AGREEMENT FOR PROVISION OF FIRE ANDEMERGENCY PROTECTION SERVICES THIS AGREEMENT FOR PROVISION OF FIRE PROTECTION AND EMERGENCY L SERVICES ("Agreement") dated as of No",~lqg,--- 2010 (the "Effective Date"), by < and between SAN DIEGO RURAL FIRE PROTECTION DISTRICT, a legal agency formed by the Board of Supervisors of the County of San Diego under the Fire Protection Law of 1961 (the "District"), and TULE WIND, LLC (the "Applicant") (sometimes referred to individually as a "Party" and collectively as "the Parties"). RECITALS WHEREAS, the Applicant leases certain real property located within the unincorporated area of County of San Diego and within the District's jurisdiction (the "Property"), as more particularly described on the attached Exhibit "A" incorporated herein by reference; and WHEREAS, the Applicant has applied to the County of San Diego (the "County") to construct the Tule Wind Project on the Property (the "Project"), as more fully described on the attached Exhibit "B" incorporated herein by reference; and WHEREAS, as a condition of the County's approval of the Project, the Applicant is required to procure fire and emergency protection services for the Project; and WHEREAS, the Applicant desires to contract with the District for fire and emergency protection services for the Project; and WHEREAS, the District desires to provide fire and emergency protection services for the Project as agreed herein. NOW, THEREFORE, in consideration of the foregoing, the Parties hereby agree as follows: 1. The Project The description of the Project site IS contained m Exhibit "B" attached hereto and incorporated by this reference. 2. Scope of Services Provided that the Applicant timely complies with each of its obligations under this Agreement, the District agrees to provide fire and emergency protection services to the Project, as more fully set forth in the Scope of Services attached hereto as Exhibit "C" and incorporated by this reference (the "Services"). The District will issue a will-serve letter to the Applicant for the Project upon receipt of all of the following: (a) the Applicant's signature on this Agreement; (b) confirmation that the Deposit (as defined below) has been delivered to the Escrow Depository (as defined below); (c) documentation that establishes legal access to the Property as provided in 1 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SANDIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC Section 7, below; and (d) a Fire Protection Plan approved by the District, attached hereto as Exhibit “D” and incorporated herein by this reference, that incorporates the changes to the Applicant’s Fire Protection Plan, dated October 2010, as set forth in the District’s letter to the County, dated October 18, 2010. 3. Term This Agreement shall be effective upon the Effective Date. The initial term of this Agreement shall begin upon Commencement of Construction (as defined below) of the Project and be in effect for a period of ten (10) years thereafter (the “Initial Term”). The Applicant shall give notice to the District at least thirty (30) calendar days prior to the Commencement of Construction pursuant to items (a), (b), or (c) of this paragraph. “Commencement of Construction” shall be the first to occur of: (a) any ground disturbance of any portion of the Property in connection with the Project, except for geotechnical investigation or other environmental analysis required as part of the permitting process; (b) delivery of any materials to any portion of the Property in connection with the Project; (c) delivery of any equipment, including but not limited to a construction trailer, but excluding meteorological tower(s), to the Property in connection with the Project; or (d) notice by the District to the Applicant that the District is aware that any of items (a), (b), or (c) of this paragraph have occurred. The notice by the Applicant to the District pursuant to items (a), (b), or (c), above, or the notice by the District to the Applicant pursuant to item (d), above, shall each be referred to as the “Construction Notice”. The Construction Notice shall set forth the number of wind turbines approved in the Approvals (defined in Section 5, below) for the Project. This Agreement shall be automatically renewed following the Initial Term for consecutive five (5)-year periods (each referred to as a “Renewal Term”) for the life of the Project. The Applicant may terminate this Agreement by providing the District sixty (60) calendar days prior written notice if: (aa) the Applicant fails to obtain the Approvals described more fully in Section 5, below on or prior to June 30, 2016; or, (bb) Project operations on the Property entirely cease subsequent to issuance of the Approvals and the Applicant removes all Project improvements from the Property. 4. Annual Compensation A “Fiscal Year” means the period starting on July 1 and ending on the following June 30. For the Fiscal Year 2010-2011, the Applicant shall pay to the District $996.44 per acre (or any portion of an acre) multiplied by the whole number of acres (or any portion of an acre) occupied (the “Base Rate”) for the Services. The Base Rate shall increase by three percent (3%) each Fiscal Year thereafter (i.e., the rate in effect for the prior Fiscal Year multiplied by 1.03 to obtain the following Fiscal Year’s rate). The Applicant anticipates obtaining Approvals to construct and operate 103 wind turbines on the Property, however, the actual number of turbines approved may be more or less. The Parties agree that each wind turbine will be located on one acre (or a portion thereof). If the Approvals allow the Project to be developed with 103 wind turbines to be constructed on the Property, and Commencement of Construction occurs in Fiscal Year 2010- 2011, the Applicant shall pay to the District for Fiscal Year 2010-2011 the amount of $102,633.32, prorated for the number of days for the period beginning with the date of 2 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC Commencement of Construction and ending on June 30, 2011. If the Approvals allow fewer than 103 wind turbines to be constructed on the Property, or greater than 103 wind turbines to be constructed on the Property, then the Parties shall make an adjustment of annual compensation based on the number of wind turbines allowed by the Approvals to be constructed on the Property. The Applicant hereby agrees to pay to the District for the Services, in advance, for each Fiscal Year, an amount equal to the Base Rate, increased by 3% for each Fiscal Year thereafter. Payment shall be as follows. Concurrently with execution of this Agreement, the Applicant shall: (a) execute irrevocable escrow instructions substantially in the form attached hereto as Exhibit “E”, incorporated by this reference (the “Irrevocable Escrow Instructions”); (b) deliver the signed Irrevocable Escrow Instructions to the Escrow Depository defined therein, with a copy to the District; and (c) deposit with the Escrow Depository the amount of $102,633.32 (the “Deposit”). The Applicant acknowledges and agrees that the Escrow Depository shall release the Deposit to the District without further action by the Applicant upon the delivery of the Construction Notice to the Escrow Depository by either the Applicant or the District. If, on June 30, 2013, this Agreement remains in effect and the Construction Notice has not yet been delivered to the Escrow Depository, then the Applicant shall make an additional deposit (the “Additional Deposit”) to the Escrow Depository equal to $16,346.83, which is the difference between the Deposit increased by three percent (3%) per Fiscal Year from Fiscal Year 2011-12 through 2015-2016 ($118,980.15), less the Deposit ($102,633.32). The Applicant acknowledges and agrees that the Escrow Depository shall release the Additional Deposit to the District without further action by the Applicant upon the delivery of the Construction Notice to the Escrow Depository by either the Applicant or the District. Upon the release of the Deposit to the District, and Additional Deposit, if applicable, the District shall: (aa) calculate the number of days remaining in the current Fiscal Year by determining the days from and including the date of the Construction Notice to and including the next following June 30 (the “Remainder”); (bb) determine the Base Rate for the Services applicable to the Fiscal Year in which the Remainder is calculated (the “Rate”); (cc) multiply the applicable Base Rate times a fraction, the numerator of which is the Remainder, and the denominator of which is 365, which is equal to the proportionate amount of the Base Rate due for the portion of the Fiscal Year in which Commencement of Construction begins (the “Stub Year Amount”); (dd) subtract the Stub Year Amount from the Deposit to calculate the amount of the Deposit remaining (the “Following Year Amount”) to be applied to the next following Fiscal Year (the “Following Year”); (ee) calculate the Base rate applicable to the next following Fiscal Year (the “New Rate”); (ff) subtract the Following Year Amount from the New Rate to obtain the “Amount Due For the Following Year”. The District shall calculate all of the above and give notice thereof to the Applicant. The Applicant shall pay, on or before July 1 of the Following Year the Amount Due for the Following Year. Thereafter, on or before July 1 of each year the Applicant shall pay to the District the amount equal to the Base Rate increased by 3% per Fiscal Year. 3 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC 5. Approvals The Parties agree that the Applicant may terminate this Agreement if the Applicant is unable to obtain all governmental licenses, permits, and/or approvals required of or deemed necessary or appropriate by the Applicant or the County in order to begin Commencement of Construction of the Project, including without limitation applications for zoning variances, zoning ordinances, amendments, special use permits, and construction permits (collectively, the “Approvals”) on or before June 30, 2016. The Applicant acknowledges and agrees that the District has no duty or obligation to obtain any such Approvals on behalf of the Applicant 6. Indemnification The Applicant shall indemnify, defend (with Counsel acceptable to District in its good faith judgment) and hold the District harmless from and against any and all injury, loss, claims of whatsoever character, nature, and kind, including without limitation the Applicant’s negligence or willful misconduct whether directly or indirectly arising from or connected with an act or omission of the Applicant or any agents of the Applicant or other persons acting by or on behalf of Applicant, damages, liabilities, costs, and expenses (including reasonable attorney’s fees and court costs) arising from or related to or claimed to be caused by the installation, use, maintenance, repair, removal, and/or any other work or service for or in connection with the Project, except to the extent attributable to the bad faith or gross negligence of the District, its employees, agents, or the District’s independent contractors. The Applicant’s obligations under this Agreement shall be effective upon the Effective Date, regardless of whether any or all approvals and/or actions of the County regarding the Project remain valid or are invalidated by any court. The Applicant’s obligations to indemnify, defend, and hold the District harmless shall survive the termination of this Agreement, but shall be limited to events that occurred during the term of this Agreement. 7. Access At all times during the term of this Agreement, the Applicant shall ensure that the District will have twenty-four (24) hours per day, seven (7) days per week, pedestrian and vehicular access to, over, around, and across the Property for purposes of providing the Services as provided by this Agreement. As a condition of this Agreement, prior to the Effective Date of this Agreement, the Applicant shall demonstrate to the satisfaction of the District that the District, its employees, agents, volunteers, representatives, contractors, successors and assigns, and all other local, state, and federal fire-fighting and/or emergency response agencies and their respective employees, agents, volunteers, representatives, contractors, successors and assigns, will have legal access to the Property that will allow fire and emergency personnel and apparatus entry onto the Property for the purpose of providing the Services during the term of this Agreement. The Parties acknowledge that this Agreement is not intended to expand, limit, or modify in any way the District’s independent rights as a governmental agency to access the Property for purposes of providing the Services described in this Agreement. 4 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC 8. Site Maintenance The Applicant agrees to keep and maintain the Property in good condition and clear of hazardous substances (other than hazardous substances used or useful in the construction, operation, or maintenance of the Project in accordance with applicable law) at all times so as to avoid and prevent the creation and/or maintenance of fire or emergency hazards. 9. Assignment The Applicant may assign this Agreement if the Applicant is transferring all or substantially all of the Project to the assignee; provided, however, to be valid, (a) any such assignment shall be in writing substantially in the form of Exhibit “F” (“Form of Assignment of Agreement For Provision of Fire and Emergency Protection Services”) (the “Assignment”) attached hereto and incorporated by this reference; (b) the Assignment provides for the Applicant’s assignment of all of its obligations under this Agreement to the assignee and the assignee assumes all of such obligations; (c) the Applicant is not released of its obligations to the District under this Agreement that existed prior to the date of the Assignment but is otherwise released; (d) the Assignment contains the name, address, telephone number, facsimile number, and contact person for the assignee; and (e) the District has provided the Applicant and the assignee with written acknowledgement of receipt of the Assignment signed on behalf of the Applicant and the assignee. Any attempted assignment in violation of the foregoing provision shall be void and a material default by the Applicant of this Agreement. 10. Project Site Safety Unless otherwise provided by the Scope of Services in this Agreement, the District, its employees, agents and independent contractors are not responsible for any condition of the Property or Project site conditions during the term of this Agreement. The Parties acknowledge and agree that the Applicant has responsibility for all conditions of the Property and all Project site conditions, including safety of all persons and property. 11. Breach Failure to abide by any terms of this Agreement shall constitute a breach of this Agreement. The Party asserting a breach must notify the other Party in writing pursuant to Section 20 below. Each Party shall have the right but not the obligation or duty to cure any breach by the other Party of the terms of this Agreement. An “Event of Default” shall exist if: (a) the breach can be cured solely by the payment of money and the breach is not cured within five (5) business days after the notifying Party delivers notice (a “Breach Notice”) thereof to the breaching Party; (b) the breach concerns the District’s access to the Property, is within the Applicant’s control, and the breach is not cured within five (5) business days after the notifying Party delivers a Breach Notice thereof to the breaching Party; (c) the breach concerns the District’s access to the Property, is not within the Applicant’s control, and the breach is not cured within thirty (30) days after the notifying Party delivers a Breach Notice thereof to the breaching Party (nothing in this agreement is intended to limit the District’s authority to access the Property); or (d) the breach cannot be cured solely by the payment of money and does not 5 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC concern the District’s access to the Property and the breach is not cured within thirty (30) days after the notifying Party delivers a Breach Notice thereof to the breaching Party. If an Event of Default occurs, the notifying Party shall be entitled to any and all remedies available at law. Should the notifying Party unilaterally elect to cure any such breach by the breaching Party, the breaching Party shall promptly reimburse the notifying Party for all costs and expenses incurred by the notifying Party to effectuate such cure. 12. Jurisdiction and Venue The venue for any suit or proceeding concerning this Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. 13. Successors in Interest This Agreement and all rights and obligations created by this Agreement shall remain in full force and effect whether or not any Parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on such Party’s successor in interest. 14. Integration This Agreement and the Exhibits and references incorporated into this Agreement fully express all understandings of the Parties concerning the matters covered in this Agreement. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless made in the form of a written change agreed to in writing by both Parties or by a written amendment to this Agreement agreed to by both Parties. All prior negotiations and agreements are merged into this Agreement. The Parties acknowledge and agree that the Recitals set forth above are true and correct and are hereby incorporated by reference. 15. No Third Party Beneficiaries The Parties hereto agree that there shall be no third-party beneficiaries to this Agreement. This Agreement is not intended to and shall not confer any rights or remedies hereunder upon any other party other than the Parties to this Agreement and their respective successors in interest. 16. Counterparts This Agreement may be executed in counterparts, which when taken together shall constitute a single signed original as though all Parties had executed the same page. The Parties agree that a signed copy of this Agreement transmitted by one Party to the other Party by facsimile transmission or electronic mail as a PDF, shall be binding upon the sending Party to the same extent as if it had delivered a signed original of this Agreement. 6 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC 17. No Waiver No failure of any Party to require strict performance by the other Party of any covenant, term or condition of this Agreement, nor any failure of any Party to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement, shall constitute a waiver of any such breach of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect regardless of any existing or subsequent breach. A waiver of any such breach shall not be interpreted to mean that any Party has waived its right to demand in the future the full and complete performance by the other Party of its duties and obligations under this Agreement. 18. Signing Authority The representative for each Party signing on behalf of a corporation, partnership, joint venture, or governmental entity hereby declares that authority has been obtained to sign on behalf of the corporation, partnership, joint venture, or governmental entity and agrees to indemnify and hold the other Party hereto harmless if it is later determined that such authority does not exist. 19. Attorneys’ Fees In the event any action or proceeding is initiated to challenge, invalidate, enforce, or interpret any of the terms of this Agreement, the prevailing party shall be entitled to all attorneys’ fees and litigation fees, costs, and expenses in addition to any other relief granted by law. For purposes of this Agreement, “prevailing party” means the party who substantially receives the remedy or award it requested. 20. Notices All letters, statements, or notices required pursuant to this Agreement shall be deemed effective upon receipt when personally served, transmitted by facsimile machine or electronic mail, or sent certified mail, return receipt requested, to the following addresses: To: District San Diego Rural Fire Protection District Attn: Fire Chief David Nissen 14024 Peaceful Valley Ranch Road Jamul, CA 91935 Telephone No. (619) 669-1188 Facsimile No. (858) 362-8448 With a copy to: Cynthia L. Eldred, Esq. Law Office of Cynthia L. Eldred 2481 Congress Street San Diego, CA 92110 Telephone No. (619) 233-7366 Facsimile No. (619) 233-7390 7 AGREEMENT FOR PROVISION OF FIRE AND EMERGENCY PROTECTION SERVICES SAN DIEGO RURAL FIRE PROTECTION DISTRICT & TULE WIND, LLC To: Applicant Tule Wind, LLC Attn: Ravy Raviv or Trevor Mihalik 1125 NW Couch Street, Suite 700 Portland, OR 97209 Telephone No. (503) 796-7000 Facsimile No. (503) 796-6906 With a copy to; Latham & Watkins LLP Attn: Christopher W. Garrett, Esq. 600 W. Broadway, Suite 1800 San Diego, CA 92101 Telephone No. (619) 236-1234 Facsimile No. (619) 696-7419 Any such notice or demand shall be deemed served at the time of deliver)' if delivered in person, by facsimile transmission, or electronic mail, or on the business day following deposit thereof in the U,S. Mail where sent by registered or certified mail. "Applicant" "District" Tule Wind, LLC San Diego Rural Fire Protection District B"y;£).-\-A7:-v' ,..-- A J By:n \~aYiv David Nissen Authorized Repre\sentative Fire MarshallFire Chief fJ '~tA-\. By: ~W"klnson Authorized Representative 8 AGREEMENT FORPROVISIONOFFIREANDEMERGENCY PROTECTION SERVICES SANDIEGORURALFIRE PROTECfION DISTRICT &TULEWIND,LLC