Flender/Flender Gear Units/Bevel-helical gearbox B3
o unimpressed by your efforts to excuse Ms. Nguyens assertion that the City would withhold ayment under the PPTA for

the difference between 1 MW capacity and . . . 1 MW capacity . While it is true that the

City may dispute invoices under Section 4 While your letter suggests that the City believes no test should occur in

December, Ms. Nguyen apparently feels otherwise. On December 3, 2 she ePriceed Bicent that the City was planning to send

witnesses to observe the testthe very same witnesses who told Bicent personnel that they did not understand why the November 2 was being done given that another test was already scheduled for December. Th is begs the question of what the Citys position really is and who is giving direction. 5 In November 2, Ms. Nguyen waived the 2 test, which brought the Facility current for testing purposes to 2. The current biennial period thus runs from April 1, 2 through April 1, 2 . December 5, 2 Page 7 1.3 of the PPTA, your letter fails to mention key limitation on that right: that the disput must be in good faith. The plain language of the PPTA makes clear that the Facility is not required to deliver 1 MW at this point in its lifespan (PPTA, Appx. ) , and Ms. Nguyen provided no explanation of why the Facilitys invoices mi ght be incorre ct. The Citys decision to pay the invoices confirms that there was no good faith basis for Ms. Nguyens threats to withhold payment. While it is true that the City ultimately paid Bicents most recent invoice, it is untenable for Bicent to continue under ad hoc threats of non -payment that have no basis in the PPTA . This is all the more concerning given the Citys failure in your December 1 letter to confirm that it will pay (as required under the PPTA ) for the November 1 and November 2 additional Adjusted Contract Capacity Tests . The Citys conduct does not evince willingness to continue to perform its payment