Resolution No. 97061
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RESOLUTION NO. 9706
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND RATIFYING THE EXECUTION OF A
MUTUAL CONFIDENTIALITY AND NON -CIRCUMVENTION
AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
MARATHON CAPITAL, LLC
WHEREAS, the City of Vernon (the "City") owns and operates
its own electric system which services the City's constituents; and
WHEREAS, the City is in the process of developing projects
relating to the development of renewable resources such as wind and
solar energy projects (the "Projects"); and
WHEREAS, the City desires to preserve and protect its rights
by entering into a confidentiality agreement with Marathon Capital,
LLC ("Marathon") in a manner that preserves the confidentiality and
protected status of the documents, materials, and information to be
exchanged, retained and used; and
WHEREAS, to facilitate discussions relating to the Projects,
the City Administrator executed a Mutual Confidentiality and Non -
Circumvention Agreement on or about August 5, 2008 (the "Agreement")
with Marathon, subject to ratification by the City Council; and
WHEREAS, the City Council of the City of Vernon desires to
approve and ratify the actions of the City Administrator in executing
the Agreement on or about August 5, 2008; and
WHEREAS, the City Council of the City of Vernon has
determined that, pursuant to the provisions of subsection (a) of
Section 2.27 of the Vernon City Code, it is in the public interest and
necessity to enter into the Agreement with Marathon.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
SECTION l: The City Council of the City of Vernon hereby
finds"and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves and ratifies the Agreement with Marathon, a copy of which is
attached hereto as Exhibit A and incorporated by reference, and the
City Administrator's execution of the Agreement on or about August 5,
2008.
SECTION 3: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 8th day of September, 2008.
Name: Leonis'C. Ma burg
Title: Mayor / 4a�or--Are— fft-
ATTEST•
MANUELA GIRON, City Clerk
- 2 -
1 STATE OF CALIFORNIA
2 ) ss
COUNTY OF LOS ANGELES )
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4 I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
5 certify that the foregoing Resolution, being Resolution No. 9706, was
6 duly adopted by the City Council of the City of Vernon at a regular
7 meeting of the City Council duly held on Monday, September 8, 2008, and
8 thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of
9 Vernon.
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12 11 MANUELA RON City Clerk
13 (SEAL)
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EXHIBIT A
1
MUTUAL CONFIDENTIALITY and NON -CIRCUMVENTION AGREEMENT
This CONFIDENTIALITY AGREEMENT (the "Agreement") is by and between
Marathon Capital, LLC (hereinafter, the "Recipient") and the undersigned (hereinafter, the
"Disclosing Party"). Recognizing that Recipient also may disclose Confidential Information to
Disclosing Party in the course of a transaction or relationship, the parties agree that each and
every obligation of Recipient and each and every right of Disclosing Party hereunder shall apply
as and to the same effect as though "Recipient" and "Disclosing Party" were substituted for each
other.
WHEREAS, Recipient has requested information from Disclosing Party in
connection with consideration of a possible transaction or relationship between Recipient and
Disclosing Party.
WHEREAS, in the course of consideration of the possible transaction or
relationship, Disclosing Party may disclose to Recipient confidential, important, and/or
proprietary trade secret information concerning Disclosing Party and its activities.
WHEREAS; the Recipient recognizes the information and the interest the
Disclosing Party has in protecting its right to pursue the opportunity without competing with, or
being circumvented by Recipient.
THEREFORE, the parties agree to enter into a confidential relationship with
respect to the disclosure by Disclosing Party to Recipient of certain information.
l . Definitions. For purposes of this Agreement, "Confidential Information"
shall include all information or material that has or could have commercial value or other utility
in the business or prospective business of Disclosing Party. Confidential Information also
includes all information of which unauthorized disclosure could be detrimental to the interests of
Di closing Party whether or not such information is identified as Confidential Information by
Disclosing Party, For purposes of this Agreement, the term "Recipient" shall include Recipient
and all affiliates, subsidiaries, and related companies of Recipient. For purposes of this
Agreement, the term "Representative" shall include Recipient's directors, officers, employees,
ag nts, and financial, legal, and other advisors.
2. Exclusions. Notwithstanding anything contained in paragraph 1 hereof,
Confidential Information does not include information that Recipient can demonstrate: (a) was in
Recipient's possession prior to its being furnished to Recipient under the terms of this Agreement,
provided the source of that information was not known by Recipient to be bound by a
confidentiality agreement with or other continual, legal or fiduciary obligation of confidentiality
to Disclosing Party; (b) is now, or hereafter becomes, through no act or failure to act on the part
of Recipient, generally known to the public or to firms in the same industry; (c) is rightfully
obtained by Recipient from a third party, without breach of any obligation to Disclosing Party; or
(d) is independently developed by Recipient without use of or reference to the Confidential
Information.
3. Confidentiality. Recipient and its Representatives shall not disclose any
of the Confidential Information in any manner whatsoever, except as provided in paragraphs 4
and 5 of this Agreement, and shall hold and maintain the Confidential Information in strictest
confidence.
Marathon Capital — Confidentiality (2008)
4. Permitted Disclosures. Recipient may disclose Disclosing Party's
Confidential Information to Recipient's Representatives with a bona fide need to know such
Confidential Information, but only to the extent necessary to evaluate or carry out a proposed
transaction or relationship with Disclosing Party and only if such Representatives are advised of
the confidential nature of such Confidential Information and the terms of this Agreement and are
bound by a written agreement or by a legally enforceable code of professional responsibility to
protect the confidentiality of such Confidential Information.
5. Required Disclosures. Recipient may disclose Disclosing Party's
Confidential pursuant to any governmental, judicial or administrative order, subpoena or
discovery request or request or inquiry of a regulatory or self -regulatory body having
jurisdiction over either of the parties hereto provided .that to the extent legally permitted
Recipient provides Disclosing Party a reasonable opportunity to review the disclosure before it is
made and to interpose (at its own cost and expense) itsown objection to the disclosure.
Notwithstanding anything herein to the contrary, Recipient may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of the possible transaction.
However, any information relating to the tax treatment or tax structure shall remain subject to the
confidentiality' provisions hereof (and the foregoing sentence shall not apply) to the extent
reasonably necessary to enable any person to comply with applicable securities laws. For this
purpose, "tax treatment" means U.S. federal income tax treatment, and "tax structure" is limited
to any facts relevant to the U.S. federal treatment of the possible transaction.
6. Use. Recipient and its Representatives shall use the Confidential
Information solely for the purpose of evaluating a possible transaction or relationship with
Disclosing Party and shall not in any way use the Confidential Information to the detriment of
Disclosing Party. Nothing in this Agreement shall be construed as granting any rights to
Recipient, by license or otherwise, to any of Disclosing Party's Confidential Information.
7. Return of Documents. If Recipient does not proceed with the possible
transaction with Disclosing Party, Recipient shall notify Disclosing Party of that decision and
shall, at that time or at any time upon the request of Disclosing Party for any reason, return to
Disclosing Party any and all records, notes, and other written, printed or other tangible materials
in its possession pertaining to the Confidential Information immediately on the written request of
Disclosing Party; provided, that Recipient may retain (a) one physical copy of such materials
solely for archival, legal, compliance or regulatory purposes and (b) electronic copies in
accordance with Recipient's customary electronic record retention and retrieval practices. The
returning of materials shall not relieve Recipient from compliance with other terms and
conditions of this Agreement.
8. No Additional Agreements. Neither the holding of discussions nor the
exchange of material or information shall be construed as an obligation of Disclosing Party to
enter into any other agreement with Recipient or prohibit Disclosing Party from providing the
same or similar information to other parties and entering into agreements with other parties.
Disclosing Party reserves the right, in its sole discretion, to reject any and all proposals made by
Recipient or its Representatives with regard to a transaction between Recipient and Disclosing
Party and to terminate discussions and negotiations with Recipient at any time. Additional
agreements of the parties, if any, shall be in writing signed by Disclosing Party and Recipient.
9. Irreparable Harm. Recipient understands and acknowledges that any
disclosure or misappropriation of any of the Confidential Information in violation of this
Agreement may cause Disclosing Party irreparable harm, the amount of which may be difficult to
Marathon Capital — Confidentiality (2008) 2
ascertain, and therefore agrees that Disclosing Party shall have the right to apply to a court of
competent jurisdiction for specific performance and/or an order restraining and enjoining any
such further disclosure or breach and for such other relief as Disclosing Party shall deem
appropriate. Such right of Disclosing Party is to be in addition to the remedies otherwise
available to Disclosing Party at law or in equity.
10. Survival. This Agreement shall continue in full force and effect for a
period of two years from the date hereof.
11. Successors and Assigns. This Agreement and each party's obligations
hereunder shall be binding on the representatives, assigns, and successors of such party and shall
inure to the benefit of the assigns and successors of such party; provided, however, that the rights
and obligations of Recipient hereunder are not assignable.
12. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.
13. Counterparts and Right. This Agreement may be executed by facsimile
and in counterparts, which together shall constitute one agreement. The person signing on behalf
of Recipient represents that he or she has the right and power to execute this Agreement.
14. Entire Agreement. This Agreement expresses the full and complete
understanding of the parties with respect to the subject matter hereof and supersedes all prior or
contemporaneous proposals, agreements, representations and understandings, whether written or
oral, with respect to the subject matter. This Agreement is not; however, to limit any rights that
Disclosing Party may have under trade secret, copyright, patent or other laws that may be
available to Disclosing Party. This Agreement may not be amended or modified except in writing
signed by each of the parties to the Agreement. This Agreement shall be construed as to its fair
meaning and not strictly for or against either party. The headings hereof are descriptive only and
not to be construed in interpreting the provisions hereof.
Date:�✓r d ( , 2008
Marath Capital LLC ("Recipient")
By:
Title:
("Disclosing Party ")
in
Title: C "I y Ad4X.Mt,S�2�� l(,
ATTEST
), . I I I
By: U&w� A.�.
Manuela Giron, City Clerk
Marathon Capital — Confidentiality (2008)
MUTUAL CONFIDENTIALITY and NON -CIRCUMVENTION AGREEMENT
This CONFIDENTIALITY AGREEMENT (the "Agreement") is by and between
Marathon Capital, . LLC (hereinafter, the "Recipient") and the undersigned (hereinafter, the
"Disclosing Party"). Recognizing that Recipient also may disclose Confidential Information to
Disclosing Party in the course of a transaction or relationship, the parties agree that each and
every obligation of Recipient and each and every right of Disclosing Party hereunder shall apply
as and to the same effect as though "Recipient" and "Disclosing Party" were substituted for each
other.
WHEREAS, Recipient has requested information from Disclosing Party in
connection with consideration of a possible transaction or relationship between Recipient and
Disclosing Party.
WHEREAS, in the course of consideration of the possible transaction or
relationship, Disclosing Party may disclose to Recipient confidential, important, and/or
proprietary trade secret information concerning Disclosing Party and its activities.
WHEREAS, the Recipient recognizes the information and the interest the
Disclosing Party has in protecting its right to pursue the opportunity without competing with, or
being circumvented by Recipient.
THEREFORE, the parties agree to enter into a confidential relationship with
respect to the disclosure by Disclosing Party to Recipient of certain information.
1. Definitions. For purposes of this Agreement, "Confidential Information"
shall include all information or material that has or could have commercial value or other utility
in the business or prospective business of Disclosing Party. Confidential Information also
includes all information of which unauthorized disclosure could be detrimental to the interests of
Disclosing Party whether or not such information is identified as Confidential Information by
Disclosing Party.. For purposes of this Agreement,. the term "Recipient" shall include Recipient
and all affiliates, subsidiaries, and related companies of Recipient. For purposes of this
Agreement, the term "Representative" shall include Recipient's directors, officers, employees,
agents, and financial, legal, and other advisors.
2. Exclusions. Notwithstanding anything contained in paragraph 1 hereof,
Confidential Information does not include information that Recipient can demonstrate: (a) was in
Recipient's possession prior to its being furnished to Recipient under the terms of this Agreement,
provided the source of that information was not known by Recipient to be bound by a
confidentiality agreement with or other continual, legal or fiduciary obligation of confidentiality
to Disclosing Party; (b) is now, or hereafter becomes, through no act or failure to act on the part
of Recipient, generally known to the public or to firms in the same industry; (c) is rightfully
obtained by Recipient from a third party, without breach of any obligation to Disclosing Party; or
(d) is independently developed by Recipient without use of or reference to the Confidential
Information.
3. Confidentiality. Recipient and its Representatives shall not disclose any
of the Confidential Information in any manner whatsoever, except as provided in paragraphs 4
and 5 of this Agreement, and shall hold and maintain the Confidential Information in strictest
confidence.
Marathon Capital— Confidentiality (2008)
4. Permitted Disclosures. Recipient may disclose Disclosing Party's
Confidential Information to Recipient's Representatives with a bona fide need to know such
Confidential Information, but only to the extent necessary to evaluate or carry out a proposed
transaction or relationship with Disclosing Party and only if such Representatives are advised of
the confidential nature of such Confidential Information and the terms of this Agreement and are
bound by a written agreement or by a legally enforceable code of professional responsibility to
protect the confidentiality of such Confidential Information.
5. Required Disclosures. Recipient may disclose Disclosing Party's
Confidential pursuant to any governmental, judicial or administrative order, subpoena or
discovery request or request or inquiry of a regulatory or self -regulatory body having
jurisdiction over either of the parties hereto provided that to the extent legally permitted
Recipient provides Disclosing Party a reasonable opportunity to review the disclosure before it is
made and to interpose (at its own cost and expense) its own objection to the disclosure.
Notwithstanding anything herein to the contrary, Recipient may disclose to any and all persons,
without limitation of any kind, the tax treatment and tax structure of the possible transaction.
However, any information relating to the tax treatment or tax structure shall remain subject to the
confidentiality provisions hereof (and the foregoing sentence shall not apply) to the extent
reasonably necessary to enable any person to comply with applicable securities laws. For this
purpose, "tax treatment" means U.S. federal income tax treatment, and "tax structure" is limited
to any facts relevant to the U.S. federal treatment of the possible transaction.
6. Use. Recipient and its Representatives shall use the Confidential
Information solely for the purpose of evaluating a possible transaction or relationship with
Disclosing Party and shall not in any way use the Confidential Information to the detriment of
Disclosing Party. Nothing in this Agreement shall be construed as granting any rights to
Recipient, by license or otherwise, to any of Disclosing Party's Confidential Information.
7. Return of Documents. If Recipient does not proceed with the possible
transaction with Disclosing Party, Recipient shall notify Disclosing Party of that decision and
shall, at that time or at any time upon the request of Disclosing Party for any reason, return to
Disclosing Party any and all records, notes, and other written, printed or other tangible materials
in its possession pertaining to the Confidential Information immediately on the written request of
Disclosing Party; provided, that Recipient may retain (a) one physical copy of such materials
solely for archival, legal, compliance or regulatory purposes and (b) electronic copies in
accordance with Recipient's customary electronic record retention and retrieval practices. The
returning of materials shall not relieve Recipient from compliance with other terms and
conditions of this Agreement.
8. No Additional Agreements. Neither the holding of discussions nor the
exchange of material or information shall be construed as an obligation of Disclosing Party to
enter into any other agreement with Recipient or prohibit Disclosing Party from providing the
same or similar information to other parties and entering into agreements with other parties.
Disclosing Party reserves the right, in its sole discretion, to reject any and all proposals made by
Recipient or its Representatives with regard to a transaction between Recipient and Disclosing
Party and to terminate discussions and negotiations with Recipient at any time. Additional
agreements of the parties, if any, shall be in writing signed by Disclosing Party and Recipient.
9. Irreparable Harm. Recipient understands and acknowledges that any
disclosure or misappropriation of any of the Confidential Information in violation of this
Agreement may cause Disclosing Party irreparable harm, the amount of which may be difficult to
Marathon Capital — Confidentiality (2008) 2
ascertain, and therefore agrees that Disclosing Party shall have the right to apply to a court of
competent jurisdiction for specific, performance and/or an order restraining and enjoining any
such further disclosure or breach and for such other relief as Disclosing Party shall deem
appropriate. Such right of Disclosing Party is to be in addition to the remedies otherwise
available to Disclosing Parry at law or in equity.
10. Survival. This Agreement shall continue in full force and effect for a
period of two years from the date hereof.
11. Successors and Assigns. This Agreement and each party's obligations
hereunder shall be binding on the representatives, assigns, and successors of such party and shall
inure to the benefit of the assigns and successors of such party; provided, however, that the rights
and obligations of Recipient hereunder are not assignable.
12. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Illinois.
13. Counterparts and Right. This Agreement may be executed by facsimile
and in counterparts, which together shall constitute one agreement. The person signing on behalf y
of Recipient represents that he or she has the right and power to execute this Agreement.
14. Entire Agreement. This Agreement expresses the full and complete
understanding of the parties with respect to the subject matter hereof and supersedes all prior or
contemporaneous proposals, agreements, representations and understandings, whether written or
oral, with respect to the subject matter. This Agreement is not; however, to. limit any rights that
Disclosing Party may have under trade secret, copyright, patent or other laws that may be
available to Disclosing Party. This Agreement may not be amended or modified except in writing
signed by each of the parties to the Agreement. This Agreement shall be construed as to its fair
meaning and not strictly for or against either party. The headings hereof are descriptive only and
not to be construed in interpreting the provisions hereof.
Date:s 2008
Title:, /��� no)"
LLC ("Recipient")
("Disclosing Party ")
By.
Title:
ATTEST
By:
Manuela Giron, City Clerk
Marathon Capital Confidentiality (2008) 3