Document:

Exhibit 4.3

 

NRG YIELD OPERATING LLC

 

$500,000,000 5.375% Senior Notes Due 2024

 

REGISTRATION RIGHTS AGREEMENT

 

 

NRG YIELD OPERATING LLC

 

5.375% Senior Notes due 2024

 

REGISTRATION RIGHTS AGREEMENT

 

August 5, 2014

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
      As Representative of the Initial Purchasers
 One Bryant Park
 New York, New York  10036

 

Ladies and Gentlemen:

 

NRG Yield Operating LLC, a limited liability company organized under the laws of Delaware (the “Company”), proposes to issue and sell to the several parties in Schedule I hereto (each, an “Initial Purchaser” and collectively, the “Initial Purchasers”) for whom you (the “Representative”) are acting as representative, $500,000,000 principal amount of its 5.375% Senior Notes due 2024 (the “Notes”), upon the terms set forth in a purchase agreement (the “Purchase Agreement”) dated as of July 31, 2014, among the Representative, NRG Yield, Inc., the Company, NRG Yield LLC (“Yield LLC”) and the guarantors listed on the signature pages thereto (the “Guarantors” and together with the Company and Yield LLC, the “Issuers”) relating to the initial placement of the Notes (the “Initial Placement”).  The Company’s obligations under the Notes and the Indenture (as defined below) will be jointly and severally, unconditionally guaranteed (the “Guarantees”), on a senior basis, by Yield LLC and the Guarantors.  The Notes and the Guarantees are herein referred to as the “Securities.” The Securities are to be issued under an indenture, dated the date hereof (the “Indenture”), between the Company, Yield LLC, the Guarantors and Law Debenture Trust Company of New York, as trustee (the “Trustee”).  To induce the Representative to enter into the Purchase Agreement and to satisfy a condition of your obligations thereunder, the Issuers agree with you for your benefit and the benefit of the holders from time to time of the Securities and Exchange Notes (including the Initial Purchasers) (each a “Holder” and, together, the “Holders”), as follows:

 

1.              Definitions.  Capitalized terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement.  As used in this Agreement, the following capitalized defined terms shall have the following meanings:

 

 

“Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Affiliate” shall have the meaning specified in Rule 405 under the Act and the terms “controlling” and “controlled” shall have meanings correlative thereto.

 

“Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

 

“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City.

 

“Closing Date” shall mean the date of the first issuance of the Securities.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Deferral Period” shall have the meaning indicated in Section 4(l) hereof.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Exchanging Dealer” shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for Exchange Notes any Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from any Issuer or any Affiliate of any Issuer) for Exchange Notes.

 

“Exchange Notes” shall mean debt securities of the Issuers identical in all material respects to the Securities (except that the transfer restrictions shall be modified or eliminated, as appropriate) to be issued under the Exchange Notes Indenture.

 

“Exchange Notes Indenture” shall mean an indenture among the Issuers and the Exchange Notes Trustee, identical in all material respects to the Indenture (except that the transfer restrictions shall be modified or eliminated, as appropriate), which may be the Indenture if in the terms thereof appropriate provision is made for the Exchange Notes.

 

“Exchange Notes Trustee” shall mean a bank or trust company reasonably satisfactory to the Representative, as trustee with respect to the Exchange Notes under the Exchange Notes Indenture.

 

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“Exchange Offer” shall mean the proposed offer of the Issuers to issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of the Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the Exchange Notes.

 

“Exchange Offer Registration Period” shall mean the one-year period following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement.

 

“Exchange Offer Registration Statement” shall mean a registration statement of the Issuers on an appropriate form under the Act with respect to the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“Final Offering Memorandum” shall have the meaning set forth in the Purchase Agreement.

 

“FINRA Rules” shall mean the Conduct Rules and the By-Laws of the Financial Industry Regulatory Authority.

 

“Guarantees” shall have the meaning set forth in the preamble hereto.

 

“Guarantors” shall have the meaning set forth in the preamble hereto.

 

“Holder” shall have the meaning set forth in the preamble hereto.

 

“Indenture” shall have the meaning set forth in the preamble hereto.

 

“Initial Placement” shall have the meaning set forth in the preamble hereto.

 

“Initial Purchasers” shall have the meaning set forth in the preamble hereto.

 

“Issuers” shall have the meaning set forth in the preamble hereto.

 

“Losses” shall have the meaning set forth in Section 6(d) hereof.

 

“Majority Holders” shall mean, the Holders of a majority of the aggregate principal amount of Securities and Exchange Notes registered under a Registration Statement.

 

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“Managing Underwriters” shall mean the investment banker or investment bankers and manager or managers that administer an underwritten offering, if any, under a Registration Statement.

 

“Notes” shall have the meaning set forth in the preamble hereto.

 

“Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

 

“Prospectus” shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Securities or the Exchange Notes covered by such Registration Statement, and all amendments and supplements thereto, including any and all exhibits thereto and any information incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble hereto.

 

“Registrable Securities” shall mean each of the Notes (and the related Guarantee) until the earliest to occur of: (A) the date on which such Note (and the related Guarantee) has been exchanged by a Person other than a Broker-Dealer for an Exchange Note in the Exchange Offer; (B) following the exchange by a Broker-Dealer in the Exchange Offer of a Note (and the related Guarantee) for an Exchange Note, the date on which such Exchange Note is sold to a purchaser who receives from such Broker-Dealer on or prior to the date of such sale a copy of the Prospectus contained in the Exchange Offer Registration Statement; (C) the date on which such Note (and the related Guarantee) has been effectively registered under the Act and disposed of in accordance with the Shelf Registration Statement; or (D) the date on which such Note (and the related Guarantee) is actually sold pursuant to Rule 144 under the Act; provided that a Note will not cease to be a Registrable Security for purposes of the Exchange Offer by virtue of this clause (D).

 

“Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the Exchange Notes pursuant to the provisions of this Agreement, any amendments and supplements to such registration statement, including post-effective amendments (in each case including the Prospectus contained therein), all exhibits thereto and all material incorporated by reference therein.

 

”Representative” shall have the meaning set forth in the preamble hereto.

 

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“Securities” shall have the meaning set forth in the preamble hereto.

 

“Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

 

“Shelf Registration Period” shall have the meaning set forth in Section 3(c) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuers pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or Exchange Notes, as applicable, on an appropriate form under Rule 415 under the Act, or any similar rule that may be adopted by the Commission, amendments and supplements to such registration statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein.

 

“Special Interest” shall have the meaning set forth in Section 8 hereof.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Trustee” shall have the meaning set forth in the preamble hereto.

 

“underwriter” shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement.

 

2.              Exchange Offer.

 

(a)         Unless the Exchange Offer would not be permitted by applicable law or Commission policy, the Issuers will:

 

(i)                                     use all commercially reasonable efforts to cause to be filed with the Commission, after the Closing Date, a Registration Statement; and

 

(ii)                                  use all commercially reasonable efforts to cause such Registration Statement to become effective under the Act within 365 days of the Closing Date.

 

(b)         Upon the effectiveness of the Exchange Offer Registration Statement, unless the Exchange Offer would not be permitted by applicable law or Commission policy, the Issuers shall promptly commence the Exchange Offer.

 

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(c)          In connection with the Exchange Offer, the Issuers shall:

 

(i)                                     mail to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents;

 

(ii)                                  keep the Exchange Offer open for not less than 20 Business Days and not more than 30 Business Days after the date notice thereof is mailed to the Holders (or, in each case, longer if required by applicable law);

 

(iii)                               use their best efforts to keep the Exchange Offer Registration Statement continuously effective, supplemented and amended as required, under the Act in order to ensure that it is available for sales of Exchange Notes by Exchanging Dealers during the Exchange Offer Registration Period;

 

(iv)                              utilize the services of a depositary for the Exchange Offer with an address in the Borough of Manhattan in New York City, which may be the Trustee, the Exchange Notes Trustee or an Affiliate of either of them;

 

(v)                                 permit Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on which the Exchange Offer is open;

 

(vi)                              prior to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Issuers are conducting the Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the Issuers have not entered into any arrangement or understanding with any Person to distribute the Exchange Notes to be received in the Exchange Offer and that, to the best of the Issuers’ information and belief, each Holder participating in the Exchange Offer is acquiring the Exchange Notes in the ordinary course of business and has no arrangement or understanding with any Person to participate in the distribution of the Exchange Notes; and

 

(vii)                           comply in all respects with all applicable laws.

 

(d)         As soon as practicable after the close of the Exchange Offer, the Issuers shall:

 

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(i)                                     accept for exchange all Securities tendered and not validly withdrawn pursuant to the Exchange Offer;

 

(ii)                                  deliver to the Trustee for cancellation in accordance with Section 4(s) all Securities so accepted for exchange; and

 

(iii)                               cause the Exchange Notes Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount of Exchange Notes equal to the principal amount of the Securities of such Holder so accepted for exchange.

 

(e)          Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Exchange Offer to participate in a distribution of the Exchange Notes (x) could not under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991), as interpreted in the Commission’s letter to Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements of the Act in connection with any secondary resale transaction, which must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K under the Act if the resales are of Exchange Notes obtained by such Holder in exchange for Securities acquired by such Holder directly from any Issuer or one of its Affiliates.  Accordingly, each Holder participating in the Exchange Offer shall be required to represent to the Issuers that, at the time of the consummation of the Exchange Offer:

 

(i)                                     any Exchange Notes received by such Holder will be acquired in the ordinary course of business;

 

(ii)                                  such Holder will have no arrangement or understanding with any Person to participate in the distribution of the Securities or the Exchange Notes within the meaning of the Act; and

 

(iii)                               such Holder is not an Affiliate of any Issuer.

 

(f)           If any Initial Purchaser determines that it is not eligible to participate in the Exchange Offer with respect to the exchange of Securities constituting any portion of an unsold allotment, at the request of such Initial Purchaser, the Issuers shall issue and deliver to such Initial Purchaser or the Person purchasing Exchange Notes registered under a Shelf Registration Statement as contemplated by Section 3 hereof from such Initial Purchaser, in exchange for such Securities, a like principal amount of Exchange Notes.  The Issuers shall use their best efforts to cause the CUSIP Service Bureau to issue the

 

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same CUSIP number for such Exchange Notes as for Exchange Notes issued pursuant to the Exchange Offer.

 

3.              Shelf Registration.

 

(a)         If (i) the Issuers are not (A) required to file the Exchange Offer Registration Statement or (B) permitted to consummate the Exchange Offer because the Exchange Offer is not permitted by applicable law or Commission policy or (ii) any Holder of Registrable Securities notifies the Company prior to the 20th Business Day following consummation of the Exchange Offer that (A) it is prohibited by law or Commission policy from participating in the Exchange Offer; (B) it may not resell the Exchange Notes acquired by it in the Exchange Offer to the public without delivering a prospectus and the Prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales; or (C) it is a Broker-Dealer and owns Securities acquired directly from the Company or an Affiliate of the Company, the Issuers shall effect a Shelf Registration Statement in accordance with subsection (b) below.

 

(b)         If obligated to file the Shelf Registration Statement, as applicable, the Issuers shall use all commercially reasonable efforts to file the Shelf Registration Statement with the Commission on or prior to 30 days after such obligation arises and shall use all commercially reasonable efforts to cause the Shelf Registration Statement to be declared effective by the Commission on or prior to 90 days after such obligation arises; such Shelf Registration Statement shall relate to the offer and sale of the Securities or the Exchange Notes, as applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder (other than an Initial Purchaser) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder; and provided further, that with respect to Exchange Notes received by an Initial Purchaser in exchange for Securities constituting any portion of an unsold allotment, the Issuers may, if permitted by current interpretations by the Commission’s staff, file a post-effective amendment to the Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement.

 

(c)          The Issuers shall use their best efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period (the “Shelf Registration Period”) from the date the Shelf Registration Statement is declared effective by the Commission until

 

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(A) the second anniversary thereof or (B) the date upon which all the Securities or Exchange Notes, as applicable, covered by the Shelf Registration Statement have been sold pursuant to the Shelf Registration Statement.  The Issuers shall be deemed not to have used their best efforts to keep the Shelf Registration Statement effective during the Shelf Registration Period if any of them voluntarily takes any action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities during the Shelf Registration Period, unless such action is (x) required by applicable law or otherwise undertaken by the Issuers in good faith and for valid business reasons (not including avoidance of such Issuer’s obligations hereunder), including the acquisition or divestiture of assets, and (y) permitted pursuant to Section 4(k)(ii) hereof.

 

(d)         The Issuers shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement or such amendment or supplement, (A) to comply in all material respects with the applicable requirements of the Act; and (B) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made), not misleading.

 

4.              Additional Registration Procedures.  In connection with any Exchange Offer Registration Statement and, to the extent applicable, any Shelf Registration Statement, the following provisions shall apply.

 

(a)         The Issuers shall:

 

(i)                                     furnish to the Representative and to counsel for the Holders, not less than five Business Days prior to the filing thereof with the Commission, a copy of the Exchange Offer Registration Statement or the Shelf Registration Statement, as the case may be, and each amendment thereto and each amendment or supplement, if any, to the Prospectus included therein (including all documents incorporated by reference therein after the initial filing) and shall use their best efforts to reflect in each such document, when so filed with the Commission, such comments as the Representative reasonably proposes;

 

(ii)                                  include the information set forth in Annex A hereto on the facing page of the Exchange Offer Registration Statement; in Annex B hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer; in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in the Exchange Offer Registration Statement; and in Annex D hereto in the letter of transmittal delivered pursuant to the Exchange Offer;

 

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(iii)                               if requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Exchange Offer Registration Statement; and

 

(iv)                              in the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling security holders.

 

(b)         The Issuers shall ensure that:

 

(i)                                     any Registration Statement, any amendment thereto, any Prospectus forming part thereof and any amendment or supplement thereto complies in all material respects with the Act; and

 

(ii)                                  any Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

(c)          The Issuers shall advise the Representative, the Holders of Securities covered by any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration Statement that has provided in writing to the Issuers a telephone or facsimile number and address for notices, and, if requested by the Representative or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v) of this Section 4(c) shall be accompanied by an instruction to suspend the use of the Prospectus until the Issuers shall have remedied the basis for such suspension):

 

(i)                                     when a Registration Statement or any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective;

 

(ii)                                  of any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information;

 

(iii)                               of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation or threatening of any proceedings for that purpose;

 

(iv)                              of the receipt by any Issuer of any notification with respect to the suspension of the qualification of the securities

 

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included therein for sale in any jurisdiction or the initiation or threatening of any proceedings for such purpose; and

 

(v)                                 of the happening of any event that requires any change in the Registration Statement or the Prospectus so that, as of such date, they (A) do not contain any untrue statement of a material fact and (B) do not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading.

 

(d)         The Issuers shall use their best efforts to prevent the issuance of any order suspending the effectiveness of any Registration Statement or the qualification of the securities therein for sale in any jurisdiction and, if issued, to obtain as soon as possible the withdrawal thereof.

 

(e)          The Issuers shall furnish to each Holder of Securities covered by any Shelf Registration Statement, without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

 

(f)           The Issuers shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without charge, as many copies of the Prospectus (including and preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request.  The Issuers consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of Securities in connection with the offering and sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement.

 

(g)          The Issuers shall furnish to each Exchanging Dealer which so requests, without charge, at least one copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including exhibits incorporated by reference therein).

 

(h)         The Issuers shall promptly deliver to each Initial Purchaser, each Exchanging Dealer and each other Person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer Registration Statement and any amendment or supplement thereto as any such Person may reasonably request.  The Issuers consent to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging Dealer and any such other Person that may be required to deliver a Prospectus following the Exchange Offer

 

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in connection with the offering and sale of the Exchange Notes covered by the Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration Statement.

 

(i)             Prior to the Exchange Offer or any other offering of Securities pursuant to any Registration Statement, the Issuers shall arrange, if necessary, for the qualification of the Securities or the Exchange Notes for sale under the laws of such jurisdictions as any Holder shall reasonably request and shall maintain such qualification in effect so long as required; provided that in no event shall any issuer be obligated to qualify to do business in any jurisdiction where it is not then so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the Initial Placement, the Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any such jurisdiction where it is not then so subject.

 

(j)            The Issuers shall cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Exchange Notes or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request.

 

(k)                                 (i)                                     Upon the occurrence of any event contemplated by subsections (c)(ii) through (v) above, the Issuers shall promptly (or within the time period provided for by clause (ii) hereof, if applicable) prepare a post-effective amendment to the applicable Registration Statement or an amendment or supplement to the related Prospectus or file any other required document so that, as thereafter delivered to initial purchasers of the securities included therein, the Prospectus will not include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided for in Section 2 shall be extended by the number of days from and including the date of the giving of a notice of suspension pursuant to Section 4(c) to and including the date when the Initial Purchasers, the Holders and any known Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant to this Section 4.

 

(ii)                                  Upon the occurrence or existence of any pending corporate development or any other material event that, in the reasonable judgment of any Issuer, makes it appropriate to suspend the availability of a Shelf Registration Statement and the related Prospectus, the Issuer shall give notice (without notice of the nature or details of such events) to the Holders that the availability

 

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of the Shelf Registration is suspended and, upon actual receipt of any such notice, each Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration until such Holder’s receipt of copies of the supplemented or amended Prospectus provided for in Section 3(i) hereof, or until it is advised in writing by any Issuer that the Prospectus may be used, and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus.  The period during which the availability of the Shelf Registration and any Prospectus is suspended (the “Deferral Period”) shall not exceed 45 days in any three-month period or 90 days in any 12-month period.

 

(l)             Not later than the effective date of any Registration Statement, the Issuers shall provide a CUSIP number for the Securities or the Exchange Notes, as the case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Securities or Exchange Notes, in a form eligible for deposit with The Depository Trust Company.

 

(m)     The Issuers shall comply with all applicable rules and regulations of the Commission and shall make generally available to their security holders an earnings statement satisfying the provisions of Section 11(a) of the Act as soon as practicable after the effective date of the applicable Registration Statement and in any event no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the applicable Registration Statement.

 

(n)         The Issuers shall cause the Indenture or the Exchange Notes Indenture, as the case may be, to be qualified under the Trust Indenture Act in a timely manner.

 

(o)         The Issuers may require each Holder of securities to be sold pursuant to any Shelf Registration Statement to furnish to the Issuers such information regarding the Holder and the distribution of such securities as the Issuers may from time to time reasonably require for inclusion in such Registration Statement.  The Issuers may exclude from such Shelf Registration Statement the Securities of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request.

 

(p)         In the case of any Shelf Registration Statement, the Issuers shall enter into customary agreements (including if requested, an underwriting agreement in customary form) and take all other appropriate actions in order to expedite or facilitate the registration or the disposition of the Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same

 

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to contain indemnification provisions and procedures no less favorable than those set forth in Section 6 hereof.

 

(q)         In the case of any Shelf Registration Statement, the Issuers shall:

 

(i)                                     make reasonably available for inspection by the Holders of Securities to be registered thereunder, any underwriter participating in any disposition pursuant to such Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial and other records and pertinent corporate documents of the Issuers and their subsidiaries;

 

(ii)                                  cause the officers, directors, employees, accountants and auditors of any Issuer to supply all relevant information reasonably requested by the Holders or any such underwriter, attorney, accountant or agent in connection with any such Shelf Registration Statement as is customary for similar due diligence examinations;

 

(iii)                               make such representations and warranties to the Holders of Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set forth in the Purchase Agreement;

 

(iv)                              obtain opinions of counsel to the Issuers and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily covered in opinions requested in primary underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters;

 

(v)                                 obtain “comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or Yield LLC or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Shelf Registration Statement), addressed to each selling Holder registered thereunder and the underwriters, if any, in customary form and covering matters of the type customarily covered in

 

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“comfort” letters in connection with primary underwritten offerings; and

 

(vi)                              deliver such documents and certificates as may be reasonably requested by the Majority Holders or the Managing Underwriters, if any, including those to evidence compliance with Section 4(k) hereof and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Issuers.

 

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section 4(q) shall be performed at (A) the effectiveness of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder.

 

(r)            In the case of any Exchange Offer Registration Statement, the Issuers shall, if requested by an Initial Purchaser or by a Broker-Dealer that holds Securities that were acquired as a result of market-making or other trading activities:

 

(i)                                     make reasonably available for inspection by the requesting party, and any attorney, accountant or other agent retained by the requesting party, all relevant financial and other records, pertinent corporate documents and properties of the Issuers and their subsidiaries;

 

(ii)                                  cause the officers, directors, employees, accountants and auditors of any Issuer to supply all relevant information reasonably requested by the requesting party or any such attorney, accountant or agent in connection with any such Registration Statement as is customary for similar due diligence examinations;

 

(iii)                               make such representations and warranties to the requesting party, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering matters including, but not limited to, those set forth in the Purchase Agreement;

 

(iv)                              obtain opinions of counsel to the Issuers and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the requesting party and its counsel), addressed to the requesting party, covering such matters as are customarily covered in opinions requested in primary underwritten offerings and such other matters as may be reasonably requested by the requesting party or its counsel;

 

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(v)                                 obtain “comfort” letters and updates thereof from the independent certified public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or Yield LLC or of any business acquired by the Company for which financial statements and financial data are, or are required to be, included in the Registration Statement), addressed to the requesting party, in customary form and covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten offerings, or if requested by the requesting party or its counsel in lieu of a “comfort” letter, an agreed-upon procedures letter under Statement on Auditing Standards No. 35, covering matters requested by the requesting party or its counsel; and

 

(vi)                              deliver such documents and certificates as may be reasonably requested by the requesting party or its counsel, including those to evidence compliance with Section 4(k) and with conditions customarily contained in underwriting agreements.

 

The foregoing actions set forth in clauses (iii), (iv), (v) and (vi) of this Section 4(r) shall be performed at the close of the Exchange Offer and the effective date of any post-effective amendment to the Exchange Offer Registration Statement.

 

(s)           If an Exchange Offer is to be consummated, upon delivery of the Securities by Holders to the Issuers (or to such other Person as directed by the Issuers) in exchange for the Exchange Notes, the Issuers shall mark, or caused to be marked, on the Securities so exchanged that such Securities are being cancelled in exchange for the Exchange Notes.  In no event shall the Securities be marked as paid or otherwise satisfied.

 

(t)            The Issuers shall use their best efforts if the Securities have been rated prior to the initial sale of such Securities, to confirm such ratings will apply to the Securities or the Exchange Notes, as the case may be, covered by a Registration Statement.

 

(u)         In the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the FINRA Rules) thereof, whether as a Holder or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Issuers shall assist such Broker-Dealer in complying with the FINRA Rules.

 

(v)         The Issuers shall use their best efforts to take all other steps necessary to effect the registration of the Securities or the Exchange Notes, as the case may be, covered by a Registration Statement.

 

16

 

5.              Registration Expenses.  The Issuers shall bear all expenses incurred in connection with the performance of their obligations under Sections 2, 3 and 4 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of one firm or counsel designated by the Majority Holders to act as counsel for the Holders in connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of counsel acting in connection therewith.

 

6.              Indemnification and Contribution.

 

(a)         Each of the Issuers jointly and severally agrees to indemnify and hold harmless each Holder of Securities or Exchange Notes, as the case may be, covered by any Registration Statement, each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 4(h) hereof, each Exchanging Dealer, and their respective affiliates and each Person who controls any such Holder, Initial Purchaser, Exchanging Dealer or affiliate within the meaning of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of any preliminary Prospectus or the Prospectus, in the light of the circumstances under which they were made) not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by it in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Issuers will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Issuers by or on behalf of the party claiming indemnification specifically for inclusion therein.  This indemnity agreement shall be in addition to any liability that the Issuers may otherwise have.

 

Each of the Issuers also jointly and severally agrees to indemnify as provided in this Section 6(a) or contribute as provided in Section 6(d) to Losses, as defined below, of each underwriter, if any, of Securities or Exchange Notes, as the case may be, registered under a Shelf Registration Statement, their respective affiliates and each Person who controls such underwriter or affiliate on substantially the same basis as that of the indemnification of the Initial Purchasers

 

17

 

and the selling Holders provided in this Section 6(a) and shall, if requested by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 4(q) hereof.

 

(b)         Each Holder of Securities covered by a Registration Statement (including each Initial Purchaser that is a Holder, in such capacity) severally and not jointly agrees to indemnify and hold harmless the Issuers, each of their respective directors, each of their respective officers who signs such Registration Statement and each Person who controls any Issuer within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Issuers to each such Holder, but only with reference to written information relating to such Holder furnished to the Issuers by or on behalf of such Holder specifically for inclusion in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition to any liability that any such Holder may otherwise have.

 

(c)          Promptly after receipt by an indemnified party under this Section6 or notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i)will not relieve it from liability under paragraph(a)or (b)above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses; and (ii)will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph(a)or (b) above.  The indemnifying party shall be entitled to appoint counsel (including local counsel) of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel, other than local counsel if not appointed by the indemnifying party, retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be satisfactory to the indemnified party.  Notwithstanding the indemnifying party’s election to appoint counsel (including local counsel) to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i)the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii)the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party; (iii)the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified party

 

18

 

within a reasonable time after notice of the initiation of such action; or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party.  An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding.

 

(d)         In the event that the indemnity provided in paragraph (a) or (b) of this Section is unavailable to or insufficient to hold harmless an indemnified party for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending any loss, claim, liability, damage or action) (collectively “Losses”) to which such indemnified party may be subject in such proportion as is appropriate to reflect the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in such Losses; provided, however, that in no case shall any Initial Purchaser be responsible, in the aggregate, for any amount in excess of the purchase discount or commission applicable to such Security, or in the case of an Exchange Note, applicable to the Security that was exchangeable into such Exchange Note, as set forth in the Final Offering Memorandum, nor shall any underwriter be responsible for any amount in excess of the underwriting discount or commission applicable to the securities purchased by such underwriter under the Registration Statement which resulted in such Losses.  If the allocation provided by the immediately preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of such indemnifying party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations.  Benefits received by the Issuers shall be deemed to be equal to the total net proceeds from the Initial Placement (before deducting expenses) as set forth in the Final Offering Memorandum.  Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth on the cover page of the Final Offering Memorandum, and benefits received by any other Holders shall be deemed to be equal to the value of receiving Securities or Exchange Notes, as applicable, registered under the Act.  Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which resulted in such Losses.  Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue

 

19

 

statement of a material fact or omission or alleged omission to state a material fact relates to information provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated as one entity for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this paragraph (d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.  For purposes of this Section, each Person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of such Holder shall have the same rights to contribution as such Holder, and each Person who controls any Issuer within the meaning of either the Act or the Exchange Act, each officer of any Issuer who shall have signed the Registration Statement and each director of any Issuer shall have the same rights to contribution as the Issuers, subject in each case to the applicable terms and conditions of this paragraph (d).

 

(e)          The provisions of this Section will remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or the Issuers or any of the indemnified Persons referred to in this Section 6, and will survive the sale by a Holder of securities covered by a Registration Statement.

 

7.              Underwritten Registrations.

 

(a)         If any of the Securities or Exchange Notes, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing Underwriters shall be selected by the Majority Holders.

 

(b)         No Person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such Person (i) agrees to sell such Person’s Securities or Exchange Notes, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements; and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

 

8.              Registration Defaults.  If any of the following events (each, a “Registration Default”) shall occur, then the Issuers shall pay liquidated damages (the “Special Interest”) to the Holders of Securities in respect of the Securities as follows:

 

20

 

(a)         if the Issuers fail to consummate the Exchange Offer within 365 Business Days following the Closing Date; or

 

(b)         if the Shelf Registration Statement or the Exchange Offer Registration Statement is declared effective but thereafter ceases to be effective or usable in connection with resales of Registrable Securities during the periods specified in this Agreement, then, in each case, as of the date any such event occurs, Special Interest shall accrue on the Registrable Securities at a rate of 0.25% per annum of the principal amount of Registrable Securities outstanding for the first 90 days from and including such date; thereafter, the Special Interest will increase by an additional 0.25% per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum amount of 1.0% per annum of the principal amount of the Registrable Securities outstanding.  All accrued Special Interest will be paid by the Issuers on the next scheduled interest payment date to DTC or its nominee by wire transfer of immediately available funds or by federal funds check and to Holders of certificated notes by wire transfer to the accounts specified by them or by mailing checks to their registered addresses if no such accounts have been specified.  A Registration Default shall have been cured for purposes hereof (1) upon consummation of the Exchange Offer (in the case of paragraph (a) above) or (2) upon the effectiveness of the Registration Statement which had ceased to remain effective (in the case of paragraph (b) above).  Immediately upon the cure of all Registration Defaults, the accrual of Special Interest will cease.

 

9.              No Inconsistent Agreements.  No Issuer has, as of the date hereof, entered into, nor shall it, on or after the date hereof, any agreement with respect to its Securities that is inconsistent with the rights granted to the Holders herein or that otherwise conflicts with the provisions hereof.

 

10.       Amendments and Waivers.  The provisions of this Agreement may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuers have obtained the written consent of the Majority Holders; provided that, with respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Issuers shall obtain the written consent of each such Initial Purchaser against which such amendment, qualification, supplement, waiver or consent is to be effective; provided, further, that no amendment, qualification, supplement, waiver or consent with respect to Section 8 hereof shall be effective as against any Holder of Registrable Securities unless consented to in writing by such Holder; and provided, further, that the provisions of this Section 10 may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuers have obtained the written consent of the Representative and each Holder.  Notwithstanding the foregoing (except the foregoing provisos), a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or Exchange

 

21

 

Notes, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Securities or Exchange Notes, as the case may be, being sold rather than registered under such Registration Statement.

 

11.       Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery:

 

(a)         if to a Holder, at the most current address given by such Holder to the Issuers in accordance with the provisions of this Section 11, which address initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture;

 

(b)         if to the Representative, initially at the address set forth in the Purchase Agreement; and

 

(c)          if to the Issuers, initially at the address of the Company set forth in the Purchase Agreement.

 

All such notices and communications shall be deemed to have been duly given when received.  The Representative or the Issuers by notice to the other parties may designate additional or different addresses for subsequent notices or communications.

 

12.       Remedies.  Each Holder, in addition to being entitled to exercise all rights provided to it herein, in the Indenture or in the Purchase Agreement or granted by law, including recovery of liquidated or other damages, will be entitled to specific performance of its rights under this Agreement. The Issuers agree that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by them of the provisions of this Agreement and hereby agree to waive in any action for specific performance the defense that a remedy at law would be adequate.

 

13.       Successors.  This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and assigns, including, without the need for an express assignment or any consent by the Issuers thereto, subsequent Holders of Securities and the Exchange Notes, and the indemnified Persons referred to in Section 6 hereof.  The Issuers hereby agree to extend the benefits of this Agreement to any Holder of Securities or the Exchange Notes, and any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto.

 

22

 

14.       Counterparts.  This Agreement may be in signed counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

15.       Headings.  The headings used herein are for convenience only and shall not affect the construction hereof.

 

16.       Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in the State of New York.  The parties hereto each hereby waive any right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Agreement.

 

17.       Severability.  In the event that any one of more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law.

 

18.       Securities Held by the Issuers.  Whenever the consent or approval of Holders of a specified percentage of principal amount of Securities or Exchange Notes is required hereunder, Securities or Exchange Notes, as applicable, held by any Issuer or its Affiliates (other than subsequent Holders of Securities or Exchange Notes if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities or Exchange Notes) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage.

 

23

 

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall represent a binding agreement between the Issuers and the several Initial Purchasers.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
NRG   YIELD OPERATING LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   G. Gary Garcia
    
	
 
    	
 
    	
Name:
    	
G.   Gary Garcia
    
	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    

 

 

	
NRG YIELD LLC
    	
 
    	
NRG   ENERGY CENTER OMAHA HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   G. Gary Garcia
    	
 
    	
By:
    	
/s/   Gaëtan Frotté
    
	
 
    	
Name:
    	
G.   Gary Garcia
    	
 
    	
 
    	
Name:
    	
Gaëtan   Frotté
    
	
 
    	
Title:
    	
Vice   President and Treasurer
    	
 
    	
 
    	
Title:
    	
Vice   President and Treasurer
    

 

 

	
NRG ENERGY CENTER OMAHA LLC
    	
 
    	
NRG   SOUTH TRENT HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Gaëtan Frotté
    	
 
    	
By:
    	
/s/   G. Gary Garcia
    
	
 
    	
Name:
    	
Gaëtan   Frotté
    	
 
    	
 
    	
Name:
    	
G.   Gary Garcia
    
	
 
    	
Title:
    	
Vice   President and Treasurer
    	
 
    	
 
    	
Title:
    	
Treasurer
    

 

[Signature Page to Registration Rights Agreement]

 

 

	
Accepted as of the date hereof
    	
 
    
	
 
    	
 
    
	
MERRILL   LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Acting   on behalf of itself
   and as the Representative of
   the several Initial Purchasers 
    	
 
    
	
By:                            Merrill   Lynch, Pierce, Fenner & Smith Incorporated
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Adam Bernard
    	
 
    
	
 
    	
Name:   Adam Bernard
    	
 
    
	
 
    	
Title:   Managing Director
    	
 
    

 

[Signature Page to Registration Rights Agreement]

 

 

SCHEDULE I

 

Initial Purchasers

 

Merrill Lynch, Pierce, Fenner & Smith Incorporated

 

Citigroup Global Markets Inc.

 

Goldman, Sachs & Co.

 

RBC Capital Markets, LLC

 

Barclays Capital Inc.

 

Credit Suisse Securities (USA) LLC

 

Deutsche Bank Securities Inc.

 

KeyBanc Capital Markets Inc.

 

Morgan Stanley & Co. LLC

 

Mitsubishi UFG Securities (USA), Inc.

 

 

ANNEX A

 

Each Broker-Dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a Prospectus in connection with any resale of such Exchange Notes.  The Letter of Transmittal states that by so acknowledging and by delivering a Prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act.  This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of Exchange Notes received in exchange for Securities where such Securities were acquired by such Broker-Dealer as a result of market-making activities or other trading activities.  Each of the Company, Yield LLC and the Guarantors has agreed that, starting on the expiration date and ending on the close of business one year after the expiration date, it will make this Prospectus available, as amended or supplemented, to any Broker-Dealer for use in connection with any such resale.  See “Plan of Distribution”.

 

A-1

 

ANNEX B

 

Each broker-dealer that receives new securities for its own account in exchange for securities, where such securities were acquired by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such new securities.  See “Plan of Distribution”.

 

B-1

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a Prospectus in connection with any resale of such Exchange Notes.  This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of Exchange Notes received in exchange for Securities where such Securities were acquired as a result of market-making activities or other trading activities.  The Company, Yield LLC and each of the Guarantors has agreed that, starting on the expiration date and ending on the close of business one year after the expiration date, they will make this Prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection with any such resale.  In addition, until                     , 20    , all dealers effecting transactions in the Exchange Notes may be required to deliver a Prospectus.

 

The company and each of the guarantors will not receive any proceeds from any sale of Exchange Notes by brokers-dealers.  Exchange Notes received by Broker-Dealers for their own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Notes or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or at negotiated prices.  Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such Broker-Dealer and/or the purchasers of any such Exchange Notes.  Any Broker-Dealer that resells Exchange Notes that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such Exchange Notes may be deemed to be an “underwriter” within the meaning of the Act and any profit of any such resale of Exchange Notes and any commissions or concessions received by any such Persons may be deemed to be underwriting compensation under the Act.  The Letter of Transmittal states that by acknowledging that it will deliver and by delivering a Prospectus, a Broker-Dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Act.

 

For a period of one year after the expiration date, each of the company and the guarantors will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal.  Each of the company and the guarantors has agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Securities (including any Broker-Dealers) against certain liabilities, including liabilities under the Act.

 

[If applicable, add information required by Regulation S-K Items 507 and/or 508.]

 

C-1

 

ANNEX D

 

Rider A

 

PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	
Name:
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Rider B

 

If the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the Exchange Notes in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of Exchange Notes and it has no arrangements or understandings with any Person to participate in a distribution of the Exchange Notes.  If the undersigned is a Broker-Dealer that will receive Exchange Notes for its own account in exchange for Securities, it represents that the Securities to be exchanged for Exchange Notes were acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a Prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a Prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Act.

 

D-1ex-10.1

 EXHIBIT 10.1
 

 ASSET PURCHASE AGREEMENT
 

 This ASSET PURCHASE AGREEMENT (the “Agreement”) is entered into on July 28, 2014 (“Effective Date”), by and among Lenape II Solar LLC, a Nevada Limited Liability Company (“Buyer”), and New Generation Power, LLC, an Illinois Limited Liability Company and NGP Lenape Solar II, LLC, an Illinois Limited Liability Company (jointly and severally “Seller”). Buyer and Seller are referred to collectively as the “Parties” and each individually as a “Party.”  Definitions of capitalized terms not otherwise defined herein are set out in Exhibit A attached hereto and made a part hereof.
 RECITALS
 A.
 Prior to the consummation of the transactions contemplated under this Agreement, Seller has been engaged in the development of a grid-connected ground-mounted photovoltaic power plant know by the Parties as Lenape II, (the “Solar Facility”) at 401 N. Shadeland Ave, Indianapolis Indiana, originally leased pursuant to an unrecorded Lease Agreement (as amended, the “Solar Site Lease”) between Live Wire Technologies LLC as Lessor, and Seller, as Lessee.
 B.
 Seller also entered into an Agreement with Indianapolis Power & Light Company (IPL) (the “PPA”). Pursuant to the PPA, IPL has agreed to purchase the energy output of the Solar Facility.
 C.
 Seller wishes to sell to Buyer, and Buyer wishes to purchase from Seller all on the terms and conditions hereinafter set forth.
 D.
 Buyer is a wholly owned subsidiary of Xnergy, a California Corporation. Xnergy caused Buyer to be created as an SPE that will own all the assets and liabilities associated with the Solar Facility. 
 E.
 Xnergy entered into an LOI dated May 2nd, 2014 with Seller. Execution of this Agreement is in furtherance of Seller’s obligations under that LOI to sell Xnergy the Solar Facility as NGP failed to sell the Assets/ Solar Project by June 30, 2014.
 NOW, THEREFORE, in consideration of the mutual promises, covenants, representations, warranties, conditions and agreements contained herein, the Parties agree as follows:
  
 ARTICLE 1

PURCHASE AND SALE OF ASSETS
  
 1.1
 Sale and Purchase.  Upon the terms set forth in this Agreement, and in reliance on the respective representations and warranties of the Parties, Seller agrees to sell, convey, assign, transfer and deliver the Assets to Buyer, free and clear of all Encumbrances, and Buyer agrees to purchase and accept delivery of the Assets from Seller, free and clear of all Encumbrances, on the Closing Date at the time and place of Closing for the consideration and in accordance with the provisions of this Agreement.
 

 1
 

 
 

 1.2
 Assets.  The term “Assets” means Seller’s right, title and interest in and to the Solar Facility, the design and engineering of the Solar Facility, and all of the properties, assets and rights comprising the Solar Facility, whether tangible, intangible or personal and wherever located, specifically including, without limitation, the following (specifically excluding the Excluded Assets):
 (a)
 all Environmental Financial Incentives and Green Attributes in connection with the Solar Facility; 
 (b)
 the inventories, equipment, machinery, materials, supplies, advertising and promotional materials, furniture, fixtures, leasehold improvements and other tangible assets of the Solar Facility, including those identified in Parts 2.13(a) of the Disclosure Schedule;
 (c)
 all contract rights with respect to the Contracts of Seller in connection with the Solar Facility, including all Material Contracts identified in Part 2.12 of the Disclosure Schedule (collectively, the “Assumed Contracts”);
 (d)
 the leasehold interests associated with the Solar Facility identified in Part 1.2(d) of the Disclosure Schedule that are effectively assigned and transferred to the Buyer hereby as part of the Assets pursuant to the Bill of Sale and Assignment and Assumption Agreement (the “Assumed Leases”);
 (e)
 all bids, quotations and proposals for Contracts, whether oral or written, to which Seller is a party or by which Seller is bound that relate to the Solar Facility;
 (f)
 all Permits held by Seller, including the Permits identified in Part 2.9(c) of the Disclosure Schedule, relating to the Solar Facility, but solely to the extent such Permits are transferable;
 (g)
 all claims and causes of action of Seller against other Persons relating to the Assets (regardless of whether or not such claims and causes of action have been asserted by Seller), and all rights of indemnity, warranty rights, rights of contribution, rights to refunds, rights of reimbursement and other rights of recovery possessed by Seller relating to the Assets (regardless of whether such rights are currently exercisable), including those warranty rights identified in Part 2.13(c) of the Disclosure Schedule;
 (h)
 all rights of Seller under or pursuant to all warranties, representations and guarantees made by suppliers, manufacturers and contractors in connection with products sold to or services provided to Seller for the Solar Facility, or affecting the property, machinery or equipment owned by Seller and used in connection with, or relating to, the Solar Facility;
 (i)
 all Intellectual Property, engineering plans, know-how, goodwill and similar or related assets of Seller relating to the Solar Facility and variations thereof, including the Intellectual Property identified in Part 2.11 of the Disclosure Schedule;
 

 2
 

 
 

 (j)
 all motor vehicles owned or leased by the Seller and used or held for use primarily in connection with the operation of the Solar Facility, including all vehicles identified in Part 1.2(j) of the Disclosure Schedule;
 (k)
 all site plans, surveys, soil and substratus studies, architectural drawings, plans and specifications, engineering, electrical and mechanical plans and studies, floor plans, landscape plans, appraisals, feasibility studies, environmental studies and other plans and studies of any kind if existing and in the possession or subject to the control of Seller relating to the Leased Real Property (collectively, “Property Plans”);
 (l)
 all records (including employment records), files and papers specifically and pertaining to the Solar Facility (the “Books and Records”); and
 (m)
 all other assets identified in Part 1.2(m) of the Disclosure Schedule.
 1.3
 Excluded Assets.  Notwithstanding anything to the contrary contained herein, the Assets do not include the following (collectively, the “Excluded Assets”):
 (a)
 the assets set forth in Part 1.3(b) of the Disclosure Schedule, if any.
 1.4
 Assumed Liabilities.  Subject to the terms and conditions hereof, at Closing, the Buyer shall assume the following Liabilities, and only the following Liabilities, of Seller (and Buyer shall promptly pay and perform such Liabilities when due): All Liabilities arising after the Closing Date under the Assumed Contracts and Assumed Leases; provided, that such obligations: (i) arise after the Closing Date; (ii) do not arise from or relate to any default or breach by a Seller prior to the Closing Date of any provision of any of the Assumed Contracts or Assumed Leases; (iii) do not arise from or relate to any event, circumstance or condition occurring or existing on or prior to the Closing Date that, with notice or lapse of time, would constitute or result in a breach of, or default under, any of the Assumed Contracts; and (iv) are ascertainable (in nature and amount) solely by reference to the express terms of the Assumed Contracts and Assumed Leases. For convenience of reference, the Liabilities being assumed by the Buyer as aforesaid are hereinafter collectively referred to as the “Assumed Liabilities.”
 1.5
 Excluded Liabilities.  Notwithstanding anything to the contrary contained in this Agreement, and regardless of whether such liability is disclosed in this Agreement, in any of the Transaction Documents or on any Schedule or Exhibit hereto or thereto, Buyer will not assume, agree to pay, perform and discharge or in any way be responsible for any debts, liabilities and obligations, of Seller of any kind or nature whatsoever, arising out of, relating to, resulting from, or caused by any transaction, status, event, condition, occurrence or situation relating to, arising out of or in connection with the Solar Facility, the Assets, or Seller existing, arising or occurring on or prior to the Closing Date other than the Assumed Liabilities (the “Excluded Liabilities”). Seller shall promptly pay and perform such Excluded Liabilities when due.  For all of the Excluded Assets not purchased, Buyer assumes no liability associated therewith.
 

 

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 1.6
 Purchase Price; Closing; Payment; Allocation.
 (a)
 Purchase Price.  The aggregate consideration for the Assets shall be as follows, subject to any adjustment as provided herein, including in Article 4:
 (1)
 One Million and  00/100 dollars ($1,000,000.00), (“Purchase Price”);
 (2)
 Buyer’s assumption of the Assumed Liabilities; 
 (3)
 Other good and valuable consideration already provided in the form of $2,000,000 payment pursuant to the Strategic Agreement to the limited extent that payment relates to Lenape II EPC (this Agreement does not serve as a release from Strategic Agreement beyond the limited extent to which the fulfillment of all obligations herein by Seller releases Seller from the Lenape II EPC obligations).
 (b)
 Closing.  The closing of the sale of the Assets and the consummation of the other transactions contemplated by this Agreement (the “Closing”) shall occur when both parties sign this Agreement.  The date on which the Closing actually takes place is referred to in this Agreement as the “Closing Date.”  
 (c)
 Closing Payments.  Upon the terms and subject to the conditions set forth in this Agreement, including, without limitation: the satisfactory completion or waiver of the Conditions To Buyer’s Obligations set forth in Article 6 and obligations under Section 4.4, Buyer shall pay the following amounts according to the attached Exhibit C Disbursement Agreement:
 (1)
  On Effective Date after execution of this Agreement by both Parties, $250,000.00 (to be wired within two standard business days after due);to New Generation Holdings Account: Citibank 11S LaSalle Street Chicago Il 60603 Routing: 270170801 Account: 801160883  Branch telephone: 1-800-627-3999 
 (2)
 Upon Commercial Operation or at the financial close at the sale of the project to another buyer, $750,000.00, contingent on Seller cooperating in obtaining or transferring all Permits, Real Property Leases, Material Contracts, Tangible Personal Property, and fulfilling its other obligations herein to date of Commercial Operation;
 ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF THE SELLER
 Except as set forth in the Disclosure Schedule, Seller represents and warrants to the Buyer that the statements contained in this Article 2 are correct and complete as of the Closing Date:
 

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 2.1
 Organization.  Seller(s) is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Illinois.  Seller has the requisite power and authority to own, lease and operate its assets and to construct/operate the Solar Facility.  Seller has all requisite power and authority to enter into this Agreement and the Transaction Documents to which it is a party and to perform its obligations thereunder.  
 2.2
 Authorization of Transaction.  The execution, delivery and performance by Seller of this Agreement and each Transaction Documents to which it is a party and the consummation by Seller of the transactions contemplated hereby and thereby have been duly authorized and approved by all necessary action of Seller, and its equity holders.  This Agreement and the other Transaction Documents have been, or will, upon such delivery, be duly executed and delivered by Seller and constitute, or upon such execution and delivery will be, the valid and legally binding obligation of Seller enforceable against it in accordance with its terms and conditions.
 2.3
 No Conflict or Violation.  Except as set forth in Part 2.3 of the Disclosure Schedule, none of the execution and delivery of this Agreement or any of the other Transaction Documents, or the consummation of the transactions contemplated hereby and thereby, will:
 (a)
 result in a violation of or a conflict with any provision of the organizational documents of Seller;
 (b)
 contravene, conflict with or result in a violation or breach of, or result in a default under, any provision of any of Assumed Contracts or Assumed Leases; 
 (c)
 result in a material breach under any Material Contract listed in Part 2.12 of the Disclosure Schedule to this Agreement;
 (d)
 result in the creation of any Encumbrance upon any material assets of Seller; or
 (e)
 result in a violation by Seller in any material respect of, or require any authorization, Consent, approval, exemption, notice, filing or other action due to or required from, or filing with, any Authority pursuant to any Legal Requirement or Order.
 2.4
 Consents and Approvals.  Except as set forth in Part 2.4 of the Disclosure Schedule, any Consent, approval or authorization of, or declaration, filing or registration with, any Authority, or any other Person, that is required to be made or obtained will be obtained by Seller in connection with the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby.
 

 

 

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 2.5
 Title to Assets; Assets for Operation of Solar Facility.  Except as set forth in Part 2.5 of the Disclosure Schedule, Seller has good title to, or a valid leasehold interest in, the Assets comprising and used to operate the Solar Facility, free and clear of all Encumbrances.  Such Assets used to operate the Solar Facility (other than the Excluded Assets) are, and upon the consummation of the transactions contemplated by this Agreement, will be sufficient for the operation of the Solar Facility after the Closing. The Solar Facility has been developed, constructed and operated only through Seller and not through any other divisions or any direct or indirect subsidiary or affiliate of Seller and no part of the Solar Facility is owned or operated by Seller through any entity other than Seller.
 2.6
 Real Property. Seller does not own, and has never owned, any real property associated with the Solar Facility.  Part 2.6 of the Disclosure Schedule contains a true and complete list of all real property associated with the Solar Facility with respect to which Seller is a lessee, sublessee, licensee or other occupant or user (the “Leased Real Property”).  Buyer has been provided with a copy of each lease, sublease or other occupancy agreement (including any amendments and renewal letters) relating to the Leased Real Property, including the Solar Site Lease, together with all material amendments and modifications thereto (collectively, the “Real Property Leases”). The operation of the Solar Facility in the ordinary course of business after the Closing will not result in a violation of any applicable statutes, ordinances, codes (including, but not limited to, zoning, building, subdivision, bylaws, pollution, environmental protection, water disposal, health, fire, and safety engineering codes), or the rules and regulations of, any governmental authority having jurisdiction over the Property that exist as of the Closing.
 2.7
 Undisclosed Liabilities; Indebtedness; Accounts Payable. Other than the liabilities, indebtedness or other obligation for borrowed money, including capitalized leases, and accounts payable identified in Part 2.7 of the Disclosure Schedule, there exist no liabilities or obligations arising from or associated with the Solar Facility or the Assets, whether known, unknown, due or to become due, absolute or contingent, including liabilities arising out of any event, circumstance, or condition occurring or existing on or prior to the Closing Date that, with notice or lapse of time, would constitute or result in a breach of contract, other liability, or Encumbrance in each case.
 2.8
 Subsequent Events.  Since April 30, 2014, there has been no Material Adverse Effect with respect to the Solar Facility.
 2.9
 Legal Compliance.
 (a)
 Except as set forth in Part 2.9(a) of the Disclosure Schedule, Seller is in material compliance with all Legal Requirements and Orders applicable to it.  Except as set forth in Part 2.9(a) of the Disclosure Schedule, no written notice has been received by and no written claims have been filed against Seller in the past two years alleging a material violation of any Legal Requirement or Order.  
 (b)
 As of the date of this Agreement, there is no pending or, to Seller’s Knowledge, threatened investigation, review or disciplinary litigation by any Authority against Seller.
 

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 (c)
 Seller holds, or as of the Closing, will have obtained all Permits listed in Part 2.9(c) of the Disclosure Schedule. All such Permits are in full force and effect and Seller has, to the extent required, made all filings necessary to request the timely renewal or issuance of all Permits listed in  Part 2.9(c) of the Disclosure Schedule.
 (d)
 Except as set forth on Part 2.9(d) of the Disclosure Schedule, to Seller’s Knowledge, Seller has timely filed all reports, registrations, statements and other filings, together with any amendments required to be made with respect thereto, that were required to be filed with or pursuant to the rules of any Authority (all such reports and statements, including the financial statements, exhibits, annexes and schedules thereto, being collectively referred to herein as the “Reports”).
 2.10
 Tax Matters.  Except as set forth in Part 2.10 of the Disclosure Schedule:
 (a)
 Seller has timely filed all Tax Returns that it has been required to file, and all such Tax Returns are accurate and complete in all material respects;
 (b)
 All Taxes shown to be due and payable on such Tax Returns and relating to Seller and the Solar Facility have been or will be timely paid by Seller or Owners; 
 (c)
 No other written notice of deficiency or proposed adjustment which has not been paid or resolved for any Tax has been asserted or assessed by any Taxing Authority against Seller or the Owners relating to Taxes attributable to the Solar Facility;
 (d)
 There are no Tax audits in progress, pending or, to Seller’s Knowledge, threatened against Seller or the Owners in connection with the Solar Facility; 
 (e)
 There are no Liens with respect to any Taxes upon the Solar Facility. 
 2.11
 Intellectual Property.
 (a)
 All material Intellectual Property of Seller relating to the Solar Facility is listed in Part 2.11 of the Disclosure Schedule.  Except as set forth in Part 2.11 of the Disclosure Schedule, Seller own and possesses good title to or valid license to use all material Intellectual Property of Seller relating to the Solar Facility.  None of the use of any such Intellectual Property by Seller, the operations of the Solar Facility, or the current provision of products or services therein by Seller, infringes upon, misappropriates or violates in any way the rights of any Person (including rights in Intellectual Property). No claims are pending in writing or, to Seller’s Knowledge, threatened against Seller as of the date of this Agreement with respect to the ownership, use or validity of any Intellectual Property of Seller relating to the Solar Facility.  Seller has not been sued or charged as a defendant in any claim, suit, action, or proceeding which involves a claim of infringement of any Intellectual Property of any third party and which has not been finally terminated prior to the date hereof, and to Seller’s Knowledge, no such claim has been threatened.  No Intellectual Property of Seller relating to the Solar Facility is subject to any outstanding decree, order or judgment restricting in any manner the sale or licensing of such product by Seller.
 

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 (b)
 Part 2.11of the Disclosure Schedule sets forth an accurate and complete list of all (i) agreements to which Seller is a party involving any Intellectual Property relating to the Solar Facility (collectively, the “License Agreements”) and (ii) computer software owned or used by Seller in connection with the Solar Facility.
 (c)
 The Intellectual Property of Seller identified in Part 2.11 of the Disclosure Schedule constitutes all of the material Intellectual Property that is currently used in the Solar Facility or contemplated to be used by Seller in connection with the Solar Facility, and Seller owns, free and clear of Encumbrances, or otherwise possesses full, legally enforceable rights to use such material Intellectual Property.
 (d)
 To Seller’s Knowledge, there are no material unauthorized uses, disclosures, infringements, or misappropriations by any third party of any material Intellectual Property of Seller relating to the Solar Facility or any material breaches by any third party of any licenses or agreements involving such Intellectual Property.
 2.12
 Material Contracts. 
 (a)
 Part 2.12 of the Disclosure Schedule lists the following Contracts to which Seller is currently a party or is subject to in connection with the Solar Facility (“Material Contracts”):
 (1)
 any Contract for the sale of Seller’s products or services to any Person for $100.00 or more;
 (2)
 any Contract involving consideration in excess of $100.00 over any twelve (12) month period;
 (3)
 any Contract (or group of related Contracts) under which it has created, incurred, assumed or guaranteed any Indebtedness;
 (4)
 any Contract which prohibits Seller from developing and operating the Solar Facility or requiring it to exclusively sell or purchase to or from any Person;
 (5)
 any Contract with any of its Affiliates or the Owners (including Affiliates of Seller);
 (6)
 any agreement for the employment of any individual on a full-time, part-time, consulting or other basis providing an annual compensation in excess of $100.00 or providing severance benefits or payments upon the sale of Seller;
 (7)
 any Contract that cannot be terminated by Seller without liability in excess of $100 upon less than sixty (60) days’ notice;
 

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 (8)
 any Contract that governs any joint venture, partnership or other cooperative arrangement or any other relationship involving a sharing of profits;
 (9)
 any Contract that would result in the merger with or into or consolidation into another Person;
 (10)
 any Contract that provides for the provision of material services to Seller by third party personnel;
 (11)
 any License Agreement;
 (12)
 any Contract relating to any lease, lease guaranty, sublease or for the leasing, use or occupancy of any Leased Real Property;
 (13)
 any other Contract that was entered into outside the ordinary course of business of any of the Seller or that is otherwise material to Seller; or
 (14)
 any commitment to do any of the foregoing described in clauses (1) through (13) or material amendment, modification or supplement in respect of any of the foregoing.
 (b)
 With respect to each Material Contract listed in Part 2.12 of the Disclosure Schedule: (A) the agreement is, with respect to the applicable Seller, legal, valid, binding, enforceable and in full force and effect in all material respects; (B) Seller is not in, and, to the Knowledge of Seller, the other party thereto is not in, material breach or default, and no event has occurred which with notice or lapse of time would constitute a material breach or default, or permit termination, modification or acceleration under the agreement; and (C) Seller has not, and to the Knowledge of Seller the other party thereto has not, repudiated in writing any material provision of a Material Contract.
 2.13
 Equipment, Etc.
 (a)
 Part 2.13(a) of the Disclosure Schedule identifies all equipment, furniture, fixtures, improvements and other tangible assets owned by Seller and used in connection with the Solar Facility. Except as set forth in Part 2.13(a) of the Disclosure Schedule, the tangible assets identified are (i) suitable for the uses to which they are currently employed, (ii) in working condition, subject to normal wear and tear, (iii) regularly maintained, and (iv) not obsolete, dangerous or in need of renewal or replacement, except for renewal or replacement in the Ordinary Course of Business.
 (b)
  Part 2.13(b) of the Disclosure Schedule identifies all personal property and other tangible assets leased to Seller and used in connection with the Solar Facility.
 (c)
 Part 2.13(c) of the Disclosure Schedule identifies all warranty rights, rights of indemnity, rights of contribution, rights to refunds, rights of reimbursement and other rights of recovery possessed by Seller relating to the Assets and used in connection with the Solar Facility.
 

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 2.14
 Legal Proceedings.
 (a)
 There are no actions, suits at law or in equity, arbitrations or proceedings pending or, to the Knowledge of Seller, threatened against Seller.  Seller is not subject to any Order.
 (b)
 Except as set forth in Part 2.14(b) of the Disclosure Schedule, no Proceeding has ever been commenced by or against Seller in relation to the Assets or the Solar Facility and no such Proceeding has been pending or threatened at any time.
 2.15
 Environmental, Health and Safety Laws.  
 (a)
 Seller has no knowledge, and Seller has not received notice, of (i) the presence, use, storage, or discharge of any Hazardous Materials on, in, under, or about the Solar Facility, and/or (ii) any violation of Environmental, Health and Safety Law Environmental Laws relating to the Solar Facility. 
 (b)
 Seller is in compliance with all Environmental, Health and Safety Laws.
 (c)
 There has been no storage, treatment, generation, transportation or release of any Hazardous Materials by Seller in violation of, or which could give rise to any liability or obligation under, any Environmental, Health and Safety Laws.
 (d)
 Seller has not been nor is it presently the subject of any pending Environmental Claim, and to the best of Seller’s Knowledge, no Environmental Claim is pending or threatened against Seller. To Seller’s Knowledge, none of the properties presently leased or operated by Seller contains any asbestos or asbestos-containing-material, polychlorinated biphenyls.
 2.16
 Brokers’ Fees.  Seller has no liability or obligation to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement.
 2.17
 Disclosure. This Agreement, each Transaction Document, and each certificate or other instrument furnished in connection with the closing of the transactions contemplated by this Agreement by or on behalf of Seller to Buyer or its representatives in connection herewith or pursuant hereto, taken as a whole, do not contain any untrue statement of material fact or omit to state a material fact required to be stated herein or therein or necessary to make the statements contained herein or therein in light of the circumstances under which they were made, not misleading. To the best of Seller’s knowledge, there are no facts that have not been disclosed or are otherwise not known to Buyer (other than matters of a general economic nature that do not affect the Solar Facility uniquely) that could reasonably be expected to be materially adverse to the Solar Facility taken as a whole. 
 

 

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 ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE BUYER
 The Buyer hereby represents and warrants to Seller as follows:
 3.1
 Organization of the Buyer.  The Buyer is a corporation company duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite power and authority to operate the Solar Facility as it is contemplated to be operated and to own and lease its properties and assets.
 3.2
 Authorization; Validity.  The Buyer has all necessary power and authority to enter into this Agreement and the other Transaction Documents and has taken all action necessary to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder.  This Agreement has been duly executed and delivered by the Buyer and is a legal, valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms.
 3.3
 Brokers’ Fees.  Buyer has no liability or obligation to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement.
 ARTICLE 4

CERTAIN COVENANTS AND AGREEMENTS
 Seller hereby covenants and agrees that from and after the date hereof and through the Commercial Operation date, they shall do or refrain from doing the following (with respect to Sections 4.1 through 4.8):
 4.1
 Access to Information and Records.  Subject to the procedures set forth below, at or prior to the Closing Date, the Buyer shall be entitled, through its respective representatives, advisers, accountants, consultants, agents and attorneys, to make such investigation of the Solar Facility and Seller and such examination of the books, records, Tax Returns, other data and information, facilities, properties, financial condition and operations of Seller as the Buyer may reasonably request.  Any such investigation and examination shall be conducted during normal business hours and under reasonable circumstances, and Seller shall reasonably cooperate therein, and shall cause its Affiliates and their respective representatives to reasonably cooperate.
 4.2
 Further Actions. Each of the Parties covenants and agrees to act in good faith and to use its commercially reasonable actions to cause all conditions to the obligations of the Parties to consummate the Closing specified in Articles 5 and 6 to be satisfied at or prior to the Commercial Operation date, but only to the extent that such conditions relate to such Party’s obligations, covenants, representations or warranties hereunder and under the Transaction Documents to be entered into by such Party. 
 

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 4.3
 Consents.  The Buyer and Seller will, as soon as reasonably practicable, commence to take commercially reasonable actions required to obtain all Consents, approvals, waivers and agreements of, and to give all notices and make all other registrations or filings with, any third parties, including any Authority, necessary to authorize, approve or permit the full and complete sale, conveyance, assignment, transfer and delivery of the Assets and the continuance in full force and effect of the Permits, Contracts and other agreements as set forth on the Disclosure Schedule; provided that the Buyer shall not be required to expend any material funds related thereto.  
 4.4
 Lease, PPA, and other Consents. The obligations of the Buyer, including any payment obligations, are contingent on the following requirements being met, (and all Seller obligations under this Agreement shall be cancelled if these are not completed by July 31, 2014, which date is an intentional extension to the June 30 deadline from the LOI):
 a)
 Written PPA from IPL for Solar Facility,
 b)
 A guarantee from IPL they will honor the PPA beyond December 31, 2014, and
 c)
 Bankable 20 year lease from the owner of the property the Solar Facility will be placed on.
 4.5
 Conduct of the Business Pending the Closing. 
 (a)
 Seller covenants and agrees that, during the period commencing on the date hereof and ending at the Commercial Operation date, except with the prior written consent of Buyer, or as explicitly contemplated by this Agreement, required by law, it shall not take any of the following actions:
 (1)
 sell or otherwise dispose of, or lease or license, any right or other asset with respect to the Solar Facility; 
 (2)
 waive or relinquish any material right with respect to the Solar Facility, except in the Ordinary Course of Business;
 (3)
 enter into, amend or modify in any material respect or terminate any Material Contract or Real Property Lease or waive or assign any material right thereunder, in each case, other than in the Ordinary Course of Business;
 (4)
 incur, assume or guarantee any Indebtedness with respect to the Solar Facility; or
 (5)
 agree, whether in writing or otherwise, to do any of the foregoing.
 4.6
 Releases and Terminations of Encumbrances. Seller shall take, or cause to be taken, all actions necessary to secure the termination and release of any and all Encumbrances upon the assets or properties of Seller, in each case, in form and substance reasonably satisfactory to Buyer.  
 

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 4.7
 Notice of Material Developments.  Each Party shall give prompt written notice to the other Parties of: (a) any material variances in any of its representations or warranties contained in Articles 2 or 3 above, as the case may be (the Disclosure Schedule); (b) any breach of any covenant or agreement hereunder by such Party; and (c) any other material development which adversely affects the ability of such Party to consummate the transactions contemplated by this Agreement. 
 4.8
 Public Announcements.  The timing and content of all announcements regarding any aspect of this Agreement or the transactions contemplated hereby shall be mutually agreed upon in advance by the Parties, though consent shall not be unreasonably withheld.
 4.9
 Employee Matters. Buyer is not obligated to offer employment to any of Seller’s employees.
 4.10
 Repayment of Indebtedness. Seller shall (a) cause the agreements, instruments and documents relating to the liabilities, indebtedness or other obligation for borrowed money, including capitalized leases, and accounts payable of Seller identified in Parts 2.5 and 2.7 of the Disclosure Schedule to be terminated effective as of the Closing; and (b) take, or cause to be taken, all actions necessary to secure the termination and release of any and all Encumbrances upon the assets or properties of the Seller, in each case, in form and substance reasonably satisfactory to Buyer.  Seller acknowledges that the payments made to the creditors identified in Parts 2.5 and 2.7 of the Disclosure Schedule are credited to Seller as part of the Purchase Price and deemed received by Seller notwithstanding that the payments are to be made directly to third parties.
 4.11
 Seller agrees that payments not yet paid by Buyer under the Section 1.6(c) shall not be due if Seller fails to fulfill its obligations under this Article.
 ARTICLE 5

CONDITIONS TO THE OBLIGATIONS OF
SELLER
 The obligations of Seller to effect the transactions contemplated hereby on the Commercial Operation date are subject to the satisfaction or waiver by Seller, on or prior to the Closing Date, of each of the following conditions:
 5.1
 Representations, Warranties and Covenants.  All representations and warranties made by the Buyer shall be true and correct in all material respects at and as of the date of this Agreement and at and as of the Closing, and the Buyer shall have performed in all material respects all agreements and covenants required hereby to be performed by it prior to or on the Closing Date.
 5.2
 No Injunction.  No suit, action or other proceeding shall be pending before any Authority which seeks to: (a) prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby or declare unlawful any of the transactions contemplated hereby; or (b) cause any of the transactions contemplated by this Agreement to be rescinded following consummation.
 

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 5.3
 Documents to be Delivered by the Buyer.  At the Closing, the Buyer shall have delivered to Seller the following documents, in each case duly executed or otherwise in proper form:
 (a)
 Compliance Certificate. A certificate signed by a duly authorized representative of the Buyer stating that the conditions specified in Sections 5.1 and 5.2 have been satisfied as of the Closing.
 (b)
 Other Documents.  All other documents, instruments or writings required to be delivered to Seller at or prior to the Closing pursuant to this Agreement and such other certificates of authority and documents as Seller may reasonably request.
 Any condition specified in this Article 5 may be waived in writing by Seller, and all conditions specified in this Article 5 shall be deemed to have been satisfied or waived from and after the Commercial Operation date.
 ARTICLE 6

CONDITIONS TO THE BUYER’S OBLIGATIONS
 The obligations of the Buyer to purchase the Assets from Seller, as provided hereby, are subject to the satisfaction or waiver by the Buyer, on or prior to the Closing Date, or the Commercial Operation Date if so noted herein, unless otherwise stated in this Agreement, of each of the following conditions:
 6.1
 Representations, Warranties and Covenants.  All representations and warranties of Seller shall be true and correct in all material respects at and as of the date of this Agreement and at and as of the Closing, and Seller shall have performed, in all material respects, all agreements and covenants required hereby to be performed by each of them prior to or on the Commercial Operation date or as otherwise required herein.
 6.2
 Consents.  Seller shall have obtained (or caused to be obtained) all of the Consents and approvals listed in Part 2.4 of the Asset Purchase Agreement Disclosure Schedule by the Commercial Operation date, or as otherwise required herein.
 6.3
 Permits. Buyer shall have obtained the Permits identified in Part 6.3 of the Disclosure Schedule. Seller shall have effected all of the federal, state and local governmental filings which are required on the part of Seller to consummate the transactions contemplated by this Agreement.
 6.4
 No Injunction.  No suit, action or other proceeding shall be pending before any Authority which seeks to: (a) prevent the performance of this Agreement or the consummation of any of the transactions contemplated hereby or declare unlawful any of the transactions contemplated hereby; (b) cause any of the transactions contemplated by this Agreement to be rescinded following consummation; (c) adversely affect the right of the Buyer to own the Assets or operate the Solar Facility; or (d) adversely affect the right of Seller to own the Assets or control the Solar Facility, and no such Order shall have been entered or be in effect.
 

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 6.5
 Material Adverse Effect.  No event, development, state or circumstances, or condition will have occurred prior to the Closing Date and the Commercial Operation date that, individually or in the aggregate has or would reasonably be expected to have or result in a Material Adverse Effect.
 6.6
 Documents to be Delivered by Seller.  At the Closing, Seller shall have delivered to the Buyer the following documents, in each case duly executed or otherwise in proper form:
 (a)
 Site Lease.  A copy of the Solar Site Lease.
 (b)
 Certified Resolutions.  Certified copies of the resolutions of the Managers and Members of Seller certifying incumbency and authorizing and approving this Agreement and the consummation of the transactions contemplated hereby.
 (c)
 Transfer Documents. Buyer shall have received from Seller a duly executed Bill of Sale and Assignment and Assumption Agreement in the form of Exhibit B attached hereto, and such other bills of sale with respect to the Assets, assignments, endorsements and other documents of title (including those with respect to any vehicles included in the Assets) and other good and sufficient instruments of conveyance and transfer, as shall be effective to vest Buyer with full, complete and marketable right, title and interest in and to the Assets in form and substance satisfactory to Buyer.
 (d)
 Good Standing. A good standing certificate for Seller from its jurisdiction of organization dated as of a recent date prior to the Closing Date. 
 (e)
 Releases. Seller shall have executed and delivered any documents, including any UCC amendments or termination statements, necessary to release all Encumbrances on the Assets.
 (f)
 Other Documents.  All other documents, instruments or writings required to be delivered to the Buyer at or prior to the Closing or the Commercial Operation date pursuant to this Agreement and such other certificates of authority and documents as the Buyer may reasonably and in good faith request.
 6.7
 Solar Site Lease Estoppel Certificate.  Seller shall have obtained (or caused to be obtained) an estoppel certificate from the lessor under the Solar Site Lease in form and substance satisfactory to Buyer. If such cannot be obtained in time, an email or fax from the lessor stating the lease is intact and transferrable is acceptable. 
 

 Any condition specified in this Article 6 may be waived in writing by the Buyer, and all conditions specified in this Article 6 shall be deemed to have been satisfied or waived from and after the Commercial Operation date.
 

 

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 ARTICLE 7

POST-CLOSING COVENANTS
 7.1
 Further Assurances.  On and after the Closing Date, Seller and the Buyer will take all appropriate action and execute (or cause to be executed) all notices, documents, instruments or conveyances of any kind which may be reasonably necessary to carry out any of the provisions hereof, to enable Buyer to operate the Assets and the Solar Facility substantially in the manner as such Solar Facility has been operated by or proposed to be operated by Seller prior to the Closing, and to enable Buyer, its successor and assigns, to enjoy the benefit of all Environmental Financial Incentives, Green Attributes, and all Tax Credits in connection with the Solar Facility. Seller shall take any and all reasonable actions that may be necessary to prevent any Person from having recourse against any of the Assets or against Buyer (as transferee thereof) with respect to any Excluded Liabilities.  If requested by the Buyer, Seller shall present or otherwise enforce in its own name for the benefit of the Buyer any claims, rights or benefits that are transferred to Buyer by this Agreement and that require prosecution or enforcement in name of Seller.  
 7.2
 Tax Matters.  All transfer, documentary, sales, use, stamp, registration and other similar Taxes and fees (including any penalties and interest) incurred in connection with the transactions contemplated by this Agreement shall be borne by Seller. Seller file all necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and fees.  
 7.3
 Transition Assistance.  From the date hereof, Seller will not in any manner take any action which is designed, intended, or might be reasonably anticipated to have the effect of discouraging customers, suppliers, lessors, licensors and other Solar Facility associates from maintaining the same Solar Facility relationship with Buyer after the Closing Date as were maintained with Seller prior to the Closing Date, and (ii) shall immediately cease the use of any and all trade names, trademarks and other names previously used in connection with the Solar Facility and transferred to Buyer pursuant to this Agreement. 
 7.4
 Confidentiality.  From and after the Closing Date, Seller agrees not to disclose or use at any time (and shall cause any Affiliates of Seller not to use or disclose at any time) any Confidential Information.  In the event Seller or any of its Affiliates is required by Legal Requirement or Order to disclose any Confidential Information, Seller shall promptly notify the Buyer in writing, which notification shall include the nature of the legal requirement and the extent of the required disclosure, and Seller shall reasonably cooperate with the Buyer and Seller to preserve the confidentiality of such Confidential Information consistent with applicable law (at Seller’s expense).
 7.5
 Books and Records.  The Parties agree that they will each preserve and retain the material books and records of Seller in the possession of the Party or its Affiliates and relating to the operations of Seller for the period prior to the Closing Date, for a period of seven years from the Closing Date.  During such seven year period, Seller and its representatives shall, upon reasonable notice, have access during normal Solar Facility hours to examine, inspect and copy such books and records subject to the execution of a reasonable and customary confidentiality agreement.
 

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 7.6
 Bulk Sales. Notwithstanding any knowledge of Buyer at the time of the Closing, Seller agrees that Buyer has not waived any right to indemnification that it may have against Seller with respect to any Losses as a result of claims against the Assets resulting from failure to comply with any applicable bulk sales laws.
 7.7
 Lease, PPA, etc. The obligations of Section 4.4 shall survive closing, along with any other obligation in this Agreement that survives by its own terms. 
 ARTICLE 8

TERMINATION
 8.1
 Termination.  This Agreement may be terminated at any time prior to the Closing only as follows:
 (a)
 by the mutual written consent of the Buyer and Seller;
 (b)
 by Buyer in the event the Closing does not occur on or before July 31, 2014;
 (c)
 by the Buyer, in its sole discretion, if there has been a material misrepresentation or a material breach of warranty or a material breach of a covenant by either Seller in the representations and warranties or covenants set forth in this Agreement or the schedules and exhibits attached hereto, which in the case of any such breach has not been cured within ten (10) days after written notification thereof by the Buyer to Seller; or
 (d)
 by Seller, in its sole discretion, if there has been a material misrepresentation or a material breach of warranty or a material breach of a covenant by the Buyer in the representations and warranties or covenants set forth in this Agreement or the schedules and exhibits hereto, which in the case of any such breach has not been cured within ten (10) days after written notification thereof by a Seller to the Buyer. 
 Notwithstanding the foregoing, the Party electing termination pursuant to clause (b), (c) or (d) of this Section 8.1 may not be in material breach of any of its representations, warranties, covenants or agreements contained in this Agreement.  In the event of termination by the Buyer or Seller pursuant to this Section 8.1, written notice thereof (describing in reasonable detail the basis therefor) shall forthwith be delivered to the other Parties.
 8.2
 Effect of Termination.  In the event of termination of this Agreement as provided in Section 8.1, this Agreement shall forthwith terminate and have no further force and effect, without any liability to any Party in respect hereof or of the transactions contemplated hereby on the part of any Party (except for any liability resulting from a Party’s breach of this Agreement), except that: (a) the covenants and agreements set forth in this Section 8.2 (Effect of Termination) and Article 10 shall survive such termination indefinitely; and (b) nothing in Section 8.1 or this Section 8.2 shall be deemed to release any Party from any liability for any breach by such Party of the terms and provisions of this Agreement or to impair the right of any Party to compel specific performance by another Party of its obligations under this Agreement.
 

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 ARTICLE 9

INDEMNIFICATION
 9.1
 Survival, Representations and Warranties.  The representations, warranties and covenants in this Agreement shall survive until the expiration of the applicable statute of limitations.  The provisions of this Section 9.1 shall not limit any covenant or agreement of the Parties which, by its terms, contemplates performance after the Closing Date.
 9.2
 Indemnification Obligation of Seller.
 (a)
 Seller agrees to indemnify and defend the Buyer and its Affiliates, agents, representatives and successors and assigns (collectively, the “Buyer Indemnitees”) in respect of, and save and hold each Buyer Indemnitee harmless against and pay on behalf of or reimburse each Buyer Indemnitee as and when incurred, any Losses which any Buyer Indemnitee incurs as a result of or arising out of:
 (1)
 a breach by Seller of any representation or warranty set forth in this Agreement;
 (2)
 a breach of any covenant of a Seller set forth in this Agreement;
 (3)
 any Excluded Liability;
 (4)
 any Excluded Assets; and
 (5)
 any Taxes of Seller or Owners.
 (b)
 The Parties expressly agree that the right to indemnification under this Section 9.2 shall not be limited by any knowledge obtained pursuant to any investigation conducted by or on behalf of Buyer or the other Indemnified Parties before or after the date of this Agreement.
 9.3
 Indemnification Obligation of the Buyer.  Buyer agrees to indemnify and defend Seller and its Affiliates, stockholders, officers, directors, employees, agents, representatives, heirs, successors and assigns (collectively, the “Seller Indemnitees”) in respect of, and save and hold each Seller Indemnitee harmless against and pay on behalf of or reimburse each Seller Indemnitee as and when incurred, any Losses which Seller Indemnitee incurs as a result of:
 (a)
 a breach by Buyer of any representation or warranty set forth in this Agreement;
 (b)
 a breach of any covenant of Buyer set forth in this Agreement; and
 (c)
 any Assumed Liability.
 

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 9.4
 Indemnification Procedures.
 (a)
 Any Person making a claim for indemnification pursuant to Section 9.2 or 9.3 above (each, an “Indemnified Party”) must give the Party from whom indemnification is sought (an “Indemnifying Party”) written notice of such claim promptly after the Indemnified Party receives any written notice of any demand, claim, action, lawsuit, proceeding, investigation or other  contention (a “Proceeding”) against or involving the Indemnified Party by any Person or otherwise discovers the liability, obligation or facts giving rise to such Loss; provided that the failure to notify or delay in notifying an Indemnifying Party will not relieve the Indemnifying Party of its obligations pursuant to Section 9.2 or 9.3 above, as applicable, except where such failure actually harms or prejudices the Indemnifying Party.
 (b)
 With respect to the defense of any Proceeding against or involving an Indemnified Party in which any Person in question seeks non-equitable relief for which indemnification is provided in Section 9.2 or 9.3 above, at its option an Indemnifying Party may appoint as lead counsel of such defense any reputable legal counsel selected by the Indemnifying Party and approved by the Indemnified Party, such approval not to be unreasonably withheld.  The Indemnifying Party shall not be entitled to assume control of such defense (unless otherwise agreed to in writing by the Indemnified Party), and shall pay the reasonable fees and expenses of counsel retained by the Indemnified Party, if: (i) the claim seeks equitable relief or (ii) the Indemnified Party has been advised in writing by counsel that a conflict of interest exists between the Indemnifying Party and the Indemnified Party which could reasonably impair the Indemnifying Party’s ability to defend such claim; provided however, that the Indemnified Party may not settle any such dispute or claim without the consent of the Indemnifying Party, not to be unreasonably withheld, conditioned or delayed.  If the Indemnified Party assumes the defense of the claim, the Indemnified Party will keep the Indemnifying Party informed of the progress of any such defense.
 (c)
 If the Indemnifying Party is controlling the defense, the Indemnified Party will be entitled to observe in the defense of such claim and to employ counsel of its choice for such purpose at its own expense.  Notwithstanding the foregoing, if the Indemnified Party’s counsel assists in the defense or prosecution of a claim, action or cause of action on behalf of the Indemnifying Party, then such fees, costs and expenses associated therewith shall be borne by the Indemnifying Party.
 (d)
 Any Indemnified Party shall cooperate in all reasonable respects with the Indemnifying Parties and their attorneys in the investigation, trial and defense of such lawsuit or action and any appeal arising therefrom and, at no out-of-pocket cost to the Indemnified Party, shall furnish such records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested in connection therewith.  The Parties shall cooperate with each other in any notifications to insurers.
 

 

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 (e)
 If an Indemnifying Party assumes the defense of a claim, no compromise or settlement thereof may be effected by the Indemnifying Party without the Indemnified Party’s written consent (which shall not be unreasonably withheld or delayed); provided that the Indemnifying Party may compromise or settle such claim without the Indemnified Party’s consent so long as (a) there is a release of all liability of the Indemnified Party with respect to such claim and (b) the sole relief provided is monetary damages that are to be paid in full by the Indemnifying Party. In no event shall the Indemnified Party admit any liability with respect to, or settle, compromise or discharge, any claim as to which such Indemnified Party has sought or may seek indemnification under this Agreement without the Indemnifying Party’s prior written consent (which shall not be unreasonably withheld or delayed).
 9.5
 Payment. Upon written agreement by the Indemnifying Party or by final non-appealable judicial proceeding (such written agreement or final judicial proceeding, a “Final Determination”), the Indemnifying Party shall pay to the Indemnified Party, within twenty (20) Business Days after such Final Determination, the amount of the Loss made under such claim for indemnification (in all cases taking into account the provisions of Section 9.2(b) hereof). Any such indemnification payment shall include interest at the rate of 6% per annum calculated on the basis of the actual number of days elapsed divided by 360, from the date any such Loss is suffered or sustained to the date of payment.
 9.6
 Indemnity Calculations. The amount of indemnity payable under Section 9.2 or Section 9.3 shall be treated by the Buyer and Seller as an adjustment to the Purchase Price.
 ARTICLE 10

MISCELLANEOUS
 10.1
 Assignment.  Neither this Agreement nor any of the rights or obligations hereunder may be assigned by a Party without the prior written consent of the other Party, such consent shall not be unreasonably withheld, conditioned or delayed.  The assignment by Buyer to facilitate any financing shall not require prior approval by Seller.  This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns.  This Agreement shall be for the sole benefit of the Parties and their respective permitted assigns and is not intended, nor shall be construed, to give any Person, other than the Parties and their respective successors and assigns any legal or equitable right, remedy or claim hereunder.
 10.2
 Notices.  Any notice, request, demand, waiver, consent, approval or other communication which is required or permitted hereunder shall be in writing.  All such notices shall be delivered:  personally; by certified mail, return receipt requested; by reputable overnight courier (costs prepaid); or by email, though emails will only be deemed received if acknowledged by a response email.  All such notices are to be given or made to the Parties at the following addresses or emails (or to such other address as any Party may designate by a notice given in accordance with the provisions of this Section):
 

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 If to the Buyer:

 Lenape II Solar LLC
Ruben Fontes
 2721 Loker Avenue West
 Carlsbad, CA 92010
 rfontes@blueearthinc.com
 

 

 If to Seller:

New Generation Power LLC
 Dr. Chirinjeev Kathuria 
 39 S. LaSalle St. STE 600
 Chicago, IL 60603
 drkathuria@newgenerationpower.org
 

 

 Any of the above addresses may be changed at any time by notice given as provided above; provided, however, that any such notice of change of address will be effective only upon receipt.  All notices, requests or instructions given in accordance herewith will be deemed given (a) on the date of delivery, if hand delivered, (b) three Business Days after the date of mailing, if mailed by registered or certified mail, return receipt requested, and (c) one Business Day after the date of sending, if sent by Federal Express or other recognized overnight courier.
 10.3
 Choice of Law.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without reference to the choice of law or conflicts of law principles thereof.  Subject to Section 10.4 below, any disputes are subject to the jurisdiction of the federal and state courts of Los Angeles County, California.
 10.4
 Arbitration.  
 (a)
 Prior to submitting any dispute to arbitration, the Parties will meet and will use good faith efforts to resolve the dispute by mutual agreement. Any dispute arising out of or related to this Agreement that cannot be resolved by the good faith efforts of the Parties shall be solely and finally settled by a board of arbitrators consisting of three arbitrators. Each Party expressly and irrevocably consents and agrees that the arbitration proceedings shall be held in California, or in such other location as approved by both the Parties. under the auspices of the American Arbitration Association (the “AAA”) and, except as otherwise may be provided herein, the arbitration proceedings shall be conducted in accordance with the Commercial Arbitration Rules of the AAA. Without limiting the foregoing, the arbitration provisions set forth herein, and any arbitration conducted thereunder, shall be governed exclusively by the Federal Arbitration Act, Title 9, United States Code, to the exclusion of any state or municipal law of arbitration. The arbitrators shall not decide a dispute ex aequo et bono or as amiable compositeur or by reliance on any other doctrine or principle that would permit the arbitrators to avoid the application of this Agreement and/or the governing law.
 

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 (b)
 To the extent permissible under applicable law, the Parties agree that the award of the arbitrators shall be final and shall not be subject to judicial review. Judgment on the arbitration award may be entered and enforced in any court of competent jurisdiction. Nothing contained herein shall prevent either Party from seeking preliminary injunctive relief in a court of competent jurisdiction.
 (c)
 To the fullest extent permitted by law, the arbitration, the arbitration proceedings and the arbitrators’ decision and award shall be maintained in confidence by each side to the dispute and each side to the dispute shall instruct the arbitrators to likewise maintain such matters in confidence.
 (d)
 The arbitrators shall have the discretion to award the arbitration fees and expenses, including the arbitrator’s fees, reasonable attorney’s fees, and other arbitration costs and expenses, to the prevailing side as the arbitrators may determine is fair and reasonable in the circumstances. 
 10.5
 Entire Agreement; Amendments and Waivers.  This Agreement, together with all exhibits and schedules hereto, constitutes the entire agreement among the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties.  This Agreement may not be amended or modified except by an instrument in writing signed on behalf of all of the Parties.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
 10.6
 Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may be executed and delivered by electronic means (including .pdf format) with the same force and effect as if the same were a fully executed and delivered manual counterpart.
 10.7
 Invalidity.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.
 10.8
 Headings.  The headings of the Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.
 

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 10.9
 Expenses.  Except as otherwise provided herein, each Party will each be liable for its respective costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the consummation of the transactions contemplated hereby (including fees, costs and expenses of legal counsel, investment advisers, brokers and other representatives and consultants).
 10.10
 WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY SCHEDULE OR EXHIBIT HERETO, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS (WHETHER VERBAL OR WRITTEN) RELATING TO THE FOREGOING.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT.
 10.11
 Interpretation.  Unless otherwise indicated to the contrary herein by the context or use thereof:  (i) the words, “herein,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular Section or paragraph hereof; (ii) the word “including” means “including, but not limited to”; (iii) the masculine gender shall also include the feminine and neutral genders, and vice versa; and (iv) words importing the singular shall also include the plural, and vice versa.
 10.12
 Incorporation of Exhibits and Schedules.  The exhibits and schedules identified in this Agreement are incorporated herein by reference and made a part hereof.  If and to the extent any information required to be furnished in any section of the Disclosure Schedule is contained in this Agreement or disclosed on any section of the Disclosure Schedule, such information shall be deemed to be included in all sections of the Disclosure Schedule in which the information is required to be included to the extent such disclosure is reasonably apparent on its face.  The inclusion of any information in any section of the Disclosure Schedule shall not be deemed to be an admission or acknowledgment by Seller, in and of itself, that such information is required by the terms hereof to be disclosed or is material to or outside the Ordinary Course of Business of the Solar Facility.
 10.13
 No Third-Party Beneficiaries.  Nothing herein expressed or implied is intended or shall be construed to confer upon or give to any Person other than the Parties and their respective permitted successors and assigns, any rights or remedies under or by reason of this Agreement or the Transaction Documents, such third parties not having any rights or remedies under or by reason of this Agreement or the Transaction Documents specifically including the Employees and creditors of Seller.
 10.14
 Business Days.  Whenever the last day for the exercise of any privilege or the discharge of any duty hereunder shall fall upon any day which is not a Business Day, the Party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding Business Day.
 

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 ARTICLE 11
 SECURITY AGREEMENT
 

 11.1
  The Seller and Xnergy, the parent of Buyer, were Parties to an EPC Agreement entered into on or about December 20, 2013 regarding Lenape II. Certain obligations therein were not met by Seller. To the extent that Seller performs under this Agreement, their obligations under that EPC (and that EPC only) are superceded by this Agreement. Seller has granted to the Buyer a first priority security interest in and lien on all of Seller’s right, title and interest in and to the following, whether now owned or hereafter acquired to guarantee their performance under this Agreement (all of which shall collectively be called the “Collateral”):
 

 (a)
 All of Seller’s “Accounts” as such term is defined in the Uniform Commercial Code, as adopted in any applicable jurisdiction (the “UCC”), including, but not limited to, all rights of Seller in each purchased product related to the Solar Facility;
 (b)
 All of Seller’s “Contract Rights”, “General Intangibles”, “Documents”, “Instruments”, and “Chattel Paper”, as such terms are defined in UCC, relating to purchasing contract products acquired under each issued purchase order under the EPC, as supplemented from time to time, or relating to the Solar Facility;
 (c)
 All of Seller’s “Inventory” as such term is defined in the UCC, consisting of purchased contract products acquired under each issued purchase order under the EPC or Solar Facility whether now owned or hereafter acquired;
 (d)
 All insurance policies of Seller and the proceeds thereunder or therefrom relating to Solar Facility acquired under each issued purchase order under the EPC, or relating to the Solar Facility, in each case regardless of whether now owned or hereafter acquired or coming into existence, and the refund of all premiums therefor;
 (e)
 Seller’s Equity Interests in NGP Lenape Solar II, LLC. “Equity Interest” means any shares of capital stock, partnership interests, limited liability company membership interests or units, shares, interest or other participations in the equity of any entity, including without limitation, Seller or any Affiliate of Seller, or any other security (including without limitation, debt securities) or other right that is (or can be) exercisable or exchangeable for, or convertible into, any of the foregoing. 
 (f)
 All present and future rights of Seller to receive any payment of money or other distribution or payment arising out of or in connection with its Equity Interest in NGP Lenape Solar II, LLC;
 (g)
 Any other claim which Seller now has or may in the future acquired in its capacity as a member of manager of NGP Lenape Solar II;
 (h)
 All securities, certificates and other instruments representing or evidencing any of the foregoing rights and interests or the ownership of such Equity Interests;
 

 

 24
 

 
 

 (i)
 All rights Seller may have under any “Contractual Agreement” (as defined below) or “Governmental Authorization” (as defined below). “Contractual Agreement” means any written, oral or other agreement, contract, subcontract, statement of work, lease, understanding, arrangement, instrument, note, warranty, insurance policy, benefit plan or legally binding commitment or undertaking of any nature, including but not limited to power purchase agreement, engineering, procurement and construction agreement. “Governmental Authorization” means any permit, license, certificate, franchise, permission, clearance, registration, qualification or authorization issues, granted, given or otherwise made available by or under the authority of, or right under any contract with, any federal, state, commonwealth, territory, country, municipality, district or other jurisdiction of any nature (including any governmental division, department, agency, commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal) or pursuant to any legal requirement;
 (j)
 All solar site lease-option agreements; solar power installation plans, designs, engineering studies, wetlands studies, and other site-planning documentation; interconnection impact studies, interconnection agreements, wholesale market participation rights and agreements and other property incident to interconnection of the Solar Facility;
 (k)
 All of Seller’s property, including Solar Facility, in the possession of Buyer or Buyer’s parent companies;
 (l)
 To the extent not otherwise included above, all proceeds, products and accessions of any and all of the foregoing, including, without limitation, whatever is received upon any collection, exchange, sale or other disposition of any of the Collateral, and any property into which any of the Collateral is converted, whether case or non-cash proceeds, and any and all other amounts paid or payable under or in connection with any of the Collateral; and
 (m)
 All cash and non-cash proceeds and products of the foregoing, all proceeds from insurance on any of the foregoing, all goodwill associated with the foregoing, all additions and accessions to and replacements and substitutions for any of the foregoing, everything that becomes (or is held for the purpose of being) affixed to or installed in any of the foregoing, and all products, rents, income, dividends, and profits of or from any of the foregoing, whether now owned or hereafter acquired and wherever located. 
 

  
 

  [Remainder of page intentionally blank; signatures commence on next page.]
 

 

 25
 

 
 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Asset Purchase Agreement as of the date first written above.
 BUYER:
 

 Lenape II Solar LLC
 

 By:  /s/ Robert Potts
 Name:  Robert Potts
 Title:  President
 

 SELLER(S):
 

 New Generation Power, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: President
 

 NGP Lenape Solar II, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: Member
 

 

 

 

 

 

 

 

 

 

 

 26
 

 
 EXHIBIT A
 Glossary of Defined Terms
 Capitalized terms used but not otherwise defined in this Exhibit A will have the meaning assigned thereto in the main body of the Agreement.
 “AAA” has the meaning specified in Section 10.4(a) of this Agreement.
 “Affiliate” means, with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person.  The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by Contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative thereto.  In addition, with regard to Seller, Affiliate also means any Person directly or indirectly, controlled by or controlling Seller, or any of his or her Immediate Family Members or (b) any Person, directly or indirectly, in which Seller, its equity holders or any of their Immediate Family Members holds, of record or beneficially, any equity or voting securities, other than public company investments.
 “Agreement” has the meaning specified in the preamble to this Agreement.
 “Assets” has the meaning specified in Section 1.2 of this Agreement.
 “Authority” means any governmental or administrative body, agency, commission, board, arbitrator or authority, any court or judicial authority, whether international, national, federal, state or local or any third party accreditation organization.
 “Books and Records” has the meaning specified in Section 1.2(l) of this Agreement.
 “Business Day” means any day other than a Saturday, Sunday or other day upon which banks are closed or authorized to be closed in the State of Nevada.
 “Buyer” has the meaning specified in the preamble to this Agreement.
 “Buyer Indemnitees” has the meaning specified in Section 9.2(a) of this Agreement.
 “Claim” means any action, claim, charge, audit, lawsuit, demand, suit, inquiry, hearing, investigation, Authority review, litigation, Proceeding, arbitration, appeals or other dispute, whether civil, criminal, administrative or otherwise.
 “Closing” has the meaning specified in Section 1.6(b) of this Agreement.
 “Closing Date” has the meaning specified in Section 1.6(b) of this Agreement.
 “Code” means the Internal Revenue Code of 1986, as amended from time to time.
 

 Exhibit A – Page 1
 

 
 

 “Commercial Operation” means that the Solar Facility is ready for regular, daily operation, has been connected to the electrical system, has undergone adequate testing for operation, is in compliance with all applicable Legal Requirements in all respects, and is capable of producing Energy Output. 
 “Confidential Information” means all information of a confidential or proprietary nature (whether or not specifically labeled or identified as “confidential”), in any form or medium, that relates to the Solar Facility, products, financial condition, services or research or development of Seller, or its respective suppliers, distributors, independent contractors or other Solar Facility relations.  “Confidential Information” includes, but is not limited to, the following:  (i) internal Solar Facility and financial information (including information relating to strategic and staffing plans and practices, Solar Facility, operational results, finances, training, marketing, promotional and sales plans and practices, referral sources, cost, rate and pricing structures, and accounting and Solar Facility methods); (ii) identities of, individual requirements of, specific contractual arrangements with, and information about, Seller’s suppliers, distributors, independent contractors or other Solar Facility relations and their confidential information; (iii) trade secrets, know-how, compilations of data and analyses, techniques, systems, formulae, recipes, research, records, reports, manuals, documentation, models, data and data bases relating thereto; (iv) inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable); and (v) other Intellectual Property of Seller.  “Confidential Information” does not include information (a) readily ascertainable from public or published information, or trade sources, (b) developed independently without the use of any Confidential Information and (c) any Excluded Asset.
 “Consent” means any consent, waiver, approval, authorization, exemption, registration, license or declaration of or by any Person or any Authority, or expiration or termination of any applicable waiting period under any Legal Requirement, required with respect to any Party in connection with (i) the execution and delivery of this Agreement or any of the Related Agreements or (ii) the consummation of any of the transactions provided for hereby or thereby. 
 “Contract” means any agreement, contract, instrument, commitment, lease, guaranty, indenture, license or other arrangement or understanding between parties or by one party in favor of another party, whether written or oral.
 “Disclosure Schedule” means the disclosure schedule delivered by Seller to the Buyer on the date hereof.  The Disclosure Schedule will be arranged in sections corresponding to the lettered and numbered sections contained in this Agreement.
 “Effective Date” has the meaning recited at the beginning of this Agreement.
 “Encumbrance” means any mortgage, pledge, Lien, encumbrance, charge or other security interest, other than (a) liens for taxes, assessments and other governmental charges not yet due and payable, (b) statutory, mechanics’, laborers’, materialmen’s or similar liens arising in the Ordinary Course of Business for sums not yet due, and (c) statutory and contractual landlord’s liens under leases pursuant to which a Seller is a lessee and not in default.
 

 Exhibit A – Page 2
 

 
 

 “Energy Output” shall mean the actual kilowatt hours (kWh) AC of electricity generated by the Solar Facility and delivered or made available for delivery during any designated period of time.
 “Environmental Claim” means any written claim by an Authority relating to the violation of Environmental, Health and Safety Laws.
 “Environmental Financial Incentives” means each of the following financial rebates and incentives that is in effect as of the Effective Date or may come into effect in the future: (a) production, energy, or investment tax credits associated with the development, construction, ownership, or operation of the Solar Facility, accelerated depreciation, and other financial incentives in the form of credits, reductions, or allowances associated with the Solar Facility or the Green Attributes that may be applied to reduce any state or federal income taxation obligation, including Tax Benefits, (b) performance-based incentives under applicable state or federal law or utility programs, including without limitation any feed-in tariffs that are in effect or may come into effect in the future; and (c) all other rights, credits, rebates, benefits, and entitlements of any kind, howsoever entitled or named, whether arising under federal, state or local law, international treaty, trade association membership or the like, arising from the Solar Facility or the Output or otherwise from the development, installation, or ownership of the Solar Facility or the production, sale, purchase, consumption or use of the Output. Without limiting the foregoing, “Environmental Financial Incentives” includes the right to apply for (and entitlement to receive) incentives under any demand-side management, distributed generation, or energy efficiency programs offered by a utility company, a third-party provider or the state in which the Solar Facility is located, any incentive offered pursuant to a renewable energy program, or any other incentive programs offered by or in the state in which the Solar Facility is located, the right to receive a grant under Section 1603 of the American Recovery and Reinvestment Act of 2009, and the right to claim federal income tax credits under Sections 45 or 48 of the Internal Revenue Code or any state tax law or income tax deductions with respect to the Solar Facility under the Internal Revenue Code or any state tax law. Environmental Financial Incentives do not include Green Attributes.
 “Environmental, Health and Safety Laws” means all Legal Requirements, Orders and all common law concerning public health and safety, worker health and safety, and pollution or protection of the environment, including without limitation all those relating to the presence, use, production, generations, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control or cleanup of any Hazardous Materials.
 “GAAP” means United States generally accepted accounting principles as of the date of this Agreement. 
 

 

 Exhibit A – Page 3
 

 
 

 “Green Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the generation from the Solar Facility of electricity purchased by Purchaser, and its displacement of conventional energy generation. Green Attributes include but are not limited to REC’s, as well as (a) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides, nitrogen oxides, carbon monoxide and other pollutants, (b) any avoided emissions of carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere and (c) the reporting rights to these avoided emissions, such as Reporting Rights. Green Attributes do not include Environmental Financial Incentives or Tax Benefits.
 “Hazardous Materials” means and includes any hazardous, toxic or dangerous waste, substance or material defined as such in (or for the purposes of) (i) the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.) or the regulations thereunder, (ii) the Resource, Conservation and Recovery Act, as amended, (42 U.S.C. § 6901, et seq.), (iii) the Superfund Amendments and Reauthorization Act of 1986 (Pub. L. 99-499 100 Stat. 1613), (iv) the Toxic Substances Control Act (15 U.S.C. § 2601, et seq.), (v) hazardous air pollutants as defined under CFR Title 40, Parts 60 and 61, or (vi) water pollutants under the provisions of the Federal Water Pollution Act, 33 U.S.C. § 1251 et seq., or the regulations thereunder, (vii) the Emergency Planning and Community Right to Know Act of 1986 (42 U.S.C. § 1101, et seq.), or (viii) any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material as now or at any time hereinafter enacted.
  “Immediate Family Member” means any spouse, sibling (related by blood or adoption to such Person), offspring or parent of an individual.
 “Indebtedness” means, with respect to Seller, without duplication: (i) all obligations for borrowed money or in respect of loans or advances; (ii) the deferred price of property or services, (iii) all obligations evidenced by bonds, debentures, notes, interest rate swap agreements or other similar instruments or debt securities; (iv) all deferred indebtedness or Liabilities of Seller for the payment of the purchase price of property or assets purchased or for services rendered (other than current accounts payable incurred in the Ordinary Course of Business); (v) all obligations of Seller to pay rent or other payment amounts under a lease (other than current accounts payable incurred in the Ordinary Course of Business); (vi) all obligations of Seller to pay a liability on the face of a balance sheet prepared in accordance with GAAP; (vii) all outstanding reimbursement obligations of Seller with respect to letters of credit, bankers’ acceptances or similar facilities issued for the account of Seller; (viii) obligations under guarantees, indemnity agreements and similar agreements; and (ix) all obligations to pay guaranteed payments, bonus, severance, change of control, retention or other payments or other similar forms of compensation to directors, officers, partners, managers, members, the Owners, employees, consultants or agents, together with the employer portion of any employment Taxes payable in respect of the foregoing.
 

 Exhibit A – Page 4
 

 
 

 “Indemnified Party” has the meaning specified in Section 9.4(a) of this Agreement.
 “Indemnifying Party” has the meaning specified in Section 9.4(a) of this Agreement.
 “Intellectual Property” means all (i) inventions, patents, patent applications, patent disclosures, registrations and applications for registrations, (ii) trademarks, service marks, trade dress, logos, trade names and domain names, including common law rights, the goodwill associated therewith and applications for registration thereof, (iii) works of authorship, copyrights and registrations and applications for registration thereof, (iv) confidential and proprietary information, including trade secrets, know-how, processes, methods, techniques, customer and supplier lists, and marketing plans and materials, (v) software (including source code, object code, data, databases, and documentation thereof), (vi) other proprietary and intellectual property rights, (vii) copies and tangible embodiments of any of the foregoing (in whatever form or medium), and (viii) rights to sue and recover any damages, profits and other remedies for any past, present or future infringement, misappropriation or other violation of any of the foregoing.
 “Inventory” means all inventory, merchandise, finished goods, work-in-process, raw materials, spare parts, packaging, samples, demonstration equipment, parts, goods in transit, in each case whether located at the Leased Real Property or not.
 “Knowledge of Seller” (or similar phrases including “Seller’s Knowledge”) means the actual knowledge of any of the Owners and any of the officers and managers of Seller or constructive knowledge after due inquiry.
 “Leased Real Property” has the meaning specified in Section 2.6 of this Agreement and includes, without limitation, the Solar Site Lease.
 “Legal Requirement” means any rule, law, code, statute, regulation, ordinance or other binding action of or by an Authority.
  “Liability” shall mean any debt, obligation, duty or liability of any nature (including any unknown, undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied, vicarious, derivative, joint, several or secondary liability), regardless of whether such debt, obligation, duty or liability would be required to be disclosed on a balance sheet prepared in accordance with generally accepted accounting principles and regardless of whether such debt, obligation, duty or liability is immediately due and payable.
 “License Agreements” has the meaning specified in Section 2.11(b) of this Agreement.
  “Lien” means any claim, lien, pledge, option, charge, security interest, mortgage, right-of-way, easement, covenant, encumbrance, hypothecation, or other right or similar arrangement of any kind or nature whatsoever.
 

 Exhibit A – Page 5
 

 
 

 “Losses” means any claims, liabilities, losses, damages, deficiencies, assessments, judgments, fines, penalties, remediations, settlement obligations, and costs or expenses (including reasonable attorneys’, consultants’ and experts’ fees and expenses) of any nature.
 

 “Material Adverse Effect” means the occurrence of any one or more events, circumstances, conditions or changes which have, or which would reasonably be expected to have, a material adverse effect on the Solar Facility, the Assets, the financial condition, results of operations, or prospects of the Solar Facility, taken as a whole.
 “Order” means any decree, order, judgment, writ, injunction (temporary or permanent), rule, ruling, legal restraint, award, formal or informal directive or notice, prohibition or consent of or by or from an Authority.
 “Ordinary Course of Business” means the ordinary course of normal day-to-day business, consistent with past custom and practice. 
 “Output” means and is limited to, the electricity produced by the Solar Facility and delivered to a purchaser of the electricity.
 “Owners” means the holders of any membership interest of Seller.
 “Parties” has the meaning specified in the preamble to this Agreement.
 “Permits” means all permits, licenses, registrations, agreements, bonds, provider numbers, approvals, accreditation, certificates, orders, and other consents and authorizations, in each case, from any Authority or other Person (including without limitation those relating to the occupancy or use of Leased Real Property) issued to or held by Seller and necessary or required for Seller and the Solar Facility to be in compliance with all Legal Requirements and Orders both before and after the Closing.
 “Person” means an individual, partnership, corporation, limited liability company, joint stock company, unincorporated organization or association, trust, joint venture, association or other organization, whether or not a legal entity, or Authority.
 “PPA” has the meaning specified in the recitals to this Agreement.
  “Proceeding” has the meaning specified in Section 9.4(a) of this Agreement.
  “Purchase Price” has the meaning specified in Section 1.6(a) of this Agreement.
 “Real Property Leases” has the meaning specified in Section 2.6 of this Agreement.
 

 

 Exhibit A – Page 6
 

 
 

 “REC’s” means all certificates (including tradable renewable certificates), “green tags,” or other transferable indicia denoting carbon offset credits or indicating generation of a particular quantity of energy from a renewable energy source by a renewable energy facility attributed to the output created under a renewable energy, emission reduction, or other reporting program adopted by a governmental authority, including those renewable energy certificates that meet the requirements for a purchaser’s renewable portfolio standard under the RPS Law.
  “Reporting Rights” means the right of Purchaser to report to any federal, state or local agency, authority or other party, including without limitation under Section 1605(b) of the Energy Policy Act of 1992 and provisions of the Energy Policy Act of 2005, or under any present or future domestic, international or foreign emissions trading program, that Seller owns the Green Attributes, including the REC’s, associated with the Energy Output.
  “Seller” has the meaning specified in the preamble to this Agreement. Seller shall refer to both Seller entities, or the individual entities, as context and circumstance requires. 
 “Seller Indemnitees” has the meaning specified in Section 9.3 of this Agreement.
 “Solar Facility” has the meaning specified in the recitals to this Agreement. It includes, but is not limited to solar panels, racking system, and inverters.
 “Solar Site Lease” has the meaning specified in the recitals to this Agreement.
  “Subsidiary” of any Person, means, from time to time, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary or contingent voting power to elect directors of such corporation is owned by such Person directly or indirectly through Subsidiaries of such Person, and (ii) any partnership, association, joint venture, limited liability company or other entity in which such Person directly or indirectly through any Subsidiaries has more than a 50% equity interest or is a general or managing partner. 
 “Tax” means any federal, state, local, or foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Section 59A of the Code), custom duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto.
 “Tax Benefits” means all federal, state and local tax deductions, tax credits, tax grants, and other tax benefits available to taxpayers, including grants under Section 1603 of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, the RETITC, the HCGETC, and the Honolulu real property tax exemption, Honolulu City Counsel Bill 58 dated October 1, 2009, as well as any replacements or modifications to such tax deductions, credits, grants or benefits.
 

 Exhibit A – Page 7
 

 
 

 “Tax Return” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto and including any amendment thereof.
 “Taxing Authority” means the Internal Revenue Service and any other Federal, state, local or foreign Authority which has the right to impose Taxes on Seller.
 “Transaction Documents” means this Agreement and each of the other agreements, documents and instruments contemplated hereby and thereby to be delivered by Seller and Buyer at Closing.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Exhibit A – Page 8
 

 
 

 Exhibit B
 Bill of Sale and Assignment and Assumption Agreement
 

 BILL OF SALE AND
ASSIGNMENT AND ASSUMPTION AGREEMENT
 THIS BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Agreement”) is made as of July 28, 2014, at 11:59:59 p.m. (PDT) (the “Effective Time”), by and among Lenape II Solar LLC, a Nevada Limited Liability Company (“Buyer”) and New Generation Power, LLC, an Illinois Limited Liability Company and NGP Lenape Solar II, LLC, an Illinois Limited Liability Company (jointly and severally “Seller”).  Buyer and Seller are referred to collectively as the “Parties” and each individually as a “Party.”  Capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Purchase Agreement (as defined below).
 W I T N E S S E T H:
 WHEREAS, pursuant and subject to the terms and conditions of an Asset Purchase Agreement dated of even date herewith by and between the Buyer and Seller (the “Purchase Agreement”), Seller is causing the Assets to be sold, assigned, transferred, conveyed and delivered to the Buyer; and
 WHEREAS, in connection with the sale of the Assets to the Buyer, the Buyer and Seller wish to provide for the limited assumption by the Buyer of certain obligations of Seller;
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
 1.
 Effective as of the Effective Time, Seller hereby sells, assigns, transfers, conveys and delivers to the Buyer  the Solar Facility, including all of its right, title and interest, to and in each of the Assets, to have and to hold the same unto Buyer and its successors and assigns forever.
 2.
 Effective as of the Effective Time, Seller hereby sells, assigns, transfers, conveys and delivers to the Buyer (collectively, the “Assignment”) all of its right, title, benefit, privileges and interest in and to, and all of Seller’s burdens, obligations and liabilities in connection with each of the Assumed Liabilities.  Buyer hereby accepts such Assignment and assumes and agrees to observe and perform all of the duties, obligations, terms, provisions and covenants, and to pay and discharge all of the liabilities of Seller to be observed, performed, paid or discharged from and after the Closing, in connection with the Assumed Liabilities.  Buyer assumes no Liabilities, other than Assumed Liabilities, and the Parties agree that all such Liabilities, other than Assumed Liabilities, shall remain the sole responsibility of Seller.
 

 1
 

 
 

 3.
 Each of the Parties agrees, at its own expense, to execute, deliver, at the request of the other Parties, such further instruments of transfer and assignment and to take such other action as such other Party may reasonably request to more effectively consummate the assignments and assumptions contemplated hereby.
 4.
 Notwithstanding anything to the contrary contained herein: (a) nothing contained in this Agreement is intended to provide any rights to Seller (beyond those rights expressly provided to Seller in the Purchase Agreement); (b) nothing contained in this Agreement is intended to impose any obligations or liabilities on the Buyer (beyond those obligations and liabilities expressly imposed on the Buyer in the Purchase Agreement); and (c) nothing contained in this Agreement is intended to limit or expand any of the rights or remedies available to the Buyer under the Purchase Agreement.
 5.
 Nothing contained in this Agreement is intended to provide any right or remedy to any person or entity, other than Seller and Buyer.
 6.
 This Agreement shall be construed in accordance with, and governed in all respects by, the internal laws of the State of California (without giving effect to principles of conflicts of laws).
 

 

  [Remainder of page intentionally left blank; signatures commence on next page.]
 

 

 

 

 

 

 

 

 

 

 2
 

 
 

 The Parties to this Agreement have caused it to be executed and delivered as of the date first written above.
 BUYER:
 

 BE Solar
 

 

 

 By:  /s/ Robert Potts
 Name:  Robert Potts
 Title:  President
 

 SELLER(S):
 

 New Generation Power, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: President
 

 NGP Lenape Solar II, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: Member
 

 

 

 

 

 

 

 [Signature Page to Bill of Sale and Assignment and Assumption Agreement]
 

 

 3
 

 
 EXHIBIT C
 Disbursement Agreement
 This Disbursement Agreement (“Disbursement Agreement”), dated as of July 28, 2014, is entered into between among Lenape II Solar LLC, a Nevada Limited Liability Company (“Buyer”), and New Generation Power, LLC, an Illinois Limited Liability Company and NGP Lenape Solar II, LLC, an Illinois Limited Liability Company (“Seller”), New Generation Holdings, Inc, a Delaware Corporation and MAV Brokerage, Inc., a Illinois Corporation (“Owners”).
 A.
 Seller and Buyer have co-developed a project known to the parties as Lenape II that was sold to Buyer in an agreement between Seller and Buyer via an Asset Purchase Agreement (“Purchase Agreement”) dated July 28, 2014. Under the terms of the Purchase Agreement, Buyer is to pay Seller certain sums for clear title to the Assets. Owners share ownership in NGP Lenape Solar II, LLC. 
 B.
 Payment. Any payment by Buyer to Seller under the Purchase Agreement shall be paid as follows:
 a.
 20% of any payment shall be made to MAV Brokerage Inc; 679 East Nerge Rd.; Roselle, IL 60172.
 b.
 80% of any payment shall be made to New Generation Power, LLC; 39. S. LaSalle St. STE 600; Chicago, IL 60603.
 c.
 For example, if Buyer were to pay $1,000 pursuant to the Purchase Agreement, Buyer would pay MAV Brokerage $200, and New Generation Power $800.
 C.
 Release. Upon Payment by Buyer to MAV Brokerage Inc. and/ or New Generation Power, LLC, as outlined above, each Owner and Seller, on behalf of itself, its owners, shareholders, governors, creditors, administrators, successors and assigns, whether herein named or referred to or not, does hereby release, discharge, acquit and forever discharge Seller, its successors and assigns, agents, servants, and employees, their divisions, subdivisions, and affiliates, of and from any and all past, present, and future claims, counterclaims, demands, actions, causes of action, liabilities, damages, costs, loss of services, expenses, compensation, third-party actions, suits at law or in equity, of every nature and description, whether known or unknown, suspected or unsuspected, foreseen, or unforeseen, real or imaginary, actual or potential, and whether arising at law or in equity, under the common law, state or federal law, or any other law, or otherwise, to the extent of that payment on the Purchase Agreement. 
 D.
 Governing Law and Arbitration.  This Release Agreement shall be governed by, and construed under, the laws of the State of California, without reference to conflicts of laws rules. Any conflict or dispute arising under or related to this release agreement shall be resolved through arbitration administered by and under the rules of the American Arbitration Association.
 E.
 Delivery.  This Dispersion Agreement, to the extent signed and delivered by means of a fax machine or electronic transmission in portable document format (pdf), shall be treated in all manner and respects as an original contract and shall be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person.  At the request of a party the other Parties shall re-execute original forms and deliver them to the other party.
 

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 F.
 Indemnity. This Release Agreement is not intended to draw Buyer into any disputes between Seller and Owner. Seller and Owner, on behalf of itself, its successors and assigns, agrees to defend, indemnify and hold harmless Buyer against any and all liability to or claims of Owner or Seller (together with all reasonable legal and investigative costs relating thereto) against Buyer that directly relate to this Release Agreement or the Project.
 

 G.
 Covenants. Each party represents it is a Corporation duly formed, validly existing, and in good standing and has full power and authority to lawfully execute, deliver, and perform its obligations herein.
 

 SELLER(S)
 

 New Generation Power, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: President
 

 NGP Lenape Solar II, LLC
 

 

 By:  /s/ Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: Member
 

 BUYER
 

 Lenape II Solar LLC
 

 

 By:  /s/ Robert Potts
 Name:  Robert Potts
 Title:  President
 

 

 

 

 

 

 

 2
 

 
 

 

 OWNER(S)
 

 New Generation Holdings, Inc.
 

 

 By:  /s/  Chirinjeev Kathuria
 Name: Chirinjeev Kathuria
 Title: President
 

 MAV Brokerage, Inc.
 

 

 By:  /s/ Michael Vecchione
 Name: Michael Vecchione
 Title: President
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 3

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