DESIGN - BUILD CONTRACT PHOTOVOLTAIC SYSTEMS BETWEEN MOUNT DIABLO UNIFIED SCHOOL DISTRICT AND SUN POWER CORPORATION, SYSTEMS October 26, 2010 TABLE OF CONTENTS Page(s) RECITALS ................................................................................................................................ 1 PART I – AGREEMENT ........................................................................................................... 3 PART II – TERMS AND CONDITIONS TO CONTRACT ....................................................... 7 1. Notice to Proceed ................................................................................................ 7 2. Site Examination ................................................................................................. 7 3. Equipment and Labor .......................................................................................... 7 4. Subcontractors..................................................................................................... 7 5. Termination......................................................................................................... 7 6. Safety and Security.............................................................................................. 8 7. Change in Scope of Work.................................................................................... 8 8. Trench Shoring.................................................................................................. 11 9. Excavations Over Four Feet............................................................................... 11 10. Lead-Based Paint............................................................................................... 11 11. Workers............................................................................................................. 11 12. Correction of Errors........................................................................................... 11 13. Substitutions...................................................................................................... 11 14. Designer/Builder Supervision............................................................................ 11 15. Clean Up ........................................................................................................... 11 16. Access to Work ................................................................................................. 11 17. Protection of Work and Property ....................................................................... 11 18. Other Contracts/Contractors .............................................................................. 12 19. Assignment of Contract..................................................................................... 12 20. Schedule............................................................................................................ 13 21. Completion........................................................................................................ 13 22. Force Majeure Clause........................................................................................ 14 23. Indemnification/Hold Harmless Clause.............................................................. 14 24. Payment ............................................................................................................ 15 25. Permits, Approvals, and Licenses ...................................................................... 15 26. Independent Contractor Status........................................................................... 16 27. Anti-Discrimination........................................................................................... 16 28. Payment Bond and Performance Bond............................................................... 16 29. Designer/Builder's Insurance ............................................................................. 16 30. Warranty/Quality............................................................................................... 17 31. Confidentiality .................................................................................................. 17 32. Conflict of Interest............................................................................................. 17 33. Compliance with Laws ...................................................................................... 17 34. District's Right to Audit..................................................................................... 17 35. Disputes ............................................................................................................ 18 36. Labor Code Requirements ................................................................................. 18 Design Build Contract – Photovoltaic Systems – Mt. Diablo and SunPower Page i 229719.5 FINAL 10-22-10 37. Counterparts...................................................................................................... 18 38. Governing Law.................................................................................................. 18 39. Provisions Required by Law Deemed Inserted................................................... 18 40. Binding Contract ............................................................................................... 18 41. District Waiver.................................................................................................. 18 42. Invalid Term...................................................................................................... 19 43. Entire Contract .................................................................................................. 19 44. Ownership of Certain Proprietary Property Rights............................................. 19 45. Ownership of Any Existing Equipment.............................................................. 19 46. Utility Work...................................................................................................... 19 47. Energy Credits................................................................................................... 19 48. Responsibilities of the District........................................................................... 20 49. Limitations of Liability...................................................................................... 20 50. Output Guarantee .............................................................................................. 20 PREVAILING WAGE CERTIFICATION ............................................................................... 22 WORKERS' COMPENSATION CERTIFICATION ................................................................ 22 CRIMINAL BACKGROUND INVESTIGATION CERTIFICATION ..................................... 23 DRUG-FREE WORKPLACE/TOBACCO-FREE ENVIRONMENT CERTIFICATION ......... 24 ASBESTOS & OTHER HAZARDOUS MATERIALS CERTIFICATION .............................. 25 LEAD-PRODUCT(S) CERTIFICATION................................................................................. 26 PERFORMANCE BOND......................................................................................................... 27 PAYMENT BOND .................................................................................................................. 29 FINGERPRINTING/CRIMINAL BACKGROUND INVESTIGATION CERTIFICATION .... 31 EXHIBIT A – SCOPE OF WORK ........................................................................................... 32 EXHIBIT A-1 – SYSTEM DESCRIPTIONS AND INCREMENTS......................................... 44 EXHIBIT B – OPERATIONS & MAINTENANCE AGREEMENT ........................................ 45 EXHIBIT C – PROJECT SCHEDULE..................................................................................... 54 EXHIBIT D – CONTRACT PRICE BREAKDOWN AND SCHEDULE OF VALUES ........... 55 EXHIBIT E – DISTRICT'S RULES AND REGULATIONS.................................................... 56 EXHIBIT F – PROPOSED SYSTEM LOCATIONS................................................................ 60 Design Build Contract – Photovoltaic Systems – Mt. Diablo and SunPower Page ii 229719.5 FINAL 10-22-10 EXHIBIT G – OUTPUT GUARANTEE PARAMETERS AND ENERGY OUTPUT DATA 112 EXHIBIT H – WARRANTIES............................................................................................... 116 EXHIBIT I – EDUCATION PROGRAM ............................................................................... 125 EXHIBIT J – REQUEST FOR PROPOSAL SUBMISSION................................................... 126 EXHIBIT K-1 – CHANGE ORDERS PRIOR TO COMMENCEMENT DATE..................... 127 EXHIBIT K-2 – CHANGE ORDERS AFTER COMMENCEMENT DATE .......................... 128 EXHIBIT L – DEFINITIONS ................................................................................................ 129 Design Build Contract – Photovoltaic Systems – Mt. Diablo and SunPower Page iii 229719.5 FINAL 10-22-10 DESIGN BUILD CONTRACT – PHOTOVOLTAIC SYSTEMS Mount Diablo Unified School District - SunPower (Government Code § 4217.10 et seq.) THIS CONTRACT is entered into and effective , 2010 (this "Contract"), by and between SunPower Corporation, Systems ("Designer/Builder" or "SunPower") and Mount Diablo Unified School District ("District" or "Customer") (each, a "Party" and collectively, the "Parties"). RECITALS A. District owns and operates certain public facilities specifically described as: SITE NAME ADDRESS 1) Administration Buildings: 1936 Carlotta Drive, Concord, CA 94519 2) Ayers Elementary School: