CONTRACT NO: 2012-132066

CONSULTANT: WAL-MART PUERTO RICO, INC.

CONSULTANT'S NO:
GREEN ENERGY FUND
RESERVATION AGREEMENT
Tier 2
20ll-23-0013
Between
THE PUERTO RICO ENERGY AFFAIRS ADMINISTRATION
and
Javier Rojo Lopez
(CUSTOMER)
and
Edgardo Fabregas
(AUTHORIZED REPRESENTATIVE, IF APPLICABLE)
THIS RESERVATION AGREEMENT is mad tfA'J, Z.-l.. , 20.-G., by and
among Wal-Mart Puerto Rico, Inc., tax i.d. number represented herein by its
Development Director ofWal-mart Puerto Rico, Inc., Javier Raja Lopez, oflegal age, single, and
a resident of Caguas, P.R., who is the "Customer" as defined in the Green Energy Fund (Tier I
and Tier 2) Regulation No, 8038 (the "Regulation") and incentive holder ("Recipient"); if
applicable: SunE WMT PRl, LLC, tax i.d. number represented herein by Edgardo
Fabregas, of legal age, married, and a resident of San Juan, P.R., who is the Customer's
Authorized Representative as defined in the Regulation; and the PUERTO RICO ENERGY
AFFAIRS ADMINISTRATION, an agency of the Commonwealth of Puerto Rico represented
herein by its Executive Director Luis Bernal, of legal age, married, lawyer and resident of
Guaynabo, Puerto Rico ("PREAA") (each of Recipient, Authorized Representative and PREAA
individually a "Party" and collectively the "Parties").
RECITALS:
WHEREAS, Recipient has submitted to PREAA an application and proposal seeking to
receive an incentive under the Green Energy Fund created by Act No. 83 of July 19, 2010
("Act 83") for the installation of a 500 kW Green Energy System, Solar at the following location
1145 Carr, #2 Bo. Florida A{itera, Barceloneta, P.R. 00617, ("Facility"), as further described in
this Agreement; and
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WHEREAS, PREAA desires to provide such incentive on the terms and conditions set
forth herein, in accordance with the Regulation and the applicable Reference Guide (the
"Guide"):
NOW, THEREFORE, in consideration of the promises and the mutual covenants
contained in this Agreement and for other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Parties hereto agree as follows:
1. Definitions and Interpretation
1.1. Specific Terms. Capitalized tenns (whether singular or plural) used in this
Agreement, unless otherwise defined herein, shall have the meaning ascribed to
such terms in the Regulation.
1.1.1. "Act 83" shall have the meaning ascribed to this term in the Recitals
hereto.
1.1.2. "Agreement" shall mean this Green Energy Fund Reservation
Agreement.
1.1.3. "Authorized Representative" shall have the meaning ascribed to this
term in the Regulation, namely the optional third party that the Customer
designated in writing as delegate to apply to the GEF and to represent
Customer. Use of this term or references to the obligations of the
Authorized Representative in this Agreement shall be disregarded in
cases where Customer did not designate any Authorized Representative.
1.1.4. "Final Inspection" shall have the meaning ascribed to this term in
Section 3.4.
1.1.5. "GEF" shall mean the Green Energy Fund created under Act 83.
1.1.6. "GEP" or "Project" shall mean the 500 kW Green Energy System at the
Facility, as was described in the application documents and in the
Proposal, whose Proposal and application documents are incorporated
herein as Appendix A and made an integral part of this Agreement, as
such Project may have been modified with PREAA's approval, with
Project Number 2011-23-0013;
1.1.7. "Guide" shall have the meaning ascribed to such term in the Recitals
hereto.
1.1.8. "Incentive Reservation Notice" shall mean the reservation notice letter
issued by PREAA and included as part of Appendix A hereof.
1.1.9. "Incentive Payment" shall have the meaning ascribed to this term in
Section 8.1.
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1.2.
1.3.
1.1.10. "Indemnified Parties" shall mean: (i) the Commonwealth of Puerto Rico,
including the Department of Economic Development and Commerce
("DEDC"), (ii) PREAA; (iii) DEDC's and PREAA's officials, directors,
officers, employees, agents, successors and assigns; and (iv) all persons
or entities acting on behalf of any of the foregoing.
1.1.11. "Losses" shall mean any and all liabilities, obligations, losses, damages,
penalties, claims, actions, suits, judgments, fees, expenses and costs of
whatsoever kind and nature (including legal fees and expenses and costs
of investigation, of prosecuting or defending any Loss described above)
whether or not such Loss be founded or unfounded, of whatsoever kind
and nature.
1.1.12. "PREAA" shall mean the Puerto Rico Energy Affairs Administration
1.1.13. "Project Completion" shall mean when the Project has been constructed
or installed, permitted, is fully capable of being placed into operation, a
Final Inspection determination has been issued and has satisfied the
requirements of Section 3.2 of this Agreement.
1.1.14. "Recipient " shall have the meaning ascribed to such term in the
introductory part hereto;
1.1.15. "Regulation" shall have the meaning ascribed to such term III the
introductory part hereto;
1.1.16. "Reservation Period" shall have the meaning ascribed to this term in
Section 2.3 of this Agreement.
1.1.17. "Incentive Payment" shall mean any and all funds allocated or disbursed
to Recipient under this Agreement.
Additional TelliS. The terms "as directed," "as required" or "as permitted" and
similar terms shall refer to the direction, requirement, or permission of PREAA.
The terms "sufficient," "necessary" or "proper" and similar terms shall mean
sufficient, necessary or proper in the sole judgment of PREAA. The terms
"approval," "acceptable" or "satisfactory" or similar terms shall mean approved
by, or acceptable to, or satisfactory to PREAA. The terms "include," "included"
or "including" and similar terms shall be deemed to be followed by the words
"without limitation".
References to this Agreement. References to this Agreement include: (a) any and
all appendices, exhibits, schedules, attachments hereto; (b) any and all statutes,
regulations or other documents expressly incorporated by reference herein,
including Act 83, the Guides and the Regulation; and (c) any and all amendments,
modifications or supplements hereto made in accordance with Section 20.3.
References to articles, sections, subsections or appendices refer to articles,
sections or subsections of or appendices to this Agreement, unless otherwise
App. A-3
expressly stated. Terms such as "hereunder," "herein" or "hereto" refer to this
Agreement as a whole.
2. Term of Agreement and Reservation Period
2.1. Effective Date. This Agreement shall become effective on the date first above
written (the "Effective Date").
2.2. Tenn of Agreement. The term of this Agreement ("Tenn") shall commence on the
Effective Date. Unless the Agreement is terminated earlier as set forth herein,
such term shall end on the date falling on the second year anniversary of the
Effective Date, as such tenn may be extended by written agreement ofthe Parties.
2.3. Duration of the Incentive Reservation Period. Notwithstanding the Term of this
Agreement, the GEP shall reach Project Completion within the period of twelve
(12) months from the Effective Date hereof, namely nntil
t10rcl.. 1't',> Z<> I ("Reservation Period"). The
Reservation Period, however, may be extended in PREAA's discretion taking into
acconnt particular circumstances and Project contingencies and/or Force Majeure
events. In no case, however, shall the time granted for the Project Completion
exceed a total of twenty-four (24) months, as stated in the Regulation and Act 83.
Requests for extension of Reservation Period shall be presented in writing to
PREAA at least thirty (30) days before the end of the Reservation Period. If the
Project is not completed within the Reservation Period, as it may have been
extended by PREAA upon duly received request from Recipient, the incentive
reservation will be cancelled.
Implementation of Project
3.1. Implementation of Project; Cooperation with Monitoring. Recipient shall, in
good faith and with diligence, nndertake the construction and operation of the
Project, as presented in the application and Proposal, and in accordance with the
tenns and conditions set forth in this Agreement, the Regulation, and the Guide.
Recipient shall not materially change the nature or scope of the Project without
the prior written consent of PREAA. Recipient shall cooperate in good faith with
PREAA in any evaluation, planning, auditing or monitoring activities conducted
or authorized by PREAA to verify compliance with this Agreement, the
Regulation, the Guide, and/or Project Completion to authorize disbursement of
the incentive.
3.2. Once the Project is constructed, permitted and fully capable of being placed into
operation, before the Incentive Payment can be disbursed, Recipient (or System
Owner if Recipient will be assigning payment to a System Owner different from
Recipient) shall submit a reservation claim, including the following documents:
3.2.1. Evidence of payment of Total Project Costs;
3.2.2. Government required certifications.
App. A-4
3.2.2.1 Certificate issued by the Puerto Rico Treasury Department
evidencing that there is no income tax debts outstanding, or if
a debt is outstanding, there is a validly agreed and current
payment plan.
3.2.2.2 Certificate of filing income tax returns with Puerto Rico
Treasury Department for the prior five (5) years. If Recipient
(or System Owner, if applicable) has been organized or doing
business in Puerto Rico for less than 5 years, it will submit a
sworn statement, in form and substance acceptable to PREAA,
detailing such circumstances.
3.2.2.3 Department of Labor and Human Resources Certification -
Certification to the effect that it has paid to the Department of
Labor and Human Resources ("DLHR") any required and
applicable employee contributions, in accordance with the
Puerto Rico Employment Security Act (unemployment,
temporary disability or sickness or social security for
chauffeurs).
3.2.2.4 Municipal Revenues Collection Center Certification -
Certification issued by the Municipal Revenues Collection
Center stating that it has paid any and all applicable property
Taxes and does not owe any property Taxes.
3.2.2.5 Act 428 Swom Statement included as an Appendix C hereto.
3.2.2.6 Certificate of no debt for child support under Puerto Rico law
issued by ASUME or under the law of any other state of the
United States.
3.2.3. Signed Interconnection Agreement with, and interconnection permit
from, PREPA (or evidence of filing of application to interconnect with
PREPA and in accordance with Section 6.14 of Chapter 1 of the
Regulation);
3.2.4. Renewable Energy System Installation Certificate in accordance with
OGPe Joint Regulation, Title XII, Chapter 55, Rule 55.6;
3.2.5. GEP owner's designation of responsible party from the North American
Renewables Registry and/or any other document required by PREAA to
ensure that the ownership of any and all of the environmental attributes
and renewable energy certificates associated with the Project will be
transferred to PREAA;
3.2.6. Evidence of compliance with insurance requirements stated in Section 14
below; and
App. A-5
3.2.7. Certification and evidence of jobs created and payroll paid during
construction. Evidence of ongoing jobs expected to be created shall also
be presented to support the number ofjobs indicated in the Proposal.
3.3. Once the Recipient notifies PREAA that the Project is constructed, permitted and
fully capable of being placed into operation, and submits all required
documentation listed in Section 3.2 above, PREAA will send an inspector to
verify that the Project complies with the description of the GEP in the Proposal
and application documents, the terms of the Incentive Reservation Notice and
herein.
3.4.
3.5.
An inspection will be completed within thirty (30) Business Days from the date of
receipt of the Recipient's reservation claim with all required documentation. An
inspection showing full compliance with the description of the GEP in the
Proposal and application documents, the terms of the Incentive Reservation
Notice and this Agreement will become a final inspection detenllination ("Final
Inspection").
In the case that the inspection shows that the Project has a smaller System
Capacity than described herein and in the Incentive Reservation Notice, the
inspection determination will become final but shall reflect an adjustment in the
Total Incentive Amount proportional to the reduction in the GEP System
Capacity. However, a modification in System Capacity that reduces the project to
a 100kW or less GEP will be considered a significant variation under Section 4.14
of the Regulation, in which case, Recipient will have the option to, within thirty
(30) Business Days from receipt of notice offailed inspection:
3.5.1. Modify the GEP in accordance with this Agreement and reapply for a
Final Inspection; OR
3.5.2. Withdraw the reservation of the incentive and notify PREAA in writing,
in which case, the Reservation Guarantee shall be retained by PREAA.
3.6. An inspection showing that the Recipient or the location or site of the GEP is
different from those specified herein, shall constitute a failed inspection and will
result in the cancelation of the reservation, in which case, the Reservation
Guarantee shall be retained by PREAA.
3.7. Completed GEPs with larger System Capacity than described herein will receive
the Total Incentive Amount as stated herein, unadjusted.
3.8. Completed GEPs with significant variations other than as described above will
have the same options described in Section 3.5 above, within thirty (30) Business
Days from receipt of notice offailed inspection.
3.9. Reservations for GEPs that reflect significant variations will be cancelled if
Applicant does not act within thirty (30) Business Days from receipt of the notice
App. A-6
failed inspection, in which case, the Reservation Guarantee shall be retained by
PREAA.
4. Compliance with Laws and Regulation
4.1. Each of Recipient and Authorized Representative acknowledges having read and
understood the Regulation. Each of Recipient and Authorized Representative
further acknowledges and agrees that the Regulation sets forth additional terms,
conditions and requirements to be able to receive the incentive under this
Agreement. Therefore, they agree to comply with, and be bound by all
requirements in the Regulation, the Guide and herein.
4.2. All applicable requirements of the Regulation and the Guide are incorporated
herein by reference as though set forth in full in this Agreement.
4.3. Licenses and Permits. Recipient, at his/her/its own expense to the extent not
covered or permitted under the Regulation, has obtained and will maintain all
licenses and permits needed to perform work on the Project and for installation
and operation of the Project at the Facility.
4.4. Compliance with Other Laws and Applicable Safety and Performance Standards.
Recipient shall keep itself fully informed of Green Energy Fund guidance and
regulations; applicable municipal codes; ordinances and regulations; and all laws,
rules and regulations affecting the performance of this Agreement, and shall at all
times comply with such codes, ordinances, and regulations, rules and laws. In
addition, the Project must meet all applicable safety and performance standards
established by PREAA, PREPA and any other applicable regulatory body.
5. Disclosures
5.1. Disclosures. Each of Recipient and Authorized Representative hereby authorizes
PREAA to share with, and request and receive from, PREPA, other entities of the
Commonwealth of Puerto Rico and federal agencies, any and all information
regarding Recipient and Authorized Representative, including any information
about the Facility, the Project, Recipient and Authorized Representative, to
confirm accuracy of information submitted in the application documents and
Proposal, and to verify eligibility and truthfulness of information included therein,
and/or to investigate or prosecute possible violations or civil or criminal Puerto
Rico and United States laws. Disclosed information may be posted in the Internet
and published in any other media by the Government of Puerto Rico to comply
with legal and regulatory requirements.
6. No Endorsement by PREAA
6.1. Each of Recipient and Authorized Representative understands that PREAA's
review of the Project and authorization for the Incentive Payment shall not be
construed as confirming or endorsing (i) the qualifications of any persons
involved with the Project, including but not limited to the Project designers,
App. A-7
installers or manufacturers; (ii) endorsing the Project's design; or (iii) warranting
the economic value, safety, durability or reliability of the Project. Neither
Recipient nor Authorized Representative shall use PREAA's or the GEF name,
logo, trademark, trade name, identity, or affiliation for any reason or purpose,
without prior written consent ofPREAA.
6.2. The Recipient and Authorized Representative are solely responsible for the
Project, including selection of any designer, manufacturer, contractor, and
installer, as long as it is certified by PREAA. Each of Recipient and Authorized
Representative understands that slbe, and any third parties involved with the
Project, are independent contractors and are not authorized to make any
representations on behalf of PREAA or the GEF.
7. Environmental Attributes and Renewable Energy Certificates
7.1. Each of Recipient and Authorized Representative acknowledges and agrees that
the ownership of any and all enviromnental attributes, including but not limited to
renewable energy certificates, associated with the Project (collectively, "RECs")
shall be transferred to PREAA prior to payment of the Incentive Payment to
Recipient. Any assignee of the Incentive Payment shall be informed by Recipient
of the non-transferability of the RECs. Each of the Recipient, and the System
Owner ifIncentive Payment is assigned, agrees that it 1) will not sell or otherwise
encmnber the RECs from the Project to or for the benefit of any other person or
entity and 2) will, at PREAA's request, execute any additional documents or
instrmnents to effectuate the intent of Act 83 and this Section 7.1, including,
executing a Generator Owner's Designation of Responsible Party from the North
American Renewables Registry.
8. Maximum Amount of Incentive Payment
8.1. In no event shall the amount of incentive payment disbursed hereunder exceed
SIX HUNDRED THIRTY EIGHT THOUSAND DOLLARS ($638,000.00).
("Incentive Payment"). Payments under this agreement are budgeted and will be
paid from the Green Energy Fund, Account No. 274-1320000-081-2011.
8.2. Disbursement Procedures. The Incentive Payment shall be disbursed to Recipient
as follows:
8.2.1. PREAA shall have no obligation to disburse any portion of the Incentive
Payment requested in the application and preliminarily reserved unless
there are GEF funds available and until all conditions of this Agreement,
the Guide and the Regulation have been complied with.
8.2.2. PREAA shall make a single disbursement of the Incentive Payment.
8.2.3. PREAA shall make all disbursements of the Incentive Payment by check
payable to Recipient or its authorized assignee, as indicated below and
permitted by the Regulation, sent via U.S. mail or wire transfer not later
App. A-8
than thirty (30) days from issuance of a Final Inspection showing full
compliance with all terms and conditions of this Agreement or from the
date of issuance of Final Inspection determination after modification of
the GEP in accordance with the provisions of Sections 3.5 and 3.8 above.
8.2.4. Incentive Payments may be disbursed to third parties (including System
Owners and Authorized Representatives) when such third party has
partially or completely paid for the cost of the GEP, provided a payment
release and assignment document is submitted by Recipient and assignee
toPREAA.
9. Reporting; Audits; False Claims
9.1. Books and Records. Recipient shall establish and maintain accurate files and
records of all aspects of the Project and the matters funded in whole or in part
with the Incentive Payment during the term of this Agreement, including all of the
files, records, books, invoices, documents, payrolls and other data required to be
maintained under this Section in a readily accessible location and condition for a
period of not less than six (6) years after final payment under this Agreement or
until any final audit has been fully completed, whichever is later.
9.2. Inspection and Audit. Recipient shall make available to PREAA, its employees
and authorized representatives, during regular business hours, or during such
other times as the Parties may mutually agree, all of the files, records, books,
invoices, documents, payrolls and other data required to be established and
maintained by Recipient under Section 9.1. Recipient herein authorizes PREAA,
its employees and authorized representatives to inspect, photograph, video-record,
audit, examine and make excerpts and transcripts from any of the foregoing. The
rights of PREAA pursuant to the second sentence of this Section shall remain in
effect so long as the Project equipment/systems shall remain installed in the
Facility, which shall not be less than five (5) years from its completion.
9.3. Recapture Period. As stated in the Regulation, GEF incentives recipients will be
required to comply with a recapture period of at least five (5) years. If the System
Owner removes the GEP from the Facility during this five (5) year period
(hereinafter "disqualifying event"), the GEF incentive payment must be repaid to
the GEF as follows: 100% of the payment must be repaid if the disqualifying
event takes place within one year from the date placed in service; 80% of the
payment must be repaid if the disqualifying event takes place after one year but
before two years from the date placed in service; 60% of the payment must be
repaid if the disqualifying event takes place after two years but before three years
from the date placed in service; 40% of the payment must be repaid if the
disqualifying event takes place after three years but before four years from the
date placed in service; and 20% ofthe payment must be repaid if the disqualifying
event takes place after four years but before five years from the date placed in
service.
App. A-9
9.4. Submitting False Claims; Monetary Penalties. Any Recipient or Authorized
Representative who submits a false claim to the GEF shall be liable to PREAA for
the amount of damages which PREAA sustains because of the false claim. A
Recipient who submits a false claim shall also be liable for the costs, including
attorney's fees, of a civil action brought to recover any of those damages. A
Recipient or Authorized Representative will be deemed to have submitted a false
claim to PREAA if s/he (a) knowingly presents or causes to be presented to an
officer or employee of PREAA a false claim or request for payment or approval;
(b) knowingly makes, uses, or causes to be made or used a false record or
statement to get a false claim paid or approved by PREAA; (c) conspires to
defraud PREAA or the Puerto Rico government by getting a false claim allowed
or paid by PREAA; (d) Imowingly makes, uses, or causes to be made or used a
false record or statement to conceal, avoid, or decrease an obligation to payor
transmit money or property to PREAA; or (e) is a beneficiary of an inadvertent
submission of a false claim to PREAA, subsequently discovers the falsity of the
claim, and fails to disclose the false claim to PREAA within a reasonable time
after discovery of the false claim.
Taxes
10.1. Recipient shall pay to the appropriate governmental authority, as and when due,
any and all taxes, fees, assessments or other governmental charges, including
property taxes and Puerto Rico sales and use taxes, levied upon or in connection
with this Agreement, the Project, the Incentive Payment or any of the activities
contemplated by this Agreement.
11. Indemnification and General Release of Liability
11.1. Indemnification. Each of Recipient and Authorized Representative, for itself and
their respective predecessors, successors and assigns, shall indemnify and save
harmless PREAA and its officers, agents and employees ("Indemnified Persons")
from, and, if requested, shall defend the Indemnified Persons against any and all
loss, cost, damage, injury, liability, and claims thereof for injury to or death of a
person, including Recipient and Authorized Representative, or loss of or damage
to property, arising directly or indirectly from (I) injury to or death of persons,
including but not limited to employees of PREAA, Recipient, Authorized
Representative or any third party; (2) injury to property or other interests of
PREAA, Recipient, Authorized Representative, or any third party; (3) violation of
local, state, or federal common law, statute, or regulation, including but not
limited to environmental laws or regulations; (4) strict liability imposed by any
law or regulation; or (5) generation system performance shortfall; so long as such
injury, violation, strict liability, or shortfall arises from or is in any way connected
with the Project, including Recipient's, Authorized Representative's or any third
party's performance or failure to perform with respect to the Project, however
caused, regardless of the negligence of, and regardless of whether liability without
fault is imposed or sought to be imposed on PREAA or any other Indenmified
Persons, except to the extent that such indemnity is void or otherwise
App. A-lO
unenforceable under applicable law in effect on or validly retroactive to the date
of this Agreement, and except where such loss, damage, injury, liability or claim
is the result of the willful misconduct of PREAA or any other Indemnified Person
and is not contributed to by any act of, or by any omission to perform some duty
imposed by law or agreement on Recipient, Authorized Representative, each of
their respective subcontractors or either's agent or employee. The foregoing
indemnity shall include, without limitation, reasonable fees of attorneys,
consultants and experts and related costs and Indemnified Person's costs of
investigating any claims against any of the Indemnified Persons.
11.2. Each of Recipient and Authorized Representative acknowledges that any claims,
demands, losses, damages, costs, expenses, and legal liability that arise out of,
result from, or are in any way connected with the release or spill of any hazardous
material or waste as a result of the work performed in connection with the Project
are expressly within the scope of this indemnity, and that the costs, expenses, and
legal liability for environmental investigations, monitoring, containment,
abatement, removal, repair, cleanup, restoration, remedial work, penalties, and
fines arising from strict liability, or violation of any local, state, or federal law or
regulation, attorney's fees, disbursements, and other response costs incurred as a
result of such releases or spills are expressly within the scope of this indemnity.
Duty to Defend; Notice of Loss
12.1. In addition to Recipient's and Authorized Representative's obligation to
indemnifY the Indemnified Persons, each of Recipient and Authorized
Representative specifically acknowledges and agrees that it has an immediate and
independent obligation to defend the Indemnified Persons from any claim which
actually or potentially falls within this indemnification provision, even if the
allegations are or may be groundless, false or fraudulent, which obligation arises
at the time such claim is tendered to Recipient or Authorized Representative by
PREAA and continues at all times thereafter.
12.2. No insurance policy covering the Recipient with regards to this Agreement shall
operate to limit the Recipient's and Authorized Representative's liability under
this provision. Nor shall the amount of insurance coverage operate to limit the
extent of such liability.
13. Limitation on PREAA's Liability
13.1. PREAA's payment obligations under this Agreement shall be limited to the
Incentive Payment. Notwithstanding any other provision of this Agreement, in no
event shall PREAA be liable, regardless of whether any claim is based on contract
or tort, for any special, consequential, indirect or incidental damages, including,
but not limited to, lost profits, arising out of or in connection with the GEF, the
Regulation, the Guide or this Agreement or PREAA's performance or
nonperfonnance of its obligations under this Agreement.
App. A-ll
14. Insurance
Recipient, directly or through Installers or System Owners must meet and maintain the same
policies of insurance required in OGPe Joint Permits Regulation for Construction Works and
Land Use (Joint Regulation), Title XII, Chapter 55, Rule 55.6(d). Policies shall be issued by
insurance companies authorized to do business in Puerto Rico, and to that effect they shall
provide, in original, certificates of insurance and endorsements, as follows:
(a) An endorsement including this Agreement under contractual liability coverage
and identifying it by number, date and the Parties.
(b) Waiver of Subrogation in favor of PREAA.
(c) The breach of any of the warranties or conditions in these policies by the
Applicant, Installer or System Owner, as applicable, shall not prejudice PREAA's
rights under the policies.
14.1. Additional Requirements for Coverage. The general liability insurance policies
shall:
14.1.1. Name as additional insured Recipient (if Installer is the main insured
party) and PREAA, using ISO Additional Insured Endorsement
CG 20 26 II 85 or a substitute providing equivalent coverage
14.1.2. Provide that such policies are primary insurance to any other insurance
available to the additional insureds, with respect to any claims arising out
of this Agreement, and that insurance applies separately to each insured
against whom claim is made or suit is brought, except with respect to
limits of liability.
14.1.3. Include hold harmless endorsement in favor of Recipient and PREAA.
14.2. Additional Requirements for All Policies. All policies shall be endorsed to
provide at least thirty (30) days' advance written notice to Recipient and PREAA
of cancellation of policy for any reason, nonrenewal or reduction in coverage and
specific notice mailed to PREAA at:
Puerto Rico Energy Affairs Administration
clo PRIDCO Insurance Office
#355 FD Roosevelt Avenue
Suite 404 Hato Rey, Puerto Rico 00918
TeI.787-758-4747
Fax: 787-764-1415
14.3. Continuance of Coverage. Failure to maintain insurance shall constitute a material
breach of this Agreement and may result in the cancelation of the Incentive
Payment.
14.4. Effect of Approval. Approval of any insurance by PREAA shall not relieve or
decrease the liability of Recipient hereunder.
App. A-12
14.5. Waiver. If the requirements of Sections 14.1 or 14.2 prevent the Recipient from
obtaining the insurance required in this Section, then upon Recipient's written
notice to PREAA, the requirements of Sections 14.1 or 14.2 may be waived.
15. Events of Default and Remedies
15.1. Events of Default. The occurrence of anyone or more of the following events
shall constitute an "Event of Default" under this Agreement:
15.1.1. False Statement. Any statement, representation or warranty contained in
this Agreement, in the application documents, Proposal, or in any other
document submitted to PREAA as part of the application process or
under this Agreement is found by PREAA to be false, misleading ,
altered or forged.
15.1.2. Failure to Provide Insurance. Recipient, or if applicable, the Contractor
responsible for installing the Project, fails to provide or maintain in
effect any policy of insurance required in Article 14 or as otherwise
acceptable to PREAA.
15.1.3. Failure to Perform. Recipient or Authorized Representative fails to
perform and complete the Project as specified in the application and
Proposal and as further required herein, or breaches any provision or
covenant of this Agreement to be observed as and when performance or
observance is due and such failure or breach continues for a period of ten
(10) days after receipt of written notice to cure from PREAA.
15.1.4. Failure to Comply with Program Rules. Failure to complete the Project
and comply with the Regulation, the Guide and any other requirement set
forth therein or herein, including but not limited to:
15.1.4.1 Failed permitting of the Project;
15.1.4.2 Failed inspection of the Project;
15.1.4.3 Completed Project is not consistent with application and
Proposal and it has not been modified in accordance with
Section 3.5 above;
15.1.4.4 Recipient combines the incentive under this Agreement with
other non-permitted grants, incentives or assistance;
15.1.4.5 Project is not pennanent;
15.1.4.6 Equipment or installers are not certified as required under the
Regulation;
15.1.4.7 Equipment is not new;
App. A-13
15.1.4.8 Recipient receives more than 100% of Total Project Costs
when incentives hereunder are combined with other federal or
state incentives;
15.1.4.9 Failure to interconnect;
15.1.4.10 Failure to show evidence of green jobs creation in accordance
with the Proposal; or
15.1.4.11 Failure to abide by any material Guide or Regulation
provisions.
15.2. Remedies upon Event of Default. Upon and during the continuance of an Event of
Default, PREAA may do any of the following, individually or in combination
with each other or any other remedy:
15.2.1. Termination. PREAA may terminate this Agreement by giving a written
termination notice to Recipient or Authorized Representative. On the
date specified in such notice this Agreement shall terminate and all rights
of Recipient hereunder shall be extinguished. The termination of this
Agreement shall not operate to discharge any liability which has been
incurred by Recipient or Authorized Representative prior to the effective
date of such termination. For the avoidance of doubt, PREAA shall not
be required to pay any Incentive Payment to the Recipient if the
Agreement is terminated because the Project fails to meet all the
requirements of the Regulation, the Guide and this Agreement.
15.2.2. Withholding of the Incentive Payment. PREAA may withhold all or any
portion of the Incentive Payment not yet disbursed hereunder, regardless
of whether Recipient has previously submitted an application for such
payment or whether PREAA has approved the disbursement of the
Incentive Payment requested in any application. Any Incentive Payment
withheld pursuant to this Section and subsequently disbursed to
Recipient after cure of applicable Events of Default shall be disbursed
without interest.
15.2.3. Ban. PREAA may ban Recipient, Authorized Representative and/or
System Owner from future participation under any of the GEF programs.
15.2.4. Offset. PREAA may offset against all or any portion of undisbursed
Incentive Payment hereunder or against any payments due to Recipient
under any other agreement between Recipient and PREAA the amount of
any outstanding loss incurred or suffered by PREAA, including any loss
incurred as a result of an Event of Default.
15.2.5. Return of the Incentive Payment. PREAA may demand the immediate
return of any previously disbursed Incentive Payment that has been
claimed or expended by Recipient in breach of the terms of this
App. A-14
Agreement, together with interest thereon from the date of disbursement
at the maximum rate permitted under applicable law.
15.3. Remedies Nonexclusive. Each of the remedies provided for in this Agreement
may be exercised individually or in combination with any other remedy available
hereunder or under applicable laws, rules and regulations. The remedies contained
herein are in addition to all other remedies available to PREAA at law or in equity
by statute or otherwise and the exercise of any such remedy shall not preclude or
in any way be deemed to waive any other remedy.
16. Notices and Other Communications
16.1. Requirements. Unless otherwise specifically provided herein, all notices,
consents, directions, approvals, instructions, requests and other communications
hereunder shall be in writing, shall be addressed to the person and address set
forth below and shall be (a) sent via electronic mail in accordance with the
provisions stated in the Regulation with respect to electronic communications,
(b) deposited in the U.S. mail, first class, certified with return receipt requested
and with appropriate postage, (c) hand delivered or (d) sent via facsimile (if a
facsimile number is provided below):
If to PREAA:
Puerto Rico Energy Affairs Administration
P.O. Box 41314
San Juan, P.R. 00940
Attn: Juan Carlos Diaz Galarza
Facsimile No. 787-999-2246
E-mail: jdiaz@aae.gobierno.pr
If to Customer:
PMB 725 P.O. Box 4960
Caguas, P.R., 00726
Attn: Javier Rojo Lopez
Facsimile No. 787-653-7110
E-mail: javier.rojo@wal-mart.com
App. A-IS
If to Authorized Representative:
District View Plaza Suite #301
644 Femiindez Juncos Ave.
San Juan 00907-3122
Attn: Edgardo Fiibregas
Facsimile No. N/A
E-mail: efabregas@sunedison.com
16.2. Effective Date. All communications sent in accordance with Section 16.1 shall
become effective on the date of receipt. Such date of receipt shall be determined
by: (a) date when electronic communication was sent; (b) if mailed, the return
receipt, completed by the U.S. postal service; (c) if sent via hand delivery, a
receipt executed by a duly authorized agent of the pmty to whom the notice was
sent; or (d) if sent via facsimile, the date of telephonic confirmation of receipt by
a duly authorized agent of the party to whom the notice was sent or, if such
confirmation is not reasonably practicable, the date indicated in the facsimile
machine transmission report ofthe party giving such notice.
16.3. Change of Address. From time to time any party hereto may designate a new
address for purposes of this Article 10 by notice to the other party.
17. Additional Requirements
17.1. No Previous Crimes. Neither Recipient nor Authorized Representative has been
convicted nor to the best of his/her knowledge, is under investigation by any
Puerto Rico or Federal administrative, judicial or legislative body, for crimes
against public funds, the public trust or related to the misuse of public property or
funds. Recipient has not been banned from receiving federal or Puerto Rico funds,
contracts or assistance.
17.2. Recipient and Authorized Representative each aclmowledges and agrees that it
has received a copy of Act No. 84 of June 18,2002 known as the Code of Ethics
of Contractors, Service Providers and Applicants for Economic Incentives from
the Agencies of the Govemment of Puerto Rico, included herein as Appendix B,
and has complied during the application process and will continue to comply with
this Code of Ethics at all times in connection with the Project and the Incentive
Payment by PREAA.
18. [Reserved]
19. Recipient and Authorized Representative Representations
19.1. Each of the undersigned Recipient and Authorized Representative represents and
declares under penalty of perjury under the laws of the Commonwealth of Puerto
Rico that:
App. A-16
19.1.1. S/he/it is duly authorized by all necessary action, to execute, deliver and
perform this Agreement, and has duly executed and delivered this
Agreement, which Agreement constitutes a legal, valid and binding
obligation of Recipient and Authorized Representative, enforceable
against each of Recipient and Authorized Representative in accordance
with the terms hereof;
19.1.2. The Project, when completed, will meet all GEF, Regulation and Guide
requirements;
19.1.3. The Project will be completed, inspected, new and intended to offset part
or all of the Recipient's electrical needs at the Facility;
19.1.4. The Project Site is located within Puerto Rico at the geographic location
specified in the Proposal and application documents;
19.1.5. No document furnished or to be fumished by Recipient or Authorized
Representative to PREAA in connection with the Proposal and related
application documents, this Agreement, or any other document relating
to any of the foregoing including its exhibits, schedules and other
documents or instruments delivered or to be delivered to PREAA,
electronically through this website or subsequently as part of any
information request as PREAA may require, contains or will contain any
untrue statement of material fact or omits or will omit a material fact
necessary to make the statements contained therein not misleading, under
the circumstances under which any such statement shall have been made;
19.1.6. The Recipient has the authority to install the Project at the Facility, or
has obtained the permission of the legal owner of the Facility, to install
the generating system;
19.1.7. The Proposal and application were presented voluntarily;
19.1.8. Authorized Representative was given full authority by Recipient and has
represented and will continue to represent Customer/Recipient with full
understanding of the binding nature of his/her actions on behalf of
Customer/Recipient, who is also informed of the binding authority of
Authorized Representative;
19.1.9. Authorized Representative has and will continue at all times to inform
Customer/Recipient of all communications received from PREAA;
19.1.10. Recipient and Authorized Representative have read, understand and
agree to be bound by the terms and conditions contained in the
Regulation, in the Reference Guides, in this Agreement and in the Tenns
and Conditions for the Website.
App. A-17
19.1.11. The Application and actions of Recipient and/or Authorized
Representative will not be in any respect fraudulent or collusive.
19.1.12. Recipient and Authorized Representative are aware that the Reservation
Guarantee and the Application Fee are non-refundable
20. Miscellaneous
20.1.
20.3.
20.4.
20.5.
No Assignment by Recipient. Recipient shall not, either directly or indirectly,
assign, transfer, hypothecate, subcontract or delegate all or any portion of this
Agreement or any rights, duties or obligations of Recipient hereunder without the
prior written consent of PREAA and in the circumstances stated in Section 8.2.4
hereof. This Agreement shall not, nor shall any interest herein, be assignable as to
the interest of Recipient involuntarily or by operation of law without the prior
written consent of PREAA. A change of ownership or control of Recipient or a
sale or transfer of substantially all of the assets of Recipient shall be deemed an
assignment for purposes of this Agreement. Any agreement made in violation of
this Section 20.1 shall confer no rights on any person or entity and shall
automatically be null and void.
No Waiver. No waiver by PREAA of any default or breach of this Agreement
shall be implied from any failure by PREAA to take action on account of such
default if such default persists or is repeated. No express waiver by PREAA shall
affect any default other than the default specified in the waiver and shall be
operative only for the time and to the extent therein stated. Waivers by PREAA of
any covenant, term or condition contained herein shall not be construed as a
waiver of any subsequent breach of the same covenant, term or condition. The
consent or approval by PREAA of any action requiring further consent or
approval shall not be deemed to waive or render unnecessary the consent or
approval to or of any subsequent similar act.
Modification. This Agreement may not be modified, nor may compliance with
any of its terms be waived, except by written instrument executed and approved in
the same manner as this Agreement.
Administrative Remedy for Agreement Interpretation. Should any question arise
as to the meaning or intent of this Agreement, the question shall, prior to any
other action or resort to any other legal remedy, be referred to the Executive
Director of PREAA who shall decide the true meaning and intent of the
Agreement. Such decision shall be final and conclusive.
Governing Law; Venue. The interpretation and performance under this
Agreement shall be governed by the laws of the Commonwealth of Puerto Rico,
without regard to its conflict of laws principles. The Parties voluntarily submit to
the Courts of the Commonwealth of Puerto Rico in San Juan.
App. A-18
20.6. Headings. All article and section headings and captions contained in this
Agreement are for reference only and shall not be considered in construing this
Agreement.
20.7. Entire Agreement. This Agreement, the Regulation and the Application
Documents set forth the entire Agreement between the parties, and snpersede all
other oral or written provisions. If there is any conflict between the terms of this
Agreement and the Application Documents, the terms of this Agreement shall
govern.
20.8. Severability. Should the application of any provision of this Agreement to any
particular facts or circumstances be found by a court of competent jurisdiction to
be invalid or unenforceable, then (a) the validity of other provisions of this
Agreement shall not be affected or impaired thereby, and (b) such provision shall
be enforced to the maximum extent possible so as to effect the intent of the parties
and shall be reformed without further action by the parties to the extent necessary
to make such provision valid and enforceable.
20.9. Successors; No Third-Party Beneficiaries. The terms of this Agreement shall be
binding upon, and inure to the benefit of, the parties hereto and their successors
and assigns. Nothing in this Agreement, whether express or implied, shall be
construed to give any person or entity (other than the parties hereto and their
respective successors and assigns and, in the case of Article 7, the Indemnified
Parties) any legal or equitable right, remedy or claim under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.
20.10. Survival of Terms. The obligations of Recipient and the terms of the following
provisions of this Agreement shall survive and continue following expiration or
termination of this Agreement: Sections 5,7,9, 11, 12, 13, 15.1.1, 15.1.4, 15.2.3,
15.2.4,15.2.5, and this Section 20.11.
App. A-19
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first spec' . herein.
RECIPIENT
Print Name' avier Rojo Lopez
_
AUTHORIZED P SENTATIVE
Print Name: Edgardo Fabregas
App. A-20
Appendix A
PROPOSAL, APPLICATION DOCUMENTS AND INCENTIVE RESERVATION
NOTICE
App. A-21
DEPARTMENT OF
ECONOMIC
DEVELOPMENTAND :. :.
COM MER C E .mIRE
Application No. 2011230013
GREEN ENERGY FUND PROGRAM
GOVERNMENT OF PUERTO RICO
Incentive Reservation Notice letter
For your Green Energy Fund application, a total of $638,000.00 has been reserved in the name of Javier Rojo for the
construction of a SOO kW solar energy system. The system will be installed at the address indicated below and shall
comply with the Green Energy Fund Program Regulation. The reservation will expire twelve (12) months from the
date of signing the Reservation Agreement. When the project is completed and inspected by the Puerto Rico Energy
Affairs Administration (PREAA), and upon compliance with the terms and conditions stated in the Reservation
Agreement, the payment will be made in your name or to whomever you assign in the Payment Assignment Form.
GEP Address:
Incentive Amount Criteria:
Sam's Club Barceloneta
1145 Carr. #2
Bo. Florida Afuera
Barceloneta, PR 00617
Incentive requested is less than 50% and under the reference cost.
Upon receiving this letter piease proceed to pay the Reservation Guarantee and obtain the insurance
coverage as required by the Regulation and Reference Guide.
Applicant has fifteen (15) business days to sign a Reservation Agreement with PREAA. Contact PREAA to
coordinate an appointment. if the Reservation Agreement is nat signed within this timeframe, your
Reservation will be cancelled.
If applicable, Authorized Representative must be present at the appointment and will aisa be required to
sign the Reservation Agreement.
Signature: Date:
AppendixB
C6digo de Etiea para Contratistas, Suplidores y
Solicitantes de Ineentivos Eeon6mieos de las Agencias Ejeeutivas del E.L.A.
LEY NUM. 84 DE 18 DE JUNIO DE 2002
Para establecer un C6digo de Etica para contratistas, proveedores de bienes y servicios, y
solicitantes de incentivos econ6micos de las agencias ejecutivas del Estado Libre Asociado de
Puerto Rico que regira las relaciones de toda persona, natural 0 juridica, que interese hacer
negocios con, proveer servicios a, 0 solicitar un incentivo econ6mico al Estado Libre Asociado
de Puerto Rico; imponer ciertos deberes y conceder ciertas facultades al Secretario de Justicia;
establecer sanciones y penalidades y para otros fines.
EXPOSICION DE MOTIVOS
El Pueblo de Puerto Rico exige que su gobiemo opere con honradez y transparencia, y
que las entidades gubemamentales funcionen bajo los estandares de integridad, probidad,
transparencia y eficiencia.
Durante los ultimos afios, en Puerto Rico aument6 la contrataci6n con la empresa privada
e servicios que tradicionalmente el gobierno, como Estado benefactor, brindaba a sus
ciudadanos. Esta practica era afin con la ideologia privatizadora que adopt6 el Estado para
reducir el gigantismo gubernamental y exponer a la competencia ciertos servicios bajo su tutela.
La politica de privatizaci6n supone la transferencia de funciones y responsabilidades, de forma
parcial 0 completa, del Estado al sector privado. Este proceso requiere, entre otros, la
reestructuraci6n y liberalizaci6n de la estructura reglamentaria y normativa. Con la privatizaci6n
se persigue incrementar la rentabilidad de los recursos publicos y lograr una administraci6n
publica agil y eficaz. No obstante, en Puerto Rico la experiencia con la privatizaci6n no ha sido
del todo positiva. La falta de prudencia de algunos funcionarios y empleados gubernamentales,
unida a la poca conciencia de algunos empresarios privados, ha provocado el descalabro
financiero y la ineficiencia en la prestaci6n de servicios fundamentales a los que todo ciudadano
tiene derecho.
La corrupci6n y falta de etica en las transacciones gubemamentales, ha alcanzado niveles
insospechados. Ello ocasion6 que cientos de miles y hasta millones de d6lares, de fondos
estatales como federales, aprovecharan a intereses privados y a funcionarios inescrupulosos que,
incumpliendo con sus funciones, violaron la confianza depositada en ellos y el mandato
constitucional de que "solo se utilizara la propiedad y fondos publicos para fines publicos".
Existe la necesidad de enfatizar como componentes principales de la politica publica del
Estado Libre Asociado de Puerto Rico el uso adecuado y eficiente de los recursos publicos, y la
erradicaci6n de la corrupci6n gubemamental, practicas que laceran la confianza de los
puertorriquefios en sus instituciones gubemamentales. Para que dicha politica publica sea
efectiva es necesaria la cooperaci6n activa, no s6lo de todos los servidores publicos, sino
tambien, de los ex servidores publicos y de la ciudadania.
App. B-1
Para impulsar la lucha contra la corrupci6n, es necesario formar una alianza entre el
Estado y la sociedad civil. En aras de alcanzar los objetivos propuestos, el Estado Libre
Asociado de Puerto Rico considera apremiante y necesario la creaci6n e implantaci6n de un
C6digo de Etica que rija las relaciones del gobiemo con sus contratistas, proveedores de
servicios y con aquellas entidades que reciben algun incentivo econ6mico.
El C6digo de Etica que se promulga mediante la presente Ley complementa las
disposiciones de la Ley Num. 12 de 24 de julio de 1985, segun emnendada, conocida como la
"Ley de Etica Gubernamenta1", la cua1 establece normas de conducta aplicables a servidores y ex
servidores publicos. Mediante este C6digo se requiere que los contratistas, los proveedores de
bienes y servicios y los solicitantes de incentivos se abstengan de llevar a cabo 0 participar en
conducta que directa 0 indirectamente implique que servidores 0 ex servidores publicos infrinjan
las disposiciones de la Ley de Etica Gubernamental.
Se aprueba la siguiente Ley con e1 prop6sito de contribuir a la transparencia, probidad e
integridad en los procesos de contrataci6n para el suministro de bienes y servicios con el
Gobierno del Estado Libre Asociado de Puerto Rico y sus Municipios, asi como enaltecer la
moral e incrementar las probabilidades de que los problemas eticos sean prevenidos, 0 en su
defecto, identificados y resueltos de una forma responsable e integra.
Cj
!0ECRETASEPOR LA ASAMBLEA LEG1SLATlVA DE PUERTO RICO:
Articulo 1.-Titulo corto
Esta Ley se conocera como el "C6digo de Etica para Contratistas, Suplidores, y
Solicitantes de Incentivos Econ6micos de las Agencias Ejecutivas del Estado Libre Asociado de
Puerto Rico".
frt- Articulo 2.-Declaraci6n de poJitica publica
Constituye la poJitica publica del Estado Libre Asociado de Puerto Rico atacar la
corrupci6n de forma energica y devolverle la confianza a nuestro pueblo en sus instituciones
gubernamentales. La adopci6n de un c6digo de etica para los contratistas, suplidores de bienes y
servicios, y solicitantes de incentivos econ6micos de las agencias ejecutivas, responde a la
necesidad de enfrentar todo posible acto de corrupci6n en las agencias y municipios del Estado
Libre Asociado de Puerto Rico. Con este c6digo, se establece un disuasivo adicional para frenar
cualquier intento de conducta contraria a la etica y a las normas de sana administraci6n publica.
Ellogro de una administraci6n gubernamental transparente, a la vez que eficiente,
constituye uno de los prop6sitos esenciales del Estado Libre Asociado de Puerto Rico, por 10 que
la creaci6n de este c6digo de etica sera un mecanismo util en el analisis fiscalizador de las
transacciones entre la empresa privada y el Estado.
Articulo 3.-Aplicabilidad
Este c6digo reglamenta la conducta de los contratistas y proveedores de bienes 0
servicios con las agencias ejecutivas del Estado Libre Asociado de Puerto Rico, asi como la de
los miembros de las entidades que reciben algun incentivo econ6mico por parte del gobierno y
App. B-2
los sectores a ser afectados por reglamentos promulgados por las agencias ejecutivas del Estado
Libre Asociado de Puerto Rico.
La aceptaci6n de las normas aqui establecidas es condici6n esencial e indispensable para
que estos 0 sus representantes puedan efectuar transacciones 0 establezcan convenios con las
agencias ejecutivas.
Articulo 4.-Definiciones
Para fines de esta Ley, las palabras 0 frases que a continuaci6n se enumeran tendriin el
significado que aqui se indica:
(a) Agencias ejecutivas: los organismos y entidades de la Rama ejecutiva del Estado Libre
Asociado de Puerto Rico, incluyendo a las corporaciones publicas, departamentos, agencias,
municipios e instrumentalidades del Estado Libre Asociado de Puerto Rico.
(b) Conflicto de intereses: situaci6n en la que el interes personal 0 econ6mico del servidor
publico, de personas relacionadas con este 0 del contratista 0 proveedor de servicios, estii 0
puede razonablemente estar en pugna con el interes publico.
(c) Contrato: pacto, convenio 0 negocio juridico en el que las partes se obligan a dar alguna
cosa, 0 en hacer 0 dejar de hacer determinado acto, y que es otorgado por el consentimiento de
los contratantes, en relaci6n a un objeto cierto, materia del contrato, yen virtud de la causa que
se establezca.
(d) Contribuci6n: cualquier pago, regalo, suscripci6n, comisi6n, concesi6n, beneficio,
propina, prestamo, adelanto, sobomo 0 cualquier promesa 0 acuerdo de concederlo.
(e) Empleado publico: persona que ocupa un cargo 0 estii empleada en el Estado Libre
Asociado de Puerto Rico y no estii investida con parte de la soberania del Estado, comprende a
los empleados publicos regulares e irregulares, los de nombramiento transitorio y los que se
encuentran en periodo probatorio.
(f) Ex servidor publico: persona que haya fungido como funcionario 0 empleado publico en
las agencias ejecutivas del Estado de Libre Asociado de Puerto Rico, en la Rama Legislativa 0 en
la Rama Judicial.
(g) Funcionario: persona investida con parte de la soberania del Estado, por 10 que interviene
en la fOlIDulaci6n e implantaci6n de politica publica, y ocupa un cargo, 0 estii empleada, en el
Estado Libre Asociado de Puerto Rico.
(h) Gobiemo: Estado Libre Asociado de Puerto Rico, sus corporaciones, instrumentalidades
y municipios.
(i) Ingreso: incluye ganancias, beneficios e ingresos derivados de sueldos, jornales 0
compensaci6n por servicios personales (incluyendo la retribuci6n recibida por servicios
prestados como funcionario 0 empleado del Estado Libre Asociado de Puerto Rico, de cualquier
estado de los Estados Unidos de America, 0 de cualquier subdivisi6n politica de los mismos, 0 de
App. B-3
cualquier agencia 0 instrurnentalidad de cualesquiera de las mencionadas entidades) de cualquier
clase y cualquiera que sea la forma en que se pagaren, 0 de profesiones, oficios, industrias,
negocios, comercio 0 ventas, 0 de operaciones en propiedad, bien sea mueble 0 inmueble, que
surjan de la posesi6n 0 usa 0 del interes en tal propiedad; tambien los derivados de intereses,
rentas, dividendos, beneficios de sociedades, valores 0 la operaci6n de cualquier negocio
explotado con fines de lucro 0 utilidad y ganancias 0 beneficios e ingresos derivados de
cualquier procedencia. No se considerani "ingreso" 0 "regalo" las contribuciones hechas a
organizaciones politicas 0 candidatos conforme a la autorizaci6n provista por las leyes
electorales vigentes.
CD Persona: persona natural, juridica, 0 grupos de personas 0 asociaciones, que interesen
entablar con las agencias ejecutivas una relaci6n contractual, comercial 0 financiera, 0 que han
perfeccionado un contrato para la prestaci6n de bienes 0 servicios con el Estado, asi como las
entidades que reciban 0 interesen recibir algun incentivo econ6mico de las agencias ejecutivas
del gobiemo. Incluye tambien a las personas naturales 0 juridicas que son, 0 vayan a ser,
afectadas por alguna reglamentaci6n establecida por las agencias ejecutivas del Estado Libre
Asociado de Puelio Rico.
(k) Rama Judicial: Tribunal General de Justicia y cualquier oficina 0 dependencia de este.
(I) Rama Legislativa: incluye a la Camara de Representantes, al Senado de Puerto Rico, la
Oficina del Contralor de Puerto Rico, la Oficina del Procurador del Ciudadano y cualquier
oficina 0 dependencia conjunta adscrita a los cuerpos legislativos.
(m) Regalo: pago 0 emiquecimiento sin una contraprestaci6n equivalente, 0 recibiendose una
de menor valor. Dadiva a titulo gratuito incluyendo, entre otros, dinero, bienes 0 cualquier
objeto, oportunidades econ6micas, propinas, concesi6n, beneficio, descuentos, 0 atenciones
especiales.
(n) Servidor publico: comprende a los funcionarios y a los empleados publicos.
(0) Unidad familiar: incluye al c6nyuge del servidor 0 ex servidor publico, a los hijos
dependientes de este, 0 aquellas personas que comparten con el servidor 0 ex servidor publico su
residencia legal, 0 cuyos asuntos financieros estan bajo el control de jure 0 de facto del servidor
o ex-servidor publico.
Articulo 5.-0bligaciones y Responsabilidades Eticas para los contratistas, proveedores de
servicios 0 bienes, y miembros de las entidades que reciben incentivos econ6micos de las
agencias ejecutivas y personas a ser afectadas por reglamentaci6n promulgada por las agencias
ejecutivas:
(a) Toda persona procurara un trato profesional y respetuoso para con los funcionarios 0
empleados publicos de las agencias ejecutivas, y exigira 10 mismo de estos en todo momento.
(b) Toda persona que en su vinculo con las agencias ejecutivas del Estado Libre Asociado de
Puerto Rico participe de licitaciones en subastas, Ie presente cotizaciones, interese perfeccionar
contratos con elias 0 procure recibir la concesi6n de cualquier incentivo econ6mico, tendra la
App. B-4
obligaci6n de divulgar toda la informaci6n necesaria para que las agencias ejecutivas puedan
evaluar detalladamente las transacciones y efectuar determinaciones correctas e informadas.
(c) Toda persona debeni observar las maximas y los principios de excelencia y honestidad
que cobijan a su profesi6n, ademas de las normas 0 canones eticos de la Asociaci6n 0 Colegio al
cual pertenece y que reglamenta su oficio 0 profesi6n, tanto en la relaci6n con sus competidores
como con el Estado Libre Asociado de Puerto Rico. En el caso de personas que no pertenezcan a
un Colegio 0 Asociaci6n, 0 en el caso de asociaciones y colegios que no posean un canon de
etica para sus miembros, deberan observar los principios generales de conducta etica que se
consideran razonables en su profesi6n u oficio.
(d) Toda persona cotizara a base de precios justos por sus servicios, considerando la
experiencia, la preparaci6n academica y los conocimientos tecnicos; en los acuerdos de
suministros de bienes se debera considerar la calidad de los bienes. Se comprometera a realizar
sus trabajos dentro del termino pautado, a garantizar la calidad de sus servicios y los bienes que
suministra, y a cobrar por sus servicios mediante la presentaci6n de una factura en la que se
certifique su correcci6n, que los servicios fueron prestados en su totalidad 0 los bienes
entregados dentro del tiempo limite establecido, y que no se ha recibido compensaci6n por los
mismos. Toda factura para el cobro de bienes 0 servicios que se presente ante las agencias
ejecutivas debera contener la siguiente certificaci6n: "Bajo pena de nulidad absoluta certifico que
ningun servidor publico de la entidad gubernamental es parte 0 tiene algun interes en las
ganancias 0 beneficios producto del contrato objeto de esta factura y de ser parte 0 tener interes
en las ganancias 0 beneficios productos del contrato ha mediado una dispensa previa. La ilnica
consideraci6n para suministrar los bienes 0 servicios objeto del contrato ha sido el pago acordado
con el representante autorizado de la entidad gubernamental. El importe de esta factura es justo y
correcto. Los trabajos han sido realizados, los productos han sido entregados y los servicios han
sido prestados, y no se ha recibido pago por ellos."
(e) Ninguna persona ofrecera 0 entregara a servidor publico 0 ex-servidor publico de las
agencias ejecutivas, 0 miembros de la unidad familiar de estos, con la que interese establecer, 0
haya establecido, una relaci6n contractual, comercial 0 financiera, directa 0 indirectamente,
bienes de valor monetario, contribuciones, regalos, gratificaciones, favores, servicios, donativos,
prestamos, 0 participaci6n en alguna entidad mercantil 0 negocio juridico. En los casos que se
refieren a ex servidor publico la anterior prohibici6n se extendera por un (1) ano a partir del cese
de sus funciones en la agencia ej ecutiva. Esta obligaci6n se extiende a la etapa previa y posterior
ala perfecci6n del contrato, negocio 0 transacci6n, as! como ala duraci6n del mismo.
(f) Toda persona colaborara con cualquier investigaci6n que inicie el gobierno sobre
transacciones de negocios, otorgaci6n de contratos 0 concesi6n de incentivos gubernamentales
del cual fue parte 0 se benefici6 directa 0 indirectamente.
(g) Ninguna persona intervendra en asuntos que puedan desembocar en un conflicto de
intereses 0 que tengan apariencia de serlo.
(h) Toda persona esta obligada a denunciar aquellos actos que esten en violaci6n de este
c6digo, que constituyan actos de corrupci6n, 0 se configuren en delitos constitutivos de fraude,
soborno, malversaci6n 0 apropiaci6n ilegal de fondos, y de los que tenga propio y personal
App. B-5
conocimiento, que atafien a un contrato, negocio, 0 transacci6n entre el gobierno y un contratista,
proveedor de bienes y servicios 0 participantes de incentivos econ6micos. Los denunciantes
estaran protegidos al amparo de la Ley Nfun. 426 de 7 de noviembre de 2000, segun enmendada,
y la Ley Num. 14 de 11 de abril de 2001, segun enmendada.
(i) Ninguna persona que haya participado activamente en campafias politicas podra entablar
gestiones con los Secretarios, Jefes de Agencias, Ejecutivos Municipales, 0 Directores Ejecutivos
de Corporaciones Publicas, conducentes a la concesi6n indebida de ventajas, privilegios 0
favores para el beneficio de estos, 0 de cualquier otra persona, representados por estos. Tampoco
se podran requerir los servicios de personas que hayan participado activamente en campafias
politicas para los fines antes referidos.
(j) Ninguna persona utilizara la informaci6n confidencial, adquirida en el curso 0 como
consecuencia de alguna gesti6n que Ie haya sido encomendada mediante contrato por el Estado
Libre Asociado de Puerto Rico, para fines ajenos a la encomienda contratada, ni para obtener,
directa 0 indirectamente, ventaja 0 beneficia econ6mico para 61, para un miembro de su unidad
familiar 0 para cualquier otra persona, negocio 0 entidad.
(k) Ninguna persona solicitara u obtendra de un servidor 0 ex servidor publico, informaci6n
confidencial, con el prop6sito de obtener, directa 0 indirectamente, ventaja 0 beneficio
econ6mico para 61 0 para cualquier otra persona natural 0 jurldica; nl para fines ajenos a la
encomienda contratada.
(I) Ninguna persona aceptara 0 mantendra relaciones contractuales 0 de negocio con un
servidor publico, 0 miembro de su unidad familiar, que tenga el efecto de menoscabar la
independencia de criterio del funcionario 0 empleado publico en el desempefio de sus funciones
oficiales. Se Ie prohlbe a toda persona aceptar 0 mantener relaciones contractuales 0 de negocio
con ex servidores publicos durante un (I) ano a partir del momenta en que hayan dejado de
ocupar sus cargos, si en el desempeno de sus funciones gubernamentales participaron
directamente en transacciones entre las agencias ejecutivas y la persona.
(m) Ninguna persona podra contratar con las agencias ejecutivas si existe algun conflicto de
intereses. Toda persona debera certificar que no representa intereses particulares en casos 0
asuntos que impliquen conflicto de intereses, 0 de politica publica, entre la agencia ejecutiva y
los intereses particulares que represente.
(n) Ninguna persona podra solicitar, directa 0 indirectamente, que un funcionario 0 empleado
publico represente sus intereses privados, realice esfuerzos 0 ejerza lnfluencia para obtener un
contrato, el pago de una rec1amaci6n, un permiso, licencia 0 autorizaci6n, 0 en cualquier otro
asunto, transacci6n 0 propuesta en la cual dicha persona 0 su unidad familiar tenga intereses
privados, aun cuando se trate de actuaciones oficiales del funcionario 0 empleado publico dentro
del ambito de su autoridad oficial.
(0) Ninguna persona inducira a un servidor 0 exservidor publico, a incumplir las
disposiciones de la Ley Num. 12 de 24 de julio de 1985, segun enmendada, conocida como "Ley
de Etica Gubernamental del Estado Libre Asociado de Puerto Rico".
App. B-6
(P) Toda persona que haya sido convicta por delitos contra el erario, la fe publica, 0 que
involucren el mal uso de los fondos 0 propiedad publica estara inhabilitada de contratar 0 licitar
con cualquier agencia ejecutiva del Estado Libre Asociado de Puerto Rico conforme a los
periodos dispuestos en la Ley Nilm. 458 de 29 de diciembre de 2000, segun enmendada. Todo
contrato debera inc1uir una c1ausula de resolucion en caso de que la persona que contrate con las
agencias ejecutivas resultare convicto, en la jurisdiccion estatal 0 federal, por alguno de los
delitos enumerados. En los contratos se certificara que la persona no ha sido convicta, en la
jurisdiccion estatal 0 federal, por ninguno de los delitos antes mencionados. El deber de informar
sera de naturaleza continua durante todas las etapas de contratacion y ejecucion del contrato.
Articulo 6.-Contratos
Sera requisito indispensable que toda persona se comprometa a regirse por las
disposiciones de este Codigo de Etica. Tal hecho se hara constar en todo contrato entre las
agencias ejecutivas y contratistas 0 suplidores de servicios, yen toda solicitud de incentivo
economico provisto por el gobiemo.
Articulo 7.-Procedimiento
Le corresponde a cada agencia ejecutiva del Estado Libre Asociado de Puerto Rico velar
por el cnmplimiento de 10 dispuesto en el Codigo de Etica que aqui se establece.
Las violaciones a las disposiciones de este codigo serlin ventiladas ante los foros
administrativos de las agencias ejecutivas en conformidad a 10 dispuesto por la Ley Nilm. 170 de
12 de agosto de 1988, segiln enmendada, conocida como la "Ley de Procedimiento
Administrativo Uniforme del Estado Libre Asociado de Puerto Rico".
Cuando la agencia ejecutiva determine que la persona ha incumplido alguna de las
obligaciones 0 deberes impuestos por el Codigo de Etica, requerira de esta que en un termino de
veinte (20) dias, desde el recibo de dicha notificacion, muestre causa por la cualla agencia no
deba iniciar los tramites conducentes a imponer las sanciones contempladas en el Articulo 9 de
esta Ley.
Cumplido el tramite procesal tipificado por la normativa administrativa, la agencia
ejecutiva notificara su decision a la persona, la cual podra solicitar reconsideracion 0 acudir en
revision judicial de conformidad con las Secciones 3.15 y 4.2 de la Ley Num. 170 de 12 de
agosto de 1988, segun enmendada, conocida como "Ley de Procedimiento Administrativo
Uniforme del Estado Libre Asociado de Puerto Rico".
Articulo 8.-Publicidad
Se ordena a las agencias ejecutivas a notificar al Secretario de Justicia de toda orden 0
resolucion final que recaiga por violaciones al Codigo de Etica para Contratistas, Suplidores, y
Solicitantes de Incentivos Economicos de las Agencias Ejecutivas del Estado Libre Asociado de
Puerto Rico, para que se publique y se inscriba constancia fidedigna de la penalidad en el
Registro Publico que para situaciones analogas instituye la Ley Num. 458 de 29 de diciembre de
2000, segun enmendada.
App. B-7
Articulo 9.-Sanciones
El incumplimiento por parte de cualquier persona de las disposiciones del presente
C6digo de Etica sera causa suficiente para que el Estado Libre Asociado de Puerto Rico, a traves
del Secretario de Justicia, pueda rec1amar, al amparo de la Ley Num. 36 de 13 de junio de 2001,
seglin enmendada, hasta el triple del dafio causado al erario.
Toda persona incursa por infracciones a este C6digo quedara inhabilitada de contratar
con cualquier agencia ejecutiva del Estado Libre Asociado de Puerto Rico por un periodo de diez
(10) afios, contados a partir de la fecha en que fue emitida la orden 0 resoluci6n final.
Las sanciones impuestas por esta Ley no exc1uyen la imposici6n de cualquier otra
sanci6n 0 medida disciplinaria que determine la Asociaci6n 0 Colegio Profesional al que
pertenezca el contratista. Tampoco impide la imposici6n de sanciones penales por la
participaci6n en un acto constitutivo de delito en contra de la funci6n publica 0 del erario.
Articulo 10.-C6digo de Etica para contratistas de las Ramas Judicial y Legislativa:
Dentro de un afio a partir de la vigencia de esta Ley, cada una de las camaras de la Rama
Legislativa y la Rama Judicial, asi como, la Oficina del Contralor, la Oficina del Procurador del
Ciudadano (Ombudsman), y cualquier oficina 0 dependencia adscrita a los cuerpos legislativos,
deberan aprobar C6digos de Etica para contratistas, proveedores de bienes y servicios, 0
enmiendas a la reglamentaci6n en vigor incorporando los principios aqui enunciados, en
protecci6n del interes publico y de conformidad con la politica publica del Estado Libre
Asociado de Puerto Rico que por la presente se adopta.
Articulo ll.-Clausula de salvedad
Si alguna disposici6n, articulo 0 parte de esta Ley fuera dec1arada inconstitucional por
sentencia judicial, no se afectaran ni se invalidaran las restantes disposiciones de la misma y el
efecto de tal sentencia estara limitado a dicha disposici6n, articulo 0 parte de la Ley.
Articulo 12.-Vigencia
Esta Ley comenzara a regir inmediatamente despues de su aprobaci6n, para que se
notifique a todas las agencias e instrumentalidades del Gobierno e1 texto final aprobado en este
proyecto para que tomen providencia las distintas agencias gubernamentales con la intenci6n de
esta Ley.
App. B-8
/
Appendix C
SWORN STATEMENT

/,-- ,
The undersigned b ~ , oflegal age, -7'''-'''--'F.=-----;
stalus), and resident of,~ i ; , hereby declare
follows:
1. That my personal circumstances are as above stated.
2. That I have never been convicted under any federal, state, foreign or Puerto Rico laws
in connection with any of the crimes listed in Act No. 458 of December 29,2000, as amended by
Act No. 428 of September 22, 2004, or the equivalent crimes in the applicable jurisdiction, which
crimes involve fraud, embezzlement or illegal appropriation of public funds, nor has any ofthe
abovementioned pled guilty for the comruission of any such crimes, including but not limited to
the following:
a. Aggravated illegal appropriation of goods in all its modalities;
b. Extortion;
c. Fraud in the execution of construction projects;
. Fraud in the delivery of goods;
e. Undue intervention in procurement processes or awarding of bid contracts or in
government operations;
f. Bribery in any of its modalities;
g. Aggravated bribery;
h. Offer to bribe;
i. Undue influence;
j. Crimes against public funds;
k. Preparation of false documents;
1. Presentation of false documents;
m. Falsification of documents;
n. Possession or delivery of false documents;
3. That I am not under investigation under any federal, state, foreign or Puerto Rico laws,
nor by any legislative, judicial or administrative entity in any ofthese jurisdictions for the alleged
commission of the abovementioned crimes.
4/3 Affidavit No.
4. The above stated is true to the best of my knowledge and belief and is submitted in
compliance with Act No. 458 of December 29, 2000, as amended by 428 of September 22, 2004
with all the legal effects it carnes.
n ~ { teditw,thiS
2012. - . ~
~ ~
Appendix C
SWORN STATEMENT
The to ') s (ZA I.'>lof legal age, \iIAOVV"e J (marital
status), and resident , declare under oath as
follows:
1. That my personal circumstances are as above stated,
2. That 1have never been convicted under any federal, state, foreign or Puerto Rico
laws in connection with any of the crimes listed in Act No. 458 of December 29, 2000, as
amended by Act No. 428 of September 22, 2004, or the equivalent crimes in the applicable
jurisdiction, which crimes involve fraud, embezzlement or illegal appropriation of public funds,
nor has any of the abovementioned pled guilty for the commission of any such crimes, including
but not limited to the following:
a. Aggravated illegal appropriation of goods in all its modalities;
b. Extortion;
c. Fraud in the execution of construction projects;
d. Fraud in the delivery of goods;
e. Undue intervention in procurement processes or awarding of bid contracts
or in government operations;

f. Bribery in any of its modalities;
g. Aggravated bribery;
h. Offer to bribe;
i. Undue influence;
j. Crimes against public funds;
k. Preparation of false documents;
I. Presentation of false documents;
m, Falsification of documents;
n. Possession or delivery of false documents;
App. Col
3. That I am not under investigation under any federal, state, foreign or Puerto Rico
laws, nor by any legislative, judicial or administrative entity in any of these jurisdictions for the
alleged commission of the abovementioned crimes.
4. The above stated is true to the best of my knowledge and belief and is submitted
in compliance with Act No. 458 of December 29, 2000, as amended by 428 of September 22,
2004 with all the leAl effects it carries.
InStil)
2l
('-
)
Affidavit No. GlL.-
,9ircun;jstances, w
"'CIA 'J4f iI\ ,
App. C-2

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11...
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Notary Public,