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FIRST AMENDMENT TO THE AGREEMENT AND
PLAN OF MERGER

This First Amendment the Agreement and Plan of Merger (the “Amendment”) is
entered into as of October 4, 2006 to be effective as of August 23, 2006, by and
among Solar Power, Inc., a California corporation (“SPI”) , Welund Fund, Inc., a
Nevada corporation (the “Company”) and Welund Acquisition Corp., a Nevada
corporation and a wholly-owned subsidiary of the Company (the “Merger Sub”).
SPI, Company and Merger Sub also collectively referred to herein as the
“Parties.”
 
RECITALS

WHEREAS, SPI, the Company and the Merger Sub are parties to that certain
Agreement and Plan of Merger dated August 23, 2006 (the “Merger Agreement”).

WHEREAS, SPI, the Company and the Merger Sub desire to amend the Merger
Agreement to extend the final date to November 30, 2006, or as otherwise
extended by mutual consent thereafter.

WHEREAS, the capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Merger Agreement

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing premises, the mutual
agreements set forth below, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereby
agree as follows:

1.   Final Date. The last sentence of Section 10.1 of the Merger Agreement is
hereby amended as follows:

“As used herein, the “Final Date” shall be November 30, 2006 or as otherwise
extended by mutual consent.”

2.   Effect of Amendment. Except as expressly modified by the provisions hereof,
the Merger Agreement is in all respects ratified and confirmed, and shall
continue in full force and effect in accordance with its terms. To the extent
that there are any inconsistencies between this Amendment and the Merger
Agreement, the terms and provisions of this Amendment shall prevail.

3.   Entire Agreement. The Merger Agreement and this Amendment, taken as a
whole, shall supersede any and all agreements, either oral or written, between
the Parties with respect to its subject matter.
 
4.   Counterparts. This Amendment may be executed in one or more counterparts
(including by facsimile) each of which when so executed will be deemed an
original and all of which, when taken together, will constitute one and the same
agreement.
 

 
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IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date
first above written.

 
SOLAR POWER, INC., a California corporation
 
     
By: /s/ Stephen C. Kircher                                                      
     
Name: Stephen C. Kircher                                                      
     
Title:Chairman and Chief Executive Officer                             
         
WELUND FUND, INC., a Nevada corporation
 
     
By: /s/ Terrell W.
Smith                                                           
 
 
Name: Terrell W. Smith                                                          
 
 
Title: Vice
President                                                                
 
     
WELUND ACQUISITION CORP., a Nevada corporation
 
     
By: /s/ Terrell W.
Smith                                                           
 
 
Name: Terrell W. Smith                                                          
 
 
Title:
President                                                                        

 
 
 
 
 
 
 
 
 
 
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