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AMENDMENT AND TERMINATION AGREEMENT <br />This Amendment and Termination Agreement (this "Agreement") is made and entered <br />into this _ day of June, 2004, between the City of Colton, a California municipal corporation <br />(the "City") and EI Colton LLC, a Delaware limited liability company ("EIC"). The City and <br />EIC are sometimes individually referred to as "Party" and collectively as "Parties". <br />RECITALS <br />WHEREAS, The City owns a simple -cycle electric generating facility (the "Facility") in <br />Colton, California; <br />WHEREAS, On October 15, 2002, the Parties entered into an Operation & Maintenance <br />Services Agreement (the "O&M Agreement") pursuant to which EIC agreed to operate and <br />maintain the Facility for the City; <br />WHEREAS, On October 15, 2002, the Parties entered into an Administrative Services <br />Agreement (the "ASA") pursuant to which EIC agreed to provide certain administrative and fuel <br />management services for the City in connection with the Facility; <br />WHEREAS, The ASA provided for EIC to manage certain Emission Reduction Credits <br />on behalf of the City; and <br />WHEREAS, The Parties now desire to terminate the ASA, and to amend the O&M <br />Agreement to transfer certain services previously provided pursuant to the ASA to the O&M <br />Agreement and for other purposes; <br />NOW, THEREFORE, in consideration of the foregoing, and for other good and <br />valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and <br />intending to be legally bound hereby, the City and EIC hereby agree as follows: <br />1. Amendments to O&M Agreement. The O&M Agreement is amended as follows: <br />a. The definition of "Operator Invoice" in Section 1.01 is amended to read as <br />follows: <br />"Operator Invoice" means an invoice for the Base Fee and the ERC <br />Management Fee prepared by Operator and delivered to Owner in accordance <br />with Section 8.01 {regarding Operator Fee and ERC Management Fee billing <br />procedures}. <br />b. The definition of "Operator Provided ERCs" in Section 1.01 is amended to read <br />as follows: <br />"Operator Provided ERCs" means the initial supply of NOx RECLAIM <br />Trading Credits, PM 10 ERCs and VOC ERCs provided by Operator to the City <br />pursuant to Section 15.01. <br />C. The definition of "ERC' in Section 1.01 is amended to read as follows: <br />