DRAFT POWER PURCHASE AGREEMENT. For ALLAMUCHY TOWNSHIP ELEMENTARY SCHOOL, JOHNSONBURG ROAD ALLAMUCHY, NJ 07820

Transcription

1 DRAFTPOWERPURCHASEAGREEMENT For ALLAMUCHYTOWNSHIPELEMENTARYSCHOOL, JOHNSONBURGROAD ALLAMUCHY,NJ07820

2 POWERPURCHASEAGREEMENT THIS POWER PURCHASE AGREEMENT (the "PPA") is made this day of, 2011 (the "Effective Date") by and between the Allamuchy Township Board of Education, a Public Entity (the BOE ) and [Successful Proposer], Inc., an Individual [(Corporation) (Limited Liability Company0 organized under the laws of the State (Commonwealth) of ], ("SELLER"). BOE and SELLER are sometimes each referred to herein as a "Party"or,collectively,asthe"Parties". BOE: AllamuchyTownshipBoardofEducation 20JohnsonburgRoad(POBoxB) Allamuchy,N.J SELLER: [SuccessfulProposer] [Address] [Town,NJZipcode] [Phonenumber] [Faxnumber] [ ] PROJECTLOCATION:AllamuchyElementarySchool,20JohnsonburgRoad,Allamuchy,NJ07820 Whereas, BOE solicited proposals to provide electricity to the BOE's facility located at 20 Johnsonburg Road, Allamuchy, New Jersey, from third party solar photovoltaic electricity providers who operate and maintain photovoltaicelectricitygenerationsystems; Whereas,SELLERrespondedtotheRFPandproposedproductionandsaleofsolargeneratedelectricitytoservethe BOE'sfacilitybywayofthisPPA;andthepreviouslycompletedRFP. Now,therefore,theCLIENTandSELLERagreeasfollows: 1.0 DEFINITIONS In addition to the terms that are defined elsewhere in this PPA, the following terms have the following meaningswhenusedherein: 1.1 "Commencement Date" means the date on which SELLER first supplies power to the Interconnection PointsfortheBOEpursuanttothisPPA. 1.2 "Contract Price" means the price of Electricity pursuant to Exhibit B Price Schedule Form of the Respondent'sRFPproposal. 1.3 "Electricity" means intermittent electrical energy, measured in kilowatts and kilowatt hours that (a) is producedbyeachsystem,(b)isdeliveredbysellertoboeatthe 1.4 Interconnection Points and (c) conforms to applicable utility and/or authoritative regulatory body standards. 1.5 "Energy Management System" means BOE s automatic controls system capable of receiving energy productiondatafromthesystems. 1.6 "EnergyServiceProvider"meansaninvestorownedutility,amunicipalutilityorotherelectricityprovider thatserveselectricitycommoditytothefacilitypursuanttoapplicablelawsandregulations. 1.7 "Environmental Law(s)" means each and every applicable federal, state, and local law, statute, ordinance, regulation, rule, judicial or administrative order or decree, permit, license, approval, authorizationorsimilarrequirementofeachandeveryfederal,state,andlocalgovernmentalagencyor

3 other governmental authority pertaining to the protection of human health and safety or the environment. 1.8 "Facility" or"facilities" means the structures or improvements owned by the BOE on 20 Johnsonburg Road, Allamuchy, New Jersey and listed herein that will receive the power generated by the SELLER'S photovoltaicsystem. 1.9 "FiscalYear"meansBOE'sFiscalYear,beginningon 1ofeachcalendaryearandending on ofthatcalendaryear "Force Majeure" or "Force Majeure Event" means an act of God (such as earthquakes, fires, riots), actions or inactions of a regulatory authority, other events beyond the affected party s control that wouldimpactsolarinsolation(ameasureofsolarradiationenergyreceivedonagivensurfaceareaina giventime),includingbutnotlimitedtoduststorms,volcanicactivityorhighwinds,oractionsofothers suchasstrikes,lockouts,orotherindustrialdisturbances,notwithinthecontrolorarisingfromthefault of the party claiming Force Majeure. Any party claiming Force Majeure shall advise the other party as soonaspossibleoftheoccurrenceoftheeventandshallprovidetheotherpartywiththebasisofthe claim, in writing, within ten (10) days of the occurrence of the event. Parties shall make reasonable efforts to avoid the adverse impacts of a Force Majeure Event, and to resolve theevent or occurrence onceithasoccurredinordertoresumeperformance "InterconnectionPoint"meanseachofthedeliverypoint(s)wherearespectiveSystemconnectstothe existingelectricalsystemsservingeachfacility "Hazardous Material" means, without limitation, any substance defined as "hazardous substance"," hazardous waste", "extremely hazardous waste," or material known to cause cancer or reproductive toxicity,underthecomprehensiveenvironmentalresponse,compensationandliabilityactof1980,as amended,42u.s.c.section9601,etseq.;thehazardousmaterialstransportationact,49u.s.c.section 1801, et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1317 et seq.; Sections 25115,25117, , 25140, , ,25281,25316or25501oftheNewJerseyHealth&SafetyCode;andanysubstance regulated pursuant to any Environmental Law(s). The term "Hazardous Material" includes, but is not restricted to, asbestos, polychlorobiphenyls ("PCBs") and petroleum. "Lender" means any person providingdebtortaxequityfinancingforthedesign,development,construction,installation,operation andmaintenanceoftheproject,includinganytrusteeoragentactingontheirbehalf,oralessorundera sale/leasebacktransaction "Lost Savings" means the cost to the BOE of electricity not provided by the System as calculated in Exhibit "Operational Year" means each twelve month period commencing on the Commencement Date. "Project" means the Systems, collectively, including any property interests and related equipment or facilitiesofwhicharerelatedtoboepurchaseofenergy."renewableenergycredits"meansacertificate ofproof,issuedthroughthenewjerseycleanenergyprogram(njcep)oritssuccessorregulatoryor standardsorganization,thatoneunitofelectricitywasgeneratedanddeliveredbyaneligiblerenewable energyresource.forthepurposeofthisagreementarenewableenergycreditincludesallrenewable and environmental attributes associated with the production of electricity from the eligible renewable energyresourceanditsdisplacementoffossilfuelenergyuse,exceptforanyemissionsreductioncredits issued. One Renewable Energy Credit represents the counting rights associated with one (1) kwh of electricity "ReplacementValue"meansthedifferencebetweentheannualaverageotherwiseapplicableelectricity pricesascalculatedperexhibit2andthecontractpriceforelectricity "SELLER"alsoreferredtoasEnergySeller,means,anditspermittedsuccessors and assigns. "PPA" means this agreement between the BOE and SELLER for the purchase and sale of ElectricityfromtheSystems "State"meanstheStateofNewJersey.

4 1.18 "System" or "Systems" means the integrated assembly of photovoltaic panels, mounting assemblies, inverters, converters, meters, lighting fixtures, transformers, ballasts, disconnects combiners, switches, wiringdevicesandwiringforthepurposeofgeneratingelectricityforpurchasebytheboe "BOE" means the Allamuchy Township Board of Education, a body politic of the State of New Jersey. "Tax Benefits" means the right to all items of income, deduction and depreciation arising from ownershipoftheproject,andanytaxcreditsundertheinternalrevenuecodeorapplicablestatelaw(or in either case any successor law), and any Treasury grant or similar program in lieu of tax credits irrespective of whether such items accrue for the benefit of SELLER, any affiliate of SELLER, or any investorofselleroritsaffiliates "Term" means the term of this PPA, which starts on the Commencement Date and end at 11 :59 P.M. EasternTimeofthedayprecedingthefifteenth(15 th )anniversaryofthecommencementdate,subjectto earlierterminationassetforthinherein "Utility"meansthelocalproviderofelectrictransmissionanddistributionservicestotheBOE. 2.0 AGREEMENT: 2.1 SaleofElectricitybySELLER:SELLERwillgenerate,deliverandsellallElectricitytoBOEasBOErequires during the Term, at the price per kilowatt hour as specified in Exhibit 7 Price Schedule Form of the Respondent'sRFPproposal. 2.2 Energy Purchase: BOE will take delivery and purchase from SELLER all Electricity delivered to the InterconnectionPointrequiredbytheClientduringtheTermatthepriceperkilowatthourasspecifiedin therespondent'srfpproposalandonthetermsstatedinthisppaand, 2.3 TitletoandriskoflossofallElectricitywillpassfromtheSELLERtoBOEattheInterconnectionPoint. 3.0 SERVICESPROVIDEDBYSELLER: 3.1 SELLERwillprovidethefollowing: 1. METER:SELLERwillmeasuretheactualamountofElectricitydeliveredtotheBOEbytheSystems at each Interconnection Point utilizing a commercially available, revenue grade interval datarecordingmeter(the"meters")approvedforusebythelocalelectricdistributioncompany.the parties agree that SELLER may use a qualified independent third party certified by the Local Electric Distribution Company for the purpose of metering the Electricity and monitoring performanceofthesystems. 2. The Meters shall be installed and maintained at SELLER's expense and shall have standard industrytelemetrycapabilitiesthatwillprovidetheboewiththeabilitytoincorporatethesystem electricaloutputdataintotheenergyusagedatabase,or,atboe'soption,sellershallmakethe Meterdatareadilyavailableinsecurewebformat.SELLERwillhavetheMeterstestedonceayear atseller'sexpensebyacertified,independent,thirdpartyapprovedbytheboe.boeshallbe allowed to observe testing of the Meters, and SELLER shall provide notice of the testing to the BOEatleastten(10)businessdayspriortothetestdate. 3. SELLERshallprovidesignedcopiesoftheresultsofallMeterteststotheBOE.Inadditionto(he annualtest,sellershalltestthemeteratanyreasonabletimeupontherequestoftheboe.boe shall reimburse SELLER for the cost of any test requested by the BOE, unless such testing demonstratesthatthemeterwasoperatingoutsideofindustrystandardtoleranceallowancesor assuchdefinedbythelocalelectricdistributioncompanyformetercalibrationandoperation. 4. IfaMeterisdeterminedtobeinaccurateandsuchinaccuracyexceedsindustrystandardtolerance allowances,assucharedefinedbythelocalelectricdistributioncompanyforelectricmeters,and ifitisunknownwhenthemeterinaccuracycommenced,thentheinvoicescoveringtheperiodof timesincethelastmetertestshallbeadjustedfortheamountoftheinaccuracy,(i)iftheperiod of inaccuracy can be determined, for the actual period during which inaccurate measurements Were made; or(ii) if the period of inaccuracy cannot be determined, for one half of the period

5 from the date of the last previous Meter test through the date of the adjustments, provided, however,that,inthecaseofclause(ii),theperiodcoveredbythecorrectionshallnotexceedsix months. 5. AdjustmentsthatbenefittheBOEshallbereflectedasacreditonthenextinvoicefollowingthe date of determination of the inaccuracy. Adjustments that benefit SELLER shall be included on SELLER'snextinvoicetotheBOE. 3.2 BillingSystem: 1. SELLERwillbillBOEandBOEwillpaySELLERforElectricityattherateandinthemannersetforth herein. 2. Customer Service: SELLER will provide the following during the Term: SELLER will produce and send bills to BOE or its designee within fifteen (15) business days after the end of each billing cycle. SELLER will post meter reads to a password protected web site and make this web site availabletoboe.billingvalidationandverification:boemayduringthetermconductreasonable occasionalbillinginquiries,validationandverificationactivities,orreconciliationproceduresfora termnotexceeding12monthspriortosuchinquiries,activitiesorprocedures. 3. DuringsuchBOEinquiries,activities,andprocedures,SELLERshallprovideBOEwiththedataand other information, including any billing algorithms and interval Meter data representing System output,usedtogeneratebillingdeterminantsduringsuch12monthsinquiryterm.boewilluseits best efforts to provide or arrange for Utility metered interval data and billing data and information that can support SELLER's billing process, either directly through a data file transmission, receipt through regular mail services, or through the appropriate and established arrangement with the Utility. For purposes of this paragraph, Parties agree that "best efforts" means that the BOE will authorize the applicable Utility to provide metered interval data and billing data and information directly to the SELLER, as per the Utility's rules and applicable regulations. 4.0 FORMULAEFORPRICING: 4.1 ThisAgreementissubjecttoallapplicablelaw,statutes,regulations,localordinancesandallordersand guidelinesissuedbyallgovernmentalentitieswithjurisdictionoverthiswork,includingbutnotlimitedto the Board of Public Utilities. All pricing will be in strict compliance with the Board of Public Utilities establishingamethodologyforcomputingenergycostsavings. 4.2 SELLER shall prepare invoices in accordance with the formulas set forth in Exhibit 3 in the format set forthinexhibit SELLERshallrendertoBOEaninvoiceeachmonthfortheprecedingbillingperiodduringtheTermofthis PPA setting forth the actual amount of kwh delivered ("Actual Production") and the amounts due SELLERforElectricitygeneratedanddeliveredbyeachSystem. 4.4 SELLERshallcommenceinvoicingfortheActualProductionnolaterthantheendofthefirstfullmonth followingthecommencementdate.boewillremitfullpaymentduewitheachinvoicetoseller. 4.5 IntheeventBOEdisputesalloranypartofanybillsubmittedbySELLERunderthisPPA,BOEshallpaythe undisputedportionoftheinvoicewhendueandshallnotifysellerinwritingwithinthree(3)months fromthedateofreceiptofanydisputedinvoiceoradjustedinvoice. 4.6 The Parties shall use their respective best commercial efforts to resolve the dispute amicably and promptly, and upon determination of the correct billing amount, BOE shall promptly pay or be paid/creditedtheremainingportionorrefunddue(ifany).intheeventthatdisputedamountscannotbe resolvedthroughtheprocessofconference,disputesshallbeaddressedthroughtheprocessprovidedin Section"Audit"ofthePPA. 4.7 SELLERshallsubmitinvoicesinduplicatetotheBOEattheaddressassetforthbelow. AllamuchyTownshipBoardofEducation

6 Mr.PeterPearson,InterimBusinessAdministrator/BoardSecretary 20JohnsonburgRoad,P.O.Box20,Allamuchy,NJ07820 Phone: Fax: E mail: ppearson@aes.k12.nj.us 4.8 BOEshallsubmitallpaymentsunderthisPPAtoSELLER'sprojectrepresentativeattheaddresslistedin PPA. Parties agree that if BOE receives notification to change the SELLER'S designated address for purposesofpayment,boewillnotifytheprojectrepresentativeattheaddresslistedatleastsixty(60) dayspriortothefirstsubmittalofpaymenttothenewaddress. 5.0 TERMANDTERMINATION: 5.1 Duration: The Term of this PPA shall commence on the Commencement Date and end at 11 :59 P.M. Eastern Time of the day preceding the fifteenth (15 th ) anniversary of the Commencement Date unless earlierterminatedbyapartypursuanttothetermsofthisppa. 5.2 Upon the expiration of the Term of the PPA, the BOE shall have the ability to exercise the following options: SELLERremovesthePVSystemandreturnstheFacilitytoitsoriginalcondition. SELLERandBOEenterintoanewPPAAgreement. BOEpurchasesthePVInstallationatafairmarketvaluetobedetermined 5.3 BOE Termination Rights: BOE shall have the right to terminate the PPA as follows: BOE may terminate this PPA(a) pursuant to Section"Default By SELLER", below as a result of SELLER's default;(b) thirty (30)daysafterdeliveryofwrittennoticetoSELLERandanyLenderifaForceMajeureEventhasoccurred and SELLER has been unable to produce Electricity for more than 30 consecutive days, provided that beforeboemayterminatethisppa,sellershallbegrantedadditionaltimeaftersuch30dayperiodas reasonablynecessaryduetoreconstruction relateddelaysthatincludebutarenotlimitedtopermitting, acquisition of photovoltaic panels and associated equipment, or rebuilding activities; or (c) should SELLER not meet the Guaranteed Minimum Output. BOE shall have the right to terminate this agreement for no cause upon payment as set forth in the Early Termination Purchase Price Schedule, uponsixty(60)dayswrittennoticetotheseller. 5.4 SELLERTerminationRights:SELLERshallhavetherighttoterminatethisPPAatanytimeonthirty(30) dayswrittennoticetobor,withoutfurtherliability,ifanyofthefollowingoccur: i. If, prior to the Commencement Date, SELLER determines that the Project cannot be built or financed as planned, or that its construction or operation would not be economically viable for the SELLER, including SELLER's determination that the installation of the System is not economicallyviableasaresultoftheneedtocomplywithanyenvironmentallaws.sellerwill be responsible for repairing any damage to the Facilitiy arising from activities conducted by SELLER pursuant to the PPA and shall reimburse BOE for any direct costs associated with reasonablealterationtotheboeareasofconstructionandinstallationofthesystems; ii. iii. iv. SELLER'sinability,afterdiligentefforts,toobtainormaintainrequiredapprovalorpermitsfrom anygovernmentalauthorityfortheinstallationoroperationofthesystems; In the event that, through no fault of SELLER and for other than a Force Majeure Event, the Project is permanently shut down due to renovation, damage, destruction or closure of the Project,andBOEandSELLERcannotagreeuponanalternativelocationfortheSystemorProject asdefinedinsection"permanentshutdownofthesystematfacility"; In the event that the Project is permanently shut down for more than 365 days due to a Force MajeureEvent;or v. PursuanttoSection"DefaultByBOE"belowasaresultofBOE'sdefault.

7 6.0 CALCULATIONOFEXPECTEDPERFORMANCEOUTPUTANDGUARANTEEOFMINIMUMOUTPUTPERFORMANCE: 6.1 SELLERhasestimatedthat[each]SystemwilldelivertheExpectedPerformanceOutputasindicatedin Exhibit Prior to the Commencement Date, SELLER shall disclose the initial insolation level assumed in its calculationoftheexpectedperformanceoutput.duringtheterm,sellershalltracktheinsolationlevel attheprojectandlicensedarea.intheeventthattheinsolationlevelattheprojectandlicensedareais greater than 10% less than the initial insolation level assumed in the calculation of the Expected PerformanceOutputoveraperiodof3years,thentheExpectedPerformanceOutputshallbeadjusted toreflectsuchlong terminsolationreduction. 6.3 SELLER shall be entitled to such adjustment of the Expected Performance Output no more than once every7years.sellerguaranteesanaverageminimumoutputperformancefromeachsystemof90%of the Expected Performance Output from the System over the course of each consecutive three (3) OperationalYearperiodcommencingwiththeCommencementDate. 6.4 If SELLER fails to meet the average Minimum Output Performance requirement over any such consecutivethree(3)operationalyearperiodbasis,forreasonsotherthanboe'sshadingofthesystem, extreme and unforeseen weather conditions, or other Force Majeure Events, SELLER will install additional solar photovoltaic panels at Sellers expense. If SELLER fails to install additional solar panels due to any annual shortfall of the Guaranteed Minimum Output Performance within 60 days after the Parties have mutually agreed as to the amount of BOE's lost savings in writing, BOE shall have the express right to withhold payment, up to the shortfall amount due, from any payments otherwise payabletosellerforelectricityregardlessofanymortgageorassignmentofpaymentsgivenassecurity bysellerundersection"assignmentofsecurity",. 6.5 SELLER and BOE agree that System performance will degrade by an Annual Degradation Factor as indicatedinexhibit1,ofthisppaforeveryyearofoperation.theexpectedperformanceoutputwillbe reduced by the Annual Degradation Factor every Operational Year for the term of this PPA. The degradationfactorwillbeappliedtothekwhenergyvaluesoftheexpectedperformanceoutputatthe beginning of each Operational Year to determine whether or not the SELLER has met the Minimum Output Performance guarantee at the end of the Operational Year. The degradation factor will be applied on a pro rata basis for System operations that do not span an entire Operational Year by multiplyingtheannualdegradationfactortimesthefractionoftheoperationalyear. 7.0 SOLARRENEWABLEENERGYCREDITS(SREC'S) 7.1 SELLERshallbethesoleownerofallSolarRenewableEnergyCreditsassociatedwithallElectricity. 7.2 REBATESANDOTHERINCENTIVES SELLERshallbethesoleowneroftheProjectandanyTaxBenefitderivedfromtheownershipof theproject.anygrant,rebate,incentivepaymentorcreditbytheutility,thefederalgovernment, thestate(includingthenewjerseyenergyresourcesconservationanddevelopmentcommission) or any other agency paid as a result of the design, development, construction, operation and maintenanceoftheprojectshallinuretothebenefitoftheseller.buyerwillcooperateingood faith, at no cost to BOE, as necessary to enable SELLER to obtain all available incentives and rebates,includingassignmenttosellerofanyincentivereceivedbyboe,asconsistentwiththis PPA. 8.0 EMERGENCIES: 8.1 IncasesofemergencyinwhichBOEdeterminesthatthecontinuedoperationofoneormoreSystems presentsanimminentthreatrequiringimmediateactiontopreventormitigatethelossorimpairmentof life,health,safety,propertyoressentialpublicservices,thepartiesagreethatboemaydisconnectthe SystemsfromtheFacilitypriortonotificationofSELLER.IfBOEdisconnectsanySystempursuanttothis provision, BOE will notify SELLER no later than 8 hours after the System is disconnected. The Parties agree that only SELLER or an agent designated by SELLER will be authorized to reconnect the System afterthesystemisdisconnectedbyclientpursuanttothisemergencysection.

8 9.0 COMMUNICATIONSANDCONTACTS 10.0 DEFAULT: 9.1 TherepresentativesofthepartiesduringthetermofthisPPAwillbe: BOECONTACT: AllamuchyTownshipBoardofEducation Mr.PeterPearson,InterimBusinessAdministrator/BoardSecretary 20JohnsonburgRoad(P.O.BoxB) Allamuchy,N.J Phone: EMERGENCYCONTACTPhone: Fax: E mail:ppearson@aes.k12.nj.us SELLERCONTACT: (SELLERCONTACT,TITLE) (ADDRESS) (PHONE) (EMERGENCYCONTACT) (FAX) (E MAIL) FACILITYCONTACT: CharlesZukoskie,SupervisorofBuildings&Grounds 20JohnsonburgRoad,POBoxBAllamuchy,NJ07820 PHONE (EMERGENCYCONTACT) FAX: czukoskie@aes.k12.nj.us Ext.207 WAIVER:AWAIVERBYEITHERPARTYOFANYTERM,COVENANTORCONDITIONOFTHISPPASHALLNOTCONSTITUTEASUBSEQUENT WAIVEROFTHESAMEORANYPERFORMANCETHEREOFBYTHEOTHERPARTY Default by SELLER: At the option of BOE, as the non defaulting party, the occurrence of any of the followingshallconstituteamaterialdefaultandbreachofthisppa: i. SELLER'sfailuretodeliverElectricityfromoneormoreSystem(s)foracontinuousperiodofsixty (60)days,orforanaggregateofninety(90)daysinanysixmonthperiodunlesscausedbyaForce MajeureEvent. ii. The making by SELLER of any general assignment for the benefit of creditors, or the filing of a petition to have SELLER adjudicated a bankrupt, or the filing of a petition for reorganization or arrangement under any law relating to bankruptcy unless in the case of a petition filed against SELLER,thesameisdismissedwithinsixty(60)days;ortheappointmentofatrusteeorreceiver to take possession of substantially all of SELLER's assets located on the Facility or of SELLER's interest in this PPA, when possession is not restored to SELLER within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of SELLER's assets located on thefacilityorofseller'sinterestinthelicense,whensuchseizureisnotdischargedwithinsixty (60)days. iii. FailurebySELLERtoperformorcomplywithanyothermaterialtermofthePPAwithinsixty(60) daysafterwrittennoticetosellerandanylenderbyboe,orsuchlongerperiodnottoexceed 120daysintheaggregateiftheSELLERshallcommencetocuresuchfailurewithinsaidsixty(60)

9 dayperiodandthereafterdiligentlyprosecutessuchcuretocompletionasdeemedreasonableby BOE.BOERemedies:IfanydefaultbySELLERshallcontinueuncured,followingnoticeofdefault whererequiredherein,fortheperiodapplicabletothedefaultalleged,boemayresorttoanyone ormoreofthefollowingremedies: 10.2 Termination:BOEmayterminatethePPAbyprovidingwrittennoticetoSELLERindicatingthatthePPA hasbeenterminated. i. Recovery of Damages and Expenses: BOE may recover from SELLER any damages and expenses reasonably incurred as a result of SELLER's Default, including attorneys' fees and the cost to restorethefacility. ii. Any damages comprising Lost Savings may be paid al SELLER'S option in (i) a single lump sum equal to the net present value of the projected Lost Savings during the remainder of the Term calculatedatanagreedupondiscountrate,or(ii)monthlyinarrearsintheactualamountofthe LostSavingsincurredbyBOEduringeachmonthoftheremainingTerm.Allsuchpaymentsshall bedueandpayablewithinthirty(30)daysofinvoicing,andunpaidamountsshallbearinterestat thelegalrate.undereitheroption(i)or(ii)above,thetotallostsavingsamountshallnotexceed theamountofrevenuegeneratedbytheprojectinanyoneoperationalyear.iii.rightofoffset: BOEmayelecttooffsetanydamagesresultingfromSELLER'sdefaultagainstanymoniesowing ortobeowedtosellerunderthisppa.iftheboeelectsnottoterminatetheppafollowingan Event of Default by SELLER, this election shall not constitute a waiver by BOE as to any subsequenteventofdefaultbyseller Default by BOE: At the option of SELLER, as the non defaulting party, the occurrence of any of the followingshallconstituteamaterialdefaultandbreachofthisppa: i. BOE'sfailuretopayundisputedinvoicesforacontinuousperiodofninety(90)daysafterreceipt ofsuchinvoices. ii. iii. iv. The renovation, damage, destruction or closure of the Facility, for other than a Force Majeure Event,whichresultsinthepermanentshutdownoftheSystemattheFacility,ifBOEandSELLER areunabletoagreeuponanalternativelocationforthesystemasdefinedinsection11.2below. BOE's refusal to sign authorizations reasonably required by SELLER to obtain any rebate or subsidy contemplated in Section 6 above or BOE's refusal to sign or comply with any material term of the approved interconnection agreement required by the Utility for interconnection of thesystem(s). FailurebyBOEtoperformorcomplywithanyothermaterialtermofthePPAortheSolarLicense Agreementwithinsixty(60)daysafterwrittennoticebySELLER,unlessSELLERagreestoalonger period to cure the default. SELLER Remedies: If any default by CLIENT shall continue uncured, followingnoticeofdefaultwhererequiredherein,fortheperiodapplicabletothedefaultalleged, SELLERmayterminatethePPAon60daysnoticebyprovidingwrittennoticetoSELLERindicating thattheppahasbeenterminated FailuretoPerformRequiredActs: If SELLER fails, refuses, or neglects during the Term to take any actions required to be performedbyseller,boeshallhavetheright,butnottheobligation,todothesame,butat thecostofandfortheaccountofsellerunlessboereasonablybelievesthatitsinterests maybeadverselyaffectedbysuchdelay,boeshallinnocasetakesuchactionsoonerthan thirty(30)daysaftergivingsellerwrittennoticeofsuchfailure,refusalorneglect.seller shall pay to BOE on demand any sum expended by BOE under this Section together with interestthereonatthelegalrate.nothingcontainedinthissectionshallimpairtherightsof BOEwithregardtodefaultsorremediesundertheremainingportionofthisPPA FORCEMAJEURE: 11.1 AnypartyclaimingForceMajeurewithrespecttoitsperformancehereundershalladvisetheotherparty assoonaspossibleoftheoccurrenceoftheeventandshallprovidetheotherpartywiththebasisofthe claim,inwriting,withinten(10)daysoftheoccurrenceoftheevent.eachpartyshallmakereasonable

10 effortstoavoidtheadverseimpactsofaforcemajeureandtoresolvetheeventoroccurrenceonceit has occurred in order to resume performance. Waiver and Release/Limitation of Liability: Each of the Parties agrees and acknowledges that any liabilities arising as a result of a breach of this PPA shall be limitedtogeneraldamagesonly,andneitherpartyshallbeliableunderanycircumstancesforanylossof orinjurytoorinterferencewiththeotherparty'sbusinessincluding,withoutlimitation,lossofprofitsor consequentialdamages,howeveroccurring,exceptasstatedotherwiseherein TEMPORARYSYSTEMSHUTDOWN: 12.1 BOE will make a good faith effort to give as much notice as possible to SELLER prior to any System shutdownsorinterruptions PERMANENTSYSTEMSHUTDOWN: 13.1 If, through no fault of SELLER and for reasons other than Force Majeure,[one or more] System[s] are permanentlyshutdownduetorenovation,damage,destructionorclosureofthefacility,orifboeelects torelocate[oneormore]system(s),sellershallbeentitledtonoticeofshutdown.withinthirty(30) days after permanent shutdown of a System, BOE shall provide written notice to SELLER indicating whetherornottheboeintendstorestoreoperationof[anyof]thefacility(s),orwhetherrelocation(s) ofthesystemwillbepursued COMPLIANCEWITHAPPLICABLELAWS,INCLUDINGUTILITYINTERCONNECTIONSTANDARDS 15.0 TAXES: 14.1 SELLER,atitsowncostandexpense,shallcomplywithallApplicableLawsrelatingtotheoperationof the System and the generation and sale of Electricity to BOE, including obtaining and maintaining all relevantapprovalsandpermits.inparticular,seller,throughoutthetermoftheppa,willfullycomply with any and all operational standards and requirements imposed by the Utility, and comply with the electricalinterconnectionrequirementsasstatedintheapplicableandcontrollingutilitytariff.boewill cooperate with SELLER and, if necessary, will provide consents and execute with the Utility such agreements (if such agreements do not have unacceptable or prohibited terms and/or conditions, or impose additional costs on BOE) as are necessary to permit the interconnection of the System. This electricalinterconnectionshallbedoneatnocostorliabilitytoboe,andsellershallreimburseboefor all out of pocket costs incurred in connection with any interconnection agreement. Should the Utility demandfeesorequipmentexceeding$25,000forelectricalinterconnectionrequirements,sellermay atitssolediscretionceasetoproceedwithinstallationtothesystemwithoutfurtherobligationtoboe otherthanobligationswhichwereincurredpriortonoticefromtheutilityofthefeesortheequipment costsandtheobligationtorestorethefacilitytopre installationconditionifinstallationwasinitiated SELLER is responsible for local, state and federal income taxes attributable to SELLER for income received under this PPA. BOE is responsible and shall pay to SELLER any state and local taxes, such as regulatoryfeesand/orfranchisefees,thatsellermayberequiredtocollectinconnectionwiththesale ofelectricitytoboe.bothpartiesshallusereasonableeffortstoadministerthisppaandimplementits provisionssoastominimizetaxesandothergovernmentalcharges.intheeventanysaleofelectricity hereunderistobeexemptedfromornotsubjecttooneormoretaxesorothergovernmentalcharges, the applicable Party shall, promptly upon the other Party's request therefore, provide the applicable Party with all necessary documentation to evidence such exemption or exclusion. SELLER shall pay all taxes,assessmentsorchargesthatatanytimemaybelawfullylevieduponitsinterestinthefacility,the System,orthisPPA ASSIGNMENT 16.1 ExceptasotherwiseprovidedinthisSection,thedutiesandobligationsofSELLERunderthisPPAshall notbeassignedordelegatedbythesellerinwholeorinpartwithoutthewrittenconsentofboeand upon such reasonable terms and conditions that the BOE may require. The BOE's consent to one assignmentshallnotbedeemedconsenttoanysubsequentassignment.notwithstandingtheforegoing, SELLER shall have the right to assign this PPA to (i) to a Lender which assumes SELLER's obligations

11 hereunder,or(ii)toanotherlimitedliabilitycompanyofwhichselleristhemanagingmember.eventof Default:IntheeventofdefaultbyanyassigneeofSELLERoranysuccessortoSELLERintheperformance of the terms hereof, BOE may proceed directly against SELLER without the necessity of exhausting remedies against such assignee. Unique Expertise: Notwithstanding the foregoing, SELLER acknowledges that BOE is relying upon the unique expertise and capability of SELLER. SELLER must demonstrate that any proposed assignee has both the financial capacity and the technical ability to perform the obligations required under the PPA at a level deemed appropriate by BOE. Definition of Assignment: For purposes of this section, the sale, assignment, transfer or disposition, directly or indirectly,ofanytypewhichresultsinachangeofcontrolofsellershallbedeemedanassignmentof this PPA. Change of control shall be as defined in common law, and may be the result of a single or multiplerelatedtransactionswhichresultinthecumulativetransferofmorethanfiftypercent(50%)of thevotingstockorequityinterestsofseller However,innoeventshallanyofthefollowingtransactionsbeconsideredanassignmentneedingBOE's approval:(i)toalenderwhichassumesseller'sobligationshereunder,or(ii)toanotherlimitedliability companyofwhichselleristhemanagingmember,or(iii)inanopenmarkettransactionsaleofshares ofapubliclyheldcompany,or(iv)toataxequityinvestorinatransactioninvolvingsuchaparty,or(v)to a lessor in a sale/leaseback transaction, or(vi) a transfer of an interest in an entity owning a direct or indirectinterestinsellerwheretheinterestinsellerconstituteslessthantwentypercent(20%)ofthe assets of such entity. SELLER shall have a continuing duty to provide BOE with written notice of any materialchangeintheseller'sbusinessstructureand/orfinancialstatus.consenttoassignment:boe shallconsenttotheassignmentbysellertothelenderofseller'sright,titleandinterestinandto this PPA, provided that, in the reasonable opinion of the BOE, the proposed assignee is reasonably capableoffulfillingseller'sfinancialandsystemmanagementobligationshereunder AssignmentforSecurity:NothinginthisSectionshall(i)prohibitSELLERfromassigningorgrantingalien on SELLER's rights to payments under this PPA for purposes of collateral security or (ii), except as permitted under Section "Definition of Assignment" above or with BOE's consent in accordance with Section "Consent to Assignment" above, allow SELLER to assign its duties and obligations under this PPA FINANCING: 17.1 Non Subordination:BOEwillnotsubordinateitsinterestintheFacilityassecurityforanySELLERloansor financing.however,andnotwithstandingtheprovisionsofsection"securityinterestsinsystem"below, SELLERmaypledgeitsinterestinthePPA,includinganyrightstopaymentandtheSystem,assecurity for loans or financing. If SELLER's Lender(s) requests additional terms and conditions to those already providedinthisppa,boewillconsideranysuchrequests,butmayrefusesuchrequestsinitssoleand absolute discretion and may withhold consent or approval of such additional terms and conditions. Security Interests in System: BOE acknowledges that SELLER will be financing the acquisition and installationoftheprojectwithfinancingaccommodationsfromoneormorelendersandthatseller's obligationswillbesecuredby,amongothercollateral,apledgeorcollateralassignmentofthisppaand SELLER'srightstopaymentandafirstsecurityrightintheProject.Inordertofacilitatesuchfinancing, and with respect to any such Lenders of which SELLER has notified BOE in writing, BOE agrees as follows: 17.2 ClassificationofSystemsasPersonalProperty:BOEacknowledgesthatithasbeenadvisedthatpartof the collateral securing financial accommodations of SELLER is the granting of a first priority security interest ("Security Interest") in the Systems to Lender to be perfected by a filing under the Uniform Commercial Code("UCC"). BOE consents to such filings so long as they reflect the Parties' agreement thatanyfilingtoperfectorprovidenoticeofthesecurityinterestclearlydocumenttheparties'intent that the Systems are considered personal property only and is not considered a fixture to the Facility. These filings by SELLER or Lender may include filing of a Financing Statement which clearly covers the System(s)aspersonalpropertyonlyandnotasfixtures. i. Suchfilingshallnotcreateanyinterestinorlienupontherealproperty underlyinganyfacilityoranyfacilityortheinterestoftheboetherein

12 18.0 AMENDMENT: 19.0 AUDIT: andshallexpresslydisclaimthecreationofsuchaninterestoralien. ii. BOEwillusecommerciallyreasonable.effortstoplaceitssuccessorsand assigns on notice of the ownership of the Systems by SELLER and/or Lender, the existence of the security interest, and the fact that the System is not part of the Facility or a fixture thereof, as necessary and appropriatetoavoidconfusionoradverseclaims. iii. BOE is not aware of any existing lease, mortgage, security interest or other interest in or lien upon the Facility that could attach to the SystemsasaninterestadversetoLender'ssecurityinteresttherein NoamendmentorvariationofthetermsofthisPPAshallbevalidunlessmadeinwriting,signedbythe parties and approved as required. No oral understanding or agreement not incorporated in this PPA is bindingoneitherparty BOE, or its designated representative, shall have the right to review and to copy any records and supportingdocumentationpertainingtotheperformanceofthisppa.sellerwillmaintainsuchrecords forpossibleauditforaminimumofthree(3)yearsafterfinalpaymentunderthisppa,unlessalonger periodofrecordsretentionisstipulated.sellerwillallowtheauditor(s)accesstosuchrecordsduring normal business hours after reasonable notice and to allow interviews of any employees who might reasonably have information related to such records. Further, SELLER will include a similar right of the BOEtoauditrecordsandinterviewstaffinanysubcontractrelatedtoperformanceofthisPPA INDEPENDENTCONTRACTOR: 20.1 SELLER, and its agents and employees, shall act in an independent capacity and not as officers or employeesoragentsoftheboeintheperformanceofthisppa TIMELINESS: 21.1 TimeisoftheessenceinthisPPA GOVERNINGLAW 22.1 This contract is governed by and shall be interpreted in accordance with the laws of the State of New JerseyandanyactionbroughttoenforceanyrightsorobligationsinthisPPAshallbefiledintheSuperior CourtofNewJersey,BOEvicinage UNENFORCEABLEPROVISION: 23.1 IntheeventthatanyprovisionofthisPPAisunenforceableorheldtobeunenforceable,thentheparties agreethatallotherprovisionsofthisppahaveforceandeffectandshallnotbeaffectedthereby.

13 24.0 COUNTERPARTS 24.1 ThisPPAmaybeexecutedinmultiplecopies,eachofwhichshallbedeemedanoriginal,butallofwhich shallconstituteoneagreementaftereachpartyhassignedsuchacounterpart. INWITNESSWHEREOFandinconfirmationoftheirconsenttothetermsandconditionscontainedinthisPPA and intending to be legally bound hereby, CLIENT and SELLER have executed this PPA as of the Effective Date so statedonpageone. ATTEST: By: Name: Title: By: Name: Title: ATTEST: ALLAMUCHY TOWNSHIP BOARD OF EDUCATION By: Name: Title: By: Name: Title: S:\BM\Allamuchy Board of Education\Solar Farm Project\ POWER PURCHASE AGREEMENT.doc

14 EXHIBIT1 EXPECTEDPERFORMANCEOUTPUTFORTHEFIRSTANDSUBSEQUENTOPERATIONALYEARS: FortheFirstOperationalYeartheExpectedPerformanceOutputforthecombinedlocationsisassetforthin theschedulebelow. Annual Degradation Factor: 0.5% per Operational Year. For Subsequent Years the Expected Performance Output shall be revised every year on the anniversary of the Commencement Date by the annual degradationfactor. TheGuaranteedMinimumOutputPerformanceshallbecalculatedas90%oftheExpectedPerformanceper Section"CalculationofExpectedPerformanceOutputandGuaranteeofMinimumOutputPerformance"of thisppaandastabulatedbelow. System(s)TotalDesignOutput(kW)dc MinimumGuaranteedOutput PPARate%discount% PPATerm(Years)15 TOTAL ExpectedPerformanceOutput kwh ProposalLocation:AllamuchyElementarySchool(onJohnsonburgRoad) Contract Year MinimumOutput (kwh) Contract Year MinimumOutput (kwh) Contract Year MinimumOutput (kwh) Year1 Year6 Year11 Year2 Year7 Year12 Year3 Year8 Year13 Year4 Year9 Year14 Year5 Year10 Year15 AnnualDegradationFactor:0.5%perOperationalYear

15 EXHIBIT2 CALCULATIONOFLOSTSAVINGS: LS=(GMOPE AE)xRV Where, LS=LostSavingsandFurtherWhere: GMOPE = Guaranteed Minimum Output Performance as measured in total annual kwh for as tabulatedabove. AE=AnnualElectricityasmeasuredintotalannualkWhdeliveredbytheSystemtotheFacility RV=ReplacementValue(AEP ACP) Where, AEP = Annual average otherwise applicable electricity price in $/kwh. This price is determined by dividing the total cost for delivered electricity paid to the Energy Service Provider during the previous12monthperiodbythetotalannualpowerdeliveredbytheenergyserviceprovider ACP=thecontractpricefortheprevious12monthperiodin$/kWh. IfRViszeroorless,thennoLossSavingspaymentisduetothefacility.

16 EXHIBIT3 BILLINGFORMULASANDEXAMPLES SELLERshallprovideinvoicesasindicatedinthisExhibitandshallindicatethesourceandcalculationofeach variablesetforthbelowinamannersothattheboecanreadilyconfirmtheaccuracyandappropriateness ofeachinvoice.anexampleofamonthlyinvoiceisattachedasexhibit4tothisppa. The total invoice for Electricity delivered by SELLER for the month in question shall be determined as follows: P=ExACP Where: P=MonthlypaymentmadetoSELLERforelectricitydeliveredduringthebillingperiod. E=Electricitydelivered,asshownonmeter,duringthebillingperiodACPisthecontractpricefor themonthlybillingperiodin$/kwhassetforthinthisagreement. FacilityName: FacilityContactPerson: FacilityAddress: Account#: Meter#: StartDate: Mo/Day/Year: EndDate: Mo/Day/Year: ContractPrice:$/kWh:

17 StartMeterReadEndMeterRead TotalCostofSolarPowerDelivered:$ NetduetoSELLER TotalkWh EXHIBIT4 SAMPLESOLARINVOICE

18 EXHIBIT5 ACCOUNTINFORMATIONANDUSAGE [Shallbeincludedattimeofcontractexecution] EndofPowerPurchaseAgreement.

19 EXHIBIT6 LOCATIONPLAN [LocationplansshallbeconfirmedbytheProposer]

20 Exhibit7 PriceScheduleForm oftherespondent'srfpproposal.