDIX D: APPENDIX E: APPENDIX F: APPENDIX G: APPENDIX H: APPENDIX I: APPEND IX J: APPENDIX K: APPENDIX L: APPENDIX M APPEND IX N: T ABLE OF CONTENTS Governing Law """""""""""""""""""""""""""""""""""............................................................... Counterparts ......................................................................................................................................... Guaranty.................................................................. ............................................................................. Transfer ................................................................................................................................................ Captions............................................................ .................................................................................... Cooperation with Lenders .................................................................................................................... LIST OF APPENDICES SITE REFERENCES SCOPE OF SUPPLY AND TECHNICAL SPECIFICATIONS CONTRACTOR PROVIDED ON-SITE TRAINING PROGRAM OVERVIEW CONTRACTOR SUBMITTALS GOVERNMENT APPROVALS BUYER SCHEDULE MILESTONES PROJECT SCHEDULE STANDARDS, CODES AND REGULATIONS PERFORMANCE TESTS , PROVISIONAL ACCEPTANCE AND FINAL ACCEPTANCE PAYMENT & CANCELLA nON SCHEDULE CHANGE ORDER COSTING FORM OF CONTRACTOR'S GUARANTEE DISPUTE RESOLUTION SELLER & CONTRACTOR FINAL WAIVER AND RELEASE OF LIEN Page v SEE NOTEBOOK FOR COMPLETE FILING