EXHIBIT 99.3
ASSIGNMENT, ASSUMPTION AND NOVATION AGREEMENT (CED)
THIS ASSIGNMENT, ASSUMPTION AND NOVATION AGREEMENT (this "Agreement") is
dated as of the 18/th/ day of October, 1999, by and between FPL Energy Operating
Services, Inc., a Florida corporation ("Assignor"), and Coso Operating Company
LLC, a Delaware limited liability company ("Assignee").
All capitalized terms not otherwise defined herein have the meanings set
forth in that certain Indenture (the "Indenture"), dated as of May 28, 1999, by
and among Caithness Coso Funding Corp., a Delaware corporation, Coso Finance
Partners, a California general partnership, Coso Energy Developers, a California
general partnership, Coso Power Developers, a California general partnership,
and U.S. Bank Trust National Association as trustee.
WHEREAS, Assignor desires to transfer all of its rights and
responsibilities respecting the Plant O&M Agreement (as defined below) to
Assignee; and
WHEREAS, Assignee desires to assume Assignor's rights and responsibilities
under the Plant O&M Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:
1. ASSIGNMENT OF PLANT O&M AGREEMENT:
---------------------------------
Assignor hereby grants, bargains, sells, assigns, transfers and
delivers to Assignee all of Assignor's right, title and interest in and to the
Operation and Maintenance Agreement (BLM Project), dated as of May 28, 1999, by
and among Coso Energy Developers ("CED"), Assignee, Coso Transmission Line
Partners and Assignor (the "Plant O&M Agreement"). Except as set forth in
Section 6 hereof, such grant, bargain, sale, assignment and delivery of
Assignor's interest in the Plant O&M Agreement is made without any
representation or warranty by Assignor.
2. ASSUMPTION OF LIABILITIES:
-------------------------
Assignee hereby accepts the assignment of the Plant O&M Agreement and
hereby assumes, and agrees to pay and perform when due, the obligations imposed
upon Assignor under and with respect to the Plant O&M Agreement accruing or
arising on or after the date of this Agreement.
3. ADDITIONAL DOCUMENTS:
--------------------
In order to effectuate the assignment of the Plant O&M Agreement, the
parties will, at the sole cost and expense of Assignee, cause the following
additional documents to be executed and delivered:
(a) Assumption Agreement with respect to that certain Security
Agreement (BLM) regarding Governmental Approvals, dated as of May 28, 1999, and
amendments to the related UCC's (2);
(b) Termination Agreement and Consent with respect to that certain FPL
Operating Fee Subordination Agreement (BLM) dated as of May 28, 1999;
(c) Termination Agreement with respect to that certain Consent and
Agreement (O&M Agreement) (BLM) dated as of May 28, 1999;
(d) Certification from CED, pursuant to Section 4.15 of the Credit
Agreement, dated as of May 28, 1999, by and between Caithness Coso Funding Corp.
and CED, that the termination, amendment, replacement or modification of the
above agreements will not have a Material Adverse Effect; and
(e) Notification to and consent of U.S. Bank Trust National
Association, as trustee and as collateral agent, as required by the applicable
Financing Documents .
Assignee agrees to use its best efforts to execute, or to cause its
affiliates to execute, the documents called for by this Section. Assignor agrees
to execute such agreements, reasonably satisfactory in form and substance to it,
and take such actions as may be reasonably necessary on its part to effectuate
the foregoing. The forms of all such documents shall be prepared by Assignee or
its affiliates at its expense and shall be subject to approval by the Trustee
and Collateral Agent under the Financing Documents.
4. COOPERATION:
-----------
Assignor and Assignee shall cooperate in transferring all operating
activities under the Plant O&M Agreement including, executing the assignments,
amendments, replacements and/or terminations of applicable project operating
permits listed on Schedule I attached hereto where Assignor is named as an
applicant or a responsible party, and such further documents reasonably
satisfactory in form and substance to each of them, and taking such further
action as may be reasonably necessary for Assignee to secure permits for the BLM
Project in its name and for relieving Assignor of any liability and requirements
under its existing permits. Assignee shall, or shall cause CED to, pay for all
fees and expenses imposed by applicable governmental authorities.
5. LIABILITY AND RELEASE:
---------------------
Effective upon the date first written above (the "Effective Date"),
Assignor shall have no liability to CED or Assignee and except for Section 9.2.1
of the Plant O&M Agreement, CED and Assignee shall have no further liability to
Assignor with respect to the Plant O&M Agreement (or any prior performance, past
or future non performance, act or omission under or with respect to the Plant
O&M Agreement) except as expressly set forth herein; and concurrent
2
with the execution of this Agreement Assignor, CED and Assignee will each cause
to be executed and delivered a Release Agreement in the form of Exhibit A-1 and
A-2, attached hereto, respectively.
6. PAYMENTS PURSUANT TO THE PLANT O&M AGREEMENT:
--------------------------------------------
On the Effective Date, Assignee shall pay to Assignor the amount set
forth on Schedule II attached hereto. This amount shall include 100% of all
accrued and unpaid Annual Operating Fee, Reimbursable Costs and estimated future
Reimbursable Costs (as these terms are defined in the Plant O&M Agreement).
Assignor represents and warrants that (a) Schedule III hereto contains a good
faith estimate of all Reimbursable Costs for the period from October 1, 1999
through the Effective Date and (b) to the knowledge of Assignor, except for non-
material variances to the estimate described in (a) or liabilities relating to
the items listed on Schedule IV hereto, Assignor has not accrued, incurred or
become liable for any Reimbursable Cost or incurred any liabilities for which
Assignee or CED may be responsible or liable. For purposes of this Section, the
term "knowledge" shall mean, and be limited to, the actual knowledge of Xxx
Brake, Production Assurance Manager, Xxxx Xxxxxxxxxxx, Accounting, Xxxxx
Xxxxxxxx, Accounting, Xxxx Xxxxx, Environmental, Xxxxxxx Xxxxxx, Environmental,
Xxxxx Xxxxxxx, Human Resources, Xxxxxx Xxxx, Human Resources, Xxxxx Xxxxx,
Production Execution, Xxxx Xxxxx, Production Execution, Xxxx Xxxxx, Purchasing
Manager, Xxx Xxxxx, Plant General Manager, and Xxx Xxxxxxxxx, Production
Manager.
In the event that such estimated future Reimbursable Costs are less
than the actual Reimbursable Costs which are incurred by Assignor and Assignor
has not been reimbursed by Assignee or CED for such costs, then on or before the
30/th /day after the Effective Date, Assignee shall pay to Assignor such
difference. Additionally, in the event that such estimated future Reimbursable
Costs are greater than the actual Reimbursable Costs which are incurred by
Assignor, and Assignor has been reimbursed by Assignee for such excess, then on
or before the 30/th/ day after the Effective Date, Assignor shall pay to
Assignee such excess.
7. TRANSFER OF EMPLOYEES:
---------------------
Assignor agrees that Assignee shall have the right to offer employment
to any employee of Assignor who is employed by Assignor at the BLM Project at
the Effective Date (a "Project Employee") on the terms determined by Assignee;
and Assignee agrees at the Effective Date to offer the Project Employees
employment on terms determined by Assignee and that no benefits of the Project
Employees shall carry over except for accrued vacation and seniority of
employment.
Assignee agrees to give Assignor prompt written notice of all such
offers of employment that are made to the Project Employees and any that are
rejected. Assignee agrees to reimburse Assignor for severance payments and
benefits (collectively, "Severance Benefits") agreed to be made by Assignor to
any Project Employee who is not offered comparable employment (including,
without limitation, comparable wages and benefits) at the BLM Project.
3
Assignor shall have discretion in determining the Severance Benefits to be
provided to the Project Employees provided that such Severance Benefits are
reasonably consistent with past practices of Assignor and its affiliates.
Additionally, if a Project Employee is employed by Assignee but is terminated by
Assignee without cause within six (6) months following the date of employment of
such Project Employee by Assignee, such Project Employee will be treated as a
Project Employee who was not offered employment by Assignee.
Each request for reimbursement by Assignor in respect to a Project
Employee must only state (i) the identity of the Project Employee(s) who have
received or will receive such Severance Benefits, and (ii) in reasonable detail,
the amount of the Severance Benefits made or to be made to such Project
Employee(s) and, if applicable, include a copy of any agreement entered into by
such Project Employee(s) and Assignor with respect to termination of employment.
The reimbursement payment shall be made by CED or Assignee within thirty (30)
days following receipt by Assignee of such written request. Assignee agrees
that, with respect to any Project Employee in respect of which Assignee shall
pay or reimburse Assignor for Severance Benefits as described above, Assignee
shall also pay (or to the extent paid by Assignor or any affiliate of Assignor,
reimburse Assignor and its affiliates for) any taxes, or other costs, related to
such Severance Benefits and incurred by Assignor or its affiliates.
8. DELIVERY OF OPERATING DATA AND RECORDS:
--------------------------------------
On the Effective Date, Assignor agrees to deliver at the BLM Project
the operating data and records, maintained pursuant to Section 2.5 of the Plant
O&M Agreement, to Assignee or to any individual or entity designated by
Assignee.
9. INDEMNITY:
---------
Assignee and CED agree to jointly and severally defend, indemnify and hold
harmless Assignor, any shareholder in Assignor and any of their respective
officers, directors, employees, agents, attorneys and affiliates (collectively,
the "Assignor Indemnified Parties") from and against, on a net after-tax basis,
and shall pay and reimburse the Assignor Indemnified Parties for, any loss, cost
or other expense that any such Assignor Indemnified Party incurs or suffers
arising out of any claim (a) made at any time after the Effective Date by any
person or entity against Assignor which relates to or arises out of any of the
project permits listed in Schedule I attached hereto or (b) which relates to or
arises out of any representation or warranty of Assignee herein not being true
and correct as and when made, or any agreement of Assignee in this Agreement or
the Plant O&M Agreement not being performed. Assignor shall give prompt written
notice to Assignee of any matter in respect of which indemnity may be sought
pursuant to this Section (provided that a failure to give timely notice shall
not affect rights to indemnification under this Section except to the extent
that Assignee or CED has been damaged by such failure) and shall reasonably
cooperate with Assignee and CED with respect to the resolution of any such
matter.
4
10. BINDING EFFECT:
--------------
This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their heirs, administrators, successors and assigns.
11. GOVERNING LAW:
-------------
This Agreement shall be governed by and construed in accordance
with the laws of the State of California applicable to contracts made and to be
performed wholly within the State and without reference to the choice of law
principles of the State of California or any other state.
[Remainder of page intentionally left blank. Next page is signature page.]
5
IN WITNESS WHEREOF, the undersigned have executed this instrument as
of the date first written above.
"Assignor" FPL ENERGY OPERATING SERVICES, INC.,
a Florida corporation
By: /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
"Assignee" COSO OPERATING COMPANY LLC,
a Delaware limited liability company
By: /s/ Xxxxxxxxxxx XxXxxxxxx
-------------------------------------
Name: Xxxxxxxxxxx XxXxxxxxx
Title: Executive Vice President and
Chief Financial Officer
The undersigned acknowledge the foregoing Agreement and specifically agree
to the provisions of this Agreement applicable to it.
"CED" COSO ENERGY DEVELOPERS,
a California general partnership
By: New CHIP Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By: /s/ Xxxxxxxxxxx XxXxxxxxx
---------------------------------
Name: Xxxxxxxxxxx XxXxxxxxx
Title: Executive Vice President
and Chief Financial Officer
"CTLP" COSO TRANSMISSION LINE PARTNERS,
a California general partnership
By: Coso Energy Developers,
a California general partnership,
Its: General Partner
By: New Chip Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By: /s/ Xxxxxxxxxxx XxXxxxxxx
---------------------------------
Name: Xxxxxxxxxxx XxXxxxxxx
Title: Executive Vice President and
Chief Financial Officer
By: Coso Power Developers,
a California general partnership,
Its: General Partner
By: New CTC Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By: /s/ Xxxxxxxxxxx XxXxxxxxx
---------------------------------
Name: Xxxxxxxxxxx XxXxxxxxx
Title: Executive Vice President and
Chief Financial Officer
Schedule I
to
Assignment, Assumption and Novation Agreement
Project Permits
---------------
The following list identifies those permits and authorizations for which
FPL Energy Operating Services, Inc. was named as or identified as a plant
operator/1/:
1. California Regional Water Quality Board - Lahontan Region.
(i) Order No. 89-018, WDID No. 6B14402001
(ii) Order No. 6-89-58, WDID No. 6B148020013
(iii) Order No. 89-026, WDID No. 6B148020012
(iv) Order No. 89-161, WDID No. 6B148905001
2. California Energy Commission
Small Power Plant Exemption Decision No. 88-SPPE-1C; Order No.
94-0413-04(a); and Order No. 88-0217-2(1)
3. Great Basin Unified Air Pollution Control District
4. Title V (Clean Air Act 42 U.S.C. (S)(S) 7401 et. seq.) permit
--
application originally submitted May 1996.
[Air permits begin on next page.]
_______________________
/1/ In some cases, application has been made, but no permit has yet been
issued in the name of FPL Energy Operating Services, Inc.
NAVY 1 PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
118 235-4
--------------------------------------------------------------
15-8 194-7
--------------------------------------------------------------
15A-8 235
--------------------------------------------------------------
16-8 235-1
--------------------------------------------------------------
16A-8 345
--------------------------------------------------------------
24-8 402
--------------------------------------------------------------
24B-8 445
--------------------------------------------------------------
31-8 194-4
--------------------------------------------------------------
34-9 421
--------------------------------------------------------------
34A-9 728
--------------------------------------------------------------
38-9 685
--------------------------------------------------------------
38A-9 844
--------------------------------------------------------------
38B-9 893
--------------------------------------------------------------
41A-8 326
--------------------------------------------------------------
47-8 349
--------------------------------------------------------------
47A-8 362
--------------------------------------------------------------
52-7 344
--------------------------------------------------------------
52A-7 355
--------------------------------------------------------------
52B-7 656
--------------------------------------------------------------
54-7 353
--------------------------------------------------------------
61-7 356
--------------------------------------------------------------
61A-7 409
--------------------------------------------------------------
61B-7 710
--------------------------------------------------------------
63-7 317
--------------------------------------------------------------
63A-7 318
--------------------------------------------------------------
63B-7 386
--------------------------------------------------------------
66-7 443
--------------------------------------------------------------
66A-7 663
--------------------------------------------------------------
NAVY 1 PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
68-6 779
--------------------------------------------------------------
71-7 194-5
--------------------------------------------------------------
71A-7 194-6
--------------------------------------------------------------
71B-7 309
--------------------------------------------------------------
73-7 314
--------------------------------------------------------------
73A-7 315
--------------------------------------------------------------
75-7 194
--------------------------------------------------------------
75A-7 194-1
--------------------------------------------------------------
75B-7 194-2
--------------------------------------------------------------
76-7 235-2
--------------------------------------------------------------
76A-7 235-3
--------------------------------------------------------------
76B-7 308
--------------------------------------------------------------
77-7 307
--------------------------------------------------------------
78-6 354
--------------------------------------------------------------
78A-6 405
--------------------------------------------------------------
78B-6 674
--------------------------------------------------------------
87-7 340
--------------------------------------------------------------
87A-7 621
--------------------------------------------------------------
Gasoline Facility 689
--------------------------------------------------------------
Units 1, 2 & 3 234, 320, 341
--------------------------------------------------------------
NAVY 2 PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
13-16 368
--------------------------------------------------------------
14-16 645
--------------------------------------------------------------
15-17 363
--------------------------------------------------------------
15A-17 417
--------------------------------------------------------------
22-16 667
--------------------------------------------------------------
23-17 480
--------------------------------------------------------------
23A-17 714
--------------------------------------------------------------
37-17 370
--------------------------------------------------------------
37A-17 415
--------------------------------------------------------------
37B-17 416
--------------------------------------------------------------
51-16 715
--------------------------------------------------------------
51A-16 740
--------------------------------------------------------------
58-18 463
--------------------------------------------------------------
63-18 298
--------------------------------------------------------------
63A-18 413
--------------------------------------------------------------
63B-18 414
--------------------------------------------------------------
64-16 448
--------------------------------------------------------------
64A-16 478
--------------------------------------------------------------
65-18 475
--------------------------------------------------------------
65A-18 479
--------------------------------------------------------------
67-17 364
--------------------------------------------------------------
67B-17 771
--------------------------------------------------------------
67C-17 885
--------------------------------------------------------------
72-18 371
--------------------------------------------------------------
72A-18 400
--------------------------------------------------------------
72B-18 401
--------------------------------------------------------------
72C-18 491
--------------------------------------------------------------
73-18 369
--------------------------------------------------------------
NAVY 2 PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
73A-18 391
--------------------------------------------------------------
76-18 482
--------------------------------------------------------------
76A-18 490
--------------------------------------------------------------
76B-18 682
--------------------------------------------------------------
78-7 359
--------------------------------------------------------------
81-18 476
--------------------------------------------------------------
81A-18 894
--------------------------------------------------------------
83-16 635
--------------------------------------------------------------
83A-16 683
--------------------------------------------------------------
83B-16 690
--------------------------------------------------------------
86-17 665
--------------------------------------------------------------
Xxxxx 0, 0 & 0 000, 000 & 470
--------------------------------------------------------------
BLM PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
16-20 646
--------------------------------------------------------------
16A-20 673
--------------------------------------------------------------
16B-20 697
--------------------------------------------------------------
23-19 375
--------------------------------------------------------------
23A-19 789
--------------------------------------------------------------
24-20 322
--------------------------------------------------------------
24A-20 351
--------------------------------------------------------------
24B-20 378
--------------------------------------------------------------
24C-20 397
--------------------------------------------------------------
32-20 436
--------------------------------------------------------------
32A-20 450
--------------------------------------------------------------
33-19 288
--------------------------------------------------------------
33A-19 696
--------------------------------------------------------------
33B-19 834
--------------------------------------------------------------
34-20 432
--------------------------------------------------------------
34A-20 444
--------------------------------------------------------------
35-20 424
--------------------------------------------------------------
35A-20 423
--------------------------------------------------------------
35B-20 422
--------------------------------------------------------------
43-7 903
--------------------------------------------------------------
46-19 768
--------------------------------------------------------------
46A-19 774
--------------------------------------------------------------
47-20 434
--------------------------------------------------------------
47A-20 451
--------------------------------------------------------------
47B-20 785
--------------------------------------------------------------
52-20 775
--------------------------------------------------------------
58A-18 737
--------------------------------------------------------------
58B-18 895
--------------------------------------------------------------
BLM PROJECT
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
66-6 904
--------------------------------------------------------------
68-20 323
--------------------------------------------------------------
68A-20 404
--------------------------------------------------------------
68B-20 459
--------------------------------------------------------------
72A-19 287
--------------------------------------------------------------
72B-19 372
--------------------------------------------------------------
73-19 289
--------------------------------------------------------------
74-19 431
--------------------------------------------------------------
74A-19 449
--------------------------------------------------------------
74B-19 469
--------------------------------------------------------------
81-19 439
--------------------------------------------------------------
81A-19 461
--------------------------------------------------------------
81B-19 738
--------------------------------------------------------------
88-1 905
--------------------------------------------------------------
88-20 504
--------------------------------------------------------------
Units 7, 8 & 9 379, 380, 457
--------------------------------------------------------------
BLM NORTH
--------------------------------------------------------------
Unit/Well No. ATC/PTO No.
--------------------------------------------------------------
58A-18 737
--------------------------------------------------------------
58B-18 895
--------------------------------------------------------------
43-7 903
--------------------------------------------------------------
66-6 904
--------------------------------------------------------------
88-1 905
--------------------------------------------------------------
43A-7 966
--------------------------------------------------------------
Schedule II
to
Assignment, Assumption and Novation Agreement
Closing Payment
---------------
Time and Benefits:
--------------------------
Xxxxx, Xxx $ 31,993.54 Plant Management
Xxxxxx, Xxxxx 3,447.49 Environmental Services
XxXxxxx 3,355.64 30 hrs transition work planning
coordination of personnel
Xxxxxxxxxxx, Xxxx 12,716.28 Accounting, Business Processes
Xxxxxxxx 912.56 XX
Xxxxxx 2,184.93 Miscellaneous Administrative
Xxxxxx 5,250.87 Payroll & Benefits processing, reporting
Xxxxxx, Xxxxxx 742.71 Cash Mgmt, Bank Recs, Funding,
Bookkeeping
Xxxxxxxx 11,200.00 Human Resources Setup Mar/Apr 160 hrs @ $70
Xxxx 9,000.00 Human Resources Setup Mar/Apr 200 hrs @ $45
OSI Employees 3,500.00 Xxxxx, Freilley, Xxxxxx, Talovich 100 hrs @ $35
Generator
Pre-employment costs:
Vendor: S.A.S.S. 1,760.00
Vendor: RSI 804.00
Vendor: BMS Consulting 3,879.55
Vendor: Xxxxxxxx 3,645.00
------------
Totals 94,392.57
Expenses:
--------------------------
Travel & Meals:
Travel $ 6,669.88
Meals 773.91
Invoice # 1st Qtr 1999 5,927.15 Per Invoice
Xxxxxxx # 0000-00 2,092.51 Per Invoice
------------
Total Travel & Meals 15,463.45
Other Expenses:
Office expenses 9.10
Freight 818.45
Computer equipment -
Computer software 100.17
Telephone 769.51
Cellular telephone 148.65
Outside services: -
Xxxxxx Xxxxxx 2,330.65 Xxxx 0 failure
Xxxxx Xxxxx 272.00 Xxxx 0 failure
Xxxxxx Xxxxxxx 900.00 Unit 1 failure
Xxxx Xxxxxxxx 3,075.00 Xxxx 0 failure
M E Thomaston 6,324.00 Protection and Controls work
Xxxxxx Xxxxx 5,332.00 Protection and Controls work
------------
Total Other Expenses 20,079.53
O&M Fee:
CED 79,655.56 214 days March 1-Oct 1, 1999
CFP 79,655.56 214 days March 1-Oct 1, 1999
CPD 79,655.56 214 days March 1-Oct 1, 1999
------------
238,967.00
Amounts paid $ (10,664.55)
Payroll paid for 10/8 $(254,151.74)
paydate
------------
Total Amount Through $ 104,085.92
October 1, 1999
Estimated Reimbursables
Oct 1 - Oct 17, 1999 560,055.14 From Schedule III
------------
Total Amount
Transferred at Closing: 664,141.07
============
Schedule III
to
Assignment, Assumption and Novation Agreement
All Reimbursable Costs
----------------------
Payroll & Benefits
Estimated Charges Pending:
Accounting 5,695.00 General Bookkeeping Cash
Mgmt etc.
Other West Regional Office 10,500.00 150 hrs @ $70 Production Assurance, Env,
Safety etc.
Xxxxx 8,960.00 112 hrs @ $80 PGM time
Site Payroll 254,151.74 Includes Benefit Actual for 10/8 Paydate
Premiums
Site Payroll 255,000.00 Includes Benefit Estimate for Paydate 10/22
Premiums
-------------
534,306.74
Travel & Meals
HR/IM/Environmental Travel 750.00
Xxxxx 347.57
Xxxxx-Apt 5,167.50 6.5 months @
$795/month
-------------
6,265.07
Bank Charges 500.00
O&M Fee:
CED 6,327.78 17 days October 1, 1999 -
October 17, 1999
CFP 6,327.78 17 days October 1, 1999 -
October 17, 1999
CPD 6,327.78 17 days October 1, 1999 -
October 17, 1999
-------------
18,983.33
560,055.14
=============
Schedule IV
to
Assignment, Assumption and Novation Agreement
Events From Which Potential Liabilities May Arise
-------------------------------------------------
1. The H2S venting event which occurred on April 20, 1999 and was reported to
the Great Basin Air Pollution Control District ("GBAPCD").
2. The H2S venting event which occurred on June 8, 1999 and was reported to
GBAPCD.
3. The H2S venting event which occurred on September 15, 1999 and was reported
to GBAPCD.
4. The release of H2S04 to surface soils and the inside tank contamination which
occurred on August 10, 1999 and was reported to NAS Geothermal Project
Office.
5. All other H2S venting events which occurred during the operation of the
Projects by FPLEOS and were reported to GBAPCD using Release Notification
Forms.
6. Liabilities associated with the repair, operation, or maintenance of the
repaired Navy I Project generator stator.
7. Liabilities associated with the repair, operation, or maintenance of the
modified Fuji turbine rotors.
EXHIBIT A-1
GENERAL RELEASE (FPLEOS - BLM)
FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH ARE
HEREBY ACKNOWLEDGED, the undersigned hereby does release and forever discharge
Coso Operating Company LLC ("COC"), Coso Transmission Line Partners ("CTLP") and
Coso Energy Developers ("CED"), and all of their owners, members, partners,
shareholders, affiliates, directors, officers, employees and agents
(collectively, the "Releasees") from any and all claims, demands, obligations,
liabilities and causes of action of every nature whatsoever with respect to that
certain Operation and Maintenance Agreement for BLM Project (the "Plant O&M
Agreement"), dated as of May 28, 1999, including, without limitation, any
liability to FPL Energy Operating Services, Inc. ("FPLEOS") for any prior
performance, past or future non performance, act or omission under or with
respect to the Plant O&M Agreement, all environmental related liabilities and
Y2K related liabilities with respect to the Facility, the Facility Site (as
defined in the Plant O&M Agreement) or otherwise from the beginning of time
through the end of the world, except for (i) Section 9.2.1 of the Plant O&M
Agreement and (ii) the specific agreements set forth in the Assignment,
Assumption and Novation Agreement, dated as of October __, 1999, by and between
FPLEOS and COC.
As to all claims to be released pursuant to this Release, FPLEOS hereby
expressly waives any right or benefit available to it under the provisions of
Section 1542 of the California Civil Code, which provides:
"A general release does not extend to claims which the creditor does not know
or suspect to exist in his favor at the time of executing the release, which
if known by him must have materially affected his settlement with the debtor."
Additionally, FPLEOS expressly waives any such right or benefit available
under comparable provisions of any other state or federal law.
A-1
IN WITNESS WHEREOF, the undersigned has executed and delivered this Release as
of the __ day of October, 1999.
FPL ENERGY OPERATING SERVICES, INC.,
a Florida corporation
By: ____________________________
Name:
Title:
X-0
XXXXXXX X-0
GENERAL RELEASE (COC, CTLP AND CED - BLM)
FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY OF WHICH ARE
HEREBY ACKNOWLEDGED, the undersigned hereby do release and forever discharge FPL
Energy Operating Services, Inc. ("FPLEOS"), and all of its owners, members,
partners, shareholders, affiliates, directors, officers, employees and agents
(collectively, the "Releasees") from any and all claims, demands, obligations,
liabilities and causes of action of every nature whatsoever with respect to that
certain Operation and Maintenance Agreement for BLM Project (the "Plant O&M
Agreement"), dated as of May 28, 1999, including, without limitation, any
liability to Coso Energy Developers ("CED"), Coso Transmission Line partners
("CTLP") or Coso Operating Company LLC ("COC") for any prior performance, past
or future non performance, act or omission under or with respect to the Plant
O&M Agreement, all environmental related liabilities and Y2K related liabilities
with respect to the Facility, the Facility Site (as defined in the Plant O&M
Agreement) or otherwise from the beginning of time through the end of the world,
except for the specific agreements set forth in the Assignment, Assumption and
Novation Agreement, dated as of October __, 1999, by and between FPLEOS and COC.
As to all claims to be released pursuant to this Release, COC, CTLP and CED
hereby expressly waive any right or benefit available to it under the provisions
of Section 1542 of the California Civil Code, which provides:
"A general release does not extend to claims which the creditor does
not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his
settlement with the debtor."
Additionally, COC, CTLP and CED expressly waive any such right or benefit
available under comparable provisions of any other state or federal law.
A-3
IN WITNESS WHEREOF, the undersigned have executed and delivered this
Release as of the __ day of October, 1999.
COSO OPERATING COMPANY LLC,
a Delaware limited liability company
By:_________________________
Name:
Title:
COSO ENERGY DEVELOPERS,
a California general partnership
By: New CHIP Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By: _________________________
Name:
Title:
COSO TRANSMISSION LINE PARTNERS,
a California general partnership
By: Coso Energy Developers,
a California general partnership,
Its: General Partner
By: New Chip Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By:_________________________
Name:
Title:
A-4
By: Coso Power Developers,
a California general partnership,
Its: General Partner
By: New CTC Company, LLC,
a Delaware limited liability company,
Its: Managing General Partner
By:_________________________
Name:
Title:
A-5
