Flender/Flender Gear Units/Bevel-helical speed reduction gearboxes B4
transparent gamesmanship regarding Adjusted Contract Capacity Testing at the Facility. he Facility now has completed the Citys requested November 2,

2 test. Preliminary results show that the Facility is operating above and beyond what is required of it under the

PPTA and that Bicent will be entitled to substantial Heat Rate Bonus. Once the final test results are in, we

will invoice the City for that bonus. We still have not heard any explanation as to why the Citys insistence

on the November 1 and November 2 tests is not violation of Section 7.2 of the PPTA, which permits the City to request additional Adjusted Contract Capacity Test only during the years that the biennial Adjusted Capacity Test is not completed and then only at time to be reasonably agreed upon by the Parties. Please explain what provision in the PPTA , if any, provides basis for the City to demand capacity tes on November 1 and November 2. We also ask again that you confirm the City will pay for those Adjusted Contract Capacity Test . Section 7.2 of the PPTA explicitly states that request by the City for an additional Adjusted Contract Capacity Test is at its expense. et your letter does not address Bicents request that the City reimburse Bicent for its costs incurred preparing for the November 1 test which the City unceremoniously canceled at the last minute. As noted in the Notice of Default, he costs associated with the abandoned November 1 test are roughly $6,0 . Bicent will provide the City with the costs incurred in connection with the November 2 test , which will be substantially more and is also at the Citys expense, once the final results are available. December 5, 2 Page 6 Putting aside the Citys clear obligation to pay for these tests, our suggestion that Bicent behaved improperly with respect to the November 1 test is baseless. As Bicent explained repeatedly to Ms. Nguyen, it made no ense to conduct second Adjus