First Amendment to Membership Interest Purchase Agreement



 Exhibit 10.38 
 FIRST AMENDMENT TO MEMBERSHIP INTEREST PURCHASE AGREEMENT 
 THIS FIRST AMENDMENT TO MEMBERSHIP
INTEREST PURCHASE AGREEMENT (this “Amendment”) is made and entered into as of December 29, 2006, by and between DQE FINANCIAL CORP., a Delaware corporation (“Seller”), and BLUE WOLF ENERGY HOLDINGS LLC, a
Delaware limited liability company (“Purchaser”). 
 RECITALS: 
 WHEREAS, Seller and Purchaser are parties to that certain Membership Interest Purchase Agreement dated as of November 22, 2006 relating to Montauk
Energy Capital, LLC (the “Purchase Agreement”); 
 WHEREAS, prior to the Closing, Seller and Purchaser desire to update
certain of the schedules to the Purchase Agreement, reduce the Unadjusted Purchase Price, and amend the mechanism for determining the Preliminary Purchase Price; and 
 WHEREAS, prior to the Closing, Seller and Purchaser desire to amend the Purchase Agreement to reflect the items described above, all upon the terms and conditions set forth below. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the Parties, intending to be legally bound hereby, agree as
follows: 
 1. Defined Terms. Capitalized terms used but not defined herein have the meanings ascribed to them in the Purchase
Agreement. 
 2. Update of Schedules. The Parties hereby agree to restate Schedule 4.2, Schedule 4.4, Schedule 4.6(a), Schedule 4.8,
Schedule 4.20, Schedule 4.21 and Schedule 8.15 of the Purchase Agreement and to replace such schedules, respectively, with the schedules attached hereto as Exhibit A marked as “Schedule 4.2,” “Schedule 4.4,” “Schedule
4.6(a),” “Schedule 4.8,” “Schedule 4.20,” “Schedule 4.21” and “Schedule 8.15.” 
 3. Purchase
Price Adjustment. The definition of “Unadjusted Purchase Price” in Section 1.1 of the Purchase Agreement is hereby reduced by $4,500,000 (i.e., from $116,600,000 to $112,100,000). In consideration of such reduction, Purchaser
hereby waives any right to make an indemnification claim against Seller or its Affiliates in connection with or relating to (i) the cost of insurance relating to the Companies’ ownership of approximately 53 vehicles; (ii) the cost of
the Companies’ errors and omissions (E&O) insurance; or (iii) delays in the improved cash flow from operations generated by Magellan-Montauk LFG, LLC. 
 4. Put Amendments. 
 (a) Section 1.1 of the Purchase Agreement is hereby amended
by adding the following defined terms thereto: 
 ““Put Purchase Price” means $17,000,000.”








 (b) Section 2.6(b)(iv) of the Purchase Agreement is hereby amended in its entirety
to read as follows: 
 “(iv) Put Options. The portion of the Purchase Price payable at the Closing pursuant to
Section 2.3 hereof will be reduced, on a dollar-for-dollar basis, by fifty percent (50%) of the Put Purchase Price.” 
 6.
No Other Amendment. All other provisions of the Purchase Agreement not specifically referenced in this Amendment shall remain in full force and effect. 
 7. Entire Agreement. The Purchase Agreement, as amended by this Amendment, constitutes the entire agreement between the Parties with respect to the subject matter thereof and together supersede all prior
agreements and understandings, whether oral or written, between the Parties with respect to the subject matter thereof. 
 8. Governing
Law. This Amendment shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without regard to its conflicts of law principles. 
 9. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall, when executed, be deemed to be an original and
all of which shall be deemed to be one and the same instrument. Signatures on this Amendment transmitted by facsimile shall be deemed to be original signatures for all purposes of this Amendment. 
 [Signature page follows] 
  

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

			
	DQE FINANCIAL CORP.
		
	By:	 	 /s/ John R. Schmitt

		 	John R. Schmitt, Vice President
	
	BLUE WOLF ENERGY HOLDINGS LLC
		
	By:	 	  

		 	Adam Blumenthal, Manager









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

			
	DQE FINANCIAL CORP.
		
	By:	 	  

		 	John R. Schmitt, Vice President
	
	BLUE WOLF ENERGY HOLDINGS LLC
		
	By:	 	 /s/ Adam Blumenthal

		 	Adam Blumenthal, Manager