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Resolution No. 2012-074RESOLUTION NO. 2012-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND RATIFYING THE EXECUTION OF A CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND POWERDYNE VERNON, LLC WHEREAS, the City of Vernon (uCityff) is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, the City is in the process of developing projects relating to potential transactions pertaining to energy generation opportunities; and WHEREAS, Powerdyne Vernon, LLC ("Powerdyne") has formed a joint venture with LA Fiber for the construction of an energy producing facility within the City (the "Project"); and WHEREAS, the City desires to preserve and protect its rights by entering into a confidentiality agreement with Powerdyne 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 Project, the Director of Light & Power executed a Confidentiality and Nondisclosure Agreement on or about May 3, 2012 (the "Agreement") with Powerdyne, 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 Director of Light & Power in executing the Agreement on or about May 3, 2012; 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 Powerdyne. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: 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 Powerdyne Vernon, LLC, and executed by the Director of Light & Power, a copy of which is attached hereto as Exhibit A. SECTION 3: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15 th day of May, 2012. Name: William J. Davis Title: / Mayor Pro-Tem - 2 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES I, Willard G. Yamaguchi, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2012-74, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, May 15, 2012, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this >/ day of may, 2012, at Vernon, California. 111) I (SEAL) - 3 - EXHIBIT A CONFIDENTIALITY AND NONDISCLOSURE AGREEMENT May This Confidentiality and Nondisclosure Agreement (this "Agreement") is made as of ApW 3 , —, 2012 by and between the CITY OF VERNON, a California charter city and municipal corporation ("Vernon' or the "City"), and POWERDYNE VERNON, LLC, a Delaware limited liability company ("Powerdyge Vernon"). Vernon and Powerdyne Vernon may be referred to herein individually as a "P@11y" and collectively as "Parties." RECITALS A. The Parties intend to discuss certain transactions pertaining to certain renewable (SCPPA RFI category 2) energy generation opportunities (the "Potential Transaction'), and the Parties will disclose certain information which is confidential, proprietary or otherwise not generally available to the public in connection with such opportunities. B. Each Party (the "Disclosing Party') is prepared to furnish to the other Party (the "Receiving Party') certain information which is confidential, proprietary or otherwise not generally available to the public in connection with the Potential Transaction, provided that the Parties enter into this Agreement and agree to abide by the terms hereof. NOW THEREFORE, for and in consideration of the premises and the agreements herein contained, the sufficiency of which is hereby acknowledged, the Parties do hereby agree. as follows: 1. Nondisclosure of Confidential Information. Each Receiving Party agrees that it will keep the Confidential Information (as defined in Section 3) confidential and will not use the Confidential Information for any purpose other than in connection with the Potential Transaction. The Confidential Information may be disclosed to all affiliates, directors, officers, employees, agents, attorneys, lenders, auditors, partners and consultants of the Receiving Party and such Representatives (collectively, "Representatives ?), but only if such Representatives need to know the Confidential Information in connection with the Potential Transaction. The Receiving Party agrees that (i) such Representatives will be informed by the Receiving Party of the confidential nature of the Confidential Information and the requirement that it not be used other than in connection with the Potential Transaction, (ii) such Representatives will be directed to be bound by the terms of this Agreement as a condition of receiving the Confidential Information, and (iii) in any event, the Receiving Party will be responsible for any disclosure of Confidential Information, or any other breach of this Agreement, by any of its Representatives. The Receiving Party shall not disclose the Confidential Information to any person other than as permitted hereby, and shall safeguard the Confidential Information, including the content, substance or any effect thereof which would disclose such content or substance of such information, from unauthorized disclosure using the same degree of care as it takes to preserve its own confidential information, provided in any event no less than a reasonable degree of care. For purposes hereof, "person" will be interpreted broadly to include, without limitation, public and private media including, without limitation, the internet, and any corporation, company, group, governmental department or agency, trust, association, limited liability company, partnership, other entity or individual. 1 2. Required Disclosures. a. If the Receiving Party or its Representatives are required by a legal or administrative process, including but not limited to applicable law, statute (including the California Public Records Act) or governmental rule, regulation, order, oral question, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process, or by any regulatory authority having jurisdiction over Receiving Party or any of its Representatives in connection with the exercise of such authority or claimed authority to disclose any Confidential Information, the Receiving Party shall promptly notify the Disclosing Party of such requirement (if such notification can be made without violating the terms of such compelled disclosure), so that the Disclosing Party may seek an appropriate protective order or waive compliance with this Agreement . At its own, sole expense, including the costs of attorneys and other litigation expenses, the Disclosing Party may bring such legal action or proceeding as it may deem necessary to prevent the disclosure of its Confidential Information. The Disclosing Party shall indemnify, defend, and hold the Receiving Party harmless from any liability for attorney fees or other litigation expenses that may arise from any such legal action or proceeding. b. The Receiving Party agrees to cooperate with and support, within the required scope of compliance obligations, any effort by the Disclosing Party to resist or narrow such request or to seek a protective order or other appropriate remedy. If, in the absence of a protective order or the receipt of a waiver hereunder, the Receiving Party or its Representatives are, in the opinion of its or their legal counsel, compelled to disclose the Confidential Information, the Receiving Party and/or its Representatives may disclose only such of the Confidential Information to the patty compelling disclosure as is required by law and, in connection with such compelled disclosure, the Receiving Party and its Representatives shall use their reasonable efforts, at the Disclosing Party's request and expense, to obtain from the party to whom disclosure is made written assurance that confidential treatment will be accorded to such portion of the Confidential Information as is disclosed. 3. Matters Relating to the Status of Vernon as a MuniciRgli!y. a. Powerdyne Vernon acknowledges that Vernon is a municipality subject to the requirements of the California Public Records Act and, therefore, Vernon may be required (see 2A above) to make disclosures that a private sector person would not be obligated to make. b. Powerdyne Vernon acknowledges that if Powerdyne Vernon and Vernon determine that they wish to enter into a transaction, the transaction will need to be approved by the City Council of Vernon and may also need to be reviewed or approved by other official or advisory committees, all of which approvals and/or reviews will include hearings that are open to the public and at which any applicable transaction documents and staff reports would be available to the public. 2 C. Powerdyne Vernon also acknowledges that Vernon might have a role (as a lead or responsible agency) under the California Environmental Quality Act ("CEOA") in processing or reviewing environmental clearances for whatever project Powerdyne. Vernon may propose within the boundaries of the City. Nothing in this Agreement affects in any way the authority or discretion of the City in its governmental capacity (whether under CEQA or otherwise) with respect to any such project. Definition of Confidential Information. As used in this Agreement, "Confidential Information" means all information that is furnished in connection with the Potential Transaction to the Receiving Party or its Representatives by the Disclosing Party, or to which the Receiving Party or its Representatives have access by virtue of their participation in the Potential Transaction (in each case, whether such information is furnished or made accessible in writing, orally, visually, electronically or by any other means). Any such information furnished to the Receiving Party or its Representatives by a director, officer, employee, affiliate, stockholder, consultant, agent, attorneys or representative of the Disclosing Party will be deemed furnished by the Disclosing Party for the purpose of this Agreement. Notwithstanding the foregoing, the following will not constitute Confidential Information for purposes of this Agreement: i) information which is or becomes generally available to the public, other than as a result of a disclosure or other act by the Receiving Party or its Representatives in violation of this Agreement; ii) information which can be shown by the Receiving Party to have been already known to the Receiving Party ona non -confidential basis prior to being furnished to the Receiving Party by the Disclosing Party, or information which can be shown by the Receiving Party to have been independently developed by the Receiving Party or its Representatives without reliance upon the Confidential Information; and iii) information which becomes available to the Receiving Party on a non -confidential basis from a source other than the Disclosing Party or a representative of the Disclosing Party, if such source was to the knowledge of the Receiving Party, not subject to any prohibition, against transmitting the information to the Receiving Party. 5. No Disclosure of Potential Transaction' Except as may be required by applicable law, the Receiving Party shall not, nor shall permit its Representatives to, disclose to any person either the fact that discussions regarding the Potential Transaction are taking place, or any of the terms, conditions or other facts with respect to any proposal related to the Potential Transaction, or the status of the negotiations relating to any such proposal; all of which information shall be deemed to be included within the definition of "Confidential Information" for purposes of this Agreement. 6. No Warranty of Accuracy. The Disclosing Party makes no representation or warranty, express or implied, with respect to the accuracy or completeness of the Confidential Information provided to the Receiving Party. Neither the Disclosing Party nor any of its directors, officers, or employees shall have any liability to the Receiving Party, any of its Representatives, or any other person, relating to the accuracy and completeness or the use of the Confidential Information. 7. Termination: Duration of Obligations. Unless sooner terminated by mutual written Agreement of the Parties, this Agreement and the obligations hereunder shall terminate on the earlier of (i) two years from the date negotiations are terminated as to the Potential Transaction, and (ii) the date the Receiving Party and the Disclosing Party enter into a definitive, agreement in respect of the Potential Transaction. 8. Assignmen . This Agreement shall inure to the benefit of and shall be binding upon the Parties' respective successors and permitted assigns. Each Party hereto may not assign its rights hereunder to any other person absent the written consent of the other Party hereto, such consent not to be unreasonably withheld or delayed and any attempted assignment without such prior written consent shall be void and invalid. 9. Return of Information. The Disclosing Party may elect at any time to terminate further access to its Confidential Information. Upon written request of the Disclosing Party, the Receiving Party agrees to promptly return or, at its option, promptly destroy any and all Confidential Information as well as any other information disclosed to it and its Representatives by or on behalf of the Disclosing Party, including all originals, copies, translations, notes, or any other form of said material, without retaining any copy or duplicate thereof; provided that such return or destruction is reasonably practicable, with respect to electronic data, given the limitations on the permanent destruction of electronic data located on information technology system, in each case subject to Receiving Party's other obligations hereunder with respect thereto, provided that the Receiving Party and its Representatives may retain such Confidential Information (including back-up tapes and other back-up media) as it may be required to record or keep in its files by applicable statute, law, rule or regulation or by any judicial, governmental, supervisory or regulatory ,body or pursuant to its bona fide compliance and record retention policies and procedures. Any Party retaining any Confidential Information in accordance with law or this Agreement shall notify the other Party of the Confidential Information being retained and the reason. therefore. To the extent any Confidential Information is retained by the Receiving Party pursuant to the foregoing exception, the Receiving Party shall remain subject to its obligations and commitments hereunder with respect to such retained Confidential Information notwithstanding the expiration of the period set forth in Section 6 for so long as such Confidential Inforrnation is so retained. 10. No Waiver. No failure or delay in exercising any right, power or privilege hereunder will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 4 Il. Validity. In the event any provision in this Agreement should be found to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality or enforceability of the remaining provisions contained in this Agreement shall not in any way be affected or impaired by such a finding. 12. Remedies. The Receiving Party acknowledges and agrees that money damages would not be a sufficient remedy for any breach of this Agreement, and the Disclosing Party shall be entitled to seek specific performance and/or injunctive relief as remedies for any such breach without opposition from the Receiving Party, and the Receiving Party further agrees to waive, and to use reasonable efforts to cause such Party's Representatives to waive, any requirement for the securing or posting of any bond in connection with such remedy. Such remedies shall not be deemed to be the exclusive remedies for a breach of this Agreement, but shall be in addition to all other remedies available at law or in equity. Any liability of Receiving Party hereunder shall be limited to direct damages and shall exclude any other liability, including without limitation liability for special, indirect, punitive or consequential damages in contract, tort, warranty, strict liability or otherwise. 13. No License. It is understood and agreed that neither the execution of this Agreement nor disclosure of any Confidential Information by the Disclosing Party to the Receiving Party shall be construed as granting to the Receiving Party or any of its Representatives any license or rights in respect of any part of the Confidential Information disclosed to it, including any trade secrets included in any such Confidential Information. 14. No Obligation Regardiny a Transaction. Nothing in this Agreement shall in any manner obligate either Party to negotiate or proceed with any transaction, whether or not relating to the Potential Transaction. 15.. Notices; Contact. Any notice under this agreement shall be made in writing and be delivered via hand delivery, United States mail, courier service, facsimile or electronic mail as specified below. Notice by hand delivery, facsimile or electronic mail shall be effective at the close of business if received during business hours on a weekday (excluding any bank holidays), and otherwise shall be effective at the close of business on the next weekday (excluding any bank holidays). Notice by overnight United States mail.or overnight courier shall be effective on the next weekday (excluding any bank holidays) after it was sent. Notice by non -overnight United States mail or non -overnight courier shall be effective on the weekday (excluding any bank holidays) that it is received, or, if not received on a weekday (excluding any bank holidays), the first weekday (excluding any bank holidays) after it is received. A Party may change its notice information by providing notice of same in accordance herewith. If to Vernon: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Facsimile: 323-826-1438 Attn: Director of Light & Power Department 61 With a copy to: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Facsimile: 323-826-1438 Attn: City Attorney , and Latham & Watkins LLP 355 South Grand Avenue Los Angeles, CA 90071-1560 Attn: David B. Rogers, Esq. Facsimile: 213-891-8763 If to Powerdyne Vdmon LLC: Powerdyne Vernon, LLC. 4740 Von Karman Avenue, Suite 100 Newport Beach, California 92660 Attn: Geoff Hirson Facsimile: 949-861-9349 With a copy to: Manatt, Phelps & Phillips, LLP One Embarcadero Center, 30th floor San Francisco, CA 94111 Attn: David L. Huard Facsimile: 415-291-7474 16" Miscellaneous. The headings of the paragraphs of this Agreement are inserted for convenience only and do not constitute a part hereof or affect in any way the meaning or interpretation of this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to any conflicts of laws rule that would apply the laws of another jurisdiction. This Agreement may be executed in several counterparts, and all such counterparts shall constitute one agreement binding on the Parties hereto and shall have the same force and effect as an original instrument. This Agreement may be executed by facsimile signature and any such signature shall be accepted as if it were an original execution signature. 17. Entire Agreement. This Agreement contains the entire agreement of the Parties, supersedes any and all prior agreements, written or oral, between them relating to the subject matter hereof, and may not be modified or amended unless agreed to in writing by each Party. rl IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first above written. THE CITY OF VERNON POWERDYNE VERNON, LLC By: Nam Title Attest By: 4illard b. YAag hi 61 Title . : QJMJ�i� j0pi � 1tv Clerk AS Chief Deputy C#y Ait By: Name: Title: Signature Page to Confidentiality And Nondisclosure Agreement 7 CITY.CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: May 17, 2012 TO: Carlos Fandino, Director of Light & Power FROM: Willard Yamaguchi, City Clerk RE: Resolution No. 2012-74 — A Resolutlionf the City Council of the City of Vernon Approving and Ratifying the Execution of a Confidentiality and Nondisclosure Agreement By and Between the City of Vernon and Powerdyne Vernon LLC Transmitted herewith is a copy of Resolution No. 2012-74 referenced above, which was approved by City Council on May 15, 2012. Thank you. WY:dj Attachment c: Peter Hervish David Rogers Resolution No. 2012-74 Agreement No. 12-039 FecEx.USAirbill wa Express . = 8630 5719 1871 1 Fmm ponoononi000�osoosnt comPark —Cl TY OF VER NON 1 11—plf— V— Address 4305S 5ANIA FE AVE D-Affloo'now. city VERNON State CA ZIP (0- 2 VatiOntemalBillin derence 3 6 1,1 — I CYO A� 3 )�� 0369330422 fiedBiStandirdOvernight RedExFrsfOseffil _F_ FadEx2Day RdExEpresosSomr ."nonodu El �—�s M,%er 4h Exprm Freight Sen"rics, FadFxlDaxFrqht- E] FedEx2DayFre t FedEx3D Pro' ht sw" 'Ros!V, 11.01I.Y. On. 5�eackaglng Fed� E] FOJEX Pak' E] FqdEx Ej FadEx E] Olhor EmeloW offol Hd&s.0 Box Tube lno'8do ledU addiess in Soo swunbAyaouvary NOTAQellab 6 For H D irk or El toNdEft �d se. N OTAvallablefor .%�oqnll Doieffilsshipaintoonlefindinn,niousquadi? W'- 0..koo�nMhoh.ok.4 ---- . --I - N7 [—] Yes 11 ks � El Drylco ppsr�v000roft ow,ontmIm —x—kg noona Carga.Air�rsift Only, RMIS, ZSomdar E] Fbecipi,4 1: E] Third p, A,o _] CmdkCard' ChsWhsck Total Packages Tidallmelght TdolDeclamdValust $ Nd'. Ind I.s.1 No 8 FiesidelitialOOlIVOrySi�natur6optionis onsoo,dbodkwonnorlods. No Signature DirectSignature In Required *do s di.mc.,�IVgours El �Ovt . ning, M, .1. dirnonotkn on nsnnx=Q M.M." F5191 ono DaW F�PMKID W IJS�� A OFFICE OF THE CITY CLERK 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 583-8811 May 3, 2012 David B. Rogers, Esq. Latham & Watkins LLP 3 5 5 S. Grand Avenue Los Angeles, CA 90071-1560 Re: Powerdyne Confidentiality and Nondisclosure Agreement Dear Mr. Rogers: Please find enclosed two fully executed originals of the above -referenced document, scheduled for ratification at the City Council meeting to be held on May 15, 2012. If you have any questions regarding this matter, please contact Carlos Fandino at (323) 583-8811 ext. 834. Ze thly WILLAR� City Clerk WGY:dj Enclosures c: Carlos Fandino Peter Hervish Agreement File No. 12-039 Ex,c fus ive 15 . rn dust ria I Juarez, Debbie From: Juarez, Debbie Sent: Thursday, May 03, 2012 2:12 PM To: 'David. rogers@lw.com'; Fandino, Carlos; Hervish, Peter; Hunter, Audra Subject: Powerdyne Fully Executed Agreement Attachments: POWERDYNE CONFIDENTIALITY & NONDISCLOSURE FULLY EXECUTED AGREEMENT.PDF Juarez, Debbie From: Muro, Evangelina Sent: Wednesday, May 02, 2012 5:09 PM To: Juarez, Debbie Cc: Yamaguchi, Willard Subject: Powerdyne Vernon, LLC Debbie, A confidentiality and nondisclosure agreement with Powerdyne has been executed by Carlos and is pending Willard's attestation and approved as to form. Peter has asked that once the agreement is fully executed that 2 original agreements be sent to David Rogers of Latham & Watkins; City to keep one original. Also please send a pdf copy of the agreement to David Rogers, Carlos and Peter. Background: A meeting is to take place Monday morning therefore the agreement is needed by tomorrow. A resolution for the approval and ratification will be placed on the May 15ffi meeting. Thank you. Eva Muro City Attorney Dept., City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Work; (323) 583-8811 x 273 Fax: (323) 826-1438 CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it may contain confidential information that is legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of any of the information contained in or attached to this transmission is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately notify the sender. Please destroy the original transmission and its attachments without reading or saving in any manner. AOL cll�c _11A RECEIVED MAY 0 3 201� STAFF REPORT CITY CLERK'6 OFFICE LIGHT & POWER DATE: May 2, 20121 TO: Honorable Mayor and City Council FROM: Carlos Fandino Jr., Director of Light & Power RE: Powerdyne Vernon, LLC PURPOSE MAY 0 2 2012 CITY ADMINISTRATION The city of Vernon was contacted by LA Fiber, a business in the city of Vernon and Power Dyne, an engineering firm, of Newport Beach, California for consideration and discussion of a possible Renewable Energy generation site for the City within the City. The City has met informally with the President of both LA Fiber and Power Dyne who have formed a Joint Venture (the "JV') for the construction of an energy producing facility within the City and within the boundaries of the LA Fiber plant. The interest of both the City and the JV is to explore the opportunity for the generation of energy meeting California RPS of up to 8 MW's per hour into the City grid. This opportunity would enhance the City's RPS portfolio and provide an excellent demonstration of a City industry working with the City to meet its State mandated requirements while at the same time help to lower the projected cost of purchasing outside energy for said purpose. The City and the JV have prepared an NDA with their respective legal counsels so that prior to meeting and discussing proprietary details of the possible agreement and process, both parties are protected. The purpose of the discussions will lead to a more detailed proposal which would be formalized and presented to the City Council for consideration, discussion and possible approval to move forward PRIOR to any obligation. The attached Confidentiality & Non -Disclosure Agreements with Powerdyne Vernon, LLC have been approved as to form by the City's Legal department and executed by the Director of Light & Power. RECOMMENDATION Request City Council approval and ratification of the attached executed Confidentiality & Non -Disclosure Agreement at the May 15, 2012 meeting. CRF:ah CITY ATTORNEY'S OFFICE INTER -DEPARTMENT MEMORANDUM DATE: April 30, 2012 TO: Carlos Fandino, Director of Light & Power FROM: Willard G. Yamaguchi, Chief Deputy City Attorney RE: Powerdyne Vernon, LLC I have received and reviewed your Memorandum dated April 26, 2012, and the attachments thereto. The Confidentiality & Non -Disclosure Agreement is approved as to form. WY: em Interoffice DATE: Apri126,2012 U fulz TO: Willard Yamaguchi, Chief Deputy City Attorney FROM: Carlos R. Fandino, Jr. Director of Light and Pe Memorandum ME CITY ATTORNEY DEPT, RE: Confidentiality and Non -disclosure Agreements between the City of Vernon and Powerdyne Vernon, LLC. Attached for your review are the Confidentiality & Non -Disclosure Agreements with Powerdyne Vernon, LLC for discussion of potential transactions pertaining to (SCPPA RFI Category 2) energy generation opportunities. If you have any questions, please call me on extension 834. CRF:tt C: Document Control TO: Willard Yamaguchi, Chief Deputy City Attorney FROM: Carlos R. Fandino, Jr. Director of Light and Pe Memorandum ME CITY ATTORNEY DEPT, RE: Confidentiality and Non -disclosure Agreements between the City of Vernon and Powerdyne Vernon, LLC. Attached for your review are the Confidentiality & Non -Disclosure Agreements with Powerdyne Vernon, LLC for discussion of potential transactions pertaining to (SCPPA RFI Category 2) energy generation opportunities. If you have any questions, please call me on extension 834. CRF:tt C: Document Control David B. Rogers Direct Dial: -1.213.891.8236 david.rogers@1w.corn LATHAM&WATKINSLLP April 23, 2012 Carlos Fandino, Jr. Director of Light & Power City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Carlos, 355 South Grand Avenue Los Angeles, California 90071-1560 Tel: -1.213.485.1234 Fax: +1.213.891.8763 �'Iwcom FIRM / AFFILIATE OFFICES Abu Dhabi Moscow Barcelona Munich Beijing New Jersey Boston New York Brussels Orange County Chicago Paris Doha Riyadh Dubai Rome Frankfurt San Diego Hamburg San Francisco Hong Kong Shanghai Houston Silicon Valley London Singapore Los Angeles Tokyo Madrid Washington, D.C. Milan File No. 037464-0000 I write to forward to you the attached letter from Powerdyne's counsel with three execution originals of the NDA. Note the instructions in his cover letter, which are fine with me. Please let me know if you have any questions. Best regards, a�D David B. Rogers of LATHAM & WATKINS LLP cc: Willard Yamaguchi, Esq. (w/ copy of Encl.) Enclosures LA\263551 1.1 manaft manatt I phelps I phillips April 18,2012 David B. Rogers ' Latham & Watkins LLP 355 South Grand Avenue Los Angeles, CA 90071 Re: City of Vernon and Powerdyne Vernon LLC Dear Dave: David L. Huard Manatt, Phelps & Phillips, LLP Direct Dial: (415) 291-7430 E-mail: dhuard@manaff.com Client -Matter: 46125-031 Per our discussions, attached please find three copies of the agreed to "Confidentiality and Non -Disclosure Agreement" between the City of Vernon and Powerdyne Vernon LLC as executed by Powerdyne Vernon LLC. Please have the copies executed and return two copies to me for my client and our records. Thank you for your help and I look forward to meeting with you soon on this important project. 5 >el Y' Da L . Huard FRIM "111 Enclosures 302080607.1 One Embarcadero Center, 30th Floor, San Francisco, California 94111 Telephone: 415.291.7400 Fax: 415.291.7474 Albany I Los Angeles I New York I Orange County I Palo Alto I Sacramento I San Francisco I Washington, D.C. manaft manatt I phelps I phillips April 18, 2012 David B. Rogers Latham & Watkins LLP 355 South Grand Avenue Los Angeles, CA 90071 Re: City of Vernon and Powerdyne Vernon LLC Dear Dave: David L. Huard Manatt, Phelps & Phillips, LLP Direct Dialt. (415) 291-7430 E-mail: dhuard@manan.com Climl-Mattu: 46125-031 Per our discussions, attached please find three copies of the agreed to "Confidentiality and Non -Disclosure Agreement" between the City of Vernon and Powerdyne Vernon LLC as executed by Powerdyne Vernon LLC. Please have the copies executed and return two copies to me for my client and our records. Thank you for your help and I look forward to meeting with you soon on this important project. c'y' Da L. Huard DLH:rm Enclosures 302080607.1 One Embarcadero Center, 30th Floor, San Francisco, California 94111 Telephone: 415.291.7400 Fax: 415.291.7474 Albany I Los Angeles I New York I Orange County I Palo Alto I Sacramento I San Francisco I Washington, D.C. David B. Rogers Direct Dial: -1.213.891.8236 david.rogers@lw.com LATHAM&WATKINSLL P April 23, 2012 Carlos Fandino, Jr. Director of Light & Power City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Carlos, 356 South Grand Avenue Los Angeles, California 90071-1500 Tel: -1.213,485,1234 Fax: -1.213.801.8763 www1w.com FIRM I AFFILIATE OFFICES Abu Dhabi Moscow Barcelona Munich Belling New Jersey Boston New York Brussels Orange County Chicago Paris Doha Riyadh Dubai Rome Frankfurt San Diego Hamburg San Francisco Hong Kong Shanghai Houston Silicon Valley London Singapore Los Angeles Tokyo Madrid Washington, D.C. Milan File No. 037484-0000 I write to forward to you the attached letter from Powerdyne's counsel with three execution originals of the NDA. Note the instructions in his cover letter, which are fine with me. Please let me know if you have any questions. Best regards, 4�'�D David B. Rogers of LATHAM & WATKINS LLP cc: Willard Yamaguchi, Esq. (w/ copy of Encl.) Enclosures LA\263551 1.1