MASTER CONSTRUCTION MANAGEMENT AGREEMENT
AMONG
CALPINE CONSTRUCTION MANAGEMENT COMPANY, INC.
CALPINE GENERATING COMPANY
AND
CERTAIN FACILITY OWNERS
DATED AS OF MARCH 23, 2004
TABLE OF CONTENTS
Page
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ARTICLE 1. DEFINITIONS; GENERAL REFERENCES...................................... 1
1.1 Definitions......................................................... 1
1.2 General Terms....................................................... 1
ARTICLE 2. EXHIBITS............................................................. 2
2.1 Exhibits............................................................ 2
2.2 Conflicting Provisions.............................................. 2
ARTICLE 3. APPOINTMENT; SERVICES GENERALLY...................................... 2
3.1 Appointment......................................................... 2
3.2 Services............................................................ 3
3.3 Personnel........................................................... 5
3.4 Authority of Construction Manager................................... 5
3.5 Right to Request Instruction....................................... 5
3.6 Cooperation and Consultation....................................... 6
3.7 Construction Manager Representative................................. 6
3.8 Limitations on Authority............................................ 6
ARTICLE 4. OWNER'S RESPONSIBILITIES............................................. 6
4.1 General............................................................. 6
4.2 Construction Financing.............................................. 6
4.3 Owner Representative................................................ 6
4.4 Site Surveys; Access................................................ 7
4.5 Permits, Easements,etc.............................................. 7
4.6 Professional Services............................................... 7
4.7 Prompt Provision.................................................... 7
4.8 Hazardous Substances................................................ 7
4.9 Taxes............................................................... 7
ARTICLE 5. CONSTRUCTION MANAGER'S COMPENSATION.................................. 7
5.1 Generally........................................................... 7
5.2 Budget.............................................................. 8
5.3 Payment............................................................. 8
5.4 Interest............................................................ 8
5.5 Accounting and Auditing............................................. 8
5.6 No Fees............................................................. 9
ARTICLE 6. INDEMNIFICATION AND LIMITATIONS ON LIABILITY......................... 9
6.1 Indemnification By Construction Manager............................. 9
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6.2 Indemnification by Facility Owner................................... 9
6.3 Environmental Indemnity............................................. 9
6.4 Limitation of Liability............................................. 9
6.5 Limitations on Recourse............................................. 10
6.6 No Warranties or Guarantees......................................... 10
ARTICLE 7. TERM AND TERMINATION................................................. 10
7.1 Term ............................................................... 10
7.2 Termination......................................................... 10
7.3 Termination for Convenience......................................... 11
7.4 Rights Upon Termination............................................. 12
7.5 Termination Payment................................................. 12
7.6 Suspension.......................................................... 12
ARTICLE 8. FORCE MAJEURE....................................................... 13
8.1 Excuse for Force Majeure............................................ 13
8.2 Legal Changes....................................................... 13
ARTICLE 9. INSURANCE........................................................... 13
9.1 Owner's Insurance................................................... 13
9.2 Construction Manager's Insurance.................................... 13
9.3 Evidence of Insurance............................................... 14
9.4 Endorsements........................................................ 14
9.5 Coverage under Owner's Policies..................................... 14
ARTICLE 10. MISCELLANEOUS....................................................... 14
10.1 Assignment.......................................................... 14
10.2 Governing Law;Forum................................................. 14
10.3 Entire Agreement.................................................... 14
10.4 Survival............................................................ 15
10.5 Waivers............................................................. 15
10.6 Notices............................................................. 15
10.7 Partial Invalidity.................................................. 15
10.8 Not for Benefit of Third Parties.................................... 16
10.9 Headings............................................................ 16
10.10 Counterparts........................................................ 16
APPENDIX A Definitions
APPENDIX B Facility Descriptions
EXHIBIT A Services Description
EXHIBIT B Construction Management Budget
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MASTER CONSTRUCTION MANAGEMENT AGREEMENT
THIS MASTER CONSTRUCTION MANAGEMENT AGREEMENT (the "Agreement"),
dated as of March 23, 2004 (the "Effective Date"), is entered into by and among
CALPINE GENERATING COMPANY, LLC, a Delaware limited liability company ("CGC"),
each of the wholly-owned subsidiaries of CGC listed on the signature page hereof
(each a "Facility Owner"), and CALPINE CONSTRUCTION MANAGEMENT COMPANY, INC., a
Delaware corporation ("Construction Manager").
RECITALS
A. Each of Facility Owners owns and is presently constructing gas-fired,
combined-cycle electric generation facilities described on Appendix B attached
hereto (each a "Facility").
B. The Facility Owners are indirect, wholly-owned subsidiaries of CGC.